46 Waller Street is a 3,128 square foot single family residence located in the East Cesar Chavez neighborhood of Austin, Texas.

This modern home was completed in 2015 and has five bedrooms and four bathrooms. The house has designer finishes including custom lighting and cabinetry, hand painted tile, and built-ins throughout. 

The screened porch overlooks the backyard—an outdoor oasis with a pristine lap pool. The large deck is ideal for lounging and entertaining poolside. 

The study provides an ideal place for a home office or work space.

The spacious kitchen features high-end appliances with large, open windows that look out on the lush, green property. The kitchen flows into the airy dining room which is ideal for hosting guests, dinner parties, and entertaining.

We think everybody should be able to participate in the growth and prosperity of the cities and neighborhoods they are helping to build.

Compound is the easy way to build a diversified portfolio of beautiful properties in some of the world's best cities. Compound slices each property into 100,000 equity interests so investors can realize the economic benefits of ownership without the hassles and headaches. Investors receive potential dividends from rental income and build wealth through potential appreciation.

Financial Overview

On October 18, 2020 we entered into an agreement to acquire 46 Waller Street for $1,800,000. We have estimated a total capitalization for the acquisition to be $1,950,000 which includes closing costs associated with the purchase of the property, offering costs, (for this offering and potentially other equity offerings), fees paid to Republic, and operating and capital reserves. In the event that we have overestimated the total capital required, we intend to distribute any excess capital to investors. The closing of the acquisition is expected to occur prior to April 14, 2021.

We intend to make semi-annual dividend payments based on cash available.

Returns

We intend to hold the property for a period of 3-5 years after we complete the acquisition. Total return on investment will consist of a combination of current income that will be received during the time we hold this property and capital appreciation that may be realized when we sell the property. 

Please refer to the FAQs for more information about return estimates.

46 Waller Street, Austin, Texas

Austin

Austin has its own special culture—between the live music scene, food trucks, breakfast tacos, BBQ, Tex-Mex, street art, the Formula One U.S. Grand Prix, and natural beauty, it is truly unique. 

Austin is the capital of Texas, home to the University of Texas at Austin, and has also been dubbed the "Live Music Capital of the World." Over the past 25 years, Austin has emerged as a center for business and technology. A number of Fortune 500 companies have headquarters or regional offices in Austin, including Amazon, Apple, Google, PayPal, eBay, and Whole Foods Market. Dell's worldwide headquarters is located in the nearby suburb of Round Rock. In fact, Elon Musk recently announced that Tesla will be moving to the area to create the largest auto assembly plant that will employ at least 5,000 workers. 

Inc. recently published the “50 Best U.S. Cities for Starting a Business in 2020,” and Austin topped the charts at number one. Rankings considered a number of factors, including job creation, early-stage funding deals, and population growth, among other indicators.

The property is well-located right on the border of the Rainey Street Historic District and the East Cesar Chavez neighborhood.

East Cesar Chavez Neighborhood

The East Cesar Chavez neighborhood is an up-and-coming area that consists of an eclectic mix of new and old in the east side of Austin. Populated with a variety of restaurants, bars, coffee shops, time-honored taco spots, and mom-and-pop shops, there’s something for everyone in the neighborhood. It is a popular destination for both locals and tourists. 

The neighborhood is about as well-rounded as it gets—there are art galleries, craft cocktail lounges, live music venues, and vintage shops. The Tejano Walking Trail which traverses the neighborhood covers an expansive part of American history, starting from the post-Civil War expansion of the railroad to the 2009 dedication of a Cesar Chavez statue at a library on his namesake street. The trail features 24 sites along the walking trail, plus an additional seven on the 5.6-mile Trail of Tejano Music Legends. 

Home values in Austin have appreciated by 85.2% over the past 10 years including 9.3% in the last year. 

* Zillow Home Value Index (ZHVI): A smoothed, seasonally adjusted measure of the typical home value and market changes across a given region and housing type. Based on data as of September 30, 2020. 

Draper Startup House

Following the completion of the acquisition, the property will be net leased to Draper Startup House (the "Lease"), a co-living company focused on providing housing for entrepreneurs. The Lease has a 36-month term and scheduled to commence on June 1, 2021. The monthly base rent is $6,000 for the first 12 months of the lease term and $6,300 for the remainder of the lease term. In addition to the base rent, Draper Startup House will be responsible for all property expenses including real estate taxes, property insurance, repairs & maintenance, and utilities. Draper Startup House will also pay additional rent each month equal to 10% of any profits that they generate from their business operations. 

Draper Startup House has a bold mission to connect, inspire, and empower one million entrepreneurs worldwide by 2030.

The Austin, Texas property is the first Draper Startup House location in the U.S. Current locations include Singapore, Bangalore, Estonia, Yangon, Manila, Lisbon, and Bali.

By using hostels and homes to aggregate global talent, Draper Startup House is disrupting the hospitality model to create true value through building a larger business ecosystem.

Through the use of real human connection, inspired business travel, a diverse-minded community and access to global citizens, residents are able to connect to new opportunities, inspire one another to innovate and execute, and empower one another to go big, give back, and drive progress.

Draper Startup House goes beyond your typical coworking and co-living experience. Memberships provide access to shared office workspaces, networking, global events, along with venture capital & funding, with a focus on diversity, innovation, and entrepreneurial spirit.