QUARTERLY NEWSLETTER | Q1 19...Coworking office operators such as WeWork and Knotel are revolutionizing the use of real estate from a fixed asset to fluid space as a service. In just

180 Newport Center Dr. Suite 230 | Newport Beach, CA | 92660 | 949-640-0600 | www.twinrockpartners.com

IN THIS ISSUE:

Letter from CEO

TRP Market Overviews

QUARTERLY NEWSLETTER | Q1 19

Q1 | 18 www.twinrockpartners.com

QUARTERLY NEWSLETTER

Dear Friends of TwinRock,

“The pace of change and the threat of disruption creates tremendous opportunities.” - Steve Case, founder of

AOL, Revolution LLC, Case Foundation, Revolution Health Group

In business theory, disruptive innovation is one that creates a new market and value network. The disruptive

innovation accomplishes this by disrupting an existing market or network of entrenched, successful businesses

and replacing established market-leading firms, products and alliances with new ones.

In our first Quarterly Newsletter for 2019 we’ll take a closer look at how successful companies cope with

disruption while others fail, and the effect that disruption is having on investment.

The Innovator’s Dilemma

Although the word itself has existed for quite some time, the term disruption surfaced in the business world

thanks in large part to the book The Innovator’s Dilemma, authored by Clayton Christensen back in 1997.

In his book, Christensen introduced the idea of disruptive innovation. He used the phrase to describe two

events: First, how companies could meet the current needs of their customers. Secondly, how small companies

with little money could enter an established market and displace established companies – and in the process

pocketing their customers and cash flows - by creating an entirely new system.

Disruption is a 2-way street

Disruption goes both ways. In today’s business world you’re either doing the disrupting or getting disrupted. If a

company isn’t intentionally changing for the better, then it’s safe to say that at some point – and based on

Moore’s Law probably sooner rather than later – another company will come along and make that change for

them.

A recent article on disruption from Inc. observes:

"Right now, at this very moment, either your company is disrupting the marketplace, or you're actively being

disrupted. This isn't meant to be fear-based, but it's the reality of the situation. Between the pace at which

technology advances and the rate at which ideas are generated, disruption is truly a natural cause of the times.

If you're comfortable in your business, you need to be thinking about who knows you’re comfortable and how

they are planning to make you uncomfortable. There is a constant ebb and flow of disruption and being

disrupted."

http://www.twinrockpartners.com/



Why some companies are victims of disruption

Complacency (mixed with a little bit of arrogance) is the #1 reason why companies get disrupted.

Some companies refuse to adapt, fighting change tooth-and-nail, such as the entrenched taxi industry vs. Uber

and Lyft, or the hotel sector vs. Airbnb. Other times companies don’t see change coming or are simply too slow

to react, as with IBM taking +20 years to adapt to competition from Apple and Microsoft.

In addition to being complacent, five other reasons companies allow themselves to become victims of disruption

are:

• Technological innovation is intimidating or confusing

• Consumer behavior shifts before a business realizes change is taking place

• Lack of agility due to bureaucratic decision making

• Hiring people because they are “cost effective” vs. working with talent that can think creatively and

strategically

• Misalignment between executives where everyone is not on the same “innovation page”

How other companies disrupt themselves

Other companies would rather disrupt themselves then have somebody else do it for them. This proactive

approach to disruption not only allows established players to avoid being victims, but also gain entirely new

customer bases and create additional revenue streams.

Some of the ways that companies can disrupt themselves from within include:

• Making strategic decisions that are user-centric and customer-centric instead of company-centric

• Eliminating the mindset of scarcity and boosting the creative process by “going big or going home”

• Focusing on staying lean and mean by avoiding multiple layers of management and hiring in-house

experts allows change to be made on a dime

• Experimenting with different pricing models, messaging, and marketing to think outside the box

• Encouraging continuous employee education through webinars, conferences, and company-

sponsored resources to quickly discover what’s hot and what’s not

Disruptive events that are currently taking place as we speak

Regular readers of our weekly email articles may have already noticed that disruption has been a consistent

theme so far in 2019:




Disruptive innovations that are changing how time and space are used

Twelve years ago, Airbnb was founded as a couch-surfing business with no customers and no revenues. Today the company operates in almost every country around the world and was recently valued at $38 billion according to Forbes. Airbnb is helping to revolutionize the tourism industry and is battling the entrenched hotel industry head-on by applying the time-share concept to under-used living space to benefit both property owners and users. Uber recently went public and at the time of this writing has a market cap of just under $70 billion. Founded in

2009, Uber is a ride-hailing company operating in 60 countries and 400 cities around the world. Similar to the

way that Airbnb gives property owners a way to make money from unused living space, Uber allows vehicle

owners to earn income from unused auto time. The company is disrupting the entrenched taxi industry and

faces violent protests in some cities.

Coworking office operators such as WeWork and Knotel are revolutionizing the use of real estate from a fixed

asset to fluid space as a service. In just a few short years they have changed the way that tenants view and pay

for business office space, forcing property owners and management companies to become service providers

instead of collectors of rent. WeWork is now the largest private occupier of Manhattan office space with about

5.3 million square feet under lease which has been converted into coworking space.

How a 27 pound, $500 electric scooter is disrupting transit oriented development

Transit oriented development (TOD) has been rapidly growing in many major metro areas. Real estate

developers have been paying big premiums for land near mass transit locations for mixed-use projects.

Residents and businesses have been paying top dollar to locate near rapid transit stops to avoid highway

congestion and rush hour traffic.

But the TOD gravy train may soon be coming to an end thanks to companies such as Bird. The company provides shared electric scooters, bicycles, and shared transit vehicles that reduce the need for personal automobiles.

Along with Uber and Lyft, Bird is helping to reduce highway congestion and speed up travel times using

lightweight, inexpensive electric scooters that are friendly to the environment without resorting to billion dollar

TOD development. There’s no longer the same rationale for living near mass transit locations, which will likely

reduce the premium value currently placed on transit oriented development projects.

Why parking lot companies just can’t find the love

Investing in parking lots used to be one of the purest coupon clipper investments around, perhaps second only

to owning T-bills. But thanks to disruption, the safety of owning parking lots may soon be coming to an end.


https://www.forbes.com/sites/greatspeculations/2018/05/11/as-a-rare-profitable-unicorn-airbnb-appears-to-be-worth-at-least-38-billion/

https://www.bird.co/



Innovative transportation companies such as Uber, Lyft, and Bird have been steadily taking business away from

entrenched parking lot operators.

Ace Parking Management is one of the largest parking management companies in the country. A recent article

from the San Diego Union-Tribune reports that Ace Parking claims to be losing about 50% of its nightclub parking

business and 25% of its restaurant valet parking business to these new alternative transportation services.

Parking lot companies are finding it difficult to feel the love nowadays. Consumers adore ride-hailing companies

for the affordability and convenience. Municipalities are looking forward to replacing parking lots that generate

little tax revenue with property development that contributes more to the economy and the environment.

How blockchain and digital tokens are disrupting real estate investment

Blockchain is the underlying mechanism or “protocol” that makes digital currency like Bitcoin and

cryptocurrency work. Blockchain is also rapidly changing the way that real estate works.

The blockchain protocol is being used to verify data and transactions between two or more parties. It is making

data verification simpler, efficient, and more transparent while at the same time keeping private data safe and

secure. Some of the ways that blockchain is being used to disrupt and improve the real estate business include:

• Automating invoicing and payments, lease reconciliations, and the collection and analysis of big data

within multi-property portfolios

• Shortening the verification of ownership and lien searches from weeks to seconds because

blockchain data is immediately accessible and unchangeable

• Eliminating the need for costly title insurance and title company fees to dramatically reduce the cost

of every real estate transaction

• Removing the existing barriers of access to capital by using digital tokens to make fractional

ownership of investment real estate easy, affordable, and tradeable

It’s always better to be the disruptor

Disruption is a two-way street. Businesspeople today need to decide if they will willingly change and harness the

new opportunities that disruption offers or allow themselves to be disrupted by an upstart competitor.

When a business is big and successful it’s easy to become arrogant and complacent. Traditional office space

operators, the taxi and hotel industries, and parking lot operators are discovering the hard way what it feels like

to be the one getting disrupted instead of doing the disrupting.

Please stayed tuned to learn how TwinRock plans to disrupt commercial real estate in the coming weeks…


https://www.sandiegouniontribune.com/business/growth-development/sd-fi-ace-parking-uber-lyft-competition-20180222-story.html



We look forward to sharing our thoughts again in our next quarterly report. In the meantime, should you have

any questions, we look forward to hearing from you.

Very truly yours,

Alexander Philips

Chief Executive and Investment Officer


Oklahoma Oklahoma City & Tulsa





Oklahoma City Market

PREPARED BY

Alexander Philips

CEO & CIO

Multi-Family Market Report

MULTI-FAMILY MARKET REPORT

Market Key Statistics 2

Vacancy 3

Rent 5

Construction 9

Under Construction Properties 10

Sales 11

Sales Past 12 Months 12

Economy 14

Market Submarkets 17

Supply & Demand Trends 20

Vacancy & Rent 22

Sale Trends 24

Deliveries & Under Construction 26

Oklahoma City Multi-Family

5/22/2019Copyrighted report licensed to TwinRock Partners - 624086.

OverviewOklahoma City Multi-Family

12 Mo. Delivered Units

74912 Mo. Absorption Units

1,611Vacancy Rate

10.0%12 Mo. Asking Rent Growth

2.5%Optimism has spread throughout Oklahoma City, as themultifamily market continues to make positive strides.The local economy has regained its footing since the oilbust in 2015-16 and overall employment gains haveeclipsed national averages thanks to furtherdiversification in the employment base away from theenergy sector. As a result of this job growth, demand forapartments has increased and fundamentals are wellpositioned. Rents have surpassed levels prior to the oildownturn, and occupancies have continued to increase.

The economic picture remains bright, with the continuedinvestment of the MAPS (Metropolitan Area Projects)program’s revitalization of the urban core. Thisrenaissance will further improve infrastructure and shouldultimately attract more businesses and people to thearea, increasing the likelihood for multifamily demand.Investors have taken notice as sales volume eclipsed the$400 million mark for the second consecutive year, aidedby robust activity from out-of-state buyers.

KEY INDICATORS

Asking RentVacancy RateUnitsCurrent Quarter Effective RentAbsorption

UnitsDelivered Units

Under ConstrUnits

$1,0298.4%18,5494 & 5 Star $1,012 61 0 1,018

$7289.5%38,0623 Star $717 233 0 210

$62811.4%32,7451 & 2 Star $619 18 0 0

$76110.0%89,356Market $748 312 0 1,228

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

9.7%9.0%-1.1%Vacancy Change (YOY) 12.4% 2016 Q4 7.1% 2000 Q2

7897581,611Absorption Units 2,271 2013 Q3 (491) 2016 Q4

8511,057749Delivered Units 2,931 2015 Q3 14 2008 Q4

87820Demolished Units 941 2012 Q3 0 2019 Q1

1.2%1.6%2.5%Asking Rent Growth (YOY) 5.9% 2001 Q2 -2.9% 2010 Q1

1.3%1.5%3.9%Effective Rent Growth (YOY) 5.8% 2001 Q2 -2.9% 2010 Q1

N/A$223.5M$462 MSales Volume $478.1M 2018 Q1 $875.0K 2005 Q4


Page 2

VacancyOklahoma City Multi-Family

The story for Oklahoma City's multifamily market hasshifted recently, mirroring the health of the localeconomy. Several major energy employers haveresumed hiring after a couple of years of layoffs, and thelocal economy continues to add jobs, eclipsing thenational average at 2.4% year-over-year growth.Oklahoma City has continued to attract more non-energy employers to the area, helping to diversify thetenant base and adding more stability to the economy.As a result, more people have begun to flock to the city,and the unemployment rate has steadily declined.

Demand has returned to the metro as a result of thiscontinued job growth, causing vacancies to compress.Roughly 2,000 units were absorbed in 2018, eclipsingthe previous cycle high in 2014. However, several largeprojects are scheduled to deliver soon, which could placea strain on fundamentals in the near term. Mostdeliveries have been of the 4 & 5 Star designation,where demand has been most prevalent. TheDowntownOklahoma City Submarket has received alarge share of recently delivered units, and its

fundamentals have improved substantially. Vacancies inthe urban core have dropped nearly 500 basis pointssince its peak in late 2016 and rents have continued togrow.

Fundamentals have been tested in Oklahoma City thiscycle, mainly because of a large supply wave thatentered the market just as demand dropped off. A strongrecovery in the early post-recession years prompted aheavy development wave of around 6,000 units thatopened from 2014 to 2016. Vacancies expanded at arapid pace and increased by around 400 basis pointsduring that time.

This was the largest supply wave to hit the market inrecent memory. But construction was not the only factorbehind the vacancy increase. The energy industry is amajor source of employment in the metro, and oil pricesdropped, causing consolidations across several majoremployers, just as the new supply entered the market.As a result, demand dropped significantly during thoseyears.

ABSORPTION, NET DELIVERIES & VACANCY


Page 3

VacancyOklahoma City Multi-Family

VACANCY RATE

VACANCY BY BEDROOM


Page 4

RentOklahoma City Multi-Family

Rents have improved significantly over the past twoyears, expanding by about 3% during that time. Theincreased demand, coupled with the slowdown ofdevelopment since the beginning of 2017, has allowedlandlords to raise prices. The local economy hasimproved, and with job growth at healthy levels,multifamily communities have benefited, with 4 & 5 Starproperties faring the best. But to compete for renters, themost recently built properties are offering concessions,

such as one month free rent. Concessions are highest inDowntown Oklahoma City, where most recent deliverieshave occurred.

Rents saw the highest growth in the years prior to the oildownturn when gains averaged between 2-3%. Sincethen, it has been a slow return to metro norms asdemand persists.

DAILY ASKING RENT PER SF


Page 5


MARKET RENT PER UNIT & RENT GROWTH

MARKET RENT PER UNIT BY BEDROOM


Page 6


4 & 5 STAR EXPENSES PER SF (ANNUAL)

UtilitiesMgmt. InsuranceMarket / Cluster Taxes Other Total

Operating Expenses Capital Expenditures

Admin. Payroll Water Maint. Appliance Structural

Oklahoma City $0.82 $8.28$0.26$0.04$1.13$0.28$0.91$1.17$0.38$0.97$0.61 $1.71

Canadian County $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

Central Oklahoma… $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

Downtown Oklahom… $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

Edmond $0.81 $7.97$0.25$0.04$1.08$0.27$0.88$1.10$0.37$0.97$0.58 $1.62

Midwest City/Del City $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

Moore $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

Norman $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

Northeast Oklahom… $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

Northwest Oklahom… $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

South Oklahoma City $0.82 $8.33$0.26$0.04$1.14$0.28$0.92$1.18$0.39$0.97$0.61 $1.72

Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

3 STAR EXPENSES PER SF (ANNUAL)




Oklahoma City $0.75 $4.28$0.19$0.04$0.46$0.20$0.48$0.27$0.16$0.92$0.28 $0.53

Canadian County $0.78 $6.07$0.22$0.04$0.73$0.23$0.66$0.69$0.29$0.95$0.43 $1.05



Edmond $0.75 $4.23$0.18$0.04$0.47$0.19$0.47$0.24$0.14$0.93$0.28 $0.54

Grady County $0.75 $4.27$0.18$0.04$0.40$0.20$0.46$0.31$0.21$0.93$0.28 $0.51

Lincoln County $0.75 $4.27$0.18$0.04$0.40$0.20$0.46$0.31$0.21$0.93$0.28 $0.51

McClain County $0.76 $4.83$0.20$0.04$0.50$0.21$0.52$0.43$0.23$0.93$0.33 $0.68


Moore $0.74 $4.20$0.18$0.04$0.38$0.21$0.46$0.32$0.22$0.91$0.27 $0.47

Norman $0.75 $4.27$0.18$0.04$0.40$0.20$0.46$0.31$0.21$0.93$0.28 $0.51






Page 7






Oklahoma City $0.68 $3.50$0.18$0.04$0.33$0.19$0.45$0.24$0.14$0.60$0.19 $0.46

Canadian County $0.68 $3.64$0.18$0.04$0.33$0.19$0.44$0.29$0.20$0.60$0.19 $0.50



Edmond $0.68 $3.64$0.18$0.04$0.33$0.19$0.44$0.29$0.20$0.60$0.19 $0.50

Grady County $0.68 $3.68$0.18$0.04$0.33$0.19$0.44$0.29$0.20$0.63$0.20 $0.50

Lincoln County $0.68 $3.62$0.18$0.04$0.32$0.19$0.44$0.29$0.20$0.59$0.19 $0.50

Logan County $0.68 $3.62$0.18$0.04$0.32$0.19$0.44$0.29$0.20$0.59$0.19 $0.50

McClain County $0.68 $3.62$0.18$0.04$0.32$0.19$0.44$0.29$0.20$0.59$0.19 $0.50


Moore $0.68 $3.62$0.18$0.04$0.33$0.22$0.45$0.32$0.21$0.60$0.19 $0.40

Norman $0.68 $3.63$0.18$0.04$0.33$0.19$0.44$0.29$0.20$0.59$0.19 $0.50



Outlying Cleveland… $0.68 $3.62$0.18$0.04$0.32$0.19$0.44$0.29$0.20$0.59$0.19 $0.50




Page 8

ConstructionOklahoma City Multi-Family

Rising construction costs, coupled with a shortage oflabor workers, has resulted in a slowdown indevelopment over the past two years. The demand forlabor has ultimately increased costs due to the lack ofworkers. Because of this, the multifamily market hasrecorded below-average supply in consecutive years.

Construction is concentrated in the Downtown OklahomaCity, Northwest Oklahoma City and Norman submarkets,and proximity to retail is an emphasis for severalprojects. Norman is home to the University of Oklahoma,whose presence keeps demand drivers more stable thanin other parts of the metro. One of the largercommunities completed this year is the 350-unit WestVillage downtown, which is anchored by strong retailincluding the Jones Assembly and the 21C MuseumHotel.

Meanwhile, Downtown Oklahoma City is receiving themost development, as the city transforms its urban core.

MAPS 3 has continued to revitalize the city with severalmajor projects, including Scissortail Park and theConvention Center. Also, the recently completedstreetcar will increase accessibility throughout downtown.One of the largest developments of the cycle is the SteelYard Apartments, located in the Bricktown neighborhood.The community opened an initial phase of units inDecember 2017, and now have a total of 250 unitsonline.

Demand for properties delivered in the past two yearshas struggled though, with occupancies just about 70%as of 19Q2. However, absorption on recent deliveries inDowntown Oklahoma City has improved. One of thelarger deliveries was the 4 Star, 329-unit LiftApartments, which started moving in tenants at the endof 16Q2, and completed all phases in 17Q1. Thecommunity was just 25% occupied at the start of 2017,but as of April was close to full occupancy.

