Neighbors Emergency Center1801 W. Loop 281 | Longview, Texas 75604

Offering Memorandum

Actual Location

Confidentiality and Restricted Use Agreement

Stan Johnson Company10333 Richmond Avenue | Suite 740 Houston, Texas 77042 P: +1 832.476.3440

stanjohnsonco.com

Jim Gibson Regional Directorjgibson@stanjohnsonco.com TX License # 392926

Todd Moore Associate Director tmoore@stanjohnsonco.com

Marc Peeler Associatempeeler@stanjohnsonco.com

Marshall Thompson Associatemthompson@stanjohnsonco.com

Jaime Patteson Research Analystjpatteson@stanjohnsonco.com

Jason Marshall Analystjmarshall@stanjohnsonco.com

Offered Exclusively byThis Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.

Executive Summary

Property Overview

Tenant: Neighbors Emergency Center

Ownership: Fee Simple

Address: 1801 W. Loop 281

City, State: Longview, Texas

RBA: 8,066 SF

Year Built: 2016

Lease Type: Absolute NNN

Pricing Overview

Purchase Price: Call Broker for Details

Cap Rate: ---

NOI: $533,459

Tenant Overview

Entity Type: Private

Corporate: Houston, Texas

Current Locations: 26

Under Construction:

13

Actual Location

Offering Memorandum • Neighbors Emergency Center 4

Investment Highlights

Purchase Price: Call Broker for Details

UseNeighbors Emergency Center offers the full services of a 24-hour standard emergency

department, with an in-house physician and registered nurses

Recent Construction Construction at the location was completed in summer 2016

Long Term LeaseThe Subject Property is operating under a twelve (12) year primary lease term

Absolute NNN LeaseNo landlord responsibilities

Annual Rent Increases Annual rent increases of two (2) percent

Lease OptionsThe Subject Property features three (3), five (5) year options with two (2) percent annual

increases

Tremendous Visibility and Diverse Tenant Makeup The Subject Property features excellent visibility along W. Loop 281 (20,706 VPD). The Subject Property is surrounded by major tenants such as Walmart, Walgreens, CVS Pharmacy, Super 1

Foods and many more

No State Income Tax

The OfferingStan Johnson Company is pleased to offer for sale to qualified investors a medical property 100% leased to Neighbors Emergency Center (NEC 24) located in Longview, Texas.

Neighbors Emergency Center (NEC 24) is operating under a twelve (12) year base lease term, with two (2) percent annual rent increases, and three (3), five (5) year options to extend, with two (2) percent annual rent increases. The Subject Property contains +/- 8,066 SF and was recently completed in the summer of 2016.

Neighbors Emergency Center features excellent visibility along W. Loop 281 (20,706 VPD).The Subject Property is surrounded by major tenants such as Walmart, Walgreens, CVS Pharmacy, Super 1 Foods and many more.

**This property can be purchased as a part of a portfolio featuring up to two other NEC 24 locations in San Angelo, TX and Wichita Falls, TX. Call broker for details.

Offering Memorandum • Neighbors Emergency Center 5

Lease Abstract1801 W. Loop 281, Longview, Texas

Price: ---

Cap Rate: ---

Tenant: NEC Texas City Emergency Center, LP

Guarantor: Neighbors Health System, Inc.

Building Size (SF): 8,066 SF

Lot Size (Acres): 0.929 Acres

Year Built: 2016

Lease Term: Twelve (12) Years

Lease Term Remaining: Eleven (11) Years

Rent Commencement: July 2, 2016

Annual Rent: $533,459

Rent Increases: Two Percent Annually

Renewal Options: Three (3), Five (5) Year Options

Option Increases: Two Percent Annually

Lease Type: NNN

Landlord Responsibilities: None

Uses: +/- 8,066 SF facility offers the full services of a standard emergency department, including computed tomographies (CT scan), bedside emergency ultrasounds, radiographs (x-rays), and full service clinical laboratories. In addition to their in-house physician, the staff includes registered nurses, radiology technicians, clinical technicians, and administrative assistants. Insurance accepted - Aetna, Blue Cross/Blue Shield, Cigna, Humana, United Healthcare, etc.

Rent ScheduleLease Year Annual Rent RPSF

Year 1 $522,999 $64.84

Year 2 $533,459 $66.14

Year 3 $544,128 $67.46

Year 4 $555,011 $68.81

Year 5 $566,111 $70.18

Year 6 $577,433 $71.59

Year 7 $588,982 $73.02

Year 8 $600,761 $74.48

Year 9 $612,777 $75.97

Year 10 $625,032 $77.49

Year 11 $637,533 $79.04

Year 12 $650,284 $80.62

Option 1

Year 13 $663,289 $82.23

Year 14 $676,555 $83.88

Year 15 $690,086 $85.56

Year 16 $703,888 $87.27

Year 17 $717,966 $89.01

Option 2

Year 18 $732,325 $90.79

Year 19 $746,971 $92.61

Year 20 $761,911 $94.46

Year 21 $777,149 $96.35

Year 22 $792,692 $98.28

Option 3

Year 23 $808,546 $100.24

Year 24 $824,717 $102.25

Year 25 $841,211 $104.29

Year 26 $858,036 $106.38

Year 27 $875,196 $108.50

Actual Exterior Photos and Representative Interior Photos

Tenant OverviewCORPORATE PROFILE

Neighbors Emergency Centers are different from a standard 24 Hour Emergency Room. They have redefined the emergency room experience with private treatment rooms equipped with HD TVs, modern décor, a comfortable waiting area, peaceful pediatric treatment rooms and more. They want your emergency room experience to be as stress-free as possible.

