I've been ordered to use the microphone. This is just a slide to explain about our market. When we talk about the TAM, I mean specifically apartment buildings that fit our criteria. Those are apartment buildings that have 100 or more units in the U.S. The existing market right now is a $21.5 billion market opportunity for us. The other circle is really just the new construction opportunities that are coming online. There are a lot of apartment buildings in the United States, and the overwhelming majority of them have this old, antiquated model for delivering internet service. The amount of TAM we have to capture to be successful is extremely small.
Just on the right bottom, you can see there's very little competition in our space in terms of people who look like us, and we're the first company like us to actually IPO. We're going up against the cable companies and the inertia of that business. I'll get into later, too, why the cable companies are in a bad position to compete. You know what, I'll do it now. As to why the cable companies are not in a good position to compete against this model.
A lot of how they're valued in the market is based on passes or subscribers. If there's a 400-unit apartment building, it's really hard for them to trade 400 subscribers for one subscriber because the devaluation it does for them makes it not plausible for them to make that shift. Honestly, we're just, again, looking at the TAM. We're biting at their ankles. I've come to learn that the big cable companies are very smart and rational operators.
They're not going to make a decision to screw their business just to prevent us from biting at their ankles. People often ask, "How can you go up against AT&T?" That's why. Because they have no incentive to fight back against us. The great thing, again, I think this model is great in terms of what the service delivery is, but the financial impact is huge. Wi-Fi becomes a new underwritable revenue source.
If you give an easement to the big cable company, you may get a door fee. That's a one-time fee. You may get a marketing fee. That's not fully underwritable because you're not in charge of that revenue stream. When you buy in bulk from Elauwit and then pass along an increase to your tenants, that entire revenue stream is underwritable, and it makes a huge difference in terms of their warehouse lines.
If you give an easement to AT&T, that's their network in your building. You can't use it for anything. With us, you can use it for IoT, leak detection, access control. It's a network that you can enjoy as well as the building owner. Most people don't realize this, but the big cable companies, because of the franchise agreements, are limited in terms of their geographic ability. When we deal with national REITs, one of the benefits that we have is we can go to every single state. Comcast cannot. Lastly, our IPO has enabled us to unlock capital in a way that we can finance networks, which is something I'm going to talk about in a little bit. This, again, is just what it looks like for residents.
A great question in terms of the flexibility. Think about moving into a new apartment as a new tenant, right? Typically, the experience is you get a couple flyers from the property manager that says, "Here, you can call Verizon or you can call Comcast, and they'll set you up with a plan. Next Thursday, somebody will come out between 10:00 and 2:00 to get you all set up." When you move into a building that has Elauwit internet, they give you your login code. You're just live before your couch even gets moved in. A wonderful customer experience in that regard. In addition, you're on an enterprise-grade network. There's not 400 different small networks with a list of SSIDs that goes four feet tall when you're trying to connect. It's an integrated enterprise network. There's price clarity.
When you buy Verizon service for $79, has anyone ever gotten a bill that's $79? No. There's the FCC fee, there's the franchise tax, there's this. When we charge the building owner $30 a unit, it's $30 a unit. When the building owner passes on $65 a unit to their tenants, it's $65 a unit. Again, a good customer experience. We're fiber-based. It's a future-proof network. This is our brag sheet. I'm not going to go through all this. I'm going to highlight two points. The left one, second one down, white glove account management. You'll see at the very bottom some stats. If you're a property owner and you want your tenant to have a good experience with internet, has anyone ever called AT&T or Comcast with a problem with their internet?
One of our fun things to do at a sales pitch is to call AT&T's 800 number and put the phone down and listen to the nice music while we do the sales pitch. When we're done with the sales pitch, we forgot that we even had the phone on. The next move is we call Elauwit's help desk. We answer in roughly 30- 35 seconds. There's a real human on the phone. Again, we try not to make a situation where there's problems. When there is a problem, we resolve it quickly. The second thing was nationwide reach, which as you know, I think we're in 29 states now, not 25. This is the part where our product has two different financing models. One is managed Wi-Fi and the other is Network as a Service.
I'm not going to read the slide. You guys are doing that right now. Just to break it down in terms of what markets like which one, the managed Wi-Fi is really set up for new construction when somebody's opening up their construction loans and their balance sheets open, or for big REITs that have sophisticated financial acumen and have borrowing power that far exceeds anything we would have. In those instances, they'll pay us upfront for the network construction, and they will own and capitalize that network, which is great for them. That drives the service delivery cost down.
For the outfits that are a little less sophisticated or a brownfield situation where you don't have the balance sheet open and where you're not getting a construction loan, we do Network as a Service where you don't really pay us much upfront, just a little skin in the game, then we finance it. In that instance, the service fee monthly goes up to account for the fact that we're amortizing the network. In both instances, you can see their markups generate significant NOI for the property owners, but we also still maintain a significant margin. I'll come back to this later if you guys want. Part of our IPO process was putting some funds together to get a scalable sales team. We built this company to roughly $20 million in revenue with just executive-led relationship sales.
We know we can probably get that to $40 million to $50 million in terms of executive-led relationship sales. To really grow this thing, we need to build a scalable sales organization. We call it a RevOps organization. We've put that together. Since we've done that, we haven't even been fully active in that organization for six months. We've really landed 2,000 tracked opportunities that we're in some form of connection with. Those 2,000 represent owners that have substantially more properties than that and roughly 12 million units. These are opportunities that our executive team would not have had eyes on. We feel that in six months we've done something of significant value for us for the near-term future.
