Triangle Apartment Association Bus Tour Booklet_2015

NEW CONSTRUCTION BUS TOUR

SPRING 2015

JUNE 4, 2015

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2 TRIANGLE APARTMENT ASSOCIATION / SPRING 2015 NEW CONSTRUCTION BUS TOUR / JUNE 4, 2015

SPRING 2015 NEW CONSTRUCTION BUS TOUR

Dear TAA Bus Tour Participant,

Welcome to the Triangle Apartment Association’s 2015 Spring New Apartment Construction Bus Tour! We have an afternoon packed full of information and networking that we hope will be both educational and fun.

Today’s event features some of Durham’s newest and most innovative apartment communities built to date. You will have the opportunity to tour four of these communities on our tour route allowing each the opportunity to showcase their unique product. We know you’ll be wowed by the construction, features and amenities, and apartment interiors each community offers to today’s renter.

Throughout the day you will hear from bus moderators who have a wealth of knowledge and experience about the Triangle apartment market. From market trends and conditions to economics and demographics impacting our geographic region to multifamily new construction and development trends to sales and finance… we’ve got it all covered for you in one day.

We’d like to extend a special thank you to the Bus Tour Task Force for their work planning today’s event; along with the event sponsors for their support.

Finally, we’d like to thank you for being a part. We hope the time you spend here today will be a beneficial networking opportunity that provides valuable information you can apply and share with your associates and your company.

Now sit back, relax and enjoy your ride as we hear and see how Durham is ‘knocking it out of the park’ in the multifamily housing market.

Regards,

Barb O’SteenGreystar2015 TAA President

TABLE OF CONTENTS WELCOME

2

3

4

5

7

10

12

24

WELCOME LETTER

A THANK YOU

IT INERARY & BUS TOUR ROUTE

BUS TOUR NARRATORS

DEMOGRAPHICS / EMPLOYMENT

MARKET ANALYSIS

COMMUNITY PROFILES

APARTMENT SALES ANALYSIS

WELCOME & CONTENTS


SPRING 2015 NEW CONSTRUCTION BUS TOUR A THANK YOU

Bus Sponsors - 2015 Gold Level Visionary Partners

SPECIAL THANKS TO OUR SPONSORS, HOSTS, SPEAKERS, & NARRATORS

Host Communities

The Moore Building at West Village

Crescent Main Street

Heights at South LaSalle

300 Swift

Tour Narrators

Jeff Furman, Northwood Ravin

Jeff Glenn, CBRE

Brian Reece, Karnes

Julie Spencer, HHHunt

Reception Sponsor

Parking Sponsor

Speakers

Geoff Durham, Downtown Durham, Inc.

Courtney Duffy Coyle, Blackwell Street Management Company

Blackwell Street Management Company


SPRING 2015 NEW CONSTRUCTION BUS TOUR ITINERARY & BUS TOUR ROUTE

11:30 AM TO 12:00 PM

12:00 PM TO 1:15 PM

1:30 PM

4:45 PM TO 6:30 PM

REGISTRATION

LUNCH AT BAY 7

BUSES DEPART

RECEPTION AT BASAN

1 Moore Building at West VillageStop

2 Crescent Main StreetStop

Heights at South LaSalleStop

3

300 SwiftStop

4

2015 Bus Tour Guide

map prepared by:

1

2

3

4


SPRING 2015 NEW CONSTRUCTION BUS TOUR BUS TOUR NARRATORS

Julie Spencer has been involved with the multifamily industry since 1996. Over the course of her career she has gained experience in all aspects of apartment operations, development and financing.

Today as Director of Business Development for HHHunt, she is responsible for identifying markets and acquiring land for the development of market rate apartment and senior living communities throughout the Mid-Atlantic and Southeast. She is also responsible for evaluating new investments to ensure they will meet return expectations, and participates in the pursuit of equity and debt, including HUD insured financing.

She holds a Bachelor of Arts in Communication Studies from the University of North Carolina at Chapel Hill, has served on the TAA Board of Directors, and participated with several committees for the Triangle Apartment Association.

JULIE SPENCERDirector of Business DevelopmentHHHunt Properties

Brian Reece has been involved in the commercial real estate industry for over 20 years. In addition to his research and analysis work with Karnes Research Company, Mr. Reece has been on the opposite side of the industry while working with commercial real estate developers.

Mr. Reece joined Karnes Research in 1996 as the Director of Research Services. Mr. Reece has been in charge of the research team tracking the Charlotte, Triangle, Triad, and Asheville commercial markets covering office, industrial and retail properties, as well as the Raleigh-Durham apartment market. Mr. Reece has also consulted public and private sector clients on issues such as economic development, housing, retail demand, office and industrial demand, apartment feasibility, and demographics.

