DAVITA DIALYSIS OF GARY, 4802 BROADWAY, GARY, INDIANA 46408

JONATHAN PERANICH | MANAGING PARTNER Email: [email protected]

Direct: (832) 602-3383 NET LEASE GROUP DAVITA DIALYSIS OF GARY, INDIANA

PROPERTY OVERVIEW 4802 BROADWAY, GARY, INDIANA 46408

JONATHAN PERANICH MANAGING PARTNER EMAIL: [email protected] DIRECT: (832) 602-3383 TABLE OF CONTENTS

4 INVESTMENT OVERVIEW

5 INVESTMENT HIGHLIGHTS

6 PRICING AND FINANCIALS

7 NET LEASE STRUCTURE

8 RENT ROLL

9 TENANT OVERVIEW

10 DEMOGRAPHICS

11 LOCATION OVERVIEW

12 OUR TEAM

JONATHAN PERANICH MANAGING PARTNER Email: [email protected] Direct: (832) 602-3383 INVESTMENT OVERVIEW DAVITA DIALYSIS OF GARY, IN

DAVITA DIAYLSIS

Lessee Entity Total Renal Care - Indiana, LLC

INVESTMENT OVERVIEW. Peranich Huffman Net Lease Group is pleased to offer for Rentable Area 11,203 SF sale, the DaVita Dialysis of Gary, Indiana. The 13,125 square foot freestanding, net leased medical office building is located on one of the main thoroughfares of downtown Gary and Merrillville, Indiana. Comprised of 40 patient stations operating 6 days a week, the practice (%) of Rentable Area 85.36% benefits from a substantial patient count, performing over 330 procedures per week. Lease Expiration Date 1/31/2025

LEASE TERM. Commencing in 2012, DaVita Dialysis occupies approximately 85% of the Term Remaining 5 Years total rentable area and recently signed a 5-Year lease extension. The lease calls for 2% annual rental rate escalations in both the primary term and all (3) 5-year option periods. The Lessee, TRC – Indiana, LLC, is a wholly owned subsidiary of DaVita, Inc., one the fastest Rent/SF $ 23.50 growing corporation on the Fortune 200 list. DaVita’s 2018 revenues exceeded $11 Billion, holding an investment grade Ba2 credit rating from Moody’s. DaVita currently treats 42% of Primary Term Escalations 2% Annually all dialysis patients throughout the United States. Number of Stations 40 ABOUT THE TENANT. The lease is structured on a net basis, whereby the Tenant is responsible for their 85% pro-rata share of all expenses relating to property. This includes utilities, insurance premiums, and all interior portions of the premises. The Tenant also Renewal Options (3) 5-Year reimburses Landlord for their pro-rata costs associated with the repair and replacement of the Roof, HVAC, landscaping and other common area expenses. The Landlord is only Option Period Escalations 2% Annually responsible for the 15% of pro-rata the expenses attributed to the Available Space, the structural components of the improved property, and the additional Parking Lot.

AVAILABLE SPACE NET LEASE STRUCTURE. Offered at a 7.85% capitalization rate, the facility provides for a stable recession proof opportunity, occupied by a national medical tenant with a reputation for consistency, and ample upside through the leasing of available space. Rentable Area 1,922 SF

(%) of Rentable Area 14.64%

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 4 AERIAL VIEW DAVITA DIALYSIS OF GARY, IN

DAVITA DIALYSIS + ADDITIONAL PARKING / REDEVELOPMENT OPPORTUNITY

Additional DaVita Parking & Vacant Building

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 5 RENT ROLL NET LEASE GROUP DAVITA DIALYSIS OF GARY, IN

DaVita Dialysis + Additional DaVita Parking

Non- Lease Lease Term Rentable (%) of Rentable Primary Term Option Annual Net Operating Tenant Reimbursable Commecement Expiration Remaining Area Area Escalations Periods Base Rent Income OPEX

DaVita Dialysis 2/1/2012 1/31/2025 5 Years 11,203 SF 85.36% 2% Annually (3) 5-Year $263,270 - $263,270

Available Space - - - 1,922 SF 14.64% - - - ($6,333) ($6,333)

DaVita Parking 1/4/2012 1/31/2025 5 Years 18 Spaces - - (3) 5-Year $8,316 ($3,327) $4,989

Totals ------$271,586 ($9,660) $261,926

The Net Operating Income of $261,926 is derived from the aggregate sum of current Annual Base Rent for both leases: (i) DaVita’s Primary Lease; and (ii) DaVita’s Parking Lot Lease across from the dialysis unit. The non-reimbursable operating expenses associated with both parcels were then subtracted from this total. See below for more information:

(i) DaVita’s Primary Lease: The Primary Lease is structured on a net basis, whereby DaVita is responsible for 85% of all operating expenses associated with this parcel. The additional 15% of non-reimbursable operating expenses (attributed to the available space) results in a $6,333 cost to the Landlord.

