Ross School - Senior Projects 2010

Student: Marius Grant

Mentor: Shelby Raebeck

Product                            

Title: 208 East 124th Street, East Harlem Investment Opportunity.

Description:

I personally believe that East Harlem will enjoy an economic and social boom in the near future, therefore I decided for my Senior Project to make a prospectus for a property in East Harlem, New York. I did a thorough study of the East Harlem area and the advantages to support my investment reasoning. East Harlem has always been on the edge of becoming the next hot and trendy area, and now several contributing factors will inevitably help the growth. I studied the real estate market and compared it with other areas to decide on a local apartment building to renovate and eventually earn a profit.

Details:

Sales Pitch Power Point and Prospectus

Presentation Power Point

Abstract

When I first started I was unsure on what to do. I began with the idea of showing a business cycle using animation, but quickly gave up that idea during my summer holiday. I always had an interest in general business since I took business studies in England, but didnŐt know what to choose in such a large field. I narrowed it down to either shipping, as Norwegians in general have a passion for ships or real estate. I realized when I was reading my summer reading book, Trump: The Art of the Comeback that I wanted to do real estate. Also because I knew that my audience can relate more to a real estate project than a shipping project anyway. I spent my lasts days of summer interning in a real estate firm in Oslo, Norway. There I got the idea to make a real estate prospectus.

When I returned to the US, I began to select my area of choice. I decided to go with New York City since itŐs the closest city to the Ross School and its one of the largest cities in the world.  Since the United States is currently in an economic recession, I saw this an exciting challenge when I decided to go with NYC. I needed to find the area that had the greatest potential for economic and social growth in the near future. I decided to go with East Harlem as it has lately received several factors that will ultimately lead to a stronger economic area.  I did a thorough research on the area including health care, infrastructure, history and cultural aspects. At the end of my research I realized that one of the most important factors in the area was the history. 50% of the buildings in the area were developed before WWII and made mostly up of brownstone, which is of great value today.

It is crucial to do thorough research on the area of the selected property. When I was satisfied with the area research, I found a property that I thought was located in the best place in East Harlem.  I then, with some help, analyzed the financial aspects of the property.  To my surprise, I had a lot more return of equity than I thought I would. It ended up being an actual great investment, which motivated me to continue real estate research in NYC.

In the end I had created a real estate prospectus of 208 E 124th ST, which included history of the area, area description, contributing factors, real estate analysis and financial analysis.  I also created a Power Point with the convincing arguments of my prospectus that I used in a sales pitch I did with some faculty members and students. I tried to convince them to invest in the project by using all my research as supporting arguments and creating two scenarios depending on the future market.

Works Consulted

                                                                                        

ACS Division. "Community Snapshot 2008-CD 11: East Harlem." 2008.  New York City Government Page. 22 Nov. 2009 <http://www.nyc.gov/html/acs/
downloads/pdf/cd_snapshots/manhattan_cd11_eastharlem.pdf>.

JET. "Harlem Welcomes Bill Clinton To The Neighborhood." 20 Aug. 2001. Find Articles. 04 Dec. 2009 <http://findarticles.com/p/articles/
mi_m1355/is_10_100/ai_77557475/>.

Massey Knakal. "208 E 124 Street." 13 Sept. 2009. Massey Knakal Realty Services. 29 Nov. 2009 <http://www.masseyknakal.com/listings/detail.aspx?lst=19548>.

NYPD CompStat Unit. "Police Department City of New York-Crime Statistics." 21 Dec. 2009. New York City Government Page. 16 Nov. 2009 <http://www.nyc.gov/
html/nypd/downloads/pdf/crime_statistics/cs025pct.pdf>.

Onboard. "East Harlem: Local Schools." 2010. Corcoran. 15 Dec. 2009 <http://www.corcoran.com/neighborhoods/index.aspx?page=ManhattanDescription&N=eastharlem&S=Y>.

—. "Neighborhood Statistics-East Harlem." 2008. New York Post. 22 Nov. 2009 <http://www.nypost.com/realestate/neighborhoods/manhattan/east_harlem.htm>.

Regele, Joe. "Fwd: Message from Joe Regele." Message to Marius Grant. 8 Dec. 2009. e-mail.

Terry Pristin. "A Difficult Birth for East Harlem Mall." New York Times 2009: 2.

Urban Mass Transportation Administration. Draft Environmental Statement Second Avenue Subway, Route 132-A. 01 Sept. 1971. 01 Dec. 2009 <http://www.nycsubway.org/articles/2ndave-route132a.html#intro>.

Community Member (Details)

Serena Boardman. Real estate agent in New York City for SothebyŐs.