OM: Crux Sale-Leaseback Opportunity

OFFERING MEMORANDUM

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY Anchored by Crux Fermentation Project 50 SW Division Street, Bend, OR 97702 FOR SALE: 8,816 SF | 1.57 AC | $5,000,000

NE

$3

WL YR 0 6,0

00

IN

ES

CR

TR

ED

UC

ITS

TU

+R

EN

RE

TG

DO

UA

RA

FF

NT

ER

EE

!

50 SW DIVISION STREET | BEND, OREGON

1

2

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

OFFERING MEMORANDUM

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY 50 SW Division Street, Bend, OR 97702

Investment Summary – 5 Property Photos – 13 Location Overview – 17 Offer Terms – 23 Disclaimer – 25 Peter May, CCIM

Partner, Principal Broker Cell 541.408.3888

pmay@compasscommercial.com

Dan Kemp, CCIM

Partner, Principal Broker Cell 541.550.8413

dkemp@compasscommercial.com

Pat Kesgard, CCIM

Partner, Principal Broker Cell 541.350.8900

pkesgard@compasscommercial.com

www.CompassCommercial.com | 541.383.2444 Brokers are licensed in the state of Oregon

50 SW DIVISION STREET | BEND, OREGON

3

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

5 0 S W D I V I S I O N S T R E E T, B E N D , O R 9 7 7 0 2

$5,000,000 Sale Price

4

8,816

Bldg. Size (SF)

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

$489.33

Bldg. Price/SF

5.71% Cap Rate

1.57

Lot Size (AC)

52

Parking Spaces

INVESTMENT SUMMARY MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY 50 SW Division Street | Bend, Oregon

HIGHLIGHTS

OPPORTUNITY OVERVIEW Presenting a unique sale-leaseback opportunity with Crux Fermentation Project in the heart of Bend, Oregon. The offering includes an 8,816 SF facility on 1.57 acres. The Crux operation requires a total of 1.22 acres of land to support outdoor seating and food cart operations, leaving a future retail pad site of 0.35 acre on the south end of the lot, which represents excess land. This option allows for a stable investment while maintaining Crux Fermentation Project’s ongoing operations.

Investment opportunity with sale-leaseback

Large indoor and outdoor seating areas

Excellent on-site parking plus additional parking on ODOT land

Sale includes future retail site of 0.35 acre

Located in the Opportunity Zone

Brewing and kitchen equipment available for purchase

Stunning views of the Growing area with Cascade Mountains two new mixed use developments with 1,900+ units 6

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

PROPERTY LINES APPROXIMATE

THE OFFERING SALE-LEASEBACK OPPORTUNITY The property at 50 SW Division Street, located on Bend’s west side, presents a unique sale-leaseback opportunity with Crux Fermentation Project. This arrangement facilitates a seamless transition and continued operation for Crux Fermentation Project, while providing a secure, more diversified investment for the new owner. Crux will leaseback 64% of the building, with the remainder of the building being leased to one or two other retail tenants (see space plan on page 8).

The acclaimed tasting room, designed as a craft beer haven, draws a diverse audience of families, outdoor enthusiasts, and beer aficionados. The facility features over 24 taps, a spacious lawn with food carts, and breathtaking views of the Cascade Mountains.

The building encompasses 5,616 square feet of restaurant space occupied by Crux, along with an additional 3,200 square feet of soon to be demised retail space. Constructed with concrete blocks, exposed ceilings, and impressive rollup glass doors, the facility exudes a modern industrial ambiance. The extensive lawn area includes three upgraded pads for food carts, equipped with concrete pads, underground electrical lines, and grey water lines.

The property offers 52 on-site parking spaces, with additional parking available on land leased from ODOT. The leased land from ODOT spans 21,999 square feet on the eastern edge of the property.

OPPORTUNITY DETAILS

FACILITY OVERVIEW

$4,313,930 (5.71% Cap Rate)

Excess Land Price

$686,070 (0.35 acre)

Gross Price

$5,000,000

Total Credits

$402,000 (see page 9 for more information)

Total Bldg. Net Price $3,911,930

HISTORY Originally constructed in 1988 as a Lumbermen’s supply store and later repurposed as an AAMCO transmission shop, the property underwent a complete transformation into a restaurant and brewery in 2012, with a subsequent 2,936-square-foot expansion in 2018. Its central location, situated between the historic Box Factory, Old Mill District, and downtown Bend, makes it a prime spot for business.

Building Price

Building Size

8,816 SF

Building Price/SF

$489.33

Sale-Leaseback

5-year term at base rent. More details provided with a signed NDA.

