METROHEALTH OUTPATIENT SURGERY CENTER & MERCY MEDICAL CENTER HARRISON EXECUTIVE SUMMARY

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1 METROHEALTH OUTPATIENT SURGERY CENTER & MERCY MEDICAL CENTER HARRISON EXECUTIVE SUMMARY

2 2 THE OFFERING Holliday Fenoglio Fowler, L.P. ( HFF ), has been retained on an exclusive basis with respect to the disposition of the MetroHealth Outpatient Surgery Center & Mercy Medical Center Harrison, which consists of two medical office buildings (individually, the Property, MetroHealth Outpatient Surgery Center or Mercy Medical Center Harrison, and collectively the Properties ) located in the greater Cleveland and Cincinnati, Ohio metropolitan areas. The Properties total 70,002 rentable square feet and are 100% leased. Both assets are leased or guaranteed by investment grade health systems, MetroHealth (Moody s A3) and Mercy Health (Moody s Aa3). The Properties are high quality, single-tenant medical office buildings, that benefit from strategic locations. Further, the tenants have exhibited a commitment to these locations, demonstrated by continuous use and occupancy for the past 20 years. The Properties are currently 100% net leased with a weighted-average lease term of over five years as of 7/1/2017. Of note, the earliest expiration date between the two Properties is not until May 2021, providing stable cash flow with annual base rent increases. This allows an investor to build relationships with each health system and pursue lease renewal discussions to further increase each system s outpatient footprint in their respective market for years to come. The acquisition of the Properties provides an investor with the opportunity to invest in two facilities that are fully leased under triple net leases, are affiliated with strong credit health systems, and are strategically located in outpatient settings where healthcare is the largest employment sector in its respective market. The Properties are being offered free and clear of any debt and Property management services.

3 3 PORTFOLIO HIGHLIGHTS HIGHLIGHTS OF THE INVESTMENT OPPORTUNITY INCLUDE: STRONG OCCUPANCY The Properties are both 100% leased to dominant market-leading health systems. INVESTMENT-GRADE CREDIT & HEALTH SYSTEM TENANCY Mercy Health and MetroHealth are both investmentgrade credit, featuring Moody s credit ratings of Aa3 and A3 respectively. NATIONALLY RECOGNIZED MEDICAL SPECIALTIES Specialties include a nationally-accredited breast center, two ambulatory surgery centers, anesthesia pain management, audiology, ENT, imaging, laboratory, advanced MRI, neurosciences, OBGYN, ophthalmology, optometry, orthopaedics, physical medicine and rehab, physical and occupational therapy, radiology, surgical oncology, and urology. HISTORICAL OPERATING PERFORMANCE Mercy Health and MetroHealth have demonstrated permanence at their respective locations with a weighted average historical occupancy of almost 20 years. DYNAMIC HEALTHCARE-ANCHORED ECONOMIES Both Cleveland and Cincinnati heavily rely on the healthcare industry, as the two largest employers in the Cleveland MSA are health systems, while four of the ten largest employers in Cincinnati are in the healthcare sector. NEWLY EXECUTED LEASE EXTENSIONS MetroHealth completed their expansion objective by leasing the last remaining space at MetroHealth Outpatient Surgery Center as of June CONTRACTUAL RENT GROWTH All leases at Mercy Medical Center Harrison & MetroHealth Outpatient Surgery Center, are subject to contractual annual rent increases of 2% and 2.5%, respectively. TRIPLE NET LEASES All in-place leases at the Properties are structured as NNN.

4 4 TOLEDO CLEVELAND 80 AKRON 76 OHIO COLUMBUS DAYTON HARRISON CINCINNATI

5 5 PROPERTY OVERVIEW Name Address MetroHealth Outpatient Surgery Center 4330 W. 150th St, Cleveland, OH TENANCY OVERVIEW Since 1837, The MetroHealth System (Moody s A3) has provided Clevelanders with medical care across all levels of severity. Today, MetroHealth is an integrated health system with an acute care hospital housing a Level I Adult Trauma and Burn Center, a skilled nursing facility and more than 26 locations throughout Cuyahoga County with more on the way. Annually, they handle more than one million patient visits including more than 100,000 in the Emergency Department, one of the busiest in the country. Located just 10 minutes from the 520-bed MetroHealth Medical Center campus, the Property has been a convenient outpatient surgery center for the surrounding community since Additionally, a great number of the patients who seek medical attention at the Property are directly referred from the main hospital campus due its close proximity. The System has incorporated a wide array of clinical services and surgical specialties since they first opened solely as a sugery center. Such specialties include audiology, dental surgery, ENT, general surgery, OBGYN, occupational medicine, orthopedics, pain management, plastic surgery, podiatric surgery, spine center, urogynecologic surgery, urology, and more. Size (Sq Ft) 33,368 % Leased 100% Year 1 NOI $377,806 On/Off Campus Off Year Built 1984 # of Stories 2 Ownership Fee Simple LEASING SUMMARY In-Place Rent $11.28 Weighted Avg Lease Term 4.0 Years Rent Escalations 2.5% per annum Anchor Tenant The MetroHealth System (Moody's A3) % of GLA 100%

6 6 PROPERTY OVERVIEW Name Address Mercy Medical Center Harrison New Haven Road, Harrison, Ohio TENANCY OVERVIEW With the first Sisters of Mercy dating back to 1831, Mercy Health (Moody s Aa3) is a Catholic ministry, not-for-profit healthcare system serving Ohio and Kentucky. It is one of the largest not-for-profit health systems in the US, the largest health system in the state of Ohio, and the fourth largest employer in Ohio with more than 34,000 employees. Mercy Health is the largest provider of Medicaid services in Ohio offering $321 million in charity care in Mercy Health, one of the top 15 health systems in the United States according to Truven Analytics, has been treating residents of the greater northwest Cincinnati area at the Property for over 20 years. The Property is located on a 5.08 acre site along New Haven Road, the main thoroughfare for residents of Harrison and New Haven to I-74, providing easy access to Greater Cincinnati and throughout the CBD. Mercy Medical Center Harrison offers a wide variety of medical specialties including a 24-hour Emergency Care center for non-life threatening aliments. Other medical services offered at the Property include imaging, laboratory, occupational health, physical therapy, radiology, and surgical care. Size (Sq Ft) 36,634 % Leased 100% Year 1 NOI $426,068 On/Off Campus Off Year Built 1995 # of Stories 1 Ownership Ground Leased LEASING SUMMARY In-Place Rent $11.76 Weighted Avg Lease Term 5.4 Years Rent Escalations 2% per annum Anchor Tenant Mercy Health (Moody's Aa3) % of GLA 100%

7 7 CONTACTS INVESTMENT SALES PHIL MAHLER Managing Director ANTHONY FROGAMENI Associate Director MATT DICESARE Analyst FINANCING JASON BOND Director HFF CHICAGO 181 West Madison Street Suite 3900 Chicago, IL P: (312) F: (312) CHRISTINE M. RINTI OH Lic. #BRK HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on