Watch Live Webinar
(Recorded Oct 26, 2024) Join Caliber CEO, Chris Loeffler, and PURE Pickleball & Padel Co-Founders, Kevin Berk and Brett Warner, for a live webinar discussing details regarding the PURE Pickleball & Padel investment opportunity, deal terms, development timelines and more. Learn how to partner with Caliber by scheduling a personalized meeting to review this offering, discuss your specific investment objectives, and submit an offer to invest.
Recorded Live – October 24, 2024
Offering Summary
PURE Pickleball & Padel at Riverwalk is the first of many exciting developments Caliber is bringing to the ±79 acre parcel acquired in 2022. Located on Parcel 2A, one of three parcels within “The Sports Village Zone”, this state-of-the-art facility is poised to become a landmark in Arizona’s vibrant sports scene.
Strategically situated just off the 101 Freeway and East Via de Ventura, the facility enjoys exposure to over 159,000 vehicles per day. It’s positioned near popular destinations like the Arizona Diamondbacks and Colorado Rockies Spring Training facilities, OdySea Aquarium, Top Golf, and Talking Stick Resort, and is part of the Salt River Pima-Maricopa Indian Community.
Invest in the fastest-growing sports in the US & Europe with the backing of a real asset
Prime location near major attractions in Scottsdale, AZ and the Greater Phoenix Metro Area.
Investors can be diversified, gaining exposure to this project while investing in a multi-asset opportunity zone fund or traditional real estate fund. Alternatively, investors can concentrate in this project only, either directly as an opportunity zone investor or as a traditional private real estate investor.
Self-directed IRA investors may also invest in this project
Offering Highlights
| Legal Entity Name | Pickleball at Riverwalk Opportunity Zone Fund, LLC & Pickleball at Riverwalk Fund, LLC |
| Property Location | Riverwalk Development at SRPMIC, adjacent to Scottsdale, Arizona |
| Asset Class | Sports, Entertainment |
| Investment Type | Single Asset |
| Investment Strategy | Opportunistic, Development |
| Investment Objective | Growth, Capital Gains Tax Reduction |
| Occupancy | None |
| Investor Profile | Accredited Investors Only |
| 1031 Exchange Allowed? | No |
| Strategy | Opportunistic, Development |
| Opportunity Zone? | Yes (Investment Option 1 Only) |
| SD-IRAs Allowed? | Yes (Investment Option 2 Only) |
| Targeted Hold Period | 5-10 years |
| Targeted Total Raise | $22,000,000 |
| Sponsor Co-Investment | $12m, 33%; Contributed land value from Caliber’s first opportunity zone fund as LP Equity |
| Minimum Investment | $100,000 |
Investment Details
Investment Description
PURE Pickleball & Padel at Riverwalk is the first of many exciting developments Caliber is bringing to the ±79 acre parcel acquired in 2022. Located on Parcel 2A, one of three parcels within “The Sports Village Zone”, this state-of-the-art facility is poised to become a landmark in Arizona’s vibrant sports scene.
Strategically situated just off the 101 Freeway and East Via de Ventura, the facility enjoys exposure to over 159,000 vehicles per day. It’s positioned near popular destinations like the Arizona Diamondbacks and Colorado Rockies Spring Training facilities, OdySea Aquarium, Top Golf, and Talking Stick Resort, and is part of the Salt River Pima-Maricopa Indian Community (SRPMIC).
Property Details
| ADDRESS | To be finalized |
| ASSET CLASS | Sports & Entertainment |
| YEAR BUILT | Estimated Completion Date Q2 2026 |
| ACRES | ±11.44 |
| BUILDING SIZE | ±186,423 sq. ft. |
| NUMBER OF BUILDINGS | 1 |
| BUILDING NAME/PURPOSE | Pickleball Facility (includes 50 courts for daily open play, hosting large tournaments once or twice per year, clubhouse, fitness center, pro-shop, teen room, office, restaurant/cafe and locker rooms). |
| PARKING SPOTS | 427 |
| OCCUPANCY | N/A |
Property Details
| Demographics | 10-Mile Radius |
|---|---|
| Population | 720,840 |
| Median Age | 38.90 |
| People per Household | 2.2 |
| Growth Projection (2024-2029) | 9.08% |
| Unemployment | 10.82% |
| *Source: CoStar |
Sponsor Summary
With more than $2.9 billion of managed assets, including estimated costs to complete assets under development, Caliber’s 15-year track record of managing and developing real estate is built on a singular goal: make money in all market conditions. Our growth is fueled by our performance and our competitive advantage: we invest in projects, strategies, and geographies that global real estate institutions do not. Integral to our competitive advantage is our in-house shared services group, which offers Caliber greater control over our real estate and visibility to future investment opportunities. There are multiple ways to participate in Caliber’s success: invest in Nasdaq-listed CaliberCos Inc[CL1] . and/or invest directly in our Private Funds[CL2] .
