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Freedom Apartments

Redeveloping a neighborhood for tomorrow

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4009 - 4023 Haverford Ave

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4009 - 4023 Haverford Ave

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4009 - 4023 Haverford Ave

Good Food Flats

4030 Haverford Ave

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Site Details

  • 8 parcels
  • Buildings from early 1900’s
    • Brick and Heavy Timber Construction
    • Not up to current code due to grandfathering
  • Site already has access to utilities, no special hook-ups required
  • 20,000 sq feet total
  • Different owners to the properties
    • May cause issue with buyout, negotiations required

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Why This Site?

  • Access to Septa Bus and Trolley Lines (Rt. 10, 30, & 43)
  • Close to CHOP, University of Penn, Drexel University
  • Existing restaurants, community hubs
  • Existing apartment buildings in area
  • Philadelphia Tax Abatement (10 year)

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Design Features

  • Single elevator running through center of building
  • Two stairwells
  • Lobby and hallways with laminate flooring
  • Wood or faux wood flooring for units
  • Studios, 1 Bedrooms, 2 Bedrooms
  • Onsite Laundry
  • Onsite Parking

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Cost Breakdown of Purchase

  • Each parcel worth around $150,000, 8 parcels
  • Total $1.2 M
  • Zoned Residential Multi-Family Use
    • No rezoning required
    • Permitting required for demolition, building
  • $300,000 for permitting, legal fees
  • $400,000 for architect fees
  • $400,000 for engineering fees

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Nature of Construction

  • Will require GC, 3-5% of project cost - $500,000
  • Typical Building Materials
    • Concrete and Steel structure
    • Light-gauge Steel framing
    • Concrete/Stone building skin
  • Street closure required for demolition (1-2 wks)
  • 16 month schedule
    • Demolition to take place February
    • Skin applied by November
    • Open by July
      • In time for University Students

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Cost Breakdown of Construction

  • Building Area: 80’ x 150’ = 12,000 sq ft
  • Parking Lot Area: 20,000 - 12,000 = 8,000 sq ft
    • Roughly 30 parking spaces, $20,000
  • $15 per sq ft to demo
  • $175 per sq ft to develop (high estimate)
    • Union work in the city
    • 4 floors = $700 per sq ft
  • $715 x 12,000 sq ft = $8.6 million

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Financing Options

  • $12.5 M Required
    • $11.4 M + 10% for contingencies
  • Company Funds
    • Firm directly funds construction
  • Capitalized Interest
    • Cost of funds, deducted as depreciation
    • Adds $1 M to cost as money is set aside to pay for loans
  • Loans
    • Construction and Conventional loans
    • Require payback during and after completion

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Revenue

  • Average rent in Philadelphia $1,500 per unit
    • Newer building, assume $1,800
  • Average space in unit = 750 sq ft
  • 50 total units (75% of available space)
  • $90,000 monthly income, $1.08 M yearly
  • Roughly $100,000/yr maintenance
    • Cleaner at $40,000
    • Facility Manager at $60,000
  • Expected payback period of 12 years

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Marketing

  • Low Budget
  • Physical Advertisements
    • Banner
    • Posted Fliers
  • Online Marketing
    • Post to apartment finding websites
    • Send out emails to students

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Sources

  • City of Philadelphia website
    • Atlas
    • Permit dept.
  • RSMeans
  • Curbed Philly