PANERA BREAD 15-Year Sale Leaseback OPENING FALL 2017!

1601 Damron Court Representative Photo Effingham, IL 62401

OFFERING MEMORANDUM Exclusive Net Lease Offering INVESTMENT HIGHLIGHTS

LOCATION LEASE TENANT

✓ Dense Retail Corridor | Surrounding ✓ Brand New Construction; Sale Leaseback ✓ Panera has been one of the most Tenants Include: Walmart, Kohl’s, successful restaurant companies in ✓ Long-Term, 15-Year Absolute Triple Net Menard’s, Aldi, K-Mart, Buffalo Wild history (NNN) Lease Wing’s ✓ Panera is the best-performing restaurant ✓ Lease Commencement Upon Close of ✓ Brand New Construction stock when measures over the last 20 Escrow years, delivering a total shareholder ✓ Conveniently Located | Access to Two ✓ Eight Percent (8.0%) Rental Increases return of 9,753% from April 18, 1997 to Major Thoroughfares | Interstate 57 & very Five (5) Years April 24, 2017, compared to 210% for the Interstate 70 S&P 500 during the same time period ✓ Four (4), Five (5)-Year Tenant Renewal ✓ Strong Traffic Counts | Located off of Options ✓ Named “Sales Leader” by Nation’s North Keller Drive | Average Traffic Restaurant News in the Bakery-Café Counts of 25,100 Vehicles Per Day ✓ Corporate Location Group – June 2017 ✓ HSHS St. Anthony’s Memorial Hospital | ✓ Pioneer in Advanced Technology – Driver 133-Bed Acute Care Facility | Located of Ongoing Sales Growth and Improved One Mile and a Half from Subject Delivery-Catering Initiatives Property ✓ Recently acquired by JAB Holdings, a European conglomerate that owns , , Peet’s , among Representative Photo other assets; positioning the chain for continued growth and long-term returns

1601 Damron Court | Effingham, IL 62401 Financial Analysis ✓ PRICE $2,683,745 ✓ CAP 4.75% ✓ RENT $127,477

PROPERTY DESCRIPTION ANNUALIZED OPERATING DATA Property Annual Rent $127,477 Property Address 1601 Damron Court Monthly Rent $10,623.08 City, State, ZIP Effingham, IL 62401 Rent / SF $30.45 Estimated Completion Date Fall 2017 Building Size 4,187 SF RENT SCHEDULE Lot Size +/- 1.3 Acres Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) Type of Ownership Fee Simple Years 1 - 5 $127,477 $10,623.08 - THE OFFERING Years 6 - 10 $137,675 $11,472.93 8.0% Initial Annual Rent $127,477 Years 11 - 15 $148,689 $12,390.76 8.0% CAP Rate 4.75% Option 1: Years 16 - 20 $160,584 $13,382.03 8.0% Purchase Price $2,683,745 Option 2: Years 21 - 25 $173,431 $14,452.59 8.0% Price / SF $640.97 Option 3: Years 26 - 30 $187,306 $15,608.79 8.0% Rent / SF $30.45 Option 4: Years 31 - 35 $202,290 $16,857.50 8.0% LEASE SUMMARY Property Type Net Leased Casual Dining Restaurant Tenant Panera LLC Tenant Ownership Private Original Lease Term 15 Years Lease Commencement Upon Close of Escrow Lease Expiration 15 Years from Close of Escrow Lease Term Remaining 15 Years Lease Type Absolute Triple Net (NNN) Roof & Structure Tenant Responsible Rental Increases 8.0% every Five (5) Years Options to Renew Four (4) Periods of Five (5) Years, Each Option Periods

3 Panera Bread Sale Leaseback Tenant Overview: Panera Bread

General Information

Address St. Louis

Website http://www.panerabread.com

Concentration 46 States and in Ontario, Canada

Panera Bread(R), Saint Louis Bread Co. (R) or Paradise Operating Entities Bakery & Cafe(R) names

About Panera Thirty years ago, at a time when quick service meant low quality, Panera set out to challenge this expectation. We believed that food that was good and that you could feel good about, served in a warm and welcoming environment by people who cared, could bring out the best in all of us. To us, that is food as it should be and that is why we exist.

