8727 Northwest Drive Southaven, CONFIDENTIAL OFFERING MEMORANDUM Table of Contents

Executive Summary

Investment Highlights

Tenant Overviews

Property Description

Location Overview

Lease Abstracts Executive Summary

Cushman & Wakefield / Commercial Advisors (“C&W”) has been exclusively retained by MJL Properties LLC to solicit proposals for the sale of its two tenant triple net leased Ofce Property (the “Property”) located at 8727 Northwest Drive in the Memphis suburb of Southaven, Mississippi. The property is a single story garden style medical ofce building comprising approximately 8,798 square feet. Both tenants, Schryver Medical LLC and American Testing LLC, focus on medical testing through a variety of processes and laboratory diagnostics, with each company enjoying quick access to both the Memphis MSA and additionally the Memphis International Airport for overnight delivery capability. This ofering provides an opportunity to acquire property subject to triple net leases with Schryver Medical LLC, a wholly owned subsidiary of Trident USA Health Services Company, and American Testing Lab LLC. The Property efciently utilizes the 0.71 acre tract of land with direct frontage onto Northwest Drive, one of the busiest secondary roads in Southaven due to direct access to Southaven City Hall and the main public library of Southaven. This investment ofers appreciable cash flow from a leading national medical company, plus ofers the potential for increased real estate value as leases mature.

OFFERING AT A GLANCE

OFFERING PRICE $961,050

PRICE PER SQUARE FOOT $109.24

CAP RATE 8.0%

PROPERTY ADDRESS: 8727 Northwest Drive | Southaven, MS TOTAL SQUARE FEET: 8,798 TOTAL ACREAGE: 0.71 LEASE STRUCTURE: NNN NET OPERATING INCOME: $76,890 / year 8727 Northwest Drive | Southaven, MS

Investment Highlights Quick Facts

Tenancy: The Property is currently % leased per previous building ! 1 in 7 MSA residents work in the biosciences in a metro area 100 of more than 1.35 million people measurements. The Crump Firm, a Memphis based quality architectural firm, ! Memphis is home to four (4) Fortune 500 companies – FedEx, recently measured the entire building per BOMA standards and has CADD AutoZone, International Paper and ServiceMaster generated square footages for the future. ! Memphis is located in the heart of the mid-south U.S. and is closer by truck to more major metro areas than any other city in the country and is the largest air cargo airport in North Both medical-focused tenants at the Property enjoy close proximity to major America medical companies and practices. ! About 7,000 Mid-South students graduate each year with a degree or certificate in biosciences or engineering ! More than 70,000 Memphians are employed in the city’s Location: The Memphis metro area is a national and global leader in the broad-based collection of bioscience industries with medical industry as the home to St. Jude Children’s Research Hospital which companies such as Medtronic and Smith & Nephew is pioneering research into the cures of catastrophic childhood diseases. ! Memphis is among the top 10 most afordable cities in which to operate a biomedical business, according to The Boyd Memphis is also the #2 location in the nation for the medical device industry Company, a major business consulting firm and is a leader in the latest advances in the medical industry. ! Shelby County is the 2nd-largest county in the U.S. for orthopedic device manufacturing Market: The Property is located in the high-end Memphis suburb of

Southaven, MS and is in very close proximity to Baptist DeSoto Hospital.

Lease Economics: The NNN lease structures provide prospective landlords with stable cash flows for years to come, as the two tenants are responsible for real estate taxes, insurance, and the common area expense reimbursements.

The primary tenant, Schryver, has two 2 year renewal options.

8727 Northwest Drive Southaven, MS Tenant Overview Tenant Overviews

Schryver Medical LLC

Schryver Medical LLC, a Trident USA Health Services Company, is a leading diagnostic services company that specializes in serving the post-acute care market. Each month, Schryver Medical LLC deploys experienced medical professionals and leading edge technology to provide phlebotomy, laboratory, and imaging services to tens of thousands of patients nationwide. To protect its customers and patients, Schryver Medical LLC services are reinforced by a system of compliance and continuous quality improvement.

