SUBJECT PROPERTY

BIMBO BAKERIES USA OFFERING MEMORANDUM | 3500 MUSTANG COURT | SPRINGFIELD, IL CONFIDENTIALITY AGREEMENT

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (DATE) of this Memorandum have remained the same. Analysis and verification of the OFFERED EXCLUSIVELY BY information contained in this Memorandum are solely the NET LEASE PRACTICE GROUP responsibility of the prospective purchaser. Additional information and an opportunity to inspect the JERRY HOPKINS Property will be made available upon written request of Executive Managing Director interested and qualified prospective purchasers. Seller 918.878.9536 and Agent each expressly reserve the right, at their sole [email protected] discretion, to reject any or all expressions of interest or KEN HEDRICK offers regarding the Property, and/or terminate discussions Executive Managing Director with any party at any time with or without notice. Seller 918.878.9540 reserves the right to change the timing and procedures for [email protected] the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to D. ANDREW RAGSDALE, Esq. any party reviewing this Memorandum, or making an offer Senior Managing Director to purchase the Property, unless and until such offer is 918.878.9535 approved by Seller, and a written agreement for the purchase [email protected] of the Property has been fully executed and delivered by Seller and the Purchaser thereunder. Broker of Record: This Memorandum and the contents, except such Carrie Frye information which is a matter of public record or is provided Executive Vice President, Market Leader in sources available to the public, are of a confidential 312.224.3124 nature. By accepting this Memorandum, you agree that you IL RE LIC #471020937 will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this 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 the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

2 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS 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 SPRINGFIELD, ILLINOIS 17 LOCATION OVERVIEW 18 DEMOGRAPHICS

3 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS THE INVESTMENT

4 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS Property Summary Price $2,300,000 Cap Rate 5.60% NOI $128,983 THE OFFERING

Newmark Net Lease Capital Markets has been retained to exclusively offer the opportunity to purchase the Bimbo Bakeries USA-leased property located in Springfield, Illinois. Bimbo Bakeries USA | Springfield, Illinois

The facility is leased to Bimbo Bakeries USA, LLC under a 15 year lease with Location 3500 Mustang Court approximately 10.5 years remaining. Bimbo Bakeries is operating under a NN Property description Office / Warehouse Distribution 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 Building area 8,500 years. The lease features 5% rental escalations every five years throughout Acreage 2.06 the initial term and the three (3), five (5) year options periods. Construction Metal The property is centrally located within close proximity to Interstate 55 Dock doors 9 (39,000 VPD) and Interstate 72. Other nearby national credit tenants include Coca-Cola and Wal-Mart to name a few. In addition, the area is well populated Environmental Clean Phase I with a population of 155,000 residents in a 10-mile radius. Parking lot Concrete Bimbo Bakeries USA, LLC is the American corporate arm of the $15.45BB Year built 2016 multi-national bakery company (BMV:BIMBO). In 2019, Grupo Remaining term Approximately 10.5 years Bimbo North American division generated $7.6BB in revenues. The US division has over 20,000 employees and is headquartered in Horsham, PA. Room to expand Yes (4,700 SF) Grupo Bimbo owns an investment grade credit rating of BBB by Standard & Poor’s and is currently #49 on the Fortune 500 list.

5 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS INVESTMENT HIGHLIGHTS

BUILT TO SUIT CONSTRUCTION WITH ADD’L ROOM TO EXPAND The subject property was built in 2016 and consists of a 8,500 SF building on a 2.06 acre parcel of land with additional room to expand. This was a built-to-suit project developed specifically for the tenant who uses the facility as sorting and distribution facility for the Springfield MSA.

STRONG, INVESTMENT GRADE CREDIT PARENT

10+ YEAR Bimbo Bakeries USA, LLC is the American corporate arm of the $15.45 billion multi-national bakery company LEASE TERM Grupo Bimbo (BMV:BIMBO). In 2019, the North American Division generated $7.6 billion in revenues. Grupo Bimbo owns an investment grade credit rating of BBB by Standard & Poor’s. Bimbo Bakeries USA, LLC is headquartered in Horsham, PA with 20,000 U.S. employees and over 60 US bakeries. RENTAL INCREASES 5% EVERY FIVE YEARS LONG-TERM PASSIVE LEASE Bimbo Bakeries USA, LLC signed a 15 year lease with 10.5 years of term remaining (Lease expiration date of BUILT TO SUIT CONSTRUCTION 12/1/2031). The lease features landlord responsibilities limited to maintenance and replacement of roof and structure for the life of the lease, and parking for the first five years. INDUSTRIAL DISTRIBUTION ATTRACTIVE RENT ESCALATIONS The Bimbo Bakeries USA, LLC lease also include 5% rent escalations every five years in the initial term and throughout the three (3), five (5) year renewal options. INTERSTATE JUST OFF 55 INTERSTATE 55 STRONG LOGISTICS LOCATION 39,188 VPD The property is centrally located within close proximity to Interstate 55 (39,000 VPD) and Interstate 72 (13,000 VPD). Other nearby national credit tenants include Coca-Cola and Wal-Mart to name a few. In addition, the area is well populated with a growing population of 155,000 residents in a 10-mile radius. HOME OF THE ABRAHAM LINCOLN PRESIDENTIAL LIBRARY

