Clifton Springs Medical Office Park

Clifton Springs Medical Office Park CLIFTON SPRINGS, NY MARKET POSITIONING & PRICING ANALYSIS Photographs to be updated prior to marketing. Prepared For: Steven D. Lasser, MD Principal WOSCO, LLC Friday, June 16, 2017

CLIFTON SPRINGS, NY NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

TABLE OF CONTENTS Section 1 PROPERTY DESCRIPTION Section 2 PRICING AND FINANCIAL ANALYSIS Section 3 RECENT SALES Section 4 DEMOGRAPHIC ANALYSIS

PROPERTY DESCRIPTION CLIFTON SPRINGS, NY

PROPERTY DESCRIPTION INVESTMENT OVERVIEW Marcus & Millichap is pleased to present the threebuilding portfolio located 30 miles southeast of Rochester in Clifton Springs, New York. The portfolio consists of 18,144 rentable square feet and seven tenants. The facilities are anchored by Finger Lakes Health which occupies 44% of the assets. Finger Lakes is utilizing the space for internal medicine and orthopaedics. Additional tenancy includes University of Rochester, a dental practice, physical therapy and occupational therapy. Investment Highlights 18,144 Square Foot, 3-Building, Medical Office Portfolio Anchored by Finger Lakes Health, a Community Owned, Not-For-Profit Health System Finger Lakes Health - 650 Bed System with Two Hospitals Facility In-Line with Trending Healthcare "Hub and Spoke" Model Subject Property Provides Easier Accesss to Care for Community of Clifton Springs Finger Lakes Orthopaedics Willing to Sign 7 Year Lease at Close of Escrow Strong Synergies Exist Between Tenants 30 Miles from Rochester, NY Finger Lakes Health is an independent, communityowned, not-for-profit health system. They are a multi-institutional health system that provides a full range of acute and long term care health services to residents of the Finger Lakes region in Upstate New York. Acute and long term care services are provided on three campuses located in Ontario, Seneca and Yates Counties. Primary care services are provided in Seneca, Wayne and Yates Counties. The 650-bed system consists of the Geneva General Hospital in Geneva, NY and Soldiers & Sailors Memorial Hospital in Penn Yan, NY. is located in the heart of the Finger Lakes region of Upstate New York. The population surrounding the location is 1,771,278 residents (an increase of 3.4% since 2010). Average household income for the region is $62,062, and an average household net worth of $392,892. Clifton Springs is located immediately south of both New York State Thruway (I90) and New York State Route 96, allowing easy access to/from nearby Rochester. This healthcare facility also enjoys the close proximity to the Fingers Lakes Health and Rochester Regional Health Systems. This facility is directly in line with the hub and spoke model recently taken on by health systems. In an effort to increase patient volume, healthcare providers are expanding their reach into secondary and tertiary markets to provide easier access to care. 1

PROPERTY DESCRIPTION PROPERTY PHOTOS Updated photographs to be taken prior to marketing. 2

PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 3

PROPERTY DESCRIPTION AERIAL PHOTO 4

PRICING AND FINANCIAL ANALYSIS CLIFTON SPRINGS, NY

PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 110 Clifton Springs Professional Clifton Springs, NY 14432 Price $1,716,000 Down Payment 100% / $1,716,000 Rentable Square Feet 18,144 Price/Rentable SF $94.58 CAP Rate - Current 8.65% Parcel Size 4.20 Acres Year Built 2012 Type of Ownership Fee Simple Annualized Operating Data Income Current Base Rent Occupied Space $359,072 Gross Potential Rent $359,072 Gross Potential Income $359,072 Vacancy/Collection Allowance 5% / $17,954 Effective Gross Income $341,118 Total Expenses $192,645 Net Operating Income $148,474 Reserves $2,722 Total Return 8.49% / $145,752 Expenses Real Estate Taxes $92,000 Insurance $8,500 Utilities $20,000 Repairs & Maintenance $35,000 Management Fee (% of EGI) $13,645 Lawn/Snow/Landscape $20,000 Trash Removal $3,500 TOTAL EXPENSES $192,645 EXPENSES/SF $10.62 Pricing assumes Finger Lakes Orthopaedics will sign a new 7 year lease at close of escrow. Lease to include 2.00% annual rent escalations. 6

