Three friends in Pennsylvania recently took a huge risk and it certainly paid off. Jesse Wig, Adam Colucci, and Dan Spanovich purchased an abandoned high school in Homestead, Pennsylvania for just $100,000 and transformed it into a stunning 31-unit apartment building.
“I was made aware of the school and, to be very honest, I wasn’t sure what made the most sense to do with the building,” Wig told CNBC. “But for that price, I had to acquire it and hoped we could come up with a good option in the future.”
“We had big eyes, and after two years of spinning our wheels, all the professionals told us that the end of the road is going to be residential,” Colucci added.
The trio of friends had a vision for the old school and after two years of hard work, their dream became a reality. The former high school now features 29 one-bedroom units for $1,400 a month and two two-bedroom units for up to $1,650. In addition to the apartment units, the building also includes a gym and a shared living space.
The partners worked closely with the National Park Services to ensure the historical significance of the building was maintained. They also had to consider the cost of the renovations and the competition for the building.
“These old buildings can be very challenging to convert,” Spanovich said. “We were willing to take a risk regardless of what use we would have for it. We knew that at this cost, we would be able to find some use for it that would generate enough return to satisfy everybody.”
The risk the three friends took paid off in the end. The building was fully leased in six months and they have since gone on to purchase two more schools which they plan on turning into apartments.
The trio of friends have chronicled their journey on TikTok.
@jessewig Bowtie High. Before/After. #realestate #realtor #realestateinvesting #beforeandafter ♬ Inspiring Emotional Piano – Metrow Ar