EXECUTIVE SUMMARY

Phillips Development Group (PDG) is providing the following investment proposal, which provides a snapshot of the opportunity for a real estate and an equity interest or convertible debt, with an equity kicker in a unique income producing property. The Mulehouse was founded by Blair and Eric Garner. Blair Garner is a Hall of Fame radio DJ well known throughout the music industry. They developed the idea to create a state of the art, music and event venue which combines the ability to host different types of events from concerts or corporate events to intimate dinners and weddings and stream them live worldwide over HD streaming capabilities. The Mulehouse combines multiple revenue streams at a purchase price of well below appraised value (see CBRE appraisal) for real estate alone of over 10 Million Dollars. It is first and foremost, an entertainment and event venue, hosting some of the most well-known names in the music and entertainment industry, as well as corporate events and high-end weddings; it has become one of the most sought after venues in the Nashville Metropolitan area.

With approximately 55,000 sq. ft under roof, the building was previously a historic church and school, located next door to the James K. Polk home, 11th President of the United States. First Baptist Church was organized in the Maury County Courthouse in 1856 as the Columbia Baptist Church. After meeting in several locations, including a frame church, which was located on the present site in 1876, the present building was erected in 1886 with an addition being added in 1924. First Baptist Church was located at 812 South High St., Columbia, Tennessee (Maury County) approximately 45 miles south of Nashville and 10 miles south of Williamson County, Tennessee, one of the wealthiest counties in the country. Maury County is one of the fastest growing counties in the state. After a Five Million Dollar renovation overseen by the current owners, The Mulehouse opened in 2021 with the previous sanctuary used as the concert and event venue. Think of it as a high-end Ryman with all the latest technology. It has state of the art AV technology including 8K broadcast capabilities for broadcast and live streaming. Reese Witherspoon, CeCe Winans, Miranda Lambert, Amy Grant and others have filmed or recorded in the facility. The facility has a current capacity of approximately 600 seats for concerts or, 250 plus seated for weddings and private events, along with a separate 3000 sq. ft. reception hall if necessary for simultaneous events. There is an operating bar providing liquor service during events which will be open full-time post investment. The 3000 sq. ft reception or private event space off the bar, allows the venue to host private events in one area, while also showcasing a concert in the main auditorium.

Currently, the school building is under analysis by our hotel partner and their architects to repurpose the school into a boutique hotel. Two national brands Marriott and Hilton have expressed interest and are working with our hotel partner to define requirements for each. The city has also submitted a request for proposal (RFP) for a hotel to be developed in downtown Columbia. There is currently only one other available parcel in the downtown Columbia area large enough to support a hotel development and it is in flood plain and would require structured parking with hotel above at tremendous cost. The existing building with its red iron construction is under structural review to add two floors above the building resulting in additional rooms and a rooftop bar and pool. This would provide approximately 70-80 rooms on site. The hotel partner has developed a pro forma which will allow a joint venture between the hotel and other businesses. The objective would be to purchase the property free and clear and utilize the building to collateralize the hotel financing package which the hotel partner would develop. They would also contribute a down payment as part of the partnership. This is all part of the internal negotiation.

Columbia is home to Columbia State, and its ten miles south of GM and their new joint-venture with LG, a multi-billion dollar, 2.8 million square foot battery plant to supply EV’s. The facility will bring 1300 additional jobs to the area and is set to open later this year. One of the largest private label distilleries in the country resides in Columbia, Tennessee Distilling, which is a distillery for worldwide brands. Many other national and multi-national brands have moved to the area, bringing high paying jobs and rooftops. There are currently over 14,000 homes approved for the Columbia area, not including Spring Hill. Finally, The Mulehouse sits less than 10 miles from Williamson County, the wealthiest demographic in Tennessee and in the top 10 in the nation.

Currently, food and beverage service is limited, since there isn’t food service capability and no kitchen. As part of the new investment, we would first transition to a catering kitchen to supply food to all public and private events and phase-two would include a full-service restaurant. The F & B revenue is substantial for concerts but, more so for private events and weddings where the client pays almost 100% of the attributable expenses. They have recently lost three six-figure weddings due to the lack of F & B and a hotel on site. The wedding and private event business adds approximately 1.1 million to top line revenues at significant margin. Currently, the Mulehouse has only hosted 12 weddings in the last year whereas a local wedding venue, not nearly as nice or as close to town has hosted 57 weddings at $7500.00 plus. The Mulehouse owns all its own event rental items, including tables and chairs, servings etc. to host and capture full-service weddings. With proper marketing and a catering kitchen it could be a premier wedding destination within 50 miles or more. The Quarry, a wedding venue and larger concert venue with a nice but more rustic feel, charges just under sixty-thousand dollars per wedding for venue and food with no beverage service included for 125 people and one hundred and ninety dollars per person above 125. The Mulehouse is fully capable of capturing 50 weddings per year with a catering kitchen bringing all Food and Beverage (F & B). If the Mulehouse is at a 50% run rate of the Quarry which is extremely low, this translates to 1.4 Million top line revenue at over 80% margin since the family pays all expenses for a wedding including labor and the only direct expense is F & B COGS.

