Live Oak Square — Partner Brief

Returns

Underwritten at land basis

15.8%

7-yr Levered IRR

2.03×

Equity Multiple

$3.00M

Profit to Equity

7.4%

Stabilized Yield on Cost

$6.72M

Total Development Cost

$415 / building SF

$497K

Stabilized NOI

Retail $367K · Resi $130K

$7.70M

Stabilized Value

6.5% blended cap

$1.19M

Refi Cash-Out

65% LTV at stabilization

+$971K Value created on day one. Building at a 7.4% yield against a 6.5% exit cap is a ~90 bps development spread — the deal makes its own profit before any rent growth or cap compression.

Land enters at its true acquisition cost; the sponsors' embedded gain is held as a priority claim, not a day-one expense — so the deal underwrites at its real development economics rather than burying the return.

The Site

Two buildings around a shaded courtyard

Site plan · Morrissey Design Studio

The plan organizes a smaller freestanding F&B pavilion and a larger inline retail building around a shaded courtyard, with the specimen live oak as the centerpiece and the dining spilling out beneath its canopy.

Building 1 — freestanding F&B pavilion anchoring the courtyard at the oak
Building 2 — larger inline retail footprint fronting Tubb Street
Surface parking wrapped to the perimeter, shaded by a mature laurel oak and working around the specimen oak's protected root zone
Walk-up residential above, set back so the second floor doesn't cover the full footprint
Golf-cart accessible, on the main street between Hwy 50 and Oakland Avenue

Context · Tubb Street, the connector between Hwy 50 and Oakland Avenue

The core of Oakland. The site sits on the main street linking Highway 50 to Oakland Avenue — the arterial bridging the historic town with its new growth. A spur off the West Orange Trail brings it foot and bike traffic on the old Orange Belt Railroad bed that first built Oakland, and the whole district is golf-cart accessible — positioning the courtyard to become the town's everyday gathering place, not a destination you drive to.

Street Character

Heritage main-street elevation

Two-story brick-and-frame storefronts with covered porches and shopfront glazing — designed to read as a piece of historic downtown rather than a single big-box building.

Tubb Street elevation concept · Morrissey Design Studio

Capital

Sources & structure

Construction Loan · 57% LTC

$3.83M

Mighty Equities · land + cash

$2.47M

Ryan Hinricher · sponsor

$0.46M

Construction loan	$3,834,709
Mighty Equities — capital partner	$2,474,536
Land (2018 + 2021, at basis)	$475,023
Development cash	$1,999,513
Ryan Hinricher — sponsor (~15.6%)	$457,738
Land earnest + soft costs	$257,738
Development co-invest	$200,000
Total capitalization	$6,766,983

Tier 1

Return of capital

Each partner's invested capital returned first, pro-rata to contributions.

Tier 2

Land step-up · 50/50

Banked next — the ~$985K land gain split evenly between Ryan & Mighty for carrying the land since 2018.

Tier 3

8% preferred

On the development cash only, from permits onward; the land earns its return through the step-up.

Tier 4

Residual upside

20% promote to the sponsor, the remainder shared by equity ownership.

Partner returns (7-yr hold)	Real estate	Restaurant	Combined IRR
Mighty Equities	12.6% · 1.80×	40% of F&B	17.9%
Ryan Hinricher	22.8% · 3.14×	20% of F&B	28.9%

The land position. Bought for $515K across 2018 and 2021, the land now appraises near $1.5M — a ~$985K embedded gain to Ryan & Mighty. The deal is deliberately underwritten at the $515K cost, not the mark. The land's reward for being carried since 2018 is that gain, banked ahead of the preferred return; the 8% pref then accrues only on the actual development cash. The real estate is a two-party deal (Mighty + Ryan); the restaurant is a separate business that lifts each partner's combined return.

Rent Roll

9,000 SF · five units · two buildings

We anchor only ~21% of the income through our own F&B concept; the rest is arm's-length, third-party rent — a diversified roll a lender and buyer credit fully.

Tenant / Use	Building	SF	$/SF NNN	Annual Rent
F&B Concept by Bar Snack Anchor	Bldg 1 · freestanding	2,000	$42	$84,000
Café / small shop	Bldg 1 · freestanding	1,000	$48	$48,000
Restaurant	Bldg 2 · inline	2,500	$44	$110,000
Retail / service	Bldg 2 · inline	2,000	$44	$88,000
Retail / service	Bldg 2 · inline	1,500	$46	$69,000
Total		9,000	$44.33	$399,000

Program Decision

Build the second floor?

At land basis the retail core is strong enough that the residential floor lowers the headline rate even as it adds absolute profit and placemaking. A genuine trade-off — more total value versus a higher return — that turns on the residential entitlement path.

More total value

Mixed-Use 2-Story

Stabilized NOI$497K

Total cost$6.72M

7-yr levered IRR15.8%

Equity multiple2.03×

Profit to equity$3.00M

Higher return

Retail-Only 1-Story

Stabilized NOI$367K

Total cost$4.63M

7-yr levered IRR17.8%

Equity multiple2.17×

Profit to equity$2.35M

Assumptions

Key inputs

Blended retail rent (NNN)$44 / SF
Residential rent$2,900 / mo
Land (contributed at basis)$475K
Architecture — Morrissey, fixed$150K
Refinance LTV / perm rate65% · 6.5%
Exit caps (retail / resi)7.0% · 6.0%
NOI growth / hold3.0% · 7 yrs

Watch Items

Honest risks

01Entitlement. Residential over retail needs a path around the C1 restriction; retail-only is the clean fallback that avoids a comp-plan amendment.

02Rent in Oakland. $44 blended underwrites above the ~$40 citywide average; the destination F&B concept must materialize to clear it on Tubb rather than Plant Street.

03Site & the oak. Parking demand and the specimen oak's protected root zone are the same conversation — both constrain footprint and stalls.

04Land step-up sequencing. The sponsors' ~$1M gain must stay a priority / back-end claim, not a day-one mark, to preserve the capital partner's return.