PURE Pickleball & Padel was founded by Kevin J. Berk and Brett W. Warner with a vision to meet the growing demand for pickleball and padel in the U.S. Their first location will open in Scottsdale, Arizona, offering state-of-the-art facilities and a vibrant, community-focused atmosphere.
Kevin, former Co-founder and President of AZ on the Rocks – Indoor Climbing, Inc.™, brings over 18 years of experience in the family entertainment industry and a deep connection to the Scottsdale community. Brett, a seasoned pickleball professional ranked #45 in the world in 2022, is a 5-time national champion and professional coach. Together, their expertise and passion for the sport aim to make PURE Pickleball & Padel a hub for players of all levels.
Business Plan
General Business Summary
The development will be a ‘country-club’ style facility with 50 indoor courts, a championship court with arena seating for tournaments, and a fully built out clubhouse with a variety of amenities including a restaurant / café, gym, recovery area, locker rooms, and pro shop. Annual and monthly memberships will be offered along with daily passes.
Business Plan Assumptions
Net Operating Income (NOI) In Thousands
| Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenue | $0 | $926 | $5,718 | $7,065 | $8,808 | $10,596 | $12,430 | $14,509 | $16,541 | $18,402 |
| Operating Expenses | $137 | $529 | $2,596 | $3,228 | $3,588 | $3,967 | $4,364 | $4,806 | $5,257 | $5,707 |
| NOI | ($137) | $397 | $3,123 | $3,837 | $5,220 | $6,629 | $8,066 | $9,704 | $11,283 | $12,696 |
| NOI Growth (% YOY) | -389.4% | 685.8% | 22.9% | 36.0% | 27.0% | 21.7% | 20.3% | 16.3% | 12.5% | n/a |
Exit Strategy
The exit strategy for the PURE Pickleball & Padel at Riverwalk project is focused on either the sale or recapitalization of the business. This will provide a liquidity event for investors, with the goal of maximizing returns. The exit is currently projected for Year 10 from the start of the project.
Assumptions
| At Aquisition | At Sale (Year 10) | |
|---|---|---|
| NOI | N/A | $12,695,630 |
| Occupancy | N/A | N/A (membership based) |
| Cap Rate | N/A | 10x multiple on EBITDA (NOI) |
| All in Cost / Sale Price | N/A | $142,475,444 |
| Price per Unit | N/A | N/A |
| Average Rent $/SqFt | N/A | N/A |
*These numbers are valid assumptions as of October 1, 2024 and are subject to change.
Financial Plan
Capital Plan
| Capital Sources | |
|---|---|
| Land Contribution | $11,960,774 |
| Equity | |
| Common Equity ($, %) | $22,000,000 |
| Total Equity Raised | $22,000,000 |
| Debt | |
| Construction Loan | $31,204,594 |
| Total Debt | $31,204,594 |
| TOTAL SOURCES | $65,165,369 |
| Capital Uses | |
|---|---|
| Acquisition Costs | ($11,960,774) |
| Soft Costs | ($6,181,224) |
| Hard Costs | ($42,545,676) |
| Financing Costs | ($1,721,515) |
| Equity Fee Reserve | ($2,756,180) |
| TOTAL USES | ($65,165,369) |
Caliber expects to place a traditional construction loan with conservative underwriting considering approximately 50% loan-to-cost and a potentially more attractive loan-to-value ratio. This loan will not be sourced or closed until we are within 2-3 months of groundbreaking.
Investment Options & Terms
Option 1: Pickleball at Riverwalk Opportunity Zone Fund, LLC
Maximum Raise *
$22,000,000
Minimum Investment
$100,000
Anticipated Hold Period
10 years
Class B Preferred Return: **
6%
annualized, non-compounding
Management Fee
1.5%
Initial Price Per Unit
$1,000
Investors looking to defer and potentially reduce capital gains tax liabilities can invest through Caliber’s Opportunity Zone fund. By participating, you’ll not only benefit from the potential long-term appreciation of the facility but also from the tax advantages associated with Opportunity Zone investments, including deferral of capital gains and potential tax-free growth.
* The Maximum Raise Amount may be increased as determined in the reasonable discretion of the Manager but only to the extent such additional amounts raised are used for the purpose of further entitling and developing the Project in accordance with the development plan reasonably adopted by the Manager.
