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Three friends bought an abandoned high school in Pennsylvania for $100,000 and turned it into a stunning 31-unit apartment building, complete with a gym and shared living space.
When 34-year-old real estate agent Jesse Wig saw that the school in Homestead, Pennsylvania, was listed for sale in 2019, he saw an opportunity, according to CNBC.
Wig and Adam Colucci, a 35-year-old real estate investor and owner of an audio-video business, considered several options for the building, including a wedding venue, a beer garden, and even WeWork space.
Dan Spanovich, a 41-year-old developer and multifamily property manager, joined the team and after two years, the former high school was turned into an apartment building with 29 one-bedroom units for around $1,400 a month and 2 two-bedroom units for up to $1,650.
The former Auberle Education Center in Homestead, Pennsylvania was converted into apartments after being bought in May 2019 for $100,000
The former high school was turned into an apartment building with 29 one-bedroom units for around $1,400 a month and 2 two-bedroom units for up to $1,650
‘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 Make It.
‘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.
So they connected with Spanovich, a developer and multifamily property manager.
‘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 school hasn’t been used in years, but now the classrooms are apartments, the auditorium has been transformed into a shared space and there is a gym on the ground floor.
The school hasn’t been used in years, but now the classrooms are apartments, the auditorium has been transformed into a shared space and there is a gym on the ground floor
Their renovations are chronicled on Jesse Wig’s TikTok page, and says the projects have been ‘rewarding and beneficial to see the community improve’
Wig shares videos of the progress made on the former high school as it was being converted
We worked closely with the National Park Services to ensure it kept its historical significance,’ Colucci said. ‘We went out of our way to ensure the school kept its historical look.’
Six months after the apartment building hit the market, it was fully leased. The three partners split the expenses and profits based on a proportional share of the building, according to CNBC.
Since the partners’ interview with CNBC Make It in September, they have purchased two more schools that they are planning to turn into apartments.
The second school was purchased in August 2020 for $90,000.
Their renovations are chronicled on Wig’s TikTok page, and says the projects have been ‘rewarding and beneficial to see the community improve.’
The staircases in the former high school building had to be fully renovated
Just six months after the renovations were complete, the building was fully leased
The partners have since bought another school in the area and the plan for the property is to renovate it to have 33 residential units of mostly one-bedrooms and some studios
The partners said their first property needed to be renovated entirely but the second one did not. However, it did resemble a haunted house.
‘When the buildings look nice, you got a lot of people bidding on them, so you almost want them to look like haunted houses, so you have less competition,’ Spanovich said.
They said the plan for the second property is to renovate it to have 33 residential units of mostly one-bedrooms and some studios.
‘Someone once told me that you’ll go broke buying beautiful buildings, so be careful, Colucci said.
‘Luckily we have Dan on our team, and he was able to figure out the logistics to make it work.’
The partners also want residents from both buildings to have access to all the amenities, including the auditorium in the first school, as well as the double-decker parking garage and a rooftop deck in the second building.
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