DELIVERIES & DEMOLITIONS


Page 9

Under Construction PropertiesOklahoma City Multi-Family

Properties

6Units

1,228Percent of Inventory

1.4%Avg. No. Units

205UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Units Stories Start Complete Developer/Owner

Dec-20186929 Sooner Rd

Liberty Creek Village516 2 Apr-2020

Gardner Tanenbaum Holdings

Gardner Tanenbaum Holdings1

Aug-201715400 Lone Oak Rd

Crown Lone Oak Apartm…286 3 Jul-2019

Leinbach Company

Leinbach Company2

Aug-2018120 N Robinson Ave

First National Center - A…193 - Jan-2021

Cornerstone Development

NE CS FNC Residences, LLC3

Aug-201615501 N Pennsylvania Ave

The Lofts at North Penn192 - Jun-2019

-

Sooner Traditions Realty4

Jun-20182013 E Cherry St

Markland/Wiles Apartme…24 3 Jun-2019

Bryan Properties

-5

Mar-2017627 NW 5th St

Town House Apartments17 2 Jun-2019

David Wanzer

David Wanzer6


Page 10

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2Fredir%2Fdefault.aspx%3Feid%3D11054815%26ProductMode%3DProperty%26external%3D1






SalesOklahoma City Multi-Family

Sales volume continued to exceed metro norms in 2018with more than $400 million trading hands for the secondconsecutive year. Much of this volume can be attributedto an increased presence from out-of-state investors.Representing close to 70% of the transactions in 2018and the top 10 trades of the year in terms of volume,non-Oklahoma buyers’ involvement is expected toincrease with the continued re-development of thedowntown as well as opportunities for high-yieldinvestments.

This trend has continued into 2019, with the acquisitionof the Landing by a private investor from California. This4 Star, 252-unit asset was purchase for $32 million($127,000/unit) in early January.

This renaissance in the Downtown Oklahoma Submarkethas resulted in many developments and demand hasincreased significantly from the renter base.Fundamentals have steadily improved and sales volumehas ticked up as well representing nearly a third of thetransaction volume in the past two years. Most notablethis year was the trade of the 339-unit Council CrossingApartments for $19.1 million ($56,000/unit) in October by

Denver-based Pauls Real Estate Investments. Perhapsmost noteworthy was the November 2017 sale of theMetropolitan Apartments for $63.8 million ($193,000/unit).Weidner Property Management, based in WashingtonState, acquired the 329-unit asset, which delivered in2016. The community was 95% occupied at the time ofclosing and traded at a 5.25% cap rate.

The average cap rate in the metro now ranges around8%. This alone has enticed several national investorswho are looking for opportunities in the south region,since larger metros like Houston, Dallas-Fort Worth, andAustin trade closer to a 6% cap rate. Since the metrocontains a large portion of Class B and C properties,investors have found opportunities for value-addprojects. For example, Houston-based JuniperInvestment Group purchased the 2 Star RidgeApartments for $9 million at a 7.8% cap.

Sales volume has picked up throughout this cycle, withmore than $2.5 billion trading hands, and outside buyersare having more of a presence in the market. Around halfof that cycle total has traded hands over the past threeyears, with more than $400 million last year.

SALES VOLUME & MARKET SALE PRICE PER UNIT


Page 11

Sales Past 12 MonthsOklahoma City Multi-Family

Sale Comparables

73Avg. Price/Unit (thous.)

$64Average Price (mil.)

$6.6Average Vacancy at Sale

10.0%SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $100,000 $6,595,121 $2,175,000 $81,600,000

Price Per Unit $6,250 $64,012 $39,124 $126,984

Cap Rate 4.3% 6.8% 6.7% 9.8%

Vacancy Rate at Sale 0% 10.0% 8.3% 39.3%

Time Since Sale in Months 0.9 6.4 6.0 11.7

Property Attributes Low Average Median High

Property Size in Units 8 111 72 708

Number of Floors 1 2 2 4

Average Unit SF 475 814 806 1,238

Year Built 1925 1971 1971 2018

Star Rating 2.4


Page 12

Sales Past 12 MonthsOklahoma City Multi-Family

RECENT SIGNIFICANT SALES

Sale InformationProperty Information

RatingProperty Name/Address Yr Built Units Vacancy Sale Date Price Price/Unit Price/SF

500 Central Park Dr- 2006

The Lincoln at Central Park1 708 8.1% 4/25/2019 $81,600,000 $115,254 $114

777 N Air Depot Blvd- 2004

The Lodge @ 7772 298 5.0% 11/2/2018 $36,000,000 $120,805 $113

4800 E Interstate 240 Service…- 2017

The Landing3 252 7.9% 1/11/2019 $32,000,000 $126,984 $140

12301-12401 N MacArthur Blvd- 1983

Woodland Trails4 542 19.6% 8/1/2018 $28,824,000 $53,180 $79

1600 Ann Branden Blvd- 1999

The Renaissance At Norman5 228 9.7% 10/25/2018 $24,160,400 $105,966 $88

6700 W Memorial Rd- 2012

Brandon Place Apartments6 201 13.0% 6/1/2018 $23,400,000 $116,417 $114

360 N Pebble Creek Ter- 1999

Pebble Creek Apartments7 192 5.7% 12/14/2018 $19,750,000 $102,864 $65

215 NE 28th St- 1967

Capitol on 28th8 223 4.9% 8/14/2018 $19,700,000 $88,340 $122

7920 NW 21st St- 1975

Council Crossing9 339 13.0% 10/1/2018 $19,100,000 $56,342 $68

12500 S Western Ave- 2002

Oak Place Apartment Homes10 240 6.3% 6/25/2018 $16,400,000 $68,333 $91

10700 S May- 2015

Cross Timber Apartments11 150 3.3% 12/28/2018 $16,125,000 $107,500 $102

6100 N Meridian Ave- 1973

Six100 Meridian Apartments12 271 6.6% 12/14/2018 $10,350,000 $38,191 $46

3834 N Oak Grove Dr- 1972

The Ridge13 278 11.5% 9/5/2018 $9,000,000 $32,374 $37

4215 SE 53rd St- 1973

The Commons14 210 7.1% 3/6/2019 $8,335,000 $39,690 $49

1800 N Rockwell Ave- 1969

The Belmont15 162 16.7% 3/5/2019 $8,004,999 $49,413 $49

2809-2815 Dewey Ave- 1999

Emerald Greens16 204 8.8% 4/26/2019 $7,450,000 $36,519 $40

6810 NW 16th St- 1971

Foxcroft17 188 5.3% 10/11/2018 $6,680,000 $35,531 $38

5537 S Sunny Ln- 1974

Aspen Walk Apartments18 146 14.4% 12/19/2018 $6,665,000 $45,650 $52

4625 Tinker Diagonal St- 1972

Cedar Hills Apartments19 124 17.7% 12/14/2018 $6,000,000 $48,387 $57

2930 N Shartel Ave- 1935

The Breighton Apartments20 96 25.0% 7/18/2018 $5,834,000 $60,770 $64


Page 13

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2Fredir%2Fdefault.aspx%3Feid%3D6540348%26ProductMode%3DProperty%26SelectedTab%3Dsale%26external%3D1




















EconomyOklahoma City Multi-Family

After the downturn of the energy sector due to the dropin oil prices in 2014-15, the Oklahoma City economy hasreturned to positive growth. In 2018, job growth waspositive, netting 13,000 jobs and eclipsing the nationalaverage for the entirety of the year. The sectors thathave contributed the most to this growth have beenconstruction (4.5% Y/Y), leisure and hospitality (3.6%Y/Y), and manufacturing (3.4% Y/Y). With the nationaleconomy still adding jobs even this late in this economicexpansion, gains could continue to increase throughoutthe economy.

Much of Oklahoma City’s economic success can beattributed to the urban renaissance put forth by theMAPS 3 projects over the course of the decade. MAPS3, a $777-million capital improvement program, wasvoted in at the end of 2009. This plan is intended toimprove quality of life by way of several projects,including Oklahoma river improvements, sidewalkimprovements, Fairgrounds Expo Building and the SeniorHealth & Wellness Center. The projects beganconstruction in 2012 and are expected to continue until2020. More recently, the implementation of the ModernStreetcar is in full effect, which should improvetransportation to and from districts in and arounddowntown. In 2018, the attention has shifted to two largedevelopments: the Downtown Convention Center andScissortail Park. Together, these projects are more thehalf the MAPS 3 budget at a total of $420 million.Scissortail Park, an area that extends 70 acres, willprovide lakes and nature walks and serve as a getawayfrom everyday lives. Located just east of the park will bethe 200,000-SF Downtown Convention Center, whichofficially broke ground in June 2018.

Three of the nation’s largest energy producers areheadquartered in OKC, and the energy sector accountsfor roughly 3% of total employment and 10% of totalearnings in the Oklahoma City metro. The metro’sexposure to the energy industry is nearly 10 times higher

than the national average, second only to Houston's.Throughout the recovery, the local boom in hydraulicfracturing, or “fracking,” buoyed the Oklahoma Cityeconomy, leading to impressive growth. The Oklahomastate economy outperformed that of the rest of thenation, with an unemployment rate under 4% for much ofthe recovery. However, the recent struggles of theenergy industry halted employment growth. Oil prices fellsharply in the back half of 2014 and throughout 2015.The energy market has certainly begun to regain itsfooting, and Oklahoma’s rig count has continued to rise,reaching a three-year high as of 2019. Much of thissuccess can be attributed to the continued growth in theCana Woodford Basin – home to the SCOOP andSTACK fields.

Although heavily tied to the industry, there is more to theOklahoma City economy than energy, and the city stilloffers employers many economic advantages comparedto other locales. According to Oxford Economics, thecost of doing business here is roughly 20% below thenational average, which attracts service-oriented, back-office-type jobs to the metro. The metro has hosted anumber of corporate relocations, including those ofBoeing (aerospace) and Continental Resources (energy),a trend that could continue as companies take advantageof the market’s low business costs. Furthermore, theOklahoma City Economic Development Trust's StrategicInvestment Program continues to offer various economicdevelopment incentives for employers looking to expandexisting operations in the city. The public sector accountsfor a large chunk of employment here as well. InOklahoma City’s workforce, one person out of every fiveis employed in the government sector, and the metro’stwo largest employers are the State of Oklahoma andTinker Air Force Base, which together employ more than69,000. Approximately 7.5% of the gross metro product(GMP) is tied to government civilian and defensespending, ranking it sixth in the National Index in termsof exposure to government spending.


Page 14


OKLAHOMA CITY EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

0.13%-0.18%0.61%0.05%1.69%0.10%0.634Manufacturing

0.45%0.63%1.08%1.45%1.13%1.68%0.9114Trade, Transportation and Utilities

0.33%0.62%0.80%0.87%0.06%-0.15%1.066 Retail Trade

0.43%0.35%0.91%0.74%1.28%1.75%0.934Financial Activities

0.77%0.79%-0.03%0.75%0.49%1.71%1.3129Government

0.32%0.60%1.71%3.03%3.68%6.67%1.555Natural Resources, Mining and Construction

0.33%0.18%2.09%1.33%2.06%1.95%0.995Education and Health Services

0.91%0.61%2.48%1.67%2.51%1.77%0.986Professional and Business Services

0.45%0.40%-0.06%-4.51%-0.05%-2.08%0.67Information

0.41%0.81%2.41%2.88%2.31%3.43%1.177Leisure and Hospitality

0.23%0.38%0.91%2.24%1.15%1.38%1.230Other Services

Total Employment 661 1.0 2.20% 1.67% 1.42% 1.33% 0.54% 0.50%

Source: Oxford Economics

LQ = Location Quotient


YEAR OVER YEAR JOB GROWTH


Page 15


DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 328,988,8131,405,675 1.0% 0.7% 1.3% 0.7% 0.9% 0.7%

Households 121,188,641518,184 0.8% 0.6% 1.0% 0.7% 0.8% 0.6%

Median Household Income $63,753$58,638 3.4% 3.7% 2.3% 2.2% 4.6% 4.3%

Labor Force 163,511,781687,636 0.2% 1.1% 1.9% 0.6% 0.7% 0.5%

Unemployment 3.8%2.9% -0.7% -0.1% -0.3% -0.5% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


Page 16

SubmarketsOklahoma City Multi-Family

OKLAHOMA CITY SUBMARKETS


Page 17


SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs Units Percent Rank

Inventory

Bldgs Units Percent RankBldgs Units % Market RankSubmarketNo.

1 Canadian County 4,187 4.7% 9 0 0 0% -43 0 0 0% -

2 Central Oklahoma City 18,726 21.0% 1 0 0 0% -296 1 20 0.1% 5

3 Downtown Oklahoma City 4,791 5.4% 8 2 210 4.4% 3113 1 345 7.2% 1

4 Edmond 6,624 7.4% 5 0 0 0% -60 1 16 0.2% 6

5 Grady County 464 0.5% 11 0 0 0% -16 0 0 0% -

6 Lincoln County 147 0.2% 14 0 0 0% -5 0 0 0% -

7 Logan County 181 0.2% 13 0 0 0% -11 0 0 0% -

8 McClain County 315 0.4% 12 0 0 0% -13 0 0 0% -

9 Midwest City/Del City 6,375 7.1% 6 0 0 0% -50 1 24 0.4% 4

10 Moore 5,834 6.5% 7 0 0 0% -34 0 0 0% -

11 Norman 11,913 13.3% 3 0 0 0% -138 1 44 0.4% 3

12 Northeast Oklahoma City 1,648 1.8% 10 0 0 0% -26 0 0 0% -

13 Northwest Oklahoma City 17,922 20.1% 2 2 478 2.7% 277 1 300 1.7% 2

14 Outlying Cleveland County 86 0.1% 15 1 24 27.9% 45 0 0 0% -

15 South Oklahoma City 10,143 11.4% 4 1 516 5.1% 1121 0 0 0% -

SUBMARKET RENT

Yr. Growth

Asking Rents

Per UnitSubmarketNo.

Effective Rents

RankRank Yr. GrowthRankPer SF ConcessionPer SFPer Unit

1 Canadian County 4.6%5 3.5% 5$781 14$0.90 0.7%$0.89$775

2 Central Oklahoma City 3.5%10 2.1% 10$684 7$0.79 1.4%$0.78$674

3 Downtown Oklahoma City 7.2%1 4.4% 1$1,287 6$1.51 1.5%$1.48$1,267

4 Edmond 5.3%2 2.9% 2$843 11$0.97 0.9%$0.97$836

5 Grady County 3.0%11 0.7% 11$533 10$0.73 0.9%$0.72$528

6 Lincoln County 0.3%14 0.3% 14$562 12$0.59 0.8%$0.58$558

7 Logan County 0.9%15 0.8% 15$489 9$0.54 0.9%$0.54$485

8 McClain County 3.2%12 3.1% 12$619 13$0.71 0.7%$0.70$614

9 Midwest City/Del City 5.1%8 2.9% 8$690 8$0.83 1.1%$0.82$683

10 Moore 5.3%3 4.1% 3$786 5$0.92 1.5%$0.91$774

11 Norman 4.1%4 2.0% 4$766 4$0.92 1.8%$0.90$753

12 Northeast Oklahoma City -4.5%6 -1.8% 6$800 1$0.90 3.3%$0.87$774

13 Northwest Oklahoma City 2.7%7 1.7% 7$756 2$0.86 2.1%$0.84$740

14 Outlying Cleveland County 0.8%13 0.8% 13$552 15$0.68 0.6%$0.68$548

15 South Oklahoma City 3.5%9 2.6% 9$660 3$0.82 1.8%$0.81$648


Page 18

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2F..%2FMarket%2F%23%2Fsearch%2Fdetail%2Fsubmarket%2Ftype%2F1%2Fproperty%2F11%2Fgeography%2F7945%3Fnested%3Dfalse































