OM 820 Redd Rd. El Paso

MEDICAL OFFICE COMPLEX 820 REDD RD EL PASO, TX 79912

FOR SALE OFFERING MEMORANDUM

SERGIO TINAJERO KW COMMERCIAL EL PASO COMMERCIAL DIRECTOR 915.422.2242 O C O M M E R C I A L 915.886.8608 M 6006NMESA ST STE 1100 EACH KELLER WILLIAMS OFFICE IS INDEPENDENTLY OWNED AND OPERATED [email protected] EL PASO, TX 79912 WEST EL PASO SURGICAL CENTER TENANT Phycians West Surgical Center LLC is managed and majority owned by HCA HEALTHCARE a publicly trading company in the NYSE under HCA, one of the nation’s leading providers of healthcare services, HCA Healthcare owns and oper- ates 185 hospitals and 2,000 sites of care including surgery centers, free-standing emergency rooms, urgent care centers and physician clinics located in 21 states and the United Kingdom. They are dedicated to providing healthcare services that meet each community's local healthcare needs. They seek to integrate various services to deliver patient care with maximum quality and efficiency. Their approach includes focusing on quality; streamlining operations; sharing technology, equipment, and personnel where appropriate; and using economies of scale when contracting for medical supplies and administrative services.

HCA Healthcare uses its vast clinical knowledge, innovative operating strategies, scale and stability to transform healthcare and help communities thrive. By conduct- ing large-scale clinical research with partners including Harvard Pilgrim Institute and the CDC, and using data from more than 31 million patient encounters each year, HCA Healthcare has published several medical studies in peer-reviewed journals, including the groundbreaking REDUCE MRSA study published in the New England Journal of Medicine. Research and clinical protocols developed by HCA Healthcare physicians, nurses, pharmacists, data scientists, and others are helping develop new standards of care and saving lives in hospitals across the country.

The HCA Healthcare Ethics and Compliance Program help ensure that everyone associated with HCA Healthcare-affiliated facilities reflects the Mission and Values Statement, the Fundamental Commitment to Stakeholders and other standards outlined in the Code of Conduct. Taken together, these approaches to the operation of affiliated facilities set ambitious standards for how they treat their patients, the physicians who practice in affiliated facilities, one another and other groups with whom they interact. If everyone associated with an HCA Healthcare-affiliated facility reflects these standards in their activities, it will ensure that they provide compas- sionate, efficient, quality, patient-focused healthcare at all times.

West El Paso SURGICAL CENTER SUN CITY ORTHOPAEDIC & HAND SURGERY SPECIALISTS TENANT Sun City Orthopaedic & Hand Surgery Specialists is located in El Paso, Texas. Being based in this great city, which literally translates to “the pass,” has given their team of skilled orthopaedic surgeons the ability to treat patients from all around the Southwest. Patients come to their practice from West Texas, New Mexico, and the Southwest area of the country at large. Their easy-to-reach locations mean that nothing stands in the way of their patients when it comes to living a happy, pain-free life. They have been serving the Southwest area since 2012. Their easy-to-access locations in El Paso, Texas has given their team the ability to treat a variety of patients from the surround- ing areas throughout the years. Their board-certified team is made up of experienced general orthopaedic surgeons who specialize in common and uncommon issues as well as sports medicine, occupa- tional medicine, and total joint replacement.

Since their team is made up of many experienced orthopaedic surgeons, they are able to treat the entire spectrum of musculoskeletal issues. Because of their vast experience, the Sun City Orthopaedic & Hand Surgery Specialists team provides treatment options that suit the needs of their patients. They also handle issues dealing with sports medicine, workers' compensation, treatment of osteoporosis, EMG/NCS, and musculoskeletal medicine. Their general orthopaedic surgeons specialize in hips, knees, shoulders, reconstruction, hand, wrist, and elbow surgery, general orthopaedics, arthroscopy, and total joint replacement.

