A Black-owned creative hub built for BIPOC creatives, in downtown Portland
- Black-owned. Project led and owned by a Black team
- BIPOC community. A safe space for the creative BIPOC community
- Creative hub. Studio, equipment rental, jazz bar, art gallery and more
- Revitalization. Repurposing of historic building in Old Town
- Urban density. Plenty of transit nearby.
- Return. 50% of cash flow to investors, capped at 2.5X initial investment
- Opportunity Zone. Additional tax benefits available.
Cyrus Coleman and Adewale Agboola (pronounced “WAH-Lay”) have purchased the historic Enterprise Building originally constructed in 1905. The 20,000 square foot building is three floors with a full basement and is located at 433 NW 4th Avenue, Portland, Oregon. Cyrus and Adewale plan to repurpose it as a creative hub dedicated to the BIPOC (Black and Indigenous People Of Color) community in Portland and are calling it the Creative Homies Enterprise Building (the “Building”).
Adewale and Cyrus want this Building to fill critical gaps in the market for the growing BIPOC community in Portland. A series of curated spaces are being designed, ranging from a subterranean music bar and lounge, to a museum-style gallery, cafe/wine bar and boutique store, a full production studio space, with equipment rental and creative space available for use by the Portland creative community along with rental lodging for studio guests. The Building will be owned and operated by CreativeHomies HQ, LLC (the “Company”), and managed by Cyrus Coleman and Adewale Agboola through the entity they have created, Creative Homies LLC ( the”Manager” or “Sponsor”.) The building will be leased to Creative Homies LLC and the Company is raising funds to complete the renovation and tenant fit-out for the planned use. 100% of net operating income from the business will be paid in rent. You can download the lease agreement here.
The Building is located in Old Town/Chinatown, a busy historic district in downtown Portland. This neighborhood has casual eateries, teahouses, and a lively nightlife scene, plus the famous Voodoo Doughnut shop. The Portland Chinatown Museum, Lan Su Chinese Garden, and the underground Shanghai Tunnels are additional local highlights. The building is also next door to the neighborhood’s first fair market value residence, Old Town Lofts, and the Japanese American Museum of Oregon. The Building is also historical itself and was originally constructed in 1905.
One of Portland’s target industry clusters is the Athletic + Outdoor. Nike, Adidas, Columbia Sportswear, and Under Armour all have major facilities or are headquartered in the Portland area, and recruit diverse talent from all over the world. Many of these hires are BIPOC, but there are few businesses that are owned and cater to BIPOC customers. For example, Portland is well-known for its dining scene, with over 11,000 restaurants, yet only 80 are Black-owned, or barely above 0.5 percent. By repurposing this building as a creative hub, with both spaces and services dedicated to the BIPOC community, we plan to meet this demand for businesses that are owned and serve the BIPOC community.
Portland is already known for its world-class restaurant, brewing, distilling, and craft-coffee, local food production, as well as a quirky counterculture, music scene, and excellent access to the outdoors. Two areas Portland has struggled in is to provide access to wealth-building through real-estate, and to support growing businesses for its expanding BIPOC community. As Portland rebuilds into a better version of itself, we want to help shape the vision for the future. This creative hub will be owned and operated by Black Professionals in a city where Black ownership is rare. We understand the needs of our community, and will create a special place in Portland: A space where the BIPOC community can feel empowered to share in their community’s vision, perspective, and point of view in a meaningful and authentic way. We plan to lead and inspire a greater community of creative culture in Portland by empowering marginalized voices, not only by example, but through our collaborative efforts.
You can review the full business plan here.
Cyrus Coleman comes from a long line of esteemed African American cultural icons. His great Uncle Willard “Home Run” Brown, is in the National Baseball Hall of Fame and was the first African American baseball player to hit a homer in the American League. His Grandfather Carlton “King” Coleman is an R&B singer and DJ who coined the “Mash Potato Dance” with James Brown in the late 50s and is in the Apollo Theatre’s hall of Fame. His Father Tony “TC” Coleman was the late BB King’s drummer for 35+ years and is a legend in his own right.
