The location is to be determined

 Overview of 1854 Development Group, LLC

1854 Development Group, LLC is a real estate and cultural enterprise aimed at revitalizing downtown Topeka, Kansas. The proposal, prepared by Amir S. Nezamzadeh on June 22, 2025, seeks $7,500,000 in investment for three interconnected projects at 112 SE 8th Ave: a hospitality and arts venue (1854 Public House & Gallery Hall), a boutique residential complex (1854 Flats), and a local grocery store (Arkwright’s Market & Provisions). The projects leverage historic branding tied to Kansas heritage, emphasize local sourcing, and address community needs like food access in a downtown food desert. The property purchase price is $850,000, with remaining funds allocated roughly evenly across the projects (~$2,216,667 each, with some flexibility).Key highlights include:

• Multi-revenue model: Combines hospitality, residential rentals, and retail for diversified income.
• Community impact: Focuses on cultural events, smart living, and sustainable food access.
• Financial projections: Total startup costs ~$2,865,500; Year 1 composite NOI ~$726,080+; blended 5-year ROI estimated at 15–20%+ annually.

Project Details1854 Public House & Gallery Hall (6,404 sq ft)A hybrid venue blending a restaurant, coffee roastery, bakery, bar, and event space with rotating art exhibitions and live music. Rooted in Kansas history, it targets downtown professionals, tourists, and art enthusiasts.

• Mission: Elevate local cuisine, beverages, music, and art in a restored historic space.
• Objectives: $1M+ annual revenue by Year 3; 50+ events/year; feature 100+ artists by Year 2; break-even by Month 14.
• Revenue Streams: Dining (50%), coffee/tea (15%), bar (10%), bakery (10%), events/tickets (5%), merchandise (5%), art sales (5%). Year 1 projected revenue: $1,007,000.
• Startup Costs: $750,000 (renovations, equipment, inventory, etc.).
• Operating Costs (Year 1): ~$1,074,000 (labor ~$585,000 annually for 14+ staff roles).
• Financials: Year 1 EBITDA -$67,000 (ramp-up); Year 2 $145,000; Year 3–5 NOI $500,000+. ROI: 1.5x–1.75x over 5 years (12–15% annualized).
• SWOT:
  • Strengths: Multi-revenue hybrid; historic location; cultural draw.
  • Weaknesses: High capital; operational complexity.
  • Opportunities: Experiential demand; partnerships.
  • Threats: Economic downturns; competition.
• Operations: Open 7 AM–10 PM (extended Fri/Sat); local sourcing within 100–150 miles.
• Investment: $750,000 for 20% equity (post-money valuation $3.75M).

1854 Flats (9 Units)A smart-home residential redevelopment converting historic space into modern apartments with tech integrations like Crestron systems, aimed at urban professionals, remote workers, downsizing boomers, and university affiliates.

• Scope: 2nd Floor: 6 one-bedroom (650 sq ft), 1 two-bedroom (900 sq ft), 1 fitness room (~500 sq ft). 3rd Floor: 2 two-bedroom units.
• Amenities: In-unit (HVAC, appliances, smart thermostats); community (secured access, rooftop garden, online portal, fitness room, perks at 1854 businesses).
• Location Benefits: Walkable downtown near government, dining, and transit.
• Marketing: Target 25–45-year-olds and boomers; lease terms 12 months; utilities (water/sewer/trash included).
• Pricing: 1BR $1,200/month (x6); 2BR $1,500/month (x3). Annual gross rent $140,400; net revenue $133,380 (5% vacancy).
• Startup Costs: $1,930,500 (construction ~$1,125,000, smart tech $70,000, etc.).
• Operating Expenses (Annual): $54,300 (management, maintenance, etc.).
• Financials: Year 1 NOI $79,080; ROI 4.10%; cap rate 4.10%; payback ~24.4 years (pre-appreciation).
• Staffing: Property manager ($55,000), maintenance tech ($42,000), leasing agent ($30,000), contracted security ($28,000). Monthly labor ~$12,916.
• SWOT:
  • Strengths: Boutique scale; smart features; brand integration.
  • Weaknesses: High capital; historic compliance.
  • Opportunities: Revitalization trends; university ties.
  • Threats: Economic shifts; regulations.
• Exit Strategy: 5-year buyout or 7–10 year sale (projected value $2.9M–$3.2M).

Arkwright’s Market & Provisions (1st Floor, 6,404 sq ft)A curated grocery addressing downtown food access, focusing on local produce, grab-and-go meals, and 1854-branded goods. Integrates with other projects for cross-promotion.

• Mission: Provide sustainable, fresh options in a food desert; source within 100–150 miles.
• Objectives: Community hub with tastings, workshops; high efficiency.
• Revenue Streams: Produce/dairy (34%), grab-and-go (29%), dry goods (23%), coffees/teas (14%). Year 1 revenue $420,000; Year 2 $504,000; Year 3 $519,120.
• Startup Costs: $185,000 (renovations $60,000, inventory $35,000, etc.).
• Operating Expenses (Year 1): $273,000 (salaries $108,000 for 4 staff, inventory $85,000).
• Financials: Year 1 net profit $147,000 (79.5% ROI); Year 2 $176,400 (95.4%); Year 3 $181,692 (98.2%). Cumulative 3-year ROI 273%; payback 1.3 years.
• SWOT:
  • Strengths: Food desert gap; local focus; brand synergy.
  • Weaknesses: Capital needs; seasonality.
  • Opportunities: Expansion (catering, private label); events.
  • Threats: Chain competition; inflation.
• Operations: Open 7 AM–8 PM daily; lean staffing (manager $45,000, associates $31,000–$32,000 each).
• Marketing: Grand opening events; newsletters; social media; loyalty programs.

Overall Financial Highlights and Investor Positioning

• Total NOI Projections: Public House scaling to $500,000+ (Years 3–5); Flats $79,080 (Year 1); Arkwright’s $147,000 (Year 1).
• Blended Returns: 15–20%+ annual over 5 years.
• Investor Benefits: Equity/revenue share; community alignment; exposure to diversified sectors; perks like discounts and event access. Exit via profit-sharing, acquisition, or expansion.