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BIMBO BAKERIES USA (S&P BBB) OFFERING MEMORANDUM | 1311 W. CARDINAL COURT | URBANA, IL AFFILIATED BUSINESS DISCLOSURE & CONFIDENTIALITY AGREEMENT

This Offering Memorandum has been prepared by NKF Capital Markets for use by a limited number of parties and has been OFFERED EXCLUSIVELY BY obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, NEWMARK KNIGHT FRANK warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. All NATIONAL NET LEASE projections have been developed by NKF, Owner and designated sources, are based upon assumptions relating to the general PRACTICE GROUP economy, competition, and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by NKF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained JERRY HOPKINS herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies Senior Managing Director and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, NKF, Owner 918.878.9536 and their employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or [email protected] for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. KEN HEDRICK Executive Managing Director The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information 918.878.9540 contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and [email protected] an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. D. ANDREW RAGSDALE J.D. Senior Managing Director Owner and NKF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers 918.878.9535 regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no [email protected] legal commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or ANDY GALLAS waived. Senior Managing Director 312.224.3160 This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in [email protected] sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering KEVIN DUCKLER Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without Executive Managing Director the prior written authorization of Owner or NKF and that you will use the information in this Offering Memorandum for the sole 312.224.3151 purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in [email protected] any fashion or manner detrimental to the interest of Owner or NKF. If you have no interest in the property, please return the Offering Memorandum forthwith. BEN W. GREAZEL Executive Managing Director 312.224.3241 [email protected]

2 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP THE INVESTMENT 5 THE OFFERING 6 INVESTMENT HIGHLIGHTS THE TENANT 8 TENANT/CREDIT OVERVIEW 9 LEASE ABSTRACT RENT SCHEDULE 11 LOCATION MAP 12 AERIAL MAP 15 SITE PLAN URBANA, ILLINOIS 14 LOCATION OVERVIEW 15 DEMOGRAPHICS

3 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP THE INVESTMENT

4 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP THE OFFERING PURCHASE PRICE $1,428,233 CAP RATE 6.25% Newmark Knight Frank National Net Lease Practice Group has been retained to exclusively offer the opportunity to purchase the Bimbo Bakeries USA- Property Summary leased property located in Urbana, Illinois. Price $1,428,233 The opportunity is to acquire the fee-simple interest ownership in the recently Cap Rate 6.25% constructed commercial property located at 1311 W. Cardinal Court (the “Property”). The property consist of a 5,000 SF building situated on a 1.75 acre parcel of land. NOI $89,264.59

The facility is leased to Bimbo Bakeries USA, LLC under a 15 year lease with approximately 14 years remaining. Bimbo Bakeries is operating under a NN lease with landlord responsibilities limited to maintaining and replacing the roof and structure for the duration of the lease -- and parking for the first five years. The lease features 5% rental escalations every five years throughout the initial term and the three (3), five (5) year options periods.

The property is centrally located within close proximity to Interstate 74 (54K VPD) and Interstate 57. Other nearby national credit tenants include FedEx Corporation, Bimbo Bakeries USA | Urbana, IL Ryder, Home Depot, Holiday Inn Express, Wyndham Garden Inn and the University of Illinois (student body population of 44K) to name a few. In addition, the area is well Location 1311 W. Cardinal Court populated with a growing population of 141,000 residents in the 5 mile radius. Property description Office / Warehouse Distribution Bimbo Bakeries USA, LLC is the American corporate arm of the $13.5BB multi- Building area 5,000 national bakery company (BMV:BIMBO). In 2016, Bimbo Bakeries USA, Acreage 1.75 LLC generated $3.9BB in revenues. The U.S. Division has 15,000 employees and is headquartered in Horsham, PA. Bimbo Bakeries USA, LLC owns an investment grade Construction Metal credit rating of BBB by Standard & Poor’s. In 2016, Forbes Magazine ranked Grupo Dock doors 6 Bimbo at #986 on the Forbes Global 2000, an annual ranking of the top 2,000 public companies in the world. Environmental Clean Phase I Parking lot Concrete Year built 2016 Remaining term 14 years Room to expand Yes: 5,000 SF

