Medical Office Suites for Lease Peachtree Dunwoody

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E x c l u s i v E

Offering Memorandum for

Medical Office Suites for Lease

Peachtree Dunwoody Medical Center

5505 Peachtree Dunwoody Road

Atlanta, GA 30342

01

PEACHTREE DUNWOODY

MEDICAL CENTER

EXECUTIVE SUMMARY

02 PROPERTY OVERVIEW

Stacking Plan

Space Plans

Area Map

Aerial Map

03 MARKET OVERVIEW

Market Overview

Hosptial/Health System Overview

Area Medical Spending

ADVISORS

Todd Perman, CCIM

Executive Managing Director

Global Healthcare Services

Direct: 404. 806.2510 tperman@ngkf.com

RE License # 266577

Dana Hamric

Associate Director

Global Healthcare Services

Direct: 404.806.2513

dhamric@ngkf.com

RE License # 258526

Chris Witcher

Associate

Global Healthcare Services

Direct: 770.552.2478

cwitcher@ngkf.com

RE License #330015

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

The Global Healthcare Services team with Newmark Grubb Knight Frank is proud to present Peachtree Dunwoody Medical Center for lease. Completed in 1987 and consistently renovated and upgraded throughout the 23 years of ownership by NAPC, Peachtree

Dunwoody Medical Center (“PDMC”) is a Class “A”, six-story, 131,461 rentable square foot, multi-tenant medical office building that is the premier location of choice for independtly minded providers in the Greater Atlanta area.

PDMC is the only medical office building, of its quality, that is not subject to hospital related use restrictions that exclude certain uses or competing healthcare providers. The lack of use restrictions provides the tenants of PDMC with maximum flexibility by having the ability to build their own ancillary services, such as outpatient surgery centers and imaging centers, bringing additional sources of revenue, services and convenience to the tenants and their patients.

Highlights

Š Competitive value-driven lease rates

Š On-site management office

Š 24/7 security

Š Valet parking

Š Uncongested access to I-285 and GA 400 via the Glenridge Connector

Š Private parking for key administrators and physicians

Š On-site pharmacy

Š On-site deli

Š A balanced mix of established medical specialties

Š Abundance of surface and structured parking accommodations

Š Convenient patient pick-up/drop-off and valet parking for the patients

Š Attentive, stable ownership

Located within a 1/4 mile of Northside Hospital, Saint Josephs’ Hospital and Children’s

Healthcare of Atlanta, as well as convenient access to I-285 and GA 400, and its proximity to

MARTA’s Medical Center train station.

BUILT-OUT MEDICAL SUITES

AVAILABLE

$29.50 per SF Full Service

Available

Š Suite 220

Š Suite 230

Š Suite 220/230

Š Suite 370

Š Suite 380

Š Suite 370/380

Š Suite 530

Š Suite 548

2,500 RSF

1,740 RSF

4,240 RSF

5,855 RSF

5,646 RSF

11,501RSF

1,432 RSF

6,637 RSF

Š Suite 580

Š Suite 590

2,495 RSF

5,179 RSF

Š Suite 530/548/580/590 15,743 RSF

Now

Now

Now

12/31/2015

03/31/2016

03/31/2016

Now

03/31/2016

Now

Now

Now

EXCLUSIVE ADVISORS

TODD PERMAN, CCIM

Executive Managing Director

Global Healthcare Services

Newmark Grubb Knight Frank

404.806.2510 tperman@ngkf.com

DANA HAMRIC

Associate Director

Global Healthcare Services

Newmark Grubb Knight Frank

404.806.2513 dhamric@ngkf.com

CHRIS WITCHER

Associate

Global Healthcare Services

Newmark Grubb Knight Frank

770.552.2478

cwitcher@ngkf.com

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

Total Space Available:

Building Size:

Year Built:

Floor Levels:

Parking:

