Pool at Hollingsworth
Regulation Crowdfunding
Goal: $1,300,000 up to $1,500,000
Term Loan
6% Interest Rate
$1,500,000
Funded
Start date: September 19, 2022
End date: November 30, 2022
Why fund our local story
Highlights
- Planned financial return while helping create the amenity Hollingsworth Park residents have been waiting for
- Investors get first priority in purchasing a membership
- Built-in membership demand from local residents verified by neighborhood surveys
- Land and complete site work (>$750k value) contributed by local developer, with grading/excavation already underway
Overview
The Opportunity
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The Pool at Hollingsworth Park is an in-demand amenity in a premier neighborhood. Hollingsworth Park is the central residential neighborhood within Verdae, an 1,100 acre residential, commercial and recreational development located minutes from downtown in Greenville, SC.
Surrounding the 20-acre Legacy Park, Hollingsworth Park's smart, flexible master plan comprises diverse housing at varying price points from the $500,000s into the millions. At completion, the community will have more than 950 homes.
As this area continues to grow, so does demand for new places to live, work, and play. While community pools and swimming clubs are extremely popular in Greenville, Hollingsworth Park does not have a pool amenity — until now.
Introducing the Pool at Hollingsworth Park: a fully designed and engineered private pool and swim club that is nearly shovel-ready and could become a reality as early as Summer 2023.
The Location
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The Pool at Hollingsworth Park will be located within walking distance from more than 700 existing residences — with more to come — on easily walkable sidewalks and neighborhood streets.
One of the few remaining places available to construct the Pool at Hollingsworth Park is Crossmoor at Hollingsworth Park, the new 22-lot residential neighborhood at Verdae Crest Drive and Chadsworth Drive. Site construction is already underway and will soon be ready for the pool.
The Project
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Crossmoor, LLC, the developer of Crossmoor at Hollingsworth Park, will contribute the three-acre pad-ready pool site, including underground utilities, a parking lot, curbs, sidewalks, and landscaping — worth more than $750,000 — as a gift to jump-start the project.
With a successful capital raise of $1.3 million to fund the pool construction, The Pool at Hollingsworth Park could be open as early as Summer 2023.
Features
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➤ Six-lane Junior Olympic saltwater pool
➤ Sundeck designed for kids, featuring in-floor bubblers
➤ Bathrooms with private showers
➤ Covered and shaded areas for dining and gathering
➤ Wrap-around pool deck with tables, umbrellas, and lounge chairs
➤ Designated concessions area
Business Model
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The Pool at Hollingsworth Park will operate as a not for profit private swim club with a paid memberships revenue model. Memberships provide access to the pool and its amenities.
Under management of its Board of Directors, the swim club will use revenue to support the operations and maintenance of the pool facilities, administer the swim club and pay financial returns to investors. Membership is expected to be capped at 350 members.
Before launching this capital raise, the swim club verified demand for a private pool with an extensive survey of Hollingsworth Park residents. With over 350 residents indicating interest and providing information for membership marketing, it seems the biggest challenge will be deciding who gets to join first!
The Leadership
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The development project is led by Hollingsworth Park resident Chris Babcock and a Board of Directors comprising neighborhood residents with professional expertise in real estate development, construction, financing, marketing and business strategy as well as plenty of local swim team experience.
As a fourth-generation real estate development firm, Babcock Investment Company has developed dozens of residential and commercial projects in Florida, Georgia and South Carolina. All are committed and excited to bringing this in-demand amenity to their neighborhood — truly, investing where they live!
Investment Summary
Proposed Terms
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- This offering is for a Term Loan
- Amount: up to $1,500,000
- Maturity: 8 years, interest-only construction period up to one year
- Interest rate: 6% per year
As a term loan, the offering is prepayable as the swim club generates cash flow from operations. Membership initiation fees will provide a substantial pay-down in year 1, expected to be ~34% of the loan principal.
