Executive Summary
The Investment at a Glance
The Music Union 512 · Chapter 512 · Austin, Texas · musicunion.co · Confidential — March 2026
You are not investing in a music venue. You are investing in the first chapter of the Soho House of music — a branded, scalable, national institution for the people who make music for a living.
The Opportunity
Austin is the Live Music Capital of the World. It is home to more working musicians per capita than any other American city, a $2.8B+ annual music economy, and a creative community that spans musicians, producers, photographers, videographers, booking agents, publicists, and brand strategists.
Those people have nowhere to work. Practice spaces are scarce, expensive, and uninspiring. Recording studios are either budget-grade or unaffordable. Podcast and content studios do not exist at scale for the mid-tier creator. The music industry's coworking professionals — the layer that keeps the business running — work from home or generic WeWork spaces with no connection to the community they serve.
The Music Union 512 is built to close that gap: a 44,528 SF creative campus designed from the ground up for the music and content industries, with seven revenue-generating zones, a cross-city membership program, and a design philosophy that makes every square foot a content destination.
Austin's 512 is one of the most beloved area codes in the country — worn on hats, tattooed, built into civic identity. The Music Union 512 is named for the city it anchors. The second chapter becomes 615. The third is 213. Each chapter belongs to its city and to the national institution simultaneously.
The Property
4405 Springdale Road is a 44,528 SF Class B flex building on 3.01 acres at the corner of MLK Jr. Blvd and Springdale Road in East Austin — one of the city's most rapidly appreciating creative corridors. The building is currently occupied by the Texas Workforce Commission, whose lease expires August 31, 2026, delivering vacant possession at precisely the moment the Austin creative market needs this campus.
| Metric | Detail | Significance |
|---|---|---|
| Address | 4405 Springdale Road, Austin TX 78723 | Corner lot, MLK + Springdale |
| Size | 44,528 SF on 3.01 acres | Large enough for all 7 zones plus parking |
| Zoning | EZ-ZR (East Austin) | Music venue, rehearsal, retail, office — all permitted |
| Current Tenant | Texas Workforce Commission | Lease expires Aug 31, 2026 — vacant delivery |
| Travis CAD | $4,500,000 (land only) | Strong land value; building at 21% below ask |
| Flood Zone | FEMA Zone X | No mandatory flood insurance |
| Target Offer | $7.5M–$8.25M ($171–$188/SF) | 21%+ below seller ask of $10.5M |
| Seller Motivation | Susser Bank loan matures ~Oct 2026 | Hard deadline creating negotiating leverage |
The Concept
The Music Union is a national creative campus brand. Each location — called a chapter, identified by the local area code — operates the full suite of services under a single brand, a single membership program, and a single design standard. Chapter 512 in Austin is the proof of concept. Everything about it is designed to be replicated.
Seven Revenue Zones, One Campus
| Zone | Format | SF | Stabilized Revenue |
|---|---|---|---|
| Zone A — Rehearsal Complex | 25 themed rooms, 4 tiers, hourly | 13,000 | ~$1,814,000/yr |
| Zone B — Production Suites | 3 professional recording suites, hourly | ~6,000 | ~$626,000/yr |
| Zone C — Creator / Podcast Studios | 5 themed content studios, hourly | 3,500 | ~$329,000/yr |
| Zone D — Coffee · Bar · Union Stage | Union Builds, NNN anchor | 3,000 | ~$82,500/yr |
| Zone E — Music Industry Coworking | 7 named private suites + The Floor | ~10,000 | ~$304,000/yr |
| Zone F — The Union Stage | Live venue, full bar, 300–500 cap | 7,500 | ~$769,000/yr |
| Zone G — Union Locker | Storage · instrument consignment · gear rental | ~1,500 | ~$78,000/yr |
| Membership Revenue | Union Card — 8 tiers, cross-chapter | — | ~$270,000/yr |
Every Surface Is a Set
Every zone is designed to function as both its primary operational purpose and a photogenic content destination. Zone A's 25 rooms are individually themed — The Dungeon, The Speakeasy, The Forest, The Record Store, The Void — each designed to produce compelling social content every time a musician sets up and rehearses. The lobby features a Neon Forest. The south exterior wall carries 200 feet of commissioned murals. An Airstream serves as the merch booth outdoors.
This design philosophy is not purely aesthetic. Under the OBBBA's permanent 100% bonus depreciation rules, every themed installation — neon signs, removable panels, commissioned art on mounted panels, specialty lighting, staged furniture — is classified as personal property eligible for immediate Year 1 write-off, not structural (39-year) depreciation. The design standard and the tax strategy are the same decision.
The Brand & Chapter System
The Music Union is named deliberately. "Union" implies collective ownership, mutual benefit, and shared belonging. Union members have cards, benefits, and standing. Unions have chapters. Chapters have numbers. The entire national expansion architecture is embedded in the name itself.
The Union Card
Every member carries a physical Union Card — wallet-sized, etched metal, heavy enough to feel like it means something. A hole is punched on one end: it can be worn on a lanyard at The Union Stage on a Saturday night the way a backstage pass is worn. Each tier has a materially distinct card — brushed steel for Rehearsal Members, matte black for Studio Members, gold-finish for Union Members.
Union Card — 512 · Austin
Eight Membership Tiers
| Tier | Monthly | Core Value |
|---|---|---|
| Founding Partner | Equity / Comped | Permanent recognition, governance, first right on future chapters |
| Union Elder | Included | Constitutional vote, maximum dividend — 5yr+ members |
| Union Member | $249 | 20% off all zones, locker, guest list standing |
| Studio Member | $149 | 10% off all zones, production suite priority |
| Rehearsal Member | $99 | 10% off room rates, priority booking |
| Patron (Fan) | $99 | Reserved seats, private events, Patron card |
| Friend of the Union (Fan) | $49 | Early tickets, guest pass, Observer Events |
| Local (Fan) | $25 | Early access, bar discount, digital Union Card |
A single music campus is a good business. A national network of music campuses is a different category of institution entirely. The Music Union, at scale, is positioned to become the institution working musicians have never had — the institution every other profession takes for granted.
512 · Austin
The Team
Taylor Robinson
Co-Founder, Technology & Growth
Founder and CEO of Taylor Robinson Music (TRM) — the nation's largest private music lesson marketplace, with 323,000+ students served and 26,000+ active instructors across all 50 states. Full-stack engineer. Professional guitarist. Leads technology platform, investor relations, dynamic pricing, and growth strategy.
Daniel Lindenberg
Co-Founder, Real Estate & Finance
Partner at JAR Real Estate (Houston/TX), specializing in retail strip center acquisition, development, leasing, and property management across 12+ Texas properties. Former VP Operations, AEGIS Hedging Solutions. Leads acquisition structuring and financing, construction management, Zone D/E leasing, and lender relations.
Jeff Munn
Co-Founder & General Manager (Full-Time)
BS Engineering Physics, Colorado School of Mines. 20+ years as a professional working musician. Software solutions marketing background. 500+ active Austin music industry connections spanning working bands, session musicians, engineers, producers, booking agents, venue operators, and label professionals. Leads day-to-day operations, music programming, Zone F venue booking, and Austin community engagement.