6 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS THE TENANT

7 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS Parent TENANT/CREDIT OVERVIEW Grupo Bimbo Grupo Bimbo is the largest baking company in the world generating $15.45 Guarantor billion in net sales in 2019. They produce and distribute fresh and frozen Bimbo Bakeries USA, LLC sliced bread, buns, cookies, snacks, salted snacks and confectionery products, among others, in 32 countries throughout the Americas, Europe S&P RATING and Asia. The North American division generates approximately 49% of BBB (Parent) Grupo Bimbo’s total revenues and 41% of their EBITDA. Bimbo Bakeries USA, LLC is the Stock Symbol American corporate arm of the multinational bakery company. BMV: BIMBO Bimbo Bakeries USA’s story begins in 1994, when Grupo Bimbo – ’s largest baking company with operations in 32 countries – purchased La Hacienda, a California-based U.S. Corporate HQ tortilla company. Bimbo Bakeries USA then entered the U.S. bread market in 1997 with the Horsham, PA acquisition of Pacific Pride Bakeries of San Diego. The company grew again in 1998 with the purchase of Mrs. Baird’s Bakeries in , which at the time was the largest family-owned 2019 North American Revenues $7.6 billion bakery in the U.S. The combined operations were renamed Bimbo Bakeries USA (BBU). In 2002, BBU acquired the Western U.S. baking business of George Weston Ltd., adding such Industry iconic premium brands as Oroweat®, Entenmann’s®, Thomas’® and Boboli®. In 2009, Food Processing & Distribution Grupo Bimbo purchased the remaining U.S. fresh baked goods business of George Weston Number of U.S. Employees Ltd., adding brands such as Arnold®, Brownberry®, Freihofer’s® and Stroehmann®. 20,000 In 2011, BBU completed its largest acquisition to date: Sara Lee’s North American Fresh Website Bakery business. Adding Sara Lee’s bread business doubled BBU in size, enabling them to www.bimbobakeriesusa.com better deliver on their mission, vision and values. Today, BBU operates more than 60 bakeries, employs more than 20,000 associates and distributes products through 11,000 sales routes throughout the .

8 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS 3500 MUSTANG COURT | SPRINGFIELD, ILLINOIS PURCHASE PRICE $2,300,000 CAP RATE 5.60%

LEASE ABSTRACT PROPERTY SPECIFICS

Rent Commencement Date: November 30, 2016 Bimbo Bakeries USA | Springfield, IL Annual Rent: $128,983 Location 3500 Mustang Court LED: 12/1/2031 Year built 2016 Tenant/Guarantor: Bimbo Bakeries USA, Inc. SF 8,500 Rent Increases: 5% every 5 years Acreage 2.06 Option Periods: 3, 5 years options Construction: Metal (Pre-engineered Steel) NN - Roof, Structure, Parking Lot Expenses: Dock doors 9 (first 5 years only) Environmental Clean Phase I Parking lot Concrete Clear height 18 ft. RENT SCHEDULE Room to expand Yes (4,700 SF)

Year Annual Rent Monthly Rent Bump 1-5 $128,983.25 $10,748.60 6-10 $135,432.41 $11,286.03 5% 11-15 $142,204.03 $11,850.34 5% Option Period 1 $149,314.23 $12,442.85 5% Option Period 2 $156,779.94 $13,065.00 5% Option Period 3 $164,618.93 $13,718.24 5%

ACTUAL SITE

9 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS SUBJECT PROPERTY

10 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS DISTANCE TO SUBJECT PROPERTY

CHICAGO

3 hr 2 min

SPRINGFIELD

KANSAS CITY

4 hr 39 min ST. LOUIS

1 hr 32 min

11 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS LOCATION OVERVIEW INTERSTATE 55

