Real Estate and Opportunities for Commercial Development: The interesting aspect of Andrew’s real estate career is that he was born and raised in Eastern Pennsylvania near Philadelphia (ask him if he grew up near Doylestown). While at Pitt Business, he started to see potential in Pittsburgh’s real estate market, which has led him to build a large portfolio of apartment buildings and commercial properties in the North Side, the South Hills, Moon Township (near the airport) and the West End (among others). Given what you know about local real estate in an area that you are familiar with, which specific neighborhoods would you target for your portfolio (i.e. what is the commercial potential?)
Around Flowood, my hometown, there are not a lot of valuable real estate locations. However, I would have to choose some land along Lakeland Drive, the major highway in Flowood. There are shopping centers build along that highway ad eventually, the land would be developed for a church or a bank (we have lots of both). I would definitely avoid land in Fondren, which is closer to downtown Jackson. Fondren is riddled with crime and terrible infrastructure. The only thing it has going for it is that there are major hospitals build in Fondren, making it a kind of hub for medical students.
The Social Impact of Real Estate: In addition to the commercial opportunities in the Pittsburgh real estate market, Andrew also emphasizes that real estate has tremendous potential to generate a positive social impact by supporting a stock of good quality apartments at affordable prices – with an emphasis on supporting financial literacy among his tenants. Based on the area you wrote about above, which neighborhoods that you know of could benefit from this combination of good quality apartments with reasonable rent (plus an attention to financial literacy)?
Fondren could use this the most. However, the biggest problem holding Fondren back is the lack of infrastructure and high amount of crime. But, with good apartments and financial literacy among its tenants, Fondren could slowly make a rebound. There are more buildings being built there, so they have started the process of turning around the town. If Fondren were able to cut down on crime and develop slightly better roads, it would be a much more realistic option of living there for people.
Other Examples Like This?: Based on your review of real estate as an area for opportunities in commercial development and social impact, how do you see real estate being relevant in the work you want to do in the future?
I don’t think real estate would be a focus of mine in the future. I don’t plan on working in the real estate area and the only interaction I could see would be when I am buying or selling a house. I think the most relevancy real estate would be in my career would be buying land and selling it later for development.