File Photograph DaVita Dialysis · LAREDO, TEXAS Laredo is located in south Texas along the Texas-Mexico border across the Rio Grande River from Nuevo Laredo, Mexico. The city of

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

For more information, please contact: In Association with:

Robert C. Sanner

Senior Managing Director, Principal

415-677-0439

[email protected] LIC #00869657

Rick Sanner

Senior Vice President

415-677-0429

[email protected] LIC #01792433

Bret Bunnett

Regional Managing Principal

Texas Licensee LIC #3128590

Cassidy Turley www.ctbtnnn.com

DaVita Dialysis TEXAS

Price: $2,420,000 — 6.40% Cap Rate

10% Rent Increases Every Five Years

Dialysis is Covered by Medicare for All Ages!

Lease Guaranteed by a Fortune 500, NYSE – Listed Company

Laredo, Texas — One of the Fastest Growing Areas in the U.S.

File Photograph

DaVita Dialysis Laredo, Texas

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0613:06

LOCATION 916 Houston Street at San Bernardo Avenue, Laredo, Texas. In downtown Laredo.

LOT SIZE Approximately 24,693+/– square feet

IMPROVEMENTS Existing building currently under extensive renovation, to be completed October

2013, a freestanding one-story 6,500+/– square foot DAVITA dialysis facility. The

renovations will include a new roof.

LEASE Leased to TOTAL RENAL CARE, INC., and guaranteed by its parent company,

DAVITA HEALTHCARE PARTNERS, INC., for 15 years from November 1, 2013

until October 31, 2028. The annual rent of $155,000 increases by 10% every five

years throughout the primary term. The lease is net with the tenant responsible for

taxes, insurance and maintenance. The landlord is responsible for roof and

structure. See “Tenant Reimbursement.” There are two 5-year renewal options at

95% of appraised FMV rent. If the tenant exercises its options after 15 years, the

guarantee mentioned above terminates at that point.

ANNUAL INCOME

* Initial rent figure is subject to change based on final cost calculation at completion

in October. Price will adjust accordingly based on the agreed cap rate.

PRICE $2,420,000 — 6.40% Cap Rate

RENT PER SQUARE FOOT $23.85 net per year — $1.99 net per month

FINANCING The property will be delivered free and clear of debt.

YEARS ANNUAL RENT RETURN

1 – 5 $155,000 * 6.40%

6 – 10 $170,500 7.05%

11 – 15 $187,550 7.75%

16 – 20 (Option 1) FMV TBD

21 – 25 (Option 2) FMV TBD



TENANT REIMBURSEMENT In general, as more fully described in the lease, certain capital expenditures are

reimbursed by the tenant “on an amortized basis.” For example, in the lease, a new

roof is deemed to have a life of 20 years. Suppose, some years from now, a new

roof is needed. That roof is deemed to have a life of 20 years, so the tenant would

reimburse 5% of that total roof cost per year throughout the duration of the lease.

[Note: This example is for illustration only. There will be a new roof, so it is not

expected that another new roof would be needed during the 15 year base term of the

lease].

In addition, as stated in the lease, the tenant will reimburse up to $1,000/year in roof

repairs.

ABOUT THE TENANT The tenant is a 100%-owned DaVita subsidiary, “Total Renal Care, Inc.” Financial

statements are not available for the tenant.

ABOUT THE GUARANTOR —

DAVITA HEALTHCARE

PARTNERS, INC.

DAVITA HEALTHCARE PARTNERS, INC. (“DAVITA”), a FORTUNE 500®

company, is a leading provider of kidney care in the United States, delivering dialysis

services and education to patients with chronic kidney disease and end stage renal

disease. It is listed on the NYSE: “DVA.” As of December 31, 2012, DaVita operated

or provided administrative services at 1,954 outpatient dialysis centers in the United

States serving approximately 153,000 patients. It was founded in 1994 and is

headquartered in Denver.

The company used to be known as “DaVita, Inc.” and changed its name in the fourth

quarter of 2012.

