bar works times square new york

Bar Works at Times Square, New York – The latest propertyfrom Bar Works the growing work space provider

Own a workspace and make up to 16% yearlyfrom rents in a booming market

BAR WORKSGET YOUR SEAT IN THE HOTTEST PROPERTY SUB-SECTOR IN TOWN

PURCHASE MEMORANDUM

Last year the US Bureau of LaborStatistics said that by 2020 some“65 million Americans will befreelancers, temps,independent contractors andsolopreneurs, making upabout 40% of the workforce”.

WEALTHBUILDER PROGRAMTHE HASSLE-FREE WAY TOBUILD WEALTH FAST

Letter from the Directors 4

Key Parties 5

Outline of the Offer 6

Introduction: The Business Model for Bar Works Inc. 7

Background – Changing Work Patterns 9

Market for Temporary Work Space – The ‘Hot Work Space 10

Summary of the Business Model: Bar Works Inc. 11

Summary of this Offer 12

Applications Form 14

3

CONTENTS

Bar Works on 39th Street, Manhattan.

DEAR INVESTOR,Work space units/serviced offices are now the fastest growing sub-sector of the commercial property market in ci�es around the world.Bar Works Inc. has been established to exploit what the founders believe to be a true gap in that market.

We believe we have iden�fied two key flaws in the current work space product – accessibility and cost.

In Central Manha�an right now, for example, anyone wan�ng a work space has to book up a month in advance – o�en more – because thedemand is so great and supply rela�vely limited.

Big firms such as WeWork and Regus have millions of square feet of work units in Manha�an alone, and are charging not less than US$600a month for their use, and they are s�ll fully booked. But on top of that, all providers are hi�ng their customers with monthly service costsas well – for basic services such as internet access and phone calls, copying and faxes. Such ‘extras’ can push monthly work space costs upby over 50%, and many users finds themselves paying US$700 upwards.

We know this to be the case because the founders of Bar Works Inc. have over 20 years’ experience of using temporary work and officeunits in ci�es around the world, and we have the bills to prove it!For many entrepreneurs, freelancers and contract workers such he�y ‘service’ charges can be a real shock, and the difference betweenfinancial success and failure.

In response, our Bar Works model offers members a fixed monthly all-in fee of not more than US$600 at the two sites in Manha�an thatwe already have under lease.

And here’s the next big difference Bar Works will make. We are picking up sites that already have full restaurant and bar licenses, so weoffer our members full entertaining/event facili�es that most other work space offerings just don’t have. So our members will getdiscounted beverages too, and all in one place.

These former catering sites also have another big advantage – on street frontage and accessibility. Combined with the fact that we willhave capacity for ‘passing trade’, this means Bar Works will be a very visible and easy to access brand.

We are eager to roll out our model as fast as possible, and in many other major ci�es. We and our real estate advisers are already checkingout sites in Boston, Chicago, London and San Francisco.

We opened our first Bar works in October 2015 at 47 W 39th Street, Manha�an. This property is already profitable.

Our Second Bar Works is due to open in February at 41 W 46th Street, Manha�an, located near the famous Times Square.

Bar Works’ Wealthbuilder Program is the brand owned by Bar Works Inc. in which investors can purchase their own workspace on a 10year lease and lease this back to Bar Works Management Inc. (Its wholly owned subsidiary) for a fixed rental income.

Bar Works launched in October 2015 offering a limited number of leases to investors in its first loca�on. The response to this investmentwas tremendous and as a result all the available leases were sold by December 2015.

Bar Works is releasing further workspaces from its latest loca�on located in Times Square. We are also offering our investors a life-�meWorldwide membership to Bar Works, which will allow you to use any Bar Works in our growing network.

Bar Works itself has just completed its first round of equity fund raising where we raised $1.5m. This will allow Bar Works to con�nue therollout of new venues without the requirement of addi�onal capital.

This Purchase Memorandum sets out our offer to investors who are looking for solid, double-digit income returns over the next decade.Thank you for your �me in considering this proposal, and we look forward to you joining the Bar Works network!!

Jonathan BlackChief Execu�ve, Bar Works Inc.