American Testing LLC

American Testing LLC is a third party administrator for national and local companies. Consisting of multiple labs both onsite and remote, American Testing LLC provides a variety of services consisting of, but not limited to: blood testing, drug testing, shots (B12, influenza, hepatitis, and others), breath alcohol testing, hair testing, and physicals. They provide reports and specimen results for national as well as local clients. Property Description Site Plan

N

Property Details:

8727 Northwest Drive

SOUTHAVEN, MS 38671

8,798 SQUARE FEET PER CADD

0.71 ACRES

Single Story ONE STORY

1986 YEAR BUILT

2015 Utilities, HVAC, & Fire Protection Construction Details Exterior Details Interior Details YEAR RENOVATED ! Construction Type: Wood frame ! Utilities: All Available ! Site Improvements: ! Ceiling: Acoustical Tile 150’ feet on Northwest Drive with brick & wood siding ! Heating & Cooling: Package FRONTAGE ! Roofing: Gabled roof w/ asphalt ! Asphalt Parking Lot ! Walls: Painted Drywall Units shingle Fire Protection: Monitored ! Two curb cuts ! Lighting: Fluorescent C-3 (General Commercial) ! ! Foundation: Concrete Slab Alarm with Smoke Detection ZONING ! Lighting ! Flooring: Vinyl Tile, Carpet, Wood Laminate ! Landscaping Building Floor Plan Building Floor Plan

HOSPITAL LOCATIONS MAP LEGEND 1 Saint Jude Children’s Research Hospital 2 Le Bonheur Children’s Medical Center 3 Regional Medical Center at Memphis 4 University of Medical Center 5 Memphis Veterans Afairs Medical Center 6 Methodist University Hospital 7 Methodist South Hospital 8 Baptist Memorial Hospital - DeSoto 9 Delta Medical Center 10 Saint Francis Hospital Memphis 11 Baptist Memorial Hospital - Memphis 12 Baptist Memorial Hospital for Women 13 Methodist North Hospital 14 Saint Francis Hospital Bartlett 15 Methodist Le Bonheur Germantown Hospital 16 Baptist Memorial Hospital - Collierville 17 Methodist Olive Branch Hospital

SUBJECT PROPERTY 8727 Northwest Dr Location Overview

Memphis Overview MSA Population (2016) 1,340,336 Memphis Population (2016) 657,167 Memphis Employment (2016) 638,000 Memphis Unemployment (2016) 5.3% U.S. Unemployment (2016) 4.8% Key Growth Industries Logistics, Healthcare, Biomedical

Source: 2015 U.S. Census Bureau American Community Survey 5-Year Estimates

Great things about Memphis:

• Top 3rd millennial destination city (realtor.com) • 10th best place to start a business (CNN) • Among best cities to find a job (Indeed) • A top travel destination (Money Magazine) • No.1 food city in America (Food Network) • A leading city in creating technology jobs (Forbes) • AutoZone Park rated 2nd best minor league ball park (Baseball America) • named best historic hotel in U.S. (Historic Hotels of America) • named world’s best musical attraction (USA Today) • Most afordable city in America (Money Crashers) • Cost of living 14% lower than the national average (CBS News) Memphis, TN Location Overview

Crosstown Concourse: A $200 million America’s Distribution Center redevelopment project sitting between mid- town and I-40 and totaling 1.1 million square Memphis has earned its reputation as “America’s Distribution Center.” feet. This project will create 800 new jobs With its natural geographic advantage, its deep pool of skilled and generate more than $37 million in new logistics workers, and its intermodal edge, our core competency in wages annually upon completion in late 2017. Memphis is distribution and logistics. Home of the world headquarters and hub of shipping powerhouse FedEx, over 400 ServiceMaster: Moved its corporate HQ to trucking companies and major operations of UPS and USPS, Memphis Memphis from Illinois in 2008, adding 150 is uniquely positioned to provide the most cost efective distribution corporate positions to their existing 2,315 and logistics services in the country. employees in Memphis. In 2016, ServiceMaster announced plans to consolidate Did you know: operations in downtown Memphis’ Peabody • Access to the world through the FedEx Express world SuperHUB. Place which will be renovated prior to their • Memphis' workforce has a higher percentage of logistics workers relocation in early 2018. than any other metropolitan area in the country • Five class-one railroads ofer service in Memphis. St. Jude Expansion: A $9 billion project expected to double the hospital’s economic impact in the community. The combined economic impact of ALSAC and St. Jude is over 2.5 billion dollars per year. At the end of the expansion, that dollar amount will be between 3.5 billion and 4 billion dollars per year and promises to create 1,800 new jobs.

