Tobin & Company Securities LLC (TOBIN), often lovingly referred to as “Tobin and Co,” served as the Managing Broker-Dealer for the innovative Live Venue Recovery Fund, LLC, an initiative launched by Grubb Properties. This fund was established as a response to the severe impacts of the COVID-19 pandemic on the live music industry, particularly independent venues that form the cultural backbone of communities across the United States.
The $30,000,000 fund was developed in collaboration with Dayna Frank, a concert venue owner and the president of the National Independent Venue Association (NIVA), highlighting a strategic partnership that leveraged Frank’s industry insights and Grubb’s real estate expertise. This partnership aimed to acquire independent music venues, providing not only capital but also strategic support to venue owners, helping them navigate the challenges exacerbated by the pandemic, and ultimately offering them the option to repurchase their properties.
Justine Tobin, CEO of TOBIN, emphasized the importance of this fund in supporting cultural landmarks susceptible to redevelopment pressures. Under her leadership, TOBIN ensured rigorous compliance with securities laws, effectively managing the fund’s capital raising process. This included overseeing the investment of funds in ways that were not only financially prudent but also socially impactful, providing a lifeline to a sector that lost an estimated $30 billion in revenue in 2020.
The fund’s strategy was twofold: to safeguard the cultural heritage of live music venues and to ensure their financial sustainability. The first acquisition under this fund was Headliners Music Hall in Louisville, Kentucky, with discussions ongoing for other iconic venues such as Exit/In in Nashville, Tennessee. These moves underscore the fund’s commitment to preserving the unique musical heritage of each city while strengthening the overall live music ecosystem.
The initiative also included plans for physical improvements that could be made during periods when the venues were not operating at full capacity, such as renovations and upgrades to enhance the visitor experience. This thoughtful approach ensured that once the pandemic restrictions were lifted, these venues would be able to offer enriched experiences to patrons and artists alike.
Financially, the fund aimed to achieve an internal rate of return exceeding 12%, with any returns above this threshold pledged to the National Independent Venue Foundation, further supporting the broader live music community. The establishment of an advisory board was also planned, to guide the fund’s operations and ensure alignment with both investor expectations and community needs.
The Live Venue Recovery Fund, LLC not only exemplifies Grubb Properties’ innovative approach to real estate investment but also highlights TOBIN’s adept management as a Charlotte investment bank. This case study serves as a powerful example of how strategic investment can be employed not just for financial gain but also for significant community service, providing a lifeline during unprecedented times. The efforts by TOBIN and Grubb Properties are a testament to the resilience and importance of live music venues in enriching urban culture and community life.
