ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS

SEPTEMBER 2017

ATLANTA GROWTH STATISTICSSUMMARY - AS OF Q2 2017

2

9%+POPULATION GROW TH

2010-2016

MILLENNIALS MIGRATING TO

ATLANTA 2010-2016

138,000

ATLANTA, GA MSA POPULATION

5.75M

$480M$$ INVESTED IN VENTURE CAPITAL ENDEAVORS IN

ATLANTA, UP $263M FROM 2016

Y-O-Y EFFEC TIVE RENT GROW TH

5.8%

95.0%OCCUPANCY RATE

INVENTORY (TOTAL RENTAL UNITS)480,860

ANNUAL JOB GROW TH (Q2 2016 TO Q2 2017)

3.2%

9.3 JOBSCREATED FOR EACH MULTIFAMILY UNIT

PERMIT TED

DEVELOPMENT PIPELINE - MAJOR BUSINESS DISTRICTS

85

85

85

85

85985

285

285

285

285

285

285

75

27575

20

20

20

20

41

19

120

278

78

92

23

236

13

155

8

70

6 23

29

278 138

155

81

81

20 78

11

11

41

78

29

29

211

410

154

400

ATLANTA

MARIETTA

POWDERSPRINGS

MABLETON

DOUGLASVILLE

CAMBELLTON

PALMETTO

UNION CITY

JONESBORO

MORROW

STOCKBRIDGE

COVINGTON

JERSEY

SOCIALCIRCLE

NEWBORN

LOGANVILLE

SNELLVILLE

STONEMOUNTAIN

LITHONIA

GRAYSON

FAIRBURN

ACWORTH

BROOKHAVEN

SANDY SPRINGS

ALPHARETTA

ROSWELLJOHNS CREEK

MONROE

BETHLEHEM

RUSSELL

WINDER

AUBURN

HOSCHTON

LAWRENCEVILLE

WESTMIDTOWN

SMYRNA

BUCKHEAD

EMORY/CDC

OLD FOURTHWARD INMAN

PARK

GRANTPARK

GLENWOODPARK

ATLANTA

MARIETTA

POWDERSPRINGS

MABLETON

DOUGLASVILLE

CAMBELLTON

PALMETTO

UNION CITY

JONESBORO

MORROW

STOCKBRIDGE

COVINGTON

JERSEY

SOCIALCIRCLE

NEWBORN

LOGANVILLE

SNELLVILLE

STONEMOUNTAIN

LITHONIA

GRAYSON

FAIRBURN

ACWORTH

BROOKHAVEN

SANDY SPRINGS

ALPHARETTA

ROSWELLJOHNS CREEK

MONROE

BETHLEHEM

RUSSELL

WINDER

AUBURN

HOSCHTON

LAWRENCEVILLE

WESTMIDTOWN

SMYRNA

BUCKHEAD

EMORY/CDC

OLD FOURTHWARD INMAN

PARK

GRANTPARK

GLENWOODPARK

CUMBERLAND

BUCKHEAD

PERIMETER

NORTHFULTON

GWINNETTCOUNTY

EMORY/DECATUR

DOWNTOWN

MIDTOWN

CUMBERLAND

BUCKHEAD

PERIMETER

NORTHFULTON

GWINNETTCOUNTY

EMORY/DECATUR

DOWNTOWN

MIDTOWN

(COBB COUNTY)

