REPRESENTATIVE PICTURE Actual Site Photo DAVITA EXCLUSIVLY LISTED BY: Brian Mayer RICHLAND, National Retail Group 206.826.5716 1315 Aaron Drive, Richland, WA 99352 [email protected] DaVita | 1 PROPERTY HIGHLIGHTS

INVESTMENT GRADE TENANT: 10+ YEAR HISTORICAL OCCUPANCY:

Nation’s leading provider of kidney dialysis Build to Suit for DaVita in 2008, the Tenant services and a Fortune 500 company, has occupied the property for over 10 DaVita generated $10.88 Billion in net years. revenue in 2017. S&P Investment Grade Rating of BB.

EARLY LEASE EXTENSION: MINIMAL LANDLORD RESPONSIBILITIES:

In December 2018, DaVita exercised its Tenant is responsible for taxes, insurance first 5-year option, as well as exercising its and CAM’s. Landlord is responsible for roof, second 5-year option early, for a combined structure and limited capital expenditures. 10-year renewal period.

SIGNIFICANT TENANT CAPITAL EXPENDITURES: MANAGEMENT FEE REIMBURSEMENT:

Tenant contributed approximately $1.5 Lease allows Landlord to collect a million towards its build-out in 2008, and is management fee as additional rent. A slated to contribute an additional $250,000 management fee equal to 6% of base rent in 2019. is currently being collected.

HIGHWAY VISIBILITY & ACCESS: PROXIMITY TO MAJOR MEDICAL CAMPUS:

Features easy access and excellent visibility In close proximity to the Tri-Cities major from Interstate 182 (69,000 VPD), Highway medical campus, including Kadlec Regional 240 (46,000 VPD) and George Washington Medical Center, Lourdes Health and Seattle Way (41,000 VPD). Children’s’ Hospital.

ANNUAL RENTAL INCREASES: DENSELY POPULATED AFFLUENT AREA:

Lease benefits from 2% annual increases Features an average household income of in the initial Lease Term and 2.5% annual $93,558 within 5 miles, and a population increases in the Option Period. of nearly 300,000 within the Kennewick- Richland MSA.

RITE AID | 2 DaVita | 2 Highway 240 46,000 VPD

McDonalds

Interstate 182 69,000 VPD

DaVita | 3 INVESTMENT OVERVIEW Marcus & Millichap has been exclusively selected to market for sale the DaVita Dialysis Center at 1315 Aaron Drive in Richland, WA. The 7,500-sf structure sits on 20,547-sf parcel with highway exposure and access to Interstate 182 and Highway 240, which carry 69,000 and 46,000 vehicles per day, respectively. The property is in close proximity to the region’s medical campus, which includes the Kadlec Regional Medical Center, Lourdes Health and Settle Children’s Hospital, among many other medical facilities and clinics. Built in 2008 as a build-to-suite for Davita, the property was delivered to the tenant in shell condition with a gravel floor. The tenant indicated spending $1.5 million to complete the build-out, and paid rent for approximately 18 months before moving in. An additional $250,000 in additional improvements is planned to be completed in 2019. In December of 2018, DaVita exercised its first 5-year option as well as exercising its second 5-year option early, for a combined 10-year renewal period. The property is subject to a NNN lease in which the Landlord is only responsible for the roof, structure and limited capital expenditures. The lease also benefits from 2% annual increases in the initial term with 2.5% annual increase throughout the options. Moreover, the lease allows for a management fee reimbursement. A 6% of base rent fee is currently being paid by DaVita.

PRICE: $4,448,000

CAP RATE: 4.90%

AVG CAP RATE: 5.31%

NOI: $217,969.92

RENTABLE AREA: 7,500 SF

LOT SIZE: 20,547 SF

YEAR BUILT: 2008 (BUILD TO SUIT) George Washington Way TRADE AREA MAP Tri-Cities Medical Campus 31,000 VDP

McDonalds

Highway 240 46,000 VPD Interstate 182 69,000 VPD DaVita | 6 FINANCIAL SUMMARY

Guarantee: Corporate Lease Type: Modified NNN

Tenant: Total Renal Care, Inc. CAM: Reimbursed by Tenant. Non-controllable expenses capped at a 5% annual increase. Net Operating Income: $217,969.92 (As of December 11, 2019) Real Estate Taxes: Fully Reimbursed by Tenant

