CONFIDENTIAL 5020 ENGLISH TOWNE DRIVE OFFERING MEMORANDUM MEMPHIS, TN 38128

Actual Location Photo

LISTING IN CONJUNCTION WITH : JDS Real Estate Services, Inc. Broker of Record License: #332901

Josiah Byrnes Klinton Lewis Vice President - Capital Markets Associate - Net Lease Services [email protected] | +1.719.243.6569 [email protected] | +1.512.819.4729 EXCLUSIVE OFFERING CONFIDENTIALITY STATEMENT

PRESENTED BY: The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from the Embree Group of Companies (Embree Group) and should not be made available to any other person or entity without the written consent of the Embree Group (the Embree Group collectively refers to Embree Capital Markets Group, Inc., Embree Asset Group, Inc., Embree Healthcare Group, Inc., and Embree Construction Group, Inc.). This brochure has been prepared to provide summary information to prospective investors and to establish a preliminary level of interest in establishing an investment relationship with the Embree Group, which may or may not include the sale or purchase of any specific property referenced herein. Several Embree Group employees are licensed real estate agents and brokers in various states.

The information contained herein is not a substitute for a thorough due diligence JOSIAH BYRNES KLINTON LEWIS investigation. The Embree Group has supplied information in this brochure from VICE PRESIDENT ASSOCIATE-NET LEASE SERVICES sources we believe are reliable; however, all potential Buyers and Investors must Josiah Byrnes serves as Vice President Klinton Lewis serves as Associate of Net take appropriate measures to investigate and verify the income and expenses of Embree Capital Markets Group, Inc., Lease Services with Embree Capital Markets for any specific property, the future projected financial performance of any specific where he helps guide the formation and Group, Inc., where he is responsible for property, the size and square footage of any specific property and its improvements, execution of diversified real estate capital marketing current assets, new developments, the presence or absence of contaminating substances, PCB’s or asbestos, the structures and investment strategies for and private client’s commercial real estate compliance with State and Federal regulations, the physical condition of the individual, institutional, and international properties. Klinton also provides investment improvements thereon, or the financial condition or business prospects of any tenant or any tenant’s plans or intentions to continue its occupancy of any specific property. investors, developers, and tenants. advice to clients. ANNUAL RENT $175,100 Josiah joined Embree Group of Companies Prior to joining the Embree Capital Markets The Embree Group reserves the right to withdraw this solicitation at any time without in 2010. He received BA and MBA degrees Group Inc., Klinton served as a real estate prior notice. The information contained herein is based upon sources deemed to be from the University of Colorado, as well agent specializing in single-tenant, net-lease reliable, but the accuracy of the information is not guaranteed, nor should the information as a Master of Real Estate Development properties, with Marcus & Millichap. contained herein be considered all inclusive. Statements contained herein which involve Degree from Arizona State University. matters of opinion, whether or not identified to be that only, are not representations of fact. The price and terms of this offering may be subject to change at any time. +1.719.243.6569 +1.512.819.4729 [email protected] [email protected] The Embree Group is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s LISTING IN CONJUNCTION WITH : JDS Real Estate Services, Inc. logo or name is not intended to indicate or imply affiliation with, or sponsorship or Tennessee Broker of Record License: #332901 endorsement by, said corporation of the Embree Group, its affiliates or subsidiaries, or any agent, product, or commercial listing of The Embree Group, and is solely included for the purpose of proving tenant lessee information about this listing to prospective customers.

2 TABLE OF CONTENTS

Property & Lease Details - 4 -

Tenant Profile - 5 -

Site Plan | Building Plan | Elevations -6-

Maps & Aerials - 9 -

Area Overview - 14 -

Demographics - 15 -

Contact - 16 -

Representative Photo PROPERTY & LEASE DETAILS

THE OFFERING PROPERTY ADDRESS 5020 English Towne Dr. Memphis, TN 38128 TENANT Bio-Medical Applications of Tennessee, Inc.

GUARANTOR Fresenius Medical Care Holdings, Inc.

