OFFERING MEMORANDUM FLOWERS BAKERY

CAPITAL MARKETS

FLOWERS BAKERY8251 Warren H Abernathy Highway, Spartanburg, South Carolina 29301

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CBRE CAPITAL MARKETS 2

INVESTMENT OVERVIEW

ADDRESS8251 Warren H Abernathy Hwy, Spartanburg, SC 29301

NOI $138,000

PRICE $1,900,000

CAP RATE 7.25%

TERM REMAINING ±7.2 Years

LEASE TYPE Absolute NNN

BUILDING SIZE 8,100 SF

PARCEL SIZE 1.99 Acres

INVESTMENT SUMMARY

CBRE’s Net Lease Property Group is pleased to exclusively offer for sale the 8,100-square-foot

Flowers Bakery situated on 1.99 acres in Spartanburg, SC. The city is the second-largest in the

greater Greenville-Spartanburg-Anderson, SC Combined Statistical Area (CSA Population: 1.5

Million). Flowers Foods just agreed to an early extension of their net lease which now features

+/-7.2 years of term remaining with annual CPI rent escalations and one 5-year renewal option.

Flowers Bakery is strategically located with excellent access and visibility along Warren H

Abernathy Highway/U.S. Route 29 (Traffic Count: 26,600 VPD). In addition, the site is just

0.9 miles west of Interstate 26 (Traffic Count: 63,700 VPD) which enables Flowers Foods

to conveniently distribute its bakery products across the region.

Flowers Bakery benefits from its position along one of Spartanburg’s premier retail and

commercial corridors. The property sits immediately adjacent to Target, Dollar Tree, Anytime

Fitness, SportsClips, and NTB National Tire & Battery. Flowers Bakery is also positioned within

close proximity to some of Spartanburg’s most popular shopping centers and malls including

The Dorman Centre (388,276 SF) and Westgate Crossing (158,262 SF) which feature tenants

such as Home Depot, Walmart, TJ Maxx, Michaels, Ross, JOANN, Hamrick’s, Rack Room Shoes,

Big Air Trampoline Park, and Chuck E. Cheese, among others. Also, Westgate Mall sits 1.8

miles east of the site and boasts over 954,302 SF retail space, and is anchored by Costco,

Dick’s Sporting Goods, Bed Bath & Beyond, Dillard’s, and JCPenney. Additional retailers

proximate to the site include Ingles, Lidl, Sam’s Club, Hobby Lobby, Kohl’s, Big Lots, Advance

Auto Parts, Applebee’s, IHOP, Waffle House, Smoothie King, Taco Bell, and McDonald’s. Other

points of interest include Fairforest Middle School (948 Students), West View Elementary (785

Students), The Grove Apartments (183 Units), and Willis Road YMCA. In total, there are 5.1 MSF

of Retail, 13.6 MSF of industrial, and 4,542 multi-family units within a 3-mile radius.

The immediate area boasts a significant industrial presence. Teitex International’s 28-Acre

complex is 1.7 miles north of the site and employs up to 1,209 people. Tindall Corporation

operates its 165,000-square-foot headquarters 2.3 miles north of the site, which employs over

100 people in the local area.

Flowers Bakery is ideally surrounded by a dense concentration of residential with over 13,968

households within a 3-mile radius of the site, placing a substantial built-in customer base within

the vicinity. Flowers Bakery also benefits from dynamic demographics with a population of

35,951 and an average household income of $71,943 within a 3-mile radius of the site.

Demographics 3-Mile 5-Mile

Population 35,951 85,408

AHI $71,943 $64,721


INVESTMENT HIGHLIGHTS

Premier Tenant

Flowers Foods (NYSE: FLO) is the second-largest producer and marketer of packaged bakery foods in the United States. The company

operates 46 highly efficient bakeries that produce a wide range of bakery food for retail and food service customers in the U.S. Fresh

baked foods’ customers include mass merchandisers, supermarkets and other retailers, restaurants, quick-serve chains, food wholesalers,

institutions, dollar stores, and vending companies. In 2020, Flowers Foods generated $4.4 billion in sales and net income of $152 million. The

tenant under the lease is Flowers Baking Co, of Newton, LLC, a subsidiary of Flowers Foods, Inc.

Recently Extended Net Lease

Demonstrating their commitment to the location, Flowers Foods’ recently-extended net lease now features +/-7.2 years of term remaining

with annual CPI rent escalations and one 5-year renewal option.

Excellent Access & Visibility

Flowers Foods’ is strategically located with excellent access and visibility along Warren H Abernathy Highway/U.S. Route 29 (Traffic Count:

26,600 VPD). In addition, the site is just 0.9 miles west of Interstate 26 (Traffic Count: 63,700 VPD) which enables Flowers Foods to

conveniently distribute its bakery products across the region.

