Multi Tenant Medical Offering Memorandum For Sale | Investment Opportunity 1609 Woodbourne WOODBOURNE PROFESSIONAL CENTER BUILDING 100, LEVITTOWN, PA

PRESENTED BY:

Jeff Algatt Senior Vice President, Investment Services DIRECT +1 610 557 0180 EMAIL [email protected]

Matthew Shanahan Senior Vice President, Office Division DIRECT +1 215 928 7560 EMAIL [email protected]

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 1 Table of Contents CONTACT Inspections will be arranged by appointment only > INVESTMENT SUMMARY with the Owner’s Exclusive Agents:

> PROPERTY INFORMATION Jeff Algatt Senior Vice President, Investment Services Regional and Local Map...... 5 DIRECT +1 610 557 0180 Aerial ...... 6 EMAIL [email protected] Property Description...... 8 Matthew Shanahan Floor Plan...... 9 Senior Vice President, Office Division DIRECT +1 215 928 7560 Photos...... 10 EMAIL [email protected]

> TENANCY Tenant Descriptions...... 15 CONFIDENTIALITY AGREEMENT Rent Roll...... 16 Colliers’ Confidentiality Agreement, which is available from the Listing Agents, must be completed and returned by > FINANCIAL ANALYSIS interested principals in order to receive the Confidential Cash Flow & Assumptions...... 17 Offering Memorandum.

> AREA OVERVIEW Central/Lower Bucks County & Middletown...... 18 OFFERING PROCEDURE Demographic Analysis...... 22 Offers may be submitted at any point during the marketing process, although a deadline for offers may be established at a later date. All submissions > OFFICE & HEALTHCARE MARKET must be emailed to the listing agent. In addition to the Office Market Update...... 23 terms of an offer, the Owner and Colliers nternational will give consideration to the demonstrated ability of Investor Activity...... 25 the purchaser to complete the transaction. Offers Area Healthcare Overview...... 26 should be in the form of a non-binding letter of intent St. Mary Medical Center and Trinity Health Overview...... 28 specifying at least the following:

• Offered Price COLLIERS INTERNATIONAL • Earnest Money Deposit(s) Ten Penn Center • Study Period (if any) 1801 Market Street, Suite 550 Philadelphia, PA 19103 • Contingencies (if any) +1 215 925 4600 • Time of Closing www.colliers.com/philadelphia • References • List of Real Estate Owned • Sources of Funds (Equity and Debt) 1609 WOODBOURNE ROAD | DISCLAIMER

Materials contained in this Investment Offering are confidential, furnished solely for the purpose of considering the “AS IS” quisitionac of 1609 Woodbourne Road, Levittown, PA described herein and are not to be used for any other purpose or to be made available to any other person without the express written consent of Colliers International and Owner. No representations, expressed or implied are made as to the foregoing matters by Owner, Owner’s property management/ leasing agent, Colliers or any of their officers, employees, affiliates and/or agents. See full confidentiality and disclaimer statement.

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 2 INVESTMENT SUMMARY

The Offering

Colliers International, as exclusive Investment Highlights: agent of the Owner, is pleased to offer for sale to qualified investors • Healthcare Related Offices in a Destination Office Park the medical office building located • Major Health System and Fortune 500 Credit Leases at 1609 Woodbourne Road in Levittown, Pennsylvania 19057. • Long Term Established Medical Practice List Price is $1,800,000. • Additional Complementary Tenants

This 7,750-square foot condomin- • Strong Location: Population, Income, Amenities, ium property is 100% occupied by Transportation three tenants whose leases expire • Offered Free and Clear of Debt variously in the next three years, but based on their tenure and success at the Property are Vital Data projected to continue renewing 1609 Woodbourne Road, Levittown, PA their respective leases. Address 19057, Bucks County

Building Area 7,750 Rentable Square Feet

Langhorne Physician Services, Quest Two of the three tenants offer investment grade credit: Tenants Diagnostics, Hornbeck Chiropractic % Leased 100% • Trinity Health (parent of Langhorne Physician Services d/b/a Woodbourne Family Practice) is a national Catholic health system with 93 hospitals and 121 continuing care facilities, home care Use Medical Offices agencies and outpatient centers in 22 states supporting 131,000 employees. For the year ended Year Built 1988 June 30, 2016, Trinity Health reported unrestricted revenue of $16.3 Billion and total assets of Title Condominium $23.4 billion. Woodbourne Family Practice has occupied 6,085 square feet since 1998 under a 2017 NOI $146,020 ($18.84 Per Rentable SF) lease that expires April 19, 2019 but provides for an automatic two-year term extension through Price $1,800,000 April 2021. Price Per SF $232 Per Rentable SF • Quest Diagnostics was founded in 1967 and is now a publicly traded (NYSE -DGX) member of the Debt Service $79,729 Fortune 500 and the S&P 500, with approximately 44,000 employees worldwide, more than $7 Equity $630,000 billion in annual revenue and offers access to diagnostic testing services for cancer, Cap Rate 8.1% cardiovascular disease, infectious disease and neurological disorders. Quest has leased 1,000 Cash-on-Cash 10.5% square feet in the Property since 2004 and is now in its third extension term which expires June 30, 2018.

