Flowers Foods

OFFERING MEMORANDUM

Flowers Foods

3758 Post Rd, Cumming, GA 30040 ™ ™

Exclusively Listed By Kyler Bean Johnny Dunn National Industrial Specialist National Industrial Specialist

[email protected] [email protected] DIR (214) 692-2192 DIR (214) 692-2114 MOB (325) 227-0893 MOB (817) 372-1742 LIC # 646910 (TX) LIC # 677506 (TX)

Chad Kurz SVP & National Director Kyle Matthews [email protected] Broker of Record DIR (214) 692-2927 Lic # 67120 (GA) MOB (562) 480-2937 LIC # 01911198 (CA) ™ Investment Highlights

• Solid Commitment to Location - Flowers Foods recently extend their lease 10 years and has 8.7 years remaining with four (4), five (5) year options

• Increasing Cash Flow - Flowers Foods has a 3% rental increase due June 1, 2018, and thereafter annually.

• Landlord Improvements - Total rebuild done in 2005, all new bldg. insulation, sheeting, electrical, including panel and meter base, HVAC- which is a package unit, office build-out, dock doors and dock equipment.

• Very Functional Building - 16' Clear Height, 12,000 Sf with 16 docks on 1.7 Acres

• Tenant Responsibilities - Insurance, Real Estate Taxes, Utilities, Outside Driveway, Facility Maintenance, HVAC Maintenance

• Flowers Foods is the second-largest producer and marketer of packaged bakery foods, serving over 90% of the United States population with baked goods.

• Property is leased to Flowers Baking CO. of Villa Rica, LLC, a wholly owned subsidiary of Flowers Foods Inc.

• Flowers Foods operates over 47 bakeries in 16 states, producing freshly baked products for some of the top brands including Hostess, Natures Own, White Wheat, Bunny Bread, Sunbeam, Wonder Bread, Tasty Kakes, Mary Jane, Holsum, Hattie’s, and more.

03 04 Financial Overview Address 3758 Post Rd Cumming, GA

Listing Price Annualized Operating Data $1,678,321 Monthly Rent Annual Rent Rent/SF Cap Rate Current - 5/31/2018 $9,862.94 $118,355.28 $9.86 7.05% 6/1/2018 - 5/31/2019 $10,158.83 $121,905.94 $10.16 7.26% 6/1/2019 - 5/31/2020 $10,463.59 $125,563.12 $10.46 7.48% Cap Rate 6/1/2020 - 5/31/2021 $10,777.50 $129,330.01 $10.78 7.71% 7.05% 6/1/2021 - 5/31/2022 $11,100.83 $133,209.91 $11.10 7.94% 6/1/2022 - 5/31/2023 $11,433.85 $137,206.21 $11.43 8.18% 6/1/2023 - 5/31/2024 $11,776.87 $141,322.39 $11.78 8.42% 6/1/2024 - 5/31/2025 $12,130.17 $145,562.07 $12.13 8.67% 6/1/2025 - 5/31/2026 $12,494.08 $149,928.93 $12.49 8.93% GLA Tenant Summary ± 12,000 SF

Tenant Trade Name Flowers Foods Type of Ownership Fee Simple Lease Type NN+ Roof and Structure Landlord Responsible Original Lease Term 10 Years Lot Size Rent Commencement Date June 1, 2016 ± 1.70 SF Lease Expiration Date May 31, 2026 Term Remaining on Lease ± 8.7 Year Increases 3% Annually Options Four, 5-Year Options Year Built/Renovated 1982/2005 0705 06 Tenant Overview Property Name Flowers Foods Property Type Net Leased Distribution Center Parent Company Trade Name Flowers Foods, Inc. (NYSE: FLO) Ownership Public Credit Rating (S&P) BBB- Revenue $3.77 B Net Income $189 M No. of Locations ± 46 No. of Employees ± 10,900 Headquartered Thomasville, Georgia Website www.flowersfoods.com Year Founded 1919

TENANT OVERVIEW As one of the largest wholesale bakeries in the US, Flowers Foods’ flour products business is booming. Flowers Foods bakes, markets and distributes fresh breads, buns, rolls, corn and flour tortillas, and sweet bakery goodies to retail food and food-service customers in the western, southern and northeastern US. The company’s brand names include Cobblestone Mill, Nature’s Own, Tastykake and Whitewheat. Flowers Foods makes snack cakes, pastries, donuts and frozen bread products for retail, vending and co-pack customers nationwide. It also rolls out hamburger buns for national fast-food chains. Flowers Foods bought several bread brands, including Wonder and about 20 bakeries from Hostess Brands. GEOGRAPHIC OUTREACH Flowers Foods operates in 18 states in US Southeast, Mid-Atlantic, New England, Southwest, California and select markets in Nevada, the Midwest, and the Pacific Northwest. STRATEGY The company focuses on developing new and core markets through new customers, new products, strong brands, and acquisitions. From its stronghold in the Southeast, Flowers Foods has been expanding its retail and wholesale reach, moving north and west Flowers Foods in 2014 opened the Knoxville, Tennessee plant that was acquired as a part of the Hostess Brands deal in 2013. Acquisitive Flowers Foods purchases other businesses to grow and enter new markets. The company has completed more than 100 acquisitions during the past 40 years. SALES & MARKETING As a leading US baker, the company’s products are available to consumers through traditional supermarkets and their in-store deli/bakeries, food service distributors, convenience stores, mass merchandisers, club stores, wholesalers, casual dining and quick-serve restaurants, schools, hospitals, dollar stores and vending machines. Flowers Foods’ direct-store-delivery system is comprised of 5,100 independent distributors who own the rights to distribute certain brands of the company’s fresh packaged bakery foods in their geographic territories. Also, Flowers Foods has about 600 company-owned distributors and distributorships available for sale. The warehouse segment’s fresh snack cakes and frozen breads and rolls are sold nationally direct to customers’ warehouses by frozen and non-frozen contract carriers. 07 The Offering

