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DaVita Dialysis7200 Gateway Blvd E. El Paso, Texas 79915

OFFERING MEMORANDUM

This Marketing Brochure contains select information pertaining to the business and affairs of DaVita located at 7200 Gateway Blvd E. El Paso, Texas 79915 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

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 the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

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 performance.

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 the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. 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 Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITy & DISCLAIMER STATEMENT

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PRICING AND FINANCIAL ANALySISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Lease Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

PROPERTy DESCRIPTIONProperty Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Tenant Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

TABLE OF CONTENTS

PRESENTED By

Mark CohenBroker of Record

License No. 447509

Michael MorenoAssociate

License No. 01982943O 310.919.5838M 818.522.4497michael.moreno@matthews.com

Aron ClineVP & Sr. Director

License No. 01904371O 310.919.5816M 818.632.0233aron.cline@matthews.com

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Michael Moreno and Aron Cline of Matthews Retail Advisors are pleased to offer to interested investors a free standing DaVita Dialysis building in the heart of El Paso, Texas. The subject property is strategically located next to two major medical complexes and directly across the street of the largest retail corridor in El Paso. This dialysis investment offers investors the opportunity to invest in one of the fastest growing tenants in the country in a service field that is considered by many as the safest investment in the net lease industry.

INVESTMENT HIGHLIGHTSPROPERTy DETAILS• 100% occupied by DaVita Dialysis (One of the nations largest

dialysis providers)• DaVita recently expanded to fill up the entirety of the property -

DaVita is very committed to this location • Extremely Secure Net Lease Investment - Dialysis is one of the

fastest growing medical segments in the net lease market • NN Lease - Minimal landlord responsibilities offers potential

investor extremely passive investment

LOCATION• Dialysis clinic is strategically located down the street from Del

Sol Medical Center and University Medical Center - El Paso• Located directly across from major El Paso retail corridor that

includes Walmart, Sam’s Club, Barnes & Noble, Nordstrom Rack, Petsmart, Chipotle, Best Buy, Olive Garden, JC Penny, Macy’s, Starbucks, Guest, Apple Store, Sears, Dillard’s, Pier 1 Imports, and Dick’s Sporting Goods - this is one of the most heavily visited areas in the city of El Paso.

• Very Popular Area - Traffic counts at nearby intersection in excess of 230,000 per day (I-10 and Hawkins Blvd.)

• Dense Demographics: 238,445 within 5-mile radius

TENANT• DaVita, Inc. (NySE: DVA) is a Fortune 500 Company that is one

of the two largest kidney care companies in the entire country• DaVita operates 2,200 dialysis locations across the United

States and has a revenue of $13.77 Billion• Berkshire Hathaway (Warren Buffet’s company) owns almost

20% of current outstanding DaVita Dialysis stock

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Investment Overview

ExECUTIVE SUMMARy7200 Gateway Blvd E.El Paso, Texas 79915List Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,850,000Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,420 SFCAP Rate - Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.80 %year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1994Lot Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ±0.99 Acres (43,159 SF)

ANNUALIzED OPERATING DATAMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 2020 $10,486.40 $125,836.80 $13.36 6.80%

Option 1* - 2025 FMRV FMRV FMRV FMRV

Option 2* - 2030 FMRV FMRV FMRV FMRV

*Rent in options will be negotiated based off future Fair Market Rental Value (FMRV). Currently Fair Market Rent is estimated around $15/SF

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Financial Overview

TENANT SUMMARyTenant Trade Name DaVita Dialysis

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof and Structure Landlord Responsible

Original Lease Term 15 years

Lease Commencement Date 3/15/2015

Rent Commencement Date 3/15/2015

Lease Expiration Date 3/14/2020

Term Remaining on Lease 4 years

Increases Fair Market Rental Value increases in options

Options Two (2) Five (5) year Options

Tenant: Total Renal Care (Wholly owned subsidiary of DaVita Inc.)

Date Of Lease: November 16, 1994

Lease Commencement: March 15, 2015 (Current Amendment)

Lease Expiration: March 14, 2020

Rent Increases: Potential rent increase in options

Renewal Options: Two (2) Five (5) year Options

Annual Rent: $125,836.60

Real Estate Taxes: Tenant reimburses

Insurance: Tenant reimburses

Utilities: Tenant is responsible

Repairs and Maintenance:

Lessor shall maintain the roof, structural integrity, exterior walls and foundation of the Premises.

Lessee shall be responsible for the repair of all other portions of the Premises including plumbing, electrical, heating and air conditioning systems, all interior nonstructural items, glass breakage, as well as all repairs which are caused by or result from Lessee’s negligence or breach of this Lease.

Common Areas

Lessor agrees, throughout the term of this lease, to maintain the common areas in good repair and condition including, without limitation, the parking areas and driveway, entrances and exits thereto and all utility lines within the common areas serving the Premises.

Lessee shall pay its prorate share of the operation and maintenance expense of the Common Areas (100%) as part of the monthly rental payment

Right of First Refusal Lessor hereby grants to lessee a right of first refusal to purchase the entire center.

Lease Abstract

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Property Name DaVita

Property Type Public

Parent Company Trade Name DaVita Healthcare Partners Inc.