SUBMARKET VACANCY & ABSORPTION

12 Month Absorption

Rank Construct. Ratio

Vacancy

Units % of InvUnits PercentSubmarketNo. Rank

1 Canadian County 245 5.9% -(55) -1.3% 151

2 Central Oklahoma City 2,596 13.9% 0.826 0.1% 914

3 Downtown Oklahoma City 653 13.6% 2.2155 3.2% 513

4 Edmond 418 6.3% 0.282 1.2% 62

5 Grady County 72 15.5% -(2) -0.4% 1415

6 Lincoln County 16 10.7% -1 0.7% 1112

7 Logan County 15 8.0% -1 0.6% 117

8 McClain County 21 6.6% -2 0.8% 103

9 Midwest City/Del City 551 8.6% 0.830 0.5% 88

10 Moore 425 7.3% -181 3.1% 45

11 Norman 1,055 8.9% 0.2276 2.3% 39

12 Northeast Oklahoma City 128 7.8% -40 2.5% 76

13 Northwest Oklahoma City 1,659 9.3% 0.5575 3.2% 110

14 Outlying Cleveland County 6 7.0% -0 0% -4

15 South Oklahoma City 1,055 10.4% -300 3.0% 211


Page 19
















AppendixOklahoma City Multi-Family

OVERALL SUPPLY & DEMAND

AbsorptionInventory

Units % of Inv Construction RatioUnits Growth % GrowthYear

2023 855 0.9%92,850 749 0.8% 1.1

2022 783 0.9%91,995 638 0.7% 1.2

2021 775 0.9%91,212 617 0.7% 1.3

2020 611 0.7%90,437 726 0.8% 0.8

2019 815 0.9%89,826 1,216 1.4% 0.7

YTD 345 0.4%89,356 737 0.8% 0.5

2018 1,008 1.1%89,011 2,039 2.3% 0.5

2017 855 1.0%88,003 1,361 1.5% 0.6

2016 1,841 2.2%87,148 (491) -0.6% -

2015 2,326 2.8%85,307 895 1.0% 2.6

2014 1,465 1.8%82,981 1,431 1.7% 1.0

2013 1,635 2.0%81,516 1,045 1.3% 1.6

2012 1,089 1.4%79,881 1,280 1.6% 0.9

2011 407 0.5%78,792 376 0.5% 1.1

2010 978 1.3%78,385 1,545 2.0% 0.6

2009 842 1.1%77,407 151 0.2% 5.6

2008 14 0%76,565 4 0% 3.5

2007 311 0.4%76,551 (231) -0.3% -

4 & 5 STAR SUPPLY & DEMAND

AbsorptionInventory


2023 950 4.5%22,262 820 3.7% 1.2

2022 877 4.3%21,312 712 3.3% 1.2

2021 677 3.4%20,435 599 2.9% 1.1

2020 707 3.7%19,758 589 3.0% 1.2

2019 847 4.7%19,051 785 4.1% 1.1

YTD 345 1.9%18,549 247 1.3% 1.4

2018 587 3.3%18,204 1,105 6.1% 0.5

2017 838 5.0%17,617 809 4.6% 1.0

2016 1,794 12.0%16,779 1,780 10.6% 1.0

2015 2,576 20.8%14,985 1,635 10.9% 1.6

2014 1,521 14.0%12,409 1,441 11.6% 1.1

2013 1,556 16.7%10,888 1,241 11.4% 1.3

2012 1,566 20.2%9,332 1,400 15.0% 1.1

2011 838 12.1%7,766 817 10.5% 1.0

2010 972 16.3%6,928 995 14.4% 1.0

2009 990 19.9%5,956 822 13.8% 1.2

2008 0 0%4,966 (32) -0.6% 0

2007 303 6.5%4,966 275 5.5% 1.1


Page 20


3 STAR SUPPLY & DEMAND

AbsorptionInventory


2023 0 0%38,272 (11) 0% 0

2022 0 0%38,272 1 0% 0

2021 193 0.5%38,272 109 0.3% 1.8

2020 0 0%38,079 105 0.3% 0

2019 17 0%38,079 374 1.0% 0

YTD 0 0%38,062 429 1.1% 0

2018 421 1.1%38,062 452 1.2% 0.9

2017 17 0%37,641 368 1.0% 0

2016 52 0.1%37,624 (1,138) -3.0% 0

2015 10 0%37,572 (398) -1.1% 0

2014 52 0.1%37,562 3 0% 17.3

2013 108 0.3%37,510 (83) -0.2% -

2012 28 0.1%37,402 222 0.6% 0.1

2011 (436) -1.2%37,374 (473) -1.3% 0.9

2010 0 0%37,810 341 0.9% 0

2009 (148) -0.4%37,810 (370) -1.0% 0.4

2008 6 0%37,958 103 0.3% 0.1

2007 8 0%37,952 (321) -0.8% 0


AbsorptionInventory


2023 (95) -0.3%32,316 (60) -0.2% 1.6

2022 (94) -0.3%32,411 (75) -0.2% 1.3

2021 (95) -0.3%32,505 (91) -0.3% 1.0

2020 (96) -0.3%32,600 32 0.1% -

2019 (49) -0.1%32,696 57 0.2% -

YTD 0 0%32,745 61 0.2% 0

2018 0 0%32,745 482 1.5% 0

2017 0 0%32,745 184 0.6% 0

2016 (5) 0%32,745 (1,133) -3.5% 0

2015 (260) -0.8%32,750 (342) -1.0% 0.8

2014 (108) -0.3%33,010 (13) 0% 8.3

2013 (29) -0.1%33,118 (113) -0.3% 0.3

2012 (505) -1.5%33,147 (342) -1.0% 1.5

2011 5 0%33,652 32 0.1% 0.2

2010 6 0%33,647 209 0.6% 0

2009 0 0%33,641 (301) -0.9% 0

2008 8 0%33,641 (67) -0.2% -

2007 0 0%33,633 (185) -0.6% 0


Page 21


OVERALL VACANCY & RENT

Market RentVacancy

Per Unit Per SF % GrowthUnits Percent Ppts ChgYear Per Unit Per SFPpts Chg

Effective Rent

02023 9.7% 09,002 $789 $0.93 0.8% $776 $0.91

0.12022 9.7% 0.18,894 $783 $0.92 0.8% $770 $0.90

(0.6)2021 9.6% 0.18,752 $777 $0.91 0.7% $764 $0.90

(0.4)2020 9.5% (0.2)8,596 $771 $0.90 1.3% $758 $0.89

02019 9.7% (0.8)8,709 $761 $0.89 1.7% $748 $0.88

(0.1)YTD 10.0% (0.5)8,916 $761 $0.89 1.6% $748 $0.88

0.42018 10.5% (1.3)9,310 $748 $0.88 1.7% $732 $0.86

2.02017 11.8% (0.7)10,340 $736 $0.86 1.3% $712 $0.83

(2.9)2016 12.4% 2.510,837 $726 $0.85 -0.7% $701 $0.82

(0.2)2015 10.0% 1.48,518 $731 $0.86 2.3% $714 $0.84

(0.7)2014 8.5% (0.1)7,091 $715 $0.84 2.4% $710 $0.83

0.22013 8.7% 0.67,057 $698 $0.82 3.2% $691 $0.81

1.62012 8.1% (0.3)6,469 $677 $0.79 3.0% $672 $0.79

1.22011 8.4% 06,654 $657 $0.77 1.4% $653 $0.77

2.82010 8.5% (0.8)6,629 $648 $0.76 0.2% $644 $0.76

(5.9)2009 9.3% 0.87,191 $647 $0.76 -2.7% $642 $0.75

(0.7)2008 8.5% 06,499 $665 $0.78 3.2% $661 $0.77

-2007 8.5% 0.76,495 $644 $0.76 3.8% $640 $0.75

4 & 5 STAR VACANCY & RENT

Market RentVacancy


Effective Rent

(0.1)2023 8.9% 0.21,988 $1,070 $1.16 0.7% $1,052 $1.14

02022 8.7% 0.41,859 $1,062 $1.15 0.8% $1,044 $1.13

(0.7)2021 8.3% 0.11,694 $1,053 $1.14 0.8% $1,036 $1.12

(1.3)2020 8.2% 0.31,617 $1,044 $1.13 1.6% $1,027 $1.11

1.12019 7.9% (0.2)1,498 $1,028 $1.11 2.8% $1,011 $1.10

1.2YTD 8.4% 0.41,559 $1,029 $1.12 3.0% $1,012 $1.10

1.12018 8.0% (3.2)1,460 $1,000 $1.08 1.7% $982 $1.06

3.82017 11.2% (0.4)1,978 $983 $1.06 0.6% $950 $1.03

(3.7)2016 11.6% (1.3)1,948 $976 $1.06 -3.1% $943 $1.02

(1.0)2015 12.9% 4.91,933 $1,008 $1.09 0.6% $989 $1.07

(1.9)2014 8.0% (0.4)991 $1,002 $1.09 1.6% $996 $1.08

0.42013 8.4% 2.0911 $986 $1.07 3.6% $973 $1.05

0.82012 6.4% 0.9597 $952 $1.03 3.1% $948 $1.03

2.42011 5.5% (0.4)431 $923 $1.00 2.3% $918 $0.99

3.42010 5.9% (1.4)410 $902 $0.98 0% $896 $0.97

(6.4)2009 7.3% 1.9434 $902 $0.98 -3.4% $895 $0.97

(0.6)2008 5.3% 0.6265 $934 $1.01 2.9% $930 $1.01

-2007 4.7% 0.3235 $908 $0.98 3.6% $902 $0.98


Page 22


3 STAR VACANCY & RENT

Market RentVacancy


Effective Rent

02023 9.2% 03,507 $757 $0.90 0.9% $743 $0.89

0.12022 9.1% 03,496 $750 $0.90 0.9% $737 $0.88

(0.5)2021 9.1% 0.23,498 $743 $0.89 0.8% $730 $0.87

0.22020 9.0% (0.3)3,415 $737 $0.88 1.3% $724 $0.87

(0.7)2019 9.2% (1.4)3,520 $728 $0.87 1.1% $715 $0.86

(0.6)YTD 9.5% (1.1)3,629 $728 $0.87 1.2% $717 $0.86

02018 10.7% (0.2)4,058 $720 $0.86 1.8% $701 $0.84

2.32017 10.9% (0.9)4,091 $707 $0.84 1.8% $682 $0.81

(3.2)2016 11.8% 3.14,441 $695 $0.83 -0.6% $668 $0.80

(0.1)2015 8.7% 1.13,253 $699 $0.83 2.6% $680 $0.81

(0.2)2014 7.6% 0.12,847 $681 $0.81 2.7% $676 $0.81

(0.5)2013 7.5% 0.52,798 $663 $0.79 2.9% $657 $0.78

2.22012 7.0% (0.5)2,608 $644 $0.77 3.5% $638 $0.76

0.92011 7.5% 0.22,801 $623 $0.74 1.3% $619 $0.74

2.32010 7.3% (0.9)2,764 $615 $0.73 0.4% $611 $0.73

(5.5)2009 8.2% 0.63,105 $612 $0.73 -1.9% $608 $0.73

(0.4)2008 7.6% (0.3)2,883 $624 $0.75 3.6% $620 $0.74

-2007 7.8% 0.92,979 $602 $0.72 4.1% $598 $0.71


Market RentVacancy


Effective Rent

02023 10.9% (0.1)3,507 $649 $0.78 0.6% $639 $0.77

0.12022 10.9% 03,539 $645 $0.78 0.7% $635 $0.77

(0.4)2021 10.9% 03,559 $641 $0.77 0.6% $631 $0.76

(0.2)2020 10.9% (0.4)3,564 $637 $0.77 1.0% $627 $0.76

(0.3)2019 11.3% (0.3)3,692 $631 $0.76 1.2% $621 $0.75

(0.7)YTD 11.4% (0.2)3,728 $628 $0.76 0.8% $619 $0.75

0.22018 11.6% (1.5)3,792 $623 $0.75 1.5% $610 $0.74

(0.5)2017 13.0% (0.5)4,271 $614 $0.74 1.4% $596 $0.72

(1.7)2016 13.6% 3.44,448 $606 $0.73 1.9% $589 $0.71

0.72015 10.2% 0.33,331 $594 $0.72 3.6% $581 $0.70

(0.2)2014 9.9% (0.3)3,252 $574 $0.69 2.8% $569 $0.69

0.92013 10.1% 0.33,347 $558 $0.67 3.0% $553 $0.67

1.62012 9.8% (0.3)3,264 $542 $0.65 2.1% $537 $0.65

0.42011 10.2% (0.1)3,422 $531 $0.64 0.5% $527 $0.64

3.12010 10.3% (0.6)3,455 $528 $0.64 0.1% $524 $0.63

(5.8)2009 10.9% 0.93,653 $527 $0.64 -2.9% $523 $0.63

(1.0)2008 10.0% 0.23,351 $543 $0.66 2.8% $540 $0.65

-2007 9.8% 0.63,281 $529 $0.64 3.8% $525 $0.63


Page 23


OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/UnitDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/Unit Cap Rate

2023 -- - -- 182- $63,035 8.0%

2022 -- - -- 181- $62,631 8.0%

2021 -- - -- 180- $62,429 7.9%

2020 -- - -- 181- $62,833 7.8%

2019 -- - -- 180- $62,364 7.8%

YTD $168.7 M24 2.6% $72,293$7,030,500 1777.2% $61,399 7.7%

2018 $407.1 M79 9.7% $50,589$5,501,845 1737.6% $59,901 7.7%

2017 $424.4 M97 9.4% $55,431$4,877,934 1667.9% $57,474 7.8%

2016 $333.7 M74 7.5% $55,540$5,133,571 1598.4% $54,949 7.8%

2015 $330.9 M77 8.0% $48,739$4,297,220 1559.2% $53,787 7.8%

2014 $279.8 M60 8.1% $44,365$4,823,515 1498.5% $51,577 7.9%

2013 $304.2 M43 6.6% $60,173$7,605,853 1399.7% $48,141 8.2%

2012 $219.7 M43 5.8% $51,153$5,780,342 1378.1% $47,462 8.1%

2011 $93.7 M27 3.5% $34,388$3,470,630 1319.3% $45,223 8.2%

2010 $78.3 M29 3.6% $27,612$2,698,379 1219.5% $41,888 8.4%

2009 $76.5 M36 5.6% $22,069$2,389,687 919.5% $31,648 9.4%

2008 $239.8 M30 6.4% $48,681$7,993,469 1009.2% $34,637 9.1%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4 & 5 STAR SALES





2023 -- - -- 187- $106,151 7.1%

2022 -- - -- 185- $105,555 7.1%

2021 -- - -- 185- $105,278 7.1%

2020 -- - -- 186- $105,956 7.0%

2019 -- - -- 185- $105,000 6.9%

YTD $113.6 M2 5.2% $118,333$56,800,000 1815.7% $103,039 6.9%

2018 $41.3 M3 2.0% $111,829$13,755,000 1776.7% $100,848 6.9%

2017 $138.3 M3 4.8% $164,305$46,115,000 1735.6% $98,711 6.8%

2016 $133.2 M5 7.3% $108,089$26,633,200 1655.9% $93,669 6.9%

2015 $36.2 M1 2.0% $120,833$36,250,000 1615.6% $91,419 6.9%

2014 $67.6 M4 6.4% $84,881$16,891,386 1546.6% $87,545 7.0%

2013 $197.9 M6 16.0% $113,407$32,982,554 1447.2% $81,679 7.2%

2012 $155.7 M4 16.7% $99,808$38,925,000 1416.8% $80,319 7.2%

2011 $15.8 M1 2.8% $73,102$15,790,000 1326.0% $75,393 7.3%

2010 $19.7 M1 3.5% $80,738$19,700,000 1236.5% $70,082 7.5%

2009 $20.7 M1 6.7% $51,930$20,668,000 93- $52,978 8.4%

2008 $108.3 M4 23.7% $91,879$27,081,408 1007.6% $56,906 8.2%




Page 24


3 STAR SALES





2023 -- - -- 180- $58,589 7.9%

2022 -- - -- 179- $58,170 7.9%

2021 -- - -- 178- $57,940 7.8%

2020 -- - -- 179- $58,283 7.7%

2019 -- - -- 178- $57,847 7.7%

YTD $17.1 M8 1.0% $45,523$2,133,875 1757.7% $57,005 7.6%

2018 $265.6 M23 12.9% $58,389$12,073,336 1695.8% $54,917 7.7%

2017 $182.8 M21 10.7% $50,683$10,753,826 1627.0% $52,516 7.7%

2016 $109.6 M20 6.7% $50,813$6,089,058 1567.5% $50,693 7.8%

2015 $198.5 M22 9.5% $55,891$9,021,386 1548.8% $49,870 7.7%

2014 $158.0 M23 11.4% $40,799$7,182,498 1487.2% $48,106 7.7%

2013 $58.7 M8 3.0% $63,837$8,380,825 1387.4% $44,725 8.0%

2012 $30.9 M9 3.0% $39,716$5,143,167 1368.4% $44,265 8.0%

2011 $49.2 M5 3.7% $35,718$9,844,000 1318.2% $42,453 8.0%

2010 $38.0 M8 3.3% $30,209$4,750,438 1219.1% $39,335 8.2%

2009 $21.0 M11 5.3% $18,133$2,329,111 91- $29,679 9.2%

2008 $105.0 M13 6.8% $40,640$8,078,077 1009.2% $32,484 8.9%



1 & 2 STAR SALES





2023 -- - -- 178- $42,466 8.6%

2022 -- - -- 177- $42,193 8.6%

2021 -- - -- 176- $42,068 8.5%

2020 -- - -- 178- $42,380 8.4%

2019 -- - -- 177- $42,165 8.4%

YTD $38.1 M14 3.1% $38,099$2,718,643 1757.1% $41,652 8.3%

2018 $100.3 M53 10.2% $32,031$2,046,084 1738.7% $41,255 8.3%

2017 $103.2 M73 10.5% $32,186$1,540,600 1628.5% $38,625 8.4%

2016 $90.9 M49 8.6% $34,713$2,164,597 1549.1% $36,782 8.5%

2015 $96.2 M54 9.0% $32,732$1,780,842 1509.6% $35,876 8.5%

2014 $54.2 M33 5.0% $33,099$1,693,230 14310.2% $34,138 8.6%

2013 $47.7 M29 7.6% $19,930$1,765,667 13510.6% $32,090 8.9%

2012 $33.1 M30 6.0% $16,911$1,181,929 1328.8% $31,563 8.9%

2011 $28.7 M21 3.4% $25,373$1,366,524 12810.3% $30,432 8.9%

2010 $20.5 M20 4.0% $15,428$1,027,475 11810.2% $28,023 9.2%

2009 $34.8 M24 5.8% $18,231$1,583,636 899.5% $21,203 10.3%

2008 $26.5 M13 3.5% $22,754$2,035,648 1009.6% $23,846 9.8%




Page 25


DELIVERIES & UNDER CONSTRUCTION

Net DeliveriesInventory

Bldgs Units BldgsBldgs Units VacancyYear

Under Construction

Units

Deliveries

Bldgs Units

2023 92,850 9.7%- - 955 - -- 855

2022 91,995 9.7%- - 884 - -- 782

2021 91,213 9.6%- - 874 - -- 775

2020 90,438 9.5%- - 709 - -- 611

2019 89,827 9.7%- - 864 - -- 816

YTD 89,356 10.0%1,008 1 345 6 1,2281 345

2018 89,011 10.5%1,007 8 1,008 7 1,5738 1,008

2017 88,003 11.8%999 5 855 12 1,8485 855

2016 87,148 12.4%994 13 1,846 9 1,65712 1,841

2015 85,307 10.0%982 10 2,586 15 2,3589 2,326

2014 82,981 8.5%973 8 1,573 17 3,8486 1,465

2013 81,516 8.7%967 8 1,664 11 2,0137 1,635

2012 79,881 8.1%960 10 1,594 12 2,2758 1,089

2011 78,792 8.4%952 3 843 13 1,9902 407

2010 78,385 8.5%950 4 978 5 1,1594 978

2009 77,407 9.3%946 6 1,039 5 1,4985 842

2008 76,565 8.5%941 2 14 9 2,0112 14

2007 76,551 8.5%939 2 311 6 1,0282 311


Page 26

Tulsa Market

PREPARED BY

Alexander Philips

CEO & CIO




Vacancy 3

Rent 5

Construction 9


Sales 11


Economy 14



Vacancy & Rent 21

Sale Trends 23


Tulsa Multi-Family


OverviewTulsa Multi-Family



927Vacancy Rate


2.5%The Tulsa multifamily market has seen elevated demandduring the past year, but it experienced a slowdown inthe first half of 2019. However, vacancies have continuedto drop and were roughly in line with the metro'shistorical average as of 19Q2. Consequently, rents haveimproved, experiencing a nearly 2.5% increase in thepast 12 months. Vacancies and rents will likely continueto benefit from the slowdown in development that hasoccurred, and the immediate outlook for 2019 isforecasted to fall short of metro norms.

Recent employment gains have benefited the Tulsa

multifamily market by way of elevated demand since thebeginning of last year. Companies have increased hiringamid rising oil prices, and apartments have been a clearbenefactor. However, oil price fluctuation could have afurther impact on apartment fundamentals in 2019, asthe uncertainty of the energy sector remains.

The improving economic conditions have also enticedinvestors, and the out-of-state presence contributed tothe cycle's second highest total volume in 2018.Investment activity has persisted into 2019, with nearlyall deals coming from non-Oklahoman buyers.

KEY INDICATORS



Under ConstrUnits

$9427.7%13,9174 & 5 Star $927 156 97 525

$6698.8%29,2353 Star $654 (5) 0 0

$62110.5%15,7591 & 2 Star $615 0 0 0

$7269.0%58,911Market $713 151 97 525

ForecastAverage

HistoricalAverage


9.7%9.1%-1.3%Vacancy Change (YOY) 11.7% 2017 Q4 7.3% 2007 Q3

144501927Absorption Units 1,556 2018 Q4 (755) 2016 Q4

347624188Delivered Units 1,955 2009 Q3 8 2003 Q4




N/A$138.9M$373 MSales Volume $412.7M 2019 Q1 $0 2006 Q1


Page 2

VacancyTulsa Multi-Family

Thanks to low development and increased demand,vacancies have continued to drop in the past 12 months.Development hit a cyclical low in 2018, and the outlookfor this year remains at levels below the metro’s long-term average. Roughly 520 market-rate units are underconstruction, representing a slowdown compared withmost years of the cycle.

This stoppage has allowed the market to adjust to theglut of apartments that were delivered in recent years,especially in 2017, when nearly 1,600 units came on line.Lease-up on newer properties (since 2017) hasimproved, with occupancies approaching 90% as of19Q2. This is an impressive improvement from a yearago, when these units were close to 70% occupied. Thehealth and success of the local economy have manyoptimistic on the outlook for the Tulsa multifamily market.

Elevated job growth contributed to strong absorption

throughout 2018. Tulsa’s economy has improveddrastically since the oil bust in 2014–15, and themanufacturing and trade sectors led growth amongsectors in 2018. The unemployment rate has sincetrended downwards and has returned to levels seen priorto the decrease in oil prices. As a result, demand hassignificantly improved in the past two years, andvacancies have nearly returned to historical norms forthe metro.

