BALLER PARK, TIGARD OREGON

January 2024

HTFCP launches Baller Park, a Basketball themed "Sports and Food POD"  in Tigard, Oregon. A covered  ½ court basketball court,  mix of 15 food carts and retail vendors, craft beer cart and outdoor market. 

9770 SW Shady Lane, Tigard, Oregon

.47 acres with 1300 sq. ft 2 story building.

Property is located off Hwy 217 and Greenburg rd. in Tigard Oregon, at the Washington Square shopping complex exit.  A busy Starbucks is directly across the street. Tigard Medical offices sits next to Starbucks and an office building and Comfort Inns Hotel next door. Tesla, Harley Davidson and Jaguar dealerships down the street.  Major office complex is less than 5 minutes away and new housing development with 10 thousands new homes and apartments at the end of Scholls Ferry rd. 

We have secured the lease starting November 1st 2023 for 5 years with 2 (5) year extensions. This is a lease to purchase at $3,000 a month with a rent escalation of $300 added every year. The purchase price is $850,000 required to be executed within 48 months. 

Phase 1 is under way with electrical connection in place for 3 carts with expansion to 6 carts with current power. The house has been vacant with squatters living in it, on and off, for several years. There was extensive damage but we have cleaned up the inside and created temporary seating and a bathroom. We have put in bar seating on the deck with heating and putting up some picnic tables and a tent for outside seating. The first food cart is moving in 1st week of January with multiple cart owners with high interest to move in by end of February. The cart is operated by our cart Manager “Moose” who live minutes down the street from the POD. We are giving him “Free rent” until end of April then $2k a month for managing the cart owners and POD.  We have decided to install the basketball court into the front parking lot which allows us more space in the back. We will still use the parking lot for parking during non-game times.

Phase 2 will be focused on getting Letters of interests (LOIs) and lease agreements with deposits for the remaining food cart spaces with a target of 15 leases at $1500 a month which is low rents for the west side. Rents for the bar, house retail and basketball courts will make up the rest of the rents approaching $300k yearly gross rents. In speaking with Stone Bank, who specializes in nontraditional investments such as RV parks and glamping properties, the LOIs will support a $150k loan for build out of the park and after the leases are seasoned for a year, he believes he can give us a valuation of $1.75 to $2 million. This would put us comfortably at 40% loan to value for the purchase loan of $850k for the property as well as payoff of loan for build out.

We believe we can achieve enough LOIs to acquire the loan for the build out by end of February and achieve the full build out by April 2024 and a Grand opening in time for spring. 

Our POD design for the necessary requirements for infrastructure allows us to open quickly with limited permits or expensive system development charges. All permitting discussion has been carefully documented in emails and group meetings with the City of Tigard.

Phase 3 – will transpire at end of summer of 2024 or start of 2025 for steel structure cover for basketball court, fully integrated sewer and water hook ups and permanent bar structure.

15 food cart and retail tenants  $2-$3k a month, with a target of $300k yearly gross rents

Bar and Event revenue?

·  No night clubs or major bars in South Portland

Professional management FEEs. Form Separate LLC as “Master” tenant or underwriting (Eventually for exit or refinance)

Event revenue and Marketing fees (Videotape events for events

·  Sponsor banner revenue

·  Stream basketball events / tournaments, bring in clothing and drink sponsors

·  Club atmosphere after 10pm on weekends. No neighbors to annoy

·  Podcast studio for community

100K-150K Estimate

3 phase power available. 

·  Current 200amp service hooked up services 5-6 carts

·  Anything over will require new panels and permanent installation.

·  Can open now. 3 phases.

o  3-6 carts ready currently, building has indoor seating and bathrooms

o  Spring to build site, everything but steel building

o  September to build steel building

Email documentation with city of Tigard

·  No special permits or site plan for PODs required

·  Only minor permit needed for landscaping changes

·  Carts must sit on level paved ground

Cost break down of project $150k-$200k

·  Basketball court $20k

·  Electrical $40k

·  Plumbing $40k but not required at this time with our approved temporary solution

·  Landscaping – $15k-$30k 

·  Gas lines? 

·  Steel building or cover $20-$50k

·  Decking $10k

·  Current building for bar? or utilize a bar cart for now which will require no change of use permits saving time and money.

HTFCP is currently in talks with a local modular, affordable housing builder to develop semi-permanent cart structures that can still be designated as mobile food carts and retail. These structures are machine manufactured in Portland and come pre permitted with earthquake and seismic at current international building code and standards. These units are designed to be stacked like Legos up to 5 floors. Imagine an open-air entertainment mall with food retail on first level, retail on second and air BnB or hotel housing on 3rd floors. This can easily triple the value of the property with little additional costs or additional infrastructure. Imagine such a complex can easily be moved in less than a weekend and leaving little to no environmental footprint! Also, since the units are closer to traditional commercial real estate its easier for the banks to underwrite and give us a much higher valuation.

With a strategic partnership in place, we can develop these across the world quickly. The units can be shipped easily and placed anywhere in the world. One strategy discussed is selling some units to investors as office condos at $150k with a guarantee of 10-15% returns. HTFCP would than manage the units’ placing tenants and collecting a management fee as well as a sales commissions on the units.

1.  Development / Consulting – Provide professional market analysis, design and development services to developers and property owners. Design and permitting working with varying local building and land development agencies. A lot of other markets do not have permits to address food carts and PODs. 

2.  Management – Provide professional POD management to secure quality tenants and increase profits for vendors and property owners.

3.  Sales of the office condo units

4.  Moving and sourcing new properties for the office condos units to be placed for higher profits for our unit owners.

5.  Accredit Tenant – Obtain master leases for profit and help owners to stabilize rents and easier to obtain financing and selling of POD properties while making a profit.

6.  Marketing – Provide unique POD events based on location and demographics 

7.  Lending – Providing underwriting and loan services for other developers of pods

8.  Finance – Using profits for private lending for other assets and hard money loans or low interest loans to our operators for personal and business needs.

9.  Credit Card processing services – Obtain buy rate from bank and obtain revenue from vendor CC transactions

10.  Insurance underwriting and Policies – Providing group insurance policies for vendors and property owners. 

11.  Utilities – Provide reusable energy for profit (Battery storage and Solar). 

12.  Food Cart Media – Carts and vendors to educate increase credibility and gain investors, vendors and find potential opportunites  

13.  Vendor training courses

14.  Payroll and staffing services

15.  Provide stored value “Customer loyalty” and “Gift cards”. Money stored and lost can be used for investment opportunities like Starbucks cards.

16.  Providing legal services

17.  Ghost and commissary kitchens

18.  Curated operators – We not only use the traditional “A” class strip mall model by utilizing anchor units that are local and national brands but by curating the best operators.

19.  Manufacturing and leasing of carts. 

20.  IPO?