Donation Retail 2.0

Supporting Your Mission through the

Donation Retail 2.0

Advisory Suite

“Sales jump at Goodwill stores; non-profit takes commercial approach” – C h ica g o T ri b u n e F e b r u ar y 2 0 , 2 0 0 9

“Large retailers have sophisticated models for anticipating sales at potential sites and are inclined to cherrypick locations with the highest projections…”

– S h o p p i n g C e n ters T o d ay Ma g a z i n e A p ril 2 0 1 1

“In spite of the well-known woes of the commercial real estate market today, the watchword among practitioners in this space seems to be ‘opportunity.’”

– R E A LT O R m a g a z i n e A p ril 3 0 , 2 0 1 0

The Opportunity: Donation Retail 2.0

A growing number of Goodwill organizations are taking a page from traditional retailers, building out a new generation of Retail Store and Donation Centers that provide a contemporary, retail-centric customer experience. We call this concept “Donation Retail 2.0.”

Right now, Goodwill organizations have a unique opportunity to take their business to the next level.

The timing is right for several reasons: • Opportunistic real estate deals are here, but they won’t last forever.

• Consumers, landlords, and municipalities are open to new development and ready to redefine their relationships with Goodwill.

• For profit, multi-billion dollar donation-based retailers are growing rapidly into new territories, increasing the competition for Goodwill’s traditional donor base.

Berengaria Development can help you maintain and increase your share of the fastgrowing donation industry. Our innovative concept focuses on growing revenues and improving profitability, positioning the store as a valued member of the community, and discouraging competition.

We developed this new store model as a part of our privileged partnership with Goodwill Industries of Southeastern Wisconsin and Metropolitan Chicago. Through our Advisory Suite Services, we work with your brokers, architects, and general contractors to help ensure the success of your new Retail Store and Donation Center. We know Goodwill and we know how to successfully select sites, negotiate terms, coordinate design, and oversee construction of donor-based retail stores.

We can help you manage the risks and opportunities that come with each new store, so that you can focus on doing what you do best: helping people reach their full potential through the power of work.

Advisory Suite Services:

Mar k et Desi g n

Intelligence Expertise

Pro j ect

Solutions

Donation Retail 2.0

Advisory Suite

Mar k et

Intelligence

Our service is intended to mitigate risk and to optimize performance of the Donation Retail 2.0 store model. We arm you with reliable store-level performance appraisal, reporting, and market analyses so that you can make budget decisions in the face of uncertainty and competitive pressure. Berengaria Development’s team of experts and analytical tools will provide the confidence you need to communicate with banks, donors, potential landlords, and your Board of Directors.

Berengaria’s site selection algorithms score your revenue potential. Our Benchmark Reports and Scorecard Methodology help you navigate the trade-offs between site opportunities. Together, proprietary algorithms and scoring systems estimate donation potential, construction budgets, and store performance with superior accuracy. Our Market Intelligence helps you find the balance between store performance and cost so you can maximize your opportunity.

Market Analysis Site Fundamentals Benchmark Reports Demographic Impacts Lease Expense Donation Potential Tenant Improvements Budget Competitive Landscape

SITE C

SITE A Lease Donation drop off ‘A’ location NNN Rent $160,000 Revenue Estimate $2.4MM Budget $1.2MM

SITE B Prototype New construction ‘A’ location Revenue Estimate $3.0MM Budget $3.0MM

Lease Donation Entrance ‘B’ location NNN Rent $120,000 Revenue Estimate $1.8MM Budget $0.8MM

Whether this is your first Donation Retail 2.0 store or your 40th, Berengaria’s Advisory Suite enables you to reach your growth potential.

We innovate around the Donation Retail 2.0 store concept— modern, retail-centric stores that drive substantial donation and revenue opportunities.

Desi g n

Expertise

Pro j ect

Solutions

Every site is different. Our experience in applying

We can help you execute on the development of one

and evolving the prototype gives you the expertise

or many locations by providing solutions for common

you need to ensure your consultants are capitalizing

and uncommon issues involved in rolling out a new store.

on each location. It also adds an extra set of eyes to avoid costly mistakes.

Assess Existing Conditions

Finance:

Adapt the Prototype

Evolve the Experience

How can I use other funding sources to grow faster?

Should I build, buy, or lease?

What are the tax-effective breakpoints?

Project Management: How should I coordinate the pre-development process?

Market Strategy: How do I prioritize my potential markets?

INSTALL DM LIGHTING 100W SEMIRECESSED DECORATIVE WALL SCONCE W/ REMOTE MOUNT METAL HALIDE BALLAST. COLOR: SILVER INSTALL THERMALLY BROKEN, EXTRUDED ALUMINUM WINDOW W/ HEAD RECEIVER & 1” CLEAR, LOW-E INSULATED GLAZING INSTALL INVUE ENTRI SERIES 70 W PULSE START METAL HALIDE WALL PACKWITH THRU-WAY BOX @ 16’-4” AFF. COLOR: DARK PLATINUM

ADD CONTINUOUS INTERLOCKING STANDING SEAM AWNING (16” PANEL WIDTH, 1” SEAM HEIGHT). MAINTAIN UL90 WIND UP=LIFT RATING. COLOR: PAC CLAD AWARD BLUE W/ KYNAR500 BAKED COATING. PROVIDE 1” GALVANIZED STEEL TUBE FRAMING.