And while Tulsa has experienced low population growthin each of the past two years, there are several initiativesunderway that are likely to increase employment. Someof the recent projects include Sodifel Group's $360million facility, Amazon’s $130 million fulfillment center,and Whirlpool’s $55 million expansion. In total, theseprojects will add thousands of jobs in the metro, likely tobenefit apartment demand for the years to come.



Page 3

VacancyTulsa Multi-Family

VACANCY RATE

VACANCY BY BEDROOM


Page 4

RentTulsa Multi-Family

Increased demand has directly translated into higherrents in the Tulsa metro throughout 2018. Rents havecontinued to trend upwards and have now surpassedlevels prior to the oil bust in 2014-15. For the first timesince then, year-over-year growth has been at healthylevels at nearly 2.5%. Within the metro, asking rents arethe highest in the Downtown and in South Tulsa.Respectively, rents in these areas hold about a 45% and25% premium relative to the metro average. Both ofthese submarkets have seen increased demand anddevelopment in recent years, and rents are likely toremain elevated if renters continue to flock here.

During the economic downturn in 2014, lagging jobgrowth coupled with a glut of new supply, left rent growthwith much to be desired. Vacancies expanded duringthat time, causing landlords to search for ways to attractrenters, and thus concessions increased. Although,healthy economic conditions over the past 12 monthshave resulted in a shift in power from the renters to thelandlords. With only a handful of projects in theimmediate pipeline, rents a likely to increase further ifdemand persists.



Page 5





Page 6






Tulsa $0.82 $7.74$0.26$0.01$0.85$0.29$0.98$1.01$0.39$0.97$0.49 $1.67

Creek County $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

Downtown Tulsa $0.80 $7.06$0.24$0.01$0.75$0.28$0.88$0.88$0.36$0.95$0.45 $1.46

East Tulsa $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

Midtown South $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

Midtown Tulsa $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

North Tulsa $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

Riverside/Peoria $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

Rogers County $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

South Tulsa County $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

South Tulsa/Broken… $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

Wagoner County $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72

West Tulsa County $0.82 $7.91$0.26$0.01$0.88$0.29$1.01$1.05$0.40$0.97$0.50 $1.72






Tulsa $0.74 $4.52$0.18$0.01$0.37$0.24$0.51$0.38$0.25$0.86$0.29 $0.69

Creek County $0.75 $4.55$0.18$0.01$0.36$0.24$0.50$0.36$0.25$0.91$0.30 $0.69

Downtown Tulsa $0.75 $4.55$0.18$0.01$0.36$0.24$0.50$0.36$0.25$0.91$0.30 $0.69

East Tulsa $0.75 $4.53$0.18$0.01$0.36$0.24$0.50$0.36$0.25$0.90$0.30 $0.68

Midtown South $0.72 $4.76$0.19$0.01$0.44$0.25$0.57$0.46$0.27$0.76$0.28 $0.81

Midtown Tulsa $0.72 $4.22$0.18$0.01$0.35$0.23$0.49$0.35$0.24$0.78$0.26 $0.61

North Tulsa $0.72 $4.29$0.18$0.01$0.35$0.23$0.49$0.36$0.25$0.80$0.27 $0.63

Osage County $0.75 $4.55$0.18$0.01$0.36$0.24$0.50$0.36$0.25$0.91$0.30 $0.69


Rogers County $0.73 $4.36$0.18$0.01$0.35$0.24$0.49$0.36$0.25$0.83$0.28 $0.64



Wagoner County $0.75 $4.55$0.18$0.01$0.36$0.24$0.50$0.36$0.25$0.91$0.30 $0.69




Page 7






Tulsa $0.68 $3.78$0.18$0.01$0.33$0.23$0.48$0.35$0.23$0.59$0.19 $0.51

Creek County $0.68 $3.74$0.18$0.01$0.32$0.23$0.47$0.34$0.23$0.59$0.19 $0.50

Downtown Tulsa $0.68 $3.78$0.18$0.01$0.33$0.23$0.47$0.34$0.23$0.61$0.19 $0.51

East Tulsa $0.68 $3.74$0.18$0.01$0.32$0.23$0.47$0.34$0.23$0.59$0.19 $0.50

Midtown South $0.68 $3.81$0.18$0.01$0.32$0.24$0.51$0.36$0.23$0.59$0.19 $0.50

Midtown Tulsa $0.68 $3.74$0.18$0.01$0.32$0.23$0.47$0.34$0.23$0.59$0.19 $0.50

North Tulsa $0.68 $3.74$0.18$0.01$0.32$0.23$0.47$0.34$0.23$0.59$0.19 $0.50

Okmulgee County $0.68 $3.74$0.18$0.01$0.32$0.23$0.47$0.34$0.23$0.59$0.19 $0.50

Pawnee County $0.68 $3.74$0.18$0.01$0.32$0.23$0.47$0.34$0.23$0.59$0.19 $0.50


Rogers County $0.68 $3.74$0.18$0.01$0.32$0.23$0.47$0.34$0.23$0.59$0.19 $0.50



Wagoner County $0.68 $3.74$0.18$0.01$0.32$0.23$0.47$0.34$0.23$0.59$0.19 $0.50




Page 8

ConstructionTulsa Multi-Family

After a large supply wave over the past several years,multifamily development has come to a halt. The leastamount of units came online last year since 2010 andlevels are likely to remain below averages. Coming off apinnacle year in 2017 when nearly 1,600 units delivered,the Tulsa metro's vacancies hit record highs and lease-up on new apartments struggled for the entirety of theyear. However, with increased job growth, lease-up onrecent deliveries has been robust and occupancies areclose to 90% as of May. With little development in thepipeline, vacancies are likely to continue to fall this year.

South Tulsa has been the primary location for newdevelopment recently, with more than 1,200 unitsdelivering since 2017. Of these units delivered, thelargest project is 71 at Tulsa Hills, which finisheddelivering its final units in early 2018. The 4 Star, 341-unit property was nearly fully occupied as of May. Morerecently, the 97-unit 727 Lofts completed in early 2019along the Arkansas River. With the increaseddevelopment and easy access to downtown, manyrenters have been attracted to this area.



Page 9

Under Construction PropertiesTulsa Multi-Family

Properties

7Units

525Percent of Inventory

0.9%Avg. No. Units


UNDER CONSTRUCTION


Sep-20171717 Riverside Dr

The Cosmopolitan Apart…264 5 Jul-2019

Bomasada Group, Inc.

Bomasada Group, Inc.1

Feb-2019305 N Main St

90 4 Mar-2020Cowen Construction

Cowen Construction2

Jan-2019111 W 5th St

111 Lofts69 10 Aug-2019

-

-3

Mar-2019703 S Owasso Ave

The Village Flats54 3 Dec-2019

Tulsa Property Group

-4

Apr-201812650 E 100th St N

Legacy East 10020 - Jun-2019

-

Simmons + Kourtis5

Oct-20181515 E 15th St

1515 Cherry Street and T…15 4 Oct-2019

Oak Properties LLC

-6

May-2017102 S Main St

Mowery Lofts13 2 Jun-2019

-

Steve & Renee Mowery7


Page 10








SalesTulsa Multi-Family

Improving economic conditions spurred increased salesactivity in the Tulsa metro throughout 2018 and into thisyear. In the second highest year this cycle, the metrorecorded nearly $345 million in transactions last year.This is due in large part to the increased activity fromout-of-state buyers, which make up the top five deals of2018 in terms of volume. Among the top trades, HamiltonPoint Investments controls the top two: the 296-unitStonehaven Villas ($30 million, or 101,000/unit) and the260-unit Preston Lakes apartments ($26.35 million, or$101,000/unit). These are located in the South Tulsa/

Broken Arrow Submarket, an area which has seen robustactivity in the past few years.

While Class A properties made up the lion share of dealsin 2018, typically, sales in the Tulsa metro involve 1 & 2Star or 3 Star properties that go for$30,000–$50,000/unit. Cap rates for these properties aretypically 8%–12%, significantly higher than in nearbymetros like Oklahoma City and Northwest Arkansas, letalone core coastal metros.



Page 11

Sales Past 12 MonthsTulsa Multi-Family

Sale Comparables







Sale Price $180,000 $7,794,738 $2,029,000 $37,500,000

Price Per Unit $9,259 $63,446 $45,061 $233,333

Cap Rate 5.3% 7.0% 6.3% 11.0%






Average Unit SF 417 812 798 1,144

Year Built 1918 1971 1973 2015

Star Rating 2.6


Page 12

Sales Past 12 MonthsTulsa Multi-Family




8601 S Mingo Rd- 2015

Atria Luxury Apartments1 285 5.3% 12/5/2018 $37,500,000 $131,578 $84

9303 E 81st St- 2009

Sonoma Grande Luxury Apart…2 336 8.0% 3/20/2019 $35,067,000 $104,366 $100

5202 E 81st St- 2000

The Vintage on Yale3 360 9.4% 12/12/2018 $35,000,000 $97,222 $102

7705 S Mingo Rd- 2006

Estancia Luxury Apartments4 294 6.5% 3/20/2019 $30,683,000 $104,363 $90

8110 S 107th Ave- 1999

Stonehaven Villas5 296 9.1% 6/14/2018 $30,000,000 $101,351 $106

5181 S Harvard Ave- 1984

Waterford Tulsa Apartments6 344 5.2% 10/16/2018 $23,564,000 $68,500 $96

1800 W Granger St- 2006

The Heights at Battle Creek7 276 8.7% 8/15/2018 $23,500,000 $85,144 $82

2505 E 88th St- 1974

Bandon Trails Apartments8 340 10.0% 10/26/2018 $22,500,000 $66,176 $70

9601 E 21st Pl- 1974

Shoreline Apartments9 464 9.7% 6/7/2018 $18,800,000 $40,517 $52

10011 S Sheridan Rd- 1985

Bellevue at Sheridan10 256 8.2% 12/13/2018 $16,250,000 $63,476 $81

910 E 61st St S- 1982

The View at Riverside11 328 18.9% 6/28/2018 $15,119,000 $46,094 $65

2302 S 137th East Ave- 1975

Metro Plex Apartments12 216 10.7% 10/24/2018 $9,881,500 $45,747 $38

1563 S 79th East Ave- 1972

The Woods at 79th13 206 8.3% 6/28/2018 $9,495,500 $46,094 $28

1054 E 57th Pl- 1978

Waterstone Apartments14 243 8.2% 3/20/2019 $9,150,000 $37,654 $53

2929 S 129th East Pl- 1984

Ashwood Apartments15 144 4.2% 8/20/2018 $6,650,000 $46,180 $58

1801 S 132nd East Pl- 1974

Summer Stone Duplexes16 172 1.2% 3/8/2019 $6,517,000 $37,889 $41

9743 E 12th St- 1973

Madison Park Apartments17 128 3.1% 6/14/2018 $5,000,000 $39,062 $46

444 S Mingo Rd- 1968

Meadowbrook Apartments18 116 7.8% 10/12/2018 $4,100,000 $35,344 $42

10156 E Admiral Blvd- 1971

The Addison Apartments19 160 13.1% 12/21/2018 $3,950,000 $24,687 $29

4646 S Fulton Ave- 1980

Heston Pointe20 60 18.3% 5/29/2018 $3,700,000 $61,666 $77


Page 13





















EconomyTulsa Multi-Family

Tulsa’s job market has improved significantly, eclipsingthe national average for year-over-year job growth inthe last quarter of 2017 and remaining above throughoutlast year into 2019. Employment gains have continuedthroughout the year, and companies are starting to feelthe stability of the economy for the first time since the oildownturn in 2014-15.

With the heavy reliance of the energy industry, Tulsa feltthe brunt of the decrease in oil prices with the loss ofthousands of jobs. Since then, employment growth hasregained momentum and the unemployment rate hasreturned to the same levels as when the oils pricesstarted to dive. The energy market has certainly begun to

regain its footing, and Oklahoma’s rig count hascontinued to rise reaching a three-year high as of 19Q1.Much of this success can be attributed to the continuedgrowth in the Cana Woodford Basin – home to theSCOOP and STACK fields.

The aerospace manufacturing sector, another one ofTulsa’s major industries, has also started to begin addingback jobs. The Tulsa area has nearly 20,000 aerospaceworkers, led by giant manufacturers and overhaulfacilities at Spirit AeroSystems, NORDAM and AmericanAirlines. Aerospace parts manufacturing has continued toexpand in the metro and now has about 1.4% higherconcentration relative to the nation as a whole.