** The 6% Preferred Return is not guaranteed.
Investment Waterfall
Cash Flow from Operations –FundCo***
- First, 100% to the equity investors of the FundCo until such holders have received amounts equal to a 6% preferred return, pro rata;
- Second, (i) 70% to the equity investors of the FundCo until such holders have received a 15% IRR and (ii) 30% to GP or its affiliate;
- Third, (i) 60% to the equity investors of the FundCo until such holders have received a 18% IRR and (ii) 40% to GP and its affiliate; and
- Thereafter, (i) 50% to the equity investors of the FundCo, and (ii) 50% to GP or its affiliate.
Cash Flow from Operations –Class B Investors***
- First 100% to the holders of Units until such holders have received amounts equal to a 6% preferred return, pro rata based on the accrued and unpaid preferred return due and owing to the investors.
- Thereafter, 100% of the proceeds are distributed pro rata to the holders of the Units.
*** Waterfall shown is for Cash Flow from Operations only. Please see Private Placement Memorandum for complete waterfall for Cash Flow from Operations and Cash Flow from Sale or Refinance.
Option 2: Pickleball at Riverwalk Fund, LLC
Maximum Raise *
$22,000,000
Minimum Investment
$100,000
Anticipated Hold Period
10 years
Class B Preferred Return: **
6%
annualized, non-compounding
Management Fee
1.5%
Initial Price Per Unit
$1,000
For those who do not have capital gains but are still interested in this exciting venture, Caliber offers a non-Opportunity Zone investment option with the same terms and benefits, excluding the tax advantages. This allows investors to participate in the growth of a premier sports destination in Scottsdale without needing capital gains eligibility.
* The Maximum Raise Amount may be increased as determined in the reasonable discretion of the Manager but only to the extent such additional amounts raised are used for the purpose of further entitling and developing the Project in accordance with the development plan reasonably adopted by the Manager.
** The 6% Preferred Return is not guaranteed.
Investment Waterfall
Cash Flow from Operations –FundCo***
- First, 100% to the equity investors of the FundCo until such holders have received amounts equal to a 6% preferred return, pro rata;
- Second, (i) 70% to the equity investors of the FundCo until such holders have received a 15% IRR and (ii) 30% to GP or its affiliate;
- Third, (i) 60% to the equity investors of the FundCo until such holders have received a 18% IRR and (ii) 40% to GP and its affiliate; and
- Thereafter, (i) 50% to the equity investors of the FundCo, and (ii) 50% to GP or its affiliate.
Cash Flow from Operations –Class B Investors***
- First 100% to the holders of Units until such holders have received amounts equal to a 6% preferred return, pro rata based on the accrued and unpaid preferred return due and owing to the investors.
- Thereafter, 100% of the proceeds are distributed pro rata to the holders of the Units.
*** Waterfall shown is for Cash Flow from Operations only. Please see Private Placement Memorandum for complete waterfall for Cash Flow from Operations and Cash Flow from Sale or Refinance.
Key Dates
Construction timeline
Schematic Building Design
Q2-Q3 2024
Design Review Approval Process
Q3 2024 – Q1 2025
Building Permit Submittal
Q1 2025
Building Permit Approval
Q1 2025
Groundbreaking
Q2 2025
Estimated Project Completion
Q2 2026
Executive Team
Our executive team brings extensive experience in scaling businesses, having grown Caliber to $2.9 billion in assets under management, serving over 2,000 customers with more than 80 employees. With broad expertise in strategy, capital raising, real estate investing, product development, and capital markets, they are entrepreneurial leaders with a growth mindset and a contrarian approach. Aligned with shareholders, the team holds approximately 50% stock ownership, including the Co-Founders, ensuring their interests are fully aligned with investors.
CEO
Chris LoefferAs CEO, Chris oversees all acquisitions, manages investment funds, and builds strategic partnerships.
PRESIDENT, CO-FOUNDER & DIRECTOR
Jennifer SchraderJennifer is in charge of daily operations at Caliber and provides hands-on direction for all new construction and redevelopment projects across the company’s portfolio.
CHIEF FINANCIAL
OFFICER
Jade LeungAs CFO, Jade Oversees corporate financial planning, reporting, operational optimization, and risk management across Caliber’s business units.
CHIEF DEVELOPMENT OFFICER
Roy BadeRoy is responsible for sourcing and analysing potential properties for the company, seeking ways to maximize returns on existing properties, and managing construction and development activity.
