north miami multi-family - [email protected] priced under market value based on...

Each office is independently owned and operated.

Sponsored By:

Each office independently owned and operated

North Miami Multi-Family14500 & 14560 NE 6 Ave | North Miami, FL 33160

JOHN DEMARCO, [email protected]

Priced under market value based on current comparable sales➢

82 residential units and 2 commercial NNN tenants➢

Actual Gross Income $1,213,596 annually, Net Income $881,254➢

Actual Capitalization Rate 6.83%➢

Great Rental Area property maintains 100% occupancy➢

RE/MAX 5 STAR REALTY4151 Hollywood BlvdHollywood, FL 33020(954) 361-0000

REAL ESTATE INVESTMENT DETAILS14500 & 14560 NE 6 Ave | North Miami, FL 33160

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Analysis

Analysis Date September 2017

Property

Property North Miami Multi-Family

Property Address 14500 & 14560 NE 6 AveNorth Miami, FL 33160

Year Built 1970

Purchase Information

Property Type MultiFamily

Purchase Price $12,900,000

Units 84

Total Rentable Sq. Ft. 77,867

Loans

Type Debt Term Amortization Rate Payment LO Costs

All Cash

Income & Expenses

Gross Operating Income $1,213,596

Monthly GOI $101,133

Total Annual Expenses ($332,342)

Monthly Expenses ($27,695)

Contact Information

John DeMarco, ACP

954-678-8733

[email protected]

P. 2

EXECUTIVE SUMMARY14500 & 14560 NE 6 Ave | North Miami, FL 33160


ACQUISITION COSTS

Purchase Price, Points and Closing Costs $12,900,000

Investment - Cash $0

INVESTMENT INFORMATION

Purchase Price $12,900,000

Price per Unit $108,537

Price per Sq. Ft. $165.67

Income per Unit $14,448

Expenses per Unit ($3,956)

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $1,213,596

Total Vacancy and Credits $0

Operating Expenses ($332,342)

Net Operating Income $881,254

Debt Service $0

Cash Flow Before Taxes $881,254

FINANCIAL INDICATORS

Debt Coverage Ratio N/A

Capitalization Rate 6.83%

Gross Rent Multiplier 10.63

Gross Income / Square Feet $15.59

Gross Expenses / Square Feet ($4.27)

Operating Expense Ratio 27.38%

P. 3

PROPERTY DESCRIPTION14500 & 14560 NE 6 Ave | North Miami, FL 33160


John DeMarco with Re/Max 5 Star Realty isplease to present the sale of North Miami Multi-Family Complex and Charter School complex. Thisonce-in-a-lifetime investment opportunity consists of116,912 leasable square feet, with 82 largeapartments, and a 15,000 square foot net leasedcommercial Charter school. The retail Charter schoolbuilding is leased to the same operator for the last 12years and has a new 5 year lease in place. They arewell funded and is currently on a 200-child waitinglist. The 82 apartments are 100% leased and also ona waiting list. The average apartment in this buildingrents in days when a vacancy comes up. Theapartment mix consists of 64, 1 bedroom 1 bathapartments, and 18, 2 bedroom 2 bath apartments. All units are in good condition and have very largespacious floorplans.

Excellent multifamily rental area of North Miami. A+ full management services in place,and will stay on after closing. The apartment building is grossing $938,364 per year, and the School isgrossing $257,232. There is additional income of $18,000 from on site laundry facilities. The total grosscombined annual income is $1,1213,596. The total net operating income is $881,254 per year. This propertymaintains 99-100% occupancy rates consistently over the last 20 years. This actual net operating incomeprovides a 6.83% capitalization rate at full asking price.The financial study completed on this propertyallocates $8.9mil for the apartments or $108,536 per residential unit and $4mil for the charter schoolbuilding. This property is being sold for below current market value. Included in this package are comparablesales in the same area showing the average price per unit is $118,425.

There is no major deferred maintenance upcoming. All elevators have just been replaced and are brandnew. Property has ample parking with 153 spaces. Included in this package are comparable rentalcommunities near-by where apartments are leasing for much higher than this property. Managementcontinues to increase rents every turnover and rent increases are averaging 3%-5% per year. When all therents are increased, this will provide an investor with a 8.52% capitalization rate on a pro-forma basis. ThePro-Forma figures included in this package reflect re-assested tax amount.

Please remember to not disturb existing tenants, for additional information contact listing broker.

P. 4

PROPERTY PHOTOS14500 & 14560 NE 6 Ave | North Miami, FL 33160


P. 5

Residential Units

Commercial Tenants

MAPS AND AERIALS14500 & 14560 NE 6 Ave | North Miami, FL 33160

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.

P. 8

MAPS AND AERIALS14500 & 14560 NE 6 Ave | North Miami, FL 33160


P. 9

14500 & 14560 NE 6 Ave | North Miami, FL 33160


Actual Total Monthly

Actual Total Annually

Ordinary Income/ExpenseIncome42000 · Rental Apartments

4201 · Current Month Rent 75,961.00 911,532.0042200 · Rental - Schools 21,436.00 257,232.0042300 - Laundry Income 1,500.00 18,000.0042400 - Other 2,236.00 26,832.00Total Income 101,133.00 1,213,596.00Expense60300 · ALARMS & SECURITY 21.40 256.8061600 · Dues and Subscriptions 11.95 143.4061700 · Equipment Rental 291.58 3,498.9661800 · Insurance

61805 · A1 Health 0.00 0.0061810 · A1 Workers Comp 201.59 2,419.0861950 · Property & Wind 3,258.33 39,099.9665300 · Liability Insurance 636.56 7,638.72

Total 61800 · Insurance 4,096.48 49,157.76

62310 · Maintenance62380 · Elevator 250.00 3,000.0062390 · Extermination Service 154.00 1,848.0062420 · Lawn 100.00 1,200.00

Total 62310 · Maintenance 504.00 6,048.0062500 · Postage and Delivery 52.00 624.0062700 · Professional Fees

62710 · A1 Accounting Fees 123.95 1,487.4062800 · Legal Fees 242.00 2,904.00

Total 62700 · Professional Fees 365.95 4,391.4063100 · Building Repairs - Other400.00 4,800.00

