2955 N. Corral Hollow Road • Tracy, California

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2955 N. Corral Hollow Road • Tracy, California 2955 N. Corral Hollow Road • Tracy, California Walter Smyth Jay Patel CBRE Cushman & Wakefield First Vice President Executive Director 916-781-4843 858-558-5610 Lic 00956946 Lic 01512624 [email protected] [email protected] 1 Investment Summary 2955 N. Corral Hollow Road | Tracy, CA | OFFERING MEMORANDUM AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and/or 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 may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. CONFIDENTIALITY AGREEMENT This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved 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 with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. 2 InvestmentIf after reviewing Summary this Memorandum, you have no further interest in purchasing the Property, kindly2955 N.return Corral this Hollow Memorandum Road | to Tracy, CBRE, CA Inc. | OFFERING MEMORANDUM TABLE OF CONTENTS 4 Investment Summary & Lease Summary 5 Base Rent Schedule 6 Tenant Summary 7 Property Summary 8 Location Highlights & Demographics 9 Medical Services 10 Retail Services 2955 N Corral Hollow Rd • Tracy, CA 11 City of Tracy Aerial 3 Investment Summary 12 Map2955 N. Corral Hollow Road | Tracy, CA | OFFERING MEMORANDUM 4 120 132 33 26 88 99 WATER MTR. Corral Hollow Rd Dentist W Kavanagh Ave INVESTMENT SUMMARY LEASE SUMMARY Purchase Price $6,409,548.00 Suite 101 100 Annual Rent $352,358.00 Tenant Total Renal Care, Inc. Dentist CAP RATE* 5.50% Lease Guarantor DaVita, Inc. Personal Title Fee Simple Annual Rent $289,934.00 $62,424.00 Building Size ±12,960 Sq. Ft. Lease Term 15 years 10 years *Blended CAP Rate Options to Extend Term Two 5 year options One 5 year option Base Rent Increase 10% every 5 years CPI every 24 months Rent Commencement January 1, 2018 May 1, 2019 Suite Rentable Size ±10,629 Sq. Ft. ±2,312 Sq. Ft. 4 Investment Summary 2955 N. Corral Hollow Road | Tracy, CA | OFFERING MEMORANDUM BASE RENT SCHEDULE INITIAL LEASE TERM Annual Base Rent CAP Rate Years 1 - 2 $352,358 5.50% 3 - 4 $353,606 5.52% 5 - 6 $383,873 5.99% 7 - 8 $385,172 6.01% 9 $386,497 6.03% 10 $410,390 6.53% 11 - 12 $419,741 6.55% 13 - 14 $421,120 6.57% OPTION TERM 15 $457,608 7.14% 16 - 17 $459,042 7.16% 18 - 19 $460,505 7.18% 20 $500,587 7.81% 21 - 22 $502,109 7.83% 23 - 24 $503,661 7.86% NOTE: Base Rent Schedule assumes DaVita and Dentist renew their lease. 5 Base Rent Schedule 2955 N. Corral Hollow Road | Tracy, CA | OFFERING MEMORANDUM TENANT SUMMARY DaVita Inc., a Fortune 200® company, is the parent company of DaVita Kidney Care and DaVita Medical Group. DaVita Kidney Care is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease. DaVita Kidney Care strives to improve patients’ quality of life by innovating clinical care, and by offering integrated treatment plans, personalized care teams and convenient health-management services. As of March 31, 2019, DaVita Kidney Care operated or provided administrative services at 2,664 outpatient dialysis centers located in the United States serving approximately 203,000 patients. The company also operated 241 outpatient dialysis centers located in 11 countries outside the United States. In June of 2019, DaVita, Inc. sold it’s medical and physicians netwrok, Davita Medical Group, to Optum Health for a reported $4.3 billion in cash to focus resources on their kidney care line of business. • Sales/Revenue of $11.4 billion (2018) • Operating cash flow of $1.963 billion • Consolidated net revenue growth of 7.0% • 5.7% total net revenue growth in the US dialysis segment • Total Assets of $19.32 billion (2019) • Approximately 75% to 88% of patients covered by some form of government-based programs, including Medicare and Medicare-assigned plans. • Moody’s Credit Rating Ba2 • DaVita, Inc. (NYSE: DVA) • Warren Buffett’s Berkshire Hathaway owns a ±23% ownership position of DaVita, Inc. * Per Annual Report for DaVita Inc. for Fiscal Year Ended December 31, 2016 * You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON THE INFORMATION IS SOLELY AT YOUR OWN RISK. 6 Tenant Summary 2955 N. Corral Hollow Road | Tracy, CA | OFFERING MEMORANDUM PROPERTY SUMMARY The property is a brand new development, two tenant medical building consisting of approximately 12,960 square feet of building area, of which the DaVita Clinic occupies ±10,629 square feet, with the balance of ±2,312 square feet leased on a 10-year term to a dental practice. The site consists of three parcel of land totaling ±1.84 acres, zoned for Commercial use and provides parking for 51 vehicles. Building features include a roofing system with a 20-year warranty, a three-meter electrical system with ±1,200 amps of 208/120-volt power, natural gas service and fire sprinklers. The building offers tenant signage visible to Hwy 205 and Corral Hollow Road at the signalized intersection. 7 Property Summary • SAN FRANCISCO/BAY AREA SUBMARKET LOCATION HIGHLIGHTS • FREEWAY ADJACENT/VISIBLE • TRACY IS ONE OF THE FASTEST GROWING Newly constructed DaVita Dialysis medical clinic, with a 15-year lease with corporate CITIES IN CALIFORNIA guarantee, located in Northern California City of Tracy. Tracy is strategically located in the area known as the “Triangle” an area formed by the major interstates highways of 580, 205 and I-5.
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