GREENVILLE - Colliers Multifamily Advisory Group...COLLIRS ITRATIOAL MULTIFAMILY ADVISORY GROUP P. 2 Multifamily Absorption and Supply Annual 4Q16 Annual Forecast 2013 2014 2015 Market

Accelerating success.

Research & Forecast Report

GREENVILLEQ4 2016 | Multifamily

RECENT SALES

Source: AXIOMetrics. RCA, CoStar

Market Survey Results and ForecastsSequential Month Annual

1Q16 2Q16 3Q16 4Q16 Dec-16 2014 2015 2016 2017F 2018F 2019F 2020F

Effective Rent Per Unit $881 $907 $908 $893 $887 $824 $868 $897 $919 $942 $971 $1,008

Per Sq. Ft $0.90 $0.93 $0.93 $0.92 $0.91 $0.85 $0.89 $0.92 $0.94 $0.97 $1.00 $1.03

Effective Rent Growth - Annually 4.4% 3.8% 2.8% 2.2% 1.3% 3.9% 5.3% 3.3% 2.4% 2.6% 3.1% 3.8%

Effective Rent Growth - Quarterly 0.8% 3.0% 0.1% -1.7%

Occupancy Rate 94.8% 95.4% 95.5% 94.5% 94.0% 95.2% 95.7% 95.1% 94.9% 94.6% 95.0% 95.3%

Occupancy Change - Annually -0.5% -0.8% -0.6% -0.8% -1.3% 0.0% 0.6% -0.7% -0.2% -0.3% 0.4% 0.3%

Occupancy Change - Quarterly -0.6% 0.6% 0.1% -1.0%

Economic Concessions Concession Value $-3.50 $-1.97 $-3.72 $-7.67 $-10.88 $-3.61 $-2.75

As a % of Asking Rent -0.4% -0.2% -0.4% -0.8% -1.2% -0.4% -0.3%

Date Property Name Address City Units Year Built Price in $ $/Units

Oct-16 South Ridge Apartments 823 S Church St Greenville 350 2015 68,000,000 194,286

Sep-16 Ashmore Bridge Estates 423 W Butler Rd Greenville 246 1998 27,886,168 113,358

Sep-16 Estates at Bellwood 7 Southpointe Dr Greenville 140 1995 16,861,031 120,436

Sep-16 Pleasantdale Apts 901 N Main St Mauldin 80 1971 3,800,000 47,500

Sep-16 Innovation Apartment Homes

75 Innovation Dr Greenville 336 2015 56,800,000 169,048

Sep-16 Signature Pointe 607 Emily Ln Piedmont 198 2005 17,999,991 90,909

Sep-16 Rosemont at Patewood 49 Orchard Park Dr Greenville 172 1984 15,350,000 89,244

Sep-16 Westwood Apts 1022 W Buford St Gaffney 166 1989 3,148,649 18,968

Aug-16 Magnolia Townhomes 201 E Blackstock Rd Spartanburg 98 1974 5,500,000 56,122

Aug-16 Edgemont Apartments 151 Mitchell Rd Greenville 144 1985 12,050,000 83,681

Jun-16 The Lexington Place Apartment Homes

130 Willow Forks Dr Simpsonville 144 2000 12,850,000 89,236

COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 2www.ColliersMultifamilyEast.com

Multifamily Absorption and Supply

Annual 4Q16 Annual Forecast

2013 2014 2015 Market National 2016 2017F 2018F 2019F 2020F

Total Units Absorbed (5) 697 862 1,458 336,518 1,458 1,385 883 803 568

New Supply 151 359 996 1,564 365,032 1,564 1,706 984 641 441

Inventory Growth 0.2% 0.7% 1.6% 3.1% 1.5% 3.1% 3.7% 2.6% 1.7% 1.1%

Market Employment and Permitting

Annual November-16 Annual Forecast

2013 2014 2015 Market National 2016 2017F 2018F 2019F 2020F

Employment (000s) 379.4 388.5 401.3 415.6 146,399.0 408.7 414.4 419.4 425.1 432.2

Job Gain (000s) 10.8 9.1 12.8 7.1 2,277.0 7.5 5.7 5.0 5.8 7.1

Job Growth (%) 2.9% 2.4% 3.3% 1.7% 1.6% 1.9% 1.4% 1.2% 1.4% 1.7%

Total Residential Permitting 3,487 4,770 5,814 4,801 1,087,532 5,588 5,897 4,550 3,816 4,022