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 3 Patient Check-in Area INVESTMENT SUMMARY

• Hornbeck Chiropractic and Rehabilitation, PC leases 665 square feet and shares Langhorne’s Offers should be in the form of a non-binding letter waiting room under a lease that began March 1, 2017 and continues until 2/28/2020. of intent specifying at least the following:

• Offered Price The Property is one of five single • Earnest Money Deposit(s) story office condominium build- • Study Period (if any) ings constructed in the late 1980’s • Contingencies (if any) and known as The Woodbourne • Time of Closing Campus, a familiar concentration Bldg 100 of complementary medical, health • References care and professional offices. • List of Real Estate Owned The Property itself is comprised • Sources of Funds (Equity and Debt) of ten condominium units, all owned by the seller.

Levittown is a densely populated, affluent submarket in Lower Bucks County that has grown CONTACT from its famous 1950’s roots as Inspections will be arranged by appointment only the nation’s first planned commu- with the Owner’s Exclusive Agents: nity to an established, diverse and amenity rich location anchored by Northeast Philadelphia on the south and Lower Makefield/Yard- Jeff Algatt ley’s explosive development to the north. Senior Vice President, Investment Services DIRECT +1 267 252 0191 Based on contract rents, historical operating expenses, and available market rate financing, at List EMAIL [email protected] Price the Offering is projected to yield an 8.1 percent unleveraged operating return (“cap rate”) and a 10.5 percent leveraged return (“cash-on-cash”) in the Purchaser’s first year of ownership. Matthew Shanahan Senior Vice President DIRECT +1 215 928 7560 EMAIL [email protected]

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 4 PROPERTY INFORMATION

REGIONAL MAP

Yardley

Newtown 413 Trenton 295

Warminster

Langhorne

Levittown

Willow Grove PA

Bensalem

Jenkintown Bristol

Burlington 295 NJ

NORTH

NORTH

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 5 PROPERTY INFORMATION

LOCAL MAP

Falls Twp SEPTA R3 Woodbourne

Oxford Valley Langhorne Fairless Hills

Middletown Twp

Tullytown NORTH NORTH

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 6 PROPERTY INFORMATION

AERIAL IMAGE

Woodbourne Road Office Campus

500 300 400 200 100

WOODBOURNE ROAD

NORTH

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Property Description

> PROPERTY > AGE Woodbourne Road Office Campus Built 1988 Building 100, consisting of ten (10) professional office condominium units > PARKING Parking is common with other units > PROPERTY ADDRESS 1609 Woodbourne Road > CONSTRUCTION Levittown, PA 19057 • Poured concrete foundation and slab on grade • Wood frame perimeter and roof with steel > TAX PARCEL center columns 22055-223101A 22055-223103B • Aluminum siding over insulation 22055-223101B 22055-223104A • Concrete sidewalks and curbs 22055-223102A 22055-223104B • Asphalt parking lot 22055-223102B 22055-223105A 22055-223103A 22055-223105B > ROOF Asault shingle over wood sheath pitched roof > LOCATION Lower Bucks County, Pennsylvania Philadelphia- > INTERIOR CONSTRUCTION Camden-Wilmington MSA, the nation’s sixth • Partitions: Drywall largest with a population of over seven million. • Flooring - Carpet in corridors and office spaces > DESCRIPTION - Ceramic tile and vinyl tile in other areas Free-standing, multi-tenant medical office building within larger condominium complex > CEILINGS • Ceilings: Acoustic lay in tile in corridors and > LAND AREA tenant spaces 3.97 Acres (total of condo complex) • Lighting: mostly 2X4 fluorescent

> BUILDING SIZE > HVAC 7,750 SF on grade (plus usable attic/loft space • Multiple heat pump systems not included in square footage) • Tenant controlled thermostats

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Floor Plan

Exam 10 Exam 8 Exam RR Office 9 RR HORNBACK QUEST LABS Exam 11 Exam 7 CHIROPACTIC

Exam 6 Lab Exam 12

Rx Storage Main LANGHORNE PHYSICIAN Reception Area Entrance SERVICES Physician’s Physician’s Physician’s Office Office Office Exam 13 Exam 5 MA Station