You can read the rapid growth in units served, the case study I think is important because this Network as a Service business is something that we kind of just started roughly a year ago and part of why we IPO'd so we would be able to have access to capital for this network deployment. As you can see, we did one case study. We did one property to prove this out while we were doing our roadshow for the IPO. We ended up putting about a half million dollars into this property, the 450-unit property. That increased their NOI at the property level by $200,000 a year. If you just multiply that by the cap rate, that means that overnight from when we put our network in, their property increased in value by $3.1 million.
Think about that, not just when you're selling the property, but in terms of your borrowing capacity. There's a lot of financial enhancements when it comes to what we do. For us, we had $195,000 annual gross profit, which is a 35% unlevered return IRR, 35%. If we can deploy some smart debt, which we're working on, I think we can get that number up pretty significantly.
The $500,000 was like fiber?
Yeah. The expense on that's going to be fiber to the risers, switches, Cat6 to the wireless access points, enterprise-grade wireless access points, plus all the labor involved in doing it. It comes out to roughly $1,000-$1,200 a unit, depending on the scale and size of the building.
Where are you accessing?
Yeah, a lot of folks don't realize this, there's so much fiber in the ground nationwide, so much. There was so much overbuilding a long time ago. In fact, I'm going to tell a little story at the end answer your question. Folks, I was in the media space for a long time. I worked at The Wall Street Journal, I own newspapers. Folks always ask, "How did you get involved in this crazy business?" At the time that I sold my first media business, it was 2004. It was the same month that Facebook started. I started to realize the future's going to be in infrastructure, not in content. I couldn't figure out where to play. It seemed as though everybody was just putting as much glass in the ground, as we say, all over the country.
The folks who were smart about this said the real value is going to be in the last mile. We've all heard that term, the last mile is where the real value is. Interestingly enough, I thought if the last mile is valuable, how valuable can the last 100 feet be, right? That's how we ended up getting in this space where we can control. It's the person who touches the end user that really has the highest use case and margin. To that end, everybody else just built so much fiber everywhere. For instance, if we have a property in Atlanta recently where our Carrier Access Manager goes out to all the different folks that have connectivity within an eighth of a mile of the building. Our RFP went out to 22 different places.
Some of those places might be AT&T or Comcast, their commercial group who could sell us a 10-gig circuit. Sometimes it's Level 3 or Crown Castle or some defense contractor. It's kind of wild just the amount of bandwidth that's out there to be purchased.
Right.
Yeah. It's hard for an unsophisticated person to be able to do this. We have a whole setup to be able to accomplish this task. We add a lot of value in that way. I'm not going to read these conclusions. You guys have questions, let's just do it.
I still am getting. If I'm a tenant, how do I get a private network that nobody else.
Yeah.
Talk to my neighbor or not?
Yeah, we use a VPN system. Basically, even though it's one network in the building, you'll have your own sort of virtual private network that you can carry all throughout the property. For instance, if you're at the pool and you want to print something, it'll go to your printer. We segment it that way.
What were revenues last quarter?
What were revenues last quarter? Matt, do you remember? Yeah, it's somewhere in the realm of $6 million.
Where do you see that in the top?
What I can say is that it's my anticipation that we will be operationally cashflow, EBITDA positive before the end of the year. We don't have a lot of debt, so that would mean we'd be cashflow positive shortly thereafter. I don't anticipate we'll need to raise more equity capital for us to get there.
Anybody writing?
Craig- Hallum. I believe Maxim plans to cover us. Well, Maxim is covering us. I think they're going to start publishing later this year.
Give us an example of what your ongoing reoccurring revenue, if we do our 10,000 units .
Yeah. The managed Wi-Fi system, our recurring revenue is going to be between $15 and $20 a unit per month, and we're signing on those deals, seven-year contracts. Yeah.
Good deal for the tenant.
It's a good deal for the building owner, a good deal for the tenant, and a good deal for me. Yeah. It's a win-win-win. It's kind of unbelievable.
What's the average tenant pay?
It's whatever the building owner wants to charge them. Technically speaking, the building owner can give it away. We don't recommend that. What we recommend is look at the market rates and be 10%-15% below that. Because if you can go to your tenant and say the internet's 10% or 15% cheaper than what the cable company charges, but it's 5x as good, you're a hero to your tenant. That's our advice to them. On the Network as a Service business, where we're putting in the capital, in those instances, you're talking about $30-$35 a unit of monthly recurring revenue on a 10-year contract. How about churn? Let's just address that since we're here. In the, gosh, 16 years I've been doing this now, since we started our original version, I think we lost one customer.
It was because they didn't like one of our investors. You don't lose customers in this business for two reasons. One is it's not really easy to switch to somebody else, at least today. Maybe in the future it will be. Two is, as I was talking about the commodity of broadband, the cost of those metro circuits goes down significantly over time. A lot of times on a 10-year contract, in year eight, we can get that cost of bandwidth down so far that we could pass half that cost along to the client and cut their rate. I mean, think about that. Who comes to you after a 10-year contract and says, "We can renew you for less, not more." Right? We make more money because we're capturing half of that savings. We have virtually no churn. Sorry.
Can you explain your best practice for system development?
Yeah. I got to stop. We built out a team of people that have very segmented roles. We just did this in the last six months because all of our customer acquisition before that was executive-led relationship sales. That team, basically the way we have it set up is that we've identified roughly 7,000 decision-makers that we want to target, and we scour digitally everywhere they are. We use AI to build content that's bespoke to them based on what they're searching on. We try to connect with them at conferences. I think, in fact, today we have a bourbon tasting in New Orleans at the NAA conference, where we've got 20 key decision-makers to come. We're trying to capture them digitally, build a relationship, and then get to the proposal stage. All right.
That's time. We're here at Booth 402. I know we're packed a little bit today, but feel free to stop by and chat.