INVESTMENT OFFERING

SOUTHWEST BEHAVIORAL HEALTHAT COLORADO PLACEBULLHEAD CITY, AZ

2 5 8 5 M I R A C L E M I L E , U N I T 1 0 6 , B U L L H E A D C I T Y, A Z 8 6 4 4 2

2 5 8 0 H I G H W AY 9 5 , S U I T E S 1 1 9 - 1 2 5 , B U L L H E A D C I T Y, A Z 8 6 4 4 2

18301 Von Karman Avenue, Suite 800, Irvine, CA 92612 P (949) 221-1800 F (949) 221-1830 farislee.com

I N V E S T M E N T A D V I S O R

Christopher DePierroManaging Directorcdepierro@farislee.com(949) 221-1824R.E. License No 01158321

E X C L U S I V E B R O K E R

Thomas PancraziPresidenttom@pancrazi.com(928) 782-5559R.E. License No BR009183000

Jay QuinnSenior Managing Directorjquinn@farislee.com(949) 221-1804

C A P I TA L M A R K E T S A D V I S O R

FINANCIAL ANALYSIS AREA OVERVIEWPROPERTY OVERVIEW

TABLE OF CONTENTS

11 164

Faris Lee Investments (“FLI”) has been engaged as the exclusive financial advisor to the Seller in connection with Seller’s solicitation of offers for the purchase of the property known as Southwest Behavioral Health, City of Bullhead City, County of Mohave, State of Arizona. Prospective purchasers are advised that as part of the solicitation process, Seller will be evaluating a number of factors including the current financial qualifications of the prospective purchaser. Seller expressly reserves the right in its sole and absolute discretion to evaluate the terms and conditions of any offer and to reject any offer without providing a reason therefore. Further, Seller reserves the right to terminate the solicitation process at any time prior to final execution of the Purchase Agreement.

The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property, and it is not to be used for any other purpose or made available to any other person without the express written consent of Seller or FLI. The material is based in part upon information supplied by the Seller and in part upon financial

information obtained by FLI from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and qualified in their entirety by the actual document to which they relate.

No representation or warranty, expressed or implied, is made by the Seller, FLI, or any of their respective affiliates as to the accuracy or completeness of the information contained herein. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property site or used in the construction or maintenance of the building at the Property site.

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 FLI or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

Prospective purchasers are not to construe the contents of this Offering Memorandum or any prior or subsequent communication from FLI or Seller or their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents as legal, tax, or other advice. Prior to submitting an offer, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.

S TAT E M E N T O F 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

PROPERTY OVERVIEW

P R O P E R T Y S P E C I F I C AT I O N S :

GLA: 8,490 SF

T E N A N T:

Southwest Behavioral Health

L O C AT I O N : 2580 Highway 95, Suites 119-125 Bullhead City, AZ 86442

$1,893,000PRICE

$152,820NOI

8.07%CAP RATE

Faris Lee Investments is pleased to offer for sale the commercial condominium interest in a single tenant, NNN leased to Southwest Behavioral Health Services, a leading statewide healthcare provider with 14 locations throughout the State of Arizona. The asset is part of Colorado Place, an approximately 100,000 SF mixed-use center located in Bullhead City, Arizona. The subject property consists of approximately 8,490 square feet of GLA and the tenant is on a NNN lease. Southwest Behavioral Health Services has been located at Colorado Place for 10 years. The lease term has approximately 5 years remaining with scheduled 2% annual rent increases that contribute strong NOI growth throughout the lease term. Colorado Place is also home to several other professional healthcare providers, service oriented tenants, retailers, and commercial users.

