OFFERING MEMORANDUM DAVITA DIALYSIS INVESTMENT

s OFFERING MEMORANDUM DAVITA DIALYSIS INVESTMENT 33487 Yucaipa Boulevard, Yucaipa, California 92399

33487 Yucaipa Boulevard, Yucaipa, CA 92399 Exclusively Presented By DARVISHIAN INVESTMENT GROUP CA BRE Broker #01915377 www.darvishiangroup.com Orange County Office 600 Anton Boulevard, 11th Floor Costa Mesa, CA 92626 Pasha Darvishian Managing Partner CalBRE #01397162 Pasha@darvishiangroup.com 949.396.1075 Jon Hauso Vice President Investments Jon@darvishiangroup.com CalBRE # 02003482 949.396.1028 CONFIDENTIALITY AGREEMENT The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Shaw Equity Inc. and Darvishian Investment Group and should not be made available to any other person or entity without the written consent of Darvishian Investment Group. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Shaw Equity Inc. and Darvishian Investment Group has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Shaw Equity Inc. and Darvishian Investment Group 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 Darvishian Investment Group, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Darvishian Investment Group, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. NET-LEASED DISCLAIMER Shaw Equity Inc. and Darvishian Investment Group hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Shaw Equity Inc. and Darvishian Investment Group has not and will not verify any of this information, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters. Shaw Equity Inc. and Darvishian Investment Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Shaw Equity Inc. and Darvishian Investment Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Shaw Equity Inc. and Darvishian Investment Group Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property. 2 3

INVESTMENT HIGHLIGHTS DaVita Healthcare Partners, Inc. (NYSE: DVA) Publicly Traded Company with 2,445 National Locations Newer Construction Building - Built In 2006 - With High End Tenant Medical Improvements Double-Net Lease - Tenant Pays For All Expenses, Except Roof and Structure Tenant Recently Exercised 10 Year Lease Renewal in 2016 Hemodialysis Center With 12 Chair Capacity Located In Shopping Center with National Credit Tenants Including: Dollar Tree, CVS, Panda Express, Firestone Darvishian Investment Group is pleased to present a single-tenant investment to the marketplace. The subject property is a 6,000 square foot free standing building 100 percent leased and operated as a DaVita Dialysis. DaVita Healthcare Partners, Inc. (NYSE: DVA), is the parent company of DaVita Dialysis, one of the nations leaders in the treatment of kidney related diseases. The property was built in 2006 as a ground up development specifically for DaVita as a dialysis center to serve the local community. DaVita signed an initial 10 year lease in 2006 and recently exercised a ten year renewal in 2016. The property produces an initial 4.00 percent annual return with almost zero operating expenses and responsibilities to the landlord. The tenant is responsible for 100 percent of all expenses excluding roof and structure. This gives an investor a stable long term cash flow with almost zero landlord responsibilities, backed by a industry leader in the medical field. Steadily, the need for dialysis treatment is growing at an alarming rate. From 1984 to 2001 total dialysis patients grew over 360 percent. Growth in rural markets have been 25-30 percent higher than in the overall industry and the total patient count could double in 10 years. The reason for this continued growth is due to the aging population, lower mortality rates, earlier intervention and improving access to care. The continued need for dialysis treatment, high barriers to entry and little competition make owning a dialysis center a stable long term investment. 4 DaVita Dialysis Stock Photo 5

BL VD PA CA I YU R E ENT K OA EN 4 INVESTMENT HIGHLIGHTS 9 FINANCIAL OVERVIEW 11 RENT OVERVIEW 12 INVESTMENT OVERVIEW 14 TENANT OVERVIEW 16 PROPERTY DESCRIPTION 19 AREA OVERVIEW 20 DEMOGRAPHICS TE R GL EN RD 6 7

FINANCIAL OVERVIEW Price $3,600,000 Down Payment Building Square Feet $3,600,000 6,000 appx SF CAP Rate 4.00% Year Built 2006 Type of Ownership Fee Simple Lot Size 37,845 Tenant Summary 8 Tenant Trade Name DaVita Healthcare Partners Ownership Public Tenant Corporate and LLC Lease Guarantor Corporate and LLC Guarantee Lease Type Double Net (NN) Roof and Structure Landlord Responsible Lease Term 10 Years Lease Commencement November 1, 2006 Rent Commencement December 31, 2026 Lease Expiration Date December 31, 2026 Term Remaining 10 Years Increases Every 5 Years Options 3, 5-Year Options 9