(ii) DaVita’s Parking Lot Lease: The Parking Lot Lease is structured on a Gross basis, whereby DaVita is responsible for an annual base rental rate payment of $8,316, and the Landlord is responsible for the nominal cost of property taxes and insurance. The resulting NOI comes to $4,989 of additional annual income.

Summary NOI Calculation: ($263,270 - $6,333) + ($4,989) = $261,926

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 6 INVESTMENT HIGHLIGHTS DAVITA DIALYSIS OF GARY, IN

Strong Performance Metrics – Over 330 Patient Procedures per Week Value Add Opportunity – Ample Upside through Leasing of Available Space

Exceptional Population Counts – 143,000 residents within a 5-Mile Radius Scheduled Rent Increases – 2% Annual Escalations in primary term/option periods

Net Leased Investement - Minimal Landlord Responsibilities Located on a Main Thoroughfare - 29,000 Vehicles Per Day (VPD)

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 7 PRICING & FINANCIALS DAVITA DIALYSIS OF GARY, IN

PURCHASE PRICE $ $3,337,000

CAP RATE % 7.85%

NOI $261,926

PRICE PSF $254

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 8 NET LEASE STRUCTURE NET LEASE GROUP DAVITA DIALYSIS OF GARY, IN

LANDLORD'S RESPONSIBILITIES

Tenant's Landlord's Lessor, at its sole cost and expense, shall maintain and keep in good order and repair Expense Category Responsibility Responsibility and make any necessary replacements to the concrete slab, footings, foundation, structural components (excluding the roof), exterior walls, walks, parking areas, driveways and other exterior common areas, exterior doors and windows, flooring Exterior Structure √ (except for floor covering), exterior plumbing, and electrical systems of the Building.

Roof √ TENANT'S RESPONSIBILITIES HVAC √ Lessee shall pay the net cost (after applying any discounts or incentives) all utilities and other services necessary in the operation of the Premises, including but not be Parking Lot √ limited to, gas, fuel, oil, electrical, telephone and other utility charges.

Common Area Maintenance √ Lessee shall pay Lessee's Proportionate Share (85%) of all Taxes, common area maintenance charges for the Building and insurance premiums for the Building. Landscaping √ Lessee at its sole cost and expense, subject to the below reimburse by Lessor, shall maintain and keep in good order and repair and make any necessary Taxes √ replacements to the roof and related structures. Lessor shall reimburse Lessee by contributing 15% of the cost expended by Lessee for any such repair and/or Insurance replacement of the roof. Also, Lessor shall reimburse Lessee by contributing √ 15% of the cost expended by Lessee for any such repair and/or replacement of the HVAC systems of the Building. Utilities √

The graph shown above represents the financial responsibility of the expense categories. Please see Page 6 for more information.

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 9 TENANT OVERVIEW | DAVITA DIALYSIS

DaVita Inc., a Fortune 500® company, is the parent company of DaVita Kidney Care and HealthCare Partners, a 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 operated or provided administrative services at 2,510 outpatient dialysis centers located in the United States serving approximately 198,000 patients. The company also operated 154 outpatient dialysis centers located in 12 countries outside the United States.

Further, the company provides acute inpatient dialysis services in approximately 900 hospitals and related laboratory services in the United States. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was founded in 1994 and is headquartered in Denver, Colorado.

$10 Billion in 198,000+ 2,500+ US Market Cap Patients Clinics

$11 Billion in 13 Countries 70,800+ Annual Revenues Served Employees

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 10 LOCATION OVERVIEW DAVITA DIALYSIS OF GARY, IN

According to the 2010 census, Gary has a total area of 57.18 square miles of which 49.87 square miles (or 87.22%) is land and 7.31 square miles (or 12.78%) is water. Gary is "T" shaped, with its northern border on Lake Michigan. At the northwesternmost section, Gary borders Hammond and East Chicago. , its easternmost neighborhood, borders Lake Station and Portage. Gary's southernmost section borders Griffith, Hobart, Merrillville, and Ross. Gary is about 40 miles (64 km) from the Chicago Loop.

