Question for a Class - Creative “destination developments” for college town game days?
Hey all,

Little bit of an odd question - Working on a real estate investment project for a class where we’re in the shoes of the sponsor pitching a development project to a potential preferred equity partner.

We’ve decided that with our property, it would be best suited as a “destination spot” restaurant/bar for game days as it’s close to the stadium &amp; surrounding bars. 

Having a little trouble finding some examples to help illustrate our vision. 

Thinking 3 stories, restaurant, bar, possible games, etc.

Are there any recently-developed college spots you’ve visited that have caught your eye or draw a lot of people in for game days?
[{"id": "i1qby6o", "text": "Look at Southeastern in Auburn, AL. Only 2 stories though.\n\nEdit: Website looks like shit, but it\u2019s a restaurant/bar so I guess that makes sense", "replies": [{"id": "i1ql1kk", "text": "Thanks for the rec man, exact vibe I was looking for", "replies": [], "depth": 2}], "depth": 1}, {"id": "i1qpgfk", "text": "Take a look around Oxford Mississippi", "replies": [{"id": "i1qwb2f", "text": "This. 100% agree.\n\nBut, you should probably note that game day isn\u2019t enough for a successful restaurant/bar. A resturant\u2019s kitchen/bar can only push so much at any given time, so if their normal capacity is 200 people, having 400 show up on a game day doesn\u2019t necessarily mean twice the normal sales, because the kitchen and/or bar may bottleneck at 225.  A successful resturant/bar needs patrons 7/365.\n\nSource: COO of private investment CRE with close to 100 resturant tenants, including owning the \u201ccollege strip\u201d in our market.", "replies": [{"id": "i1sgzr1", "text": "Great point! I don\u2019t think we\u2019re going to have to project the actual restaurant/bar sales for this place but need to think about the capacity and year-round use/demand to come up with a solid rent figure. Thinking about how to leverage some covered outdoor areas to hold capacity over and above \u201cnormal\u201d for events as well. thanks for mentioning that.", "replies": [{"id": "i1sjy2x", "text": "If you\u2019re trying to determine what rents to charge, have you talked about percentage rent in your class?  Most of our restaurant tenants have a percentage rent clause in their lease, because a major part of our underwriting of prospective restaurant tenants is an estimation of what they will be able to do in gross sales, because the rent won\u2019t matter if a restaurant can\u2019t generate the sales to cover its expenses (rent being one). So, for example, at our \u201ccollege row\u201d property, we need restaurant projects who can generate at least $500 PSF in gross sales (that\u2019s an annual number). The calculation would then be $500 PSF in gross sales x 4.99% (the percentage rent factor we have to use in our jurisdiction due to the way the state interprets liquor licensing laws) = $25.00 PSF. So, $25.00 PSF becomes the Minimum Guaranteed Rental (i.e. \u201cbase rent\u201d) that we would set for that property. We would then have a percentage rent clause in the lease that would capture 4.99% (the percentage rent factor in this example) of all sales above the \u201cbreakpoint\u201d of $500 PSF.  So, we would receive a minimum of $25.00 PSF from all tenants, but those who generate more than $500 PSF in sales would also pay some percentage rent. I can explain more if it helps with your class.", "replies": [{"id": "i1sl8oq", "text": "Mind if I PM? This is super helpful - I\u2019d like to go into a little more detail if possible", "replies": [{"id": "i1sqlh7", "text": "Sure", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]