Candelas Booklet by Brenna Designs, LLC

Candelas Exempla Medical Office Building

PREPARED FOR

Samantha Bulka Steven Chyung David Hamm PREPARED BY

Bill Lucas Alex Fox, cpm Chris Ball, sior, ccim Kevin Terrien, leedÂŠ ap

September 25, 2013

Leadership and Discussion Topics. Cassidy Turley Leadership Alex Fox, cpm Senior Vice President, Principal 303.312.4232 Alex.Fox@cassidyturley.com Bill Lucas Senior Vice President, Principal 303.312.4239 Bill.Lucas@cassidyturley.com Chris Ball, sior, ccim Senior Vice President, Principal 303.312.4280 Chris.Ball@cassidyturley.com Kevin Terrien, leed© ap Senior Vice President 303.312.4203 Kevin.Terrien@cassidyturley.com

“ Cassidy Turley’s team has been a valuable service provider to BJC HealthCare for over 15 years on our medical office and corporate office assets. Their healthcare group has shown a great ability to handle multiple real estate functions on our behalf. Beyond providing first class property and facility management services, their focus on how changing laws and regulations affect real estate has proven invaluable to BJC and our physician tenants. Our relationship has evolved into more of a partnership and we are confident that they are protecting our interests.” Greg Patterson Director of Real Estate BJC HealthCare

2 | Cassidy Turley

Discussion Topics • Cassidy Turley Overview. National Coverage. Local Expertise. • Industry and Market Leadership. Healthcare Real Estate Thought Leadership. • Successful Partnerships. A Legacy of Success. • Property Management Services. Delivering Bottom Line Results. • Accounting & Transitions. Client Accounting and Transition & Quality Control.

The Opportunity 1. Local top-notch professionals supported by national resources. 2. Process driven approach to drive value and ensure our tenants receive quality service. 3. Providing best practices and collaboration to always strive for improvement and excellence.

Deliver compliance focused services to your organization across all real estate needs.

• Representative Portfolio. Proven Performance. Healthcare Properties.

“ Beginning with our strategic growth initiative in 2005, Cassidy Turley has been a trusted partner for The Children’s Mercy Hospitals and Clinics, (“Children’s”), during a period of significant growth and change. The Cassidy Turley team has proven to be exceptionally diligent in understanding our needs, conducts thorough analysis of options, and delivers real estate solutions while supporting the overall strategic mission of Children’s both on and off campus.” Lonnie M. Breaux Vice President Facilities The Children’s Mercy Hospitals and Clinics

“ In 1999, Anne Arundel Health System decided to outsource the property management function for four Medical Office Buildings, and Cassidy Turley was selected. Since that time, two additional buildings were opened. Throughout the planning, construction, commissioning, and Tenant fitout process the Cassidy Turley staff was an integral part of the overall Development Team. Cassidy Turley has also provided excellent lease administration (for over 100 Tenants), accounting, budgeting, and financial reporting services for the six building portfolio totaling 560,000 SF We look upon Cassidy Turley as a trusted partner and advisor in regards to real estate.” Bob Reilly Chief Financial Officer Anne Arundel Health System

National Coverage. Local Expertise. Sixty offices. Professionals who know their market. Inside and out. Increasing value for our clients every day.

Quick Facts

Our Core Values

• 60 U.S. offices

Exceptional Results for Our Clients

• $22

billion in transaction volume

completed for 2012 • 400

million SF managed portfolio

Dedication to Our Communities We don’t just work in our communities, we belong to them.

on behalf of corporate, institutional

Growth for Our Company

and private clients

We grow to get better, not just bigger.

• 3,800 associates, including more

than 970 brokers

3 | Cassidy Turley

We do whatever it takes, wherever it takes us.

Energizing Workplace for Our Associates Our people are more than assets; they are Cassidy Turley

Healthcare Real Estate Thought Leadership/Compliance Expertise. A core competency and focus of Cassidy Turley’s Healthcare

Impact on Lease Transactions

Rent

Practice is managing the intricacies of federal regulatory compliance

When a physician leases office space from a hospital, or vice versa,

•

associated with the Stark Law and Anti-Kickback Statute. Compliance

the lease arrangement is considered a financial arrangement triggering

is central to the real estate operations we provide for our healthcare

Stark Law compliance.

