PILOT APPLICATION

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 HISTORIC PHOTOGR APHS

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APPLICANT BACKGROUND
Gabriel Velasquez, Owner Representative
November 6 Investments
1068 Cresthaven Rd, Suite 300,
Memphis, TN 38119
Phone- 901-683-0024
Fax- 901-683-0028
November 6 Investments, A DarSalud Group Company, is a group of
Venezuelan-American local businessmen who have dedicated their careers to
improving the health of Memphians and Venezuelans. Gabe and his family
relocated to Memphis in 1997 in order for a family member, and now cancer
survivor, to be treated at St. Jude Children’s Research hospital. They have
since been committed to health care reform and improving access for
low-income residents to affordable services and medication.
They have grown to managing a local network of pharmacies and medical
clinics, as well as one of the largest pharmacy networks in Venezuela.
Expanding on their mission, they are seeking to apply their Latin American and
European development and real estate experience to further contribute to the
growing health and wellness landscape in Memphis.
PROJECT DESCRIPTION
This application is submitted for November 6 Improvements, LLC at 64 South
Main Street, Memphis, TN 38103, by Gabriel Velasquez for improvements made
to this property.
Gabriel launched the project in late 2017 with the vision to redevelop it into a
vibrant health hub that will attract health-conscious consumers, startups, local
businesses and foodies to the heart of Memphis. The goal is to create an
energetic environment for Memphians and visitors to eat, shop, work, and
workout, contributing to the physical and economic health of the community.
6 4 S O U T H
This 11,145 sq ft building is located at the corner of Union and South Main
Street. It was constructed in 1942 and has served multiple purposes, including
one of Memphis’ first pharmaceutical distribution centers. It currently sits vacant
and has contributed to the blight in the historic downtown district. The property
consists of a basement and two above ground levels, 3,715 sq ft each, and will
be re-developed into a mix-use property housing a different concept on each
level.
November 6 Investments is fielding private investors for a long-term lease to
convert the roof-top shell space into exclusive chef’s table experience and lounge,
which will be finished as a separate project. In the meantime, the roof top is
slated to serve as an event space.
The redeveloped building will include a boutique fitness and wellness center, a
healthy food concept, pop-up shops, co-working and semi-permanent office
space. The building will represent an intersection of the new energy in Memphis
and Grind City history by undergoing substantial renovations while preserving as
much of the 1940s architecture as possible.The lowest level of the building will be
dedicated to fitness, nutrition, and performance. Reflecting November 6 Investments’
holistic approach to preventative medicine, they plan on implementing a boutique
fitness concept that offers the active Downtown Memphis community a broad
spectrum of services. Members will have access to high quality gym equipment,
diverse group fitness classes, personal trainers, sports nutritionists, exercise
physiologists, certified dietitians, cryotherapy and massage services, among other
offerings. The spotlight will be on luxury, tastefulness, design, functionality and
comfort in the facility and member locker rooms. The goal is to create a premium
experience for active professionals and downtown residents.
The healthy food concept will be another driver of foot traffic on the main
street-level floor. With convenience in mind, it will offer meal prep services,
grab-and-go options, as well as made-to-order meals for breakfast, lunch and
dinner, all with strong emphasis on sourcing local ingredients and offering quick
service. This will appeal to the growing population of health-conscious consumers
that currently have few healthy food options downtown. Soft seating and tables
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will be available throughout the first floor and on the patio overlooking South
Main Street.
The main floor will also have three dedicated pop-up shop spaces that will
feature local retailers and artists on a rotating basis. In efforts to further
incubate the business community, a 1600 sq ft mezzanine will be constructed
to provide co-working space for startups and the mobile workforce. It will
include standard office amenities such as high-speed internet, conference and
meeting rooms, as well as general office and printing conveniences.
The floor above is slated to be semi-permanent shared office space for
micro-businesses, entrepreneurs, and small non-profits needing a flexible work
area to grow their enterprises. Professionals can rent small, medium, or large
customizable offices, with various short-term or long-term leases. Through
spacious, elegant, and broad functionality, the offices and conference rooms
will foster creativity, productivity, and growth in, and among, the tenants.
Each floor of 64 S. Main Street will be home to a unique, yet synergistic,
concept that focuses on improving the vibrancy and quality of life for tenants,
members and customers. November 6 Investments strongly believe that fitness,
nutrition, collaborative work environments, and a sense of community are all
necessary pieces to create a thriving downtown. The space welcomes all and is
a space for those who share a passion for personal and professional growth, as
well as those who are seeking active and deliberate ways to contribute to Memphis.
Although the building will be owned and developed by November 6 Investments,
each tenant will be an independent business entity. November 6 Investments will
ensure that the missions of each tenant will contribute to the overall mission
and brand of 64. South Main. The goal is to create a thriving ecosystem where
tenants promote each other and leverage each other's resources.
6 4 S O U T H
While the building will attract a broader spectrum of customers, a significant
amount of marketing will target fitness enthusiasts and health-conscious
consumers to the boutique fitness studio, healthy food concept and co-working
space for those who seek these amenities. November 6 Investments will focus on
attracting the entrepreneurial and arts communities to utilize the co-working
space, as well as established companies who can offer employees remote-work
arrangements through the shared space. It will also market the second floor to
this audience, as well as to startups and established businesses who are seeking
semi-permanent office space but need flexible leases and customizable office
layouts. The second floor office space is expected to be leased within 6-9 months
of construction completion.
The small amount of retail space is being marketed through proactive networking,
with already several promising tenants attracted by the building’s prominence
and mix of future uses. Two of the three spaces already have prospective tenants,
the first of which is a micro grocer selling local and seasonal meat and produce
and the second is a locally owned supplement shop. The third will be finalized prior
to construction completion.
Since 64 S. Main will be multi-use with different target markets for each business,
each concept’s marketing strategies will be reflective of the particular business
model and needs. Marketing strategies will include digital, print, word-of-mouth,
and social media marketing, among other initiatives and events.
Investments will be made in restoring the facade of the building to highlight its
historic character, improve curb appeal, and drive traffic into the building. The
facade is in good condition and will not require masonry or stone
repair. It will receive a thorough cleaning, granite polish and finish treatment.
The goal is to preserve as much of the historical architecture as possible.
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 EXISTING

