Fresenius Medical Care 608 N BEDELL AVE DEL RIO, TX OFFERING MEMORANDUM

Fresenius Medical Care 608 N BEDELL AVE DEL RIO, TX OFFERING MEMORANDUM

C O N T E N T S 4 EXECUTIVE SUMMARY 5 FINANCIAL OVERVIEW 6 TENANT OVERVIEW 8 PROPERTY OVERVIEW 12 AREA OVERVIEW exclusively listed by kyle matthews BROKER OF RECORD LIC # 9005919 Michael Moreno Senior Associate michael.moreno@matthews.com DIR (949) 432-4511 MOB (818) 522-4497 LIC # 01982943 (CA) rahul chhajed Single Tenant Net Lease rahul.chhajed@matthews.com DIR (949) 432-4513 MOB (818) 434-1106 LIC # 01986299 (CA) Fresenius Medical Care, Del Rio, TX 3

E X E C U T I V E S U M M A R Y investment Highlights property details Fresenius recently extended their lease out early for an additional 5 years, showing their commitment to the location Fresenius is currently paying rent to landlord for the actual facility as well as additional storage unit Extremely Passive NN lease structure - maintenance costs are reimbursed to landlord Brand new HVAC units are currently being installed on the property location details Clinic is strategically located across the street from Val Verde Regional Medical Center, the largest medical facility within Del Rio, TX Clinic is located within walking distance to Val Verde Nursing & Rehabilitation Center and Country Place Living, which houses Fresenius ideal clientele This is a very active facility that operates 3 shifts Monday, Wednesday, and Friday Located directly on Bedell Ave, one of the main thoroughfares through the city, which features 18,000 vehicles per day tenant details Fresenius Medical Care (NYSE: FMS) is the world s largest dialysis provider and a fortune 500 company with a $26 Billion market cap The company currently holds an S&P credit rating of BBB- (Investment Grade Credit) Fresenius operates over 2,200 dialysis facilities in North America alone, with the company continuing its expansion domestically and overseas 4 Offering Memorandum

F I N A N C I A L O V E R V I E W property name Fresenius Medical Care List Price $1,203,348 LEase type NN year built 1996 address 608 N Bedell Ave Del Rio, TX 78840 Cap Rate 6.90% term remaining ± 5.50 Years Square Footage ± 7,356 Annualized Operating Data Monthly Rent Annual Rent Increases Cap Rate Current $6,919.25 $83,031 $11.29 6.90% Option 1 FMV FMV FMV FMV Option 2 FMV FMV FMV FMV *Fresenius is currently paying $70,956 in building rent & $12,075 in rent for an additional storage unit **Rent in options is equated based on Fair Market Value - First Option has already been exercised at an increased rental amount Fresenius Medical Care Summary Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Fresenius Medical Care Fee Simple Corporate NN Landlord Responsible 5 Years Lease Commencement 8/24/2017 Rent Commencemnt 5/1/2018 Lease Expiration Date 4/30/2023 Term Remaining ± 5.50 Years Increases Options Rent in Options Based on FMV Two, 5-Year Options Fresenius Medical Care, Del Rio, TX 5

T E N A N T O V E R V I E W 6 Offering Memorandum

Property Name Parent Company Trade Name Ownership Revenue Net Income Fresenius Medical Care Fresenius Medical Care Holdings, Inc. Subsidiary $10.37B $787.64M No. of Locations ± 3,573 No. of Employees ± 108,851 Headquartered Waltham, MA Website www.fmc-ag.com Year Founded 1988 TENANT OVERVIEW Fresenius Medical Care Holdings, operating as Fresenius Medical Care North America or FMCNA, operates a network of some 2,100 dialysis clinics located throughout the continent. One of the largest providers of kidney dialysis services, FMCNA offers outpatient and in-home hemodialysis treatments for chronic kidney disease. The company s operating units also market and sell dialysis machines and related equipment and provide renal research, laboratory, and patient support services. FMCNA oversees the North American operations of dialysis giant Fresenius Medical Care AG & Co. Fresenius Medical Care is the world s leading provider of products and services for people with chronic kidney failure. Around 2.8 M patients with this disease worldwide regularly undergo dialysis treatment. Dialysis is a vital blood cleansing procedure that substitutes the function of the kidney in case of kidney failure. The company s strategy is geared toward sustainable growth and aim to continuously improve the quality of life of patients with kidney disease by offering innovative products and treatment concepts of the highest quality. Fresenius Medical Care, Del Rio, TX 7

P R O P E R T Y O V E R V I E W 8 Offering Memorandum

the offering Property Name Property Address Assessor s Parcel Number Site Description Number of Stories Fresenius Medical Care 608 N Bedell Ave Del Rio, TX 78840 C565-00-000-00A-0-000-00 One Year Built 1996 Gross Leasable Area (GLA) Lot Size Type of Ownership Parking Parking Ratio Landscaping Topography Construction Foundation Framing Exterior Parking Surface Roof ± 7,356 SF ± 2.24 Acres (97,574 SF) Fee Simple ± 20 Surface Spaces 2.72 : 1,000 SF Professional Generally Level Concrete Slab Steel Brick Asphalt Flat Parcel MAp College Blvd ± 40,116 Nederland Ave ± 15,000 ADT N Bedell ave ± 18,000 VPD Fresenius Medical Care, Del Rio, TX 9

surrounding tenants 10 Offering Memorandum

regional map SUBJECT PROPERTY SUBJECT PROPERTY Fresenius Medical Care, Del Rio, TX 11

