Panera Bread Company 1310 North SH 77

Waxahachie, Texas 75165

This Confidential Offering Memorandum (the “Memorandum”) has been prepared and presented to the recipient (the “Recipient”) by Belco Development & Investments, Inc. as part of Belco’s efforts to market property for sale and the material contained in it to the Recipient solely to assist the Recipient in determining whether the Recipient is interested in potentially purchasing all or part of the Property. Belco Development & Investments, Inc. also is providing this Memorandum and the material in it to the Recipient with the understanding that the Recipient will independently investigate those matters that it deems necessary and appropriate to evaluate the Property and that the Recipient will rely only on its own Investigation, and not on Belco, the Owner or this Memorandum, in determining whether to purchase the Property. Please Note the Following: Belco Development & Investments, Inc., the Owner and their respective agents, employees, representatives, property managers, officers, directors, shareholders, members, managers, partners or controlling entities, subsidiaries, affiliates, assigns and predecessors and successors-in-interest make no representations or warranties about the accuracy, correctness or completeness of the information contained in this Memorandum. The Recipient is urged not to rely on the information contained in this Memorandum and to make an independent investigation of all matters relating to the property. This Memorandum includes statements and estimates provided by or to Belco and/or the Owner regarding the Property. Those statements and estimates may or may not be accurate, correct or complete. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates. Further, nothing contained in this Memorandum should be construed as representation or warranty about any aspect of the Property, including, without limitation, the Property’s (1) past, current or future performance, income, uses or occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance or non-compliance with any permit, license, law, regulation, rule, guideline or ordinance, or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the Recipient is urged not to rely on this Memorandum and the statements and estimates in it and to make an independent investigation regarding the Property and the statements and estimates contained herein. This Memorandum may include statements regarding, references to, or summaries of, the nature, scope or content of contracts and/or other documents relating to the Property. Those statements, references or summaries may or may not be accurate, correct or complete. Additionally, Belco may not have referenced or included summaries of each and every contract and/or other document that the Recipient might determine is relevant to its evaluation of the Property. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements, representations or summaries. On request and as available, and subject to the Owner’s consent, Belco will provide the Recipient with copies of all referenced contracts and other documents. Belco Development & Investments, Inc. assumes no obligation to supplement or modify the information contained in this Memorandum to reflect events or conditions occurring on or after the date of its preparation of this Memorandum. More detailed information regarding the anticipated terms, conditions and timing of any offering by the Owner relating to the Property will be provided in due course by separate communication. Belco and/or the Owner reserve the right to engage at any time in discussions or negotiations with one or more recipients of this Memorandum and/or other prospective purchasers of the Property without notice to the other.

DISCLAIMER

Offered By: Belco Development & Investments

Adam Farmer 951 764-3744

belco2@verizon.net

Panera Bread Company 1310 North SH 77

Waxahachie, Texas 75165

These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Belco Development & Investments, Inc. or its personnel, and all interested parties must independently verify its accuracy and completeness.

Adam Farmer P. (951) 696-2727 F. (951) 696-1313 belco2@verizon.net #01370795 26856 Adams Ave Suite 200 Murrieta, CA 92562

INVESTMENT HIGHLIGHTS

• New 15 Year Lease with

Panera LLC • Fee Simple Deal (land &

building) • Panera Bread is

currently one of the Fasting Growing Chains in the Country

• The Site is Surrounded

by National Tenants such as Home Depot, Target, Lowes, Belk, Best Buy and many others

• Panera Located close to

High School (1,800 Stu-dents and Baylor Scott & White Medical Center (244 Beds)

• Waxahachie only 31

Miles from Dallas, TX • 5 Mile Population

40,072 / Income $75,575

Panera Bread 1310 North SH 77 Waxahachie, Texas 75165 List Price: $3,662,211 CAP: 4.25% Base Rent: $155,644 Building S.F. 4,324 Lease Type: (NN) Landlord Responsibilities: *Roof & Structure* ( 20 year Roof Warrantee in place Lease Term: 15 Years Parcel Size: 1.20 Acres (52,272 sf+/-) Options: Three (5) Year Year Built: 2018 Traffic Counts: 27,000 VPD Hwy 77 & 43,000 VPD Hwy 287 * 20 year roof warrantee in place. After 15th lease year roof becomes Tenant’s responsibility