RENT OVERVIEW K OA YU CA I PA GLE BL VD D R N Lease Term / Rent Increases Annual Rent Monthly Rent January 1, 2017 - December 31, 2017 $12,000 January 1, 2018 - December 31, 2018 $12,000 January 1, 2019 - December 31, 2019 $12,000 January 1, 2020 - December 31, 2020 $12,000 January 1, 2021 - December 31, 2021 $12,000 January 1, 2022 - December 31, 2022 $158,400 $13,200 January 1, 2023 - December 31, 2023 $158,400 $13,200 January 1, 2024 - December 31, 2024 $158,400 $13,200 January 1, 2025 - December 31, 2025 $158,400 $13,200 January 1, 2026 - December 31, 2026 $158,400 $13,200 Options To Renew FMV* FMV Base Rent ($26.40/SF) Net Operating Income *Tenant has Three (3) additional options to renew for Five (5) years each at 95% of Fair Market Value. Contact agent for details. 10 11

IMPROVEMENTS OVERVIEW Newer 2006 Construction Building and Improvements Heavy Medical Tenant Improvements, clinical space, nurses stations, patient prep rooms, treatment space, conference rooms, break rooms, exam rooms, administrative space and water treatment rooms Proprietary Water Filtration System Technology with Heavy Water and Sewer Lines throughout the Building Medicare and California Department of Health and Human Services Licensed Facility Heavy Power throughout the building, 600 Amp, 120/480 Volt, 3 Phase Electricity with Backup Generators Fire Sprinkler System Throughout Facility For a drone video of DaVita Dialysis Yucaipa and the surronding area. 12 13

TENANT OVERVIEW 2,445 Outpatient Dialysis Centers 194,600 Patients 11 Countries Outside U.S. 70,800 Employees $8.186 Billion Annual Revenue We are building the greatest healthcare community the world has ever seen through our commitment to upholding our Mission and Core Values every day, in everything we do. DaVita Healthcare Partners, Inc. Headquarters: Denver, CA CEO: Kent Thiry Founded: 1999 www.davita.com DaVita Inc., a Fortune 500 company, is one of the nation s largest and most innovative healthcare communities, leveraging a passion for and commitment to clinical excellence and improving patients health and quality of life. As an operating division of DaVita, DaVita Kidney Care focuses on setting worldwide standards for clinical, social and operational practices in kidney care. From raising awareness of the silent epidemic that is chronic kidney disease to providing industry-leading, no-cost diet and health-management resources to people diagnosed with it, DaVita Kidney Care continues its pursuit to keep people off dialysis as long as possible and to improve access to treatment and quality of life for those who do need dialysis. DaVita Medical Group, the country s largest operator of medical groups and physician networks, provides integrated care management as an operating division of DaVita, focusing on delivering outstanding healthcare across a broad range of services. DaVita Medical Group works with its patients to help them live life to the fullest and strives to lead the transformation of the national healthcare delivery system to ensure quality, accessible and affordable care for all. DaVita which is Italian for giving life has more than 46,000 teammates (employees) around the nation working to provide superior patient care. Subsidiary of DaVita Healthcare Partners, Inc. (DVA : NYSE) [1] www.davita.com 14 15

PROPERTY DESCRIPTION City of Yucaipa ASSESSOR S MAP 33487 Yucaipa Blvd APN: 0318-031-41 ADDRESS: 334878 Yucaipa Blvd YEAR BUILT: 2006 ROOF: Flat APN: 0318-031-41 HVAC: FOUNDATION: BUILDING SIZE: Rooftop Packs Concrete Slab 6,000 appx SF STORIES: One (1) CONSTRUCTION TYPE: Frame with Stucco LAND SIZE: PARKING RATIO: ELEVATOR: 37,8455 appx SF 50 Parking Spaces 8.33/1,000 SF No February 2005 16 17

