A single Atmosphere location's REIT rent set against its PEIT operating income — with every cost of delivery shown on the page, not buried. Two public precedent deals anchor the two halves of the thesis. The number that survives scrutiny is not the gross multiple; it is the one left after the bill.
Each deal proves a different leg of the model in the open market — one for the asset, one for the operating layer.
A fading regional mall being transformed into a walkable, mixed-use place to live — by three disciplines at once: retail operations, residential development, and investment capital.
CBRE acquired an experience operator that owns no buildings — running revenue-share partnerships with property owners — and built a new segment around it, "Building Operations & Experience."
A 200,000 sqft asset. REIT 1.0 leases it once, statically. PEIT operates it and stacks several revenue layers — then pays the cost of running each one. Both sides are shown.
So the cost of delivering each layer is on the page. This is where Atmosphere separates from both a hotel and a traditional mall: the building itself runs light — power, HVAC, connectivity and a lean 10–15 person team, about $0.50/sqft per month — but every revenue layer still carries its own cost of goods. Membership promises free coffee, water and wifi. The Stage needs production crew. The Arcade is a serviced workspace, and workspace is expensive to run.
Not a $/sqft guess. Built from traffic, converted conservatively, and discounted for churn — the way a subscription business is actually underwritten.
Single-location economics held constant, shown at one and fifty locations. NOI, not gross — the figure the enterprise value is actually built on.
| Scale | REIT 1.0 NOI/yr | PEIT gross/yr | PEIT NOI/yr | NOI uplift |
|---|---|---|---|---|
| 1 location | ~$3.0M | ~$25.5M | ~$11.2M | ~3.7× |
| 50 locations | ~$150M | ~$1.3B | ~$560M | ~3.7× |
Not all locations open in Year 1; rollout pace and ramp-up are modeled year by year in the full model. Fifty locations is ~10M sqft — an ambitious but defensible decade target. A 500-location figure is deliberately not shown here: at ~100M sqft it would rank among the three largest retail owners in the country, and belongs in a long-range scenario, not a unit-economics page.
The two anchors from the CBRE / Industrious deal link the portfolio model's enterprise value and its Year 1→5 growth to a real precedent.
~$800M EV ÷ ~200 units. As a conservative floor: 50 locations → ~$200M enterprise value. Industrious units are far smaller than a 200,000 sqft Atmosphere, so a real location sits above this floor rather than at it.
The asset-light operator's compound revenue growth since 2021, confirmed by CBRE at close. It sets the upper reference for the ramp curve — how fifty locations fill from Year 1 to Year 5.
All $/sqft values, percentages, multiples and dollar figures on this page are rounded assumptions chosen for illustration only — not a valuation. The single largest sensitivities are the membership conversion rate, the visit-to-member ratio, and the cost-of-delivery percentages on each layer; optimistic, base and pessimistic sets, with real $/sqft inputs, will be established in the full model. The 44% operating margin is a modeled assumption, not a result.
Lakewood Center (Pacific Retail Capital Partners / Lyon Living / Silverpeak) and CBRE / Industrious are public precedent deals, independent of Fifth Wall PE, cited as reference and analogy only. Role mappings are an analytical framework, not a claim of affiliation. Nothing here is an offer of securities or investment, legal or tax advice.