Workshop 4200 Brewery Opportunities

FOR CONSIDERATION BREWERY OPPORTUNITIES AT WORKSHOP 4200

Baum Revsion, LLC | 2016

July, 2016

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F O R YO U R C O N S I D E R AT I O N

TABLE OF CONTENTS Brewery Opportunities, July 2016

HISTORY

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Timeline Overview

THE MARKET Opportunity in Chicago Chicago Breweries Location

THE BUILDING Features Workshop 4200

ABOUT US About Baum Revision Contact Us

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HISTORY I N N OVAT I O N & C R E AT I V I T Y C O N T I N U E

WORKSHOP 4200’S HISTORY Est. 1934, and Re-Established in 2015

1895: BEGINNING

1928

Hammond founds the Hammond Clock Co.

October, 1929

Stock Market Crashes

1932

Hammond decides to move away from clock making

April, 1934

Hammond files a patent for a new “musical machine”, the electric organ

1935

1939

1940-1970

TODAY: NEW LIFE

FUTURE: BREWERY

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Laurens Hammond is born in Evanston, Illinois

First Church of Deliverence begins radio broadcasting in Chicago Clarence Cobb, of the First Church purchases a Hammond Organ for use in broadcasts; people flock to the church to see the strange sounding instrument in person Hammond Organs are found in homes across the country Transformation begins on the former Hammond Organ Factory to give it new life & new purpose You open your first Chicago brewery at Workshop 4200, expanding your consumer base & and gaining exposure in the lucrative Chicago market

Photo Laurens Hammond pictured with his Novachord (Popular Mechanics, 1939)

The novachord is considered by many to be the world’s first commercial polyphonic synthesizer. It’s “otherworldly” sound is distinctive, and found throughout popular culture. It never became as popular as the Hammond Organ, but retains a special place in musical history.

Workshop 4200 is housed in the former Hammond Organ Factory, once a Chicago icon of innovation and progress. In 1934, Laurens Hammond filed the patent for his musical machine, a pipeless organ. The device was so innovative for its time that Henry Ford, the nation’s foremost industrialist ordered six organs before a single one was built, and offered to back the company.

Today, we are continuing 4200 West Diversey’s history of housing innovators by re-establishing the building as a Creatorspace. Workshop 4200 is home to creators, makers, builders, thinkers, doers, teachers, performers, artists, innovators, and we hope to add a brewery to this unique mix.

After being featured in a Chicago radio broadcast in 1939, the Hammond Organ gained popularity amongst the black gospel churches in the neighborhoods surrounding the factory at 4200 W Diversey. The distinctive sound of these affordable instruments was essential to the birth to a whole new kind of music now known as “Chicago Gospel”. The popularity of this musical style led to the organ’s usage in jazz music and eventual adoption by other genres, making Hammond a household name in America.

Chicago is the city of big shoulders, home to creative, passionate, hard-working people with big dreams.

The innovative spirit of Laurens Hammond lives on at Workshop 4200, which offers space for creatives who want to be a part of a unique community of driven and inventive self-starters.

Today, there is a unique opportunity for a large portion of this historic former factory’s space to be transformed into a world-class brewery, keeping the tradition of innovation & creativity alive at 4200 W Diversey.

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THE MARKET

Photo top left Older industrial buildings are the ideal homes for craft breweries - providing the building requirements necessary , plus added character Photo bottom left A tour at Brooklyn Brewery draws regular crowds, eager to see where & how the beer is made, and to taste some brews after Photo far right Halfacre Brewing in Chicago utilizes the drive-in dock spaces in their building to aid in production & distribution

OPPORTUNITY IN A BEER-LOVIN’ CITY

The Chicago Market

Chicagoans have loved beer since 1833, a year that marks both the official incorporation of Chicago, and the year the first commercial brewery was constructed in the city. Since then, Chicago has built many of its great historic moments on, and owed much of its success as a city to its breweries.

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Over the past decade, the craft beer segment of the market has experienced vast growth, with the past five years in particular showing a true transformation of the industry into one of the most popular beverage segments in the United States.2 Chicago has long been at the center of this growing movement, becoming home to many local & midwestern breweries.

