OFFERING MEMORANDUM. FRESENIUS MEDICAL CARE 387 W. Milltown Rd, Wooster, OH CONTACT US DANIEL H. KUKES KEVIN J. BAKER SCOTT SONENBERG

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1 OFFERING MEMORANDUM FRESENIUS MEDICAL CARE 387 W. Milltown Rd, Wooster, OH CONTACT US DANIEL H. KUKES Principal (248) KEVIN J. BAKER Principal (248) SCOTT SONENBERG Associate (248) Halsted Road, Suite 150 Farmington Hills, MI Phone: (248) landmarkinvestmentsales.com

2 CONFIDENTIALITY DISCLAIMER Landmark Commercial Real Estate Services, Inc. d/b/a Landmark Investment Sales ( BROKER ) has been retained by the Owner to sell the 100% fee simple title of this asset. The Broker is the exclusive agent for the sale of this asset. The Broker has prepared the Property Information with information provided by the Owner, from sources deemed to be reliable. The Potential Purchaser will conduct its own due diligence of The Property, independently and without reliance upon BROKER of the Owner. Information furnished herein, the Offering Memorandum (the OM ) is intended solely for the Potential Purchaser and its affiliates ( Recipients ) for its review of the acquisition of Fresenius Medical Care at 387 W. Milltown Rd, Wooster, Ohio ( Property ). All information in the OM ( Confidential Information ) shall be deemed confidential. Confidential Information shall not include any information which is generally available to the public or which becomes available to the Recipients on a non-confidential basis from a source that is or was under no obligation not to disclose such information. In consideration of Broker and disclosure of the confidential information, the recipient shall not at any time, attempt in any manner to deal directly in any manner or circumvent Broker. Unless otherwise agreed in writing or required by law, the Recipients will not use, disclose, or reveal any Confidential Information for any purpose other than in connection with the proposed transaction to any persons or entities other than those employees, officers, directors, bankers, advisors, representatives, or agents (collectively, Representatives ) who clearly need such access to perform their employment, fiduciary or contractual duties to the Recipient and to actively and directly participate in the evaluation of the Confidential Information. Additionally, Recipients shall not directly contact anyone directly associated with the Property without the express written consent of the Owner or Broker. Recipients agree not to contact or initiate contact with the Tenants, at any time, either directly or indirectly. Unless such approval is specifically granted in written from the Owner or Broker. This agreement shall be governed by the laws of the Michigan, and in any action brought to enforce the terms hereof, Recipients hereby irrevocably consents to jurisdiction and venue in the Circuit Court for the County of Oakland, State of Michigan, or the United States District Court, whichever the Owner may elect. The invalidity or unenforceability of any provision of this agreement as applied to a particular occurrence or circumstance shall not affect the validity of or enforceability of any of the other provisions of this agreement or the applicability of such provisions as the case may be. This agreement shall inure to the benefit of and may be enforced by the Owner and its successors and assigns and shall be binding on the Recipients, its officers, directors, partners, agents, members, representatives and successors in interest. If any portion of this agreement becomes the subject of litigation or arbitration, the prevailing party in such suit or proceeding shall be entitled to reimbursement for its reasonable costs, expenses and attorney s fees incurred, including those incurred in connection with any appeals. A copy of this agreement delivered by facsimile transmission shall be binder on both parties. 2

3 TABLE OF CONTENTS Investment Highlights 5 Offering Summary 6 Tenant Profile 7 Location Map 9 Market Aerial 10 Plat Map 12 Top Employers 13 Property Condition Summary 14 Demographics 15 Our Team 16 3

4 VIEW NORTH 4

5 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS Investment Grade Tenant As of December 31, 2015, Fresenius Medical Care (NYSE: FMS) reported total revenue of more than $16.73B, net income of $1.02B, and a net worth in excess of $9.8B. The company currently holds an investment grade rating of BBB- /Stable with Standard & Poor s. PRICING Price: $1,170,000 Cap Rate: 7.25% NOI: $84,775 Regional Trade Area Subject property is situated within a dense retail corridor consisting of Walmart, Lowe s, Kohl s, Dick s Sporting Goods, Elder Beerman, Pet Catan s, Best Buy, Tractor Supply, Staples, Petco, Cinemark, and JoAnn Fabrics. Strong Performing Location The subject property was a build-tosuit for Fresenius Medical Care in Fresenius Medical Care has been in this location for over 18 years. 5

6 OFFERING SUMMARY RENT SCHEDULE LEASE DETAILS Years Annual Base Rent Remaining Lease Term: 6 years, 8 months 6/1/09 5/31/23 $88,775 *current Lease Type: NN Lease Commencement: 1/9/1998 Option Period 1 6/1/23 5/31/28 Fair Market Value Option Period 2 6/1/28 5/31/33 Fair Market Value Lease Expiration: 5/31/2023 Tenant: Landlord Responsibilities: Bio-Medical Applications of Ohio, Inc. d/b/a Fresenius Medical Care Roof & structure, parking lot, major repairs/replacement of HVAC PROPERTY DETAILS Year Built: 1998 Rentable Square Feet: Land Area: Ownership: Taxes: Insurance: Repairs & Maintenance: 6,700 SF 1.40 acres Fee simple Tenant pays Tenant pays Tenant pays 6

7 TENANT PROFILE Fresenius Medical Care North America is the premier health care company focused on delivering the highest quality care to people with renal and other chronic conditions. Worldwide, more than 2.5 million patients with this disease regularly undergo dialysis therapy, a vital blood cleansing procedure that substitutes the function of the kidney in the case of kidney failure. TENANT OVERVIEW Founded: 1912 Headquarters Bad Homburg, Germany Stock Ticker: NYSE: ADR Locations: 2,200+ Employees: 60,000 in US; 223,000 global Website: Through Fresenius s industry-leading network of more than 2,200 dialysis facilities, outpatient cardiac and vascular labs, and urgent care centers, as well as the country s largest practice of hospitalist and post-acute providers, Fresenius Medical Care provides coordinated health care services at pivotal care points for hundreds of thousands of chronically ill customers throughout the continent. As the world s only vertically integrated renal company, Fresenius also offers specialty pharmacy and laboratory services, as well as manufacturing and distributing the most comprehensive line of dialysis equipment, disposable products and renal pharmaceuticals. 7

8 VIEW WEST 8

9 LOCATION MAP CLEVELAND AKRON WOOSTER TOLEDO CLEVELAND AKRON COLUMBUS WOOSTER COLUMBUS DAYTON CINCINNATI FRESENIUS MEDICAL CARE 387 W. Milltown Rd, Wooster, OH 9

10 MARKET AERIAL 10

11 VIEW EAST 11

12 PLAT MAP 12

13 WAYNE COUNTY, OH LARGEST EMPLOYERS COMPANY # OF EMPLOYEES JM Smucker 1,800 LuK USA 1,600 College of Wooster 850 Wooster Community Hospital 800 Artiflex 750 Buehler s Fresh Foods 750 JLG 600 Wooster Brush 525 Gerber Poultry 500 Ohio State University

14 PROPERTY CONDITION SUMMARY Property Description: Address: Building SF: Fresenius Medical Care 387 W. Milltown Rd, Wooster, OH 6,700 SF Occupancy: 100% Tax Parcel: Year Built: 1998 Land Area: 1.40 acres Trade Area Statistics 1 MILE 3 MILE 5 MILE 2016 Population: 2,714 25,347 36, Households: 1,248 10,623 15, Avg. HH Income: $78,163 $65,921 $62, Median HH Income: $66,069 $49,810 $48, Total Businesses: 187 1,313 2, Total Employees: 2,583 17,713 26,945 Traffic Counts: Milltown Rd west of Burbank Rd = 3,609 cpd 14

15 DEMOGRAPHICS DESCRIPTION 1 MILE 3 MILE 5 MILE POPULATION HOUSEHOLDS RACE 2016 Estimated Population 2,714 25,347 36, Projected Population 2,770 25,737 37, Census Population 2,741 24,795 36, Census Population 2,307 23,393 35,003 Projected Annual Growth 2016 to % 0.3% 0.3% Historical Annual Growth 2000 to % 0.5% 0.3% 2016 Estimated Households 1,248 10,623 15, Projected Households 1,300 11,028 15, Census Households 1,225 10,184 14, Census Households 971 9,221 13,780 Projected Annual Growth 2016 to % 0.8% 0.7% Historical Annual Growth 2000 to % 1.0% 0.7% 2016 Est. White 94.0% 91.5% 92.1% 2016 Est. Black 1.6% 3.3% 3.1% 2016 Est. Asian or Pacific Islander 2.5% 2.2% 1.9% 2016 Est. American Indian or Alaska Native - 0.2% 0.2% 2016 Est. Other Races 1.8% 2.8% 2.7% INCOME BUSIN ESS 2016 Est. Average Household Income $78,163 $65,921 $62, Est. Median Household Income $66,069 $49,810 $48, Est. Per Capita Income $35,980 $28,038 $26, Est. Total Businesses 187 1,313 2, Est. Total Employees 2,583 17,713 26,945 15

16 OUR TEAM DANIEL H. KUKES PRINCIPAL Daniel Kukes is a Principal and Co-Founder of Landmark Investment Sales. Daniel specializes in the sale of retail shopping centers, medical office, and single tenant net lease investment properties across all property types. He currently represents some of the nation s largest institutional real estate funds, private equity group, and high net worth investors in acquiring and listing investment properties all over the country. Since 2010, Daniel has closed deals totaling over 5,000,000 SF valued at over $500,000,000. Daniel joined Landmark in 2009 as an Associate Broker. He began his real estate career at NAI Farbman where he focused on shopping center leasing and retail tenant representation. After five years at NAI Farbman, Daniel joined DAP Investments as a partner responsible for retail development, acquisitions and leasing. While there, he developed several single tenant and shopping center projects in Michigan and Illinois. Daniel is a graduate of Michigan State University with a Bachelor of Arts degree in Pre-Law & Society. dkukes@landmarkcres.com KEVIN J. BAKER PRINCIPAL Kevin Baker is a Principal and Co-Founder of Landmark Investment Sales. Kevin specializes in the sale of retail shopping centers and single tenant net lease investment properties across all property types. He currently represents some of the nation s largest institutional funds, private equity funds, and high net worth investors in listing investment properties all over the country. Since 2010, Kevin has closed deals totaling over 5,000,000 SF valued at over $500,000,000. Prior to 2010, Kevin worked extensively at Landmark as a broker specializing in tenant representation and landlord representation completing in excess of 100 lease & sale transactions. Kevin joined Landmark in 2005 as a Sales Associate. Prior to Landmark, Kevin attended Michigan State University and University of Michigan-Dearborn where he studied finance. Kevin began his real estate career in 2001 when he founded Baker Real Estate Holdings, specializing in acquisition and management of a student housing portfolio at Michigan State University. kbaker@landmarkcres.com SCOTT SONENBERG ASSOCIATE Scott Sonenberg is a graduate of Western Michigan University, with a Bachelor of Arts degree in Business Management. Scott spent the last two years working with A.F. Jonna Development where he gained valuable experience in shopping center leasing and site selection for numerous national, regional, and local retailers. His positive energy and keen eye for deals, combined with a flair for multi-tasking, has helped Scott complete a large volume of transactions on an annual basis. Now at Landmark, Scott will build on his early success as a sales associate working on shopping center leasing, retail tenant representation, and investment sales. ssonenberg@landmarkcres.com 16