31,484RSF

131,461 RSF

1992

6

4.5 spaces/1,000 SF

|

Global Healthcare Services 1

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW

2ND FLOOR STACKING PLAN

Available Suites

5505 Peachtree Dunwoody

Atlanta, GA 30342

03| MARKET OVERVIEW

5

2

SUITE 230

AVAILABLE

1,740 RSF

Sleep

Disorder

Center

PEACHTREE

ORTHOPAEDIC CLINIC

7,303 RSF

SUITE 220

AVAILABLE

2,500 RSF

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

PEACHTREE

ORTHOPAEDIC

CLINIC

363 RSF

PEACHTREE

ORTHOPAEDIC SURGERY

CENTER

Pediatric

Neurology

|

Global Healthcare Services 2

01 | EXECUTIVE SUMMARY

SPACE PLAN

SUITE 220 - 2,500 SF

5505 Peachtree Dunwoody

Atlanta, GA 30342

02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

|

Global Healthcare Services 3

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW

3RD FLOOR STACKING PLAN

Available Suites

5505 Peachtree Dunwoody

Atlanta, GA 30342

03| MARKET OVERVIEW

Sleep

OMNI

EYE

NORTHSIDE

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

5 3

SUITE 370

AVAILABLE

5,855 RSF

SUITE 380

AVAILABLE

5,646 RSF

Pediatric

Neurology

|

Global Healthcare Services 4

01 | EXECUTIVE SUMMARY

SPACE PLAN

SUITE 370 - 5,855 SF

5505 Peachtree Dunwoody

Atlanta, GA 30342

02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

|

Global Healthcare Services 5

01 | EXECUTIVE SUMMARY

SPACE PLAN

SUITE 380 - 5,646 SF

5505 Peachtree Dunwoody

Atlanta, GA 30342

02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

|

Global Healthcare Services 6

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW

5TH FLOOR STACKING PLAN

Available Suites

5505 Peachtree Dunwoody

Atlanta, GA 30342

03| MARKET OVERVIEW

5

SUITE 580

AVAILABLE

2,495 RSF

SUITE 548

AVAILABLE

6,637 RSF

Center

SUITE 530

AVAILABLE

1,432 RSF

CAFE

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

SUITE 590

AVAILABLE

5,179 RSF

Pediatric

Neurology

PEDIATRIC

NEUROLOGY

|

Global Healthcare Services 7

01 | EXECUTIVE SUMMARY

SPACE PLAN

SUITE 530 - 1,432 SF

5505 Peachtree Dunwoody

Atlanta, GA 30342

02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

|

Global Healthcare Services 8

01 | EXECUTIVE SUMMARY

SPACE PLAN

SUITE 548 - 6,637 SF

5505 Peachtree Dunwoody

Atlanta, GA 30342

02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

|

Global Healthcare Services 9

01 | EXECUTIVE SUMMARY

SPACE PLAN

SUITE 580 - 2,495 SF

5505 Peachtree Dunwoody

Atlanta, GA 30342

02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

|

Global Healthcare Services 10

01 | EXECUTIVE SUMMARY

SPACE PLAN

SUITE 590 - 5,179 SF

5505 Peachtree Dunwoody

Atlanta, GA 30342

02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

|

Global Healthcare Services 11

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

Emory Healthcare

Moody’s Rated Aa2 | 410 Beds

Peachtree Dunwoody Medical Center

5505 Peachtree Dunwoody Rd.

Atlanta, GA

100% Occupied

E

285

AREA MAP

5505 Peachtree Dunwoody

Atlanta, GA 30342

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

Moody’s Rated Aa2 | 537 Beds

Moody’s Rated Aa2 | 249 Beds

400

|

Global Healthcare Services 12

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

5505 Peachtree

Dunwoody Road

PDMC Exclusive

Parking Deck

AERIAL MAP

5505 Peachtree Dunwoody

Atlanta, GA 30342

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

|

Global Healthcare Services 13

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW

MARKET OVERVIEW - ATLANTA, GA

Healthcare

As of 2009, there were a total of 9,426 acute care, non-specialty patient beds in the 21-county metropolitan area. Not-for-profit hospitals overwhelmingly dominate for-profit hospitals in terms of how many beds hospitals have. More than 7,800 beds are owned by not-for-profit or hospital-authority facilities as compared to approximately 1,600 beds owned by for-profit entities.

Grady Memorial Hospital, with a total 953 beds, is the largest facility both in the metropolitan area and the state. The other large hospitals serving the metropolitan Atlanta area are: WellStar Kennestone (633 beds), Emory

University Hospital (579 beds), Northside Hospital (537 beds), Children’s

Healthcare of Atlanta (249 beds) located at “Pill Hill” and Emory University

Hospital Midtown (511 beds).