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 EXISTING

MAIN FAC ADE

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 PR OPOSED
RE STO R ATIO N W O RK TO Q UALIF Y F OR THE HISTOR IC R EHA B IL ITATION TAX CR ED IT

CLEAN FAC ADE WALL PANELS

RESTORE STEEL WINDOWS TO OPER ABLE CONDITION REPAINT ALL STEEL WINDOW FR AMES AS NEEDED
AS NEEDED

REPOINT ALL GR ANITE VENEER JOINTS

REMOVE REMOVE (SIGNAGE TO BE SUBMIT TED FOR RE VIE W AT LATER DATE)

REPAIR DECOR ATIVE ME TAL TRIM

DOOR HEADER TO ALIGN WITH

EXISTING STOREFR ONT WINDOWS

NE W GLASS DOOR TO MATCH ADJACENT STOREFR ONT NE W STOREFR ONT DOORS

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 EXISTING FAC ADE PR OPOSED WORK

RESTORED FAC ADE/ ADJACENC Y HIGHT RELATIONSHIP

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 PROPOSED BASEMENT

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 PROPOSED BASEMENT

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 PROPOSED FIRST FLOOR

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 PROPOSED FIRST FLOOR

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 PROPOSED MEZZANINE

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 PROPOSED MEZZANINE

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 PROPOSED SECOND FLOOR

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 PROPOSED SECOND FLOOR

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 PROPOSED THIRD FLOOR/ROOFTOP

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 PROPOSED THIRD FLOOR/ROOFTOP

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 PROPOSED THIRD FLOOR/ROOFTOP

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EAST STREE T SEC TION/ SIGHTLINE OF PR OPOSED THIRD FLOOR

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SITE CONTROL

November 6 Investments, LLC has an option to purchase 64. South Main from
Dr. Claudia Neira, current owner, contingent upon the approval of
development grants.

Option to buy Representative:

Gabriel Velasquez, Owner Representative
November 6 Investments
1068 Cresthaven Rd, Suite 300,
Memphis, TN 38119
Phone- 901-683-0024
Fax- 901-683-0028

FINANCIAL ITEMS
Financial information provided upon request.

No previous attempt has been made to develop the building, only minor
investments in clearing the building of legacy refuse.

Orion Federal Credit Union is the proposed lender to finance the project
(Proposal letter attached). Historic Tax Credits are being pursued.

