Highlights

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A unique opportunity to invest in a marquee property in an emerging market.

  • A boutique hotel development sponsored and managed by a strategic partnership between ARRIVE Hotels and Restaurants, NextSeed Holdings, and Neighborhood Establishment (collectively, “Manager” or "Sponsor") to acquire, redevelop and manage the newest ARRIVE hotel in Albuquerque, New Mexico.
  • Restoring the historical exterior architecture of the six-story, 75,000 sq. ft. building originally built in 1965 as the Downtowner Motor Inn. Revitalizing the guestrooms, reprogramming the lobby into a coffee shop and bar, refreshing the pool and courtyard, and adding a games area and food truck park. 
  • Tailor-built, like all ARRIVE hotels, for its neighborhood. Seeks to celebrate the local community and immerse its guests in the design, style, tastes and culture of Albuquerque. 
  • First real estate project to be listed on NextSeed.com, and first project in which NextSeed investment unit is part of the sponsor group.

A shovel-ready hotel development ready to commence construction after two years of extensive pre-development work. 

  • Total project cost of $24.9 million is expected to consist of $8.7M equity and $16.2 million debt (65% loan-to-cost).  Equity will consist of capital from Arrive ABQ Community Fund LLC as well as other private investment vehicles (collectively, “ARRIVE ABQ Funds”) and up to $2m from the sale of historic tax credits.
  • Principals of ARRIVE Hotels purchased the underlying real estate property in 2018 and have since completed extensive pre-development work. New equity raised will cover acquisition, development, FF&E, pre-opening expenses and financing costs. 
  • Main revenue assumptions [occupancy, average daily rate (“ADR”), and revenue per available room (“RevPAR”)] are supported by a competitive set of properties. 
  • In addition to standard financing, management is pursuing potential benefits from Historic Tax Credits (“HTCs”), Industrial Revenue Bonds (“IRBs”), and have structured this investment as a Qualified Opportunity Zone (“QOZ”) investment that will provide further benefits to those investing qualified capital gains.

    Visit NextSeed's Education Center to learn more about the potential tax benefits of the Qualified Opportunity Zone structure.

A cross-disciplinary operations team with extensive experience in hotel development and operations, capital structuring, and building value in local communities. 

  • ARRIVE operates several boutique hotel properties across the country, focusing on localized, experiential hospitality for today's modern traveler. 
  • Neighborhood Establishment has deep experience using urban development, and adaptive re-use projects, to improve the quality of surrounding neighborhoods. 
  • NextSeed Holdings brings expertise in small business insights, private fund structuring, and operations and asset management, with a focus on increasing engagements between businesses and their local community to enhance customer experience and asset value.
  • Manager anticipates closing the construction loan and breaking ground in March 2020 and opening mid-2021. 

Updates

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ARRIVE Albuquerque
May 29, 2020

Extended Offering Period

The offering period for this investment has been extended to August 31st to accommodate additional investors given the delay caused by the current environment, as explained in our previous updates.

To clarify, all investors in this Fund will begin to accrue preferred interest as of the date of their investment, as investments are being accepted on a rolling basis.

Investment Terms

Issuer
Arrive ABQ Community Fund LLC

Type of Offering
Regulation D 506(c)

Offered By
NextSeed Securities, LLC

Offering Min

$100,000

Offering Max

$2,000,000

Min Individual Investment

$5,000

Raised to date

$803,700

Type of Securities Equity
Equity Class LLC Membership Interests
Type of Investment

Real Estate Fund (Qualified Opportunity Fund)

Asset Type

Hotel Development

Sponsor/Manager

Joint-venture real estate firm created as a partnership between NextSeed Holdings, ARRIVE Hotels & Hospitality Group, and Neighborhood Establishment (a real estate development firm)

Distribution Waterfall

All distributions from this development will be made in the following order: 

  • First, 100% to Investors until they receive complete return of initial investment plus 9% preferred return (simple annual calculation)
  • Second, 100% to Manager until it receives 20% of all distributions made to date beyond the complete return of investors' initial investment
  • Third, 80% to Investors and 20% to Manager until the Investors have received 2x their initial investment
  • Fourth, 65% to Investors and 35% to Manager
Targeted IRR