So we began with a simple commitment: to bake fresh bread every day in our bakery-cafes. No short cuts, just bakers with simple ingredients and hot ovens. Each night, any unsold bread and baked goods were shared with neighbors in need.

These traditions carry on today, as we have continued to find ways to be an ally to our About JAB guests. That means crafting a menu of soups, salads and sandwiches that we are proud to feed our families. Like poultry and pork raised without antibiotics on our salads and JAB and JAB Consumer Fund invest in companies with premium brands, sandwiches. A commitment to transparency and options that empower our guests to eat the attractive growth and strong margin dynamics in the Consumer Goods category. Both JAB Holding way they want. Seasonal flavors and whole grains. And a commitment to removing artificial Company and JAB Consumer Fund are overseen by its three Senior Partners, Peter Harf, Bart additives (flavors, sweeteners, preservatives and colors from artificial sources) from the food Becht (Chairman) and Olivier Goudet (CEO). JAB actively manages and controls most of its in our bakery-cafes. Why? Because we think that simpler is better and we believe in serving investments and operates offices in Europe and the US (Luxembourg, London, Mannheim, food as it should be. Because when you don't have to compromise to eat well, all that is left Washington DC). JAB has a solid investment grade credit rating (Baa1 at Moody’s with stable is the joy of eating. outlook and BBB+ at S&P with stable outlook)

We're also focused on improving quality and convenience. With investments in technology Together, JAB Holding Company and JAB Consumer Fund have controlling stakes in Keurig and operations, we now offer new ways to enjoy your Panera favorites -- like mobile Green Mountain, a leader in single-serve coffee and beverage technologies, Jacobs Douwe ordering and Rapid PickUp for to-go orders -- all designed to make things easier for our Egberts (JDE), the largest pure-play FMCG coffee company in the world, Peet's Coffee & Tea, a guests. As of June 27, 2017, there were 2,043 bakery-cafes in 46 states and in Ontario, premier specialty coffee and tea company, Company, a specialty retailer of high- Canada operating under the Panera Bread(R), Saint Louis Bread Co. (R) or Paradise quality premium coffee products, Einstein Noah Restaurant Group, Inc., a leading company in the Bakery & Cafe(R) names. quick-casual segment of the restaurant industry, Krispy Kreme Doughnuts, a global specialty retailer and wholesaler of premium-quality sweet treats, and in Espresso House, the largest For more information, visit panerabread.com or find us on Twitter (@panerabread), branded coffee shop chain in Scandinavia. Facebook (facebook.com/panerabread) or Instagram (@panerabread). For more information about JAB investments, please visit the company's website at: http://www.jabholco.com. 4 Panera Bread Sale Leaseback Location Overview

SURROUNDING RETAIL & POINTS OF INTEREST The subject property benefits from being well-positioned in a highly dense retail corridor consisting of national and local tenants, shopping centers, and hotels all within close proximity of this Panera Bread. Major national and local retailers in the area include: Walmart, Kohl’s, Menard’s, Aldi, K-Mart, as well as many others. Effingham is home to 17 hotels and over 65 restaurants. Hotel accommodations in the immediate area of the subject property include: Holiday Inn, Fairfield Inn & Suites, Hampton Inn & Suites, Days Inn, La Quinta Inn & ADTC: 25,100 Suites, and more.

HSHS St. Anthony’s Memorial Hospital; a 133-bed acute care facility, has employs over 700 individuals and is one and one-half miles from the subject café. Additionally, St. Anthony’s High School and Effingham High School are both located within two miles of the property; which have a combined enrollment of approximately 1,000 students.

