42 Carden Shared Space Community Bond - G Series

42 Carden Shared Space / 10C ○

Offering Description

logo.svg

42 Carden Shared Space is creating space for change with its community bond offering and thriving social innovation hub in downtown Guelph.

42 Carden is a joint project between 10 Carden Shared Space (10C) and Chalmers Community Services Centre (Chalmers), both not-for-profit organizations, and with 10C as the lead operator and majority owner. The building was purchased in 2015 as a natural expansion for 10C, which had established Guelph’s hub for community activators and changemakers since 2009 just down the street in a smaller location.

Located in an iconic location on the most desirable street in downtown Guelph, the new 42 Carden shared community space is a fully renovated 15,000 sq. ft. building, boasting amenities such as commercial office spaces, rooftop gardens, full accessibility, and a 30 sq. ft. patio. The space will be used to fuel the social change sector in Guelph and enable the local changemaking organizations.

To finance the purchase, redesign, and renovation of the new location, 42 Carden is issuing a series G of Community Bonds which are secured, interest-bearing bonds with a five-year terms to maturity. This follows on its successful previous series of Community Bonds A to F, which are all nearly fully subscribed. Investors in 42 Carden will be part of redeveloping a major real estate asset for the benefit of the community. To date, 42 Carden has raised $1,325,000 from 105 investors.

Capital raised figures include amounts raised both on and off platform

Investment Highlights

Investment: $400,000 (Investment minimum: $5,000)

Use of Proceeds
Final project development expenses. Overall, all Bond Series A to H are to finance construction and development of 42 Carden Shared Space. . 

Investment Structure
42 Carden is offering two (2) series of Community Bonds, G & H, which rank pari passu to each other. Both series are unsecured, interest-accruing and compounding, and junior to a first mortgage on the property, followed by Series A to F bondholders. 

Investment Opportunity
Series G Community Bonds have a term of five (5) years. Interest will compound and accrue through the life of the bond, which will be paid along with principal at maturity. Series G has a lower investment minimum to allow for great civic participation from various interested individuals, within the Guelph community and beyond.

Please note that this is not a complete investment summary. Investors should read all associated documentation including the investor package and associated securities agreements before considering or making any investment. Please contact us via email at info@svx.ca or fill in the Ask a Question box for more information.

About 42 Carden Shared Space, 10C and Chalmers

10C:

10 Carden (10C) is the hub for community activators and changemakers in Guelph. It offers local not-for-profit groups, socially focused businesses, and individuals affordable co-working and event spaces based on their needs. 10C’s services enables innovators across many sectors to connect, collaborate, brainstorm and solve challenges in the local community. Now in its 8th year of operations, 10C continues to undergo significant growth and its continual development is being realized through the 42 Carden expansion

Chalmers:

Established in 1997, Chalmers is a social benefit organization whose mandate is “Striving to serve those in need without prejudice; all are welcome.” Some services include offering food, clothing and other support to those in need at no cost, as well as micro-lending services of low-interest loans under $4,000 built on manageable terms to the individual. Currently located in two separate locations in Guelph, Chalmers sees 490 monthly visits on average and strives to support and refer individuals to social support services.

42 Carden: The building

42 Carden is located in central downtown Guelph that provides triple the amount of affordable space to support local arts, cultural and educational events and organizations than the original 10C location. The former Acker Furniture Building is now fully renovated and operates as a multi-tenant facility with enough private space for 30 – 50 full time employees and 400 – 600 visitors per week, four times the amount of the original 10C location. It is a fully accessible space, offering dynamic and affordable space for social benefit organizations and general public programming.

Impact Metrics

10C is working towards tracking specific social metrics in the following:

  • Education: access to information, quality education, capacity building
  • Community well-being: community development, equality and empowerment, gender equality
  • Sustainability: sustainable land use, energy and fuel efficiency, water resources management
  • Economic: employment generation, income/productivity and growth

10C is also spearheading a partnership with its 100+ organizational and individual members, an evaluation capacity and framework for its network organizations to track and use in order to show collective impacts

Traction

42 Carden has a robust tenancy rate despite 2018 being its first year of opening its doors, built upon the success of 10C and both partner organizations’ longstanding reputation within the community. Private space is fully subscribed on 2-5 year leases, with future vacancy allowance modeled at 5% (based on municipal average). Just about 25 social-benefit organizations are to be headquartered at 42 Carden, well-establishing the facility as the social innovation hub of Guelph.

