J9222CPresented by:Michael A. Noto, Health Care REIT, Inc. - Moderator

Phillip J. Valdivia, Catholic Healthcare West Real Estate Services

Jeffrey Green, Jeff Green Partners

Frank Mihalopoulos, Corinth Properties & Anthony Ruggeri, ATR & Associates

Redeveloping Retail Space for Healthcare Use

Why Retail Space?

Strategic Financial Operational• Physician Alignment

• Time to Market

• Acute vs. Ambulatory Care

• Construction Costs

• Rental Rates

• Parking

• Access

• Visibility

From Burgers…

…to Band-Aids

Site Specifics

7,000 square feet – Ideal for 5 physician clinic with Urgent Care

Stand-Alone Building

Parking at 7:1,000

Excellent visibility and existing signage rights

Community that values slow growth and controlled development

From the Box Office …

…to the Doctor’s Office

Site Specifics

Developer Repositioned Asset

25,000 sq.ft open space

Dedicated parking garage

CBD Location

Why Retail Locations for Medical Uses… and Why Now?Why Retail?Convenience and access for healthcare

consumers.Gives medical providers a billboard-like

branding opportunity. Obama-care to increase need for primary

care providers.Lower occupancy costs.

Why Retail Locations for Medical Uses… and Why Now? (continued)Why Now? Retail developers are scrambling to fill

increasing vacancies. Shopping center rental rates are much

more affordable than several years ago. Some primary end-cap locations are

coming available. (Blockbuster and Hollywood video closures, as an example)

A Few Challenges… Retail developers and leasing agents

speak one language and the medical community speaks another.

Medical tenants often request prime visibility in centers, while landlords may prefer to place them off the beaten path.

Tenant-improvement costs are often higher for medical tenants than retailers.

Not all medical businesses are desirable to the retail developer.

J9222C

ONE HUNDRED OAKS MALLREDEVELOPMENT

Developers

Frank Mihalopoulos & Anthony RuggeriDallas, Texas

One Hundred OaksFact Sheet

• Location: Nashville, Tennessee• Original Mall built in 1964 & 1967• Remodeled in 1992/93 and 2009• 880,000 square feet• 54 acres• 3,400 parking spaces

The OpportunityOne Hundred Oaks: 54 well located acres450,000 square feet of space requiring only

renovationOn-site parkingExcellent visibility, recognition and

interstate accessLower capital expense

The Challenge• Developing a mixed use project with major

medical from a retail shopping center• Parking• Convincing retailers, that medical would be

complimentary to their business• Overcoming retail lease regulations• During construction, maintain traffic flow for

the retail tenants• Cost of finish-out for medical space vs. retail

space

Developers Brought

CuriosityVisionPurchase of One Hundred OaksDevelopment and Retail ExpertiseTeam to Deliver Project