EAST CHOCOLATE PLAZA - ADMINISTRATIVE MEDICAL OFFICE BUILDING

EAST CHOCOLATE PLAZA - ADMINISTRATIVE MEDICAL OFFICE BUILDING 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033 Kai Youngman Advisor 484.245.1014 Kai.youngman@svn.com Logan Fazakerley Advisor 484.245.1000 logan.fazakerley@svn.com SVN IMPERIAL REALTY 1611 POND ROAD, SUITE 200, ALLENTOWN, PA 18104 OFFERING MEMORANDUM

Disclaimer The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk. EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Investment Summary SVN Imperial Realty is pleased to exclusively present East Chocolate Plaza, a class B+ medical office property located at 1135 E Chocolate Avenue, Hershey, PA 17033. This 41,000-square-foot property is strategically located minutes away from Penn State Health Milton S. Hershey Medical Center, one of Central Pennsylvania s most successful medical campuses. The medical campus is comprised of Penn State Health Milton S. Hershey Medical Center, Penn State Children s Hospital, and University Physicians Center, of which, the subject property is referred to as the administrative support and cyber security office. The property is primarily leased to Penn State Health Milton S. Hershey Medical Center, and is comprised of a well-rounded mix of other medical and professional office tenants, including East Chocolate Dental, Nestico Drudy, PC Law Firm, and Option Insurance. The subject property is ideally positioned within 2 miles of Downtown Hershey, PA. home to Hershey Amusement Park and Attractions, and is located on a major thoroughfare through the area with average daily traffic counts of over 20,000. Penn State Health Milton S. Hershey Medical Center Med Center - currently occupies 55 percent of the subject property, occupying 2,726-square-feet on the first floor, the entire the second floor, and an additional 5,716-square feet on the third floor. The Med Center also pays rent for 2,161-square-feet of Common Area on the first and third floors at the same rate and terms as their office space. Penn State Health Milton S. Hershey Medical Center is one of the top rated multi-specialty healthcare centers in Central Pennsylvania. The Med Center s strategic operations offices are comprised of: Cyber Security, Radiology, and Penn State Health Revenue Cycle. The Med Center recently signed a new lease addendum for additional space in the building. The two and half year lease for the additional space is currently under review by Penn State s governing committee to extend that lease term an additional five years. The Med Center s commitment to this location is robust, as they have invested millions of dollars into their space finishing, tenant fit-out, and upgrades. The cyber security deportment has spent major capital on their server room, system integrations, high level security measures, and access control system. The Med Center has also notified the current ownership that they are interested in potentially leasing more space in the property when it becomes available. New ownership will also have the ability to add-value and increase return on their investment through leasing the current 895-square-feet of vacant server space, which is convertible to office space. Additionally, two of the other current tenants also have annual rental increases fixed into their current lease terms. The operator of East Chocolate Dental, currently runs five dental practices across the region, and is the current owner of the property. East Chocolate Dental offers an investor a strong and favorable lease under the terms they have agreed to lease the space they currently occupy. This property offers an excellent opportunity for an investor to acquire a newly renovated Class B+ medical office asset, with a very strong anchor tenant, annual rental escalations in two current tenant s leases, and the potential for value-add through leasing the vacant server room. EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Investment Highlights EAST CHOCOLATE PLAZA 97.45% Occupied, Class B+ Medical Office Building Located in Hershey, Pennsylvania Anchored By Penn State Health Milton S. Hershey Medical Center; Recently Expanded Occupied Space to 55 Percent of the Gross Rent-Able Space Current Tenant Roster is Comprised of a Well-Rounded Mix of Other Medical and Professional Office Tenants; Tenants Include East Chocolate Dental, Nestico Drudy, PC Law Firm, and Option Insurance, & Keller Williams Located minutes from Penn State Health Milton S. Hershey Medical Campus; Less than Two Miles from Downtown Hershey, PA, Home to Hershey Amusement Park and Attractions Remodeled in 2005 and then Again in 2016-17; Current Owners Completely Renovated Interior & Exterior During Most Recent Building Upgrades; Owners have Invested over One Million Dollars on Improvements PSHMC's Commitment to this Location is Robust; PSHMC has Invested Major Capital into Their Space Finishing, Tenant Fit-Outs, and Upgrades; Including Cyber Security Department on Their Server Room, System Integrations, High Level Security Measures, and Access Control System Alone Dental Tenant Operator, East Chocolate Dental, Runs Five Dental Practices in the Region; Strong Sale Lease-Back Tenant Value-Add Potential Through Lease-Up of the Remaining Vacant 895-Square- Feet; PSHMC has also Informed the Current Ownership of Their Interest in Additional Space Should it Come Available EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Regional Map East Chocolate Plaza EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Aerial Photo EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

