This historic building is situated in the small city of New Castle in western Pennsylvania near the Ohio border. Once a prosperous manufacturing and transportation hub, New castle now is very depressed. When purchased out of bankruptcy in 2015 for $575k all cash 42 of the 75 apartments were vacant with rents at a rock bottom $450/mo. Recognizing the great potential of this old but recently renovated historic former hotel the partnership capitalized on the exceptional but underutilized beaux arts lobby, upgrading it with period furnishings and adding tenant amenities.
At the new rent of $550 the 42 vacant units rented quickly because of the superior quality of our offering even in a soft market such as this. Whereas previous ownership were barely able to keep the building afloat with program tenants our fresh vision and energy attracted superior quality tenants and elderly retirees attracted because of the elevator and social amenities. In addition our marketing strategy utilizing various forms of social media was fundamental to our success. With construction and improvements having cost approximately $250k this property would easily appraise now for $2.4 million