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O F F E R I N G M E M O R A N D U M ™

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E X E C U T I V E S U M M A R Y

f i n a n c i a l O V E R V I E W

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Kyle MatthewsBroker of RecordLic # RC51700140 (IN)

M I c h a e l M o r e n o

Senior Associate

Michael .Moreno@matthews.comDIR (949) 432-4511MOB (818) 522-4497LIC # 01982943 (CA)

r a h u l c h h a j e d

Single Tenant Net Lease

Rahul .Chhajed@matthews.comDIR (949) 432-4513MOB (818) 434-1106LIC # 01986299 (CA)

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P r o p e r t y

• Fresenius Medical Care currently occupies 5,944 SF of the property; remaining 1,800 SF is used for storage by single unit retailer (The Party Guys) on month/month lease

• Significant Upside Potential – Current lease Fresenius lease expires in 2019 – potential for expansion upon expiration of current term

• Annual Rental Increases – Fresenius lease provides 2% Annual Increases throughout base term of lease – 2.50%-3.00% increases in options

L o c at i o n

• Very Active Clinic – Fresenius offers dialysis at 12 stations – Six Days/Week – 2 Shifts/Day

• Clinic is strategically located in the city’s main retail corridor – surrounding national tenants include – Walmart Supercenter, McDonald’s Wendy’s, Waffle House, Hampton Inn, Cracker Barrel, Sonic, Burger King, and Holiday Inn, amongst others

• Located within 2.5 miles of Scott Memorial Hospital – largest medical complex in Scottsburg

T e n a n t

• Fresenius Medical Care (NYSE: FMS) is the world’s largest dialysis provider and a fortune 500 company with a $26 Billion market cap

• The company currently holds an S&P credit rating of BBB- (Investment Grade Credit)

• Fresenius operates over 2,200 dialysis facilities in North America alone, with the company continuing its expansion domestically and overseas

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F r e s e n i u s , S c o t t s b u r g I N | 7

F R E S E N I U S M E D I C A L C A R E130 Westavia BlvdScottsburg, IN 47170

List Price ................................................................................................... $1,700,219

CAP Rate - Current ...........................................................................................8.41%

Gross Leasable Area ..............................................................................± 7,648 SF

Lot Size ........................................................................... ± 1.47 Acres (64,033 SF)

Year Built .............................................................................................................. 1963

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Base - 2017-2018 $11,915.70 $142,988.39 $18.70 8.41%

Base - 2018-2019 $12,171.12 $146,053.40 $19.10 8.59%

Option 1 $12,506.17 $150,074.04 $19.62 8.83%

Option 2 $14,311.36 $171,736.29 $22.46 10.10%

Option 3 $16,439.54 $197,274.50 $25.79 11.60%

Tenant Summary

Tenant Trade Name Fresenius Medical Care

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof and Structure Landlord Responsible

Original Lease Term 10 Years

Rent Commencement Date 12/21/2009

Lease Expiration Date 12/20/2019

Term Remaining on Lease ± 2 Years

Increases 2% Annual Increases in Base Term; 2.50-3.00% in Options

Options Three, 5-Year

*NOI = Fresenius Rent ($157,672.92) + Party Guys Rent ($4,500) – Expenses ($19,184.53) = $142,988.39

L e a s e A b s t r a c t

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Lease Abstract

Tenant: Bio-Medical Applications of Indiana, Inc. DBA Fresenius Medical Care Scott County

Tenant Address: 920 Winter St. Waltham, MA 02451

Date of Lease: May 13, 2009

Lease Commencement: December 21, 2009

Lease Expiration: December 31, 2019

Lease Term: Ten (10) Years – 3 remaining

Lease Type: NN

Square Footage 5,944 SF

Annual Rent: $157,672.92

Rental Increases: 2% Annual Increases

Renewal Options: Three (3) Five (5) Year Options

Real Estate Taxes: Landlord

Insurance: Tenant & Landlord

Repairs and Maintenance:

Tenant responsible for non-structural portions of the interior of the premises

Landlord responsible for repairs/replacements to exterior and structural portions including: roof/structure/parking lot

Sales: None

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F r e s e n i u s , S c o t t s b u r g I N | 1 1

Property Name Fresenius Medical Care

Parent Company Trade Name Fresenius Medical Care Holdings, Inc.

