This document discusses an investment opportunity involving a mixed-use property located at 1050 Lancaster Avenue. The property consists of 4 commercial units, 2 student apartments, 1 office, and 1 garage for a total of 7,500 square feet. The investor proposes 3 capital projects: improving the parking lot, updating the exterior facade, and rehauling the back courtyard. They also want to improve the tenant mix by filling the current vacancy and adding 2 popular restaurants. Financial projections estimate property investment returns of 8-12% and equity investment returns of 13-21%, depending on the purchase price. The document argues this is an investment opportunity that is "too good to walk away from."

1. 1050 Lancaster Avenue: An Investment too Good to
Walk Away From

6. Our Property – 1050 W.
Lancaster Avenue

Mixed Use
Property
 4 Commercial Units
 2 Student-Approved
Apartments
 1 Office
 1 Garage

7500 Square Feet

7. 1046 Lancaster Avenue

Bike Shop – Cycles BiKyle

8. 1046-B Lancaster Avenue

Student-Approved
Apartment

9. 1048 Lancaster Avenue

Violin Repair Shop – Kot’s Violins

10. 1048-A Lancaster Avenue

Student-Approved
Apartment

11. 1050 Lancaster Avenue

Vacancy

12. 3 Roberts Road

Peter’s Bryn Mawr Upholstering Co.

13. 5 Roberts Road

Office Space & Garage

14. Our Strategy for the
Property

3 Capital Expenditure Projects
 Parking Lot
 Façade Improvements
 Back courtyard re-haul

Improve Tenant Mix

15. Project 1 – Create More Efficient Parking

As listed – 8 spots on property
 Solution : knock down garage and office

16. 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

17. Project 2 – Update Exterior of
Property
No fluidity between buildings
 Wasted Space above corner unit


18. Properties that
we like

19. Project 3 – Re-haul the Back
Courtyard

20. 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

21. Improvements to Tenant Mix

Step 2 – Introduce a new
Main Line Institution
 Diner, American Style
Restaurant
 Nudy’s Café or
Joe’s Place?

22. 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


23. 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%

24. Financial Performance of
“1050”
 Purchase at $1,790,000.00 – listed price
○ Property IRR – 8%
○ Equity IRR – 13%

25. Decision Time!
Thank You

26. Additional Information
Rent Growth
 Pro Forma (Revenues)
 Pro Forma (Expenses + Cash Flow)
 Property Revenues and Expenses
 Property Returns (I)
 Property Returns (II)


27. Rent Growth
Additional Information

28. Pro Forma (Revenues)

Additional
Information

29. Pro Forma (Expenses + Cash
Flows)

Additional Information

30. Property Revenues and
Expenses

Additional Information

31. Property Returns

Additional Information

32. Property Returns (II)

Additional Information