F r e s e n i u s , B e t h l e h e m , P A | 1 |

Fresenius1 0 0 5 H a r v a r d A v e n u e | B e t h l e h e m , P A

™

O F F E R I N G M E M O R A N D U M

™

e x c l u s i v e ly l i s t e d b y

B r ya n t h o o v e r

Senior Associate

bryant .hoover@matthews.comMOB (310) 774-2163LIC # 01368589

S C O T T B U R D E T TBROKER OF RECORD

LIC # 10301213057

c o n t e n t

0 4 E X E C U T I V E S U M M A R Y 0 5 f i n a n c i a l O V E R V I E W 1 4 a r e a O V E R V I E W0 6 t e n a n t o v e r v i e w

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• 2017 Build-to-Suit Construction

• Investment Grade Credit

• Brand New 12 Year Lease

• 100% occupied by Fresenius Dialysis

• 2% Annual Rent Increases

• Corporate Guarantee from Fresenius Medical Care Holdings, INC

• Immediate proximity to several major hospitals

• Major shopping centers within a 5-mile radius

• 20 Year Roof Warranty – Transferable

i n v e s t m e n t h i g h l i g h t s

The Hellertown Fresenius Clinic is a 2017 build-to-suit, state of the art, single-tenant clinic with 8,275 square feet. The clinic includes 16 patient stations, two Peritoneal dialysis rooms, an office for the Home therapy nurse, a director’s office, manager’s office and two conference rooms. The lease commences on May 1, 2017 which includes a rare two percent annual rent increase and a corporate guarantee by Fresenius Medical Care Holdings, INC (FMCH).

The clinic is in an excellent location on Harvard Avenue, a street situated off of Hellertown Road, which see traffic counts of over 19,000 vehicles. For a dialysis center, this property enjoys a fantastic location at only 3.9 miles from St. Luke’s Hospital, 6.7 miles from Good Shepherd Hospital and 6.6 miles from Lehigh Valley Hospital. Major shopping centers within a 5-mile radius include The Outlets at Sands Bethlehem (1.35 miles), Westgate Mall (4.38 miles), Lehigh Shopping Center (4.54 miles), Southmont Center (4.65 miles), The Promenade Shops Saucon Valley (4.73) miles and Bethlehem Square (4.92 miles).

o f f e r i n g s u m m a r y

e x e c u t i v e s u m m a r y

F r e s e n i u s1005 Harvard AvenueBethlehem, PA 18015

List Price ...........................................................................................$3,726,204

CAP Rate - Current ...................................................................................5.68%Gross Leasable Area ...................................................................... ± 8,275 SF Lot Size ...........................................................................................± 2.91 Acres Year Built ........................................................................................................2017

F r e s e n i u s , B e t h l e h e m , P A | 5 |

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Year 1 $17,646.44 $211,757.25 $25.59 5.68%

Year 2 $17,999.37 $215,992.40 $26.10 5.80%

Year 3 $18,359.35 $220,312.21 $26.62 5.91%

Year 4 $18,726.54 $224,718.49 $27.16 6.03%

Year 5 $19,101.07 $229,212.86 $27.70 6.15%

Year 6 $19,483.09 $233,797.11 $28.25 6.27%

Year 7 $19,872.75 $238,473.06 $28.82 6.40%

Year 8 $20,270.21 $243,242.06 $29.39 6.53%

Year 9 $20,675.61 $248,107.37 $29.98 6.66%

Year 10 $21,089.13 $253,069.52 $30.58 6.79%

Year 11 $21,510.91 $258,130.91 $31.19 6.93%

Year 12 $21,941.13 $263,293.52 $31.82 7.07%

Tenant Summary

Tenant Trade Name Fresenius Medical Care

Type of Ownership Fee Simple

Lease Guarantor Fresenius Medical Care Holdings, Inc.

Lease Type NN

Roof and Structure Landlord

Original Lease Term 12 Years

Rent Commencement Date May 1, 2017

Lease Expiration Date May 1, 2029

Term Remaining on Lease ± 12 Years

Increases 2% Annual Increases

Options Three, 5-Year Options

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

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T e n a n t o v e r v i e w

F r e s e n i u s , B e t h l e h e m , P A | 7 |

Property Name Fresenius Medical Care

Parent Company Trade Name Fresenius Medical Care Holdings, Inc.

Ownership Subsidiary

Revenue $10.37B

Net Income $787.64M

No. of Locations ± 3,573

No. of Employees ± 108,851

Headquartered Waltham, MA

Website www.fmc-ag.com

Year Founded 1988

FRESENIUS OVERVIEWFresenius 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.

A LEADING SERVICE PROVIDER

Fresenius Medical Care is the world’s leading provider of products and services for people with chronic kidney failure. Around 2.8 million 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.