TULSA EMPLOYMENT BY INDUSTRY IN THOUSANDS



0.13%0.35%0.61%-0.09%1.69%1.46%1.455Manufacturing


0.33%0.68%0.80%0.64%0.06%-0.75%1.048 Retail Trade

0.43%0.09%0.91%-0.32%1.28%-0.33%0.924Financial Activities

0.77%0.82%-0.03%-0.23%0.49%-3.00%0.855Government


0.33%-0.11%2.09%1.25%2.06%0.76%1.072Education and Health Services

0.91%0.55%2.48%0.58%2.51%-0.17%0.960Professional and Business Services

0.45%0.15%-0.06%-2.70%-0.05%-1.99%0.87Information


0.23%0.78%0.91%1.85%1.15%0.99%1.221Other Services





Page 14

EconomyTulsa Multi-Family



DEMOGRAPHIC TRENDS



10-Year Change



Population 328,988,8131,000,767 0.7% 0.7% 0.8% 0.7% 0.7% 0.7%

Households 121,188,641382,755 0.5% 0.6% 0.6% 0.7% 0.5% 0.6%


Labor Force 163,511,781489,074 0.2% 1.1% 1.0% 0.6% 0.6% 0.5%

Unemployment 3.8%3.2% -0.8% -0.1% -0.3% -0.5% - -


POPULATION GROWTH




Page 15

SubmarketsTulsa Multi-Family

TULSA SUBMARKETS


Page 16


SUBMARKET INVENTORY



Inventory


1 Creek County 384 0.7% 12 0 0 0% -9 0 0 0% -

2 Downtown Tulsa 3,370 5.7% 8 4 402 11.9% 1166 1 62 1.8% 2

3 East Tulsa 6,163 10.5% 3 0 0 0% -31 0 0 0% -

4 Midtown South 6,684 11.3% 2 0 0 0% -54 0 0 0% -

5 Midtown Tulsa 4,065 6.9% 4 0 0 0% -85 0 0 0% -

6 North Tulsa 3,505 5.9% 7 2 33 0.9% 345 1 10 0.3% 3

7 Okmulgee County 150 0.3% 13 0 0 0% -6 0 0 0% -

8 Osage County 31 0.1% 15 0 0 0% -1 0 0 0% -

9 Pawnee County 82 0.1% 14 0 0 0% -2 0 0 0% -

10 Riverside/Peoria 3,787 6.4% 5 0 0 0% -40 0 0 0% -

11 Rogers County 1,030 1.7% 10 0 0 0% -22 1 9 0.9% 4

12 South Tulsa County 3,657 6.2% 6 0 0 0% -26 2 107 2.9% 1

13 South Tulsa/Broken Arrow 23,631 40.1% 1 1 90 0.4% 2111 0 0 0% -

14 Wagoner County 838 1.4% 11 0 0 0% -8 0 0 0% -

15 West Tulsa County 1,534 2.6% 9 0 0 0% -16 0 0 0% -

SUBMARKET RENT

Yr. Growth

Asking Rents


Effective Rents


1 Creek County 7.5%13 3.4% 13$679 4$0.76 1.9%$0.74$666

2 Downtown Tulsa 1.8%1 1.3% 1$1,059 6$1.31 1.6%$1.29$1,042

3 East Tulsa 5.7%9 3.3% 9$625 7$0.79 1.4%$0.78$616

4 Midtown South 5.3%12 2.5% 12$646 2$0.77 2.2%$0.76$632

5 Midtown Tulsa 1.8%11 1.1% 11$619 8$0.78 1.4%$0.77$610

6 North Tulsa 6.3%4 4.3% 4$789 10$0.90 1.1%$0.89$780

7 Okmulgee County 1.0%10 1.0% 10$584 13$0.78 0.8%$0.78$580

8 Osage County 2.0%15 2.0% 15$421 12$0.60 0.8%$0.60$417

9 Pawnee County 3.4%14 0.6% 14$491 14$0.67 0.5%$0.67$489

10 Riverside/Peoria 3.0%7 2.1% 7$652 5$0.83 1.8%$0.82$640

11 Rogers County 5.5%8 2.9% 8$700 15$0.81 0.3%$0.81$698

12 South Tulsa County 8.1%2 5.5% 2$922 9$1.01 1.1%$1.00$911

13 South Tulsa/Broken Arrow 4.9%6 2.0% 6$730 3$0.86 2.0%$0.84$716

14 Wagoner County 1.0%5 1.1% 5$802 1$0.87 2.9%$0.85$778

15 West Tulsa County 6.1%3 2.5% 3$694 11$0.92 0.9%$0.91$688


Page 17

































12 Month Absorption


Vacancy


1 Creek County 43 11.1% -2 0.6% 712

2 Downtown Tulsa 459 13.6% 0.3221 6.6% 314

3 East Tulsa 389 6.3% -164 2.7% 43

4 Midtown South 841 12.6% -(75) -1.1% 1413

5 Midtown Tulsa 395 9.7% -(72) -1.8% 1311

6 North Tulsa 268 7.7% 6.42 0% 97

7 Okmulgee County 12 7.9% -1 1.0% 109

8 Osage County 2 7.4% -0 0% -6

9 Pawnee County 3 3.3% -0 0% -1

10 Riverside/Peoria 571 15.1% -(84) -2.2% 1515

11 Rogers County 50 4.8% 0.615 1.5% 62

12 South Tulsa County 241 6.6% 0.3366 10.0% 14

13 South Tulsa/Broken Arrow 1,844 7.8% -347 1.5% 28

14 Wagoner County 56 6.7% -2 0.2% 85

15 West Tulsa County 121 7.9% -41 2.7% 510


Page 18
















AppendixTulsa Multi-Family


AbsorptionInventory


2023 411 0.7%60,521 132 0.2% 3.1

2022 396 0.7%60,110 63 0.1% 6.3

2021 339 0.6%59,714 53 0.1% 6.4

2020 204 0.3%59,375 48 0.1% 4.3

2019 366 0.6%59,171 355 0.6% 1.0

YTD 106 0.2%58,911 234 0.4% 0.5

2018 82 0.1%58,805 1,556 2.6% 0.1

2017 1,594 2.8%58,723 883 1.5% 1.8

2016 481 0.8%57,129 (755) -1.3% -

2015 686 1.2%56,648 327 0.6% 2.1

2014 1,070 1.9%55,962 792 1.4% 1.4

2013 495 0.9%54,892 637 1.2% 0.8

2012 669 1.2%54,397 1,057 1.9% 0.6

2011 719 1.4%53,728 826 1.5% 0.9

2010 12 0%53,009 293 0.6% 0

2009 1,277 2.5%52,997 609 1.1% 2.1

2008 1,086 2.1%51,720 210 0.4% 5.2

2007 200 0.4%50,634 649 1.3% 0.3


AbsorptionInventory


2023 419 2.8%15,562 325 2.1% 1.3

2022 403 2.7%15,143 289 1.9% 1.4

2021 347 2.4%14,740 220 1.5% 1.6

2020 212 1.5%14,393 159 1.1% 1.3

2019 370 2.7%14,181 340 2.4% 1.1

YTD 106 0.8%13,917 218 1.6% 0.5

2018 72 0.5%13,811 896 6.5% 0.1

2017 1,494 12.2%13,739 1,059 7.7% 1.4

2016 397 3.4%12,245 327 2.7% 1.2

2015 1,304 12.4%11,848 612 5.2% 2.1

2014 1,108 11.7%10,544 863 8.2% 1.3

2013 629 7.1%9,436 640 6.8% 1.0

2012 626 7.7%8,807 728 8.3% 0.9

2011 712 9.5%8,181 594 7.3% 1.2

2010 0 0%7,469 48 0.6% 0

2009 910 13.9%7,469 867 11.6% 1.0

2008 476 7.8%6,559 305 4.7% 1.6

2007 200 3.4%6,083 330 5.4% 0.6


Page 19



AbsorptionInventory


2023 0 0%29,235 (122) -0.4% 0

2022 0 0%29,235 (143) -0.5% 0

2021 0 0%29,235 (106) -0.4% 0

2020 0 0%29,235 (68) -0.2% 0

2019 0 0%29,235 52 0.2% 0

YTD 0 0%29,235 53 0.2% 0

2018 10 0%29,235 386 1.3% 0

2017 100 0.3%29,225 (151) -0.5% -

2016 98 0.3%29,125 (642) -2.2% -

2015 (211) -0.7%29,027 (32) -0.1% 6.6

2014 0 0%29,238 (110) -0.4% 0

2013 0 0%29,238 38 0.1% 0

2012 75 0.3%29,238 257 0.9% 0.3

2011 0 0%29,163 182 0.6% 0

2010 12 0%29,163 167 0.6% 0.1

2009 367 1.3%29,151 6 0% 61.2

2008 610 2.2%28,784 30 0.1% 20.3

2007 0 0%28,174 252 0.9% 0


AbsorptionInventory


2023 (8) -0.1%15,724 (71) -0.5% 0.1

2022 (7) 0%15,732 (83) -0.5% 0.1

2021 (8) -0.1%15,739 (61) -0.4% 0.1

2020 (8) -0.1%15,747 (43) -0.3% 0.2

2019 (4) 0%15,755 (37) -0.2% 0.1

YTD 0 0%15,759 (37) -0.2% 0

2018 0 0%15,759 274 1.7% 0

2017 0 0%15,759 (25) -0.2% 0

2016 (14) -0.1%15,759 (440) -2.8% 0

2015 (407) -2.5%15,773 (253) -1.6% 1.6

2014 (38) -0.2%16,180 39 0.2% -

2013 (134) -0.8%16,218 (41) -0.3% 3.3

2012 (32) -0.2%16,352 72 0.4% -

2011 7 0%16,384 50 0.3% 0.1

2010 0 0%16,377 78 0.5% 0

2009 0 0%16,377 (264) -1.6% 0

2008 0 0%16,377 (125) -0.8% 0

2007 0 0%16,377 67 0.4% 0


Page 20



Market RentVacancy


Effective Rent

(0.3)2023 10.6% 0.46,388 $757 $0.90 0.5% $744 $0.89

(0.1)2022 10.2% 0.56,108 $753 $0.90 0.8% $740 $0.88

(0.6)2021 9.7% 0.45,775 $747 $0.89 0.9% $734 $0.88

(0.2)2020 9.2% 0.25,489 $740 $0.88 1.5% $728 $0.87

(0.1)2019 9.0% (0.2)5,332 $729 $0.87 1.6% $717 $0.86

(0.6)YTD 9.0% (0.2)5,294 $726 $0.87 1.2% $713 $0.85

1.02018 9.2% (2.5)5,418 $718 $0.86 1.8% $696 $0.83

1.92017 11.7% 0.96,891 $705 $0.84 0.8% $678 $0.81

(3.1)2016 10.8% 2.16,176 $700 $0.84 -1.1% $675 $0.81

(0.5)2015 8.7% 0.54,945 $707 $0.84 2.0% $692 $0.83

(0.4)2014 8.2% 0.34,587 $693 $0.83 2.5% $687 $0.82

1.12013 7.8% (0.3)4,308 $676 $0.81 2.9% $666 $0.80

0.42012 8.2% (0.8)4,452 $657 $0.79 1.7% $653 $0.78

0.92011 9.0% (0.3)4,837 $646 $0.77 1.4% $641 $0.77

2.32010 9.3% (0.5)4,943 $637 $0.76 0.5% $633 $0.76

(4.5)2009 9.9% 1.05,223 $634 $0.76 -1.8% $629 $0.75

02008 8.8% 1.54,559 $646 $0.77 2.7% $641 $0.77

-2007 7.3% (0.9)3,684 $629 $0.75 2.7% $625 $0.75


Market RentVacancy


Effective Rent

(0.3)2023 9.6% 0.41,499 $982 $1.04 0.5% $967 $1.03

(0.2)2022 9.3% 0.51,405 $977 $1.04 0.8% $962 $1.02

(0.6)2021 8.8% 0.71,290 $970 $1.03 0.9% $955 $1.02

(0.3)2020 8.1% 0.31,164 $961 $1.02 1.5% $946 $1.01

(0.3)2019 7.8% (0.7)1,111 $947 $1.01 1.9% $932 $0.99

(0.8)YTD 7.7% (0.9)1,071 $942 $1.00 1.3% $927 $0.99

1.62018 8.5% (6.0)1,180 $930 $0.99 2.2% $906 $0.96

2.72017 14.6% 1.82,001 $910 $0.97 0.5% $875 $0.93

(3.8)2016 12.8% 0.11,567 $905 $0.96 -2.2% $869 $0.92

02015 12.7% 5.01,499 $925 $0.98 1.6% $905 $0.96

(0.8)2014 7.7% 1.7808 $910 $0.97 1.7% $902 $0.96

1.22013 6.0% (0.5)564 $895 $0.95 2.5% $883 $0.94

(0.5)2012 6.5% (1.7)574 $874 $0.93 1.2% $870 $0.93

1.22011 8.3% 0.8675 $863 $0.92 1.8% $855 $0.91

3.52010 7.4% (0.6)556 $848 $0.90 0.5% $843 $0.90

(5.4)2009 8.1% (0.5)604 $844 $0.90 -3.0% $837 $0.89

(0.1)2008 8.6% 2.1562 $869 $0.93 2.4% $864 $0.92

-2007 6.4% (2.4)390 $849 $0.90 2.5% $843 $0.90


Page 21



Market RentVacancy


Effective Rent

(0.3)2023 10.3% 0.43,003 $701 $0.87 0.7% $687 $0.85

(0.1)2022 9.9% 0.52,880 $696 $0.86 1.0% $682 $0.84

(0.6)2021 9.4% 0.42,737 $690 $0.85 1.1% $675 $0.84

0.32020 9.0% 0.22,632 $682 $0.84 1.7% $668 $0.83

02019 8.8% (0.2)2,563 $671 $0.83 1.4% $657 $0.81

(0.3)YTD 8.8% (0.2)2,564 $669 $0.83 1.1% $654 $0.81

0.52018 8.9% (1.3)2,616 $661 $0.82 1.4% $637 $0.79

2.02017 10.2% 0.82,994 $652 $0.80 1.0% $624 $0.77

(3.1)2016 9.4% 2.52,738 $646 $0.80 -1.0% $621 $0.77

(0.7)2015 6.9% (0.6)2,001 $652 $0.81 2.0% $638 $0.79

(0.6)2014 7.5% 0.42,180 $640 $0.79 2.7% $633 $0.78

1.22013 7.1% (0.1)2,068 $623 $0.77 3.3% $612 $0.76

0.82012 7.2% (0.6)2,107 $603 $0.74 2.2% $599 $0.74

0.52011 7.8% (0.6)2,288 $590 $0.73 1.4% $586 $0.72

2.62010 8.5% (0.5)2,469 $582 $0.72 0.9% $577 $0.71

(5.3)2009 9.0% 1.12,624 $577 $0.71 -1.7% $572 $0.71

0.72008 7.9% 1.92,265 $587 $0.72 3.6% $582 $0.72

-2007 6.0% (0.9)1,685 $567 $0.70 2.9% $563 $0.70


Market RentVacancy


Effective Rent

(0.3)2023 12.0% 0.41,886 $637 $0.81 0.2% $631 $0.80

(0.1)2022 11.6% 0.51,823 $636 $0.81 0.4% $630 $0.80

(0.4)2021 11.1% 0.41,748 $634 $0.80 0.5% $627 $0.80

(0.7)2020 10.8% 0.21,694 $630 $0.80 0.9% $624 $0.79

(0.3)2019 10.5% 0.21,658 $625 $0.79 1.6% $619 $0.79

(0.9)YTD 10.5% 0.21,660 $621 $0.79 1.0% $615 $0.78

1.12018 10.3% (1.7)1,623 $615 $0.78 1.9% $601 $0.76

0.22017 12.0% 0.21,896 $603 $0.77 0.8% $585 $0.74

(2.1)2016 11.9% 2.71,871 $598 $0.76 0.6% $585 $0.74

(0.7)2015 9.2% (0.7)1,445 $595 $0.75 2.7% $585 $0.74

1.02014 9.9% (0.5)1,600 $579 $0.73 3.4% $575 $0.73

0.92013 10.3% (0.5)1,677 $560 $0.71 2.4% $554 $0.70

0.82012 10.8% (0.6)1,770 $547 $0.69 1.6% $542 $0.69

1.32011 11.4% (0.3)1,874 $538 $0.68 0.7% $534 $0.68

(0.6)2010 11.7% (0.5)1,918 $534 $0.68 -0.5% $530 $0.67

(1.1)2009 12.2% 1.61,995 $537 $0.68 0.1% $533 $0.68

(1.6)2008 10.6% 0.81,733 $537 $0.68 1.1% $533 $0.68

-2007 9.8% (0.4)1,608 $531 $0.67 2.8% $527 $0.67


Page 22


OVERALL SALES





2023 -- - -- 179- $61,692 7.6%

2022 -- - -- 179- $61,525 7.6%

2021 -- - -- 178- $61,423 7.6%

2020 -- - -- 179- $61,571 7.5%

2019 -- - -- 178- $61,183 7.5%

YTD $85.8 M9 1.9% $77,417$9,530,889 1755.5% $60,452 7.4%

2018 $343.4 M61 13.4% $60,122$6,359,569 1747.4% $60,097 7.4%

2017 $191.5 M47 7.2% $50,236$5,470,022 1628.1% $55,778 7.5%

2016 $64.4 M37 4.5% $32,679$2,146,981 16010.3% $55,192 7.4%

2015 $221.9 M46 8.9% $44,376$5,043,764 1598.2% $54,815 7.4%

2014 $383.6 M69 15.8% $43,488$5,726,074 1518.5% $52,030 7.5%

2013 $172.1 M39 8.8% $37,527$5,061,750 1398.3% $48,068 7.8%

2012 $132.1 M31 6.4% $39,562$4,553,669 1349.2% $46,259 7.9%

2011 $64.9 M25 4.6% $26,825$3,416,716 1287.4% $43,998 8.0%

2010 $38.8 M18 2.9% $25,334$2,156,181 1179.9% $40,222 8.3%

2009 $68.1 M25 5.2% $24,814$2,836,010 8910.2% $30,668 9.2%

2008 $99.2 M8 4.7% $41,012$12,400,875 1007.2% $34,460 8.8%



4 & 5 STAR SALES





2023 -- - -- 176- $98,985 7.1%

2022 -- - -- 175- $98,820 7.1%

2021 -- - -- 175- $98,757 7.0%

2020 -- - -- 176- $99,035 7.0%

2019 -- - -- 175- $98,375 6.9%

YTD $65.8 M2 4.5% $104,365$32,875,000 1735.5% $97,504 6.8%

2018 $122.4 M4 8.6% $103,599$30,587,500 1715.8% $96,588 6.9%

2017 $24.1 M2 3.0% $59,179$12,072,500 158- $89,050 7.0%

2016 -- - -- 158- $89,166 6.9%

2015 $34.3 M1 2.4% $120,351$34,300,000 158- $89,296 6.8%

2014 $146.2 M6 14.5% $95,610$24,364,701 152- $85,424 6.9%

2013 $67.2 M3 8.5% $83,582$22,400,000 1416.5% $79,271 7.2%

2012 $91.9 M3 11.8% $88,536$30,633,333 1376.8% $77,079 7.2%

2011 $1.6 M1 1.9% $9,987$1,568,000 130- $73,277 7.3%

2010 $11.0 M1 2.0% $72,697$11,050,000 1198.3% $66,807 7.5%

2009 -- - -- 90- $50,777 8.4%

2008 $27.6 M2 6.5% $64,637$13,800,000 1007.0% $56,345 8.1%




Page 23


3 STAR SALES





2023 -- - -- 186- $53,866 7.5%

2022 -- - -- 185- $53,620 7.4%

2021 -- - -- 184- $53,429 7.4%

2020 -- - -- 184- $53,473 7.3%

2019 -- - -- 183- $53,052 7.3%

YTD $8.3 M2 0.6% $43,973$4,133,500 181- $52,425 7.2%

2018 $156.3 M21 16.1% $56,698$10,417,326 1806.3% $52,156 7.2%

2017 $132.3 M14 8.8% $55,094$12,025,545 1647.0% $47,681 7.3%

2016 $24.4 M7 3.4% $39,587$4,885,000 1629.1% $46,826 7.3%

2015 $120.0 M14 10.2% $40,343$8,569,971 1616.4% $46,537 7.3%

2014 $188.5 M26 17.8% $36,179$7,248,266 1518.0% $43,907 7.4%

2013 $62.7 M9 6.7% $32,150$6,965,778 1398.3% $40,398 7.7%

2012 $21.7 M8 3.9% $20,944$3,102,714 13310.1% $38,522 7.9%

2011 $50.5 M8 5.6% $31,003$6,316,875 1266.9% $36,517 8.0%

2010 $20.1 M5 3.4% $20,356$4,014,250 11511.7% $33,405 8.3%

2009 $38.8 M8 5.2% $25,552$4,854,844 88- $25,548 9.2%

2008 $48.5 M4 4.6% $36,270$12,114,018 1007.1% $28,986 8.8%



1 & 2 STAR SALES





2023 -- - -- 171- $42,032 8.5%

2022 -- - -- 171- $42,009 8.5%

2021 -- - -- 171- $42,039 8.5%

2020 -- - -- 172- $42,261 8.4%

2019 -- - -- 172- $42,184 8.4%

YTD $11.8 M5 1.8% $40,555$2,352,200 1705.5% $41,863 8.3%

2018 $64.8 M36 12.7% $36,511$1,851,624 1698.8% $41,387 8.3%

2017 $35.0 M31 7.8% $34,955$1,592,035 1649.0% $40,306 8.1%

2016 $40.0 M30 10.2% $29,531$1,599,378 16110.8% $39,578 8.1%

2015 $67.6 M31 11.4% $38,832$2,332,621 1579.7% $38,569 8.1%

2014 $49.0 M37 13.0% $23,514$1,400,109 1499.3% $36,496 8.2%

2013 $42.2 M27 12.7% $23,039$1,918,523 1378.9% $33,700 8.6%

2012 $18.4 M20 8.2% $14,598$970,389 13211.2% $32,367 8.6%

2011 $12.8 M16 4.2% $20,244$1,281,460 1268.2% $31,045 8.7%

2010 $7.7 M12 2.4% $19,518$640,833 1169.8% $28,504 9.0%

2009 $29.2 M17 7.5% $23,897$1,826,594 8910.2% $21,738 10.0%

2008 $23.2 M2 4.0% $35,291$11,575,464 1007.5% $24,557 9.6%




Page 24





Under Construction

Units

Deliveries

Bldgs Units

2023 60,522 10.6%- - 419 - -- 411

2022 60,111 10.2%- - 403 - -- 395

2021 59,716 9.7%- - 347 - -- 340

2020 59,376 9.2%- - 212 - -- 204

2019 59,172 9.0%- - 370 - -- 367

YTD 58,911 9.0%622 2 106 7 5252 106

2018 58,805 9.2%620 3 82 6 4183 82

2017 58,723 11.7%617 11 1,810 5 35910 1,594

2016 57,129 10.8%607 6 495 10 1,8035 481

2015 56,648 8.7%602 7 1,325 7 6165 686

2014 55,962 8.2%597 4 1,108 8 1,3612 1,070

2013 54,892 7.8%595 3 629 5 1,393(5) 495

2012 54,397 8.2%600 3 701 5 1,1411 669

2011 53,728 9.0%599 4 719 3 7014 719

2010 53,009 9.3%595 1 12 5 7941 12

2009 52,997 9.9%594 6 1,277 4 7246 1,277

2008 51,720 8.8%588 4 1,086 6 1,2774 1,086

2007 50,634 7.3%584 1 200 6 1,7261 200


Page 25

Fayetteville, Arkansas





Northwest Arkansas Market

PREPARED BY

Alexander Philips

CEO & CIO




Vacancy 3

Rent 5

Construction 8


Sales 11


Economy 14



Vacancy & Rent 20

Sale Trends 22


Northwest Arkansas Multi-Family


OverviewNorthwest Arkansas Multi-Family



491Vacancy Rate


2.7%Northwest Arkansas has formed a rock-solid economy,with swelling population growth driving recent apartmentconstruction. While 2018’s totals were below historicalnorms, 2017 saw more units deliver than any other yearin a decade. This supply-side pressure caused animmediate uptick in vacancies, but persistent demand,coupled with low deliveries throughout 2018, has allowedfundamentals to strengthen significantly. Vacancy ratesare just below historical averages, and rent growthcontinues to post impressive results.

Fundamentals will be tested in the years to come, withanother heavy wave of development primed to hit. Nearly2,700 units are under construction, and a plethora is in

proposal stages. Much of the concentration continues tobe in the North, with a heavy focus on DowntownBentonville as well as in Rogers, specifically PinnacleHills.

Overall, apartments located near the metro's major jobcenters and the University of Arkansas continue toperform well. Employment growth has continued tobolster, anchored by the three Fortune 500 companieslocated here—Walmart, Tysons, and J. B. Hunt—as wellas related support companies located in the area. Year-over-year job gains in Northwest Arkansas haveoutpaced the national average every year since 2010.

KEY INDICATORS



Under ConstrUnits

$9357.7%7,0954 & 5 Star $920 67 0 2,159

$6924.0%17,7433 Star $689 48 33 543

$6363.6%3,7061 & 2 Star $633 (3) 0 0

$7564.8%28,544Market $749 112 33 2,702

ForecastAverage

HistoricalAverage


5.6%4.8%0.5%Vacancy Change (YOY) 8.8% 2008 Q4 2.1% 2016 Q3

1,059809491Absorption Units 1,909 2004 Q3 (1) 2014 Q1

1,193860659Delivered Units 2,323 2017 Q3 0 2015 Q1




N/A$67.9M$295 MSales Volume $300.5M 2019 Q1 $1.0M 2008 Q2


Page 2

VacancyNorthwest Arkansas Multi-Family

Despite some recent growing pains caused by a hugeyear of deliveries in 2017, Northwest Arkansas’apartment market has benefited from a strong localeconomy and an expanding labor force. With Walmart,Tysons, and J.B. Hunt all continuing to expand within themetro, job growth is likely to persist in the years to come.Suppliers, of both physical items and services, who selldirectly to Walmart continue to flock to the metro.Overall, the area has added over 16,000 jobs in the pasttwo years and has lowered its unemployment rate toroughly 3%.