Adam Thornton
Commercial Mortgage Loan Originator
Orion Federal Credit Union
7845 Highway 64, Memphis, TN 38133
901-266-2751

2,000,000 loan
6.375%
5-Year term
30-Year amortization

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6 4 S O U T H M A I N S T R E E T NOVEMBER 6 INVESTMENTS 24
GENERAL CONTRACTOR ESTIMATES

DIVISION 1: GENERAL REQUIREMENTS $ 59,000.00

DIVISION 2: SITE WORK $ 15,000.00
DIVISION 3: CONCRETE $ 5,000.00
DIVISION 5: METAL $ 170,000.00
DIVISION 6: WOOD & PLASTICS $ 130,000.00
DIVISION 7: THERMAL & MOISTURE PROTECTION $ 37,000.00
DIVISION 8: DOORS & FRAMES $ 139,027.00
DIVISION 9: FINISHES $ 125,000.00
DIVISION 10: SPECIALITIES $ 29,000.00
DIVISION 14: CONVEYING SYSTEMS $ 95,000.00
DIVISION 15: MECHANICAL & PLUMBING $ 367,500.00
DIVISION 16: ELECTRICAL $ 202,410.00

GROSS TOTAL $ 1,373,937.00

Equipment Cost 0.00%
Labor Burden 18.00% $ 7,200.00 PILOT is needed because
Insurance 0.25% $ 3,435.00 • The development is not financially viable or justifiable as a reasonable investment
Overhead 7.00% $ 96,176.00 without a PILOT.
Profit 5.00% $ 68,697.00 • Without a PILOT, debt service coverage is less than 1.2 and therefore project
financing is not attainable.
PRE BOND NET PROJECT TOTAL $ 1,549,445.00 • Without a PILOT, return on investment is less than 6% and therefore developers
Contingency 5.00% $ 77,472.00 would not pursue the development. The development project has methodically
optimized value of development features and designs, minimized development cost,
NET PROJECT TOTAL $ 1,626,917.00 maximized projected attainable revenue, and minimized projected operating expense.

*Based on quote provided ViktorHall Construction, LLC.

The final General Contractor has not been selected. November 6 Investments will
be advertising the project through the Memphis Area Minority contractors
Association and the open market to select contractors.

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PROJECT TIMELINE ITEMS FOR LEASE PREPARATION

Architecture and Design will begin to be paid in September. Loan Closing will Lessee from CCRFC:
be in November 2018. Renovations will begin December 2018 and are
projected to be completed by July 2019. November 6 Investment, LLC
Gabriel Velasquez, Owner Representative
1068 Cresthaven Rd, STE 300
PROJECT TEAM Memphis, TN 38119
901-428-3132
Owner Representative
Gabriel Velasquez State the tax parcel number:002056 00009
5272 Winestone Cove
DISCLOSURES
Memphis, TN 38120
The applicant, guarantor, or any other principals involved with the project have
Project Consultant never been charged or convicted of any felony or currently under indictment. The
Bill Ganus applicant has never filed for bankruptcy.
1955 Young Ave
Memphis, TN 38104 APPLICANT AFFIRMATION
Architect (Prelims) This application is made in order to induce the Memphis Center City
Tony Peliciatti Development Corporation (CCDC) to grant financial incentives to the applicant.
LRK Architects The applicant hereby represents that all statements contained herein are true and
Toyota Plaza STE 500, Memphis, TN 38103 correct. All information materially significant to the CCDC in its consideration of
the application is included. The applicant expressly consents to the CCDC’s
Architect (Project) investigation of its credit in connection with this application. The applicant
TBD acknowledges that it has reviewed the descriptions of the CCDC financial
program for which it is applying and agrees to comply with those policies. The
General Contractor applicant shall also be required to show a good faith effort with regard to the
TBD employment of minority contractors. The applicant specifically agrees to pay all
reasonable costs, fees, and expenses incurred by the CCDC whether or not the
incentive is granted or project completed.
Design/Marketing/PR
Cecilia Walker
Walker & Associates ___________________________________________
5100 Poplar Ave, Suite 2812 Gabriel Velasquez
Memphis, TN 38137

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EQUAL BUSINESS OPPORTUNITY (EBO) PROGRAM

Being a minority owned business, November 6 Investments advocates for representing

diversity throughout our businesses and projects. The 64 S. Main redevelopment
project will make a best-faith effort, including affirmative steps to include at least 25%
participation, of total contract dollars, by Minority/Women Business Enterprises (M/WBEs).

November 6 Investments is optimistic about exceeding this goal and has taken
following steps to date:

• Met with DMC Staff

• Discussed M/MBE General Contractors
• Utilizing City’s M/WBE List for GCs and Subs
• Working with MAMCA
• Availing Opportunities
• Documenting efforts

An M/WBE utilization plan will be provided when construction bidding is

complete and subcontracts awarded.

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