Mr. Reece is the Co-Founder of the Downtown Raleigh Living Advocates, a civic organization with over 1,000 members, and served as its president between 2009 and 2013. Mr. Reece has also served as a committee member for the Research Triangle Chapter of NAIOP. Mr. Reece served as the Chairman of the Raleigh City Museum between 2008-2009. Mr. Reece has also served as a Champion Judge for the Triangle Commercial Real Estate Women (TCREW) since 2006. Mr. Reece is a member of the Triangle Apartment Association (TAA) and has been a speaker for Triangle J Council of Governments, the Institute of Real Estate Management (IREM), and the Triangle Apartment Association Economic Forum.

BRIAN REECERegional Director of Client Services / Mid-AtlanticXceligent / KARNES


SPRING 2015 NEW CONSTRUCTION BUS TOUR BUS TOUR NARRATORS

As head of the Raleigh regional office and Vice President of Development, Jeff is responsible for the development, design, construction and stabilization of Northwood Ravin’s multifamily and mixed-use developments. Working closely with the development, general contracting and property management teams, he has been a key contributor to the successful development of over 4,400 residential units and 800,000 sq. ft. of commercial.

Jeff is a registered Professional Engineer, licensed Real Estate Broker in Charge and LEED accredited professional. Affiliations include ULI, GBI, USGBC and the Triangle Community Coalition. He holds a BS in Civil Engineering from NC State and a MS in Engineering from the University of Texas at Austin.

Based in North Carolina with offices in Charlotte, Raleigh, and Tampa, Fla., Northwood Ravin has eight projects under construction totaling $300 Million in Tampa, Atlanta, Charlotte and Raleigh with three more projects planned in Dallas, Nashville, Tenn., and Chapel Hill, N.C.

JEFF FURMANVice President, Development / Director of Raleigh OperationsNorthwood Ravin

Jeff is a commercial real estate broker with twenty years of experience advising private, public and institutional investors in the disposition, acquisition and structuring of over $2 billion of large scale investment property. Jeff’s areas of expertise include multi-housing sales, site acquisition and the Raleigh-Durham marketplace.

Jeff joined one of Raleigh’s largest full-service commercial real estate firms upon graduation from East Carolina with a BS in Urban and Regional Planning in 1992 as an associate responsible for leasing and sales in his hometown of Durham, NC. In 1994, Jeff made the transition to full-time investment brokerage upon the completion of several notable multi-housing sales throughout the Southeast on behalf of institutional clients. Jeff quickly gained recognition as one of the Carolinas’ top investment specialists in the mid-1990’s, adding office and industrial product to his resume.

In 1998, Property Resources was purchased by CB Commercial, later to become CBRE through a series of global acquisitions. In 2009, in an effort to better serve institutional and private clients in central and eastern North Carolina, Jeff was integrated into CBRE’s Southeast Multi-Housing Group. In this capacity, Jeff and his team have represented numerous private developers, investors, and institutional owners in the purchase and sale of over $1 billion of existing property, presales, and ground-up development in the Raleigh-Durham market.

JEFF GLENNExecutive Vice President, Investment PropertiesCBRE



The Triangle region is known for a high quality of life, its access to a highly educated workforce, and a healthy and diverse economy. Durham County plays a vital role in the region’s economy with its diverse employment base and focus on fostering entrepreneurism and innovation. Every day, a convergence of academia and product development in the area of life sciences, biotechnology, and medicine, to name a few, produce new technologies and therapies that can and will change our way of life. The groundbreaking discoveries occurring in Durham positively impact people around the globe, expanding the story of Durham far beyond its county borders.

Durham is much more than a thriving hub of innovation. The revival of Downtown Durham, beginning with the redevelopment of the American Tobacco Campus, has attracted a confluence of cultural influences, which have further defined Durham as a diverse and vibrant core for entertainment, with inspired food offerings that will satisfy the most persnickety palate.

The proof of Durham’s significance is also evidenced by numbers. Year over year, the Durham-Chapel Hill Metropolitan Statistical Area (MSA) saw a gain in nonfarm payrolls (private sector employment) of 6,500 or a 2.3% increase in private sector employment. The current unemployment rate in the Durham-Chapel Hill MSA is a low 4.6%. The current estimated median income in Durham County is a respectable $51, 276, albeit the lowest in the three county area around Research Triangle Park, behind Orange at $56,243 and Wake at $66,465. Between 2000 and 2010 the households in the Raleigh-Durham Combined Statistical Area (CSA) grew by just under 160,000 and Durham generated 21.3% of the overall growth. There are an estimated 690,832 households in the Raleigh-Durham CSA and it is projected to increase by 53,083 or 7.7% between 2015 and 2020. The Durham-Chapel Hill MSA alone is projected to increase by 15,252 households or by 7%. Sources: Sources: Bureau of Labor Statistics; Demographic data provided by Nielsen Consumer Activation.


