Coffee Roasting Opportunities @Workshop 4200 - Chicago

FOR CONSIDERATION COFFEE ROASTING OPPORTUNITIES AT WORKSHOP 4200

Baum Revsion, LLC | 2016

September, 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 Coffee Roasting Opportunities, September 2016

HISTORY

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Timeline Overview

THE MARKET Opportunity in Chicago Chicago Roasting Facilities 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: ROASTERY

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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 roastery 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 coffee roaster 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 roasting facility, keeping the tradition of innovation & creativity alive at 4200 W Diversey.

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THE MARKET

Older industrial buildings are the ideal homes for coffee roasting - providing the building requirements necessary , plus added character

OPPORTUNITY IN A COFFEE-LOVIN’ CITY

The Chicago Market

Chicago is one of the most highly caffeinated cities in the nation, with a strong market of coffee drinkers looking for fresh, innovative coffee companies to support.

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Over the past decade, the specialty coffee segment of the market has experienced great growth, with consumers enjoying more gourment coffee beverages & espresso based drinks than ever before.

Older millennials in the midwest are leading the nation in the daily consumption of espresso based drinks, paying daily for the latest trends in coffee drinks.

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Coffee is an American pastime, with almost twothirds of the U.S. adult population drinking at least one cup a day. In the midwest, these figures are even higher - with coffee drinkers averaging 3.3 cups per day (more than any other region of the country).

BILLION VALUE U.S. COFFEE MARKET

Trends, however are changing. Since 2008, daily consumption of espresso based beverages has bearly tripled (2016). Coffee drinkers have become increasingly more informed, choosing espresso over drip coffee, and seeking out new options like flat whites, cold brews,

and nitrogen infused drinks, especially among older millennials (ages 25-39). Overall, greater numbers of people are seeking out specialty coffee - with 34% of the adult population drinking it daily.

Additional data from the National Coffee Association’s (NCA) trends research (2015), 25% of consumers are now purchasing organic coffee, while 18% seek out fair trade, and 16% choose rainforest alliance certified coffee in the retail market. This growth is indicative in consumer selectiveness and willingness to spend more money on what they believe is best.

While coffee consumption itself has not dramatically increased in recent years, the amount consumers are willing to spend has seen great growth, with YoY gains (2014, 2015) of retail coffee sales a strong 8.7% according to a recent Mintel report. Overall sales are “expected to continue upward as coffee remains a popular drink in consumers’ daily beverage repertoire, and segments continue to innovate with new flavors, roasts, and methods” states the report.

Gallup, Inc. “Americans’ Coffee Consumption Is Steady, Few Want to Cut Back.” Gallup.com. N.p., 29 July 2015. Web. 28 Sept. 2016.

“What Are We Drinking? Understanding Coffee Consumption Trends.” The First Pull. National Coffee Association, 19 Sept. 2016. Web. 28 Sept. 2016.

3 “Specialty Coffee Consumption: A Look at the Numbers.” The Specialty Coffee Chronicle. SCAA, Dec. 2014. Web. 28 Sept. 2016.

4 The Retail Market for Coffee in the US: Market Research Report. Rep. IBISWorld, Nov 2015. Print.

5 Coffee & Snack Shops in the US: Market Research Report. Rep. IBISWorld, May 2016. Print. ⁶Coffee Shops Industry Profile. Rep. no. 722515. pp.10-12.: First Research, 2016. Print.

7 Coffee - US. Rep. N.p.: Mintel, Sept 2015. Print.

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THE MARKET

CHICAGO ROASTERS

Coffee Roasters in the Windy City

METROPOLIS Avondale Started in 2003 by a father & son team of coffee fanatics, Metropolis immediately took the nation by storm - landing on Complex’s list of best coffee roasters in the nation within a year of opening. When they needed a bigger roasting facility in 2015, we were there for them, and happy to have them housed in a Baum Revision project.

DARK MATTER

INTELLIGENTSIA

ASADO

This popular, artsy coffee roaster has created buzz time & again with delicious roasts and a quirky sense of humor. Their mural covered, steampunk style roasting facility (the “mothership”) has become a popular destination for coffee fans to tour a fully functional roastery.

Since 2006, Chicago-headquarted Intelligentsia has been making best of lists with their bold opinions on roasting, preparing, and serving coffee. Their approach to direct trade, single origin coffee was a dramatic departure from thenconventions, and an important movement in Chicago coffee history.

Asado became the first coffee shop in Chicago to exclusively serve pour-over coffee - and they were doing so before it was trendy. From their lakeview roasting center, they masterfully roast the beans to complement this slow-brew method of coffee preparation.

West Town

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Fulton Market

Lakeview

Photo We were instrumetal in this buildout of Metropolis Coffee’s new roasting facility and headquarters in a unique former factory building in East Avondale

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WORKSHOP 4200

ABOUT THE BUILDING A Historic & Unique Property

Chicago is now deep in the third wave of coffee culture typified by new brewing techniques -David Tamarkin, Editor of Epicurious

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4200 WEST DIVERSEY AVE LOCATION 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 food, drink, music, or art), and are keen to share what they do across social media.

Photos (this page) Improvements are underway like these recently sandblasted walls, floors, and ceilings at Workshop 4200

Chicago’s coffee roasters have seen tremendous success in a millennial driven urban market. Smaller scale, independent brands are embraced practically from the moment they open shop. The long standing success of independent coffee shops in Chicago is a testament to Chicagoan’s commitment to a better cup, and appreciation of direct-sourced, fair-trade, single-origin, and sustainably harvested beans.

The Logan Square ‘sprawl’ - a phenomenon of millennials flocking towards the hip neighborhood, and settling anywhere in its outskirts, has provided a unique opportunity for a roastery to open up in the midst of Chicago’s ‘coolest’ area. An untapped market of consumers, seeking an authenticity only found in truly local roasters, is waiting to pounce on the next great coffee brand to open in Chicago.

By housing your roasting facility on the Western border of Logan Square/Eastern end of Hermosa you get all the benefits of the proven strong market for gourmet coffee in the area, and you would be the first coffee roasting facility 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.

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

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

Your roasting facility itself is an important part of your brand, especially for companies that want to capitalize on the marketing potential of their roasting space. Take Dark Matter Coffee, for example. The

Chicago company has made roasting the cornerstone of their brand since day one, and now they have a loyal following, and are even featured in a Netflix original series.

Brand exposure starts “where the sausage is made”. As consumers become more interested in where their beans came from, what the flavor profile is, and how they were roasted, they want to see behind the scenes. Having an iconic roastery is a great opportunity to expand your social media efforts and host income-generating tours of your unique space.

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THE BUILDING

BUILDING FEATURES

Ideal for a Roastery 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 roasters & 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.

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As seasoned professionals, having worked on custom build-outs for coffee roasters 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.

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 roastery, 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 coffee provider for any catered or private events held at Workshop 4200.

Additionally, you would have the opportunity to run a coffee cart/station for the building, should you wish. 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 coffee company to join the creative community at 4200 W Diversey, to help re-activate the historic Hammond Organ Factory Building, to bring their unique roasts to the City of Chicago, and to be the first roastery 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