The Third Shot — Investment Prospectus

01 — Executive Summary

The Opportunity

The Third Shot is a purpose-built, 10-court indoor pickleball facility to be constructed on a 1.49-acre corner lot at 0 Bill Leathem Drive in Ottawa's South Merivale Business Park. The facility is designed to serve a primary catchment of 150,000+ residents across Barrhaven, Nepean, Stonebridge, and Riverside South — one of Canada's fastest-growing and most affluent suburban corridors, with a median household income of $172,000.

This is first and foremost a real estate investment. Investors participate through SOSK Inc. (Holdco), which owns the land and building. The operating business — The Third Shot Inc. (Opco) — leases the facility from Holdco at market rates, providing investors with real estate income independent of operating performance. Founder Sean Kibbee also guarantees a second anchor tenant from Day 1: his own technology consulting practice leases integrated office space within the building.

The Ask

$1,400,000 in equity capital to complement a $2,880,000 commercial mortgage and $519,500 of founder equity — funding land acquisition ($2,309,500), new construction ($2,040,000), soft costs ($200,000), and working capital ($250,000). Total project cost: $4.8M.

Why This Investment

Tangible real estate asset with independent resale value
8% cumulative preferred return, paid quarterly from cash flow
Anchor tenant income from Day 1, before a single membership is sold
Purpose-built facility — zero indoor pickleball supply gap in Ottawa
Dual exit: property sale or mortgage refinance at Year 5

02 — Corporate Structure

Holdco / Opco Model

SOSK Inc. — Holdco

Owns the real property. Holds the commercial mortgage. Collects rent from the operating company and from the anchor office tenant. Investors participate at this level via Class A Preferred Shares. All real estate equity, appreciation, and rental income flows to Holdco investors.

The Third Shot Inc. — Opco

Operates the pickleball facility. Pays market-rate rent to Holdco. Manages memberships, court bookings, pro shop, coaching, and food & beverage. All operating revenues and expenses flow through Opco — separately from Holdco investor returns.

Founder Profile

Sean Kibbee is a Cloud & AI Platform Specialist at Microsoft, based in Ottawa. With $519,500 of personal equity at risk and daily on-site presence as the office anchor tenant, his incentives are fully aligned with investors. His technology background enables best-in-class booking, automation, and analytics at minimal cost.

Anchor Tenant

Sean's technology consulting practice will lease approximately 1,500 sq ft of integrated office space at market rate (~$3,300/month), generating roughly $40,000/year in rental income to Holdco independently of the pickleball operation.

03 — The Property

0 Bill Leathem Drive, Ottawa

MLS® X12581782 · Listed $2,309,500 · 1.49 acres (corner lot) · IL9 Zoning · Fully Serviced

Bill Leathem Drive & Longfields Drive, South Merivale Business Park, Ottawa K2J 0P7

25,000 sq ft Buildable

35% lot coverage on 1.49 acres — purpose-built for 10 courts plus full amenity program

Direct Highway 416 Access

Via Fallowfield Road — catchment extends across Ottawa's entire south end and Kanata

Fully Serviced Site

Municipal water and sanitary sewer on-site — no well or septic risk, construction-ready

Business Park Context

Professional neighbours, ample parking, no residential noise constraints — extended hours viable

Corner Lot Visibility

High-profile corner with natural signage placement and easy wayfinding — critical for a destination facility

IL9 Zoning

Broad permitted uses. Minor variance for recreational use is well-precedented at the City of Ottawa

Site Summary

Lot Size	1.49 acres (corner)
Buildable Area	~25,000 sq ft
Zoning	IL9 — Light Industrial
Services	Municipal water + sewer
Annual Property Tax	$29,051
Listing Price	$2,309,500
MLS®	X12581782

Build-New vs. Retrofit

Court Layout	Optimized from day one
Ceiling Clearance	Designed to spec (20'+)
HVAC / Lighting	Purpose-zoned, per court
Hidden Structural Risk	None — new construction
Cost per sq ft	~$90 vs. $120+ for retrofit
Asset Quality	New building, depreciable

04 — Market Analysis

Demand & Demographics

Pickleball is Canada's fastest-growing sport. Pickleball Canada registered membership has grown at a 65% CAGR from 2022 to 2024, reaching 85,223 members. An estimated 1.54 million Canadians now play monthly — a 57% increase since 2022.

In Ottawa, an estimated 15,000+ active players compete for fewer than 30 indoor court-hours per day across shared community centres, converted gyms, and multi-use recreation facilities. Zero purpose-built dedicated indoor pickleball facilities exist in Ottawa.