Durham County Major Employers EmployeesDuke University & Health System 34,863International Business Machines (IBM) 10,000Durham Public Schools 4,600GlaxoSmithKline 3,700Blue Cross & Blue Shield of North Carolina 3,200Durham City Government 2,437Fidelity Investments 2,400Quintiles Transnational Corp. 2,300Research Triangle Institute (RTI) 2,300Veterans Affairs (VA) Medical Center 2,162Cree, Inc. 2,125AW North Carolina, Inc. 2,000U.S. Environmental Protection Agency 1,950Durham County Government 1,720National Institute of Environmental Health Sciences 1,372North Carolina Central University 1,248Walmart 1,150Merck & Co., Inc 1,100Lab Corp 1,000BASF Corporation Agricultural Products Group 950National Institutes of Health 860Source: Durham Chamber (www.durhamchamber.org)

Durham-Chapel Hill MSA Unemployment Trends -March Periods

7.3%

6.4%

5.2%

4.6%

2012 2013 2014 2015



Year-Over-Year Change - Nonfarm Payroll

115,800

80,500

50,700

36,700

34,500

22,800

18,800

9,600

7,900

6,500

Dallas-Fort Worth-Arlington, TX

Atlanta-Sandy Springs-Marietta, GA

District of Columbia

Charlotte-Concord-Gastonia, NC-SC

Tampa-St. Petersburg-Clearwater, FL

Austin-Round Rock, TX

Raleigh, NC

Charleston-N Charleston, SC

Richmond, VA

Durham-Chapel Hill, NC

March 2015 Unemployment Rate

5.9%

5.4%

5.3%

5.3%

5.2%

4.7%

4.6%

4.5%

4.0%

3.3%





Richmond, VA

Washington-Arlington-Alexandria, DC


Raleigh, NC



Total Population

1,317,131 1,261,0641,143,516 1,141,682

1,035,725 1,015,129 1,006,083 998,488

485,310293,077

143,201

Hillsborough Orange (FL) Travis Fairfax Montgomery Mecklenburg Fulton Wake Greenville Durham Orange (NC)

The evolution of Durham is significant and will continue to generate economic and real estate development as the population grows. All of these factors will fuel demand for the high end apartment development that is occurring and create a more diverse apartment market as the expansion phase of the apartment market continues in Durham’s urban core.

A snapshot of employment indicators and demographic trends for Durham County in the context of the Raleigh-Durham Combined Statistical Area and the Durham-Chapel MSA (Wake, Johnston and Franklin County), with comparisons to selected Metropolitan Statistical Areas are provided in the following pages.

Year-Over-Year Change in Nonfarm Payroll. The Raleigh-Durham Combined Statistical Area experienced a gain of 25,300 nonfarm payrolls between March 2014 and March 2015. The Durham-Chapel MSA contributed 6,500 or 26% of the total payroll gains. Nonfarm payroll represents private sector employment and generally is a good indicator of real employment growth. In addition, with an unemployment rate of 4.6%, the Durham-Chapel MSA and entire Raleigh-Durham Metropolitan area has an unemployment rate that ranks as one of the highest in the country, and clearly the highest among major metropolitan areas in the southeast.

Demographic Trends. With a total population just under 300,000, Durham County is small in size as compared


Source: Bureau of Labor Statistics

Source: Bureau of Labor Statistics

Data provided by Nielsen Consumer Activation



Household Growth - Comparative Periods

384,174

278,804

189,905

178,596

141,957

124,139

59,617

52,034

33,775

422,649Dallas-Fort Worth-Arlington, TX


Washington-Arlington-Alexandria, DC-VA-MD-WV




Raleigh, NC

Richmond, VA



HHs 2015-20

HHs 2010-15

HHs 2000-10

2015 Estimated Median Household Income

$62,586

$59,762

$58,865

$58,706

$55,755

$52,846

$52,243

$51,413

$45,791

$92,441Washington-Arlington-Alexandria, DC

Raleigh, NC

Richmond, VA




Charlotte-Concord-Gastonia, NC

Durham-Chapel Hill , NC



Total Population 21-34, % of Population 21-34

31,99766,616

190,

823

22%23%18%19%

22%21%

17%18%

25%22%20%

0

50,000

100,000

150,000

200,000

250,000

300,000

Hillsborough Orange (FL) Travis Fairfax Montgomery Mecklenburg Fulton Wake Greenville Durham Orange (NC)

