SAN ANTONIO

• San Antonio ranked #10 among “Best-Performing Large Cities of 2014”, up two spots from 2013 (Milken Institute, Jan ‘15)

• San Antonio ranked #4 among “Fastest Growing Cities” (U.S. Census Bureau, Nov ’14)

• San Antonio ranked #10 among “Best Cities for Future Job Growth” (Forbes, Jul ’14)

• San Antonio tops the list of preferred cities by millennials – young adults born between 1980 and 2000 (Forbes, Jul ’14)

• San Antonio ranked #16 among “Best Places to Do Business (Forbes, Jul ’14)

• San Antonio MSA in-migration of roughly 43,000 between Jul ‘12 and July ‘13 (USBLS, Mar ‘14)

• San Antonio ranked #5 among “Top 10 Fastest Growing Cities” based on population growth (U.S. Census Bureau, Mar ’14)

• San Antonio ranked #3 among “America’s New Tech Hot Spots” (Forbes, Jan ’14)

• San Antonio ranked #2 among “US Metro Areas with the Most Economic Momentum Going Into 2014” (Forbes, Dec ’13)

• San Antonio ranked #12 among “Best-Performing Large Cities of 2013”, up 10 spots from 2012 (Milken Institute, Dec ‘13)

• San Antonio ranked #20 out of 102 metropolitan areas in the On the Numbers Index (May ’13)

• San Antonio ranked #4 among “Top 12 American Boomtowns” (Bloomberg, Apr ’14)

• San Antonio ranked #9 among “America’s Fastest Growing Cities” (Forbes, Jan ‘13)

SAN ANTONIO ECONOMIC STRENGTH

CENTRAL TEXAS

Year Total Units New Supply Absorption Occupancy Occ. Growth Avg. Rental Rate Rent Growth

2002 106,072 1,813 1,988 92.32% 0.30% $619 -6.55%2003 105,980 2,106 1,671 91.81% -0.51% $635 2.58%2004 107,326 1,346 665 91.65% -0.16% $639 0.63%2005 111,295 3,969 4,591 91.46% -0.19% $626 -2.03%2006 113,839 2,544 1,522 92.03% 0.57% $646 3.19%2007 117,157 3,318 2,642 91.35% -0.68% $669 3.56%2008 120,401 3,244 881 90.59% -0.76% $678 1.35%2009 126,514 6,133 4,632 88.67% -1.92% $677 -0.15%2010 128,212 1,698 4,493 90.59% 1.92% $708 4.58%2011 128,910 698 1,606 92.01% 1.42% $737 4.10%2012 132,802 3,639 4,499 92.40% 0.39% $778 5.56%2013 138,375 5,466 3,594 91.30% -1.10% $806 3.60%2014 143,921 4,767 5,967 91.90% 0.60% $843 4.59%

San Antonio Historic Fundamentals

SAN ANTONIO HISTORICAL DATA

CENTRAL TEXAS

SAN ANTONIO OCCUPANCY AND RENTAL RATES - FOURTH QUARTER

AUSTIN OCCUPANCY AND RENTAL RATES ‐ 2014 FOURTH QUARTER

Class "A" 94.0% $1,115 $1.22Class "B" 93.5% $1,014 $1.09Class "C" 92.2% $689 $0.89

Class Occupancy Average Rent PSF

CLASSAverage Rent

Data Source: Austin Investor Interests

CENTRAL TEXAS

2009 6 6 12 $160M2010 7 14 21 $172M2011 12 20 32 $520M2012 14 46 60 $869M2013 16 49 65 $850M2014 27 41 68 $1.32B

Transactions and Sales VolumeYear

Class A Transactions

Class B/C Transactions

Total SalesTotal Sales Volume

SAN ANTONIO OVERVIEW: TRANSACTIONS - SALES VOLUME - CAP RATES

TRANSACTIONS AND SALES VOLUME

Urban Class "A" 5.00% ‐ 5.50%Suburban Class "A" 5.25% ‐ 5.75%

Class "B" 5.75% ‐ 6.75%Class "C" 6.75%+

Class Q4 2014

Cap RatesCAP RATES

CENTRAL TEXAS

SAN ANTONIO SUPPLY & DEMAND

$0.60

$0.65

$0.70

$0.75

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

0

1,000

2,000

3,000

4,000

5,000

6,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SAN ANTONIO HISTORICAL SUPPLY DATA

Units Built Absorption PSF Rents

Data Source: Austin Investor Interests

CENTRAL TEXAS

GENERATING NATIONAL AND TEXAS EXPOSURE

AUSTRALIA

CANADASEATTLE

PORTLAND

SACRAMENTO

SAN FRANCISCO KANSAS CITY

CHICAGO

DAYTON WASHINGTON DC

RICHMONDNORFOLK

RALEIGH-DURHAMCHARLOTTENASHVILLE

ATLANTA

JACKSONVILLE

ORLANDO

BOCA RATONTAMPA

BRAZIL

ISRAEL

BAHRAIN

TULSA

HOUSTONCENTRALTEXAS

IRVINE

PHOENIX

DENVER

DALLAS

COLUMBUS

• ARA Houston, Dallas, Austin & San Antonio are owned jointly = work as a team

- Drives enormous investor traffic to the ARA web page (TX is one of the most popular states for MF today)

- Houston/Dallas/Austin/San Antonio brokers direct investors to deals in each others markets

- More eyes and ears on your deal

• Texas team shares buyer database - we can utilize the bid list from all recent like/kind acquisitions

ARA Central Texas: Pat Jones, Andrew Shih, Matt Michelson, Andrew Childers, and Jim Young

ARA Houston: David Oelfke, Matt Rotan, David Wylie, and David Mitchell

ARA Dallas: Brian O’Boyle, Brian Murphy, and Brian O’Boyle Jr.

ARA EXPERTISE (2006 - 2014 MF SALES)• 2,200+ properties• $48,000,000,000+• $12,300,000,000 in 2014

NATIONAL EXPOSURE• 2nd in nation for multifamily sales• 25+ total offices nationwide• 100+ total brokers• #1 in market share in USA per broker• #2 in market share in USA total volume

ARA SPECIALTY PRACTICE GROUPS• Capital Markets• Student• Affordable• Manufactured Housing

CENTRAL TEXAS