From the Pentagon to Barn Caves: Institutional-Grade Design Meets New Construction Tech | Webinar E32 - The Paradyme Shift

Episode Transcript
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SPEAKER_02 (00:40):
Well, hello everybody.
Ryan Garland here, founder andchairman of Paradigm.
I want to thank you all forjoining us today.
This is our biggest webinar yet.
We did a lot of marketing forthis.
And I'm excited to introduce youguys to uh Steven Beagle.
He was on one of our webinars inthe past.
But as the Barn Caves projectand Paradigm uh continues to
grow, we thought it wasimperative that we continue to

(01:01):
add value to our network andkind of cross-pawnate on some of
the other people that have beenwanting to see how Steven
operates, how the barn caveshave been developed have been
developed, and how we kind ofcame to light about the design.
Now we actually are going to getit built.
Right.
And so Steven is here to kind oftake the mic here for a little
bit, but I wanted to let youguys all know, for those of you
that have been watching me formany years, yes, I do not have a

(01:22):
beard anymore.
As most of you know, Joe Diesel,my videographer, I lost a bet.
And so I had to cut down to thisnice little mustache.
So if you guys are laughing atme, that's okay.
I accept the laughter because Idid lose a bet, but I do get out
of a lot of uh tickets.
So that's at least uh theupside.
So, well, Steven, thanks forjoining us today, buddy.

SPEAKER_00 (01:42):
Thank you, Ryan, for having me.
And thanks to the Paradigm team.
I have been with you for thelast 48 hours and it's been
really fun.
There's a lot of energy here,and we're just delighted on
behalf of place architects,we're delighted to be partnered
with Paradigm.
And you know, when we startedout a year or more ago, the
energy level that's at Paradigmwas so consistent with ours and

(02:03):
the philosophy.
You set a goal, you get there,and you establish the next goal
and you keep climbing theladder.
And that's what we see inParadigm.
And we do the same thing.
We do the same thing.
So we're aligned in apartnership that I really like.

SPEAKER_02 (02:18):
Yeah.
I thought the energy wasperfect.
And when we spent some timetogether, like early on, when I
came out to Texas and spent sometime with you, I really, I
really got to understand more ofhow you operate, but you're kind
of a workhorse.
You just don't stop working.
There's no way, you really justdon't.
And that's really the name ofthe game here.
You know, people they they go,oh, I'm gonna take my nine to
five, and this business is not anine to five.
This is basically all in ornothing, right?

SPEAKER_00 (02:39):
24-7.

SPEAKER_02 (02:41):
So today, guys, uh, this is gonna be, you know, a
little more of an introduction.
I want uh Steven to kind ofshare with you guys his
background, his pedigree.
And then we're gonna kind ofdive deep into the barn caves.
But what we want to do is is uhkind of give you guys again the
background and let them kind ofstart from there.
Um, and then I'll I'll I'll kindof tee off a little bit on
myself.
But uh for those of you thatdon't know, in 2008 is really

(03:03):
how I cut my teeth.
I've been in a space well over20 years now.
Started in the mortgage space,uh, really got into the
distressed assets in 2008, youknow, kind of just was organic.
Ended up meeting and rubbingelbows with the family office
that had about 40 million amonth.
He was looking to me to put outand start acquiring distressed
assets, repurpose them, uh, doworkout turnarounds, get them

(03:23):
back on the market, sell them,rehab them, whatever it took to
kind of buy low, sell high.
So I really learned the gamefrom some very sophisticated
people that have been in thespace for you know 20, 30 years
prior to me even starting thegame.
And so that really kind of gotme into where we are today to
kind of have more of aconservative look, not knowing,
you know, which way the world'sgonna go.
Um, I know we all live in fear,and everything that's gonna
happen the last few years iskind of scary.

(03:45):
But I think what happens is whenyou have a lot of people come
together that have experience,you guys can hedge against risk.
And that's really what it comesdown to is to try to add value
to not only our personal lives,but our our clients and our
friends and everybody thatreally rely on us to make good
decisions.
And so, you know, we ended upkind of getting into the stress
space.
That helped me kind of look atthings from more of a
conservative lens.
Now I have an underwritingbackground, so I'm kind of

(04:07):
scrutinizing everything I getmyself into.
And uh, and that's really how wegot to where we are today.
So at the time back then in2008, I was doing about 150
short sales, lease lease backturnarounds.
Uh, I ended up selling uh one ofmy uh divisions to another uh
operator that kind of took thatto the next level.
But it was really kind of nicethat even from back then we had

(04:28):
kind of shifted the paradigmshift, and hence the name
paradigm, into you know whatworks and really being able to
pivot uh pretty and be a smallfirm, but be able to pivot when
needed is really important.
So that's really the the brandand the culture of paradigm is
being able to shift and then youknow forecasting potential
problems and how to hedgeagainst that.
So one of the big things isbeing aligned with the right

(04:49):
people.
So with that said, let's goahead and get right over to
Steven.
Stephen, if you don't mind,share a little bit about your
background because I will, Imean, I'm good at it.
You are a better guy.

SPEAKER_00 (04:57):
You are.
Well, I don't know where tostop, so cut me off when I get
going.
This is 45 years in the making.
So uh I uh actually, you know,run the architectural division
of place designers out in Texas,based in Round Rock and
secondary office in Houston.
We have a great team, and I'mvery happy with their work ethic
and the fact that we've beenable to align with paradigm.

(05:20):
So uh having said that, I'mgonna talk to you a little bit
about my book.
You probably see it in theframe.
Uh back in 2023, I publishedthis book entitled Profit by
Design, and it was intended togive students of architecture
some notion of how to be inbusiness as an architect, as a
designer, even as an engineer.

(05:41):
Because when I got out of schoolat Syracuse University in 1978,
I hadn't had a clue and I wentthrough the struggles.
So this is intended to help.
So now, you know, Stephen Beagleas an architect.
Uh I used to uh run a firmcalled Matrix Settles, and in
that context, we had a contractwith the Pentagon.

(06:02):
So I'm gonna go through a fewprojects just as credentialing
mostly and talk aboutinstitutional design.
So here we are, the Pentagon.
It's a fun story, Pentagon 1941.
Are you going to show the storythat we talked about, by the
way?
You want me to?
I really kind of do.

SPEAKER_02 (06:19):
I was hoping you're gonna get, I know we didn't
really even brief that muchabout this, but at least I'll
get there because that's thebest part.

SPEAKER_00 (06:23):
I can get there.
So for for those who know thePentagon, it's five sides,
right?
Five rings, five stories.
So the Pentagon is five ofeverything the A ring, the B
ring, C ring, D ring, E ring,uh, from inside to out.
But it's a five-story structure.
The interesting part in myinvolvement at the Pentagon was

(06:44):
uh from 1995 right up until theattack on uh 9-11, I was in
charge of renovating thebuilding.
So what we did back in thosedays for a company called URS
Grinder, we had a contract tobring more space out of the
basement.
And for those who don't know,five wedges, right?

(07:05):
The three wedges that areclosest to the Potomac River are
a lot lower.
There's a full basement underthree of these wedges.
And it was a nasty space.
You know, in 1941, the Pentagonwas finished.
It was just before the World WarII effort, and this was taking
the old War Department, whichwas across the river in the old
executive office building nextto the White House, and bringing

(07:28):
all five of our militaryagencies over here.
So you've got Army, Navy, AirForce, Marines, and Coast Guard,
the five wedges all in thisbuilding back then, built for 16
million dollars, built in 16months with 41,000 piles under
the building.
And here comes the fun part ofthe story.

(07:50):
Back then, the basement, thethree wedges, uh had a ceiling
height of about the basement hada ceiling height of about 20
feet and half tranks and tanksand troop carriers were all
parked down there on the slab onthe Potomac side.
So when it came time torenovate, the Congress, our U.S.
Congress back in 1993, passed a$1.2 billion budget to renovate

(08:16):
the building.
And of course, you renovate fromthe bottom up.
Now bear in mind the Pentagonhouses 30,000 people 24-7.
And it's uh has to maintain bemaintained.
The operations can't stop.
So how do you renovate thebasement and have and have the
building functional?
So here comes the story that'smost fun.

SPEAKER_02 (08:39):
I was hoping you're gonna say it.

SPEAKER_00 (08:41):
Our goal was to go into the basement, repair the
old slab, basically tear out thebasement slab, and lower that
slab by one meter, three feeteffectively, gaining us enough
space to put a mezzine levelbetween the base the new
basement floor and the existingceiling.

(09:02):
So the way that works, and youcan see the slide to the left,
you we had to uh tear outeverything, lower the grade, uh
pour a new slab, uh jacket thecolumns, and then put the
interstitial space, themezzanine level in.
So we recouped 350,000 squarefeet of space.
And that's a lot of space.
You know, when the Pentagon wasbuilt, it was six million square

(09:24):
feet under roof, you know,conditioned space, six million
square feet, which at the timein 1941 was larger than the
Empire State building.
Empire State was finished in1932, just under six million
square feet.
So the Pentagon at one time wasthe largest office building in
the world, just space underroof.
And here we were adding 350,000square feet.