For the fiscal year ended December 31, 2012, revenues were $8.19 billion (an 21.6%

increase compared to fiscal year 2011) with a net income was $536 million (10%

increase) and stockholder’s equity of $3.76 billion.

According to a website, DaVita has about 27% of the national dialysis market.

There is one other national chain, Fresenius, which has about 32%. The rest of the

market is fragmented, served by hospitals and much smaller chains.

DaVita is rated “BB–” by Standard and Poor’s.

More information can be obtained at www.davita.com



ABOUT DIABETES/

KIDNEY DISEASE/

KIDNEY DIALYSIS

Unfortunately for Americans’ health, the tenant’s business is a big growth industry.

More than 133,000,000 Americans are considered overweight. Incidence of diabetes

is growing every year quite dramatically, partially due to obesity. The Federal

Government has announced that the incidence of diabetes may triple(!) by 2050 and

1/3 of adult Americans, in 2050, may have diabetes. Diabetes in turn leads to 44% of

the cases of kidney failure; it is the biggest cause. Kidney failure means (1) kidney

transplant, or (2) kidney dialysis, or (3) certain death. Kidney transplants are most

effective, but are reasonably rare due to scarcity of donor kidneys. Kidney dialysis is

the usual means of treatment. Patients need typically three treatments every week.

At 3 to 4 hours per treatment, these treatments are expensive.

There are five stages of chronic kidney disease (“CKD”), a progressive disease.

Stage 5 is the worst, full kidney failure. The name of this condition is “End- Stage

Renal Disease,” or ESRD. “End-Stage” means exactly that — it is 100% fatal, within

months. The usual treatment, dialysis, doesn’t “cure” anything, it just keeps people

alive and reasonably well functioning. A dialysis machine performs the same

function that the (failed) kidneys would otherwise have performed. The treatment

must be continued forever, until the patient dies from whatever cause.

As the DaVita website states, “When CKD has progressed to Stage 4, it’s time to

being preparing for dialysis and/or a kidney transplant. . . 400,000 people have

Stage 4 and 7,500,000 people are at Stage 3.” So, sadly, dialysis is a growth

industry.

In the U.S., in 1996, there were 234,000 patients on dialysis. In 2006, it was

355,000, a jump of 50%!!

Further, incidence of diabetes increases with age, with the 60+ population clearly

more at risk. So as the U.S. population gets older, this aging will accentuate the trend

of dialysis growth. Even with dialysis, someone with ESRD has a limited life

expectancy. With a transplant, it is longer, but transplants are reasonably rare due to

a shortage of donor kidneys.

SEE “MEDICARE COVERAGE.”



MEDICARE COVERAGE Most people are not aware that Medicare covers dialysis for ESRD, for eligible

persons of any age.

From www.medicare.gov:

“Medicare is a Health Insurance Program for people 65 or older, some disabled

people under 65, and people of all ages with End-Stage Renal Disease

(permanent kidney failure treated with dialysis or a transplant).”

According to a reputable website, the 2006 annual costs per patient to Medicare for

these three types of patients were:

A. $7,600+, people 65 and over

B. $6,200+, people on disability

C. $43,000+, ESRD patients

SITE INFORMATION The subject property is located at the signalized intersection of Houston Street and

San Bernardo Avenue, just west of Interstate 35. The site is in the downtown Laredo

CBD, and within immediate walking distance to county courts, the federal courthouse

and city hall.

Located 2.5 miles northeast from the site is Laredo Medical Center, a 326-bed, acute

care hospital that has provided care to Laredo and the surrounding communities

since 1894. The hospital offers a range of comprehensive health services including

inpatient, outpatient, medical, surgical, diagnostic and emergency care. The 650,000-

square-foot complex is located on a 50-acre campus that includes a Level III-

designated Trauma Center and two medical office buildings. It recently completed a

$20 million expansion.



LAREDO, TEXAS Laredo is located in south Texas along the Texas-Mexico border across the Rio

Grande River from Nuevo Laredo, Mexico. The city of Laredo was founded in 1755

when the area was still part of the Spanish colony called New Spain. In 1846, after

the Mexican-American War, the city became part of the new state of Texas.

