The property is leased by the VA Clinic and the lease expires in 2027. This property is also on leased land. @Seth Sundberg @Joshua Holliday @Jr Bilbes

@Seth Sundberg @Jr Bilbes The VA currently leases and occupies the entire building and is scheduled to move out of the property at the end of 2027. The property is on a ground lease the expires on 7/31/2042. It was developed by Don Jones and his group back in the 80’s and I know him and his group well. I have rep’d him/them over the years with various projects. The ownership is planning to get this asset stabilized or sold. He would prefer to rent it out long-term to a creditworthy entity, but not opposed to a sale. The property is solid and fully operational for a MOB/Clinic with surgery center. If you could pick it up and move it, the story would be a bit different right now as you are fully aware. We don't have an official sale price but are entertaining offers for the property. Here are the bullet points: • ±47,677 gross square feet over three levels • Fully operational medical clinic with surgery operations building for lease and/or sale • Potential for full building user/clinic - currently fully single-tenant occupied • Potential for multi-tenant occupancy • Building signage available on exterior • ±99 current parking stalls under the building serving the building/clinic • Additional ±80-100 parking stalls available in adjacent lot • Long-term availability of property subject to land lease; LED 7/31/42 • A few blocks away from MacArthur Maze (I-80/I-580/I-880/I-980/H-24) • Available for occupancy in 2028 • For Sale Price: TBD The ground lease with CalTrans for $7,709/mo and increases annualy by CPI with a max of 3.5%. Land lease ends 7/31/2042. There was no price guidance provided.

Bellafonte Owner ‘s name is Dalsukh Khumbani and Jgna. I also enquired about a Lease to buy option. This could work but seller would need good security with possible non-refundable portion. @Seth Sundberg @Joshua Holliday @Jr Bilbes

@Seth Sundberg I had already thought $5M was already high. The price would have to be in the low $4M's in my opinion. Not sure that would start a conversation.

I have included the email from insurance broker along with the UW. The UW is a pro-forma and some of the numbers are estimates. I have also created a spreadsheet for calculating staff costs which only includes support staff, does not include maintenance, kitchen, admin, etc. One thing we should consider is the environment. Since this is a hospital, we would need to soften it up so as not to feel like an institution. @Seth Sundberg @Jr Bilbes @Joshua Holliday

I have not had luck with some lenders i've spoken to. Some don't even call back. I have reached out to two others I was able to find that do these types of properties and are in KS. Equity Bank and Intrust Bank. @Seth Sundberg @Jr Bilbes

@Seth Sundberg @Jr Bilbes I got this reply from the Victorville Planning Department Hi Deepak, Thank you for your inquiry regarding the proposed substance abuse recovery center. After reviewing the zoning for the subject property, which is designated C-2T (General Commercial), I’ve determined that a substance abuse recovery center is not a permitted use within this zoning district. The C-2 zone is intended to accommodate general commercial activities such as retail, personal services, offices, and similar uses. Residential or institutional uses of this nature are not allowed within this designation. Because the proposed use is not permitted in the C-2 zone, the property cannot be approved for operation as a substance abuse recovery center at this location. If you would like to discuss alternative zoning districts where this type of use may be permitted, or explore other potential site options within the City, I would be happy to assist.

@Jr Bilbes @Seth Sundberg I can never get a live person in the building department. According to the zoning info online, It can be used for what we intend to use it for. If we can categorize it as "Supportive Housing" it may cover the type of treatment intended to provide. I anticipate a call back to confirm.