Creedmoor Zenspace 2.0

CREEDMOOR ZENSPACE

INTRODUCTORY PROSPECTUS PROJECT

BREATHE OUT STRESS. BREATHE IN HEALTHIER OUTCOMES.

DATE PLAN 15 MARCH 2024

A VISION OF MINDFULNESS WITH PURPOSE

Zenspace will be created by partners who also see Creedmoor as a destination for stress reduction. Our wellness center will be developed as an intersection of corporate retreats, private classes and therapeutic sessions, and a satellite research site in an inclusionfriendly environment that celebrates broader access. While somewhat rural, Creedmoor’s proximity to Raleigh/Durham/Chapel Hill makes it an ideal market. We welcome partners as excited as we are to be active growth participants in the design and buildout phases of this Creedmoor wellness project.

THE PLAN

Creedmoor Zenspace will be a destination venue located on 1.8 acres less than 30 minutes outside the Triangle of North Carolina and will host retreats and other activities focused on stress-reduction and wellness. The venue will provide shortterm (AirBnB-style) lease spaces for employee workshops, studies, and private classes hosted by mindfulness and mental health researchers and practitioners. The setting is rural, secluded and environmentally-respectful with greenery and serene lake views.

Responding to NEED

Creedmoor Zenspace has the mission to:

1. Build a first-in-market venue providing access to MBSR (mindfulness-based stress reduction) modalities for historically underserved and underrepresented resident populations who also over-index on stress-related illnesses that impact both mortality rates and quality of life.

2. Introduce effective, non-invasive, complementary, and culturally-responsive MBSR interventions to people with justifiable fear and hesitancy toward traditional medical care and which imbue preventive measures.

3. Level the playing field regarding access to “elite” health care modalities neither sought after nor accessible to those who need it most, and which are proven to combat stress-inducers and which can counteract social determinants of health (SDOH).

4. Prove the efficacy, acceptance and sustainability of MBSR in rural, minority, and low-resource communities.

5. Partner with MBSR providers to offer the site as a satellite research center providing access to a broader spectrum of users/beneficiaries.

Duke Integrative MedicineMBSR Program/Workshops

Cost is prohibitive for many

Not covered by insurance

Limits marketing to LinkedIn

Physicians don’t discuss MBSR with their patients as option

Marketing fails to describe benefits for stress-related conditions

Marketing fails to encourage inclusion or to depict it visually

No instructor diversity on the team

No further information or educational link

offered; only link to class sign-up

Screenshot from LinkedIn

On Workplace STRESS

Not surprisingly, job-related stress has serious consequences– both on the job and off, as well as on an individual level and for workplaces as a whole, costing U.S. companies alone an estimated $300 billion a year.

There is no question that workplace stress has been a contributor to the mass shootings that have become rampant— committed by disgruntled, frustrated employees who saw no civil solution to what was being bottled up.

Research has shown that chronic stress takes a serious toll on not only our mental but our physical health as well— affecting everything from heart rate and blood pressure to the digestive track and immune system. The more stressed we are, the more vulnerable our bodies become to sickness— both in terms of acute infectious diseases our bodies are not able to defend against, and long-term exposure to stress that— sooner or later— manifests as chronic disease.

There are 8,463 journal articles curated on Pubmed linking work-related stress to poor health outcomes. Articles on the subject can be found here: https:// pubmed.ncbi.nlm.nih.gov/?term=work-related+stress+and+health+outcomes.

Disproportionate STRESS

While we ALL endure stress in our lives, there is no question that certain occupations, situations, lifestyles and other variables— like race— can make stress more intense, more frequent, more common, and more dangerous. Stress can have a disproportionate burden for some of us:

Currently, there are 562 scientific journal articles describing the correlation between stress and chronic disease.

Currently, there are 1,256 journal articles describing the correlation between stress and race (or simply existing as people of color).

Currently there are 5,653 journal articles describing the disproportionate disease burden for people of color— specifically Black people.

MBSR is yet a largely untapped intervention to mitigate stress for which people of color lack access.

Creedmoor Zenspace seeks to prove the benefits of equitable access to MBSR.

WHAT ZEN SPACE IS

FEATURES are slated to include:

Hosted mindfulness retreats from interventions targeting workplace stress to those for immune-boosting and antiaging.

Food is provided with limited menus featuring plant-based cuisine for full-day retreats & weddings.

An environment for a range of stressrelieving activities including silent, group and walking meditations, guided imagery, aromatherapy, and music therapy.

Mindfulness. What is it?

Mindfulness is a type of meditation in which you focus on being intensely aware of what you're sensing and feeling in the moment, without interpretation or judgment. Practicing mindfulness involves breathing methods, guided imagery, and other practices to relax the body and mind and help reduce stress.