Laredo, the principal port of entry into Mexico, is often called the “Gateway to

Mexico” and “the city under seven flags.” The city’s importance to international trade

has increased since the North American Free Trade Agreement (NAFTA) was

enacted in 1994.

Laredo is one of the oldest border crossing points along the U.S.-Mexico border and

is the nation’s busiest inland port.

The city of Laredo had a population of 236,091 as of 2010. The Laredo MSA

between 2000 and 2010 had a 29.6% population increase, making it one of the

fastest growing MSA’s in the U.S., which had a much lower overall growth of 9.6%.

Economy

Laredo is the largest inland port in the United States due to: the passage of the North

American Free Trade Agreement (NAFTA); US Interstate 35 and Mexican Federal

Highway 85; dozens of twin assembly plants, and the presence of many import/

export agencies to expedite trade. More than 47 percent of United States

international trade headed for Mexico and more than 36 percent of Mexican

international trade crosses through the Laredo port of entry.

Laredo has an immense economic presence and infrastructure as an inland port.

There are only five commercial ports in the U.S. which are larger, and all those are

water-based. 12,000 trucks and 1,200 rail cars cross the border here daily.

Additionally, it is the eighth largest air cargo hub in the U.S.

Eagle Ford Shale – Oil and Gas

The Eagle Ford Range is a new oil and gas exploration area that stretches from

Webb County (Laredo) to Dallas. This area is expected to make significant

contributions to domestic energy supplies in the next decades. This shale is found at

significant depths, but can be exploited with current state-of-the-art techniques.

More than 200 companies are active in the Eagle Ford 30-county area.



LAREDO, TEXAS

(CONTINUED)

Eagle Ford Shale – Oil and Gas (Continued)

According to a recently published economic impact study by the University of Texas

at San Antonio, the long-term regional implications of the boom are staggering.

“Under modest assumptions, by 2020 the Eagle Ford shale is expected to account

for close to $11.6 billion in gross state product, $21.6 billion in total economic output

impact and [directly or indirectly] support close to 67,971 full-time jobs in the area,”

according to the executive summary. See: http://eaglefordshale.com/news/ and

http://eagleford.org for more information about Eagle Ford Shale.

Laredo’s proximity to the Eagle Ford Range positions it well for offering labor and

other support services.

In January, 2012, the city put on a job fair, the “Eagle Ford Shale Job and Vendor

Fair,” and it is believed about 600 persons found jobs as a result. The mayor has

written that “Oil and gas companies – and their employees – are flocking to Laredo.”

Airport

Laredo is served by the Laredo International Airport (“LRD”). Non-stop flights are

available to Houston, Dallas, and Las Vegas. The airlines serving Laredo are

Allegiant, United-Continental and American. It is also possible to fly to San Antonio

and drive to Laredo, about a two hour drive.

Education

Laredo is home to Texas A&M International University (TAMIU) and a significant

campus of the University of Texas Health Science Center (UTHSC).

Texas A&M International University offers Bachelors and Masters Degrees. The

university’s campus is located in northeast Laredo along Loop 20. It is part of Texas

A&M, and thus part of the state university system. It has 7,331 students (Fall 2012).

The UTHSC campus is located in east Laredo near U.S. Highway 59 and the Laredo

Medical Center. This campus is an extension of the main UTHSC facilities in San

Antonio. The university offers advanced degrees in the medical and dental fields.

DEMOGRAPHICS DEMOGRAPHICS 3-MILES 5-MILES 7-MILES

Population (2012) 100,431 175,690 229,269

Average HH Income $38,508 $42,582 $47,798



*The above net income is an estimate and does not provide for all potential costs and

expenses (i.e., maintenance, repair, etc.) that may be required of the owner. Any

reserves set forth herein are merely estimates and not based on any experience,

physical inspection, or prior knowledge. All prospective purchasers are strongly

advised to make an independent investigation to determine their estimate of costs

and expenses prior to entering into an agreement to purchase.

