DAVITA DIALYSIS & GEINSINGER HOSPITAL MEDICAL OFFICE BUILDING550 N 12th Street Leymone, Pennsylvania

Jonathan Peranichjonathan@phnlg.comDirect: 832-602-3383

Cell: 205-747-7183

INVESTMENT OVERVIEWPeranich Huffman Net Lease Group is pleased to offer for sale, the 100% occupied, 14,341 square foot medical office building located at 550 North 12th Street in the heart of the Harrisburg MSA.

The property is leased to four national and regional healthcare operators, with DaVita Dialysis & Geisinger Hospital occupying approximately 80% of the rentable area. Other tenants include Select Physical Therapy and Hand Therapy Associates.

In consideration of the immediate proximity to Geisinger Medical Center, a 311-bed hospital, the property is surrounded by other complimentary medical offices. Additionally, two University of Pittsburgh hospital systems are located within a four-mile radius of the subject property.

The demographics within the 3-mile and 5-mile radii show ample density, with population counts of approximately 90,000 and 184,000, respectively. Additionally, household incomes are consistently well above the national average, and the projected income growth rate within the immediate area is expected to increase by 17% within the next 5 years.

Constructed in 1996, the property underwent substantial interior renovations in 2014. The current owner also completed significant capital improvements to the exterior and structural components of the building, whereas all but one of the HVAC units have been replaced in the last three years, and a new roof was installed in 2014.

Each of the leases are structured on a net basis whereas the landlord is only responsible for the repair and replacement of the roof and exterior components of the premises. All tenants are responsible for their pro-rata portion of the utilities, property taxes, insurance, and common area maintenance expenses.

The property’s Fortune 500® anchor tenant, DaVita Dialysis, is a leading provider of kidney care in the United States and holds a net worth in excess of $18 billion. Specific to this facility, the 25-station practice offers three different types of patient care modalities, including (i) traditional hemodialysis, as well as (ii) peritoneal dialysis and (iii) home health training.

Of most importance, a recent Center for Medicaid and Medicare Service data report shows evidence of a strong private payor mix at this location, with overall patient reimbursements at levels far above the national average.

Offered at a 7.20% capitalization rate, this property provides an investor with the opportunity to acquire an asset at a low price per square foot with an exemplary tenant mix in a growing, demographically affluent market.

Occupancy

Units

NOI

AVG Rent/SF

PROPERTY OVERVIEW

Facility Type: Medical Office Building

Year Built: 1996

Year Renovated: 2014

Rentable Area: 14,341 SF

Occupancy: 100%

Units: Four

NOI: $196,294

AVG Rent Per SF: $13.69

Cap Rate: 7.20%

550 N 12th Street Leymone, Pennsylvania

RENT ROLL

Tenant Rentable Area

% of Total SF

Commencement Date

Initial Expiration

Initial Term Remaining Rent/SF Annual

Base RentCAM & Tax

Reimbursement Total Annual

Incomee Escalations

6,262 44% 1/1/2015 12/31/2025 8.2 Years $11.35 $71,074 $56,859 $127,933 2.5% Annually

2,800 20% 12/1/2016 11/30/2019 2.1 Years $15.84 $44,352 $25,424 $69,776 N/A

5,191 36% 12/1/2016 11/30/2019 2.1 Years $15.35 $79,666 $47,134 $126,801 3% Annually

DaVita Dialysis

Select Physical Therapy

Geisinger Health

Hand Therapy Assoc. 88 1% 2/1/2010 1/31/2020 2.3 Years $13.66 $1,202 $799 $2,001 N/A

14,341 100% 4.8 Years $13.69 $196,294 $130,216 $326,510

$196,294Base Rent Annual

CAM & TAX

TOTAL INCOME

$130,216

$326,510

$326,510Total Income

Expenses $130,216

NOI $196,294

Totals & Averages

INCOME STATEMENT

Income

Reimbursements

550 N 12th Street Leymone, Pennsylvania

550 N 12th Street Leymone, Pennsylvania

PURCHASE PRICE$2,726,000

CAP RATE 7.20%

PRICE PER SF$190

INVESTMENT HIGHLIGHTS:

• Located a mile from the 311-Bed Geisinger Holy Spirit Hospital. Additionally, two University ofPennsylvania hospital systems are located within a four-mile radius of subject property.