X Exam 14 Exam 4 Shower RR Lunch H/C Room RR Waiting Room RR Exam 15 Exam 3 Exam 2 Exam 1 Supplies

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Exterior Photos

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Exterior Photos

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Exterior Photos

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Photos

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Photos

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 14 TENANCY

Tenancy

Quest Diagnostics is a Fortune 500 company Dr. Hornbeck has extensive experience in treating Langhorne Physician Services d/b/a Woodbourne providing clinical laboratory services with head- patients with Whiplash, Sports Injuries, Work Family Practice has been providing quality health- quarters in Madison, New Jersey. It is a member of injuries, arm and leg pain, headaches as well as the care since the 1960’s and currently serves 12,000 the Fortune 500 and the S&P 500, with corporate traditional neck and back pain often associated with patients. The current six physicians of the practice headquarters located in Madison, New Jersey. The Chiropractic care. Dr. Hornbeck utilizes physical (Anthony Brunozzi, DO; Richard Goldhammer, DO; company has approximately 44,000 employees, therapy including Instrument Assisted Soft Tissue Jeffrey Langbein, DO; Heather Smith, DO; Michael generates more than $7 billion in revenue and Therapy, stretching, electrical stimulation, ultra- Taptykoff, DO; and Christine Zador-Silverman, DO offers access to diagnostic testing services for sound and core stability exercises in addition to have been practicing together at Woodbourne cancer, cardiovascular disease, infectious disease various Chiropractic Techniques. Dr. Hornbeck is Family Practice since 1998. All six physicians are and neurological disorders. also an adjunct Anatomy professor at Holy Family board certified and have over 100 years of cumula- University in the Biology Department. tive experience and hospital privleges at Frankford Hospitals, St Mary Medical Center and Lower Bucks More information at www.questdiagnostics.com More information at www.hornbeckchiro.com Hospital.

More information at www.woodbournefamily.com Woodbourne Family Practice

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15 TENANCY

Rent Roll Rent Roll

Occupied Shared % of Rent Monthly Annual Occupancy Lease Expense Suite Tenant RSF RSF Total RSF PSF Rent Rent Date Expiration Recoveries

1 Langhorne Physician Services 6,085 78.52% $17.50 $8,873.96 $106,487.50 May 2003 Apr 2021* NNN

2 Quest Diagnostics 1,000 12.90% $16.00 $1,621.30 $19,455.60 July 2004 Jan 2019 NNN

3 Hornbeck Chiropractic 665 1,257 8.58% $18.04 $2,889.44 $34,673.28 Mar 2009 Feb 2020 Gross

Subtotal 7,750 1,257 $13,384.70 $160,616.38

Total 7,750

* Assume automatic 2 year renewal

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 16 FINANCIALS

Financials

> CASHFLOW PROJECTION > FINANCIAL OVERVIEW Offering Price ������������������������������������������������������������������������������������ $1,800,000

For the Years Ending Year 1 Price Per Square Foot �������������������������������������������������������������������������������� $232 Dec-2017 Debt Size ���������������������������������������������������������������������������������������������$1,170,000 Equity ����������������������������������������������������������������������������������������������������$630,000 Potential Gross Revenue $160,616 Base Rental Revenue 2017 Net Income �����������������������������������������������������������������������������������$146,020 Absorption & Turnover Vacancy Cap Rate ��������������������������������������������������������������������������������������������������������8.1% ______Net Cashflow After Debt Service $66,291 Scheduled Base Rental Revenue 160,616 Net Cashflow After Interest Only $90,455 Expense Reimbursement Revenue 76,000 Cashflow Rate of Return 10.5% ______Total Rate of Return ����������������������������������������������������������������������������������� 14.4% Total Potential Gross Revenue 236,616 General Vacancy > FINANCING ______Loan Amount ���������������������������������������������������������������������������������������$1,170,000 Effective Gross Revenue 236,616 Loan Type ����������������������������������������������������������������������������������������������Recourse ______Operating Expenses Spread �������������������������������������������������������������������������������������������������������� 2.15% Condo Fees 27,360 Index ���������������������������������������������������������������������������������������������������� UST 2.6% Administration 257 Interest Rate �����������������������������������������������������������������������������������������������4.75% Repairs and Maintenance 4,238 Term ���������������������������������������������������������������������������������������������������������7 Years Contract Services 7,799 Amortization ���������������������������������������������������������������������������������������� 25 Years Utilities 18,136 Year One Principal Payment $24,154 Insurance 4,507 Year One Interest Payment $55,575 Real Estate Taxes 28,299 Debt Service ��������������������������������������������������������������������������������������������$79,729 ______Loan Constant ����������������������������������������������������������������������������������������������6.8% Total Operating Expenses 90,596 Debt Yield ��������������������������������������������������������������������������������������������������� 12.5% ______DSCR ��������������������������������������������������������������������������������������������������������������1.83 Net Operating Income 146,020 LTV �����������������������������������������������������������������������������������������������������������������65%