Hub for New Development

The immediate corridor along Warren H Abernathy Highway is experiencing tremendous growth as a result of several new multifamily

developments. Grand Oaks of Spartanburg, a three-phase housing development, recently started construction in 2020. The development

will have 696 apartments spanning 29 buildings. Next to the complex, Gibbs International is set to construct a retail/residential development

with a hotel, big box stores, and restaurants.

Dominant Retail & Commercial Corridor

Flowers Bakery benefits from its position along one of Spartanburg’s premier retail and commercial corridors. The property sits

immediately adjacent to Target, Dollar Tree, Anytime Fitness, SportsClips, and NTB National Tire & Battery. Flowers Bakery is also

positioned within close proximity to some of Spartanburg’s most popular shopping centers and malls including The Dorman Centre

(388,276 SF) and Westgate Crossing (158,262 SF) which feature tenants such as Home Depot, Walmart, TJ Maxx, Michaels, Ross, JOANN,

Hamrick’s, Rack Room Shoes, Big Air Trampoline Park, and Chuck E. Cheese among others. Also, Westgate Mall sits 1.8 miles east of

the site and boasts over 954,302 SF retail space, and is anchored by Costco, Dick’s Sporting Goods, Bed Bath & Beyond, Dillard’s, and

JCPenney. Additional retailers proximate to the site include Ingles, Lidl, Sam’s Club, Hobby Lobby, Kohl’s, Big Lots, Advance Auto Parts,

Applebee’s, IHOP, Waffle House, Smoothie King, Taco Bell, and McDonald’s.

Strategic Location Among Traffic Drivers

Flowers Bakery benefits from its close proximity to some of the area’s main points of interest, including Fairforest Middle School (948

Students), West View Elementary (785 Students), The Grove Apartments (183 Units), and Willis Road YMCA. In total, there are 5.1 MSF of

Retail, 13.6 MSF of industrial, and 4,542 multi-family units within a 3-mile radius.

Growing Industrial Corridor

The immediate area boasts a significant industrial presence. Teitex International’s 28-Acre complex is 1.7 miles north of the site and

employs up to 1,209 people. Tindall Corporation operates its 165,000-square-foot headquarters 2.3 miles north of the site, which employs

over 100 people in the local area.

Affluent Demographics

Flowers Bakery benefits from dynamic demographics with a population of 35,951 and an average household population of $71,943 within a

3-mile radius of the site.

Greenville-Spartanburg-Anderson CSA Advantage

The Greenville-Spartanburg-Anderson, SC Combined Statistical Area (CSA Population: 1.5 Million) is comprised of the Greenville-Anderson

and Spartanburg metro areas along with the Seneca, Greenwood, Gaffney, and Union micropolitan areas. Known as “The Upstate,” this

region encompasses the westernmost part of South Carolina. Greenville is the largest city in the region and is followed by Spartanburg and

Anderson.

25MI.25MI .

Strategically located between Spartanburg and Greenville which maximizes Flowers Foods’ regional distribution capabilities.


WARREN H ABERNATHY HWY: 26,600 VPD

63,700 VPD

26

29

183 UNITS

WESTSTONE - NEW TOWNHOUSE DEVELOPMENTWITH HOMES RANGING FROM $175-200,000.

IMMEDIATE CARE CENTER

TASTE OF THAIASIAN GROCERIES

WIRED AND WIRELESSCELL PHONE STORE

WINE AND SPIRITS SHOPPE

954,302 SF

MARKET AERIAL


SITE PLAN

Flowers Bakery

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PROPERTY DESCRIPTION

Location Site Land Area

Building Size Surrounding Traffic Counts Year Built

8251 Warren H Abernathy Hwy

Spartanburg, SC 29301

The site is positioned immediately

adjacent to Target, Dollar

Tree, Anytime Fitness, Sports Clips,

and NTB.

1.99 Acres

Warren H Abernathy Hwy/U.S. Route 29: 26,600 VPDInterstate 26: 63,700 VPD

20068,100 SF


TENANT Flowers Baking Co. of Newton, LLC

ORIGINAL LEASE TERM 15 Years

LEASE COMMENCEMENT August 1, 2006

LEASE EXPIRATION July 31, 2028

TERM REMAINING ±7.2 Years

LEASE TYPE Net Lease

CURRENT TERM RENT $138,000

RENT INCREASES Annual CPI Rent Increases (2% YoY Cap)

RENEWAL OPTIONS One 5-Year Option

RENEWAL RENT INCREASES Annual CPI Rent Increases (2% YoY Cap)

TAXES Lessee shall pay all taxes levied or assessed against the leased premises.