CLICK HERE to view in Data Room (See 'Financial Summary' for Issuer’s targeted returns)

Target Hold Period

10+ years to maximize the potential tax benefit of qualified opportunity fund investments

Leverage

Up to 65% LTC via traditional commercial bank loan, guaranteed by a Principal of Sponsor

Use of Proceeds

Company Description

ARRIVE Albuquerque offers a rare opportunity to invest in a marquee property in the redeveloping downtown area of Albuquerque. The hotel is poised to become a social and architectural landmark for this culturally significant stretch of the city’s downtown core, along former Route-66. It will be anchored by a ground floor emphasizing a locally-oriented coffee shop, bar, courtyard, pool, games area, and food truck park. The project site is ideally located between historic Old Town and the Downtown central business district. It is also walkable to notable restaurants, bars and shops in the area. With a civic and community refocus on downtown redevelopment, ARRIVE Albuquerque represents a unique and timely investment well-positioned to capitalize on downtown’s accelerating growth.

Rendering of ARRIVE Albuquerque

The hotel will be fully renovated with upgraded finishes and a modern design aesthetic that emphasizes comfort and open space, while paying tribute to the well-preserved original mid-century architecture. Thoughtful design and a streamlined guest experience have led to insightful upgrades, such as replacing the existing formal lobby with a new bar and coffee shop that presents the "front desk" check-in experience in a manner more aligned with today's foodie and mobile-first traveler. Additional amenities, including a large outdoor pool, games area, and food truck park give guests and locals a superior experience that exceeds other comparable hotels in the marketplace. 


ARRIVE Albuquerque will become a unique destination for tourists to Albuquerque and provide a positive community benefit. Historic Route-66 is internationally known, and with its 15 mile stretch, Albuquerque has the longest intact stretch of the highway in an urban area in the U.S. Adhering to federal historic preservation requirements will bring the hotel back to its original character as a stop on the John Steinbeck-coined “Mother Road”. Beyond catering to visitors seeking out this authentic travel experience, the hotel’s new ground-floor amenities will make it a destination for locals too. The goal is to create a thriving neighborhood establishment that is continually active with both locals and visitors to Albuquerque. 

Renderings of ARRIVE Albuquerque

NextSeed Holdings LLC, a new investment unit of the NextSeed group, is excited to introduce this unique real estate investment to our investor community. After over four years of operating an online investment platform, NextSeed has formed its own asset management division to identify, develop and invest in proprietary projects. Working with experienced real estate and hospitality partners in a fast-developing urban center, we aim to create meaningful community-building investment opportunities for local investors across the country. 

Business Model


ARRIVE ABQ Community Fund is structured as a Qualified Opportunity Fund (QOF), which will invest 100% of its capital into the ARRIVE Albuquerque hotel development. A Qualified Opportunity Fund offers investors three main tax benefits: 

  1. Defer capital gains on an original sale until the QOF investment is sold or December 31, 2026, whichever is first.

  2. 10% reduction in the original deferred gain if the QOF investment is held for five years and another 5% reduction (15% total) if held for seven years.

  3. Eliminate capital gains from the QOF investment if held for ten years. 

Because capital gains on an original sale are deferred until 12/31/26 and the additional 5% increase in basis requires the QOF investment to be held for seven years, investments into a QOF must be made by 12/31/19 to qualify for the full 15% reduction on original capital gains.  However, investments made after 12/31/19 will still receive the 10% reductionRead more about Qualified Opportunity Funds in our Education Center.  

 

About ARRIVE Hotels and Restaurants

ARRIVE Hotels and Restaurants is a new hospitality brand actively building and developing unique, experiential properties in multiple markets across the U.S. ARRIVE builds for the neighborhood, creating hotels and restaurants that serve as a crossroads for locals and travelers celebrating the surrounding style, food, drinks and culture. ARRIVE offers guests “low-key luxury” with a focus on thoughtful design and getting the little things right. All ARRIVE hotels utilize thoughtful technology to enhance its services without making technology the focus of the ARRIVE experience. For example, ARRIVE makes it easy for guests to text or email requests to the hotel and manage their reservations. Along with getting rid of a formal front desk and using a bar or coffee shop to fill that duty, ARRIVE optimizes hotel operations to cut inefficiencies while maintaining a superior guest experience. Each ARRIVE property reflects the look, feel, tastes, and lifestyle of its neighborhood. Each property boasts distinctive design and architecture that complements and honors its local surroundings, with the aim of earning a position as a locally-celebrated landmark.  

