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 Grupo Bimbo (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 – Mexico’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 Texas, 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 United States. 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.