• Rent

tenant. You can also rely on Cassidy Turley as your expert partner to help streamline facility operations, cut costs without compromising the

Lease MUST meet all of the following requirements:

• Term

•

federal regulations of the Stark Law and Anti-Kickback Statute.

•

Lease Administration

Property Management

Stark Compliance

Public Policy Rationale To discourage patient referrals for financial compensation – we want

$100,000 civil monetary penalty for each arrangement considered to be a circumvention scheme. 4 | Cassidy Turley

STARK LAW:

Misconceptions&Violations

Account Manager

doctors making decisions based on sound professional judgment, not $.

of a $15,000 per service civil monetary penalty and imposition of a

National Stark Law Webinar

Leasing/ Brokerage

services rendered to a patient referred by a physician who has a

Penalties include denial of payment, refund of payment, imposition

provider (hospital) when other party to lease is a referral source.

areas OK if payments for CAM are proportionate to space leased).

cancer center) from submitting claims to Medicare/Medicaid for

Stark Law Penalties

not be adjusted to allow for proximity or convenience to the service

Leased space used exclusively by tenant (allocations of common

Prohibits a health service provider (e.g., hospital, imaging center,

relationship falls within an exemption).

commercial purposes (not considering any specific use); value may

Leased premises – commercially reasonable and necessary for the

Stark Law

financial relationship with the service provider (unless financial

Fair market value is defined as the value of rental property for general

legitimate business purpose.

As your trusted advisor, Cassidy Turley works with you in partnership to guide real estate operations in concert with adhering to the stringent

– not less than one year. (Holdover not longer than 6 months is

permitted.)

knowledge of our firm with that of our Healthcare Practice expertise is very powerful for our clients.

In writing, signed by all parties, adequately describing premises leased.

quality of healthcare services and align your real estate with the strategic goals of the organization. Combining the extensive real estate

•

Stark Lease Exceptions

•

charged is not based on volume or value of patient referrals, or

other business generated between the parties.

clients and guides all aspects of our services, as every aspect has bearing on the financial relationship the hospital has with the physician

Set in advance and consistent with fair market value.

National MOB Conferences

Project Management

Facilities Management

A Legacy of Success. Properties, Ltd.

Indiana University Health

Location Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri and Tennessee Real Estate Type Medical Office Building Portfolio Portfolio Scale 3.3 million square feet Cassidy Turley Services Property Management, Engineering Management, Accounting, Transaction Management, Construction Management, Leasing, Lease Administration, Time Share Lease Administration THE JOHN HOPKINS H O S P I TA L

Daughters of Charity Health System

Location Missouri and Illinois Real Estate Type Medical Office Portfolio Scale 1.5 million square feet Services Leasing Services, Property Management, Accounting, Project and Development Services

5 | Cassidy Turley

Proven Performance. Healthcare Properties.

Sutter Health Northern California

BJC HealthCare St. Louis, MO

Indiana University Health Indianapolis, IN

Cincinnati Childrenâ&#x20AC;&#x2122;s Hospital Cincinnati, OH

The Christ Hospital Cincinnati, OH

Princeton Healthcare System Princeton, NJ

Anne Arundel Medical Center Baltimore, MD

Daughters of Charity Health System Northern and Southern California

LifePoint Hospitals West Virginia

Healthcare Trust of America Phoenix, AZ

6 | Cassidy Turley

9950 W. 80th Avenue Arvada, CO

Regency Executive Center Colorado Springs, CO

The Childrenâ&#x20AC;&#x2122;s Mercy Hospitals and Clinics Kansas City, MI

Hospital Corporation of America Kansas City, MI

Hospital Corporation of America Nashville, TN

Piedmont West Atlanta, GA

Novant Health Charlotte, NC

7 | Cassidy Turley

Project Management: Client Benefits. We Save You Time And Money

We Take Care Of It All

The earlier our involvement, the greater the opportunity to add value, reduce costs, ensure quality and provide on-time delivery.

Managing multiple interests on your behalf.

Governmental Agencies

Environmental Consultants

Space Planner

Legal

Architect

Food Service

A/V Consultants

Amenities Operations Tenant Development

Incentives

Project Management

Construction

Furniture Acoustical Consultant

Data/Telecom Lighting Consultant Property Management

8 | Cassidy Turley

MEP Engineer Owner/ Operator

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