Base Annual Rent: $205,632 Insurance: Fully Reimbursed by Tenant

Management Fee: $12,337.92 Roof, Structure & Cap X: Paid Direct by Landlord (paid by Tenant as Additional Rent) Management Fee Reimbursement: Yes. Currently 6% of Base Rent. Lease Commencement: 12/11/2008 ROFR / ROFO: None Lease Expiration: 12/10/2028 Renewal Options: 3 x 5 Years Lease Term Remaining: 10 Years Rent Increases: 2% Annually (2.5% Annually in Options)

RENT SCHEDULE Years Annual Rent Rent Increase Cap Rate

12/11/2018 - 12/10/2019 $213,696 2.0% 4.80% 12/11/201912/11/2019 - 12/10/2020 $217,970 2.0%2.0% 4.90% 12/11/2020 - 12/10/2021 $222,329 2.0% 5.00% 12/11/2021 - 12/10/2022 $226,776 2.0% 5.10% 12/11/2022 - 12/10/2023 $231,311 2.0% 5.20% 12/11/2023 - 12/10/2024 $235,938 2.0% 5.30% 12/11/2024 - 12/10/2025 $240,656 2.0% 5.41% 12/11/2025 - 12/10/2026 $245,470 2.0% 5.52% 12/11/2026 - 12/10/2027 $250,379 2.0% 5.63% 12/11/2027 - 12/10/2028 $255,387 2.0% 5.74% Option 1 (5 Years) $ 261,771 2.5% Annually DaVita | 7 LEASE ABSTRACT

Operating Expenses & Utilities Lessee shall pay “Lessee’s Proportionate Share” (as defined herein) of all real estate taxes and assessments against the Building, taxes on Lessor’s personal property used in conjunction with the Building or project and taxes on rent or gross receipts (“Taxes”), common area maintenance charges for the Building including, without limitation, landscaping, exterior lighting, parking lot maintenance (including resurfacing and re-striping, when necessary), snow removal, sign maintenance, trash removal, utilities for connnon areas, water for landscape, pest control, refurbishing tmd repainting, and property management (“CAM Charges”) and insurance premiums for the Building, including premiums for rent abatement paid by Lessor and (to the extent used) deductibles (“Insurance”), in advance, in equal monthly installments at the time of the payment of Rent, based on Lessor’s estimate of the Taxes, CAM Charges and Insurance for the calendar year in question (which estimate may be revised by Lessor from time to time). For reference purposes, Taxes, CAM Charges and Insurance are collectively referred to as the “Operating Expenses” for the Building and Premises.

Exclusions to Operating Expenses The cost of any repair or replacement of the roof, foundation or any structural component of the Building which would be required to be capitalized under generally accepted accounting principles, including without limitation the cost of renting any equipment or materials, which cost would be so capitalized if the equipment or materials were purchased, not rented;

Tenant’s Proportionate Share “Lessee’s Proportionate Share” is the quotient obtained by dividing the rentable area of the Premises by the Building rentablc area. Lessee’s Proportionate Share as of the Commencement Date will be 100.00%.

Utilities Lessee shall pay for all utilities and other services necessary in the operation of the Premises, including but not be limited to, gas, fuel oil, electrical, telephone and other utility charges. The Premises shall be separately metered for all utilities, including gas, water and electricity.

Repairs & Maintenance Repairs and Maintenance. Lessor shall maintain the common areas of the Building and surrounding areas and such costs shall be considered CAM Chai-ges. Notwithstanding the .. foregoing, Lessor, at its sole cost and expense, shall maintain and keep in good order and repair and make any necessary replacements to the roof, roof membrane, roof covering, concrete slab (if poured by Lessor), footings, foundation, structural components, exterior walls, exterior doors and windows, flo01ing (except for floor covering), exterior plumbing, heating, ventilation, cooling and electrical systems of the Building ( except for those installed by Lessee). If Lessor shall not commence such repairs within the fifteen (15) days following wlitten notice from Lessee that such repairs are necessary then Lessee may, at its option, cause such Lessor’s repairs to be made and shall furnish Lessor with a statement of the cost of such repairs upon substantial completion thereof: Lessor shall reimburse Lessee for the cost of such repairs within ten (10) days of the date of the statement from Lessee setting forth the amount due, provided, however, should Lessor fail to reimburse Lessee wiLh said ten (10) day period, then Lessee may, at its option, offset such amount against subsequent rent due under this Lease.