Major Economic Growth Advanced healthcare and educational facilities also drive the local economy. Both are anchored by the massive 14,000-acre downtown Memphis Medical Center district. More than 40,000 are employed in this district and 10,000 students attend universities in the area. Rapid advancements in biomedical research have positioned the medical center for growth. Expansions to its existing facilities are generating additional demand for housing and amenities. Memphis was ranked among Forbes’ “15 U.S. Cities with Emerging Downtowns” list in 2016. Memphis Medical Center District

Memphis’ thriving downtown medical industry and Memphis Medical Center district includes: • St. Jude Children’s Research Hospital • Le Bonheur Children’s Hospital • University of Tennessee Health Science Center • Memphis Mental Health Institute • Southern College of Optometry • Methodist University Hospital • Regional Medical Center of Memphis • Veterans Afairs Medical Center • Shelby County Health Department • HealthSouth • Baptist College of Health Sciences • Hamilton Eye Institute St. Jude Children’s Research Hospital • UT College of Pharmacy • UT Cancer Research Institute Numerous expansion projects recently completed or underway in the • Regional Forensic Center at Memphis Medical Center district reflect the viability of the area, with some of the largest projects listed as follows: • St. Jude Expansion / $9BB / Part of the “Bicentennial Gateway Project” • Radiological Science Space Center / $94.1M / Renovation of existing space in the Richard C. Shadyac/ALSAC building • Regional Medical Center at Memphis (The Med) / $30M / Renovation and expansion of emergency room and upgrades to patient rooms • St. Jude Medical Tower / $190M / New tower for replacement surgical department and intensive care unit • UTHSC Translational Science Research Building / $36M / Construction of new 135,000 SF, 4-story medical sciences research building for UT College of Medicine • UT Baptist Research Park / $450M / Construction of 1.3 million SF for research labs, support and ofces; incubator labs and ofces • Veterans Administration Hospital / $44M / Building 1A improvements, upgraded HVAC, expansion and modernization of suites • Methodist University Hospital / $280 M / 430,000 SF tower and outpatient building for patient rooms, operating rooms, surgical suites, Medical/Pinch imaging center, and a new outpatient services building District Education Location Overview

Shelby County operates the largest school system in Tennessee. It ranks among the Top 20 school systems in the nation, and was one of only four nationally awarded a $90 million grant from the Bill & Melinda Gates Foundation. The Memphis populous encompasses approximately 70,000 students enrolled in 30+ institutions of higher learning. The largest institutions include The (20,585 students), SW Tennessee Community College (13,362), NW Mississippi Community College (7,894), University of TN Health Science Center (2,815), (2,046), and Christian Brothers University (1,410). Of the approximate 7,500 graduates each year from area colleges, 30% have earned bioscience-related degrees. Among its many accolades, The University of Memphis’ Cecil C. Humphreys School of Law boasts the highest passing rate for the Bar Exam in the state, and its Fogelman College of Business and Economics was listed as one of the “Best Business Schools” in the Southeast by the Princeton Review (2016). It was also named to the President’s Higher Education Community Service Honor Roll by the Corporation for National and Community Service in 2013. The university faculty numbers 2,400 and the school’s University of Memphis economic impact is estimated at $1.4 billion annually.