PRICING AND FINANCIAL ANALYSIS RENT ROLL Tenant SF % of Total SF Lease Commence Lease Expire Annual Rent Rent/ SF Lease Type Options/ Terms Anderson Vanhorn Insurance Agency 1,556 8.58% 9/1/2016 8/30/2018 $26,452 $17.00 Gross None Grape Lakes Dental 2,860 15.76% 8/1/2015 9/30/2020 $50,400 $17.62 Gross Korpiel Physical Therapy 2,000 11.02% 7/1/2012 6/30/2017 $35,000 $17.50 Gross University of Rochester 2,500 13.78% 9/15/2016 9/14/2019 $48,960 $19.58 Gross 2, 1 Year Egidi Occupational Therapy 1,262 6.96% 9/1/2014 8/30/2017 $27,764 $22.00 Gross Finger Lakes Health Internal Med. 1,189 6.55% 1/1/2012 12/31/2019 $21,402 $18.00 Gross 3, 4 Year Finger Lakes Health Orthopaedics 6,777 37.35% COE 7 Years $149,094 $22.00 Gross TBD TOTAL AVAILABLE TOTAL OCCUPIED 18,144 100% $359,072 TOTAL 18,144 100% $359,072 Comments - University of Rochester rent escalates to $49,939 on 9/15/2018. - Finger Lakes Health Internal Medicine is currently in their first of four, four-year renewal options. - Pricing assumes Finger Lakes Orthopaedics signs seven year lease at close of escrow. Lease to include annual 2.00% rent escalations. 7

PRICING AND FINANCIAL ANALYSIS LEASE EXPIRATION SUMMARY For The Year Beginning Year 1 Jan 2017 Year 2 Jan 2018 Year 3 Jan 2019 Year 4 Jan 2020 Year 5 Jan 2021 Year 6 Jan 2022 Year 7 Jan 2023 Year 8 Jan 2024 Year 9 Jan 2025 Year 10 Jan 2026 Tenant(s) Name Korpiel Physical Therapy Egidi Occupational Therapy Anderson Vanhorn Insurance Agency University of Rochester Finger Lakes Health Internal Med. Grape Lakes Dental Total Number of Tenants 2 1 2 1 Total Square Feet 3,262 1,556 3,689 2,860 Total Percentage 18.0% 8.6% 20.3% 15.8% Cumulative Percentage 18.0% 26.6% 46.9% 62.7% 60% 2 Total Project Square Footage 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 1 Number of Tenants 0% Jan 2017 18% Jan 2018 9% Jan 2019 20% Jan 2020 16% Jan 2021 0% Jan 2022 0% Jan 2023 0% Jan 2024 0% Jan 2025 0% Jan 2026 0% 0 Percentage of SF Expiring Number of Tenants Expiring Cumulative % of SF Expiring Any projections, opinions, assumptions or estimates used here within are for example purposes only and do not represent the current or future performance of the property. 8

PRICING AND FINANCIAL ANALYSIS EXPENSES Current Per SF Real Estate Taxes $92,000 $5.07 Insurance $8,500 $0.47 Utilities $20,000 $1.10 Repairs & Maintenance $35,000 $1.93 Management Fee (% of EGI) $13,645 $0.75 Lawn/Snow/Landscape $20,000 $1.10 Trash Removal $3,500 $0.19 TOTAL EXPENSES $192,645 $10.62 9

PRICING AND FINANCIAL ANALYSIS INCOME & EXPENSES Rentable Square Feet 18,144 Current Per SF BASE RENT Occupied Space $359,072 $19.79 GROSS POTENTIAL RENT $359,072 $19.79 GROSS POTENTIAL INCOME $359,072 $19.79 Vacancy/Collection Allowance (% of GPI) 5% / $17,954 $0.99 EFFECTIVE GROSS INCOME $341,118 $18.80 Total Expenses $192,645 $10.62 NET OPERATING INCOME $148,474 $8.18 Reserves $2,722 $0.15 10

