Investing in Philadelphia's Future

Case Studies

Mixed-Use Acquisition & Stabilization: A Success Story

We’re proud to share the successful acquisition and rapid stabilization of this mixed-use property, a prime example of strategic investment and effective management. Purchased for $155,000 with a $124,000 loan at 8.00% interest, the property now serves as a steady income-generating asset.

The building features an upstairs residential unit, leased at $925/month, and a ground-floor retail space, which was vacant upon acquisition. Within one month, Footage Real Estate secured a seasoned bodega tenant for the retail space at $1,250/month. This swift turnaround brought the property to a 12.93% capitalization rate (cap rate) and a 26.13% cash-on-cash return, showcasing its profitability and strong cash flow potential.

Key Metrics

Metric	Details
Location	Kensington, Philadelphia
Purchase Price	$155,000
Acquisition Date	May 2024
Stabilized Cap Rate	12.93%
Cash on Cash Return	26.13%
Net Operating Income (NOI)	$19,500/year (post-stabilization)
Loan Terms	8.00% interest, $1,000/month payment
Gross Rental Income	$2,175/month
Down Payment	$31,000

This acquisition demonstrates how expertise and hands-on management can unlock a property’s potential, transforming it into a valuable, high-yielding asset.

High Yeilding Stabilized Retail Property Acquisition

This property acquisition demonstrates a solid return on investment. Purchased in September 2023 for $200,000 with a $160,000 loan at 6.75% interest, the property came with a tenant already in place.

The building features a fully built-out commercial kitchen and is located on a highly trafficked street with excellent visibility, making it a prime commercial asset. The tenant, on a 10-year NNN lease at $2,500/month with 3% annual rent increases, provides a strong income return. The property delivers a 15% capitalization rate (cap rate) and an exceptional 36.00% cash-on-cash return.

Key Metrics

Metric	Details
Location	Kensington, Philadelphia
Purchase Price	$200,000
Acquisition Date	September 2023
Stabilized Cap Rate	15%
Cash on Cash Return	36.00%
Net Operating Income (NOI)	$30,000/year
Loan Terms	6.75% interest, $1,200/month payment
Rental Income	$2,500/month (with annual rent increases)

The addition of this stabilized retail property to the portfolio provides long-term cash flow with minimal risk due to the strong tenant commitment and favorable lease terms.