Cyrus grew up with an athletic and artistic mindset and passion his entire life. He got his start professionally after receiving a Bachelor in Fine Arts in Communication Design from one of our nation’s top design schools, The University of North Texas. While there, he honed his skills as an effective conceptual thinker and, most importantly, a creative problem solver in the disciplines of Advertising, Graphic Design, and Visual Arts. Since his time at university he has become an accomplished artist and designer based in Portland Oregon where he works as an NBA uniform designer for Nike. Some of Cyrus’ uniforms you may have seen range from the Minnesota Timberwolves “Prince” City Edition and the Atlanta Hawks “MLK” City Edition amongst many others. In addition to his day job, Cyrus has helped organize an annual “Check Your Swoosh” art show benefiting Make-A-Wish in honor of the late great Andrew Woodruff. In November of 2021 Cyrus had his first solo art show, Calm Cool Creative Presents: “Black Label” to announce this new endeavor, “Creative Homies” with his business partner Adewale Agboola.
While Cyrus has achieved some success early in his career this is just the beginning of the path he is following, blazed by his previously mentioned forefathers. We’re excited to see what the future has in store for him.
Adewale is a photographic artist. His work is simply emotionally driven, capturing the mood and demeanor of his subjects in powerful photographic images. He is well-versed in understanding human emotion, art + storytelling and not afraid to express his strong emotions through his work.
Adewale attended Mankato state university for Aviation and studio art. After being recruited to travel to China one summer to photograph lifestyle, Adewale became fascinated with the art of photography and creative directing. Now, after a 15- year career in the creative industry, he has worked with clients such as Nike, Target, Adidas, Wolf and Shepherd, redwing, RedBull, General Mills, Invisalign, Lil Nas X, Gronk, Bon Iver, The national, Chastity brown, Indigo girls, Ani Difranco and the list goes on.
Adewale is fascinated by people and has a genuine love for everyone he meets. His superpower is bringing like-minded people together. His ability to communicate and encapsulate moments from extreme to intimate is born of a deep and natural understanding of emotion. His photographs speak for themselves because of the beauty and truth they lay bare.
Equity Development Lab has provided real estate development consulting assistance to Cyrus and Adewale for this project. Jonathan Cohen and Jessie Burke are the experienced development consultants behind Equity Development Lab, LLC. They provide a range of services to support small and first-time business owners, property owners and developers. They have been operating small businesses- ranging from contracting business, to hotels, to a bakery- since 2003. They currently own and operate The Society Hotels, a collection of affordable boutique hotels in the Portland, Oregon area. As experienced owner-operators of their own businesses, they can assist clients with business plan development, business financing, real estate brokerage, development assistance, project management, and startup resources and operations training.
We completed a S.W.O.T analysis (Strengths, Weaknesses, Opportunities and Threats) before finalizing the planned use of space in the building. See Exhibit J: The Business Plan for the complete analysis.
The Basement: Soul King Music Lounge & Speakeasy.
Many classic music clubs showcasing high profile artists in Portland have closed. There are currently very few active jazz venues and few black-owned venues in Portland. Soul King Music Lounge is planned to fill this gap. Hidden in the bar, there will also be a speak easy for a more private dining experience.
Dan Lenzen, who has managed bars around the country for the last thirty-five years, will act as general manager, managing all areas of menu development, hiring and health & safety requirements, to provide a classic music venue, with a well developed food and beverage menu, and room to dance.
Floor 1: Gallery + Retail.
The 4,000 square foot first floor is planned as a rentable event space, art gallery, boutique, coffee shop/wine bar. There will also be access to a fully equipped commercial prep kitchen in the basement for event catering.
Our gallery will cater to the BIPOC community. Unlike many local galleries it is planned to include interactive components, and space of installation art along with relevant music. The cafe and boutique will be designed to enhance the gallery experience, allowing visitors to stay longer and build community, as well as purchase additional products and artist merchandise.
Floor 2: Makerspace
The 4,000 square foot second floor is planned to be repurposed as lease-able studio space, with accomodations for up to 44 creatives at a time, as well as shared amenities like large-format printers, wet/dry room, 3D printers, and silk screen printers. Additional supplies, tools, and resources will be available for rent from an on-site artist concierge. Storage space will also be included with monthly rental. If members require a more curated and custom space for their creative needs, there will be three private studios available to rent at monthly rates within the space. We will also have a soundproof recording space adjacent to the private studios.