Arts / Culture / Recreation

Culturally-rich Memphis is referred to as “the home of the Blues and the birthplace of Rock ‘n Roll.” Among its many featured attractions are Elvis Presley’s Graceland home, , The Rock ’n Soul Museum, , Mud Island, The National Civil Rights Museum, The , The Pink Palace Museum, and The Peabody Hotel. Numerous sports complexes include:

• FedEx Forum, home to (NBA) and University of , 18,199 indoor capacity. • The Liberty Bowl Memorial Stadium, 65,000-seat outdoor stadium • AutoZone Park, home to the Memphis Redbirds, 14,384 seats • Team USA Stadium, 5,000-seat USA Olympic baseball stadium • Memphis International Motorsports Park FedEx Forum • Mike Rose Soccer Complex • Bass Pro Shop & Hotel, formerly The Pyramid Arena, opened April 2015. Location Overview Memphis International Airport

Memphis International Airport (MEM) is the world’s second busiest cargo facility and the single most important economic investment in the Memphis Region. In 2016, the airport served an average of 140,000 passengers each month and had an estimated annual economic impact of $23.3 billion and earnings of $5.3 billion. Memphis International supports 25 percent of jobs within the city of Memphis.

The airport is planning to spend $214 million over the next five years on a transformative project that will build all-new passenger facilities in the airport’s oldest concourse. The multiphase plan, which should begin in early 2018, includes the addition of moving walkways, wider corridors, larger boarding areas, higher ceilings and natural lighting.

The presence of FedEx makes MEM and FedEx major drivers of the local economy, and thanks to the massive domestic and international operations of FedEx, Memphis Memphis International Airport was the largest air-cargo airport in the U.S. in 2016 and statistically tied for first in the world (behind Hong Kong International Airport).

Transportation Infrastructure

Seven federal highways and two interstates (I-55 and I-40) traverse Memphis, while I-240 encircles the city. The planned Canada-to-Mexico Interstate 69 will also cross Memphis. There are 300 motor freight carriers, and InterCity bus service (MATA). The Port of Memphis is the largest still-water harbor on the . The Port is the national leader in inland foreign import tonnage, the 2nd-largest inland port on the lower Mississippi, and the 5th-largest inland port in the United States.

Memphis is the largest rail center in the nation and one of only a few cities served by five Class I rail systems: Union Pacific/ Southern Pacific, Burlington Northern Santa Fe (BNSF), CSX Corporation, Norfolk Southern, and Canadian National Railroad (CN), who completed a $100M expansion to the Harrison Yard located within President’s Island near downtown Memphis in 2009. These upgrades made the Harrison Yard CN’s second largest classification yard in the country.

Memphis Bridge Phase I of the Regional Rail Program (MATATRAC) has commenced, and Amtrak serves national rail travelers. Location Overview Southaven Overview Entertainment

