1
Investment Highlights
Preferred Return
8.0% / yr
LPs get paid first — always. The 8.0% preferred return accrues quarterly and
carries forward through construction and lease-up, so nothing is sacrificed in the early years. Every dollar
of accrued preferred must be made whole before the general partner participates in a single dollar of
above-preferred distributions. Your floor is protected from day one.
Projected LP Total Annual Return
~11% / yr
Your upside doesn't stop at 8.0%. Once the preferred hurdle is cleared, excess
cash flow is split 75.0% to LPs and 25.0% to the
GP — keeping incentives fully aligned. The projected ~11% annual return combines the preferred with
your share of above-preferred distributions beginning in the first full operating year, and grows as base rent
escalates 3.0% annually.
Target IRR (10-Year)
12.5%
The biggest return driver is the exit. 3.0% annual rent escalations compound
over 10 years, growing NOI and pushing asset value higher every year. At disposition, the
capital gain — net sale proceeds above remaining debt — stacks on top of a decade of cash distributions to
deliver a 12.5% IRR and 2.7x equity multiple. Ground-up NNN plus
a long-term lease is a proven wealth-building combination.
Why This Investment
- Triple-net (NNN) lease structure — tenant pays base rent, property tax, and insurance, isolating the RE entity from day-to-day operating risk
- Long-term contracted income with 3.0% annual escalations over a 10-year primary term
- Ground-up construction delivers the building to vanilla shell condition at known, fixed cost with a ~10% contingency; no deferred maintenance, no environmental exposure, no lease rollover risk at acquisition
- Experienced operator with significant personal equity at risk in the tenant entity
- TI loan ($200,000 at 7.5%) funds the tenant's business-specific fit-out, earns interest income for the RE entity, and is senior to all tenant equity
- Multiple exit paths at maturity: disposition at a market cap rate, refinance, or lease renewal
2
The Opportunity
A ground-up entertainment venue purpose-built for a single experienced operator. The tenant will operate a full-service restaurant and bar alongside a curated arcade floor, virtual golf simulator, and private event lounges — a diversified, experience-driven business model designed to generate durable, recurring revenue across multiple categories.
Space Allocation
Restaurant Dining
Bar
Virtual Golf
BOH
Kitchen
Arcade Floor
Private Lounges
Outdoor
Coming Soon
Architectural renderings and floor plans will be inserted here. Final drawings will include a dimensioned floor plan, exterior elevations, and 3-D renderings of the dining, arcade, and event spaces.
3
Market & Location
Industry Context
$6.1B
US eatertainment industry revenue
12.8% CAGR 2020–2025 · IBISworld
60%
Consumers interested in eatertainment
~40% specifically interested in arcade bars · Datassential / QSR Mag
+15%
Global arcade bar market growth
Past 3 years · 2025's most profitable bar business type · fun-space.com
$4.6B+
Golf simulator market by 2033
From ~$2.5B today · 7–10% CAGR · Fortune Business Insights
National Precedents — The Category Is Proven at Scale
1UP Arcade Bar Colorado — 4 locations
Cidercade Texas — 3 locations
Headquarters Beercade Chicago, IL
Barcade Nationwide locations
Similar Concept Regional Precedents
Regional Competitive Landscape
The regional eatertainment landscape is concentrated in Madison and Milwaukee — both 22+ miles from Ozaukee County. The nearest concepts include Garcade (Menomonee Falls, 14 mi; unlimited-play arcade, 30+ pinball), Up-Down (Milwaukee Brady St, 22 mi; 21+ arcade bar), and DoubleTap Beercade (Madison, ~75 mi; pizza + arcade bar). The Mineshaft in Hartford (family-oriented, heavy ticket-play, card-based) is the closest geographically but targets a different demographic and price point. No competitor combines full-service dining, a craft bar, curated adult arcade, golf simulator, and private event space within Ozaukee County — this concept fills a clear gap in the market.
