Workforce Housing Value-Add

Located in Coraopolis, PA, west of Pittsburgh along the Ohio River, this portfolio offers modernized, clean, and affordable housing for middle- and moderate-income residents in the Pittsburgh region.

In 2017 Rice Pegher acquired the initial 37 unit mixed use portfolio in Coraopolis, PA. The goal for the investment was to redevelop the distressed assets into workforce housing that led the market in modern amenities, professional management, and affordability.

The strategic insight was that stabilized assets in the Coraopolis submarket would provide for an affordable alternative to several of the surrounding higher-priced communities, making this an ideal solution for the large workforce housing needs in the area.

Acquisition

Upon acquisition we immediately started our rehabilitation process of exteriors and interiors and installed professional management.

Rice Pegher achieved asset stabilization within 12 months. Upon stabilization we refinanced the portfolio with existing lending partners to acquire and rehabilitate an additional 17 units in the immediate area, fund an operating account, and return initial capital to the principals.

Outcome

At present, Rice Pegher has trimmed the portfolio down to the best 40 units by selling off three commercial buildings and two single family homes and donating one vacant lot to the borough.

We’ve defined a process for analyzing, acquiring, rehabilitating, and delivering workforce housing to drive significant value for investors while offering best-in-class housing to a stable market of renters, and providing real value to communities. This is a strategy actively deployed on a larger scale in ongoing developments in New Brighton and Rochseter, PA.