Barbary Coast Merchants

Looking to expand and grow a downtown San Francisco social club

Downtown San Francisco has struggled since the pandemic. There is no denying that. But we are starting to see signs of a rebirth. Real estate investors and tech companies are snapping up office space at discounts and activating them in new ways. The AI revolution is anchoring itself to downtown San Francisco. Visits to office buildings in downtown San Francisco have seen a 38.3% year-over-year increase in 2023. And after 3 years of no activity, downtown San Francisco is in the middle of a bar boom.

Just across the street from us, the iconic Transamerica Pyramid is undergoing a complete $400 million makeover and is slated to re-open in 2024. They obviously have faith in the future of downtown and have invested a large sum of money to prove it.

Our investment offers an equivalent opportunity only for far less capital. Investors always claim that they want to buy low or “Be greedy when others are fearful,” as Warren Buffet says. Another one of his rules for investing is “Never invest in a business you cannot understand.”

Well, you can check both of those boxes here. This is an amazing opportunity to get into the (literal) ground floor of a turnaround story in both a well-established social club and a world-class city that is clawing its way back from the ravages of a pandemic.

It is rare for investors to have such a pathway into a turnaround story for an iconic city and an iconic business simultaneously. But here we are. Below are three bullet points for the turnaround for Wingtip. We go into much deeper detail in the attached Pitch Deck.

1) A New Identity – going away from a perceived men’s club to a more modern day, balanced membership that caters to professionals living and working in San Francisco.

2) A New Ground Floor Space – The historic (1908) Bank of Italy branch on the ground floor will be transformed into a first-class meeting space by day and lounge by night (renderings in pitch deck)

3) A New Membership Tier – The new ground floor space gives the club the opportunity to recruit its next generation of members and add a new layer of recurring revenue to is existing base..

Is AI going to restore downtown San Francisco to its former glory?

The honest answer is no. But, it is going to establish a solid anchor in which to build upon. Let’s look at some recent developments regarding leased office space in downtown San Francisco:

Anthropic is in talks to take 230,000 square feet at 500 Howard Street
Open AI is in talks to take 287,000 square feet at 1725 Third St.
Hive AI has leased 60,000 square feet on 100 First St.
Hayden AI leased 41,000 square feet at 460 Byrant St.
Adept AI leased 35,000 square feet at 350 Rhode Island St.
Hex leased 8,500 square feet at 330 Jackson St.

*Real estate firm JLL forecasts demand for office space in San Francisco to grow to 14 million square feet by 2030.

“It’s more along the lines of when the smartphone became more mainstream in the late 2000s to 2010s, which created business opportunities for all these technology companies that we didn't even know could exist at the time, what’s happening now could be the catalyst for a much larger growth story a couple of years in the future.” - Colin Yasukochi, executive director CBRE Tech Insights Center

In addition to AI, financial services firms have, and continue, to insist workers now report to the office 4-5 days per week.

The building blocks of a resurgence for downtown are in place. In early 2024, the refurbished iconic Transamerica building will open its doors and help further anchor return-to-the office stability.

With an investment in Wingtip, you have a unique opportunity to be a part-owner of the “picks and shovels” portion of the new downtown San Francisco. And with city elections less than a year away, there is hope that potential new leadership will only help strengthen the resolve of this new positive trend.

SOURCE: https://fortune.com/2023/10/28/openai-seals-san-francisco-office-space-deal-after-ceo-sam-altman-calls-remote-work-mistake/

Ready to Ask For Funding for your company?

Post a Funding Request

Barbary Coast Merchants is no longer seeking funding.

Barbary Coast Merchants

Key Facts