Patients will receive high quality medical treatment at a moment’s notice. Unlike patient experiences in a conventional emergency room, they guarantee little or no wait time before a board certified emergency physician is available.

They are dedicated to providing elite care that always meets the patients’ medical needs. For convenient, around-the-clock emergency care from physicians you can trust, choose the 24 Hour Emergency Room.

SERVICES

Neighbors Emergency Center is here to offer services for any emergency care center necessary – any time of day, any day of the week. They know the last thing patients need is a long line and a cramped waiting area, so they make the experience in the medical emergency centers as pleasant as possible with short wait times and comfortable waiting rooms. Unlike standard medical emergency care centers they make it easy for you to get the care necessary.

Neighborhood Emergency Centers provide the medical emergency care patients can turn to for ANY adult or pediatric medical situation.

• Emergency Care Center for adults and children

• Trauma/injury care

• Cardiology

• Imaging and laboratory service

• Other services

• Physicians with the credentials

COLORADORHODE ISLAND

TEXASLEGEND

Currently Open

Under Construction

Subject Property

Neighbors Emergency Center LocationsCURRENTLY OPEN

CITY, STATE

Amarillo, TX Baytown, TX Bellaire, TX Beaumont, TX Brownsville, TX Copperfield, TX Crosby, TX El Paso, TX

Harlingen, TX Kingwood, TX Lakeline, TX Longview, TX McAllen, TX Midland, TX Mueller, TX Odessa, TX

Orange, TX Pasadena, TX Pearland, TX Porter, TX Port Arthur, TX San Angelo, TX Texas City, TX Texarkana, TX

Tyler, TX Wichita Falls, TX

UNDER CONSTRUCTION

CITY, STATE

Aurora, CO Greeley, CO Lafayette, CO Pueblo, CO

West Warick, RI Amarillo, TX College Station, TX Kerrville, TX

Lake Jackson, TX Lubbock, TX Lufkin, TX Paris, TX

Victoria, TX

Location Overview

Longview is a city in Gregg and Harrison counties in the U.S. state of Texas. In the 2010 Census, the population was 80,455. Most of the city is

located in Gregg County, of which it is the county seat; a small part extends into the western part of neighboring Harrison County. It is located

in East Texas, where Interstate 20 and U.S. Highways 80 and 259 converge just north of the Sabine River. Longview is the principal city of the

Longview Metropolitan Statistical Area, comprising Gregg, Upshur, and Rusk counties (population 217,481). Longview is considered a major hub

city for East Texas, as is the nearby city of Tyler. In 2014, Forbes magazine ranked Longview as the sixth fastest-growing small city in the United

States.

The economy in Longview is healthy, and has been growing, and home prices continue to rise. Some major sectors of the Longview economy

include the East Texas Oil Field, services, technology, such as Exponential Networks, and manufacturing. The Longview Metropolitan Statistical Area is a metropolitan area in Northeast Texas that covers three counties - Gregg, Rusk, and Upshur. As of the 2000 census, the MSA had a

population of 194,042 (though a July 1, 2009 estimate placed the population at 206,874).

PINE TREE JR HIGH SCHOOL Enrollment: 674

PINE TREE HIGH SCHOOL Enrollment: 1,081

STAFFORD FITNESS CENTER/CLUB

W. L

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P 28

1 (20

,706

VPD)

GILMER RD (17,825 VPD)

Offering Memorandum • Neighbors Emergency Center 11

Demographics

1801 W Loop 281, Longview, Texas, 75604 0 - 1 mile 0 - 3 miles 0 - 5 miles

Population

2016 Population 6,979 45,798 85,209

2021 Population 7,220 47,201 87,937

2010-2016 Annual Rate 0.69% 0.75% 0.70%

2016-2021 Annual Rate 0.68% 0.61% 0.63%

Households

2016 Total Households 2,857 18,751 32,509

2021 Total Households 2,948 19,295 33,555

2010-2016 Annual Rate 0.62% 0.70% 0.70%

2016-2020 Annual Rate 0.63% 0.57% 0.64%

Median Household Income

2016 Median Household Income $68,092 $51,181 $47,816

Average Household Income

2016 Average Household Income $95,002 $68,834 $65,261

going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company10333 Richmond Avenue | Suite 740Houston, Texas 77042P: +1 832.476.3440 | F: +1 832.476.3449

stanjohnsonco.com

Jim GibsonRegional Directorjgibson@stanjohnsonco.com TX License #392926

Todd MooreAssociate Directortmoore@stanjohnsonco.com

Marc PeelerAssociatempeeler@stanjohnsonco.com

Marshall Thompson Associatemthompson@stanjohnsonco.com

Jaime PattesonResearch Analystjpatteson@stanjohnsonco.com

Jason MarshallAnalystjmarshall@stanjohnsonco.com

Offered Exclusively by

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efore working with a real estate broker, you shouldBknow that the duties of a broker depend on whomthe broker represents. If you are a prospectiveseller or landlord (owner) or a prospective buyer or

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Buyer, Seller, Landlord or Tenant Date

01A TREC No. OP-K