EXECUTIVE SUMMARY

Phillips Development Group (PDG) is providing the following investment proposal, which provides a snapshot of the opportunity for a real estate and an equity interest or convertible debt, with an equity kicker in a unique income producing property. The Mulehouse was founded by Blair and Eric Garner. Blair Garner is a Hall of Fame radio DJ well known throughout the music industry. They developed the idea to create a state of the art, music and event venue which combines the ability to host different types of events from concerts or corporate events to intimate dinners and weddings and stream them live worldwide over HD streaming capabilities. The Mulehouse combines multiple revenue streams at a purchase price of well below appraised value (see CBRE appraisal) for real estate alone of over 10 Million Dollars. It is first and foremost, an entertainment and event venue, hosting some of the most well-known names in the music and entertainment industry, as well as well as corporate events and high-end weddings; it has become one of the most sought after venues in the Nashville Metropolitan area.

With approximately 55,000 sq. ft under roof, the building was previously a historic church and school, located next door to the James K. Polk home, 11th President of the United States. First Baptist Church was organized in the Maury County Courthouse in 1856 as the Columbia Baptist Church. After meeting in several locations, including a frame church, which was located on the present site in 1876, the present building was erected in 1886 with an addition being added in 1924. First Baptist Church is located at: 812 South High St., Columbia, Tennessee (Maury County) approximately 45 miles south of Nashville and 10 miles south of Williamson County, Tennessee, one of the wealthiest counties in the country. Maury Countyis one of the fastest growing counties in the state. After a Five Million Dollar renovation overseen by the current owners, The Mulehouse opened in 2021 with the previous sanctuary used as the concert and event venue. Think of it as a high-end Ryman with all the latest technology. It has state of the art AV technology including 8K broadcast capabilities for broadcast and live streaming. Reese Witherspoon, CeCe Winans, Miranda Lambert, Amy Grant and others have filmed or recorded in the facility. The facility has a current capacity of approximately 600 seats for concerts or, 250 plus seated for weddings and private events, along with a separate 3000 sq. ft. reception hall if necessary for simultaneous events. There is an operating bar providing liquor service during events which will be open full-time post investment. The 3000 sq. ft reception or private event space off the bar, allows the venue to host private events in one area, while also showcasing a concert in the main auditorium.

Currently, the school building is under analysis by our hotel partner and their architects to repurpose the school into a boutique hotel. Two national brands Marriott and Hilton have expressed interest and are working with our hotel partner to define requirements for each. The city has also submitted a request for proposal (RFP) for a hotel to be developed in downtown Columbia. There is currently only one other available parcel in the downtown Columbia area large enough to support a hotel development and it is in flood plain and would require structured parking with hotel above at tremendous cost. The existing building with its red iron construction is under structural review to add two floors above the building resulting in additional rooms and a rooftop bar and pool. This would provide approximately 70-80 rooms on site. The hotel partner has developed a pro forma which will allow a joint venture between the hotel and other businesses. The objective would be to purchase the property free and clear and utilize the building to collateralize the hotel financing package which the hotel partner would develop. They would also contribute a down payment as part of the partnership. This is all part of the internal negotiation.

Columbia is home to Columbia State, and its ten miles south of GM and their new joint-venture with LG, a multi-billion dollar, 2.8 million square foot battery plant to supply EV’s. The facility will bring 1300 additional jobs to the area and is set to open later this year. One of the largest private label distilleries in the country resides in Columbia, Tennessee Distilling, which is a distillery for worldwide brands. Many other national and multi-national brands have moved to the area, bringing high paying jobs and rooftops. There are currently over 14,000 homes approved for the Columbia area, not including Spring Hill. Finally, The Mulehouse sits less than 10 miles from Williamson County, the wealthiest demographic in Tennessee and in the top 10 in the nation.

Currently, food and beverage service is limited, since there isn’t food service capability and no kitchen. As part of the new investment, we would first transition to a catering kitchen to supply food to all public and private events and phase-two would include a full-service restaurant. The F & B revenue is substantial for concerts but, more so for private events and weddings where the client pays almost 100% of the attributable expenses. They have recently lost three six-figure weddings due to the lack of F & B and a hotel on site. The wedding and private event business adds approximately 1.1 million to top line revenues at significant margin. Currently, the Mulehouse has only hosted 12 weddings in the last year whereas a local wedding venue, not nearly as nice or as close to town has hosted 57 weddings at $7500.00 plus. The Mulehouse owns all its own event rental items, including tables and chairs, servings etc. to host and capture full-service weddings. With proper marketing and a catering kitchen it could be a premier wedding destination within 50 miles or more. The Quarry, a wedding venue and larger concert venue with a nice but more rustic feel, charges just under sixty-thousand dollars per wedding for venue and food with no beverage service included for 125 people and one hundred and ninety dollars per person above 125. The Mulehouse is fully capable of capturing 50 weddings per year with a catering kitchen bringing all Food and Beverage (F & B). If the Mulehouse is at a 50% run rate of the Quarry which is extremely low, this translates to 1.4 Million top line revenue at over 80% margin since the family pays all expenses for a wedding including labor and the only direct expense is F & B COGS.

WHY COLUMBIA?