Moreno Valley Medical Village

[Pages:33]200 E. Beverly Blvd. Suite 200 Montebello, Ca 90640 Tel 626-926-6444 Fax 323-727-7574 Email: Bnovodor@

Optiflex Properties & Development LLC is developing advanced medical facilities in the County of Riverside, California. MORENO VALLEY MEDICAL VILLAGE will be 309,441 square feet on approx. 18.38 acres and INDIO MEDICAL VILLAGE will be 92,054 square feet on approx. 3.82 acres. Both projects together comprise a total of 401,495 square feet on approx. 22.2 acres.

Moreno Valley Medical Village

The Moreno Valley Medical Village is being developed on a site within a one block walking distance across the street from the Riverside County Regional Medical Center ("RCRMC") Hospital.

Riverside County Regional Medical Center

RCRMC is a 439 bed county hospital serving the Inland Empire in Southern California. RCRMC is a teaching hospital and is accredited by the Joint Commission for Accreditation of Healthcare Organizations (JCAHO). RCRMC offers training programs for interns, resident doctors, nursing students and allied health professionals.

The Moreno Valley Medical Village consists of six buildings plus an attached Urgent Care Center in one of the six buildings. There is a Medical Office Building ("MOB") consisting of 91,292sf, a Health Education & Wellbeing Center ("HEWC") of 50,000sf with the attached Urgent Care Facility of an additional 5,000sf, a Skilled Nursing Facility ("SNF") for patients with medical conditions consisting of 64,534sf, a Skilled Nursing Facility with Special Treatment Program ("SNF/STP") requirements consisting of 64,215sf, a Memory Care Unit ("Alzheimer's") of 18,200sf, and a Geriatric ("Senior's") Psych Unit of 16,200sf.

The Medical Office Building will house an Outpatient Surgery Center (10,000sf), a Radiation Cancer Treatment Center which includes space for Clinical Trials (5,000 sq. ft.), a Dialysis Center (7,500sf), a Rehabilitation Facility (10,000sf), a Clinical Laboratory (1,500sf), a Pharmacy (3,000sf), a Dental Laboratory (4,000sf), Physician's offices (35,000sf), a Caf?/ Restaurant (1,000sf), Administrative Offices (1,000sf) with Common Areas (13,292sf). Buildings share on-grade parking of 210,000 sq. ft. that can accommodate 696 cars.

Advance commitments of interest for space in the MOB represent 80% of the total usable square feet. The project is currently in the entitlement phase and is currently estimated by the City to be approximately 60 days from completion of the required zone change and has the full support of the County, the City, RCRMC Hospital and the community.

Optiflex Properties and Development, LLC has a signed operating agreement with Legacy Healthcare, a company with forty years experience successfully managing facilities such as Skilled Nursing Facilities ("SNF's) for patients with medical treatment requirements, Skilled Nursing Facilities with the STP licensing designation, Memory Care Units and a Geriatric Psych Unit in the Moreno Valley Medical Village.

Optiflex Properties and Development, LLC has a guaranteed twenty-year "fee-for-services" contract with the County of Riverside which pays for 100 of the 150 beds in the Skilled Nursing Facility with the Special Treatment Program 24/7/365 whether they are filled or not. That contract guarantees the operating revenue per bed starting at $199.08 per day per bed from opening day. There is a provision in the signed contract which calls for annual increases of 4.7% on July 1st of each subsequent year.

Based on a May 2009 third-party appraisal, the land is currently valued at $8.02 per sq. ft. which equals $6,430,000. This project is 90% entitled with only a new zone change required to complete the process, which is anticipated by the City to be within 60 days. Upon completion of the entitlement process, the land value will increase to $23.00 per sq. ft. which equals $18,403,749.

Construction, including hard and soft costs, is estimated to be approximately US$87.5 million for all buildings contemplated on the site. Construction is estimated to begin in the third quarter of 2010 and is estimated to take 18 months or less.

Upon completion, Moreno Valley Medical Village is estimated to be worth in excess of US$188 million. Financing for the construction (hard and soft costs), that ultimately reverts to permanent take-out financing has already been committed by a firm that manages in excess of

US$27 Billion. The commitment is a non-recourse loan with a HUD guarantee. The loan is fully amortized. The interest rate of 7.5% is fixed for 40 yrs. This HUD loan is for all buildings except the Medical Office Building and the Health Education & Wellbeing Center with the Urgent Care Unit attached and will be conventionally financed, fully amortized, with an interest rate of 7.5%, fixed for 30 years.