As a result, occupancies have remained healthy recently,even during years of above-average supply. With highdemand and low availability, developers have takennotice, with nearly 2,700 units currently underconstruction and many in proposal stages as well. Due tothe robust population growth, this is expected to be the

norm for years to come. Demand for apartmentscontinues to reach new heights, and many residentshave chosen to rent rather than buy.

Alternatives for single-family residences may continue togrow, as well. With a limited supply of single-familyhomes and high demand, home prices in the metro haveseen a rapid appreciation over the past five years,growing by nearly 50%. These prices have becomeunattainable for many, with increases significantlyoutpacing wage growth. Averages are now exceedingneighboring metros such as Tulsa and even OklahomaCity, and due to rising labor costs, this might not be thepeak. On the flip side, household incomes have keptpace with the rising rental rates since the recession,making it easy for residents to afford apartments thataverage about $760/month.



Page 3

VacancyNorthwest Arkansas Multi-Family

VACANCY RATE

VACANCY BY BEDROOM


Page 4

RentNorthwest Arkansas Multi-Family

Northwest Arkansas experienced strong rent gains in2018 relative to metro-averages. With robust demandcoupled with a slow year of deliveries, pricing power hasreturned to landlords. Asking rents in the metro are about$760/month, and year-over-year growth is nearly 2.7%. This comes after a peak year a development in 2017,which caused rent levels to fall. If this is any indicator tothe supply expected in the years to come, rents mayfollow similar paths.

The Central Benton County Submarket, which has seenmany of the deliveries in the metro over the past 12months, boasts the highest rents in the metro at justabout $835/unit. The nearly 3,000 units delivered inCentral Benton County since 2015 have particularly highasking rents, averaging about $1,000/unit, and were atroughly 90% occupancy as of April. These developmentscarry above-average asking rents because they areheavy in amenities and fall under the 4 Star designation.



Page 5





Page 6






Northwest Arkansas $0.62 $5.72$0.16$0.04$0.62$0.38$1.01$0.70$0.40$0.60$0.54 $0.65

Central Benton Cou… $0.62 $5.72$0.16$0.04$0.62$0.38$1.01$0.70$0.40$0.60$0.54 $0.65

Fayetteville $0.62 $5.72$0.16$0.04$0.62$0.38$1.01$0.70$0.40$0.60$0.54 $0.65

Northeast Washingt… $0.62 $5.72$0.16$0.04$0.62$0.38$1.01$0.70$0.40$0.60$0.54 $0.65

Southwest Benton… $0.62 $5.72$0.16$0.04$0.62$0.38$1.01$0.70$0.40$0.60$0.54 $0.65








East Benton County $0.10 $3.80$0.16$0.04$0.39$0.31$0.62$0.45$0.28$0.43$0.40 $0.62

Fayetteville $0.11 $3.82$0.16$0.04$0.39$0.31$0.62$0.46$0.28$0.43$0.40 $0.62

Madison County $0.10 $3.80$0.16$0.04$0.39$0.31$0.62$0.45$0.28$0.43$0.40 $0.62

McDonald County $0.81 $5.97$0.19$0.06$0.54$0.32$0.82$0.96$0.49$0.64$0.38 $0.76



Southwest Washing… $0.10 $3.80$0.16$0.04$0.39$0.31$0.62$0.45$0.28$0.43$0.40 $0.62

West Benton County $0.10 $3.80$0.16$0.04$0.39$0.31$0.62$0.45$0.28$0.43$0.40 $0.62








East Benton County $0.10 $3.61$0.15$0.04$0.37$0.30$0.58$0.43$0.26$0.41$0.38 $0.59

Fayetteville $0.10 $3.61$0.15$0.04$0.37$0.30$0.58$0.43$0.26$0.41$0.38 $0.59

McDonald County $0.64 $5.13$0.14$0.06$0.47$0.31$0.77$0.86$0.40$0.61$0.38 $0.49



Southwest Washing… $0.10 $3.61$0.15$0.04$0.37$0.30$0.58$0.43$0.26$0.41$0.38 $0.59

West Benton County $0.10 $3.61$0.15$0.04$0.37$0.30$0.58$0.43$0.26$0.41$0.38 $0.59



Page 7

ConstructionNorthwest Arkansas Multi-Family

A historic supply wave is underway following the lowlevels of construction from years following the recession.Just over 4,200 units have delivered since 2015, abouthalf of which came on line in 2017. These units haveleased well and, as of 19Q2, were close to 85%occupied. While 2018 experienced below-averagesupply, the pipeline remains heavy, and 2019 may beclose to cyclical highs in terms of units delivered, barringconstruction delays.

The Central Benton County Submarket, home toWalmart’s national headquarters, has grown its inventoryby close to 20% in the past two years and is expected toadd another 2,500 units in the next several years. Thejob growth created by Walmart has made this areaattractive to developers such as Watermark Residential,whose 4 Star, 220-unit Watermark on Walnut Creekstabilized during the second quarter of 2018.

Rogers’ local economy remains strong, with more than

1,100 jobs created in the city alone in 2018.Development is plentiful, and multifamily propertiescontinue to pop up. A true live/work/play environment isin the midst, with projects such as Pinnacle Heightscoming to fruition. This $100 million mixed-use projectbroke ground in early 2019 and will add about 300market-rate apartments to Pinnacle Hills, with hotels,retail, and many office developments nearby.

The Fayetteville Submarket is seeing plenty of action, aswell, with over 1,000 units delivered since 2017. Thisincludes Watermark Residential’s 4 Star, 208-unitWatermark at Steele Crossing and the 4 Star, 308-unitUptown Fayetteville Apartments. Both of these assetsare located along Steele Boulevard between NorthwestArkansas Mall and the Fulbright Expressway. Localdeveloper Lindsey & Associates has been present in themetro since the 1980s and has developed over 4,500units in that time. The company has been recently activewith the Greens at Fayetteville community.



Page 8

Under Construction PropertiesNorthwest Arkansas Multi-Family

Properties

14Units

2,564Percent of Inventory

8.9%Avg. No. Units


UNDER CONSTRUCTION


Jun-20181401 NE John Deshields…

Crystal Flats616 4 Aug-2020

-

Crystal Pickens Llc1

Mar-2018303 SE Ranger

Walton Crossing600 - Jun-2019

Lindsey & Associates, Inc.

Lindsey & Associates, Inc.2

Jan-20164000 S Dixieland Rd

Woodland Park427 2 Jun-2019

Orchard Properties LLC

Orchard Properties LLC3

Feb-20193941 S Champions Dr

West Village300 3 Dec-2020

Cushman & Wakefield Sage Part…

HUNT Ventures, LLC4

Mar-2018902 Brick Ave

Brick Avenue Lofts252 1 Jun-2019

Specialized Real Estate Group

Specialized Real Estate Group5

Jan-20192901 S 26th Pl

Palisades at Pleasant Cr…180 - Aug-2019

Engage Management

Engage Management6

Aug-2018735 W 15th St

Backwater Cove Apartm…69 3 Aug-2019

-

Baron Air Investments Llc7


Page 9








Under Construction PropertiesNorthwest Arkansas Multi-Family

UNDER CONSTRUCTION


Jun-2018N Gregg Ave

Gregg Avenue Townhom…32 2 Jun-2019

Curry

Curry8

Mar-2019620 Highway 16

L&A Melgar, LLC Apartm…29 - Mar-2020

-

-9

Jan-2017521 N College Ave

Twin Arch Apartments17 1 Jun-2019

Mark Zweig Inc

Mark Zweig Inc10

Jan-2019234 SW 7th St

17 3 Sep-2019-

-11

Jul-2017E South St

SoCo1010 2 Jun-2019

High Street Real Estate Develop…

High Street Real Estate Develop…12

Sep-20171910-1946 W Maine St

Henson Hill9 2 Jun-2019

RPH Real Estate

RPH Real Estate13

Jun-2018400-422 SW C St

6 - Jun-2019-

-14


Page 10








SalesNorthwest Arkansas Multi-Family

A trio of motivators—a booming economy, strongpopulation growth and solid fundamentals—continue topush investors into Northwest Arkansas. Early signsshow that 2019 may be a pinnacle year in terms oninvestments for the multifamily market. As of April, morevolume has entered the market than total annual volumein five of the past seven years. This activity is anchoredby the sale of the 536-unit Sullivan Square apartmentsfor $63.6 million ($118,000/unit). Minnesota-basedTimberland Partners acquired this property in earlyMarch 2019, setting a record for highest sale price thiscycle.

Momentum continued in 2018, with more than $220million in sales volume trading hands, a cyclical peak.The presence of out-of-state investors cannot beignored, representing about 75% of the buyers. Forexample, the highest recorded deal was the Houston-based Sung Holdings Group acquisition of the 308-unit

Uptown Fayetteville Apartments for $55.6 million($180,000/unit) in early September. Also, earlier in 2018the 4 Star, 194-unit Harbin Pointe Apartments, whichwas acquired by Connecticut-based Hamilton PointInvestments for $16.7 million ($86,000/unit).

The continued eye from out-of-state investors hasincreased values of multifamily properties, as well as allcommercial assets throughout Northwest Arkansas.However, in-state investors are still finding value withinthe metro. The $33 million sale ($90,000/unit) ofMountain Ranch Apartments occurred in February 2017,with Tulsa-based Capital Assets selling to BSR Trust ata 6.5% cap rate. The 4 Star asset of 360 units was 95%leased at the time of sale. Also a regional player, LittleRock-based BSR has been in acquisition mode latelyand said in a press release that it acquired the propertybecause “the economic growth story in NorthwestArkansas is impossible to ignore.”



Page 11

Sales Past 12 MonthsNorthwest Arkansas Multi-Family

Sale Comparables







Sale Price $147,638 $11,891,249 $3,595,000 $63,600,000

Price Per Unit $6,969 $104,483 $72,500 $294,039

Cap Rate 5.0% 6.6% 5.8% 9.0%






Average Unit SF 500 892 883 1,250

Year Built 1970 2003 2007 2019

Star Rating 3.1


Page 12

Sales Past 12 MonthsNorthwest Arkansas Multi-Family




1102 SW Sullivan Way- 2017

Sullivan Square1 535 5.1% 3/7/2019 $63,600,000 $118,878 $130

3959 N Steele Blvd- 2017

Uptown Fayetteville Apartments2 308 5.5% 9/5/2018 $55,600,000 $180,519 $218

5900 W Stoney Brook Dr- 2007

Ranch at Pinnacle Point3 392 9.2% 12/20/2018 $48,425,000 $123,533 $134

257 Arborside Rd- 2016

Towne Park at Har-Ber Apart…4 237 3.0% 10/25/2018 $28,900,000 $121,940 $118

513 Dodson Rd- 2007

Parc At Rogers5 250 4.4% 11/19/2018 $28,232,612 $112,930 $166

5325 N Oak St- 2004

Chapel Ridge Springdale6 184 44.6% 10/19/2018 $13,350,000 $72,554 $70

1021 S Razorback Rd- 2006

The Quarters on Razorback…7 112 9.8% 8/24/2018 $11,250,000 $100,446 $115

401 SW A St- 2015

Briq on 4th Street8 62 1.6% 7/16/2018 $8,250,000 $133,064 $163

5806 SW Crozier Cir- 2017

Parc at Bentonville9 216 11.1% 11/19/2018 $7,615,218 $35,255 $95

3001 W Wedington Dr- 1973

Maple Manor Apartments10 128 7.8% 10/12/2018 $7,000,000 $54,687 $59

580 E Randall Wobbe Ln- 2008

Wobbe Lane Apartments11 128 3.1% 7/31/2018 $6,475,000 $50,585 $57

124 E Sycamore St- 2017

Sycamore Townhomes12 19 5.3% 11/6/2018 $4,137,500 $217,763 $131

- 20102400-2434 S Price Pl

13 32 3.1% 3/1/2019 $3,595,000 $112,343 $57

- -215 NW A St

14 7 0% 7/18/2018 $2,058,279 $294,039 $408

937-1011 N Betty Jo Dr- -

Betty Jo Apartments15 11 3.7% 3/8/2019 $1,687,174 $153,379 $144

- 2003944 N Storer Ave

16 20 5.0% 1/15/2019 $1,450,000 $72,500 $137

15 W Martin Luther King Blvd- 1970

Brookside Apartments17 16 6.3% 1/17/2019 $1,220,000 $76,250 $193

- 2003201-203 S Baggett St

18 24 4.2% 1/15/2019 $985,000 $41,041 $66

856 S Curtis Ave- -

Curtis Street Townhomes19 16 6.3% 11/9/2018 $950,000 $59,375 $50

1035 N Betty Jo Dr- 1985

Betty Jo Apartments20 26 27.3% 3/8/2019 $838,594 $32,253 $144


Page 13





















EconomyNorthwest Arkansas Multi-Family

Northwest Arkansas, an area comprised of several cities,including Bentonville, Rogers, Fayetteville andSpringdale, has been one of the strongest markets interms of economic growth this cycle. Total nonfarmemployment is up close to 30% since the prior peak,while the U.S. is only about 8% above that mark. Muchof the growth through this cycle has been driven byexpansion in professional and business services, whichis about 50% higher since its prerecession peak.

This job growth is tied to that of Walmart, which hasseen its stock rise roughly 65% since the beginning of2012 to early May. This has attracted over 1,300suppliers to the state, many of which set up operations inNorthwest Arkansas. Coupled with the support of theUniversity of Arkansas, over 30,000 college studentsattend universities and colleges in Northwest Arkansas,fueling the metro-area companies a talent-rich pipelineof potential employees. This, combined with some of thelowest business costs in America, has helped make thearea a popular destination for corporate headquartersand, in turn, one of the premier job growth regionsnationally.

But growth could slow in the near term. NorthwestArkansas's unemployment rate is among the lowest inthe country, hovering around 3%, making it difficult tosustain the level of expansion the metro has seen thusfar in the economic recovery. Additionally, Walmartannounced its decision to cut close to 1,000 jobs at theBentonville Headquarters throughout the next few yearsin effort to focus on its e-commerce competition withAmazon.

Overall, the fallout from the recession in the metro wasnot as severe as others because the economy wasbuoyed by a polycentric metro area, transitioning fromreliance on manufacturing to a focus on burgeoningservices sector jobs. The economy made a swift reboundin office-using employment sectors, averaging roughly3.5% year-over-year growth in each of the past fiveyears. Education has also played a major part in theeconomic success story, with the University of Arkansasproviding jobs for as many as 4,500 people. The sector,combined with health services, saw an expansion ofnearly 3% year-over-year.

