Triple Net Leased Office Property for Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

Brown Mackie College (NASDAQ: EDMC)3454 Douglas RoadSouth Bend, Indiana



TABLE OF CONTENTS

TABLE OF CONTENTS

1) Confidentiality&Disclaimer

2) ExecutiveSummary

3) InvestmentHighlights

4) PropertyOverview

5) Aerial

6) SitePlan

8) Property&BuildingDescription

9) FloorPlans

10) ExteriorPhotos

11) InteriorPhotos

12) TenantProfile

13) Maps

14) LocationOverview

15) Demos

16) ContactInformation



The informationcontained in the followingOfferingMemorandum isproprietaryandstrictly confidential. It isintendedtobereviewedonlybythepartyreceivingitfromTheBoulderGroupandshouldnotbemadeavailableto any other person or entity without thewritten consent of The Boulder Group. This has been prepared toprovidesummary,unverifiedinformationtoprospectivepurchasers,andtoestablishonlyapreliminarylevelofinterestinthesubjectproperty.Theinformationcontainedhereinisnotasubstituteforathoroughduediligenceinvestigation.TheBoulderGrouphasnotmadeanyinvestigation,andmakesnowarrantyorrepresentation,withrespecttothe incomeorexpensesforthesubjectproperty, thefutureprojectedfinancialperformanceoftheproperty,thesizeandsquarefootageofthepropertyandimprovements,thepresenceorabsenceofcontaminatingsubstances,PCB’sorasbestos,thecompliancewithStateandFederalregulations,thephysicalconditionoftheimprovementsthereon,orthefinancialconditionorbusinessprospectsofanytenant,oranytenant’splansorintentionstocontinueitsoccupancyofthesubjectproperty.Theinformationcontainedinthishasbeenobtainedfromsourceswebelievetobereliable;however,TheBoulderGrouphasnotverified,andwillnotverify,anyoftheinformationcontainedherein,norhasTheBoulderGroupconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompletenessoftheinformationprovided.Allpotentialbuyersmusttakeappropriatemeasurestoverifyalloftheinformationsetforthherein.

CONFIDENTIALITY & DISCLAIMER

CONFIDENTIALITY & DISCLAIMER



TheBoulderGroupispleasedtoexclusivelymarketforsaleasingletenantnetleased,ClassAoffice/educationbuildingtenantedbyBrownMackieCollege(NASDAQ:EDMC)locatedinSouthBend,Indiana.The47,537squarefootBrownMackieCollegeofficebuildingwasbuilt in2009ona6.08acreparcelalongaprimaryeast-westthoroughfareinSouthBend.BrownMackieCollegeisownedbyEducationManagementCorporation.EducationManagementCorporationisapubliclytradedcompanyontheNASDAQ(EDMC)withamarketcapitalizationinexcessof$600million.GoldmanSachs owns43%of EDMC. The lease is fully guaranteedby EducationManagementCorporationwith over five years of lease termremainingintheprimaryterm.

TheBrownMackieCollegepropertyisideallylocatedintheheartoftheSouthBendcombinedstatisticalareathathasatotalpopulationinexcessof720,000residents.Thereareover230,000people livingwithinsevenmilesof thepropertyearningaverageannualhousehold incomesofapproximately$60,000.TheUniversityofNotreDameislocatedlessthantwomilestothewestofthesubjectproperty.NotreDameisoneofthecountry’spremiereuniversitieswithapproximately12,000students.ThepropertyislocatedjustoffofthesignalizedintersectionofWestDouglasRoadandGrapeRoad.GrapeRoadisthedominantretailcorridorinthetradeareaandhometomanyofthenation’slargestretailersaswellasUniversityParkMall.UniversityParkMallisan820,000squarefootmalllocatedlessthanamilenorthofBrownMackieCollegeandisownedbySimonPropertyGroup.ThemallisanchoredbyMacy’s,JCPenney,Sears,andBarnes&Noble.OthernotableretailersintheimmediatevicinityincludeSuperTarget,WalmartSupercenter,Sam’sClub,Meijer,WholeFood’s,Kohl’s,Lowe’s,andHomeDepot.

TheBrownMackieCollegepropertywillbenefitfromtheextensionandreroutingofDouglasRoadthatrecentlywascompleted.DouglasRoadnowbeginsattheIndianaTollRoadfromthewestandrunsallthewaythroughtown.Thisimprovementwillallowtrafficexitingthetollroadtohavedirectaccesstothepropertythatisthreemilestotheeastoftheexit.