0%

5%

10%

15%

20%

25%

30%Ages 21-34 Pop Ages 21-34 % of Total Pop

to major counties in other MSAs. Of the selected areas shown, Hillsborough is the major County in the Tampa MSA with the largest population. With just over 65,000 people between the ages of 21 and 34 (or those very likely to rent), Durham County has a large share of the population between the ages of 21 and 34, or those very likely to rent, at 23%. Selected counties below are in the Tampa, Orlando, Austin, Washington DC (Fairfax VA and Montgomery MD), Atlanta, Charlotte, Raleigh-Cary, Greenville-Spartanburg, and Durham-Chapel Hill Metropolitan Areas (in order, as shown in the Total Population chart).

Household Growth. The Durham-Chapel Hill Metropolitan Statistical Area, increased by 33,775 households between 2000 and 2010 and an estimated 16,164 between 2010 and 2015 and is projected to increase by just over 15,000 households between 2015 and 2020. Among the selected MSA’s, Durham is a smaller area but it is only comprised of 4 counties (Durham, Orange, Chatham, and Person Counties). However, on a percentage basis, historical and projected household growth rank high comparatively with the other high growth metro areas.

Median Household Income. Durham County’s median income is lower than that of either of the three primary counties in the Combined MSA, but still respectable at $51,276.







CompletionsSubmarket Sept. '14 March '15 Last 6 Mos.* Last 6 Mos.* Last 12 Mos.** March '14 March '15Cary/Morrisville/Apex 5.7% 4.8% 281 434 1,227 $997 $1,029North 9.3% 7.0% 0 241 604 $891 $930Northeast 7.4% 7.9% 288 213 651 $885 $917Northwest 7.0% 7.5% 336 223 653 $902 $947South 12.5% 10.5% 176 248 4 $833 $859Southwest 8.5% 11.2% 715 355 738 $933 $1,030Total 7.6% 7.5% 1,796 1,714 3,877 $923 $968

North 10.7% 12.2% 766 526 373 $902 $997South 6.6% 6.5% 418 413 776 $891 $931Total 8.1% 8.6% 1,184 939 1,149 $895 $955

Carrboro 11.5% 9.6% 0 74 -120 $765 $833Chapel Hill 5.1% 6.7% 0 -81 -36 $1,002 $1,044Hillsborough 2.4% 3.3% 0 -6 -4 $792 $833Total 7.5% 7.6% 0 -13 -160 $892 $945

Triangle Total 7.7% 7.8% 2,980 2,640 4,866 $913 $963* September 2014 to March 2015 **March 2014 to March 2015

Ora

nge

Average Weighted Rents

Dur

ham

Wak

e

Vacancy Net Absorption

Triangle Apartment Vacancy Trends

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Triangle 6.0% 5.9% 5.5% 5.5% 5.9% 7.6% 7.7% 7.8%

Wake 5.7% 5.6% 5.0% 5.4% 6.5% 8.0% 7.6% 7.5%

Durham 6.4% 6.5% 6.5% 5.5% 4.7% 7.3% 8.1% 8.6%

Orange 6.7% 6.8% 5.8% 6.3% 4.3% 5.9% 7.5% 7.6%

Sept. '11 March '12 Sept. '12 March '13 Sept. '13 March '14 Sept. '14 March '15

Triangle Apartment Completion Trends (Units)

0

500

1,000

1,500

2,000

2,500

3,000

Wake

Durham

Orange

Wake 372 370 410 81 2,689 2,183 2,074 1,796

Durham 479 0 359 207 130 680 452 1,184

Orange 201 42 0 0 80 0 0 0


MARKET ANALYSIS

At 7.8%, the Triangle’s March 2015 vacancy rate was up 0.1% of a point from the rate reported in September 2014 and was 0.2% of a point higher than the rate reported in March of 2014. Despite the increase, the rate remained below the high of 8.6% reported in March of 2010. Supply-side pressure from new construction, which totaled 2,980 units during the six-month period ending in March of 2015, was up from both the 2,526 units delivered in the six-month period ending in September of 2014 and the 2,863 units delivered in the six-month period ending in March of 2014. Demand, as measured by net absorption, during the six-month period ending in March of 2015 totaled 2,640 units and was outpaced by supply-side pressures in the form of new unit deliveries, resulting in the increased regional vacancy rate. Demand during the six-month period ending in March 2015 was the highest level reported for a fall-winter period since KARNES began tracking the market in 1996.

