RYSE Creative Village Atlanta

10 Replies

Investment Info:

Other commercial investment investment in Atlanta.

Purchase price: $485,000
Cash invested: $2,500,000

A 40,000 sq. ft. all-inclusive production playground for the creative mind. RCV will include multiple production studios for film, music and photography. It will also include a screening theater, editing suites, meeting/lecture spaces, a cafe and a creative co-working space, all spread across a 4+ acre campus.

RYSECreativeVillage.com

What made you interested in investing in this type of deal?

Content is King! I saw this project as the ultimate opportunity to build and operate the facilities that are needed to create content in a city that is making its mark in the content industry and that is geared towards the demographic that wields the most influence in content, and is yet underserved.

How did you find this deal and how did you negotiate it?

Our team found this former Atlanta Public School for sale and negotiated with the school board for two years to acquire the campus for $485,000. Our plans to turn the property into a campus dedicated to housing and incubating content creators won emphatic support from the board and our ability to close ultimately secured the title to the property for our team.

How did you finance this deal?

We financed the acquisition with cash equity and private lenders. For the redevelopment, we have received an allocation of New Market Tax Credits totaling $7.5m.

How did you add value to the deal?

We are redeveloping the property into a content production studio and multi family housing.

What was the outcome?

In progress, stay posted for updates.

Lessons learned? Challenges?

Some notes from our journey so far:

NMTC market is constantly changing, one day the credits are worth $2m and the next it’s “only” $1.5m. It’s still free money in the long run so we’re forever grateful.

Zoning takes a lot longer and costs more than you budgeted for. Double check and add for good measure the time and money devoted to zoning in your plan.

Getting people to invest in Black Developers is an art form. I don’t know how to paint, and I can’t tell when it’s dry.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! Ryan is our tax consultant. Working with Urban Development Fund on the NMTCs, Thompson Hine is our law firm, Urban Oasis Development provides development strategy, Studio H is our architect, Stream is our landlord broker.

Hi Ryan 

Congrats on new acquisition certainly sounds exciting. Now the real work begins buying is the easy part successfully repositioning and executing is a different ball game. Tax credits can be tricky you may want to look at consultants who work with city could save you money instead of navigating tax credits on your own. Good luck keep us posted on your progress.

OOC - Got a couple of guys in Portland working on "creative" spaces.  Strikes me that most "creative" types don't make much money to pay rent.  Am I wrong?  I mean look at Hustle and Flow's studio :)

Originally posted by @Azeez K. :

Hi Ryan 

Congrats on new acquisition certainly sounds exciting. Now the real work begins buying is the easy part successfully repositioning and executing is a different ball game. Tax credits can be tricky you may want to look at consultants who work with city could save you money instead of navigating tax credits on your own. Good luck keep us posted on your progress.

Thanks Azeez. Tax credits are definitely tricky, we have some great consultants at the tax consulting firm Ryan, our law firm of Thompson Hine is experienced as well. We lean on them to walk us through the process, keeping up with zoning deadlines is hard enough.

 

Originally posted by @Steve Morris :

OOC - Got a couple of guys in Portland working on "creative" spaces.  Strikes me that most "creative" types don't make much money to pay rent.  Am I wrong?  I mean look at Hustle and Flow's studio :)

True, creatives usually go through a rough process to become great and actually earn income. RYSE Creative Village is geared towards the content production companies that produce the work of creatives. We sign leases for office space for the writers, producers, directors and make available to them the green screen room, the sound stage with lights and cameras for them to produce their content. Think of the company behind the Hustle and Flow movie, we’ll house them in our office and coworking space, cater their shoots from our kitchen, and offer them spaces within to film and edit. Our historic Atlanta location will offer an Authentic backdrop to their off site filming locations, and our community of creatives will offer them an abundance of networking opportunities to further monetize their content into gaming, VR and AR, marketing and branding, culinary and live arts experiences, and many more. And at each step we’ll increase our operating income. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you