Ownership Subsidiary

Revenue $10.37B

Net Income $787.64M

No. of Locations ± 2,200

No. of Employees ± 108,851

Headquartered Waltham, MA

Website www.fmc-ag.com

Year Founded 1988

TENANT OVERVIEW

Fresenius Medical Care Holdings, operating as Fresenius Medical Care North America or FMCNA, operates a network of some 2,200 dialysis clinics located throughout the continent. One of the largest providers of kidney dialysis services, FMCNA offers outpatient and in-home hemodialysis treatments for chronic kidney disease. The company’s operating units also market and sell dialysis machines and related equipment and provide renal research, laboratory, and patient support services. FMCNA oversees the North American operations of dialysis giant Fresenius Medical Care AG & Co.

Fresenius Medical Care is the world’s leading provider of products and services for people with chronic kidney failure. Around 2.8 million patients with this disease worldwide regularly undergo dialysis treatment. Dialysis is a vital blood cleansing procedure that substitutes the function of the kidney in case of kidney failure. The company’s strategy is geared toward sustainable growth and aims to continuously improve the quality of life of patients with kidney disease by offering innovative products and treatment concepts of the highest quality.

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Property Name Fresenius

Property Address130 Westavia Blvd

Scottsburg, IN 47170

Assessor’s Parcel Number 72-04-24-130-001.035-008

Site DescriptionNumber of Stories One

Year Built 1963

Gross Leasable Area (GLA) ± 7,648 SF

Lot Size ± 1.47 Acres (64,033 SF)

Type of Ownership Fee Simple

Parking ± 20 Surface Spaces

Parking Ratio 2.62 : 1,000 SF

Landscaping Professional

Topography Generally Level

p a r c e l m a p

ConstructionFoundation Concrete Slab

Framing Steel

Exterior Brick

Parking Surface Asphalt

Roof Flat

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S u r r o u n d i n g R e ta i l

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Scottsburg, IN is just 30 miles north of Louisville, KY in Scott County. The historic town offers antique shops, parks, and beautiful spots for fishing and outdoor fun. Hardy Lake is a popular destination for boating, hiking, and camping. The Knobstone Trail is Indiana’s longest trail sharing the 741-acre reservoir with Hardy Lake.

Scott County us experiencing economic growth in durable good manufacturers and technology-oriented companies. The products being produced include software, biotechnology, publishing, printing, non=perishable foods, and electronics. The SCEDC is dedicated to seeing the success in the economic well-being of Scott County. They support growth in several fields. Major Industries in Scott County include Advanced Manufacturing, Military Related Contractors, Life Sciences, Food and Beverage, Optical Technologies, Logistics, Agriculture, and Tourism.

S c o t t s b u r g , I N

D E m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 1,916 8,803 15,940

2017 Estimate 1,903 8,769 15,923

2010 Census 1,901 8,889 16,291

2000 Census 1,675 8,376 15,756

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 841 3,604 6,404

2017 Estimate 834 3,576 6,372

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$61,078 $56,124 $54,390

A r e ao v e r v i e w

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LOUISVILLE, KY

Louisville is the largest city in the Commonwealth of Kentucky. It is one of two cities in Kentucky designated as first-class city. Louisville is an industrial, shipping, and commercial center. It has a prosperous river-town character with a distinct Southern accent. Louisville, situated on the Ohio River, is influenced by both Southern and Midwestern culture. Louisville is home to several annual cultural events, of which the most well-known is the Kentucky Derby, held at the historic Churchill Downs. Recently, Louisville has emerged as a major center for the healthcare and medical sciences industries. Louisville has been central to advancements in heart and hand surgery as well as cancer treatment.

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E C O N O M YLouisville is home to dozens of companies and

organizations across several industrial classifications. Its strategic location at the Falls of the Ohio and its unique position in the central United States make it

a practical location for the transfer of cargo along its route to other destinations. Louisville offers a high-value

proposition and allows businesses to succeed in a vibrant city. Louisville is a competitive, authentic, global city, home to UPS Worldport and a center for advanced manufacturing and logistics. Since 2014, Louisville has

seen more than $8 billion in investments

T O P E M P L O Y E R S

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Fresenius Medical Center located at 130 Westavia Blvd, Scottsburg, IN 47170 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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Fresenius 1 3 0 W e s t a v i a B l v d | S c o t t s b u r g , I N

™

Kyle MatthewsBroker of RecordLic # RC51700140 (IN)

M I c h a e l M o r e n o

Senior Associate

Michael .Moreno@matthews.comDIR (949) 432-4511MOB (818) 522-4497LIC # 01982943 (CA)

r a h u l c h h a j e d

Single Tenant Net Lease

Rahul .Chhajed@matthews.comDIR (949) 432-4513MOB (818) 434-1106LIC # 01986299 (CA)