(09:47):
Here comes the fun story thatRyan really wants me to tell.
So this would go back to about97, 1997.
Uh, we were about to pourconcrete in the in the new
basement slab.
We had concrete trucks lined up,Route 110, probably a dozen
trucks.
And people were down thereputting rebar in and you know,

(10:08):
grating.
We had we had dozers in thebottom.
We were trying to get theconcrete out of the trucks and
into the new slab.
Well, one uh this is again threefeet lower, we're close to the
Potomac River.
It's quicksand down there.
It is nothing but silt loam andit was saturated.
It turned out one of our Deights that was moving dirt and

(10:30):
trying to get out of the way gotstuck in the mud in the area we
were supposed to pour.
So the fun part of this, Iremember his name, Captain
Mullens.
There was a captain who was partof the Corps of Engineer team.
He was in command that day.
And so we could not get this D-8out of the mud.

(10:51):
It kept sinking.
So he made a command decision totake that D-10 over there and
run over the top of the D-8 andsmash it down into the mud.
And after three or four passes,that's what happened.
They laid the rebar over it,poured the concrete, nobody
knows that there's a D-8 downthere.

(11:12):
So um we did that, and monthslater we uh get a call.
Months later we get a call, sixmonths later, in fact, and they
said, Steven, we got a problem.
All the new toilets in thebasement are backing up.
We've got a problem, sewage I'mwrong, running across the floor.

(11:33):
So we camered the line, and itturned out that D eight had been
smashed on top of a 96-inchsteel sewer line.
And there you have it.
So we had to go in, cut the newfloor out in the dead of night,
and send people down withacetylene torches to cut out
these yellow pieces ofcaterpillar, bring them up,

(11:54):
repair the pipe.
Nobody knows.

SPEAKER_02 (11:56):
And this is a sewer line.

SPEAKER_00 (11:57):
This is a 97.

SPEAKER_02 (11:59):
The sewer line of the entire Pentagon.

SPEAKER_00 (12:01):
33,000 people, 24-7.

SPEAKER_02 (12:04):
So a D9?
Would you say it was a D8?
D eight 56,000 pounds?

SPEAKER_00 (12:09):
56,000.
Wow, and it and the D10 is alarger vehicle for sure.
But that was uh that was one ofthose stories that never gets
told uh until now.
Gotcha.

SPEAKER_02 (12:23):
So, all right.
So obviously, how long did howlong did it take for you to
renovate that?

SPEAKER_00 (12:27):
Well, we were right up until 9-11.
Uh, we were in renovation.
We had spent out of the$1.2billion, we'd already spent$750
million, and we weren't out ofthe basement yet.
So I'm I'm on the one hand, Ididn't want to go back to
Congress and explain why, butthen 9-11 happened and and they
threw the kitchen sink in afterthat.

SPEAKER_02 (12:46):
Yeah, they did.
They wanted to recover that,right?
All right, perfect.
You want to talk a little bitabout the Federal Reserve?
Oh.

SPEAKER_00 (12:56):
Yeah, um, Mr.
Powell has money invested hererenovating the building, but the
story I have is very brief.
Back in about uh 2004, uh we hadthe we had the contract to put
security into the FederalReserve.
And part of that task order asarchitects and engineers is to,
you know, figure out the threatsand where they're coming from.

(13:16):
So we actually had to hiresnipers at night to lay down on
the mall, in the on the UnitedStates mall, and see if they
could get a line of sight intoGreenspan's office.
Greenspan was chairman at thetime.
So those kinds of studies helpedus reinforce the windows.
Uh some of the windows wereawning windows that opened and

(13:37):
closed like this, so we had tomake sure that those lasers
couldn't come between the panesof glass, and we bulletproofed
the glass.
So it it's fun for me to watchnow.
We renovated this thing in 2004,and here we are doing it again.

SPEAKER_02 (13:50):
How much was it though?
Hecking O point.

SPEAKER_00 (13:52):
Well, that's about 11 million just to harden the
front.
I think it's 2.2 here.

SPEAKER_02 (13:57):
That's a whole nother level.
I want to be the contractor.

SPEAKER_00 (14:00):
2.2 billion.

SPEAKER_02 (14:01):
Yeah, I want to be the contractor.
All right.
So let's go on to uh let's go onto white cap, which is really
interesting because uh Stevenhad brought something up to us
that uh, as for for those of youthat don't know, um, we actually
received a term sheet for JPMorgan for 87 million, which I'm
gonna bring up to you in alittle bit.
What that means is that we havea kind of a different problem.

(14:21):
Now we have money to spend.
Right.
Now we got to find the right uhland and the right developers
and all the right stuff that fitthe caliber uh and metrics that
we need to follow for uh barcaves.
But this is really kind of neatbecause I had no idea this
existed or was even in yourpipeline.
So please share a little bitabout White Cap.

SPEAKER_00 (14:37):
Yeah, White Cap NPI, this is located on North Padre
Island, basically at the foot ofthe JFK Bridge as you cross in
to uh to North Padre.
So it's in Corpus Christi on thesouth side.
What happened here is that uh uhthere was a bank involved, IBC
Bank had taken the property backin a foreclosure action, and uh

(15:00):
we tore down the Slitterbond,which was a water park, we tore
down a hotel known as uh WavesResort, and then we took a golf
course back.
So we ended up with about 300acres.
After that, we master planned630 homes and built three miles
of canals.
And right now, today, we thishas been going on for four or

(15:23):
five years.
Right now, today, we're comingout of the ground with our first
five prototypes.
So the housing was designed, andeverybody gets uh a waterfront
property and a road front.
So the way we like to think ofthis is everybody gets two front
yards.
They have a front yard for a carand they have another front yard
for a boat.
So you have two front yards,which from a design thesis point

(15:46):
of view drove us to go internalwith the private space.
So you basically have publicspace, public reception space,
your semi-public space on theroad, same deal on the back.
Your private space is anelevator, in some cases
pneumatic elevators, up to theterraces and the bedroom space
and the then the more privatespaces.
But it was a cool concept.

(16:06):
So we have 630 lots, largely 45by 90, some are larger.
And um, the thought that came uptoday is you know, why don't the
barn caves go see it?
Why couldn't that happen?

SPEAKER_02 (16:20):
And they're selling lots.
That was the point.

SPEAKER_00 (16:22):
They're selling lots, and they're selling
islands.
We have 13 bridges that crossover.
So some of what you're seeing inthe upper right uh are a series
of islands.
But wouldn't it be nice to havea paradigm island?

SPEAKER_02 (16:32):
That'd be killer.
That'd be that'd be actuallyreally cool.
I think I'd have to Airbnb outto all my clients, though.
They're like, hey, if I'minvesting, I need to get in and
go have some fun.
So the the takeaway for this,guys, is that the Barn Caves has
really created, I'd say, enoughmomentum and um and it's very
trendy.
So a lot of these types ofprojects are being presented to
us.
Therefore, you know, we'relooking at all kinds of

(16:54):
different locations.
Um, the term sheet, which I'llshare with you guys here down
the road, uh, really wasidentifying four locations uh
for paradigm storage and thebarn caves product.
But I really thought this wasneat because not only has you
already been working on it, butthis is kind of the that goes
with the culture of whatParadigm's trying to create.
And then when you look at thedemand in the data for this type
of product and kind of where theworld's going and where people

(17:15):
are spending their money, thisis uh this is kind of right up
our alley.
So I thought that was great.
Okay, let's talk about the funone.

SPEAKER_00 (17:22):
Yes, it is one of the many fun ones.
One of the many fun.
This is so contemporary andcontemporaneous.
Um white uh the White Cap hasbeen going on for about four
years.
Tierra on the beach is inGalveston, and also about four
years in the making.
It took us three years to getzoning approval to put this uh
mid-rise 10-story uh condobuilding, 63 units, on top of a

(17:47):
two-story parking deck to getout of the storm surge.
So we had many, many technicalrequirements here.
It took us a long time to solvethe drainage and the storm water
and um you know a number ofproblems.
But we did it, and it's underconstruction now.
So it's in Galveston 63 condos.
We've sold about 20 from thelast I heard.

(18:08):
And you see on the right some ofthe renderings and the views
that uh we're offering.
It's it's right on the beach, infact, 75 feet off the water.
So that's uh and the next slideI think shows the construction
portion of this.

SPEAKER_01 (18:21):
Yeah, some here.
Yeah, so you can pop over.
Nope.
It's uh just a little bit air.

SPEAKER_00 (18:25):
There it is.
So uh Ryan actually came outwith uh with Joe and and
participated in our ground bitbreaking back in December.
You know what?

SPEAKER_02 (18:35):
Yeah, and this is important too, guys.
The reason why you we wanted tobring this to your attention is
this is the type of product wewant to see that Steven was
getting involved in.
Obviously, we hired him as oneof our two architects, but we
wanted to go see and not onlysupport what he was doing, but
also see all the network thatkind of went on and kind of all
the people that were associatedto this from the type of
contractor to politicians thatwere supporting this.