Floor 3: Studio Space + Green Room
In our S.W.O.T analysis, we discovered that most studios don’t include the equipment and tools needed by creatives. Furthermore, most production spaces are not in proximity to other BIPOC creatives and their creative energy. We plan to change that with our creative hub.
At around 4,000 square feet, the third floor is planned to house a green room and a production studio to supply photographers and creatives with everything they need for production in one spot. Amenities planned include a 180 degree seamless photo cove, daylight windows, a scene shop, green room + kitchen cutting-edge rental equipment, changing room and make up area, a conference room, a lounge and community table as well as grip options. The Creative Homies building and our team will be prepared to meet all of their needs.
Studio rental will start at $1500/Hr + Grip package. Equipment rentals will be additional and include options such as the full line of DSLRs and Mirrorless cameras from Canon, Nikon, Sony, and Fujifilm. Support expertise to help select the model that best suits the intended shooting style will be provided. Professional quality lenses and accessories will also be available to complete any system perfectly.
Cyrus and Adewale, who together have 15 years of production and studio knowledge, will co-manage the gallery space, coordinating artists on rotation and marketing the venue for private events.
AIA 2021 Firm of the year, Holst Architecture, with strong ties to the Old Town neighborhood, has been engaged for the project. They have worked on previous renovations of this building in 2003-2005. Their experience in all types and sizes of real estate development, along with their experience in the permitting process for historic neighborhoods, will help to keep the project on time and on budget.
Timeline for Development:
December 31, 2021 - Purchase of the building
Spring/Summer 2022 - Architectural design and permit submission
Summer 2022 - Permitting approved and construction begins
Summer/Fall 2022 - Procurement and pre-sales for 2023 Studio + events rentals
Spring 2023 - Grand opening
“According to census data, Oregon is now 71.7% white. (That number dips down slightly in Multnomah County, which is 65.7% white.)
That’s still a clear majority, ranking us in the bottom half of the nation in terms of diversity. But it’s a definitive change from 2010 census results, when 78.5% of Oregonians were white. Furthermore, there is a growing BIPOC community in Portland, where 30% of Portland’s population now identifies as something other than white. These communities continue to have the lowest rate of property ownership in Oregon. Nike, Adidas and other major local companies are importing creatives and talent with diverse backgrounds and upbringings, but there is no place for them to gather together in Portland. Our creative hub seeks to fill that gap. As a Black-owned creative studio in Portland, Creative Homies Enterprise Building plans to be the focal point of Portland’s creative BIPOC Community providing space where every person and voice can be heard, experiences exchanged, and connections made.
The target market.
Target customers come from a variety of backgrounds:
BIPOC creatives and businesses. Black and Indigenous People of Color (BIPOC) are seeking community here in Portland. There are few creative spaces where they feel accepted as they are, let alone have the resources to express themselves without fear of being overlooked or misunderstood. We plan to provide a safe space where authentic collaboration and energy can be shared and compounded on. A place where multi disciplines will appreciate and inspire one another, and the BIPOC community can create from a place of safety and rest.
Corporate creative agencies. Our hope is that the building will also attract major creative agency partners, such as the partners we have fostered throughout our own careers. Weiden + Kennedy, Adidas, Nike, Industry, Thesis all offer their teams creative “offsite” opportunities. These partners will be encouraged to utilize and support the spaces within the building, whether it’s for a private event, or a need for production space. Our building can be a place where connections can be made between employers, brands and the BIPOC community. Creative Homies will be a source that can be tapped into for major brands and industries alike.
Local young adults. As two Black men, we understand how important it is for people to see a future for themselves that they might not otherwise be able to see. Creative Homies plans to host events and talks with Black professionals, offer creative internships, and foster mentorship opportunities for kids in the community.
