Happy New Year and welcome back to the second edition of the "90 Day Nuggets"!
In early November, I had the chance to visit Ann Arbor with my brother, Chris, for our first ever Michigan football game at The Big House as they took on Oregon.
With some time to spare before the game, my business partner and Director of Haven Coworking, Ramin, suggested we check out Cahoots Coworking in downtown Ann Arbor. I’m glad we took his advice; the tour provided valuable insights into how coworking spaces can adapt to different work cultures.
One key difference between Cahoots and Haven is their focus. Cahoots offers only open coworking and standing desks arranged in pods, catering specifically to Ann Arbor’s thriving tech and startup scene. With major tech companies like Google establishing a significant presence there in recent years, this open, collaborative setup—where teams can work closely together while still maintaining some personal space—makes perfect sense. It’s a different approach than our private office model at Haven, but it clearly works for their market.
Cahoots also boasts a beautiful event space that hosts regular gatherings for local founders, entrepreneurs, and community members. They’ve effectively created a full-service ecosystem for the startup community. Adding to their appeal, Cahoots even has a health club in the basement, complete with a gym, sauna, and showers. This reflects the growing trend of integrating work, community, and wellness into a single, convenient location (something we at Haven are also deeply focused on).
Designing a flexible workspace to match the unique culture of Northern Baltimore has been one of my true joys of 2024. I’m energized by the changing landscape of our workdays and how we differ from state to state and city to city. My visit to Cahoots and Ann Arbor reinforced the importance of understanding our local market, which is why we’re excited to share some exciting developments happening at Haven, tailored specifically to the needs of our community. In this newsletter, you’ll find updates on our expansion plans, new amenities, and opportunities for investment with us. We’re building a space that truly reflects the balanced, professional yet approachable spirit of Northern Baltimore, and we’re thrilled to have you along for the journey.
Haven Coworking Expands in Towson: INVESTMENT OPPORTUNITIES AVAILABLE!
A Strong Start: Oftentimes when you start a business, you start small and grow as the concept is proven over time. For Haven Coworking, we started with a commitment to doubling our foot print in our Flagship Towson location within our first year while also growing into our second location that is under construction in the Overlea neighborhood of NE Baltimore.
Just like in Fields of Dreams, we believed that “If You Build It, They Will Come.” And after 8 months in business, we were right!
We are now 90% full in our Towson location and are ready to expand to more space within the building. In the next few months, we will begin construction on the 4th floor of our 200 W Towsontown location.
Expansion Details: We are undertaking a build-out of the 4th floor at 200 W Towsontown Blvd, effectively doubling our footprint. This expansion will include:
- A 75-person training room for corporate events and large meetings
- 26 additional private offices
- A dedicated wellness room
- Shower facilities
- A significantly expanded kitchen and lounge area
- Two additional conference rooms
Investment Opportunity: 12% Annualized Return
To finance this expansion, we are offering a private debt investment with a 24-month term and a 12% annualized return. Key terms include:
- Minimum investment: $25,000
- Monthly 8% interest payments
- Additional 4% interest payment upon return of capital at the end of the term
Future Building Acquisition & Equity Investment Opportunity:
We have a negotiated contract in place to acquire the entire building at 200 W Towsontown Blvd. This acquisition will be financed through a combination of bank financing and limited partner equity. Investors participating in the current debt raise will have right of first refusal for future limited partner equity positions in the building acquisition.
Learn More & Invest:
- For details on the 4th-floor expansion debt raise,
- To learn more about the future building acquisition and pre-commit capital for potential equity positions, please visit:
We invite you to partner with us as we continue to grow Haven Coworking.
How We Design a Renovation Project
As a development company, we focus on high-quality renovations that enhance neighborhoods. Design is crucial to this goal. Our renovations offer a unique opportunity to modernize property layouts for today's living standards, prioritizing functionality, symmetry, and livability.
Our design process:
- Site Visit & As-Is Drawings: We walk the property with our architect to document existing conditions and create a computer-generated "as-is" drawing.
- Initial Design & Layout: We outline desired changes (e.g., adding a bedroom, opening a wall) to our architect, who creates a preliminary layout.
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Team Review & Refinement: We review the drawings as a team, providing feedback and incorporating revisions (example screenshot here). We focus on:
- Utility upgrades and meter placement.
- Accessible yet discreet furnace/water heater placement.
- Appropriate ceiling heights and egress.
- Maximized closet space without compromising room size.
- Kitchen livability features (pantry, ample counter/cabinet space, logical flow).
- Accessibility for people of all mobility levels.
- Structural Engineering (If Needed): For projects involving load-bearing changes or additions, we consult a structural engineer.
- Permitting: Once plans are finalized, we submit for permits.
- Finishes & Materials: For rentals, we use consistent finishes (vanities, flooring, paint) for efficiency. For flips and commercial projects, we select unique finishes like accent walls and trim.
Example Rental Bathroom:
Key features:
- Black shower floor tile and grout (minimizes visible soap scum and staining).
- Luxury Vinyl Plank flooring (durable, watertight, cost-effective).
Benefits of Quality Design for Rentals:
Our focus on design improves the longevity of our rental revenue by:
- Increasing tenant retention, reducing turnover costs.
- Attracting more applicants quickly, minimizing vacancy.
- Achieving top-of-market rents.
- Securing strong appraisal values for refinancing.
Ultimately, our dedication to design is driven by a desire to create spaces that people truly enjoy living in. We believe that thoughtful planning and attention to detail are the keys to building thriving communities and successful projects.
Hot Takes
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Tenant demand for higher-quality rental properties is increasing, and the market is starting to require it too.
Recently, while walking one of our properties with our tenant placement specialist, he mentioned how the current state of the Baltimore rental market reminds him of the 2006-2007 rental market. In 2006-2007, the market became oversaturated with flip properties that had sat on the market for months and ultimately did not sell. During that time, those flippers pivoted to renting the properties in an attempt to stop some of the financial burn and begin generating income from the properties.
As those higher-quality renovated properties came onto the market as rentals, the renter base grew accustomed to having better options. Landlords who got comfortable and never upgraded their properties in prior years then struggled to find tenants because they were losing out to the higher-quality renovated properties.
That is why, regardless of the market cycle, we always renovate our rentals to flip-quality standards: high-quality LVP flooring, full wood cabinets, granite countertops, stainless steel appliances, and aesthetically pleasing bathrooms.
— Will
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Bonus Depreciation (might be) Back!
I recently attended a conference in Arizona where a DC-based tax attorney shared some insights into potential upcoming tax policy changes. While nothing is set in stone, these are areas the current administration seems focused on and likely to pursue. Remember, we're sharing observations, not giving tax advice!
Here are a few key takeaways:
Bonus Depreciation: It looks like 100% bonus depreciation might be making a comeback, without the previous phasedown. This is especially exciting for our 200 Towsontown Blvd project, as it would allow for significant immediate depreciation on cost segregation.
Child Tax Credit: There's strong bipartisan support to increase this from $3,000 to $5,000.
SALT Deduction: Expect a battle over whether this can exceed the current $10,000 cap.
Clean Energy Credits: These could be on the chopping block to offset other tax changes.
Estate Tax: A potential increase is likely, reversing previous plans for a decrease.
Corporate Taxes: There's talk of a reduction from 21% to 20%, with a possible further drop to 15% for US-based manufacturers.
Of these, the potential return of 100% bonus depreciation is most relevant to our current projects, particularly 200 Towsontown Blvd, where it could significantly enhance investment returns.
We'll keep you updated as we learn more.
— Austin
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