EAST SIDETower - 207 unitsWrap - 865 units

W. MIDTOWNWrap - 470 units

LINDBERGHWrap - 682 units

PERIMETERWrap - 2,481 units

BUCKHEADTower - 3,805 units

Midrise - 1,228 units

CUMBERLANDWrap - 1,386 unitsGarden - 266 units

N. FULTONWrap - 444 units

Garden - 1,020 units

MIDTOWNTower - 5,460 units

Midrise - 1,165 units

8

DEVELOPMENT PIPELINE - MAJOR BUSINESS DISTRICTS

85

85

85

85

85985

285

285

285

285

285

285

75

27575

20

20

20

20

41

19

120

278

78

92

23

236

13

155

8

70

6 23

29

278 138

155

81

81

20 78

11

11

41

78

29

29

211

410

154

400

ATLANTA

MARIETTA

POWDERSPRINGS

MABLETON

DOUGLASVILLE

CAMBELLTON

PALMETTO

UNION CITY

JONESBORO

MORROW

STOCKBRIDGE

COVINGTON

JERSEY

SOCIALCIRCLE

NEWBORN

LOGANVILLE

SNELLVILLE

STONEMOUNTAIN

LITHONIA

GRAYSON

FAIRBURN

ACWORTH

BROOKHAVEN

SANDY SPRINGS

ALPHARETTA

ROSWELLJOHNS CREEK

MONROE

BETHLEHEM

RUSSELL

WINDER

AUBURN

HOSCHTON

LAWRENCEVILLE

WESTMIDTOWN

SMYRNA

BUCKHEAD

EMORY/CDC

OLD FOURTHWARD INMAN

PARK

GRANTPARK

GLENWOODPARK

ATLANTA

MARIETTA

POWDERSPRINGS

MABLETON

DOUGLASVILLE

CAMBELLTON

PALMETTO

UNION CITY

JONESBORO

MORROW

STOCKBRIDGE

COVINGTON

JERSEY

SOCIALCIRCLE

NEWBORN

LOGANVILLE

SNELLVILLE

STONEMOUNTAIN

LITHONIA

GRAYSON

FAIRBURN

ACWORTH

BROOKHAVEN

SANDY SPRINGS

ALPHARETTA

ROSWELLJOHNS CREEK

MONROE

BETHLEHEM

RUSSELL

WINDER

AUBURN

HOSCHTON

LAWRENCEVILLE

WESTMIDTOWN

SMYRNA

BUCKHEAD

EMORY/CDC

OLD FOURTHWARD INMAN

PARK

GRANTPARK

GLENWOODPARK

CUMBERLAND

BUCKHEAD

PERIMETER

NORTHFULTON

GWINNETTCOUNTY

EMORY/DECATUR

DOWNTOWN

MIDTOWN

CUMBERLAND

BUCKHEAD

PERIMETER

NORTHFULTON

GWINNETTCOUNTY

EMORY/DECATUR

DOWNTOWN

MIDTOWN

GWINNETTGarden - 2,272 units

OUTER BURBSGarden - 3,306 units

EMORY/DECATURWrap - 1,754 units

ATLANTA MARKET OVERVIEW AND TRENDS ANALYS IS 9

NORTH FULTON ECONOMIC DRIVERSWith more than 28 million square feet of office space (16 million SF of which is class A), the North Fulton office market covers one of the largest land masses among the various Atlanta central business districts, as office space is spread over the cities of Alpharetta, Roswell, Johns Creek, Milton and Cumming. With direct access off of GA-400, North Fulton has always been a leader in healthcare, technology and telecom. With office leasing activity picking up significantly in the first half of 2017, North Fulton saw move-ins topping 100,000 square feet at the end of June 2017. Recent leasing activity includes Jackson Healthcare’s 267K SF expansion at 2655 Northwinds Pkwy, SAIA Freight’s 78K SF renewal at 11465 Johns Creek, ADP’s 34K SF sub-lease at Royal Centre Three, and Spaces’ 33,181 Class A Lease at 8000 Avalon. The dynamic Avalon development (caption 1) has ignited a flurry of additional development activity in the North Fulton submarket. To answer the demand for new space, developers continue to work on plans that will enable construction of millions of square feet of new office space, hotels, shops and restaurants. High-profile development projects under construction or in the pipeline include:

Avalon Phase II (caption 2). Avalon’s second phase (a/k/a Boulevard East) opened in April 2017, with the addition of several new vendors including: Apple, Williams Sonoma, Pottery Barn, Levi’s, Jeni’s Ice Cream, Urban Outfitters, Lucky Brand, Scout & Molly’s, Boogaloos, Hammer Made, Brooks Brothers, Boardroom, Brine Seafood Shack, South Moon Under, MF Bar, District 3, Barley Garden Kitchen and Rumi’s Kitchen. The Boulevard East wing also features a 330-room boutique hotel and conference center, and 228K SF, nine-story brick and glass office tower (with Microsoft using the building for regional offices and a training center). A second, 10-story office tower - which would be the tallest building in Alpharetta - is also planned.

360 Tech Village (caption 3). At GA-400 and Haynes Bridge Road, Fuqua Development and TPA Group have proposed a 63-acre technology village of mid-rise brick buildings, street-level retail, bike paths and walking trails. The 15.5 acre site requires a rezoning from office and industrial uses to mixed-use zoning. Overall, 360 Tech Village would include 320 apartments, 167 for sale units, 55,500 square feet of retail/restaurant use, 664,400 square feet of office space, and a 200- room hotel. City planning staff has recommended approval, pending conditions including rental units that must have first-class amenities and bicycle connections throughout the site. Fuqua and TPA will also be required to work with MARTA to add the project to city bus routes.

Northwinds (caption 4). After 20 years of work by master developer Pope & Land, the Northwinds project (located at the NW corner of Haynes Bridge Road and GA 400), was finally successful in acquiring the direct interchange access rights to GA 400 from GDOT in early 2017. Pope & Land is looking to add up to 140 apartments (which would be built by Pollack Shores), to its 24-acre Northwinds project - which, like 360 Tech Village, will be. In addition to the multi-family component, Northwinds Summit will contain 1.2 million+ square feet of office space, a 140-room hotel, retail and 32 single family residences configured in an urban, people-scaled, main street environment.