Garcade
Menomonee Falls, WI
14 mi
Unlimited play ($20 adult / $15 child) · 30+ pinball · event hosting · high score board
Up-Down
Milwaukee (Brady St), WI
22 mi
21+ only · Nintendo projector · pizza · token play · skee-ball leagues
The Mineshaft
Hartford, WI
20 mi
Large restaurant focus · family/kid-oriented · heavy ticket arcade · card play · event hosting
DoubleTap Beercade
Madison, WI
75 mi
Pizza + full bar · private events · rewards program · card credit play
The Kickback
Middleton, WI
80 mi
Pizza & snacks · full bar · pinball league · trivia night · beer events
Gamestar
Durand, WI
115 mi
Golf simulator · beer & wine · party packages · ticket arcade
Demand Drivers
- Historic downtown Cedarburg draws visitors from across the Milwaukee metro — 200+ historically significant buildings, festival calendar, and strong destination dining culture
- No eatertainment competitor in Ozaukee County; nearest comparable venue is 14+ miles away — unserved demand within the trade area
- Affluent, educated household base ($126,045 avg. HHI) with high discretionary spending capacity and strong repeat-visit potential
- Prime entertainment age cohorts are well-represented: 22.9% ages 25–44 and 24.6% ages 45–64 — the groups most likely to spend on dining + entertainment experiences
- Ozaukee County tourism economic impact growing at 4.2% annually; seasonal event traffic creates predictable high-volume weekends
- Multi-revenue model (dining, bar, arcade, golf simulator, private events) diversifies across multiple consumer occasions — date night, family outing, corporate team-building, birthday events, and competitive leagues
4
Sponsor & Team
Greg Steinbrenner
Stoneburner Enterprises
General Partner, RE Entity
PLACEHOLDER — Background in real estate development, prior projects, relevant experience with ground-up construction, commercial leasing, or investment structuring. Include prior deal track record if applicable.
Jeremy Olbrys
Page Paul Architectural and Interiors
General Partner, RE Entity
PLACEHOLDER — Architecture and design firm serving as co-general partner. Include firm background, relevant project experience, design credentials, and specific expertise in commercial entertainment or hospitality venues.
Placeholder
Lead Operator
General Manager, Tenant Entity
PLACEHOLDER — Background in restaurant/bar operations, entertainment venue management, or hospitality. Detail years of experience, any prior venues opened or operated, and specific expertise relevant to this concept.
Partners Brought on Board
Construction Lender
PLACEHOLDER — Bank / Financing Partner
Construction-to-permanent loan facility. Relationship to be confirmed prior to closing.
Legal Counsel
PLACEHOLDER — Attorney / Law Firm
Entity formation, operating agreements, lease documentation, and closing counsel.
Accounting & Tax
PLACEHOLDER — CPA / Accounting Firm
Tax structuring, LP K-1 preparation, and ongoing financial reporting for the RE entity.
5
Deal Structure
Entity & Structure Overview
RE Holding Entity
Wisconsin LLC
Owns land, building, and construction loan
General Partners
Stoneburner Enterprises & Page Paul Architecture and Interiors
Co-GPs: asset management, construction oversight, disposition
Investor Role
Limited Partners
Passive equity; no operational liability
Tenant Entity
Separate Operating LLC
Completes fit-out above vanilla shell; funded by operator equity + TI loan from RE entity
Lease Type
Triple-Net (NNN)
Tenant pays base rent + property tax + insurance
Distributions
Quarterly
8.0% cumulative LP preferred return; above-pref splits 75.0% LP / 25.0% GP
Planned Exit
Sale or Refinance
Target 10-year hold; 7.0% exit cap rate assumption
6
The Property & Lease
Property & Construction
Building Type
PEMB — Steel Frame
A-3 assembly occupancy; 4:12 roof; double-height arcade core