MINDFULNESS APPLICATIONS

Data confirms that mindfulness-based stress reduction (MBSR) is an effective complementary therapy for a wide variety of medical and psychological conditions, including:

Anxiety

Asthma

Cancer

Chronic pain

Depression

Diabetes

Fibromyalgia

Gastrointestinal disorders

Heart disease

HIV

Hot flashes

Hypertension

Mood disorders

Sleep disturbances

Stress disorders

On nearly 2 wooded acres with a view to a 175-acre lake

DETAILS

Within 15-30 minutes of Durham/Raleigh and 40 minutes of Chapel Hill

Easy access to I-85 and a cluster of commercial businesses

3,500 sq. ft. facility build proposed

Hybrid/electric shuttle can reduce carbon footprint & parking burden

Respects natural surroundings and conservation

High-altitude Project Features

Environmental Conscience

Zenspace will observe principles of conservation.

Zenspace corporate clients can be picked up at their designated location by our dedicated shuttle service, an electric (or hybrid) vehicle.

Zenspace can have arrangements with local food trucks to provide clients with rotating food options on-site.

Green is our favorite color

TRIANGLE PROXIMITY

Creedmoor

Raleigh

Chapel Hill

Durham

3 MINUTES TO I-85

HIGH-GROWTH CORRIDOR

Creedmoor is 20 miles north of Raleigh, NC and has an unemployment rate of 3.8%. The US average is 6.0%.

Creedmoor has seen the job market increase by 1.3% over the last year. Future job growth over the next ten years is predicted to be 40.7%, higher than the US average of 33.5%.

Creedmoor is currently growing at a rate of 0.69% annually and its population has increased by 13.39% since the most recent census, which recorded a population of 4,124 in 2010. Creedmoor reached its highest population of 4,676 in 2021.

Creedmoor Tax Rates

- Sales Tax Rate for Creedmoor is 6.8%. US average is 7.3%.

- Income Tax Rate for Creedmoor is 5.5%. US average is 4.6%.

Raleigh, NC

Lake Rogers - 175 acres

Conceptual image

ZENSPACE ENVIRONMENT

Creedmoor Zenspace will be made to fit into and respect its surroundings. Shown is a concept being considered with large windows with views to the lake and greenery, with clean lines and a mix of materials that would look at home in this environment. We will commit to minimal tree removal and loss of vegetation. Includes selective clearing with the structures designed to nest in their natural setting and fitting the structures around trees whenever possible.

The Triangle is Our Market

Once a major tobacco manufacturing area, the Triangle pivoted and is undergoing a boom and currently hosts employers across healthcare, tech and many other industries.

Home to a cluster of colleges and universities, including NCCU, NC State, UNC-Chapel Hill, Shaw, St. Augustine, and Duke— to name a few.

Both Google and Apple have announced expansion plans into the Triangle.

Apple plans to invest over $1 billion in North Carolina and will begin construction on a new campus and engineering hub in the Research Triangle area, creating 3,000 new jobs in machine learning, artificial intelligence, software engineering, and other cutting-edge fields.

Google is renown for investing heavily in employee health and workplace stimulation, and the company currently sponsors a variety of programs— including mindfulness— to help their teams manage stress, making Google a natural fit for Zenspace.

Duke Integrative Medicine provides enhanced clinical care available to members, making it another natural fit for Zenspace by offering broader mindfulness access to communities outside of members and Duke affiliates, and beyond campus boundaries.

Triangle Employers 1-20

By Number of Employees

Triangle Employers 21-40

By Number of Employees

Full service, insurance-based care in combination with proven conventional medicine.

GOOGLE MINDFULNESS

Google is already pioneering stress management for employees to address the effect of the pandemic and is taking a targeted approach.

Google currently offers specific classes to employees with Zen-centric names like Meditation 101, Search Inside Yourself, and MindfulnessBased Stress Reduction.

The company encourages meditation practice, and provides like daily in-person meditation sites at more than 35 offices.

Google already utilizes day meditation retreats at a handful of locations.

Creedmoor Zenspace can become a flagship facility for its mindfulness initiatives.

Google the Potential

WHAT ZENSPACE IS NOT

A HANDS-ON SPA

A MASSAGE PARLOR

A SALON OF ANY KIND RELIGIOUS IN ANY WAY

A PLACE FOR SKIN SERVICES

Zenspace is NOT hands-on

REVENUE STREAM

Shared Partnership

Shares are available at $5k per share

These original shares give the holder ownership stake in Creedmoor Zenspace, LLC.