Thereafter, the swim club will make scheduled principal and interest payments and excess cash flow payments through the life of the loan, anticipated to significantly pay down the loan before maturity or planned refinancing of the remaining loan balance prior to maturity.
Other Notes:
● Investors will be given first priority to purchase pool memberships.
● The pool and amenities are fully designed with architectural and engineering plans in hand and a nearly shovel-ready site.
Investor Perks
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The table below outlines the perks being offered for various levels of investment:
Pro Forma
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Projections have been created and vetted by the Board, and developed with the benefit of comparable pool club's financials and actual bids for services in-hand.
Capital Sources/Uses
Our People
Chris Babcock,
Developer
Developer
Chris has 24 years of experience in real estate development, entitlement, acquisitions, and dispositions. He is the principal of Babcock Inv..
Spencer Elliott,
Board Member
Board Member
Spencer has 15 years of investment banking, leveraged buyout, and deal management experience. Before moving to Greenville with his family in..
Jade Poe,
Board Member
Board Member
Jade is a Greenville native and a Clemson alumnus. She has an MBA in Business Analytics and 10+ of marketing experience. She was previ..
Ashley Niles,
Board Member
Board Member
Ashley Niles is a native of Greenville South Carolina. She graduated from the University of South Carolina and holds a master's degree in ea..
Jimmy Giorgi,
Board Member
Board Member
Jimmy Giorgi is the COO of Rescom Construction in Greenville, SC. Rescom Construction is a general contractor specializing in commercial upf..
Common Questions
Are there different investment levels and benefits?
Yes. You can see the investment perks here on the offering page and within the Form C.
If I invest in the pool, will I have priority in getting a pool pass?
Yes. Investors will have priority access to purchase pool memberships when they become available for sale.
If I invest in the pool and get a pass, can the pass be transferable if I sell my house?
Terms and conditions of pool memberships will be specified when memberships become available for purchase. We currently expect memberships will be transferable with payment of a transfer fee by the transferee.
How much do I need to invest to get on the priority list for a pool pass?
When the capital campaign becomes active, we expect the minimum investment amount to be $1,000. Investors will have priority access to purchase pool memberships when they become available for sale.
How much will pool membership cost?
Terms and conditions of pool memberships will be specified when memberships become available for purchase. We currently expect memberships to be priced similarly to comparable pool clubs in Greenville, with a $1,500 initiation fee and $550 annual membership fee.
Will you raise all $1.5 million from investors in Hollingsworth Park?
While Vicinity exists to provide local investors the opportunity to invest in their communities, the platform includes investors who live outside Hollingsworth Park and Greenville, SC. Currently, the majority of investment interest in the Pool at Hollingsworth Park is from local residents.
Can you tell me more about the swim team?
Initially, the pool and amenities will be available for recreational use by members of the private pool club and their guests. If there is sufficient interest in forming a swim team at the Pool at Hollingsworth Park, the members may elect in the future to organize a swim team and affiliate with SAIL. Matt Summey is the appointed SAIL representative for the Pool at Hollingsworth Park.
When will applications for pool membership be available?
We expect to offer pool memberships for sale once pool construction is underway. We currently anticipate this will be by Spring 2023.
Docs
Risks
Investing carries general risks, such as losing all the money you invest. Some key risks are listed below, but see the Form C for additional risks and disclosures.
Limited Operating History. The Company is still in an early phase and we are just beginning to implement our business plan.
The Company’s future growth depends on constructing and setting up a pool and associated structures that do not currently exist. The Company’s ability to execute its business plan depends upon its ability to complete the construction and setup of a pool and associated structures that do not currently exist. Although the Company believes it will be able to complete this construction and setup at a reasonable price, there is no guarantee that this can be achieved. If the construction and setup can only be completed at a considerably higher cost than expected, the Company may need to incur additional debt and its ability to repay the promissory notes may be significantly impacted. Additionally, if the construction and setup is not able to be completed then the Company will not be able to repay the promissory notes.
