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BAR WORKS at Jack’s
New Lease of Life for San Francisco’s 6,000 sq ft Historic Eaterie

San Francisco’s ‘Jeanty at Jack’s’ becomes the City’s first Bar Works™ Venue

99-year leases on coworking spaces yielding 12.5% a year rental income + growth

Bar Works™ at Jack’s, 615 Sacramento Street Bar Works™ Inc. – the growing co-working space provider

DEAR INVESTOR,

We are pleased to announce that Bar Works™ Inc. is now the proud owner of one of San Francisco’s Designated Landmarks – the historic Jack’s Restaurant on Sacramento Street and at the heart of the City’s financial and commercial districts.

Jack’s has been one of San Francisco’s best-known and best-loved restaurants since the current building opened in 1864, and is one of the few buildings to survive the City’s 1906 earthquake and fire. Still in excellent condition, and already considerably updated for modern usage, Jack’s is a 3-storey freehold building with mezzanine and basement, and siting on what is now one of the busiest and wealthiest streets on the West Coast.

Former owner Philippe Jeanty, who led the renowned ‘Jeanty’s at Jack’s’ as one of San Francisco’s top restaurants in the last decade, has selected Bar Works™ Inc. as offering the best opon for taking this historic venue into a useful and fulfilling future.

Many have tried to buy this well-known site, but it is Bar Works™ that has succeeded.

Our plan for up to 500 co-working spaces alongside bar, dining and meeng facilies fits Philippe’s criteria for the right kind of future for the City’s oldest surviving restaurant building – Tadich Grill is technically the oldest restaurant in San Francisco, but has moved more than once, while Jack’s has stayed put at its original address.

We at Bar Works™ Inc. see this acquisition as a major step change in our growth, and one that will put our unique co-working concept on the world business map. We offer you now the opportunity to participate in the venture going forward. We offer 99-year leases, on a limited number of permanent work stations planned for the building, as a source of high level income for your future.

Full details of the lease offer and the rationale behind investing in Bar Works™’ vibrant coworking venues are given in this document. We hope to hear from you – or at the very least see you at Jack’s for a drink!

Jonathan Black
Chief Executive, Bar WorksTM Inc.

Group Company Name : Bar WorksTM, Inc 47W 39th Street New York 10018 USA
Group Company Name : Bar Works™ Inc. 47W 39th Street New York 10018 USA
Leasehold Company Name : Bar Works™ San Francisco 1 LLC, 615 Sacramento San Francisco California
Freehold Company Name : Bar Works™ Capital LLC 615 Sacramento San Francisco California
Website of the Company : www.barworks.nyc
www.barworks.us
Management Corporation: Bar Works™ Management Inc. 41W 46th Street New York 10036 USA
Property Attorney : Weller Partners LLP 2330 Marinship Way Sausalito California
Bankers : Mechanics Bank Hercules California
Auditor to the Company : ProTax Center 1312 Kings Highway New York 11229 USA

The Wealth Builder Program from Bar Works Inc.

As the next step forward in the rapid roll-out of the Bark Works™ Inc. model, the group is pleased to announce its first venue on the West Coast – at the historic Jack’s Restaurant on Sacramento Street, San Francisco. With three NYC sites already up and running, and a forthcoming opening in London, Bar Works™ is growing strongly in the right places and connues to offer selective investment participation in that growth.

The Bar Works™ Wealth Builder Program allows investors who are seeking income combined with capital appreciation the chance to purchase a 99-year lease on workspace units at Bar Works™ at Jack’s on a fixed rental including the benefit of any rent increases derived from the lease. That means your income will grow over the years and exceed the initial 12.5% yield over time.

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

The cost of each work space is US$30,000, plus you receive a free lifeme worldwide membership to Bar Works™.

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

Based on a Single Workspace

Premium $30,000
Monthly Rent $312
% return per year 12.5%

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

As full 99-year leases, there is no ‘end of term’ buy back offer from Bar Works™ Inc. for these assets. However, Bar Works™ Inc. will retain the right to buy back your lease at a minimum 125% of initial cost - i.e., US$37,500 - at any point after the second year anniversary of investment and in the event of a change in group ownership or status.

Bar Works™ Inc. offers a ‘matched bargain’ facility where leaseholders can sell their leased units at any time if required – and perhaps buy more too!

 

"A trendy building or beauful architecture doesn’t make the atmosphere. The people do. The best way to encourage that energy is through our bar environment"

The business model for Bar Works™ Inc.

The founders of Bar Works™ Inc. believe they have identified three key flaws in the current inner city work space model – accessibility, flexibility and price.

Few, if any, of the current work space providers’ offers an easy access facility, their premises usually requiring prebooking. In major city centers, and parcularly in New York, facilies are almost always booked up for at least a month or more in advance.

In contrast, Bar Works™ is predominantly membership based, and can cope with a more ad hoc working lifestyle – you can walk in off the street, tune into our wi-fi and carry out work tasks from a dining table or a desk as a full member or just for an hour.

Costs of using space with all other operators are also not limited to a monthly rent. Phone, internet and other services are generally extra costs, and can raise the monthly bill by as much as 50% or more. But Bar Works™ offers a fixed-price, all-inclusive deal to members (whether full or part-time) and to ‘passing trade’.

In addition, competing work space locations do not have full catering and alcohol licenses, so that users are forced to eat and entertain elsewhere. The Bar Works™ model means that members can use the premises for all their business-related needs, and network much more effectively in comfort and in contact with their data and resources.

Bar Works™ work spaces have a unique vibrancy, based on people rather than simply on architecture or décor, making these venues ideal for events and networking. Bar Works™ has already held a number of successful Meet Ups (www.meetup.com) at their Manhattan venues, which, even though charging a fee, ensure a regular flow of new people to our venues who subsequently take up membership.

This inviting ‘open door’ style will be replicated wherever Bar Works™ operates in the world, and most especially in our new San Francisco location. Jack’s will be a real hotspot in Frisco’s business district.

Additionally, Bar Works™ aims at all commercial/creative/entrepreneurial acvity rather than purely at the Tech Startup market, thus opening up the target membership to a bigger broader spectrum, and offering a bigger, broader network for members.

Services available for each monthly or daily membership payment include the following :

  • Free internet
  • Free photocopying
  • Free phone connection and national calls
  • Free meeting room use (subject to pre-booking and availability)
  • Free networking
  • No notice period
  • No deposit
  • Free coffee
  • Discounted alcoholic drinks (beer and wine licenses)
  • Free subscription to The Search tech scene quarterly
  • Free technical support
  • Free fax

Bar Works™ offers Limited or Full Membership, and a Virtual Office option.

Capacity at this new Sacramento Street venue will be very much greater than at any of our New York venues, and we are making 300 work stations available for the Wealth Builder Program at this site. We estimate overall capacity will be for approximately 500 fixed desks, and up to 1,500 members.

This compares to our NYC West 39th Street facility where there is capacity for approximately 200 members, with 64 permanent work spaces (usually for full members), 134 flexible spaces (for part-time and temporary members) and 50 additional spaces for virtual office/ad hoc/per day usage.

Our whole philosophy at Bar Works™ Inc. is to facilitate an energized and progressive environment for entrepreneurs, freelancers and travelling business people in the 21st Century world of work at all our venues, large and small.

“An energizing environment is rare to find in a co-working space. A trendy building or beautiful architecture doesn’t make the atmosphere. The people do. The best way to encourage that energy is through our bar environment. You will get a real opportunity to network with your fellow entrepreneurs. Many of the good ideas are generated in such surroundings and this atmosphere is present 24/7.”

Background to Jack’s

The current building first opened in 1864, with Jack’s Restaurant having operated from 1863, and is situated in the western section of San Francisco’s main financial district. It offers roughly 6,000 sq ft of space on several levels.

At 615 Sacramento, Jack’s is just one block away from the City’s most recognizable building, the Transamerica Pyramid. A full US$2m refit of the building was carried out in 1996, adding an elevator and yet retaining the retro features of each floor. Whilst needing some new work to suit Bar Works™’ membership facilities the building is sound and provided with the requisite cabling for full communications access.

Jack’s has survived earthquake, fire and many recessions, and holds a special place in the history of San Francisco, hence its Designated Landmark status in the City. Amongst the many famous names to have been regular visitors to Jack’s is British film director Alfred Hitchcock. He was such a fond regular of the place that one upstairs room was named after him. He is also credited with introducing Jack’s ‘mimosa’ cocktail to the venue and to America!

There is a very long list of famous people who have enjoyed Jack’s in the past, including the likes of Ernest Hemingway and Ingrid Bergman alongside many leading politicians and businessmen. The venue retains a ‘belle epoque’ atmosphere and many iconic late 19th and early 20th Century photographs and posters on its walls.

Nowadays, its position is also on one of the busiest and wealthiest streets for shoppers in San Francisco, thus combining easy access to the business center and retail/tourist district.

“From Bar Works™ Inc.’s perspective, we could not have hoped for a better, more easily accessed or more recognizable venue for our members as the starting point for our growth on the West Coast. And it is an honor to be the new owner of this much loved building, which we will keep open to the public on a controlled basis, i.e., ticketed and guided so as not to be intrusive or insecure for our members.” – Jonathan Black

3rd Floor

2nd Floor

Mezzanine

Ground Floor

Lower Level

Proposals for Landmark Venue

615 Sacramento Street, San Francisco

Bar Works™ Inc. expects to install up to 500 fixed work stations, as well as retain bar, dining and meeting room facilities throughout the five available floor levels.

Approximately one third of all work stations will be reserved for Full and Permanent Members, with the rest allocated for use by Part-time and ad hoc users.

Services available for each monthly or daily membership payment include the following :

  • Free internet
  • Free photocopying
  • Free phone connection and national calls
  • Free meeting room use (subject to pre-booking and availability)
  • Free networking
  • No notice period
  • No deposit
  • Free coffee
  • Discounted alcoholic drinks (beer and wine licenses)
  • Free subscription to The Search tech scene quarterly
  • Free technical support
  • Free fax

Bar and dining facilities will also be available, and Jack’s will be the hub for further planned expansion in the San Francisco area, to include top level networking and information events.

At the same time and in keeping with the building’s Designated Landmark status, Jack’s will retain its unique décor and style and be open to public visits on a ticketed and guided basis. Public visits will also be at fixed times to enable proper and secure management of all visitors. The management company has an obligation to assist in preserving yet making accessible such a significant building in San Francisco’s heritage.

Changing Work Patterns and Global ‘Hot Workspace

In 2014 the US Bureau of Labor Statistics said that by 2020 some “65 million Americans will be freelancers, temps, independent contractors and solopreneurs, making up about 40% of the workforce”. Similar trends can be seen in other developed and developing economies, and this suggests that demand for work spaces will continue to rise in the coming years around the world.

In addition, last November’s issue of the Harvard Business Review (HBR) reported that large corporates had also begun encouraging their employees to use remote co-working spaces because of the benefits all companies and workers can derive from the coworking model.

HBR said: “There seems to be something special about co-working spaces. As researchers who have, for years, studied how employees thrive, we were surprised to discover that people who belong to them report levels of thriving that approach an average of 6 on a 7-point scale. This is at least a point higher than the average for employees who do their jobs in regular offices, and something so unheard of that we had to look at the data again.

It checked out. So we were curious: What makes co-working spaces – defined as membership-based workspaces where diverse groups of freelancers, remote workers, and other independent professionals work together in a shared, communal seng – so effective? And are there lessons for more traditional offices?”

HBR cited several examples of how employees of large corporates are using the co-working model, including using actual remote work spaces, and the journal concluded that co-working spaces enhance success for three main reasons: people who use co-working spaces see their work as meaningful; they have more job control; they feel part of a community.

Thus, the work space model is now also serving a growing number of major corporates as they realize the benefits it brings in terms of worker wellbeing and productivity. And whilst many big corporations may decide to refit their own offices to copy the model, they also seem to be acve in co-working memberships for their staff.

The work-life balance appears to be shifting for employees as well as the self-employed.

The Global ‘Hot’ Work Space

At the end of last year WeWork – arguably the US’s leading provider of co-working space – announced that it expected to expand its number of locaons from 23 to 60 in the course of 2016. This came alongside news of another funding round for the group, a funding that, reportedly, put a US$5 billion valuation on the business.

Since then, WeWork has actually already exceeded that “60 locations” target, and the company is now valued at more than US$10 billion - and all this in the space of not much more than five years since the business began.

Whilst the rapid expansion and high valuation of WeWork has raised concerns from some established commercial property experts and landlords, this corporate phenomenon reflects the huge changes in ways of working and styles of employment that have taken place in the past decade. And these changes are not confined to North America.

“Jack’s has survived earthquake, fire and many recessions, and holds a special place in the history of San Francisco, hence its Designated Landmark status in the City”

Right across the world, the last 10 years have seen a major upsurge in the numbers of entrepreneurs, freelancers and contract workers in developed and developing economies. According to industry tracker Deskmag.com, flexible working spaces grew five times just in the three years to 2013.

There are now more than 50 coworking sites in New York City alone.

Deskmag’s most recent (2015) survey says, “This year’s forecast and trends of the co-working market doesn’t differ strongly from past years according to new results of the Global Co-working Survey. While the co-working industry might have had some stormy and less than desirable market conditions in 2015, with increased real estate prices and challenges in growing awareness, those phenomena don’t have a negave impact on the global development in general, at least not more than in the past. This is the year we’ll see over 10,000 co-working spaces open by the end of 2016.”

“The number of co-working spaces has grown by 36% worldwide at around 7,800. The survey also showed that current spaces serve, on average, a third more members than they did just two years ago.”

However, there are signs that the coworking/ temporary office space market is changing again – towards ‘collaborative spaces’, where workers in a variety of fields/sectors can meet to discuss and display ideas. No-one wants to be locked away in ‘tech city’ anymore.

And – as East London space provider The Brew shows – the ‘serviced office’ model is no longer enough. Space providers these days need to offer “social and networking events”. However, as with so many competors to Bar Works™ Inc., The Brew does not offer full bar and food services that Bar Works’ members value.