Taxes: Tenant Reimburses Insurance: Tenant Reimburses Estoppel: 15 Business Days

DaVita | 8 DaVita | 9 SITE PLAN & TRAFFIC COUNTS

Aaron Dr

Interstate 182

SQUARE FOOTAGE LOT SIZE SITE MAP 7,500 SQ. FT. 20,574 SQ. FT. DaVita | 10 TRI-CITIES, WASHINGTON 3 Miles 5 Miles 10 Miles Located in the south-central portion of Washington State, the Tri-Cities of POPULATION Kennewick, Pasco and Richland are within 225 miles of Seattle and Portland 2023 Projection 49,375 113,403 251,931 via . The metro is composed of Benton and Franklin counties. The Department of Energy is a driver of the economy, providing high-skill jobs that have 2018 Estimate 45,338 100,966 232,630 contributed to boosting population growth and incomes well above the U.S. level. 2010 Census 41,174 90,213 207,033 The Columbia, Yakima and Snake rivers provide an array of recreational activities, 2000 Census 32,686 60,983 152,697 while the area’s favorable weather and cultural amenities add to the quality of life. INCOME Metro Highlights Average $94,229 $96,890 $83,927 Median $69,976 $74,798 $63,124 Department of Energy The DOE’s vast Hanford Site, Pacific Northwest National Laboratory, and other Per Capita $38,402 $37,731 $30,701 affiliated programs attract highly skilled engineers, scientists and researchers. HOUSEHOLDS Large Agricultural Sector 2023 Projection 20,420 44,574 93,528 Crops including wheat, potatoes, apples, cherries and grapes thrive in the conducive 2018 Estimate 18,430 39,195 84,714 weather. Major employers include Lamb Weston, Tyson Foods and Broetje Orchards. 2010 Census 16,528 34,588 74,693 Institutions of Higher Learning 2000 Census 12,853 23,429 55,829 Washington State University Tri-Cities, Columbia Basin College, Tri-Tech Skills Center and Charter College help provide an educated workforce. HOUSING 2018 $219,728 $228,235 $212,716 Economy

• Hanford clean-up-$2.4 billion budget (current fiscal year) approved by federal EMPLOYMENT 2018 Daytime government will fuel the Tri-Cities economy for years to come. Population 49,658 109,194 232,083 2018 • The DOE, along with partners and contractors including Battelle, Bechtel National, Unemployment 4.93% 4.74% 5.82% 2018 Median Time Washington River Protection Solutions, Mission Support Alliance and CH2M, provide 21 22 23 more than 13,000 area jobs. Traveled

• Kadlec Regional Medical Center, Trios Health, Lourdes Medical Center and Prosser RACE & ETHNICITY Memorial contribute to the vital healthcare sector, employing thousands of workers. White 85.13% 84.18% 74.68% Native American 0.15% 0.15% 0.19% • Plenty of sun and three rivers lure outdoor enthusiasts to a wide variety of water sports as well as golfing, hunting, and fishing. Miles of trails attract joggers and African American 1.64% 1.66% 1.80% Asian/Pacific bicyclists, while the region’s vineyards and microbreweries draw tourists. Is lander 4.40% 4.23% 3.13%

DaVita | 11 LOCATION OVERVIEW SEATTLE, WASHINGTON

EXCELLENT SOUTH SEATTLE LOCATION WITH VIEWS OF LAKE WASHINGTON

LOCATED 5 MINUTES FROM I-5 AND 15 MINUTES FROM DOWNTOWN SEATTLE

HIGH VISIBILITY AND EASY ACCESS FROM RAINIER AVE (22,000+ VPD)

EXCELLENT DEMOGRAPHICS – 307,032 PEOPLE WITHIN A 5-MILE RADIUS

HARD CORNER, SIGNALIZED INTERSECTION

DaVita Kidney Care is a division of DaVita Inc., a Fortune 500® company, that through its operating LOCATIONS divisions provides a variety of health care services to patient populations throughout the United States and abroad. A leading provider1 MILE of dialysis3 MILE services 5 in MILE the United States, DaVita Kidney Care 2,580 ESTIMATEDtreats patients 2017 POPULATION with chronic kidney14,907 failure and103,986 end stage renal307,032 disease. DaVita Kidney Care strives to improve patients’ quality of life by innovating clinical care, and by offering integrated treatment PROJECTEDplans, personalized 2022 POPULATION care teams and16,183 convenient111,266 health-management330,852 services. As of June 30, 2018, CREDIT RATING DaVita Kidney Care operated or provided administrative services at 2,580 outpatient dialysis centers located in the United States serving approximately 201,000 patients. The company also operated BB (S&P) ESTIMATED253 outpatient 2017 HOUSEHOLDS dialysis centers located5,052 in 10 countries36,198 outside114,902 the United States. DaVita Kidney Care supports numerous programs dedicated to creating positive, sustainable change in communities PROJECTEDaround 2022the world.HOUSEHOLDS The company’s5,464 leadership 38,608development123,679 initiatives and social responsibility efforts FOUNDED have been recognized by Fortune, Modern Healthcare, Newsweek and WorldBlu.