YUCAIPA, CALIFORNIA AREA OVERVIEW SAN BERNARDINO COUNTY The United States Census Bureau estimated its 2014 population at 2,112,619 The county is the 17th largest city in California Minutes from major interstate highways like the I-10, I-215 and SR-215 The city has several notable hills and mountains; among them are: Perris Hill, Kendall Hill and Little Mountain. San Bernardino is a city located in the Riverside- San Bernardino metropolitan area (sometimes called the Inland Empire ). It serves as the county seat of San Bernardino County, California, United States. As one of the Inland Empire s anchor cities, San Bernardino spans 81 square miles on the floor of the San Bernardino Valley. ECONOMY San Bernardino s economy grew by 26,217 jobs, a 37% increase Amazon.com has built a new 950,000-squarefoot (22-acre) fulfillment warehouse on the south side of the San Bernardino International Airport. Large warehouses for Kohl s, Mattel, Pep Boys, and Stater Bros. have been developed n e a r t h e S a n B e r n a rd i n o I n t e r n a t i o n a l A i r p o r t. EDUCATION TOURISM Yucaipa is a mature, well-established community nestled in the foothills of the San Bernardino Mountains. The city is located 10 miles east of San Bernardino, in San Bernardino County. The population was 51,367 at the 2010 census, up from 41,207 at the 2000 census. According to San Bernardino County, the projected population in 2012 is 58,188. The City contains several City Parks, including an equestrian arena and a municipal pool, as well as a state park and a 200-acre regional park with lakes for swimming, boating, and fishing, plus campgrounds and playgrounds for the entire family. The Yucaipa-Calimesa School District has an outstanding reputation, and it ranks at or near the top in every category of educational achievement. In addition, Crafton Hills College offers day and evening programs of continuing education and training opportunities for personal and professional development. San Bernardino City Unified School District, the eighth largest district in the state San Bernardino student services employs over 1,200 employees, including 400 plus teachers California State University, San Bernardino serves more than 20,000 students each year and graduates about 4,000 students annually. San Bernardino is home to the historic Arrowhead Springs Hotel and Spa. The San Manuel Bingo and Casino brings in several thousands of tourist a month San Manuel Amphitheatre, originally Glen Helen Pavilion at the Cajon Pass is the largest amphitheatre in the United States. 18 19

DEMOGRAPHICS TE SI Yucaipa s present day is known for its transition to an incorporated city. In 2015, the City of Yucaipa will adopt an updated General Plan that will preserve and enhance the qualities that draw present residents and future generations to Yucaipa. Yucaipa is the jewel of the Inland Empire. Framed by the San Bernardino Mountains, Yucaipa s natural environment, with its cleaner air and unique topography, distinguishes its exceptional quality of life. Yucaipa offers an attractive, peaceful, and safe community for all residents, and it is thoughtfully planned, balancing the needs of residents, the environment, and the business community. Quality public facilities, schools, community services, and other amenities draw residents and visitors of all ages to live, work, play, and retire in Yucaipa. Yucaipa continues to work hard to preserve the community s character and maintain a careful balance between the needs of business, residents, and the environment. 20 1 Mile Radius POPULATION ECONOMY 9,361 within 1 mile 51,996 within 3 mile radius 3,111 Households within 1 miles 18,533 Households within 3 miles Population growth increased by 3.9% Household growth increased by 3.7% Traffic volume on Oak Glen Rd/Yucaipa Blvd 15,040. Freeway Corridor Specific Plan when completed will help improve the local tax base, and provide a long-term revenue source. Downtown area of Yucaipa offers several incentives to encourage investment. These include favorable bonus density provisions for quality residential development projects. EMPLOYMENT INFRASTRUCTURE The city of Yucaipa is proposing the development of the 90 AC Wilson Creek Specific Plan. The campus business park is anticipated to provide up to 500,000 square feet of uses and up to 500 jobs maximums. Median Household Income $72,977 within 1 mile, $52,688 3 mile radius Daytime Employees 2,498 within 1 mile, 10,541 3 mile radius The Freeway Corridor Specific Plan is a 1,242 AC project that will provide a regionally significant commercial center, commercial and business parks, as well as 2,500 new dwelling units The Uptown Business District encompasses 16 city blocks around Yucaipa Blvd/California St and the Uptown Specific Plan is intended to strengthen the area with a dynamic mix of viable commercial and residential land uses. 21

YUCAIPA BLVD 22 OA K GL EN RD CHAPMAN HEIGHTS COMMUNITY The Community of Chapman Heights launched the development in 2000 and currently has approximately 1700 homes. It includes several parks, acres of open space and is close to schools for all grade levels. Within the Chapman Heights community is the Yucaipa Valley Golf Course, an 18 hole championship course that interweaves throughout the community. There is a Sports Park, Community Center and Regional Park with water slides, boating and fishing. The Yucaipa Valley Golf Club provides a great golf experience in the hills in mid Yucaipa. Yucaipa Valley Golf Club offers quality and value for all the golfers, young and mature. The Yucaipa Valley Golf Club provides an fun and enjoyable experience outstanding golf at an exceptional price. 23