Regus – considered the doyen of serviced office providers – has a stock market valuation of around £2.8 billion (US$4 billion), yet looks to be on a downward trend in terms of cash generation. And at the current share price, Regus trades on a rather rich 30 times annual earnings. That is a high price-earnings ratio for what is looking more and more like a tradional property group.

Nevertheless, Regus has continued to grow over recent years and now provides more than 2,300 sites in 120 countries around the world. The demand for work space is certainly still strong, but exactly what the customer wants is shitiing quite markedly in our view – shitiing further away from serviced towards real collaborative coworking space.

Deskmag pointed out some time ago – as a result of earlier survey responses – that :
“One in two members access their workspace around the clock. Only 30% like to work during traditional business hours (9am to 5pm, or 10am to 6pm in most countries). It’s interesting to note the difference between the desired access times and the actual current access – 38% use business hours (meaning there’s a slight demand on more flexible plans). Half-day access is rare, and one in ten members has a limited number of days per month. The monthly 24-7 plan is emerging as the co-working industry standard.”

Bar Works™ at Jack’s

The Group (Bar Works™ Inc.) now owns the freehold building at 615 Sacramento Street, San Francisco, known for over 150 years as Jack’s Restaurant. A Designated Landmark in the City, the building has five floor levels and approximately 6,000 square feet of space.

The venue is located in the financial district – just a block away from the Transamerica Pyramid – and within one of San Francisco’s most vibrant and high value shopping areas.

Still a beacon for tourists – and especially for fans of Alfred Hitchcock – Jack’s is set to become a key venue for co-workers, with Bar Works™ Inc. offering full service work stations at fixed inclusive prices and with full bar and dining facilities.

Bar Works Inc. plans to provide roughly 500 work stations within the building, as well as retain full bar and dining facilities in an historic ambience. The Company expects to aract up to 1,500 members for the venue, as well as many paying visitors and tourists.

Office rental costs in the area have rocketed in recent years, fuelled partly by the tech boom and companies such as Uber Technologies and Pinterest Inc. snapping up space in a limited market, according to analysts at CBRE Group Inc. and Green Street Advisors. Recently published surveys put office rental space in San Francisco’s financial district at close to US$70 per square foot a year, almost on a par with rates in Manhattan and back at previous boom levels.

According to a report from Cassidy Turley, a commercial real estate firm, just six companies have dominated the bulk of leasing activity in recent years. Google, Salesforce, LinkedIn, Twitter, Dropbox, and Uber have signed up millions of additional square feet of space—offices that could house many thousands of new employees.

Co-working space providers have also moved into downtown San Francisco big time, with WeWork currently offering desks at four locations at a minimum price of US$500 per month – before cost of services. Regus is also active in the area, offering short and long-term office space. Neither, however, offers social networking facilities. Nor do they offer all-inclusive prices for services such as printing, photo-copying, phones etc.

For contract workers, self-employed and small businesses, the rents+costs and space squeeze is clearly on. Even if the tech boom starts to fade, it will be sometime before surplus space of the right kind – and at the right price - becomes available for the current and next generation of entrepreneurs and freelance workers.

The Bar Works™ Inc. fixed-price, full service model offers an attractive and workable option to anyone needing work space in the City. And at a location that provides atmosphere, history and real collaborative work space.

Summary of this offer

Bar Works™ Capital LLC owns the freehold of 615 Sacramento Street, known as Bar Works™ at Jack’s. It hasl granted a lease for 99 years 5 months to the operating company Bar Works™ San Francisco 1 LLC.

Investors are invited to purchase 99-year leases from the latter for individual work stations within the new San Francisco venue, Bar Works™ at Jack’s, an historic Designated Landmark in the City’s financial district.

Income returns from the leases are fixed and offer annual returns of 12.5%. The leases are tradable and subject to a fixed 125% minimum buyback price on or atter the second anniversary of investment at the discretion of the Company. The fixed initial purchase price of each work station lease is US$30,000, and there is limited availability.

Returns are based of the Bar Works Wealth Builder Program.

Based on a Single Workspace

Premium $30,000
Monthly Rent $312
% return per year 12.5%
  • Guaranteed returns, payable monthly from point of investment – i.e., first income payments received 14 days from start of investment
  • Rents payable to investors will rise in line with increased gross rentals achieved for Full and Permanent Members at the venue
  • If Company’s buyout clause is activated, a minimum capital price of US$37,500 is payable
  • No automatic end of lease buyout
  • Matched bargain facility available via Company for investors wishing to trade leases
  • Free lifetime worldwide membership to Bar Works™
  • All legal and administrative costs included in the purchase price
  • Participation in and income from one of the world’s fastest growing real estate sub sectors
  • High quality, historic location in the financial district of San Francisco
  • Investors may sell their lease on the open market

JOIN US AT JACK’S – STILL AN ICON FOR SAN FRANCISCO’S FINANCIAL DISTRICT MAXIMUM OF 300 WORK STATIONS AVAILABLE

BAR WORKS at Jack’s
New Lease of Life for San Francisco’s 6,000 sq ft Historic Eaterie

San Francisco’s ‘Jeanty at Jack’s’ becomes the City’s first Bar Works™ Venue

99-year leases on coworking spaces yielding 12.5% a year rental income + growth

Bar Works™ at Jack’s, 615 Sacramento Street Bar Works™ Inc. – the growing co-working space provider

DEAR INVESTOR,

We are pleased to announce that Bar Works™ Inc. is now the proud owner of one of San Francisco’s Designated Landmarks – the historic Jack’s Restaurant on Sacramento Street and at the heart of the City’s financial and commercial districts.

