OFFERINGMEMORANDUM

Centennial Atlanta Dialysis418 Decatur St. SEAtlanta, GA

2

Exclusively Offered by:

Keith KropflPrincipalDirector of Brokerage Services - Orange County949.430.0680keith.kropfl@avisonyoung.comCA License # 01106628

Alan PekarcikPrincipal949.757.1595alan.pekarcik@avisonyoung.comCA License # 00580011

Christopher SmithSenior Assoicate949.430.0683chris.smith@avisonyoung.comCA License # 01969259

Michael GanzSenior Associate949.430.0681michael.ganz@avisonyoung.com CA License # 01919987

Chris CooperPrincipal and Managing Director213.935.7435chris.cooper@avisonyoung.com CA License # 01260886

Steve DilsPrincipal and Managing DirectorGA License # 158115

This Confidential Offering Memorandum (this “Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement signed by you (the “Confidentiality Agreement”) and constitutes part of the Evaluation Material (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible acquisition of 418 Decatur St. SE, Atlanta, GA (“Property”), and is not to be used for any other purpose or made available to any other party without the prior written consent of the “Owner” or Avison Young Southern California, Ltd. (“Broker”).

This Memorandum was prepared by the Broker based on information supplied by the Owner and the Broker. It contains selected information about the Property and the real estate market but does not contain all the information necessary to evaluate the acquisition of the Property. The financial projections contained herein (or in any other Evaluation Material, including any computer diskettes) are for general reference only. They are based on assumptions relating to the general economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents.

While the information contained in this Memorandum and any other Evaluation Material is believed to be reliable, neither Broker nor Owner guarantees its accuracy or completeness. Because of the foregoing and since the Property will be sold on an “AS IS”, “WHERE IS” basis, a prospective

purchaser must make its own independent investigations, projections and conclusions regarding the acquisition of the Property without reliance on this Memorandum or any other Evaluation Material. Although additional Evaluation Material, which may include engineering, environmental or other reports, may be provided to qualified parties as marketing proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineering and environmental experts.

Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time with or without written notice. Owner shall have no legal commitment or obligations to any prospective purchaser unless and until a written sale agreement has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations hereunder have been satisfied or waived.

Broker is not authorized to make any representation or agreement on behalf of Owner. Each prospective purchaser will be responsible for any claims for commissions by any other Broker in connection with a sale of the Property if such claims arise from acts of such prospective purchaser or its Broker.

This Memorandum is the property of Owner and Broker and may be used only by parties approved by Owner and Broker. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.

Avison Young has been exclusively retained to offer for sale a DaVita Dialysis with 100% fee simple ownership. This offering consists of a single-tenant DaVita dialysis center totaling 11,040 square feet. Upon completion of the sale, DaVita will lease back the property and commence a 15-year, lease with 10% increases every five years with the tenant paying for all operating expenses as well as HVAC and the landlord responsible for foundation and structure. In addition, the lease will include three, 5-year option periods, which will be corporate guaranteed. The property would generate a net operating income of $253,920 in Year 1.

DaVita HealthCare Partners Inc. (NYSE:DVA), a Fortune 200 company, offers a unique opportunity to acquire a high-quality asset providing excellent tenant quality, and a long-term lease to an above average national credit tenant.

A remodel capital commitment was recently completed. These renovations included a replacement of the reverse osmosis system and other equipment as well as upgrades to the plumbing, roof, landscaping, parking lot, sprinklers, flooring and cabinetry.

Executive SummaryFacility Name: Centennial Atlanta DialysisOffering Price: $3,900,000 or $354 PSFAddress: 418 Decatur St. SE, Atlanta, GA 30312NOI: $253,920

CAP Rate: ± 6.50%

Occupancy: 100% (Sale Leaseback)Total Building Area: 11,040 SF

3

4

About DaVita Inc., a Fortune 500® company (ranked 179 for 2018), is the parent company of DaVita Kidney Care and DaVita Medical Group. DaVita Kidney Care is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease. DaVita Kidney Care strives to improve patients' quality of life by innovating clinical care, and by offering integrated treatment plans, personalized care teams and convenient health-management services.

DaVita—which is Italian for “giving life”—has more than 70,800 teammates (employees) around the nation working to provide superior patient care. As of the end of June 2018, DaVita Kidney Care provided dialysis services to a total of approximately 201,000 patients at 2,580 outpatient dialysis centers, of which 2,580 centers are located in the United States and 253 centers are located in 10 countries outside of the United States.