Panera Bread Company

Tenant Overview The Panera Bread legacy began in 1981 as Au Bon Pain Co., Inc. Founded by Louis Kane and Ron Shaich, the company prospered along the East Coast and internationally throughout the 1980s and 1990s and became the dominant operator within the bakery-cafe category. In 1993, Au Bon Pain Co., Inc. purchased Saint Louis Bread Company, a chain of 20 bakery-cafes located in the St. Louis area. The company then managed a comprehensive re-staging of Saint Louis Bread Co. Between 1993 and 1997 average unit volumes increased by 75%. Ultimately, the concept’s name was changed to Panera Bread. In 2007, Panera Bread purchased a majority stake in Paradise Bakery & Café, a Phoenix-based concept with over 70 locations in 10 states; the company purchased the balance of Paradise in June 2009.

Today, Panera Bread is focused on improving quality and convenience. With investments in technology and operations, they now offer mobile ordering and Rapid PickUp for to-go orders. Additionally, the company expects to add more than 10,000 new in-cafe and delivery driver jobs system-wide by the end of 2017 as it expands delivery service to 35-40 percent of its cafes by year-end. The new digital and mobile ordering-based service, Panera Delivery, will provide lunch and dinner to offices, hospitals, campuses and homes, typically within an eight-minute drive of a Panera bakery-cafe. Through a new order tracking system, customers will be able to see expected arrival time, follow the delivery’s progress on a map, see a picture of their driver, and receive a notification when the driver is arriving.

As of December 27, 2016, there were 2,036 bakery-cafes in 46 states and Ontario, Canada operating under the Panera Bread, Saint Louis Bread Co. or Paradise Bakery & Café names. Panera boasted $2.8 billion in revenues and $145 million net income for the fiscal year 2016. Panera pre-released Q1 2017 results — company-owned bakery-cafe comps were up 5.3 percent, which is 690 bps better than the Black Box all-industry composite.

This information is compiled from data that we believe to be correct but, no liability is assumed by this company as to accuracy of such data

Lease Abstract:

Roof: Landlord during initial term, Tenant during any extension periods Structure: Landlord during initial term, Tenant during any extension periods HVAC: Tenant Taxes: Tenant Insurance: Tenant; Landlord to maintain CGL insurance, Tenant to pay PRS as part of CAM Parking Lot: Tenant CAM: Tenant to pay PRS, subject to reconciliation. Increase in CAM capped at 5% over previous year.

Lease Commencement Date: May 1, 2018 Lease Expiration Date: December 31, 2033 Current Rent: $155,644 Options: 3 (5) Year

Rent Schedule: Years Annual Rent RPSF Increase% 1-5 $155,644.00 $36.00 6-10 $171,230.40 $39.60 10% 11-15 $188,353.44 $43.56 10% 1st Option 16-20 $207,206.08 $47.92 10% 2nd Option 21-25 $227,918.04 $52.71 10% 3rd Option 26-30 $250,705.52 $57.98 10%

Walgreens Pharmacy 2551 W. Main Street Alhambra, CA 91801

This information is compiled from data that we believe to be correct but, no liability is assumed by this company as to accuracy of such data

Panera Bread Company 1310 North SH 77

Waxahachie, Texas 75165

SITE Subject offering consist of a brand new 4,324 sf Panera Bread Restaurant, on 1.20 acre parcel leased to Panera, LLC., who will operate under a new Fifteen (15) year agreement with Three (3), Five (5) year options. The lease features 10% rental increases every Five (5) years throughout the primary term and options. The Landlord is responsible for Roof & Structure during the primary term of the lease with the tenant taking over responsibility during any extension periods. The tenant is responsible its for Taxes, Insurance, HVAC and CAM. The Property is located near the intersection of Highway 287 (43,000 VPD) and Dallas Highway (27,000). Site is surrounded by other national tenants such as Home Depot, Target, Lowe’s, Belk, TJ-Maxx, Ross, Walmart, H-E-B, Hobby Lobby, ULTA, Holiday Inn, Comfort Inn, Best Western, Discount Tire, JCP, Office Depot, Tractor Supply, BBVA, Wells Fargo, Big Lots, Taco Bell, Firestone and many more. Other nearby traffic drivers include Waxahachie High School (1,985 Students) and Baylor Scott & White Medical Center (244 Beds). The Property benefits from a population of over 40,000 and an average household income greater than $75,000 annually within 5 miles. Panera Bread is currently one of the fastest-growing chains in the country and a highly coveted tenant in the net lease market. Panera Bread has reported year-over-year growth for the past three years and opened its 2,000th location in March of 2016. In July of 2017 JAB Holdings Company completed its acquisition of Panera Bread for $7.5 billion.

