CONFIDENTIAL OFFERING MEMOR ANDUM

HCA/FCS Cancer Center of Putnam 600 Zeagler Drive | Palatka, FL

100% Leased Class A Medical Facility | Across the Street from Putnam Community Medical Center Hospital

ERIK GAINORCEOHealthcare Properties Tel: (717) 503-6785erik.gainor@zeustra.com

I nv e s t m e n t A d v i s o r s Ze u s t r aHEADQUARTERS150 W. Chocolate AvenueHershey, PA 17033www.zeustra.com

This Offering Memorandum has been prepared by Zeustra | Real Estate Investment Services (“Zeustra”) for use by a limited number of parties and has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. All projections have been developed by Zeustra, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by Zeustra or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Zeustra, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and Zeustra each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to sell the property to any entity reviewing this Offering Memorandum or making an offer. This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or Zeustra and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or Zeustra. If you have no interest in the property, please return the Offering Memorandum forthwith.

ANTHONY CIMINOVice President Healthcare Properties Tel: (813)486-6323anthony.cimino@zeustra.com

TABLE OF CONTENTS

Executive Summary

Tenant Overview

Financial Analysis

01

02

03

Executive SummaryHCA/FCS

Cancer Centerof Putnam

5Executive Summary

T h e O p p o r t u n i t y Zeustra | Real Estate Investment Services (“Zeustra”) has been retained on an exclusive basis with respect to the disposition of the HCA/FCS Cancer Center of Putnam, located at 600 Zeagler Drive, Palatka, Florida (the “Property” or the “MOB”).

The Cancer Center is a fee-simple 18,320 square foot medical office facility, 100% leased to Putnam Radiation Oncology (whose majority partner is Hospital Corporation of America (“HCA”)) and Florida Cancer Specialists (“FCS”).

The Property has been home to the #1 Cancer Center in Putnam County since being built in 1991. It is highly recognized to be in the forefront of cancer care, diagnosis and treatment in Northeast Florida utilizing state-of-the-art techniques. In 2017, the Radiation Oncology portion of the Property was completely renovated enhancing the almost 30 year old existing practice.

The Property is located across the street from the Putnam Community Medical Center, which has been in operation for over 40 years at this location and owned by HCA for the past 3+ years.

HCA/FCSCancer Center

BY THE NUMBERS

2CREDIT TENANTS

100%Leased

#1Cancer Center

The Putnam Community Medical Center is a 128,007 square foot, 99-bed acute care facility which includes a 10-bed Intensive/Critical Care Unit, Step-Down Care Unit, Cardiac Cath Lab, medical and surgical units, family birthplace center a 24-hour emergency department and impatient and outpatient rehabilitation services.

The Putnam Community Medical Center and The Cancer Center are the sole providers in Putnam County with over 65,000 residents.

Operating Since

1991

SERVING

65,000RESIDENTS

6Executive Summary

I nv e s t m e n t S u m m a r yPROPERTY SUMMARY

Name HCA/FCS Cancer Center of Putnam

Address 600 Zeagler Drive, Palatka, FL

Size (Sq. Ft.) 18,320

% Leased 100%

Year Renovated 2017

# of Stories 1

Ownership Fee Simple

LEASE SUMMARY

Tenant HCA / Putnam Radiation Oncology Florida Cancer Specialists

GLA % 82% 18%

SF Leased 15,002 3,318

In-Place Rent (Sq. Ft.) $27.04 $19.57

Remaining Lease Term 7 Years 8 Years

Rent Escalations 3% per annum 3% per annum

Options 2 - 5 Years None

7Executive Summary

L o c a t i o n O v e r v i e wThe Cancer Center is located in the City of Palatka within Putnam County, Florida. Being just 55 miles south of Jacksonville, 57 miles northwest of Daytona Beach and 97 miles north of Orlando, this City has access to three international airports.

In addition, the Property is located directly across from the HCA owned Putnam Community Medical Center.

LOCATION DEMOGRAPHICS

5 Miles 10 Miles 20 Miles

Population 23,285 140,483 3,965,985

Median Age 35.5 42.2 40.5

Total Households 8,526 54,124 1,537,108

Avg. Household Income $44,886 $51,535 $63,859

Avg. House Value $181,324 $192,499 $239,663

HCA/FCSCancer Center of

Putnam

Crill Avenue

Crill Avenue

Zeag

ler D

rive

8

Va l u eSales Price $5,000,000

Price per SF $273

Cap Rate 7.35%

Base Rent $515,065

Expense Reimbursement $14,106

Gross Potential Income $529,171

Operating Expenses $161,521

Net Operating Income $367,650

TenantProf i le

HCA/FCS Cancer Centerof Putnam

10Tenant Profile

Hospital Corporation of America (or HCA) is one of the nation’s leading providers of healthcare services and is ranked 63rd in the Fortune 500. It is made up of locally managed facilities that include 178 hospitals and 119 freestanding surgery centers located in 20 U.S. states and in the United Kingdom. HCA owns 106 hospitals, and has 240,000 employees, 37,000 active physicians, and over 80,000 nurses.

Putnam Radiation Oncology, which utilizes 15,002 SF of the Property, uses state-of-the-art techniques such as Image Guided Radiation Therapy (IGRT), Intensity Modulated Radiation Therapy (IMRT), and Stereotactic Radiosurgery. The Tenant also has mobile PET/CT on site 2x per week.