TheBrownMackieCollegeinSouthBendofferscoursesinthefieldsofnursing,healthcare&wellness,business&technology,andveterinarytechnology.TheBrownMackieCollegeiswellpositionedforfuturesuccessintheSouthBendmarketduetothestrengthandprominenceofthelocalhealthcareindustry.HealthcareandeducationarethetwodrivingforcesandleadingemployersintheSouthBendregion.MemorialHealthSystemisthelargestemployerintheareaandin2012mergedwithElkhartGeneralHospitaltoformtheBeaconHealthSystem.

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

BrownMackieCollegeisasystemoffor-profitcollegeslocatedintheUnitedStates.Thecollegesofferbachelor’sdegrees,associatedegreesandcertificatesinprogramsincludingearlychildhoodeducation,informationtechnology,healthsciencesandlegalstudies.BrownMackieisownedandoperatedbyEducationManagementCorporation.EducationManagementCorporateisapubliclytradedcompanythattradesontheNASDAQ(EDMC)withamarketcapitalization inexcessof$600million.EDMChas110campuses throughout theUnitedStatesandCanadaandover120,000enrolledstudents.

ThereareoverfiveyearsremainingontheEducationManagementCorporation(NASDAQ:EDMC)guaranteedleasethatexpiresinAugust2019.Thistriple-netleasehastwo5-yearrenewaloptionswithrentalescalationsineachoption.



• LeaseisguaranteedbyEducationManagementCorporation,apubliclytradedcompany(NASDAQ:EDMC)withamarket capitalizationinexcessof$600million

• LocatedlessthantwomilesfromtheUniversityofNotreDame

• CentrallylocatedwithintheSouthBend-MishawakaareaandwithinthedominantGrapeRoadretailcorridor

• ClassAupscaleofficebuildingthatwasrecentlyconstructedin2009

• Two5-Yearrenewaloptionswithrentalescalations

• Triple-netleasewithnolandlordexpenses

• TherecentextensionandreroutingofDouglasRoad(2013)greatlyenhancesthepropertiesaccess

• LocatedoneandahalfhourdrivefromChicago

• LocatedlessthanaquartermilefromInterstate80/90,bothofwhichtravelfromcoasttocoast(Interstate80:NewYorkCity toSanFrancisco,Interstate90:BostontoSeattle)

• BrownMackieCollegeofferscoursesinthefieldsofnursing,healthcareandwellness,whichhasitwellpositionedforfuture successintheSouthBendmarketduetothestrengthandprominenceofthelocalhealthcareindustry

• GoldmanSachsowns43%ofEducationManagementCorporation

INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS



PROPERTY OVERVIEW

PROPERTY OVERVIEW

Price: $9,188,900

CapRate: 10.00%

RentSchedule: NOI EscalationDate

$918,890$940,500 8/17/2019(Option1)$1,039,500 8/17/2024(Option2)

RenewalOptions: Two5-Year

LeaseCommencementDate: August17,2009

LeaseExpirationDate: August16,2019

Tenant: BrownMackieCollege

Guarantor: EducationManagementCorporation

StockSymbol: EDMC(NASDAQ)

YearBuilt: 2009

LeaseType: NNN*

BuildingSize: 47,537SF

LandSize: 6.08acres

Floors: Three

*Tenant is responsible for the payment of Operating Expenses. Operating Expenses shall be any and all expenses incurred by landlord in connection with the operating, maintenance, replacement and repair of the building and its operating systems, including the roof, plumbing, electrical, HVAC, elevators, and escalators. Land can charge a management expense (not to exceed (5%) five percent).



AERIAL

AERIAL

N

DISTRIBUTION CENTER

8090

INDIANA TOLL TOAD

2 miles



SITE PLAN

SITE PLAN

N

DOUGLAS ROAD



PROPERTY & BUILDING DESCRIPTION

PROPERTY & BUILDING DESCRIPTION

BuildingType: SingleTenantThreeStoryOffice

Constructed: 2009

BuildingSize: 47,537SF

SiteSize: 6.08acres

ParkingSpaces: 528

Roof: BallastedMembrane

BuildingEnvelope: Stucco/ConcreteBlock

Structure: SteelFrame,ConcreteBlock&BrickFaçade

FireProtection: ESFRSprinklerSystem

ElectricalSystem(TotalService):