The Supply Gap

The Third Shot's 10 courts running 7am–8pm adds 130 court-hours daily to a market with acute unmet demand. This is not speculative — players are already on waitlists at every shared gym in the city.

Pickleball Canada Members (2018–2024)

Barrhaven — Target Market Demographics

Metric	Figure	Significance
Barrhaven Population	103,234	Larger than Kingston, ON — deep local base without relying on cross-city travel
Median Household Income	~$172,000	Top-tier nationally; $89–$169/mo memberships are a minor discretionary expense
Households Earning $100K+	~59%	Majority of households can comfortably afford premium membership pricing
10-min Drive Catchment	150,000+	Includes Nepean, Stonebridge, Chapman Mills, Riverside South, Manotick
Ottawa-Gatineau CMA	1.49M	Regional addressable market anchored by federal government and tech sector

Ottawa Competitive Landscape

Operator	Type	Courts	Limitations
Ottawa Athletic Club	Multi-sport	2–3	Tennis-first; limited pickleball access
Movati Athletic	Fitness chain	1–2	Minimal court time; full gym membership required
City Community Centres	Municipal	2–6	Shared gym floors; inconsistent access; no permanent nets
The Pickle Shack (Gatineau)	Dedicated	4	Cross-river; limited capacity; small footprint
The Third Shot	Purpose-Built	8	First dedicated indoor facility in Ottawa

05 — The Facility

Built for the Sport

A purpose-built ~25,000 sq ft facility — not a retrofit. Every element designed from the ground up for competitive and recreational pickleball, resulting in a superior player experience at lower cost per square foot than any comparable conversion.

Courts

10 Regulation Courts

20' × 44' playing area with full run-off. Sport Court PowerGame™ surface. LED high-bay lighting at 500+ lux. Minimum 20' ceiling clearance. Retractable divider curtains between courts.

Player Amenities

Full-Service Locker Rooms

Men's and women's locker rooms with showers. Player lounge with WiFi. Spectator viewing area. Pro shop stocked with paddles, balls, and apparel.

Food & Beverage

Licensed Lounge

Post-game bar and café — beers, smoothies, snacks. Designed as a social anchor for the facility. High-margin revenue stream operating with minimal additional overhead.

Operations

Technology-Driven

Online booking with dynamic pricing and waitlists. Member app with court availability and standings. Automated HVAC and per-court lighting. Keycard access for off-hours member play.

Anchor Office

~1,500 sq ft Office Suite

Integrated office space leased by Sean's technology consulting practice at ~$3,300/month. Provides Holdco with guaranteed rental income before membership operations begin.

Site

80+ Parking Spaces

Business park setting with generous on-site parking. AODA-compliant entrance and facilities. Professional environment compatible with extended operating hours.

05a — Revenue

Revenue Streams

Court Rental Rates

Time Slot	Rate / Court / hr
Standard (weekdays, all hours)	$50
Standard (weekends outside peak)	$50
Peak (Sat–Sun 9am–6pm)	$65

10 courts, 13-hr daily window (7am–8pm). Weekend peak Sat–Sun 9am–6pm at $65/hr. At 100% utilization: ~$2.51M/yr in court revenue alone.

Membership Tiers

Tier	Monthly	Access
Recreational	$89	2 sessions/week, off-peak priority
Unlimited	$169	Unlimited + booking priority + guest passes
Corporate (4 users)	$299	Unlimited + branded court option
Student / Senior	$69	Off-peak, 2 sessions/week

Year 3 Revenue Mix — $1.75M

Additional Revenue by Stream (Year 3 Estimate)

Stream	Description	Est. Year 3
Coaching & Clinics	Private ($65/hr), group ($25/person), clinics ($40/person)	$150K
Leagues & Tournaments	Seasonal leagues + weekend tournaments	$100K
Pro Shop	Paddles, balls, apparel (35% margin)	$80K
Food & Beverage	Licensed lounge — post-game bar, café	$120K
Anchor Tenant Rent	Office suite — 1,500 sq ft @ ~$26/sq ft (to Holdco)	$40K

06 — Financial Projections

5-Year Pro Forma

Startup Costs

Land Acquisition	$2,309,500
New Construction (~25,000 sq ft @ $90/sq ft)	$2,040,000
Soft Costs (permits, architectural, legal)	$200,000
Working Capital (pre-revenue runway)	$250,000
Total Project Cost	$4,799,500