(18:56):
And when you're doing somethingof this caliber and size, the
whole city knows about it, andyou really kind of have to get
in and shake hands and kissbabies.
So it was really important uhthat we kind of saw the the the
culture that was created with aproduct like this and how
they're able to get theapprovals.
And it was pretty neat.
And by the way, I I'm gonnachallenge you a little bit on on
the uh sales.
I think you're low.

(19:16):
I think Anastasia the broker,which I follow her, I think she
said that it was like 38% sold.

SPEAKER_00 (19:23):
All right.

SPEAKER_02 (19:23):
It was I I may be wrong.
Joe, will you fact check thatfor me?
Go to Anastasia, go to uh Tierraon the beach Instagram and then
look at Anastasia the broker andsee if she posted anything about
that.
But I think I saw it just a fewdays ago.
I could be wrong, but youthey're selling units on
constantly, it's like the reasonI catch on to it is because my
broker is selling units forparadigm stores like crazy.
So I'm watching all thoseupdates.
I thought it was really prettyneat.

SPEAKER_00 (19:44):
So the statistics count.

SPEAKER_02 (19:45):
Yep.
So the again, the takeaway onthis was just kind of getting to
understand a little bit aboutyou know the background of of
Steve and kind of how uh youknow he gets involved in these
killer deals.
And as you can tell, the barncaves, in my opinion, was kind
of uh, I would say kind of smallapples for you.
Uh, but it's important becausewhen you're looking at it uh
from a perspective of where wewant to take the barn caves, we

(20:07):
are trying to go national.
We want to be in multiplelocations.
You want to bring on a goodarchitect that, believe it or
not, can actually save you moneyon the design and how you
construct these uh buildings.
And so, really, you want to havethe right team, and you're
really even though it may costme a lot more.
This guy's really expensive,just so you know.
So if anybody wants in, justknow you're writing a check.

(20:28):
However, the amount of money hesaved on the design has been
huge.
So, in in theory, or actuallynot in theory, but in facts, if
you were to look at you know, DRHolton Polte homes, they're
basically just stamping thesethings out, right?
They just change the exterior upa little bit, maybe some the uh
some interior walls, make somedifferent layouts, and then they
just go and print these thingsout.
That's really kind of been ourmodel because the beginning of

(20:50):
the barn caves was really set upin a way where we didn't know
which way the market was goingto go.
Because we started this beforethe elections, right?
Two, three years ago.
Really kind of the idea wasthree years ago.
So when we went into modelingthis, it was about hey, if
things got worse, if inflationgot worse, and you know, things
just overall from the economyside got worse, we wanted to be
able to still print these upbecause people need them.

(21:11):
And then we were looking atpublic-private partnerships,
going after maybe somegovernment contracts, um, and
ultimately it's just morphedinto what it is today.
So we really went into this in ain a way to try to take this
into multiple uh uh locationsand and uh spots across the
country.
So we wanted to do it right, andobviously you got to do it right
by hiring the right people.
So, with that said, uh, this isreally neat because this is uh

(21:32):
kind of the whole point.
Let's get into the designfeatures of the barn caves.
So this is what I think everyoneis here for, just because they
want to hear now how the hell isthe barn caves getting so much
traction and so much interest?
And of course, I got to give uha big shout out to my marketing
team.
It's really their uh it's myvision, but then they actually
make it happen better than whatI ever expected.
So shout out to my sales teamand marketing team.

SPEAKER_00 (21:54):
Um let me let me jump in here and give credit
where credit's due.
I really like doing this.
You know, the the the wholethesis here, I think the concept
was originated by Ryan and byRob Sampson over at um uh
Sulberg and Associates.
That's his firm.
So Rob, uh, you're gettingcredit where credit's due here
if you're on.
I think Rob is on.

(22:14):
Okay.
So uh and uh by the way, noproject is too small.
Let me make one comment aboutyou know relative size of
projects.
Yes, we like the big ones, butthe little ones have character
and and sensitivity and texture,and we love doing it.
And from my perspective, I don'tlike designing something that
gets rolled up and sits up on ashelf.

(22:36):
You know, architects get theirjollies when it gets built and
you can point to it and get in acar and go visit your children.
I consider every building I'veever designed to be a child,
they're static, but every time Iget off an airplane, I go check
on my children to see if they'restill there.
And here we are 2,000, maybemore projects later.
Every project counts and getstreated, you know, the same way.

(22:59):
We want them built.

SPEAKER_02 (23:00):
So when we went into the design of this, of course,
and thank you for saying that,because Rob did help me a lot of
the original design.
I went to him and was saying,hey, okay, because just for you
guys, uh, so you know, uh, weare sitting in a paradigm
storage man cave right now.
We have two, you know, three-tonair conditioning, we have the
huge golf simulator over here.
We've kind of man caved thisout, and what we've caught on
to, especially with the culturehere, is how people really

(23:22):
desire going to another placeand having something that's like
living space without paying forthe living space.
And then you could store allyour toys, and you know, people
are buying these in 1031exchange to rent them out for
cash flow.
I mean, the product itself isvery institutionalized, which
I'll share with you guys downthe road.
However, what's happened isknowing that the world's
changing so fast, and just tokind of can make a connection

(23:42):
real quick, if you guys kind ofgo back to like let's just say
2020, the pandemic, like I thinkthis is when it kind of really
started for me.
Things were were shifting sofast in everything, whether it's
politics to you know, income tofinances, to you know, pregnant
money, to you know, this thingis it was just if you the
technology, social media,everything has grown and changed

(24:06):
so fast in the last four years.
I knew that was now the newmomentum.
When you watch like things thatare going on politically, you're
watching, you know, they'rethese they're working seven days
a week.
They don't stop working.
They're having meetings onSaturdays, they're having
meetings on Sundays, they'repushing out bills Sunday night
at seven o'clock.
I mean, it just never stops.
So things are moving so quicklythat I knew that we needed to

(24:29):
have a big focus on technologyin these units because people
are going to want them.
And I'm part of the the Da Loscrew, right?
The health and wellness side ofthings, um, which has circadian
rhythm lighting, uh, hospitalgrade air filtration, uh, uh
water filtration.
And I started really trackinghow they how they acquired
certain companies and really thedata supporting, you know,

(24:50):
people's um they like forexample, that we're in synthetic
lighting, right?
And we all know that this lightblinks really quick.
That actually has, they havethey have studies now that has a
direct effect on vast syntheticlight on, you know, your
digestion system and you know,let's say your melatonin and all
these different things.
So what they try to do is bringin the more synthetic, or not
synthetic, but the circadianrhythm lighting where it's

(25:12):
actually the lighting of the sunand it eliminates a lot of this
uh bad stuff.
And so it was, I know that's alittle nerdy, but I knew that
that's where the world needed togo from.
So uh all the way down to firesuppression with everything
that's gone on with the fires,um, you know, going to steel
building uh methods instead ofstick-built methods, kind of
where the world's going is whatwe try to do is take all of

(25:32):
these things and every aspect ofthe development of barn caves
and and came up with what wecame up with today.
So, with that said, I'm gonnaturn it over to you because I
know you're allowed to talkabout this stuff because I put
it all on your plate.

SPEAKER_00 (25:45):
So this has evolved ever since it originated with
Rob and Ryan.
This has evolved into twoprototypes, two different sizes.
There's a large one that is 40by 90, and when you stack that
on three floors, it's just over10,000 square feet.

SPEAKER_02 (26:00):
Real quick, I don't mean to interrupt.
For for those of you that areeither current clients or going
looking to invest intobarncaves, this is a much larger
uh product.
I think I've shared with most ofyou.
I'm actually planning on doingmultiple floor plans where
people can actually buy theseand plop them down on a lot
anywhere around the country.
So keep going, please.

SPEAKER_00 (26:16):
And that's important, and we'll get to that
in a second.
There's also the smaller onethat is being built in uh in
Lake Havasu City.
That's the 28 feet wide by 72feet.
Now, to Ryan's point, what wehave done as a framing system,
and we're trying to systematizethis so they can basically be
shipped on a trailer and erectedin a single day.

(26:37):
This is the IKEA version of aman cave or a barn cave idea,
and we've we've solved a lot ofproblems in our discussions over
the past many months.
The idea principally is to spanout to out, exterior wall to
exterior wall with all of yourhorizontal floor plates to free
up the space on all threefloors.

(26:57):
Obviously, it has to be freed upon the lower level where the
vehicles and toys are parked,but even above, if the structure
does what it's supposed to do,that gives you maximum
flexibility to change interiorwalls and interior layouts
because the primary structure isspanning out to out in a 28-foot
direction.
Now, to that end, systemizationis is the goal here because

(27:21):
we're doing what 80 some here inin Havasu?

SPEAKER_01 (27:24):
93.

SPEAKER_00 (27:24):
93.
So right away we need 93 ofthese.
So what do we do?
The structural system uh is outto out, but it's also modular.
Every 12 feet there's a column.
The columns are three storiestall, eight inch uh uh square
sections, and the floors arehinged.
The floor beams are hinged, soyou everything ships on a

(27:45):
trailer.
The the horizontal beam clicksup, uh it and the one on the
opposite side clicks up and theybare into a saddle plate, and
it's easier therefore to erect.
It's all about speed andconvenience.
But if the package can ship onthe back of a trailer anywhere
in the country, these things cango up quickly.