NOTE The information set forth herein has been received by us from sources we believe to

be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

TEXAS

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness



MAP



MAP

Market ProfileDaVita Laredo TX916 Houston St, Laredo, TX, 78040 Latitude: 27.50714Ring: 3 mile radius Longitude: -99.50479

3 miles 5 miles 7 milesPopulation Summary

2000 Total Population 99,673 148,398 173,7162010 Total Population 98,161 172,432 223,8772012 Total Population 100,431 175,690 229,269

2012 Group Quarters 934 1,448 2,1062017 Total Population 107,986 187,759 247,266

2012-2017 Annual Rate 1.46% 1.34% 1.52%Household Summary

2000 Households 27,421 39,415 46,0742000 Average Household Size 3.57 3.69 3.70



2017 Households 31,005 50,925 67,2172017 Average Household Size 3.45 3.66 3.652012-2017 Annual Rate 1.58% 1.47% 1.65%

2010 Families 22,199 38,741 50,7392010 Average Family Size 3.95 4.07 4.04

2012 Families 22,384 39,006 51,3682012 Average Family Size 3.97 4.09 4.05

2017 Families 24,353 42,138 56,0312017 Average Family Size 3.96 4.06 4.032012-2017 Annual Rate 1.70% 1.56% 1.75%

Housing Unit Summary2000 Housing Units 29,694 42,405 49,484

Owner Occupied Housing Units 49.4% 56.3% 59.5%Renter Occupied Housing Units 43.0% 36.6% 33.6%Vacant Housing Units 7.7% 7.1% 6.9%

2010 Housing Units 30,937 50,617 65,575Owner Occupied Housing Units 44.0% 54.2% 58.0%Renter Occupied Housing Units 46.9% 37.9% 34.5%Vacant Housing Units 9.2% 7.9% 7.5%



Median Household Income2012 $26,299 $29,433 $34,5822017 $29,594 $34,040 $40,276

Median Home Value2012 $107,827 $119,770 $136,1422017 $126,528 $137,081 $154,853

Per Capita Income2012 $11,310 $11,724 $13,2152017 $12,735 $13,188 $14,808

Median Age2010 29.4 27.7 27.82012 29.7 28.1 28.12017 30.5 28.7 28.7

Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households.Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received byall persons aged 15 years and over divided by the total population.

June 06, 2013

Made with Esri Business Analyst©2013 Esri www.esri.com/ba 800-447-9778

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.

http://www.esri.com/ba


3 miles 5 miles 7 miles2012 Households by Income

Household Income Base 28,665 47,345 61,942<$15,000 29.0% 24.6% 21.4%$15,000 - $24,999 18.8% 18.4% 16.2%$25,000 - $34,999 12.7% 13.6% 12.8%$35,000 - $49,999 14.9% 15.0% 15.0%$50,000 - $74,999 12.8% 14.3% 16.3%$75,000 - $99,999 5.7% 6.7% 8.5%$100,000 - $149,999 4.3% 5.1% 6.8%$150,000 - $199,999 1.2% 1.5% 2.0%$200,000+ 0.7% 0.9% 1.0%

Average Household Income $38,508 $42,582 $47,7982017 Households by Income

Household Income Base 31,005 50,924 67,216<$15,000 28.7% 24.3% 20.9%$15,000 - $24,999 15.5% 15.0% 13.0%$25,000 - $34,999 10.9% 11.6% 10.6%$35,000 - $49,999 13.3% 13.2% 13.0%$50,000 - $74,999 16.4% 18.1% 20.3%$75,000 - $99,999 7.7% 8.9% 11.0%$100,000 - $149,999 5.2% 6.1% 7.8%$150,000 - $199,999 1.5% 1.8% 2.3%$200,000+ 0.8% 1.1% 1.2%

Average Household Income $43,279 $47,776 $53,4172012 Owner Occupied Housing Units by Value