The subject property is ideally located in the heart of the regional trade area that consists of a population of approximately 140,000 people. Furthermore, Colorado Place is located along the most heavily travelled portion of Mohave Valley Highway / State Highway 95 with more than 35,000 vehicles per day, and near Mohave High School, Bullhead City Civic Center, and the planned Civic Center Park and Events Center. The subject property strategically spans an entire city block, with one corner of the site at the signalized, hard corner intersection of Riverview Drive and Highway 95, providing ease of access to the subject property. Highway 95 is the only major north-south corridor that connects the immediate trade area of Bullhead and Laughlin with the cities of Needles and Lake Havasu, and provides access to Interstate 95, which leads to nearby Las Vegas. The subject property is located within close proximity to Smart N Final, Hobby Lobby, Wal-Mart Supercenter, Target, Safeway, Sam’s Club, Home Depot, Lowe’s and many other national tenants. There are nearly 50,000 permanent residents with an average household income also nearly $50,000 surrounding the subject property. Additionally, the immediate trade area is supported by more than 34,600 daytime employees within a 5 mile radius.

THE OFFERING

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PROPERTY HIGHLIGHTS

Diverse and Strong Economic Drivers Provide Sustained Growth to Bullhead City / Laughlin Economy » Area benefits from over 4 Million annual visitors and tourists to

Bullhead City and Laughlin

» The attraction and draw of the Colorado River and 10 renowned Casinos with approximately 12,000 hotel rooms and the 4th largest gaming volume in the United States

» Bullhead City is a leader in Sports Tourism, with dozens of National and Regional Sports Tournaments on an annual basis bringing economic stimulus to the city and surrounding communities

Strategic and Centralized Location in Bullhead City / Laughlin » Colorado Place is located at the signalized intersection of

Highway 95 & Riverview Drive (35,590 VPD), which is within the commercial core of the trade area

» Located in close proximity to Bullhead City Civic Center, all Government Offices, Mohave County State and Federal Offices, Mohave High School (1,400 students) and 2 elementary and 2 middle schools, and the planned Civic Center Park and Events Center

» Colorado Place is located at the most travelled portion of Highway 95, which connects the “River Cities” and is the main corridor connecting Laughlin, NV to Needles, CA

Anchor Tenant of Dominant Mixed Use/Healthcare-Oriented Center » Synergistic co-tenants include another well-known regional healthcare

provider North County Health Care, Arizona Kidney Disease Center, pediatric office, Edward Jones and Sears Hometown

Stable Investment / Long Term Tenant Lease with Strong Increases » Southwest Behavioral Health Services has been located at Colorado

Place for 10 years and increased their GLA by 2,400 SF in 2011 showing faith in the location and bolstering their presence in the market

» Provides secure income stream to the investor

» 2% annual increase is a natural hedge against inflation

Ease of Management / NNN Lease » Tenant reimburse for Taxes, Common Area Maintenance and Insurance

» Landlord (HOA Director) Responsible for Roof, Structure and part of HVAC Maintenance

» Ideal Investment for an out-of-state investor as the HOA/CAM Management Director maintains the overall shopping center

Unique and Dynamic Regional Trade Area with Strong Demographics » Colorado Place is located within the Commercial Core of the trade area

serving Bullhead City, AZ, Laughlin, NV, Kingman, AZ, Fort Mohave, AZ and Needles, CA

» Approximately 140,000 population in the trade area

» Approximately 700 residential units planned for 2019 in Bullhead City and surrounding trade area

» Daytime employment of 34,000+ in the immediate trade area

Rentable Area

8,490 SF (Condo Unit)

Ownership

Commercial Condominium Interest

Access

There are seven (7) access points to the center: one (1) along Highway 95, three (3) along Riverview

Drive and three (3) along Havasupai Drive.

Year Built

2004Zoning: C2

(District Commercial: General Sales & Services)

Parking

There are approximately 348 dedicated parking stalls for the center. All tenants have equal access

to all parking stalls.