SPEAKER_02 (28:05):
So uh the bolt onto that safety.
Yes, safety and constructiondefect issues and all that fun
stuff that goes along with it.

SPEAKER_00 (28:13):
And they're they're mostly steel frames.
You know, the wood, the wooddoesn't need to be there.
The only technical issue we'vehad really has been a
code-related issue becauseyou're not supposed to sleep
where you're keeping cars thathave gasoline in them.

SPEAKER_02 (28:26):
I say it all the time, don't tell anybody.

SPEAKER_00 (28:28):
So uh you know there's some fire issues.
We have to have a one-hour fireseparation between the lower
level and the upper level.
And we think we've satisfiedthat.
We uh we have a system that uhallows for the one-hour uh you
know fire resistance, and wehave some interesting other
features that we can go to uh totalk about some new technology

(28:52):
that we've entered into.
So if you can see the slide onthe left, every 12 feet there's
a column, uh, the panelizedflooring, so that gives you
12-foot flooring sections thatcan be aluminum, they can be
polycarbonate, they can dropinto place to make it uh to make
the ease of construction andspeed of construction um you
know faster and easier.

SPEAKER_02 (29:14):
No, sorry, and just keep in mind, guys, we would the
reason I like the three-storyproduct, we were we were trying
to get more of a high density.
This is here for uh Lake Havaso,we were trying to get more of a
higher density kind of productwhere we could bring down the
cost of homes here.
Uh, but it it kind of turnedinto this.
When you look at some of thesebarn dominiums, I'm sure you
guys know exactly what I'mtalking about.
If you follow stuff on socialmedia or Google it, they have

(29:36):
the technology and how to buildthese things are so impressive
that it's a it's a it's some ofthe most beautiful homes in the
world, I think, are built out ofsteel buildings.
I mean, it's unbelievable.
So um, you know, and it'strendy, you got you know, NFL
players buying stuff andbuilding stuff.
I mean, it's wild.
But what we wanted to do becausewe're currently finishing uh
another three-story product,right?

(29:57):
So we have the San Antonioproject.
I mean, we had uh a three-storyproduct, which is a town home,
three stories, just like this,but they had shared walls and
had a pitched roof.
And that thing sold like crazy.
We started before the pandemicand ended in the middle of the
pandemic, so the market was hot.
It did real well.
So what a blessing there.
But uh, we were we're familiarwith three-story products and we
also familiar on how to makepeople feel comfortable, no

(30:18):
matter what age you are, to beable to migrate around your home
and not make it feel like it's a6,000 square foot one story.
You can kind of get around allof your your space.
And I'll kind of add you know,one more thing, and I'll give it
back to give you back to Mike.
I when I had I moved uh I movedjust a little quick story.
So I moved my headquarters uhout of Southern California into
Nashville.
Uh we I officially moved inearly 2021.

(30:40):
We started migrating in 2020.
And um when we made that move,uh, I realized just kind of how
the barn dominion movement justbecame so big on the East Coast.
And for those of you that knowthis, I also manage a$100
million debt fund.
So again, my background on thelending side, uh, I manage a
debt fund for hard money lounge,ground-up construction, what

(31:02):
have you.
And uh, and so I really pickedup a lot of originations for
people that are building builduh barn dominions.
And at the time I didn't reallyknow what it was, but I'm like,
I don't know if I can financethese things.
But what you wanted to do isconfirm through insurance if you
can get a regular homeowner'sinsurance, a standard policy
with the right things, right?
And if you can, they're gonnainsure that house.
So then I can lend on it, right?

(31:22):
And then you can look at it froma conventional side and what
have you.
So it was just, it was just itwas seamless.
But but but concurrently, when Imoved my headquarters to
Nashville, obviously the this isbefore the office space really
got hit hard from like a balancesheet we fakes.
And uh, and so we all the ideawas to kind of go out there and
kind of get a seal as where Iwant to open an office.

(31:44):
I rented a little apartmentdowntown.
I was on Broadway at Whole Foodsat the bottom of my my my unit,
actually 1200 Broadway.
If anybody wants to look it up,the rent apartments.
And uh, and what I did was is Ithey have a parking structure,
it's five stories.
And I went to the very first uhstory for the parking structure
and got a parking spot as closeas I could to the elevator.
And I I when I would go up theelevator, I'd take maybe five,

(32:06):
six steps off the elevator andI'm right into my unit and I'm
dropping all my bags andeverything I have right there on
the on the island for thekitchen.
And I it made me feel like Iwasn't inside a big high-rise.
It made me feel like I wasliterally my little home, you
know.
And I wanted to create thatfeeling here where, you know,
yeah, you're buying athree-story property, it's it's

(32:26):
fun, it's great.
But living in something likethat is also something you have
to consider.
Like, would you actually enjoyit?
So we try to build certainthings and and and certain
features of the property to makeyou feel more comfortable as if
it's a regular standard bighome, um, but without having to
have a big, big home, you know,cheaper to clean, easier to
maintain and run and what haveyou.
But anyway, so that's just gonnagive you an idea.

(32:47):
We'll talk about the elevatorhere in a second.
But that was one thing we wantedto do was implement some of
those experiences to bring thatkind of more uh comfortable
feeling to the space.

SPEAKER_00 (32:57):
So so there's a history to these kinds of
efforts, you know, tosystematize housing.
There are lots of different waysto do it.
And uh I reach back in my memoryin the late 60s to Operation
Breakthrough when uh thenPresident Johnson, you know,
authorized a lot of money to beinvested in how do you build
housing more cheaply.
One of those theses was you turnthe studs flat, so you flat stud

(33:20):
the walls.
And then you recall Sears andRoebuck took it on, and for
$5,000 you could order a housefrom Sears and Roebuck, but it
was a panelized house as cheaplybuilt as you could possibly
build anything.
Uh storage units are better toopen those.
Well, U.S.
plywood and uh you know all allof those organizations back then
got involved.

(33:40):
I mean they wanted to build morehousing as cheaply as possible.
But then then it evolves.
You know, that evolved into thethe um yeah, the trailers, the
basic uh hate I hate to callthem trailers.
That's a bad bad word.

SPEAKER_02 (33:54):
But that's how they get there.

SPEAKER_00 (33:55):
Manufactured housing.
So then what happened uh in the70s is the National Manufactured
Housing Association showed up,and now you could haul your
house, get it pre-assembled in afactory and haul your house.
So this this concept of a of asystematized metal structure
that is flexible and easy tobuild is the next generation of

(34:16):
that concept.
And this one happens to includeall of your toys and all of your
um you know pleasure items arein one structure.
And it's uh because it's modularand because it's narrow in
width, it can be built quicklyand maybe even shipped on two or
three trucks the same day and atleast staged on site.

(34:39):
And then there's new technology.
You know, uh in the 80s I hadthe pleasure of running the
National Institute of BuildingSciences, and one of our
missions was take something newhe just told me now.
I didn't know in 1980 to 85.
So one of our missions was youyou take new technology ideas
and you transfer them intoconstruction.
So that was during the time whenplastic pipe PVC was being dealt

(35:02):
with, and you know, all thepeople who did not uh all the
people in the in the ironindustry and the metal pipe
industry who didn't want plasticpipe were struggling politically
against it.
But technology transfer happensand it's happening even faster
today.
There's so much new that'scoming into the marketplace, and
people are getting new patentsto adopt something or adapt

(35:24):
something even out of NASA andtry to bring it into
construction.
So this is where we're going.
Why don't we look at some of thelinks here that show Yeah, I
don't know.

SPEAKER_02 (35:34):
For whatever reason, I can't click on it.
Uh whereas I tried earlier, thesolar panels.

SPEAKER_00 (35:38):
Just talk on it and then we'll fix it for that.
So you know, this whole idea ofphotovoltaics, there are good
things and bad things.
One of the worst things forarchitects and engineers about
photovoltaics is you have tohave a rack that sits on a roof
or sits on a horizontal surface,or if you have a slope surface,
you have to figure out the uhthe right angles for the best

(35:59):
you know solar gain into thephotovoltaics.
So we've been what we've beenwaiting for the day when uh a
photovoltaic mat uh can beproduced, like a TPO roof that
where you roll it out and itwill capture the electricity and
do the same thing that thephotovoltaics.
Well, now it exists.
And one of the links we weregoing to show you is is how it

(36:23):
exists, how it gets used.
It can even be glued to thevertical walls on the outside of
the structures and collect solarradiation.
So there's that as a a new a newtechnology that has a presence
and a place in the barn caves.
Then we go to the issue of fireprotection that we touched on

(36:43):
earlier.
There are new robotic sprinklersystems that uh like this a lot,
by the way.

SPEAKER_02 (36:49):
I'm gonna cut you off, but this is impressive.

SPEAKER_00 (36:52):
So and it's been tested in various uh other
countries.
Uh it's it's new here, but youhave a robot attached to the
ceiling.
It's basically a cannon and it'son a it's on a sensor.
And if something is happening inthe space, if a fire is going on
in your in your toy roomdownstairs, it finds it, it
comes around, and it shoots itout.

