EXCLUSIVE OFFERING $2,585,000 / 6.50% CAP PANERA BREAD

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1 REPRESENTATIVE PHOTOGRAPH EXCLUSIVE OFFERING $2,585,000 / 6.50% CAP PANERA BREAD EXP DALLAS JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. A brand-new, built to suit, Bakery-Cafe. Projected completion February 2013 lease structure. Brand new, 10-year, absolute NNN lease beginning February 2013 with a 10% increase every 5-years through the primary term and in each option period. Top franchisee operating 9-stores with strong sales and cash flow. location. is located along east-bound US 290 (91,670 Cars / Day) east of the intersection with Cypress- Rosehill Road (23,171 Cars / Day). The subject property is a freestanding outparcel to a Lowe s Home Improvement store, across Cypress- Rosehill Road, to a CVS pharmacy, and adjacent to an Arby s and a Firestone Complete Auto Care. Cypress is a strong regional retail trade area. Adjacent retailers include Walmart, Target, Home Depot, Bed Bath & Beyond, Kroger, Spec s, Walgreens, Best Buy, JCPenny, and Hobby Lobby. Cypress is one of the most affluent areas of Houston, and ranked in the Top 50 most affluent areas in the US mile demographic estimates show a population of 62,026 with an average household income of $103,607. The Cypress-Fairbanks Independent School District is the 3 rd largest, and one of the fastest growing, in Texas.

2 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6: PAGE 7-8: PAGE 9: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT OVERVIEW SITE PLAN AERIAL PHOTO LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located in the southeast corner of US 290 and Cypress- Rosehill Road in Cypress, Texas by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent.

3 Investment overview PRICE: $2,585,000 CAP RATE: 6.50% NET OPERATING INCOME: $168,000 BUILDING AREA: 4,000+ Square Feet LAND AREA: Acres YEAR BUILT: 2013 Lease overview Initial Lease Term: 10-year term with 3, 5-year options to extend Projected Rent Commencement: February 2013 Projected Lease Expiration: February 2023 Lease Type: Absolute NNN Rent Increases: 10% every 5-years through term and options Year 1-5 Annual Rent (Current): $168,000 OWNERSHIP: Fee Simple Interest Year 5-10 Annual Rent: $184,800 OCCUPANCY: 100% Year Annual Rent (Option 1): $203,280 Year Annual Rent (Option 2): $223,608 Year Annual Rent (Option 3): $245,969 Tenant overview NASDAQ: PNRA Au Bon Pain Co. purchased the St. Louis Bread Company in In 1999 the company changed its name and sold its other chains, including former namesake company Au Bon Pain, in order to expand into a national company. Today, Company, together with its subsidiaries, owns, operates, and franchises quick-casual retail bakery-cafes in the United States and Canada. Its bakery-cafes offer fresh baked goods, sandwiches, soups, salads, custom roasted coffees, and other complementary products, as well as provide catering services under the Panera Catering name. The company also provides fresh dough, produce, tuna, and cream cheese items, as well as sweet goods items through its company-owned and franchise-operated bakery-cafes. As of June 29, 2012, it operated approximately 1,600 bakery-cafes in 40 states under the, Saint Louis Bread Co., and Paradise Bakery & Cafe names as well as 20 facilities that deliver fresh dough to the bakery-cafes each day. The company was founded in 1981 and is based in Sunset Hills, Missouri, a suburb of St. Louis. ranked 37th on BusinessWeek s list of Hot Growth Companies in 2005, and in 2008 Health magazine judged the company as North America s healthiest fast casual restaurant. scored the highest level of customer loyalty among quick-casual restaurants, according to research conducted by TNS Intersearch. It ranked #2 among Excellent Large Fast-Food Chains (500 or more units) in the Sandelman & Associates 2011 Quick-Track Study. Zagat named it the Top Rated Facility, the Best Salad, and Best Healthy Option amongst chain restaurants with less than 5,000 outlets. was also named to BusinessWeek s 2010 list of top 25 Customer Service Champs, to FORTUNE magazine s 2010 list of 100 Fastest-Growing Companies, and has also won awards and recognition in nearly every market in which it has locations. Recently, was named Casual Dining Brand of the Year in the 2012 Harris Poll EquiTrend. Co. s 2011 fiscal annual revenue was $1.8 billion with an annual profit of $136.0 million. The company s cash flow from operating activities was $237 million. Average annual appreciation is 32.8% since the company s IPO in There is no debt on the Co. balance sheet. Co. s 52-week range trading high is PNRA closed at on 7/10/

4 Site plan 4

5 Aerial photo Robison Elementary School (1,042 Students) Cypress Woods High School (3,158 Students) Cypress- Rosehill Rd (23,171 cars / day) Spillane Middle School (1,704 Students) Metro Park & Ride: Cypress Village Station 5

