Donation Retail 2.0 Advisory Suite

Supporting Your Mission through the

“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 R I L 3 0 , 2 0 1 0

“Large retailers have sophisticated models for anticipating sales at potential sites and are inclined to cherry-

pick locations with the highest projections…”

– S h O p p I n g C E n T E R S T O d Ay m A g A z I n E A p R I L 2 0 1 1

“Sales jump at goodwill stores; non-profit takes

commercial approach” – C h I C A g O T R I b u n E F E b R u A R y 2 0 , 2 0 0 9

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 fast-growing 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.

p R O j E C T Solutions

d E S I g n Expertise

m A R k E T Intelligence

The Opportunity: Donation Retail 2.0

Advisory Suite Services:

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.

SITE A

LeaseDonation drop off

‘A’ locationNNN Rent $160,000

Revenue Estimate $2.4MMBudget $1.2MM

prototype new construction

‘A’ location Revenue Estimate $3.0mm

budget $3.0mm

LeaseDonation Entrance

‘B’ locationNNN Rent $120,000

Revenue Estimate $1.8MMBudget $0.8MM

Market AnalysisSite FundamentalsBenchmark Reports

Lease Expense

Tenant Improvements Budget

Demographic ImpactsDonation Potential

Competitive Landscape

SITE bSITE C

Donation Retail 2.0 Advisory Suite

m A R k E T Intelligence

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

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/ COUNTER-FLASHING AT BUILDING CONNECTION. INSTALL 1” DIA. GALVANIZED TENSION ROD W/ TURN BUCKLE MID-LENGTH & NO. 3 CLEVISES EACH END.

INSTALL DM LIGHTING 100W SEMI-RECESSED DECORATIVE WALL SCONCE W/ REMOTE MOUNT METAL HALIDE BALLAST. COLOR: SILVER

INSTALL INVUE ENTRI SERIES 70 W PULSE START METAL HALIDE WALL PACKWITH THRU-WAY BOX @ 16’-4” AFF. COLOR: DARK PLATINUM

INSTALL THERMALLY BROKEN, EXTRUDED ALUMINUM WINDOW W/ HEAD RECEIVER & 1” CLEAR, LOW-E INSULATED GLAZING

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

We can help you execute on the development of one or many locations by providing solutions for common and uncommon issues involved in rolling out a new store.

Every site is different. Our experience in applying and evolving the prototype gives you the expertise you need to ensure your consultants are capitalizing on each location. It also adds an extra set of eyes to avoid costly mistakes.

Assess Existing Conditions

Adapt the Prototype

Evolve the Experience

p R O j E C T Solutionsd E S I g n Expertise

Market Strategy:How do I prioritize my

potential markets?

Finance: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?

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

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I n v O L v E m E n T Site Selection & NegotiationDesign CoordinationConstruction ManagementBid Analysis

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 O L v E m E n T Negotiation Design Coordination Construction ManagementBid Analysis

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.

w I L L O w b R O O k , I L

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

w A u w AT O S A , w I

L A k E z u R I C h , I L

I n v O L v E m E n T Negotiation Design Coordination Construction ManagementBid Analysis

I n v O L v E m E n T Site Selection & NegotiationDesign Coordination Bid AnalysisOwner’s Representation

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.

This LEED-certified building is constructed in a TIF district, yet owned by a not-for-profit.

Our experience and process brings your store to life, enabling your project to reach its full potential, maximizing on your unique opportunity.

b E A v E R d A m , w I

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.

Goodwill Industries

Landlords &Developers

Working with Berengaria Development

2010 International Council of Shopping Centers: Chicago Deal Making

Berengaria Development’s donation Retail 2.0 concept was established working closelywith Goodwill Industries of Southeastern Wisconsin and Metropolitan Chicago.

“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.”

- v I C k I E v O L p A n O Senior Vice President & Chief Operating Officer

“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.” - v I C k I h O L S C h u h

Senior Vice President of Retail Services

“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 A R L E S S TA d L E R Senior Vice President & Chief Financial Officer

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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-for-service 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

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Learn how berengaria development

can help improve your existing stores

and facilitate your expansion.

Call Jay or Chris at 414-455-0198

for a free review of your existing portfolio.

Visit berengariadevelopment.com to learn more.

100 East Wisconsin Avenue, Suite 1030

Milwaukee, WI 53202-4125

T 414 455 0198 F 414 755 7373

berengariadevelopment.com

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