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Col

lege

Blv

d ±

40,11

6

t h e o f f e r i n g

Oceanside Blvd ± 31,792

p a r c e l m a p

Property Name Fresenius

Property Address 1005 Harvard Avenue

Bethlehem, PA 18015

Assessor’s Parcel Number P7 14 1B-1 0204

Site DescriptionNumber of Stories OneYear Built 2017Gross Leasable Area (GLA) ± 8,275 SFLot Size ± 2.91 Acres (126,760 SF) Type of Ownership Fee SimpleParking ± 33 Surface SpacesParking Ratio 3.99 : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete SlabFraming SteelExterior MasonryParking Surface AsphaltRoof Flat

T r a f f i c c o u n t s

Hellertown Road: ± 19,000 ADT

Interstate 78: ± 52,000 ADT

F r e s e n i u s , B e t h l e h e m , P A | 9 |

Subject Property

The Outlets at Sands Bethlehem

Lehigh University

Lehigh University Murray H. Goodman

Campus

Lehigh University Mountaintop Campus

South Side Historic District

Hel

lert

own

Road

L O C A L t e n A N T M A P

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Subject Property

St. Luke’s Hospital - Anderson Campus

Coordinated Health Easton

St. Luke’s Hospital

Coordinated Health Orthopedic Hospital

St. Chris Specialty Pediatrics at St. Luke’s

Good Shepherd Rehabilitation Hospital Pediatric Unit

Good Shepherd Specialty Hospital

Salib Oncology

LVPG Obstetrics and Gynecology - West Broad

St. Luke’s HospitalSt. Luke’s University

Health Network

Coordinated Health Bethlehem

Lehigh Valley Hospital - Muhlenberg

Advanced Cardiac Care LLC

Easton Hospital X-Ray Services

H o s p i ta l m a p

Subject Property

St. Luke’s Hospital - Anderson Campus

Coordinated Health Easton

St. Luke’s Hospital

Coordinated Health Orthopedic Hospital

St. Chris Specialty Pediatrics at St. Luke’s

Good Shepherd Rehabilitation Hospital Pediatric Unit

Good Shepherd Specialty Hospital

Salib Oncology

LVPG Obstetrics and Gynecology - West Broad

St. Luke’s HospitalSt. Luke’s University

Health Network

Coordinated Health Bethlehem

Lehigh Valley Hospital - Muhlenberg

Advanced Cardiac Care LLC

Easton Hospital X-Ray Services

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F L O O R P L A N

F r e s e n i u s , B e t h l e h e m , P A | 1 3 |

s i t e P L A N

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Commonly used to refer to the Philadelphia metropolitan area, the Delaware Valley is the valley through which the Delaware River flows. It is located at the southern part of the Northeast megalopolis, extending from Boston to Washington, D.C. metropolitan areas. Composed of several counties in southeastern Pennsylvania, southwestern New Jersey, northern Delaware and northeastern Maryland, the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA has a population of over 6 million people and is the sixth-largest metropolitan area in the United States. Philadelphia, the largest city in the Commonwealth of Pennsylvania and in the MSA, is the fifth-most populous city in the United States.

T H E D E L A W A R E VA L L E Y

a r e a o v e r v i e w

E c o n o m yAs the economic and cultural anchor of the Delaware Valley, Philadelphia is home to the headquarters of seven Fortune 1000 companies. It is also a great place to start a business since it offers easy access to capital and the state has a low tax rate. Pieces of its unique history are still evident amidst the modernization of the vibrant city. Additionally, the city’s harbor, one of the largest freshwater ports in the world, is the centerpiece of the AmeriPort facility in south Philadelphia, a major shipping center with rail links to the Midwest and Canada.

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a r e a o v e r v i e w

T o u r i s m a n d C u lt u r a l A m e n i t i e s

Visitors can also venture into the Philadelphia Countryside to explore the small towns within the city’s outlying counties. A quick ride on Septa’s Regional Rail or a short drive up the Schuylkill Expressway leads to the quintessential small towns of Philadelphia’s suburbs. With cultural attractions such as Washington Crossing Historic Park and Valley Forge National Historical Park, the countryside reads like a text on early United States history. In the counties, daytime sightseeing blends seamlessly into evening dinner and cocktails.

Offering special seasonal and year-round events, there’s no better place to enjoy the warm weather season than at Chaddsford Winery, where outdoor concerts and tastings make for a lively evening, or Longwood Gardens, where fireworks and fountains light up the night sky.

Once the original capital of America, Philadelphia has a history enriched with culture, history and symbolism. The city is a melting pot of races, traditions and immigrant cultures and also possesses amenities that only the city’s own heritage can provide. It is home to the Liberty Bell and the birthplace of the Declaration of Independence and Independence Hall, both of which are tributes to the city’s revolution. Just minutes from Independence National Historical Park, which includes the Liberty Bell and Independence Hall, is Bartrams Garden, a pastoral 18th-century homestead surrounded by the urban bustle of the city and America’s oldest living botanical garden. Other significant tourist attractions include the Philadelphia Museum of Art, the Franklin Institute Science Museum, and the Philadelphia Zoological Gardens.