2500 INTERPLEX DRIVE | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 17 MARKET OVERVIEW

Bucks County Overview

The subject property is located in Langhorne, Middletown Township in the south- POPULATION eastern portion of Bucks County. Bucks County is located north of Philadelphia County and directly across the Delaware River from New Jersey. The county shares The population of Bucks County grew by over most of its western border with Montgomery County with Northampton and Lehigh 10% between 1990 and 2000 and by an additional Counties to the northwest. From north to south, it is linked to Warren, Hunterdon, 4.62 percent between 2000 and 2010. Population Mercer and Burlington Counties in New Jersey by Delaware River bridges. The growth estimates show slower growth in Bucks county has 23 boroughs and 31 townships within its 622 square miles. County and statewide.

Bucks County is centrally located within the Northeast Corridor. New York City is Prior to the 1970’s, the county’s population was only 75 miles; Baltimore, 120 miles; Washington DC, 158 miles; and Boston, 288 concentrated in the southeastern portion of the miles. One third of the nation’s population resides within a one-day drive of Bucks County in the inner ring suburban communities in Bristol and Bensalem Township County, making it a prime location for the transport of goods and services. with additional population clusters in Warminster, Southampton, Doylestown and Quakertown. The development of suburban commercial centers and the availability of land resulted in an increase in residential construction starting in the 1990’s and continuing into the current decade. The lower part of the county still hosts the larg- est segment of the population, but the central region, developed faster and more intensely than the northern or eastern municipalities. As a mature township with limited space for development, Middletown Township’s growth has stagnated.

Population

% Change 2015 % Change Location 2000 2010 2000-2010 (Est.) 2010-2015 Bucks County 597,635 625,249 4.62% 627,367 0.34% Middletown Township 44,141 45,436 2.83% 45,392 -0.10% Pennsylvania 12,281,054 12,702,379 3.43% 12,802,503 0.79%

Source: U.S. Census Bureau

Andalusia

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 18 MARKET OVERVIEW

Bucks County Pennsylvania March 2017 March 2017 Civilian Labor Force 345,300 6,526,000 Employment 328,200 6,182,000 Unemployment 17,200 344,000 Unemployment Rate 5.0% 5.3%

Source: PA Department of Labor and Industry

Industry Sector Employees

Health Care and Social Assistance 46,900 Retail Trade 36,908 Manufacturing 27,062 EMPLOYMENT & LABOR FORCE Accommodation and Food Services 20,463 Education Services 19,127 Bucks County has the fourth largest labor force in Pennsylvania. Unemployment, at 4.0 percent, Construction 15,890 was below the Pennsylvania average. Admin., Support, Waste Mgmt, Remediation 15,278

The Health Services sector is the largest private employer in Bucks County. Retail trade is a major Professional Scientific & Technical Services 14,719 employment sector both in terms of store and warehousing jobs. Manufacturing also remains an Wholesale Trade 13,453 important economic driver. Other Services 9,815 Transportation and Warehousing 8,037 The more heavily populated Lower Bucks County has a strong industrial base. Dow Chemical Finance and Insurance 7,780 employs 300 people at its 800 acre plant in Bristol that is used for the manufacture of adhesive and sealant products. Byers’ Choice, Ltd., creators of the Carolers®, Tate & Lyle, General Motors, Penn Arts, Entertainment, and Recreation 5,832 Color and Scott Specialty Gases are just a sampling of prominent Bucks County manufacturing Public Administration 4,638 operations doing business around the globe. Estee Lauder (Northtec LLC division) has a Information 4,461 240,000-square-foot manufacturing/warehouse facility in Bristol and a 250,000-square -foot Management of Companies and Enterprises 3,542 warehouse operation. Real Estate 2,710

While pure manufacturing space continues to diminish in the region, growth in warehouse and Utilities 927 distribution, retail, and service sector industries is generating substantial demand for warehouse, Agriculture, Forestry, Fishing & Hunting 465 distribution and flex space. Kmart, Simon & Schuster, Nexeo Solutions and Rite-Aid have major Mining 177 warehouse facilities in Bucks County. Source: PA Department of Labor and Industry, Q4 2015

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LARGEST EMPLOYERS

The largest private-sector employers represent a diversity of health care, education services, retail and manufacturing firms.