Multiple sources providing rental income back to LLC in early phases:

Monthly rental from research studies under contract

Weekend rental for weddings & receptions

Daily rental from corporate retreats

Hourly rental from therapeutic specialists seeing clients and conducting classes at the facility.

LET’S GET AFTER IT.

How will we get there?

We will pursue a phased approach to maximize the value to the ownership group of the Creedmoor Zenspace, LLC.

Process Plan

Initial investment: Land acquisition and ownership.

Shared ownership as low as $5,000 (per shares).

Secondary partnership for construction/development.

Revenue based on short-term leases.

ROI estimated at 18 months post grand opening.

Profit sharing commensurate with percent ownership.

Creedmoor Comps

Commercial space in Creedmoor rents for $9/sq. ft./year (exemplar is Dutch Village Shopping Center)

Median home price is $295k

Corporate retreats costs range from https://www.byrdie.com/ affordable-wellnessretreats-5112762

Wedding venues rent for $14k on average (https:// www.valuepenguin.com/averagecost-of-wedding-venue)

Main Street, Creedmoor

Construction Costs

Commercial construction costs vary by location, labor variables, and materials selected.

However, while Triangle construction costs have risen, Creedmoor is modest in this region.

Our build expenses are being conservatively forecast at $301-381 per square foot.

https://www.levelset.com/blog/ commercial-construction-cost-persquare-foot/

Projection of Expenses

Zenspace is an integrated mindfulness micro resort with expenses approximated at $650,000 (not including furnishings).

Features include 3,500 square foot main building, plus decking, landscaping, a gravel driveway with parking, and an outbuilding.

Land clearance will be conservative to preserve the environment.

Infrastructure costs include water, city sewer and electric.

A 30 year mortgage (3.16% interest) on $650K, including a provision for property taxes and insurance, would equate to a monthly payment of approximately $3,300.

Other ongoing expenses include utilities plus sales taxes.

North Carolina Sales Tax: 6.75-7.5% of the listing price including any cleaning and guest fees for reservations less than 90 nights. The State imposes both a statewide 4.75% tax and a local 2-2.75% tax, which varies by county. For detailed information, visit North Carolina's website.

Phases of Development

Phase 1 - Land Acquisition

In Phase 1, the founding group negotiated agreements to secure the land parcel. The acquired acreage is flag-shaped with direct road access to NC Highway 56 and therefore with no need for an easement.

Phase 2 - Infrastructure Development

In Phase 2, we will work with the City and County to obtain permits and begin construction of the utilities, landscape, driveway and building infrastructure to ensure plan acceptance.

Phase 3 - Marketing & Pre-sell

The market launch for Creedmoor Zenspace will be initiated during Phase 2 and accelerate to secure larger lessees in advance of completion which will use the space for retreats and research that align with our mission of stress reduction. Further marketing will also progress to secure demand for short-term tenants of the facility.

Phase 4 - Building & Construction

Main building and ancillary buildings will be constructed.

BUILDING USAGE SPLIT

A. COMMON AREA

• RETREATS

• WEDDINGS

B. PRIVATE ROOMS

• RESEARCH

• MBSR CLASSES

• STRESS THERAPY

388 sq. ft. each room (1,940 total)

1,555 sq. ft. common area

Projected ROI from Tenants

With market flex, the use of the land and facility may adapt based on the changing times and business/market trends; however, shares provide partners with land ownership for any eventuality.

Revenue assumes tenant categories occupy Zenspace concurrently:

Small Corporate Retreats $82,292/month

Based on 10 people per session regardless of length

$2,750 per half-day space only; $5,000 full day (all-inclusive)

Five half-day retreats per week [5 x $2,750 x 50 weeks total $687,500]

Two full-day retreats per week [2 x $5,000 x 30 weeks total $300,000]

Small Destination Weddings $43,333/month

$5,000 per day (up to 50 people)

Saturday/Sunday only ($5,000 x 2)

$10,000 times 52 weekends per year total $520,000

Researchers $54,000/month

$1,500 per month per room

3 rooms total $54,000 revenue

Hourly classes/client sessions $17,500/month

$150/2 hours [reservation via AirBnB/AirBnB Experiences]

2 hour minimum per day per room

Therapist & Counselor rate booked as needed and by room availability

10 hours per day [$750 per day] x 7 days total ($5,250 per week) x 40 weeks totals $210,000

Partnership Opportunity

Few have the opportunity to invest in a health movement that holds the potential to touch so many lives and to make a significant return on investment based on a proven, non-invasive intervention that will drive the economy by ensuring productivity and healthier outcomes.

We’re looking for like-minded partners who share our vision for Creedmoor Zenspace, who are committed to broader MBRS access, and who want to be a part of bringing it to life.