Jack’s has been one of San Francisco’s best-known and best-loved restaurants since the current building opened in 1864, and is one of the few buildings to survive the City’s 1906 earthquake and fire. Still in excellent condition, and already considerably updated for modern usage, Jack’s is a 3-storey freehold building with mezzanine and basement, and siting on what is now one of the busiest and wealthiest streets on the West Coast.

Former owner Philippe Jeanty, who led the renowned ‘Jeanty’s at Jack’s’ as one of San Francisco’s top restaurants in the last decade, has selected Bar Works™ Inc. as offering the best opon for taking this historic venue into a useful and fulfilling future.

Many have tried to buy this well-known site, but it is Bar Works™ that has succeeded.

Our plan for up to 500 co-working spaces alongside bar, dining and meeng facilies fits Philippe’s criteria for the right kind of future for the City’s oldest surviving restaurant building – Tadich Grill is technically the oldest restaurant in San Francisco, but has moved more than once, while Jack’s has stayed put at its original address.

We at Bar Works™ Inc. see this acquisition as a major step change in our growth, and one that will put our unique co-working concept on the world business map. We offer you now the opportunity to participate in the venture going forward. We offer 99-year leases, on a limited number of permanent work stations planned for the building, as a source of high level income for your future.

Full details of the lease offer and the rationale behind investing in Bar Works™’ vibrant coworking venues are given in this document. We hope to hear from you – or at the very least see you at Jack’s for a drink!

Jonathan Black
Chief Executive, Bar WorksTM Inc.

Group Company Name : Bar WorksTM, Inc 47W 39th Street New York 10018 USA
Group Company Name : Bar Works™ Inc. 47W 39th Street New York 10018 USA
Leasehold Company Name : Bar Works™ San Francisco 1 LLC, 615 Sacramento San Francisco California
Freehold Company Name : Bar Works™ Capital LLC 615 Sacramento San Francisco California
Website of the Company : www.barworks.nyc
www.barworks.us
Management Corporation: Bar Works™ Management Inc. 41W 46th Street New York 10036 USA
Property Attorney : Weller Partners LLP 2330 Marinship Way Sausalito California
Bankers : Mechanics Bank Hercules California
Auditor to the Company : ProTax Center 1312 Kings Highway New York 11229 USA

The Wealth Builder Program from Bar Works Inc.

As the next step forward in the rapid roll-out of the Bark Works™ Inc. model, the group is pleased to announce its first venue on the West Coast – at the historic Jack’s Restaurant on Sacramento Street, San Francisco. With three NYC sites already up and running, and a forthcoming opening in London, Bar Works™ is growing strongly in the right places and connues to offer selective investment participation in that growth.

The Bar Works™ Wealth Builder Program allows investors who are seeking income combined with capital appreciation the chance to purchase a 99-year lease on workspace units at Bar Works™ at Jack’s on a fixed rental including the benefit of any rent increases derived from the lease. That means your income will grow over the years and exceed the initial 12.5% yield over time.

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

The cost of each work space is US$30,000, plus you receive a free lifeme worldwide membership to Bar Works™.

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

Based on a Single Workspace

Premium $30,000
Monthly Rent $312
% return per year 12.5%

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

As full 99-year leases, there is no ‘end of term’ buy back offer from Bar Works™ Inc. for these assets. However, Bar Works™ Inc. will retain the right to buy back your lease at a minimum 125% of initial cost - i.e., US$37,500 - at any point after the second year anniversary of investment and in the event of a change in group ownership or status.

Bar Works™ Inc. offers a ‘matched bargain’ facility where leaseholders can sell their leased units at any time if required – and perhaps buy more too!

 

"A trendy building or beauful architecture doesn’t make the atmosphere. The people do. The best way to encourage that energy is through our bar environment"

The business model for Bar Works™ Inc.

The founders of Bar Works™ Inc. believe they have identified three key flaws in the current inner city work space model – accessibility, flexibility and price.

Few, if any, of the current work space providers’ offers an easy access facility, their premises usually requiring prebooking. In major city centers, and parcularly in New York, facilies are almost always booked up for at least a month or more in advance.