DaVita Medical Group is a division of DaVita Inc. that operates and manages medical groups and affiliated physician networks in California, Colorado, Florida, Nevada, New Mexico, Pennsylvania and Washington. A leading independent medical group in America, DaVita Medical Group has over two decades of experience providing coordinated, outcomes-based medical care in a cost-effective manner. DaVita Medical Group's teammates, employed clinicians and affiliated clinicians provided care for approximately 1.7 million patients.

Since beginning in 1999, DaVita has developed programs to enrich lives—and in creating programs for their patients and teammates, they realized that the goodwill they've generated has also spread to their families, into more than 2,000 local communities and around the world. Community Care—the annual report outlining the DaVita vision for social responsibility—defines the organization's "declaration of interdependence" and philosophy on the role corporations should play in America. DaVita is a community first, and a company second. They are a community that just happens to be organized in the form of a company.

DaVita's Community Care is comprised of four essential components:1. Building a Community2. To Build the Greatest Healthcare Community the World Has Ever Seen3. Being a Role Model for American Health Care4. Sending Forth Ripples of Citizen Leadership

G I V I N G L I F E

5

• 2018 FORTUNE Magazine’s “World’s Most Admired Companies.” 11th

consecutive year and 12th overall..

• In March 2016, DaVita HealthCare Partners ranked first in innovation

for healthcare medical facilities for the sixth time overall.

• 2018 Ranked number 179 on the Fortune 500.

• 2009, 2010, 2012, 2014, & 2015 Newsweek Green Rankings. DaVita

is the only kidney care services provider of the 500 largest publicly

traded companies in America.

• Proud recipient of the Freedom Award in 2013 for the Department

of Defense’s highest recognition given to employers for exceptional

support of Guard and Reserve employees.

• Recognized by ERE Recruiting as having the Best Military Talent

Program in 2013 and 2015

• Named as a Civilianjobs.com Most Valuable Employer (MVE) for

Military winner in 2011 to 2016

• Chief Learning Officer magazine named DaVita a Gold LearningElite

organization in 2013 to 2017

• In 2014, 2015, 2016 and 2017, Becker’s Hospital Review named

DaVita HealthCare Partners one of the top “150 Great Places to Work

in HealthCare”

• DaVita received a 2013, 2015 and 2016 Philanthropy award from

Communitas, an international effort to recognize exceptional busi-

nesses, organizations and individuals

• 2010 to 2016 Military Times EDGE “Best for Vets Employers”

• 2010 to 2017 “Top 100 Military Friendly Employers” according to G.I.

Jobs

• Recognized by GI Jobs as a Top 100 Military Friendly Spouse Employer

in 2013 to 2016

• 2005–2017 “Training Magazine Top 125” ranked companies of

employer-sponsored workforce training and development. DaVita is

the only national kidney care provider to earn this designation.

• 2008–2016 Ranked among WorldBlu “Most Democratic Workplaces”