The first property under the ARRIVE flag premiered in Palm Springs in 2016 and was met with critical and customer acclaim.  ARRIVE hotel properties in Wilmington, NCAustin, TX, and Memphis, TN all opened in 2019.  ARRIVE Phoenix is slated to open in early 2020. With plans for significant expansion in the coming years, ARRIVE aims to become a nationally-recognized leader in local community-focused hotel and restaurant management 

At its core, ARRIVE is a team of people who care an extraordinary amount about making special places that make people feel welcome. The attention to service, furnishings and guest experience sets ARRIVE Albuquerque apart from what you would typically expect - the thoughtfully redesigned rooms, pool, bar, and meeting and event spaces are all there. ARRIVE will fill the need for rooms at the upper-middle price point, which is currently underserved in Albuquerque. 


Renderings of ARRIVE Albuquerque

See bios of the ARRIVE management team in The Team section below. 

Location Analysis

ARRIVE Albuquerque will be located at:
717 Central Ave NW
Albuquerque, NM 87102

With its high caliber amenities and location along Albuquerque's main downtown business drag, ARRIVE Albuquerque will be positioned to capture increasing demand from both residents and visitors. Visitors, who will be able to experience the city's culture and vibe without leaving the hotel, will be across the street from an outdoor farmers market and walking distance from the city's core entertainment district. And with more residents moving into the downtown area, ARRIVE Albuquerque will strive to become a destination hot spot for local residents as well. The appeal to both residents and visitors alike (similar to brands like the Line Hotel, The Standard Hotels, and Ace Hotels) will make ARRIVE Albuquerque a landmark in the city’s downtown area. 

ARRIVE Albuquerque is just one of multiple new developments located in New Mexico's Census Tract 21, an Opportunity ZoneOthers include Innovate ABQ, a public-private partnership developing a 7-acre innovation district fostering economic development and job creation; ONE Central, a mixed-use residential project in the heart of downtown; and Glorieta Station, an 8-acre adaptive re-use project that will offer dining, retail, and the arts.  

About Albuquerque

The city of Albuquerque was officially founded in 1706, making it one of the oldest cities in the United States. The city has a unique multicultural heritage with Hispanic and Latino influences, in addition to the deep Native American roots that span back thousands of years. Today, Albuquerque is New Mexico’s largest city with nearly one million people; and over 5 million passengers traveled through Albuquerque International Sunport in 2018. 

Albuquerque's economy is driven by Sandia National Laboratories, Kirtland Airforce Base, defense-related technology companies, educational institutions, and the film industry. The city is surrounded by over 30,000 acres of hiking trails and open space, set against the dramatic backdrop of the Sandia Mountains and 310 days of blue skies. The Albuquerque International Balloon Fiesta, the world’s largest hot air balloon festival, takes place each October bringing in over 600 pilots and 860,000 guests during the 9-day event. 

Tourist attractions in Albuquerque, NM

While Albuquerque is a center of high-tech industry and research, it retains its connections to the past, such as ancient ruins, the historic Old Town, and the vintage neon signs along Route-66 (Central Avenue). Old Town was Albuquerque’s first neighborhood. More than 300 years after its founding, it remains a center for culture, historic architecture, shopping, art, museums, and dining. At just under 1 square mile, the area boasts over 100 shops, galleries, and restaurants. If you are looking for even more culture, the internationally renowned cities of Santa Fe and Taos are a short drive north. 

Albuquerque is a mile-high city with elevations ranging from 5,000 to 6,000 feet. Albuquerque’s spectacular year-round weather provides the opportunity to ski and golf in the same day. Sandia Peak, located just a half hour from downtown, has a 10,678-foot summit. The peak can be conveniently reached from the base of the mountain in fifteen minutes by taking the Sandia Peak Tramway. At 2.7 miles in horizontal length, it is the longest aerial tram in the United States and boasts one of the longest clear spans in the world. Over 250,000 passengers ride the tram each year to take in the stunning panoramic view of 11,000 square miles. Sandia Peak is also home to New Mexico’s oldest ski resort. Due to its proximity to the Rocky Mountains, New Mexico also provides access to 8 other ski resorts.  