Completions. The completion level for the six-month period ending in March of 2015 was the highest level reported during a fall-winter period since 2001. Completions during the 12-month period ending in March of 2015, which totaled 5,506 units, were down from the 5,762 units delivered over the 12-month period ending in March of 2014, but were well above the 1,057 units delivered over the 12-month period ending in March of 2013. The number of new units delivered over the 12-month period ending in March of 2015 was above the 3,070 units averaged in each of the 12-month periods ending in March since 1998 and was also the third highest level ever reported by KARNES during a 12-month period.

All but four of the eleven Triangle submarkets reported new unit deliveries during the six-month period ending in March of 2015 with North Durham leading the region with 766 units. All but one Wake County submarket and all Durham County submarkets reported new

Source: KARNES

Source: KARNES

Source: KARNES



Units Under UnitsSubmarket Construction ProposedCary/Morrisville/Apex 1,192 1,745North 414 1,000Northeast 1,367 418Northwest 450 1,402South 0 408Southwest 1,890 368Total 5,313 5,341

North 609 358South 168 949Total 777 1,307

Carrboro 0 0Chapel Hill 0 1,144Hillsborough 0 0Total 0 1,144

Triangle Total 6,090 7,792

Ora

nge

Dur

ham

Wak

e

Triangle Apartment Asking Rent Trends

$500

$600

$700

$800

$900

$1,000

$1,100

All $838 $851 $873 $879 $898 $913 $937 $961

Eff. $602 $614 $630 $624 $651 $680 $735 $798

One $740 $753 $773 $780 $799 $811 $833 $864

Two $874 $886 $911 $914 $935 $953 $978 $1,002

Three $838 $851 $873 $879 $898 $913 $937 $961


Triangle Apartment Net Absorption Trends (Units)

-500

0

500

1,000

1,500

2,000

2,500

3,000Wake

Durham

Orange

Wake 741 434 746 -131 1,695 1,013 2,163 1,714

Durham 824 -39 312 458 347 -61 210 939

Orange 1,710 424 1,153 286 2,305 795 2,226 2,640


unit deliveries during the six-month period, while no new supply was reported in Orange County during the period. The 1,303 units completed in Southwest Wake during the 12-month period ending in March of 2015 led all Triangle submarkets.

Demand. The Triangle market typically experiences seasonally weaker demand during the fall-winter leasing period. Demand during the six-month period ending in March of 2015 totaled 2,640 units and was above both the 795 units reported in the six-month period ending in March of 2014 and the 286 units reported in the six-month period ending in March of 2013. Net demand during the six-month period ending in March of 2015 was also above the 779 units averaged in each of the March periods over the past 10 years. Despite reporting above average net demand during the six-month period ending in March of 2015, historically high supply-side pressures forced vacancy rates up in the Triangle apartment market. While the regional vacancy rate increased, it remained below the 8.6% reported in March 2010 and was still below the 7.9% averaged in March periods over the past 10 years. The Triangle vacancy rate, while not near 4.6% averaged in fall-winter periods during the 1990s, remains below from the 9.7% averaged during the 2000s.

The upcoming spring-summer leasing period is typically a seasonally stronger leasing period. Continued supply-side pressure from projects under construction, which totaled 6,090 units as of March 2015, will continue to test the apartment market over the next six months. Continued uncertainty in the housing and credit markets should, however, help to partially mitigate supply concerns in the Triangle market. New proposed projects, which now total 7,792 units, are queued for construction but will likely await the response to the significant development currently underway prior to breaking ground. Even without construction beginning on the proposed projects during the next 12 months, the current development pipeline of projects under construction should be too great for seasonal demand.

Forecast. The seasonally stronger leasing period during the next six months will likely be outpaced by increased supply-side pressures, that is forecasted to total over 3,000 units, resulting in a increase in the average Triangle vacancy rate. Provided seasonal demand over the next six months is in line with the historical average for the spring-summer leasing period, it appears likely that the vacancy rate in the Triangle will average between 9.1% and 10.1% in September of 2015. This will likely vary by submarket based on supply-side pressures through new construction. It is estimated that approximately 6,000 units will be completed during the 12-month period ending in March of 2016. This level of new supply is forecasted to exceed average annual demand, which averaged 2,656 units between 2003 and 2014, and will result in the vacancy rate increasing to between 10.2% and 11.2% by March of 2016.

