IASIS Healthcare Urgent Care 5360 South 2700 West | Salt Lake City, Utah 84118

Subject Property Rendering

Offering Memorandum IASIS Healthcare Urgent Care 5360 South 2700 West | Salt Lake City, Utah 84118

Brand New Construction | 3% Annual Rent Increases | Dominant Healthcare System Tenant Offered Exclusively by

Toby Scrivner Senior Director Confidentiality and Restricted Use Agreement [email protected] This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your P: +1 918.494.2690 consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM Jeff Matulis may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior Senior Director written authorization and consent of SJC. [email protected] P: +1 918.494.2690 This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience Grant Wilkins Associate Director of parties who may be interested in the Property. Such information is not all inclusive and is not represented to [email protected] include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has P: +1 918.494.2690 not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/ Colin Cornell or financial information contained herein are qualified in their entirety by reference to the actual documents and/ Associate [email protected] or financial statements, which upon request may be made available. An interested party must conduct its own P: +1 918.494.2690 independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. Teresa Coleman Associate The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to [email protected] negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, P: +1 918.494.2690 where is, and with all faults, without representation or warranty of any kind except for any customary warranties of Christian Vaughan title. Analyst [email protected] BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you P: +1 918.494.2690 have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own Becca Kirby Sr. Marketing Specialist without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you [email protected] will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself P: +1 918.494.2690 and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from In Association With: and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/ Gill Warner or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to Utah Broker #5481029-PBOO any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, Stan Johnson Company but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be 6120 South Yale Avenue | Suite 300 required to post a bond when obtaining such relief. Tulsa, Oklahoma 74136 P: 918.494.2690 stanjohnsonco.com Table of Contents

Section 1: About the Investment

Pricing & Executive Summary...... 5 The Offering...... 6 Investment Highlights ...... 7

Section 2: About the Property Salt Lake City, UT

Lease Abstract & Rent Schedule...... 9 Cash Flow Model...... 10 Short Term Acute Care Market Study ...... 11 Site Plan ...... 12 Subject Property Renderings...... 13 Floor Plan...... 14

Section 3: About the Tenant

Tenant Overview...... 16 Steward Health Care & IASIS Merger Article ...... 20

Section 4: About the Location

Location Overview...... 22 Aerial Map...... 23 Surrounding Medical Tenants...... 24 Demographics...... 25 Section One About the Investment IDAHO WYOMING Offering Price: $2,302,109

Cap Rate: 5.50%

Executive Summary Salt Lake City, UT

Jordan Valley Medical Tenant/Guarantor: Center, LP Interest: Fee-Simple 5360 South 2700 West Location: Denver, CO Salt Lake City, UT Parcel Size: 0.71 Acres Built: 2017 COLORADO RBA: 4,522 SF Commencement: 01/01/2018 (estimated) Initial Term: 10 years Expense NNN Structure: Rental Increases: 3.00% annually Current Rent: $126,616 ($28.00 psf)

ARIZONA

NEW MEXICO

IASIS Healthcare Urgent Care • Salt Lake City, UT 5 The Offering

Stan Johnson Company is pleased to exclusively offer for sale to qualified investors the 4,522 square-foot medical office building, IASIS Urgent Care, located at 5360 South 2700 West, Taylorsville, UT (the “Property”).

The offering is comprised of an approximate 0.71 acre plot, along with the fee-simple ownership rights to a medical office building used for urgent care purposes, that is 100% leased by Jordan Valley Medical Center, LP. The newly constructed facility has a brand new ten (10) year base term with three (3), five (5) year options to renew. The lease features rare, three percent (3.0%) annual rental increases, and a NNN expense structure, with landlord responsibilities limited to roof, structure, and parking.

Situated with frontage on 2700 South (+/- 16,945 VPD), the Property sits adjacent to Interstate 215 (+/- 123,245 VPD) and offers easy access to downtown Salt Lake City (+/- 12 miles) via I-215, and I-80. Strategically located only 12 miles south of Salt Lake City, the Property benefits from one of the most stabilized economies in the country. Salt Lake City is home to more than 20,000 businesses and boasts an unemployment rate of 3.4% compared to the national average of 4.9% as of June 2016. According to Forbes, Salt Lake City is ranked the “#1 City Poised to Become Tomorrow’s Tech Mecca” while ZipRecruiter called Salt Lake City the “6th Best Job Market for New College Graduates.”