Property Type

Restaurant and Retail

Address

50 SW Division Street, Bend, OR 97702

Tax Lot

181205AA00701

County

Deschutes

Zoning

Mixed-Use Urban (MU)

Total Land Area

1.57 Acres (includes excess land)

Year Built

1988

Year Remodeled

2000 - AAMCO transmission shop 2012 - restaurant/brewing facility 2018 - Large restaurant expansion

Parking

52 onsite spaces (5.90:1,000 SF Ratio) plus additional parking on leased ODOT land.

Occupancy

240

Food Cart Sites

3 concrete pad sites with underground electrical and grey water lines.

50 SW DIVISION STREET | BEND, OREGON

7

DEMISING PLAN CURRENT CONCEPTUAL DEMISING PLAN The building is currently being demised to create one to two additional retail spaces. Crux will lease back the southern portion of the building, including the outside food carts, on a long-term lease, leaving 3,200 square feet on the north side available for lease.

COOLER 120 SF

FREEZER 72 SF MEN 169 SF

DRY STOR. 207 SF

WOMEN 213 SF

SERVER 131 SF

RR 62 SF

RETAIL 1 1,600 SF

BEER CELLAR 758 SF

RETAIL 2 1,600 SF

KITCHEN 361 SF

BACK BAR 196 SF

ELEC.

KITCHEN 122 SF

SERVICE BAR 168 SF

POS 126 SF

SEATING 1,017 SF

ROLL UP DOOR

8

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

RR 62 SF

STOR.

RR 61 SF

HOP COOLER 95 SF

STANDING 275 SF

CRUX 5,616 SF

SEATING 1,138 SF

OUTDOOR SEATING 978 SF

FINANCIALS CREDITS AT CLOSING The seller will offer the following credits to the buyer at closing to complete the demising plan and lease-up: $150,000 credit for space demising (construction bid available upon request) $144,000 credit for tenant improvements $12,000 credit towards leasing commissions Total Credits: $306,000

RENT GUARANTEE The seller will guarantee the buyer’s cap rate by providing a rent guarantee for 12 months, structured as an escrow holdback account, with a maximum credit amount of $96,000.

RENT ROLL FORRENT DEMISED ROLLBUILDING FOR DEMISED BUILDING Size (SF) Rent/SF Size (SF) Total Rent/SF Total Crux Space 5,616 Crux Space $ 2.50 5,616$ $ 14,0402.50 $ 14,040 Retail Space 3,200 Retail Space $ 2.50 3,200$ $8,0002.50 $ 8,000 Monthly Rent Monthly Rent $ 22,040 $ 22,040 nual Rent Income Annual Rent Income $ 264,480 $ 264,480 Vacancy (5%) Vacancy (5%) $ (13,224) $ (13,224) OperatingGross Income Operating Income $ 251,256 $ 251,256 Reservies (2%) Reservies (2%) $ (5,025) $ (5,025) NOI NOI $ 246,231 $ 246,231 Cap Rate Cap Rate 5.71% 5.71%

CREDIT ANALYSIS CREDIT ANALYSIS Gross Purchase Price: Gross$Purchase 5,000,000 Price: $ Extra Land: $ Extra 686,070 Land: $ Bldg Purchase Price: Bldg$Purchase 4,313,930 Price: $ Demising Credit: $Demising (150,000) Credit: $ TI Allowance Credit: TI Allowance $ (144,000) Credit: $ Rent Guarantee (1Rent yr): Guarantee $ (96,000) (1 yr): $ Tenant Broker Fee:Tenant $ Broker (12,000) Fee: $ Total Credits: $ Total (402,000) Credits: $ Net Bldg Sale Price: Net$Bldg 3,911,930 Sale Price: $ Total Net Sale Price: Total$ Net 4,598,000 Sale Price: $

50 SW DIVISION STREET | BEND, OREGON

5,000 686 4,313 (150 (144 (96 (12 (402 3,911 4,598

9

SITE PLAN ADDITIONAL PARKING AREA ON ODOT LEASED LAND

EXTRA PARKING LOT 18 SPACES

FOOD TRUCKS 3 PAD SITES RETAIL 1 1,600 SF

RETAIL 2 1,600 SF

CRUX 5,616 SF

LAWN

MAIN PARKING LOT 34 SPACES

PROPERTY LINES APPROXIMATE

10

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

F U T U R E R E TA I L S I T E This offering currently includes 0.35 acre (15,246 SF) of excess land for a future retail development. This land currently serves ±8,712 SF of outdoor lawn space and an additional ±6,534 SF (18 parking spaces). This leaves Crux with plenty of outdoor space to continue their food cart operations and maintain its current level of service.