4

LETTER FROM THE DIRECTORS

5

KEY PARTIES


Company Name: Bar Works, Inc47W 39th StreetNew York10018USA

Website of the Company: www.barworks.nyc

Management Corpora�on: Bar Works Management Inc.41W 46th StreetNew York10036USA

A�orney: Thompson Bukher LLP369 Lexington AvenueNew York10017USA

Property A�orney Reznick Law900 Third Avenue, 17th FloorNew York, NY 10022USA

Bankers: JP Morgan ChaseColumbus CircleNew York CityNew YorkUSA

Auditor to the Company: ProTax Center1312 Kings HighwayNew York11229USA

A�er the success of the first Bar Works lease program the company has acquired a second venue, located in New York’s,famous Times Square. Bar Works is again only releasing a limited number of workspaces to investors.

The Bar Works Wealth Builder Program allows investors who are seeking income combined with capital apprecia�on thechance to purchase a 10-year lease on workspace units in Manha�an’s Times Square on a fixed rental including the benefit ofany rent increases derived from the lease.

The units available will be amongst those set aside for full-�me and long-term members of Bar Works Inc. who will payUS$600 per month all-inclusive for their use.

The cost of each work space is US$25,000, plus you receive a free life �me worldwide membership to Bar Works.

The Wealthbuilder Program has been structured to maximize your income and capital.

We do not encourage the purchase of single units as by purchasing mul�ple units your rental income and returns increase.

All income payments will be paid monthly from the point of investment – so you start receiving income just 14 days a�ertaking up this offer. You will see a steady flow of income for the whole �me you hold your lease.

In addi�on, Bar Works Inc. has an op�on to buy back your lease at 125% of ini�al cost – i.e., US$31,250. However, Bar WorksInc. will offer the right to buy back at that level at any point a�er the second anniversary of investment. In addi�on at the endof the lease term there is a reversionary interest which pays back the investor the sum of their ini�al investment.

Bar Works Inc. will also offer a matched bargain facility where leaseholders can sell their lease units at any �me if required– and perhaps buy more too!

6

WEALTH BUILDER PROGRAM EXPLAINED

Premium Monthly Rent % return per year

Single Workspace $25,000 $292 14%

Wealth Starter (2 workspaces) $50,000 $625 15%

Wealth Accelerator (3 workspaces) $75,000 $969 15.5%

Wealth Builder (5 workspaces) $125,000 $1,667 16%


The founders of Bar Works Inc. believethey have iden�fied two key flaws inthe current inner city work spacemodel – accessibility and price.

None of the current work spaceoperators offer an easy access facility,their premises usually requiring pre-booking. In major city centers, andpar�cularly in New York, facili�es arealmost always booked up for at least amonth or more in advance.

Costs of using space with all operatorsare also not limited to a monthly rent.Phone, internet and other services aregenerally extra costs, and can raise themonthly bill by as much as 50% ormore.

In addi�on, compe�ng work spaceloca�ons do not have full catering andalcohol licenses, so that their users areforced to eat and entertain elsewhere.The Bar Works model means thatmembers can use the premises for alltheir business-related needs, andnetwork much more effec�vely incomfort and in contact with their dataand resources.

Bar Works work spaces have a uniquevibrancy, based on people rather thansimply on architecture or décor makingthese venues ideal for events andnetworking. Bar Works has alreadyheld a number of successful Meet Ups(www.meetup.com) which as well ascharging a fee ensures there is aregular flow of people to Bar Workswho in turn take up membership.

Bar Works also promotes itself heavilyonline featuring on a number ofwebsites which has also a�ractedmembership includingwww.liquidspace.com,www.instantoffice.com,www.loopnet.com andwww.getcroissant.comBar Works con�nues to promote itsbrand to ensure a con�nual flow ofmembers and to promote publicawareness. It has recently entered into

an agreement to promote its brand atthe largest office supplies retailerStaples in its number one US store inUnion Square. Please see below one ofthe joint promo�ons which Bar Worksis offering its member base in returnfor promo�ng Bar Works in storewhere there are over 4,000 shoppers aday. This constant promo�on hasensured that the first unit that BarWorks has opened is already profitable

Services available for each monthlymembership payment will include thefollowing:

� Free internet� Free photocopying� Free phone connec�on and

na�onal calls� Free mee�ng room use (subject to

pre-booking and availability)� Free networking� No no�ce period� No deposit

7

INTRODUCTION:THE BUSINESS MODEL FOR BAR WORKS INC.

