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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.
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1050 Lancaster Avenue: An Investment too Good to
Walk Away From
Our Property – 1050 W.
Lancaster Avenue
Mixed Use
Property
4 Commercial Units
2 Student-Approved
Apartments
1 Office
1 Garage
7500 Square Feet
1046 Lancaster Avenue
Bike Shop – Cycles BiKyle
1046-B Lancaster Avenue
Student-Approved Apartment
1048 Lancaster Avenue
Violin Repair Shop – Kot’s Violins
1048-A Lancaster Avenue
Student-Approved
Apartment
1050 Lancaster Avenue
Vacancy
3 Roberts Road
Peter’s Bryn Mawr Upholstering Co.
5 Roberts Road Office Space & Garage
Our Strategy for the
Property 3 Capital Expenditure Projects
Parking Lot
Façade Improvements
Back courtyard re-haul
Improve Tenant Mix
Project 1 – Create More Efficient Parking
As listed – 8 spots on property
Solution : knock down garage and office
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
Project 2 – Update Exterior of
Property No fluidity between buildings
Wasted Space above corner unit
Properties that
we like
Project 3 – Re-haul the Back
Courtyard
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
Improvements to Tenant Mix Step 2 – Introduce a new
Main Line Institution
Diner, American Style
Restaurant
Nudy’s Café or
Joe’s Place?
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
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%
Financial Performance of
“1050”
Purchase at $1,790,000.00 – listed price
○ Property IRR – 8%
○ Equity IRR – 13%
Decision Time!
Thank You
Additional Information
Rent Growth
Pro Forma (Revenues)
Pro Forma (Expenses + Cash Flow)
Property Revenues and Expenses
Property Returns (I)
Property Returns (II)
Rent Growth
Additional Information
Pro Forma (Revenues)
Additional
Information
Pro Forma (Expenses + Cash
Flows)
Additional Information
Property Revenues and
Expenses
Additional Information
Property Returns
Additional Information
Property Returns (II)
Additional Information
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