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OverviewDAV I TA D I A LYS I S of fer ing memorandum

ROMULUS, MI

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Marcus & Millichap is pleased to present DaVita Dialysis in Romulus, Michigan, located 20 miles southwest of Detroit. DaVita recently signed a 13-year Double-Net (NN) lease extension with limited landlord responsibilities. This demonstrates DaVita’s commitment to location as it has been operating here for almost 20 years. The lease features 10 percent rent bumps every five years and in both extension options. The asset has a corporate guaranty from DVA Renal Healthcare, Incorporated (Inc.), a Fortune 500 company that did $10.8-billion in revenue across 2,350 treatment centers in 2017.

The subject property is located nearby the intersection of Ecorse and Merriman Road, more than 30,000 vehicles pass this thoroughfare per day. DaVita is located less than two miles north of Detroit Metropolitan Wayne County Airport (DTW), the largest airport in Michigan. There is also significant capital entering the Romulus market. Currently there is more than $400 million in industrial development permits. Some of these projects include a new Amazon Fulfillment Center and a Penske Logistics Warehouse.

Additional retailers in the immediate vicinity include: DICK’S Sporting Goods, PetSmart, Starbucks, Chick-fil-A, Ashley HomeStore, Target, CVS Pharmacy, Dollar Tree, Best Buy, Marshalls, and many more.

I N V EST M E N T OV E RV I E W

2This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330957

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• Recently Extended DaVita Dialysis in Romulus, MI | 20 Miles Southwest of Detroit

• More Than 12 Years Remaining on Double-Net Lease | Limited Landlord Responsibilities

• Corporate Guaranty | New York Stock Exchange (NYSE): DVA | $10.8 Billion in Revenue (2017)

• Tenant Demonstrates Commitment | Near 20 Year Operating History

• Hedge Against Inflation | 10 Percent Rent Bumps Every Five Years

• Nearby Signalized Hard Corner of Ecorse and Merriman Road | More Than 30,000 Vehicles Per Day (VPD)

• Located Two Miles North of Detroit Metropolitan Wayne County Airport (DTW) | More Than 34 Million Passengers

• Growing Demand for Dialysis Treatment | Michigan Obesity Rate Increased More Than 9 Percent from 2000 to 2016

• Significant Capital Entering Romulus Market | More Than $400 Million in Active Industrial Development Permits | New Amazon Fulfillment Center and Penske Logistics Warehouse

• Dense Demographics | More Than

INVESTMENT HIGHLIGHTS

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F I N A N C I A L O V E R V I E W

PRICE $2,678,260

CAP RATE 5.75%

NOI $154,000

PRICE PER SQUARE FOOT $382.60

RENT PER SQUARE FOOT $22.00

YEAR BUILT 1998

APPROXIMATE LOT SIZE 0.97 Acres

GROSS LEASEABLE AREA 7,000

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTORDVA Renal Care Incorporated (Inc.)

LEASE TYPE Double-Net (NN)

ROOF AND STRUCTURE Tenant Responsible

3 1 4 7 0 E C O R S E R O A D R O M U L U S , M I C H I G A N 4 8 1 7 4

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4This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330957

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L E A S E S U M M A RY

LEASE COMMENCEMENT DATE 7/1/2010

LEASE EXPIRATION DATE 4/30/2031

LEASE TERM 13 Years

TERM REMAINING 12+ Years

INCREASES 10% in Year 8

OPTIONS TO RENEW 2, 5-Year A N N U A L I Z E D O P E R A T I N G D A T A

BASE RENTANNUAL

RENTMONTHLY

RENT

5/1/2018 4/30/2026 $154,000.00 $12,833.33

5/1/2026 4/30/2031 $169,400.00 $14,116.67 10%

OPTIONS

5/1/2031 4/30/2036 $186,340.00 $15,528.33 10%

5/1/2036 4/30/2041 $204,960.00 $17,080.00 10%

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5This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330957

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T E N A N T O V E R V I E WDaVita Incorporated, a Fortune 500 company, is the parent company of DaVita Kidney Care and HealthCare Partners, a DaVita Medical Group. DaVita Kidney Care is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease. DaVita Kidney Care consistently differentiates itself from other kidney care companies and surpasses national averages for clinical outcomes. The company’s clinical outcomes for dialysis have improved for the past decade, and in many key areas measuring quality dialysis care, we lead the nation. As of December 31, 2016, DaVita Kidney Care operated or provided administrative services at 2,350 outpatient dialysis centers located in the United States serving approximately 188,000 patients. The company also operated 154 outpatient dialysis centers located in 11 countries outside the United States.

T E N A N T P R O F I L E

TENANT TRADE NAME DaVita Kidney Care

OWNERSHIP Public

TENANT Total Renal Care, Incorporated (Inc)

LEASE GUARANTOR DaVita, Incorporated (Inc)

NUMBER OF LOCATIONS 2,300+

HEADQUARTERED Denver, CO

WEB SITE https://www.davita.com/

SALES VOLUME $14.7 Billion (2016)

NET WORTH $4.6 Billion (2016)

CREDIT RATING BB

RATING AGENCY Standard & Poor’s (S&P)

RANK #181 in Fortune 500 (2017)

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7This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330957

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A B O U T R O M U L USRomulus is an inclusive but close-knit community that holds traditional values and offers lots of room to grow. This is the ideal community for people who enjoy simple sophistication yet want to be surrounded by the advantages of the big city.

Detroit, Ann Arbor and Toledo are just minutes away from town, offering you world-renowned cultural, entertainment and sporting venues.

Romulus’ exemplary schools provide innovative and nationally recognized programs for their talented students.

Their healthcare facilities are well respected and include several hospitals and medical centers. They’re also fortunate to have major medical research hospitals in our backyard, including the world-class University of Michigan Medical Center.

Romulus is home to major industries and corporate headquarters, ensuring a strong economy. Additional Fortune 500 companies are just minutes away, making workplace commutes quick and easy.

In fact, that’s one of their big advantages. They are nestled near major airports and expressways, making their location attractive to both residents and businesses. They are close enough, yet far enough, to offer the best of all worlds.

Their community spirit is evident in everything they do, from hosting city-wide festivals and celebrations to maintaining attractive park facilities and preserving historic museums and sites.

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8This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330957

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2000 Population 1,962 46,136 182,636 2000 Households 635 5,939 18,816 2018 Average HH Income $95,269 $98,863 $91,352

2010 Population 2,017 43,105 171,965 2010 Households 1,012 8,127 27,905 2018 Median HH Income $79,367 $80,187 $69,632

2017 Population 2,011 41,948 166,088 2018 Households 1,373 9,823 32,841 2018 Per Capita Income $38,303 $36,390 $33,651

MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:

The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .

As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.

Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .

Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .

L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.

By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.

B R O K E R O F R E C O R D : S T E V E N C H E B E N | M A R C U S & M I L L I C H A P | M I C H I G A N | L I C E N S E : 6 5 0 2 3 8 7 9 0 3

DAV I TA D I A LYS I S of fer ing memorandum

ROMULUS, MI

3 1 4 7 0 E C O R S E R O A D R O M U L U S M I C H I G A N 4 8 1 7 4