Rank Name of Employer 1 Giant Food Stores LLC 2 Central Bucks School District 3 St. Mary Medical Center 4 Doylestown Hospital 5 Northtec LLC 6 Bucks County 7 Wal-Mart Associates, Inc. 8 Woods Services 9 Grand View Health 10 Council Rock School District 11 Pennsbury School District 12 Sesame Place 13 Bucks County Community College 14 Neshaminy School District 15 Bensalem Township School District 16 Federal Government 17 Pennridge School District 18 State Government 19 Always Best Care 20 Home Depot USA, Inc. 21 Wawa, Inc. 22 Bristol Township School District 23 Greenwood Table Games Servs, Inc. 24 Bucks County Intermediate Unit 25 Ann's Choice, Inc.

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 20 MARKET OVERVIEW

Levittown Area

The subject property is located in Levittown, a community of over 53,000 people in the eastern corner of Bucks County. The municipality spans Bristol, Falls and Middletown Townships.

The area is located at the junction of US Route 1 and Interstate 95. Business Route 1 (Lincoln Highway), U.S. Route 13 and Pennsylvania Route 413 and 213 are important commercial arteries. The township is a mix of mature residential areas, including portions of Levittown, which was one of the original post-World War II planned suburban communities. LEVITTOWN There are multiple office parks along Oxford Valley and Woodbourne Roads, Much of the office inventory is geared toward smaller medical and professional users. Langhorne has become a hub for medical and surgery facilities including a 112-bed hospital operated by Aria Health. Langhorne is also a thriving retail center with numerous shopping areas along Oxford Valley Road and Lincoln Highway including the 1.1 million-square-foot Oxford Valley Mall complex. In addition, Seaworld Parks & Entertainment operates the 35-acre Sesame Place theme park.

Levittown, Pennsylvania TRANSPORTATION 1,873 Road: Interstate 95 and the US Route 1 Bypass are the main regional limited HOUSEHOLDS PER access highways. Business Route 1, Route 413, Route 213, Oxford Valley Road and SQUARE MILE Woodbourne Road are all active commercial corridors.

Rail: Regional to the area is provided by the SEPTA Trenton and West Trenton Lines. Both the Levittown Station on the Trenton Line and the Woodbourne Station on the West Trenton line are approximately 10 minutes from the property.

Bus: The SEPTA Route 128 bus has hourly weekday service between the Oxford Valley and Neshaminy Mall. The route includes Woodbourne Road.

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Demographic Analysis Site Map

1609 Woodbourne Rd, Levittown, Pennsylvania, 19057 Prepared by Esri Rings: 1, 3, 5 mile radii Latitude: 40.16137 Longitude: -74.86996

2021 Demographic Projections 1 Mile 3 Miles 5 Miles

POPULATION 13,124 97,069 201,755 Median Age 42.2 (U.S. Median is 38.0)

RACE AND ETHNICITY White 86.9% 84.9% 82.5% Black 4.2% 6.5% 7.3% Hispanic 4.4% 5.8% 6.3% 5 Mile Asian 4.8% 3.9% 5.3% Other 1.4% 1.9% 2.1% 3 Mile

HOUSEHOLDS AND INCOME 1 Mile Total Households 4,687 35,796 75,618 Average HH Size 2.76 2.66 2.63 Median HH Income $82,042 $76,377 $80,949 Avg HH Income $95,271 $89,058 $98,679 Per Capita Income $34,468 $32,975 $37,329

HOUSING Total Housing Units 4,949 38,151 80,866 Owner Occupied 3,509 26,364 54,677 Renter Occupied 1,178 9,432 20,941 Vacant Units 262 2,355 5,248 NORTH

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May 09, 2017

©2016 Esri Page 1 of 1 OFFICEMARKET & HEALTHCARE OVERVIEW MARKET

Central and Lower Bucks Office Market

KEY TRENDS

• The vacancy rate decreased from 22.2 to 21.8 percent in the third quarter. Doylestown • Annual absorption totaled just over 60,000 square feet, the same level as in 2015. Yardley • The weighted average asking rent has been fluctuating, dipping slightly during Q4. Warrington However, this is due to the lease-up of higher priced space, not an overall pricing trend. Newtown

The Central and Lower Bucks County office market totals 5.68 million square feet. The main concentra- tions of office space are in Langhorne, the Trevose-Bensalem corridor, the Route 332 corridor from Trevose Newtown to Yardley and the Route 611 corridor from Warrington to Doylestown. Bensalem The vacancy rate decreased for the third consecutive quarter. Class B vacancy decreased from 23.6 to 23.4 percent during the fourth quarter, but was up year-over-year. Class A buildings had a sharper vacancy decline from 20.9 to 20.4 percent.