6 Location overview IMMEDIATE TRADE AREA is located along the east-bound side of US 290 (91,670 Cars / Day) on the southeast corner of the intersection with Cypress- Rosehill Road (23,171 Cars / Day). US 290 is a major east-west highway located entirely within Texas. Its current western terminus is Interstate 10 northwest of San Antonio, and its eastern terminus is Interstate 610 on the northwest side of Houston. US 290 is the primary route connecting Houston and Austin. Cypress- Rosehill Road is a divided north-south surface street that connects residential areas and developments in the Cypress area to the radial highways, such as US 290, around Houston, Texas. The subject property is a freestanding outparcel to a Lowe s Home Improvement store on the southeast corner of the intersection. The bakery-café is across Cypress- Rosehill Road, to a CVS pharmacy. The immediate area is a major retail center for Cypress, Texas. Nearby retailers include Walmart, Target, Home Depot, Bed Bath & Beyond, Kroger, Spec s, Walgreens, Best Buy, JCPenny, and Hobby Lobby. Five schools with a combined enrollment exceeding 12,000 students are within a 5-mile radius of the site. The Sysco Business Services Call center is near to the east of the site: adjacent to the Houston-Metro Transit Park and Ride. CYPRESS / HARRIS COUNTY, TEXAS The area was mostly rural until developers began construction of several masterplanned communities in the 1980s that transformed the area into one of Greater Houston s largest suburban communities. Today the Cypress-Fairbanks urban cluster ranks 50th within the top 100 highest-income urban areas in the United States. Cypress is an unincorporated area of Harris County located along US Hwy 290 approximately 25 miles northwest and completely inside the extraterritorial jurisdiction of the City of Houston Census data has the population of Cypress as being 122,803. The area is served by the Cypress- Fairbanks Independent School District, the third largest and one of the fastest growing districts in Texas. The district serves in excess of 107,000 students. Harris County had a population of 4.1 million according to the 2010 census, which makes the county the most populous in Texas and the 3 rd most populous in the US. This size of the labor force coupled with a business friendly local regulatory climate have lured numerous businesses to operate in Harris County. HOUSTON-SUGAR LAND-BAYTOWN METROPOLITAN AREA The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA), colloquially known as Greater Houston, is the 6 th largest in the United States with a population of 5,946,800. From 2000 to 2030, the metropolitan area is projected by Woods & Poole Economics to rank fifth in the nation in population growth adding 2.66 million people. In 2006, Greater Houston ranked 1 st in Texas and 3 rd in the U.S. within the category of "Best Places for Business and Careers" by Forbes. The Greater Houston Gross Metropolitan Product (GMP) in 2005 was $308.7 billion, up 5.4 percent from 2004 in constant dollars. By 2010, the GMP rose to $384 billion, 5 th in the nation. Only 28 nations other than the United States have a GDP exceeding the Greater Houston GMP. Mining, which in Houston is almost entirely oil and gas exploration and production, accounts for 11 percent of Greater Houston's GMP. Houston is second to New York City in Fortune 500 headquarters. Galveston Bay and the Buffalo Bayou together form one of the most important shipping hubs in the world, and the Port of Houston, the Port of Texas City, and the Port of Galveston are all major seaports located in Greater Houston. The area is one of the leading centers of the energy industry, particularly petroleum processing, and many companies have large operations in this region. The MSA comprises the largest petrochemical manufacturing area in the world, including for synthetic rubber, insecticides, and fertilizers. Much of metro area's success as a petrochemical complex is enabled by the Houston Ship Channel. The area is also the world's leading center for building oilfield equipment, and is a major center of biomedical research, aeronautics, and high-technology. Because of these economic trades, many residents have moved to the Houston area from other U.S. states, as well as hundreds of countries worldwide. Houston is home to the Texas Medical Center the largest medical center in the world several universities (including Rice University, Texas Southern University, and The University of Houston), and two of the largest systems of higher learning in the United States (The Houston and Lone Star Community College systems). The University of Houston s annual impact on the Houston-area's economy alone equates to that of a major corporation: $1.1 billion in new funds attracted annually to the Houston area, $3.13 billion in total economic benefit, and 24,000 local jobs generated. CNN/Money and Money Magazine have recognized 5 cities in the Greater Houston area the past 3-years as part of its 100 Best Places to Live in the United States. 6

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9 Demographics DEMOGRAPHIC SNAPSHOT Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 6,314 62, , Estimate 5,427 52, , Census 5,145 49, ,757 Growth % 17.50% 13.00% Growth % 6.00% 4.20% 2011 Households: 2016 Projection 2,324 19,877 42, Estimate 2,006 17,027 37, Census 1,899 16,060 35,900 Growth % 16.70% 12.50% Growth % 6.00% 4.20% Owner Occupied 1,584 14,684 32,541 Renter Occupied 422 2,343 4, Avg Household Income $85,935 $103,607 $108, Med Household Income $78,231 $90,251 $95, Per Capita Income $28,072 $33,139 $34, Households by Household Inc: Income Less than $15, ,571 Income $15,000 - $24, ,546 Income $25,000 - $34, ,287 2,236 Income $35,000 - $49, ,024 2,235 Income $50,000 - $74, ,316 4,782 Income $75,000 - $99, ,606 7,415 Income $100,000 - $149, ,622 10,863 Income $150,000 - $199, ,687 4,103 Income $200, ,080 2,671 Downtown Houston, Texas Cypress Woods High School 9

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