Basement

FLOORPLAN OF BAR WORKS TIMES SQUARE

Second floor

First floor

� Free coffee� Heavily discounted alcoholic

drinks (beer and wine licenses)� Free subscrip�on to The Search� Free technical support� Free fax

Bar Works offers a LimitedMembership or Full Membership andVirtual Office op�ons. For example, atthe West 39th Street facility there is acapacity for approximately 200members, with 64 permanent workspaces (usually for full members), 134flexible spaces (for part-�me andtemporary members) and 50 addi�onalspaces for virtual office/ad hoc/per dayusage.

The new Times Square venue BarWorks will have 75 permanent workspaces with capacity for 220 members .

“An energizing environment is rare tofind in a co-working space. A trendybuilding or beau�ful architecturedoesn’t make the atmosphere. Thepeople do. The best way to encouragethat energy is through our barenvironment. You will get a realopportunity to network with yourfellow entrepreneurs. Many of thegood ideas are generated in suchsurroundings and this atmosphere ispresent 24/7.”



Last year the US Bureau of LaborSta�s�cs said that by 2020 some “65million Americans will be freelancers,temps, independent contractors andsolopreneurs, making up about 40% ofthe workforce”. Similar trends can beseen in other developed anddeveloping economies, and thissuggests that demand for work spaceswill con�nue to rise in the comingyears around the world.

In addi�on, the latest issue of theHarvard Business Review (HBR) reportsthat large corporates are also nowencouraging their employees to useremote co-working spaces because ofthe benefits all companies and workerscan derive from the model.

HBR says:“There seems to be something specialabout co-working spaces. As

researchers who have, for years,studied how employees thrive, wewere surprised to discover that peoplewho belong to them report levels ofthriving that approach an average of 6on a 7-point scale. This is at least apoint higher than the average foremployees who do their jobs inregular offices, and something sounheard of that we had to look at thedata again.

It checked out. So we were curious:What makes co-working spaces –defined as membership-basedworkspaces where diverse groups offreelancers, remote workers, andother independent professionals worktogether in a shared, communalse�ng – so effec�ve? And are therelessons for more tradi�onal offices?”

HBR cites several examples of howemployees of large corporates areusing the co-working model, includingusing actual remote work spaces.(h�ps://hbr.org/2015/05/why-people-thrive-in-coworking-spaces). And thejournal concludes that co-workingspaces enhance success for three mainreasons: people who use co-workingspaces see their work as meaningful;they have more job control; they feelpart of a community.

Thus, the work space model is nowalso serving a growing number ofmajor corporates as they realize thebenefits it brings in terms of workerwellbeing and produc�vity. And whilstmany big corpora�ons may decide torefit their own offices to copy themodel, they also seem to be ac�ve inco-working memberships for theirstaff.

The work-life balance appears to beshi�ing for employees as well as theself-employed.

9

BACKGROUND –CHANGING WORK PATTERNS

Whilst the changes in how and wherepeople work are behind the hugesuccess of companies such as Regusand WeWork, it looks likely that therewill be many more such success storiesfrom every con�nent in the yearsahead. (Market leader WeWork rakedin revenues of US$150 million (£96million) in 2014, and is taking its USmodel to Europe and the Middle East.)

Globally, the co-working business is ina major uptrend. According to industrytracker Deskmag.com, flexible workingspaces around the world grew five�mes during 2010-13. That’s just threeyears.

In its most recent published report(2014), Deskmag.com also said that:

“Seven out of ten co-workingfacilitators report that the availabilityof desk space in co-working spacescan’t keep up with the public’sdemand in general. The current needfor co-working spaces outweighs theavailability of vacant spots. Taken as awhole, the co-working economy hasparalleled this posi�ve outlook, withmore than one in two co-workingspaces planning to expand in this yearalone. Success stories with this kind ofmarket value are few and farbetween. Compared to co-working,many other industries see less growthon average.