Orthopaedic surgery deals with injuries, disorders, or diseases of the body’s musculoskeletal system. The Sun City Orthopaedic team spe- cializes in all aspects of orthopaedic surgery. It’s important for patients to know that type of surgery can be categorized as “elective surgery.” This means that, although the surgery is beneficial for the patient, it does not have to be done at any particular time. This free- dom allows patients to schedule their surgery at their leisure. In many instances, surgery won’t be necessary. There are various treatment options available, such as rehabilitation and medications that can restore your musculoskeletal system. If surgery becomes a necessity, you can rest easy knowing it won’t be required as an emergency. PERFORMANCE PHYSICAL THERAPY OF EL PASO TENANT Performance Physical Therapy of El Paso, PLLC is a physical and rehabilitation clinic located in El Paso's Westside of town specializing in allopathic and osteopathic medicine targeting in healing the body with minimal use of medicine with an emphasis focusing on preventa- tive care. Physical medicine and rehabilitation work in enhancing and restoring basic functional ability and quality of life for those people with serious physical impairments or disabilities. Their specialization is in trying to restore optimal function for people that have injuries to muscles, tissues, bones and the nervous system.

Physical medicine and rehabilitation also referred to as rehabilitation medicine, is the medical specialty concerned with diagnosing, evaluating, and treating patients with physical disabilities. These disabilities may arise from conditions affecting the musculoskeletal system such as neck and back pain, sports injuries, or other painful conditions affecting the limbs, such as carpal tunnel syndrome. Alternative- ly, the disabilities may result from neurological trauma or disease such as spinal cord injury, head injury or stroke. A physician certified in physical medicine and rehabilitation is often called a physiatrist.

The primary goal of the physiatrist is to achieve maximal restoration of physical, psychological, social and vocational function through comprehensive rehabilitation. Pain management is often an important part of the role of the physiatrist. For diagnosis and evaluation, a physiatrist may include the techniques of electromyography to sup- plement the standard history, physical, x-ray and laboratory examina- tions. The physiatrist has expertise in the appropriate use of thera- peutic exercise, prosthetics (artificial limbs), orthotics and mechanical and electrical devices PROPERTY INFORMATION

PROPERTY 820 REDD RD, ADDRESS: El Paso, TX 79912

PROPERTY ID: C34099912305475 C34099912305350 C34099912305450

TAX: $88,889.19 PERFORMANCE PHYSICAL THERAPY OF EL PASO LOT AREA: 2.58 AC

ZONING: C1 C West El Paso SURGICAL CENTER YEAR BUILT: 2015

BLDG AREA: 22,600 SF

PROPERTY DEMOGRAPHICS TRAFFIC VOLUME

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES STREET: TRAFFIC PER DAY

2019 TOTAL POPULATION: 16,432 87,113 149,338 N RESLER DR: 25,458 P/DAY POP GROWTH 2019-2024 +1.1% +1.13% +2.11% REDD RD: 30,788 P/Day AVERAGE AGE: 37 37 36 2019 TOTAL HOUSEHOLDS: 5,443 30,828 51,797 2019 MEDIA HOUSEHOLD INCOME: $75,507 $68,696 $57,270 MEDIAN HOME VALUE: $175,668 $186,694 $180,902

The information herein contained sometimes will includes potential and projected income and expenses data that are used only to give an idea of the potential of the property and it is provided solely to assist you in evaluating the above mentioned described.Although there is no reason to doubt the accuracy of this information, no representation or warranty either expressed or implied, is made as to the accuracy, completeness, or adequacy of this information.All offerings are subject to prior sale, lease or withdrawal from the market without notice. FINANCIAL INFORMATION:

RENT ROLL Landlord Suite Tenant Commencement Expiration Size Sq. Ft. Rent Month Rent Year Lease Type Renewal Options Lease Increases Responsibilities A Performance PT of El Paso 6/1/2017 5/30/2027 4,000 $ 9, 000.00 $ 108,000.00 NNN None 2 options to renew of 5-years each The lesser of 1% per year of annual CPI BSun City Orthopaedic & Hand Surgery 12/6/2018 12/30/2029 6,100 $ 13 ,725.00 $ 164,700.00 NNN None 2 options to renew of 5-years each The lesser of 1% per year of annu al CPI C West El Paso Surgical Center 12/6/2018 12/30/2029 12,600 $ 37 ,117.50 $ 445,410.00 NNN None 2 options to renew of 5-years each The lesser of 1% per year of annual CPI 22,700 $ 59 ,842.50 $ 718,110.00

OFFERING SUMMARY BUILDING 1 - Performance PT of El Paso

820 Redd Rd. Rentable Square Feet 4,000 El Paso, TX 79912 Rent Adjustment The lower of 1% per year or CPI escallation Renewal Options 2 five-year options Price $10, 260,000.00 Commencement Date June 1, 2017 Annual Rent $108,000.00 Annual Income $ 718 ,110.00 Annual Expenses None Cap Rate 7.00% Building Size 22,700 Sq. Ft. Lot Size BUILDING 2 - Sun City Orthopaedic & Hand Surgery Zonning 1.92 Acres C1 Year Built Shell 2015 Rentable Square Feet 6,100 Year Built Improvements 2017 and 2018 Rent Adjustment The lower of 1% per year or CPI escallation Renewal Options 2 five-year options Commencement Date December 6, 2018 Annual Rent $164,700.00 Website www.suncityorthoandhand.com REDD RD

BUILDING 3 - West El Paso Surgical Center

Rentable Square Feet 12,600 Rent Adjustment The lower of 1% per year or CPI escallation Renewal Options 2 five-year options Commencement Date January 6, 2018 Annual Rent $445,410.00 Website www.westelpasosurgicalcenter.com www.healthcrest.com

The information herein contained sometimes will includes potential and projected income and expenses data that are used only to give an idea of the potential of the property and it is provided solely to assist you in evaluating the above mentioned described.Although there is no reason to doubt the accuracy of this information, no representation or warranty either expressed or implied, is made as to the accuracy, completeness,or adequacy of this information.All offerings are subject to prior sale, lease or withdrawal from the market without notice. FINANCIAL INFORMATION:

EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS INVESTMENT OVERVIEW Strong Tenant The subject property is 22,700 Sq. Ft. medical development that is compressed of 3 stand-alone buildings leased to True NNN with zero landlord responsibilities 3 tenants that include a physical therapy practice, and orthopedic practice and a surgical center. All 3 buildings were constructed in 2015 on the shells and in 2017 and 2018 on the interior improvements. All leases are true NNN with Surgical center and medical offices zero landlord responsibilities. Great west location The property is located El Paso's Westside of town on busy Redd Rd. between Westwind Dr. and Resler Dr. and just 5 minutes away from the Hospitals of Providence and Texas Tech Campus 5 minutes away from Interstate-10. The building sits across from Franklin High School and its surrounded by estab- lished residential, commercial and medical developments. The Hospitals of Providence Transmountain Campus and 5 minutes away from Interstate-10 the Texas Tech Physicians of El Paso Campus are located 4.2 miles away from this facility. High population density with over 87,000 residents within a 3-mile radius El Paso is a city and the county seat of El Paso County, Texas, United States, in the far western part of the state. The 2018 population estimate fo the city from the U.S. Census was 682,669 making it the 22nd largest city in the United States. Its metropolitan area covers all of El Paso and Hudspeth counties in Texas, and has a population of 840,758. El Paso stands on the Rio Grande across the Mexico-United States border from Ciudad Juarez, the most populous city in the Mexican state of Chihuahua with 1.4 million people. Las Cruces, in the neighboring U.S. state of New Mexico, has a population of 215,579. On the U.S. side, the El Paso metropolitan area forms part of the larger El Paso-Las Cruces combined statistical area, with a population of 1,060,397.

Bi-nationally, these three cities form a combined international metropolitan area sometimes referred to as the Paso del Norte or the Borderplex. The region of 2.5 million people constitutes the largest bilingual and binational workforce in the Western Hemisphere. The city is home to three publicly traded companies, and former Western Refining, now Andeavor as well as home to the Medical Center of the Americas, the only medical research and care provider complex in West Texas and Southern New Mexico, and the University of Texas at El Paso, the city's primary university.