There may be construction cost overruns and delays. The estimated costs are based on the Company’s current estimates. The estimates are, in turn, based on certain assumptions, including, but not limited to, the assumption that this Offering is fully funded.
Key Personnel. The Project is highly dependent on the above director(s) to oversee ongoing operations. Their loss would adversely affect the Company and the Company might have to obtain other personnel to perform his duties. There can be no guarantee such replacement personnel will be available or that the Company will proceed as planned in the event of the loss.
Competition. There are other private pools in the Greenville area that represent similar offerings and pricing to members. If the Company has difficulty in attracting members, it is possible the business revenue plan will be hampered and it will significantly impact the Company's ability to repay the promissory notes.
Disclosures
Chadsworth Drive Swim Club, Inc. Form C filing can be found here.
Vicinity will be compensated upon a successful raise at 4% of the total amount raised, plus securities in the same form 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 the Company to investors that will be withheld from the payments to investors.
Forum
Britt Atkinson
11-10-2022 11:11 AM
Investor
Interested, but we have a few questions. 1. Based on the rendering and site plan I see included, the number of loungers and seating items seems limited. Do you have a number of seating accommodations you expect? I also do not see any sun structures at the pool deck (not just at the pool house and patio adjacent). Will these be provided and are they currently budgeted? 2. What is the projected membership cost? Do you have a max for membership you are planning? 3. Is the 6% ROI guaranteed based on projected membership? How is this guaranteed? Thank you for your time!
Chris Babcock
11-10-2022 1:00 PM
Issuer
Thanks for your question. We have modeled the deck space in a CAD model and have room for 115 full size lounge chairs and 14 round tables with umbrellas (ie: additional sun cover) with 4 chairs each for an additional 56 seats. This includes a minimum of 10 feet of walking space on all sides of the pool, so additional chairs and tables could be added. There is also an additional 1000 sf of covered area in the pool house for seating. Finally there is another 1000 sf of uncovered open space next to the concession area where we anticipate placing outdoor grills. The budget includes FF&E like deck chairs and tables- but the number ordered will be determined closer to opening. We anticipate the initial membership fee to be $1500 per family and then $550 per summer. The max membership is currently projected at 350 families. The investment is based on the 350 family number which is shown on the spreadsheet showing payback here on the Vicinity site. The minimum amount of members required to service the 6% interest to investors is roughly 180 families. We believe that this is very conservative underwriting given the interest in the Pool from our neighbors.
Chris Babcock
10-21-2022 9:24 AM
Issuer
We had some more questions posed about the Pool and memberships. If we meet our investment goal and are able to open up membership sales, memberships will be one per family. Out of town family members would not need to pay the visitor fees when at the Pool with their family. Memberships can be transferred to a buyer of your home should you move.
We also want to be clear about this phase of the project. The money neighbors have invested is not a "donation", as it is structured as a loan to be paid back from the operations of the Pool. Also - should we not meet our goal by the deadline - all of those who have invested will receive the entirety of their investment back in the account from which they sent the investment.
Rena Carbonel
10-19-2022 1:42 AM
Investor
Hello! What kind of investment return can one expect investing 1,000 vs 10,000 for example ?
Palmer Story
10-19-2022 2:05 PM
Investor
Hey Rena,
Given that this is a term loan at a 6% interest rate, the interest-only payment would be calculated for the $1,000 and $10,000 income accordingly each year. Note also the possibility of prepayment. From the campaign page: “the offering is prepayable as the swim club generates cash flow from operations. Membership initiation fees will provide a substantial pay-down in year 1, expected to be ~34% of the loan principal.”