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B E T H L E H E M , P E N N S Y LVA N I A

P r o p e r t y D e m o g r a p h i c s

Population 3-Mile 5-Mile 10-Mile

2022 Projection 67,210 133,044 468,618

2017 Estimate 66,778 131,976 462,821

Growth 2017 - 2022 0.65% 0.81% 1.25%

Households 3-Mile 5-Mile 10-Mile

2022 Projection 25,756 51,551 178,514

2017 Estimate 25,544 51,067 176,354Growth 2017 - 2022 0.83% 0.95% 1.22%

Income 3-Mile 5-Mile 10-Mile

2017 Est. Average Household Income $68,683 $79,517 $75,131

Also known as Christmas City, Bethlehem is a city in the Lehigh Valley region of the eastern portion of Pennsylvania. It is about an hour drive from Philadelphia, and borders with the cities of Allentown and Easton. Bethlehem emerged as a center for heavy industry and trade with the organization of Bethlehem Steel Corp., the company that produced the steel for the construction of the Golden Gate Bridge. Throughout the last decade, Bethlehem has experienced a renaissance, transforming it into a hub of trendy dining, shopping and nightlife. Bethlehem’s historic district now contains the city’s “Restaurant Row” as well as art galleries and shops.

Las Vegas Sand Corp instigated reinvestment and urbanization in the area with its brownfield redevelopment project in 2006. Categorized as the largest casino development investment made in the Commonwealth of Pennsylvania, the $743 million project yielded the Sands Casino Resort. St. Luke’s Hospital in neighboring city Fountain Hill is also a major economic anchor; It is the second largest hospital and health network of its type in the Lehigh Valley. Other major employers in the city include B. Braun, Lehigh University, and the Guardian Life Insurance Company of America.

Subject Property

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INDEPENDENCE HALLIndependence Hall is a popular spot within Independence National Historical Park. Having been the site of the creation and signing of the Declaration of Independence and the Constitution, Independence Hall is one of only 23 World Heritage sites in the U.S. and draws close to 728,000 visitors each year.

NATIONAL CONSTITUTION CENTERThe National Constitution Center is a museum that is dedicated to the National Constitution and examines “We the People.” Museum visitors can explore exhibits and artifacts, take in the theatrical production Freedom Rising, view an original Bill of Rights and walk among life-size statues of the Founding Fathers.

LIBERTY BELL

PHILADELPHIA MUSEUM OF ART

p h i l a d e l p h i a’ s at t r a c t i o n s

Located across from Independence Hall in Independence National Historical Park, the Liberty Bell was originally cast in Great Britain and recast in Philadelphia to adorn the State House in 1753. It was used to call the Pennsylvania Assembly to meetings and eventually became a symbol for equality.

Containing vast collections of Renaissance, American and impressionist masterpieces, the Philadelphia Museum of Art is one of the most important art museums in the country. Its impressive holdings, acclaimed exhibitions, special programs and beautiful outdoor Sculpture Garden make it a must-see site.

READING TERMINAL MARKETReading Terminal Market is the most visited attraction in Philadelphia, drawing more than six million people each year. With everything from local produce and delicious sandwiches to artisanal cheeses and desserts, Reading Terminal Market is a one-stop shop indoor foodie paradise.

THE FRANKLIN INSTITUTEAs one of the oldest and most beloved science museums in the country, the Franklin Institute has been an innovator in designing hands-on exhibits. The museum’s attractions explore science in disciplines ranging from sports to space, appealing to a wide variety of visitors’ interests.

FRANKLIN SQUAREFranklin Square, one of the original five squares in William Penn’s plan for the city, offers a refreshing green space with many recreational activities within its eight-acres. The square is a modern and fun family park with a Philly-themed miniature golf course, a marble fountain, playgrounds and a carousel.

THE PHILADELPHIA ZOOSituated on 42 acres of lush gardens, the Philadelphia Zoo prides itself on being America’s first zoo. With over 1,300 animals in its exhibits, the Philadelphia Zoo offers a first-in-the-world animal travel and exploration system call Zoo360, which gives animals more room to roam through a network of walkways.

JOHN F. KENNEDY PLAZAKnown by locals and visitors as LOVE Park, John F. Kennedy Plaza houses the Love sculpture by Robert Indiana. The park serves as a grand entrance to the Benjamin Franklin Parkway and is a popular spot for food trucks, entertainment and picnicking. During the winter, an ice rink brings skaters to the promenade.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Fresenius located at 1005 Harvard Avenue, Bethlehem, PA 18015 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

F r e s e n i u s , B e t h l e h e m , P A | 1 9 |

e x c l u s i v e ly l i s t e d b y

B R YA N T H O O V E R

Senior Associate

bryant .hoover@matthews.comMOB (310) 774-2163LIC # 01368589

Fresenius1 0 0 5 H a r v a r d A v e n u e | B e t h l e h e m , P A

™

S C O T T B U R D E T TBROKER OF RECORD

LIC # 10301213057