INSTALL 4’-0”X24’-0” LED ILLUMINATED CHANNEL LETTERSET ON RACEWAY W/ ILLUMINATED ‘GOODWILL SMILING G’ LOGO WALL CABINET

Project: Pewaukee, WI

ADD PRE-FINISHED ALUMINUM WRAPPED LIGHT GAUGE STEEL CANOPY W/ FULLY ADHERED 60 MIL. WHITE TPO MEMBRANE OVER 11/2” 20 GA. METAL DECK. PROVIDE REGLET IN CMU FOR FLASHING/ COUNTERFLASHING AT BUILDING CONNECTION. INSTALL 1” DIA. GALVANIZED TENSION ROD W/ TURN BUCKLE MID-LENGTH & NO. 3 CLEVISES EACH END.

Donation Retail 2.0 Stores are self-sustaining assets that create a permanent funding source critical to support your mission.

w illo w b roo k , I L This former Walgreens site required significant improvement that we put back to the landlord. Higher net rents are more than offset by a meaningful profit stream.

I n v ol v e m e n t

Negotiation Design Coordination Construction Management Bid Analysis

Wa u w atosa , w i This “out- of-the-box� adaptation of a 60,000 square foot warehouse offered Goodwill an opportunity to build a flagship, 30,000 square-foot Store and Donation Center.

For little or no additional investment, Berengaria delivered a mini, 20,000 square-foot distribution hub in Milwaukee. It has become one of their most profitable stores after only one year.

I n v ol v e m e n t

Site Selection & Negotiation Design Coordination Construction Management Bid Analysis

Bea v er Da m , w i This LEED-certified building is constructed in a TIF district, yet owned by a not-for-profit.

I n v ol v e m e n t

Negotiation Design Coordination Construction Management Bid Analysis

L a k e Z u ric h , I L This inline space was identified in March 2008 and, despite major interior improvements, delivered in less than 8 months.

Sales of nearly $2 million were achieved in the first year.

I n v ol v e m e n t

Site Selection & Negotiation Design Coordination Bid Analysis Owner’s Representation

Our experience and process brings your store to life, enabling your project to

reach its full potential, maximizing on your unique opportunity.

Working with Berengaria Development

Landlords & Developers

Goodwill Industries

Our domain-specific knowledge of donation-based retailing enables us to bring landlords and developers together with Goodwill organizations around the country.

In any circumstance, we put Goodwill first.

We ask you to consider: • Allowing us to perform a preliminary review of your existing stores.

• Permitting us to represent you at real estate conferences around the country.

• Engaging us for your next Donation Retail 2.0 store project.

2010 International Council of Shopping Centers: Chicago Deal Making

Berengaria Development’s Donation Retail 2.0 concept was established working closely with Goodwill Industries of Southeastern Wisconsin and Metropolitan Chicago.

- Vic k i Holsc h u h Senior Vice President of Retail Services

- Vic k ie Vol p a n o Senior Vice President & Chief Operating Officer

“Berengaria is our trusted partner and advisor in identifying, negotiating, coordinating, and managing the build out of new sites. Their solutions provide tremendous value by helping us focus on our best opportunities, while managing the costs through each project.”

- C h arles S ta d ler Senior Vice President & Chief Financial Officer

Project: Beaver Dam

“Berengaria’s benchmark reporting and scoring methodology is the best I’ve seen.

The first site they brought us cost $850k in tenant improvements and during the second year of operation, it generated that much in profit.”

“Berengaria understands Goodwill, our mission, and our goals. They are fully integrated into our organizational fabric and we know they always have Goodwill’s best interests in mind.”

Berengaria Development is a real estate services company that serves as a trusted advisor to business owners, nonprofits, and municipalities. Our company was formed in response to a need for a real estate department within small- and medium-sized organizations. We can represent the best interests of the owner—with developers municipalities, architects and construction firms—as well as in managing new and existing properties.

We are not real estate brokers. We are a team of professionals providing a complete portfolio of real estate development and management services using a fee-forservice approach not based on construction values, like most consultants. In this way, we align ourselves with the interests of our clients, and work purely on their behalf.

Our unique approach stems from hands-on real estate experience developed over more than 70 years by the Marcus family. The name of our firm, Berengaria, is taken from the ship that Ben Marcus, the founder of the family business, was aboard when he immigrated to the United States in 1914. Three generations later, just as the crew of the Berengaria ensured a safe journey for its passengers, our team of real estate experts helps our clients successfully navigate the real estate process.

For more information, please contact

Donation2.0@berengariadevelopment.com

Learn how Berengaria Development can help improve your existing stores and facilitate your expansion.

Call Jay or Chris at 414-455-0198

Visit berengariadevelopment.com to learn more.

Project: Round Lake Beach

for a free review of your existing portfolio.

Milwaukee, WI 53202-4125 T 414 455 0198 F 414 755 7373 berengariadevelopment.com

Project: Wauwatosa, WI

100 East Wisconsin Avenue, Suite 1030