In India, for example, the India Timesreported this summer that, “With theblossoming of India’s start-upecosystem, entrepreneurs are not theonly ones making big business - so arethe people running the spaces theywork out of. Co-working spaces, whichare growing in demand by the day, areproving to be a profitable and evenscalable venture.”

Deskmag.com has also highlightedanother trend within the industry, andreported that “more co-workingmembers are switching workspaces”

“When we last took our survey, 80%of co-working professionals were s�llat their first co-working space; this�me around, that number dropped tojust under 70%. More people werealso likely to return to their first co-working spaces. There was oneexcep�on, however, whichsignificantly increased the frequencyof co-working traffic from one spaceto another. Whereas in the past, co-workers normally remained loyal totheir first ever co-working space (evento those with poor ra�ngs), futurees�mates show that the probabilitythat people will stay put inunsa�sfactory work spaces will bemuch lower.”

Thus, an element of compe��on isentering the work space provisionmarket, and end users are becomingmore selec�ve about the facili�es and

support they want – and they may wellbe becoming more cost-conscious atthe same �me.

For work space operators this means amore varied and differen�ated offeringis needed, even though a key factor foroperators is that they keep propertyand renova�on costs under control.This is more easily achieved incountries where property can beleased on long-term contracts andthere is good compe��on in the refitand renova�on market.

10

MARKET FOR TEMPORARY WORK SPACE –THE ‘HOT WORK SPACE’


To provide both a differen�atedoffering in the work space market, andto keep set-up costs down, Bar WorksInc. has focused on acquiring long-termleases to premises which already havefull restaurant and bar licenses as wellas under-u�lized space.

In addi�on, in what is an�cipated tobecome an increasingly compe��vemarket, Bar Works Inc. offers itscustomers an all-inclusive, no depositfee structure. This aspect of theCompany’s model is inspired by thelong-term experience of its founders,who between them have more than 20years’ experience of using flexible workspace in leading ci�es around theworld.

“Too many work space providers hitusers with extra charges each month –for phones, internet charges etc. – and

that can be both annoying anddamaging to entrepreneurial people. Ifyou are star�ng a new venture, orworking on a fixed price contract, thelast thing you need is a big surprise atthe end of the month. And some of thesurprises can be really big, pushingtotal space costs up by more than 50%in our experience.

It is �me for the work space industry tobe more transparent in what it offersand what it charges, and we believe thefixed cost, no deposit model is one thatwe can make work, and which will havereal appeal amongst freelancers,contract workers and others wan�ngwork space in city centers”, says BarWorks Inc.’s Chief Execu�ve, JonathanBlack.

The first Bar Works which opened inOctober 2015 is already profitable and

has a�racted members through bothword of mouth and various marke�ngini�a�ves. It is clear that Bar Works isproviding a unique offering in a marketwhich offers very li�le differen�atedproduct and where there are no MainStreet brands except Wework.

Features of the Bar Works modelinclude:1) No deposit and members can leaveat any �me a�er the completed monthpaid for in advance, so no no�ce periodeither.

2) Networking. ‘Happy Hour’ is the best�me to meet other co-workers, and BarWorks’ venues holds a ‘Happy Hour’Monday to Friday from 6pm-8pm..

3) Events. Bar Works hosts a busyschedule of events with guest speakerseach month.

On the costs side, Bar Works Inc.focuses on sites where long leases areavailable and with pre-set rent reviewclauses, so that the Company knowsexactly what its biggest single outlay isbe in the years ahead. Design andrefurbishment will also be done onfixed price contracts to avoid largebudget overspends.

Staff costs are lower (as a percentage ofcosts) than for other work spaceproviders due to the mul�-func�on/discipline of the staff.

The Company’s plans for expansioninclude at least eight further sites inNew York City, to ensure a recognizablebrand within the city, as well as aspread of convenient loca�ons formembers. Directors of Bar Works arealready researching available andsuitable sites in San Francisco, Londonand elsewhere, with the aim of takingthe total number of Bar Works’proper�es to not less than 15 in thenext three years. The Directors andtheir real estate advisers believe thepoten�al for growth in the Bar Works’por�olio to be substan�ally higher.

