The Cornerstone Healthcare Promise

The Cornerstone Healthcare Promise: Reliable. Efficient. Responsible.
COMPANY OVERVIEW
Cornerstone, located in Indianapolis, Indiana, was established in 1985 to operate as a healthcare real estate development, leasing,
proper ty management, consulting, and investment company. Cornerstone is a privately owned company that has been involved in
the healthcare real estate business for over three decades. Cornerstone has developed over fifty (50) medical facilities of all types.
These facilities include the following:
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MedicalOfficeBuildings(MOBs)
AmbulatorySurgeryCenters
UrgentCare&PrimaryCareCenters
ImagingCenters
Cath Labs
DiagnosticCenters
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EndoscopyCenters
Sleep Labs
PhysicalTherapyCenters
OncologyCenters
Clinical Labs
CommunityHealthCenters
Cornerstone’s growth in medical development has been built upon referrals and reputation rather than adver tising. The history
of Cornerstone is an unbroken series of successful projects, which is very unique in the real estate market. As a result of
Cornerstone’s excellent reputation for credit wor thiness, development, marketing, leasing, and asset management, Cornerstone’s
project por tfolio has continued to grow rapidly. However, there will always be a “small company” feel to Cornerstone’s team. As
problems, issues, or questions arise, owners and tenants have one point of contact. One of Cornerstone’s primary goals is to
make all hospitals and physicians feel like they are Cornerstone’s only client. Cornerstone is dedicated to working closely with
each client, hospital, and physician toward the (i) maximization of the value of the real estate asset and (ii) 100% satisfaction
with the medical, administrative and clinical space. Cornerstone has proven to be a committed par tner to their clients and to the
neighborhoods in which they have developed these assets.
MISSION:
Develop, lease, and manage healthcare real estate assets
and provide comprehensive healthcare real estate advice
to our clients.
VISION:
To be the company that best understands and satisfies
the real estate needs of our healthcare clients.
CORE VALUES:
The Cornerstone Healthcare Promise: Reliable. Efficient.
Responsible.
CONTACT:
Cornerstone Companies, Inc
3755 East 82nd Street, Suite 270
Indianapolis, IN 46240
317.841.9900 ph
317.577.2481 fax
www.CornerstoneCompaniesInc.com
DISPOSITION/MONETIZATION STRATEGY
Cornerstone is a national market leader for dispositions of medical office buildings, completing over 200 Million dollars in dispositions
in the last two years. Once the property conditions, including the physical condition of the assets, the occupancy, and the overall
financial performance have been brought to the desired level, we will proceed with our monetization strategy. We have relationships
with all of top healthcare REITs in the United States (public and private) and work with all of them on the sale of healthcare proper ties.
The Cornerstone monetization team is comprised of lawyers and MBAs who truly understand the legal and tax implications involved
in a potential sale.
Interest rates are at historic lows as demonstrated
by the following cap rate analysis which tracks the
cap rates for medical office buildings over Five
Million Dollars across the country:
Cornerstone has unique knowledge in structuring the monetization of medical office buildings with UPREIT Units and thereby
allowing the potential Seller to defer taxes and address potential capital account deficiencies. In an UPREIT transaction, a potential
seller of the asset essentially contributes their proper ty to the REIT for a limited partnership interest which essentially tracks the
performance of the underlying asset. The advantages of selling an asset with an UPREIT transaction are as follows:
Diversification: Converting a real estate investment to a REIT offers diversification with reduced volatility and risk. With a REIT investment,
a potential seller’s real estate investment interest would be spread across the REIT investments as compared to holding a single asset.
Liquidity: With our monetization strategy, a seller has the ability to receive REIT operating units (stock), which can be converted to cash or
cash equivalent instruments in the public markets.
Remove Refinancing Risk: By selling now, an owner of an asset removes the risk of refinancing into a higher interest rate environment.
Taxes: With UPREIT units taxes on the gain may be deferred from an outright sale.
Annual Earnings/Dividends: A REIT offers potential to achieve higher annual operating earnings over holding the real estate via dividends.
Flexibility: An option to take all cash and reinvest proceeds in one’s core business.
CONTACT: Robert N. Whitacre
317.288.9000 Direct
317.281.9900 Mobile
BobWhitacre@CornerstoneCompaniesInc.com
J. Taggart Birge
317.288.9001 Direct
317.507.5227 Mobile
TBirge@CornerstoneCompaniesInc.com
HEALTHCARE DEVELOPMENT
HEALTHCARE DEVELOPMENT SERVICES:
Cornerstone currently owns and/or operates nearly sixty (60) medical office facilities around the Midwest totaling over 2 million square feet
(the “Cornerstone Portfolio”). Cornerstone has developed and partnered both with physicians and hospitals on its medical office portfolio
and is willing to work for a fee or co-invest in the projects. Cornerstone’s growth in medical development has been built upon referrals and
reputation rather than advertising. The history of Cornerstone is an unbroken series of successful projects, which is very unique in the real
estate market. We are dedicated to working closely with each physician and hospital toward the (i) maximization of value of the real estate
asset and (ii) 100% satisfaction with the medical facility.
