North Cove Leisure Club
Regulation Crowdfunding

Goal: $100,000 to $1,070,000

for Membership Units

20%+ Target IRR


Min. Invest: $300
($100 increments)


$141,750


Funded
Start date: May 11, 2022
End date: December 31, 2022
Why fund our local story

▶︎ We’re building the space for adventures to go, offering short term rentals for retreats, venue space for weddings, a full service restaurant, and outdoor entertainment for all ages.


▶︎ Targeted 20%+ Internal Rate of Return (IRR) through current and planned operations. Distributions planned to start as early at Year 3. Not guaranteed.


▶︎ We currently operate one of the top disc golf courses in the country and the only full service restaurant/bar within 20 minutes.


▶︎ We’ve hosted 2 national disc golf tournaments. The 3rd collegiate tournament & pro tour are coming April 2023. Prior collegiate tournaments attracted an estimated 500 to 700 people and the pro tour is estimated to have 3,000 people in attendance.


▶︎ The 1st wedding on our property is being held November 2022. Wedding venues in this area command rates up to $30k. We're charging $10k to start. Reserve your spot. (reserve your spot).


▶︎ We’re raising capital to drive growth in 3 primary revenue streams: short term rentals to accommodate demand, expand wedding capacity in 2023, and working with experienced operators to build a 3k+ person outdoor music venue.


▶︎ We plan to start with 40 glampers projected to generate over $750,000 year 1 with occupancy rates equal to the average in the area. However, we believe occupancy will be higher due to our planned operations for weddings, outdoor amenities, and music festivals.


▶︎ Our operating team includes 2 outdoor adventurers who also sit on the Tourism Development Committee for the area, a 27 year music industry veteran in charge of planning some of the largest festivals in the US and Mexico, renowned chef with a diversity of culinary experience, a Head of Partnerships who’s connected throughout the entrepreneurial community, and an amazing array of staff!



Overview

The Vision

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Launching an outdoor recreation and event center in rural Appalachia


The North Cove Leisure Club plans to be the ultimate outdoors lover’s playground. Boasting wide open hiking and biking trails, elegant event spaces, and a state-of-the-art disc golf course, North Cove is a destination location for tourists and locals alike. Spanning 157 acres of gorgeous Appalachian land in rural McDowell County, NC, the space is dedicated to celebrating nature, outdoor leisure & recreation. Nestled up to Pisgah National Forest and between the Linville Gorge and the Blue Ridge Parkway, North Cove Leisure Club aims to be the hub of a major tourist corridor.


The Site

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157 acres for the adventurer in all of us


Did you know there were 16m+ visitors combined between Linville Gorge and Blue Ridge Parkway in 2021. North Cove Leisure Club owns 157 acres of prime real estate nestled between both of these.  It is situated to provide these visitors with an amazing suite of outdoor activities and overnight stays.




A large portion of the property is currently occupied by a golf course. While this provides a helpful foundation to build on, North Cove’s new design and open access will foster inclusivity and accessibility for the local and regional populations. The new operation will also allow the land and waterways to breathe again and mitigate further contamination from the previous overuse of fertilizers.


The Plan

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Existing operations feature disc golf, weddings, and the only restaurant/bar within 20 mins 


A large portion of the property is occupied by what was a golf course which has been turned into one of the top disc golf courses in the country. While this provides a helpful foundation to build on, North Cove’s new design and open access will foster inclusivity and accessibility for the local and regional populations. The new operation will also allow the land and waterways to breathe again and mitigate further contamination from the previous overuse of fertilizers.



We plan to add short term rentals, expand our wedding venue, and we have a team building out space for a 3k+ person music venue. 


Multiple current and planned revenue streams with build out phased over 4 years are projected to deliver targeted 20%+ Internal Rate of Return (IRR). Distributions are planned to start as early as Year 3, but might be reinvested into more assets, e.g. short term rentals, to optimize returns for investors.

 







  • Short-term rentals are in demand on our property so we have a clean & convenient place for various adventurers who want to stay overnight. This demand is driven by an increasingly growing base of disc golfers, wedding parties, and the short to mid-term retreater.

  • Upcoming tournaments are expected to draw nearly 4,000 people. While planned music festivals and other events are anticipated to only create more demand for overnight stays.

  • We’re hosting our 1st wedding November 2022 and plan to use funds from this raise to improve the venue per guidance received from wedding planners who want to book weddings at our venue. We’ve estimated 32 weddings at $10,000 each for Year 1 and believe this is conservative considering other venues in our area charge up to $30,000.