(37:13):
And if you have three or four ofthose in your barn cave on the
lower level, even on the upperlevels, uh, it saves you the
price of of sprinklering theentire structure.
So the idea is to save money,but the idea is to is to take a
technology that is a robotictechnology and put it in the
building.
So it's kind of cool.

SPEAKER_02 (37:34):
And even a deeper dive, you know, that's kind of a
construction, let's just say aninsurance play, you know,
because let's say, for example,you have usually one fire
sprinkler were to pop, all ofthem count.
So therefore it's damaging theentire property.
That's right.
If you have if a fire starts ina corner of a property or in a
home and you have this cannonshoot me down on it, you're a

(37:55):
couple things happen.
Correct me if I'm wrong.
The water pressure stays focusedon one direct one spot.
So if you're gonna get moreflow, that's gonna be directed
directly at that uh fire.
And then obviously uh alarms andit notifies everybody in the
house and you know, the uh firedepartment, what have you, and
that can keep that that uh makeeither put the fire out,
suppress it, give you more timeto get out, the list goes on.

(38:17):
But it also, if you can get thefire out, whatever needs to be
fixed, just the damage of thatlocation.
You know, your insurancepremium, not your premium, but
your uh uh what do you call itwhen you have to make a claim,
there's much less.
And so insurance companies aregoing, okay, we like this
technology because that's gonnasave us money at the end of the
day.

SPEAKER_00 (38:36):
And there's a lot to say about that in our next
series of slides.
But other than other than therobotic uh, you know, canon,
there's also a whole new seriesof materials that have come into
play.
Polycarbonates are nowtranslucent or even transparent.
And what we've what we've workedinto the idea here with the

(38:57):
Barncape is to have floor panelsuh that are translucent in the
one-hour fire floor.
So we've solved those problems.
So you can stand in your livingroom with cocktails and
entertaining your guests andlook down and talk about your
toys.
So, or at least keep an eye onthem so that they don't.

SPEAKER_02 (39:14):
For those of you that know me, they're like, of
course, Ryan wanted somethinglike that in there.
Of course.
Okay, if the cost doesn't go upand it's it's uh something
everyone can talk about too,it's a good point.

SPEAKER_00 (39:22):
And I'm sure everybody's been to an airport
where you're walking across aglass bridge or a glass floor,
so it's not unlike that.
But to integrate it into atleast the lower level and the
upper level too.
You these have elevators, so youyou come up in the elevator, you
step off into the living area,or you step off into the bedroom
level.
You can look down and see whereyou are, and you know where you

(39:43):
are.
But it's a cool technology thatI think has a place in the barn.
100%.
Talk a little bit about thepaneling.
Oh, yeah.
So the paneling that we'vethere's options there, lots of
options.

SPEAKER_02 (39:54):
So, in essence, guys, this is buttoning it up,
right?
So we talked about thestructural family.
I mean, just different down abit.
We talked about the the uh thestructural component, right?
What we're talking about now isis closing it in all the all the
out exterior walls.

SPEAKER_00 (40:06):
Yep.
So uh we've had good experiencewith several uh different
systems.
One of those systems is calledKingspan.
And the Kingspan product isself-insulated or it comes it
comes totally insulated in inthree-inch, four-inch,
five-inch, six-inch panels,depending on what climate you're
in and what your energy codesays.
But they they go up quickly,they're full height from ground

(40:28):
all the way up to to where theroof bears.
And again, speed ofconstruction, energy
conservation, buttoning up thebuilding.
There are other uh systems.
A lot of them are like hardyplank, a lot of them are hardy
panel.
Uh we've had experience recentlywith what's called Michiha.
Nichiha sounds Japanese and it'sa Japanese name, but it's

(40:50):
manufactured in Georgia.
So it is a cementitious, it's acementitious siding material,
not unlike uh hardy plank, onlya variety of different shapes
and colors and more textures.
So depending on where you areand what what image you want for
your barn cake, there areoptions.

SPEAKER_02 (41:07):
You change colors, you do all you get all your
walls basically pre-built.
You know, so ultimately, youknow, you can see where you
could save money overall.
It may spawn a little bit moremoney in materials, but you can
save money overall because whileyou're doing your horizontal
improvements, you can have thesethings being built.
So by the time your slab isdown, you're just you're putting
these things together.
And that's really kind of awhole entire point is how can we
cut costs, minimize trades,minimize risk, focus on costs.

(41:31):
The thing that I love about theparadigm storage is I talk about
it all the time.
So for those of you that haveheard me say this, forgive me, I
just like to talk about it.
But you know, my paradigmstorage that we're sitting in,
it's uh 225,000 square feet, 208units.
We have like, I don't know, somewhat we have like 500 air
conditioning in the wild amountof numbers.
We give you guys it'severything, there's a lot of
everything.
And I believe when you got downto it, it was like 58,622

(41:54):
pieces.
It's something of that nature.
That's including all the screwsand the paneling.
When you look at it from thatperspective, and you can get
down to those types of numbers,you know your product so well,
you can really narrow down yourcosts, right?
You can hedge against certainproblems, you can call different
manufacturers, you can startworking certain deals, and you
can start value engineering thisthing over and over and it never

(42:14):
ends, by the way.
Uh, but that is something thatwe wanted to try to implement is
how can we mitigate risk?
How can we make sure we knowexactly what we're getting
ourselves into?
If we know exactly the material,how much the whole thing weighs,
right?
How much steel do we need?
All of this stuff that'srequired to be a pro a really
proactive and well, you know, awell-put-together operator, I
think would need.

(42:35):
We wanted to implement thosepractices, and the barn cave
really helped us get to that aswell.
So, what you guys see here toois just uh our groundbreaking
event.
Mr.
Steven was here with us as wellfor that, which was amazing.
We had a lot of support, a lotof existing clients, new
clients.
Uh, this 18 acres where the barncage is now is right next to
this project that we're sittingin paradigm storage.

(42:56):
So we own, what is it, like 30something acres over here now,
34 acres, I believe.
So we own a bunch of acreageover here.
And then right across the way,which I don't think I have it on
there.
No, I don't.
But right across the way is uhthe airport, which they're
talking about expanding now.
Uh in fact, we have beenapproached and had talked to
them about possibly buildingtheir airplane hangers because

(43:17):
they love the man cave stuff andthat goes real far and we can
help them there.
Um, and then uh and then on theother side you have 730,000
square feet of retail, whichincludes a Walmart, Dillard's,
some restaurants.
There's a new Buffalo Wild Wingsgoing in, movie theaters.
It's it's kind of a new up andcoming thing.
They've they've had someheadwinds uh when it came to
2008 when the project wasfinished, and then also uh uh

(43:39):
with the pandemic, it was reallyhard, especially with this being
so heavy in retirement.
It's taken a little bit of timeto pick back up, but it has, and
uh, we're seeing a lot ofgrowth.
So that's always amazing.
So, do you want to add anythingbefore I dive in?

SPEAKER_00 (43:50):
No, dive in.

SPEAKER_02 (43:51):
Okay, so here goes.
So I got the mic now for alittle bit.
Okay, guys, what you see on thisslide.
I know some of you are not uhable to look at your um uh
screen or if you're on a phone,sometimes it's really small.
I'll kind of walk you throughthis.
What you see on the left-handside, we circled this up with
our uh current investor thanclients.
So we have about, I think, closeto about 400 clients now on our
platform.
Uh more retail uh investors,accredited and non-accredited.

(44:14):
We do open, we do have uh managetwo uh public mini IPO funds
called reggaes, which means wecan uh take in non-accredited
capital.
With that said, the reason forthat is because we wanted to be
able to build something of valueand uh and get people some good
returns.
But knowing that if we can getto a certain level, raising
equity capital, we can go to goto JP Morton, go to a lot of

(44:36):
more institutional banks, showthem what it is we're doing, get
into the weeds and how wecreated it.
Obviously, having Steven andSelberg tied to this, their
background, their track recordreally makes allows these larger
family offices and institutionsto make decisions.
And then when you get into theweeds on how we're building it,
how we plan on taking this todifferent uh locations
throughout the country.
Um, and then we have a trackrecord in building steel

(44:59):
buildings, you know, all of thatgoes a long way.
So they were able to offer us an$87 million line.
Mike, my CEO, is on here andhe's smiling and laughing at the
same time because he's trying toget that number like$300
million.
And I'm telling Mike, hey, holdon, like slow down.
I gotta go buy some propertiesfirst.
We get to$300 million.
Um, but that tells you there's alot of potential.
On the bottom here, which isgonna be really hard if you're
on a phone to see, uh, they theyhave a mandate for us to uh

(45:22):
develop uh three more paradigmstorage projects, just like
we're in now, and then one morebarn cave.
So two sites, uh Lake of theOzarks, and then one in
Nashville.
I'm I'm strategically looking ata place that's out towards um
old hickory.
If any of you guys knowNashville, I'm gonna be in Old
Hickory.
Uh, there's a lot of growthgoing on.
You could take the lake down toBroadway, it's a pretty amazing

(45:43):
lake.
Uh, and then another one inKnoxville.
I'm looking at um uh LakeNorris.
And I travel all around and I'vebeen to these lakes and really
just throwing up it.
Um, there's some additional datahere.
Uh, for those of you that doknow or may not know, there is a
retail component to the barncaves.
We have our phase one, which isactually a 32,000 square foot
gym, uh, real modernized.
What you see behind us is allthe latest and greatest

(46:05):
technology, even in health andwellness.
And what we want to do is fill agap wearing a kind of a
different hat of uh thedeficiencies of gyms and the
culture and what they've createdhere currently in the city.
We felt is just not up to par,especially for the people who
travel here and are looking forjust start focusing on health
and wellness.
I don't know about you, we'rejust talking about this earlier.
I'm spending more money on myhealth, and you know, kind of

(46:26):
with everything that happenedjust in the pandemic, I think a
lot of physicians are tellingtheir patients go back to eating
clean and working out, you know,not taking so many pills, right?
So um I see there's an uptickthere, the data supports it.
It's all showing here as far asthe data.
Um, anytime you had uh, youknow, when you have uh financial
hardship, you have moredivorces.
We track that unfortunately, butfortunately.
Um, a lot of times you'll seealcohol sales go up.