NORTHWEST ARKANSAS EMPLOYMENT BY INDUSTRY IN THOUSANDS



0.13%0.29%0.61%0.07%1.69%1.54%1.330Manufacturing


0.33%1.11%0.80%2.29%0.06%0.74%1.027 Retail Trade


0.77%1.90%-0.03%2.51%0.49%2.83%0.936Government



0.91%1.64%2.48%4.51%2.51%1.92%1.451Professional and Business Services

0.45%-2.17%-0.06%-0.38%-0.05%2.48%0.42Information

0.41%1.27%2.41%3.54%2.31%-0.32%0.926Leisure and Hospitality

0.23%0.85%0.91%2.82%1.15%2.01%0.99Other Services





Page 14

EconomyNorthwest Arkansas Multi-Family



DEMOGRAPHIC TRENDS



10-Year Change



Population 328,988,813555,033 1.9% 0.7% 2.1% 0.7% 1.6% 0.7%

Households 121,188,641200,584 1.7% 0.6% 1.8% 0.7% 1.5% 0.6%


Labor Force 163,511,781278,063 0.9% 1.1% 2.1% 0.6% 1.2% 0.5%

Unemployment 3.8%2.8% 0% -0.1% -0.4% -0.5% - -


POPULATION GROWTH




Page 15

SubmarketsNorthwest Arkansas Multi-Family

NORTHWEST ARKANSAS SUBMARKETS


Page 16

SubmarketsNorthwest Arkansas Multi-Family

SUBMARKET INVENTORY



Inventory


1 Central Benton County 10,105 35.4% 2 9 2,536 25.1% 181 7 621 6.1% 1

2 East Benton County 12 0% 9 0 0 0% -2 0 0 0% -

3 Fayetteville 12,234 42.9% 1 5 137 1.1% 2163 3 39 0.3% 2

4 Madison County 32 0.1% 8 0 0 0% -1 0 0 0% -

5 McDonald County 93 0.3% 7 0 0 0% -4 0 0 0% -

6 Northeast Washington C… 4,981 17.5% 3 0 0 0% -66 0 0 0% -

7 Southwest Benton County 713 2.5% 4 1 29 4.1% 315 0 0 0% -

8 Southwest Washington C… 94 0.3% 6 0 0 0% -7 0 0 0% -

9 West Benton County 280 1.0% 5 0 0 0% -10 0 0 0% -

SUBMARKET RENT

Yr. Growth

Asking Rents


Effective Rents


1 Central Benton County 3.7%1 3.2% 1$863 2$0.96 0.9%$0.95$856

2 East Benton County -- - -$594 8- 0.3%-$593

3 Fayetteville 1.3%2 1.6% 2$699 1$0.84 1.1%$0.83$692

4 Madison County -- - -- -- 0%--

5 McDonald County 1.5%7 1.5% 7$220 5$0.35 0.3%$0.34$219

6 Northeast Washington C… 4.0%3 4.0% 3$675 7$0.79 0.3%$0.79$673

7 Southwest Benton County 2.8%4 2.9% 4$566 4$0.72 0.4%$0.72$563

8 Southwest Washington C… -0.6%6 -0.5% 6$684 3$0.57 0.5%$0.57$680

9 West Benton County 4.0%5 3.9% 5$574 6$0.62 0.3%$0.62$572


12 Month Absorption


Vacancy


1 Central Benton County 577 5.7% 1.0623 6.2% 19

2 East Benton County 0 1.7% -0 0% -1

3 Fayetteville 623 5.1% -(137) -1.1% 98

4 Madison County 2 4.7% -0 0% -7

5 McDonald County 2 2.2% -0 0% -3

6 Northeast Washington C… 156 3.1% -7 0.1% 25

7 Southwest Benton County 15 2.0% -(1) -0.1% 62

8 Southwest Washington C… 4 3.7% -(1) -1.1% 76

9 West Benton County 7 2.3% -(1) -0.4% 74


Page 17




























AppendixNorthwest Arkansas Multi-Family


AbsorptionInventory


2023 1,093 3.3%34,114 1,105 3.2% 1.0

2022 1,030 3.2%33,021 1,158 3.5% 0.9

2021 1,336 4.4%31,991 1,582 4.9% 0.8

2020 1,508 5.2%30,655 1,010 3.3% 1.5

2019 990 3.5%29,147 677 2.3% 1.5

YTD 387 1.4%28,544 326 1.1% 1.2

2018 289 1.0%28,157 676 2.4% 0.4

2017 2,016 7.8%27,868 1,154 4.1% 1.7

2016 690 2.7%25,852 581 2.2% 1.2

2015 744 3.0%25,162 1,035 4.1% 0.7

2014 0 0%24,418 32 0.1% 0

2013 38 0.2%24,418 71 0.3% 0.5

2012 24 0.1%24,380 349 1.4% 0.1

2011 56 0.2%24,356 225 0.9% 0.2

2010 139 0.6%24,300 350 1.4% 0.4

2009 1,068 4.6%24,161 1,322 5.5% 0.8

2008 1,103 5.0%23,093 623 2.7% 1.8

2007 1,473 7.2%21,990 784 3.6% 1.9


AbsorptionInventory


2023 1,114 10.0%12,212 1,040 8.5% 1.1

2022 1,051 10.5%11,098 992 8.9% 1.1

2021 947 10.4%10,047 1,180 11.7% 0.8

2020 1,405 18.3%9,100 904 9.9% 1.6

2019 728 10.4%7,695 496 6.4% 1.5

YTD 128 1.8%7,095 149 2.1% 0.9

2018 253 3.8%6,967 753 10.8% 0.3

2017 1,622 31.9%6,714 984 14.7% 1.6

2016 615 13.7%5,092 389 7.6% 1.6

2015 262 6.2%4,477 235 5.2% 1.1

2014 0 0%4,215 80 1.9% 0

2013 0 0%4,215 (37) -0.9% 0

2012 0 0%4,215 90 2.1% 0

2011 56 1.3%4,215 98 2.3% 0.6

2010 95 2.3%4,159 89 2.1% 1.1

2009 360 9.7%4,064 370 9.1% 1.0

2008 128 3.6%3,704 80 2.2% 1.6

2007 790 28.4%3,576 638 17.8% 1.2


Page 18



AbsorptionInventory


2023 7 0%18,314 78 0.4% 0.1

2022 7 0%18,307 175 1.0% 0

2021 417 2.3%18,300 417 2.3% 1.0

2020 130 0.7%17,883 122 0.7% 1.1

2019 258 1.5%17,753 186 1.0% 1.4

YTD 248 1.4%17,743 179 1.0% 1.4

2018 36 0.2%17,495 (89) -0.5% -

2017 394 2.3%17,459 193 1.1% 2.0

2016 63 0.4%17,065 169 1.0% 0.4

2015 566 3.4%17,002 759 4.5% 0.7

2014 0 0%16,436 16 0.1% 0

2013 38 0.2%16,436 111 0.7% 0.3

2012 24 0.1%16,398 200 1.2% 0.1

2011 0 0%16,374 111 0.7% 0

2010 44 0.3%16,374 222 1.4% 0.2

2009 708 4.5%16,330 934 5.7% 0.8

2008 975 6.7%15,622 603 3.9% 1.6

2007 683 4.9%14,647 248 1.7% 2.8


AbsorptionInventory


2023 (28) -0.8%3,588 (13) -0.4% 2.2

2022 (28) -0.8%3,616 (9) -0.2% 3.1

2021 (28) -0.8%3,644 (15) -0.4% 1.9

2020 (27) -0.7%3,672 (16) -0.4% 1.7

2019 4 0.1%3,699 (5) -0.1% -

YTD 11 0.3%3,706 (2) -0.1% -

2018 0 0%3,695 12 0.3% 0

2017 0 0%3,695 (23) -0.6% 0

2016 12 0.3%3,695 23 0.6% 0.5

2015 (84) -2.2%3,683 41 1.1% -

2014 0 0%3,767 (64) -1.7% 0

2013 0 0%3,767 (3) -0.1% 0

2012 0 0%3,767 59 1.6% 0

2011 0 0%3,767 16 0.4% 0

2010 0 0%3,767 39 1.0% 0

2009 0 0%3,767 18 0.5% 0

2008 0 0%3,767 (60) -1.6% 0

2007 0 0%3,767 (102) -2.7% 0


Page 19



Market RentVacancy


Effective Rent

(0.3)2023 4.9% (0.2)1,661 $795 $0.92 0.6% $788 $0.92

(0.1)2022 5.1% (0.6)1,674 $790 $0.92 0.9% $784 $0.91

(0.7)2021 5.6% (1.0)1,802 $784 $0.91 1.0% $777 $0.90

02020 6.7% 1.42,047 $776 $0.90 1.7% $769 $0.89

(1.9)2019 5.3% 0.61,547 $763 $0.89 1.7% $757 $0.88

(3.0)YTD 4.8% 0.21,384 $756 $0.88 0.6% $749 $0.87

3.22018 4.7% (1.4)1,320 $751 $0.87 3.6% $743 $0.86

(3.8)2017 6.1% 2.91,700 $725 $0.84 0.4% $717 $0.83

1.02016 3.2% 0.3837 $722 $0.84 4.1% $717 $0.83

1.92015 2.9% (1.3)728 $694 $0.81 3.1% $690 $0.80

(0.9)2014 4.2% (0.1)1,017 $673 $0.78 1.3% $670 $0.78

0.32013 4.3% (0.1)1,048 $664 $0.77 2.1% $659 $0.77

0.62012 4.4% (1.3)1,081 $650 $0.75 1.8% $646 $0.75

0.42011 5.8% (0.7)1,407 $638 $0.74 1.2% $634 $0.74

4.22010 6.5% (0.9)1,575 $631 $0.73 0.8% $626 $0.73

(1.9)2009 7.4% (1.4)1,785 $626 $0.73 -3.4% $621 $0.72

(4.3)2008 8.8% 1.72,040 $648 $0.75 -1.5% $642 $0.75

-2007 7.1% 2.81,560 $657 $0.76 2.8% $652 $0.76


Market RentVacancy


Effective Rent

(0.3)2023 9.3% (0.3)1,141 $955 $1.01 0.1% $940 $1.00

(0.1)2022 9.6% (0.4)1,068 $955 $1.01 0.3% $939 $1.00

(0.6)2021 10.0% (3.6)1,008 $951 $1.01 0.5% $936 $0.99

0.22020 13.6% 4.01,241 $947 $1.00 1.1% $932 $0.99

(3.0)2019 9.6% 1.5738 $937 $0.99 0.9% $922 $0.98

(3.2)YTD 7.7% (0.4)545 $935 $0.99 0.6% $920 $0.97

5.22018 8.1% (7.6)564 $929 $0.98 3.8% $910 $0.96

(5.8)2017 15.7% 7.51,055 $895 $0.95 -1.4% $878 $0.93

1.12016 8.2% 3.9417 $907 $0.96 4.4% $898 $0.95

2.12015 4.3% 0.4192 $869 $0.92 3.3% $864 $0.92

(0.9)2014 3.9% (1.9)163 $841 $0.89 1.2% $839 $0.89

0.42013 5.8% 0.9244 $831 $0.88 2.1% $824 $0.87

0.42012 4.9% (2.1)208 $814 $0.86 1.7% $807 $0.86

0.52011 7.1% (1.1)298 $801 $0.85 1.3% $795 $0.84

4.22010 8.2% 0340 $791 $0.84 0.8% $784 $0.83

(1.9)2009 8.2% (1.1)334 $784 $0.83 -3.4% $778 $0.82

(4.3)2008 9.3% 1.0344 $812 $0.86 -1.5% $806 $0.85

-2007 8.3% 3.1296 $824 $0.87 2.9% $816 $0.86


Page 20



Market RentVacancy


Effective Rent

(0.3)2023 2.5% (0.4)449 $740 $0.90 0.9% $737 $0.89

(0.1)2022 2.8% (0.9)521 $734 $0.89 1.2% $731 $0.88

(0.7)2021 3.8% (0.1)689 $725 $0.88 1.3% $722 $0.87

02020 3.8% 0688 $716 $0.87 2.0% $713 $0.86

(1.4)2019 3.8% 0.2680 $702 $0.85 2.0% $699 $0.85

(2.8)YTD 4.0% 0.3704 $692 $0.84 0.6% $689 $0.83

2.32018 3.6% 0.7636 $688 $0.83 3.4% $685 $0.83

(2.9)2017 2.9% 1.1512 $666 $0.81 1.1% $661 $0.80

0.82016 1.8% (0.6)310 $659 $0.80 4.0% $655 $0.79

1.72015 2.4% (1.3)415 $634 $0.77 3.1% $631 $0.76

(0.7)2014 3.7% (0.1)608 $614 $0.74 1.4% $612 $0.74

0.12013 3.8% (0.5)623 $606 $0.73 2.1% $602 $0.73

0.72012 4.2% (1.1)696 $594 $0.72 2.0% $591 $0.72

0.42011 5.3% (0.7)872 $582 $0.70 1.2% $579 $0.70

4.22010 6.0% (1.1)982 $575 $0.70 0.8% $572 $0.69

(1.8)2009 7.1% (1.8)1,159 $571 $0.69 -3.3% $566 $0.69

(4.2)2008 8.9% 1.91,385 $590 $0.71 -1.5% $585 $0.71

-2007 6.9% 2.81,014 $599 $0.72 2.7% $595 $0.72


Market RentVacancy


Effective Rent

(0.4)2023 2.0% (0.4)71 $672 $0.80 0.3% $669 $0.80

(0.3)2022 2.4% (0.5)86 $670 $0.80 0.7% $667 $0.79

(1.0)2021 2.9% (0.3)105 $666 $0.79 1.0% $663 $0.79

(0.8)2020 3.2% (0.2)119 $659 $0.79 1.9% $656 $0.78

(1.5)2019 3.5% 0.2129 $647 $0.77 2.8% $644 $0.77

(3.2)YTD 3.6% 0.4134 $636 $0.76 1.1% $633 $0.75

1.22018 3.3% (0.3)121 $629 $0.75 4.3% $625 $0.74

(1.1)2017 3.6% 0.6133 $604 $0.72 3.0% $600 $0.71

1.52016 3.0% (0.3)110 $586 $0.70 4.2% $583 $0.69

1.72015 3.3% (3.2)121 $563 $0.67 2.6% $560 $0.67

(2.0)2014 6.5% 1.7246 $548 $0.65 0.9% $545 $0.65

1.42013 4.8% 0.1181 $543 $0.65 2.9% $541 $0.64

0.82012 4.7% (1.6)177 $528 $0.63 1.5% $525 $0.62

(0.1)2011 6.3% (0.4)238 $521 $0.62 0.6% $517 $0.62

4.32010 6.7% (1.0)253 $517 $0.62 0.8% $514 $0.61

(1.9)2009 7.8% (0.5)293 $514 $0.61 -3.5% $509 $0.61

(4.4)2008 8.3% 1.6311 $532 $0.63 -1.6% $528 $0.63

-2007 6.6% 2.7251 $541 $0.64 2.8% $537 $0.64


Page 21


OVERALL SALES





2023 -- - -- 231- $88,416 6.8%

2022 -- - -- 230- $88,175 6.7%

2021 -- - -- 229- $87,927 6.7%

2020 -- - -- 230- $88,152 6.6%

2019 -- - -- 229- $87,719 6.6%

YTD $73.8 M12 2.8% $98,202$7,384,764 2267.6% $86,584 6.5%

2018 $258.9 M25 10.1% $90,730$10,357,789 2226.7% $85,219 6.5%

2017 $67.8 M19 4.4% $60,690$4,236,909 1986.7% $75,887 6.7%

2016 $36.6 M19 3.8% $52,796$2,814,453 1907.0% $72,708 6.8%

2015 $173.5 M28 8.7% $79,864$6,427,544 1797.3% $68,506 6.9%

2014 $37.3 M22 5.1% $38,063$1,963,244 16510.3% $63,386 7.1%

2013 $54.5 M18 4.8% $55,631$3,203,706 1547.2% $58,935 7.3%

2012 $29.1 M7 2.9% $41,716$4,153,738 1466.3% $56,111 7.4%

2011 $72.5 M17 6.4% $46,815$4,265,706 1416.7% $53,901 7.5%

2010 $30.9 M11 3.2% $40,864$3,089,333 1247.7% $47,492 7.8%

2009 $15.4 M8 1.6% $39,989$2,199,370 945.6% $36,157 8.7%

2008 $8.0 M6 0.8% $50,892$1,997,500 1009.8% $38,332 8.6%



4 & 5 STAR SALES





2023 -- - -- 239- $116,535 6.3%

2022 -- - -- 239- $116,744 6.2%

2021 -- - -- 240- $116,947 6.2%

2020 -- - -- 241- $117,775 6.1%

2019 -- - -- 241- $117,764 6.0%

YTD $63.6 M1 7.5% $118,879$63,600,000 2405.7% $116,910 6.0%

2018 $190.4 M10 25.2% $108,430$19,040,272 2345.9% $114,246 6.0%

2017 $35.4 M2 6.2% $85,378$17,715,875 2056.5% $100,073 6.3%

2016 -- - -- 194- $94,911 6.4%

2015 $76.3 M4 16.8% $101,752$19,078,494 1846.3% $89,620 6.5%

2014 $3.9 M1 3.0% $30,469$3,900,000 168- $82,036 6.7%

2013 $43.5 M5 18.0% $57,362$8,707,600 1576.9% $76,802 6.9%

2012 -- - -- 149- $72,914 7.1%

2011 $49.9 M3 20.8% $56,963$16,633,333 1465.4% $71,271 7.0%

2010 $8.3 M1 4.7% $42,976$8,337,333 1258.0% $61,117 7.4%

2009 -- - -- 95- $46,472 8.3%

2008 -- - -- 100- $48,806 8.2%




Page 22


3 STAR SALES





2023 -- - -- 228- $79,373 6.9%

2022 -- - -- 227- $78,879 6.9%

2021 -- - -- 226- $78,379 6.8%

2020 -- - -- 225- $78,306 6.8%

2019 -- - -- 223- $77,643 6.7%

YTD $5.2 M4 0.7% $67,782$1,739,744 2218.0% $76,681 6.6%

2018 $52.3 M6 3.4% $87,613$8,717,526 2177.0% $75,411 6.6%

2017 $21.3 M10 2.8% $51,635$2,363,756 1956.5% $67,614 6.9%

2016 $25.8 M7 2.4% $71,453$4,299,065 1877.0% $64,962 6.9%

2015 $81.0 M12 6.2% $76,600$6,753,542 1767.1% $61,173 7.0%

2014 $26.0 M12 5.5% $39,911$2,886,904 1658.0% $57,173 7.2%

2013 $8.1 M9 2.3% $45,421$1,010,625 152- $52,905 7.4%

2012 $25.3 M5 2.7% $57,577$5,055,233 1457.5% $50,302 7.5%

2011 $18.0 M7 3.2% $34,465$2,575,000 1387.4% $47,833 7.6%

2010 $22.1 M8 3.3% $40,544$2,757,000 1237.5% $42,814 7.9%

2009 $15.2 M3 2.1% $44,116$5,058,667 945.6% $32,637 8.9%

2008 $7.6 M3 0.9% $51,712$2,516,667 100- $34,749 8.7%



1 & 2 STAR SALES





2023 -- - -- 210- $62,053 7.5%

2022 -- - -- 209- $61,938 7.4%

2021 -- - -- 209- $61,801 7.4%

2020 -- - -- 209- $61,986 7.3%

2019 -- - -- 208- $61,627 7.3%

YTD $5.0 M7 4.0% $35,917$838,068 2029.0% $59,719 7.2%

2018 $16.2 M9 13.6% $32,409$1,804,095 20411.0% $60,383 7.2%

2017 $11.1 M7 8.6% $38,224$2,217,000 1887.5% $55,691 7.3%

2016 $10.8 M12 15.6% $32,511$1,541,928 186- $54,939 7.2%

2015 $16.2 M12 10.1% $44,348$1,471,564 1749.5% $51,434 7.4%

2014 $7.4 M9 5.3% $36,913$824,389 15912.6% $46,983 7.6%

2013 $2.8 M4 1.1% $67,619$710,000 1477.7% $43,611 7.9%

2012 $3.8 M2 6.8% $14,729$1,900,000 1435.0% $42,387 7.8%

2011 $4.6 M7 4.0% $30,613$656,000 1356.0% $40,035 8.0%

2010 $0.5 M2 0.8% $27,778$500,000 122- $36,203 8.3%

2009 $0.2 M5 1.2% $5,356$54,897 93- $27,506 9.2%

2008 $0.4 M3 1.0% $40,000$440,000 1009.8% $29,591 9.0%




Page 23





Under Construction

Units

Deliveries

Bldgs Units

2023 34,115 4.9%- - 1,121 - -- 1,093

2022 33,022 5.1%- - 1,058 - -- 1,030

2021 31,992 5.6%- - 1,364 - -- 1,336

2020 30,656 6.7%- - 1,536 - -- 1,509

2019 29,147 5.3%- - 997 - -- 990

YTD 28,544 4.8%349 6 387 15 2,7026 387

2018 28,157 4.7%343 4 289 17 2,5634 289

2017 27,868 6.1%339 10 2,016 13 95010 2,016

2016 25,852 3.2%329 5 690 13 2,5495 690

2015 25,162 2.9%324 4 828 5 7023 744

2014 24,418 4.2%321 0 0 4 8280 0

2013 24,418 4.3%321 1 38 0 01 38

2012 24,380 4.4%320 3 45 1 382 24

2011 24,356 5.8%318 1 56 3 451 56

2010 24,300 6.5%317 3 139 1 563 139

2009 24,161 7.4%314 3 1,068 3 1393 1,068

2008 23,093 8.8%311 7 1,103 4 1,0807 1,103

2007 21,990 7.1%304 13 1,473 8 1,59513 1,473


Page 24

Columbia, Missouri





Columbia Market

PREPARED BY

Alexander Philips

CEO & CIO




Vacancy 3

Rent 5

Construction 7


Sales 9


Economy 12



Vacancy & Rent 18

Sale Trends 20


Columbia Multi-Family


OverviewColumbia Multi-Family



(35)Vacancy Rate


0%Apartment rents in the Columbia metro increased by1.3% year-over-year as of 19Q1, and have posted anaverage annual gain of 0.4% over the past three years.Vacancies in the metro were above the cycle average asof 19Q1, and, more or less, were unchanged over thepast four quarters. There are about 460 units currentlyunderway, representing a 4.9% expansion of the existinginventory. Over the past three years, 270 units havedelivered, or a cumulative inventory expansion of 2.9%.

Over the past four quarters, about 120 units traded, aninventory turnover of roughly 1.3%. This is essentially inline with the five-year average turnover of 2%. Jobgrowth remains lackluster. Over the past year, totalemployment increased by 0.9%, or about 850 jobs. Overthe past five years, employment has increased by 1%annually on average, compared to a 1.8% averageincrease nationally.