TRAFFIC COUNTS & DEMOGRAPHICS There are more than 14,000 individuals residing within a three-mile radius of the property and more than 18,000 individuals within a five-mile radius. The subject property is located off of North Keller Drive which experiences an average traffic volume of over 25,000 vehicles, daily. The subject property is positioned within close proximity to Interstate 57, a major thoroughfare in Missouri and Illinois that essentially serves as a shortcut route for travelers headed between the south (Memphis, New Orleans, etc.) and Chicago, bypassing St. Louis, Missouri. Interstate 57 experiences an average daily traffic count of over 35,700 vehicles at the confluence in which this Panera Bread is located.

MARKET OVERVIEW Effingham is one of the northernmost cities in southern Illinois. The City bills itself as “The Crossroads of Opportunity” because of its location at the intersection of two major interstates: Interstate 57 and Interstate 70, which runs expands from Utah to Maryland. Effingham's unique location and transportation system has been a driving force for several industrial and commercial companies ADTC: 35,700 to nestle within Effingham’s business parks and retail areas. In fact, the City's daytime population doubles because of this vast amount of development. 5 Panera Bread Sale Leaseback Surrounding Area

6 Panera Bread Sale Leaseback SUBJECT PROPERTY Surrounding Area

A Effingham Performance Center Lodging in Effingham National, regional and local performers take the 1. Abe Lincoln Motel stage at the Effingham Performance Center. The 2. America’s Best Value Inn EPC, a not-for-profit theater, hosts a wide variety of 3. Best Western programs each year. The theater seats 1,523 4. Camp Lakewood people. Outstanding sight lines, comfortable 5. Comfort Suites legroom and acoustic excellence, as well as 6. Country Inn & Suites concessions and a bar, make the EPC a desirable 7. Days Inn B venue to enjoy a live performance. There are even 8. Econolodge large screens on each side of the stage and a state 9. Effingham Motel of-the-art projection system to enhance the special 10. Fairfield Inn & Suites moments of each performance. More than 30 11. Hampton Inn & Suites performances are presented each year, including 12. Holiday Inn 13. La Quinta Inn & Suites Country, Rock, Contemporary, Comedy, Dance, A Bluegrass, family events and more. Some nationally 14. Lexington Inn & Suites recognized performers who have already taken the 15. Martin Ranch Bed & Breakfast stage at the theater include Vince Gill, Art Garfunkel, 16. Paradise Inn Bill Engvall, Vince Neil and Switchback. Complete 17. Quality Inn show information and a list of upcoming events can 18. Raintree Inn be found on the Effingham Performance Center 19. Super 8 website. B Thelma Keller Convention Center “One of Downstate’s only conference centers that accommodates groups of 1,500 or more with a connecting hotel!”

These fabulous amenities are all on property: • Convention facilities for groups from 10 to 1,500 • 10,500-square-foot ballroom accommodates 1,500 • 13 breakout rooms for 85 people each • Highly praised banquet facilities, expos and trade shows • 32-lane bowling alley and lounge, and shopping

7 Panera Bread Sale Leaseback Regional Map

8 Panera Bread Sale Leaseback SUBJECT PROPERTY 8 State Map

9 Panera Bread Sale Leaseback SUBJECT PROPERTY Demographics

DEMOGRAPHICS Population 1 Mile 3 Miles 5 Miles 14,192 18,477 28,783 Patterson Technology 2021 Projection 2016 Estimate 14,159 18,350 28,446 2010 Census 14,188 18,336 28,373 2000 Census 14,216 18,341 28,297 Income Average $67,598 $69,582 $69,815 Median $51,438 $53,838 $55,970 Per Capita $28,838 $29,114 $27,805 Households 2021 Projection 6,010 7,696 11,437 2016 Estimate 5,971 7,609 11,258 2010 Census 5,993 7,610 11,232 2000 Census 5,919 7,420 10,792 Employment 2016 Daytime Population 23,951 26,976 34,244 St. Anthony Hospital 2016 Unemployment 6.23% 5.98% 5.39% 2016 Median Time Traveled 16 Mins 17 Mins 18 Mins

