P ROJEC T O VE RVI E W FO R T H E C I T Y O F N E W R OC H E L L E S O U N D S H O R E M E D I C A L C E N T E R N E W M E D I C A L O F F I C E B U I L D I N G A N D P A R K I N G S T R U C T U R E J U N E 1 2 , 2 0 1 2 Landmark Healthcare Facilities Landmark Healthcare Properties Fund Building the Future of Healthcare - 0 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Project Overview Sound Shore Medical Center ( “SSMC” ) has the following goals regarding the project: Strategic repositioning of the hospital and its services to better serve the community. • Increase utilization trends across inpatient and outpatient services. • Improve competitive position in the market. • Improve payor mix. • Strengthen capital capacity. • Strengthen physician relationships. • Provide affordable, on-campus office space. • Provide ownership opportunities to physicians -- secure long-term commitments from physicians. • Improve long-range operational efficiency. • Build confidence in the community that SSMC is “doing the right thing.” • - 1 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Project Overview [ continued ] SSMC has partnered with Landmark Healthcare Facilities LLC ( “Landmark” ) to complete the following projects: The development of a new on-campus Class “A” Medical Office and Ambulatory Services • Building ( the “MOB” ). The development of a new on-campus parking structure -- providing a permanent, • campus-wide parking solution. SSMC has other developmental projects underway as well: The expansion and renovation of its Emergency Room [ partially grant funded • through NYS HEAL ]. The refinancing of approximately $40 million in existing debt of SSMC. • - 2 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Landmark Healthcare Facilities LLC Landmark is a leading full-service developer of a complete range of outpatient buildings. Physician office buildings and outpatient centers. • Ambulatory care and surgery centers. • Cardiac and cancer centers. • Imaging centers and laboratories. • Fitness and women’s centers. • The March 12, 2012 issue of Modern Healthcare ranked Landmark the seventh largest developer of healthcare buildings in the United States in 2011. Landmark provides all the professional services, work product and deliverables that are required to design, develop and construct the complete range of outpatient buildings -- on a guaranteed-price, full-service basis. Landmark is the asset and property manager of all the outpatient buildings that are under the ownership of the Landmark Healthcare Properties Fund LLC . - 3 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Medical Office Building Overview The MOB will be located adjacent to SSMC and will serve as a multi-disciplinary healthcare destination for the New Rochelle and Westchester communities. Landmark will develop and own the MOB. Five floors and approximately 100,000 square feet. • SSMC to lease approximately 45 – 50 percent, with the balance leased by private physician practices. • SSMC services include Labor / Delivery, Maternity, Birthing Center and Diagnostic Imaging. • High-quality interior finishes throughout [ granite, wood material on walls, natural stone products, etc. ]. • Designed to meet LEED Silver standards. • Direct connection to the hospital on the first and second floors. • First floor retail space [ potential users include: restaurant, pharmacy, durable medical equipment ]. • No-cost ownership and custom designed and constructed office space for physician tenants. • 80 percent of the space in the MOB is currently under Letter of Intent -- indicating strong demand from the • physician community. - 4 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Parking Structure Overview 4 levels. • 530 parking stalls. • Reserved physician parking. • Located on an existing surface parking lot. • Provides the required parking for the MOB [ per the zoning requirements of the City of New Rochelle ]. • Provides an additional 233 surface parking stalls to offset any stalls that need to be relocated as a result • of the location of the MOB and the Parking Structure. Accommodates the long-term parking needs of SSMC. • Provides an overnight parking solution for the adjacent residential neighborhood. • Provides parking revenue that will offset annual expenses and debt. • - 5 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Aerial View of the Sound Shore Medical Center Campus New Parking Structure New 5-Story SSMC MOB - 6 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Site Plan for the Medical Office Building and Parking Structure - 7 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Rendering of the Medical Office Building [ Southwest View ] - 8 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Rendering of the Medical Office Building [ Southeast View ] - 9 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Rendering of the Medical Office Building [ Northwest View ] - 10 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Rendering of the Medical Office Building [ Courtyard View ] - 11 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Rendering of the Parking Structure - 12 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Cost Summary New MOB New Parking Structure Total Construction Costs 27,500,000 12,176,677 $ 39,676,677 Soft Costs 8,200,000 3,722,210 $ 11,922,210 Total Project Costs $ 35,700,000 $ 15,898,887 $ 51,598,887 - 13 - - 13 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Capital Structure for the Medical Office Building Landmark will finance the construction loan with U.S. Bank or another institutional lender. Total capital costs of the MOB are approximately $35,700,000. • Total equity investment of Landmark for the MOB is approximately $8,925,000 [ 25 percent ]. - Total construction loan for the MOB is $26,775,000 [ 75 percent ]. - Capital Structure for the Parking Structure SSMC is seeking a tax-exempt financing solution for the parking structure. Total capital costs for the parking structure are $15,898,887. • Annual operating expenses and estimated debt service is $1,700,000. • Estimated annual revenue from the parking structure is $1,710,000. • - 14 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Project Schedule Milestone Event / Task Start Date Finish Date Negotiate and Execute Transaction Documents with SSMC February 1, 2012 May 31, 2012 Prepare Schematic Drawings and Renderings for the MOB February 15, 2012 June 15, 2012 Obtain Approval of Available Economic Incentives March 1, 2012 November 30, 2012 Prepare Design Development Drawings for the MOB and Parking Structure June 15, 2012 August 9, 2012 Obtain All Required New Rochelle Entitlements June 18, 2012 November 30, 2012 Obtain CON Approval July 1, 2012 December 31, 2012 Prepare Construction Drawings for the MOB and Parking Structure August 10, 2012 November 1, 2012 Select the General Contractor November 1, 2012 December 13, 2012 Obtain Required Building Permits November 16, 2012 December 13, 2012 Construct the Shell and Core of the MOB December 19, 2012 November 30, 2013 Construct the Parking Structure December 1, 2012 August 31, 2013 Construct the Interior Tenant Improvements June 1, 2013 November 30, 2013 Obtain Certificate of Occupancy and Place the Parking Structure in Service December 1, 2013 Obtain Certificate of Occupancy and Place the MOB in Service December 1, 2013 - 15 -
Landmark Healthcare Facilities Landmark Healthcare Properties Fund Importance of the Project to Sound Shore Medical Center and the City of New Rochelle Creation of the only Class “A” medical office building in New Rochelle. • Secures long term commitments [ 10 to 20 years ] of approximately 20 to 30 privately owned physician • groups in New Rochelle -- limiting the “flight” to more affluent communities. Addition of new physicians and healthcare services to New Rochelle and southern Westchester. • Short-term [ construction related ] and long-term [ full-time healthcare positions ] job growth • for the local community. Expansion of SSMC outpatient and inpatient services -- required for improved patient care • and required to meet the growing needs of the community. Retail opportunities on the first floor of the MOB. • Improves the competitiveness and long-term success of SSMC in the marketplace. • Creation of new property tax revenue for New Rochelle [ as a not-for-profit entity, SSMC currently pays • no property tax on the proposed site ]. Addresses long-term parking needs of SSMC. • Utilization of local engineering, construction and design firms. • One-stop healthcare destination - provides access to many specialty and primary care options all located in one • building. - 16 - - 16 -
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