KEY INDICATORS



Under ConstrUnits

$8825.2%2,1144 & 5 Star $871 (1) 0 464

$7426.0%5,7693 Star $731 14 0 0

$7696.6%1,6421 & 2 Star $755 0 0 0

$7865.9%9,525Market $775 13 0 464

ForecastAverage

HistoricalAverage


6.0%5.8%0.4%Vacancy Change (YOY) 9.5% 2003 Q1 3.9% 2014 Q3

141161(35)Absorption Units 742 2008 Q3 (39) 2017 Q3

1451700Delivered Units 760 2008 Q3 0 2019 Q1


0.7%1.1%0%Asking Rent Growth (YOY) 3.6% 2001 Q1 -2.3% 2009 Q4


N/A$2.5M$363 KSales Volume $18.3M 2016 Q2 $0 2018 Q1


Page 2

VacancyColumbia Multi-Family


VACANCY RATE


Page 3

VacancyColumbia Multi-Family

VACANCY BY BEDROOM


Page 4

RentColumbia Multi-Family




Page 5

RentColumbia Multi-Family



Page 6

ConstructionColumbia Multi-Family



Page 7

Under Construction PropertiesColumbia Multi-Family

Properties

2Units

464Percent of Inventory

4.9%Avg. No. Units


UNDER CONSTRUCTION


Apr-20171280 Cinnamon Hill Ln

Kelly Farms384 - Nov-2019

-

-1

Apr-20181985 Southhampton Dr

Sinclair Estates80 - Jun-2019

-

-2


Page 8



SalesColumbia Multi-Family



Page 9

Sales Past 12 MonthsColumbia Multi-Family

Sale Comparables







Sale Price $363,329 $363,329 $363,329 $363,329

Price Per Unit $25,952 $25,952 $25,952 $25,952

Cap Rate 9.0% 9.0% 9.0% 9.0%

Vacancy Rate at Sale 14.3% 14.3% 14.3% 14.3%





Average Unit SF 2,429 2,429 2,429 2,429

Year Built 2009 2009 2009 2009

Star Rating 3.0


Page 10

Sales Past 12 MonthsColumbia Multi-Family




4409 Brown Station Rd- 2009

Seasons Brook Estates1 14 14.3% 6/14/2018 $363,329 $25,952 $11


Page 11


EconomyColumbia Multi-Family

COLUMBIA EMPLOYMENT BY INDUSTRY IN THOUSANDS



0.13%0.40%0.61%2.59%1.69%1.29%0.54Manufacturing

0.45%0.52%1.08%0.23%1.13%-1.79%0.815Trade, Transportation and Utilities

0.33%0.65%0.80%-0.14%0.06%-3.37%1.011 Retail Trade


0.77%1.05%-0.03%-0.37%0.49%0.39%1.929Government

0.32%-0.60%1.71%-0.71%3.68%-2.87%0.63Natural Resources, Mining and Construction


0.91%1.71%2.48%3.13%2.51%-2.28%0.811Professional and Business Services

0.45%0.10%-0.06%0.27%-0.05%0.08%0.71Information


0.23%0.12%0.91%1.37%1.15%-0.84%0.93Other Services







Page 12

EconomyColumbia Multi-Family

DEMOGRAPHIC TRENDS



10-Year Change



Population 328,988,813180,710 0.9% 0.7% 1.2% 0.7% 0.9% 0.7%

Households 121,188,64171,158 0.7% 0.6% 1.0% 0.7% 0.8% 0.6%


Labor Force 163,511,78198,688 1.3% 1.1% 1.1% 0.6% 0.9% 0.5%

Unemployment 3.8%2.1% -0.3% -0.1% -0.4% -0.5% - -


POPULATION GROWTH




Page 13

SubmarketsColumbia Multi-Family

COLUMBIA SUBMARKETS


Page 14

SubmarketsColumbia Multi-Family

SUBMARKET INVENTORY



Inventory


1 Columbia MO 80 100% 1 0 0 0% -3 0 0 0% -

SUBMARKET RENT

Yr. Growth

Asking Rents


Effective Rents


1 Columbia MO -0.4%1 -0.4% 1$1,276 1$1.82 0.6%$1.81$1,269


12 Month Absorption


Vacancy


1 Columbia MO 4 5.0% -0 0% -1


Page 15




AppendixColumbia Multi-Family


AbsorptionInventory


2023 112 1.1%10,254 139 1.4% 0.8

2022 101 1.0%10,142 121 1.2% 0.8

2021 56 0.6%10,041 130 1.3% 0.4

2020 77 0.8%9,985 230 2.3% 0.3

2019 383 4.0%9,908 116 1.2% 3.3

YTD 0 0%9,525 (17) -0.2% 0

2018 0 0%9,525 73 0.8% 0

2017 0 0%9,525 (16) -0.2% 0

2016 519 5.8%9,525 307 3.2% 1.7

2015 48 0.5%9,006 24 0.3% 2.0

2014 24 0.3%8,958 135 1.5% 0.2

2013 197 2.3%8,934 85 1.0% 2.3

2012 130 1.5%8,737 162 1.9% 0.8

2011 0 0%8,607 85 1.0% 0

2010 0 0%8,607 5 0.1% 0

2009 220 2.6%8,607 212 2.5% 1.0

2008 434 5.5%8,387 589 7.0% 0.7

2007 384 5.1%7,953 231 2.9% 1.7


AbsorptionInventory


2023 115 4.2%2,855 113 4.0% 1.0

2022 103 3.9%2,740 96 3.5% 1.1

2021 59 2.3%2,637 113 4.3% 0.5

2020 80 3.2%2,578 232 9.0% 0.3

2019 384 18.2%2,498 128 5.1% 3.0

YTD 0 0%2,114 (1) 0% 0

2018 0 0%2,114 21 1.0% 0

2017 0 0%2,114 127 6.0% 0

2016 519 32.5%2,114 364 17.2% 1.4

2015 36 2.3%1,595 (3) -0.2% -

2014 24 1.6%1,559 64 4.1% 0.4

2013 12 0.8%1,535 8 0.5% 1.5

2012 64 4.4%1,523 67 4.4% 1.0

2011 0 0%1,459 23 1.6% 0

2010 0 0%1,459 0 0% -

2009 31 2.2%1,459 55 3.8% 0.6

2008 434 43.7%1,428 526 36.8% 0.8

2007 384 63.0%994 190 19.1% 2.0


Page 16



AbsorptionInventory


2023 0 0%5,769 22 0.4% 0

2022 0 0%5,769 21 0.4% 0

2021 0 0%5,769 16 0.3% 0

2020 0 0%5,769 1 0% 0

2019 0 0%5,769 3 0.1% 0

YTD 0 0%5,769 (1) 0% 0

2018 0 0%5,769 56 1.0% 0

2017 0 0%5,769 (138) -2.4% 0

2016 0 0%5,769 (39) -0.7% 0

2015 12 0.2%5,769 23 0.4% 0.5

2014 0 0%5,757 76 1.3% 0

2013 190 3.4%5,757 73 1.3% 2.6

2012 0 0%5,567 22 0.4% 0

2011 0 0%5,567 44 0.8% 0

2010 0 0%5,567 5 0.1% 0

2009 189 3.5%5,567 159 2.9% 1.2

2008 0 0%5,378 50 0.9% 0

2007 0 0%5,378 33 0.6% 0


AbsorptionInventory


2023 (3) -0.2%1,630 4 0.2% -

2022 (2) -0.1%1,633 4 0.2% -

2021 (3) -0.2%1,635 1 0.1% -

2020 (3) -0.2%1,638 (3) -0.2% 1.0

2019 (1) -0.1%1,641 (15) -0.9% 0.1

YTD 0 0%1,642 (15) -0.9% 0

2018 0 0%1,642 (4) -0.2% 0

2017 0 0%1,642 (5) -0.3% 0

2016 0 0%1,642 (18) -1.1% 0

2015 0 0%1,642 4 0.2% 0

2014 0 0%1,642 (5) -0.3% 0

2013 (5) -0.3%1,642 4 0.2% -

2012 66 4.2%1,647 73 4.4% 0.9

2011 0 0%1,581 18 1.1% 0

2010 0 0%1,581 0 0% -

2009 0 0%1,581 (2) -0.1% 0

2008 0 0%1,581 13 0.8% 0

2007 0 0%1,581 8 0.5% 0


Page 17



Market RentVacancy


Effective Rent

(0.3)2023 5.3% (0.3)539 $806 $0.83 0.5% $795 $0.81

02022 5.6% (0.3)566 $802 $0.82 0.7% $791 $0.81

(0.2)2021 5.9% (0.8)588 $796 $0.82 0.7% $785 $0.80

0.52020 6.6% (1.6)661 $790 $0.81 1.0% $779 $0.80

(0.1)2019 8.2% 2.5817 $783 $0.80 0.5% $772 $0.79

0.4YTD 5.9% 0.2566 $786 $0.80 1.0% $775 $0.79

0.22018 5.8% (0.7)549 $778 $0.80 0.6% $767 $0.78

(0.2)2017 6.5% 0.2620 $774 $0.79 0.4% $752 $0.77

(1.7)2016 6.3% 2.0604 $770 $0.79 0.6% $758 $0.78

0.32015 4.3% 0.2392 $765 $0.78 2.3% $760 $0.78

02014 4.1% (1.2)369 $748 $0.77 2.0% $744 $0.76

0.22013 5.4% 1.2479 $733 $0.75 2.0% $730 $0.75

0.92012 4.2% (0.3)364 $719 $0.74 1.8% $716 $0.73

0.62011 4.5% (0.9)384 $706 $0.72 0.9% $702 $0.72

2.62010 5.4% 0466 $700 $0.72 0.3% $696 $0.71

(3.8)2009 5.4% 0469 $698 $0.71 -2.3% $693 $0.71

(0.9)2008 5.4% (2.2)456 $715 $0.73 1.4% $709 $0.73

-2007 7.7% 1.7611 $705 $0.72 2.3% $698 $0.71


Market RentVacancy


Effective Rent

(0.3)2023 5.9% (0.2)169 $893 $0.92 0.3% $882 $0.91

02022 6.1% 0167 $890 $0.92 0.6% $880 $0.91

(0.2)2021 6.1% (2.2)161 $885 $0.91 0.6% $874 $0.90

1.32020 8.3% (6.4)213 $879 $0.90 0.8% $869 $0.89

(2.7)2019 14.6% 9.5366 $872 $0.90 -0.5% $862 $0.89

(1.6)YTD 5.2% 0110 $882 $0.90 0.6% $871 $0.89

2.92018 5.1% (1.0)109 $877 $0.90 2.2% $869 $0.89

(4.6)2017 6.1% (6.0)130 $858 $0.88 -0.8% $843 $0.87

2.22016 12.1% 5.9256 $865 $0.89 3.9% $840 $0.86

1.02015 6.2% 2.399 $833 $0.85 1.7% $825 $0.85

(1.7)2014 3.9% (2.6)61 $819 $0.84 0.7% $817 $0.84

02013 6.5% 0.3100 $813 $0.83 2.4% $811 $0.83

1.42012 6.2% (0.4)94 $794 $0.82 2.4% $791 $0.81

1.02011 6.6% (1.4)97 $776 $0.80 1.0% $771 $0.79

2.42010 8.0% 0117 $768 $0.79 0% $763 $0.78

(3.8)2009 8.0% (1.7)117 $768 $0.79 -2.4% $761 $0.78

(0.9)2008 9.7% (13.5)139 $786 $0.81 1.4% $776 $0.80

-2007 23.2% 17.5231 $775 $0.80 2.3% $762 $0.78


Page 18



Market RentVacancy


Effective Rent

(0.2)2023 4.9% (0.4)280 $769 $0.80 0.7% $759 $0.79

02022 5.3% (0.4)303 $764 $0.79 1.0% $753 $0.78

(0.2)2021 5.6% (0.3)325 $757 $0.79 0.9% $746 $0.78

0.52020 5.9% 0341 $750 $0.78 1.1% $739 $0.77

1.12019 5.9% (0.1)343 $741 $0.77 0.6% $731 $0.76

1.3YTD 6.0% 0347 $742 $0.77 0.8% $731 $0.76

(0.8)2018 6.0% (1.0)346 $737 $0.77 -0.5% $724 $0.75

1.12017 7.0% 2.4403 $741 $0.77 0.3% $717 $0.75

(3.7)2016 4.6% 0.7265 $738 $0.77 -0.8% $732 $0.76

(0.2)2015 3.9% (0.2)226 $745 $0.77 2.8% $740 $0.77

1.22014 4.1% (1.3)237 $724 $0.75 3.0% $719 $0.75

0.32013 5.4% 1.9313 $703 $0.73 1.8% $699 $0.73

0.62012 3.5% (0.4)195 $690 $0.72 1.5% $687 $0.72

0.42011 3.9% (0.8)215 $680 $0.71 0.9% $676 $0.70

2.82010 4.7% (0.1)259 $674 $0.70 0.5% $670 $0.70

(3.7)2009 4.7% 0.4263 $670 $0.70 -2.3% $666 $0.69

(0.9)2008 4.3% (0.9)231 $686 $0.71 1.4% $683 $0.71

-2007 5.2% (0.6)281 $676 $0.70 2.3% $672 $0.70


Market RentVacancy


Effective Rent

(0.3)2023 5.5% (0.4)89 $780 $0.75 -0.1% $766 $0.74

(0.1)2022 5.9% (0.4)96 $781 $0.75 0.3% $766 $0.74

(0.6)2021 6.3% (0.3)102 $778 $0.75 0.4% $764 $0.73

(1.4)2020 6.5% 0107 $776 $0.75 1.0% $762 $0.73

1.02019 6.6% 0.8108 $768 $0.74 2.4% $754 $0.72

1.1YTD 6.6% 0.9109 $769 $0.74 2.5% $755 $0.73

(2.1)2018 5.7% 0.394 $750 $0.72 1.4% $734 $0.71

4.22017 5.4% 0.388 $740 $0.71 3.5% $715 $0.69

(2.4)2016 5.0% 1.083 $715 $0.69 -0.7% $709 $0.68

0.62015 4.1% (0.3)67 $720 $0.69 1.7% $715 $0.69

(0.9)2014 4.4% 0.472 $708 $0.68 1.1% $705 $0.68

0.42013 4.0% (0.5)66 $700 $0.67 2.0% $697 $0.67

1.12012 4.5% (0.1)74 $687 $0.66 1.6% $683 $0.66

0.52011 4.6% (1.0)73 $676 $0.65 0.5% $672 $0.65

2.42010 5.6% 089 $672 $0.65 0% $668 $0.64

(3.8)2009 5.6% 0.188 $672 $0.65 -2.4% $667 $0.64

(0.9)2008 5.5% (0.8)86 $688 $0.66 1.4% $684 $0.66

-2007 6.3% (0.5)99 $678 $0.65 2.3% $674 $0.65


Page 19


OVERALL SALES





2023 -- - -- 181- $162,490 7.1%

2022 -- - -- 180- $162,071 7.1%

2021 -- - -- 180- $161,728 7.1%

2020 -- - -- 181- $162,469 7.0%

2019 -- - -- 181- $162,515 6.9%

YTD -- - -- 181- $162,116 6.8%

2018 $1.1 M2 1.3% $9,023$550,414 1799.0% $160,518 6.8%

2017 $0 M1 2.6% -- 172- $154,365 6.8%

2016 $1.8 M3 2.9% $148,854$1,786,250 169- $151,427 6.8%

2015 $16.5 M4 3.3% $57,180$5,508,333 1617.8% $144,328 6.9%

2014 -- - -- 156- $139,644 6.9%

2013 -- - -- 144- $129,449 7.2%

2012 $0 M1 2.8% -- 143- $128,281 7.1%

2011 -- - -- 136- $122,086 7.2%

2010 $3.1 M13 10.9% $10,838$1,555,250 121- $108,860 7.5%

2009 -- - -- 93- $83,339 8.3%

2008 -- - -- 100- $89,801 8.1%



4 & 5 STAR SALES





2023 -- - -- 183- $242,082 6.8%

2022 -- - -- 183- $241,848 6.7%

2021 -- - -- 183- $241,705 6.7%

2020 -- - -- 184- $243,182 6.6%

2019 -- - -- 184- $243,798 6.6%

YTD -- - -- 184- $243,626 6.5%

2018 -- - -- 183- $241,621 6.5%

2017 -- - -- 177- $234,699 6.4%

2016 -- - -- 174- $230,312 6.4%

2015 $0 M1 0.8% -- 166- $220,223 6.5%

2014 -- - -- 160- $211,396 6.5%

2013 -- - -- 147- $194,755 6.8%

2012 -- - -- 145- $192,423 6.7%

2011 -- - -- 137- $180,992 6.9%

2010 -- - -- 122- $160,913 7.2%

2009 -- - -- 93- $123,034 8.0%

2008 -- - -- 100- $132,296 7.8%




Page 20


3 STAR SALES





2023 -- - -- 180- $140,729 7.1%

2022 -- - -- 180- $140,053 7.1%

2021 -- - -- 179- $139,474 7.1%

2020 -- - -- 179- $139,883 7.0%

2019 -- - -- 179- $139,725 7.0%

YTD -- - -- 179- $139,287 6.9%

2018 $1.1 M2 2.1% $9,023$550,414 1779.0% $137,807 6.9%

2017 $0 M1 4.2% -- 168- $131,382 6.9%

2016 $0 M2 4.5% -- 165- $128,856 6.9%

2015 $15.4 M2 4.7% $57,156$7,687,500 1577.8% $122,316 7.0%

2014 -- - -- 153- $118,978 7.0%

2013 -- - -- 142- $110,744 7.3%

2012 $0 M1 4.5% -- 141- $109,945 7.2%

2011 -- - -- 135- $105,615 7.2%

2010 $0 M3 10.6% -- 121- $94,396 7.5%

2009 -- - -- 93- $72,277 8.3%

2008 -- - -- 100- $77,985 8.1%



1 & 2 STAR SALES





2023 -- - -- 176- $113,983 7.4%

2022 -- - -- 177- $114,174 7.4%

2021 -- - -- 177- $114,348 7.4%

2020 -- - -- 178- $115,100 7.3%

2019 -- - -- 178- $114,966 7.2%

YTD -- - -- 177- $114,352 7.2%

2018 -- - -- 175- $112,979 7.2%

2017 -- - -- 169- $108,985 7.2%

2016 $1.8 M1 0.7% $148,854$1,786,250 165- $106,879 7.2%

2015 $1.2 M1 1.2% $57,500$1,150,000 159- $102,508 7.2%

2014 -- - -- 154- $99,600 7.3%

2013 -- - -- 143- $92,635 7.5%

2012 -- - -- 142- $91,996 7.4%

2011 -- - -- 135- $87,473 7.5%

2010 $3.1 M10 21.7% $10,838$1,555,250 121- $77,954 7.8%

2009 -- - -- 93- $59,878 8.7%

2008 -- - -- 100- $64,598 8.5%




Page 21





Under Construction

Units

Deliveries

Bldgs Units

2023 10,255 5.3%- - 115 - -- 112

2022 10,143 5.6%- - 103 - -- 100

2021 10,043 5.9%- - 60 - -- 57

2020 9,986 6.6%- - 80 - -- 78

2019 9,908 8.2%- - 384 - -- 383

YTD 9,525 5.9%105 0 0 2 4640 0

2018 9,525 5.8%105 0 0 2 4640 0

2017 9,525 6.5%105 0 0 1 3840 0

2016 9,525 6.3%105 3 519 0 03 519

2015 9,006 4.3%102 2 48 3 5192 48

2014 8,958 4.1%100 2 24 3 2982 24

2013 8,934 5.4%98 2 202 5 3221 197

2012 8,737 4.2%97 3 130 4 4643 130

2011 8,607 4.5%94 0 0 3 1300 0

2010 8,607 5.4%94 0 0 1 640 0

2009 8,607 5.4%94 6 220 0 06 220

2008 8,387 5.4%88 2 434 6 2202 434

2007 7,953 7.7%86 1 384 3 5201 384


Page 22

Documents

QUARTERLY NEWSLETTER | Q1 19...Coworking office operators such as WeWork and Knotel are revolutionizing the use of real estate from a fixed asset to fluid space as a service. In just