HUDSON, NEW YORK CORNWALL, NEW YORK BURIEN, WASHINGTON COLUMBIA MEDICAL OFFICE BUILDING Hudson, New York CORNWALL MEDICAL OFFICE BUILDING Cornwall, New York HIGHLINE MEDICAL PAVILION Burien, Washington Strategic Healthcare Real Estate
Holliday Fenoglio Fowler, L.P. ( HFF ) has been retained by Landmark Healthcare Properties Fund (referred to as Landmark or Owner ) in the disposition of a portfolio of three medical office buildings (individually the Property and collectively the Properties or Portfolio ) that is comprised of approximately 143,267 square feet and located in Hudson and Cornwall, New York and Burien (Seattle), Washington. The Properties are approximately 97% leased in the aggregate, and all are strategically located on campus. The Properties are anchored by the affiliated hospitals (the Hospital or Hospitals ) in addition to affiliated physicians that offer a full range of medical services. In addition, the Hospitals or their affiliates currently lease approximately 61% of the Portfolio. All of the Properties are owned subject to existing ground or air space leases. LANDMARK SUMMARY Building Location Number of Floors Rentable Square Feet Year Built % Leased Remaining Lease Term Columbia Medical Office Building Hudson, New York 3 65,965 2006 100% 9.1 Years Cornwall Medical Office Building Cornwall, New York 2 41,744 2006 % 4.9 Years Highline Medical Pavilion Burien, Washington 2 35,558 2005 100% 1.9 Years Total Portfolio 143,267 97% 6.1 Years CORNWALL MEDICAL OFFICE BUILDING COLUMBIA MEDICAL OFFICE BUILDING HIGHLINE MEDICAL PAVILION 2
5 LANDMARK Portfolio Highlights Highlights of the investment opportunity include: Superior On-Campus Locations. All three of the Properties are located on campus where the existing tenant base is primarily the Hospital and affiliated physicians. Two of the Properties (Cornwall and Columbia) are the only medical office buildings on their respective campuses and have virtually no competition, resulting in reduced lease rollover exposure and capital investment required for tenant improvements. Strong Hospital Sponsorship. The Portfolio offers an investor the opportunity to acquire properties affiliated with strong hospitals within their respective markets. All of the Hospitals are the dominant healthcare providers in their respective service areas. In total, the Hospitals lease approximately 62% of the Portfolio, creating a reliable source of future cash flow. Stable Tenancy. The average remaining lease term for current tenants is 6 years. As a result of the large amount of capital required for a hospital operation or a physician practice to relocate, the on-campus/hospital affiliated medical office sector is characterized by a relatively high tenant renewal rate and a relatively small amount of tenant improvement dollars. Washington Highline Medical Pavilion Olympia 405 Bellevue Spokane Seattle 5 Tacoma 82 5 New York 87 81 Buffalo 86 86 3 86 88 81 Columbia Medical Office Building Albany Cornwall Medical Office Building 87 84 New York 3
A brief overview of the Portfolio includes: LANDMARK OVERVIEW Property On Campus Hospital Affiliated Square Feet % Leased % Hospital Remaining Hospital Lease Term Affiliated Hospital Affiliated Health System Credit Rating Columbia Medical Office Building Yes Yes 65,965 100% 100% 9.1 Years Columbia Memorial Hospital Not Rated Cornwall Medical Office Building Yes Yes 41,744 % 22% 5.4 Years St. Luke s Cornwall Hospital Not Rated Highline Medical Pavilion Yes Yes 35,558 100% 41% 1.1 Years Highline Medical Center A+ (S&P) Total/Average 143,267 97% 62% 7.1 Years COLUMBIA HIGHLINE 4
Strong Stable Tenancy The Portfolio is marked by a strong roster of tenants, which includes the Hospitals as the major tenant. The Hospitals lease approximately 62% of the Portfolio. Other tenants include affiliated physicians or physicians in private practice. Superior on-campus convenience, the quality of the buildings and in many cases the absence of any direct competition provides opportunity for future revenue growth and improved occupancies. The average remaining lease term for current tenants is approximately 6 years. The on-campus locations, large hospital presence and long-term lease commitments to the Properties increase the Portfolio s on-going cash flow stability. LEASE EXPIRATION SCHEDULE Rentable Square Feet 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Annual Lease Expirations Cumulative Expirations 100% % 80% 70% 60% 50% 40% 30% 20% 10% 0% % of Property Debt Summary Property Loan Balance Debt Service Term of Loan Lender Interest Rate Type Interest Rate Amortization Maturity Date Highline Medical Pavilion $9,500,000 $582,537 5 Years GE Capital Fixed 5.7515% 30-year 3/3/2019 Columbia Medical Office Building $12,500,000 $741,406 5 Years GE Capital Fixed 5.85% 30-year 12/31/2018 Cornwall Medical Office Building $11,500,000 $682,094 5 Years GE Capital Fixed 5.85% 30-year 12/31/2018 5
Contact Information HFF Chicago 181 West Madison Suite 30 Chicago, IL 60602 Telephone: 312.528.3650 Fax: 312.528.3651 Investment Contacts Phil Mahler Managing Director pmahler@hfflp.com 312.300.7319 Michael Bennett Managing Director mbennett@hfflp.com 312.528.3694 Evan Kovac Managing Director ekovac@hfflp.com 858.812.2356 Jack Dudick Director jdudick@hfflp.com 312.980.3618 Andrew Scandalios Senior Managing Director ascandalios@hfflp.com 212.632.1821 Nicholas Kucha Director nkucha@hfflp.com 503.417.5585 Mike Janus Analyst mjanus@hfflp.com 312.528.3677 Atlanta Austin Boston Charlotte Chicago Denver Dallas Florham Park (NJ) Hartford Houston Indianapolis Los Angeles Miami New York Orange County (CA) Orlando Philadelphia Pittsburgh Portland (OR) San Diego San Francisco Tampa Washington, DC 2014 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references 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 buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.