• The Top Workplaces award program for Denver in 2013 through 2017

Awards & Rankings

Flat Shoals Avenue Southeas

North Highland Aven ue Northeast

North Highland Avenue North

east

May

nard

Terra

ce So

uthe

ast

McLendon Avenue Northeast

Clifton Road Northeast

Eucli

d Av

enue

North

east

Bill Kenn edy Way

Pea c

htre

e Ce

nter

Ave

nue

Nort

heas

t

Ferst Drive Northwest

Auburn Avenue Northeast

Edgewood Avenue Northeast

Mitchell Street Southwest

Ted

Turn

e r D

rive S

outh

west

Ted

T urn

er D

rive

Nort

h wes

t

Highland Avenue Northeast

Baker Street Northeast

Ralph McGill Boulevard

tta Street

Forsy

th St

reet

Sout

hwes

t

Centennial Olympic P

ark D

rive

Nort

hwes

t

Wal

ker S

treet

South

west

Park Street Southwest

Wes

t Pea

c htre

e St

reet

Nor

t hw

est

5th Street Northwest

S prin

g St

reet

Nor

thw

est

Oak Street Southwest

Willi

ams S

treet

Nor

thw

est

Martin Lu ther King Junior Drive Southeast

uthw

est

treet Southwest

Fulton Street Southwest

Irwin Street Northeast

Edgewood Av enue Northeast

Fulton Street

Tech

woo

d D

rive

Nor

thw

est

Tech Parkway Northwest

Mo r

elan

d A v

enue

No r

thea

st

Ponce de Leon Avenue Northeast

Morelan d Avenue Southeast

W

Northsid

e Driv

e Sou

thwes

t

North Avenue Northwest

Northside Drive Northwest

Northwest

Donald Lee Hollowell Parkway NorthwestPonce de Leon Aven ue Northeast

Dekalb Avenue Northeast

Dekalb Avenue

Memorial Drive Southeast

Freedom Parkway

East

Free

dom

Parkw

ay

Boul

evar

d No

rthe

ast

Cent

ral A

venu

e So

uthw

est

Pryo

r Stre

et S

outh

wes

t

Rawson Street Southwest

Dekalb Avenue Northeast

E ast Freedom Parkway

Freedom Parkway

Peac

htre

e St

reet

Nor

thea

st

Piedmont A

venue So

uthea

stPi

edm

ont A

venu

e No

rthe

ast

Washing

ton S

treet

South

west

Peac

htre

e Stre

et So

uthw

est

Whitehall Street Southwest Memorial Drive Southwest

Martin Luther King Jr Drive Southwest

Joseph E. Lowery Boulevard

Jose

ph E

. Low

e ry

Boul

evar

d

pito

l Ave

nue

Sout

heas

t

Decatur S treet Southeast

Cour

tland

Stre

et N

orth

e ast

Peters Str

eet Southwest

Trinity Avenue Southwest

Peac

htre

e Str

eet N

orth

east

est

Marietta Street Northwest

Juni

per S

treet

Nor

Marietta Street

Joseph E. Boone Boulevard Northwest

Pied

mon

t Ave

nue

Nort

heas

t

Pulliam Street Sout

Fulton Street Southwest

North Avenue Northeast

State Farm Arena

Herndon StadiumMercedes-Benz Stadium

Bobby Dodd Stadium atHistoric Grant Field

Emory UniversityHospital Midtown

Emory UniversityHospital Midtown

Grady Health System

Wellstar Atlanta MedicalCenter

King MemorialMARTA StationGeorgia

State Capitol

Georgia Institute ofTechnology

Georgia Institute ofTechnology

Spelman College

Georgia Tech

George W. and Irene K.Woodru� Dining Hall

Morehouse College

Robert W. Woodru�Library (Atlanta

University Center)

Georgia State University

SubjectPropertyAtlanta

DAVITA PORTFOLIO OFFERING MEMORANDUM

6

Property OverviewAddress: 418 Decatur St SE, Atlanta, GABuilding Size: 11,040 SFLand Size: 0.94 ACYear Built: 1989Construction: 1-story; Wood-frame, stucco exteriorParking: 3.26:1,000 (Est.)Location Attributes: Excellent street frontage and visibility. MARTA Transit Station on the

adjacent parcel to the south. One-half mile east of I-85 and Georgia State University as well as the State Capitol. Emory University Hospital is roughly 5 miles northeast.

Certificate of Need State: NoAPN: 14-0045-0006-015Lease Details: $23.00 PSF/YR. Upon completion of sale, there will be a 15-year lease with

10% increases every five years; in addition, there are three, 5-year option periods. Tenant pays all operating expenses including HVAC while the Landlord is responsible for the foundation and structure.

Renovations: Approximately $430k or about $38.95 PSF were completed in mid-2018

City & County Highlights• Atlanta is home to over 5.5 million people and has the 9th largest MSA in the US.

• With over $304 billion, the Atlanta MSA is the 8th largest economy in the country and 17th largest worldwide.

• Atlanta contains the country’s third largest concentration of Fortune 500 companies, and the city is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid.

• Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations.

Property Aerial

Property Photo

G I V I N G L I F E

7

Amenities MapDemographicsPopulation 1 Mile 3 Mile 5 Mile2018 Total Population: 22,305 170,863 348,8212023 Population: 23,979 181,347 370,688Average Age: 33.90 35.10 35.80Households2018 Total Households 10,596 75,124 149,9312023 Projection 11,418 79,756 159,277Median Household Income $53,946 $57,420 $56,172Average Household Income $69,953 $82,584 $83,617Average Household Size 1.70 1.90 2.00

DAVITA PORTFOLIO OFFERING MEMORANDUM

OFFERING MEMORANDUMExclusively Offered by:

Keith KropflPrincipalDirector of Brokerage Services - Orange County949.430.0680keith.kropfl@avisonyoung.comCA License # 01106628

Alan PekarcikPrincipal949.757.1595alan.pekarcik@avisonyoung.comCA License # 00580011

Christopher SmithSenior Assoicate949.430.0683chris.smith@avisonyoung.comCA License # 01969259

Michael GanzSenior Associate949.430.0681michael.ganz@avisonyoung.com CA License #01919987

Chris CooperPrincipal and Managing Director213.935.7435chris.cooper@avisonyoung.com CA License # 01260886

Steve DilsPrincipal and Managing DirectorGA License # 158115