The Opportunity

Everybody talks about buying back the block, but we decided to buy back an entire historic neighborhood. Positioning between work to the east and wealth to the west, we believe this is a prime location for development. After seeing gentrification happen first hand in Inglewood, CA, Oakland, CA, New Orleans, LA, and Brooklyn, NY, we noticed a pattern and the Eddie Robison Sr. Historic District checks off all of the boxes.

We are raising $1 million to build 184 new multifamily units and 12,000 square feet of commercial space across 6 strategic acquisitions in addition to developing a commercial property with several sustainable business models in play. An additional $1.75 million is already being raised from sophisticated and accredited investors, but we we wanted this be The People's Property, so we created this offering to make investing accessible to all.

This is an equity investment. You can be a part of amazing opportunity for as little a $1,000 (0.093% of this $107,000) raise.

Our target rate of return is 15% annually. This is how that compares to your savings account and the stock market.

Equity investors get paid in 4 ways:

  1. When we receive historic tax credits upon completion of construction.
  2. When we refinance the properties into 30-year mortgages with Fannie or Freddie
  3. When we receive cashflow from rents (paid by the fund to you quarterly)
  4. When we sale the properties you benefit from appreciation and principal pay down over time

NOTE: Please DO NOT INVEST YOUR LAST DOLLAR. This is at least a 5 year hold. Only invest money at the bottom of your savings account that you DO NOT NEED and were likely never going to touch.

The Assets

We have already acquired the assets for this first phase at really low cost-basis for the land and buildings. This allows us to conduct historic renovation and maximize historic tax credits while ensuring investor return.

Altogether, these assets will be transformed into 184 brand new multifamily units and an 12,000 square foot commercial space to host businesses that serve the neighborhood and create jobs for those who live in the neighborhood.

$107,000 is being raised through the Buy The Block Reg CF crowdfund and the remaining $2,643,000 is being raised through a Reg D fund from family, friends, other funds, and accreditted investors.

The Team

The #BuyBackBatonRouge team has over two decades of collective real estate experience including expertise in real estate development, multifamily acquisitions, rehabbing, new construction, historical tax credits, and opportunity zones.

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The Impact

We have the change to not just buy back a block. We can buy back an entire neighborhood totaling 200 acres.

The Eddie Robinson Historic District in Baton Rouge has been divested for over 50 years. When integration occurred, Black business could no longer survive as the community spent their money within other communities. And then Black flight followed White flight to suburbs as a sign that they were moving on up. The result is a low-income community with unoccupied historic commercial and residential properties, blighted buildings, and vacant lots. On top of that, there is limited access to food, health care, quality education, and jobs in this neighborhood.

#abc

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We have an opportunity to revitalize the urban core with strategic investments in real estate that are inviting to existing and new residents and businesses. We have the opportunity to develop several catalyst projects that can turn this entire community around. We believe that ownership is the key to freedom. That includes ownership by existing residents, new homeowners, and investors.

Our philosophy of Comprehensive Concentrated Community Development takes a holistic approach that considers housing, employment, education, entertainment, food, healthcare, politics, and policing. We believe that the first step is the land and real estate. By concentrating our efforts in one specific neighborhood we all get to rise together. When you when I win. When I win, you when. Other communities have been able to demonstrate this by aggregating their resources and concentrating their capital. We all know that dispersed energy is weaker than focused energy. When we work as one, we maximize our power.

The Strategy

Our strategy is based on several key factors: in-house construction, historical tax credits, opportunity zone designation, public and political partnership. Our team is unmatched when it comes to weaving these strengths together.

Below is a step-by-step process on how our business plan unfolds, followed by an example for our Julia Street property.

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Here is a specific example based on our pro forma for our Julia Street property:

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The Offering

You can be our partner and invest as an equity investor. We are expecting at least a 15% IRR on your investment. We expect a return of capital at two points—upon getting our historical tax credits and upon refinancing into a 30-year mortgage. At that point, you will likely have little to no-money left in the deal, but you will retain equity. Based on your equity position, you will receive quarterly dividend payments based on the cash flow of the assets.

Once you commit, you will be sent a follow-up form to declare how you want your money to be allocated in terms of debt and equity. You can do a combination of both if you prefer.

Here is how both scenarios might play out for a $30,000 investment.
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Frequently Asked Questions

Q: What is the minimum investment? 
A:  $1,000 (or ten $100 shares). This is a first-come-first-serve basis so don’t delay.

Q: Is there a preferred return for equity investors?  
A: There is a 6% preferred return to investor meaning that investors get paid at least 6% before any sort of other distributions are made to management.

Q: What type of loan are you refinance into?  
A: Freddie Mac non-recourse, 30-year term.

Q: What are historic tax credits?
A: The Federal & State Rehabilitation Tax Credit, otherwise known as the Historic Tax Credit, is one of the most powerful historic preservation tools we have. Recognizing the cost associated with rehabilitating historic buildings, the Historic Tax Credit provides a 20% federal income tax credit and 20% state income tax credit to developers of income producing properties such as office buildings, retail establishments, rental apartments, and others. We are able to use this tool to rehab historic buildings while also offering a real return to our investors based on our development costs.

Important Links

Offer Memorandum: 

https://www.dropbox.com/s/8qmbl13ho65s8j8/Buy%20Back%20Baton%20Rouge%20Offering%20Memo%2007132020.pdf?dl=0

Financial Statement: 

https://www.dropbox.com/s/k5csgsj2slhk1g7/Buy%20Back%20Baton%20Rouge%20Financial%20Statement%2006182020.pdf?dl=0

Operating Agreement: 

https://www.dropbox.com/s/qrm35tz2azx973e/Buy%20Back%20Baton%20Rouge%20LLC%20Operating%20Agreement%205.12.2020.pdf?dl=0

Pitch Deck:

https://www.dropbox.com/s/56exn5q3sriwdmk/Buy%20Back%20Baton%20Rouge%20Investor%20Pitch%20Deck.pdf?dl=0

SEC Filing:

https://www.sec.gov/Archives/edgar/data/1813411/000181341120000001/0001813411-20-000001-index.htm


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Invest in the buying and building of 184+ multifamily units and 12,000 square feet of commercial space as part of the #BuyBackBatonRouge real estate investment in Eddie Robinson Sr. Historic District.

Jullien Gordon
1116 S. 14th Street, Baton Rouge, LA 70802

Funded: $477,000.00
Minimum Goal: $107,000.00
Maximum Goal: $535,000.00

89%
  • Closed
  • 282 Investors


Cancellation/Refund Policy

You may cancel an investment commitment for any reason until 48 hours prior to the deadline identified in the offering by logging in to your account with Buy the Block, browsing to the Investments screen, and clicking to cancel your investment commitment. If an investor does not cancel an investment commitment before the 48- hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment.