Bassett Healthcare EXCLUSIVE NET - LEASE OFFERING

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OFFERING MEMORANDUM 231 Genesee Street, Utica, NY 13501 Confidentiality and Disclaimer

Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. 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Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the

231 Genesee Street, Utica, NY 13501 Table of Contents Investment Highlights 4 Financial Analysis 5 Tenant Overview 6 Surrounding Area 7-12 Location Overview 13 Local Map 14 Regional Map 15 Demographics / Market Overview 16-17 Investment Highlights PRICE: $5,423,371 | CAP: 7.00% | NOI: $379,636

About the Investment ✓ Guarantee from Bassett Healthcare with $1,147,036,774 in Total Patient Revenue* ✓ 10% Increase in January of 2020 ✓ Extensive Tenant Investment at Lease Signing | $8+ Million in Capital Expenditures in 2014 ✓ Tenant Investments Include New HVAC and Chilling Units on the Roof of the Premises ✓ Ideal Location for Bassett Healthcare Due to Underground Electrical Grid/Proximity to Electrical Substations ✓ New Roof Installed in 2015 | 20 Year Warranty

About the Tenant / Brand ✓ Bassett Healthcare Network is a Health Care System that Connects Comprehensive Care and Services to People Living Throughout New York | Six Hospitals, 24 Primary Care Centers, and 20 School Based Health Centers ✓ The Bassett Medical Group Is Comprised Of Full-time, Salaried Staff Numbering More Than 400 Physicians Representative Photo ✓ Bassett Medical Group Staffs Over Two Dozen Community-Based Primary Care Centers Throughout Eight Counties Bassett Medical Center – Cooperstown, NY ✓ Bassett’s 20 School-Based Health Centers Across Four Counties Provide Medical, Mental Health And Preventive Dental Care To Children

About the Location ✓ Strong Traffic Counts | Oriskany Street West and Highway 5 | Average 33,090 and 44,200 Vehicles Per Day Respectively ✓ Minutes from NY State Thruway Exit | Ideal Commute for Employees ✓ Strong Academic Presence | Within Five Miles of Four Colleges and Universities | Total Combined Enrollment Exceeds 13,000 Students ✓ Positive Real Estate Fundamentals | $1.1 Billion in Investment in Utica | Mohawk Valley Health System | Marcy Nanocenter | Nano Utica ✓ Robust Demographics| Population Exceeds 102,645 Individuals Within a Five-Mile Radius

*Statistics Provided by American Hospital Directory Representative Photo

Bassett Health – Utica, NY 4 Financial Analysis PRICE: $5,423,371 | CAP: 7.00% | RENT $384,636 | NOI: $379,636 Property Description RENT SCHEDULE Property Bassett Health Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) Property Address 231 Genesee Street Year 4 $384,636 $32,053 - Year 5 $384,636 $32,053 - City, State, ZIP Utica, NY 13501 Year 6 $423,108 $35,259 10% Year Renovated 2014 Year 7 $423,108 $35,259 - Building Size +/- 50,421 SF Year 8 $423,108 $35,259 - Floors 5 Full Floors and a Basement Year 9 $423,108 $35,259 - Type of Ownership Fee Simple Year 10 $423,108 $35,259 - The Offering Year 11 $444,264* $37,022 - Purchase Price $5,423,371 Five, Five Year & One, Four Year Option Periods (5% Rental Increases) CAP Rate 7.00% *Beginning on 01/01/2025, the PILOT Agreement (Payment in Lieu of Taxes) is set Annual Rent $384,636 to expire. The PILOT Agreement is a tax incentive program designed for not-for- Capital Reserves $5,000 Per Year profit companies in the state of New York. Upon expiration, there will be a Net Operating Income $379,636 property tax in the amount of $20,000 responsible by the Landlord. There is a Price / SF $107.56 scheduled rental increase of $21,156 to offset this tax payment. Additionally, the Rent / SF $7.62 landlord will be able to continue this program by re-applying with the state as there will still be a not-for-profit tenant occupying the building. Lease Summary Property Type Net Leased Medical Office INVESTMENT SUMMARY Marcus & Millichap is pleased to present the exclusive listing for Bassett Tenant / Guarantor Corporate Healthcare located at 231 Genesee Street in Utica, NY. The site underwent Original Lease Term 11 Years extensive renovations in 2014, consists of 50,421 rentable square feet of Lease Commencement 12/02/2014 building space on .931 acres of land. The tenant has their own parking lot in Lease Expiration 12/31/2025 the rear of the premises, as well as dedicated parking from the City of Utica at a Lease Term Remaining 7+ Years discounted rate for Bassett’s employees. Lease Type Double Net (NN) Bassett Healthcare is subject to 11-year double-net (NN) lease, which Landlord Responsible commenced on December 2nd, 2014. The annual rent is currently $384,636 Roof/Structure New Roof Installed in 2015 20 Year Roof Warranty (Through July 2035) which will increase by $38,463 in January of 2020. Furthermore, $5,000 has been removed from the rent as a capital reserves allocation to reduce the net Parking Lot/Sidewalk Landlord Responsible operating income to $379,636 which should provide comfort and security to Options to Renew 6 , Five-Year Options potential purchasers. Bassett Health – Utica, NY 5 Tenant Overview

About Bassett Health Key Financial Statistics Gross Patient Revenue $1,077,988,895 Bassett Healthcare Network is committed to helping the population they serve and their communities achieve optimum health and enjoy the best quality of life Non - Patient Revenue $69,047,879 possible. They accomplish this through an innovative and unique health care system that connects comprehensive care and services to people living through central New Total Revenue $1,147,036,774 York. *Figures provided by American Hospital Directory

The hub of our network is Bassett Medical Center in Cooperstown, which, in addition to traditional hospital-based care such as a birthing center and inpatient medical and surgical care, also offers sophisticated outpatient diagnostic and treatment capabilities.

Bassett Medical Center is where people in the region come for advanced care, such as: open-heart surgery, DaVinci robot-assisted surgery, specialized cancer treatment, advanced vascular care, trauma care, neurosurgery, and advanced orthopedic and spine care. This nationally recognized tertiary care hospital houses the Bassett Heart Care Institute and the Bassett Cancer Institute.

The Bassett Medical Group is comprised of a full-time, salaried staff numbering more than 400 physicians and other advanced practice clinicians who provide primary and specialty care at the Bassett Clinic and staff Bassett Medical Center in Cooperstown. In the region, the Bassett Medical Group also staffs over two dozen community- based primary care centers throughout eight counties. Bassett’s 20 school-based health centers across four counties provide medical, mental health and preventive dental care to children who might otherwise never have the chance to receive this care.

In addition to Bassett Medical Center, Bassett Healthcare Network has four area community hospitals: Cobleskill Regional Hospital, O’Connor Hospital in Delhi, Little Falls Hospital, and A.O. Fox Hospital in Oneonta provide acute inpatient care and 24- 7 emergency care. These hospitals also have the latest in diagnostic equipment such as MRI and CAT scan units. A fifth hospital, A.O. Fox Hospital - Tri-Town Campus in Sidney provides 24-7 emergency care as well as laboratory and radiology services. A number of Bassett specialists see patients at the specialty services clinic on the TRH campus.

Bassett Health – Utica, NY 6 Attached to the Iconic Gold Dome M&T Branch, the Bassett Health property has undergone extensive tenant improvements in 2014 which included massive chilling and air conditioning units to protect their servers which are integral to the operations of the healthcare network serving the state.

Bassett Health – Utica, NY 7 Bassett Health – Utica, NY 8 Bassett Health – Utica, NY 9 Bassett Health – Utica, NY 10 Bassett Healthcare’s gated and private parking lot. Additional parking is provided to employees at a discount by the City of Utica immediately adjacent to the property. Bassett Health – Utica, NY 11 Surrounding Area Property Address: 231 Genesee Street, Utica, NY 13501

ONEIDA COUNTY COURT CLERK

STANLEY THEATRE

UTICA PUBLIC LIBRARY

Bassett Health – Utica, NY 12 Location Overview Property Address: 231 Genesee Street, Utica, NY 13501 The subject investment property is located in the heart of downtown Utica on Genesee Street. Genesee Street intersects with Oriskany Street West which boasts an average daily traffic count exceeding 33,090 vehicles. Oriskany Street West runs into Highway 5 which brings an additional 44,200 vehicles into the immediate area per day. There are more than 71,430 individuals residing within a three-mile radius of the subject property and more than 102,645 individuals within a five-mile radius of the property. ADTC: 33,090 The Bassett Health Operational Center, attached to the gold-domed M & T Bank Annex Building is located in the heart of Utica. The subject property benefits from being well-positioned in a dense retail corridor consisting of national and local tenants, government buildings, and hotels all within close proximity of this property. Major national tenants include: Dunkin’ Donuts, Popeyes, Doubletree by Hilton, Firestone Complete Auto Care, as well as many others. The subject property ADTC: 44,200 benefits from being situated within a five-mile radius of several health care providers. Most notable are Mohawk Valley Health System – St. Luke’s and Mohawk Valley Health System – St. Elizabeth's with a combined total of 520-beds. The subject property benefits from being located three miles from . Utica College is a private university with a total enrollment exceeding 3,084 students.

Utica is a city in Mohawk Valley and the county seat of Oneida County, New York and is the tenth most populous city in New York. The Mohawk Valley economy is based on logistics, industrial processes, machinery, and industrial services. Utica's larger employers include surgical-device and orthotics manufacturer ConMed Corporation and Faxton St. Luke's Healthcare, part of the Mohawk Valley Health System. Over $1.1 billion is being invested in the area between the Mohawk valley Health System downtown medical campus and the Marcy Nanocenter and Nano Utica projects. Utica’s workforce benefits from its many educational institutions. SUNY Polytechnic Institute has almost 3,000 students and is one of eight technology colleges and 14 doctorate-granting universities of the State University of New York. Mohawk Valley Community College is the largest college between Syracuse and Albany with nearly 7,000 students, Utica College is a four-year private liberal arts college with over 3,000 students, and St. Elizabeth College of Nursing partners with regional institutions to grant nursing degrees. The City of Utica is currently constructing pedestrian-oriented infrastructure for its developing mixed-use district. Utica is known for its annual Boilermaker Road Race, which attracts runners from around the world.

Bassett Health – Utica, NY 13 Local Map Property Address: 231 Genesee Street, Utica, NY 13501

Syracuse Hancock International Airport (SYR)

Bassett Health – Utica, NY 14 Regional Map Property Address: 231 Genesee Street, Utica, NY 13501

NEW YORK

Bassett Health – Utica, NY 15 Demographics Property Address: 231 Genesee Street, Utica, NY 13501 1 Mile 3 Miles 5 Miles POPULATION 2022 Projection 18,440 70,475 102,255 5 Miles 2017 Estimate 18,949 71,430 102,645 2010 Census 19,045 71,613 103,031 2000 Census 18,312 69,132 100,146

INCOME 3 Miles Average $32,886 $53,275 $62,045 Median $21,843 $36,684 $44,143 Per Capita $13,614 $21,794 $25,801

1 Mile HOUSEHOLDS 2022 Projection 7,376 28,079 42,007 2017 Estimate 7,597 28,265 41,801 2010 Census 7,668 28,472 42,192 2000 Census 8,105 28,252 41,194

HOUSING 2017 $60,520 $93,309 $105,329

EMPLOYMENT 2017 Daytime Population 22,077 85,138 117,278 2017 Unemployment 9.18% 6.35% 5.19% 2017 Median Time Traveled 19 Mins 19 Mins 19 Mins

RACE & ETHNICITY White 42.70% 67.17% 75.10% Native American 0.06% 0.06% 0.04% African American 22.34% 13.51% 9.97% Asian/Pacific Islander 19.52% 10.18% 7.97%

Bassett Health – Utica, NY 16 Market Overview City: Utica| County: Oneida | State: New York Utica is a city in Mohawk Valley and the county seat of Oneida County. Utica is home to The State University of New York Polytechnic Institute a public research Utica, New York university offering bachelors and masters programs. SUNY Poly is recognized as having the first college in the entirely devoted to nanotechnology, The Colleges of Nanoscale Science and Engineering. This was instrumental in government agencies and chip manufacturing companies selecting Utica as the site of a massive semiconductor chip fabrication plant. The development plan of the Marcy Nanocenter site includes up to 8.25 million square feet of teaching facilities, with up to three 450mm computer chip fabs, each with a cleanroom of approximately 450,000 square feet, a total public and private investment of $10B to $15B for each phase of development, and the creation of approximately 5,000 direct jobs and approximately 15,000 indirect jobs. Danfoss Silicon Power, the first major tenant in the Utica Campus, is currently the first of 300 employees. This massive investment by both the public and private sector will continue to draw more educated professionals to the Utica region. This draw will directly benefit regional tenants in the tech sector and data management such as the operational center of Bassett Healthcare.

Primary health care in Utica is provided by the Mohawk Valley Health System, a nonprofit organization that operates Faxton St. Luke's Healthcare and St. Elizabeth Medical Center. The St. Luke's and Faxton hospitals have a total of 370 acute and 202 long-term beds, and St. Elizabeth Medical Center has 201 acute-care beds. St. Luke's and Faxton are surgical centers, and St. Elizabeth is a trauma and surgical center. The Mohawk Valley Health System prefers to construct a new hospital in Downtown Utica by 2021, consolidating operations at the existing hospitals

Employer Estimated # of Employees Expansion Strategies Inc 2,700 St Elizabeth Medical Center 1,584 Graphic Arts Mutual Insur Co 1,325 Resource Ctr For Ind Living 1,250 McDonalds 1,088 County of Oneida 1,029 Utica National Insurance Group 780 UTICA NATIONAL INSURANCE GROUP 750 Alorica Customer Care Inc 700 Administrative/Human Resources 600 Thomas R Proctor High School 600

Bassett Health – Utica, NY 17 EXCLUSIVE NET LEASE OFFERING

J.D. Parker Marcus & Millichap REIBC of NY 270 Madison Avenue New York, NY 10016 Tel: 212-430-5100 231 Genesee Street, Utica, NY 13501 Fax: 212-430-5110 License: 31PA1159742