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

3740 UTICA RIDGE ROAD | BETTENDORF, IA 52722

UTICA CREST MEDICAL OFFICE

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LISTED BY:

MICHAEL MORENOAssociate Vice President & DirectorD: (949) 432-4511 M: (818) 522-4497E: michael.moreno@matthews.comLicense No. 01982943 (CA)

CONTENTS

04 EXECUTIVE OVERVIEW

06 FINANCIAL OVERVIEW

10 TENANT OVERVIEWS

14 AREA OVERVIEW

ADAM MAREKBroker of RecordLicense No. S44830000 (IA)

RAHUL CHHAJEDAssociate Vice President & DirectorD: (949) 432-4513 M: (818) 434-1106E: rahul.chhajed@matthews.comLicense No. 01986299 (CA)

KYLE MACKULAKAssociateD: (310) 919-5835 M: (262) 672-8388E: kyle.mackulak@matthews.comLicense No. 02055597 (CA)

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U T I C A C R E S TM E D I C A L O F F I C E

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EXECUTIVEOVERVIEW

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TENANT HIGHLIGHTS• Investment Grade Credit – Both tenants, UnityPoint Health and Genesis Health System (IA), have A1 credit ratings from Moody’s.

• Industry Leader - UnityPoint Health is the nation’s 13th-largest nonprofit health system and the fourth largest nondenominational health system in America.

• $653M+ in Revenue - Genesis Health System does over $653M in operating revenue, with over 930 licensed beds, 750 providers, and 1,500 nurses.

• Hundreds of Locations – UnityPoint Health has hundreds of locations across Iowa and Illinois and employs over 28,000 people. Genesis Health System has more than 75 locations across the Quad Cities and employs over 5,500 people.

PROPERTY HIGHLIGHTS• Passive NNN Investment – Both tenants are on NNN leases, with the landlord only covering expenses for the vacant space

• Inflationary Protected Leases – Both tenants have annual rent increases of 3%.

• Medical Real Estate — Healthcare properties are extremely sought-after investments for their resistance to downturns in the economy and e-commerce trends that affect traditional retail properties.

• Value Add Opportunity – The property is 84% occupied with one recent vacancy of 4,443 SQ Ft allowing a potential investor to add a significant value and increase the current NOI.

• Long Term Tenancy – Both tenants have been at the site for 10+ years and picked up multiple options to extend, showing their commitment to the location.

LOCATION HIGHLIGHTS• Certificate of Need State – Iowa is a CON state, meaning this facility has been approved by local regulators as necessary to serve the healthcare needs of the

local community, and that any competitors would have to be approved as necessary from local regulators before coming into this market.

• High Traffic Area – Strategically located off of Interstate – 74, which sees traffic counts over 35,000 Cars daily.

• Growing Market (150K+ Residents) - Bettendorf is on pace to become the second-largest city in the Quad Cities by 2021. There over 150K+ residents in a 5-mile radius of the property and 3.5% population growth over the last decade.

EXECUTIVE SUMMARYMatthews™ Healthcare Division is pleased to offer for sale this 30,082 Sq ft medical office leased to UnityPoint Health and Genesis Health Systems in Bettendorf, IA, the heart of the Quad Cities. This well maintained and well-positioned asset features NNN leases with annual rent increases and is tenanted by two A1 credit health systems who have a long operating history at the site. The property is 84% occupied, allowing a potential investor to lease up the remaining space and add even more value to the already attractive NOI.

