Data Room
FuturePlay Sports is developing a 141,000 sq. ft. purpose-built indoor sports campus in Happy Valley, Oregon. The facility is engineered to capture a share of the $39 billion U.S. youth sports tourism market by delivering the Pacific Northwest's first venue with the court density required for elite-level national qualifying tournaments.
The project addresses a documented infrastructure gap: the PNW currently has no facility capable of hosting 64-team or 128-team national qualifiers for volleyball or basketball. Oregon-based clubs routinely export millions in travel spend to venues in Phoenix, Salt Lake City, and Northern California. FuturePlay keeps that economic activity in-state while attracting four-state regional and national tournament traffic.
| Project Parameter | Value |
|---|---|
| Total Project Size | $60,000,000 |
| Building Area | 141,000 SF on 8+ acres |
| Total Equity Required | $29,000,000 |
| Construction Debt | $30,000,000 (50% LTC) |
| Projected Blended IRR | 18.22% |
| Equity Multiple | 2.87x |
| Target Hold Period | 8 years (sale in Y8) |
| Exit Cap Rate | 7.5% |
| Stabilized NOI | $5,184,000 ($36/SF) |
| DSCR at Stabilization | 1.51x |
FuturePlay utilizes a bifurcated PropCo/OpCo structure to isolate real estate risk from operational risk. This institutional-grade framework allows investors to participate in both asset appreciation and high-velocity operating cash flows through a single investment.
| Entity | Function | Value Driver |
|---|---|---|
| FuturePlay Property Co. | Real estate ownership, NNN lease to OpCo | Asset appreciation, depreciation, $5.18M stabilized NOI |
| FuturePlay Operations Co. | Facility management, tournaments, programming | $11.9M+ stabilized revenue, 13.8% net margin at Y5 |
| FuturePlay Holdings | Parent / IP holding company | Brand equity, multi-site scalability |
The PropCo owns the real estate and leases to the OpCo under a Triple Net (NNN) structure. All property operating expenses — including taxes, insurance, maintenance, and reserves — pass through to the OpCo, producing clean NOI for the real estate investors. The OpCo generates revenue from court rentals, tournaments, camps, concessions, sponsorships, and sublease tenants.
Phase I: Anchor Capital ($3.5M)
The initial $3.5M raise funds land acquisition, entitlements, and pre-construction engineering to move the project from Exclusive Negotiation to Site Control. These anchor investors receive a 15% cumulative preferred return, compounding annually during construction, with first-priority position in the waterfall.
| Parameter | Detail |
|---|---|
| Target Raise | $3,500,000 |
| Minimum Subscription | $500,000 |
| Preferred Return | 15% cumulative, compounding annually |
| Investor Qualification | Accredited Investors only (Reg D / 506c) |
| Use of Funds | Land acquisition, site due diligence, architectural/engineering design |
| Waterfall Position | First claim on distributions; paid in full from Y3 refi before Tier 2 |
Full Capital Stack
| Source | Amount | % of Total | Cost / Terms |
|---|---|---|---|
| Tier 1 Equity (Anchor) | $3,500,000 | 5.8% | 15% pref return |
| Tier 2 Equity | $25,500,000 | 42.5% | 7% pref return |
| Construction Debt | $30,000,000 | 50.0% | 10% rate, cap interest |
| Grants | $1,000,000 | 1.7% | Sport Oregon / TBD |
| Total | $60,000,000 | 100% | — |
Permanent refinancing occurs in Y3 at stabilization. The perm loan (6% rate, 25-year amortization, 15-year term) is sized at 60% LTV, generating a refi surplus that retires the construction debt and returns capital to Tier 1 investors. Annual debt service on the permanent loan is approximately $3.44M, producing a 1.51x DSCR at stabilized NOI.
Distributions follow a three-tier structure designed to protect early capital while rewarding participation in upside:
The blended LP IRR across all tiers is projected at 18.22%, with an overall equity multiple of 2.87x over the 8-year hold period.