Traffic Counts (Regis 2019)

Highway 95: 35,590 VPDRiverview Drive: 7,218 VPD

Miracle Mile: 7,167 VPD

PROPERTY SPECIFICATIONS

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2580 Highway 95, Suites 119-125, Bullhead City, AZ 86442

S I T E P L A N

Miracle Mile

Mohave Valley Highway

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SITE PLAN NOT TO SCALE 8

A E R I A L - C L O S E

L A U G H L I N , N E VA D A H O T E L S A N D C A S I N O S

12,000 HOTEL ROOMS 4TH LARGEST GAMING REVENUE IN THE US

Aquarius Edgewater Tropicana

Golden Nugget

Harrah’s Don Laughlin’s Colorado Belle

Pioneer

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DEMOGRAPHICS (REGis 2019) 3 MILES 5 MILES

Population 31,241 49,880

Average HHI $46,412 $49,586

Total Households 14,145 22,959

A E R I A L - F A R

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AREA OVERVIEW

T R A D E A R E A M A P

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Bullhead City, AZ (REGis 2019) 1 Mile 3 Mile 5 Mile Trade Area

2019 Estimated Population 2,755 31,241 49,880 140,067

2024 Projected Population 2,798 33,230 53,001 148,189

2010 Census Population 2,623 30,612 46,255 131,830

2000 Census Population 2,166 27,741 40,460 106,173

Projected Annual Growth 2019 to 2024 0.3% 1.3% 1.3% 1.2%

Historical Annual Growth 2000 to 2019 1.4% 0.7% 1.2% 1.7%

2019 Median Age 51.1 48.8 49.7 48.5

2019 Estimated Households 1,319 14,145 22,959 61,678

2024 Projected Households 1,316 14,765 23,852 64,111

2010 Census Households 1,161 12,820 19,711 54,493

2000 Census Households 893 11,337 16,689 43,101

Projected Annual Growth 2019 to 2024 - 0.9% 0.8% 0.8%

Historical Annual Growth 2000 to 2019 2.5% 1.3% 2.0% 2.3%

2019 Estimated Average Household Income $52,750 $46,412 $49,586 $52,745

2019 Estimated White 81.8% 78.5% 79.6% 82.7%

2019 Estimated Black or African American 1.3% 1.8% 2.4% 2.1%

2019 Estimated Asian or Pacific Islander 1.7% 1.6% 2.1% 1.8%

2019 Estimated American Indian or Native Alaskan 1.3% 1.2% 1.2% 1.8%

2019 Estimated Other Races 13.8% 17.0% 14.8% 11.6%

2019 Estimated Hispanic 21.0% 28.2% 24.5% 19.3%

2019 Estimated Total Businesses 284 1,307 1,892 5,185

2019 Estimated Total Employees 3,592 10,956 34,614 64,921

D E M O G R A P H I C S

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* REGis 2019, city-data.com and census.gov

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C I T Y I N T E L

D I S T A N C E F R O M :

Phoenix, AZLas Vegas/Henderson, NV Los Angeles, CAFlagstaff, AZ

102 Miles

16.6%Population growth since 2000

49,880Estimated population in 5 mile radius

80.9%Home appreciation since 2000

$52,750Average household income in 1 mile radius

18 MinutesAverage commute time

84 Miles 183 Miles 217 Miles 277 Miles

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Bullhead City Bullhead City is located in west-central Mohave County in the tri-state area of Arizona, California and Nevada. Among Arizona’s fastest growing communities, it is the sister city to Laughlin, Nevada and just 90 minutes south of Las Vegas. Bullhead City was incorporated in August 1984.

Bullhead City has also been referred to as Arizona‘s West Coast because the City is located on the east bank of the Colorado River near the juncture of Arizona, California and Nevada. Bullhead City serves as the economic hub and retail shopping center for Western Mohave County and Southeastern Clark County, Nevada. It’s easily accessible by major highways and a short drive from Los Angeles, Phoenix and Las Vegas.

Economic HighlightsBullhead City’s economic activities are mainly related to tourism and retail sales. The City, as well as community groups, have been working diligently to attract visitors from throughout the United States and beyond for events being held within the community. The biggest event is the annual River Regatta. Although it started out small in August 2007, with only 583 participants, it grew to 30,000 people by 2016 and capacity has since been capped at 20,000.