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FINANCIALOVERVIEW

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RENT ROLL

TENANTNAME

LEASESTART

LEASEEND

SF

% OF GLA

BASE RENT/

SF

BASE RENTAL RATEEST

CAM/SF

EST CAM TI REIMBURSEMENT CONTRACT RENTAL RATE

RENTAL INCREASES OPTIONS

W/O CAM CAM TOTAL MONTHLY YEARLY MONTHLY YEARLY PER

SF MONTHLY YEARLY PER SF MONTHLY YEARLY

Genesis Health System DBA

Genesis Medical Center, Davenport

8/10/11 6/30/23 7,009 876 7,885 26.19% $11.82 $7,766.73 $93,200.70 $7.85 $5,156.46 $61,877.50 None None None $19.67 $12,923.18 $155,078.20 3% AnnuallyOne (1) Five (5) Year Option W/3% Annual

increases

UnityPoint Clinic Family Care Partners 4/27/09 7/31/25 15,492 1817 17,309 57.50% $12.69 $18,310.11 $219,721.33 $7.78 $11,216.60 $134,599.25 $3.32 $4,789.49 $57,401 $23.79 $34,310.13 $411,721.58 3% Annually

One (1) Five (5) Year Option W/5% Annual

increases

Vacant Space - - 4,443 467 4,910 16.31% - - - - - - - - - - - - - -

Common Area - - 3,160 3160 - - - - - - - - - - - - - - - -

TOTALS 30,082 $26,076.84 $312,922.03 $16,373.06 $196,476.75 $4,789.49 $57,401 $47,233.32 $566,799.78

PROPERTY SUMMARY

Name Utica Crest Medical Center

Tenants UnityPoint Clinic & Genesis Medical Center Davenpoint

Address 3740 Utica Ridge Road, Bettendorf, IA

Net Rentable Area ±26,944 SF

Year Built 1974 (Initial 20K Sf) 1984 (Additional 10K Sf)

In Place Occupancy 84.10%

Lot Size ±4.69 Acres (±204,418 SF)

Property Type Medical Office Building

Gross Leasable Area ±30,082 SF

Type of Ownership Fee Simple

LIST PRICE$4,400,000

YEAR 1 NOI

$336,687

CAP RATE7.65%

PRICE PSF ($)

$146

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INCOME & EXPENSES

Year 1

Income Total $ PSF

Rental Income $312,922.03 $10.39

CAM Reimbursements $196,476.75 $6.53

TI Reimbursements $57,401.00 $1.91

Effective Gross Revenue $566,799.78 $18.83

Full Expenses

Alarm Service $2,800.00 $0.09

Insurance $12,000.00 $0.40

Janitorial $5,000.00 $0.17

Janitorial Supplies $1,800.00 $0.06

Lawn Care/Snow Plow $15,000.00 $0.50

Pest Control $1,400.00 $0.05

Property Taxes $70,500.00 $2.34

Repairs & Maintenance $55,000.00 $1.83

Trash $2,800.00 $0.09

Utilities $0.00

3740 Utica Acct A $32,000.00 $1.06

3740 Utica Acct B $8,500.00 $0.28

Water & Sewer $8,030.00 $0.27

Management Fee $15,281.96 $0.51

Total Operating Expenses $230,111.96 $7.65

Net Operating Income $336,687.82 $11.19

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TENANTOVERVIEWS

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UNITYPOINT HEALTHAt UnityPoint Health® we provide care in nine regions throughout Iowa, western Illinois and southern Wisconsin in our hospitals, clinics and home health settings. As the nation’s 13th largest nonprofit health system and the fourth largest nondenominational health system in America, UnityPoint Health is dedicated to making it easier to live well.

YEAR FOUNDED: 1993 WEBSITE: www.unitypoint.org

GENESIS HEALTH SYSTEMGenesis Health System Serves a 17 County, bi-state region of the Quad Cities Metropolitan Area and the surrounding communities of Iowa and Illinois. We have earned distinction as a three-time Top Ranked Community Hospital in Iowa. As part of our ongoing patient safety journey, we achieved zero serious safety events in fiscal years 2017 and 2019 to be in the top 1 percent of the nation for patient safety.

YEAR FOUNDED: 1994 WEBSITE: www.genesishealth.org

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AREAOVERVIEW

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DEMOGRAPHICS

BETTENDORF, IOWASituated on the Mississippi River, Bettendorf is located in the southeastern region of Iowa in Scott County. The city is a part of The Quad Cities, a large metro area called centered around the Mississippi River with a population of over 400,000. Recently rated as #1 Best Places to Live in Quad Cities Area, Bettendorf offers a vast array of recreational and cultural opportunities throughout the community.