Furthermore, the Property benefits from dense and affluent demographics, boasting an average household income over $70,438 within a 5-mile radius and a population exceeding 390,030. Jordan Valley Medical Center is a first-class community hospital featuring 171 beds. The group employs more than 691 full-time employees, making it the third-largest employer in the area. IASIS Healthcare Holdings is the general partner of Jordan Valley Medical Center, and is rated B2 by Moody’s Investor Service (Jan 2017). Most recently, IASIS Healthcare was acquired by Steward Health Care and makes Steward Health Care the largest private for-profit hospital operator in the country with 36 hospitals in 10 states. Cerberus Capital Management, LP, one of the world’s leading SOUTHEAST FAÇADE private investment firms, is the majority shareholder in Steward Health Care, LLC. Subject Property

TAYLORSVILLE MEDICAL OFFICE PROPOSED BUILDING IASIS Healthcare Urgent Care • Salt Lake City, UT 6 3D SKETCH SK 04 PROJ 16.002 DATE: 02/09/17 Subject Property Renderings Investment Highlights

Dominant Health System Tenant – Jordan Valley Medical Center, Brand New Construction – The Property is currently under the tenant, is a 183-bed community hospital that provides construction, with an estimated turnkey completion at the end of excellent healthcare for the people of southwest Salt Lake Valley. 2017. IASIS Healthcare Holdings is the general partner of Jordan Valley Premier Market – Strategically located only 12 miles south Medical Center, and is rated B2 by Moody’s Investor Service of Salt Lake City, the Property benefits from one of the most (Jan 2017). Jordan Valley Medical Center employs more than 691 stabilized economies in the country. Salt Lake City is home to full-time employees, making it the third-largest employer in the more than 20,000 businesses and boasts an unemployment rate Taylorsville area. Most recently, IASIS Healthcare was acquired of 3.4% compared to the national average of 4.9% as of June by Steward Health Care, the largest private for-profit hospital 2016. According to Forbes, Salt Lake City is ranked the “#1 City operator in the country with 36 hospitals in 10 states. Steward Poised to Become Tomorrow’s Tech Mecca” while ZipRecruiter Health Care is rated B2 by Moody's Investor Service (Apr 2016). called Salt Lake City the “6th Best Job Market for New College Strong Tenant/Guarantor Financials – The tenant/guarantor, Graduates.” Jordan Valley Medical Center, is the leading operator within Exceptional Demographics – The Property boasts strong a 7-mile radius and is producing strong revenues in excess of surrounding demographics, with approximately 390,030 people $220M, providing confidence that rent will be paid over time. living within a five-mile radius, and an average household income Long-Term, Passive Lease – The lease, estimated to commence of $70,438 within that radius. In addition, the payer mix with a Jan 1, 2018, will feature a brand new ten (10) year term, with three seven-mile radius of the Property is 70% private pay patients (as (3) five (5) year renewal options. The highly passive net lease opposed to Medicare or Medicaid). The Property is also located structure affords prospective landlords minimal responsibilities. with frontage on 2700 South (+/- 16,945 VPD), and sits adjacent to Interstate 215 (+/- 123,245 VPD) and offers easy access to Rare, Above-Market Rental Increases – Rental income shall downtown Salt Lake City (+/- 12 miles) via I-215, and I-80. increase 3.0% annually throughout the base lease term, providing a hedge against inflation.

IASIS Healthcare Urgent Care • Salt Lake City, UT 7 Section Two About the Property Lease Abstract Rent Schedule

5360 South 2700 West, Salt Lake City, Utah BEGIN END ANNUAL $/SF MONTHLY INCREASE 1/1/2018 12/31/2018 $126,616 $28.00 $10,551 N/A Tenant/Guarantor: Jordan Valley Medical Center, LP 1/1/2019 12/31/2019 $130,414 $28.84 $10,868 3.00%

5360 South 2700 West, Taylorsville (Salt Lake 1/1/2020 12/31/2020 $134,327 $29.71 $11,194 3.00% Address: City), Utah 1/1/2021 12/31/2021 $138,357 $30.60 $11,530 3.00%

Land Area (Acres): 0.71 1/1/2022 12/31/2022 $142,507 $31.51 $11,876 3.00% 1/1/2023 12/31/2023 $146,783 $32.46 $12,232 3.00% RSF: 4,522 1/1/2024 12/31/2024 $151,186 $33.43 $12,599 3.00% 1/1/2025 12/31/2025 $155,722 $34.44 $12,977 3.00% Rent Commencement 1/1/2018 (Estimated) 1/1/2026 12/31/2026 $160,393 $35.47 $13,366 3.00% 1/1/2027 12/31/2027 $165,205 $36.53 $13,767 3.00% Lease Expiration: 12/31/2027 Option 1 Base Lease Term: 10 years 1/1/2028 12/31/2028 $170,161 $ 37.6 3 $14,180 3.00% 1/1/2029 12/31/2029 $175,266 $38.76 $14,606 3.00% Annual Base Rent: $126,616 ($28.00/SF) 1/1/2030 12/31/2030 $180,524 $39.92 $15,044 3.00% 1/1/2031 12/31/2031 $185,940 $41.12 $15,495 3.00% Rent Increases: 3% Annual 1/1/2032 12/31/2032 $191,518 $42.35 $15,960 3.00%