The OpCo generates revenue from seven primary streams: court rentals ($7.5M at stabilization), clinics and camps ($1.5M), concessions and merchandise ($2.3M), sponsorship and naming rights ($456K), memberships ($65K), tournament parking ($135K), and other income. Revenue ramps at 60% utilization in Y3, 80% in Y4, and 90% in Y5, reaching full stabilization by Y5.
| Metric | Y3 (Ramp) | Y4 | Y5 (Stab.) | Y8 (Sale) |
|---|---|---|---|---|
| OpCo Revenue | $7.9M | $10.6M | $11.9M | $13.8M |
| OpCo Net Profit | $2.1M | $1.6M | $1.6M | $1.9M |
| Net Margin | 26.2% | 15.3% | 13.8% | 14.0% |
| PropCo NOI | $2.6M | $4.4M | $5.2M | $5.7M |
| DSCR | 0.75x | 1.28x | 1.51x | 1.66x |
| Rent as % of Revenue | 38.1% | 42.6% | 45.2% | 42.7% |
Cost Segregation & Depreciation
The project will utilize cost segregation to accelerate depreciation. Specialized components such as HVAC systems ($3.3M), championship lighting, and broadcast infrastructure may be reclassified from 39-year straight-line to 5-, 7-, or 15-year recovery periods. These accelerated non-cash deductions can offset passive income for investors, enhancing the after-tax IRR.
Exit Paths — Y8 Target
The Y8 exit is modeled at a 7.5% cap rate on NOI of $5.7M (reflecting the 10% rent bump after Year 5 of operations), producing an estimated sale price of approximately $76M. After selling costs (4%) and permanent loan payoff, net proceeds flow through the waterfall to retire Tier 2 preferred balances and distribute promote.
The Pacific Northwest is an infrastructure desert for elite indoor sports. While the Southwest has purpose-built mega-court facilities for national qualifiers, the PNW relies on fragmented municipal gyms and school facilities that lack the court density, ceiling clearances, and broadcast infrastructure required by national governing bodies.
FuturePlay delivers 20 volleyball courts and 8 basketball courts under one roof, with a 3,000-seat championship arena designed for televised finals. The facility meets sanctioning requirements for Nike EYBL, USA Volleyball (USAV), and NCAA-certified recruiting events.
Regional Benchmark: Rogue X (Medford, OR)
Rogue X, a facility approximately half FuturePlay's scale in a market one-tenth the size of Portland, generated $6.7M in direct economic impact in its inaugural year. FuturePlay serves the Portland MSA with significantly higher population density, per-capita income, and airport connectivity (PDX).
| Specification | Detail |
|---|---|
| Total Building Area | 141,000 SF (144,000 SF gross) on 8+ acres; exclusive negotiation for up to 60 acres |
| Court Configuration | 20 volleyball / 8 basketball (FIBA/USAB compliant) + 4 covered sand courts |
| Championship Arena | 3,000-seat venue with broadcast infrastructure for televised events |
| Ancillary Spaces | Athlete recovery (PT/cryo), parent lounges, coworking, gym, concessions, 15,000 SF sublease retail |
| Construction Estimates | Colas concept: $43.8M ($311/SF, 141K SF); Hoffman precon: $103.9M ($602/SF, 172K SF expanded scope) |
| Sanctioning | Engineered for Nike EYBL, USAV, and NCAA certified event standards |
| Phase | Milestone | Target | Year |
|---|---|---|---|
| I | $3.5M Anchor Capital Close | Q2 2026 | Y0 |
| II | Land Acquisition & Final Permitting | Q3 2026 | Y0 |
| III | Groundbreaking / Construction Start | Q4 2026 | Y1 |
| IV | Construction Complete / Perm Refi | 2028–2029 | Y2–Y3 |
| V | Grand Opening & Operations Begin | 2029 | Y3 |
| VI | Stabilization | 2031 | Y5 |
| VII | Target Sale / Exit | 2034 | Y8 |