Revenue Sharing Notes ?
|Minimum Target||$275,000 ?|
|View Key Terms|
|Minimum Target||$275,000 ?|
|View Key Terms|
Located at the nexus of Austin’s artsy eastside and the downtown entertainment district, this adaptive reuse project will convert a mid-century warehouse and surrounding land into 4,000 square feet of cafe, bar and lounge space, 5,000 square feet of hostel rooms and 14,000 square feet of paved surface lot for events and future amenities. The Native will be the first hostel of its kind in the Southwestern United States, and will open new locations across the U.S. using an expansion strategy similar to that of Freehand and Generator.
The Native team has decades of experience in founding, designing and/or operating architecturally noteworthy experiences that draw crowds across Texas and beyond. These successful concepts include Kung Fu Saloon (three locations throughout Texas), The Brew Exchange, Winflo Osteria, Eberly and The Mohawk (totaling roughly $20 million in annual revenue). The Native will be designed and built by Icon Design+Build, a regionally recognized high-end custom construction firm owned by two members of the Native team.
The Native is seeking to raise between $275,000 and $500,000 on NextSeed. Proceeds will be utilized to finance the construction and build-out of The Native hostel.
|Principal||Investment Multiple||Maturity*||Total Payment*|
This investment has a startup period during which no payments will be made. The first payment is not due until after November 30, 2016.
Beginning December 1, 2016, the Issuer will share 5% of each month’s gross revenue with the investors as a group until they are paid in full. Each investor will receive its proportionate share of the monthly payments made to the investors as a group.
Assuming that the total amount raised through this offering is $275,000 and Investor A invested $2,750, Investor A would be entitled to receive 1.0% of the $15,000 shared with investors for month X. Therefore, Investor A is paid $150.00 for month X.
* The calculations above are illustrative examples only and may not reflect actual performance. The exact length of time that it will take the Issuer to pay each investor in full cannot be known in advance since the Issuer's actual revenues may differ from its reasonable forecasts. If any balance remains outstanding on the maturity date, the Issuer is contractually required to promptly pay the entire outstanding balance due to each investor. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments.
* Bonus rewards must be used by December 31, 2017. Complimentary stays will be subject to the following blackout dates: each national holiday (as well as the day immediately preceding), Austin City Limits weekend, FunFunFun Fest weekend and all dates during SXSW.
The Native will offer 72 beds spread throughout 12 guest rooms, including 4 loft-style rooms that can be rented as suites or shared spaces. Its prime, central location makes The Native an ideal launchpad for younger travelers eager to explore Austin’s myriad nightlife options and world-renowned festivals like SXSW, Austin City Limits and FunFunFun Fest.
The Native’s cafe and bar will serve casual, hyper-American cuisine and unpretentious craft cocktails. The rotating menu will be simple and approachable, with an emphasis on authenticity. Guests will relax and converse in an intimate, low-lit space featuring a glass ceiling and a textural blend of stone, plush velvet and steel.
Regular large-scale performances will transform the 14,000 square foot parking area and backyard into a destination for patrons to experience big sounds and bigger productions under the bright lights of the Austin skyline.
The Native will also sell branded merchandise to its patrons and other visitors on hostel premises.
The Parlour will serve as the hostel’s beating heart, featuring a fresh, curated mix of movie screenings, musical acts, night bazaars and gallery-style exhibitions designed to bring together travelers and locals alike. With its raw stone walls, deeply enveloping furnishings and eclectic programming, the Parlour will give guests a chance to indulge in a variety of dynamic, multi-dimensional experiences.
The Native will offer all guests full use of a beautiful, modern community kitchen designed to encourage mingling and communal food preparation, with the goal of making travel more attainable for the young, budget-conscious traveler. The kitchen will be fully outfitted with high-end cookware and equipment to provide guests with the look, feel and capabilities of a master chef’s home kitchen. The space will also serve as a venue for up-and-coming chefs to prepare guest meals as part of a regular brunch and dinner series.
The crown jewel of The Native will be The Hideaway, a master suite designed to provide privacy and shelter for unique, you-name-it experiences curated by The Native’s knowledgeable staff. Anything and everything is fair game in The Hideaway.
The City of Austin presents one of the country’s most appealing market opportunities for new hotel and accommodations ventures. Forbes ranked Austin as the #1 fastest growing city in the nation for the 4th straight year, and the #1 “City to Watch.” The average occupancy rate for hotels in downtown Austin is over 77%, while the average daily rate for a room in like hotels is approximately $215. The national average occupancy rate and average daily room rate are 65% and $121, respectively.
The Native’s site at 807 East 4th Street, nestled between Austin’s vibrant Downtown and bohemian Eastside, presents an ideal location for guests with convenient access to everything that Austin has to offer, and hundreds of exciting entertainment opportunities all within walking distance.