Bloom maintains that craft beer has a true ability to both tap into trends & resonate with the consumer, noting “craft beer lays claims to being local, small batch, and handmade with an identifiable heritage.” Chicago has embraced this approach to making beer with gusto.

+92%

In comparison to the whole of the United States, which had national beer sales volume growth of 12.8% in 2015, Chicago has outperformed the national average achieving 23.4% gains over the same year.4 The Chicago based Information Resources Inc. (IRC) found that craft beer sales accounted for a total $2.9 Billion in 2015, and that these figures have steadily increased in recent years.4 It won’t come as a surprise that a 2015 report by Colliers found that Chicago is the country’s craft beer capital.5

CRAFT BEER’S MARKET SHARE 1

According to Mintel’s January 2016 report on beer in the US, craft beer’s market share of US volume sales nearly doubled from 2010-2015.3

Chicago has enthusiastically embraced the craft beer market, with analysts noting it is more than just a trend, but the result of a variety of factors including “a consumer base interested in trying new products” says Beth Bloom, a food & drink analyst for Mintel.

At a time when alcohol sales continue to rise, and beer leads in U.S. alcohol consumption, the Chicago craft beer market is hotter than ever, ready for fresh and exciting new brews from breweries new to the Chicago market.

Watson, Bart. “National Beer Sales & Production Data.” Brewers Association. 2015. Web. 18 July 2016.

Craft Beer Production in the U.S. IBISWorld. August2016.

3 Beer - US - January 2016. Rep. London: Mintel Group, 2016. Print.

4 Del Buono, Amanda. “2015 Craft Beer Report” Beverage Industry. BNP Media, 12 Nov. 2015. Web. 18 July 2016.

5 Paniagua, A.J., Jeff Simonson, and Pete Culliney. 2015 Brewery Report. Rep. New York: Colliers International, 2015. Print.

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THE MARKET

CHICAGO BREWERIES

Craft Brewers in the Windy City

ALE SYNDICATE Logan Square Ale Syndicate began in Los Angeles as a backyard brewing operation, but gained the opportunity to grow once in Chicago.

The brewery now calls the iconic Green Exchange in Logan Square its home, where they have a fully operational built-out production facility, better distribution options, and deliver tours of the facility to eager Chicagoans.

BADERBRÄU

ARGUS BREWERY

EMPIRICAL BREWERY

Baderbräu was a historic Chicago beer co that had been out of production for almost a decade when a local entrepreneur decided to resurrect it. The rebirth of the brand included a the build out of a hip brewery in a former South Loop warehouse & taproom space that features weekend tours.

Located on the South Side of Chicago in the historic Schlitz distribution stables, the father & son team set out to create authentic Chicago craft brews. People travel from across the City and beyond to visit the unique, unusual historic building and see where the magic happens.

The minds behind Empirical transformed a lofty old warehouse building on one of Chicago’s throughfares and turned it into a beautiful space, complete with a state-ofthe-art 30 barrel system & taproom.

South Loop

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Roseland

Ravenswood

CHICAGO BREWERIES The List Alarmist Brewing – North Park Ale Syndicate – Logan Square Aleman – Belmont Cragin All Rise Brewing Co – West Loop Andersonville Brewing – Andersonville Aquanaut Brewing – Bowmanville Arcade Brewery – Logan Square Argus Brewery – Roseland Around the Bend Beer Co. – Logan Square Baderbräu – Bronzeville Band of Bohemia – Ravenswood Berghoff Brewery – Near West Side Begyle Brewing Company – Northcenter Birreria Chicago – River North Bixi Brewery – Logan Square Burnt City Brewing Company – Lincoln Park Chicago Beer Company – West Loop Corridor Brewery & Provisions – Lakeview Cruz Blanca – West Loop Diversey Brewing Company – Logan Square Dovetail Brewery – Northcenter DryHop Brewers – Lakeview Empirical Brewing – Ravenswood Eris Brewery & Ciderhouse – Irving Park Finch’s Beer Company – Avondale Forbidden Root – West Town Gino’s East Brewing Company – River North Goose Island – Near West Side, Lincoln Park Great Central Brewing – Near West Side Greenstar Brewing Co – Lakeview Half Acre Beer Co Taproom – Northcenter Half Acre Beer Co – Bowmanville Haymarket Pub & Brewery – West Loop Hopewell Brewing – Logan Square

