Imagine the excitement of discovering a unique real estate gem – not just any ordinary house or apartment, but an old high school!
This is the story of Jesse Wig, who stumbled upon such a rare find in his hometown of Homestead, Pennsylvania.
The moment he heard about the off-market deal for an abandoned school, he knew it was an opportunity he couldn’t miss. “This is too good to pass up,” he thought.
Jesse had seen his fair share of deserted schools growing up in Homestead, but this was different.
It was a chance to embark on a massive investment, but he knew it was too big a task to tackle alone.
So, he reached out to two experts in the field: Adam Colucci, a 35-year-old real estate investor and audio-video business owner, and Dan Spanovich, a 42-year-old real estate developer and lawyer.
Together, in May 2019, the trio purchased the forsaken Bowtie High for $100,000.
Their ambitious plan? To transform it into a 31-unit apartment building.
However, they soon realized that their initial budget of $2 million was a gross underestimate – the actual cost would be a whopping $3.3 million.
“Our biggest concern was how much money would be needed to convert the space,” Colucci shared with CNBC Make It.
Their financial challenges were compounded when their bank withdrew financing at the last minute.
Despite this setback, they secured a $2 million mortgage from another bank and began to pool their resources to turn their dream into reality, paying around $12,000 a month.
The transformation they achieved was nothing short of magical.
The old auditorium was converted into a cozy resident’s lounge, retaining the original wooden flooring.
They cleverly repurposed old shelves to create intimate spaces within the lounge.
The gymnasium was split into two sections – one for free weights and the other for half-court basketball.
The bleachers? Ingeniously turned into storage spaces.
One of the most fascinating aspects of this project was its historical significance.
By renovating an old high school, they qualified for historic tax credits from both the state of Pennsylvania and the federal government.
This meant preserving iconic features like the terrazzo tiles in the hallways and the original chalkboards.
By October 2021, leasing had already begun, even before the renovations were fully complete.
And within just six months, Bowtie High reached full occupancy.
The apartments, with rents starting at $1,400 for a one-bedroom and $1,600 for a two-bedroom, featured 12-foot high ceilings and spacious layouts like “The Vanderbilt,” complete with an L-shaped kitchen and a walk-in closet.
As for what’s next for this dynamic trio?
They’ve already set their sights on another abandoned school property.
When Colucci learned that a school across the street was up for sale but already under contract, he said, “I knew that we needed to have it in our portfolio.”
Fortunately, that deal fell through, and they acquired the property for $90,000 and a $3.25 million mortgage.
“When you look out of the front windows, that’s what you see, so we could control what we see,” Colucci told CNBC.
So, stay tuned for another jaw-dropping transformation!
Watch this amazing renovation of this old school in the video below!
Watch this amazing renovation of this old school in the video below!
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