Philadelphia Hospital Redevelopment Promises 8% Returns For Investors

Philadelphia has experienced ups and downs over the past several years, but there are signs of life along the North Broad Street corridor. Secure Living announced a new project that offers investors the opportunity to participate in restoring the neighborhood. 

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The project centers around the Hahnemann University Hospital, which closed in June 2019, a move that was a blow to the local community. The Hahnemann Hospital redevelopment project combines six separate land parcels on Broad and 15th Streets, promising to bring new life to this area. 

A Low Barrier To Entry

The offering is common stock, a Regulation CF investment, which means it is open to all investors. The hold period is expected to be 3-4 years, and investors are offered an 8% cash return with a 30% profit share. The minimum investment is $500, and the fund must raise $124,000 by Sept. 30, 2024. All previously committed funds will be returned if the minimum is not raised. After that deadline, if the minimum is reached, those who committed funds become shareholders in the company. One thing to note is that the equity shareholders will be last in line to get paid, as if a public company goes bankrupt. 

The developer is the American Asia Africa Consulting Corporation. Not much is known about this company; this is the first time it has presented a project of this style as a security offering. The offering states that the company has invested in infrastructure initiatives and technology to support various commodities. Chiu-Ling Wang solely owns the company. Her track record as an investor is not readily available. 

Some crowdfunding projects already have a loan in place. This begins with an initial capital raise via crowdfunding and then pursues traditional financing of $65 to $75 million to complete the project. The developer also seeks to take advantage of any government funding available to restore these buildings. 

An Area In Transition

While The North Broad Street area has been relatively quiet over the past decade, signs of a promising change are emerging. The North Broad Street corridor is witnessing a surge in active projects, particularly around the North Philadelphia Amtrak and SEPTA stations. Most of these projects are focused on multifamily apartment buildings. 

A standout project is the Beury Building, a historic property that is being revitalized by Shift Capital into a Courtyard by Marriott hotel, with a residential building and ground-floor retail space next door. One building that is not part of this project but was part of the original Hahnemann campus on nearby Race Street has already been redeveloped and is attracting biotech tenants. 

A North Broad Business Improvement District was approved this year, a positive sign that local businesses are investing in the corridor’s future. Last year, the North Broad Renaissance project unveiled a five-year plan for the area, with a focus on retaining businesses and making capital improvements, including new plantings and the development of pedestrian areas. 

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A Plan For Renovation And Releasing

Planning and preparation are very important with a project of this size. The area has CMX-5 zoning, which means that it is zoned for mixed-use development. This flexibility may provide various uses, but its progress through city planning channels is worth watching as this project develops. 

 The offering states that a prospective tenant is being kept confidential. This tenant may be for the hospital building, which is the largest structure in the development. The hospital will need to be upgraded to current medical standards. The identity of this tenant will not be disclosed until the entire project is ready for lease-up, which could be over two years. The rest of the project may have a variety of uses, including senior living, apartments, and patient and medical facilities. 

While the potential for this area and the properties involved is clear, the details of the offering show significant risk. A lot can happen between the inception of the deal and its eventual completion and lease-up stage. Investors are always encouraged to conduct due diligence about offerings of this nature. 

Are You Missing Out On Higher Yields?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For example, the Jeff Bezos-backed investment platform just launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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