5 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP INVESTMENT HIGHLIGHTS INVESTMENT GRADE TENANT RECENTLY CONSTRUCTED BUILT TO SUIT The subject property was built in 2016 and consists of a 5,000 SF building on a 1.75 acre parcel of land. This was a built to suit project developed specifically for the tenant who uses the facility as sorting and distribution facility for the Urbana-Champaign MSA. S&P BBB | BMV:BIMBO STRONG, INVESTMENT GRADE CREDIT TENANT $3.9 billion Bimbo Bakeries USA, LLC is the American corporate arm of the $13.5BB multi-national bakery company Grupo Bimbo (BMV:BIMBO). In 2016, Bimbo Bakeries USA, LLC generated $3.9BB in revenues. Bimbo Bakeries USA, LLC owns an investment grade credit rating of BBB by Standard & Poor’s. Bimbo Bakeries USA, LLC is 15 YEAR headquartered in Horsham, PA with 15,000 U.S. Employees and 83 U.S. Plants. LEASE TERM LONG TERM, 15-YEAR PASSIVE LEASE RENTAL INCREASES Bimbo Bakeries USA, LLC signed a 15 year lease with 14 years of term remaining (Lease expiration date of 12/1/2031). The lease features limited landlord responsibilities limited to maintenance and replacement of 5% EVERY FIVE YEARS roof and structure for the life of the lease, and parking for the first five years. The current landlord also has a 15 year transferable roof warranty. BRAND NEW CONSTRUCTION ATTRACTIVE RENT ESCALATIONS BUILT TO SUIT The Bimbo Bakeries USA, LLC lease also include 5% rent escalations every five years in the initial term and INDUSTRIAL DISTRIBUTION throughout the three (3), five (5) year renewal options. STRONG LOGISTICS LOCATION INTERSTATE JUST OFF The property is centrally located within close proximity to Interstate 74 (54K VPD) and Interstate 57. Other INTERSTATE 74 nearby national credit tenants include FedEx Corporation, Ryder, Home Depot, Holiday Inn Express, Wyndham 74 Garden Inn and the University of Illinois (student body population of 44K) to name a few. In addition, the area 54,700 VPD is well populated with a growing population of 141K residents in the 5 mile radius. ADDITIONAL ROOM TO EXPAND HOME OF THE UNIVERSITY OF ILLINOIS The subject property is a new built-to-suit with the capacity to easily expand another 4,700 square feet. AT URBANA-CHAMPAIGN

6 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP THE TENANT

7 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP Parent TENANT/CREDIT OVERVIEW Grupo Bimbo Grupo Bimbo is the largest baking company in the world generating $13.5 million in net sales Guarantor in 2016. They produce and distribute fresh and frozen sliced bread, buns, cookies, snacks, Bimbo Bakeries USA, LLC salted snacks and confectionery products, among others, in 22 countries throughout the Americas, Europe and Asia. Bimbo Bakeries USC, Inc. is the U.S. subsidiary that generates S&P RATING approximately 53% of Grupo Bimbo’s total revenues and 43% of their EBITDA. Bimbo Bakeries BBB (Stable) USA is the American corporate arm of the multinational bakery company. Stock Symbol Bimbo Bakeries USA’s story begins in 1994, when Grupo Bimbo – ’s largest baking company with operations in 21 countries – purchased La Hacienda, a California-based BMV: BIMBO tortilla company. Bimbo Bakeries USA then entered the U.S. bread market in 1997 with the acquisition of Pacific Pride Bakeries of San Diego. The company grew again in 1998 with the U.S. Corporate HQ purchase of Mrs. Baird’s Bakeries in , which at the time was the largest family-owned Horsham, PA bakery in the U.S. The combined operations were renamed Bimbo Bakeries USA (BBU).

2016 US Revenues In 2002, BBU acquired the Western U.S. baking business of George Weston Ltd., adding such $3.9 billion iconic premium brands as Oroweat®, Entenmann’s®, Thomas’® and Boboli®. In 2009, Grupo Bimbo purchased the remaining U.S. fresh baked goods business of George Weston Industry Ltd., adding brands such as Arnold®, Brownberry®, Freihofer’s® and Stroehmann®. Food Processing & Distribution In 2011, BBU completed its largest acquisition to date: Sara Lee’s North American Fresh Bakery business. Adding Sara Lee’s bread business doubled BBU in size, enabling them to Number of U.S. Employees better deliver on their mission, vision and values. 15,000 In 2016, Forbes Magazine ranked Grupo Bimbo at #986 on the Forbes Global 2000, an annual Number of U.S. Plants ranking of the top 2,000 public companies in the world. 83 Website www.bimbobakeriesusa.com

8 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP 1311 W CARDINAL COURT | URBANA, ILLINOIS PURCHASE PRICE $1,428,233 CAP RATE 6.25%

LEASE ABSTRACT PROPERTY SPECIFICS Rent Commencement Date: November 30, 2016 Bimbo Bakeries USA | Urbana, IL Annual Rent: $89,264 Location 1311 W. Cardinal Court LED: 12/1/2031 Year built February 2017 Tenant/Guarantor: Bimbo Bakeries USA, Inc. SF 5,000 Rent Increases: 5% every 5 years Acreage 1.75 Option Periods: 3, 5 years options Construction: Metal (Pre-engineered Steel) NN - Roof, Structure, Parking Lot Expenses: Dock doors 6 (first 5 years only) Environmental Clean Phase I Parking lot Concrete Clear Height 18 Feet RENT SCHEDULE Room to Expand Yes (5,000 SF) Year Annual Rent Monthly Rent Bump 1-5 (Current) $89,264.59 $7,438.72 6-10 $93,727.82 $7,810.65 5% 11-15 $98,414.21 $8,201.18 5% Option Period 1 $103,334.92 $8,611.24 5% Option Period 2 $108,501.67 $9,041.82 5% Option Period 3 $113,926.75 $9,493.90 5%

