Demo Project Orange

Golaski Labs is a $7.2 million, 40,000 square foot planned mixed-use development located at the corner of Wayne Avenue and Apsley Street, a visible corner on a commercial corridor in Wayne Junction, Philadelphia. The site is the former Dacron blood-vessel replacement manufacturing factory located at 4537 Wayne Ave, Philadelphia, PA 19144 (the “Property”).

The Property has been owned by the Golaski Family since the 1970s (the “Golaski Family”). After the death of their father, the Golaski children approached Mosaic Development Partners, LLC ("Mosaic Develoment") to develop a partnership to revitalize the Property into an innovative, chic and transformative community project, similar to Mosaic Development’s award-winning Eastern Lofts Project in Strawberry Mansion. The former manufacturing facility will be rehabilitated to house 1) an open kitchen studio/restaurant operated by famed Brooklyn chef Sylva Senat, 2) a multi-cultural co-working space to serve as an incubator and training facility for start-ups, early stage and established business entities, 3) thirty-nine residential units and a private courtyard and 4) the new headquarters for Roofmeadow, a woman-owned landscape architecture and civil engineer design firm specializing in green roofs (the “Project”).

Mosaic Development generally combines tax credits, grants and debt to support the development of their projects. Since the Project will utilize New Markets Tax Credits (“NMTC”) and take advantage of the newly enacted Opportunity Zones, the legal structure is complex. You can download a chart of the Project’s legal structure here. To provide for this structure, Mosaic Development created several entities. There are two companies that investors may invest in. Depending on investors’ personal finances, they may invest in the Reg CF offering and purchase limited liability company interests in Mosaic 4537 or invest in the Reg D (506(c)) offering and purchase limited partnership interests in Mosaic Opportunity Zone Fund, LP (“Mosaic OZF”) or invest in both offerings. The returns outlined in this offering requires an investment in the specific company.  Throughout this offering, the use of Company refers to either Mosaic 4537 or Mosaic OZF, based on the context.  We also refer to Mosaic 4537 and Mosaic OZF together, as the “Companies”.

The Wayne Junction section of Philadelphia is one of Philadelphia's older neighborhoods which has suffered from years of neglect and loss of investments. The Project is located in census tract 42101024400 (the “Census Tract”). According to the US Census Bureau, the Census Tract has a poverty rate of 30.5% and is considered a severely distressed neighborhood. In addition, the Census Tract is also an Opportunity Zone. The recently passed Tax Cuts and Jobs Act of 2017 created Opportunity Zones, which are economically-distressed census tracts designated by the state governments where new investments, under certain conditions, may allow some investors (those who invest in the Reg D (506 (c)) offering (described in “About the Offering”) to claim tax breaks on capital gains taxes, depending on how long they hold investments in the property in an area designated as an Opportunity Zone.  On October 19, 2018, the Department of Treasury, Internal Revenue issued proposed regulations related to Investing in a Qualified Opportunity Fund. 

The Project is situated on a one-acre site and is poised to create a catalyst for positive change by bringing new commerce and high-quality market and affordable housing to the community. When complete, the Project will comprise of a mixture of old and new. Further, the Project will be constructed using modular building techniques on the vacant land of the Property. The residential units will be equipped with hi-tech voice/phone control technology and rents will be targeted between 80% - 120% of area median income (“AMI”). HUD establishes income limits for assisted housing every fiscal year. These income limits are available by family size and are defined as “extremely low income” (30% of area median income), “very low income” (50% of area median income), “low-income” (80% of area median income) and “moderate income” (120% of area median income).

Other planned amenities are a 24-hour fitness room, secure bike room, a zip car space and additional limited on-site parking. The Project is within walking distance to the Wayne Junction regional rail station, which is an 11-minute train ride to Center City Philadelphia. The Project is complimentary to other planned development projects in the neighborhood. Another developer, Ken Weinstein, has acquired and plans to invest approximately $12 million to rehabilitate seven surrounding buildings. 

The Project has support from the community and Councilwoman Cindy Bass, the local Philadelphia councilperson for the 8th District. The development team will be working this fall to finalize zoning, construction plans and the final capital stack with an intended 4th quarter 2018 closing. Construction completion is planned for Spring of 2020.

The development team includes the following: