p&e realty presents - 1050 lancaster avenue: an investment too good to walk away from
DESCRIPTION
The final project for my Real Estate Investments course required teams to select a property in the Villanova, PA area to evaluate and provide rationale for electing to invest in that property.TRANSCRIPT
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1050 Lancaster Avenue: An Investment too Good to
Walk Away From
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Our Property – 1050 W.
Lancaster Avenue
Mixed Use
Property
4 Commercial Units
2 Student-Approved
Apartments
1 Office
1 Garage
7500 Square Feet
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1046 Lancaster Avenue
Bike Shop – Cycles BiKyle
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1046-B Lancaster Avenue
Student-Approved Apartment
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1048 Lancaster Avenue
Violin Repair Shop – Kot’s Violins
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1048-A Lancaster Avenue
Student-Approved
Apartment
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1050 Lancaster Avenue
Vacancy
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3 Roberts Road
Peter’s Bryn Mawr Upholstering Co.
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5 Roberts Road Office Space & Garage
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Our Strategy for the
Property 3 Capital Expenditure Projects
Parking Lot
Façade Improvements
Back courtyard re-haul
Improve Tenant Mix
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Project 1 – Create More Efficient Parking
As listed – 8 spots on property
Solution : knock down garage and office
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Project 2 – Update Exterior of
Property Currently, this building is not
“aesthetically pleasing”
(ugly).
Discolored exterior
Less than ideal signage
and windows
Wasted space on corner
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Project 2 – Update Exterior of
Property No fluidity between buildings
Wasted Space above corner unit
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Properties that
we like
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Project 3 – Re-haul the Back
Courtyard
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Improvements to Tenant Mix
Step 1 – Deal with
Current Vacancy
Success of sit down
food venues along
Lancaster Avenue that
provide outside seating
Café and Gelato
restaurant
○ Install seating in
front, on side, and out
back of property
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Improvements to Tenant Mix Step 2 – Introduce a new
Main Line Institution
Diner, American Style
Restaurant
Nudy’s Café or
Joe’s Place?
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What “1050” looks like in 2019
Two extremely popular student
apartments
Two tenants providing extremely safe
and stable cash flows
Two recently-introduced, yet wildly
popular restaurants serving the needs of
the neighborhood
In total, a property that no longer gets
looked over
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Financial Performance of
“1050”
3 Scenarios
Purchase at $1,465,060.98 – 7.75 Cap
○ Property IRR – 12%
○ Equity IRR – 21%
Purchase at $1,576,975.36 – 7.2 Cap
○ Property IRR – 10%
○ Equity IRR – 16%
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Financial Performance of
“1050”
Purchase at $1,790,000.00 – listed price
○ Property IRR – 8%
○ Equity IRR – 13%
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Decision Time!
Thank You
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Additional Information
Rent Growth
Pro Forma (Revenues)
Pro Forma (Expenses + Cash Flow)
Property Revenues and Expenses
Property Returns (I)
Property Returns (II)
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Rent Growth
Additional Information
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Pro Forma (Revenues)
Additional
Information
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Pro Forma (Expenses + Cash
Flows)
Additional Information
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Property Revenues and
Expenses
Additional Information
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Property Returns
Additional Information
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Property Returns (II)
Additional Information