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?)
Back home, my parents have a small portfolio of rental properties that they own with their LLP and LLC. My dad has always been interested in investing in real estate, and the investments he’s made have been successful. Our house has at least doubled in value since we purchased it, and the other properties are bringing in steady revenue from both commercial and residential rent. What I would do is target properties in up-and-coming areas, as I know they will increase in value. Areas near me that are becoming more and more popular are Frenchtown, NJ, Lambertville, NJ, and Doylestown.
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)?
The New Hope and Solebury areas are in dire need of lower-cost living, as the population demographic is very affluent. My mom sits on a zoning/development committee for the township of Solebury, and they are working on the development of low-rent apartments near the shopping district of Solebury, which I think will create a very positive social effect on the area. Diversifying who can afford to live in Solebury will create more social opportunities and opportunities for the posterity.
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?
Because I want to become a fiduciary, I may work with real estate companies and help people find good mortgages and investment properties in my line of work. Having a basis of knowledge in the industry will help me be more helpful to my clients in these regards. One day I may even open my own firm, in which case I will probably buy a property to house it.