1600AMP,480/277Volt,Three-Phase,Four-WireElectricSwitchgearFromTransformer

InteriorCeiling: AcousticTile

HVAC: RooftopHeating&AirConditioning



FLOOR PLANS - FIRST FLOOR

FLOOR PLANS



FLOOR PLANS - SECOND FLOOR

FLOOR PLANS



FLOOR PLANS - THIRD FLOOR

FLOOR PLANS



EXTERIOR PHOTOGRAPHS

EXTERIOR PHOTOGRAPHS



INTERIOR PHOTOGRAPHS

INTERIOR PHOTOGRAPHS



TENANT PROFILE

TENANT PROFILE

Brown Mackie Collegeisasystemoffor-profitcollegeslocatedintheUnitedStatesthatwasestablishedin1892.Thecollegesofferbachelor’sdegrees,associatedegrees,andcertificatesinprogramsincludingearlychildhoodeducation,informationtechnology,healthsciencesandlegalstudies.

Website: www.brownmackie.eduLocations: 28CampusesEnrollment: 17,000+StudentsEstablished: 1892Guarantor: EducationManagementCorporation(NASDAQ:EDMC)

Education Management CorporationisaPittsburgh-basedoperatorofprivatesectorpost-secondaryeducationalinstitutionsintheUnitedStatesandCanadathatwasfoundedin1962.EDMCisownedinpartbyGoldmanSachs,whichhasa43%stakeinthecompany.EducationManagementCorporationcurrentlyoperates110schoolsthroughitsfourhighereducationsystems;BrownMackieCollege,ArgosyUniversity,TheArtInstitute,andSouthUniversity.EDMCschoolsofferonlineandcampus-basedprogramsatthedoctorate,master’s,bachelor’s,associate,andcertificatelevel.

Website: www.edmc.eduStockSymbol: NASDAQ:EDMCMarketCapatilization: $675MillionEnrollment: 120,920StudentsLocations: 110CampusesEmployees: 23,000Headquarters: Pittsburgh,PA



MAPS

MAPS



LOCATION OVERVIEW

LOCATION OVERVIEW

South Bend, Indiana isthecountyseatofSt.JosephCountyontheSt.JosephRivernearitssouthernmostbend,fromwhichitderivesitsname.Asofthe2010census,thecityhadatotalpopulationof101,168residentsandacombinedstatisticalareaof721,296.ItisthefourthlargestcityinIndianaandtheeconomicandculturalhuboftheMichianaregion.SouthBendislocatedapproximately90mileseastofChicagoandisapproximately20milesfromthenearestshoreofLakeMichigan.

Healthcare,education,andsmallbusinessarethedrivingforcesbehindtheSouthBendeconomy.TheUniversityofNotreDameishometoapproximately12,000studentsandover5,000employees.Itisoneofthetopemployersinthearea.Health

careisanothermajorcontributortotheSouthBendeconomy.MemorialHealthSystemisthelargestemployerinthecity.In2012,Memorialannounced that itwasmergingwith ElkhartGeneralHospital to formBeaconHealthSystem. AMGeneral, CroweHorwath,Martin’s SuperMarkets,andSchurzCommunicationsallhavetheircorporateheadquartersinSouthBend.OthernotablebusinessesincludeHoneywell,Bosch,Woodwind&Brasswind,andPEIGenesis.

EffortsareunderwaytospureconomicgrowthinSouthBend.TheSt.JoeValleyMetronetisanot-for-profitorganizationattemptingtocreateamorerobusttelecommunicationsinfrastructurecapableofinexpensivehigh-speeddatatransmission.Thiswillbringmorehightechfirmstothecityandsurroundingarea.In2012,Kiplinger’sPersonalFinancerankedSouthBendhighinitsrankingsofthe“TenBestCitiesforCheapskates”.

www.ci.south-bend.in.us



DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT

Population 3-mi 5-mi 7-mi

TotalPopulation 68,508 159,365 231,477TotalHouseholds 27,256 61,850 89,559

Income

MedianHouseholdIncome $39,017 $38,576 $40,056AverageHouseholdIncome $58,417 $57,924 $58,126



666DundeeRoad,Suite1801Northbrook,IL60062

Randy [email protected]

Jimmy [email protected]

CONTACT INFORMATION

CONTACT INFORMATION

Real Estate

Triple Net Leased Office Property for Sale