SITE DESCRIPTION BUILDING SIZE 9,550 SF Actual Location Photo LAND SIZE Approximately 2.098 Acres INVESTMENT SUMMARY OFFERING OVERVIEW ASSET CLASS Single-Tenant, Net-Leased Medical Embree Capital Markets Group is pleased to offer for sale a unique CAP RATE 5.50% single-tenant, net-leased dialysis clinic. The property was newly built for Fresenius in late 2016 and is being offered free and clear of any debt. PURCHASE PRICE $3,184,333 It is a unique opportunity for an investor to acquire a well-located, credit YEAR BUILT 2016 tenant asset in a desirable geography. This facility is being built due ANNUAL RENT to the growing need of end-stage renal disease treatment in the area. $175,100 The facility is reported to be able to treat 114 people with 25 stations. RENT PER/SF $18.34 LEASE COMMENCEMENT November 20, 2016

LEASE END November 30, 2031 AREA DESCRIPTION LEASE TERM REMAINING 13.7 Years Located in southwest Tennessee along the , Memphis LEASE TYPE NNN (Landlord responsible for roof & structure) is a city of approximately 653,000+ citizens (2013). Tennessee is one of the top three states with chronic kidney disease (CKD) according to LEASE ESCALATIONS 10% Every Five Years the Tennessee Kidney Foundation. Tennessee is also located within a RENEWAL OPTIONS Three (3) - Five (5) Year @ Lessor of FMV or 5.0% certificate of need (CON) state, which provides for a high barrier of entry for future competition.

4 TENANT PROFILE

INVESTMENT SUMMARY

COMPANY TYPE Public (NYSE: FMS) Fresenius Medical Care North America is a division of Fresenius 2015 REVENUE $16.7+ Billion Medical Care AG & Co. KGAA (NYSE: FMS), the world’s largest integrated provider of products and services for individuals STORE COUNT 3,400+ undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.5 million individuals worldwide. EMPLOYEES 104,000+ Fresenius Medical Care North America is a major provider of S&P CREDIT RATING BBB- kidney dialysis services and renal care products. They provide products, dialysis care services, education and support for WEBSITE www.fmc-ag.com Chronic Kidney Disease (CKD), including treatment options for later stage CKD.

Fresenius Medical Care provides renal services to over 270,000 people annually worldwide through a network of over 3,400 facilities.

The Company employs over 104,000 individuals and maintains a U.S. Corporate Headquarters in Waltham, MA.

North American Revenue accounts for over 66% of the total worldwide revenue generated by the company.

In 2015, the parent company, Fresenius Medical Care, posted net revenues of $16.73 billion dollars.

Fresenius was the 2013 winner of the Thompson Reuters Investor Relations Top Honor for Best Company in MedTech Services.

Representative Photo

5 SITE PLAN

9,550 SF

6 BUILDING PLAN

7 ELEVATIONS

8 LOCATION OVERVIEW CITY STATE

MEMPHIS, TN

MEMPHIS, TN

9 HEAT MAPS INCOME POPULATION

Current Year Estimated Current Year Estimated Persons per Square Mile Median HH Income October 2017 October 2017

10 COMPETITION DEMOGRAPHICS

10 Mile Radius

1

2 4 5 3 COMPETITIVE FACILITIES 6 1 DAVITA MILLINGTON 11 10 2 FMC NORTH MEMPHIS Group A 7 3 ISD BARTLETT, LLC 12 8

4 FMC BARTLETT 9 5 U.S. RENAL CARE GALLERIA DIALYSIS

6 FMC BARTLETT HOME, LLC

7 DAVITA DIALYSIS

8 MEMPHIS EAST DIALYSIS

9 W E L L B O U N D O F M E M P H I S , L L C

10 FMC SUMMER

11 MEMPHIS MIDTOWN DIALYSIS

12 SATELLITE HEALTHCARE GARDENS Group A 13 FMC MEMPHIS MIDTOWN

14 DAVITA MEMPHIS DOWNTOWN 15 ISD RENAL INC 16 FMC MEMPHIS 17 SATELLITE HEALTHCARE OF POPULAR AVENUE 18 ISD RENAL INC 19 MEMPHIS CENTRAL DIALYSIS 11 SITE AERIAL

9.8 miles to

Downtown Memphis

12 SITE AERIAL

15

15

H

Raleigh Group Covington Pike Pike Covington

13 AREA OVERVIEW

ABOUT MEMPHIS, TN

Memphis is a city in the southwestern corner of the state of Tennessee, and the county seat of Shelby County. The city is located on the fourth Chickasaw Bluff, south of the confluence of the Wolf and Mississippi rivers.