Assessor’s Parcel Number GLA Lot Size 032 006 ± 12,000 SF ± 1.70 Acres (74,052 SF)

Oceanside Blvd ± 31,792 College Blvd ± 40,116 ± Blvd College

08 Surrounding Tenants Traffic Counts > Canton Hwy ± 20,000 ADT

Forsyth Cedar Durham & Joey’s Auto Runt’s County Fire Mountain Loletta’s Taylor Sales Place Station #4 Furniture Antique Supply Integrity Tri-County Wheelco Keystone Ducktown Mastec Outback Horse Animal Slitting Milworks School Tractors Clothing Corporation Hospital

Cumming Landscape Supply A1 Heritage Pursuit of Happiness Landscape Fishing Guide Supply Service Subject Property CUMMING, GA Demographics

Cumming, GA is a town in Forsyth County, an hour from Atlanta. Population 1 Mile 3 Mile 5 Mile It has recently experienced new growth since a new highway 2022 Projection 4,574 27,909 71,519 provides residents easy access to the city. Many choose to 2017 Estimate 4,083 25,117 64,573 live in Cumming and commute to Atlanta. The town provides 2010 Census 2,908 19,658 52,104 an escape from the city life with great sceneries of nature. The Growth 2017-2022 12.03% 11.12% 10.76% highlight of Cumming is Sawnee Mountain Preserve. With 963 Households 1 Mile 3 Mile 5 Mile acres of hiking trails, a tree canopy classroom, climbing area’s, 2022 Projection 1,586 9,341 23,810 and an amphitheater, there is always something to explore. There are also great places to fish, boat, and camp along Lake Sidney 2017 Estimate 1,410 8,416 21,583 Lanier. With countless activities and an active, friendly community, Growth 2017-2022 12.48% 10.99% 10.32% Cumming is growing into a great area to live. Income 1 Mile 3 Mile 5 Mile 2017 Est. Average $95,557 $106,013 $111,207 Household Income

10 Area Overview

ATLANTA, GA 440,641 Atlanta is Georgia’s capital and most populous city, as well as the economic and cultural hub of the Atlanta metropolitan area. Atlanta is a rapidly growing Population city, and its metropolitan area exceeded 5.5 million for the first time in 2013. While the area’s growth is not as high as it was in the 1990’s and early 2000s, 33.3 it’s higher than the previous year and this growth is expected to continue as Atlanta attracts new people. It’s projected that metro Atlanta’s population will Median Age reach about 5.7 million by 2020. $46,439 Median Household Income ECONOMY Atlanta’s economy is considered diverse, with dominant sectors including logistics, professional and business services, media operations, and information technology. Corporate operations comprise a large portion of Atlanta’s economy, with the city serving as the regional, national, or global headquarters for many corporations. Atlanta contains the country’s third largest concentration of Fortune 500 companies and the city is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations. Many corporations are drawn to Atlanta on account of the city’s educated workforce; as of 2010, nearly 43% of adults in the city of Atlanta have college degrees, compared to 27% in the nation as a whole.

TOP EMPLOYERS

13 TOURISM Atlanta is one of the most visited cities in America, with over 37 million visitors per year. In 2015 alone, the tourism industry generated $58.9 billion in business sales. Although the most popular attraction among visitors to Atlanta is the Georgia Aquarium, the world’s largest indoor aquarium, Atlanta’s tourism industry mostly driven by the city’s history museums and outdoor attractions.

SPORTS It is home to three professional sports franchises: the Atlanta Braves (Major League Baseball), the Atlanta Hawks (National Basketball Association), and the Atlanta Falcons (National Football League). All teams have made their city proud and have become national champions. The residents of Atlanta and surrounding cities have become a devoted fan base to their teams and have some of the best crowd atmospheres.

ACTIVITIES Atlanta also contains various outdoor attractions. The At- lanta Botanical Garden, adjacent to Piedmont Park, is home to the 600-foot-long Kendeda Canopy Walk, a skywalk that allows visitors to tour one of the city’s last remaining ur- ban forests from 40-foot-high. The Canopy Walk is considered the only canopy-level pathway of its kind in the United States. Zoo Atlanta, located in Grant Park, accommodates over 1,300 animals representing more than 220 species. Home to the nation’s largest collections of gorillas and orangutans, the Zoo is also one of only four zoos in the U.S. to house giant pandas. Festivals showcasing arts and crafts, film, and music, including the Atlanta Dogwood Festival, the Atlanta Film Festival, and Music Midtown, respectively, are also popular with tourists. 14 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Flowers Foods located at 3758 Post Rd, Cumming, GA 30040 (“Property”). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Exclusively Listed By Kyler Bean National Industrial Specialist

[email protected] DIR (214) 692-2192 MOB (325) 227-0893 LIC # 646910 (TX) Flowers Foods Johnny Dunn National Industrial Specialist

[email protected] 3758 Post Rd, Cumming, GA 30040 DIR (214) 692-2114 MOB (817) 372-1742 LIC # 677506 (TX)

Chad Kurz SVP & National Director

[email protected] DIR (214) 692-2927 MOB (562) 480-2937 LIC # 01911198 (CA)

Kyle Matthews Broker of Record Lic # 67120 (GA)

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