Hopothesis Beer Company – West Loop Horse Thief Hollow – Beverly Illuminated Brew Works – West Loop Lagunitas Brewing Company – Douglas Park Lake Effect Brewing Company – Irving Park Like Minds Brewing – Near West Side Mad Mouse Brewery – University Village Maplewood Brewery & Dist. – Logan Square Marz Community Brewing – Bridgeport Metropolitan Brewing – Ravenswood Moody Tongue Brewing Co. – Pilsen Motor Row Brewing – South Loop Off Color Brewing – Hermosa [Bottle Shop] On Tour Brewing Company – West Town Piece Brewery & Pizzeria – Wicker Park Pipeworks Brewing Company – Bucktown Present Tense Fine Ales – South Loop Revolution Brewing Taproom – Avondale Revolution Brewing – Logan Square Rock Bottom Brewery – River North SlapShot Brewing – South Lawndale Spiteful Brewing – Northcenter Une Année Brewery – West Town Veteran Beer Company – River North Vice District Brewing – South Loop Whiner Brewery – Back of the Yards

Photo below Aquanaut Brewing in Chicago is housed in an old Chicago brick building, lending the operation character & branding opportunities

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WORKSHOP 4200

ABOUT THE BUILDING A Historic & Unique Property

Craft beer is as much about getting creative with the space the brewery is located in as it is about creating unique beer recipes.

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-Colliers

4200 WEST DIVERSEY AVE

Photo (facing page)

LOCATION

Halfacre Brewery is housed in a Chicago industrial former warehouse building, whose docks and unique character make it ideal for a fully-functioning production & distribution center

Be Near Chicago’s Hottest Markets The building is located at the crossroads of Logan Square, Avondale, and Hermosa.

Over the past five years the Logan Square & Avondale neighborhoods have become the hottest, most desirable neighborhoods for trendy, young Chicagoans. This market segment, sometimes called Yuccies (Young urban creatives) is composed of individuals seeking unique experiences, authentic tastes, the latest undiscovered thing (be it

Photos (this page)

food, drink, music, or art), and are keen to share what they do across social media.

Improvements are underway like these recently sandblasted walls, floors, and ceilings at Workshop 4200

Breweries that have chosen Logan Square to set up shop have seen tremendous success - benefitting from the neighborhood population’s disposable income & penchant for beer. While these breweries (Ale Syndicate, Revolution Brewing, Hopewell Brewing) have done well, they are located on the Eastern end of Logan Square, leaving the geography west of Kimball open & ready for an exciting new brewery.

By housing your brewery on the Western border of Logan Square/Eastern end of Hermosa you get all the benefits of the proven strong market for craft beer in the area, and you would be the first brewery in the Hermosa neighborhood of Chicago.

This ideal location right on the border of three of the hottest neighborhoods will provide great opportunities to draw customers from each neighborhood, while becoming a landmark of Hermosa.

BRAND OPPORTUNITY Strengthen & Grow Your Brand Your brand is important, and as a craft brewery you want your product to not only taste great, but to also resonate with the consumer. You want the people drinking your brews to feel connected to your brand’s identity, to feel it is an authentic product they are buying. Your brewery itself is an important part of your brand,

The spaces are flooded with natural light from the factorysize windows, and rows of celestory windows on the ceiling

especially for breweries that want to capitalize on the marketing potential of their brew space. As consumers become more interested in how their beer is created, they want to see behind the scenes. Having an iconic brewery is a great opportunity to expand your social media efforts and host income-generating tours of your unique space.