Fewer Class A space choices in neighboring submarkets such as Horsham may drive tenants to Lower Bucks County. As more Class A space is absorbed, Class B buildings should begin to benefit. Additionally, New Jersey-based Cenlar’s upcoming occupancy of 780 Township Line Road in Yardley will displace existing tenants in that building, which will likely lead to additional lease deals. MARKET INDICATORS

Relative to prior period Q3 2016 Q1 2017* Direct Sublease Total Vacancy Net Avg Asking Class Inventory Absorption VACANCY Vacant Vacant Vacant Rate Annual Rent NET ABSORPTION Class A 2,959,534 560,559 41,718 602,277 20.4% 98,600 $24.38 CONSTRUCTION

Class B 2,718,420 575,034 62,166 637,200 23.4% (37,166) $19.12 RENTAL RATE

Arrows compare current period to the previous period and *Projected Total 5,677,954 1,135,593 103,884 1,239,477 21.8% 61,434 $21.68 forecast the next period.

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CENTRAL LOWER BUCKS OFFICE MARKET (CONTINUED)

New Supply, Vacancy and Absorption for Central/Lower Bucks Counties

200,000 40%

150,000 35%

100,000 30%

50,000 25%

0 20%

Square FeetSquare 2010 2011 2012 2013 2014 2015 2016 Square Feet Feet Square -50,000 15%

-100,000 10%

-150,000 5%

-200,000 0%

Absorption Construction Vacancy Rate

MARKET ACTIVITY

Companies that provide business support to pharmaceutical and healthcare sector companies such as medical publishers, IT companies, communications firms and software providers have historically been a key demand sector in this submarket. Companies such as Centrak and inVentive Health expanded during 2016. Cenlar, a mortgage subservicer based in Mercer County, will be taking an entire building in Lower TOP TO BOTTOM: Makefield Corporate Center. Cenlar at Lower Makefield Corporate Center InVentiv Health at 100 Brandywine Blvd Investment sale activity was dormant during the last half of 2016. There were properties on the market that could potentially settle in the first quarter of 2017.

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Investor Activity

SALE COMPARABLES

Collegeville Park Medical 888 Glenbrook Avenue Center, 534 2nd Avenue 540 Woodbourne Road 119 Coulter Avenue 145 Brinton Lake Road 470 John Young Way Bryn Mawr, PA Collegeville, PA Langhorne, PA Ardmore, PA Glen Mills, PA Exton, PA

Photo

Date of Sale Mar-17 Jan-17 Jan-17 Oct-16 Sep-16 Aug-15

Price $1,370,000 $3,875,000 $2,050,000 $3,750,000 $4,850,000 $4,000,000

SF 7,408 15,030 14,100 13,800 15,900 15,275

Price/SF $185 $258 $145 $272 $305 $262

Cap Rate 8.00% 7.30% 7.00% NA NA NA

Buyer DCIDA/CR Miven Investments LLC Woodbourne Medical LLC Ardmore Statutory Trust RB Partners HealthCap Partners

Seller Camden Properties, inc. The Sanders Trust Aambaji, LLC Coulter Avenue Partners Brinton Lake LP 470 Partners

Occupancy 55% 100% 100% 100% 100% 100%

Tenancy Multi Multi Single Multi Multi Multi

Jefferson Radiology, Comprehensive Cancer Main Line Medical Bryn Mawr Dermatol- Center for Women's Healing Arts Studio, Dr. The Dentists at Brinton Care, Millenium Oncology Tenants Specialists ogy, Labcorp, Allergy & Health William Singletary MD, Lake, Crozer Health, Mgt, Empower Physical Asthma Specialists Addiction Counseling Nationwide Insurance Therapy

Yr Built/Renovated 1955 / 1990 2009 1997 1957 2007 2001

No. of Bldgs 1 1 1 1 1 1

No. of Floors 2 1 1 2 3 1

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Healthcare & Medical Office Market

Rothman Aria Bucks County Campus St. Mary Medical Center

Dense and increasingly aging population between Philadelphia and New York has resulted in an increase in large regional medical centers and smaller specialty facilities. The Route 1 and Route 413 corridors have become a magnet for health care facilities and medical office space.

Rothman Orthopedic Specialty Hospital (1) is a 65,000-square-foot multiple- Aria Health’s nursing program (4) is located at 3 Neshaminy Interplex discipline outpatient surgical hospital located on Tillman Drive in Bensalem. It is equipped for joint replacements, orthopedic surgery, pain management and St. Mary Medical Center (5) in Langhorne is a major regional health campus spine surgery. and the largest employer in Bucks County. The campus has five key units: emergency and trauma services, heart and vascular care, cancer (oncology), Holy Redeemer HealthCare at Bensalem (2) is located in the Rothman neurosciences and orthopedics. St. Mary Medical Center operates the only Hospital building. This site houses family medicine practices, OB/GYNs and state-accredited Regional Trauma Center and the only pediatric emergency breast surgeons. Full lab and testing services are also available including care center in Bucks County. The hospital is licensed for 373 beds and has a mammograms, bone density, ultrasound and X-rays. staff of over 700 physicians.