The city hosts the annual Sun Bowl college football postseason game, the second oldest bowl game in the country. El Paso has a strong federal and military presence. William Beaumont Army Medical Center, Biggs Army Airfield, and Fort Bliss call the city home. Fort Bliss is one of the largest military complexes of the United States Army and the largest training area in the United States. Also headquartered in El Paso are the DEA domestic field division 7, El Paso Intelligence Center, Joint Task Force North, United States Border Patrol El Paso Sector, and the U.S. Border Patrol Special Operations Group.

In 2010 and 2018, El Paso received an All-America City Award. El Paso ranked in the top three safest large cities in the United States between 1997 and 2014,[15] including holding the title of the safest city between 2011 and 2014.

FRANKLIN N RESLER DR HIGH SCHOOL

WESTWIND DR

REDD RD

ADVANCE FRANKLIN EL PASO DENTAL MEDICAL WELLNESS & SUBJECT PROPERTY CARE CENTER HEALTHCARE

WESTSIDE FAMILY MEDICINE

CONNOR FAMILY DENTISTRY DISCLAIMER

ALL MATERIALS AND INFORMATION RECEIVED OR DERIVED FROM KW COMMERCIAL ITS DIRECTORS, OFFICERS, AGENTS, ADVISORS, AFFILIATES AND/OR ANY THIRD PARTY SOURCES ARE PROVIDED WITHOUT REPRESENTATION OR WARRANTY AS TO COMPLETENESS , VERACITY, OR ACCURACY, CONDITION OF THE PROPER- TY, COMPLIANCE OR LACK OF COMPLIANCE WITH APPLICABLE GOVERNMENTAL REQUIREMENTS, DEVELOPABILITY OR SUITABILITY, FINANCIAL PERFORMANCE OF THE PROPERTY, PROJECTED FINANCIAL PERFORMANCE OF THE PROPERTY FOR ANY PARTY’S INTENDED USE OR ANY AND ALL OTHER MATTERS. NEITHER KW COMMERCIAL ITS DIRECTORS, OFFICERS, AGENTS, ADVISORS, OR AFFILIATES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO ACCURACY OR COMPLETENESS OF THE MATERIALS OR INFORMATION PROVIDED, DERIVED, OR RECEIVED. MATERIALS AND INFORMATION FROM ANY SOURCE, WHETHER WRIT- TEN OR VERBAL, THAT MAY BE FURNISHED FOR REVIEW ARE NOT A SUBSTITUTE FOR A PARTY’S ACTIVE CONDUCT OF ITS OWN DUE DILIGENCE TO DETERMINE THESE AND OTHER MATTERS OF SIGNIFICANCE TO SUCH PARTY.

KW COMMERCIAL WILL NOT INVESTIGATE OR VERIFY ANY SUCH MATTERS OR CONDUCT DUE DILIGENCE FOR A PARTY UNLESS OTHERWISE AGREED IN WRITING. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. ANY PARTY CONTEMPLATING OR UNDER CONTRACT OR IN ESCROW FOR A TRANSACTION IS URGED TO VERIFY ALL INFORMATION AND TO CONDUCT THEIR OWN INSPECTIONS AND INVESTIGATIONS INCLUDING THROUGH APPROPRIATE THIRD-PARTY INDEPENDENT PROFESSIONALS SELECTED BY SUCH PARTY. ALL FINANCIAL DATA SHOULD BE VERIFIED BY THE PARTY INCLUDING BY OBTAINING AND READING APPLICABLE DOCUMENTS AND REPORTS AND CONSULTING APPROPRIATE INDEPENDENT PROFESSIONALS. KW COMMERCIAL MAKES NO WARRANTIES AND/OR REPRESENTATIONS REGARDING THE VERACITY, COMPLETENESS, OR RELEVANCE OF ANY FINANCIAL DATA OR ASSUMPTIONS. KW COMMERCIAL DOES NOT SERVE AS A FINANCIAL ADVISOR TO ANY PARTY REGARDING ANY PROPOSED TRANSACTION. ALL DATA AND ASSUMP- TIONS REGARDING FINANCIAL PERFORMANCE, INCLUDING THAT USED FOR FINANCIAL MODELING PURPOSES, MAY DIFFER FROM ACTUAL DATA OR PERFORMANCE. ANY ESTIMATES OF MARKET RENTS AND/OR PROJECTED RENTS THAT MAY BE PROVIDED TO A PARTY DO NOT NECESSARILY MEAN THAT RENTS CAN BE ESTAB- LISHED AT OR INCREASED TO THAT LEVEL. PARTIES MUST EVALUATE ANY APPLICABLE CONTRACTUAL AND GOVERNMENTAL LIMITATIONS AS WELL AS MARKET CON- DITIONS, VACANCY FACTORS AND OTHER ISSUES IN ORDER TO DETERMINE RENTS FROM OR FOR THE PROPERTY.