Total 63100 · Building Repairs 400.00 4,800.0063300 · Equipment Repairs 0.00 0.00

Total 63000 · Repairs 400.00 4,800.0063500 · Travel & Ent63900 · Utilities

64000 · Electric 615.42 7,385.0464050 · Gas 818.12 9,817.4464100 · Water 6,107.28 73,287.3664200 · Janitorial 1,498.58 17,982.96

Total 63900 · Utilities 9,039.40 108,472.8065600 · Payroll Expenses

Management Fees 2,916.67 35,000.0065610 · A1 Payroll Expenses & Taxes3,333.33 40,000.00

Total 65600 · Payroll Expenses 6,250.00 75,000.0065800 · Supplies

65820 · Building - Capital Items P. 10



65830 · Appliances & Replacements450.00 5,400.0065840 · AC UNITS 472.46 5,669.5265845 · LOCKS & KEYS50.00 600.0065870 · Tiles 164.54 1,974.48

Total 65820 · Building 1,137.00 13,644.00Total 65800 · Supplies 500.00 6,000.0066100 · Taxes

66400 · Property 5,025.38 60,304.56Total 66100 · Taxes 5,025.38 60,304.56Total Expense 27,695.14 332,341.68Net Ordinary Income 73,437.86 881,254.32

P. 11

PRO FORMA SUMMARY14500 & 14560 NE 6 Ave | North Miami, FL 33160


UNIT MIX & ANNUAL SCHEDULED INCOME

Type Units Actual Total Market Total

TOTALS 84 $1,186,764 $1,444,032

ANNUALIZED INCOMEActual Market

Gross Potential Rent $1,186,764 $1,444,032

Less: Vacancy $0 $0

Misc. Income $26,832 $26,832

Effective Gross Income $1,213,596 $1,470,864

Less: Expenses ($332,342) ($372,342)

Net Operating Income $881,254 $1,098,522

ANNUALIZED EXPENSES

Actual MarketTotal expenses $332,342 $372,342

Total Expenses $332,342 $372,342

Expenses Per RSF $4.27 $4.78

Expenses Per Unit $3,956 $4,433

INVESTMENT SUMMARY

Price: $12,900,000

Year Built: 1970

Units: 84

Price/Unit: $108,537

RSF: 77,867

Price/RSF: $165.67

Lot Size: 87,025 sf

Floors: 4

APN: 06-2219-000-

Cap Rate: 6.83%

Market Cap Rate: 8.52%

GRM: 10.63

Market GRM: 8.77

P. 12

DEMOGRAPHICS14500 & 14560 NE 6 Ave | North Miami, FL 33160


POPULATION 1 MILE 3 MILE 5 MILE

Male N/A N/A 1,620 (47.87 %)

Female N/A N/A 1,764 (52.13 %)

Total Population N/A N/A 3,384

AGE BREAKDOWN 1 MILE 3 MILE 5 MILE

Ages 0-4 N/A N/A 152 (4.49 %)

Ages 5-9 N/A N/A 236 (6.97 %)

Ages 10-14 N/A N/A 241 (6.97 %)

Ages 15-19 N/A N/A 253 (7.48 %)

Ages 20-24 N/A N/A 228 (6.74 %)

Ages 25-29 N/A N/A 232 (6.86 %)

Ages 30-34 N/A N/A 202 (5.97 %)

Ages 35-39 N/A N/A 197 (5.82 %)

Ages 40-44 N/A N/A 206 (6.09 %)

Ages 45-49 N/A N/A 225 (6.65 %)

Ages 50-54 N/A N/A 228 (6.74 %)

Ages 55-59 N/A N/A 217 (6.41 %)

Ages 60-64 N/A N/A 191 (5.64 %)

Ages 65-69 N/A N/A 150 (4.43 %)

Ages 70-74 N/A N/A 112 (3.31 %)

Ages 75-79 N/A N/A 84 (2.48 %)

Ages 80-84 N/A N/A 56 (1.65 %)

Ages 85+ N/A N/A 174 (5.14 %)

P. 13

DEMOGRAPHICS14500 & 14560 NE 6 Ave | North Miami, FL 33160


HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

Median Income N/A N/A $37,650

Less than $10,000 N/A N/A 137

$10,000 -$14,999 N/A N/A 130

$15,000 - $19,999 N/A N/A 131

$20,000 -$24,999 N/A N/A 79

$25,000 - $29,999 N/A N/A 61

$30,000 - $34,999 N/A N/A 72

$35,000 - $39,999 N/A N/A 45

$40,000 - $44,999 N/A N/A 101

$45,000 - $49,999 N/A N/A 51

$50,000 - $59,999 N/A N/A 88

$60,000 - $74,999 N/A N/A 110

$75,000 - $99,999 N/A N/A 214

$100,000 - $124,999 N/A N/A 93

$125,000 - $149,999 N/A N/A 78

$150,000 - $199,999 N/A N/A 1

Greater than $200,000 N/A N/A 46

HOUSING 1 MILE 3 MILE 5 MILE

Housing Units N/A N/A 1,793

Occupied Units N/A N/A 1,626

Owner Occupied Units N/A N/A 1,104

Renter Occupied Units N/A N/A 522

Vacant Units N/A N/A 167

RACE DEMOGRAPHICS 1 MILE 3 MILE 5 MILE

Population Non Hispanic White N/A N/A 3,355

Population Black N/A N/A 1

Population Am In/Ak Nat N/A N/A N/A

P. 14



1 8951 NE 8th Ave - Biscayne Shores (Part of Multi-Property) SOLDMiami Shores, FL 33138 Miami/Dade County

Shores United LLCRecorded Buyer: Recorded Seller: Noden Properties Ltd., Inc.PO Box 219Lawrence, NY 11559

True Buyer: Gottlieb Family Partnership

8951 NE 8th AveMiami Shores, FL 33138(305) 751-4747Noden Properties Ltd., Inc.True Seller:

Sale Date:

– Research Status:

PrFrma Cap Rate:

Sale Price:

Actual Cap Rate:

$147.57$10,212,500 - Allocated04/08/2016 Bldg Type:

Zoning:Sale Conditions:

Year Built/Age:GBA:

--

Parcel No:Financing: -

Allocated

Class C Multi-FamilyApartmentsBuilt 1970 Age: 4669,206 SF

RU-4A1031 Exchange

GRM/GIM: -

# of Units: 86Price/Unit: $118,750Price/SF:

3563568Comp ID:

2 12016 NE 16th Ave - Advenir at Biscayne Shores SOLDMiami, FL 33161 Miami/Dade County

Advenir at Biscayne Shores LLCRecorded Buyer: Recorded Seller: Alta Mira Apartments LP17501 Biscayne BlvdAventura, FL 33160

True Buyer: Advenir, Inc.