(46:48):
You also see gym memberships goup.
So as the economy usually getsyou know worse, gym memberships
increase and and uh alcoholsales increase.
So um you'll see some of thosepractices kind of hedging
against risk based on how we'restructuring this.
Uh, but that's one of the thingsthat you know I want you guys to
kind of know we've implemented ahealth and wellness component to

(47:09):
this.
And here it is.
Um, this is there's two thingshere on the left-hand side here,
guys.
Um this is a newsletter, uh, anewspaper here.
It's called the News Herald.
And there's two articles, andthis is really important.
One, it talks about our ourproject, the 18 acres and barn
cairs, which is great.
We got it in the paper, we'vebeen in the paper a couple of
times, and so we're we feelhonored.

(47:30):
The other one is is the right,and it's gonna be hard to see
here, and I wish I could open,maybe I can zoom in.
On the acreage at 623 acres thatjust sold, which is literally
two left-handed rock throws awayfrom me.
630 acres just sold to anotherlarge residential developer out
here, and then he split that offand sold it to a guy who is
developing North PointViewpoint.

(47:51):
And I don't recall exactly howmany lots are there, but it's
pretty much 90% complete,built-in, sold.
And I think there's 300 or 400homes over there.
And right to the west of him, orsorry, go to the uh north of
him, he bought another 300 acresof that 623.
So you have two of the largesthome builders now that just
bought 630 acres right behindthe mall, right behind Walmart.

(48:11):
There's been all that retail.
And uh, we're we're guessingthere's gonna be close to about
3,000 units, uh, what a blendbetween residential, single
family, and apartments, alongwith maybe some other schools
and so forth.
Maybe you put pushed over here.
So I'll give you guys an idea ofthe growth corridor of this
area.
So, us being, you know, kind ofon the forefront of developing
in the space, you have to comeand they're gonna improve some

(48:34):
streets, but you have toactually go down this street
right in front of ParadigmStorage and the Barn Caves to
get to the site.
Um, so it's uh it it just showsthat we were kind of you know on
the on the we we forecastedwhere the market was going, we
played our cards right, and uhwe struck a really good deal
moving forward.
Right here, what you'll see onthe right hand side, uh kind of

(48:54):
getting for you uh aren't uharen't here, can't look your
screen, I'll walk you throughit.
On the right hand side, we haveslides that are showing uh
basically it's a two-storybuilding.
But when you come off thestreet, the building is built
into the hill, if you will.
So we retain and we go downbasically one floor.
And so it's ultimately like it'sactually like a two and a half
stories.
And uh the very first floor youcome in, and we actually have a

(49:17):
parking structure, which youdon't show here, but there's a
parking structure that'sassociated to this.
And you kind of go down andaround, it's the main entrance
as well into the into the barncave.
So you have a glorious gate andall this rock.
And you get if for those of youthat know me, you know I'll go
all out.
But uh, you know, you canactually go in and park
underneath into the parkingstructure, get away from the
sun.
Um, and then a lot of the uh theresident uh owners as well can

(49:40):
go in and and come into theparking structure, go into the
gym because the gym isultimately the community center
to the residential.
And I'll I don't want to go toofar into it how I came up with
the idea because that's a wholeother conversation.

SPEAKER_00 (49:51):
Let me let me talk a little bit about the gym.
Um coincidentally, we just gotthe drawings finished and got
the permit sets in this morning.
So uh we're done with the designand it will will soon be
permitted.
And I wanted to say a specialthanks to the team at place, you
know, Laura and Chin and Trooptiand Devin and all of those of

(50:11):
you who were dis who wereinvolved in the design.
Uh it looks great and and it'sit's gonna be fantastic.

SPEAKER_02 (50:18):
Well, it's uh I I have to agree.
I'm gonna give you guys ashout-out too, because I keep
changing things.
You do.
Yeah, but I know everybody elsedoes.
I'm not nearly as bad, I think.
Just tell me.
Just lie to me.

unknown (50:29):
All right.

SPEAKER_02 (50:30):
So the the other part was is I uh a lot of people
are on this that know what we'redoing here, but we're actually
trying to hang cars in themiddle.
A lot of people don't know this,but it's a marketing thing for
us and it generates cash flow.
So we can hang cars on a sled inessence, right over the main.
And when you go inside, there'sthis big opening in the center
of the of the first floor.
Now, mind you, it goes back downinto a second floor, you have

(50:52):
more weights and so forth downthere.
We're working on getting one ofConnor McGregor's actual um uh
uh octagons and put it rightdown in the middle, and we have
a car that goes above it, right?
And then you have all your turfand all your TRX stuff, what
have you.
But we can put other cars upthere where like you have the
dealerships are trying to sellcars, they would pay us a
marketing fee to put it onthere.

(51:12):
So everyone's like, Oh, you'reputting a Lambo up there.
I'm like, no, I just use thatfor marketing.
That was a great marketing.
Our our podcast went viral, butthat was the point.
Ultimately, there's ways tocreate income.
And so I went to them and said,guys, I want to be able to hang
a car from the ceiling.
They're like, wait, what?
I'm like, yeah, right here Iwant to hang a car and I need
you to figure out how to do it.
And they did it, and that waskiller.
So I really appreciate that.

(51:32):
But that was one of the funnykind of conversations.
He had to kind of mic check me afew times.
Wait, said, Wait, what, wait,what?
Did what do you want to do?
So it's pretty funny, but uh,that was pretty neat.
So um, all right, moving forwardhere, guys.
Um, I thought this is kind ofneat.
Uh, really is kind of the futureof paradigm, right?
We talked a little bit about youknow the the$87 million line of
credit, kind of the future, youknow, projects.

(51:54):
I'm gonna go ahead and turn itover to Steven because he
actually came to me with areally good idea.
And really, the what was nice isthat when we went into let me
give a quick background.
When we went into expandingparadigm back in 2017, then we
launched the expansion in 18 tohave this platform where you can
go online and you can invest inmultiple projects.

(52:15):
The goal was to bring on otherdevelopers very similar to,
let's say, CrowdStreet, uh,which is one of what we would, I
would say competitors, but notcompetitors, but they they have
a marketplace that investors canlog in, create your own login,
and they can invest their IRAsor what have you into all these
different real estatedevelopments.
When you look at wealthmanagement practices, a lot of
wealth managers, especiallyduring inflation and during

(52:36):
certain times in the economy,people start leaning towards
real estate.
And when you when you arestarting to worry about your
money, typically people takeback their money and they want
to manage their own money again.
They don't want to deal withwealth managers and fees.
And you're seeing a huge uptickon that.
Simply think about you know,Wall Street to Main Street,
you're seeing a huge shiftthere.
So it goes the only way down tothe family, right?

(52:57):
So what happened was is wewanted to create a marketplace
to allow all these people acrossthe world, really, because we
can actually go abroad, toinvest into US real estate.
And then we would handpick,underwrite, and choose which
projects were to go onto theplatform.
And based on our marketingtechniques, strategy, and our
target market, we would be ableto build the awareness based on
that target.

(53:18):
So that was kind of funnybecause we kind of steered away
from that and during thepandemic because we had a lot of
offices and other retailactually on the platform.
We pulled that back and said,you know what, why don't we just
do our own projects?
And that's how we ended up kindof getting to where we are
today.
So with that said, Thank you.

SPEAKER_00 (53:35):
Well, um, for the last year, Ryan and I have been
talking, and you know, Paradigmand Place have been partnered up
on a variety of differentprojects.
And the notion and you know, thenotion of I evolved out of a
conversation.
Why isn't the investmentplatform broader?
Why aren't there more uhinvestment opportunities on the
platform all over the country?