INSURANCE

Lessee agrees that at its own cost and expense, during the term of the Lease, it shall procure and continue in force general liability insurance in the amounts of $1,000,000 for injury to any one person, $500,000 for injury to more than one person in an occurrence, and $1,000,000 for damage to property arising out of the use or occupancy of the leased premises by Lessee.

Lessee shall procure and maintain fire and extended coverage insurance covering the leased premises in amounts equal to the replacement value of the building, and improvements on the demised premises without deduction for depreciation, in good and solvent insurance companies.

REPAIRS & MAINTENANCE

Lessee shall, at its own expense, keep and maintain the interior of the building, including painting of the doors, exterminating, and keeping all mechanical equipment in good condition and repair so as to tender it to Lessor.

Lessee shall, at its own expense, make all repairs to and provide the maintenance of the heating plant, air conditioning or air cooling, electrical wiring, plumbing, plumbing fixtures, water heaters, windows, all doors, including but not limited to overhead and hinged doors, and other similar fixtures on the leased premises.

Lessor shall, at its own expense, keep and maintain the structural portions of the building including roofs and walls. Lessee shall maintain all shrubs, lawns, and general landscaping on the leased premises.

LEASE ABSTRACT


SURROUNDING DEVELOPMENTS

The Grove - 183 Units

GREEN Charter School of Spartanburg

SAM’S CLUB

West Gate Mall: 954,302 SF

WESTSTONE - NEW TOWNHOUSE DEVELOPMENTWITH HOMES RANGING FROM $175-200,000.

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26,6

00 V

PD

INTERSTATE 26: 63,700 VPD

The immediate corridor along Warren H Abernathy Highway is experiencing tremendous growth as a result of several new multi-family developments. Grand Oaks of Spartanburg, a three-phase housing development recently started construction in 2020 and plans to have 696 apartment units in 29 buildings. Next to the complex, Gibbs International is set to construct a retail/residential development with a hotel, big box stores, and restaurants.


SURROUNDING USES


TENANT PROFILE

Flowers Foods (NYSE: FLO) is the second-largest producer and marketer of packaged bakery

foods in the United States. The company operates 46 highly efficient bakeries that produce

a wide range of bakery foods for retail and food service customers in the U.S. Flowers Foods’

customers include mass merchandisers, supermarkets and other retailers, restaurants, quick-

serve chains, food wholesalers, institutions, dollar stores, and vending companies. Flowers

Foods has 15 major brands, including widely distributed brands such as Nature’s Own,

Wonder, Tastykake, Dave’s Killer Bread, and regional names such as Butternut, and Sunbeam.

Flower Foods has made acquisitions of several bakeries and other food companies over

the years. At the end of 2018, Flower Foods bought Canyon Bakehouse — a privately held

gluten-free bread company based in Johnstown, Colorado — resulting in the company’s 16th

acquisition.

In 2020, Flowers Foods generated $4.4 billion in sales and a net income of $152 million.

The tenant under the lease is Flowers Baking Co. of Newton, LLC, a subsidiary of Flowers

Foods, Inc.

YEAR FOUNDED 1919

PUBLIC / PRIVATE Public

NUMBER OF EMPLOYEES ±9,200

NUMBER OF LOCATIONS 46

U.S. HEADQUARTERS Thomasville, GA

WEBSITE www.flowersfoods.com

Actual Location Actual Location


SPARTANBURG, SOUTH CAROLINASpartanburg is a city in and the seat of Spartanburg County South Carolina and is the

twelfth largest city in the state. The city is the second-largest in the greater Greenville-

Spartanburg-Anderson Combined Statistical Area.

Within the past decade, developers and community leaders have spearheaded efforts to

revitalize downtown Spartanburg’s commercial district. This has resulted in the remodeling

of Morgan Square (the primary hub of the downtown area), the restoration of a number of

historic structures, and the relocation of several businesses and company headquarters to

downtown.

Spartanburg is the home of more per capita international investment than anywhere else in

the country. Centered along the intersection of two major interstates, the area has become

host to more than 110 international firms, including the American headquarters of BMW

Manufacturing Company and Milliken Company. The Greenville-Spartanburg International

Airport (Annual Passengers: 2.61M) has become one of the busiest airports in South Carolina.

AREA OVERVIEW

Spartanburg has, throughout its history, been home to a creative community. The

Chapman Cultural Center is the city’s anchor for art, history, theatre, dance, music, and

science. The Showroom is another center for progressive arts in the community, which

features a gallery, film screen, stage, and concert venue and is also home to a nationally

recognized artist residency program called Hub-Bub.

Spartanburg is home to Wofford College (home to the training camp of the NFL’s

Carolina Panthers), Converse College, USC Upstate, Spartanburg Methodist College,

and Spartanburg Community College.