Because of its convenient location, afordability, excellent schools, quality health care, Southaven is proud to be the home of The which is a safe environment and progressive city government, Southaven has experienced strong 200,000 square foot facility that hosts more than 1,000 events each year. residential and business growth since its incorporation in 1981. The current The Landers Center is the home site of the Memphis Grizzlies D-League population is just over 52,000. More than 3,000 new jobs have been added since franchise (beginning 2017-2018 season) and the Mississippi RiverKings 1997, and there are currently more than 1,500 businesses. Median income is the (formerly the Memphis RiverKings), a professional hockey team. The highest in the state. Nearly 100 churches representing dozens of diferent RiverKings play in the Central Hockey League and are perennial playof denominations and family activities provide plenty of opportunities to worship and contenders. They host 32 home games a year from October through March play together. Civic and service organizations bring the arts and humanities into (not including playofs), with family friendly activities each game, from Elvis practice throughout the community. An average of 7.4 new families per day find impersonators to indoor fireworks displays. The Landers Center has also DeSoto County is a safe and friendly place to call home. been the venue for the Gulf South NCAA Division II, College Basketball Men’s and Women’s Championship tournament, and numerous concerts, family shows and seasonal attractions. Demographics Southaven Overview MSA Population 1,340,336 Recreation Southaven Population 52,589 The City of Southaven is known for it’s excellent parks system. Southaven Median Age 34.6 is home to 20 neighborhood parks with more than 200 acres of parkland. Number of Households 19,098 Snowden Baseball Complex is the nation’s largest youth baseball facility Median Household Income $56,187 and hosts several major baseball tournaments from across the United States. Greenbrook Softball Complex is home to multiple softball leagues Source: 2015 U.S. Census Bureau American Community Survey 5-Year Estimates and is equipped with restroom facilities and concessions. The Cherry Valley Complex includes three football fields, two soccer fields, a dirt bike track, restrooms, a concession stand, playground equipment, a picnic shelter and Government walking trails. Central Park is the City’s newest park. Its 155 acres include a 20-acre lake for fishing and small watercraft, walking trails, and picnic The professionals and elected representatives in city government are the visionaries areas. In the future, camping areas will be added. Stateline Road Park is behind the growth and prosperity in the City of Southaven. Their people-friendly home to five soccer fields. The City’s 22 neighborhood parks ofer attitude, open door policy and willingness to help have created a positive environment playground equipment, picnic tables, grills and walking trails. Two new for businesses and residents. This positive environment has brought steady growth in recreation facilities are a multi-purpose facility, The Arena in Southaven, business development and new housing. Local government is a strong proponent for for equestrian events, dirt bike competitions and other events; and a skate parks and recreation, and citizen safety is a primary concern. park for roller hockey and skate boards. Snowden House, a renovated early 1900’s home situated between trees and gardens at , Taxes has been renovated and serves as the focal point for the city’s retirement programs and services. It also ofers a beautiful setting for receptions and When it comes to taxes, Mississippi is tax-friendly to retirees. Qualified retirement other special events income is exempted from state income tax and Social Security is not taxed, regardless of total income. Persons 65 years of age and older are exempt from ad valorem taxes up to $75,000 of the market value on their primary residence. Lease Abstract

Schryver Medical LLC, a Trident USA Health Services Tenant Company, dba Main Street Clinical Laboratory, Inc.

Premises & Square Footage 8727 Northwest Drive, Southaven, MS | SF 6,716 Lease Commencement July 1, 2015

Lease Expiration December 31, 2022 Lease Term Years Seven Lease Type NNN

Use Medical Ofce, Pathology, and Administrative Uses

Property Taxes, Insurance, Common Area Maintenance Tenant’s Responsibility

Roof & Structure, HVAC Replacement Landlord’s Responsibility

General Repairs & Maintenance, HVAC Maintenance Tenant’s Responsibility

Utilities Tenant Pays Directly $4,875.00 | $58,500.00 Monthly Rent & Annual Rent ; effective 1/1/21 $5,208.33/ $62,500 Annual NNN Rent PSF $8.71 until 12/31/20; increases to $9.31 through 12/31/22

Renewal Options Two (2) two year options per terms of lease American Testing LLC - Lease Abstract

Tenant American Testing LLC

Premises & Square Footage 8727 Northwest Drive, Southaven, MS | 2,082 SF

Lease Commencement May 1, 2017

Lease Expiration April 30, 202 2 Lease Term Years Seven Lease Type NNN

Use Medical Ofce, Medical Testing, and Administrative Uses

Property Taxes, Insurance, Common Area Maintenance Tenant’s Responsibility

Roof & Structure, HVAC Replacement Landlord’s Responsibility

General Repairs & Maintenance, HVAC Maintenance Tenant’s Responsibility

Utilities Tenant Pays Directly

$1,532.50 | $18,390 Monthly Rent & Annual Rent ; effective 5/1/20 $1,685.79/$20,229

Annual NNN Rent PSF $8.83 until 4/30/20; increases to $9.72 through 4/30/22

Renewal Options n/a Dave Curran, SIOR, CCIM Senior Vice President +1 901 273 2358 [email protected]

5101 Wheelis Drive Suite 300 Memphis, TN 38117 +1 901 366 6070 commadv.com

Independently Owned and Operated | A Member of the Cushman & Wakefield Alliance. No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any specific listing conditions imposed by our principles.