AVERAGE 2017 HOUSEHOLD INCOME $78,408 $91,687 $93,094 1999 MEDIANHEADQUARTERS: 2017 HOUSEHOLD INCOME $57,175 NET$69,229 REVENUE:$69,255 # OF EMPLOYEES: TICKER SYMBOL This informationDENVER, has been secured CO from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy$10.88 of the information. BILLION References to (YEsquare footage 2017) or age are 70,800 +/- approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, DVA assumptions or estimates used herein are for example purposes only and do not represent the current or future RITE AID | 12 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap ACT ID Y0110425 CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary As the Buyer of a net leased property, it is the Buyer’s responsibility to and strictly confidential. It is intended to be reviewed only by the party receiving independently confirm the accuracy and completeness of all material infor- it from Marcus & Millichap and should not be made available to any other mation before completing any purchase. This Marketing Brochure is not a person or entity without the written consent of Marcus & Millichap. This Marketing substitute for your thorough due diligence investigation of this investment Brochure has been prepared to provide summary, unverified information opportunity. Marcus & Millichap expressly denies any obligation to conduct to prospective purchasers, and to establish only a preliminary level of interest a due diligence examination of this Property for Buyer. in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made Any projections, opinions, assumptions or estimates used in this Marketing any investigation, and makes no warranty or representation, with respect to Brochure are for example only and do not represent the current or future the income or expenses for the subject property, the future projected financial performance of this property. performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s The value of a net leased property to you depends on factors that should or asbestos, the compliance with State and Federal regulations, the physical beevaluated by you and your tax, financial and legal advisors. Buyer and condition of the improvements thereon, or the financial condition or business Buyer’s tax, financial, legal, and construction advisors should conduct a prospects of any tenant, or any tenant’s plans or intentions to continue its careful, independentinvestigation of any net leased property to determine occupancy of the subject property. The information contained in this Marketing to your satisfaction with the suitability of the property for your needs. Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information Like all real estate investments, this investment carries significant risks. contained herein, nor has Marcus & Millichap conducted any investigation Buyer and Buyer’s legal and financial advisors must request and carefully regarding these matters and makes no warranty or representation whatsoever review alllegal and financial documents related to the property and tenant. regarding the accuracy or completeness of the information provided. All potential While the tenant’s past performance at this or other locations is an impor- buyers must take appropriate measures to verify all of the information tant consideration, it is not a guarantee of future success. set forth herein. Similarly, the lease rate for some properties, including newly-constructed NON-ENDORSEMENT NOTICE facilities or newly-acquired locations, may be set based on a tenant’s pro- Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any jectedsales with little or no record of actual performance, or comparable commercial tenant or lessee identified in this marketing package. The presence rents for the area. Returns are not guaranteed; the tenant and any guaran- of any corporation’s logo or name is not intended to indicate or imply affiliation tors may fail to pay the lease rent or property taxes, or may fail to comply with, or sponsorship or endorsement by, said corporation of Marcus & with other material terms of the lease; cash flow may be interrupted in part Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial or in whole due to market, economic, environmental or other conditions. listing of Marcus & Millichap, and is solely included for the purpose of Regardless of tenant history and lease guarantees, Buyer is responsible for providing tenant lessee information about this listing to prospective customers. conducting his/her own investigation of all matters affecting the intrinsic value of the property and thevalue of any long-term lease, including the NET-LEASED DISCLAIMER likelihood of locating a replacement tenant if the current tenant should Marcus & Millichap hereby advises all prospective purchasers of Net Leased default or abandon the property, and the lease terms that Buyer may be property as follows: able to negotiate with a potential replacement tenant considering the loca- tion of the property, and Buyer’s legal ability to make alternate use of the The information contained in this Marketing Brochure has been obtained from property. sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any By accepting this Marketing Brochure you agree to release Marcus & Mil- investigation regarding these matters. Marcus & Millichap makes no guarantee, lichap Real Estate Investment Services and hold it harmless from any kind warranty or representation whatsoever about the accuracy or completeness of of claim, cost, expense, or liability arising out of your investigation and/or any information provided. purchase of this net leased property.

RITE AID | 12 OFFICES NATIONWIDE

EXCLUSIVLY LISTED BY: Brian Mayer National Retail Group 206.826.5716 [email protected]