• Dense infill location, with population counts exceeding 90,000 within the subject property's 3-mileradius. Average household incomes consistently above the national average.

• Substantial renovations in 2014, inclusive of HVAC & roof replacements.

• Low base rents, averaging $13.69 per square foot.

• All leases are structured on a net basis, providing for minimal landlord responsibilities.

• All four leases are backed by either national or regional healthcare systems, with 80% of the rentablespace subject to annual rent escalations.

TENANT OVERVIEWSTenant Trade Name

Lessee Entity

Rentable Area

Inital Term Remaining

Option Periods

Website

DaVita, Inc. is one of the largest kidney care companies in the United States with a network of 2,350 outpatient dialysis clinics in 46 states serving a total of 187,700 patients. DaVita, Inc. generated $14.7 billion in revenue yielding it over $880 million in net income; DaVita, Inc. has a $4.6 billion net worth and holds a Ba2 credit rating with Moody’s Investor Services.

DaVita Healthcare Partners, Inc.

Total Renal Care, Inc.

6,262 SF

8.3 Years

(3) 5-Years

www.davita.com

Tenant Trade Name

Lessee Entity

Rentable Area

Inital Term Remaining

Option Periods

Website

Geisinger Health System is a physician-led, not-for-profit, integrated delivery system serving an area with approximately 2.6 million people in northeastern and central Pennsylvania with innovative products and services. A multispecialty group practice employing more than 740 physicians; 50 practice sites including 40 community practice clinics; the 220,000-member Geisinger Health Plan, which offers group, individual, and Medicare coverage and contracts with more than 18,000 independent providers including 90 hospitals; the Geisinger Center for Health Research; and medical education programs serving medical students, residents,fellows, and other medical professionals

Geisinger Medical Center

Spirit Physician Services

5,191 SF

2.2 Years

None

www.geisinger.org

Tenant Trade Name

Lessee Entity

Rentable Area

Inital Term Remaining

Option Periods

Website

Select Physical Therapy is a leading provider of physical therapy, hand therapy and sports medicine with approximately 954 locations in 32 states and the District of Columbia. Throughout the country they operate primarily as Select Physical Therapy, NovaCare Rehabilitation, Kessler Rehabilitation Center and KORT.

Select Physical Therapy

FC Select, LLC

2,800 SF

2.2 Years

(1) 5-Years

www.selectphysicaltherapy.com

Subject Property

SURROUNDINGMEDICAL

Penn State Medical Group +

Corizon Health + H UPMC PINNACLE

H UPMC WEST SHORE

HGEISINGER HOSPITAL

PinnacleHealth FastCare +

Average HH Income Growth 2000 - 2010 25.6% 28.0% 27.8%

Total Population 89,888 183,948 353,013

Households

Average Household Size

Household Growth 2017-2022

37,300 76,371 145,727

2.26 2.31 2.34

2.0% 3.3% 4.6%

% Population Above Age 65 14.8% 15.2% 16.2%

Average Household Income $70,173 $72,649 $79,529

Average HH Income Growth 2017 - 2022 15.5% 15.5% 14.9%

POPULATION 3 MILES 5 MILES 10 MILES

HOUSEHOLDS 3 MILES 5 MILES 10 MILES

INCOME 3 MILES 5 MILES 10 MILES

DEMOGRAPHICS

Offers should be submitted electronically to

Jonathan Peranichat jonathan@phnlg.com and include the

following information:

Purchase Price

Sources of Debt and Equity

Closing Period

Earnest Money

Other Terms

PA Broker of Record: Robin ZellersPA License #420525

(717) 761-5070

CONFIDENTIAL MEMORANDUM & DISCLAIMER

Peranich Huffman Net Lease Group (“Agent”) has been engaged as the exclusive agent for the sale of the Property, by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum.

The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Peranich Huffman Net Lease Group as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent or the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller.

Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Peranich Huffman Net Lease Group.