Financial Summary
Capital Structure
| Use of Capital | Amount |
|---|---|
| Acquisition (target offer) | $8,250,000 |
| Zone A–C Buildout (Rehearsal + Production + Creator) | $1,750,000 |
| Zone F — Venue & Bar (7,500 SF) | $1,050,000 |
| Zone B — 3rd Production Suite Upgrade | $300,000 |
| Zone D — Union Builds Buildout (~$125/SF) | $375,000 |
| Zone E — Music Industry Coworking Buildout | $300,000 |
| FF&E — All Zones | $300,000 |
| Closing Costs & Soft Costs | $125,000 |
| Contingency Reserve (incl. Zone G) | $165,000 |
| Working Capital Reserve | $450,000 |
| TOTAL CAPITAL DEPLOYED | $13,065,000 |
Seven-Year P&L (Base Case)
| Metric | Y1 (2027) | Y3 (2029) | Y5 (2031) | Y7 (2033) |
|---|---|---|---|---|
| Total Revenue | $2,258K | $4,350K | $4,897K | $5,400K |
| Total Operating Expenses | ($1,020K) | ($1,175K) | ($1,242K) | ($1,384K) |
| Net Operating Income | $1,215K | $3,133K | $3,593K | $3,938K |
| Total Debt Service | ($753K) | ($753K) | ($753K) | ($753K) |
| Net Cash Flow to Equity | $462K | $2,380K | $2,840K | $3,185K |
| Cash-on-Cash Return | 10.1% | 52.0% | 62.1% | 69.6% |
| DSCR | 1.61× | 4.16× | 4.77× | 5.23× |
Exit & Investment Returns
| Scenario | Worst Case | Base Case | Best Case |
|---|---|---|---|
| NOI Year 7 | $1,887K | $3,902K | $6,160K |
| Implied Asset Value Y7 | ~$21.5M | ~$58.6M | ~$107M |
| Equity Invested | $4,573K | $4,573K | $4,573K |
| Leveraged Equity Multiple (Y7) | 6.2× | 14.7× | 24.4× |
The Tax Advantage
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, permanently restored 100% first-year bonus depreciation on qualifying assets for property acquired and placed in service after January 19, 2025. The Music Union 512 qualifies in full.
| Tax Metric | Standard CRE | ESAS + Union Builds |
|---|---|---|
| Year 1 eligible deductions | $2.5M–$3.5M | $3.8M–$5.2M |
| Year 1 interest expense deduction | $0 (all-cash) | ~$632,823 (leveraged) |
| Total Year 1 K-1 deductions (leveraged) | $3.1M–$4.1M | $4.4M–$5.8M |
| Collective tax savings at 37% bracket | $1.1M–$1.5M | $1.6M–$2.1M |
| $1M Founding Partner — Year 1 K-1 deductions | ~$670K | ~$800K+ |
| $1M Founding Partner — Year 1 tax savings (37%) | ~$248K | ~$296K+ |
| Texas state income tax | $0 | $0 — no state income tax |
The Investment
What We Are Building
- Chapter 512 of a national music campus network — the first in a repeatable, branded playbook
- A permanent cash-flowing real estate asset in one of the fastest-appreciating creative corridors in America
- The founding chapter of an institution: cross-city membership, touring circuit, group insurance, national sponsorship
- A depreciation-amplified investment structure where the design philosophy and the tax strategy are the same decision
What Founding Partners Receive
- Pro-rata equity in The Music Union 512 LLC with full pass-through economics
- Proportional Year 1 K-1 depreciation deductions — $670K–$800K+ for a $1M investment
- Permanent Founding Partner recognition — named on the building, annual dinner, dedicated contact
- Complimentary lifetime access to all zones and all shows at every chapter, for life
- First right of refusal on future chapter investments before outside capital is solicited
- Founding Partner card — the heaviest-gauge metal card in the Union Card system, founding year etched
- Full operational governance rights from Day 1
Financing Structure
| Parameter | Detail |
|---|---|
| Total Project Cost (Debt + Equity) | $13,065,000 |
| Equity Raise (35%) | $4,573,000 — from Founding Partners and co-investors |
| Commercial Mortgage (65%) | $8,492,000 at 7.5%, 25-year amortization |
| Annual Debt Service | $753,062 (level payment) |
| Year 1 DSCR | 1.61× (lender minimum typically 1.20×) |
| Year 7 DSCR | 5.23× — asset becomes largely self-funding by mid-hold |
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