Source: Karnes Research Company

MARKET ANALYSIS

Source: KARNES

Source: KARNES

Source: KARNES


SPRING 2015 NEW CONSTRUCTION BUS TOUR COMMUNITY PROFILES

Address605 West Morgan AvenueDurham, NC 27701 DetailsYear Built: 2015Total Units: 156Units Proposed: 0Units Under Construction: 0

1THE MOORE BUILDING AT WEST VILLAGE - OVERVIEW

DescriptionWelcome to Moore at West Village, an upscale apartment community in downtown Durham, North Carolina. We are a walker’s paradise with scores of restaurants, shopping, and nightlife all within a few blocks. We are also just a few minutes from Duke and the Durham Freeway, with easy access to the Research Triangle. We have five courtyards to enjoy, as well as a pool, fitness center, outdoor kitchen, game room, and more. Premiums Pool View: $30Corner: $50Balcony: $45 - $90Elevator: $10Upper Floor: $20View: $30

AmenitiesPool Fitness Center Clubhouse Business Center Bus Line

Managed By Bell Partners



1THE MOORE BUILDING AT WEST VILLAGE - UNIT MIX

COMMUNITY PROFILES

Name Total Units Occupancy Type Beds Baths Rental Range Square Feet A2 5 0.0% Garden 0 1 $1292 - $1302 638 A1 15 26.7% Garden 1 1 $1197 - $1272 588 B4 18 38.9% Garden 1 1 $1207 - $1474 711

B1a 5 20.0% Garden 1 1 $1369 - $1394 716 B1b 1 0.0% Garden 1 1 $1402 - $1402 718 C1b 1 0.0% Garden 1 1 $1428 - $1428 732 C1a 1 0.0% Garden 1 1 $1423 - $1423 732 B1 45 17.8% Garden 1 1 $1408 - $1508 738

B1HC 5 0.0% Garden 1 1 $1378 - $1403 750 B2 1 0.0% Garden 1 1 $1496 - $1496 863

B2a 1 0.0% Garden 1 1 $1491 - $1491 863 B5 5 80.0% Garden 1 1 $1556 - $1591 864 B6 5 80.0% Garden 1 1 $1594 - $1614 881

B3a 1 0.0% Garden 1 1 $1546 - $1546 957 C2a 1 100.0% Garden 1 1 $1607 - $1607 958 B3 5 100.0% Garden 1 1 $1550 - $1655 963 C1 24 12.5% Garden 2 2 $1904 - $1969 1,042

C1HC 4 0.0% Garden 2 2 $1941 - $1961 1,065 C3 9 66.7% Garden 2 2 $2219 - $2264 1,265 C6 4 75.0% Garden 2 2 $2501 - $2521 1,494

Total/Average 156 29.5% - - - $1,586 842




1THE MOORE BUILDING AT WEST VILLAGE - PHOTOS

COMMUNITY PROFILES




Address704 15th StreetDurham, NC 27705 DetailsYear Built: 2015Total Units: 208Units Proposed: 0Units Under Construction: 0

CRESCENT MAIN STREET - OVERVIEW

DescriptionWelcome to extraordinary living at Durham’s newest apartment community. Just a short walk from Duke University, Duke University Hospital, and the bustling activity on Ninth Street. Crescent Main Street offers residents a retreat from the ordinary while still providing easy access to restaurants, coffee shops, entertainment, shopping and more. Sophisticated interior design sets the tone for a soothing space you can call your own, while community luxuries such as a state-of-the-art health club with separate yoga room, resort-style saltwater pool and outdoor fireplace, and enriching social events in the resident lounge create an atmosphere unlike any other.

Premiums Upper Floor: $401st and 2nd Floors: $203rd and 4th Floors: $40Loft: $50View: $50Pet Monthly: $20

AmenitiesPool Fitness Center Clubhouse Business Center Cable TV Hot TubBus Line Storage UnitsInternet

2Managed By Greystar



CRESCENT MAIN STREET - UNIT MIX

COMMUNITY PROFILES

Name Total Units Occupancy Type Beds Baths Rental Range Square Feet Umstead 8 12.5% Garden 1 1 $1168 - $1178 601

Umstead.1 8 0.0% Garden 1 1 $1224 - $1294 632 Biltmore 50 0.0% Garden 1 1 $1448 - $1508 749

Biltmore.1 34 2.9% Garden 1 1 $1443 - $1513 749 Biltmore.2 6 33.3% Garden 1 1 $1479 - $1489 766 Biltmore.3 4 0.0% Garden 1 1 $1509 - $1529 783 Biltmore.4 6 0.0% Garden 1 1 $1514 - $1524 785 Biltmore.5 6 0.0% Garden 1 1 $1540 - $1550 801

Biltmore Loft 4 0.0% Garden 1 1 $1758 - $1768 883 Biltmore.4 Loft 1 0.0% Garden 1 1 $1834 - $1834 919 Biltmore.5 Loft 2 0.0% Garden 1 1 $1865 - $1865 935