The economy of Gary, IN employs 26k people. The largest industries in Gary, IN are Health Care & Social Assistance (5,250 people), Manufacturing (3,333 people), and Retail Trade (2,925 people), and the highest paying industries are Utilities ($61,319), Agriculture, Forestry, Fishing & Hunting, & Mining ($45,114), and Manufacturing ($44,950). The highest paid jobs held by residents of Gary, IN, by median earnings, are Legal Occupations ($115,556), Architecture & Engineering Occupations ($86,641), and Computer & Mathematical Occupations ($61,250).

87% of the population of Gary, IN has health coverage, with 28.2% on employee plans, 35.7% on Medicaid, 13.1% on Medicare, 9.03% on non-group plans, and 1.02% on military or VA plans.Per capita personal health care spending in the place of Gary, IN was $8,300 in 2014. This is a 4.76% increase from the previous year ($7,923). Primary care physicians in Gary, IN see 1505 patients per year on average, which represents a 1.07% increase from the previous year (1489 patients). Compare this to dentists who see 1852 patients per year, and mental health providers who see 701 patients per year.

DEMOGRAPHICS 3-MILES 5-MILES 10-MILES

Population (2019 Est.) 49,259 143,038 428,904

Households (2019 Est.) 17,903 55,417 165,299

Household Size (2019 Est.) 2.72 2.56 2.57

Average Household Income (2019 Est.) $57,496 $57,415 $72,861

Average Household Income Growth (2019-2024 Est.) 13.77% 13.80% 13.21%

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 11 OUR TEAM NET LEASE GROUP

Jonathan Peranich | (832) 602-3383 | [email protected]

Jonathan Peranich is co-founder and managing partner of Peranich Huffman Net Lease Group. He is responsible for the leadership and day to day operations of the Company’s investment sales platform. In addition to managing the group’s marketing division, Jonathan oversees the trends analysis & capital markets underwriting of each transaction.

Inclusive of the evaluation of tax liabilities, debt structures, and arbitrage opportunities, Jonathan provides a distinct, consultative approach to PHNLG’s brokerage services based upon his client’s situational needs.

Nathan Huffman | (972) 865-7991 | [email protected]

Nathan Huffman is co-founder and managing partner of Peranich Huffman Net Lease Group. Having served 10 years as a Director of Real Estate and Tenant Rep Broker for DaVita Healthcare Partner’s Inc., Nathan overseas PHNLG’s brokerage division.

Responsible for the company’s new business development, Nathan manages the development, acquisition, and disposition of net leased medical assets for both private and institutional principals.

Steven Pelitere | (817) 869-0933 | [email protected]

Steven Pelitere is Senior Vice President at Peranich Huffman Net Lease Group. Leveraging his five years as a Tenant Rep Broker for various national medical groups, Steven oversees PHNLG’s investment sales team.

He is responsible for the acquisition & disposition of Urgent Cares, Dental Offices and Surgery Centers and leads the brokerage unit representing private clients & Diversified Statutory Trusts involved in these specific asset classes.

Jonathan Peranich | Direct: (832) 602-3383 | Email: [email protected] DaVita Dialysis of Gary, IN | Page 12 Offers should be submitted electronically to: JONATHAN PERANICH at [email protected] and include the following information:

Purchase Price Earnest Money Closing Period Other Terms Sources of Debt & Equity

ABOUT US

Peranich Huffman Net Lease Group is a privately held real estate brokerage firm specializing in single tenant net leased medical office investment sales throughout the nation.

​Our firm facilitates the purchase & sale of commercial real estate tenanted by Dialysis Operators, Freestanding Emergency Departments, and Surgery Centers. CONFIDENTIAL MEMORANDUM & DISCLAIMER

Peranich Huffman Net Lease Group (“Agent”) has been engaged as the exclusive agent for the sale of the DaVita Dialysis of Gary, Indiana (the “Property”), 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. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Peranich Huffman Net Lease Group as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. 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 or 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 thereunder 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 or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Peranich Huffman Net Lease Group.

4802 BROADWAY, GARY, INDIANA 46408 DAVITA DIALYSIS OF GARY, INDIANA 4802 BROADWAY, GARY, INDIANA 46408

NET LEASE GROUP