LEGAL QUESTIONS SHOULD BE DISCUSSED BY THE PARTY WITH AN ATTORNEY. TAX QUESTIONS SHOULD BE DISCUSSED BY THE PARTY WITH A CERTIFIED PUBLIC ACCOUNTANT OR TAX ATTORNEY. TITLE QUESTIONS SHOULD BE DISCUSSED BY THE PARTY WITH A TITLE OFFICER OR ATTORNEY. QUESTIONS REGARDING THE CONDITION OF THE PROPERTY AND WHETHER THE PROPERTY COMPLIES WITH APPLICABLE GOVERNMENTAL REQUIREMENTS SHOULD BE DISCUSSED BY THE PARTY WITH APPROPRIATE ENGINEERS, ARCHITECTS, CONTRACTORS, OTHER CONSULTANTS AND GOVERNMENTAL AGENCIES. ALL PROPERTIES AND SERVICES ARE MAR- KETED BY L.A. WESTSIDE IN COMPLIANCE WITH ALL APPLICABLE FAIR HOUSING AND EQUAL OPPORTUNITY LAWS

SERGIO TINAJERO KW COMMERCIAL EL PASO COMMERCIAL DIRECTOR 915.422.2242 O C O M M E R C I A L 915.886.8608 M 6006NMESA ST STE 1100 EACH KELLER WILLIAMS OFFICE IS INDEPENDENTLY OWNED AND OPERATED [email protected] EL PASO, TX 79912 INFORMATION ABOUT EQUAL HOUSING BROKERAGE SERVICES OPPORTUNITY TEXAS LAW REQUIRES ALL REAL ESTATE LICENSEES TO GIVE THE FOLLOWING INFORMATION ABOUT BROKERAGE SERVICES TO PROSPECTIVE BUYERS TENANTS, SELLERS AND LANDLORDS. 11-2-2015 TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER'S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker's own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client's questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner,usually in a written listing to sell or property management agreement. An owner's agent must perform the broker's minimum dutiesabove and must inform the owner of any material information about the property or transaction known by the agent, includinginformation disclosed to the agent or subagent by the buyer or buyer's agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through awritten representation agreement. A buyer's agent must perform the broker's minimum duties above and must inform the buyer of anymaterial information about the property or transaction known by the agent, including information disclosed to the agent by the seller orseller's agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the writtenagreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold orunderlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner andbuyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose: * that the owner will accept a price less than the written asking price; * that the buyer/tenant will pay a price greater than the price submitted in a written offer; and * any confidential information or any other information that a party specifically instructs the broker in writing not todisclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent thebuyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker's duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation foryou to use the broker's services. Please acknowledge receipt of this notice below and retain a copy for your records.

Keller Williams Realty 9001181 [email protected] 915.603.5293 Broker Firm Name License No. Email Email Peggy Oxford 0485649 [email protected] 915.603.5293 Designated Broker of Firm License No. Email Email Sergio Tinajero 486273 [email protected] 915.422.2242 C O M M E R C I A L Associate’s Name License No. Email Email

6006 N. Mesa Ste 1100 I El Paso, TX 79912 I 915.603.5293

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov Buyer/Tenant/Seller/Landlord Initials Date Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLoqix.com IABS 1-0