O F F E R I N G M E M O R A N D U M

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E XC LU S I V E LY L I S T E D BY:

Patrick Hammond Broker of Record:

Senior Associate Peter Barr | Block & Lot Real Estate, LLC

248.419.3808 381 E. Main Street, Suite 200

phammond@fortisnetlease.com Lexington, KY 40507

Kentucky License #: 65116

DISCLOSURE :

All materials and information received or derived from Fortis Net Lease (hereinafter collectively referred to as “FNL”), its directors, officers, agents, advisors, af-

filiates and/or any third party sources are provided without representation or warranty by FNL its directors, officers, agents, advisors, or affiliates as to com-

pleteness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, finan-

cial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither FNL its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the

any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for

review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. FNL will

not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE:

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investiga-

tions including through appropriate third party independent professionals selected by such party.

All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate inde-

pendent professionals. FNL makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assump-

tions. FNL does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance,

including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that

may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable con-

tractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the proper-

ty.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax

attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the

property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other

consultants and governmental agencies. All properties and services are marketed by FNL in compliance with all applicable fair housing and equal opportuni-

ty laws.

Fortis Agents Cooperate Click Here To Meet

The Team

INVESTMENT HIGHLIGHTS

• NN Lease Requires Minimal Landlord Responsibilities

• 5 Years Remaining on Primary Term of 10 Year Lease

• Lease Features 3% Annual Rental Increases

• Two (2), Five (5) Year Options to Renew the Lease

• Lease is Corporately Guaranteed

• Fresenius Has Been at This Site for 15 Years | Signed 10 Year Re-

newal in 2012

LOCATION HIGHLIGHTS

• Average Daily Traffic Exceeds 31,400 Vehicles Per Day

• 5 Miles Population within 5 Mile Radius Exceeds 216,100 People

• Average Household Income Exceeds $62,000 within 5 Miles

• Property is 2.5 Miles form the University of Kentucky

• Tenants in the Immediate Area include O’Reilly, McDonald’s, KFC,

Family Dollar, Sav A Lot, Tire Discounters, Speedway, Thornton's as

well as a Smucker’s Plant

SUBJECT PROPERTY PHOTO

INVESTMENT SUMMARY

List Price: $2,500,000

Current NOI: $176,505

Initial Cap Rate: 7.06%

Average NOI: $187,418(Remaining 5 Years)

Average Cap Rate: 7.50% (Remaining 5 Years)

Price Per Sq. Ft.: $189.35

Building Size: 12,429 SF

Year Built: 1972

Acreage: 0.48 Acres

Google Aerial Map: Click HERE

Google Street View: Click HERE

LEASE SUMMARY

Lease Type: NN

Taxes/CAM/Insurance: Tenant Responsibility

Structure/Parking/Roof: Landlord Responsibility

HVAC: LL Resp. for Repairs over $3K

Original Lease Term: 10 Year

Rent Commencement: June 1, 2012

Rent Expiration: May 31, 2022

Term Remaining: 5 Years

Rent Increases: 3% Annually

Options to Extend: Two (2), Five (5) Year Options

Guarantee: Renal Care Group

Tenant Website: www.FMCNA.com

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

TENANT OVERVIEW

Fresenius Medical Care North America is the premier health care company focused on delivering the highest quality care to people with renal

and other chronic conditions. Through our industry-leading network of more than 2,200 dialysis facilities, outpatient cardiac and vascular labs,

and urgent care centers, as well as the country’s largest practice of hospitalist and post-acute providers, Fresenius Medical Care provides coordi-

nated health care services at pivotal care points for hundreds of thousands of chronically ill customers throughout the continent. As the world’s

only vertically integrated renal company, we also offer specialty pharmacy and laboratory services, as well as manufacturing and distributing the

most comprehensive line of dialysis equipment, disposable products and renal pharmaceuticals.

Our integrated approach helps to not only improve patients' health outcomes, but also reduce the total cost of care.

Around the world, we care for more than 290,000 renal patients in our global network of more than 3,400 dialysis clinics. At the same time, we op-

erate more than 40 production sites on all continents, to provide dialysis products such as dialysis machines, dialyzers and related disposables.

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

Lexington, Kentucky

Lexington, consolidated with Fayette County, is the second-largest city in Kentucky and the 61st largest in the United States. Known as the "Horse Capi-

tal of the World", it is the heart of the state's Bluegrass region. With a mayor-alderman form of government, it is one of two cities in Kentucky designated

by the state as first-class; the other is the state's largest city of Louisville. In the 2016 U.S. Census Estimate, the city's population was 318,449, anchoring

a metropolitan area of 506,751 people and a combined statistical area of 723,849 people.

Lexington ranks tenth among US cities in college education rate, with 39.5% of residents having at least a bachelor's degree.[5] It is the location of

the Kentucky Horse Park, The Red Mile and Keeneland race courses, Rupp Arena, the world's largest basketball-specific arena, Transylvania University,

the University of Kentucky, and Bluegrass Community & Technical College.