Aria™ Health’s Bucks County Campus (3) is located on Oxford Valley Road. Forest Health Medical Center (6) operates a 60,000 square foot surgery The 112-bed medical/surgical facility has a full range of inpatient and outpa- center at 280 Middletown Boulevard. tient services including emergency medicine, orthopedics, neurosurgery, urology, rehabilitation medicine, occupational medicine and behavioral medi- Oxford Valley Medical Plaza (7) at 240 Middletown Boulevard is 67,260 cine and a newly equipped, state-of-the-art radiology department. square foot dental and medical office center which has a state of the art dental surgery center.

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 26 OFFICE & HEALTHCARE MARKET

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!(Newtown Grant

!(Yardley

#!"95 Penn Medicine Bucks County 332 29 (8) is a multispecialty outpatient 32 232 medical facility in Yardley 10 !(Newtown

Lifestyle Healthcare Group (9) 532 Woodside was proposing a 137,000- 8 !( square-foot multi-specialty 332 !(Morrisville Richboro center and office building at New !( Road in Bensalem. This project is on hold. aerial ? !( Woodbourne Village Shires !( !( 5 Aria is in the pre-development /(1

approval process for a 41-acre 413 Fallsington site (10) at Stony Hill Road and !(

the Newtown Bypass. Aria 232 532 Churchville !( 33 scaled back its original concept 76 Fairless Hills !( and new plans a 180,000- 76

!(Langhorne square-foot healthcare village 213 Southampton Holland with medical office space,!( clinical !( Langhorne Manor research space, ambulatory care !( and rehabilitation services as

well a senior center and spa. 132 !(Levittown

!(Penndel 413 Oakford #!"276 !( Hulmeville /(1 !( !(Feasterville !(Tullytown #!"95 Trevose /(13 !(

513 99 !(Edgely

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532 4 Newportville Terrace #!"276 4 !( !(Florence

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!(Bristol West Bristol (130 !( /

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM Copyright © COLLIERS 2012 Colliers International INTERNATIONAL P. 27 Source: Esri, DigitalGlobe, GeoEye, i-cubed, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GIS User Community

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ABOUT ST. MARY MEDICAL CENTER ABOUT CHE TRINITY INC. St. Mary Medical Center in Langhorne, PA, is the most comprehensive medical Operating publicly as “Trinity Health”, CHE Trinity Inc. is based in Livonia, Michigan, center in the area. As a national Truven Health Top 100 Hospital®, its and maintains the CHE divisional office in Newtown Square, Pennsylvania, a suburb compassionate staff of more than 700 physicians, 3,200 colleagues, and 1,100 of Philadelphia. With 2014 annual operating revenues of about $13.6 billion and volunteers is committed to providing excellence in patient safety and quality care. assets of $20.4 billion, the new organization returns almost $1 billion to its commu- St. Mary, licensed for 366 beds, offers state-of-the-art technology and highly nities annually in the form of charity care and other community benefit programs. skilled physicians and clinical professionals in providing advanced care for complex Trinity Health serves people and communities in 21 states from coast to coast with cases. Services include a comprehensive cardiovascular program; the only 82 hospitals, 89 continuing care facilities and home health and hospice programs state-accredited Trauma Center in Bucks County; Emergency Services with a that provide nearly 2.8 million visits annually. It employs more than 89,000 people, dedicated Pediatric Emergency Care Center; a Joint Commission-certified Primary including 3,300 employed physicians. The consolidated ministry is committed to Stroke Center; a free-standing inpatient Rehabilitation Hospital; neurosciences; those who are poor and underserved in its communities and is known for its focus specialized diagnostic imaging; obstetrics and NICU; a Joint Commission-certified on the country’s aging population. As a single, unified ministry, the organization is joint replacement program; exceptional orthopedic surgical capabilities and the innovator of Senior Emergency Departments and the largest not-for-profit rehabilitation; a Joint Commission-certified sleep disorders center, pain provider of home health care services — ranked by number of visits — in the management; Wound Healing and Hyperbaric Medicine Center; the St. Mary Breast nation, as well as the nation’s leading provider of PACE (Program of All Inclusive Center; and the St. Mary Regional Cancer Center. St. Mary’s LIFE program brings Care for the Elderly) based on the number of programs. Trinity Health is sponsored medical, health, social services and home care to area senior citizens. Outreach to by Catholic Health Ministries, a Public Juridic Person of the Holy Roman Catholic the poor and underserved includes its Community Ministries in Bensalem – the Church. Mother Bachmann Maternity Center, Children’s Health Center and Family Resource Center – as well as ongoing support for the Adult Health Clinic operated by the Bucks County Health Improvement Partnership. Located on 53 acres in beautiful FINANCIAL Bucks County, St. Mary was founded in 1973 by the Sisters of St. Francis of CREDIT RATINGS Philadelphia. In 1996, St. Mary Medical Center became an Eastern Region member of Catholic Health Initiatives (CHI), a national, non-profit Catholic health-care Rating AA- Aa3 AA system. In July 2001, St. Mary transferred to Catholic Health East, a Catholic Date of Search 1/30/2015 1/28/2015 1/27/2015 health-care system with a regional focus. In May 2013, Catholic Health East and Trinity Health Corporation consolidated their two health care systems to create Outlook Stable Stable CHE Trinity Inc., a unified Catholic national health system. www.trinity-health.org www.stmaryhealthcare.org

