Total Square Feet7,167
Office Occupancy70%
Desk Occupancy40%
Last 12 Months' Income$190,000
Last 12 Months' Expenses$142,000
Annual Net Profit$48,000
Included Assets$75,000
Growth TrajectoryGrowing
Years in Operation1-2 years
Daily Operations Staffed
NeighborhoodDowntown
Remaining Time on LeaseLease 5+ years

Business & Space Overview

A turn-key coworking and childcare space located in downtown Columbus, OH. The space’s revenue model boasts three unique and mutually exclusive revenue streams: Childcare, Coworking, and Virtual Memberships. Additionally, we host third party meeting room bookings and event bookings.

For purchasers not interested in maintaining onsite childcare, the space has capacity for 10+ additional private offices (renderings for current layout and 3 potential layouts with additional private offices available upon request). Schematic designs and build out estimates can be provided and the existing lighting fixtures in that area can be used in the potential offices.

After 20-months in operation, this space has an average member LTV of $5,000 and an average length of membership of 9+ months. During the pandemic, we experienced 81% revenue growth and a 93% retention rate.

The space itself is located on Broad St.,the main downtown throughway in Columbus. It was built brand-new in 2019 and features significant natural light, high ceilings, two private outdoor spaces with garage door courtyard access, two meeting rooms, nine private offices, two phone booths, six bathrooms, bike racks, covered on-site parking, automated and energy efficient lights and HVAC, and a keyless door access system. We also have an onsite hydroponic garden that produces fresh veggies and is harvested on a bi-weekly cadence. Additionally, we feature rotating local art on a quarterly basis and typically host artist events.

Q Location

This space is based in the Franklinton neighborhood and housed within the mixed-used development, called Gravity, which features a gym, cafe, pizza joint, brewery, multiple court-yards, event space, dog park, outdoor movie theater, and a food truck alley. Additionally, it is walkable to a waterfront greenway and unique bars, restaurants, art galleries, cafes, apartments and more.

Franklinton is currently seeing over $1BN in new development within a 5-min walk from our front doors. Development includes the new Columbus Crew MLS soccer stadium, a high-rise hotel, mixed-use residential developments boasting over 1000 units, and accompanying restaurants, boutiques, a medical center and more.

Q Daily Operations

The space is fully managed by a single community manager and a handful of childcare providers. The community manager is responsible for managing leads, processing mail, giving tours, social media posting, restocking inventory, daily spot cleaning, managing childcare providers and member onboarding and management.

All of this takes approximately 25-hours per week. The remainder of time is focused on community development, projects to maintain efficiency and processes, event planning, and market outreach.

Q COVID's Effect

We opened in November 2019 right before the holidays, a very slow time for coworking growth. In the first 7 weeks of January 2020 however, we doubled our pre-sale revenues and increased our lead pipeline by nearly 500%.

In late February, our leads began to hold off on joining as the new and unknown pandemic was looming. We shut our doors on March 16th, 10-weeks after really entering the market.

After an initial 20% drop in revenues in April, we began to grow in all areas of the business. Starting in May of 2020 we had positive month over month growth every month except December 2020, which was due to childcare being closed for 2-weeks for the holidays.

Q Financials

Notwithstanding the direct effect COVID has had on our business and the coworking industry at large, our current monthly revenues are $20,000/mo, representing an 81% growth in revenues during the pandemic. We have had positive month-over-month growth every month we have been open, except for April, 2020 - due to initial COVID closure - and December 2020 - due to childcare being closed for 2 weeks for the holidays. Moreover, we have seen these growth numbers while 20% of cowork spaces in Columbus have been forced to close during this same time period.

Furthermore, the space is set-up to operate extremely lean. Our established systems and processes enable us to operate efficiently and effectively with only one community manager and a handful of hourly paid childcare providers.

Q Potential for Growth

Our model supports monthly revenues of $55,000+, representing profit margins over 30%.

We have not only maintained, but also grown our dedicated base of members during a pandemic. We are recognized as a leader in the Columbus small business community. As such, when the market re-opens we expect continued and substantial growth on top of a well-built foundation.

For purchasers not interested in maintaining onsite childcare, the space has capacity for 10+ additional private offices (renderings for current layout and 3 potential layouts with additional private offices available upon request). Schematic designs and buildout estimates can be provided and the existing lighting fixtures in that area can be used in the potential offices.

Q About the Seller/Why We Are Selling

We were remote workers that used coworking spaces for years. We saw the value and need for quality flex work arrangements for not only fellow remote workers, but also parents, entrepreneurs, and small businesses. So we set out to support them through a unique combination of coworking, childcare and other lifestyle services. From the ground up, we have successfully built a space that brings diverse people together and gives them the tools needed to connect, create, and thrive. Through the combination of coworking, childcare, and community, we have built a family-friendly, yet professional workspace that is viable for everyone.

However, the pandemic has taken a toll on the us and while we have built a wonderful space and community, we are ready to pass it along to a team that has the energy and passion to see it grow to its fullest potential.

Notes from DenSwap: "We love the childcare concept, but converting the extra childcare space into more monetizable offices will make a cleaner and more profitable business model for a buyer."

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