Finally, there is a tremendous opportunity to expand your brand awareness into a largely untapped market - the Hispanic market - which is one of the largest beer-buying

market segments in America. According to a 2015 Nielsen survey, Hispanics account for 15.1% of total beer volune but account for significantly less in craft beer volume.

According to Nielsen’s Danielle Kosmal, VP of Beverage Alchohol Practice, “Craft beer is very underdeveloped among Hispanic consumers, and there is a lot of potential to grow within this space.”

By moving into the historically Hispanic neighborhood of Hermosa, you would have great opportunity for exposure among this valuable market.

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THE BUILDING

BUILDING FEATURES

Ideal for a Brewery Build-Out

BUILDING FEATURES Newly sandblasted brick & timber spaces with concrete floors feature bright light from oversized factory windows &

Tall 12-20 ft ceilings are ideal for accommodating brew tanks & other large-scale production equipment, with option to ventilate as needed

5 loading docks available, including 2 drive-in docks;

Ideal power & water supply systems can be calibrated to meet your requirements; ample power supply of 3,000 Amps/480 Volts/3 Phase; sealable floors with drainage

skylights

allows for easy loading/ unloading; up to 70 parking spots available on-site

system

BUILD-OUT READY Whatever your vision & whatever your requirements they can be met at 4200 W Diversey. The industrial building has already undergone significant improvements to make it build-out ready.

With ample water & power supplies, an in-place floor drainage system, sealable walls & floors for easy washing, and flexible venitalation options, planning your build-out couldn’t get any easier.

As seasoned professionals, having worked on custom build-outs for breweries and other food grade manufacturing facilities, we have the expertise to help you meet city requirements while creating a space that functions for you. Save money & time by working with experienced developers, and by housing your production & distribution facilities under one roof.

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THE CREATIVE COMMUNITY JOIN WORKSHOP 4200

50,000+ SF AVAILABLE We are currently underway with efforts to revitalize the historic Hammond Organ Factory Building by transforming it into Workshop 4200, Chicago’s first Creatorspace.

As a brewery, you would be an anchor tenant amongst other creative, innovative companies, and would benefit from cross promotion opportunities, have the chance to spark collaborations with other Workshop 4200 members, and the chance to be the exclusive beer provider for any catered or private events held at Workshop 4200.

The community is composed of an opportunistic mix of talented artists, craftsmen, performers, musicians, woodworkers, makers, carpenters, and more.

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ABOUT US

A B O U T T H E C O M PA N Y

COMPANY BAUM REVISION Redefining Real Estate Development

ABOUT US Baum Revision is a Chicago-based real estate development firm that specializes in the acquisition and redevelopment of unique properties in urban environments that follow the principals’ commitment to social responsibility, preservation, and sustainability.

As a company we take a triple bottom line approach by focusing not only on the financial return on investment, but also by taking great pride in contributing positively to the communities in which we work and by protecting the environment through sustainable development.

Our objective is to honor the architecture and the features from those periods that came before us while at the same time, making spaces within those structures affordable and tenantable to those who dare to be different, who yearn for independence, and desire to create tomorrow’s important products and industries.

We are looking for an innovative, forward-thinking craft beer company to join the creative community at 4200 W Diversey, to help re-activate the historic Hammond Organ Factory Building, to bring their unique brews to the City of Chicago, and to be the first brewery in the Hermosa neighborhood.

MISSION We want every project to have a positive impact on the community in which we develop and the world at large.

We hope to bring new vibrancy to forgotten structures.

We are passionate about sustainability and focus on the adaptive reuse of existing buildings so as to minimize the environmental impacts of new construction.

We believe that the greenest building you can build is the one you don’t tear down.

We believe that the building choices we make today should not have a negative impact on tomorrow’s generations.

We believe that by practicing sustainable development, we are positively contributing to the future of our communities and our planet.

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BAUM REVISION, LLC 1030 W Chicago Ave Suite 300 Chicago, IL 60642 www.baumrevision.com

Contact Chris Beck for More Information Phone (708) 400-9201 Website www.workshop4200.com

Email chris@baumrevision.com