Building Regional and National Awareness & Revenue


We partner with really amazing operators who execute well and build off our existing traction. For example:



611’ World Record Throw featured on ESPN’s SportsCenter Top Ten and Good Morning America seen by an estimated 3.5m viewers.






We’ve hosted 2 national disc golf tournaments. The 3rd collegiate tournament & pro tour announced for April 2023. Disc Golf Pro Tour is the largest disc golf tour business in the world. 



These activities primarily serve to increase NATIONAL awareness about North Cove which attracts a diverse audience beyond just disc golf enthusiasts.  Why?  Because disc golf is a highly accessible sport for all ages of any skill level from novice to professional which is one of the reasons for its growth


Even though this is not a primary revenue driver, disc golf does generate revenue through day passes, memberships, and the pro shop. We also plan to add mountain biking and pickleball if we raise our max raise which will supplement Outdoor Activities revenue.




Even though this is not a primary revenue driver, disc golf does generate revenue through day passes, memberships, and the pro shop. We also plan to add mountain biking and pickleball if we raise our max raise which we believe will supplement Outdoor Activities revenue.




We also expect that our restaurant/bar revenue grows from these added visitors (more on that below).



These amenities paired with the existing natural beauty will captivate a range of guests, from young families to outdoor enthusiasts to the craft beer crowd.



Our restaurant and bar also benefits from these increased visitors (more on that below).


Expanding wedding venue operations to provide space for up to 8 weddings per month.





North Cove provides the venue. We’re in discussions with experienced wedding planners who want to find the couple as well as run the weddings.





Factoring in the seasons when weddings are ideal on our property, we’ve only planned to host 32 weddings in 2023. If we achieve that, at normal booking rates of $10k for the venue, we project to  generate $250k+ in net revenue March 2023 through February 2024. That’s a 2.5x multiple over the equity capital we’re raising if we just hit our target minimum raise.



Adding 40 glampers for adventurers - from the solo traveler, disc golfer, couples, wedding guests, entrepreneurial teams, or the family getting away together


We have a steady base of people regularly coming for disc golf and now food & drink. We’ve also held multi-day national tournaments and other events which have attracted hundreds of visitors over multi-day spans. Now that we’re ramping up for weddings and additional events, we need space for people to stay.




We plan to start with simple in-demand glampers that fit the natural vibes of the area by early 2023.


 




(These are representative of the anticipated types of structures the Company plans to build. These are subject to change at any time.)



Then we plan to expand with higher end luxury places to stay which include bathrooms and even some within a living room and kitchen for the short-term (up to a week) / mid-term (30 days) adventurer who’s looking to getaway. 




(These are representative of the anticipated types of structures the Company plans to build. These are subject to change at any time.)


The designs above have been factored into the financial pro forma model. If you’d like to shape the future of North Cove’s overnight experience, invest and then let us know your accommodation vibe here, https://forms.gle/EhYQJNPXy6rp8CQm8.  

  

 

(Example rendering, final design TBD)

Building a 3k+ person outdoor music venue


Last, but not least, part of the funds from this raise are intended to be put towards building a 3k+ outdoor music venue. Our team includes a 27 year music industry vet who’s been a key member of planning and running logistics for major music festivals such as Coachella, Electric Forest, and Bonnaroo. He’s the team member behind the scenes pulling together the acts and other logistics with an aim for those visiting North Cove Leisure Club to walk away with one of the best experiences of their lives.


Grouped together, they create diverse options for the adventurer in all of us.


We’re looking to our investor and retreat community to help us literally shape the space they’d love to visit and bring people.


Investment Summary

Everyone who invests before October 31, 2022 receives a 30% ownership bonus e.g. 30 units becomes 39, 1,000 units becomes 1,300 ($100k+ investors have until November 30, 2022). 


 

Everyone who invests between November 1, 2022 and November 30, 2022 receives a 10% ownership bonus. Bonuses cannot be combined together.




With the objective of operating and expanding the North Cove Leisure Club, which consists of 157 acres of Appalachian land in rural McDowell County, North Carolina, the Company is seeking investment from the public.

Use of funds include tiers that will involve a successful capital raise in addition to debt capital:


▶︎Tier 1 - $100K: Expand the Wedding Venue, Build the Music Venue, & Expand Outdoor Activities.


▶︎Tier 2 - $215k: Add Glamping Short Term Rentals & Accelerate the Music Venue.


▶︎Tier 3 - $436k: Expand the Team & Improve the Facilities e.g. Shipping Container Bar, Bathrooms.


▶︎Tier 4 - $325k: Add Mountain Biking and Pickle Ball.













Investor Perk

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The first 50 investors who commit $10,000 or more will have the opportunity for them + a guest to get a private tour of the North Cove Leisure Club with the founders.




Due Diligence


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Form Check Completed! Click here to review. 


What is it? 


A review of disclosures, financials, and all filing information to ensure compliance and consistency with Rule 201 of Regulation CF.

Our People
Kyle Sims,
Co-Founder
North Carolina Native with a passion for Western NC. Focused on providing opportunities to our local communities for healthier and more acti..
Luke Peniston,
Co-Founder
Luke is passionate about helping others experience the great outdoors and enjoy the mountains he loves. Luke has been a small business owner..
Will McGuire ,
Head of Partnerships
Will loves adventuring globally, but his passion is connecting people to scale businesses together. He has personally invested in 90+ startu..
Bob Robertson ,
Music Venue Specialists
Bob is a 27 year music industry vet who's been a key member of planning and running logistics for major music festivals such as Coachella, E..
Matt Petrie ,
Head of Cuisine
From elevated clubhouse & bar food to elegant weddings and corporate events, Matt has compiled the experience and expertise to provide a..
Incolo,
Business Consultant
A community owned accelerator on a mission to help 1,000 founders fund & scale through the crowd by 2030. Since 2019 Incolo has helped 2..
Docs
Risks

We have a limited operating history upon which you can evaluate our performance, and accordingly, our prospects must be considered in light of the risks that any new company encounters.

The Company is still in an early phase and we are just beginning to implement our business plan. There can be no assurance that we will continue to operate profitably. The likelihood of our success should be considered in light of the problems, expenses, difficulties, complications and delays usually encountered by early-stage companies. The Company may not be successful in attaining the objectives necessary for it to overcome these risks and uncertainties.


Risks of Outdoor and Physical Activities.

The Company intends to transform existing real estate into disc golf courses, mountain bike trails, and other outdoor venues, which will incorporate the streams, pathways, and landscape. The plan also includes building trails and walkways as part of the infrastructure of the disc golf courses and mountain bike trails. Customers are expected to walk and hike the trails and walkways to play disc golf and could also access the terrain to enjoy hiking. Physical activity in these outdoor settings includes the inherent risk of injury from accidents or other incidents that could occur while customers are on the premises. Although precautions will be in place, it is possible that customers could suffer injuries and the business could incur liability. If the business incurs significant liability from an injury or other incidents that are not covered by insurance, that could adversely affect the Company’s profitability and performance.


The Company’s revenue is dependent upon the growth of disc golf.

The Company plans to develop disc golf courses as the central aspect of the business. Disc golf is a fast-growing sport in the United States, but the success of the Company will be dependent on the existence of significant and growing interest by people to play disc golf. If the interest in disc golf were to stop growing or significantly decline, the profits of the Company could be significantly impacted.


The Company’s future growth of its operations depends upon its ability to acquire a parcel of real estate for which it does not currently have a contract or an option.

The Company’s ability to expand its operations and execute its business plan depends upon its ability to acquire an adjoining parcel of real estate. Although the Company believes it will be able to acquire this parcel at a reasonable price, there is no guarantee that the owner will sell the property to the Company or that the owner will sell the parcel at a price that the Company considers to be desirable. If the owner refuses to sell the property, the growth of the Company may be significantly impacted. If the owner attempts to sell the property to the Company at a price considerably higher than expected, our financial returns may be significantly impacted.


Risks associated with the restaurant industry.

A main source of revenue in the Company will likely come from a restaurant operating on the premises. The restaurant industry is highly competitive and can be materially adversely affected by many factors.


Refer to the offering memorandum for more risk factors and details.

Disclosures

  • North Cove Holdings, LLC has filed a Form C with the SEC which can be found here.
  • Vicinity will be compensated upon a successful raise at 6% of the total amount raised. Vicinity will also receive securities, the same offered to the public, equal to 2% of the total number of securities sold in the offering.
  • There is no cost for investors to invest, though Vicinity will receive a 1% transaction fee on all payments from North Cove Holdings, LLC to investors that will be withheld from the payment to investors.

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