Its Community Bond Series have engaged over 105 individual investors and raised $1.3M to date. Nearly all bond series have been fully subscribed (~$10,000 remain for Series E).  

  • outontheshelf.png
  • immigrationpartnership.png
  • artscouncil.png
Current tenants and partners of 42 Carden Shared Space / 10C.

Impact Narrative

42 Carden fosters social change in the Guelph community by providing high impact local organizations a place to work and operate that is affordable and vibrant. 42 Carden will also act as a general space for community members in the Guelph and Wellington area to congregate, collaborate, and exchange ideas. The 42 Carden building will provide, encourage, and support the following:

  • Accessible space for Chalmers Community Services
  • High visibility for the Guelph Arts Council
  • “Out on the Shelf” community library - a NFP offering services to LGBTQ+ community, also including monthly programming and resource center
  • Accessibility and environmental features (currently engaging in LEED certification process)
  • Offices for community benefit organizations
  • Community event venues

There is no other hub like it in Guelph, offering its richness in infrastructure and features, along with the mission to support social-purpose organizations.

Investment Risks

All private securities listed through online investment platforms and Exempt Market Dealers (EMDs) like SVX are likely to carry more risk than those available on the public markets. Our goal is to make you aware of those risks before making an investment. The following risks have been identified for investors:

Liquidity: This is an illiquid private debt offering with no interim interest payments. Interest compounds and accrues through the life of the bond and is paid along with principal at maturity (5 years). There is no secondary market with which to exit out of the bonds earlier than maturity.

Underlying asset: The G & H bonds are unsecured and pose substantial risk in terms of lack of underlying asset or security. It is also the most junior debt tranche of the organization, third after its debt obligations to VCIB and subsequently to Series A to F bondholders. In the event of operational failure or liquidation for distressed purposes, it is unlikely G & H bondholders would see much, if any, principal or interest returned.

Leverage: Assuming G & H are fully subscribed, 42 Carden will be ~104% leveraged against its property value. Should the real estate market experience downward fluctuations, this rate will increase. Should 42 Carden need to liquidate and sell the property in a worse case scenario, it would currently not be able to fully cover all G & H bond holders.

Economy: 42 Carden’s aggregate annual debt servicing payments amount to ~75% of total revenues. Revenues are largely comprised of commercial rent and other space rentals. Should there be a significant and/or prolonged downturn in local economy fundamentals, lease income could be materially impacted, and could endanger 42 Carden’s ability to honour its debt obligations.

Management Team

Julia Grady

Julia Grady

Co-Founder, Executive Director

Julia is one of the passionate co-founders of 10 Carden. She is committed to seeing the social innovation and culture sectors develop and thrive, in the city of Guelph as well as in other Canadian communities. Her core competencies are in problem-solving, interdisciplinary thinking and connecting community vision to action.

As an enthusiastic and articulate social entrepreneur and community leader, Julia is able to lead and inspire team-players to carry ideas through to implementation. Julia is tireless in her dedication to helping 42 Carden and 10C Shared Space move to the next level of sustainability and permanence. She champions collaboration as a way to realize interesting projects and harness new opportunities.

Julia is most excited about the potential for future collaborations and community leadership in the context of 10C’s expansion.

Julia has spent the past 20+ years of her creative career in Guelph fully engaged in everything she takes on. In addition to offering support and leadership to 10 Carden, she has co-created a successful web design & development company, Barking Dog Studios. Barking Dog is now one of Canada’s longest-running web development firms. Julia’s focus with the business has been to support a high level of community work, innovative project work and a happy team.? The majority of BDS work is in relation to social change and educational spheres. For many years, BDS also ran an on-site childcare to offer team members a better work-life balance.

The importance of placemaking carries through all of Julia’s work. These spaces at home, at work and in the community, fulfill the souls of their inhabitants and allow for connection and collaboration - creating space for change.

$386,000.00

Raised Of $400,000.00 Goal*

Days Remaining 133
Hours 11
Mins 12
$386,000.00
 
Bonds Offer. Structure
4% Valuation
5 Years Term
Invest Now

*Capital raised figures include amounts raised both on and off platform. Amounts raised off platform or committed have not been independently verified by SVX.