Jenny Kramer
10-15-2022 5:56 PM
Investor
Hi! I’m unclear if the raise is not met by the date, do investors receive their investment back, in full? If so, in what time period? (It’s a bit unclear if this is a loan or risk based investment- I see both terms being used throughout). I’ve seen “term loan” which assumes we will receive monies back no matter what, but the following assumes risk of losing the monies:
“ although the company believes it will be able to complete this construction and set up at a reasonable price. There is no guarantee that this can be achieved. If the construction and set up can only be completed at a considerably higher cost than expected, the company may need to encourage additional debt, and its ability to repay the promissory notes may be significantly impacted. additionally, if the construction and set up is not able to be completed in the company will not be able to repay the promissory notes.”
Next: Is there a chance that an investment if $1k+ could still result in not receiving a membership spot? (If more than 350 invest?)
Thank you - We hope to support, but felt there were apparent risks we wanted clarification on before we felt comfortable doing so. .
Chris Babcock
10-17-2022 8:59 AM
Issuer
Jenny,
Thanks for your questions. Yes, in the event we do not hit the $1.3MM, the investor's money is immediately refunded. All loans are inherently risk based investments, with the main risk here being that, once built, no one joins the pool. This risk seems like a pretty low probability given the high interest levels from the neighborhood. Regarding the language related to construction costs: we have a hard bid from Hot Springs Pools for the pool, 2 bids from local reputable licensed contractors for the pool house, and a buffer budget for items like FF&E that can be flexed downward if we incur overages in the construction to mitigate that risk. With regard to the $1K investment not receiving a membership spot: we currently have 70 investors and the ability to flex upward on our total members should this occur. While we certainly appreciate people coming in at the minimum $1,000 - if everyone invests at this level going forward, we won't meet our goal and there will be no pool, thus making the membership issue moot. Thanks for your question and let me know if I can clarify anything else.
JD Adams
10-07-2022 3:35 AM
Investor
This is great and we are definitely considering investing. Do the investors have any ability to contribute to the design? We would love to see this pool not just be another swim team pool, but really a destination, with food and beverage (are adult beverages an option?), that also has a swim team. Sounds like that may be the vision, but wanted to make sure before investing. This could be great for the Hollingsworth community and rival the local country clubs.
Chris Babcock
10-07-2022 12:18 PM
Issuer
The Pool Board is happy to have input on design from investors. We are, however, fairly deep into the design drawings that will submitted to the City (as you can see from the renderings) as we have multi-month permitting to get through in order to aim for Summer 2023. We are certainly not aiming to be a Swim Team only pool. We hope to use the facility year-round even when swimming is not a priority. Think college football watch parties, neighborhood meetups, and holiday parties to keep the amenity well-utilized. We have already discussed plumbing for outdoor heaters for such events. Thanks for your question!
Jess Rosenthal
09-27-2022 10:15 AM
Investor
Can Vicinity (or someone else associated with this offering) act as an IRA custodian so that I can use IRA funds for this investment?
Josh Rollins
09-29-2022 4:06 AM
Issuer
Hi Jess, Vicinity is not able to act as the IRA custodian, but we are happy to provide any administrative support to you and any self-directed IRA custodian you use/choose that is willing to be the custodian on this offering. Thanks and let me know if you need anything else!
Benjamin Ward
09-19-2022 7:25 PM
Investor
If more than 350 people give to the campaign, how is priority determined for pool memberships?
Chris Babcock
09-27-2022 6:43 AM
Issuer
Thanks for your question. We currently have about 150 people that have indicated interest, so we don't anticipate having an issue with prioritization.
Edward Patterson
08-18-2022 2:17 PM
Investor
I have never invested in crowdfunding so I wanted to understand the internal handling of the funds. Is this a loan to Hollingsworth Park directly, or Vicinity Holdings, LLC or another entity or is it treated as an investment into an entity? I just wanted to understand a little more.
Thank you
Ed Patterson
Josh Rollins
08-19-2022 12:00 PM
Issuer
Hi Ed, thanks for the question. I can answer as a representative of Vicinity. We facilitate the offering as an intermediary, but the investment and agreement is directly between an investor and an issuer (in this case, the not-for-profit operating the pool). All funds are held in escrow until the conclusion of a successful raise.
Best Regards,
Josh