10 Panera Bread Sale Leaseback Confidentiality and Disclaimer

Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a diligence investigation. Marcus & Millichap has not made purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for any investigation, and makes no warranty or some properties, including newly-constructed facilities or representation, with respect to the income or expenses for The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s the subject property, the future projected financial been obtained from sources we believe to be reliable. projected sales with little or no record of actual performance of the property, the size and square footage However, Marcus & Millichap has not and will not verify performance, or comparable rents for the area. Returns are of the property and improvements, the presence or any of this information, nor has Marcus & Millichap not guaranteed; the tenant and any guarantors may fail to absence of contaminating substances, PCB’s or asbestos, conducted any investigation regarding these matters. pay the lease rent or property taxes, or may fail to comply the compliance with State and Federal regulations, the Marcus & Millichap makes no guarantee, warranty or with other material terms of the lease; cash flow may be physical condition of the improvements thereon, or the representation whatsoever about the accuracy or interrupted in part or in whole due to market, economic, financial condition or business prospects of any tenant, or completeness of any information provided. environmental or other conditions. Regardless of tenant any tenant’s plans or intentions to continue its occupancy history and lease guarantees, Buyer is responsible for of the subject property. The information contained in this As the Buyer of a net leased property, it is the Buyer’s conducting his/her own investigation of all matters Marketing Brochure has been obtained from sources we responsibility to independently confirm the accuracy and affecting the intrinsic value of the property and the value of believe to be reliable; however, Marcus & Millichap has not completeness of all material information before completing any long-term lease, including the likelihood of locating a verified, and will not verify, any of the information any purchase. This Marketing Brochure is not a substitute replacement tenant if the current tenant should default or contained herein, nor has Marcus & Millichap conducted for your thorough due diligence investigation of this abandon the property, and the lease terms that Buyer may any investigation regarding these matters and makes no investment opportunity. Marcus & Millichap expressly be able to negotiate with a potential replacement tenant warranty or representation whatsoever regarding the denies any obligation to conduct a due diligence considering the location of the property, and Buyer’s legal accuracy or completeness of the information provided. All examination of this Property for Buyer. ability to make alternate use of the property. potential buyers must take appropriate measures to verify all of the information set forth herein. Any projections, opinions, assumptions or estimates used in By accepting this Marketing Brochure you agree to release this Marketing Brochure are for example only and do not Marcus & Millichap Real Estate Investment Services and NON-ENDORSEMENT NOTICE represent the current or future performance of this hold it harmless from any kind of claim, cost, expense, or property. The value of a net leased property to you liability arising out of your investigation and/or purchase of Marcus & Millichap Real Estate Investment Services, Inc. depends on factors that should be evaluated by you and this net leased property. (“M&M”) is not affiliated with, sponsored by, or endorsed your tax, financial and legal advisors. by any commercial tenant or lessee identified in this CONFIDENTIALITY AND DISCLAIMER marketing package. The presence of any corporation’s logo Buyer and Buyer’s tax, financial, legal, and construction or name is not intended to indicate or imply affiliation with, advisors should conduct a careful, independent The information contained in the following Marketing or sponsorship or endorsement by, said corporation of investigation of any net leased property to determine to Brochure is proprietary and strictly confidential. It is M&M, its affiliates or subsidiaries, or any agent, product, your satisfaction with the suitability of the property for intended to be reviewed only by the party receiving it from service, or commercial listing of M&M, and is solely your needs. Marcus & Millichap and should not be made available to included for the purpose of providing tenant lessee any other person or entity without the written consent of information about this listing to prospective customers. Like all real estate investments, this investment carries Marcus & Millichap. This Marketing Brochure has been significant risks. Buyer and Buyer’s legal and financial prepared to provide summary, unverified information to ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. advisors must request and carefully review all legal and prospective purchasers, and to establish only a preliminary PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR financial documents related to the property and tenant. level of interest in the subject property. The information MORE DETAILS. While the tenant’s past performance at this or other contained herein is not a substitute for a thorough due EXCLUSIVE NET LEASE OFFERING

IL BROKER OF RECORD: Steven Weinstock Marcus & Millichap OAK BROOK Oak Brook Terrace, IL 60181 Tel: (630)570-2250 License: 471.011175

1601 Damron Court | Effingham, IL 62401