The city is also rich in the preservation of natural wonders and historical sites, including

Cowpens National Battlefield, Walnut Grove Plantation, Hatcher Garden, and Woodland

Preserve. Additionally, the city is the first in the state of South Carolina to earn the

recognition of a Bicycle-Friendly Community by the League of American Bicyclists.

Spartanburg is home to great road rides and vast trail systems.


AREA OVERVIEW

GREENVILLE-SPARTANBURG-ANDERSON SOUTH CAROLINA, CSA

The Greenville-Spartanburg-Anderson, SC Combined Statistical Area (CSA Population: 1.5 Million) is

comprised of the Greenville-Anderson and Spartanburg metro areas along with Seneca, Greenwood,

Gaffney, and Union micropolitan areas. Known as “The Upstate,” this region encompasses the westernmost

part of South Carolina. Greenville is the largest city in the region and is followed by Spartanburg and

Anderson.

Economy

Manufacturing, distribution, logistics, and technology are all prominent business industries in The

Upstate and are changing the dynamics of jobs and entrepreneurship. In the past 35 years, The Upstate

has transformed itself into one of the region’s premier areas for business and is one of the strongest

manufacturing sectors in the United States.

The Upstate is home to 508 foreign companies from 38 different countries. Several large corporations

have established regional, national, or continental headquarters in the area. Some of these corporations

include Adidas, Advance America, Bank of America, BMW of North America, Bon Secours St. Francis

Health Systems, Bosch North America, Bowater, Denny’s Restaurants, Dunlop Slazenger Group, Ernst &

Young, IBM, Michelin of North America, Microsoft, Verizon, as well as many others. BMW’s only North

American manufacturing plant is located in Spartanburg County and employs 11,000 people through its 7

MSF campus. The Spartanburg plant is the BMW Group’s producer of the BMW X3, X3 M, X5, X5 M, and

X7 Sports Activity Vehicles and X4, X4 M, X6, and X6 M Sports Activity Coupes. Michelin North America’s

headquarters is located in Greenville, along with seven manufacturing plants, an R&D facility, and a test

track. Michelin’s headquarters in Greenville employs over 1,400 people.

TOP EMPLOYERS IN GREENVILLE, SC (2020)

RANK COMPANY # OF EMPLOYEES

1 Prisma Health 15,941

2Greenville County

Schools10,095

3 Michelin North America 7,120

4 Bi-Lo, LLC 4,600

5Bon Secours St. Francis

Health System4,355

6 GE Power 3,400

7 Duke Energy Corp. 3,300

8Greenville County

Government2,685

9 State of South Carolina 2,552

10 Fluor Corporation 2,400


AREA OVERVIEW CONTINUED

GREENVILLE-SPARTANBURG-ANDERSON SOUTH CAROLINA, CSA

Transportation

The Upstate is served by two major interstate highways, I-85 and I-26. The major airport in the region

is Greenville-Spartanburg International Airport, which is located nearly halfway between Greenville and

Spartanburg in suburban Greer. The airport serves more than 2.61 million passengers per year with six

major airlines offering 50 non-stop average daily departures to 21 different destinations. Amtrak service

along the Crescent Line stops in Spartanburg, Greenville, and Clemson.

Education

The CSA also boasts a multitude of higher education institutions major institutions. Out of the 47 colleges

and universities in the state of South Carolina, 24 are located in The Upstate, including Bob Jones University

(Enrollment: 2,651), Clemson University (Enrollment: 26,406), Furman College (2,687), Greenville

Technical College (Enrollment: 10,864), and Spartanburg Community College (Enrollment: 4,354). 86% of

the population aged 25+ years in the Greenburg-Spartanburg-Anderson CSA have completed their high

school education or higher. 27% of the population aged 25+ have completed their bachelor’s degree or

higher.

The Upstate has 14 of the top 25 best K-12 school districts in South Carolina. With 76,000 students, the

Greenville County School District is the largest in the state and 44th largest in the nation. It’s home to the first

elementary school in South Carolina with a school-wide engineering curriculum, A.J. Whittenberg, which

partners with major companies like Fluor and Michelin to give children hands-on learning opportunities.


Affiliated Business Disclosure

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Confidentiality Agreement

Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

Disclaimer

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

Copyright Notice

© 2021 CBRE, Inc. All Rights Reserved.

Actual Location

INVESTMENT ADVISORS

CHRIS BOSWORTHVice Chairman

+1 404 923 [email protected]

BRIAN PFOHLSenior Vice President


Matt MountjoyVice President


JORDAN ESPYInvestment Sales Analyst


Kaitlyn WolfClient Services Specialist


Mike BurkardCBRE SC Licensee


Documents

OFFERING MEMORANDUM FLOWERS BAKERY