Total 13,458 27,252 38,083<$50,000 8.3% 9.3% 7.5%$50,000 - $99,999 37.2% 29.1% 22.9%$100,000 - $149,999 28.7% 29.4% 27.1%$150,000 - $199,999 14.4% 16.4% 18.6%$200,000 - $249,999 5.8% 7.2% 10.2%$250,000 - $299,999 2.8% 3.5% 5.2%$300,000 - $399,999 1.6% 2.6% 4.4%$400,000 - $499,999 0.8% 1.2% 1.8%$500,000 - $749,999 0.3% 1.0% 1.5%$750,000 - $999,999 0.1% 0.3% 0.5%$1,000,000 + 0.0% 0.1% 0.2%

Average Home Value $123,379 $140,249 $163,0912017 Owner Occupied Housing Units by Value

Total 14,925 29,829 42,071<$50,000 5.4% 6.0% 4.9%$50,000 - $99,999 29.6% 23.1% 18.0%$100,000 - $149,999 28.3% 28.2% 24.9%$150,000 - $199,999 20.0% 21.7% 23.1%$200,000 - $249,999 8.9% 10.5% 13.7%$250,000 - $299,999 4.1% 4.5% 6.3%$300,000 - $399,999 2.2% 3.1% 4.9%$400,000 - $499,999 0.9% 1.2% 1.6%$500,000 - $749,999 0.4% 1.2% 1.8%$750,000 - $999,999 0.1% 0.4% 0.7%$1,000,000 + 0.0% 0.1% 0.2%

Average Home Value $140,677 $156,856 $178,441

Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents,pensions, SSI and welfare payments, child support, and alimony.

June 06, 2013





3 miles 5 miles 7 miles2010 Population by Race/Ethnicity

Total 98,162 172,431 223,878White Alone 87.3% 87.5% 87.7%Black Alone 0.4% 0.4% 0.4%American Indian Alone 0.4% 0.4% 0.4%Asian Alone 0.4% 0.4% 0.6%Pacific Islander Alone 0.0% 0.0% 0.0%Some Other Race Alone 9.7% 9.8% 9.3%Two or More Races 1.8% 1.6% 1.5%

Hispanic Origin 97.1% 96.8% 95.9%Diversity Index 28.0 28.3 29.1

2012 Population by Race/EthnicityTotal 100,430 175,690 229,269

White Alone 87.1% 87.2% 87.4%Black Alone 0.5% 0.5% 0.6%American Indian Alone 0.5% 0.5% 0.5%Asian Alone 0.4% 0.4% 0.6%Pacific Islander Alone 0.0% 0.0% 0.0%Some Other Race Alone 9.8% 9.8% 9.4%Two or More Races 1.8% 1.6% 1.5%


2017 Population by Race/EthnicityTotal 107,985 187,759 247,266

White Alone 87.1% 87.1% 87.2%Black Alone 0.8% 0.9% 1.0%American Indian Alone 0.6% 0.6% 0.6%Asian Alone 0.4% 0.5% 0.7%Pacific Islander Alone 0.0% 0.0% 0.0%Some Other Race Alone 9.4% 9.5% 9.0%Two or More Races 1.7% 1.5% 1.5%


2010 Population by Relationship and Household TypeTotal 98,161 172,432 223,877

In Households 99.0% 99.2% 99.1%In Family Households 91.9% 93.7% 93.6%

Householder 22.7% 22.4% 22.7%Spouse 13.4% 14.3% 15.2%Child 44.4% 46.0% 45.4%Other relative 8.9% 8.6% 8.2%Nonrelative 2.5% 2.3% 2.2%

In Nonfamily Households 7.2% 5.5% 5.4%In Group Quarters 1.0% 0.8% 0.9%

Institutionalized Population 0.3% 0.3% 0.3%Noninstitutionalized Population 0.7% 0.6% 0.7%

Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from differentrace/ethnic groups.

June 06, 2013




Documents

File Photograph DaVita Dialysis · LAREDO, TEXAS Laredo is located in south Texas along the Texas-Mexico border across the Rio Grande River from Nuevo Laredo, Mexico. The city of