OUTLIER / FOUNDING OWNER
This is your personal invitation to own both a heritage piece of San Francisco history and a culture and brand built to travel around the world.
This is the inner circle that Elyse Lee, Michael Clark and Zach Bell are designing the future with. Outlier is not a club we are building and then selling memberships to from an apply link. This is a house that belongs to a small, eclectic group of owners. Membership, programming and the use of the building are shaped around us—what we want to happen here and what we need to use the space for. A wider circle of annual and lifetime members grows naturally from us.
01 / THE POSITION
You own the house.
01 / PROPERTY
Not a membership, not a key: the building and the company that runs it.
02 / BELONGING
Founding membership in Outlier for you and your household, for life.
03 / ACCESS
First call on the rooms, the private dining room, the onsen and the entire building.
04 / STEWARDSHIP
A seat at the founders’ table: help decide who joins, what the house programs and what gets built next.
05 / LEGACY
Your name in the house, if you want it there.
06 / CONTINUITY
Founding status carries to every Outlier house that follows. Founders are first in line as members and investors.
02 / THE DEAL
One commitment. Two companies.
Outlier is raising $15 million from 10 to 15 founding owners by Oct 31. Every founder invests in both the property and the brand. The property has been conservatively underwritten as a hotel, restaurant and members club, allowing the team to operate it as an art project led by experts in real estate and hospitality.
70–80% / PROPERTY
20-30% / brand
70–80% / PROPERTY
Dharma Bums Holdings LLC
Join the partnership owning 1409 Sutter St at a $7.3M purchase price plus $5M renovation. Membership interests in PropCo are at par with initial capital: no markup, no debt, and an 8% preferred return accruing from day one, paid as cash allows and at liquidity.
20–30% / BRAND
Outlier Inc.
Own the brand, membership, events and future houses. The investment is a SAFE converting into preferred stock at a $20M post-money cap. Outlier Inc. earns a 5% brand royalty on the San Francisco house and can extend the brand through events, membership and future properties.
DISTRIBUTION / GOVERNANCE
In the property company, the capital that bought the building is returned first, then founding-owner capital, then an 8% annual cumulative preferred return. Thereafter, 70% goes to owners and 30% to the operating team. Michael Clark’s Aequus Investments manages the company until its capital is returned; Elyse Lee and Zach Bell manage it after that. Brand-company preferred stock converts at the $20M cap or the next priced-round price.
03 / EXECUTION
Three documents. Two wires.
The source documents are provided separately. This page is a reading guide to the founding-owner invitation; review the agreements themselves for the operative terms.
01
Dharma Bums Holdings LLC Amended and Restated Operating Agreement — sign the member signature page.
02
Dharma Bums Holdings LLC Subscription Agreement — subscription amount, accreditation and spousal consent where applicable.
03
Outlier Inc. SAFE — purchase amount.
OUTLIER SAN FRANCISCO / 1409 SUTTER ST / FOUNDING OWNERS