Dr. Kuruvilla is the Director of the Cancer Center of Putnam and has served the community since 1991. He has also served as Chief of ���of Putnam Community Medical Center and used to serve as a Trustee on the Board. He is a member of the Rotary Club of Palatka, the Putnam County Medical Society, Florida Medical Association, American Society of Therapeutic Radiology and Oncology, American College of Radiation Oncology, American Society of Clinical Oncology and American College of Radiology and the American College of Hospice and Palliative Medicine. He recently received the Business Person of the Year award for Putnam County.

Over the past 27 years, Dr. Kuruvilla has been president of the Putnam Community Medical Society, Indian Cultural Society and Indo American Medical Association of Northeast Florida and has been a past president of the Rotary Club of Palatka.

cancercenterputnam.com

HCA/Putnam Radiation Oncology

11Tenant Profile

Founded in 1984, Florida Cancer Specialists & Research Institute (FCS) is the largest independent medical oncology/hematology practice in the United States. With over 200 physicians, 160 nurse practitioners and physician assistants and nearly 100 locations in our network, they are committed to providing world-class cancer care in community-based settings close to home.

Recognized by the American Society of Clinical Oncology (ASCO) with a national Clinical Trials Participation Award, FCS ����patients access to more clinical trials than any private oncology practice in Florida. 84% of new cancer drugs approved in 2016 for use in the U.S. were studied in clinicaltrials conducted with FCS participation. FCS’ physicians are consistently ranked nationally as Top Doctors by U.S. News & World Report. Trained in such prestigious medical schools and research institutes as Duke, Stanford, Harvard, Emory, M.D. Anderson, and Memorial Sloan-Kettering, the physicians of Florida Cancer Specialists provide leadership and consultation in the state’s leading hospitals.

FCS serves patients on the Gulf Coast from Naples to the greater Tampa Bay area, north as far as Tallahassee, in Orlando and surrounding Central Florida communities, and on the East Coast from Jacksonville/Fleming Island to Palm Beach County.

Florida Cancer Specialists has built a national reputation for excellence that is �����in exceptional and compassionate patient care, driven by innovative clinical research and cutting-edge technologies that help advance targeted treatments and genetically-based immunotherapies, and embodied by our outstanding team of highly-trained and dedicated physicians, �����������

Florida CancerSpecialists

FCS utilizes 3,318 SF of the Property to serve their patients and ����mobile PET/CT services on site 2x per month. The mobile PET/CT services include a ground lease of $300 for every Monday of every second week or $600 per month. The services also include a mobile pad parking license agreement in which the tenant is responsible for a monthly license fee of $2,383.33.

Dr. J Wynn Sullivan, who oversees the practice, received his undergraduate degree in Microbiology at the University of Florida located in Gainesville, Florida, and received his Doctorate of Osteopathic Medicine at NOVA Southeastern University located in Ft. Lauderdale, Florida. Dr. Sullivan �����his Residency and Fellowship in Jacksonville, Florida, at the University of Florida Health Science Center with training in Medical Oncology and Hematology. He received additional training from the US Oncology Research in Good Clinical Practice (GCP). Dr. Sullivan has over 30 years of clinical experience, including industry and network trials.

Financial Analysis

HCA/FCS Cancer Centerof Putnam

13Financial Analysis

LEASE SUMMARYGENERAL TENANT INFORMATION

Tenant Name Putnam Radiation Oncology

Commencement DateExpiration DateLease TermRentable Square FeetBuilding Share

October 10, 2019 October 31, 2027

8 Years 15,002 SF

82%

RENEWALS

RENT DETAILSIN-PLACE$/SF Annual $27.04Annual Base Rent $404,616Monthly Base Rent $33,718

ESCALATIONS

$/SF Annual $27.04

$27.85

$28.68

Date of Increase November 2019

November 2020

November 2021

November 2022

November 2023

November 2024

November 2025

November 2026

November 2027

$29.54

R e n t R o l l - P u t n a m R a d i a t i o n O n c o l o g y

$30.43

$31.34

$32.28

$33.25

$34.25

14Financial Analysis

LEASE SUMMARYGENERAL TENANT INFORMATION

Tenant Name Florida Cancer Specialists

Commencement Date Expiration Date Lease Term RemainigRentable Square Feet Building Share

February 1, 2018 January 31, 2028

8 years 3,318 SF

18%

EQUIPMENT GROUND LEASE SUMMARY

Tenant Name Florida Cancer Specialists

Commencement DateExpiration DateLease TermRentable Square FeetBuilding ShareAnnual In-Place RentEscalationsOptions

July 9, 2018 January 31, 2028

4.6 years 3,31818%

$7,200NoneNone

RENT DETAILSIN-PLACE$/SF Annual $19.57Annual Base Rent $64,933Monthly Base Rent $5,411

ESCALATIONS$/SF Annual

$19.57

$20.16

$20.76

Date of Increase

February 2019

February 2020

February 2021

February 2022

February 2023

February 2024

February 2025

February 2026

February 2027

$21.38

R e n t R o l l - F l o r i d a C a n c e r S p e c i a l i s t s

$22.02

$22.69

$23.37

$24.07

$24.79

I nv e s t m e n t A d v i s o r s Ze u s t r aHEADQUARTERS150 W. Chocolate AvenueHershey, PA 17033www.zeustra.com

ERIK GAINORCEOHealthcare Properties Tel: (717) 503-6785erik.gainor@zeustra.com