Lease Commencement Date: May 1, 2018 Lease Expiration Date: December 31, 2033 Current Rent: $155,644 Options: 3 (5) Year

Population 1 Mile 3 Mile 5 Mile 10 Mile 10,582 30,070 40,075 93,234 Income 1 Mile 3 Mile 5 Mile $69,047 $68,827 $75,575 Household Growth 2018-2022 1 Mile 3 Mile 5 Mile 2.26% 0.94% 0.97% Population Growth 2018-2022 1 Mile 3 Mile 5 Mile 0.71% 1.73% 1.85%

LOCATION

Waxahachie is the county seat of Ellis County, Texas, and a southern suburb of Dallas with an estimated population of 34,345 in 2016. Waxahachie is locally known for its elaborate Richardsonian Romanesque courthouse, considered by many to be among the most beautiful of Texas’s older courthouses. The town also features many examples of Victorian architecture and Gingerbread homes, several of which have been converted into bed and breakfasts. The City of Dallas is a major city in North Texas and, with Fort Worth, makes up the fourth most populous metropolitan area in the United States. Dallas is the ninth most populated city in the US and the third in Texas after Houston and San Antonio. The bulk of the city is in Dallas County, of which it is the county seat, while sections of the city are in Collin, Denton, Kaufman, and Rockwall counties. Dallas, along with the rest of Texas, has seen increasing population. According to the 2010 United States Census, Dallas had a population of 1,197,816 which increased to 1,341,075 as of 2016. The Dallas metropolitan area is home to five major league sports teams: the Dallas Cowboys (NFL), Dallas Mavericks (NBA), Texas Rangers (MLB), Dallas Stars (NHL), and FC Dallas (MLS). Dallas is a center of education for much of the south central United States. In addition to those located in the city, the surrounding area also contains a number of universities, colleges, trade schools, and other educational institution including 337 public schools, 89 private schools, 38 colleges, and 32 libraries

HIGHLIGHTS

• Waxahachie is Located 31 Miles South from Dallas, TX (population in excess of 1,341,075) • Corporate Guarantee from Panera Bread Company / Brand New 4,324 sf building on 1.2 acre out-parcel to

Target and Lowes

• New 15 Year base term lease with 3 (5) year options / 10% rental Increase every 5 Years

• Panera Bread is currently one of the fastest-growing chains in the country and a highly coveted tenant in the net lease market. Panera Bread has reported year-over-year growth for the past three years and opened its 2,000th location in March of 2016.

• Heavily traveled Intersection / Traffic counts 27,000 VPD Hwy 77 & 43,000 VPD Hwy 287

• Panera is located close to Waxahachie High School (1,985 Students) and Baylor Scott & White Medical Center (244 Beds)

• 5 Mile Population 40,072 / Income $75,575

• Site is surrounded by National Tenants such as Home Depot, Target, Lowe’s, Belk, TJ-Maxx, Ross, Walmart, H-E-B, Hobby Lobby, ULTA, Holiday Inn, Comfort Inn, Best Western and more

Panera Bread Company 1310 North SH 77

Waxahachie, Texas 75165

These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Belco Development & Investments, Inc. or its personnel, and all interested parties must independently verify its accuracy and completeness.

Drone Video

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https://youtu.be/ndEfUye4cyE

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This information is compiled from data that we believe to be correct but, no liability is assumed by this company as to accuracy of such data

Site Photos

Site Photos 1310 North SH 77

Waxahachie, Texas 75165

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Waxahachie, TX 31 Miles From Dallas TX

Dayton

Xenia

• Waxahachie is Located 31 Miles South from Dallas, TX (population in excess of 1,341,075) • Corporate Guarantee from Panera Bread Company / Brand New 4,324 sf building on 1.2 acre out-

parcel to Target and Lowes

• New 15 Year base term lease with 3 (5) year options / 10% rental Increase every 5 Years

• Panera Bread is currently one of the fastest-growing chains in the country and a highly coveted tenant in the net lease market. Panera Bread has reported year-over-year growth for the past three years and opened its 2,000th location in March of 2016.

Waxahachie

Dallas