$8.8 Million for a Church Parking Lot: An Indiana Congregation Plans to Sell for Student Housing

• First United Methodist Church in Bloomington plans to sell a 1.6-acre parking lot for $8.8 million
• Developer Core Spaces plans 350 to 400 bedrooms of market-rate student housing
• The church would own 100 parking spaces in the new garage
• Proceeds would go into the endowment for building upkeep and ministry

A downtown church in an Indiana university town is preparing to sell its parking lot for millions, Indiana Public Media reported in September 2026.

First United Methodist Church in Bloomington plans to sell about 1.6 acres of parking to Chicago-based Core Spaces for $8.8 million. The developer would build market-rate student housing with 350 to 400 bedrooms. The church’s governing board unanimously approved a letter of intent on August 17.

Under the proposal, the church would receive ownership of 100 parking spaces in a garage built into the development, with a separate entrance for church users. Church leaders said the sale would help address long-term financial challenges, with proceeds invested in the endowment to support building maintenance and ministries.

Core Spaces expects to pay into Bloomington’s affordable housing fund rather than include income-restricted units. If the two sides cannot reach a purchase agreement within a 120-day negotiating period, the sale will not go ahead.

The deal shows how a church can release the value of land it uses only part of the week. Parking lots near a university can be valuable development sites, and by negotiating guaranteed spaces in the new garage the church keeps what it needs while turning surplus land into an endowment that can support its building for years.

Some Jamaican churches sit near colleges and universities, in areas such as Mona and Papine, Mandeville and Montego Bay, where student housing may be in demand. A church with more land than it needs could consider a sale or long lease to a housing developer, while securing parking, access and a share of any benefits in the agreement. Investing the proceeds, rather than spending them, protects the church’s future.

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