3715 NW Northside PkyAtlanta, GA 30327Wood PartnersTrue Seller:

Sale Date:


PrFrma Cap Rate:

Sale Price:

Actual Cap Rate:

$181.91$52,700,000 - Confirmed06/16/2016 Bldg Type:


Year Built/Age:GBA:

5.10%5.00%

Parcel No:Financing:

30-2229-113-0010Down payment of $14,026,000 (26.6%); $38,674,000 from CBRE Capital Markets Inc: due in 7 yrs

Confirmed

Class B Multi-FamilyApartmentsBuilt 2013 Age: 2289,710 SF

--

GRM/GIM: -


3628327Comp ID:

3 1490 NE 123rd St - Avesta Biscayne SOLDNorth Miami, FL 33161 Miami/Dade County

1490 North 123rd LLCRecorded Buyer: Recorded Seller: WRPV XI Watermarke Miami, L.L.C.5118 N 56th StTampa, FL 33610

True Buyer: Avesta Acquisition LLC

30 S Wacker DrChicago, IL 60606Waterton Associates LLCTrue Seller:

Sale Date:


PrFrma Cap Rate:

Sale Price:

Actual Cap Rate:

$182.58$61,750,000 - Confirmed01/27/2017 (122 days on mkt) Bldg Type:


Year Built/Age:GBA:

5.20%5.00%


06-2229-083-0012, 06-2229-083-0015, 06-2229-083-0040, 06-2229-083-0050 [Partial List]Down payment of $13,350,000 (21.6%)

Confirmed

Class B Multi-FamilyApartmentsBuilt 1989 Renov 2003 Age: 28338,200 SF

PUD, North Miami-

GRM/GIM: -


3827366Comp ID:

Map Page: Trakker 24-BB6

Copyrighted report licensed to Re/Max 5 Star Realty - 746067. 9/27/2017

Page 1

P. 15



4 12 NE 188th St - Cottage Cove SOLDMiami, FL 33179 Miami/Dade County

Marlin Spring Realty LimitedRecorded Buyer: Recorded Seller: ANF Miami Gardens, LLC

True Buyer: Marlin Spring

2665 S Bayshore DrMiami, FL 33133TM Real Estate Group, LLCTrue Seller:

Sale Date:


PrFrma Cap Rate:

Sale Price:

Actual Cap Rate:



Year Built/Age:GBA:

-6.00%


30-2101-037-0570, 30-2101-037-0580, 30-2101-037-0590, 30-2101-037-0600 [Partial List]Down payment of $11,800,000 (23.6%); $38,200,000 from Capital One Multifamily Finance, LLC

Confirmed

Class C Multi-FamilyApartmentsBuilt 1969 Age: 48318,945 SF

RU-3, MiamiDebt Assumption

GRM/GIM: -


3929507Comp ID:

Map Page: American Map Corp8023-H3

5 14000 Biscayne Blvd - Aliro SOLDNorth Miami, FL 33181 Miami/Dade County

BRE Portofino MF PropertyOwner

Recorded Buyer: Recorded Seller: Stellar Management LLC

True Buyer: The Blackstone Group LP

156 William StNew York, NY 10038Stellar ManagementTrue Seller:

Sale Date:


PrFrma Cap Rate:

Sale Price:

Actual Cap Rate:



Year Built/Age:GBA:

5.00%5.50%


06-2221-023-0010$89,960,000 from Wells Fargo Bank: due in 10 yrs

Confirmed

Class A Multi-FamilyApartmentsBuilt 1974 Renov 2003 Age: 42656,013 SF

PUD, North Miami-

GRM/GIM: -


3653116Comp ID:

6 19680 E Country Club Dr - Promenade at Aventura Apartments (Part of Portfolio) SOLDAventura, FL 33180 Miami/Dade County

Starwood Capital GroupTrue Buyer: True Seller: Equity Residential591 W Putnam AveGreenwich, CT 06830(203) 422-7700

2 N Riverside PlzChicago, IL 60606(312) 474-1300

Sale Date:


PrFrma Cap Rate:

Sale Price:

Actual Cap Rate:

$180.96$59,485,936 - Allocated01/26/2016 (92 days on mkt) Bldg Type:


Year Built/Age:GBA:

--

Parcel No:Financing: -

Allocated

Class B Multi-FamilyApartmentsBuilt 1994 Age: 22328,724 SF

RMF 4Bulk/Portfolio Sale

GRM/GIM: -


3501162Comp ID:


Page 2

P. 16



Copyrighted report licensed to R

e/Max 5 S

tar Realty - 746067.

9/27/2017

Page 3

P. 17



Dollar Volume

Legend:

Current SurveySold Transactions 6

$351,148,436Number of TransactionsTotal Dollar Volume

2,000,79875.59

Total Bldg Square FeetTotal Land in Acres

3,292,7002,359

Total Land in SFTotal Units

$58,524,739333,466

Average PriceAverage Number of SF

$175.50$179.66

Average Price Per Bldg SFMedian Price Per SF

12.60548,783

Average Number of AcresAverage Number of SF(Land)

$148,855$144,278

Average Price Per UnitMedian Price Per Unit

3935.38%

Average Number of UnitsActual Cap Rate

SoldTransactions

-Average GRM-Average GIM

Time Interval - Quarterly

Report Time Frame: 1/1/2016 - 9/27/2017

Trend Report


Page 4

P. 18



Trend Report

Sold Transaction Sold Transaction

1Q16 01/1-3/31/16 3Q16 07/1-9/30/16

Number of TransactionsTotal Dollar VolumeTotal Bldg Square FeetTotal Land in AcresTotal Land in SFTotal UnitsAverage PriceAverage Number of SFAverage Price Per Bldg SFMedian Price Per SFAverage Number of AcresAverage Number of SF(Land)Average Price Per UnitMedian Price Per UnitAverage Number of UnitsActual Cap RateAverage GRMAverage GIM