The Offering OFFERING SUMMARY Price $6,999,000 Gross Leasable Area 35,065 SF Lot Size 1.97 Acres +/- Year Built/Renovated 1990/2017 Cap Rate 7.25% ADDITIONAL RENT / EXPENSE REIMBURSEMENTS CAM $3,000 Floor 1 Common Area Rent $24,198 Floor 3 Common Area Rent $15,781 Total Additional Rent / Reimbursements $42,979 Effective Gross Income $630,815 PROJECTED RETURNS Year 1 2/1/2018-1/31/2019 Year 1 NOI $507,263 OPERATING EXPENSES CAM $13,980 Insurance $8,500 Taxes $48,518 MGMT $18,924 Utilities $33,600 Total Operating Expenses $123,552 Net Operating Income $507,263 EAST CHOCOLATE PLAZA - ADMINISTRATIVE MEDICAL OFFICE BUILDING 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Interior Photos EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Floor Plans EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Site Plan EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

UNIT PRICE TENANT UNIT SIZE LEASE LEASE LEASE ANNUAL %OF PER RECOVERY NAME NUMBER (SF) START ENO START RENT BUILOING SF/YR TYPE PSHMC - Revenue 301. 302. 303. 5.716 12/1/2017 3/31/2020 Current $105.746 13.92 $18.50 Gross Cycle & 305 Oplions Insurance 304 1.700 10/15/2015 10/14/2020 Current $23.800 4.14 $14.00 Gross 10/15/2018 $2.500 515.00 10/15/2019 $27,200 $16.00 COMMENTS 2 - One [1] Year Option Tern,s with Annual Rent Increases 1 - Five (5] Year Option Term with Annual Increases Totals/Averages 35,065 $586,423 $16.72 11 The Vacant Space (Suite 103) is a former server room. The space is convertible to office space. The space is currently be i ng marketed for lease for $24 per Sf' All Inclusive Rent (Grossi. 2) East Chocolate Dental is run by the owner of the property. ECO currently operates five dental practices across Pennsylvania. Please speak co listing agent for information on the tenant and terms of sale lease back. EAST CHOCOLATE PLAZA I 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033 SVN I Imperial Really