Jackson Healthcare Expansion (caption 5). Jackson Healthcare is expanding its 30-acre Alpharetta campus with a new 267,000 SF office building, and a 39,000 SF amenities building. The $100 million project will accommodate 1,400 new jobs for the staffing giant. The amenities building will feature a state-of-the-art gym, indoor pool, full-service restaurant and a host of other services. Ground-breaking began in Spring 2017.

4

1

2

3

10

5

76

In 2011, Alpharetta unveiled its much-anticipated plan for the redevelopment of 26-acres of property in the heart of the city’s historic Downtown district, creating a walkable gathering place for area residents and an attractive setting for businesses (akin to sister city Roswell’s Canton Street area). Alpharetta purchased the property surrounding its existing City Hall, and built the new Alpharetta City Hall, the new Fulton County Library, a 5-acre public park, a Town Green, a 445-space parking deck, and 125 on-street parking spaces.

In March 2017, The roughly $85 million second phase of Alpharetta City Center broke ground. An Atlanta-based development team of Morris & Fellows, MidCity Real Estate Partners and South City Partners recently completed the purchase of just over 4 acres. The project will include 105,000 square feet of restaurants and retail (Morris & Fellows); three acres of greenspace and gardens; 36,000 square feet of office (MidCity Real Estate Partners); and 168 apartments (South City Partners). The architecture team behind the City Center expansion includes Lew Oliver; The Preston Partnership; Smallwood, Reynolds, Stewart, Stewart and Associates; Placemaker Design and B+C Studio. Overall, the project will include 28 buildings built in a variety of architectural styles.

New tenants and retailers include: technology company Datascan, which is relocating its headquarters to the project and bringing 150 employees, popular Atlanta restaurant Highland Bakery, “boho chic” fashion and accessories store Spirited Boutique, Raw Juice Boutique,Lapeer (an upscale seafood restaurant), Restaurant Holmes (from chef Taylor Neary), Vin25 (a new wine-centric restaurant), Perched (Amanda Topper’s second clothing and gift boutique), Natural Body Spa and Shoppe, sweets franchise Kilwins (which serves ice cream, fudge, candy and caramels), Branches and Brooklynn’s (two women’s fashion and accessories stores from Jodi Tiberio), and Hemline (a contemporary women’s boutique known for its fashion-forward designer apparel, shoes and accessories).

DEVELOPMENT CASE STUDY - ALPHARETTA CITY CENTER (CAPTIONS 6 & 7)

ATLANTA MARKET OVERVIEW AND TRENDS ANALYS IS 11

ATLANTA MARKET OVERVIEW AND TRENDS ANALYS IS 25

MORAN & CO SOUTHEASTSEAN P. HENRY - MANAGING PARTNER- SOUTHEAST REGION

Sean is responsible for managing all marketing assignments and client relationships in the Southeastern Region. Sean and his team are based in Atlanta and will cover assignments from the Carolina’s to Florida. Sean has a strong record of accomplishment in the commercial real estate industry dating back to 1990. His background includes appraisal, acquisitions, disposi-tions and brokerage. As an acquisitions officer for both Lend Lease and General Investment and Development Company, Sean was responsible for sourcing, negotiating, managing due diligence and ultimately closing $1.5 Billion in multifamily acquisitions in 20 states.

Prior to joining Moran & Company, Sean was a multifamily broker for ARA for 10 years. During his tenure at ARA, Sean successfully closed $6 Billion in multifamily transactions with many of the top public and private pension plans, REITs, private capital and commingled discretionary funds. For the past 20 years, Sean has been focused exclusively on the multifamily transaction business. Sean graduated from Georgia Southern University in 1990 with a , B.B.A. in Finance. He has been an active participant in the Urban Land Institute (ULI) and the National Multi Housing Council (NMHC).

CURTIS W. WALKER - PARTNER - SOUTHEAST REGION

Curtis Walker is a Partner in the Southeast office and is responsible for brokerage activities in that region’s major MSA’s, including Atlanta, Charlotte, Raleigh, Nashville, Charleston, Bir-mingham, Mobile, Orlando, Tampa and Jacksonville.

Prior to joining the Moran team, Curtis was in charge of all acquisition activities for the Eastern Region of Wood Partners, where he directed the acquisition of approximately $750 million of multifamily investments. Prior to joining Wood Partners, he was the Senior Vice President of Trammell Crow Company, handling the development of multifamily in the Southeastern region. Over his 24 years of multifamily experience, Curtis has been involved with more than $4 billion in transactions including 40,000+ multifamily units. Curtis graduated from University of North Texas in 1980 with a B.B.A. He is an active participant in the National Multi Housing Council (NMHC) and Apartment Life.