03| MARKET OVERVIEW

For Profit

23%

Ownership of Hospitals in the Metro Area

Nonprofit

37%

Hospital

Authority

Owned

40%

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING

2010 Medical Expenditures

Health Care

Medical Care

Physician Services

Dental Services

Eyecare Services

Lab Tests, X-Rays

Hospital Room and Hospital Service

Convalescent or Nursing Home Care

Other Medical Services

Nonprescription Drugs

Prescription Drugs

Nonprescription Vitamins

Medicare Prescription Drug Premium

Eyeglasses and Contact Lenses

Hearing Aids

Medical Equipment for General Use

Other Medical Supplies

Health Insurance

Blue Cross/Blue Shield

Commercial Health Insurance

Health Maintenance Organization

Medicare Payments

Long Term Care Insurance

Other Health Insurance

3 Mile 5 Mile

$220,382,890 $581,848,135

$106,422,138 $282,090,921

$13,777,290 $37,102,388

$20,357,596 $53,826,153

$3,087,103

$3,152,953

$8,236,746

$1,845,823

$6,511,516

$8,252,079

$8,499,933

$22,428,141

$4,626,517

$17,406,195

$6,136,845

$27,521,065

$3,506,387

$2,794,923

$4,684,321

$1,242,594

$394,298

$3,172,678

$16,428,760

$72,086,397

$9,311,321

$7,050,356

$12,490,305

$3,108,228

$1,064,681

$8,409,465

$113,960,753 $299,757,213

$32,580,496

$22,769,777

$86,212,077

$61,173,959

$21,800,336

$22,876,070

$4,933,137

$9,000,936

$58,705,685

$57,832,577

$12,619,687

$23,213,228

*Source: Esri

|

Global Healthcare Services 14

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

MARKET OVERVIEW - ATLANTA, GA

Economy

Atlanta has a thriving economy and is known for its pro-business climate, due to a combination of factors, including a diverse economy, efficient regional access, excellent quality of life, and a relatively low cost of living. As of March 2012, Atlanta ranks second nationally in job growth. Atlanta had 3.1% job growth between

January 2011 and January 2012, compared with Houston’s 3.7% growth. During the 1990s, Atlanta nearly doubled its employment base and more than doubled its population, outpacing the nation in both categories. With eight major universities,

Atlanta has an exceptionally deep talent pool. Atlanta ranks fourth in the number of Fortune 500 companies headquartered within city boundaries. Several major national and international companies are headquartered in metro Atlanta including four Fortune 100 companies: The Coca-Cola Company, Home Depot, Delta Airlines, and AT&T Mobility.

ATLANTA - MAJOR EMPLOYERS (2009)

3

4

1

2

Delta

Wal-Mart

AT & T

Emory University

25,000

24,243

20,500

10,817

America’s Richest Cities, 1978 and Now

Rank

1

2

15

16

17

18

11

12

13

14

9

10

7

8

5

6

3

4

23

24

25

26

19

20

21

22

27

28

29

30

Real GDP, 1978

$ billion 2010

City

New York

Los Angeles

Chicago

Philadelphia

Houston

Detroit

Washington, DC

San Francisco

Boston

Dallas

Miami

Seattle

Pittsburg

Minneapolis

Atlanta

St. Louis

Cleveland

Baltimore

New Orleans

San Diego

Kansas City

Cincinnati

Denver

Milwaukee

Columbus (OH)

Hartford

San Jose (CA)

Phoenix

Indianapolis

Buffalo

49

48

43

39

39

37

36

943

77

75

72

127

113

69

53

51

49

69

68

66

63

156

149

148

146

307

263

35

35

566

Entered top 30

Dropped top 30

Real GDP, 2010

$ billion 2010

City

New York

Los Angeles

Chicago

Washington, DC

Houston

Dallas

Philadelphia

Boston

San Francisco

Atlanta

Miami

Seattle

Phoenix

Minneapolis

Detroit

San Diego

Baltimore

Denver

Riverside

San Jose (CA)

St. Louis

Tampa

Portland (OR)

Pittsburgh

Orlando

Sacramento

Cleveland

Hartford

Kansas City

Cincinnati

179

173

145

142

132

127

125

102

98

96

95

95

117

117

116

105

236

211

182

181

496

392

341

325

314

296

283

250

732

SOURCE: Moody’s Analytics; McKinsey Global Institute analysis

1,180

Rank risen or declined

15

0

1

5

-9

4

17

7

-5

11

8

-11

26

26

-10

-2

-8

-8

-1

5

0

0

-3

1

3

0

4

0

0

0

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING |

Global Healthcare Services 15

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

MARKET OVERVIEW - ATLANTA, GA

Recent Performance

Atlanta’s economy continues to improve. From January 2011 to January 2012, the metro area had its strongest year of employment growth since 2007. The unemployment rate is now at 8.8% and below the state unemployment rate.

