Neuhoff Ranch
"This isn't a venture deal. We're inviting you to be part of something genuinely special — a neighborhood institution in the making, in one of the DMV's most beloved communities, backed by two operators who know how to build things that last."
Del Ray's missing piece
Del Ray has incredible restaurants, beloved community events, and a fiercely loyal neighborhood culture. What it doesn't have is a home goods store that doubles as a venue and triples as a community hub. Neuhoff Ranch fills that gap — and it does it from a building that already tells a story.
Monthly debt service on the SBA 504 + 7(a) stack is $27,227. Equivalent market lease on 2,022 SF at $160/SF = $26,960/month. Ownership costs virtually the same as renting — except every payment builds equity in a Del Ray property. The founders also move in upstairs, eliminating a $4,500/month personal mortgage and adding $54K/year in effective income.
Three rooms. Five revenue streams.
One neighborhood institution.
Beautiful, affordable objects for hosting and homemaking across three distinct rooms — kitchen, dining, living. House label products (spice blends, linen, candles) at 70–80% margin. $700K by Year 3.
A back-of-house wine bar where every dish and glass is tagged for sale. NRG manages bar operations at 6% of gross sales. Small bites sourced wholesale from NRG. 66% blended margin.
A bookable rear building and lush backyard — rare on Mt. Vernon Ave. Private hire at $800–3,000/event. Home School workshops at $45–85/person. 82% events margin. $225K combined by Year 3.
| Revenue Stream | Yr 1 | Yr 2 | Yr 3 | Yr 5 | COGS |
|---|---|---|---|---|---|
| Retail — Home Goods & Entertaining | $350,000 | $550,000 | $700,000 | $900,000 | 45%→42% |
| Bar — NRG-managed (net of 6% fee) | $55,000 | $75,000 | $95,000 | $120,000 | 28% |
| Small Bites (NRG wholesale) | $15,000 | $20,000 | $28,000 | $35,000 | 45% |
| Events & Private Hire | $50,000 | $100,000 | $160,000 | $200,000 | 18% |
| Programming | $20,000 | $40,000 | $65,000 | $100,000 | 25% |
| Total Revenue | $490,000 | $785,000 | $1,048,000 | $1,355,000 | ~61% GM |
Year 1 = ~6 months Thu–Sun soft open. Full operations from Year 2. Founders keep day jobs through Year 2 — zero payroll in OpCo until Year 3.
$3.737M all-in — structured to last
The SBA 504 program enables owner-occupants to purchase commercial real estate with 10% down. The CDC 2nd mortgage locks in at 6.5% fixed for 25 years — a rare rate protection in any environment. LB's track record at NRG (including securing federal funding during the pandemic) makes this application compelling.
What investors get
This isn't a venture deal. We're not promising a 10x return or an exit event. We're inviting you to be part of something genuinely special — with a real preferred return, a stake in the brand, and Del Ray real estate as your downside floor.
OpCo profitability path
OpCo pays full market rent to PropCo from Day 1 — $332K/yr escalating at 3% annually. No founder payroll in Years 1–2. Positive NOI from Year 3 onward as revenue matures and the business finds its stride.
| Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | |
|---|---|---|---|---|---|
| Total Revenue | $490,000 | $785,000 | $1,048,000 | $1,277,000 | $1,355,000 |
| Gross Profit | $296,350 | $479,500 | $669,750 | $816,000 | $866,650 |
| Gross Margin | 60.5% | 61.1% | 63.9% | 63.9% | 63.9% |
| 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 | — | — | — |
| Net Operating Income | — | — | +$101,634 | +$152,739 | +$185,948 |
| Investor Preferred Distribution | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
Yr 1–2 NOI losses covered by $100K working capital reserve. Preferred distributions paid from reserve if needed. Full financial model available at financials.html.
Two people built for exactly this
Director of Operations at Neighborhood Restaurant Group — developing systems, training leaders, and driving KPI accountability across a portfolio of DC's most beloved hospitality businesses. Played a critical role in securing federal, state, and local funding for NRG during the pandemic. Over a decade in events and operations, including Snallygaster — the largest beer festival on the East Coast. Georgetown University, American Studies & Sociology. Del Ray resident.
Early team at Uber and Sweetgreen — two of the defining consumer brands of the last decade. Currently leading partnership development at an AI company. American University Kogod School of Business. Brings a decade of startup, growth-stage, sales, and marketing experience, and the relationship-building instincts that make a business more than just a business. Del Ray neighbor and firm believer that the best investment you can make is in your own backyard.