PRICING AND FINANCIAL ANALYSIS PRICING (A) - CURRENT List Price Sales Range Price $1,716,000 $1,706,000 $1,563,000 Down Payment 100% / $1,716,000 100% / $1,706,000 100% / $1,563,000 NET OPERATING INCOME $148,474 $148,474 $148,474 Cash Flow Analysis Reserves ($2,722) ($2,722) ($2,722) Net Cash Flow Before Debt Service $145,752 $145,752 $145,752 Net Cash Flow After Debt Service $145,752 $145,752 $145,752 Return % 8.49% 8.54% 9.33% Total Return $145,752 $145,752 $145,752 Total Return % 8.49% 8.54% 9.33% Value Indicators CAP Rate 8.65% 8.70% 9.50% Price/Rentable SF $94.58 $94.03 $86.14 11

PRICING AND FINANCIAL ANALYSIS NET PROCEEDS (A) - CURRENT List Price Sales Range Price Range $1,716,000 $1,706,000 $1,563,000 Equalization Form $250 $250 $250 Absrtract of Title $500 $500 $500 Deed Fees $250 $250 $250 Revenue Stamps 0.40% / $6,864 0.40% / $6,824 0.40% / $6,252 Commission 5.00% / $85,800 5.00% / $85,300 5.00% / $78,150 TOTAL COSTS $93,664 $93,124 $85,402 TOTAL NET PROCEEDS (1) $1,622,336 $1,612,876 $1,477,598 Comments (1) Does not include retirement of existing debt, pro rating of rents, taxes, impounds or security deposits. 12

RECENT SALES CLIFTON SPRINGS, NY

RECENT SALES CAP RATE AND PRICE PER RENTABLE SF Average Cap Rate 11.00 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Subject Emerson Medical Center Haddon Hill Medical Center Centerview Medical Office Woodside Medical Building Gaston Medical Park Nicolet Woods Medical Office Building Eastgate Medical Center Average Price Per Rentable SF 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 0.00 Subject Emerson Medical Center Haddon Hill Medical Center Centerview Medical Office Woodside Medical Building Gaston Medical Park Nicolet Woods Medical Office Building Eastgate Medical Center 14

RECENT SALES RECENT SALES 110 Clifton Springs Professional Park Clifton Springs, NY 14432 Offering Price: $1,716,000 Rentable SF: 18,144 Percent Down: 100% Year Built: 2012 CAP Rate: 8.65% Subject Property Occupancy: 100% Price/Rentable SF: $94.58 1 Emerson Medical Center 8360 South Emerson Avenue Indianapolis, IN 46237 Comments Close of Escrow: 4/19/2017 Sales Price: $2,460,000 Rentable SF: 15,029 Percent Down: 20% Year Built: 2007 CAP Rate: 8.27% Occupancy: 100% Price/Rentable SF: $164.00 Emerson Medical Center is a 15,203-square foot multi-tenant, medical office based property located on the south side of Indianapolis. The property, which was built in 2007 sits on Emerson Avenue, just across the street from the Franciscan Alliance's Saint Francis Hospital. The subject property is currently 100% percent occupied and is the home to two longterm medical tenants which include a local OB/GYN and Endodontics practice. In addition to the two medical users, the property also houses a CPA that just signed a brand new five-year lease. 2 Haddon Hill Medical Center 63 Kresson Road Cherry Hill, NJ 08034 Comments Close of Escrow: 2/2/2017 Sales Price: $3,900,000 Rentable SF: 24,638 Percent Down: 100% Year Built: 1950 CAP Rate: 9.05% Occupancy: 100% Price/Rentable SF: $158.00 Property is home to four unique Our Lady of Lourdes Medical Center practices and as well Atlas Dental Specialty Associates (formerly, Haddonfield Dental). Prior to being bought by Lourdes, the former medical practice expanded its footprint at the Property multiple times as a result of the Property s location, proximity to the local patient base, ease of access, and parking availability. 15

RECENT SALES RECENT SALES 3 Centerview Medical Office 1141 Keller Parkway Keller, TX 76248 Comments Close of Escrow: 11/18/2016 Sales Price: $2,400,000 Rentable SF: 14,231 Percent Down: 100% Year Built: 2003 CAP Rate: 8.39% Occupancy: 100% Price/Rentable SF: $169.00 Built in 2003, the property is constructed of brick veneer and stone providing attractive, upscale curb appeal. The five building complex is located off Keller Parkway (FM 1709) which is a major east/west artery with traffic counts of approximately 42,000 vehicles per day. The area's expected population growth exceeds 18 percent over the next five years. 4 Woodside Medical Building 1551 Sturdy Rd Valparaiso, IN 46383 Comments Close of Escrow: 11/4/2016 Sales Price: $850,000 Rentable SF: 8,531 Percent Down: 100% Year Built: 1981 CAP Rate: 10.19% Occupancy: 100% Price/Rentable SF: $100.00 The subject property has enjoyed many long-term tenants with four to five years remaining on their leases and one part time tenant on a month to month lease-that could provide upside if converted to a full lease. The average household income in the subject property area is $80,000. Well above the United Sates average. Tenancy includes five physician groups from multiple disciplines. 5 Gaston Medical Park 1032 X-Ray Drive Gastonia, NC 28054 Close of Escrow: 10/26/2016 Sales Price: $2,215,000 Rentable SF: 15,920 Percent Down: 40% Year Built: 1983 CAP Rate: 8.27% Occupancy: 100% Price/Rentable SF: $139.00 Comments Fully occupied medical office property located in Gastonia, North Carolina (Charlotte MSA). Gastonia is 23 miles from Uptown Charlotte and 16 miles from the Charlotte Douglas International Airport. Gaston Medical Park, consists of three buildings with thirteen spaces of approximately 1,327 square feet each. One tenant, Amedisys, occupies the largest building of 6,514 square feet. Other tenants include Coastal Southeastern United Care, Center for Emotional Health, Solstas (Quest) Lab Partners, Carolina Breast & General Surgery Center, and Kinetic Meridian. 16

RECENT SALES RECENT SALES 6 Nicolet Woods Medical Office Building 6373 North Jean Nicolet Road Glendale, WI 53217 Close of Escrow: 6/17/2016 Sales Price: $2,712,000 Rentable SF: 15,624 Percent Down: 25% Year Built: 2004 CAP Rate: 8.55% Occupancy: 100% Price/Rentable SF: $174.00 Comments Nicolet Woods Medical Office Building is located in Glendale, WI, a first ring suburb of Milwaukee. The property is visible and accessible from Interstate 43, near the very popular Bayshore Town Center. It is anchored by Children's Medical Group Inc., a subsidiary of Children's Hospital of Wisconsin. All four of the tenants have occupied the building since it opened in 2005. The property is beautifully landscaped and meticulously maintained. 7 Eastgate Medical Center 796 Cincinnati-Batavia Pike Cincinnati, OH 45245 Close of Escrow: 4/21/2016 Sales Price: $2,660,000 Rentable SF: 21,553 Percent Down: 100% Year Built: 1995 CAP Rate: 8.63% Occupancy: 82% Price/Rentable SF: $123.00 Comments Eastgate Medical Center is a two-story 21,553-square foot, 82 percent occupied, multi-tenant, medical office property in Cincinnati, Ohio. Anchored by The Christ Hospital and Cincinnati Children's Hospital. 17