Community Health Systems MOB
66,700 Square Feet
Vicksburg, MS
Use: Diagnostic & Treatment Services,
Imaging, Clinic, Laboratory, Physical
Therapy, Occupational Therapy, Speech
Therapy, Respiratory Therapy, Wellness
Services, Pharmacy
Indiana Heart Physicians
62,265 Square Feet
Indianapolis, IN
Use: Clinical Office & Lab
CONTACT: Robert N. Whitacre
317.288.9000 Direct
317.281.9900 Mobile
BobWhitacre@CornerstoneCompaniesInc.com
J. Taggart Birge
317.288.9001 Direct
317.507.5227 Mobile
TBirge@CornerstoneCompaniesInc.com
Ross Goyer
317.288.9011 Direct
317.493.6273 Mobile
RGoyer@CornerstoneCompaniesInc.com
HEALTHCARE PROPERTY MANAGEMENT
HEALTHCARE PROPERTY MANAGEMENT SERVICES:
Cornerstone Property Management is a Cornerstone service line providing expertise in the management of all leases and contracts of
both wholly owned and third party managed property, oversight of day-to-day operations, tenant improvements, capital improvements,
collection of rent, budgeting, financial analysis, and reporting. The Cornerstone Property Management Team has an experienced staff
that understands the importance of providing information to our clients in a timely manner in order to meet their specific desires.
Property Managers work in close tandem with property accounting and the maintenance staff to ensure that the information provided
to clients is accurate and customized to fit their needs. Yardi Systems is our business accounting software which streamlines operations
and automates processes to save time, reduce errors and optimize cash management. Angus Systems is the tenant service request and
preventive maintenance management software used which makes for faster response times, improved tenant satisfaction, cost-effective
asset management and higher maintenance technician usage efficiency. The management staff currently manages over 2 million square
feet of on-campus and off-campus medical office facilities. We are focused on the management of real estate by first understanding our
client’s needs and then applying our experience and expertise to efficiently and effectively manage the property.
IU Health Arnett MOB
31,550 Square Feet
West Lafayette, IN
Use: Lab, Imaging, Urgent Care,
Pediatric, OBGYN, Family Medicine,
Internal Medicine
Physicians Medical Plaza
40,936 Square Feet
Indianapolis, IN
Use: Imaging, Lab, Clinical Office
CONTACT: Robert P. Whitacre
317.288.9002 Direct
317.523.1634 Mobile
RobWhitacre@CornerstoneCompaniesInc.com
Gretchen L. Mensch
317.288.9003 Direct
317.714.1021 Mobile
GMensch@CornerstoneCompaniesInc.com
HEALTHCARE REAL ESTATE LEASING AND CONSULTING
HEALTHCARE REAL ESTATE LEASING AND CONSULTING SERVICES:
Cornerstone healthcare real estate leasing and consulting services is a Cornerstone service line that provides healthcare clients with
strategic real estate solutions. The focus is on the development of strategic platforms and processes, enabling clients to make highly
informed real estate decisions and improve performance given the inherent characteristics of the healthcare industry. Our core values
ensure that the real estate strategic platforms and processes are fully aligned with a physician group’s or healthcare organization’s overall
objectives. Our healthcare real estate acumen demonstrates the fundamental strength of our real estate leasing and consulting services
team. We are focused on understanding and addressing the complex healthcare real estate challenges by first understanding our client’s
individual needs, and then applying our experience and expertise to develop a strategic solution.
Our Key Services:
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Hospital & physician group tenant/landlord representation;
Hospital & physician group buyer/seller representation;
Hospital & physician group acquisition/disposition representation;
Hospital & physician real estate Stark compliance;
Real estate lease audit management and rent analysis;
Real estate program/project management;
Healthcare master, ambulatory, reuse, and site planning;
Healthcare consulting services and;
Facility management.
Real estate capital needs, including debt and equity financing for construction, bridge and permanent financing for
new and existing healthcare real estate.
CONTACT: Charles J. Yeo
317.288.9006 Direct
317.358.7021 Mobile
CYeo@CornerstoneCompaniesInc.com
J. David Ross
317.288.9010 Direct
317.418.8950 Mobile
DRoss@CornerstoneCompaniesInc.com
CORNERSTONE PORTFOLIO
Unity Healthcare Campus
Premier Landmark Bloomington Campus
Summit Urology
The Eye Center of Southern Indiana
North Meridian MOB
Indiana Heart Physicians MOB
Hazel Dell MOB
Muncie MAB
Avon Medical Arts
Fishers Medical Arts
Carmel Physicians Surgery Center
Bloomington MOB
Fishers Medical Office Plaza
Pinnacle Pointe Medical
Physician’s Medical Plaza
Noblesville Medical Arts
Prairie Lakes MOB
Carmel Penn MOB
Methodist Medical Building
Mooresville Medical Building
8220 Naab
8260 Naab
8240 Naab
Penn St Indpls MOB
Lake Clearwater
Indiana Orthopedics Center
Lafayette Professional Center
IUH Arnett West Lafayette MOB
St. Thomas Medical Center
Southpointe Associates
Indiana American Office Parke Owners Assoc.