Capital Stack

Commercial Mortgage (60% LTV)	$2,880,000 60%
Founder Equity (Sean Kibbee)	$519,500 11%
Investor Equity	$1,400,000 29%
Total	$4,799,500

Key Milestones

Monthly break-even

~$68,000/month — targeted for Month 6–8 of operations

Cash-flow positive

Month 12–15 after full debt service

Investor payback

~3 years via preferred distributions + property appreciation

Mortgage terms (assumption)

$2.88M at 5.5% fixed, 25-yr amortization, 5-yr term. Annual P&I: ~$211K

Year-by-Year Summary

Metric	Year 1	Year 2	Year 3	Year 4	Year 5
Members	250	600	800	900	975
Court Utilization	40%	55%	65%	72%	78%
Revenue	$850K	$1,300K	$1,750K	$2,150K	$2,500K
Operating Expenses	$780K	$1,020K	$1,270K	$1,460K	$1,625K
EBITDA	$70K	$280K	$480K	$690K	$875K
EBITDA Margin	8%	22%	27%	32%	35%
Debt Service	$211K	$211K	$211K	$211K	$211K
Free Cash Flow	($141K)	$69K	$269K	$479K	$664K

Revenue vs. EBITDA ($K)

07 — Investment Thesis

Why This Works

Real Estate Ownership

Investors own a tangible asset with independent appraisal value. Every mortgage payment builds equity. Property appreciation accrues to Holdco — not the operating company's landlord.

Dual Anchor Income

Holdco receives rent from both the pickleball Opco and Sean's consulting office from Day 1 — two independent income streams before any membership ramp is required.

First Mover Advantage

No dedicated indoor pickleball facility exists in Ottawa. The Third Shot enters an uncontested market with 15,000+ active players and zero purpose-built supply.

Founder Alignment

Sean commits $519,500 of personal equity and occupies the building daily as an anchor tenant. His interests are fully aligned with investors throughout the hold period.

Diversified Revenue

Six revenue streams — memberships, court rentals, coaching, leagues, F&B, and pro shop — reduce dependence on any single source and stabilize cash flow.

Structural Demand

Ottawa's winters make 5 months of outdoor play impossible. Indoor court demand is not discretionary — it is the only option for half the year.

08 — Investment Terms

The Offer

Term	Detail
Entity	SOSK Inc. (Holdco)
Instrument	Class A Preferred Shares
Preferred Return	8% cumulative annual, paid quarterly
Equity Participation	Investors: 60% of Holdco equity
Founder Equity	Sean Kibbee: 40% of Holdco equity
Distribution Waterfall	1) 8% preferred → 2) Return of capital → 3) 60/40 split
Minimum Investment	$100,000
Governance	Quarterly reporting; board observer seat at $250K+
Exit Target	Year 5 — property sale or mortgage refinance
Projected IRR	~25% over 5 years

Illustrative Returns — $200K Investment

Year	Preferred	Profit Share	Total
1	$16K	—	$16K
2	$16K	$15K	$31K
3	$16K	$38K	$54K
4	$16K	$60K	$76K
5	$16K	$85K	$101K
+ Exit (property appreciation)			$80–130K

Total projected: $358K–$408K on $200K invested

1.8–2.0× return backed by a tangible real estate asset with independent appraisal value at exit.

Interested in Learning More?

This document is confidential and intended solely for prospective investors. Minimum investment: $100,000.

Contact Sean Kibbee

09 — Risk Factors

Risks & Mitigation

Risk	Likelihood	Impact	Mitigation
Construction cost overruns	Medium	Medium	$200K contingency buffer; fixed-price GC contract; phased buildout option (8 → 10 courts)
Slower membership ramp	Medium	Medium	Anchor tenant rent and drop-in court revenue provide base cash flow independent of membership
New competitor enters Ottawa	Medium	Low	First-mover locks in members and brand; property ownership delivers lower fixed costs than any new-entrant lessee; 18-month build lead time
Mortgage rate increase at renewal	Low	Medium	5-year fixed term; Year 3–5 free cash flow builds a rate buffer; prepayment reduces principal
Pickleball demand decline	Low	High	Courts convert to badminton, volleyball; property holds commercial/industrial value independent of tenant; F&B and coaching diversify revenue
Economic recession	Medium	Medium	Pickleball is affordable recreation; Ottawa's federal and tech employment base is historically recession-resilient
Key person risk (Sean)	Low	High	GM hire provides operational depth; key person insurance in place; documented SOPs and automated systems reduce single points of failure
Zoning or permitting delays	Low	Medium	Planning consultant engaged pre-acquisition; conditional offer subject to zoning confirmation