CHAPEL
Regulation Crowdfunding

Goal: $100,000 - $250,000



Funded
Start date: October 12, 2020
End date: December 31, 2020

Suggested Investment Amount: $1,000
Minimum Amount: $500

Why fund our local story

Investing in the untapped potential of Poe Mill


CHPL is a 43,000 ft office, event, and restaurant space in the heart of the Poe Mill community in downtown Greenville, South Carolina—built for neighbors, entrepreneurs, and the under-resourced.


We believe that the smartest, most profitable way forward is to work alongside and with the community, to bake in the mentality of being great neighbors. This will include job training, investment into local entrepreneurs, providing a safe space for kids, and offering our flex space as a resource for the neighborhood.

This property is in an opportunity zone.



Overview

Warehouse Redevelopment


The property - 43,000 sq. ft. on 2.5 acres - is positioned within one mile of Main St, in the Poe Mill neighborhood between Pete Hollis Blvd and Rutherford St / Poinsett Hwy. There are nearly a dozen ongoing or planned projects in the immediate surrounding area along the Poinsett Corridor, Pete Hollis corridor, and Swamp Rabbit Trail.




Business Model


Chapel is not meant to follow a conventional office and retail model. We are curating an experience through partnerships, rather than hoping there is interest from businesses looking for a lease. We believe this approach will reduce vacancy risk, capture more of the profits, ensure a strong community of tenants, and attract businesses from across the region.




A Poe Mill Partnership



Showroom Space


Chapel will host a retail space showcasing the amazing woodworking products created by those who Soteria serves. This will help generate more awareness of the program, more revenue to Soteria, and expand the professional opportunities for those going through the program.


Job Creation + Placement


Direct jobs within Chapel will include construction, commission of furniture for the space, restaurant operations, property management, and internship opportunities with tenants. The network of Chapel partners and tenants will also work to find new opportunities for Soteria members throughout the city.


Financial Education + Training


We will work together to provide financial education to those who are learning new skills through Soteria. On both a personal and professional level, this is a crucial aspect to long term progress and wealth-building.


Wealth-Building Opportunities for Our Neighbors


Chapel will help provide access to capital for business ventures, innovative rent-to-own products for office and residential space, and aim to share our success with our neighborhood.




History


The Poe Mill community is one of the few close-in neighborhoods with very little previous investment or growth opportunities.


Present-day, there is crime, homelessness, poverty, etc. but there is also a strong spirit of resilience to tap into. The Poe Mill community is a predominantly Black and Latino under-resourced community in Greenville County. The Poe Mill village community began with a promising spirit in 1895, around a mill built by Francis William Poe.


The community began to decline after the mill closed in 1977, and eventually burned down in 2003. Now nearly 80% of the homes in the area are investor-owned as Poe Mill is one of the last neighborhoods to feel the burn of gentrication.


This building has been vacant since Taylors Windows moved out in 2017 and the previous owner failed to lease it as industrial space. Originally a bakery for the village, the redevelopment and revitalization of this central location has the potential to increase the quality of life in the Poe Mill community.


Timeline





Current Property Photos 



Renderings & Plans



The Site


Investment Summary

  • This offering is for an equity stake in CHPL Real Estate, LLC.
  • The minimum investment is $500 with a share price of $100 each.
  • The targeted return is 10% annually on your invested amount, paid out quarterly.
    (Dependent on the available cash flow after all expenses)     
  • As an equity holder, any future sale of the property may result in an appreciation or depreciation of your original invested amount. (Note, you cannot lose more than your invested amount)

  •     The Goal raise is $100,000 - $250,000

Entity

CHPL Real Estate, LLC

Offering

Class C LLC/Membership Interests (non-voting)

  • $500 minimum individual purchase amount
  • $100,000 aggregate minimum offering amount
  • $250,000 aggregate maximum offering amount

Manager

CHPL Real Estate LLC, CM Development Partners, LLC

Targeted Hold Term

10 years +/-

Structure

Targeted distribution of 10% per year, paid out quarterly.

  • Distributions based on distributable cash flow of the project
  • Distributable cash flow to be paid out to investors on a pro-rata basis


Use of Next $100k of Funds


1. Final design/architecture: $45,000
2. Civil engineering: $25,000
3. Permits and legal: $30,000

Use of Funds from $100k to $250k


4. Landscape architecture: $15,000
5. Initial site work: $150,000



Investor Perks



Our People
About Company:

 


Matt McPheely

Manager


20-year Native Greenvillian with 15 years of real estate and private equity experience. Sold and raised more than $200M in real estate and operating business transactions. Matt is passionate about community-building and impact investing.


