Financial Model & Offering Documents
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The financial model and private placement memorandum contain the complete picture — assumptions, projections, risk factors, and investor terms. Please reach out directly with any questions.
This document is a preliminary draft for review purposes only. It has not been reviewed by legal counsel and does not constitute an offer to sell securities. A final attorney-reviewed PPM will be provided before any offering is made.
These materials are confidential and intended solely for prospective investors who have received access credentials. The financial projections contained herein are estimates based on management assumptions and comparable market data. Actual results may differ materially. This is not an offer to sell securities in any jurisdiction where such an offer would be unlawful. Please consult your financial and legal advisors before making any investment decision.
The numbers in brief
| Revenue Stream | Yr 1 | Yr 2 | Yr 3 | Yr 5 | Margin |
|---|---|---|---|---|---|
| Retail — Home Goods & Entertaining | $350,000 | $550,000 | $700,000 | $900,000 | 55%→42% |
| Bar — NRG-managed (net of 6% fee) | $55,000 | $75,000 | $95,000 | $120,000 | 72% |
| Small Bites (NRG wholesale) | $15,000 | $20,000 | $28,000 | $35,000 | 55% |
| Events & Private Hire | $50,000 | $100,000 | $160,000 | $200,000 | 82% |
| Programming | $20,000 | $40,000 | $65,000 | $100,000 | 75% |
| Total Revenue | $490,000 | $785,000 | $1,048,000 | $1,355,000 | ~61% GM |
| P&L Summary — OpCo | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 |
|---|---|---|---|---|---|
| Gross Profit | $296,350 | $479,500 | $669,750 | $816,000 | $866,650 |
| Rent to PropCo | ($331,941) | ($341,899) | ($352,156) | ($362,721) | ($373,602) |
| Payroll | $0 | $0 | ($125,000) | ($200,000) | ($200,000) |
| Other OpEx | ($50,800) | ($79,700) | ($90,960) | ($100,540) | ($107,100) |
| Net Operating Income | –$86,391 | –$57,901 | +$101,634 | +$152,739 | +$185,948 |
| Investor Preferred Distribution (5%) | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
Yr 1–2 NOI losses covered by $100K working capital reserve. Founders keep day jobs through Year 2 — zero payroll until Year 3. Full assumptions and sensitivity analysis in the Excel model.
Two-LLC structure
PropCo owns the building and services the SBA debt. OpCo runs the business and is where investors participate. The intercompany rent keeps real estate liability ring-fenced from business operations.
SBA 504 + 7(a) debt
Receives $332K/yr rent
LB + JG only — no investors
← hard asset backing
Pays rent to PropCo
Investors hold 1.5% per $100K
5% preferred return
Founders move into the residence above the store, eliminating their $4,500/month personal mortgage. That's $54,000/year in effective additional income — accepted by SBA lenders as income for owner-occupied commercial real estate underwriting.
Simple, honest, and built for friendlies
This isn't a venture deal. You get a preferred cash return, a real ownership stake, and a seat at the table in the best new thing on Mt. Vernon Avenue.
per $100K
Return
Del Ray RE