JOEL K. SASSER– DIRECTOR – SOUTHEAST REGION

Joel joined Moran & Company as a Director in the Southeast office in June 2013, where he is assisting with the expansion of Moran’s brokerage operations in this important region of the country. Joel’s extensive real estate experience encompasses more than $3 billion in the devel-opment, construction and disposition of class ‘A’ multifamily projects throughout the Southeast and Texas. In his previous role with The Worthing Companies, Joel was responsible for the origi-nation of new developments, market and financial analysis, and other development-related activities including pre-construction, design specification, zoning, entitlement procurement and pre-construction marketing.

His specific areas of market expertise include Atlanta, Raleigh-Durham, Houston, Austin, Nash-ville and Charleston. Prior to his role as Development Director, Joel was the Regional Opera-tions Manager for Worthing, responsible for procuring new fee management assignments and overseeing due diligence and property takeovers. Joel is a 1999 graduate of the University of North Carolina at Chapel Hill, with a B.A. in Journalism and Mass Communication. Joel is a Certified Commercial Investment Member (CCIM).

26

THOMAS F. MORAN - MANAGING PARTNER

Thomas F. Moran is Moran & Company’s Managing Partner. He assists in structuring all joint venture and pre-sale opportunities marketed by Moran & Company as well as in the client contact for all major assignments. Tom received a BS from Marquette University in 1959 and a law degree from Georgetown University in 1962. Between 1963 and 1969, he worked for Arthur Andersen in Chicago as a member of the tax staff. From 1967-1969, he served as a tax manager. In 1969, Tom left Arthur Andersen to work for Walston & Company as an investment banker. There he worked in the Corporate Finance area specializing in the analysis of oil and gas, cattle feeding, and real estate. In 1971, Tom left Walston & Company to form his own firm, Moran & Company.

Tom received his C.P.A. from the State of Illinois in 1967 and passed the Illinois Bar in 1962. He sits on the Executive Board of the National Multifamily Housing Council. He is a member of the Illinois Bar Association and the American Institute of Certified Public Accountants. He is a licensed broker in Illinois, California, Kansas, Minnesota, Tennessee, Texas, and Georgia.

MARY ANN KING - MANAGING PARTNER - WEST COAST REGION

Mary Ann King is President of Moran & Company and is based in Moran & Company’s West Coast office. Mary Ann received a BA in Urban Studies in 1975 from Middlebury College in Middlebury, Vermont. She received a Masters Degree in City and Regional Planning with a specialization in Housing Development from Harvard University in Cambridge, Massachusetts in 1977 and a Masters of Management (MBA) with a major in Finance from Northwestern University in Evanston, Illinois in 1981. From 1977-1983, she worked in the Real Estate Department of Continental Bank. She was made an officer in 1979, an AVP in 1981 and a VP in 1983. From 1982-1983, she had responsibility for managing a team of lenders involved in underwriting condominium conversion loans nationwide.

In 1983, Mary Ann joined Moran & Company in Chicago as its Vice President of Acquisitions and Finance. From 1983-1993, she was responsible for identifying and financing joint venture development opportunities for Moran & Company’s investor clientele. In 1994, in response to demand from Moran & Company’s institutional clientele, Ms. King, became licensed as a broker and sold the first property ever listed by Moran & Company’s newly formed brokerage division. Mary Ann was instrumental in managing the underwriting and developing the collateral materials that have given Moran & Company its unsurpassed reputation in the sale of institutional quality apartment properties nationwide. Mary Ann is the Vice Chairman of the National Multi Housing Council and a member of its Executive Committee. She is also the Vice Chair at large for the Urban Land Institute’s blue Multifamily Council.

MORAN & CO. NATIONAL RESOURCESThe partners at Moran & Company are a unique set of very skilled real estate professionals, each of whom has worked at the highest levels of the principal side of the multifamily industry. This group’s collective experience in disposition, capitalization and advisory services provides a deep understanding of the needs of both sellers and buyers of core-quality real estate. The multifamily industry recognizes Moran & Company’s unparalleled client advocacy and wisdom, and frequently calls upon Moran & Company for industry leadership.

The National Multifamily Housing Council and Mortgage Bankers Association rely upon Tom Moran to frequently testify before Congress on behalf of the NMHC PAC, and to represent the interests of the entire multifamily industry. Mary Ann King is a former Chairman of the NMHC and current Urban Land Institute Trustee. Additional Moran & Company partners are also represented on not one, but three ULI leadership councils. These industry leadership roles provide all of the partners at Moran & Company with direct access to the top decision-makers in the multifamily space.

ATLANTA MARKET OVERVIEW AND TRENDS ANALYS IS 27

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