(53:57):
So we started thinking about youknow all of the initiatives that
come to us at place, and thereare many, and then all of the
initiatives and andopportunities that come to
paradigm in other locations.
So and we have a few of thosewe're gonna we're gonna put out
and discuss.
And why not have multipleprojects on the investment

(54:17):
platform that people can targettheir investments into?
So that's exactly what this nextpart is about.
And here we are.
This is in Memphis, Tennessee.
I'm gonna say thank you toPhilip Wonkey on the place staff
for uh his efforts to put theslides together and and design
this thing.
We have uh approximately 230apartments that will go in uh

(54:39):
eventually to a property onWinchester Street in Memphis,
Tennessee.
It's an existing Section 8housing project that needs to be
torn down.
So we're gonna scrape the site,save the trees, and uh and
produce this three-story walk-upuh rather contemporary product,
uh still affordable housing,still workforce housing.

(55:00):
Some of can some of it can beJ1, you know, visa housing.
But uh Memphis needs this.
And they're they're cooperating.

SPEAKER_02 (55:08):
And hence uh you you heard the the key word was
affordable housing.
So therefore we have to beaffordable in building it.
And that hence more of how wewere approaching the barncaves,
too.
This is one of my favorites, butI'm gonna let you talk about it
because you really spent a lotof time on this.
I threw some ideas out there,and you came to me with this
monstrosity.

SPEAKER_00 (55:27):
Well, uh, right here in Havasu.
You you better describe how yougot a hold of the land because I
can't I can't go there.

SPEAKER_02 (55:33):
I can't say it just yet.
It'll leak out though, Ipromise.

SPEAKER_00 (55:36):
So this is a property in Havasu near near the
mall.
Okay.
So they're two parcels.
Uh I think it adds up to what,13 acres, eight and five?
Eight and five.
Yep.
So uh the idea was to put uh anapartment complex on top of a
podium deck, park it underneath,and according to the codes, you
can go as high as five storieson a concrete podium deck when

(55:59):
you're wood framed, as long asyou sprinkle everything,
including closets and toiletrooms, et cetera, et cetera.
But what a great view from thatproperty up at the pool deck
looking out at the lake and atthe river.
So it has uh an opportunity.
There's an opportunity sittingright here with retail across
the street on the smaller pieceon the five-acre piece.

(56:21):
So it's self-sustaining in thesense that we uh we can walk
across a bridge from the podiumdeck to the second level of the
retail space, go to dinner, goget your coffee, go get your
nails done.
But it's a it's a two-partproject, mixed use, both both
retail and commercial andresidential.

(56:42):
But the parking on theresidential side is underneath,
and the parking on the retailside is out front, as in a
normal two-story retail space.
So it's here.
It's one of those investmentopportunities that is now on the
platform.

SPEAKER_02 (56:55):
Not quite yet.
Okay, all right.
We're just gonna do a little bitmore numbers and then we'll get
it up on the platform.
But this is actually somethingwe're pretty knee deep in, um,
or something similar like this,somewhere close.
So if it's not going to be onthis piece of land, it's gonna
be on something right next toit.
So ultimately, what we did is webacked into the demand, what the
cost for rents would be, wherepeople are coming from,

(57:16):
workforce, all the things thatyou need to uh look at when
you're underwriting any type ofuh apartments.
And obviously, you know whatwe're doing in San Antonio.
So uh this was really kind ofthe idea.
We love this, and and weactually met with the city,
believe it or not, and the cityreally liked uh this project.
Uh so that kind of opened updoors for us going, well,
they're open to it.
This is something we may want tocontinue to look down no matter

(57:37):
what.
Uh we've already spent money.
So I think it's really importantwe continue to move down that
road when we see the demand forit.
Okay.
Um let's move over to this.
This is pretty cool.
This is this is a pet projectfor Stephen, and then I'll I'll
close the gap on someone else.

SPEAKER_00 (57:50):
Yeah, this uh this goes back a little ways, and
this was you know, before I metRyan and before I worked with
place architects.
Back in uh 2008, the uh the cityof Houston and and Texas was
inundated by a couple ofhurricanes.
But in September of 2008, ahurricane named Ike came came
ashore in Galveston and wipedout uh most of the private

(58:15):
single-family residences up anddown Galveston Island.
It was devastating.
Um I had a building underconstruction then called Diamond
Beach Resort, and we were fivefloors all concrete construction
coming up out of the sand whenthe hurricane came through.
So as soon as the National Guardwould let me back on the island,
I ran down there to check on mybuilding.

(58:37):
And thankfully, it did exactlylike it was designed to do.
The storm surge came in throughthe building, right through the
building, all the way in inland,about a mile, and then came back
out, and then came back in asecond.
So it flowed through thebuilding.
Just flows through the buildingbecause that's why you elevate
these things.
So Diamond Beach survived anddid well, and I was very

(58:59):
pleased.
But the single family residencesup and down the island were
wiped by the room.
Is Tierra built that way?
Tierra, yes, Tierra is builtexactly that way.
We talked a little bit about it.
We're above both both levels ofthe parking garage, above sea
level.

SPEAKER_02 (59:11):
Because what's that little what's in between the
street and the building?
How much how there's been thatflows through that too, right?

SPEAKER_00 (59:18):
Yeah, yes, there's a uh the ditch, yeah, the text.
On the north side of thebuilding, so the fire department
can get there.
It's it's designed to to notonly survive, but to perform
well in a hurricane.
We have we have emergency powergenerators, people can stay
there even though you're told togo.
I mean, you're safe.

(59:38):
The storm surge, if it happens,comes in and out.
So here, the hurricane houseconcept is uh an idea that was
that originated in 2008.

SPEAKER_02 (59:47):
And real quick, just so you know, when he when we did
a FaceTime, he had to show methis thing.
It was like our first FaceTime.
He's like, check out this house.
And I was like, what is thisthing, by the way?
So for those of you that areable to say it, you're gonna say
think the same thing I thoughtit thought, but once you
actually got into it, it waspretty cool.

SPEAKER_00 (01:00:03):
So you know, the thing about insurance companies
is even if you're able to getinsurance for floods and
disasters along the beach, thesadness is you get enough money
to rebuild exactly what you hadthe first time.
There's no innovation, there'sno there's no thought to make it
bigger, better, you know, moresecure.

(01:00:24):
You end up having to do it overand over and over again, and
insurance companies are payingout over and over and over
again.
So this idea was born from thehurricane, Hurricane Ike.
It's a platform, concreteplatform on stilts, on on
Concrete piles and uh it it's ona it's on a basic uh track, a

(01:00:46):
circular track embedded in theconcrete.
So it's a dynamic shape for thetwo-level house, still
approximately 2,800 square feet.
And the neat thing about this isit's designed to move with the
wind on a polycarbonate rail anda series of roller coaster

(01:01:06):
attachments, basically.
You'll see it rotate here in asecond.
So when you're told to leave,you can leave.
You can leave, but you basicallypull the cotter pin and let your
house rotate on the platformcoming into the wind so that
there is less damage.
You still get the storm surgecoming in and out underneath,
but the house rotates anddoesn't blow away.

(01:01:29):
That's the notion here.

SPEAKER_02 (01:01:31):
Yep.
And so remember when you showthat to me the first time like
that it's actually kind of cool.
Especially in certain areas,like where where was that other
one that uh the levees brokethere and New Orleans.
Yeah, New Orleans.
That was rough.
That was your friends out there.
That was a lot harder to hearwhat happens.

SPEAKER_00 (01:01:47):
That was kind of like So I'm I'm looking to have
a demonstration of this.
We need to build a prototype anddemonstrate how it works.
But you know, in in a causticenvironment like along the coast
where there's lots of salt inthe air and in the water, uh
most of what is shown here ispolycarbonate.
The rail system would bepolycarbonate, the the siding
can be either Nietzsche Ha orsome cementitious material, but

(01:02:09):
the metal frame is internal, itcan be an aluminum frame, but
most of the component parts andthe moving parts would be
polycarbonate.

SPEAKER_02 (01:02:16):
Perfect.
On to the next guys.
And by the way, we're almostdone, so hang in there.
Okay.
So this was kind of nice.
Um, we've been our marketing hasbeen so um effective that our
CRM has just gotten bigger,bigger, deeper and deeper.
And what we're catching is thatpeople just have this

(01:02:37):
diversification mindset rightnow, as they should.
And we are continuing to seeissues um from operators trying
to find debt and equity, really.
Not just debt, but equity.
And debt obviously has been anissue because cost of uh
construction is high, uh,interest rate, cost of capital
is high.
Uh, equity investors are kind ofholding back, kind of waiting to

(01:02:58):
see how the market's gonna do.
I think most people believewe're on a tailwind here.
Um, and so we've been presentedby I I couldn't tell you, I
would say maybe 30 deals a yearthat I think actually have legs
where we will put up on ourplatform and start building
awareness with typically FamilyOffice or allow our investors to
get involved too as well.
So this is a project that uhthat Stephen's been working on.

(01:03:21):
We have been working on figuringout a way to get it onto the
platform.
And uh I did mention today onsocial media that I will be
going to Dubai.
I have been involved in a familyoffice uh network in Europe for
many years.
In fact, prior to the pandemic,you know, the pandemic it kind
of slowed down a little bit, butthey offered me to come speak in
Abu Dhabi.
Uh, I will be out there in thebeginning of November.