 LinkedIn
 Twitter



  


Brooks Calavan 

Manager


Austin-based entrepreneur and veteran real estate developer. Built and sold a managed IT company, bought and developed dozens of residential, commercial, multifamily, and mixed-use projects throughout the country.


 LinkedIn

Common Questions

Who is making this project happen?

In addition to the Co-Founders Matt & Brooks, an all-star development team has been assembled:

  • Training and Neighborhood engagement by Jerry Blassingame with Soteria Community Development
  • Best in the biz General Contracting by Harper Construction
  • Sitework Engineering wizardry by Bluewater Civil Design
  • Renovation architectural expertise by SHLTR Architects
  • Stunning visual design by Fathom & Draft

Why now?

Nearly 80% of the homes in the area are investor-owned as Poe Mill is one of the last neighborhoods to feel the burn of gentrification. This building has been vacant since Taylors Windows moved out in 2017 and the previous owner failed to lease it as industrial space. Originally a bakery for the village, the redevelopment, and revitalization of this central location has the potential to increase the quality of life in the Poe Mill community.

What was Poe Mill Originally?

The Poe Mill village community began with a promising spirit in 1895, around a textile mill built by Francis William Poe. The community began to decline after the mill closed in 1977, and eventually burned down in 2003. 

Why this location?

The Poe Mill community is one of the few close-in neighborhoods with very little previous investment or growth opportunities. The Poe Mill community is a predominantly Black and Latinx under-resourced community in Greenville County that holds a strong, largely untapped spirit of resilience.

Financial Highlights

*This projection information is provided by Chapel Real Estate LLC. Vicinity never predicts or projects performance, and has not reviewed or audited this financial forecast.


Projected Rev, NOI, and Cash Flow




Summary of Terms



Docs
Risks
  1. 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.

  2. We have not prepared any audited financial statements.

  3. The Company’s business operations may be materially adversely affected by a pandemic such as the Coronavirus (COVID-19) outbreak.


  4. A disruption in the credit markets and/or the curtailed availability of financing may adversely affect our business and results of operations.

  5. We are subject to risks that affect the retail environment, including adverse weather conditions and natural disasters, which could negatively affect consumer spending and adversely affect the sales of our retail tenants.

  6. General economic conditions could have an adverse effect on our business and results of operations.

This is a summary of some of the risks associated with this investment. A more comprehensive list of potential risk factors can be downloaded in the Docs section above.
Disclosures
  • CHAPEL Real Estate LLC has filed a Form C which can be found here.
  • Vicinity will be compensated upon a successful raise at 8% of the total amount raised.
  • There is no cost for investors to invest, though Vicinity will receive a 1% transaction fee on all payments from CHPL to investors that will be withheld from the payment to investors.
Investor Update

Here's the current state of the future restaurant space. Some beautiful light, great character - its going to be a special part of the project

Matt McPheely on October 12 Issuer

"We're excited to have places people can gather, hopefully markets and things like that where people in the neighborhood could have jobs. It could be a real work, live, play community."

- Jerry Blassingame, Founder/Developer at Soteria CDC


"When developers like Matt come in with a CHAPEL project and his first question is 'What type of services do you need in the neighborhood?' versus a 'Here, I'm coming with this project and this is what I want.' That's just a different mentality that we as a community - going through the things and issues that we're going through and looking for the partnerships we're looking for - that's what we want to hear."

- Kwadjo Campbell, President of Po Mill, Neighborhood Association


              

The future of the workplace     


The Greenville News

Opinion: In post-pandemic world, here's how Greenville could prosper



Forum
Matt McPheely
10-19-2020 11:32 AM
Issuer
The project doesn't show a lot of room for error in the cash flow projections. This feels like you'll be losing money if things don't go perfectly to plan, is that true?
 
 
Matt McPheely
10-19-2020 11:45 AM
Issuer
The above is a question I've gotten over the last few days, so I thought I'd add it here and respond to everyone. The revenue and free cash flow projections that have been presented are meant to be as conservative as possible. We want to under-promise and over-deliver, and fully intend to do so (even though we certainly can't promise it). There are planned revenue streams, such as revenue shares with our partners/tenants, events, retail sales, and in-house beverage sales that are not included in these numbers. So even though things won't go perfectly to plan, we have created many different paths to success.