Grandover 5 20.0% Garden 2 2 $1948 - $1958 1,121 Grandover.1 11 36.4% Garden 2 2 $1948 - $2018 1,121 Fearrington 12 8.3% Garden 2 2 $2009 - $2019 1,158

Fearrington.1 6 16.7% Garden 2 2 $2121 - $2171 1,158 Ballantyne.1 3 0.0% Garden 2 2 $2055 - $2065 1,182 Ballantyne 4 25.0% Garden 2 2 $2157 - $2167 1,242

Fearrington.2 8 12.5% Garden 2 2 $2295 - $2315 1,323 Ballantyne.3 12 0.0% Garden 2 2 $2305 - $2325 1,331 Ballantyne.2 5 0.0% Garden 2 2 $2152 - $2162 1,331

Duke Washington 3 0.0% Garden 2 2 $3727 - $3767 1,830 Morehead 3 0.0% Garden 2 2 $3727 - $3896 1,914 Greystone 7 28.6% Garden 3 2 $3876 - $3896 1,784

Total/Average 208 7.2% - - - $1,827 964




CRESCENT MAIN STREET - PHOTOS

COMMUNITY PROFILES




Address500 South LaSalle StreetDurham, NC 27705 DetailsYear Built: 2013Total Units: 290

HEIGHTS AT SOUTH LASALLE - OVERVIEW

DescriptionDiscover the finest apartments in Durham, North Carolina at The Heights at LaSalle Apartments. When you live at The Heights at LaSalle Apartments you’re not just close by everything you need . . . you’re already in the neighborhood. The entire campus of Duke University is a three-point shot away. Miniscule minutes from your front door is the Warehouse District featuring Brightleaf Square, the premier shopping, dining and entertainment venue in Downtown Durham. Performing Arts venues, the legendary Durham Bulls baseball team and other attractions abound. Twenty minutes tops puts the world at your feet at the RDU International Airport. And even closer is the world class Duke Medical Center. Premiums Pet Fee: $300Pet Deposit: $250Pet Monthly: $10

AmenitiesPool Fitness Center Clubhouse Business Center Bus Line Internet

3Managed By The Worthing Companies



HEIGHTS AT SOUTH LASALLE - UNIT MIX

COMMUNITY PROFILES

Name Total Units Occupancy Type Beds Baths Rental Range Square Feet S2 8 100.0% Garden 1 1 $1230 - $1375 639 A1 116 94.0% Garden 1 1 $1195 - $1420 657 S1 4 75.0% Garden 1 1 $1200 - $1345 675 A2 12 100.0% Garden 1 1 $1275 - $1420 756 S3 8 100.0% Garden 1 1 $1315 - $1460 799 A4 8 87.5% Garden 1 1 $1430 - $1575 819 B1 118 94.9% Garden 2 2 $1585 - $1695 945 B4 16 81.3% Garden 2 2 $1850 - $2035 1,113

Total/Average 290 93.8% - - - $1,486 812




HEIGHTS AT SOUTH LASALLE - PHOTOS

COMMUNITY PROFILES




Address300 Swift AvenueDurham, NC 27705 DetailsYear Built: 2014Total Units: 202Units Proposed: 0Units Under Construction: 0

300 SWIFT - OVERVIEW

DescriptionLiving in the desirable city of Durham is just the beginning at 300 Swift. Once at home, residents of 300 Swift can choose from an array of activities, from relaxing in the saltwater pool to taking in a film in the private theater.

Premiums Upper Floor: $100Vaulted/High Ceilings: $175View: $251st Floor: $45Court Yard View: $25Pool View: $50

AmenitiesPool Fitness Center Clubhouse Business Center Hot Tob Bus Line




300 SWIFT - UNIT MIX

COMMUNITY PROFILES

Name Total Units Occupancy Type Beds Baths Rental Range Square Feet S1 3 0.0% Garden 1 1 $1005 - $1105 578

S1-3 4 25.0% Garden 1 1 $1030 - $1130 604 S1-2 4 0.0% Garden 1 1 $1050 - $1095 604 S1-1 10 30.0% Garden 1 1 $1100 - $1200 604 S1-4 7 0.0% Garden 1 1 $1075 - $1120 635 A1 54 3.7% Garden 1 1 $1300 - $1445 737

A1-HC 5 0.0% Garden 1 1 $1275 - $1420 737 A1-5 3 0.0% Garden 1 1 $1365 - $1365 737 A1-1 12 0.0% Garden 1 1 $1395 - $1495 737 A1-3 3 0.0% Garden 1 1 $1345 - $1390 737 A1-2 2 0.0% Garden 1 1 $1400 - $1400 757 A1-4 24 0.0% Garden 1 1 $1375 - $1420 764 A4 4 0.0% Garden 1 1 $1395 - $1495 852 A2 6 0.0% Garden 1 1 $1475 - $1520 877 A5 1 0.0% Garden 1 1 $1595 - $1595 960 A3 2 0.0% Garden 1 1 $1640 - $1640 1,033