The City hosts an annual youth soccer tournament in February of each year. The tournament attracts upwards of 120 teams from California, Nevada and Arizona. Softball leagues and tournaments are held throughout the year. The largest tournaments take place in March, including the annual senior softball tournament that attracts 70 teams from throughout the United States and Canada, and the Dave Kops Tournament of Champions, which attracts some of the top high school softball teams from throughout the country. The City, in partnership with the Bullhead Area Chamber of Commerce and the Southern California Harley Davidson Dealers Association, hosts the annual Bullhead City Bike Fest. This event is held in April, in conjunction with the annual Laughlin River Run. The event attracts motorcycle enthusiasts to stop in Bullhead City at Harley Park (i.e. Community Park) and enjoy the activities that are happening on this side of the river.

There are ten casinos in Laughlin, Nevada located just across the Colorado River from Bullhead City. Tourism is a primary economic activity centered on the Laughlin resort/gaming industry, area water sports, golfing and fishing.

A R E A O V E R V I E W

City of Bullhead City

Western Arizona Regional Medical Center

Valley View Medical Center

Mohave Community College

Bullhead Unified School District

Colorado River Unified School District

Home Depot

WalMart

Lowe’s

Sam’s Club

Target

M A J O R B U L L H E A D C I T YA R E A E M P L O Y E R S

FINANCIAL ANALYSIS

Annual$/SF

8,490 $12,735 $1.50 $152,820 $18.00 Feb-2020 2% $12,990 $1.53 $155,876 $18.36 NNN 8/1/2009 12/2/2024Feb-2021 2% $13,249 $1.56 $158,994 $18.73Feb-2022 2% $13,514 $1.59 $162,174 $19.10Feb-2023 2% $13,785 $1.62 $165,417 $19.48

Notes Admin Fee - Lesser of 15% of total of all other Common Area Expenses or $0.30 PSF of Floor AreaCAM Cap - Not to exceed $3.00 PSFTermination Right - Tenant may terminate lease within 9 months of notice to Landlord in the event that public funding for its programs are no longer available. See agent for more details.

Year 5: $15,980.33/mo.

Year 1: $14,198.32/mo.Year 2: $14,624.27/mo.Year 3: $15,062.99/mo.Year 4: $15,514.88/mo.

1 (5-Year)

MonthlyRent$/SF

Current Monthly

Rent

Recovery Type

LeaseStart

LeaseExpires

CurrentAnnual

Rent

AnnualRent$/SF

IncreaseDate

IncreaseMonthly

RentMonthly

$/SFAnnual

RentLease Options

Rental IncreasesSize (SF)

Tenant

Southwest Behavioral Health

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.17

R E N T R O L L & T E N A N T S Y N O P S I S

S O U T H W E S T B E H AV I O R A L H E A LT HSouthwest Behavioral & Health Services was established in 1969 as a federally funded program under a partnership known as St. Luke’s – Jane Wayland Community Mental Health Center. Incorporated in 1974 as a 501(c)3 non-profit, the organization continued to grow as Phoenix South Community Mental Health Center when federal funding ceased in 1979.

A merger acquisition of Community Behavioral Health in 1995 strengthened its position as one of the largest community-based behavioral health providers in the state. The merger acquisition of Rim Guidance Center in Payson, Arizona in 2000 allowed Southwest Behavioral & Health Services to achieve a major, long-term goal: to expand services beyond Maricopa County and thereby reduce dependence upon a single source of revenue. After over 40 years of community service, Southwest Behavioral & Health Services continues to prosper. In January 2011, Southwest Behavioral & Health Services acquired the existing Toby House, Inc. corporation, adding housing inventory for more than 170 seriously mentally ill adults, in addition to staff and services.

The agency employs just under 1,000 persons including psychiatrists, psychologists, therapists and other support staff who provide treatment to children and adults throughout the state. Staff and volunteers reflect the cultural diversity of the community. SB&H is governed by a Board of Directors comprised of approximately 15 community volunteers. Its service area includes the Phoenix metropolitan area, rural Maricopa County, Gila, Mohave, Coconino, and Yavapai Counties.

SB&H offers an array of programs to meet the unique needs of the communities it serves. These include outpatient mental health treatment and psychiatric services including medication monitoring; assistance for persons with addictions; intensive inpatient care for persons in crisis; residential housing, in-home and supported housing services; prevention services, community outreach and school-based counseling; services throughout the lifespan for members with Autism Spectrum Disorder (ASD); and four opioid replacement clinics throughout the state that are working tirelessly to save lives and help alleviate the statewide crisis. More recently, integrated care and value based contracting have been initiated to offer a more flexible and culturally sensitive approach to clients served and resolve the historical challenges of fragmented care. SB&H is one of the leaders in the United States in providing professional training through the Training Institute - Southwest Behavioral & Health, an American Psychological Association certified training program for psychologist and therapist internships. In addition, in 2010 SB&H developed a partnership with Sias University in China to participate with consultation, training and education. SB&H is proud to have been accredited by CARF (a nonprofit accreditor of health and human service programs) for more than 20 years.

SB&H continues to foster a whole healthcare model by seeking out opportunities and innovative approaches to treatment that focus on integrated care at its core. The company is committed to work to achieve its mission to help people discover their strengths and improve its communities.

Company Type: Private

Financial Information Lease Type: NNNPrice: $1,893,000Price/SF: $223

Property SpecificationsRentable Area: 8,490 SFLand Area: NA (Condo)Year Built: 2004Address: 2580 Highway 95, Suites 119-125

Bullhead City, AZ 86442Ownership: Condominium InterestTenant: Southwest Behavioral Health

Operating Information

In-Place Feb-2023Gross Potential Rent $152,820 $165,417

Plus Recapture NNN NNNEffective Gross Income $152,820 $165,417

Less Expenses (NNN) (NNN)Net Operating Income $152,820 $165,417

Cap Rate: 8.07% 8.74%

Tenant is responsible for taxes, insurance and CAM. Landlord is responsible for roof, structure and some HVAC.

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

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T R A N S A C T I O N S U M M A R Y

L E A S E S U M M A R Y

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Tenant Name: Southwest Behavioral Health Services, Inc.

Rentable Square Feet: 8,490

Original Lease Execution Date: May 27th, 2009

Original Lease Start Date: August 1st, 2009

Current Lease Expiration Date: December 2nd, 2024

Lease Type: NNN

Current Lease Term: 5 Years

Rent:

CurrentFebruary, 2020February, 2021February, 2022February, 2023

$12,735.00/mo.$12,989.70/mo.$13,249.49/mo.$13,514.48/mo.$13,784.77/mo.

Lease Options: 1 (5-Year)

Option Rent:

December, 2024December, 2025December, 2026December, 2027December, 2028

$14,198.32/mo.$14,624.27/mo.$15,062.99/mo.$15,514.88/mo.$15,980.33/mo.

Property Taxes, Insurance, CAM: Tenant Responsible

Expense Caps: CAM - Not to exceed $3.00 PSF

Roof & Structure: Landlord / HOA Responsible

HVAC: Tenant / Landlord Responsible

Parking Lot Maintenance: HOA Responsible

Admin/Management Fee:Lesser of 15% of CAM (excluding insurance and tax) or $0.30

PSF of floor area

Termination Right:Tenant may terminate lease within 9 months of notice to Land-

lord in the event that public funding for its programs are no longer available. See agent for more details.

18301 Von Karman Ave., Suite 800 Irvine, CA 92612 P (949) 221-1800 F (949) 221-1830 farislee.com

Christopher DePierroManaging Directorcdepierro@farislee.com(949) 221-1824R.E. License No 01158321

Thomas PancraziPresidenttom@pancrazi.com(928) 782-5559R.E. License No BR009183000

E X C L U S I V E B R O K E R I N V E S T M E N T A D V I S O R

SOUTHWEST BEHAVIORAL HEALTHAT COLORADO PLACEBULLHEAD CITY, AZ