The Mormon church, which holds vast land across the United States, is moving into large-scale dwellings and new-town development. As it expands real estate asset operations centered on farms and ranches into apartments, hotels, and planned cities, it is emerging as a key player in local development.
On the 26th, Bloomberg, citing data from real estate information firm Reonomy, said the Church of Jesus Christ of Latter-day Saints (the Mormon church) owns at least 2.4 million acres (about 9,712 square kilometers, 2,938 million pyeong) of land in the United States. That is roughly twice the size of the state of Delaware, with an assessed value exceeding $20 billion (about 27.67 trillion won).
The actual asset size is estimated to be larger. That is because properties in states such as Texas, where there is no obligation to disclose sale prices, and investments made through external funds and partnerships were excluded from the tally. The Mormon church has not disclosed the total real estate asset size.
In the real estate industry, there is an assessment that the church's investment organization operates more like sovereign wealth funds or large investment firms than a religious institution. The Mormon church owns farms, ranches, offices, apartments, and hotels through several subsidiaries. Listed securities held by nonprofit investment manager Ensign Peak Advisors exceeded $60 billion (83 trillion won) as of the end of June.
Recently, it has been actively developing land it has held for a long time. In Aurora, Colorado, the Mormon church plans to create a new city called "Tributary," complete with dwellings, shops, schools, parks, and a fire station for more than 12,000 residents. In Florida, it is pushing the "Sunbridge" project to build more than 36,000 dwellings on a former ranch site of about 109 square kilometers. It is also preparing dwelling developments of several thousand units near Phoenix, Arizona, and Austin, Texas.
The Mormon church explained that as cities expand, the need to develop existing farmland for residential and commercial use has grown. Tyler Buswell, global head of development at Property Reserve, the church's real estate investment arm, said, "As urban populations have increased, some of the land the church has held for a long time has been included in growth areas," and added, "This land is more suitable for residential and commercial development than for agricultural use."
However, Bloomberg said controversy is growing over the large-scale developments. While the introduction of dwellings and commercial facilities could increase jobs and basic amenities, there are concerns that rural sprawl, environmental damage, traffic congestion, and water resources shortages could worsen. In Florida, plans for a toll road to be built on church-owned land that would cut through a nature preserve have sparked backlash from residents and local government officials.
Nicole Wilson, an Orange County Commissioner, said, "If you build a toll road across a nature preserve to connect a private community with another private community, that betrays the public trust."
The Mormon church is known to buy real estate with the goal of long-term holding rather than short-term gains. Clint Beaty, executive vice president at Tavistock Development, said, "We thought looking 25 to 30 years out was long-term thinking," and added, "But for them, that's just warming up. The minimum unit they have in mind is closer to 100 years."