Memphis had a population of 652,717 in 2016, making it the second largest city in the state of Tennessee after Nashville. The greater Memphis metropolitan area, including adjacent counties in Mississippi and Arkansas, had a 2014 population of 1,317,314. This makes Memphis the second-largest metropolitan area in Tennessee, surpassed by metropolitan Nashville.

Memphis is the youngest of Tennessee’s major cities, founded in 1819 as a planned city by a group of wealthy Americans including judge John Overton and future president Andrew Jackson. A resident of Memphis is referred to as a Memphian, and the Memphis region is known, particularly to media outlets, as Memphis and the Mid-South.

14 DEMOGRAPHICS

TENNESSEE 5 MILE 10 MILE 15 MILE POPULATION Estimated Population (2017) 142,958 476,946 819,865 MEMPHIS Projected Population (2022) 142,983 473,587 823,532

Census Population (2010) 144,606 484,975 821,221 Projected Annual Growth (High Est.) 1.2% 1.1% 1.2% PerINCOME Capita Income 5 MILE$12,359 10 $12,861MILE 15$13,035 MILE Projected Annual Growth (Low Est.) -1.1% -1.1% -0.9% Average Household Income $50,531 $51,859 $58,934 HOUSEHOLDS Median Household Income $35,623 $39,093 $46,537 Estimated Households (2017) 60,544 185,384 313,858 Less than $15,000 17,149 42,503 55,046

Projected Households (2022) 60,921 184,581 315,751 $20,000 - $24,999 4,126 13,452 20,283 Estimated Households (2000) 67,190 204,593 320,059 $25,000 - $29,999 4,062 13,376 20,283 Estimated Households (2010) 60,662 187,686 313,649 $30,000 - $34,999 3,628 11,800 19,589 % of Annual Change (2010-2017) -1.4% -1.2% -0.3% $35,000 - $39,999 2,700 9,426 16,762 Average Household Size 2 2 2 $40,000 - $44,999 2,476 8,269 15,432

Housing Units Owner-Occupied 25,045 95,600 177,350 $45,000 - $49,999 2,312 7,674 14,136 $55,000 - $59,999 1,854 6,696 12,338 Housing Units Renter-Occupied 35,4498 89,783 136,508 $60,000 - $64,999 1,672 5,661 10,778 RACE/ETHNICITY $65,000 - $69,999 1,448 4,883 9,461

Total Population 142,958 476,946 819,865 $70,000 - $79,999 2,167 7,638 15,426 $80,000 - $89,000 1,564 5,695 12,685 White 36,710 135,623 307,028 Black or African American 100,109 313,048 456,705 DAYTIME American Indian or Alaska Native 300 964 1,741 Total Businesses 3,642 11,249 20,654 Asian 2,437 5,600 12,659 Total Employees 109,224 294,193 512,315 Hawaiian or Pacific Islander 29 134 244 Other Race 3,702 22,675 43,444

15 MEMPHIS, TN | OFFERING MEMORANDUM

EXCLUSIVELY PRESENTED BY:

LISTING IN CONJUNCTION WITH JDS Real Estate Services, Inc. Tennessee Broker of Record License: #332901

JOSIAH BYRNES | VICE PRESIDENT [email protected] | +1.719.243.6569 | www.EmbreeGroup.com

KLINTON LEWIS | ASSOCIATE - NET LEASE SERVICES [email protected] | +1.512.819.4729 | www.EmbreeGroup.com

ABOUT EMBREE The Embree Group of Companies provides nationwide turnkey real estate services, specializing in build-to-suit development, design/build, general construction, program management, and capital markets for specialty retail, financial, automotive, restaurant, pharmacy, and medical facilities. Embree’s fully integrated, in-house services allow us to become an extension of the tenant’s organization. Since 1979, Embree’s foundation has been built on developing tailored programs for 300+ national clients. The firm is headquartered near Austin, Texas, with regional offices located in Phoenix and Dallas. Over the past 38 years, Embree’s executive team has developed, built, or transacted more than 12,000 assets in all 50 states, Canada, and Puerto Rico with a total market value in excess of $10 billion.

Actual Location Photo