11

SUMMARY OF THE BUSINESS MODEL:BAR WORKS INC.

Bar Works Inc. has created a morevibrant, accessible and usable workspace environment for a variety of userneeds – the freelancer, contract worker,entrepreneur and travelling execu�ve.At the same �me, the Company willexploit niche venues with full bar andcatering licenses in selected and ‘hot’districts of ci�es in the US andelsewhere.

The Bar Works model also offerscustomers a clear and inclusive feestructure – with no hidden extras. TheDirectors believe this to be another keydifferen�ator of their business model,since established work space providersplace addi�onal monthly charges on

their customers even for the very basicservices of telephones and internetaccess.

Because Bar Works Inc. expects toexpand its model rapidly across severalmajor interna�onal ci�es, the Companyis willing to sub-let a limited propor�onof work spaces via 10-year leases toinvestors in order to raise addi�onalexpansion capital.

In this Purchase Memoranduminvestors have the opportunity to investon the following terms:

1) Purchase a workspace on a 10-yearlease in Manha�an’s Times Square one of

the prime real estate spots in the world.Select from three op�ons under theWealthbuilder Program where you canreceive returns of up to 16% per year.

2) Purchase price starts at $50,000 forthe Wealth Starter which consists oftwo workspaces and a return of 15%per year..

3) Income payable monthly from pointof purchase – i.e., first income received14 days from point of purchasecomple�on.

4) Par�cipa�on in one of the fastestgrowing commercial propertysubsectors in the US and overseas.

12

SUMMARY OF THIS OFFER

5) Bar Works, Inc has completed around of equity funding which allowsthe company to expand without theneed for further outside equity.

6) The lease has a reversionary interestwhich pays the investor the sum oftheir investment at the end of thelease term.

7) The Company offers the op�on tobuy back leases at any �me a�er thesecond anniversary of purchase at a25% premium.

8) Matched bargain trading facility willbe available to allow earlier exit fromthe investment, with all income rightstransferable and a�aching to eachlease.

9) Full documenta�on and �tleprovided for each work space unit.

10) Life�me and Worldwidemembership of Bar Works’ network ofvenues.

BAR WORKS INC. – PURCHASE SUMMARY

Wealthbuilder Program op�ons:

Wealth Starter – 2 units - $50,000

Wealth Accelerator – 3 units - $75,000

Wealth Builder – 5 units - $125,000

Select Op�on: ................................................................................................

Total $ amount to be remi�ed: .....................................................................

INCOME PAYMENT DETAILS – payments direct to:

........................................................................................................................

........................................................................................................................

Bank: ..............................................................................................................

Sort Code/SWIFT: ...........................................................................................

Account Number/IBAN: .................................................................................

Rou�ng No (US): ............................................................................................

Or by check to: ...............................................................................................

CLIENT INFORMATION

Name: ............................................................................................................

Address: .........................................................................................................

........................................................................................................................

........................................................................................................................

Telephone: .....................................................................................................

Email: .............................................................................................................

Signature: .......................................................................................................

14

APPLICATION FORM

HOW TO APPLYYou are required to complete theapplica�on form. In addi�on youwill also be sent two agreementswhich will require signing oncethere are cleared funds. The first isthe Lease Purchase Agreementwhich is your purchase of asublease from Bar Works, Inc. Thesecond is the lease agreement youhave with Bar WorksManagement, Inc. (a whollyowned subsidiary of Bar Works,Inc.) which is the company thatwill enter a lease with the investorand manage the workspace andpay the rentals.

PLEASE RETURN COMPLETEDDOCUMENTS TO:Bar Works Inc.47W 39th St New York 10018 USA

PLEASE SEND YOUR WIRETRANSFER TO:Bank Name: JPMorgan Chase BankBank Address: Broadway and 61st, New York,New York, 10023, USAAccount Name: Bar Works IncAccount Number: 790961622SWIFT: CHASUS33 Rou�ng Number: 021000021Address: Lincoln Center, New York,New York, 10023, USA.

Bar Works, Inc47W 39th Street

New York10018USA

www.barworks.nyc