The annual benchmark employment revisions also show that Atlanta had the strongest recovery in Georgia last year with a payroll growth in 2011 of 1.3%.

Most service industries grew more strongly than pre-benchmark surveys had indicated, and some industries such as professional services, healthcare and manufacturing exhibited their strongest expansion since the 1990s.

Housing

The Atlanta housing market is seeing a rise in demand with positive employment figures according to a recent report by Metrostudy, a national housing intelligence and consulting firm that maintains the most extensive primary database on residential construction in the U.S. housing market.

New jobs in Atlanta through March 2012 increased by 27,400 positions.

According to Metrostudy, forecasters are predicting net employment gains in

Atlanta for 2012 above 30,000.

The Atlanta area saw a 38.4% increase in quarterly starts from last year and new home inventory has been depleted in various parts of Atlanta, down 21% year over year and down 83% from four years ago. Housing inventory is down 16% in North Atlanta year over year, and South Atlanta’s inventory is down 33% year over year.

Nationally average home prices have increased by 2.2% in May over April for both the 10- and 20-City Composites. The May index for Atlanta shows a 4%

(non-seasonally adjusted) increase in home values from April 2012, which is very good news. That represents a 6.31% increase in home prices over the past two-month time period. The current Case-Shiller index reflects values similar to home values in the spring of 1998. The May index for Atlanta is 87.85, which is up 4% from April 2012.

The metro Atlanta real estate market continues to show signs of improvement for sellers. Listing inventory is down 37% from June of 2011 and down 49% from

June 2010. There has been an extended period of low inventory since last year.

Buyer activity is strong. In 2012, Trendgraphix reports closed sales are up 26% compared to the same period in 2011. At the same time, the pace of pre-foreclosures

(notices of default) and foreclosures has slowed. For the past three months, RealValuator reports that market sales (re-sales and new homes) have outpaced bank-owned sales.

Debt performance

Though still worse than the U.S., debt performance has improved in Atlanta, which will be a positive as the recovery continues. Among the major types of consumer loans, bankcards and auto loans have had the largest declines in delinquency rates. These rates have dropped because of stricter credit screening and the gradual reduction of household debt, as well as the accumulated write-off of bad balances. As a result, consumers are better able to supplement their cash flow through lower debt payments.

Better debt performance will pave the way for the expansion of household consumption.

Tourism

The national recovery will strengthen tourism in Atlanta, supporting recovery in the hospitality, transportation and retail trade industries. The conference industry is recognized for its service, quality and reasonable prices, and it has proved resilient during the economic downturn. As business spending improves, conference demand will increase. With 80% of the U.S. population within a two-hour flight, Atlanta is one of the more accessible destinations in the country. City authorities are also actively persuading professional associations to keep their meetings in the metro area.

Logistic and transportation

The U.S. recovery and the improving economies of Georgia’s neighbors will create demand for local logistic and transportation services, which will lead the recovery of

Atlanta’s economy. The metro area is one of the largest rail and highway hubs in the

U.S., and cargo from the nearby Port of Savannah is often stored in Atlanta’s suburban warehouses before being dispatched to other states. Also, the area has one of the world’s busiest airports. Better economic conditions will lead to increased passenger traffic.

ATLANTA OFFERS LOWER ELECTRICITY COSTS

Average Utility Costs for Industrial Customers in Cents per kWh

Atlanta

San Antonio

Los Angeles

Washington DC

San Francisco

Dallas

New York

0 5 10 15 20

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING |

Global Healthcare Services 16

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW

MARKET OVERVIEW - ATLANTA, GA

03| MARKET OVERVIEW

Atlanta’s retail employment has grown more quickly than that of the state and the U.S. Atlanta’s average household incomes are higher than Georgia’s, allowing for a faster improvement in discretionary spending. Also, as the state’s largest city, Atlanta attracts more visiting shoppers.