The additional land sits in a prime retail area next to the main entrance to the upcoming Timber Yards project. Timber Yards will feature a 32-acre mixed-use development, including 1,600 residential units, a hotel, and 190,000 square feet of commercial space.

PROPERTY LINES APPROXIMATE 50 SW DIVISION STREET | BEND, OREGON

11

12

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

PROPERTY PHOTOS MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY 50 SW Division Street | Bend, Oregon

14

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

50 50SW SWDIVISION DIVISIONSTREET STREET | BEND, OREGON

15

16

TURNKEY RESTAURANT MULTI-TENANT RETAIL INVESTMENT & BREWERYOPPORTUNITY

LOCATION OVERVIEW MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY 50 SW Division Street | Bend, Oregon

S T R AT E G I C LO C AT I O N Strategically positioned adjacent to the Timber Yards, a planned 32-acre mixed-use development, the property will benefit from proximity to 1,600 residential units, a hotel, and 190,000 square feet of commercial space.

Additionally, The Jackstraw, a future 4.7-acre mixed-use development located just down the road from the facility, will feature 313 thoughtfully designed residential units and 17,500 square feet of retail space, creating a dynamic hub for the community.

The Old Mill District, just half a mile from the facility, attracts crowds with over 52 concerts each season featuring renowned artists at the Hayden Homes Amphitheater. The area’s vibrant shopping and diverse dining options contribute to a dynamic atmosphere, drawing in locals and tourists alike.

18

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

GROWING & THRIVING The city of Bend, with a current population just over 100,000, ranks 2nd in the State for population growth over the last ten years, recording a 33.4% increase over that time period. Nationally, Bend was ranked as the 13th strongest market in the country in the Commercial Real Estate Metro Market Index published

by NAR (based on job growth, wage growth, unemployment rates, vacancies, absorption and cap rates). Work-life balance and access to the outdoors has made Bend one of the most attractive places to live in the Country. Residents enjoy the advantages of a small town with the medical, professional and educational opportunities as a large metro.

The current unemployment rate in Bend is 3.4% and wage growth is among the highest in the nation.

The Milken Institute ranked the Bend Metro as the Best Performing Small City in the nation in 2020 for the fourth consecutive year. Bend is a burgeoning area slated for increasing growth.

50 50SW SWDIVISION DIVISIONSTREET STREET | BEND, OREGON

19

BEND, OREGON With a population of 102,059, Bend is the sixth-largest city in Oregon and the largest city in Central Oregon, acting as its commercial, recreational, and social hub. Nestled on the eastern edge of the Cascade Range along the Deschutes River, Bend blends forested mountain highlands with high desert plateaus, offering diverse scenery and outdoor activities while providing relatively easy access to major West Coast metropolitan areas.

LIFESTYLE DESTINATION Bend has a deserved reputation for attracting lifestyle migrants – urban dwellers seeking amenities typically associated with larger metropolitan areas but also outdoor recreational pursuits, a beautiful setting and an accessible community feeling. As such, the city attracts families and entrepreneurs from all the West Coast metro areas as well as other major population centers. The city has been adopted as a gateway for many outdoor sports, including mountain biking, skiing and snowboarding, dog sled racing, fishing, hiking, rock climbing, white-water rafting and golf. Bend also offers a thriving arts and culture scene, and the city’s beer brewing industry and restaurants are a draw for tourists and locals alike.

20

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

BEST PERFORMING SMALL CITY IN THE U.S.

FASTEST-GROWING CITY IN THE U.S.

HIGHEST JOB GROWTH IN THE U.S.

Milken Institute 2017, 2018, 2019 & 2020

WalletHub 2020

WalletHub 2020

#1

#2

#2

CENTRAL OREGON LIFESTYLE Central Oregon offers a rare mix of city amenities and restful isolation, including the slower speed of a small town with a medical community and infrastructure not normally seen in a region of its size. Additionally, Central Oregon residents maintain a work/life balance that is difficult to achieve elsewhere.

EDUCATION Central Oregon is well-recognized for its high level of education, with some of the best K-12 public schools in the nation. In 2020, the Bend-La Pine school district’s average SAT scores surpassed the national average by over 130 points. Additionally, the region’s higher education opportunities abound. From the new Oregon State University-Cascades to Central Oregon Community College’s four campuses in the region, there are opportunities for all to obtain a quality education.

AIRPORT Redmond Municipal Airport provides commercial air service with daily non-stop flights to Burbank, Denver, Los Angeles, Phoenix, Salt Lake City, San Diego, San Francisco, Santa Rosa, and Seattle via carriers American, Alaska, Avelo, Delta, and United. The airport is undergoing a $5.2 million expansion to meet the rising demand for transit in and out of the region.