The new Netflix TV and film production facility in Albuquerque (where Netflix has promised to spend $1 billion in production over the next 10 years) brings film crews, cast and visitors from around the country that will gravitate towards creative, modern hotel spaces for their stays. In addition, NBC Universal has recently announced plans to build production facilities in Albuquerque, investing $500 million into the city over 10 years. 


Downtown Albuquerque is undergoing a resurgence and aims to become a prime destination for working, dining and entertainment. With consistent support from local government and city leadership, Albuquerque is investing heavily in increasing urban density and redevelopment. In 2010, Mayor Richard J. Berry initiated “ABQ the Plan” - a long range project for large city-wide projects designed to spur economic development, increase quality of life, promote tourism, and encourage job creation. As part of the revitalization effort, the 100-year old, historic Railway Yards is a city-led effort to bring the space back to life. Adjacent to the Yards is the already updated blacksmith shop which houses the popular Rail Yards Market, a 110-vendor weekly gathering of food vendors, farmers, artisans, and much more. In 2015, Albuquerque established a “2030 District” joining cities such as Denver, Portland, Seattle, San Francisco, and Toronto. The program intends to drive economic development downtown by committing to dramatic reductions in water and energy consumption and greenhouse emissions. In addition, the Albuquerque Rapid Transit bus line, a dedicated lane in the middle of Central Avenue,  recently began service. The award-winning project spans 9-miles and serves 20 stations connecting major districts throughout the city. Two stations are located within close walking distance of ARRIVE Albuquerque. 


These drivers provide a steady demand for hotels that keeps hotel performance steady year-over-year. Community and civic leaders have been vocal that there are not enough hotel rooms to meet the current demand. The Albuquerque Convention Center continually has to turn away potential event business, because the city does not have enough accommodations for conference guests. Visit Albuquerque, the city’s preeminent tourism company, estimates that, “Since 2013, the Convention Center has been eliminated from consideration for at least three dozen meetings due to a lack of concentration of hotel rooms within walking distance to the building. The collective direct spending impact of that business conservatively equates to over $80 million dollars.” With 135 rooms located less than 0.5 miles from the Convention Center, ARRIVE Albuquerque is well-positioned to help fill the need for additional rooms. 

Meet the Team

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ARRIVE Hotels & Restaurants

The operating team behind ARRIVE Hotels brings vast experience from the worlds of business, hospitality, and design.

  • Ezra Callahan, Co-Founder & Chief Investment Officer. Ezra is a graduate of Stanford, co-founded Artist & Recreation, a Los Angeles-based real estate and hospitality group, which redeveloped the Regent Theater in downtown Los Angeles into a 1,000-capacity live music venue. Previously, Ezra was the sixth employee and first product manager at Facebook.

  • Matt Steinberg, Co-Founder & Chief Executive Officer. Matt was an attorney at Munger, Tolles & Olson in Los Angeles, focusing on corporate and real estate litigation, before co-founding Artist & Recreation, a Los Angeles-based real estate and hospitality group. Matt graduated from Stanford with a degree in International Relations. He received a Master’s from the Fletcher School at Tufts before returning to Palo Alto, CA to earn a J.D. at Stanford Law School.

  • Chris Pardo, Co-Founder & Chief Development Officer. Chris is an Honors graduate of the UNLV Hotel & Restaurant Management program, served in various management positions with Four Seasons in New York and Beverly Hills. He then attended the University of Washington Architecture Master’s program and launched the architecture firm Elemental Architecture. Chris has also created and opened a variety of restaurants, bars and entertainment venues, including Bootlegger Tiki and Ernest Coffee in Palm Springs, CA.

  • Peter Karpinksi, Co-Founder. A graduate of Cornell’s School of Hotel Administration, Peter has worked for several top luxury hospitality brands, including Four Seasons, Caesars Entertainment, and the Starr Restaurant Organization. Peter has also served as COO & Partner of Sage Hospitality, where he created several lifestyle hotel concepts and founded Sage Restaurant Group, launching over a dozen award-winning brands.

  • Noah Ellis, Chief Operating Officer. Noah started in the hospitality industry washing dishes when he was 13. He has since held higher-level positions at the Light Group, Mina Group, Kimpton Hotels, and his own consulting company, where, collectively, he has opened over 25 properties. Noah is also a Co-Founder & Co-Owner of Top Round Roast Beef.
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NextSeed Holdings

NextSeed Holdings LLC is a new, wholly-owned subsidiary of The Next Seed, Inc., formed to identify, develop, sponsor, and lead proprietary investment and development projects. Working with experienced real estate and hospitality partners, NextSeed Holdings aims to create meaningful community-building investment opportunities for local investors across the country.

  • Youngro Lee, Co-Founder & CEO of The Next Seed, Inc. Prior to starting NextSeed, Youngro practiced for eight years as corporate lawyer specializing in private fund formation and investments in the U.S., Europe and Asia at Cleary Gottlieb, Kirkland & Ellis and Weil Gotshal. Youngro is passionate about building awesome places and strengthening communities by connecting capital with local investments.

  • Dave Seeburger, Director. Dave has nearly a decade of experience evaluating, executing, and managing private real estate investments. Prior to NextSeed, Dave founded an alternative investment management company focused on real estate and growth capital and co-founded a multi-award winning real estate development company. He received an MBA from Rice University in 2010.

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Neighborhood Establishment
  • Matthew Donowho, Founding Partner. Matthew has more than two decades of experience in value-add and opportunistic investments in experiential real estate and operating businesses, particularly in the hospitality industry. Matthew was a founder of and remains a principal in Morningside Funding, a residential investment fund vetted and approved by Fannie Mae. The initial equity investments in the fund have tripled with remaining current assets valued at $60 million.

  • Ryan McCulloch, Development Manager. An Albuquerque native, Ryan is a Development Manager for Neighborhood Establishment. He manages the development process for hospitality, food and beverage, and multifamily projects. Prior to NE, Ryan has five years of experience performing market analysis, creating debt and equity packages, and project management for multifamily, senior living, and hospitality projects. Ryan holds a Bachelor of Architecture from the University of Texas at Austin.

Bonus Rewards

Invest

$20,000+

  • $250 Hotel Credit
    Investors will receive a one-time hotel credit of $250 when they invest between $20,000 and $50,000. Valid at Arrive Albuquerque and fully transferable to 3rd parties.
Invest

$50,000+

  • $500 Annual Hotel Credit (Limit First 30 Participants)
    Investors will receive an annual hotel credit of $500. Valid at ARRIVE Albuquerque and fully transferable to 3rd parties. Quantity is limited to the first 30 investors that invest $50,000 or more.
Invest

$100,000+

  • $1,000 Annual Hotel Credit (Limit First 20 Participants)
    Investors will receive an annual hotel credit of $1,000. Valid at ARRIVE Albuquerque and fully transferable to 3rd parties. Quantity is limited to the first 20 investors that invest $100,000 or more.

Annual hotel credit will be available for the duration of the investor's investment holding and will not roll over annually.

Bonus rewards are offered by the Issuer purely on a voluntary basis and do not influence the terms of the Offering. For the avoidance of doubt, the bonus rewards are not contractual conditions governed by the Subscription Agreement or LLC Operating Agreement and are not enforceable under the Subscription Agreement or LLC Operating Agreement.

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Terence
Checking in on any July progress, both on financing and construction. Any updates?
NextSeed
NEXTSEED
Terence, thank you for checking in. We are largely still operating under the same circumstances as expressed in the previous investor update in the beginning of summer, given the ongoing COVID-19 dynamics -- banks are still moving quite slow in get ...
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Issuer Statement

The information contained on this campaign page (the "Campaign Information") is furnished solely by the Issuer to prospective investors in the investment opportunity described herein. All Campaign Information is intended to be a summary of the terms and information contained in the Executive Summary and the LLC Operating Agreement, and is fully qualified by reference to those documents. In the event any Campaign Information conflicts with the terms of the Executive Summary or LLC Operating Agreement, the terms of those documents will control. The Issuer has provided the Campaign Information for inclusion on the website located at www.nextseed.com, and in no way will the Campaign Information be deemed to have been created or provided by NextSeed Securities, LLC, NextSeed Services, LLC, or their affiliates unless otherwise specifically indicated.