However, our goal is to finance the entire project through a private equity or private lender which will we have estimated will save approximately 15% of the hard construction costs.

INDIO MEDICAL VILLAGE

JFK Memorial Hospital

The Indio Medical Village is being built on a 3.82 acre site within a one block walking distance of the John F. Kennedy Memorial Hospital ("JFK"). Indio Medical Village consists of two connected buildings, a Skilled Nursing Facility for patients with medical treatment requirements and a Skilled Nursing Facility with a Special Treatment Program licensing attachment and with on-grade parking for staff and guests. Optiflex Properties and Development, LLC has a guaranteed twenty-year "fee-for-services" contract with the County of Riverside to pay for 50 of the 100 beds in the Skilled Nursing Facility with the Special Treatment Program 24/7/365 whether they are filled or not. That contract guarantees the operating revenue per bed starting at $199.08 per day per bed from opening day. There is a provision in the signed contract which calls for annual increases of 4.7% on July 1st of each subsequent year. This contract guarantees revenue and covers the anticipated debt service plus establishes profitability from the opening day of the facility. Optiflex Properties and Development, LLC has a signed operating agreement with Legacy Healthcare, a company with forty years experience successfully managing facilities such as Skilled Nursing Facilities ("SNF's) for patients with medical treatment requirements, Skilled Nursing Facilities with the STP licensing designation in the Indio Medical Village. The Indio Medical Village project is fully entitled, the infrastructure is completed and fully paid for and this project has been approved by the City of Indio on October 29, 2009. The project has the full support of Riverside County, JFK Memorial Hospital and the community. The land is currently valued at $23 per sq. ft. which equals $3,827,182. Construction, including hard and soft costs, is estimated to be approximately US$28 million for the two buildings.

Construction will begin in June/July of 2010 and is estimated to take 12 months. Value of the Indio Medical Village is estimated to be worth in excess of US$86 million upon completion of the construction.

Financing for construction (hard and soft costs) that ultimately reverts to a permanent take-out loan has already been committed by a lender that manages in excess of US$27 Billion in assets. The commitment is a non-recourse loan with a HUD guarantee. The loan is fully amortized. The interest rate of 7.5% is fixed for 40 yrs.

However, our goal is to finance the entire project through a private equity or private lender which will we have estimated will save approximately 15% of the hard construction costs.

MORENO VALLEY MEDICAL VILLAGE

The following is a breakdown of the buildings and square footage of the proposed 18.38 acre site in Moreno Valley, California:

1. Medical Office Building

-

a. Out Patient Surgery Center -

b. Cancer Treatment Center -

c. Dialysis Center

-

d. Rehabilitation Facility

-

e. Clinical Laboratory

-

f.

Outpatient Pharmacy

-

g. Dental Laboratory

-

h. Physician Offices

-

i.

Caf? Restaurant

-

j.

Administration Offices

-

k. Common Area

-

2. Skilled Nursing Facility

-

3. Skilled Nursing Facility with "STP" -

4. Skilled Nursing with "STP" Senior -

5. Memory Care

-

6. Health Education Wellbeing Center

-

7. Urgent Care

-

8. Parking (on-grade)

-

Total Buildings Square Feet

-

Total Square Feet with Parking

-

91,292 square feet

10,000sf (RCRMC) 5,000sf (Beverly Oncology) 7,500sf (DaVita) 10,000sf (RCRMC) 1,500sf (Quest Diagnostics) 3,000sf (Private Party) 4,000sf (SD Dental Labs) 35,000sf (Various) 1,000sf (Private Party) 1,000sf 13,292sf 64,534sf (Legacy Healthcare) 64,215sf (Legacy Healthcare) 16,200sf 18,200sf 55,000sf 5,000sf 210,000sf

309,441sf

519,441sf

INDIO MEDICAL VILLAGE

The following is a breakdown of the buildings and square footage of the proposed 3.82 acre site

in Indio, California:

1. Skilled Nursing Facility

- 42,399sf

(Legacy Healthcare)

2. Skilled Nursing Facility with "STP" - 49,655sf

(Legacy Healthcare)

3. Parking, Roads (on-grade)

- 54,702sf

Total Buildings Square Feet

- 92,054sf

Total Square Feet with Parking

- 146,756sf

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