Gross Building Area
10,200 SF
Conditioned + leasable; outdoor area unconditioned
Land Acquisition
$400,000
~1.5–2 acre commercial site; purchased with LP equity
Construction Budget
$2,059,000
Delivers building to vanilla shell condition; includes ~10% contingency on all hard and soft costs
Construction Timeline
12 Months
Ground-up PEMB; Year 1 of analysis period
Total Project Cost
$2,698,500
Land + construction + closing costs + TI disbursement
Lease Terms
Lease Type
Triple-Net (NNN)
Base Rent Rate
$24 PSF / Year
$20,400/month at lease start
Annual Escalation
3.0%
Primary Lease Term
10 Years
Percentage Rent Kicker
0.0% Above $0
Activates when annual tenant gross revenue exceeds threshold
TI Loan to Tenant
$200,000 at 7.5%
5-year term; disbursed at occupancy; interest income to RE entity
Construction Budget by Category
| Category | Budget | % of Total |
|---|---|---|
| Core & Shell | $815,000 | 39.6% |
| MEP Systems | $472,000 | 22.9% |
| Kitchen & BOH | $110,000 | 5.3% |
| Interior Fit-Out | $175,000 | 8.5% |
| Site & Civil | $125,000 | 6.1% |
| Soft Costs | $175,000 | 8.5% |
| Contingency | $187,000 | 9.1% |
| Total Construction Budget | $2,059,000 | 100% |
The construction budget delivers the building to vanilla shell condition. At occupancy, the RE entity also extends a $200,000 TI loan to the tenant to fund the business-specific fit-out — furniture, equipment, technology, and pre-opening costs — that completes the space for this concept.
7
Financial Projections
Financial Pro Forma
| Line Item | Year 1 (Construction) | Year 2 (Opening) | Year 3 | Year 5 | Year 7 | Year 10 |
|---|---|---|---|---|---|---|
| Base Rent | — | $252,144 | $259,708 | $275,525 | $292,304 | $319,408 |
| NNN Recovery | — | $38,651 | $39,506 | $41,276 | $43,129 | $46,069 |
| % Rent Kicker | — | — | — | — | — | — |
| Net Revenue | — | $289,367 | $294,543 | $304,923 | $320,817 | $349,507 |
| Operating Expenses | ($14,285) | ($71,182) | ($73,014) | ($76,824) | ($80,841) | ($87,279) |
| Net Operating Income | -$14,285 | $218,185 | $221,529 | $228,098 | $239,976 | $262,228 |
| Debt Service | ($56,298) | ($84,370) | ($81,504) | ($75,088) | ($121,281) | ($121,281) |
| CapEx Reserve | — | ($12,607) | ($12,985) | ($13,776) | ($14,615) | ($15,970) |
| Net Cash Flow | -$70,583 | $121,208 | $127,040 | $139,234 | $104,079 | $124,976 |
Annual Distribution Schedule
LP capital base: $1,100,000. Preferred return (8.0%/yr) is cumulative — unpaid amounts accrue and must be satisfied before above-pref splits occur. Above-pref cash splits 75.0% LP / 25.0% GP. Capital gain on sale reflects Year 10 net equity proceeds at 7.0% exit cap.
| Year | 8% Pref Target | Pref Paid Out | Accrued Unpaid Pref | Above-Pref to LPs | Annual Return % | Capital Gain on Sale |
|---|---|---|---|---|---|---|
| Year 1 (Construction) | $88,000 | — | $88,000 | — | — | — |
| Year 2 | $88,000 | $96,208 | $79,792 | — | 8.7% | — |
| Year 3 | $88,000 | $127,040 | $40,752 | — | 11.5% | — |
| Year 4 | $88,000 | $128,752 | — | $3,221 | 12.0% | — |
| Year 5 | $88,000 | $88,000 | — | $38,425 | 11.5% | — |
| Year 6 | $88,000 | $88,000 | — | $7,137 | 8.6% | — |
| Year 7 | $88,000 | $88,000 | — | $12,060 | 9.1% | — |
| Year 8 | $88,000 | $88,000 | — | $17,130 | 9.6% | — |
| Year 9 | $88,000 | $88,000 | — | $22,353 | 10.0% | — |
| Year 10 | $88,000 | $88,000 | — | $27,732 | 10.5% | $1,954,468 |
| 10-Year Total | $880,000 | $880,000 | — | $128,058 | — | $1,954,468 |
8
Scenario Analysis
Assumptions & Scenario Outcomes
| Assumption / Metric | Base Case | Downside |
|---|---|---|
| Revenue & Lease | ||
| Base Rent Rate | $24 PSF / yr ($20,400/mo) | $23.00 PSF / yr |
| Annual Rent Escalation | 3.0% | 2.0% |
| Revenue Ramp | Commences Year 2 | Commences month 18 |
| Vacancy / Credit Loss | 5.0% | 10.0% |
