PMB to develop new MOB for Sutter Health

Pacific Medical Buildings has commenced construction on a $27.5 million, 80,000 square foot medical office building

CASTRO VALLEY, Calif., Jan. 11, 2012 - Pacific Medical
Buildings (PMB) is pleased to announce its construction of a
$27.5 million,
four-story, 80,000 square foot medical office
building (MOB) on Sutter Health's new Eden Medical Center
campus at 20103 Lake Chabot Rd. in Castro Valley.
The new MOB
will be PMB's second building on the hospital
campus. The project is a joint venture with Ventas Inc., the
Chicago-based real estate investment trust that
Nationwide Health Properties (NHP), which had a development
pipeline agreement with PMB. PMB will develop, own and operate the MOB.

The MOB will be
connected on all four floors to the $320 million, 130-bed, 230,000 square foot acute care Eden Medical Center, which is now under construction.

"We are very happy
to be working with Sutter Health, which is a leader in the healthcare industry,” says Mark Toothacre, President of PMB. “This is an exciting development opportunity for us that
will result in an important community asset for the residents of Castro Valley and the surrounding communities."

"This project, including the new medical office
building and acute care hospital, represents a significant commitment by Sutter Health to continue providing the highest quality medical care to our patients and community," says
Bob Mitsch, Vice President of Facility Planning & Development for Sutter Health. "We are very pleased to be working with Pacific Medical Buildings and the rest of the talented
project team to build this landmark medical center."

The MOB will be 100 percent leased and occupied by Eden Medical Center and the Sutter East Bay Medical
Foundation. The facility will include an imaging center, urgent care center, medical offices and hospital administrative support services. Surface parking and an existing parking
structure will provide 386 parking spaces.

PMB is contracting with design-build firm DPR Construction, which has hired Devenney Group Ltd. as the project architect
for the MOB. DPR and NBBJ will design and construct the interior tenant improvements space. The MOB is expected to be completed in December 2012.

Hospital officials
anticipate that the MOB will receive Leadership in Energy and Environmental Design® (LEED) Silver
certification. LEED certification is an internationally recognized
verification that a facility meets the green building, design, construction, operation and maintenance standards developed by the U.S. Green Building Council.
The new Eden
Medical Center will replace a 53-year-old hospital, which doesn't meet newer, more stringent earthquake
regulations stipulated by California's Hospital Facilities Seismic
Safety Act. This is the first comprehensive hospital
rebuilding project in Alameda County that is financed without taxpayer support or public funds.