Documents & Resources
Pickleball at Riverwalk
Opportunity Zone Fund, LLC
Pickleball at Riverwalk Fund, LLC
Other Pickleball at Riverwalk Documents
Articles & Press Coverage
‘PURE Pickleball & Padel’ to build the world’s largest indoor pickleball facility in Arizona
Pure Pickleball & Padel beefs up plans for flagship location near Scottsdale
Assumptions & Risks
Below are selected risk factors associated with an investment in Pickleball at Riverwalk Opportunity Zone Fund, LLC and Pickleball at Riverwalk Fund, LLC. Investments in Caliber private placements can lose entire value, are illiquid and are speculative.
- Investment involves high degree of risk; limited liquidity; no public market; suitable only for sophisticated investors;
- Investment strategy is speculative; returns are not guaranteed and no assurance objectives will be achieved;
- May pay distributions and fund redemptions from borrowings, offering proceeds, or asset sales with no limits on amounts it may pay from such sources;
- May invest in securities that involve a higher degree of risk or have valuations that fluctuate dramatically;
- Access to debt financing may be limited and subject to rate increases, restrictive covenants, or untimely repayment obligations;
- Involves unique risks associated with real estate investment, including competition for tenants, interest rate risk, occupancy issues, insurance risks, inflation risk, among others.;
- Offering is not contingent on a minimum capital raise;
- Multiple conflicts of interest, including compensation arrangements, incentive fee structures, positions held with affiliated entities, co-ownership arrangements, and the purchase of and allocation of investment opportunities.
- For a more complete discussion of risk factors, please refer to the Pickleball at Riverwalk Opportunity Zone Fund PPM.
Disclosures
This website is neither an offer to sell nor an offer to buy securities. An offering is made only by the private placement memorandum (“PPM”) or similar offering document. This material must be read in conjunction with the PPM in order to fully understand all the risks and benefits of the offering. Neither the U.S. Securities and Exchange Commission (“SEC”) nor any state regulator has approved or disapproved this offering. Any representation to the contrary is false and misleading. A copy of the PPM must be made available to you in connection with any offering.
Investment is restricted to accredited investors only, as that term is defined by the SEC.
SEC.gov | Accredited Investors
The above includes statements concerning the Company’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance, or growth and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, readers and the audience can identify these forward-looking statements through the use of words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could,” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update the information contained in any forward-looking statements to reflect developments or circumstances occurring after the statement is made or to reflect the occurrence of unanticipated events. The Company’s expectations, beliefs, and projections are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections will result or be achieved or accomplished. Factors that may cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, factors affecting the Company’s ability to successfully operate and manage its business, including, among others, title disputes, weather conditions, shortages, delays, or unavailability of equipment and services required in real estate development, property management, brokerage and investment and fund operations, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in costs of operations; loss of markets; volatility of real estate prices; imprecision of property valuations; environmental risks; fluctuations in weather patterns; competition; inability to access sufficient capital from internal and external sources; general economic conditions; litigation; changes in regulation and legislation; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks, or pest infestation; increasing costs of insurance, changes in coverage and the ability to obtain insurance; and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission. In addition to financial measures calculated in accordance with generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures are useful because they provide an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of the Company’s ongoing operations, for measuring the Company’s cash flow and liquidity, and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures prepared in accordance with GAAP. This information does not constitute an offering of, nor does it constitute the solicitation of an offer to buy securities of the Issuer. This information is provided solely to introduce the Issuer to the recipient and to determine whether the recipient would like additional information regarding the Issuer and its anticipated plans. Any investment in the Issuer or sale of its securities will only take place pursuant to an appropriate, private placement memorandum and a detailed subscription agreement. This information is confidential and may not be distributed to any other person without prior written consent. An investment is suitable only for persons of substantial net worth that are willing, and have the financial capability, to bear the economic risk of an investment for an indefinite period of time. Past performance is not necessarily indicative of future results and there is no assurance that the offering will achieve its objectives or avoid significant losses. There is no public market for the securities and the Issuer is not required to redeem the units. Investors should consult their own financial professional for advice specific to them. Circumstances may exist where potential conflicts of interest exist between the Investor, Advisor, Sponsor, and affiliates in connection with the management and operation of the offering. This offering may be subject to volatility of public securities that may impact the net asset value (NAV) and total return due to market risk. The use of borrowed funds to leverage investments involves a higher degree of financial risk and may impact performance. Also, the ability to obtain financing or adverse economic/property conditions impacting debt strategies can affect returns. Direct and indirect purchase of real property and commercial real estate involves significant risk, including, market risks, risks related to the sale of land, risks specific to a given property, principal risk and liquidity risk. These Real estate risks included, but are not limited to regulation and zoning, economic conditions, financial resources of tenants, changes in interest rates and availability of mortgage funds, casualty losses, decreased property values, development and construction risks, and acts of God.
Securities offered through Tobin & Company Securities (Member FINRA/SIPC )
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