| TI Loan Rate | 7.5% (5-year term) | |
| Expenses, Debt & Exit | ||
| Management Fee | 8.0% of collected rent | |
| CapEx Reserve | 5.0% of gross rent | |
| Insurance (Year 1) | $8,000, +3%/yr | |
| Maintenance (Year 1) | $12,000, +3%/yr | |
| Construction Loan Rate | 6.5%, 30-yr amort | |
| Exit Cap Rate | 7.0% | 8.0% |
| Selling Costs | 5.0% of gross sale price | |
| Base NNN Rent | Per contract | |
| Debt Service | Per schedule | |
| 10-Year Outcomes | ||
| 10-Year IRR | 12.5% | 9.4% |
| Equity Multiple | 2.69x | 2.10x |
| Cumulative Cash Flow | $1,005,161 | $910,383 |
| Equity from Sale | $1,954,468 | $1,396,369 |
| Total Return | $2,959,628 | $2,306,752 |
| Year 10 Sale Price | $3,517,967 | $2,930,494 |
Downside stresses vacancy/credit loss to 10.0% and exit cap to 8.0%; percentage rent assumed $0. Base NNN rent and debt service are contractual and unchanged in both scenarios.
9
Risk Factors
Risk
Construction risk — ground-up development exposes the entity to cost overruns, contractor delays, permitting issues, and material price inflation.
Mitigant
The construction budget includes a ~10% contingency ($187K) on all hard and soft costs. The construction-to-perm loan structure limits draw exposure, and a fixed-price GC contract is targeted to cap cost risk prior to breaking ground.
Risk
Tenant credit risk — the tenant is a newly formed entity with no operating history at this location, which limits the ability to underwrite credit quality directly.
Mitigant
Tenant investors have significant personal equity at risk in the operating entity (~$300K combined), and personal guarantees from principals are expected. The TI loan ($200,000) is structured as debt senior to all tenant equity, and the NNN lease structure limits landlord exposure to operating performance.
Risk
Ramp-up risk — entertainment and dining venues typically build revenue over 3–5 years; underperformance during the ramp period could stress tenant cash flow and reduce the probability of percentage rent activating on schedule.
Mitigant
The base NNN rent is the contractual obligation regardless of tenant revenue performance; percentage rent is structured as upside, not a required component of the deal's base case. The base rent ($20,400/mo) is underwritten conservatively at a rate the tenant's pro forma supports even at a 55.0% revenue ramp factor in Year 2.
Risk
Interest rate risk — the permanent loan is projected to fix at 6.5%, and the project carries refinance risk at loan maturity if rates remain elevated.
Mitigant
The construction-to-perm loan structure locks the rate into the permanent phase at origination, eliminating mid-hold refinance risk. The 30-year amortization schedule keeps annual debt service manageable, and DSCR at stabilization is underwritten above 1.4x even under stress scenarios.
Risk
Regulatory risk — a liquor license is required for tenant operations and is subject to municipal approval; delays or denial would materially impact the business model.
Mitigant
The liquor license application process is being initiated in parallel with construction permitting. The local regulatory environment is understood. PLACEHOLDER — add specific details on application status and any municipal relationships that support approval.
Risk
Single-tenant concentration — the asset generates 100% of its income from one tenant; a default, closure, or early lease termination would eliminate all revenue.
Mitigant
The building is purpose-designed for entertainment/F&B use, which supports re-leasing to a similar operator in the event of tenant replacement. The NNN lease, personal guarantees, and tenant equity investment create multiple layers of protection. The cash reserve maintained in the RE entity provides a buffer ($25,000) to cover debt service during any re-leasing period.