Atlanta’s professional services added 26,930 jobs from January 2011 to

January 2012, its largest expansion since 1999. Among this growth is the expansion of PricewaterhouseCoopers, Deloitte, and other consulting firms in Atlanta. Since professional services benefit from the economic gains from other industries, the strong gains in professional services show the economic recovery is sustained and broadening. Also, professional research and technical services have now pulled ahead growth-wise of administrative support services, which bodes well for household income increases and demand for goods and services in the near term.

ATLANTA HIGHLIGHTS

Š Diverse Economy - Several major national and international companies are headquartered in metro Atlanta including four Fortune 100 companies:

The Coca-Cola Company, Home Depot, Delta Airlines, and AT&T Mobility.

Š Affordable Housing – The combination of Atlanta’s rising household incomes, sustained economic recovery and affordable housing bodes well for corporate employers and small businesses alike in attracting and retaining talented professionals and workers from within the region and throughout the U.S.

Š Transportation, Distribution and Cultural Center - Atlanta is home to

Hartsfield-Jackson Atlanta International Airport, the world’s busiest airport by passenger traffic and number of landings and takeoffs since

2005. The metro area is one of the largest rail and highway hubs in the

U.S.

Š Business-Friendly Environment - As of March of 2012, Atlanta ranks second nationally in job growth.

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING |

Global Healthcare Services 17

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

HEALTHCARE SYSTEMS OVERVIEW

EMORY HEALTHCARE SYSTEM

Saint Joseph’s Hospital of Atlanta is part of Emory Healthcare, Atlanta’s largest health care system in the state of Georgia with six hospitals totaling over 1,200beds. Hospitals include, Emory University Hospital, Emory University Hospital

Midtown, Emory Johns Creek Hospital, Emory University Orthopaedics &

Spine Hospital, Saint Joseph’s Hospital, and Wesley Woods Geriatric Hospital.

Emory Healthcare is the clinical arm of the Robert W. Woodruff Health Sciences

Center of Emory University, which is supported by the estate of the former longtime Coca-Cola president, Robert W. Woodruff. Moody’s Investor Service upgraded the rating on Emory Healthcare System Revenue Bonds to ‘Aa2’ from

‘A2’ based on a guaranty agreement of Emory University (Dec. 2011).

Emory University is a not-for-profit corporation, headquartered in Atlanta,

Georgia, which owns and operates Emory Healthcare System, education facilities, Clifton Casualty Insurance Company Ltd., and Emory Medical Care

Foundation. The University is also Moody’s rated ‘Aa2’.

Emory Healthcare

EMORY HEALTHCARE SYSTEM

Net Patient Service Revenue

2011

$2 Billion

Medicare

Medicaid

Other

Bed Count

34%

5%

61%

1,200

2010

$1.844 Billion

36%

6%

61%

Š Emory Healthcare and Saint Joseph’s Health System recently created a strategic partnership in order to “combine two of Atlanta’s oldest, most established and respected centers and enable [Emory Healthcare and Saint

Joseph’s Health System] to expand services, and facilitate broader patient access”(John Fox President & CEO-Emory Healthcare - Jan. 2012).

Š Saint Joseph’s Health System and Piedmont Healthcare formed a joint operating company in order to better serve the people of North Georgia

(April 2010). “This is an opportunity to leverage our reputation as a leader in clinical excellence and will allow us to expand our mission as a faithbased health system,” said J. Stephen Eaton, Chairman, Saint Joseph’s Health

System Board of Trustees.

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING |

Global Healthcare Services 18

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

HEALTHCARE SYSTEMS OVERVIEW

NORTHSIDE HEALTHCARE SYSTEM

Northside Healthcare System is a network of three not-for-profit hospitals located in Atlanta including, Northside Hospital of

Atlanta, Forsyth, and Cherokee with a combined total of 753beds. The health system also owns and operates five Northside Hospital-affiliated outpatient centers and medical office buildings throughout North Metro Atlanta. With 700,000 patient visits annually, 1,800 physicians on staff and more than 5,000 employees, Northside is one of Atlanta’s largest healthcare systems and continuing to grow. Northside Healthcare System recently invested over $50 million and added 150 jobs at its Forsyth campus (2010). The “Pill