Lexington has one of the nation's most stable economies. Lexington describes itself as having "a fortified economy, strong in manufacturing, technology

and entrepreneurial support, benefiting from a diverse, balanced business base". The Lexington Metro Area had an unemployment rate of 3.7% in Au-

gust 2015, lower than many cities of similar size. In 2011 Lexington was ranked as the 4th-best city for "Businesses and Careers" by Forbes magazine, the

5th-best city for Young Professionals in 2008, and 6th-Best "Value Cities" in 2011 by Kiplinger.

The city is home to several large corporations. Sizable employment is generated by four Fortune 500 companies: Xerox (who acquired Affiliated Com-

puter Services), Lexmark International, Lockheed-Martin, and IBM, employing 3,000, 2,800, 1,705, and 552, respectively. United Parcel Service, Trane,

and Amazon.com, Inc. have large operations in the city, and Toyota Motor Manufacturing Kentucky is within the Lexington CSA, located in adjoin-

ing Georgetown. A Jif peanut butter plant located here produces more peanut butter than any other factory in the world.

Notable corporate headquarters include: Lexmark International, a manufacturer of printers and enterprise software; Link-Belt Construction Equipment,

a designer and manufacturer of telescopic and lattice boom cranes; Big Ass Solutions, a manufacturer of large ceiling fans and lighting fixtures for in-

dustrial, commercial, agricultural, and residential use; A&W Restaurants, a restaurant chain known for root beer and root beer floats; Fazoli's, a fast

food Italian-style chain that has expanded to more than twenty states; Tempur Sealy International, a manufacturer of mattresses; Florida Tile, a manu-

facturer of porcelain and ceramic tile; and the Forcht Group of Kentucky, a holding company that employs more than 2,100 people across Kentucky.

Forcht Group operates several businesses in Lexington, including First Corbin Bancorp, Kentucky National Insurance Company, My Favorite Things, BSC,

a bank data services company; and First Lab, among others.

The city's largest employer, the University of Kentucky, as of 2012, employs about 14,000. That number is expected to shrink due to reduced funding from

the state. The university ranks as the 9th-largest economic company in the state of Kentucky, with an annual budget of $1.4 billion, and the College of

Medicine within the university is the 21st-largest company in the state.

Other sizable employers include the Lexington-Fayette County government and other hospital facilities. The Fayette County Public Schools employ

5,374, and the Lexington-Fayette Urban County Government employs 2,699. Central Baptist Hospital, Saint Joseph Hospital, Saint Joseph East, and the

Veterans Administration Hospital employ 7,000 persons in total.

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

The University of Kentucky

The University of Kentucky (UK) is a public co-educational university in Lexington, Kentucky. Founded in 1865 by Isaiah Giles as the Agricultural

and Mechanical College of Kentucky, the university is one of the state's two land-grant universities (the other being Kentucky State University),

the largest college or university in the state, with 29,385 students as of Fall 2013, and the highest ranked research university in the state according

to U.S. News and World Report. The institution comprises 16 colleges, a graduate school, 93 undergraduate programs, 99 master programs, 66

doctoral programs, and four professional programs. The University of Kentucky has fifteen libraries on campus. The largest is William T. Young Li-

brary, a federal depository, hosting subjects related to social sciences, humanities, and life sciences collections. In recent years, the university has

focused expenditures increasingly on research, following a compact formed by the Kentucky General Assembly in 1997. The directive mandat-

ed that the university become a Top 20 public research institution, in terms of an overall ranking to be determined by the university itself, by the

year 2020.

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

31,400+

Cars Per Day

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

216,000 People Live

Within 5 Miles

Average Household

Income

Exceeds $62,000

Within 5 Miles

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

F r e s e n i u s M e d i c a l C a r e | F O R T I S N E T LE A S E

Radius 1 Mile 3 Mile 5 Mile

Population:

2022 Projection 13,587 105,095 225,869

2017 Estimate 13,015 100,740 216,445

2010 Census 12,091 93,841 201,472

Growth 2017-2022 4.39% 4.32% 4.35%

Growth 2010-2017 7.64% 7.35% 7.43%

2017 Population Hispanic Origin 868 7,268 17,817

2017 Population by Race:

White 9,693 73,142 164,479

Black 2,754 21,204 38,389

Am. Indian & Alaskan 78 441 851

Asian 138 3,494 6,946

Hawaiian & Pacific Island 9 99 197

Other 342 2,360 5,584

U.S. Armed Forces: 0 42 97

Households:

2022 Projection 6,011 44,903 97,993

2017 Estimate 5,758 42,961 93,764

2010 Census 5,383 39,891 87,152

Growth 2017 - 2022 4.39% 4.52% 4.51%

Growth 2010 - 2017 6.97% 7.70% 7.59%

Owner Occupied 3,012 19,355 46,354

Renter Occupied 2,746 23,606 47,410

2017 Avg Household Income $51,963 $59,842 $62,542

P R E S E N T E D BY:

Patrick Hammond Broker of Record:

Senior Associate Peter Barr | Block & Lot Real Estate, LLC

248.419.3808 381 E. Main Street, Suite 200, Lexington, KY 40507

phammond@fortisnetlease.com Kentucky License #: 65116 [ www.fortisnetlease.com ]