2Q16 04/1-6/30/16 1Q17 01/1-3/31/17

Sold TransactionSold Transaction

1$59,485,936

328,72410.90

474,804296

$59,485,936328,724$180.96$180.96

10.90474,804

$200,966$200,966

296---

2$62,912,500

358,91611.05

481,338326

$31,456,250179,458$175.28$164.74

5.53240,669

$192,983$169,167

1635.00%

--

1$117,000,000

656,01323.12

1,007,107867

$117,000,000656,013$178.35$178.35

23.121,007,107$134,948$134,948

8675.50%

--

1$61,750,000

338,20010.95

476,982402

$61,750,000338,200$182.58$182.58

10.95476,982

$153,607$153,607

4025.00%

--

2Q17 04/1-6/30/17

Number of TransactionsTotal Dollar VolumeTotal Bldg Square FeetTotal Land in AcresTotal Land in SFTotal UnitsAverage PriceAverage Number of SFAverage Price Per Bldg SFMedian Price Per SFAverage Number of AcresAverage Number of SF(Land)Average Price Per UnitMedian Price Per UnitAverage Number of UnitsActual Cap RateAverage GRMAverage GIM

Sold Transaction

1$50,000,000

318,94519.57

852,469468

$50,000,000318,945$156.77$156.77

19.57852,469

$106,838$106,838

4686.00%

--


Page 5

P. 19



Haitian Youth and Community Center

Haitian Youth and Community Center

(HYCCF), Inc. is a not-for-profit 501 (c) 3

membership organization that provides a

variety of services, including after school

care, summer programs, youth services,

child care services, and Family and

Community Partnership

HYCCF operates a nationally accredited

child care center that provides

comprehensive child development

services to children and families in the community.

HYCCF/Early Step Learning Centers are licensed to serve one

hundred and eighty-eight (188) children.

HYCCF uses the same facility and resources that has enabled

its’ Head Start child care program to achieve a great deal of success.

HYCCF is in the community that it has served for the past ten (12)

years.

During this time, HYCCF has successfully engaged over 2000 people

through community outreach and collaboration with other

prominent organizations that serve Haitian children and their

families in Miami.

HYCCF has experience in developing and operating community

enhancement programs that meet the identified needs of the people

it serves. P. 20



“For 12 Years, Haitian Youth has provided Childhood services for

children and families including those with disabilities and

community service learning.

We also provide information and referral, advocacy services,

legal referral. We address many concerns such as education

and employment, equal access and community placement.”

Haitian Youth and Community Center of Florida, Inc. Is a

state and federally funded not– for profit corporation.

“Our mission is to strengthen and enhance Haitian Americans

individuals, as well as their family in South Florida by

providing opportunities for Haitian Americans to engage in

charitable, educational, recreational and community activities.”

P. 21

ANNUAL PROPERTY OPERATING DATA14500 & 14560 NE 6 Ave | North Miami, FL 33160


Description Year 1 Year 2 Year 3 Year 4 Year 5

Rental Income $1,186,764 $1,222,367 $1,259,038 $1,296,809 $1,335,713

Other $26,832 $26,832 $26,832 $26,832 $26,832

GROSS SCHEDULED INCOME $1,213,596 $1,249,199 $1,285,870 $1,323,641 $1,362,545

GROSS OPERATING INCOME $1,213,596 $1,249,199 $1,285,870 $1,323,641 $1,362,545

Expenses

Total expenses ($332,342) ($332,342) ($332,342) ($332,342) ($332,342)

TOTAL OPERATING EXPENSES ($332,342) ($332,342) ($332,342) ($332,342) ($332,342)

NET OPERATING INCOME $881,254 $916,857 $953,528 $991,299 $1,030,204

P. 22

CUMULATIVE WEALTH ANALYSIS14500 & 14560 NE 6 Ave | North Miami, FL 33160


Year 1 2 3 4 5

$490,000

$980,000

$1,470,000

$1,960,000

$2,450,000

$2,940,000

$3,430,000

$3,920,000

$4,410,000

$4,900,000

Legend

Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t)

P. 23

LOCATION MAP14500 & 14560 NE 6 Ave | North Miami, FL 33160


P. 25



State of the U.S. Multifamily Market

Q3 2016 Review and Forecast

P. 26



Agenda

Macro Overview

Apartment Market Fundamentals

Apartment Rent Trends

Capital Markets

P. 27



Macro Overview

P. 28



Real GDP Growth (SAAR)

Sources: BEA; CoStar Portfolio Strategy As of 16Q4

2.9%

(6%)

(4%)

(2%)

0%

2%

4%

6%

11 12 13 14 15 16

GDP Growth

P. 29



GDP Growth by Sector


(6%)

(4%)

(2%)

0%

2%

4%

6%

11 12 13 14 15 16

Contribution to GDP Growth

P. 30



GDP Growth by Sector: Net Exports


(6%)

(4%)

(2%)

0%

2%

4%

6%

11 12 13 14 15 16


P. 31



GDP Growth by Sector: Business Investment


(6%)

(4%)

(2%)

0%

2%

4%

6%

11 12 13 14 15 16


P. 32



GDP Growth by Sector: Government


(6%)

(4%)

(2%)

0%

2%

4%

6%

11 12 13 14 15 16


P. 33



GDP Growth by Sector: Residential Investment


(6%)

(4%)

(2%)

0%

2%

4%

6%

11 12 13 14 15 16


P. 34



Too Much Supply? Or Not Enough…

31-Mar-65

30-Jun-65

30-Sep-65

31-Dec-65

31-Mar-66

30-Jun-66

30-Sep-66

31-Dec-66

31-Mar-67

30-Jun-67

30-Sep-67

31-Dec-67

31-Mar-68

30-Jun-68

30-Sep-68

31-Dec-68

31-Mar-69

30-Jun-69

30-Sep-69

31-Dec-69

31-Mar-70

30-Jun-70

30-Sep-70

31-Dec-70

31-Mar-71

30-Jun-71

30-Sep-71

Source: Census Bureau; CoStar. Current totals are annualized based on prior years. As of November 2016

0

500

1,000

1,500

2,000

2,500

1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Multifamily Single Family

Multifamily Average: 399,000 new units per year

Total New Housing Construction (000s of Housing Units)

Average: 1,419,000 new units per year

P. 35




31-Mar-65

30-Jun-65

30-Sep-65

31-Dec-65

31-Mar-66

30-Jun-66

30-Sep-66

31-Dec-66

31-Mar-67

30-Jun-67

30-Sep-67

31-Dec-67

31-Mar-68

30-Jun-68

30-Sep-68

31-Dec-68

31-Mar-69

30-Jun-69

30-Sep-69

31-Dec-69

31-Mar-70

30-Jun-70

30-Sep-70

31-Dec-70

31-Mar-71

30-Jun-71

30-Sep-71

Source: Census Bureau; CoStar. Current totals are annualized based on prior years. As of November 2016

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Multifamily Single Family Change in Households

Total New Housing Construction (000s of Housing Units) and Change in Households

P. 36




31-Mar-65

30-Jun-65

30-Sep-65

31-Dec-65

31-Mar-66

30-Jun-66

30-Sep-66

31-Dec-66

31-Mar-67

30-Jun-67

30-Sep-67

31-Dec-67

31-Mar-68

30-Jun-68

30-Sep-68

31-Dec-68

31-Mar-69

30-Jun-69

30-Sep-69

31-Dec-69

31-Mar-70

30-Jun-70

30-Sep-70

31-Dec-70

31-Mar-71

30-Jun-71

30-Sep-71

Source: Census Bureau; CoStar. As of November 2016

(4,000)

(3,000)

(2,000)

(1,000)

0

1,000

2,000

3,000

4,000

1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Trailing 5-Year Housing Construction less Household Formation

Too much housing relative to household formation over previous 5 years

Not enough housing relative to household formation over previous 5 years

P. 37



Apartment Market Fundamentals

P. 38



Homeownership Ticked Up In The Third Quarter

60

60

60

60

61

61

61

61

62

62

62

62

63

63

63

63

64

64

64

64

65

65

65

65

66

66

Sources: Moody's Analytics; U.S. Census Bureau (CPS/HVS); CoStar Portfolio Strategy As of 16Q3

30

32

34

36

38

40

42

44

46

60%

61%

62%

63%

64%

65%

66%

67%

68%

69%

70%

94 96 98 00 02 04 06 08 10 12 14 16

Renter Households U.S. HO Rate

Homeownership Rate Renter Occupied Households (Millions)

H.O. Rate in 2004 Peak : 69.2%2016 Q3 H.O. Rate : 63.5%

Increase in Renter HH's : 10.3MIncrease due to HH Formation: 3.5M

Increase due to Change in H.O. Rate: 6.8M

P. 39



Today’s Renters Likely To Have Gray Hair

25-34

35-44

45-54

55-64

65-74

75+

Source: Housing Vacancy Survey Census Bureau; CoStar Portfolio Strategy As of 2015

0

2

4

6

8

10

12

25-34 35-44 45-54 55-64 65-74 75+

2006 2015

1.2 mil.Households

Renter Households By Age Cohort (Millions)

2.1 mil.Households

1.4 mil.Households

1.1 mil.Households

2.0 milHouseholds

450 ths.Households

P. 40



Potential Upside Demand For Institutional Landlords?

Renter-occupied housing units:

41423632

114271804

Renter HouseholdsSingle Family or Non-CRE

2185843055.1%

Sources: U.S. Census ACS Survey; CoStar Portfolio Strategy As of 2015

55.1%

44.9%

20%

30%

40%

50%

60%

70%

0

5

10

15

20

25

Single Family or Non-CRE 5+ Units

Renter Occupied Households (Millions) % Of Renter Occupied

# Of Renter Households By Unit Type % Of All Renter Households By Unit Type

P. 41



Petula Clark Was Right: “Downtown”….

CBD

Urban

Suburban

Sources: Neustar; CoStar Portfolio Strategy As of 16Q4

**Analysis limited to National Index (54 major metros)

CBDSecondary Core

Urban

Prime Suburban

Suburban

(1.0%)

(0.8%)

(0.6%)

(0.4%)

(0.2%)

0.0%

0.2%

0.4%

0.6%

4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%

Change In Share Of Renter Households (2010-16Q4)

Percentage Growth Of Renter Households (2010-16Q4)

Bu

bb

leS

ize

De

no

tes

# O

f R

en

ter

Ho

us

eh

old

s In

1

6Q

4

P. 42



The National Market Is Still Quite Healthy

90

90

90

90

91

91

91

91

92

92

92

92

93

93

93

93

94

94

94

94

95

95

95

95

96

96

96

96

Source: CoStar Portfolio Strategy As of 16Q3

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

0

10

20

30

40

50

60

70

80

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Demand Change (Q/Q) Supply Change (Q/Q) Vacancy Historical Avg Vacancy (2001-2016)

Demand & Supply (000s Units) Vacancy

P. 43



National Apartment Supply (54 Largest U.S. Metros)

00010203040506070809101112131415161718192021


0

50,000

100,000

150,000

200,000

250,000

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

Supply Change Y/Y Historical Average 2001-16

Supply (000s)

00010203040506070809101112131415161718192021


0

50,000

100,000

150,000

200,000

250,000

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

Tier I Tier II Tiers III & IV Historical Average 2001-16

Supply (000s)

P. 44



Supply Growth Snapshot (16Q3-17Q4)

Rank1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25


0%

1%

2%

3%

4%

5%

6%

7%

8%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Ne

w Y

ork

Da

llas

Ho

usto

n

Los A

ngele

s

Washin

gto

n, D

C

Sea

ttle

Atlan

ta

De

nver

Bosto

n

Ch

icago

Austin

Ch

arlotte

Na

shvill

e

Mia

mi

San

An

tonio

Ora

ng

e C

ounty

Tam

pa

Pho

enix

Kan

sas C

ity

Port

land,

OR

San

Jose

Fort

Laud

erd

ale

San

Fra

ncis

co

Orlando

Co

lum

bus

Completions As A % Of InventorySouth East Midwest West

New Supply (As % of Inventory)New Supply (Units)

P. 45



Does Los Angeles Need More Supply?

1

2

3

4

5

6

7

8

9

10

xx


0%

2%

4%

6%

8%

10%

12%

2012 2013 2014 2015 2016 2017

Cumulative Supply Growth

Memphis

Sacramento

National Index

Inland EmpireLos Angeles

Las Vegas

Detroit

East BayCleveland

P. 46



Lease Up Takes Time

3/31/20006/30/20009/30/2000

12/31/20003/31/20016/30/20019/30/2001

12/31/20013/31/20026/30/20029/30/2002

12/31/20023/31/20036/30/20039/30/2003

12/31/20033/31/20046/30/20049/30/2004

12/31/20043/31/20056/30/20059/30/2005

12/31/20053/31/20066/30/20069/30/2006

12/31/2006


3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

08 09 10 11 12 13 14 15 16

Overall Vacancy 4 & 5 Star 3 Star 1 & 2 Star

Vacancy

P. 47



Market Scorecard: Year-Over-Year Vacancy Change

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27


*Historical Average Since 2001

(150)

(100)

(50)

0

50

100

150

200

Salt L

ake C

ity

San

An

tonio

Ha

rtfo

rdS

an

Die

go

Long I

sla

nd

Min

nea

polis

Orlando

Sea

ttle

Bosto

nIn

dia

na

polis

San

Jose

De

nver

Da

llas -

FW

No

rthern

NJ

Sacra

mento

Ho

nolu

luR

ichm

ond

Austin

Tam

pa

Co

lum

bus O

HK

an

sas C

ity

Pho

enix

De

troit

Ra

leig

hN

ew

York

Ne

w O

rlean

sC

levela

nd

Mia

mi

Cin

cin

nati

Jacksonvill

eS

tam

ford

Las V

egas

Inla

nd E

mpire

Atlan

taW

ashin

gto

n, D

CE

ast

Bay

No

rfolk

Ora

ng

e C

ounty

Los A

ngele

sC

harlotte

Sain

t Louis

Milw

aukee

Phila

delp

hia

Mem

phis

Ch

icago

San

Fra

ncis

co

Na

shvill

eB

altim

ore

Pitts

burg

hP

ort

land O

RF

ort

Laud

erd

ale

Palm

Be

ach

Okla

hom

a C

ity

Ho

usto

n

Below Historical Avg. Above Historical Avg.

One Year Vacancy Change (BPS)

P. 48



High Supply Growth* Submarkets Have More Coming

30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4


0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

NEWY - Jersey City Waterfront

DALL - Plano

AUST - South

KANS - Johnson County KS

HOUS - Cinco Ranch

DALL - East Dallas

RALE - Central Raleigh

NEWY - Midtown West

HOUS - Northwest Houston

DALL - Farmers Branch/Addison

HOUS - Briar Forest/West Memorial

LOSA - Downtown Los Angeles

SANA - Northwest Side

NASH - West End/CBD

ATLA - Downtown/Midtown

DALL - Uptown/Park Cities

DENV - Downtown/Cherry Creek

ATLA - Buckhead-Brookhaven

HOUS - Neartown/River Oaks

CHIC - Downtown Chicago

Units Delivered Units Under Construction

Units Delivered And Under Construction

*Units Delivered 14Q4-16Q3, Under Construction As of 16Q3

P. 49



Largest Vacancy Changes By Submarket (Y/O/Y)

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1


*Includes submarkets with at least 5,000 units.

3.1%

3.2%

3.3%

3.3%

3.4%

3.4%

3.4%

3.4%

3.6%

3.7%

4.0%

4.1%

4.2%

4.5%

5.2%

5.7%

6.5%

6.9%

10.1%

10.1%

0% 5% 10% 15%

BALT - Harford County

PITT - Central Pittsburgh

WASH - Reston-Herndon Corridor

HOUS - Pearland

BOST - Quincy/Milton/Randolph

SEAT - Lake Union

AUST - Southeast

HOUS - Westchase/Woodlake

NEWY - Staten Island

HOUS - Alief

PALM - Boca Raton

CHIC - Downtown Chicago

OKLA - Central Oklahoma City

BALT - North Baltimore City

HOUS - Greenspoint/IAH Airport

CHAR - Southpark/Myers Park

SANF - South Of Market

NASH - West End/CBD

PHIL - Art Museum

WASH - Southwest/Navy Yard

(3.3%)

(3.3%)

(3.4%)

(3.5%)

(3.5%)

(3.7%)

(3.7%)

(3.8%)

(4.0%)

(4.1%)

(4.2%)

(4.6%)

(4.6%)

(4.7%)

(4.8%)

(5.2%)

(6.5%)

(7.9%)

(8.0%)

(9.1%)

(15%) (10%) (5%) 0%

DALL - Allen/McKinney

MIAM - Coral Gables

DENV - Highlands/Lone Tree

COLU - Downtown

AUST - Downtown/University

WASH - Ashburn/Sterling

BOST- Harvard/Cambridge

WASH - Falls Church/Vienna

SEAT - Kirkland

BOST - Everett/Malden

ORLA - Osceola County

NEWO - St Tammany Parish

WASH - H Street/NoMa

ATLA - Buckhead-Brookhaven

DENV - DTC/Southeast Corridor

ATLA - Cherokee County

HOUS - Cinco Ranch

SAND - Downtown

OKLA - Moore

SANJ - North San Jose

Largest Vacancy Increase Largest Vacancy Decrease

P. 50



Rents

P. 51



National Rent Trends

ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54ZPPR54

Source: CoStar As of 2016Q3

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

$1,000

$1,050

$1,100

$1,150

$1,200

$1,250

$1,300

$1,350

$1,400

$1,450

$1,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year-over-Year Same Store Rent Change National Same-Store Rent Level

Same-Store Rent Level Year-Over-Year Same-Store Rent Change

P. 52



What’s The Rent in This Building?

1111111111111111111111111111111

Source: CoStar. Property ID 4691943 As of March 2016

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/15 11/15 12/15 1/16 2/16 3/16

Individual Rent Observations by Model Type

Rent / SF

P. 53



What’s The Rent In This Building?

1/1/20151/2/20151/3/20151/4/20151/5/20151/6/20151/7/20151/8/20151/9/2015

1/10/20151/11/20151/12/20151/13/20151/14/20151/15/20151/16/20151/17/20151/18/20151/19/20151/20/20151/21/20151/22/20151/23/20151/24/20151/25/20151/26/20151/27/20151/28/20151/29/20151/30/20151/31/2015


$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/15 11/15 12/15 1/16 2/16 3/16


Rent / SF

P. 54



How To Make A Same-Store Rent Series

— Interpolate between data points

— Assume rents followed building—or market—trend before first datapoint and after last datapoint

— Estimate rents in models that don’t have ANY data

P. 55



Estimating Rent Levels: CoStar Relative Rent Matrix

National

Source: CoStar As of 2015Q4

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

0/1

1/1

1/2

2/1

2/2

2/3

3/1

3/2

3/3

4/2

4/3

National: 3 Star National: 4 & 5 Star

P. 56



Relationship of Rents at Unit Type to Each Other

55 potential coefficients to estimate(1 bed 1 bath to 1 bed 2 bath, etc.)

Studio1 Bed1 Bath

1 Bed2+ Bath

2 Bed1 Bath

2 Bed2 Bath

2 Bed3+ Bath

3 Bed1 Bath

3 Bed2 Bath

3 Bed3+ Bath

4 Bed2 Bath

4 Bed3+ Bath

Possible Coefficients between all unit types

P. 57



Model Another Number and Estimate Based on That

11 potential coefficients to estimate

Studio1 Bed1 Bath

1 Bed2+ Bath

2 Bed1 Bath

2 Bed2 Bath

2 Bed3+ Bath

3 Bed1 Bath

3 Bed2 Bath

3 Bed3+ Bath

4 Bed2 Bath

4 Bed3+ Bath

µ

P. 58



Example: Estimating a Unit Type Which Has No Data

The unit types that we observe are used to predict µ, based on theirobserved coefficients

1 Bed1 Bath

1 Bed2+ Bath

2 Bed1 Bath

2 Bed2 Bath

2 Bed3+ Bath

µ

µ is used to predict the remaining unit type, based on its predicted coefficient, from the submarket-slice

P. 59



Equations for µ, the Coefficients, and the Estimates

P. 60



1111111111111111111111111111111


$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/15 11/15 12/15 1/16 2/16 3/16


Rent / SF 1111111111111111111111111111111

What’s The Rent in This Building?

P. 61



Top 20 Rent Growth Markets

SACRSEATINLASALTDURHLASVATLAORANPHOENASHTAMPPORTDALLSANDLOSAORLARALELONGMEMPDETRCHARMINNCOLUCINCKANSINDIFORTJACKRICHEASTNORT

Source: CoStar As of November 2016

9.7%

7.5%7.0%

6.5% 6.3%5.9% 5.8% 5.7% 5.7% 5.5% 5.3% 5.2% 5.2% 5.1% 5.0%

4.7% 4.7% 4.4% 4.3% 4.1%

0%

2%

4%

6%

8%

10%

12%

Sacra

mento

Sea

ttle

Inla

nd E

mpire

Salt L

ake C

ity

Du

rham

Las V

egas

Atlan

ta

Ora

ng

e C

ounty

Pho

enix

Na

shvill

e

Tam

pa

Port

land O

R

Da

llas -

Fort

Wort

h

San

Die

go

Los A

ngele

s

Orlando

Ra

leig

h

Long I

sla

nd

Mem

phis

De

troit

Year-Over-Year Same-Store Rent Change, 2015Q3 - 2016Q3

P. 62



Sacramento Rent Data

AR Data

PropertyID

841302

1593865

4062347

4115560

7761475

4411690

7761475

7761475

4411690

4062003

7762534

4106521

4115560

4683162

7761475

7762534

5897524

5897524

4341184

850078

850078

7768831

7761670

7762467

742121

5881201

4494520

1593865


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2011 2012 2013 2014 2015 2016

Rents in Outer Carmichael/Citrus Heights Submarket

CoStar Research collects data by actively reaching out to communities

P. 63




AR Data

PropertyID

841302

1593865

4062347

4115560

7761475

4411690

7761475

7761475

4411690

4062003

7762534

4106521

4115560

4683162

7761475

7762534

5897524

5897524

4341184

850078

850078

7768831

7761670

7762467

742121

5881201

4494520

1593865


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2011 2012 2013 2014 2015 2016


Community Callers collect rent information as potential renters

P. 64




AR Data

PropertyID

841302

1593865

4062347

4115560

7761475

4411690

7761475

7761475

4411690

4062003

7762534

4106521

4115560

4683162

7761475

7762534

5897524

5897524

4341184

850078

850078

7768831

7761670

7762467

742121

5881201

4494520

1593865


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2011 2012 2013 2014 2015 2016


Automated Data Collection uses web scraping technology to collect high-frequency rent observations

P. 65




P. 66



Bottom 20 Rent Growth Markets

MIAMHONOMILWPALMSANASTLODENVBOSTNEWYNORFPITTWASHSTAMHARTBALTNEWOSANJOKLAHOUSSANF

CHICCLEVAUSTPHILNORTEASTRICHJACKFORTINDI


2.8% 2.8% 2.7% 2.7%2.5% 2.4% 2.3%

2.1% 2.1% 2.0%1.9%

1.6%1.4% 1.3% 1.3%

-0.1% -0.2% -0.3%

-0.7%

-1.5%(2%)

(1%)

0%

1%

2%

3%

4%

Mia

mi

Ho

nolu

lu

Milw

aukee

Palm

Be

ach C

ounty

San

An

tonio

Sain

t Louis

De

nver

Bosto

n

Ne

w Y

ork

No

rfolk

Pitts

burg

h

Washin

gto

n -

NoV

A -

MD

Sta

mfo

rd

Ha

rtfo

rd

Baltim

ore

Ne

w O

rlean

s

San

Jose

Okla

hom

a C

ity

Ho

usto

n

San

Fra

ncis

co

Year-Over-Year Same-Store Rent Change, 2015Q3 - 2016Q3

P. 67



San Francisco Rent Data

P. 68



Houston Rent Data

P. 69



Change in Rent Growth

SANFSANJEASTPORTDENVHOUSPALMBOSTAUSTORLA

ZPPR54

INLANORFMINNDETRLONGORANMILWINDISALTMEMP


(4%)

(2%)

0%

2%

4%

6%

8%

10%

12%

14%

San

Fra

ncis

co

San

Jose

East

Bay

Port

land O

R

De

nver

Ho

usto

n

Palm

Be

ach C

ounty

Bosto

n

Austin

Orlando

Na

tional In

dex

Inla

nd E

mpire

No

rfolk

Min

nea

polis

De

troit

Long I

sla

nd

Ora

ng

e C

ounty

Milw

aukee

India

na

polis

Salt L

ake C

ity

Mem

phis

Change in Same-Store Rent Growth, 2014Q3—2015Q3 v. 2015Q3—2016Q3

Markets where rent growth has slowed the most Markets where rent growth has slowed the least

P. 70



Capital Markets

P. 71



Sales Volume Last Four Quarters Remains Strong

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

previous

Y/Y Change

Source: CoStar Group As of 16Q3

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Hospitality Industrial Office Multi-Family Retail

Sales Volume (Billions)

Sales Volume Y/Y Change

Y/Y Change In Sales Volume

P. 72



Investors Continue To Flock To Apartment

Atlanta

Austin

Baltimore

Boston

Charlotte

Chicago

Cincinnati

Cleveland

Columbus OH

Dallas - FW

Denver

Detroit

East Bay

Hartford

Honolulu

Houston

Indianapolis

Inland Empire

Jacksonville

Kansas City

Las Vegas

Long Island

Los Angeles

Memphis

Miami

Milwaukee

Minneapolis

Nashville


*Apartment share of commercial property sales including apartment, light industrial/light manufacturing, logistics, office, and retail properties.

Baltimore

Boston

Charlotte

Hartford

Long Island

New York

Norfolk

Northern NJ

Philadelphia

Pittsburgh

Raleigh

RichmondStamford

Washington, DC

Atlanta

Austin

Dallas - FW

Fort LauderdaleHoustonJacksonville

Memphis

Miami

Nashville

New Orleans

Oklahoma City

Orlando

Palm Beach

San Antonio

Tampa

Chicago

Cincinnati

Cleveland

Columbus OH

Detroit

Indianapolis

Kansas City

Milwaukee

Minneapolis

Saint Louis

Denver

East Bay

Honolulu

Inland Empire

Las Vegas

Los Angeles

Orange County

PhoenixPortland OR

Sacramento

Salt Lake City

San Diego

San Francisco

San Jose

Seattle

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65%

East South Midwest West

2015Q4-2016Q3 Apartment Share

2006Q1-2015Q3 Apartment Share

P. 73



Are Apartment Capital Markets Peaking?

67

66

65

64

63

62

61

60

59

58

57

56

55

54

53

52

51

50

49

48

47

46

45

44

43

42

41

40


0

1

2

3

4

5

6

7

8

9

$0

$10

$20

$30

$40

$50

$60

05 06 07 08 09 10 11 12 13 14 15 16

Sales Volume (Billions)

Quarterly Sales Volume Number Of Buildings Sold

Number Of Buildings Sold (000s)

P. 74



Sustained Price Growth Across All Regions

07

07

07

07

08

08

08

08

09

09

09

09

10

10

10

10

11

11

11

11

12

12

12


$0

$50,000

$100,000

$150,000

$200,000

$250,000

07 08 09 10 11 12 13 14 15 16

Price Per Unit (Four-Quarter Rolling Average)

East South Midwest West National Index

P. 75



Recent Price Appreciation Strongest In West Coast Metros

Cleveland

Long Island

Miami

Palm Beach

Hartford

Denver

Honolulu

Las Vegas

Phoenix

San Jose

East Bay

Richmond

Jacksonville

Raleigh

Austin

Baltimore

San Diego

Charlotte

Portland OR

Columbus OH

Nashville

Northern NJ

Minneapolis


(40%)

(20%)

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Y/Y Price Growth

South East Midwest West

DecreaseIncrease

P. 76



Premium For Newer Assets Varies By Metro

Cleveland

Chicago

Memphis

Saint Louis

Milwaukee

Kansas City

Northern NJ

Boston

Nashville

Jacksonville

Indianapolis

Tampa

Pittsburgh

Cincinnati

Minneapolis

Charlotte

Philadelphia

Houston

San Diego

Palm Beach

Seattle

Phoenix

San Antonio

Hartford

Dallas - FW


$0

$125

$250

$375

$500

$625

$750

0%

50%

100%

150%

200%

250%

300%

Cle

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Mem

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Premium

Built 2000-16 Built 1970-99 Premium

Average Price Per Unit (000s)

P. 77



Select Top Multifamily Deals – 3Q 2016

Savoy Park

New York, NY

A joint venture comprised of L&M

Development Partners and Savanna sold

the 1,790-unit apartment community to

Fairstead Capital for $315 Million or

$176K/unit.

LIV Apartments

Bellevue, WA

Goodman Real Estate, Inc. sold the 451-

unit apartment community to Kennedy-

Wilson Properties, Ltd. for $172 Million or

$381K/unit.

Cap Rate: 4.7%

Axion Tustin

Tustin, CA

AvalonBay Communities, Inc. sold

the 628- unit community to Raintree

Partners for $163.55 Million or

$260K/unit.

Cap Rate: 4.94%

The Residence Buckhead Atlanta

Atlanta, GA

Oliver McMillan sold the 370-unit

community to Simpson Housing for

$136.5 Million or $369K/unit.

Pro-Forma Cap Rate: 5.6%

Century Summerfield @ Morgan Metro

Landover, MD

Camden Property Trust sold the 478-unit

community to Centennial Holding

Company, LLC for $110 Million or

$230K/unit.

Cap Rate: 6%

One East Delaware

Chicago, IL

Waterton Associates, LLC sold the 306-

unit community to a joint venture

comprised of Golub & Company and

Alcion Ventures for $146 Million or

$477K/unit.

Cap Rate: 4.75%

P. 78



© Copyright 2016 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, the following information includes projections that are based on various assumptions by CoStar concerning future events and circumstances, as well as historical and current data maintained in CoStar’s database. Actual results may vary from the projections presented. The information in this presentation is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of merchantability and fitness for a particular purpose. Features shown in this presentation may require additional subscriptions.

P. 79

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