Home to the largest hotel in Iowa, The Isle Casino & Hotel, the town attracts thousands of visitors annually with a variety of entertainment and outdoor activities for visitors to enjoy. Some of these activities include casino gaming, theater, hiking and biking trails, golf courses, a skate park and an aquatic center. Located next to the hotel is the Quad Cities Waterfront Convention Center, a 50,000 SF structure, which is connected by a skywalk to the states largest hotel complex.

Considered as one of the top nations for families, the Family Museum, is one of the city’s top attractions. The museum was designed with a variety of interactive children’s activities. Including Music concerts, storytellers and science demonstrations. Splash Landing, is another family fun activity for residents and visitors. The attraction includes wave pools, slides and several spray features.

Population 1 Mile 3 Mile 5 Mile

2025 Projection 9,179 64,248 153,089

2020 Estimate 9,134 62,705 151,159

Households 1 Mile 3 Mile 5 Mile

2025 Projection 3,683 27,965 64,280

2020 Estimate 3,629 27,126 63,006

Income 1 Mile 3 Mile 5 Mile

Average Household Income $98,603 $96,028 $80,806

DEMOGRAPHICS

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DEMOGRAPHICS

QUAD CITIES MARKET

Sharing the Mississippi Rivers, the Quad Cities encompasses cities and counties in both Iowa and Illinois, and comprises a vibrant community of 400,000 people. The Quad Cities actually consists of five neighboring cities flanking the Mississippi River in Iowa and Illinois in the Midwestern United States. The July 1, 2007, population of the four-county metropolitan area is estimated at 376,160.

Before World War II, the area was known as the “Tri-Cities“, and included only Davenport, Rock Island, and Moline. With the growth of Rock Island County, East Moline was eventually given “equal status,” and the region became known as the “Quad Cities” during the early 1960s. By the 1970s, Bettendorf had grown such that many people in the community openly discussed the adoption of the name “Quint Cities“. However, by this time, the name “Quad Cities” had become known well beyond the area, and Quint Cities never caught on. As Bettendorf passed East Moline in size, it became one of the Quad Cities—a name that is now technically a misnomer, as the area includes five cities each with a population of over 20,000.

With nearly 7,000 hotel rooms in the QC region, visitors can find a variety of accommodations to meet their style and budget. Luxurious hotels and boutique properties with four-star ratings will pamper you with amenities and well-appointed rooms and suites. The casino hotels will put visitors right in the middle of the action with gaming, dining and entertainment. Charming bed and breakfasts, house rentals and Airbnb options are also available in the Quad Cities, nestled in quiet neighborhood settings.

For an outdoor experience, the QC has cabins and campgrounds where visitors can rest and put up a tent or park their RVs. They can find the accommodations here are more than just relaxing. They offer a variety of options for their overnight stay and can accommodate any preference and budget.

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This Offering Memorandum contains select information pertaining to the business and affairs of Utica Crest Medical Office located in 3740 Utica Ridge Rd | Bettendorf, IA 52722 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion

or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY AGREEMENT & DISCLAIMER

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LISTED BY:

3740 UTICA RIDGE ROAD | BETTENDORF, IAUTICA CREST MEDICAL OFFICE

MICHAEL MORENOAssociate Vice President & Director

D: (949) 432-4511 M: (818) 522-4497

E: michael.moreno@matthews.comLicense No. 01982943 (CA)

ADAM MAREKBroker of Record

License No. S44830000 (IA)

RAHUL CHHAJEDAssociate Vice President & Director

D: (949) 432-4513 M: (818) 434-1106

E: rahul.chhajed@matthews.comLicense No. 01986299 (CA)

KYLE MACKULAKAssociate

D: (310) 919-5835 M: (262) 672-8388

E: kyle.mackulak@matthews.comLicense No. 02055597 (CA)