Hill” campus is the primary campus for the Northside Healthcare System, with 64% of its overall patient revenue generated by this campus. Further, Northside Healthcare System’s Pill Hill campus is known for delivering approximately 2,000 babies per month and is widely accepted as the primary OB/GYN hospital in the region. Once women have their babies at a facility, they tend to continue to bring their family to the hospital for their healthcare needs

CHILDREN’S HEALTHCARE OF ATLANTA

Children’s Healthcare of Atlanta is ranked nationally in 10 pediatric specialties. The health system’s three hospitals, Children’s Healthcare of Atlanta at Egleston, Hughes Spalding, and

Scottish Rite consist of approximately 520 beds and treat more than 740,000 patient visits a year.

Moody’s has recently affirmed an ‘Aa2’ credit rating to Children’s Healthcare of Atlanta due to the health system’s strong debt service coverage, and exceptional financial performance in FY

2009 and FY 2010.

Employees (2011)

NORTHSIDE HEALTHCARE SYSTEM

Physicians (2011)

Bed Count (2011)

Moody’s Rated (2003)

5,000

1,800

753

‘Aa2’

Northside Hospitals

Atlanta (“Pill Hill”)

Cherokee

Forsyth

Total

Total Patient

Revenue (2010)

$1,901,948,030

$335,216,970

$753,551,866

$2,990,716,866

%

64%

11%

25%

100%

CHILDREN’S HEALTHCARE OF ATLANTA

2010

Net Patient Service Revenue

Medicare

Bed Count (2011)

Moody’s Rated (2011)

$923 Million

34%

520

‘Aa2’

2009

$885 Million

36%

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING |

Global Healthcare Services 19

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

HOSPITAL OVERVIEW

SAINT JOSEPH’S HOSPITAL OF ATLANTA

5665 Peachtree Dunwoody Road, NE | Atlanta, Georgia

Type of Facility:

Type of Control:

Health Care System:

Number of Beds

Special Care Beds:

Total Employees:

Total Discharges:

Total Patient Revenue:

Website

Short Term Acute Care

Voluntary Non-Profit, Church

Emory Healthcare

410

50

1,826

16,431

$1,081,328,083 www.stjosephsatlanta.org

Payor Mix

Total Hospital Patient Revenue:

Medicare

$420,337,622

39%

Saint Joseph’s Hospital of Atlanta is a 410-bed, acute care hospital located in Atlanta, Georgia.

The hospital is recognized as one of the top specialty-referral hospitals in the Southeast and is a part of the Emory Healthcare System. The 750 physician hospital was nationally recognized as one of the 50 finest hospitals in the country by HealthGrades in 2007.

Awards and Accreditations:

Š P.A.C.E. Clean Air Award (2011)

Š Joint Commission Stroke Award National Quality Approval (2011)

Š Magnet Award Winning Hospital

Š Bronze Award-American Heart Institution Get with the Guidelines

Š Georgia Hospital Association - Highest 3 Tier Honor

Gross Patient Revenue

Medicaid Other

$29,143,427

3%

$631,847,034

58%

Total

$1,081,328,083

100%

Balance Sheet

Period Ending Date

Assets

Current Assets

Fixed Assets

Other Assets

Total Assets

Liabilities and Fund Balances

Current Liabilities

Long-Term Liabilities

Total Liabilities

Total Fund Balances

Total Liabilities & Fund Balances

12/31/2010

Financial Indicators

Period Ending Date

$165,534,261

$175,072,775

$163,296,598

$503,903,634

EBITDAR

Days Cash on Hand-All Sources

$61,488,347

$164,930,022

$226,418,369

$277,485,265

$503,903,634

12/31/2010

$34,674,989

45.1

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING |

Global Healthcare Services 20

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW

HOSPITAL OVERVIEW

NORTHSIDE HOSPITAL OF ATLANTA

1000 Johnson Ferry Road NE | Atlanta, GA 30342

Type of Facility:

Type of Control:

Health Care System:

Number of Beds

Special Care Beds:

Total Employees:

Total Discharges:

Total Patient Revenue:

Website:

Short Term Acute Care

Voluntary Non-Profit, Other

Northside Hospital

537

34

4,004

28,194

$1,901,948,030 www.northside.com

03| MARKET OVERVIEW

Northside Hospital is a 537-bed, not-for-profit hospital located in

Sandy Springs, Atlanta, Georgia. Northside Hospital is one of the largest employers in Metro Atlanta Northside. The prestigious

Northside Hospital provides quality care at a variety of locations throughout the North Metro Atlanta area that include, Atlanta,

Forsyth and Cherokee. All Northside hospitals are full-service, acute-care facilities that offer particular expertise in Maternity

Services, Women’s Health, Cancer Care, Surgery and Radiology.

