The Optimal Intersection Compelling Investment Story for Small MOBs

CAPITAL PRESERVATION AND LIQUIDITY NEEDS ARE DRIVING THE MARKET TODAY

The Market

Hospitals and Health Systems

General Market Characteristics

Size

The Market

Investment grade

Strong balance sheet

Economic outlook

Profitability / trends

Population growth

Market position

Income growth

Attractive service area growth / income

Healthcare Market
Stable / increasing demand trends
(population growth, elderly, births)
Competitors

Small
Building
Premium

Payors

Hospitals
and Health
Systems

Regulatory environment / compliance

MOB Market
Supply constraints
Embedded rental growth
(existing rents are below market)
Hospital ownership / management impact
on expenses and property condition
Barriers to entry

Small Building Portfolio Premium

More capital than product

Core real estate class
Discount to market for smaller assets
Portfolio premium to aggregate assets
Movement to off campus MOBs

(payor mix / demand)

Physician relationships / partnerships

Access to Product: Self-Fulfilling Pipeline

External Growth

Development

Acquisition
Relationships

Management

Management

Hospitals
and Health
Systems

Acquisition
and
Development
Deals

Relationships

Cornerstone
Small
Building
Fund

Robert N. Whitacre
Executive Director

As Executive Director, Bob Whitacre is responsible for the overall profitability and performance of
Cornerstone Funds. Leveraging over thirty-five (35) years of industry experience, Bob sets the tone for the
companys long-range success in healthcare real estate.
He brings a unique approach to the many phases of the development process, including leasing, property
management, capital analysis, ownership modeling, and physician relationships. His understanding of the
ever-evolving healthcare industry and physician/hospital relations offers valuable insight into each of these
areas. And his approach leads to lasting alliances with Indianas healthcare systems, resulting in many
hospitals and physicians partnering in numerous projects with Cornerstone.
After graduating from Indiana University with a B.S. and M.B.A. degree in Real Estate Finance and serving
as an officer in the United States Army, Bob began his real estate development and consulting career. Since
then, he has been involved in the development of approximately fifty (50) medical facilities of all types and
has provided property management services to over seventy-five (75) medical properties. These projects
are located primarily in the Midwest, and most were completed with physician partners that number in the
hundreds.
In addition to his career achievements, Bob has served on the board of directors of numerous charitable and
educational organizations in the state of Indiana.

J. Taggart Birge
Managing Director

Managing Director, Tag Birge brings fifteen (15) years of real estate development and financing
experience to our Funds. He helms the development, leasing, management and investment
activities at Cornerstone and serves as a technical resource for all our associates, including
marketing, business development, development, leasing, financial analysis, legal and accounting
personnel.
He graduated cum laude from Indiana University in 1993 with a B.A. in Political Science. In 1997,
he received his J.D. from the University of Virginia. Prior to becoming President, Principal of
Cornerstone Companies, Inc., Tag was a Senior Vice President of Healthcare at Lauth Property
and Group and practiced law as a partner at Bose McKinney & Evans, LLP, Indianapolis, Indiana.
Tags legal practice with Bose McKinney & Evans, LLP focused on office, medical, and industrial
development representing Duke Realty Corporation and other private developers on numerous
transactions around the United States. As an attorney, Tag was ranked by his peers as one of the
best real estate attorneys in the State of Indiana.
While at Lauth Property Group, Tag developed approximately $200 million worth of office and
health care buildings around the country. Initially, Tag ran the Midwest office and healthcare
development for Lauth Property Group and in 2007 he assumed responsibility for all of Lauths
medical development in the United States. During Tags tenure at Lauth, Lauth was a top ten
developer of medical office buildings in the country as tracked by Modern Healthcare.
Tag currently serves on the Board of Directors of Bowen Engineering, the Sports Corporation
Board, BOMA Board, Heart of Gold Charity Board, and the Orchard SchoolBoard of Trustees.
He is also Alumni President of the University of Virginia Law School Class of 1997 and performs
volunteer work for the Tindly School

Chad T. Dutmers
Managing Director

As Managing Director, Chad Dutmers brings more than twenty (20) years of underwriting and
transactional experience to our Fund. He helms the property identification, underwriting, structuring,
leasing, and investment activities of Cornerstone Funds and serves Cornerstone Companies as a
resource for strategic planning, business development, and financial analysis.
He graduated from Indiana University in 1993 with a B.A. in English and Political Science. In 1997, he
received his M.B.A. with a concentration in Finance from the University of Loyola, Chicago. Prior to
becoming Director of Cornerstone MOB Funds, Chad was a Managing Director of Lakeside Equity
Group of Michigan, an advisory firm focusing on strategic planning and capital acquisition serving
financial institutions, medical practices, and middle market businesses.

Prior to forming Lakeside Equity Group, Chad served as the Regional President and Head of Corporate
Banking for National City Bank in Northern Michigan. His leadership role spanned across multiple
business lines including commercial real estate and corporate lending, leasing, treasury management,
investment banking, retail, and private banking. Chads oversight included over 35 branches and 300
employees, and the direction of a $400 million C&I and CRE loan portfolio.
While at National City, Chad directed over $150 million of direct and bank qualified financing for
regional hospitals, skilled nursing facilities, and medical practices. Chads Northern Michigan territory
included the upper third of the Lower Peninsula and the entire Upper Peninsula of Michigan, which
included a broad array of critical access and tertiary care facilities, as well as a broad mix of health
care specialties.
Chad served for several years as a board member of the Northwestern Michigan College Foundation
and the Traverse Bay Economic Development Corporation. He served on the board of the Traverse
City Area Chamber of Commerce from 2004-2010, and was its chairman in 2010. He was the
chairman of the City Opera House Heritage Association and continues to serve as a corporate board
member of Munson Health Care and is a member of the Ancient Order of Hibernians, Bunn Brady
Division.
Chad has been married to his wife, Macaire, for over twenty one years and has three children, Maggie
(16), Artie (15) and Gus (11).