300 Days of Sunshine

Miles of Trails

31 Breweries & Counting

Thriving Arts & Culture

30 Golf Courses 50 SW DIVISION STREET | BEND, OREGON

21

BEND, OREGON DEMOGRAPHICS

POPULATION TRENDS AND KEY INDICATORS Bend, OR POPULATION

105,801

113,024

1.33%

44,031

2.38

2.52%

2021 Total Population (Esri)

2026 Total Population (Esri)

2022-2027 Population: Annual Growth Rate (Esri)

Total Households

Average Household Size

2010-2020 Annual Growth Rate

INCOME

POPULATION BY GENERATION

HOUSEHOLDS

$84,793

$52,050

$183,480

$597,326

42.3%

$1,368

Median Household Income

Per Capita Income

Median Net Worth

Median Home Value

Percent of Income for Mortgage

Median Contract Rent

EDUCATION

Tapestry segments

21,259 2021 Baby Boomer Population (Born 1946 to 1964) (Esri)

8C

20,932 2021 Generation X Population (Born 1965 to 1980) (Esri)

22,737

26,872

4%

15%

32%

49%

No High School Diploma

High School Graduate

Some College

Bachelor's/Grad/Prof Degree

Bright Young Professionals 8,909 households

4C

BUSINESS

20.2% of Households

Middleburg

16.4%

7,204 households

of Households

In Style

12.5%

5,524 households

of Households

2021 Millennial Population (Born 1981 to 1998) (Esri)

2021 Generation Z Population (Born 1999 to 2016) (Esri)

This infographic contains data provided by American Community Survey (ACS), Esri, Esri and Bureau of Labor Statistics. The vintage of the data is 2015-2019, 2021, 2026. © 2021 Esri

22

HOUSING STATS

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

5B

6,179

58,568

3.9%

Total Businesses

Total Employees

2021 Unemployment Rate (Esri)

OFFER TERMS MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY 50 SW Division Street | Bend, Oregon

OFFERING TERMS The property at 50 SW Division Street, Bend, OR 97702 is being offered for sale on an “as-is, where-is” basis.

Please submit offers via email to the listing team.

Interested parties must submit a written Letter of Intent (“LOI”) or a Purchase & Sales Agreement (“PSA”) outlining the terms and conditions under which they propose to purchase the Property. Such terms must include the following: • Purchase price • Company background and financial capability • Source of capital (Equity/Debt) • Amount and form of earnest money deposit(s) • Required contingency periods (inspection, financing, etc.), including any extension(s) • Closing timeline All property tours must be scheduled in advance through the Compass Commercial listing team.

Peter May, CCIM

Partner, Principal Broker Cell 541.408.3888

pmay@compasscommercial.com

Dan Kemp, CCIM

Partner, Principal Broker Cell 541.550.8413

dkemp@compasscommercial.com

Pat Kesgard, CCIM

Partner, Principal Broker Cell 541.350.8900

pkesgard@compasscommercial.com

www.CompassCommercial.com | 541.383.2444 Brokers are licensed in the state of Oregon

24

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY

DISCLAIMER DISCLAIMER: This marketing package has been prepared by Compass Commercial Real Estate Services (Compass Commercial) in full cooperation with the Seller of the Property solely for the purposes of providing preliminary information to prospective purchasers. It is not intended as the sole source of property and operational data and should not be relied on in place of appropriate due diligence activities. Neither Compass Commercial nor its agents can guarantee accuracy and no liability is assumed for financial, operational, physical, or other information provided herein including, but not limited to, errors and omissions, transmittal of inaccuracies, prior sale, price adjustments, or removal from marketplace without notice. Any indicated value of this investment is based upon assumptions, projections and estimates, which are variable by nature and subject to changing eco-

nomic conditions. The value of this investment to you will also depend on tax and other factors, which should be evaluated by your tax and legal experts or advisors. It is your responsibility to independently confirm information received about the property to your satisfaction and you are urged to seek advice from your own attorney, CPA, design consultant, franchise representative, and/or other qualified professionals in your investigation of this opportunity.

EXCLUSIVE: The property represented herein is exclusively listed for sale by Compass Commercial Real Estate Services. All negotiations for the purchase shall be conducted through Compass Commercial Real Estate Services.

50 SW DIVISION STREET | BEND, OREGON

25

600 SW Columbia St., Ste. 6100 | Bend, OR 97702 541.383.2444 | www.CompassCommercial.com

26

MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY