4170 Cedar Bluff Drive, Petoskey, MI 49770

Long-Term Lease, Annual Rent Growth

• The tenant recently executed a new 7-year lease extension, demonstrating long-term commitment to the location and providing investors with stable contractual cash flow. The NNN lease features 2% annual rent increases, minimizing landlord responsibilities while offering built-in income growth to hedge against inflation and resulting in a 8.45% blended cap rate over the base term.

Modern Purpose-Built Medical Asset

• The ±19,200 SF facility was constructed in 2015 specifically for medical use and is designed to support a wide range of dermatology, cosmetic, and surgical procedures. The property’s modern construction and specialized buildout support operational continuity and tenant stickiness, while the upscale environment further enhances patient retention.

Leading Operator in a Growing Industry

• Advanced Dermatology & Cosmetic Surgery (“ADCS”) is one of the nation’s largest dermatology platforms, with over 150 locations across 14 states. Backed by Harvest Partners, a private equity firm with approximately $20 billion in assets under management, the network continues to expand through strategic acquisitions. The global dermatology market is projected to reach $70 billion by 2027, supported by an aging population, increased awareness surrounding skin cancer prevention, and rising popularity of cosmetic and aesthetic treatments.

Rapidly Appreciating, Supply-Constrained Market

• Located in Petoskey, the anchor of Northern Michigan’s “Gold Coast,” the site is positioned within one of the Midwest’s most rapidly appreciating communities, where median home list prices have tripled since 2020 to more than $1.1 million (Realtor.com Research, 2026). The local commercial market has also seen consistent rent growth, with medical office rents averaging a 4.0% annual increase over the past five years and 2.9% annually over the past decade. Benefiting from strong visibility and accessibility, the property is positioned within an established medical corridor and is further supported by limited supply and strong long-term real estate fundamentals.

Recession-Resistant Asset Class

• The medical office sector, particularly facilities serving specialized practices like dermatology, continues to experience strong growth. The non-discretionary nature of medical care and its resilience during economic uncertainty have made the asset class a strategic focus for both institutional and private investors nationwide.

Established Regional Medical Corridor

• Petoskey has long served as a healthcare hub for the surrounding region and nearby communities. The area draws patients from across Northern Michigan for specialty medical care, supported by the presence of established hospital systems, physician networks, and outpatient providers throughout the market. The region also benefits from strong economic fundamentals, including a low 1.6% unemployment rate and a workforce anchored by the healthcare and social assistance sector, reinforcing sustained demand for medical services throughout the area.