In contrast, Bar Works™ is predominantly membership based, and can cope with a more ad hoc working lifestyle – you can walk in off the street, tune into our wi-fi and carry out work tasks from a dining table or a desk as a full member or just for an hour.

Costs of using space with all other operators are also not limited to a monthly rent. Phone, internet and other services are generally extra costs, and can raise the monthly bill by as much as 50% or more. But Bar Works™ offers a fixed-price, all-inclusive deal to members (whether full or part-time) and to ‘passing trade’.

In addition, competing work space locations do not have full catering and alcohol licenses, so that users are forced to eat and entertain elsewhere. The Bar Works™ model means that members can use the premises for all their business-related needs, and network much more effectively in comfort and in contact with their data and resources.

Bar Works™ work spaces have a unique vibrancy, based on people rather than simply on architecture or décor, making these venues ideal for events and networking. Bar Works™ has already held a number of successful Meet Ups (www.meetup.com) at their Manhattan venues, which, even though charging a fee, ensure a regular flow of new people to our venues who subsequently take up membership.

This inviting ‘open door’ style will be replicated wherever Bar Works™ operates in the world, and most especially in our new San Francisco location. Jack’s will be a real hotspot in Frisco’s business district.

Additionally, Bar Works™ aims at all commercial/creative/entrepreneurial acvity rather than purely at the Tech Startup market, thus opening up the target membership to a bigger broader spectrum, and offering a bigger, broader network for members.

Services available for each monthly or daily membership payment include the following :

  • Free internet
  • Free photocopying
  • Free phone connection and national calls
  • Free meeting room use (subject to pre-booking and availability)
  • Free networking
  • No notice period
  • No deposit
  • Free coffee
  • Discounted alcoholic drinks (beer and wine licenses)
  • Free subscription to The Search tech scene quarterly
  • Free technical support
  • Free fax

Bar Works™ offers Limited or Full Membership, and a Virtual Office option.

Capacity at this new Sacramento Street venue will be very much greater than at any of our New York venues, and we are making 300 work stations available for the Wealth Builder Program at this site. We estimate overall capacity will be for approximately 500 fixed desks, and up to 1,500 members.

This compares to our NYC West 39th Street facility where there is capacity for approximately 200 members, with 64 permanent work spaces (usually for full members), 134 flexible spaces (for part-time and temporary members) and 50 additional spaces for virtual office/ad hoc/per day usage.

Our whole philosophy at Bar Works™ Inc. is to facilitate an energized and progressive environment for entrepreneurs, freelancers and travelling business people in the 21st Century world of work at all our venues, large and small.

“An energizing environment is rare to find in a co-working space. A trendy building or beautiful architecture doesn’t make the atmosphere. The people do. The best way to encourage that energy is through our bar environment. You will get a real opportunity to network with your fellow entrepreneurs. Many of the good ideas are generated in such surroundings and this atmosphere is present 24/7.”

Background to Jack’s

The current building first opened in 1864, with Jack’s Restaurant having operated from 1863, and is situated in the western section of San Francisco’s main financial district. It offers roughly 6,000 sq ft of space on several levels.

At 615 Sacramento, Jack’s is just one block away from the City’s most recognizable building, the Transamerica Pyramid. A full US$2m refit of the building was carried out in 1996, adding an elevator and yet retaining the retro features of each floor. Whilst needing some new work to suit Bar Works™’ membership facilities the building is sound and provided with the requisite cabling for full communications access.

Jack’s has survived earthquake, fire and many recessions, and holds a special place in the history of San Francisco, hence its Designated Landmark status in the City. Amongst the many famous names to have been regular visitors to Jack’s is British film director Alfred Hitchcock. He was such a fond regular of the place that one upstairs room was named after him. He is also credited with introducing Jack’s ‘mimosa’ cocktail to the venue and to America!

There is a very long list of famous people who have enjoyed Jack’s in the past, including the likes of Ernest Hemingway and Ingrid Bergman alongside many leading politicians and businessmen. The venue retains a ‘belle epoque’ atmosphere and many iconic late 19th and early 20th Century photographs and posters on its walls.

Nowadays, its position is also on one of the busiest and wealthiest streets for shoppers in San Francisco, thus combining easy access to the business center and retail/tourist district.

“From Bar Works™ Inc.’s perspective, we could not have hoped for a better, more easily accessed or more recognizable venue for our members as the starting point for our growth on the West Coast. And it is an honor to be the new owner of this much loved building, which we will keep open to the public on a controlled basis, i.e., ticketed and guided so as not to be intrusive or insecure for our members.” – Jonathan Black

3rd Floor

2nd Floor

Mezzanine

Ground Floor

Lower Level

Proposals for Landmark Venue

615 Sacramento Street, San Francisco

Bar Works™ Inc. expects to install up to 500 fixed work stations, as well as retain bar, dining and meeting room facilities throughout the five available floor levels.