(01:03:43):
And so a lot of these investorsthat are abroad love U.S.
real estate.
And uh, we have a history ofpulling money from family
offices out of Monaco into oneof our funds here in the US and
deploying it and then returningcapital.
So we have uh we have the rightcouncil and the right vehicles.
So we're gonna be goingbasically worldwide to build uh

(01:04:03):
a um uh let's just call itawareness of our platform as we
continue to grow.
And this is gonna be one of thebeacons, if you will, that some
of our uh investors can look at.
So if you don't want to talk alittle bit about this, this is
impressive.
This is the reason I like it somuch is because of all the
retail, and you have larger, youknow, tenants that have
consistent cash flow, and that'swhat institutions want, and

(01:04:23):
that's what banks want, afamily, they want to see less
risk.
How can you use biginstitutional practices, break
down the risk, because they'rewriting big checks?

SPEAKER_00 (01:04:32):
This is cool.
And this is again in Galveston,and I want to give a shout out,
I guess, to the owner who'sprobably on with me.
Uh Mohammed Eldoui, if you'rethere.
Uh, thank you for being here.
I'm gonna spend a little time onthis one.
15 acres and 1.4 million squarefeet of future space in five
separate buildings.

SPEAKER_02 (01:04:51):
And by the way, this is across from Tierra.

SPEAKER_00 (01:04:53):
This is across from Tierra and Diamond Beach.
So this is all in the samevicinity.
This happens to be on the northside of Seawall Boulevard, so
it's not subject to some of thestorm and flood conditions as
the others.
So there's less risk here andtherefore less approvals that I
have to go through.
I don't I don't need the I don'tneed the Texas General Land
Office or the beachfront folkson this one.

(01:05:15):
So it's a little easier, butstill not easy.
We just had to get FAA clearanceto go to 155 feet.
We did that.
Uh and it's a good thing becausethe the crane across the street
where we're building tier is 220feet.
So I'm just happy that they theysaid, okay, 155 is what you can
do.
And I thought, cool.
You know, they actually calledme and said, How how tall is
that crane?
I said, 100 or 220 feet.

(01:05:36):
They said, How long is it goingto be there?
About another year.
They said, good, take it down inthat year.
You know, whatever wheneveryou're done, take it down.

SPEAKER_02 (01:05:43):
I don't want that there.

SPEAKER_00 (01:05:44):
So um the first three buildings in this are are
right, they front on to uhSeawall Boulevard.
Make sure you're gonna be ableto do that.
I think you've got the siteplan.
So you see uh in the lowerright, uh the highlighted
building is a condominiumbuilding, approximately 75
units, uh 11 stories uh next tothat.

(01:06:04):
The central tower, similarly,it's uh it's 11 stories.
The the lower two stories inboth of these condo buildings is
retail.
So you you're it's a mixed-useproject.
You have a combination of retailand residential in these two
structures.
Uh parking is below.
The photo on the left, it's hardto see, but that's the ground

(01:06:25):
level.
So all of the parking is on thepodium under the podium deck.
There is some parking on on whatyou're seeing lower right up on
the retail space, up on theretail deck so that retail
people can get in and out andshop.
The third building in thesequence here, uh on the left,
the tower, is a hotel.
And we are in negotiations rightnow with it for it, and we

(01:06:47):
actually have the essence of aterm sheets, a sh term sheet
from Renaissance, uh MarriottRenaissance Hotel, and they want
to own and operate the hotel,and they want to operate the
condo goals.

SPEAKER_02 (01:07:00):
You know, a lot of people I don't think know this,
but just like you know, theyalways say, How did McDonald's
make so much money because theyown the real estate?
All these other fast foodrestaurants are typically land
leases.
Uh, same thing with a lot ofhotels.
They you somebody else actuallyowns the building, but they just
in essence lease it and operate.

SPEAKER_00 (01:07:16):
That's right.
So uh it from our standpoint,architects, you know, this is in
design.
It's right now in a PUD, aplanned unit development
application to the city ofGalveston.
A couple of variances.
We have to get a variance on theheight to get to the FAA limit.
We have to get a few varianceson density.
But uh we're looking forward toour first hearing on this next

(01:07:39):
Tuesday at the City of GalvestonPlanning and Zoning to talk
about the second phase.
The uh the second phase is theapartment buildings in the back,
and that's the second phase,could be could be ten years from
now.
So um here are some handrenderings, just some conceptual
sketches to give you a flavorfor what the parking deck, the
upper retail deck would looklike in the upper slide.

(01:08:01):
Uh in the middle slide, you seethe three towers and the
five-story residentialstructures in the back.
That's where the J1 visas wouldbe, maybe 25%.
That's where the workforcehousing would be, maybe 25%.
But that's in a second phasethat comes later.

SPEAKER_02 (01:08:17):
Perfect.
Anything else you'd like to add?

SPEAKER_00 (01:08:20):
Anything else I would like to add?
Um this is moving fast.
Yeah, it is.
And we're enjoying uh enjoyingthe association with uh
Paradigm.
And I know that Mohammed, ifyou're listening, I know he's
enjoying the uh the fact thatwe've taken his project and
showcased it.
Absolutely.
It's a beautiful project.
Thank you.

SPEAKER_02 (01:08:37):
So, okay, guys, so we'll sum it up here, but I also
want to leave a couple ofnuggets for you.
Um to kind of sum up with whatwe are planning on with
Paradigm.
We are gonna go ahead and expandand repurpose our secured income
fund a little bit more.
Um, we are seeing, you know,there, I don't know if you saw
some of the stuff I just posted,but JP Morgan, we'll see, uh, is

(01:08:58):
hoping that Rachel come down inSeptember.
We, I think we all believe Rachare gonna start coming down.
I'm having a lot of back officeconversations with investors,
operators, and a lot of actuallyuh debt providers that want to
provide construction uhfinancing for a lot of uh
projects.
So I think what you're gonna seeis an uptick in activity again
in development and cost ofcapital is going down.

(01:09:20):
Therefore, investors are gonnafeel more comfortable that the
market's on the right track andyou're gonna start seeing uh a
flood into the market.
You have annuities coming due,you have four IRAs, you got
RMDs.
I'm talking to all these peopleall the time about what's
happening.
So I think you're gonna see anuptick in activity.
We wanted as a firm to powerthrough this, not only if it was
pandemic driven or rate hikedriven in the middle of 2022, we

(01:09:43):
saw a big um kind of pullback onthat.
And for those of you that know,on my uh$100 million fund, we
actually fund loans and sellnotes.
It's a very institutional uh uhoperation.
We do, you know, uh auditedfinancials, we sell the notes to
other institutions, so weunderwrite uh to a specific
niche.
And then um, you know, we wantto be able to expand the

(01:10:05):
Barncage product and theParadigm Storage product.
What we believe we've figuredout is the product that we know
and what we want to stay in,right?
Where in the pandemic, so manypeople were more diversified.
As Paradigm as a firm, we'regoing to continue to operate as
a lender, hence why having someof these other projects on our
platform, we can also assist inuh you know sourcing debt and
equity, but also be that liaisonfor our equity investors or

(01:10:28):
family office as being areporting agency, if you will,
or fiduciary to provide accuratereporting to investors about
their investments and to some ofthese deals.
So you're gonna start seeing uskind of come into this, morphing
into a firm that's also lookingat other operators that want
capital and put them on them onour platform to also uh have our
investors and new investors seeit.

(01:10:49):
So, other than that, I reallyappreciate everybody being here.
This is a great audience.
A lot of uh, you know, same sameguys, a lot of my uh current
clients.
Love you all.
I've had a lot of conversationswith you guys over the years.
I really do appreciate thesupport.
If you need anything, feel freeto reach out to me, uh, emails,
text messages, call the office,we'll send up a call.
And then, Steven, why don't youtell the audience how to get a
hold of you and your team,please?

SPEAKER_00 (01:11:09):
So absolutely thank you.
For first, thank you forinviting me.
I mean, this is a greatopportunity.
It's a great partnership.
It is.
We're having fun.
Yeah, and we're doing thingsthat nobody else is doing.
So I'm very happy with thepartnership.
Thanks for inviting me out hereto like Havasu City to be on
this.
Place Designers is uh isheadquarters in Round Rock,
headquartered in Round Rock,Texas, with our satellite office

(01:11:32):
in uh Houston.
You can reach us uh there.
I can we'll provide the datalater, but uh we're we're based
in Texas and and uh Paradigm'sbased out here, but it's still a
great partnership.
Oh yeah.
We're everywhere.

SPEAKER_02 (01:11:46):
So, all right, guys, thank you all very much.
Have a wonderful week.
Again, we'll uh you'll probablybe hearing from my team, so get
ready for those phone calls.
But uh, I really do appreciateeverybody.
Thanks for the support over theall the years, and we're hoping
to continue to bring value.
Cheers.

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From the Pentagon to Barn Caves: Institutional-Grade Design Meets New Construction Tech | Webinar E32

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.css-15opob5{left:0;position:absolute;top:0.8rem;} All Episodes

.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}From the Pentagon to Barn Caves: Institutional-Grade Design Meets New Construction Tech | Webinar E32