Renewal Options: 3 five-year options at 3% annual increases Option 2 1/1/2033 12/31/2033 $1 97,26 4 $43.62 $16,439 3.00% NNN Lease Type: 1/1/2034 12/31/2034 $203,182 $44.93 $16,932 3.00%

Maintenance, repair, and replacement: roof, 1/1/2035 12/31/2035 $209,277 $46.28 $17,4 4 0 3.00% Landlord Responsibilities: structure, & parking 1/1/2036 12/31/2036 $215,555 $ 47.67 $17,9 6 3 3.00%

Use: Medical Office 1/1/2037 12/31/2037 $222,022 $49.10 $18,502 3.00% Option 3 1/1/2038 12/31/2038 $228,683 $50.57 $19,057 3.00% 1/1/2039 12/31/2039 $235,543 $52.09 $19,629 3.00% 1/1/2040 12/31/2040 $242,609 $53.65 $20,217 3.00% 1/1/2041 12/31/2041 $249,888 $55.26 $20,824 3.00% 1/1/2042 12/31/2042 $257,3 8 4 $56.92 $21,449 3.00%

IASIS Healthcare Urgent Care • Salt Lake City, UT 9 Cash Flow Model - 10 Year

1 2 3 4 5 6 7 8 9 10

PERIOD ENDING 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027

Rent $126,616 $130,414 $134,327 $138,357 $142,507 $146,783 $151,186 $155,722 $160,393 $165,205 Rent Increase - 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

NOI $126,616 $130,414 $134,327 $138,357 $142,507 $146,783 $151,186 $155,722 $160,393 $165,205 NOI Growth From - 3.00% 6.09% 9.27% 12.55% 15.93% 19.41% 22.99% 26.68% 30.48% Year 1 Cap Rate 5.49% 5.65% 5.82% 6.00% 6.18% 6.36% 6.55% 6.75% 6.95% 7.16% Avg. Cap Rate 5.49% 5.57% 5.65% 5.74% 5.83% 5.92% 6.01% 6.10% 6.19% 6.29% Cumulative ROI 5.49% 11.14% 16.96% 22.96% 29.14% 35.50% 42.05% 48.80% 55.75% 62.91%

Debt Service ($107,485) ($107,485) ($107,485) ($107,485) ($107,485) ($107,485) ($107,485) ($107,485) ($107,485) ($107,485) Cash Flow $19,131 $22,929 $26,842 $30,871 $35,022 $39,297 $43,701 $48,236 $52,908 $57,720 CF Growth From - 19.86% 40.31% 61.37% 83.07% 105.42% 128.43% 152.14% 176.56% 201.71% Year 1 Cash Return 2.77% 3.32% 3.89% 4.47% 5.07% 5.69% 6.33% 6.98% 7.66% 8.36% Avg. Cash Return 2.77% 3.05% 3.33% 3.61% 3.90% 4.20% 4.51% 4.81% 5.13% 5.45% Cumulative Cash 2.77% 6.09% 9.98% 14.45% 19.52% 25.21% 31.54% 38.52% 46.18% 54.54% Return

PURCHASE ASSUMPTIONS Annual Increases Analysis Start Date 1/1/2018 $180,000 8.00% RBA 4,522 7.18% 6.97% Initial Rent $126,616 $160,000 6.76% 6.57% 7.00% 6.38% Original Loan 6.19% 6.01% $1,611,476 $140,000 5.83% Balance 5.67% 5.50% 6.00% $120,000 Equity Basis $690,633 5.00% LTV 70% $100,000 Purchase Cap Rate 5.50% 4.00% Purchase Price $2,302,109 $80,000 3.00% $60,000

2.00% $40,000

$20,000 1.00%

$0 0.00% 1 2 3 4 5 6 7 8 9 10 Hold Year NOI Cap Rate

IASIS Healthcare Urgent Care • Salt Lake City, UT 10 Short Term Acute Care Market Study

Short Term Acute Care Hospitals Within 7 Miles of Subject Property Distance from Total Bed Gross Medicare Medicaid Other Market Hospital Name City Zip Discharges Subject Property Beds % Revenue % % % Share %

Intermountain Medical Center Murray 84107 3.4 miles 472 54% $1,845,350,033 21% 10% 69% 24,702 58.80%

Jordan Valley Medical Center West Jordan 84088 4.4 miles 275 31% $507,266,253 14% 16% 69% 10,238 24.37%

Jordan Valley Medical Center - West Valley Campus West Valley City 84120 3.5 miles 94 11% $158,278,113 14% 16% 70% 5,198 12.37%

The Orthopedic Specialty Hospital (TOSH) Murray 84107 3.9 miles 36 4% $154,196,349 18% 2% 80% 1,870 4.45%

Market Totals: 877 100% $2,665,090,748 19.02% 10.95% 70.03% 42,008 100.00%

Jordan Valley Medical Centers (Combined): 369 42% $665,544,366 14% 16% 70% 15,436 37%

* Strong private pay demos in the immediate trade area.

Gross Patient Revenue Medicare Medicaid Other Total

Intermountain Medical Center $383,699,121 $181,991,941 $1,279,658,971 $1,845,350,033

Jordan Valley Medical Center $72,852,877 $82,183,943 $352,229,433 $507,266,253

Jordan Valley Medical Center - West Valley Campus $22,162,625 $25,145,017 $110,970,471 $158,278,113

The Orthopedic Specialty Hospital (TOSH) $28,085,610 $2,637,056 $123,473,683 $154,196,349

Market Totals: $506,800,233 $291,957,957 $1,866,332,558 $2,665,090,748

Source: AHD.com

IASIS Healthcare Urgent Care • Salt Lake City, UT 11 2727 W. Frye Rd. Site Plan Chandler, AZ 85224 P 480-452-2210 F 480-907-1180

SCALE: 1:10 coaction architectural group 

IASIS Healthcare Urgent Care • Salt Lake City, UT 12 Subject Property Renderings

NORTHEAST FAÇADE

TAYLORSVILLE MEDICAL OFFICE PROPOSED BUILDING 3D SKETCH SK 03 PROJ 16.002 DATE: 02/09/17

IASIS Healthcare Urgent Care • Salt Lake City, UT 13

SOUTHEAST FAÇADE

TAYLORSVILLE MEDICAL OFFICE PROPOSED BUILDING 3D SKETCH SK 04 PROJ 16.002 DATE: 02/09/17 Floor Plan

WORK VESTIBULE 2727 W. Frye Rd., #210 ROOM 16'x8' 13' - 1 7/8" CLEAR PROCEDURE CARDIO Chandler, AZ 85224 ROOM TREATMENT 18'x7' P 480.452.2210 10'x13' 10'x13'

RECEPTION WAITING 11'x8' ROOM 14'x24'' PATIENT

CORRIDOR 1

6' - 0" 4

F EXAM H

F ROOM #1 A

10'x12' O

TRIAGE L

L 73/8" WCH

MA 10'x12' I

V 2 STATION R

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- 14'-3/8"6 CLEAR

I 0" R 12'x12' A

IN O M D " C /2 L 8 1 7 EXAM

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10'x12' N

E WCH S

E IT ROOM L

W X-RAY 5'x7' I WCH R CLEAR

0 3' - 0 5/8"

2' - 8" MIN 13'x14'-6"

U EXAM 0

ROOM #3 LAB 2

10'x12' 5'x9' H

4' - 6" 12' - 5" OFFICE O

STORAGE 9'x13' PLAN FLOOR CARE URGENT UPDATED WORK O

Y AREA 10'x6' S

12'x11' T

X-RAY ROOM ENLARGED FLOOR PLAN 3

SOIL / 5 WITH SAMSUNG GC70 EQUIPMENT JANITOR 10'x5' EXAM STAFF ROOM #4 PATIENT CORRIDOR 10'x12' CORRIDOR 5' - 0" 6' - 0"

CLEAN SUPPLY 10'x5' EXAM EXAM BREAK USABLE AREA: ROOM #5 ROOM #6 ROOM FIRE RISER 12'x10' 12'x10' 14'x10' 4,258 SF 10'x5'

SCALE: N.T.S. NOT FOR CONSTRUCTION

1. STEVE ANDERSON, CEO JVMC 2. JON BUTTERFIELD, ADMINISTRATOR JVMC 3. JOEY ABNEY, VP DESIGN, CONST. & PLAN OPERATIONS 4. LANDLORD DRAWING DATE: 06/20/2017

IASIS Healthcare Urgent Care • Salt Lake City, UT 14 Section Three About the Tenant Tenant Overview

IASIS Healthcare Founded in 1998, IASIS Healthcare is a healthcare services organization delivering high-quality, cost-effective healthcare through a broad and differentiated set of capabilities and assets, including acute care hospitals with related patient access points and a diversified and growing managed care risk platform. IASIS Healthcare began principal operations in October of 1999, in transactions arranged by the management team and Joseph Littlejohn & Levy. In 2004, Texas Pacific Group, a private equity firm, led a group of investors to acquire IASIS. Today, TPG is the single largest stockholder in IASIS.

Their business model is centered on deploying acute care expertise and managed care risk platform, either separately or on an integrated basis, in urban and suburban markets to manage population health, integrate the delivery and payment of healthcare services and ultimately expand total market opportunities within existing and new geographic markets.

IASIS Healthcare owns and operates 17 acute care hospitals, one behavioral IASIS Locations health hospital and multiple other access points in high-growth urban and suburban markets throughout the U.S., including in Arizona, Arkansas, Colorado, Louisiana, Texas and Utah. In total, they have more than 3,600 licensed beds and employ more than 13,000 dedicated professionals. #131 Key Financial and Operating Results Ranked on Consolidated revenue for the first quarter ended December 31, 2016, totaled Forbes Largest $839.9 million, an increase of 4.6% compared to $802.8 million in the prior Private American year quarter. The consolidated revenue increase for the first quarter ended Companies December 31, 2016, is comprised of 8.8% growth in premium, service and other revenue in the Company’s managed care operations and 2.0% growth in acute care revenue.

Net earnings from continuing operations for the first quarter ended December 31, 2016, totaled $2.2 million, compared to a net loss from continuing operations of $3.3 million in the prior year quarter. Adjusted EBITDA for the first quarter ended December 31, 2016, totaled $61.8 million, compared to $57.4 million in the prior year quarter.

Representative Photo

IASIS Healthcare Urgent Care • Salt Lake City, UT 16 Tenant Overview

Jordan Valley Medical Center SERVICES Jordan Valley Medical Center is a first-class community hospital that is • Emergency Medicine - 29-bed emergency department providing medical constantly growing to provide excellent healthcare for the people of the care for major emergencies and a fast track for less serious cases. southwest Salt Lake Valley. Over the past few years, the hospital has tripled • Level III NICU - Located on the second floor of the Women’s Center, this in size and recently completed a major expansion project which increased unit features 11 individual rooms, a private room for breast pumping, a its size to 183 beds. Survey data for the latest year available shows that designated area for gowning, and a transition room that allows parents to 78,772 patients visited the hospital's emergency room. The hospital had “live in” with their babies prior to being discharged. a total of 8,369 admissions. Its physicians performed 1,303 inpatient and • Heart Care - Interventional heart care including cardiac catheterization. 2,595 outpatient surgeries. Substantial investment in advanced technology • Wound Care - Advanced treatment options including hyperbaric oxygen and state-of-the-art equipment has helped the hospital attract a top-notch therapy for hard-to-heal wounds. medical staff and a team of highly-skilled nurses. The entire hospital team • Women’s Health - Caring for all stages of a woman’s life, including fertility is dedicated to providing expert medical care in a warm, family-friendly services, maternity services with labor and delivery, postpartum and environment. nursery care, breast health and gynecological services. • Men’s Health - Providing innovative treatments for urological conditions Jordan Valley Medical Center has been serving the health care needs of and prostate cancer. the Southwest Valley since 1983. This busy full-service hospital offers • Diagnostic Imaging - Advanced imaging technology including a its neighbors a wide range of medical services and advanced medical 64-slice CT Scanner, MRI, Nuclear Medicine, Digital Mammography and technologies backed by a dedicated and caring staff. Ultrasound. Jordan Valley Medical Center has many services and highlights including, • Surgical Specialty Center - Major new surgery center providing a wide emergency medical services, heart care, stroke treatment center, range of same-day surgical services including many innovative and women's health, breast care center, level III NICU, inpatient pediatric care, minimally-invasive procedures. orthopedics, sports medicine, disk replacement center and rehabilitation • Orthopedic and Rehabilitation Services - Comprehensive orthopedic services, diagnostic imaging, men's health, cancer center, acute inpatient services including total joint replacement for knees, hips and shoulders, rehabilitation unit, hyperbaric and wound care center, sleep center, vein care joint repair procedures, spine surgery and a sports medicine program. center, new vision adult substance abuse withdrawal unit, neuroscience, and Outpatient services including physical, occupational and speech physician assisted robotic surgery. therapies.

Representative Photos

IASIS Healthcare Urgent Care • Salt Lake City, UT 17 Tenant Overview

Jordan Valley Medical Center Jordan Valley Medical Center is continually prepared for surveys in order to ensure compliance with the highest levels of quality care and patient safety standards as set by Det Norske Veritas (DNV), CMS (Centers for Medicare and Medicaid Services), the Utah Department of Health and Human Services and many other regulatory, licensing and accrediting agencies. 4.4 miles

TOP ACCREDITATIONS & AWARDS Centers for Medicare and Medicaid Services - The Centers for Medicare and Medicaid Services’ (CMS) purpose is to ensure effective, up-to-date health care coverage and to promote quality care for its beneficiaries. CMS’s hospital survey process is part of the hospital provider’s agreement for Medicare and Medicaid reimbursement.

Det Norske Veritas (DNV) - DNV Healthcare offers hospital accreditation approved by the Centers for Medicare and Medicaid Services (CMS). Annual deemed status surveys are an essential component of hospital accreditation through DNV. Jordan Valley Medical Center has been accredited by DNV since July 2009.

Thomson Reuters Healthcare Advantage Award - The Healthcare Advantage Awards honor hospitals, health systems, health plans, employers, and government organizations across the United States that have used intelligent information from Thomson Reuters to improve healthcare quality, cost and access. IASIS was honored for an initiative that set out to achieve top 10 percent quality outcomes at each IASIS hospital. The strategy focuses on raising awareness of metrics among clinicians and integrating best practices into the overall delivery of care. With a comprehensive business intelligence system that equips its leaders with broad data access, the organization can prioritize clinical goals to continually improve operations and the quality and safety of care.

Click here to view the JVMC Accreditations & Awards

IASIS Healthcare Urgent Care • Salt Lake City, UT 18 Tenant Overview # 1 Steward Health Care Largest private for-profit hospital Steward Health Care System is a physician-led health care organization with 3,500 physicians, operator in the U.S. 18 hospital campuses, and 25 affiliated urgent care provider locations. As an integrated, cost- effective accountable care organization, Steward is committed to providing world class care in the communities where patients live.

Steward is widely recognized as a national leader in implementing a new model of integrated health $8B care delivery. Steward’s model takes care of patients from wellness and care management all the Projected way through their end of life. To this end, Steward functions as an integrated care organization revenues of with over 90 percent of its commercial lives and over 80,000 Medicare members in the Medicare almost $8 billion for 2018 Pioneer ACO under a form of global payment. Steward also puts at risk a substantial amount of its revenue based on Quality outcomes. By providing health care services in a coordinated and more efficient manner, Steward is able to control costs while dramatically improving quality, eliminating 2 million care fragmentation and reducing duplication of services in the delivery of health care.

patients Steward has produced impressive results with its approach. The Centers for Medicare and Medicaid annually (CMS) recently released data that recognizes Steward as the top system in the Medicare Pioneer ACO program (combined quality and cost metric) in Massachusetts and in the top two nationally. This is remarkable given Steward was founded the year before the program was initiated. Steward also has received top quality and safety honors from numerous industry groups, including The Leapfrog Group (where all of Steward’s hospitals have earned an “A” rating), and U.S. News and World Report, in recognition of meeting the highest quality industry standards.

Headquartered in Boston, Steward is a community-based, physician-led organization with more than 23,000 employees across four states. As a for-profit health system, Steward enjoys positive relationships in the communities where it operates and has provided $221 million in community benefits and paid more than $120 million in taxes in the past four years. The main components of the system are:

• Steward Medical Group provides approximately 1 million patient encounters per year and manages Steward Home Care and Hospice with 300,000 and 35,000 encounters respectively. • Steward Health Care Network, a fully integrated care management company, has 3,500 physicians, with approximately 4 million patient encounters per year or joint ventures with 25 urgent care centers.

Northside Medical Center - Owned by Steward Health Care

IASIS Healthcare Urgent Care • Salt Lake City, UT 19 Steward Health Care And IASIS Healthcare Announce Definitive Agreement To Merge

Steward to Become Largest Privately-Owned For-Profit Hospital Operator in the U.S.

BOSTON, May 19, 2017 /PRNewswire/ — Steward Health Care LLC “Our physician-driven accountable care model focused on keeping (“Steward”) and IASIS Healthcare LLC (“IASIS”) today announced they patients healthy is transforming the health care industry as this transaction have entered into a definitive agreement to merge their operations. The demonstrates,” said Dr. Ralph de la Torre, Chairman and CEO of Steward transaction will make Steward the largest private for-profit hospital operator Health Care. “Our model shows how the industry can successfully shift in the United States with 36 hospitals across ten states, managed care toward a more cost-effective local, coordinated approach that puts patients operations in Arizona, Utah and Massachusetts, and projected revenues first.” of almost $8 billion in 2018, the first year of consolidated operations. The The new model of health care practiced by Steward emphasizes quality care merger is expected to close in the third calendar quarter of 2017, subject and wellness. Steward pioneered its health care model in Massachusetts, to customary regulatory approvals, terms and conditions. Terms of the where it turned around some of the state’s most struggling hospitals into transaction were not disclosed. a thriving health system that improved outcomes, lowered costs, and Steward currently operates 18 hospitals and directly employs more than decreased overall health care spending. 1,300 multi-specialty physicians in locations across Massachusetts, Ohio, W. Carl Whitmer, President and Chief Executive of IASIS, said, “Since its Florida and Pennsylvania. IASIS operates 17 hospitals and one behavioral formation nearly 20 years ago, IASIS’s mission has been to deliver high- health hospital in locations across Utah, Arizona, Colorado, Texas, Arkansas quality, cost-effective healthcare to our patients and the communities we and Louisiana. Through this transaction, Steward will operate nearly 7,500 serve. We have accomplished this goal by investing in our growing hospitals patient beds across ten states with approximately 38,000 employees and talented employees and by providing a broad and differentiated set including more than 1,800 directly employed multi-specialty physicians and of capabilities and assets to our high-growth, community-focused urban several thousand aligned physicians. and suburban hospital markets. Steward’s innovative approach to reducing The merger with IASIS positions Steward to leverage IASIS’s multi-state health care cost and improving quality of service will further this mission. It operating experience to bring Steward’s new model of health care and its will be business as usual while all of us work toward a seamless merger of award-winning health care services to patients across the nation. As part of our operations.” the merger with IASIS, Steward will also begin managing the Health Choice managed care operations, which covers more than 680,000 lives. This will bring the total number of covered lives within Steward’s managed care and Click here to read article on the Cerberus Capital website health insurance products to more than 1.1 million.

IASIS Healthcare Urgent Care • Salt Lake City, UT 20 Section Four About the Location Location Overview

Salt Lake City is a global city and capital with the most populous municipality of the U.S. state of Utah. Salt Lake City is the core of the Salt Lake City metropolitan area, and is further situated within a larger metropolis known as the Salt Lake City-Ogden-Provo Combined Statistical Area. The Salt Lake City metropolitan area is home to over a million people, more than 20,000 businesses, and top-notch educational institutions like the University of Utah, Westminster College, Salt Lake Community College, and dozens of trade schools specializing in a myriad of fields and professions. Salt Lake City has the human and intellectual capital to fuel a growing economy. There are many thriving industries within Salt Lake City, including healthcare, finance, information Downtown Salt Lake City City Creek Center technology and gaming, life sciences, outdoor products, and logistics, manufacturing, and distribution. Incredibly High Quality of Life

There are many ongoing and upcoming projects in Salt Lake City • SLC #1 'Best City to Start a Career' (May 2016, WalletHub) and 2017 is a busy year for economic development for the city. There • SLC 8th Fittest City in America (May 2016, Huffington Post) are around 3,400 residential units currently in development and that • Salt Lake ranks #1 for life expectancy (April 2016, Livability.com) number should grow as more projects come online throughout the year. • SLC Top 100 Best Places to Live (October 2015, Livability.com) Neighborhoods where most of 2016's construction activity occurred will • SLC a Top 10 City for Active Families (May 2015, Outside Magazine) continue to lead growth in 2017. The majority of projects underway and proposed are in Downtown, Central City, Central Ninth and Sugar House. The Marmalade/West Capitol HIll and Jordan Meadows neighborhoods will also see a significant uptick in construction in 2017.

Salt Lake City is home to one Fortune 500 company, Huntsman Forbes named Salt Lake City, UT Corporation, and two Fortune 1000 companies, Zions Bancorporation #7 #7 Best Place for Business & Careers and Questar Corporation. Other notable firms headquartered in the city include AlphaGraphics, Sinclair Oil Corporation, Smith's Food and Drug (owned by national grocer Kroger), MonaVie, Myriad Genetics, and Vehix. Combining the amenities of a major metropolitan area “ with the friendliness of a quaint, mountain town, Salt com. Notable firms based in nearby cities within the metropolitan area Lake is an ideal location for your next vacation, meeting/ include Arctic Circle Restaurants, FranklinCovey, and Overstock.com. convention, or family gathering. A beautiful, safe, and High-tech firms with a large presence in the suburbs include Adobe, vibrant destination, Salt Lake combines unparalleled ColcaSac, eBay, Unisys, Siebel, Micron, L-3 Communications, Telarus, and access to natural recreation, a bustling economy, 3M. Goldman Sachs has its second biggest presence in Salt Lake City. dynamic nightlife, remarkable history, warm hospitality, and Utah's Greatest Snow on Earth. ” IASIS Healthcare Urgent Care • Salt Lake City, UT 22

Landmark Hospital

ICU Medical I Salt Lake Eisenhower Supply n Industrial

Community Junior High t College School e

Bridgeside Landing s

Apartments a

1 Wasatch Charter 5 School

V ( an American 2 W in International 5 k

4 le School of Utah Vista , ( Elementary 2 Intermountain Mick Riley 4 1 0 School 6 Medical Center Golf Course ,6

5 V 9

P Orthopedic Parkside V

D Specialty Elementary P

) Group Apple Blossom Estate D Taylorsville School ) HIgh Schooi Plymouth Elementary Twin Peaks Bonneville

Mountain Star School Elementary Junior High Taylorsville: School Emergency Willows Condominium School Room

Thornhill Park Cottonwood Summerwood Apartments High School Apartments

Riverview Fashion Place: Salt Lake City's Junior High Largest Mall with 140 Stores Medical Tower Family Practice Woodstock Bennion Junior Elementary Cottonwood School High School Family Practice Grant Elementary Avalon West School Health & Rehabilitation

Murray Parkway Golf Course Industrial

Interstate 215 (123,245 VPD) Winchester Estates

Life Health Medical Center

Hillcrest High Remington School N South Valley Apartments Regional Airport West Jordan Middle School University of Utah Health Florentine Villas Apartments

IASIS Healthcare Urgent Care • Salt Lake City, UT 23 19

Surrounding Medical Tenants Interstate 15 (254,216 VPD) (254,216 15 Interstate 2 22 21 1

Legend 3 4 1. Intermountain Maternal Fetal Medicine Specialists 5 2. Orthopedic Specialty Group - Medical Center 6 3. Intermountain Health Care

4. Sleep and Lung Clinic of Utah 20 5. Cottonwood Family Practice 6. Medical Tower Family Practice

7. Dr. Eric L. Caten, MD Interstate 215 (123,245 VPD) 10 8. MountainStar Healthcare 9. Life Health Medical Center 7 10. Foothill Family Clinic 20 9 11. Medallus/After Hours Urgent Care 8 12. J C Laser & Medical Spa 13. Canyons Medical Center Bangerter HWY (28,904 VPD) 14. Primary Children's Medical Center 15. PRN Medical Services - Utah 18 16. Granger Medical West Jordan 17. Jordan Valley Medical Center 11 18. Jordan Meadows Medical Center 19. Intermountain Medical Group 20. Apria Health Care 21. Aspen Ridge West Transitional Rehab 22. St. Mark's Hospital - Taylorsville Emergency Center

Jordan Valley Medical Center 17 • 183 beds • 70% Private Payer Mix N 16 15 12

14 13 2.0 MILES

IASIS Healthcare Urgent Care • Salt Lake City, UT 24 Demographics

Population 1 mile 3 miles 5 miles 2000 Population 19,544 155,540 329,694

2010 Population 18,042 160,748 363,243

2017 Population 19,303 169,334 390,030

2022 Population 20,270 176,231 409,909

2010-2017 Annual Rate 0.94% 0.72% 0.99%

Households 1 mile 3 miles 5 miles 2000 Total Households 5,590 48,070 102,577

2010 Total Households 5,545 51,490 114,412 1 m ile 2017 Total Households 5,868 53,677 121,575

2022 Total Households 6,150 55,779 1 27,6 45

2010-2017 Annual Rate 0.78% 0.58% 0.84% 3 miles

Household Income 1 mile 3 miles 5 miles 2017 Median Household Income $69,828 $58,234 $ 57,3 42

2017 Average Household Income $81,675 $72,084 $70,438 5 miles

Total Population by 1 mile 3 miles 5 miles Age # % # % # % 0–19 5,554 28.8% 52,409 31.0% 124,364 30.5%

20–29 2,899 15.0% 26,113 15.4% 62,736 15.4%

30–39 3,023 15.7% 27,395 16.2% 64,497 15.8% 40–49 2,153 11.2% 19,066 11.3% 45,244 11.1% $ 50–59 2,162 11.2% 17,8 87 10.6% 40,842 10.0% 390k 70k 60–69 2,215 11.5% 15,486 9.1% 36,522 9.0% population avg. HH inc. (5 miles) (5 miles) 70+ 1,299 6.7% 10,977 6.5% 33,211 8.2%

IASIS Healthcare Urgent Care • Salt Lake City, UT 25 Toby Scrivner Teresa Coleman Senior Director Associate [email protected] [email protected] P: +1 918.494.2690 P: +1 918.494.2690 going beyond Jeff Matulis Christian Vaughan Senior Director Analyst [email protected] [email protected] P: +1 918.494.2690 P: +1 918.494.2690 Grant Wilkins Becca Kirby Associate Director Sr. Marketing Specialist [email protected] [email protected] P: +1 918.494.2690 P: +1 918.494.2690 Colin Cornell Associate [email protected] P: +1 918.494.2690

In Association With: Gill Warner Utah Broker #5481029-PBOO

Stan Johnson Company 6120 South Yale Avenue | Suite 300 Tulsa, Oklahoma 74136 P: 918.494.2690 stanjohnsonco.com

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.