Relative Change 26.1% 36.8% 21.9% -16.9% 1.9% -3.9% 5.5% -22.8% -16.1% 5.4%

Single Family Units Permitted 3,066 3,488 3,721 3,862 686,576

Relative Change 18.9% 13.8% 6.7% 13.2% 8.7%

Multifamily Units Permitted 401 1,272 2,043 887 371,009

Relative Change 137.3% 217.2% 60.6% -61.7% -8.6%

Multifamily as a % of Total 11.5% 26.7% 35.1% 18.5% 34.1%

Demand/Supply Ratio Job Gain / Total Residential Units Permitted 3.9 2.6 2.7 1.2 2.1 1.3 1.0 0.8 1.3 1.9

Job Gain / Single Family Units Permitted 4.2 3.0 3.7 2.1 3.6

Job Gain / Multifamily Units Permitted 64.2 22.8 10.0 3.1 5.6

SUPPLY AND DEMANDAccording to the Bureau of Labor Statistics, job growth in Greenville-Anderson-Mauldin, SC Metro Area was 1.7% in November 2016, reflecting 7,100 jobs added during a 12-month period. The metro job growth figure was above the national number of 1.6%.

Axiometrics forecasts Greenville-Anderson-Mauldin, SC Metro Area’s job growth to be 1.4% in 2017, with 5,653 jobs added. Job growth is expected to average 1.4% from 2018 to 2020, with an average of 5,950 jobs added each year.

On the supply side, permits for 1,198 multifamily units were issued in the 12 months ending in November 2016, down -845 units from the prior year’s sum. In terms of total residential housing, 5,429 units were permitted in the 12 months ending November 2016, a decrease of -385 units from the prior year’s total.


IDENTIFIED SUPPLYAs of October 9, 2016, Axiometrics has identified 998 apartment units scheduled for delivery in 2016, of which, 652 have been delivered. As a comparison, there were 1,597 apartment units delivered in 2015. Properties delivered to the market in the last 12 months have achieved an average asking rent of $1,125 per unit, or $1.17 per square foot. Effective rent has averaged $1,108, or $1.15 per square foot, resulting in an average concession value of $-16.75. As a comparison, existing properties in the market had an average asking rent of $869 per unit ($0.90 per square foot) and an average effective rent of $864 per unit, or $0.89 per square foot, in 3Q16. Concessions for existing properties averaged $-5.34.

Submarket Delivery Schedule

Pipeline Delivery Schedule Pipeline Lease Up Trend

Units Absorbed Asking Rent Effective Rent

Top Submarkets 2014 2015 2016 Total Totals PPM Per Unit PSF Per Unit PSF Central 291 291 259 20 $967 $1.01 $908 $0.96

Northwest 207 403 309 919 209 6 $1,423 $1.79 $1,360 $1.72

South Greenville County 103 520 894 1,517 569 12 $1,222 $1.19 $1,149 $1.11

Greenville-Anderson-Mauldin, SC 310 923 1,494 2,727 1,037 10 $1,254 $1.36 $1,184 $1.29

*Based on 2016 deliveries *Trend based on a trailing 12 month period

“We were extremely pleased with the East Region team and its ability to attract an incredible amount of interest in our 3 assets. The number of offers received and the end results exceeded our expectations. They have a talented group who was a pleasure to work with. Their performance stands out against any of the groups we work with nationally.”

Nels Billsten, Vice President | CORE Realty Holding Management


PIPELINE DETAIL# Name Status Owner Address Market Units1 South Ridge Lease Up Berkson Asset Management 823 S Church St SE Outer Greenville/Berea 3502 Haywood Reserve Lease Up Daniel Corporation 826 Old Airport Rd Eastside 2923 Velo Verdae Lease Up Arlington Properties 205 Verdae Blvd Pleasantburg 2624 West Village Lofts Lease Up Progressive Consultants, LLC 25 Draper St N Outer Greenville/Berea 1825 Main & Stone Lease Up The Beach Company 644 N Main St Downtown Greenville 2136 Highlands at Market Point Lease Up Brand Properties 30 Market Point Dr Pleasantburg 2157 Greenville Lofts Under Construction Arlington Properties 450 S Academy St Downtown Greenville 2158 Ellison on Broad Under Construction Proffitt Dixon Partners 212 E Broad St Downtown Greenville 2019 The Enclave Phase II Under Construction McCall Capital LLC 101 Enclave Paris Dr N Outer Greenville/Berea 17010 Mosby Poinsett Under Construction Middleburg Management, LLC 6001 Hampden Dr N Outer Greenville/Berea 24411 Springs at Laurens Road Under Construction Continental Properties Company,