B1-HC 2 0.0% Garden 2 2 $1730 - $1885 1,069 B1-3 5 20.0% Garden 2 2 $1690 - $1710 1,069 B1-2 1 0.0% Garden 2 2 $1810 - $1810 1,069 B1-1 3 0.0% Garden 2 2 $1710 - $1740 1,069 B1 32 0.0% Garden 2 2 $1690 - $1760 1,069 B2 13 0.0% Garden 2 2 $1985 - $2010 1,212 B3 2 0.0% Garden 2 2 $2195 - $2195 1,295

Total/Average 202 3.5% - - - $1,475 840




300 SWIFT - PHOTOS

COMMUNITY PROFILES



SPRING 2015 NEW CONSTRUCTION BUS TOUR APARTMENT SALES ANALYSIS

Property City/Town Units Age Class Price P/Unit P/Ft Date

1 Heights at South LaSalle Durham 290 2013 AA $53,300,000 $183,793 $229 6/1/2014

2 Howell Street Apartments Chapel Hill 12 1970 B $2,668,000 $166,750 $210 9/18/2014

3 Tryon Place at Cary Parkway Cary 205 2013 A $32,250,000 $157,317 $264 5/1/2014

4 Waterstone at Brier Creek Raleigh 232 2014 A $32,700,000 $140,948 $122 1/3/2014

5 Carrington at Brier Creek Raleigh 270 2003 A $37,850,000 $140,185 $128 3/14/2014

6 Legacy at Wakefield Raleigh 369 2012 B $50,525,000 $136,924 $139 8/20/2014

7 Estates at Wake Forest Wake Forest 288 2013 A $37,200,000 $129,167 $123 1/3/2014

8 Crest at Brier Creek Raleigh 291 2013 A $37,500,000 $128,866 $121 6/1/2014

9 Sedgefield Park Durham 23 1982 B $2,905,000 $126,304 $155 7/1/2014

10 Evergreens at Mt Moriah Durham 268 2001 A $33,050,000 $123,321 $123 6/1/2014

Property City/Town Units Age Class Price P/Unit P/Ft Date

1 Heights at South LaSalle Durham 290 2013 AA $53,300,000 $183,793 $229 6/1/2014

2 Legacy at Wakefield Raleigh 369 2012 B $50,525,000 $136,924 $139 8/20/2014

3 The Columns at Wakefield Raleigh 324 2003 A $39,161,625 $120,869 $108 6/1/2014

4 Carrington at Brier Creek Raleigh 270 2003 A $37,850,000 $140,185 $128 3/14/2014

5 Crest at Brier Creek Raleigh 291 2013 A $37,500,000 $128,866 $121 6/1/2014

6 Estates at Wake Forest Wake Forest 288 2013 A $37,200,000 $129,167 $123 1/3/2014

7 VIllage at Broadstone Apex 300 2013 A $35,550,000 $118,500 $104 3/18/2014

8 Evergreens at Mt Moriah Durham 268 2001 A $33,050,000 $123,321 $123 6/1/2014

9 Waterstone at Brier Creek Raleigh 232 2014 A $32,700,000 $140,948 $122 1/3/2014

10 Tryon Place at Cary Parkway Cary 205 2013 A $32,250,000 $157,317 $264 5/1/2014

Top Sales Transactions by Price Per Unit (2014)

Top Sales Transactions by Total Price (2014)

Raleigh-Durham Apartment Transaction Trend 2004-2014

$400

$755

$1,063$964 $1,032

$251

$528

$966$1,161

$1,422

$1,984

$0

$500

$1,000

$1,500

$2,000

$2,500

1905 1905 1905 1905 1905 1905 1905 1905 1905 1905 1905

Calendar Year Totals

Tran

sact

ion

Tota

ls in

Mill

ion

Dol

lars

Raleigh-Durham Apartment Buyer Profile2010-2014

PENSION, $815,814,000

EQUITY FUND, $381,875,385

REIT, $577,841,667

LIFE, $87,435,000

FOREIGN, $3,500,000

OTHER DOMESTIC, $8,100,000

PRIVATE, $2,910,757,905

All sales information provided by Jeff Glenn, CBRE


SPRING 2015 NEW CONSTRUCTION BUS TOUR EVALUATION FORM

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The Moore Bldg. at West Village

Crescent Main Street

Heights at South LaSalle

300 Swift

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