ACTUAL SITE

9 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP SUBJECT PROPERTY

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10 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP DISTANCE TO SUBJECT PROPERTY

CHICAGO

2 hr 8 min

URBANA

PEORIA

INDIANAPOLIS

1 hr 51 min

SPRINGFIELD

ST. LOUIS

2 hr 40 min

11 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP 54,700 VPD

INTERSTATE 74 LOCATION OVERVIEW

2 hours 8 minutes 54,700 drive to Chicago vehicles per day on I-74

CRYSTAL LAKE 5 flights daily to Chicago 47,826 attend the PARK from Willard Airport University of Illinois

Forbes’ 12 #40 Best Small Place Business Incubators for Business Changing the World

Research Park is a 1 hour 51 minutes technology hub drive to Indianapolis for 100+ companies

10th of Top 25 $ 108,718,000 UNIVERSITY OF ILLINOIS green cities Food at Home in the U.S. Total Spending

12 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP LOCATION OVERVIEW

National Mini 54,700 Warehouses VPD Reynolds Towing INTERSTATE Service Altorfer Inc. 74 Peoria Char- ter Coach

Illinois Amer- Dash ican Water Management Fasteners Etc Offices

Sagamore Publishing

13 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP NEIGHBORING TENANTS

Sagamore Publishing Illinois American Water

Fasteners Etc. FedEx Corporation

14 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP SITE PLAN

Room to expand 5,000 SF

15 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP URBANA, ILLINOIS

16 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP URBANA Illini Union The Urbana metropolitan area is home to the University of Illinois at Urbana- Champaign, the flagship campus of the University of Illinois system. The Urbana-Champaign campus has a student body population of approximately 47,000. Champaign is also home to Parkland College which serves about 18,000 students during the academic year.

Due to the university and a number of well-known technology startup companies, the area is often referred to as the hub of the Silicon Prairie. Champaign houses offices for Sony, and for the Fortune 500 companies Abbott, Archer Daniels Midland (ADM), Caterpillar, Deere & Company, Dow Chemical Company, IBM, and State Farm. Herff Jones and Kraft also form part of the city’s industrial base.

The city features a large technology and software industry mostly focusing on research and development of new technologies. The Research Park, located in southern Champaign and backed by the University of Illinois, is home to many companies, including Riverbed Technology, Citrix Systems, Abbott Laboratories, Dow Innovation Center, Intelligent Medical Objects, Yahoo! and Beckman Institute for Advanced the State Farm Research Center. Science and Technology

Several other software and technology companies also have offices in Champaign including AMD, Intel, IBM, Amdocs, Infobright, Instarecon, Phonak, Power World, Caterpillar Simulation Center, and Volition. The largest high technology employer is Wolfram Research, with more than 400 employees in Champaign. The Army Corps of Engineers maintains the Construction Engineering Research Laboratory (CERL) in Champaign.

17 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP YOUNG URBANA is... 31 AVERAGE AGE

OCCUPIED GROWING 8.2% 3.5% VACANCY POPULATION GROWTH

DENSE BUSTLING 141,000 54,700 TOTAL POPULATION VPD ON I-74

DEMOGRAPHICS ANALYTICS

Population 1 Mile 3 Mile 5 Mile Industrial 1311 Cardinal Ct Champaign-Urbana 2017 Total Population 7,252 86,597 141,640 Buildings 1 194 2022 Population 7,415 89,666 146,710

Pop Growth 2017-2022 2.25% 3.54% 3.58% Existing SF 4,750 9,678,101

Average Age 31.90 31.10 33.60 Average Building SF 4,750 49,887

Households Rent Per SF $2.84 2017 Total Households 3,277 35,544 57,961

HH Growth 2017-2022 1.83% 3.83% 3.88% Vacancy Rate 0.0% 8.2%

Median Household Income $24,987 $31,950 $43,310 Available Spaces 0 40 Housing Available SF 0 1,790,257 Median Home Value $85,713 $141,263 $158,888

Median Year Built: 1991 1972 1976 12 Mo. Absorption SF 0 169,679

18 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP NATIONAL NET LEASE PRACTICE GROUP BIMBO BAKERIES USA JERRY HOPKINS 1311 W. CARDINAL COURT | URBANA, IL Senior Managing Director 918.878.9536 [email protected]

KEN HEDRICK Executive Managing Director 918.878.9540 [email protected]

D. ANDREW RAGSDALE, Esq. Senior Managing Director 918.878.9535 [email protected]

ANDY GALLAS Senior Managing Director 312.224.3160 [email protected]

KEVIN DUCKLER Executive Managing Director 312.224.3151 [email protected]

BEN W. GREAZEL Executive Managing Director 312.224.3241 [email protected]

19 BIMBO BAKERIES USA: URBANA NATIONAL NET LEASE PRACTICE GROUP