Loft 1001 presentation

STARTUP FOUNDERS FINALLY GOT A PLACE TO LIVELeonid Kozlov, Pavel Cherkashin

Startup Founders Have No Place to Live In Silicon Valley

More than 30% (>1.5M) of people living in San Francis-co and the Silicon Valley are new immigrants, working for technology companies

At least 50,000 new startup founders come to Silicon Valley every year

Facebook, Apple, Google bring another 50,000 of new employees to Silicon Valley every year

Where should they all live?

Apartment rentals start from $2,000/month and are short of supply

“Hacker houses” offer $1,500/month for a yoga matt in a corridor

Silicon Valley real estate is among the most expensive in the world, San Francisco is over-populated and limits expansion

Rental flats are in awful condition, home owners are picky

Startup Founders Have No Place to Live In Silicon Valley

In 2013, Oakland topped the No. 1 spot in "America's Most Exciting Cities," with most movie theaters, theater companies, and museums per square mile.

"People who don't come to Oakland because they think its unsafe are victims of the media“ @mkapor

Best for young startup founders

Benefits

Low cost of residential and office lease

Easy access to San Francisco and the Valley, including trains

Cultural infrastructure for young active people

Challenges

School infrastructure is not as developed

Lower level of security and living standards across certain areas

Opportunity: Oakland

Practical Environment to Boost Creativity

Our mission is to provide affordable, safe and efficient LIVE|WORK environment for young entrepreneurs to create more of Apple, Google and Facebook stuff

Our mission is to provide affordable, safe and efficient LIVE|WORK environment for young entrepreneurs to create more of Apple, Google and Facebook stuff

«LIVE|WORK» Loft Concept

45,000 sq feet of renovated LIVE|WORK space, units at a cost of $170/sq.ft (compar-ing to average of $300-400 in Oakland)

Affordable cost of living from $750/month/person

Modern practical design, green technologies

Smart home appliances

Transformable LIVE|WORK space

Community-friendly to inspire innovation, cooperation and new workplaces as between residents or with the local community

15mEstimated market value after renovation(Feb 16)

$

Shared Community Facilities

Creative space for creative people. Fun to live and work.

Large co-working area

Hardware hackerspace

Budget catering

Hostel for newcomers and guests

Rooftop for events, presentations and parties

Large parking, cinema, gym, laundry, storage, bike parking, and other perks

Startup services by partners (technical, legal, design, investor relations, etc.)

The Future Startup Home Is Here

Existing facility of 43 000 sq ft (0.99 acres) in 1 main building and 3 supplementary

30 min drive from downtown San Francisco or Facebook / Google headquarters, 12 min walk to BART station

Modern interiors, no major renovation required for office part of the building

Large private territory for parking and outdoor facilities, secured perimeter

Property acquisition and entitlement

Property selected, negotia-tions to be complete by August 2014

$2.0m before Dec 2014Sources: Founding part-ners, initial investors

$0.7m before Aug 2015Sources: Founding part-ners, secondary investors

$4.1m in 2014-16Sources: Project financing, bank loans

Investors may exit or gain from operating profit and social impact







Project Roadmap

July 2014 – Aug 2015

Aug 2014 – Aug 2015

Aug 2015 – Feb 2016

JFeb 2016 –

Funding

Expected Returns (NPV / IRR)

Total SpaceAssessmentAssessment

Annual Income

PayoutAssessmentDiscount

DebtInterest

Exit Valuation

Sq. feet$/sq.feet$

$

Years$10%

$2 years

$

44,200

350

15,470,000

714,479

20

14,289,576

12,860,618

4,106,115

492,734

8,582,582

Loft 77 will absorb the total equity investment of $3.0M (over the period of 3 years) to cover the cost of the property acquisition, entitlement, and planning.

Most of the construction, renovation, maintenance and operation work will be conducted using debt financing

Early investors will have an option to re-finance and exit the project once debt funding becomes available.

Expected Returns (NPV / IRR)

150-200 startup founders may not provide any thread to existing living environment of the area.

New work places (on average suc-cessful startup with build 10-100 new work places)

Role model for younger generation (hard working, high education, open-minded and creative)

Environment for kids and young professionals to try their ideas, get advice and coaching

Reference educational materials, training courses

Motivation for the diverse popula-tion of Oakland to start business

What they may provide:

Team

LeonidKozlovPropertyDevelopment

PavelCherkashinVenture Capital, Community Relations

Founder and GM at LybiDom (Russia), relocated to California in 2014

Property development in Moscow area – since 200120+ successful real estate projects - commercial buildings, villages, land development

Entitled for 1 000 000+ sq feet of commercial prop-erty in Moscow

Construction and renovation – contractor of major retail networks

Renovated 1 500 000+ sq feet of living and commer-cial space since 2010

Silicon Valley based Early-stage venture investor, Gen-eral Partner at Vestor.In

Founder of 3 $100M/year companies, executive at Adobe and Microsoft, investor in 15 startups with 50 mln monthly audience

Board member / investor at 15 Russian technology startups serving more than 50M people monthly across the globe

Top manager at Adobe, Microsoft, Siebel Systems (Oracle)

“Angel of the Year” by RVC, “Top-10 Entrepreneur in Russia” by Mashable, “Man of the Year by Internet Magazine”, keynote speaker at TechCrunch, author of 2 bestselling books

Looking for investors and partners ®from Silicon Valley startup community®®(Incubators, accelerators, hacker houses, ®co-working facilities, etc.)

Looking for investors and partners ®from Silicon Valley startup community®®(Incubators, accelerators, hacker houses, ®co-working facilities, etc.)For more information please contact:

Leonid [email protected]

Pavel [email protected]

Loft 1001 presentation

Real Estate

Transcript of Loft 1001 presentation