Indiana-American Building 2
Indiana-American Building 3
Indiana-American Building 4
Indianapolis Airport Development, LLC
IAD, Inc
WFTOX12, LLC
Greenfield MOB
8205 E 56th St
1250 N Post Rd
1270 N Post Rd
Schwarz Woodview Trace, LLC
Carmel Medical Pavilion
9240 N Meridian MOB
Park 1401
3850 Shore Drive
3830 Shore Drive
Franklin Township POB
St. Francis US31 & Southport Rd
8071 Township Line Rd
Pembrooke Medical Office Building
St. Elizabeth MOB A
St. Elizabeth MOB B
St. Mary’s Heart Institute
Ortho Indy West
Hammond Clinic Specialty Ctr
Hammond Clinic St. John
HC Family Wellness Center
Franciscan Physician Hosp OPC
Adena Health Pavilion
Mercy Hospital Clermont MOB
Mt. Carmel MOB
SQUARE FEET
ADDRESS
CITY
122,000
89,995
17,092
30,015
15,000
62,265
15,369
39,625
34,963
25,750
50,726
43,009
24,430
18,670
40,936
38,865
43,730
32,890
90,403
15,200
32,040
24,133
58,160
18,476
55,977
26,040
32,712
31,550
57,700
27,521
N/A
57,124
18,359
18,311
91,067
18,400
33,778
24,536
17,182
7,963
7,792
71,648
28,572
49,084
38,000
28,225
8,308
22,320
20,336
26,353
30,029
65,517
59,885
116,228
38,252
120,218
20,214
30,000
24,303
73,238
59,609
29,645
1250 S. Creasy Ln
500, 550, 574 Landmark Ave
2907 McIntire Drive
1011 W. 2nd St
10603 N. Meridian St
5330 East Stop 11 Rd
13250 Hazel Dell Pkwy
3631 North Morrison Rd
5250 East US 36
10995 Allisonville Rd
13421 Old Meridian St
2920 McIntire Dr
10967 Allisonville Rd
12065 Old Meridian St
8550 Naab Rd
18051 River Rd
14540 Prairie Lakes Blvd N
11900 N Penn St
101 East 87th Ave
820 Samuel Moore Pkwy
8220 Naab Rd
8260 Naab Rd
8240 Naab Rd
10610 N Penn St
3755 East 82nd St
7930 Shadeland Ave
3750 Landmark Dr
253 US 52 West
600 W. 13th St.
8920 Southpointe Dr
533, 521, 549
533 E County Line Rd
521 E County Line Rd
549 E County Line Rd
7820 Innovation Dr
7840 Innovation Dr
2265 Executive Dr
740 W Green Meadows
8205 E 56th St
1250 N Post Rd
1270 N Post Rd
3600 Woodview Trace
13431 Old Meridian St
9240 N Meridian St
1401/1403, 1405, 1411 W County Line Rd
3850 Shore Dr.
3830 Shore Dr.
8325 E Southport Rd
610 E Southport Rd
8071 Township Line Rd
1950 W. 86th Street
3920 St. Francis Way
3900 St. Francis Way
901 St. Mary’s Drive West
7950 Ortho Lane
7905 Calumet Ave
11355 97th Lane
9800 Valparaiso Dr
7847 Calumet Ave
4437 Rt 159
2055 Hospital Dr
815 W Broad St
Lafayette, IN
Bloomington, IN
Bloomington, IN
Bloomington, IN
Indianapolis, IN
Indianapolis, IN
Carmel, IN
Muncie, IN
Avon, IN
Fishers, IN
Carmel, IN
Bloomington, IN
Fishers, IN
Carmel, IN
Indianapolis, IN
Noblesville, IN
Noblesville, IN
Carmel, IN
Merrillville, IN
Mooresville, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Lafayette, IN
Lafayette, IN
Jasper, IN
Indianapolis, IN
Greenwood, IN
Greenwood, IN
Greenwood, IN
Greenwood, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Greenfield, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Carmel, IN
Indianapolis, IN
Greenwood, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Indianapolis, IN
Lafayette, IN
Lafayette, IN
Evansville, IN
Brownsburg, IN
Munster, IN
St. John, IN
Munster, IN
Munster, IN
Chillicothe, OH
Batavia, OH
Columbus, OH
278892 Cornerstone Pktfldr Cover.indd 1
BUILDING
Cornerstone Companies, Inc
3755 East 82nd Street, Suite 270
Indianapolis, IN 46240
317.841.9900 ph
317.577.2481 fax
www.CornerstoneCompaniesInc.com