The Gateway Business Strategy

Gateway Opportunity Fund is a real estate secured Qualified Opportunity Fund. All investments made by the Fund will be in low risk real estate developments and businesses located in designated qualified opportunity zones.

Investments:

Our first round offering of $30,000,000 is designated for the “shovel ready” Gateway Marina and Resort at Lighthouse Landing, which is located in a Qualified Opportunity Zone on the banks of the Mississippi River at I-270 in St. Louis, Missouri . The $400 million development on approximately 70 acres will consist of a first class marina and boardwalk, multiple hotels and a conference center. The project will be enhanced with additional retail and entertainment attractions including a world class Indoor Water Park and Hotel, and multiple riverfront Restaurants and Shops and much more.

Adding exceptional value to this project is the St. Louis Zoos’ announcement of having acquired 425 acres two miles north just past our front door to build a new Safari Park. The existing downtown zoo attracts over 3 million visitors annually. Our development will serve as the main (and really only in the area) hospitality destination for visitors to the Safari Park. We will partner with the zoo to “theme” several of our attractions with wildlife characters and designs.

Because of our location and amenities, Gateway Marina and Resort at Lighthouse Landing will become the “Go to Location” in the Center of America with unmatched riverfront views, activities, exceptional hospitality, and direct access to the Mississippi River.

The Gateway Opportunity Fund will be fully secured with real estate through the purchase and development of the site. The Founders of Gateway Opportunity Fund have the site secured, zoned, entitled with multiple incentives, and ready for development. In fact, the first sale on the site consisting of a two (2) acre tract, has been completed and site work has already begun. The lot sold for $2,100,000 (a little over $1,000,000 an acre, or approximately $24.10 per sq. ft.).

The Founders have obtained a LOI from an international marina developer for the marina and riverfront amenities – dry stack boat storage, hotel, condos, restaurants & retail. The Founders also have obtained a LOI from a large resort developer for a 350 room themed Hotel and world class 80,000 sq ft Indoor Water Park. The Fund will partner with these developers to provide the required Equity to see these projects come to fruition.

The Fund will also look to provide required equity to qualified developer/owners to complete the balance of the hospitality, food & beverage, entertainment and retail components of the Resort, insuring compatibility and consistency throughout the Lighthouse Landing development. These investments will all be in real estate secured qualified opportunity zone property.

Experienced Management:

We have assembled an all-star management team consisting of seasoned real estate professionals, top proven entrepreneurs and respected local leaders.

Our development executives have “been there and done that” in most every area in the commercial real estate world. With over 100 years combined experience in the Midwest, Las Vegas, California, Florida and the Caribbean, Gateway’s leadership has the experience and knowledge that turns commercial real estate developments into financial successes.

Jobs:

We have entered discussions with the local trade unions regarding their job training programs and intend to partner with the St. Louis Job Corp. to provide job training, scholarships, and intern opportunities for their students leading to job opportunities in the market place as well as future permanent jobs that will be created as a result of our development.

We anticipate the Lighthouse Landing project will create over 2,000 construction and 3,500 permanent jobs respectively.

In addition, the Founders have met with other regional community leaders to discuss investment in redevelopment projects in other area opportunity zones. These projects will lead to even more job creation and will be analyzed by our experienced management team to determine maximize returns while minimizing the risk through real estate secured investments.

Timing:

The Fund will immediately invest in the land and site improvements to fully develop the site and create marketable lots. It is anticipated the marina and ancillary riverfront amenities and the hotel and indoor water park will begin construction soon after site completion. We anticipate to in-fill the site with other hospitality, retail, entertainment and food & beverage businesses and invest additional Fund capital within 24 months.

All funds raised will be deployed within the 31 month “safe harbor” period.

Liquidity:

The Founders and management of the Fund are keenly aware of the liquidity needs of the investors. The management will develop an annual liquidity plan to provide the long term cash needs of investors. The Plan will address among other items the cash flow needs to fund the following:

1.  Investor’s Tax Liability on the original gain deferral due December 31, 2026.
2. Provide adequate liquidity to fund investors’ desire to liquidate their investment upon completion of the minimum 10 year holding period.

To provide the required liquidity and an exit for investors, the management anticipates utilizing the strategy of maintaining reasonable cash reserves, selling real estate assets held, recapitalization of business assets, as well as exploring the potential of taking the Fund public to generate requisite liquidity needs, and participating in the Entrex trading platform that allows investor to sell or trade their shares based on their investment strategies and needs. Management will maintain direct relations with Investors to assist in their cash flow needs and liquidity requirements.

Returns:

Based on our cash flow and investment projections we forecast a return of 19% IRR. The Fund’s investments are formulated to generate returns through a combination of land sales and equity investments with a target per share price of $3.52 in year 10.

Fees:

The Fund’s management is committed to operate the Fund at the lowest possible fees and operating expenses of any Opportunity Fund. The priority of Management is to maximize Investor returns by minimizing the operating expenses of the Fund. We see many Opportunity Funds charging its investors 3.5% – 5% just for management fees. Our forecasts are based on minimizing total overall fund operating expenses, including management fees, at 4% of Fund Value. We believe this conservative style of expense management will provide adequate resources to operate the Fund and manage all of its investments and projects while maximizing its Investors’ returns.

Our Pledge

To create long lasting community assets that create new employment opportunities and improve and enhance life experiences, while achieving our investment goals and protecting our investors capital.

Thank you for your interest in Gateway Opportunity Fund, we hope you will learn more about our Fund and our ready to go project. We look forward to working with you to great success.