Approximately one third of all work stations will be reserved for Full and Permanent Members, with the rest allocated for use by Part-time and ad hoc users.

Services available for each monthly or daily membership payment include the following :

  • Free internet
  • Free photocopying
  • Free phone connection and national calls
  • Free meeting room use (subject to pre-booking and availability)
  • Free networking
  • No notice period
  • No deposit
  • Free coffee
  • Discounted alcoholic drinks (beer and wine licenses)
  • Free subscription to The Search tech scene quarterly
  • Free technical support
  • Free fax

Bar and dining facilities will also be available, and Jack’s will be the hub for further planned expansion in the San Francisco area, to include top level networking and information events.

At the same time and in keeping with the building’s Designated Landmark status, Jack’s will retain its unique décor and style and be open to public visits on a ticketed and guided basis. Public visits will also be at fixed times to enable proper and secure management of all visitors. The management company has an obligation to assist in preserving yet making accessible such a significant building in San Francisco’s heritage.

Changing Work Patterns and Global ‘Hot Workspace

In 2014 the US Bureau of Labor Statistics said that by 2020 some “65 million Americans will be freelancers, temps, independent contractors and solopreneurs, making up about 40% of the workforce”. Similar trends can be seen in other developed and developing economies, and this suggests that demand for work spaces will continue to rise in the coming years around the world.

In addition, last November’s issue of the Harvard Business Review (HBR) reported that large corporates had also begun encouraging their employees to use remote co-working spaces because of the benefits all companies and workers can derive from the coworking model.

HBR said: “There seems to be something special about co-working spaces. As researchers who have, for years, studied how employees thrive, we were surprised to discover that people who belong to them report levels of thriving that approach an average of 6 on a 7-point scale. This is at least a point higher than the average for employees who do their jobs in regular offices, and something so unheard of that we had to look at the data again.

It checked out. So we were curious: What makes co-working spaces – defined as membership-based workspaces where diverse groups of freelancers, remote workers, and other independent professionals work together in a shared, communal seng – so effective? And are there lessons for more traditional offices?”

HBR cited several examples of how employees of large corporates are using the co-working model, including using actual remote work spaces, and the journal concluded that co-working spaces enhance success for three main reasons: people who use co-working spaces see their work as meaningful; they have more job control; they feel part of a community.

Thus, the work space model is now also serving a growing number of major corporates as they realize the benefits it brings in terms of worker wellbeing and productivity. And whilst many big corporations may decide to refit their own offices to copy the model, they also seem to be acve in co-working memberships for their staff.

The work-life balance appears to be shifting for employees as well as the self-employed.

The Global ‘Hot’ Work Space

At the end of last year WeWork – arguably the US’s leading provider of co-working space – announced that it expected to expand its number of locaons from 23 to 60 in the course of 2016. This came alongside news of another funding round for the group, a funding that, reportedly, put a US$5 billion valuation on the business.

Since then, WeWork has actually already exceeded that “60 locations” target, and the company is now valued at more than US$10 billion - and all this in the space of not much more than five years since the business began.

Whilst the rapid expansion and high valuation of WeWork has raised concerns from some established commercial property experts and landlords, this corporate phenomenon reflects the huge changes in ways of working and styles of employment that have taken place in the past decade. And these changes are not confined to North America.

“Jack’s has survived earthquake, fire and many recessions, and holds a special place in the history of San Francisco, hence its Designated Landmark status in the City”

Right across the world, the last 10 years have seen a major upsurge in the numbers of entrepreneurs, freelancers and contract workers in developed and developing economies. According to industry tracker Deskmag.com, flexible working spaces grew five times just in the three years to 2013.

There are now more than 50 coworking sites in New York City alone.

Deskmag’s most recent (2015) survey says, “This year’s forecast and trends of the co-working market doesn’t differ strongly from past years according to new results of the Global Co-working Survey. While the co-working industry might have had some stormy and less than desirable market conditions in 2015, with increased real estate prices and challenges in growing awareness, those phenomena don’t have a negave impact on the global development in general, at least not more than in the past. This is the year we’ll see over 10,000 co-working spaces open by the end of 2016.”

“The number of co-working spaces has grown by 36% worldwide at around 7,800. The survey also showed that current spaces serve, on average, a third more members than they did just two years ago.”

However, there are signs that the coworking/ temporary office space market is changing again – towards ‘collaborative spaces’, where workers in a variety of fields/sectors can meet to discuss and display ideas. No-one wants to be locked away in ‘tech city’ anymore.

And – as East London space provider The Brew shows – the ‘serviced office’ model is no longer enough. Space providers these days need to offer “social and networking events”. However, as with so many competors to Bar Works™ Inc., The Brew does not offer full bar and food services that Bar Works’ members value.

Regus – considered the doyen of serviced office providers – has a stock market valuation of around £2.8 billion (US$4 billion), yet looks to be on a downward trend in terms of cash generation. And at the current share price, Regus trades on a rather rich 30 times annual earnings. That is a high price-earnings ratio for what is looking more and more like a tradional property group.

Nevertheless, Regus has continued to grow over recent years and now provides more than 2,300 sites in 120 countries around the world. The demand for work space is certainly still strong, but exactly what the customer wants is shitiing quite markedly in our view – shitiing further away from serviced towards real collaborative coworking space.

Deskmag pointed out some time ago – as a result of earlier survey responses – that :
“One in two members access their workspace around the clock. Only 30% like to work during traditional business hours (9am to 5pm, or 10am to 6pm in most countries). It’s interesting to note the difference between the desired access times and the actual current access – 38% use business hours (meaning there’s a slight demand on more flexible plans). Half-day access is rare, and one in ten members has a limited number of days per month. The monthly 24-7 plan is emerging as the co-working industry standard.”

Bar Works™ at Jack’s

The Group (Bar Works™ Inc.) now owns the freehold building at 615 Sacramento Street, San Francisco, known for over 150 years as Jack’s Restaurant. A Designated Landmark in the City, the building has five floor levels and approximately 6,000 square feet of space.

The venue is located in the financial district – just a block away from the Transamerica Pyramid – and within one of San Francisco’s most vibrant and high value shopping areas.

Still a beacon for tourists – and especially for fans of Alfred Hitchcock – Jack’s is set to become a key venue for co-workers, with Bar Works™ Inc. offering full service work stations at fixed inclusive prices and with full bar and dining facilities.

Bar Works Inc. plans to provide roughly 500 work stations within the building, as well as retain full bar and dining facilities in an historic ambience. The Company expects to aract up to 1,500 members for the venue, as well as many paying visitors and tourists.

Office rental costs in the area have rocketed in recent years, fuelled partly by the tech boom and companies such as Uber Technologies and Pinterest Inc. snapping up space in a limited market, according to analysts at CBRE Group Inc. and Green Street Advisors. Recently published surveys put office rental space in San Francisco’s financial district at close to US$70 per square foot a year, almost on a par with rates in Manhattan and back at previous boom levels.

According to a report from Cassidy Turley, a commercial real estate firm, just six companies have dominated the bulk of leasing activity in recent years. Google, Salesforce, LinkedIn, Twitter, Dropbox, and Uber have signed up millions of additional square feet of space—offices that could house many thousands of new employees.

Co-working space providers have also moved into downtown San Francisco big time, with WeWork currently offering desks at four locations at a minimum price of US$500 per month – before cost of services. Regus is also active in the area, offering short and long-term office space. Neither, however, offers social networking facilities. Nor do they offer all-inclusive prices for services such as printing, photo-copying, phones etc.

For contract workers, self-employed and small businesses, the rents+costs and space squeeze is clearly on. Even if the tech boom starts to fade, it will be sometime before surplus space of the right kind – and at the right price - becomes available for the current and next generation of entrepreneurs and freelance workers.

The Bar Works™ Inc. fixed-price, full service model offers an attractive and workable option to anyone needing work space in the City. And at a location that provides atmosphere, history and real collaborative work space.

Summary of this offer

Bar Works™ Capital LLC owns the freehold of 615 Sacramento Street, known as Bar Works™ at Jack’s. It hasl granted a lease for 99 years 5 months to the operating company Bar Works™ San Francisco 1 LLC.

Investors are invited to purchase 99-year leases from the latter for individual work stations within the new San Francisco venue, Bar Works™ at Jack’s, an historic Designated Landmark in the City’s financial district.

Income returns from the leases are fixed and offer annual returns of 12.5%. The leases are tradable and subject to a fixed 125% minimum buyback price on or atter the second anniversary of investment at the discretion of the Company. The fixed initial purchase price of each work station lease is US$30,000, and there is limited availability.

Returns are based of the Bar Works Wealth Builder Program.

Based on a Single Workspace

Premium $30,000
Monthly Rent $312
% return per year 12.5%
  • Guaranteed returns, payable monthly from point of investment – i.e., first income payments received 14 days from start of investment
  • Rents payable to investors will rise in line with increased gross rentals achieved for Full and Permanent Members at the venue
  • If Company’s buyout clause is activated, a minimum capital price of US$37,500 is payable
  • No automatic end of lease buyout
  • Matched bargain facility available via Company for investors wishing to trade leases
  • Free lifetime worldwide membership to Bar Works™
  • All legal and administrative costs included in the purchase price
  • Participation in and income from one of the world’s fastest growing real estate sub sectors
  • High quality, historic location in the financial district of San Francisco
  • Investors may sell their lease on the open market

JOIN US AT JACK’S – STILL AN ICON FOR SAN FRANCISCO’S FINANCIAL DISTRICT MAXIMUM OF 300 WORK STATIONS AVAILABLE