A R E A O V E R V I E W 12 Offering Memorandum

Del Rio, TX Del Rio is a city in and the county seat of Val Verde County, Texas. It is 152 miles west of San Antonio. As of 2016, the city had a population of 25,998. Del Rio is connected with Ciudad Acuña via the Lake Amistad Dam International Crossing and Del Río Ciudad Acuña International Bridge. Del Rio is also home to Laughlin Air Force Base, the busiest United States Air Force pilot training complex in the world. transportation U.S. Route 90 Connects with Alpine, Marfa, and El Paso to the west. Connects with San Antonio to the east. U.S. Route 277 Connects with San Angelo to the north. Connects with Carrizo Springs and Laredo (by U.S. Route 83) to the southeast. U.S. Route 377 Crosses sparsely populated west Texas through several small towns before eventually reaching Fort Worth. property demographics POPULATION 3 Mile 5 Mile 7 Mile 2022 Projection 35,610 44,562 46,991 2017 Estimate 35,202 43,607 46,013 2010 Census 36,005 43,723 46,177 2000 Census 34,843 39,606 42,476 Percent Change: 2017 to 2022 1.16% 2.19% 2.13% HOUSEHOLDS 3 Mile 5 Mile 7 Mile 2022 Projection 11,819 14,669 15,393 2017 Estimate 11,580 14,234 14,943 2010 Census 11,618 14,019 14,730 2000 Census 10,816 12,447 13,313 Percent Change: 2017 to 2022 2.06% 3.06% 3.01% INCOME 3 Mile 5 Mile 7 Mile 2017 Est. Average Household Income $59,777 $61,395 $61,609 Texas State Highway Loop 79 in Val Verde County and Del Rio: This four-lane road, known as a Super Two, Loop opened for traffic in mid-may 2012. It connects with U.S. Route 90, U.S. Route 277, and U.S. Route 377; Loop 79 is part of the Ports to Plain Corridor Infrastructure and the future Interstate 27 that extends from Laredo, Texas, to Denver, Colorado. It is expected to create an economic boom that will bring in national-brand hotel, retail, and restaurant outlets. Fresenius Medical Care, Del Rio, TX 13

laughlin air force base Laughlin plays a large part in the Del Rio community as the area s largest employer. The United States Border Patrol is the city s second-largest employer (with two large stations along with the sector headquarters). Since the base has unused land, the Air Force has the ability to lease it to other federal law enforcement agencies for projects. This benefits Laughlin AFB and the city of Del Rio both financially and economically. For example, Del Rio was one of five cities in the United States selected for an FBI regional headquarters office, and that building is adjacent to the six-story Roswell Hotel in downtown Del Rio. lake amistad Lake Amistad provides year-round, water-based recreation opportunities, including boating, fishing, swimming, scuba diving and water-skiing, as well as other recreational opportunities for picnicking, camping, and hunting. The area is rich in archeology and rock art, and contains a wide variety of plant and animal life. 14 Offering Memorandum

CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Fresenius Medical Care located at 608 N Bedell Ave, Del Rio, TX 78840 ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. 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. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. 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. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. 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 Matthews Real Estate Investment Services 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. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Fresenius Medical Care 608 N BEDELL AVE DEL RIO, TX OFFERING MEMORANDUM exclusively listed by Michael Moreno Senior Associate michael.moreno@matthews.com DIR (949) 432-4511 MOB (818) 522-4497 LIC # 01982943 (CA) rahul chhajed Single Tenant Net Lease rahul.chhajed@matthews.com DIR (949) 432-4513 MOB (818) 434-1106 LIC # 01986299 (CA) kyle matthews BROKER OF RECORD LIC # 9005919 16 Offering Memorandum

Information About Brokerage Services Texas law requires all real estate license holders to give the following informaɵon about brokerage services to prospecɵve buyers, tenants, sellers and landlords. 11-2-2015 TYPES OF REAL ESTATE LICENSE HOLDERS:. A BROKER is responsible for all brokerage acɵviɵes, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material informaɵon about the property or transacɵon received by the broker; Answer the client s quesɵons and present any offer to or counter-offer from the client; and Treat all parɵes to a real estate transacɵon honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriʃen lisɵng to sell or property management agreement. An owner's agent must perform the broker s minimum duɵes above and must inform the owner of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriʃen representaɵon agreement. A buyer's agent must perform the broker s minimum duɵes above and must inform the buyer of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parɵes the broker must first obtain the wriʃen agreement of each party to the transacɵon. The wriʃen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaɵons as an intermediary. A broker who acts as an intermediary: Must treat all parɵes to the transacɵon imparɵally and fairly; May, with the parɵes' wriʃen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucɵons of each party to the transacɵon. Must not, unless specifically authorized in wriɵng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriʃen asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and any confidenɵal informaɵon or any other informaɵon that a party specifically instructs the broker in wriɵng not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacɵon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duɵes and responsibiliɵes to you, and your obligaɵons under the representaɵon agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This noɵce is being provided for informaɵon purposes. It does not create an obligaɵon for you to use the broker s services. Please acknowledge receipt of this noɵce below and retain a copy for your records. Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757 Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757 Designated Broker of Firm License No. Email Phone Licensed Supervisor of Sales Agent/ Associate License No. Email Phone Sales Agent/Associate s Name License No. Email Phone Regulated by the Texas Real Estate Commission Buyer/Tenant/Seller/Landlord Initials Date InformaƟon available at www.trec.texas.gov IABS 1-0