CLASS A MEDICAL OFFICE HOSPITAL-ADJACENT Healthcare Capital Markets , PA

EXECUTIVE SUMMARY Executive Summary

The Plaza Towers Einstein Health Network 144 Units (Einstein ONE) Age-Restricted Housing Saligman House DePaul Healthcare Indepedant & Harmony Place Assisted Living DePaul Healthcare Assisted Living Angela Jane Pavilion Subacute & Rehab Services DEER MEADOWS RETIREMENT COMMUNITY

The Tabas House •• Independent Living •• Short-Term Rehab 323 Units Longwood Manor Apartments •• Personal Care/ •• Long-Term Care Age-Restricted Housing 352 Units Assisted Living •• Skilled Nursing •• Memory Care •• Specialty Programs

Park Circle Apartments SOLLY AVE 121 Units

1 U.S. ROUTE - 1 (ROOSEVELT BLVD)

231 BEDS RHAWN ST Holliday Fenoglio Fowler, L.P. (“HFF”), is pleased to exclusively offer 8001 and 8040 Roosevelt Boulevard, Philadelphia, PA (individually the “Property”, and collectively the “Properties” or the “Boulevard Portfolio”), which consists of two strategically located, just-off-campus, medical office buildings, totaling 86,639 SF. 8001 ROOSEVELT BLVD. | 8040 ROOSEVELT BLVD. | PHILADELPHIA, PA 3 THE OPPORTUNITY

8001 and 8040 Roosevelt Boulevard (US-1) are 94.7% leased in aggregate, and anchored by the highly PROPERTY SUMMARY esteemed Thomas Jefferson University Hospital (“TJUH”, or “The Hospital”, Moody’s A1), which through its Right of First Offer on entirety of 8001 Roosevelt Boulevard (the “ROFO”), has expanded its footprint by 76% since taking initial occupancy in 2014, electing to lease space at the Property as it becomes available. LOCATION The Properties have ample upside through new ownership facilitating the growth of The Hospital, as it 8001 & 8040 Roosevelt Blvd. continues its expansion, also resulting in rental rate growth as suites convert from non-hospital space. Philadelphia, PA 19152 In addition to the ROFO, TJUH has also pre-negotiated a lease for Tristate Imaging’s suite (13.9% of 8001 GLA) when it expires in 2020. TOTAL BUILDINGS TJUH offers the following services at the Property: urgent care, heart institute (and recent additional 2 expansion space), vascular surgery, oral surgery and family practice. Non-hospital specialties offered at 8001 Roosevelt include imaging, podiatry, dental, hemotology oncology, periodontics & prosthetics, and dermatology. GROSS LEASABLE AREA 86,639 SF (aggregate) Located in Philadelphia (home to one of the largest concentrations of healthcare institutions, teaching hospitals, R&D facilities, and life sciences hubs in the country), The Boulevard Portfolio is located in the very dense, urban, “Far Northeast” Philadelphia submarket, along U.S Route-1 (43,000 VPD), just off of Trinity Health System’s 231-bed Nazareth Hospital campus. 297,000 people reside in the 3-mile radius, OCCUPANCY which is characterized by a highly-insured, aging population (21% above the age of 65). 94.7% (aggregate)

PROPERTY BREAKDOWN MAJOR TENANTS Thomas Jefferson University Hospital (Moody’s A1)

LAND AREA 1.73 Acres

8001 ROOSEVELT* 8040 ROOSEVELT YEAR BUILT / COMPLETE RENOVATION DESCRIPTION 8001 Roosevelt % OF 8040 Roosevelt % OF TOTAL •• 8001 Roosevelt Blvd.: 1973 / 2013-2016 TOTAL TOTAL •• Square Footage 58,879 68.0% 27,760 32.0% 86,639 8040 Roosevelt Blvd.: 1965 Available Square Footage 1,785 2,800 4,585 Overall Occupancy 97.0% 89.9% 94.7% Clinical Occupancy 82% 0% 56.0% EXISTING DEBT Hospital ROFO % 100% 0% 68.0% Average Remaining Lease Term 6.34 5.25 6.00 Assumable “market” loan (see abstract on pg. 40) Net Operating Income ($) 984,556 75.0% 327,420 25.0% 1,311,976 *8001 Roosevelt may also be referred to as the Smylie Times Building or 2607 Rhawn (tax address).

Executive Summary < < < 4 8001 ROOSEVELT BLVD. | 8040 ROOSEVELT BLVD. | PHILADELPHIA, PA INVESTMENT HIGHLIGHTS

BEST-IN-CLASS TENANCY WITH THOMAS JEFFERSON UNIVERSITY HOSPITAL, WHICH HAS RAPIDLY EXPANDED THROUGH THEIR RIGHT OF FIRST OFFER PROVISION Thomas Jefferson University

Thomas Jefferson University Hospital (Moody’s A1) Hospital has a Right of First is nationally recognized and renowned, and as one Offer on any available space of the largest employers in the City of Philadelphia, generated 2015 annual patient revenue of $5.27 in 8001 Roosevelt, and since billion. taking initial occupancy in the

TJUH has grown rapidly through both organic Property in 2014, has increased expansion and recent mergers with the surrounding their footprint by 76%. hospitals of Abington Health and Aria Health Systems. TJUH took initial occupancy at the Property in 2014, and through its ROFO provision, has expanded by 76%, and in addition has pre-negotiated a lease to take Tristate Imaging’s premises when Tristate’s lease expires (which alone represents 13.9% of 8001 Roosevelt; 9.4% of the Portfolio GLA).

In total, there is over 14,000 SF (23.8%) that will expire without options over the analysis period, and along with the current available space, this will afford TJUH the opportunity to grow into over 85% of 8001 Roosevelt Blvd., and account for over 60% of the gross income from the Portfolio.

> > > Executive Summary 8001 ROOSEVELT BLVD. | 8040 ROOSEVELT BLVD. | PHILADELPHIA, PA 5

THOMAS JEFFERSON UNIVERSITY HOSPITALS 2015 CLINICAL METRICS Avg. Length of Stay 5.3 days HOSPITAL SUMMARY Bed Utilization Rate 72.0% Total Acute Days 224,552 Thomas Jefferson University Hospitals and Thomas JeffersonU niversity Hospitals have 951 Medicare Advantage Days 31,545 Thomas Jefferson University are partners in licensed acute care beds, with major programs Adjusted Patient Days 339,039 providing excellent clinical and compassionate in a wide range of clinical specialties. Services # of Discharges 42,134 care for patients in the Philadelphia region, are provided at five primary locations—Thomas ER Visits 122,831 educating the health professionals of tomorrow Jefferson University Hospital and Jefferson # of Inpatient Surgeries 25,124 in a variety of disciplines and discovering new Hospital for Neuroscience, both in Center City # of Births 2,081 knowledge that will define the future of clinical Philadelphia; Jefferson’s Methodist Hospital care. Established in 1825, Thomas Jefferson and Jefferson at the Navy Yard, both in South 2015 FINANCIAL METRICS University Hospitals and Thomas Jefferson Philadelphia; and Jefferson at Voorhees in South Total Patient Revenue $5,274,880,187 University share a 13-acre campus in Center City Jersey. Net Patient Revenue $1,456,271,966 Philadelphia. Net Medicare Revenue $308,450,941 Net Medicaid Revenue $128,224,171 Jefferson has been named on U.S. News & MEDICARE Total Assets $1,714,117,806 21% World Report’s best hospital rankings, earning Total Liabilities $936,358,983 2nd overall hospital in the Philadelphia Net Assets $777,758,823 metropolitan area and the 4th best hospital in Days Cash on Hand 70.8 days PAYOR MEDICAID . Additionally, only 3% of hospitals EBITDA $38,410,888 PRIVATE/ MIX 9% in the country are ranked in one of 16 specialties; SELF PAY 70% Jefferson standing out nationally as among 2015 PAYOR MIX the best in a remarkable 9 specialty areas: Medicare $308,450,941 Medicaid $128,224,171 •• 8th in Orthopedics COMPETING HEALTHCARE SYSTEMS Private/Self Pay $1,019,596,854 •• 30th in Ear, Nose, & Throat MARKET SHARE •• 32nd in Gastroenterology & GI Surgery MERCY HEALTH COMPETING HEALTHCARE SYSTEMS MARKET SHARE •• 33rd in Neurology & Neurosurgery SYSTEM 10% Aria Health System (Merged W/ TJUH) 1,978,000,000 •• 47th in Gynecology Abington Health System (Merged W/ TJUH) 3,304,000,000 •• 27th in Cancer EINSTEIN TJUH 5,274,000,000 •• 31st in Urology HEALTH NETWORK MARKET New TJUH Total 10,556,000,000 63.96% •• 33rd in Neurology & Neurosurgery 26% SHARE Mercy Health System 1,579,700,000 9.57% •• 42nd in Nephrology (5-MILE) THOMAS JEFFERSON Einstein 4,369,000,000 26.47% UNIVERSITY HOSPITALS 16,504,700,000 64% Executive Summary < < < 6 8001 ROOSEVELT BLVD. | 8040 ROOSEVELT BLVD. | PHILADELPHIA, PA

STRATEGICALLY LOCATED IN A HEALTHCARE 276 DENSE SUBMARKET NEXT TO A MAJOR HOSPITAL & SENIOR LIVING FACILITIES PARX ABINGTON PHILMONT AVE CASINO Philadelphia has a leading “Eds and Meds” economy HEALTH 611 ROTHMAN 63 that employs over 243,000 people across the city ROOSEVELT BLVDINSTITUTE 232 HOLY REDEEMER accounting for over 36% of the workforce, with greater HOSPITAL

Philadelphia having one of the largest concentrations BUSTLETON AVE PHILADELPHIA of health resources in the nation with 120 hospitals, 1 MILLS MALL EINSTEIN 200 pharmaceutical and biotech firms, and 135 medical 611 CENTER ONE manufacturers. Airport The Northeastern Philadelphia submarket is a true

ROOSEVELT BLVD reflection of the economic impact of the healthcare HARMONY PLACE GRANT AVE ARIA DEERMEADOWS JEANES ASSISTED LIVING HEALTH HOME HEALTH sector within Philadelphia, where a significant FOX CHASE HOSPITAL DePaul Healthcare CANCER CENTER ASSISTED LIVING concentration of healthcare campuses can be found RHAWN ST NAZARETH including Abington Health and Aria Health, which both 95 73 HOSPITAL merged with Thomas Jefferson University Hospital in 13 COTTMAN AVE 2015 & 2016, respectively. CENTER CITY HOSPITALS THOMAS JEFFERSON UNIVERSITY HOSPITAL HAHNEMANN UNIVERSITY HOSPITAL 1 PENNSYLVANIA HOSPITAL In addition, the Properties are located next to the 231- bed Nazareth Hospital and two senior living facilities – Dear Meadows and Harmony place, which collectively INPATIENT HOSPITAL BED COUNT ABINGTON HEALTH supply over 525 senior residents, 206 nursing beds, Abington Hospital 665 MERGED WITH and 196 senior living apartments in walking distance of Aria Health 477 the Properties. JEFFERSON HOSPITAL Nazareth Hospital (Mercy Health) 231 IN JAN 2015! Jeanes Hospital & Fox Chase Cancer Center 224 Holy Redeemer Hospital 242 Rothman Institute 24 *Median Hospital Bed Count in PA is 176 Beds OUTPATIENTS SURGERY AND SERVICES ARIA HEALTH MERGED Aria Health System Torresdale Campus WITH THOMAS JEFFERSON IN Einstein Center One JAN 2016! > > > Executive Summary 8001 ROOSEVELT BLVD. | 8040 ROOSEVELT BLVD. | PHILADELPHIA, PA 7

ATTRACTIVE EXPIRATION SCHEDULE WITH LIMITED ROLL RISK 8001 and 8040 Roosevelt Boulevard has limited roll risk with 41% of the square footage expiration beyond seven years. Additionally, over the next five years, only 26% of GLA is set to expire, 9.4% of which is Tristate Imaging (13.9% of 8001 Roosevelt Blvd.), whose space will be taken over through TJUH’s ROFO/ pre-negotiated lease for this space, as Tristate’s lease has no remaining renewal options. The Properties also have a diverse tenant line-up, with only 4 of 18 tenants accounting for greater than 5% of the buildings. LEASE EXPIRATION 40,000 45.00% TENANTS GREATER THAN 5% OF GROSS INCOME 41.6% 35,000 40.00% TENANT SQUARE % OF EXPIRATION 35.00% FOOTAGE GROSS YEAR 30,000 30.00% Thomas Jefferson University Hospital 26,246 32.1% 2025/2026 25,000 27.0% 25.00% Prism Career Institute 23,388 23.1% 2022 20,000 20.00% Tristate Imaging 8,179 15.0% 2020 15,000 13.2% 15.00% Boulevard Dermatology 4,595 5.6% 2025 10,000 6.5% 6.4% 10.00% 5,000 5.00%

0 0.00% 2016 2017 2018 2019 2020 2021 2022 Beyond 2022

Executive Summary < < < 8 8001 ROOSEVELT BLVD. | 8040 ROOSEVELT BLVD. | PHILADELPHIA, PA

HIGH QUALITY FINISHES WITH OVER $1.7M OF TOTAL CAPITAL INVESTED IN 8001/8040” CAPITAL INVESTED SINCE 2013 YEAR TOTAL CAPITAL INVESTED Current Ownership has done a spectacular job 2013 $379,152 maintaining the Properties in pristine condition, and have 2014 $466,723 invested over $1.7M into the assets since 2013 (primarily 2015 $570,025 at 8001 Roosevelt Blvd.), with significant renovation to the lobby, common areas, HVAC, elevators, roof, facade, 2016/In Progress $326,819 and parking lot. This offers investors limited capital Total Capital Invested $1,742,718 exposure over the hold period and provides security of cash flow. MAJOR 8001 RENOVATION SINCE 2013 TOTAL $ HVAC Replacements on the Ground Floor and Floors 3-5 * $291,881 Lobby Renovations and Common Area Renovations on the ground $466,938 floor and Floors 3-5 Elevator Modernization & Cabs $316,556 Exterior Painting, Lighting, Canopies, Signage and Wall Seal/ $400,364 Waterproofing *2nd Floor was replaced in 2006.

STABLE IN-PLACE CASH FLOW, WITH STRUCTURED RENT GROWTH, WITH SIGNIFICANT UPSIDE AND MITIGATED DOWNSIDE RISK With the recent occupancy of Thomas Jefferson, 8001 Roosevelt has a completely new dynamic, and will attract best-in-class hospital and physician tenancy.

8001 has 8,143 SF expiring without options in the next three years at an average weighted rent of $18.28 plus electric, providing the opportunity for the investor to mark rents to market at +/-$25/SF plus electric (and the prevailing rate at which TJUH has been leasing space), while simultaneously improving the “class” of tenant.

8040 offers current cash flow and structured rent growth, predominantly through a single lease (Prism) running through 2022. Prevailing rents range between $18-$19/SF.

> > > Executive Summary 8001 ROOSEVELT BLVD. | 8040 ROOSEVELT BLVD. | PHILADELPHIA, PA 9

ACCESSIBLE LOCATION, DESIRABLE MALL PLYMOUTH EINSTEIN MEDICAL CENTER HEALTHCARE DEMOGRAPHIC & SUPERIOR MEETING 276 SIGNAGE PACKAGES THOMAS JEFFERSON UNIVERITY-ABINGTON HOSPITAL 202 PHOENIXVILLE Thomas JeffersonU niversity Hospital at US-1 is located 23 along Roosevelt Boulevard422 (US-1), which is a 12-lane, major regional roadway that services Northeastern JENKINTOWN 476 VALLEY FORGE KING OF 309 Philadelphia andNATIONAL garners PARK overPRUSSIA 43,000 VPD. Coupled276 with an extremely dense, highly-insured population, CONSHOHOCKEN ARCADIA UNIVERSITY THE CHILDREN’S HOSPITAL OF PHILADELPHIA KING OF PRUSSIA MALL CHESTNUT HILL COLLEGE the location is an extremely desirable home for CHESTNUT HILL HOSPITAL EINSTEIN MEDICAL CENTER 76 MERCY HEALTH SYSTEM PENNYPACK healthcare institutions and providers. 76 611 202 NAZARETHPARK HOSPITAL (Trinity Health) In a one mile radius, there are over 28,900 people JEANES HOSPITAL & 1 VALLEY FORGE MILITARY ACADEMY CABRINI COLLEGE FOX CHASE CANCER CENTER PENN STATE GREAT VALLEY EASTERN UNIVERSITY which are 91% insured. Additionally, Thomas Jefferson THOMAS JEFFERSON UNIVERSITY WAYNE LA SALLE UNIVERSITY - ARIA HEALTH 30 receivedPAOLI HOSPITALa brand new signage package, and along 13 MALVERN VILLANOVA UNIVERSITY MANAYUNK 9 EINSTEIN MEDICAL CENTER IMMACULATA UNIVERSITY with 8040 Roosevelt, has an unobstructed view from30 13 PAOLI ROSEMONT COLLEGE HOSPITALS Roosevelt Blvd. BRYN MAWR COLLEGE 13 BRYN MAWR HOSPITAL PHILADELPHIA UNIVERSITY HARCUM COLLEGE 252 476 76 SHRINERS HOSPITALS FOR CHILDREN 352 PAOLI PIKE Aronimink 15 TACONY Golf Club 320 ST. CHRISTOPHER’S HOSPITAL PALMYRA MINUTES BRIDGE WYNNEWOOD

DEMOGRAPHICS SAINT JOSEPHS UNIVERSITY NEWTOWN SQUARE 22 LANKENAU MEDICAL CENTER BETSY NEWTOWN 95 HOSPITALS FAIRMOUNT ROSS BRANDYWINE BRIDGE AREA SQUARE 1 MILE 3 MILE 5 MILE 30 PARK AIRPORT 1 3 90 POPULATION 28,985 297,530 581,710 TEMPLE UNIVERSITY 3 WEST CHESTER30 PIKE TEMPLE UNIVERSITY HOSPITAL WEST CHESTER PIKEHOUSEHOLDSEdgemont 7,048 71,505 143,153 MINUTES Country Club COUNTY COMMUNITY COLLEGE 3 Paxon Hollow DREXEL UNIVERSITY MEDIAN AGE 42.8 252 36.7Country Club 37.0 676 926 DELAWARE COUNTY MEMORIAL HOSPITAL BENJAMIN RIDLEY CREEK UNIVERSITY OF PENNSYLVANIA FRANKLIN 476 BRIDGE % 65+ POPULATIONSTATE PARK 21.55% BROOMALL16.54% 13.26% 926 CAMDEN AVERAGE HH INCOME $60,059 $56,748 $61,294 PHILADELPHIA 352 THE CHILDREN’S HOSPITAL OF PHILADELPHIA TYLER 38 CHEYNEY UNIVERSITY ARBORETUM SPRINGFIELD 13 HAHNEMANN UNIVERSITY HOSPITAL CHERRY PENNSYLVANIA HOSPITAL Springfield 76 PENN STATE BRANDYWINE 1 Country Club ST. JOSEPH’S HOSPITAL 70 HILL PIKE THOMAS JEFFERSON UNIVERSITY HOSPITAL SPRINGFIELD HOSPITAL

THOMAS JEFFERSON UNIVERSITY HOSPITAL SPRINGFIELD MALL 676 MEDIA WALT NATURE LANDS TRUST’S 611 WHITMAN 252 BRIDGE PRESERVE SWARTHMORE COLLEGE PENNSYLVANIA SWARTHMORE 1 THE NAVY YARD 202 13 95

476 NEW NEUMANN COLLEGE JERSEY 352 TAYLOR HOSPITAL Executive Summary < < < 295 PHILADELPHIA 322 WIDENER UNIVERSITY INTERNATIONAL AIRPORT DELAWARE RIVER 291 © OpenStreetMap contributors Healthcare Capital Markets

HEALTHCARE CAPITAL MARKETS EXCLUSIVE ADVISORS

Ben Appel Phil Mahler Evan Kovac Philadelphia San Diego Director Managing Director Managing Director [email protected] [email protected] [email protected] 215.872.9903 312.300.7319 858.812.2365

Michael Bennett Eric Anton Chicago New York Managing Director Senior Managing Director [email protected] [email protected] 312.528.3694 212.632.1825

ANALYST CONTACT Michael DiCosimo Philadelphia Senior Analyst [email protected] 484.532.4169

FINANCING CONTACT Neil Campbell Philadelphia © 2016 Holliday Fenoglio Fowler, L.P. (“HFF”) a Pennsylvania Associate Director licensed real estate broker. [email protected] HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: 484.532.4176 HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including HFF PHILADELPHIA debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit 161 Washington Street hfflp.com or follow HFF on Twitter @HFF.

Suite 925 HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from Conshohocken, PA 19428 sources other than HFF and we make no representations or warranties, express T 484.432.4200 or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific F 484.432.4215 information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions hfflp.com or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.