Sprouts – Bakersfield, CA

Sands Investment Group is pleased to exclusively offer for sale the new construction, pride of ownership, freestanding Sprouts NNN Asset located at 3535 Panama Lane in the City of Bakersfield, California. With approximately 13 years remaining on the primary term of the lease, this asset offers an investor long term security backed by 1 of the fastest growing specialty grocery retailers in the country. Sprouts Farmers Market (NASDAQ: SFM) operates over 490 locations within 25 states and generated annual revenue of $8.81 billion in 2025 recognizing a 14.08% increase year-over-year. The lease features extremely rare 10% rental increases every 5 years, compared with other alternative grocery opportunities, providing a new investor with a strong hedge against inflation. Bakersfield is California’s 9th largest city and remains one of the fastest growing major municipalities in the state offering additional security for an investor. The subject property benefits from its location within a larger destination oriented shopping center featuring cross shopping synergy from the adjacent retailers including Walgreens, AutoZone, Wells Fargo, Carl’s Jr., and others. This location benefits from dense infill & affluent demographics with a population of over 140,000 and average household incomes exceeding $72,000 within 3-miles. The property features high traffic counts in excess of 40,000 vehicles per day and is strategically located adjacent to State Highway 99. Other nearby retailers include Lowe’s, In-N-Out Burger, Albertsons, Walmart Supercenter, Costco, and more.

BEST-IN-CLASS INVESTMENT – PERFECT 1031 EXCHANGE OPPORTUNITY WITH DEPRECIATION BENEFITS
• New (2024), pride-of-ownership, build-to-suit Sprouts Farmers Market with approximately 13 years remaining on the lease.
• Triple Net (NNN) Lease featuring minimal landlord responsibilities limited to maintaining and replacing the roof and structure. There are also 18 years remaining on a 20-year roof warranty.
• Extremely rare 10% rent increases every 5 years, compared to typical Sprouts leases and other alternative net lease grocery investment opportunities.
• Corporately guaranteed by Sprouts Farmers Market (NASDAQ: SFM), a publicly traded company with more than 490 locations across 25 states.
• Fee simple ownership providing investors with depreciation benefits.

STRONG NATIONAL DAILY-NEEDS AND NECESSITY-BASED TENANT
• Sprouts Farmers Market (NASDAQ: SFM) is a leading national grocery retailer with more than 490 locations across the United States, including a significant presence in California with nearly 160 locations. The company employs over 36,000 people, and in 2025, reported $8.81 billion in revenue (+14.08% YoY) while maintaining a debt-free balance sheet.
• Sprouts is investing in price, loyalty, and aggressive unit growth, all self-funded from operating cash flow. Their Return On Invested Capital (ROIC) continues to improve, growing from 14.8% in 2024 to 18.3% in 2025.
• Sprouts opened 37 new stores in 2025, with plans to open 40 more in 2026. Sprouts currently has nearly 150 new stores approved and 105 executed leases in their pipeline.
• The company anticipates net sales growth of 4.5% to 6.5% in 2026.

CORE INFILL TROPHY BAKERSFIELD LOCATION
• Bakersfield is California’s ninth-largest city and remains one of the fastest-growing municipalities in the state.
• Dense infill location with affluent demographics, featuring a population of more than 140,000 residents and average household incomes exceeding $72,000 within a 3-mile radius.
• Located adjacent to State Route 99, a major north-south highway traversing California’s Central Valley, providing excellent visibility and convenient access for both local and regional consumers.
• Situated on a high-visibility hard corner with traffic counts exceeding 40,000 VPD, providing exceptional exposure and accessibility within a heavily traveled retail corridor.
• Benefits from strong cross-shopping traffic generated by Walgreens, AutoZone, Wells Fargo, and Carl’s Jr., with additional nearby national retailers including Lowe’s, In-N-Out Burger, Albertsons, Walmart Supercenter, Costco, and others.

In Cooperation With Sands Investment Group, Inc – Lic. #1768950