Inc.1401 Laurens View Rd Outer Greenville/Mauldin 272

12 Main & Stone Phase II Under Construction The Beach Company 644 N Main St Downtown Greenville 8013 Ardmore at the Park Under Construction Ardmore Residential 805 Mauldin Rd Pleasantburg 35014 District West Apartments Under Construction Flournoy Companies 101 Reedy View Dr Downtown Greenville 36515 Link Apartments West End Under Construction Grubb Properties 25 River St Downtown Greenville 21516 Greenville Gateway Proposed Greenville Gateway Developers 400 N Church St Downtown Greenville 17617 Emerald Creek Proposed Edward Rose & Sons Fairforest Way &

Wenwood RdPleasantburg 330

18 Camperdown Multi-Family Proposed Centennial American Properties, LLC

Falls St Downtown Greenville 243

19 The West End Apartment Homes

Proposed Woodfield Investments 1100 S Main St West Greenville 271

20 Northpointe Proposed Central Realty Corporation 400 E Stone Ave Downtown Greenville 285Total Units 4,931

910

13

11

Key

Lease-Up

Under Construction

Proposed

17

2

63Downtown Greenville

Downtown Greenville

4

14

7

12

158

16

18

19

20

1

5


LEGACY AT SAND HILL | Columbia, SC

CHALLENGE: Significant prepayment penalty on the existing loan so buyer had to assume and put an additional supplemental loan on top. Capital Markets shifted and effected the supplemental loan proceeds after being under contract.

STRATEGY & RESULTS: The East Region team was the exclusive sales agent for Mesa Capital Partners. Our goal was to minimize exposure to the seller and generate the highest net number possible for them. We provided the clients with property marketing, and assisted through all negotiations, and due diligence up until closing. This is the second time in three years this team has sold this property, resulting in the highest price per unit trade in Columbia year to date.

CLIENT: Mesa Capital Partners UNITS: 240

OUR PROVEN TRACK RECORDRecent Closings

Greenhill Parish CrossingColumbia, SCUnits: 240

Villas at Spears CreekColumbia, SCUnits: 240

Legacy at SandhillColumbia, SCUnits: 240

Springtree ApartmentsColumbia, SCUnits: 152

WHO WE AREOne of the largest and most

experienced teams of multifamily

specialists in the industry

Units sold since 2011

33,500MORE THAN

Group gross transaction value in since 2011

$2.3B

Dedicated Multifamily Professionals & Advisors

50MORE THAN

Expansive geographic footprint

20COVERING OVER

STATES


WE CAN HELPAs an investor in multifamily properties, you need a firm that provides experience, broad reach and the ability to market an asset no matter how challenging the economic environment. You need a team that specializes in your market you need The East Region Multifamily Advisory Group.

Colliers International has one of the largest and most experienced teams in the industry, strategically located in key markets throughout North America. Our combination of market dominance, expertise, and singular focus, make us uniquely successful in helping our clients achieve their disposition objectives.

How are we able to bring together the skills and tools necessary to complete challenging assignments? Our East Region Multifamily Advisory Group is connected by purpose and focus. Our team is dedicated to sharing information on market opportunities, capital sources and buyers/sellers to achieve the best results for our clients.

www.ColliersMultifamilyEast.com

To learn more, scan this with a QR code reader or visit:

AT YOUR SERVICE

Brooks ColquittASSOCIATE | EAST REGION

CAROLINA’S MARKET SPECIALIST

[email protected] +1 704 409 9933

Woody MooreEXECUTIVE VICE PRESIDENT | SOUTH CAROLINA


Will MathewsPRINCIPAL | EAST REGION

INSTITUTIONAL CLIENT GROUP


Craig BrownASSOCIATE | EAST REGION


Documents

GREENVILLE - Colliers Multifamily Advisory Group...COLLIRS ITRATIOAL MULTIFAMILY ADVISORY GROUP P. 2 Multifamily Absorption and Supply Annual 4Q16 Annual Forecast 2013 2014 2015 Market