There are more than 150 dining options, 50 drinking establishments and almost 40 music venues that guests can walk to from The Native in less than 15 minutes. The Native site is approximately 1 mile from the edge of The University of Texas at Austin campus. In addition, two highly anticipated infrastructure and real estate development projects (4th Street Gateway Project and the Plaza Saltillo development) are planned for the near future in the vicinity of The Native, further enhancing the profile and desirability of the location.
Average household income levels in the area surrounding The Native top the national average by almost 75%, at more than $110,000.
The site is located directly off of Interstate 35, providing easy access to other major cities in the area and Austin–Bergstrom International Airport.
Over the course of 17 years in the construction industry, Michael Ryan Dickson has cultivated a passion for and deep understanding of fine architecture, design, and project management. He is currently a Managing Partner of Icon Design+Build, a high-end custom builder specializing in homes, bars and restaurants. He is also the owner of a number of highly successful food and beverage venues. Mr. Dickson studied Geography at the University of Texas, Austin. Mr. Dickson is responsible for the day-to-day management decisions of The Native.
Antonio T. Madrid specializes in the fast-track development and construction of custom, high-end hospitality venues, residences and art installations. Since 2010, he has overseen nearly a dozen successful commercial build-outs across the United States as well as art installations for the Metropolitan Museum of Art, Governors Island, and Soho House. He is currently a Managing Partner of Icon Design+Build and Board Chair of the HOPE (Helping Other People Everywhere) Campaign. Mr. Madrid studied Philosophy and Finance at the University of Texas, Austin. Mr. Madrid is responsible for the day-to-day activities of The Native.
Will Steakley is the co-founder of several successful Austin brands, including The Mohawk (voted the Austin Chronicle’s Best Live Music Venue in 2015), DEN Property Group, Viceroy Realty Advisors, and Austin Surf Company. As a native Austin creator, connector and tastemaker, Mr. Steakley is passionate about preserving the soul, authenticity and brand of Austin, Texas. With over $300 million in closed transactions, Mr. Steakley also happens to be one of Austin’s top real estate professionals and the only agent under 40 to receive the Austin Business Journal’s coveted Top 25 award over 9 consecutive years. Mr. Steakley studied Economics at the University of Texas, Austin. Mr. Steakley is in charge of overseeing the finances of The Native.
August 20, 2017
Thanks American Express Essentials for featuring us in the Top 22 Coolest New Hostels from around the world. We are happy to know that The Native is considered a destination hostel!
July 14, 2017
Thank you to all our NextSeed investors that toured our space at our Exclusive Investor Opening Celebration that was held on June 14th! We invite you to come back soon!
February 2, 2017
It’s been a big month for us at the Native. Our chef and our bar manager have been hard at work developing our menus. Here are a few shots of what they are working on.
Our major build out is complete. Walls are up, plumbing and wiring infrastructure is in place, the roof is finished, and our custom-made steel doors (interior and exterior) are installed. We are painting the drywall with a sealskin finish. The showers are tiled in a beautiful grey herringbone pattern, and black marble bathroom and hostel kitchen counters are installed.
Our shop is bustling with carpenters at work on our highly articulated wood designs, inspired by the Tramp Art movement. In addition to the intricate wood cutting, we are staining, finishing, and installing the wood baseboards and detailing throughout the building. Welders are fabricating our massive 9’4″ bunk beds in-house, including built-in storage with locks for guests’ belongings.
Operationally, we have a management team in place. We will hold an open house for hiring front- and back-of-house staff next month.
We are waiting until our open date is concrete to schedule the opening party. We are currently predicting an opening date later this Spring, but we want to make sure to have everything perfect beforehand to ensure a strong entry into the market!
Thanks for the continued support!
The Native Team
November 15, 2016
We have made significant progress on construction, considering the great care we have taken to renovate a building that was built in 1897. Additionally, we are fabricating items in-house, such as custom doors and beds. The goal is to open our doors in February 2017.
As the construction team works hard on the structure of our space, our highly renowned design team is carefully selecting the furniture, lighting, and other touches that will create the perfect ambiance for our space. We’ve brought on key managerial staff and begun the process of training them so that our customer service will keep guests coming back, just as much as the physical elements of our space will.
Thank you for all your support along the way!
The Native Team
July 19, 2016
The Native successfully raises $396,500 from 227 investors. We’re the first in the U.S. to fund an investment from everyday investors across the country under Regulation Crowdfunding!
We’re excited to welcome everyone to experience the creative blend of music, art, food, drink and hospitality at The Native. Now it’s time to get to work!
May 16, 2016
The Native team launches the first U.S. crowdlending campaign on NextSeed, seeking a minimum of $275,000. The Native will be a luxury hostel at 807 E. 4th Street, Austin, TX 78702.
Photo by: Ricardo B. Brazziell
From the Austin Statesman