1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 28 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of 1609 Woodbourne, Levittown (“the CONTACT Property”). It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the Inspections will be arranged by information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and appointment only with the Owner’s furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose Exclusive Agents: or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or Jeff Algatt completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect Senior Vice President, thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the Investment Services material contained herein and conduct their own due diligence. DIRECT +1 267 252 0191 EMAIL [email protected] By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: Matt Shanahan 1) The Offering Memorandum and its contents are confidential; Senior Vice President 2) You will hold it and treat it in the strictest of confidence; and DIRECT +1 215 928 7560 EMAIL [email protected] 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of 1609 Woodbourne Road, or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, COLLIERS INTERNATIONAL employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of Ten Penn Center the Property. 1801 Market Street, Suite 550 Philadelphia, PA This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that +1 215 925 4600 there has been no change in the state of affairs of the Property since the date this Offering Memorandum. www.colliers.com/philadelphia TENANT OVERVIEW MultiSingle Tenant Tenant Medical NNN Leased Investment Healthcare Opportunity Woodbourne Road Office Campus Offering Summary

• Healthcare Related Offices in a Destination Office Park • Major Health System and Fortune 500 Credit Leases • Long Term Established Medical Practice • Additional Complementary Tenants

• Strong Location: Population, Income, Amenities, Transportation Bldg 100 • Offered Free and Clear of Debt

Colliers International, as exclusive agent of the Owner, The Property is one of five single story office condo- is pleased to offer for sale to qualified investors the minium buildings constructed in the late 1980’s and medical office building located at 1609 Woodbourne known as The Woodbourne Campus, a familiar con- WOODBOURNE ROAD Road in Levittown, Pennsylvania 19057. List Price is centration of complementary medical, health care and $1,800,000. professional offices. The Property itself is comprised of ten condominium units, all owned by the seller. This 7,750-square foot condominium property is 100% Vital Data occupied by three tenants whose leases expire vari- At List Price the Offering is projected to yield an 8.1 ously in the next three years, but based on their tenure % Cap Rate and a 10.5% Cash-on-Cash Return in the 1609 Woodbourne Road, Levittown, PA Address 19057, Bucks County and success at the Property are projected to continue Purchaser’s first year of ownership. renewing their respective leases. Two of the three ten- Building Area 7,750 Rentable Square Feet ants offer investment grade credit. Langhorne Physician Services, Quest Tenants Diagnostics, Hornbeck Chiropractic % Leased 100% Use Medical Offices Please Contact: Year Built 1988 COLLIERS INTERNATIONAL Jeff Algatt Matthew Shanahan Title Condominium Senior Vice President Senior Vice President Ten Penn Center Investment Services Office Brokerage 1801 Market Street 2017 NOI $146,020 ($18.84 Per Rentable SF) Suite 550 Price $1,800,000 DIRECT +1 610 557 0180 DIRECT +1 215 928 7560 Philadelphia, PA 19103 MOB +1 267 252 0191 MOB +1 215 813 1119 +1 215 925 4600 Price Per SF $232 Per Rentable SF [email protected] [email protected] www.colliers.com Debt Service $79,729 Equity $630,000

1609 WOODBOURNE ROAD | OFFERING SUMMARY Cap Rate 8.1%

Materials contained in this Investment Offering are confidential, furnished solely for the purpose of considering the “AS IS” acquisition of 1609 Woodbourne Road, Levittown, PA Cash-on-Cash 10.5% described herein as “the Property” and are not to be used for any other purpose or to be made available to any other person without the express written consent of Colliers International and Owner. No representations, expressed or implied are made as to the foregoing matters by Owner, Owner’s property management/ leasing agent, Colliers or any of their officers, employees, affiliates and/or agents. 1609 WOODBOURNE ROAD | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 30