Bassett Healthcare EXCLUSIVE NET - LEASE OFFERING Click for Drone Video 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. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. 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CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. 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.