Publications
Publications
- February 2008 (Revised September 2009)
- HBS Case Collection
Lance Johnstone: Developing 3000 North Broad
Abstract
The case focuses on Lance Johnstone, a former NFL player, who has dabbled in real estate development during his playing career, and now, as a retired player, is trying to pursue the development of a 10-unit rental apartment building in a depressed area of Philadelphia, his hometown. The case presents the process Johnstone and his partner went through to purchase the vacant land and develop a construction budget and financing plan. Students are asked to evaluate the prospective financials for this development and assess the viability of the development plan and its prospective returns. The case then ends with a change in the fundamental assumption—the bank has withdrawn and a new bank will loan less than the original plan, and the construction budget has come in considerably higher. Students must evaluate the plan and prospective returns in light of this new information.
Keywords
Budgets and Budgeting; Development Economics; Construction; Entrepreneurship; Financing and Loans; Investment Return; Urban Development; Real Estate Industry; Philadelphia
Citation
Roberts, Michael J., and Nabil N. El-Hage. "Lance Johnstone: Developing 3000 North Broad." Harvard Business School Case 808-126, February 2008. (Revised September 2009.)