Awards and Accreditations:

Š Joint Commission on Accreditation of Health Care Organizations

Š Northside Hospital received the NRC

Consumer Choice Award for Most

Preferred Hospital in Overall Health

Care Services for 14 consecutive years

Total Hospital Patient Revenue:

Period Ending Date

Balance Sheet

Assets

Current Assets

Fixed Assets

Other Assets

Total Assets

Liabilities and Fund Balances

Current Liabilities

Long-Term Liabilities

Total Liabilities

Total Fund Balances

Total Liabilities & Fund Balances

Payor Mix

Medicare

Gross Patient Revenue

Medicaid Other Total

$237,369,428

12%

9/30/2010

$157,025,534

8%

$1,507,553,068 $1,901,948,030

79% 100%

Financial Indicators

Period Ending Date 9/30/2010

$305,031,329

$360,343,300

$234,630,778

$900,005,407

EBITDAR

Days Cash on Hand-All Sources

$92,635,119

70.2

$107,012,005

$457,993,686

$565,005,691

$334,999,716

$900,005,407

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING |

Global Healthcare Services 21

01 | EXECUTIVE SUMMARY 02 | PROPERTY OVERVIEW 03| MARKET OVERVIEW

HOSPITAL OVERVIEW

CHILDREN’S HEALTHCARE OF ATLANTA AT SCOTTISH RITE

1001 Johnson Ferry Road NE | Atlanta, Georgia Children’s Healthcare of Atlanta at Scottish Rite currently holds 249 beds including 172 general pediatric beds and 77 intensive care beds, and also manages approximately 10,000 admissions per year. Children’s at Scottish Rite offers many services including an emergency department and a comprehensive inpatient rehabilitation unit.

Type of Facility:

Type of Control:

Health Care System:

Number of Beds

Special Care Beds:

Total Employees:

Total Discharges:

Total Patient Revenue:

Website:

Children’s Short Term Acute Care

Voluntary Nonprofit, Other

Children’s Healthcare of Atlanta

249

72

1,930

13,027

$766,831,632 www.choa.org

Awards and Accreditations:

Š Joint Commission’s Gold Seal of Approval (2007)

Š Atlanta Business Chronicle ranked it the number one healthcare organization on its list of Atlanta’s A+ Employers.

Š Children’s Healthcare of Atlanta has been recognized for its outstanding staff and for its visionary physicians in pediatric medicine.

Payor Mix

Total Hospital Patient Revenue:

Medicare

$188,527

0.02%

Gross Patient Revenue

Medicaid Other

$0

0%

$766,643,105

99.98%

Total

$766,831,632

100%

Period Ending Date

Balance Sheet

Assets

Current Assets

Fixed Assets

Other Assets

Total Assets

Liabilities and Fund Balances

Current Liabilities

Long-Term Liabilities

Total Liabilities

Total Fund Balances

Total Liabilities & Fund Balances

12/31/2010

Financial Indicators

Period Ending Date

$991,580,618

$171,978,484

$79,109,066

$1,242,668,168

EBITDAR

Days Cash on Hand-All Sources

$22,474,800

$4,790,154

$27,264,954

$1,215,403,214

$1,242,668,168

12/31/2010

$112,108,376

N/A

PEACHTREE DUNWOODY MEDICAL CENTER > EXCLUSIVE OFFERING |

Global Healthcare Services 22

EXCLUSIVE ADVISORS

TODD PERMAN, CCIM

Executive Managing Director

Global Healthcare Services

Newmark Grubb Knight Frank

(404) 806-2510 tperman@ngkf.com

DANA HAMRIC

Associate Director

Global Healthcare Services

Newmark Grubb Knight Frank

(404) 806-2513 dhamric@ngkf.com

CHRIS WITCHER

Associate

Global Healthcare Services

Newmark Grubb Knight Frank

(770)552-2478 cwitcher@ngkf.com

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