Music artists. There is a strong music scene here in Portland. Cyrus’s father, Tony Coleman, was BB King’s Drummer for 35+ years, and is known as a legendary drummer in the music industry. Tony will serve as Creative Homies’ music director, and will use his local, national and international connections, as well as his role as one of the organizers of Portland Blues Festival, to attract musicians interested in intimate music venues with a unique artist/listener setting. Planned talented acts to be featured in the music lounge will range from local DJs, spoken word poets, live bands, and major artists looking for a limited and exclusive offering.
Fine artists. Founders Cyrus and Adewale are experienced visual creatives and leaders in their respective industries. As such, they plan to showcase their work in the gallery along with a rotation of additional curated artists. The gallery will also double as an event space. Talented artists who need tools and spaces to create will also be encouraged to utilize the makerspace and private studios on the second floor.
Coffee drinkers and foodies. Portland is known for its coffee and food scene. Cyrus and Adewale plan to partner with the best local chefs and coffee artisans in the Portland community to attract and support people looking to indulge their taste buds.
The Company is engaged in a Regulation Crowdfunding (Reg CF) offering (the “Offering”) to raise money to purchase, renovate and manage, as a creative hub, the building located at 433 NW 4th Avenue, Portland, Oregon, 97209.
We are trying to raise a maximum of $750,000, but we will move forward with the Project and use investor funds if we are able to raise at least $150,000 (the “Target Amount”). If we have not raised at least the Target Amount by 11:59 pm on January 20, 2023 EST (the “Target Date”), we will terminate the Offering and return 100% of their money to anyone who has subscribed.
The minimum you can invest in the Offering is $500. Investments above $500 may be made in $100 increments (e.g., $600 or $700, but not $750). An investor may cancel his or her commitment up until 11:59 pm on January 18, 2023 EST (i.e., two days before the Target Date). If we have raised at least the Target Amount we might decide to accept the funds and admit investors to the Company before the Target Date; in that case we will notify you and give you the right to cancel.
After we accept the funds and admit investors to the Company, whether on the Target Date or before, we will continue the Offering until we have raised the maximum amount.
Total development costs of approximately $4.12 million will be financed with an SBA 504 loan of approximately $2.6 million, a Prosper Portland Commercial Property Redevelopment Loan of $700,000, a $50,000 Prosper Portland PIP Grant, owner equity of $21,000 and $750,000 in equity raised through this offering.
The Company plans to distribute its Available Cash 50% to Investor Members and 50% to the Sponsor as a promoted interest, until Investor Members have received 2.5 times their original investment back.
The financing assumptions to purchase and develop the project are as follows:
|Project costs||Total||Acquisition||Tenant fit out|
|Property refinancing + closing costs||2,150,000||2,150,000|
|Soft costs + Operating reserves||979,872||979,872|
|Hard costs for tenant improvements||991,128||991,128|
|Total project costs||4,121,000||2,150,000||1,971,000|
|Prosper Portland Commercial Property Redevelopment Loan||700,000||700,000|
|Prosper Portland PIP Grant||50,000||50,000|
|Small Change equity investors||750,000||750,000|
|SBA 504 Loan||2,600,000||2,129,000||471,000|
During the holding period the Company expects cash flow from operations to increase from approximately $101,000 in year one to approximately $562,000 in year four. The Company plans on refinancing the project in year 5. You can find a more detailed budget and proforma in this full business plan
The Company plans to distribute its Available Cash 50% to Investor Members and 50% to the Sponsor as a promoted interest, until Investor Members have received 2.5 times their original investment back.
Investor Members may still maintain their ownership of the Company, but no longer receive a return after reaching 2.5 times their original investment amount. In other words, an investment of $1,000 may return a maximum of $2,500 including the original investment amount. For clarity, once the Investor Members have received 2.5 times their original investment amount back, Investor Member shares can be redeemed by the Company at no cost.
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.
In making an investment decision, Investors must rely on their own examination of the Companies and the terms of this offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of this offering, nor does it pass upon the accuracy or completeness of any offering document or literature related to this offering. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
There are numerous risks to consider when making an investment such as this one and financial projections are just that - projections. Returns are not guaranteed. Conditions that may affect your investment include unforeseen construction costs, changes in market conditions, and potential disasters that are not covered by insurance. You can download a more expansive list of potential risks here.