1 hours 32 minutes 39,188 vehicles per $ 91,526,000 drive to St. Louis day Food at Home on I-55 Total Spending 39,188 VPD 3 flights daily to Chicago The State of Illinois is I-72, concurrent with US from SPI largest employer 36, runs east-west ABRAHAM LINCOLN CAPITAL AIRPORT

3 hours 2 minutes Lincoln Presidential State of Illinois employs ILLINOIS drive to Chicago Museum is the #1 most 17,800 in Springfield & STATE FAIR visited in U.S. Sangamon County

INTERSTATE 74

13,400 VPD

LINCOLN PRESIDENTIAL LIBRARY

12 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS LOCATION OVERVIEW

6,700 MBC Colli- VPD sion Center

Prime Panels, Inc. Studio MD Metal Moulding Designs Inc.

13 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS NEIGHBORING TENANTS

MD Designs by Metal Decor Prime Panels, Inc.

Studio Moulding, Inc. Capital Township

14 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS SITE PLAN

Room to expand 4,700 SF

15 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS SPRINGFIELD, ILLINOIS

16 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS SPRINGFIELD Springfield is the capital of the state of Illinois and the county seat of Sangamon County. As of 2019, the city’s population was approximately 116,000 which makes it the state’s sixth most populous city in Illinois. Springfield’s economy is marked by government jobs, and the medical field, which account for a large percentage of the city’s workforce. Many of the jobs in the city center around state government, headquartered in Springfield. The State of Illinois is both the city and county’s largest employer, employing 17,800 people across Sangamon County. Government jobs, including local, state and county, account for about 30,000 of the city’s non-agricultural jobs. Trade, transportation and utilities, and the health care industries each provide between 17,000 and 18,000 jobs to the city. There are approximately 207,000 people (2019) in the Metropolitan Statistical Area with an unemployment rate of approximately 5.5%.

Springfield is known as the home and resting place of Abraham Lincoln. Springfield boasts more Lincoln historical sites than anywhere else on Earth, Downtown Springfield including the Lincoln Home National Historic Site, the Lincoln Tomb and the Abraham Lincoln Presidential Museum. In 1837 Abraham Lincoln moved to Springfield and spent the next 24 years as a lawyer and politician. Lincoln de- livered his Lyceum address in Springfield. His farewell speech when he left for Washington is a classic in American oratory.

INDUSTRIAL MARKET

The Springfield Industrial Market is vibrant with over 6.7MM SF of industrial space with approximately 2.2% vacancy. The subject property is located in an industrial park within close proximity to Interstates 74 and 55. Other tenants in the immediate area include MD Metal Designs, Studio Moulding, MBC Collision Illinois State Capitol and Prime Panels Inc. to name a few.

17 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS DEMOGRAPHICS

3 Mile 5 Mile 10 Mile

POPULATION SUMMARY 2010 Total Population 25,021 57,999 157,018 2020 Total Population 24,240 56,547 154,344 2025 Total Population 23,745 55,506 152,149 2020-2025 Annual Rate -0.41% -0.37% -0.29% 2020 Total Daytime Population 20,433 77,183 171,808 HOUSEHOLD SUMMARY 2000 Households 10,797 24,139 65,892 2010 Households 10,575 23,720 67,461 2020 Households 10,361 23,363 67,461 2025 Households 10,183 23,006 66,333 MEDIAN HOUSEHOLD INCOME 2020 $94,215 $97,533 $139,797 2025 $108,266 $113,743 $158,688 MEDIAN HOME VALUE 2020 $94,215 $97,533 $139,797 2025 $108,266 $113,743 $158,688 MEDIAN AGE 2020 41.8 39.1 40.9 2025 42.5 40.1 41.9 2020 POPULATION BY RACE/ETHNICITY White Alone 88.0% 70.9% 77.6% Black Alone 7.5% 23.8% 16.2% American Indian Alone 0.4% 0.4% 0.3% Asian Alone 0.8% 0.9% 2.2% Pacific Islander Alone 0.0% 0.0% 0.0% Some Other Race Alone 0.5% 0.6% 0.7% Two or More Races 2.9% 3.4% 3.0% Origin 2.3% 2.4% 2.6%

18 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS NET LEASE PRACTICE GROUP

JERRY HOPKINS BIMBO BAKERIES USA Executive Managing Director 3500 MUSTANG COURT | SPRINGFIELD, IL 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]

Broker of Record: Carrie Frye Executive Vice President, Market Leader 312.224.3124 IL RE LIC #471020937

19 BIMBO BAKERIES USA: SPRINGFIELD NMRK NET LEASE CAPITAL MARKETS