STUDIO NOIR

Private · Master Plan · v1.0
STUDIO NOIRBUILDOUT BUDGET

STUDIO NOIR · Buildout Budget

Phase 1 total: $41,000 ($30,000 cash buildout from Bucket 3 + $11,000 equipment lease principal). No landlord TI assumed in the baseline. Line-by-line breakdown in 05_FINANCE/00_STARTUP_BUDGET.

Phase 2 total: $3.5M to $5M (rebuilt in 2028).

Phase 1 buildout budget summary

Full line-by-line breakdown lives in 05_FINANCE/00_STARTUP_BUDGET Bucket 3. Reproduced here for reference. The Phase 1 buildout is scoped to a 1,500-1,800 sqft second-generation retail suite (bias to something already fit for wellness or a similar tenant).

Line Amount Funded by
Sprung floor + marley (partial coverage, pole floor priority) $6,000 Cash Bucket 3
Mirror wall (one wall only, floor to ceiling) $2,500 Cash Bucket 3
6 pole rigs installed (poles + certified rigger + ceiling reinforcement) $6,000 Equipment lease
Sound system (amp + speakers + subwoofer, Trill-spec) $3,500 Equipment lease
Moving lighting fixtures $1,500 Equipment lease
Sound treatment (acoustic panels) $2,000 Cash Bucket 3
Restroom refresh (fixtures + paint, not gut) $2,500 Cash Bucket 3
Reception + concierge desk millwork $3,500 Cash Bucket 3
Concierge station appointments (prosecco chiller, glassware, tea vessels, florals) $1,500 Cash Bucket 3
Signature scent diffuser + first quarter refills $800 Cash Bucket 3
Paint + patch (full studio, brand palette) $2,000 Cash Bucket 3
Furniture: waiting bench, member library chairs, side tables $2,500 Cash Bucket 3
Custom lighting: pendant over concierge, sconces in vestibule $1,500 Cash Bucket 3
Signage (exterior wordmark + interior brand moments) $2,500 Cash Bucket 3
Buildout contingency $2,700 Cash Bucket 3
Phase 1 Total $41,000 ($30,000 cash + $11,000 equipment lease)

Overrun policy. If a buildout item runs over the $2,700 contingency, next lever is the Chase Line of Credit (undrawn bridge), not the operating reserve. Every draw has a repayment plan attached. Options for cutting before drawing LoC: fewer poles (start with 4 instead of 6), skip the exterior signage upgrade, use portable spot cooling instead of HVAC upgrade. Any landlord TI negotiated in the signed lease is upside — it either reduces this bucket dollar-for-dollar or funds a scope upgrade.

Phase 1 payment schedule

  • 10-15% deposit at GC contract signing (mobilization)
  • Progress draws every 2 weeks against milestone completion
  • Final 10-15% withheld until final punch list complete and Certificate of Occupancy issued

For the $30K cash buildout that’s: - Deposit: $3K to $5K - 3 progress draws of $6K to $8K each - Final retention: $3K to $5K

Cash flow implication: we need most of the $30K Phase 1 cash buildout tranche available in the operating checking account at contract signing. The whole tranche gets spent over ~8 weeks. Equipment lease (~$11K principal) flows lessor-to-vendor at delivery and does not pass through our operating account.

Real estate cost (separate from buildout)

Phase 1: - Lease deposit + first + last month rent: $12,000 (see 05_FINANCE/00 Bucket 2; rent target ~$4,000/mo all-in with no TI amortization) - No commercial mortgage Phase 1

Phase 2 (rebuilt in 2028): - Lease scenario: monthly rent $22K to $50K depending on flagship footprint. Deposit + first + last = $66K to $150K. - Buy scenario: purchase $2M to $6M with 20-30% down + closing costs. Not the base case Phase 2.

Phase 1 cost drivers to watch

Even with a fixed-bid GC contract, some items can surprise. Watch for:

  1. Structural reinforcement for pole rigging. If the ceiling requires supplemental steel or blocking, budget can add $2K to $8K. If it’s $8K+, walk from the property.
  2. HVAC. If existing system is barely adequate, supplemental spot cooling is $2K to $5K. If a full new mini-split addition is needed, $5K to $10K. Blow the budget only if we have no choice, and cut somewhere else.
  3. Restroom fixture upgrades. If existing restrooms need re-tiling or major fixture replacement, easy $3K to $8K overrun.
  4. Signage. Exterior signage rules vary by landlord and local code (Raleigh, Cary, or Durham). Some landlords require expensive custom signage that fits building character. Verify signage rules before lease signing.
  5. Certified rigger for pole installation. Non-negotiable. Budget $500 to $1,000 per pole for certified installation. Six poles = $3K to $6K just for installation labor.

If any of these push the cash Bucket 3 over $30K by more than the $2,700 contingency, next lever is the Chase Line of Credit (bridge, with a written repayment plan), not the operating reserve. If we’re looking at a $10K+ overrun before we’ve even started poles, the plan has to change (reduce number of poles, skip a scope, renegotiate the deal, or walk).

Phase 2 buildout budget (preserved for reference, rewritten in 2028)

At Phase 2 flagship scale (8,000 to 15,000 sqft), buildout is fundamentally different. Preview here.

Phase 2 all-in cost estimate

  • Hard cost (construction): $2.2M to $3.5M
  • Soft cost (A&E, permits, PM, legal, insurance): $350K to $600K
  • FF&E (furniture, fixtures, equipment): $400K to $750K
  • Technology and AV (including broadcast): $400K to $700K
  • Contingency (15% of hard cost): $330K to $525K
  • Total capitalized buildout: $3.5M to $5.5M

Phase 2 landlord TI (Tenant Improvement) offset

  • Target TI: $50 to $75 per sqft on a 10-year lease term
  • On a 10,000 sqft flagship: $500K to $750K TI credit against buildout
  • Net capitalized buildout after TI credit: $2.75M to $4.75M

Phase 2 funding stack (rebuilt in 2028)

  • Landlord TI: $500K to $750K
  • Bank loan or SBA 7(a): $750K to $1.5M
  • Equipment financing (FF&E + tech): $300K to $500K
  • Phase 1 retained earnings + founder cash: $150K to $400K
  • Outside equity (HNW angels): $1.5M to $2.5M
  • Operating reserve (separate from buildout): $250K to $500K

Phase 2 gate discipline

  • Gate 1: Site under LOI. Update budget with actual shell condition. Trill + Taj sign.
  • Gate 2: Design development at 50%. GC preconstruction estimate. Reforecast within 5%.
  • Gate 3: Construction documents at 100%. GMP (Guaranteed Maximum Price) contract signed. Lock the number.
  • Gate 4: 25% construction complete. Reforecast. Contingency draw report.
  • Gate 5: Substantial completion. Final reconciliation and contingency return.

Full Phase 2 line-item hard cost, soft cost, FF&E, technology, permits, and contingency breakdown will be rebuilt in 2028 alongside the retained architect and GC.

  • Startup budget (Phase 1 all buckets): 05_FINANCE/00
  • Property targets: 04_REAL_ESTATE_BUILDOUT/00
  • Build spec: 04_REAL_ESTATE_BUILDOUT/03
  • Architect + GC selection: 04_REAL_ESTATE_BUILDOUT/04
  • MEP + structural + acoustic requirements: 04_REAL_ESTATE_BUILDOUT/05