Income & Expenses INCOME SUMMARY YEAR 1 - STARTING 2/1/2018 PER SF PRO FORMA YEAR 2 - STARTING 2/1/2019 PER SF Scheduled Base Rental Income $587,836 $14.31 $590,761 $14.38 Expense Reimbursement Income $3,000 $0.07 $3,000 $0.07 PSHC Common Area Rent - Floor 1 (853 SF) $15,781 $0.38 $15,781 $0.38 PSHC Common Area Rent - Floor 3 (1,308 SF) $24,198 $0.59 $24,198 $0.59 Market Rental Income - Suite 103 @ $24/SF - - $21,480 $0.52 Gross Income $630,815 $15.36 $655,220 $15.95 EXPENSE SUMMARY YEAR 1 - STARTING 2/1/2018 PER SF PRO FORMA YEAR 2 - STARTING 2/1/2019 PER SF Electric $25,000 $0.61 $25,250 $0.61 Janitorial $6,210 $0.15 $6,272 $0.15 Water $2,400 $0.06 $2,424 $0.06 Sewer $1,200 $0.03 $1,212 $0.03 Gas $5,000 $0.12 $5,050 $0.12 Buliding Maintenance & Supplies $1,200 $0.03 $1,212 $0.03 Trash Removal $2,700 $0.07 $2,727 $0.07 Pest Control $1,400 $0.03 $1,414 $0.03 Snow Removal & Lawn Care $2,500 $0.06 $2,525 $0.06 Insurance $8,500 $0.21 $8,585 $0.21 Property Taxes $48,518 $1.18 $49,003 $1.19 Management Fee (3%) $18,924 $0.46 $19,632 $0.48 Gross Expenses $123,552 $3.01 $125,306 $3.05 Net Operating Income $507,263 $12.35 $529,914 $12.90 Year 1 Expenses were provided by the current owners. Year 2 Expenses used a one (1) percent) inflation factor for underwriting purposes. The current owners have no Management Fee. A market three (3) percent management fee was used for underwriting purposes. EAST CHOCOLATE PLAZA - ADMINISTRATIVE MEDICAL OFFICE BUILDING 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Financial Summary INVESTMENT OVERVIEW YEAR 1 - STARTING 2/1/2018 PRO FORMA YEAR 2 - STARTING 2/1/2019 Price $6,999,000 $6,999,000 Price per SF $170.42 $170.42 CAP Rate 7.25% 7.57% Cash-on-Cash Return 8.98 % 10.28 % Total Return $273,392 $296,043 Debt Coverage Ratio 1.45 1.51 OPERATING DATA YEAR 1 - STARTING 2/1/2018 PRO FORMA YEAR 2 - STARTING 2/1/2019 Gross Scheduled Income $587,836 $612,241 Other Income $42,165 $42,165 Total Scheduled Income $630,815 $655,220 Gross Income $630,815 $655,220 Operating Expenses $123,552 $125,306 Net Operating Income $507,263 $529,914 Pre-Tax Cash Flow $157,089 $179,740 FINANCING DATA YEAR 1 - STARTING 2/1/2018 PRO FORMA YEAR 2 - STARTING 2/1/2019 Down Payment $1,749,000 $1,749,000 Loan Amount $5,250,000 $5,250,000 Debt Service $350,174 $350,174 Debt Service Monthly $29,181 $29,181 Principal Reduction (yr 1) $116,303 $116,303 Financing Data shown represents a new loan (30% Down, 25 Year Amortization, Five Year Term, at 4.5% Interest Rate). Loan Information is subject to change. Please contact listing agent for further details. EAST CHOCOLATE PLAZA - ADMINISTRATIVE MEDICAL OFFICE BUILDING 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Tenant Profile OVERVIEW Organization: Penn State Health Milton S. Hershey Medical Center Founded: 1963 Combined Annual Budget $1.7 Billion Number Of Employees 11,000 + Number Of Physicians 1,100 + Annual Outpatient Visits (2016) 1,097,432 Annual Emergency Visits (2016) 74,945 Headquarters: Hershey, Pennsylvania Website: hmc.pennstatehealth.org INSTITUTES Six institutes: Penn State Cancer Institute, Penn State Heart and Vascular Institute, Penn State Bone and Joint Institute, Penn State Clinical and Translational Science Institute, Penn State Neuroscience Institute, and Penn State Institute for Personalized Medicine MEDICAL CENTER GENERAL INFORMATION Founded in 1963 through a gift from The Milton S. Hershey Foundation, Penn State Health Milton S. Hershey Medical Center is one of the leading teaching and research hospitals in the country. Penn State Health is made up of six institutes: Penn State Cancer Institute, Penn State Heart and Vascular Institute, Penn State Bone and Joint Institute, Penn State Neuroscience Institute, Penn State Clinical and Translational Science Institute, and Penn State Institute for Personalized Medicine. Penn State Medical Center has been recognized for numerous awards including: Twice designated as a Magnet hospital, and achieved highest level of recognition for nursing excellence from the American Nurses Credentialing Center. Penn State Health is the only medical facility in Pennsylvania to be accredited as both an adult and a pediatric Level 1 trauma center. In 2016, The University Technology Center opened, greatly expanding Penn State Health s ability to gather and analyze big data that can serve as the foundation for precision medicine and population health. In addition to secure storage, the University Technology Center houses powerful computers and data storage devices for analyzing information. EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Location Maps EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033

Demographics Map POPULATION 3 MILES 5 MILES 7 MILES Total population 26,113 49,211 75,157 Median age 40.8 41.7 41.4 Median age (male) 39.8 40.8 40.6 Median age (Female) 41.8 42.7 42.4 HOUSEHOLDS & INCOME 3 MILES 5 MILES 7 MILES Total households 11,367 20,669 30,874 # of persons per HH 2.3 2.4 2.4 Average HH income $69,108 $77,027 $79,782 Average house value $195,014 $200,706 $202,066 ETHNICITY (%) 3 MILES 5 MILES 7 MILES Hispanic 3.0% 2.4% 2.2% RACE (%) White 92.8% 93.7% 93.7% Black 1.0% 0.8% 0.8% Asian 3.5% 3.5% 3.3% Hawaiian 0.0% 0.0% 0.0% American Indian 0.0% 0.0% 0.0% Other 1.3% 0.9% 1.0% * Demographic data derived from 2010 US Census EAST CHOCOLATE PLAZA 1135 E CHOCOLATE AVENUE HERSHEY, PA 17033