Ownership Public

Credit Rating BB

Rating Agency Standard & Poor’s

Revenue $13.78 B

Net Income $269.73 M

Stock Symbol DVA

Board NySE

No. of Locations ± 2,200

No. of Employees (All) 60,400

Headquartered Denver, CO

Web Site www.DaVitahealthcarepartners.com

year Founded 1994

DaVita HealthCare Partners gives life in the form of dialysis treatments to patients suffering from end-stage renal disease (ESRD, chronic kidney failure). Through its Kidney Care division, the firm is one of the US’ largest providers of dialysis, providing administrative services to more than 2,200 outpatient centers across the US; it serves some 180,000 patients. The company also offers home-based dialysis services, as well as inpatient dialysis in about 900 hospitals. It operates two clinical laboratories that specialize in routine testing of dialysis patients and serve the company’s network of clinics. Subsidiary HealthCare Partners (HCP) operates primary care clinics and physician practices in several states.

source: hoovers.com

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Company Overview

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THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DaVita DialysisProperty Address . . . . . . . . . . . . . . . . . . . . . . . . . 7200 Gateway Blvd E. El Paso, Texas 79915Assessor’s Parcel Number . . . . . . . . . . . . . . . . . . . . E131-999-0140-0100zoning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . R3

SITE DESCRIPTIONNumber of Stories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oneyear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1994Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,420 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ± 0.99 Acres ( 43,159 SF)Type of Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ground SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ± 85 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ± 9.02 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WoodExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . StuccoParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pitched

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Property Overview

PROPERTy DESCRIPTION

Gatew

ay B

lvd E

± 228,0

00 V

PD

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Bird’s Eye

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Tenant Map

PROPERTy DESCRIPTION

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Regional Map

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Population 1-Mile 3-Mile 5-Mile

2021 Projection 13,944 106,069 238,445

2016 Estimate 13,827 104,646 234,099

2010 Census 14,096 105,915 235,161

2000 Census 14,345 107,490 239,746

Growth 2016-2021 0.85% 1.36% 1.86%

Households

2021 Projection 6,005 39,761 83,742

2016 Estimate 5,869 38,616 80,996

2010 Census 5,790 37,652 78,402

2000 Census 5,627 35,975 75,301

Growth 2016-2021 2.30% 2.96% 3.39%

Growth 2010-2016 1.37% 2.56% 3.31%

Growth 2000-2010 2.90% 4.66% 4.12%

Income

$0 - $15,000 10.70% 19.04% 18.18%

$15,000 - $24,999 17.17% 17.00% 15.56%

$25,000 - $34,999 11.34% 12.40% 12.74%

$35,000 - $49,999 20.95% 16.54% 16.13%

$50,000 - $74,999 21.38% 16.99% 17.22%

$75,000 - $99,999 10.85% 8.98% 9.84%

$100,000 - $124,999 4.80% 4.43% 4.88%

$125,000 - $149,999 1.49% 2.19% 2.62%

$150,000 - $199,999 0.85% 1.56% 1.75%

$200,000 - $249,999 0.34% 0.45% 0.54%

$250,000 - $499,999 0.11% 0.35% 0.45%

$500,000+ 0.02% 0.08% 0.09%

2016 Est. Average Household Income $49,211 $47,218 $49,757

2016 Est. Median Household Income $42,733 $36,411 $38,273

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Demographics Report

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City Overview

EL PASO, TExASThere is plenty to see and do in the City of El Paso. Experience walking tours of Downtown to get a taste of history that spans 400 years, shopping, outdoor concerts at the Chamizal National Memorial, museums of every kind, the zoo, and nature hikes through four Texas State Parks. El Paso has been ranked the safest large city in the U.S. for four consecutive years and ranked in the top three since 1997.

El Paso has a diversified economy focused primarily within international trade, military, government civil service, oil and gas, health care, tourism and service sectors. The El Paso metro area had a GDP of $29 billion in 2011. Over the past 15 years the city has become a significant location for American-based call centers. El Paso has added a significant manufacturing sector with items and goods produced that include petroleum, metals, medical devices, plastics, machinery, defense-related goods and automotive parts. The city is the second busiest international crossing point in the U.S behind San Diego. Tourism is another major industry in El Paso, bringing in $1.5 billion-a-year and over 2.3 million visitors annually due to the city’s sunny weather, natural beauty, rich cultural history and many outdoor attractions.

TOURISM

There are many museums to visit, including the El Paso Museum of History, and the El Paso Holocaust Museum and Study Center. El Paso is a host for art and culture as well, there are a number of theaters to visit. There is the Abraham Chavez Theatre that welcomes patrons with a three-story-high glass-windowed entry and unique sombrero-shaped architecture, making it a distinct feature on El Paso’s southwestern landscape. The Plaza Theatre is a historic building and stands as one of the city’s most well-known landmarks. It shows various Broadway productions, musical concerts, and individual performers. While the art and culture draws some, the rock climbers who descend on El Paso have only one thing in mind: scaling the massive boulders of Hueco Tanks State Park. Those who prefer the ground can wander through the park’s interpretive center and see ancient Indian pictographs.

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com™

DaVita7200 Gateway Blvd E. El Paso, Texas 79915

OFFERING MEMORANDUM

Michael MorenoAssociate

License No. 01982943O 310.919.5838M 818.522.4497michael.moreno@matthews.com

Mark CohenBroker of Record

License No. 447509

Aron ClineVP & Sr. Director

License No. 01904371O 310.919.5816M 818.632.0233aron.cline@matthews.com