DEMOGRAPHIC ANALYSIS CLIFTON SPRINGS, NY

DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 2,563 5,047 15,856 2010 Population 2,542 4,968 15,985 2014 Population 2,517 4,939 15,913 2019 Population 2,528 4,928 16,016 2000 Households 1,000 1,910 6,204 2010 Households 1,028 1,936 6,494 2014 Households 1,015 1,923 6,466 2019 Households 1,027 1,932 6,556 2014 Average Household Size 2.33 2.44 2.43 2014 Daytime Population 1,578 2,261 4,222 2000 Owner Occupied Housing Units 57.47% 68.29% 73.01% 2000 Renter Occupied Housing Units 36.59% 25.88% 21.42% 2000 Vacant 5.94% 5.83% 5.57% 2014 Owner Occupied Housing Units 60.95% 72.33% 73.89% 2014 Renter Occupied Housing Units 39.05% 27.67% 26.11% 2014 Vacant 7.84% 7.02% 5.74% 2019 Owner Occupied Housing Units 61.15% 72.35% 73.72% 2019 Renter Occupied Housing Units 38.85% 27.65% 26.28% 2019 Vacant 8.16% 7.23% 5.79% $ 0 - $14,999 13.6% 10.0% 9.6% $ 15,000 - $24,999 16.8% 14.8% 13.6% $ 25,000 - $34,999 8.4% 11.0% 12.1% $ 35,000 - $49,999 15.1% 16.4% 14.9% $ 50,000 - $74,999 18.8% 18.7% 21.9% $ 75,000 - $99,999 16.0% 15.0% 14.0% $100,000 - $124,999 6.6% 7.3% 7.7% $125,000 - $149,999 3.0% 3.2% 2.6% $150,000 - $199,999 1.2% 2.7% 2.5% $200,000 - $249,999 0.3% 0.5% 0.5% $250,000 + 0.3% 0.5% 0.6% 2014 Median Household Income $44,326 $47,206 $49,689 2014 Per Capita Income $23,190 $23,708 $24,734 2014 Average Household Income $55,197 $59,601 $60,362 Demographic data 2012 by Experian. 19

DEMOGRAPHIC ANALYSIS SUMMARY REPORT Geography: 5 miles Population In 2014, the population in your selected geography is 15,913. The population has changed by 0.36% since 2000. It is estimated that the population in your area will be 16,016 five years from now, which represents a change of 0.64% from the current year. The current population is 48.59% male and 51.40% female. The median age of the population in your area is 43.2, compare this to the Entire US average which is 37.3. The population density in your area is 202.17 people per square mile. Households There are currently 6,466 households in your selected geography. The number of households has changed by 4.23% since 2000. It is estimated that the number of households in your area will be 6,555 five years from now, which represents a change of 1.38% from the current year. The average household size in your area is 2.43 persons. Income In 2014, the median household income for your selected geography is $49,688, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 18.48% since 2000. It is estimated that the median household income in your area will be $58,239 five years from now, which represents a change of 17.20% from the current year. The current year per capita income in your area is $24,733, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $60,362, compare this to the Entire US average which is $74,533. Race & Ethnicity The current year racial makeup of your selected area is as follows: 95.73% White, 1.23% Black, 0.02% Native American and 0.55% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 3.13% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 4,796 owner occupied housing units in your area and there were 1,407 renter occupied housing units in your area. The median rent at the time was $446. Employment In 2014, there are 4,222 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 53.10% of employees are employed in white-collar occupations in this geography, and 47.17% are employed in blue-collar occupations. In 2014, unemployment in this area is 8.45%. In 2000, the average time traveled to work was 23.6 minutes. Demographic data 2012 by Experian. 20

DEMOGRAPHIC ANALYSIS POPULATION DENSITY Demographic data 2012 by Experian. Number of people living in a given area per square mile. 21

DEMOGRAPHIC ANALYSIS EMPLOYMENT DENSITY Demographic data 2012 by Experian. The number of people employed in a given area per square mile. 22

DEMOGRAPHIC ANALYSIS AVERAGE HOUSEHOLD INCOME Demographic data 2012 by Experian. Average income of all the people 15 years and older occupying a single housing unit. 23

DEMOGRAPHIC ANALYSIS TOTAL CRIME RISK Crime data 2012 by Applied Geographic Solutions. Index of the relative risk of crime in a given area. 24

Clifton Springs Medical Office Park CLIFTON SPRINGS, NY MARKET POSITIONING AND PRICING ANALYSIS Presented By: Scott Niedergang Licensed Real Estate Broker Chicago Downtown Office Office: (312) 327-5438 License: IL: 475.145986 sniedergang@ipausa.com www.marcusmillichap.com/scottniedergang Gino Lollio Licensed Real Estate Broker Chicago Downtown Office Office: (312) 327-5480 Cell: (239) 810-4714 License: IL: 475.145430 glollio@ipausa.com www.marcusmillichap.com/ginolollio Brian McCoy Licensed Real Estate Broker Chicago Downtown Office Office: (312) 327-5456 License: IL: 475.175380 bmccoy@ipausa.com www.marcusmillichap.com/brianmccoy Offices Throughout the U.S. and Canada www.marcusmillichap.com