Research & Forecast Report

TAMPA Accelerating success. Q2 2017 | Multifamily

Source: AXIOMetrics. RCA, CoStar

Market Survey Results and Forecasts Sequential Month Annual 3Q16 4Q16 1Q17 2Q17 Jun-17 2015 2016 2017F 2018F 2019F 2020F 2021F Effective Rent Per Unit $1,120 $1,113 $1,115 $1,131 $1,140 $1,045 $1,104 $1,132 $1,160 $1,197 $1,242 $1,280 Per Sq. Ft $1.18 $1.18 $1.18 $1.20 $1.21 $1.11 $1.17 $1.20 $1.23 $1.27 $1.31 $1.35 Effective Rent Growth - Annually 5.5% 4.0% 3.4% 2.5% 3.0% 6.1% 5.6% 2.6% 2.5% 3.2% 3.8% 3.0%

Effective Rent Growth - Quarterly 1.5% -0.6% 0.2% 1.5% Occupancy Rate 95.4% 94.7% 94.9% 95.0% 95.1% 95.5% 95.3% 94.9% 94.6% 95.0% 95.3% 94.9% Occupancy Change - Annually -0.3% -0.9% -0.7% -0.6% -0.2% 0.7% -0.2% -0.4% -0.3% 0.4% 0.3% -0.4% Occupancy Change - Quarterly -0.1% -0.7% 0.1% 0.2% Economic Concessions Concession Value $-3.28 $-6.42 $-7.10 $-5.47 $-5.10 $-3.75 $-4.47 As a % of Asking Rent -0.3% -0.6% -0.6% -0.5% -0.4% -0.4% -0.4% RECENT SALES

Date Property Name Address City Units Year Built Price in $ $/Units Jul-17 Element 812 N Franklin St Tampa 395 2008 118,500,000.00 300,000 Jun-17 Sunstone Palms 2225 E 131st Ave Tampa 536 1975 41,700,000.00 77,799 Jun-17 Pearce at Pavilion 3603 Pavilion Palms Cir Riverview 250 2016 49,927,791.70 199,711 May-17 Aarans Walk Condominiums 13101 Aarans Pond Dr Tampa 109 1972 5,362,650.00 49,199 (bulk cond) May-17 St Charles Row 1175 Pinellas Point Dr S Saint 368 1972 37,465,000.00 101,807 Petersburg May-17 Villa Amor 13801-13923 N 19th St University 68 1974 / 1993 2,833,400.00 41,668 May-17 Enclave At Wesley Chapel 1930 Devonwood Dr Wesley Chapel 312 2005 52,500,000.00 168,269 May-17 Palm Island Club 13800 Bruce B Downs Blvd Tampa 320 1972 / 2000 24,100,000.00 75,313 May-17 The Farrington Apartments 2738 Roosevelt Blvd Largo 224 1974 / 1991 18,450,000.00 82,366 May-17 Cornerstone Pointe 301 Seacrest Dr Largo 111 1973 . 1986 10,575,000.00 95,270 May-17 42North 14502 Valor Cir Tampa 120 1998 16,338,000.00 136,150 Apr-17 Waterside 3640 49th Ave North Saint 102 1973 / 1992 5,700,000.00 55,882 Petersburg Apr-17 Cottage Court 7110 Tudor Ln Bayonet Point 92 1985 6,700,000.00 72,826 Apr-17 Lansbrook Village 3751 Pine Ridge Blvd East Lake 617 1998 / 2004 82,418,567.00 133,580 Apr-17 ON50 5005 Excellence Blvd Tampa 165 1994 / 2004 17,556,900.00 106,405 Apr-17 Carlyle at the Waters 8415 N Armenia Ave Tampa 392 1985 / 1999 32,225,000.00 82,207 Apr-17 Wisco Inc FL Apartment 2 of 2 properties 21,000,000.00 Portfolio 2017 Apr-17 Fernwood Grove 4900 N Macdill Ave Tampa 128 1977 / 1996 7,850,000.00 61,328 Apr-17 Flats at 4111 N Poplar Ave Tampa 164 1973 / 1992 13,150,000.00 80,183

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 2 SUPPLY AND DEMAND According to the Bureau of Labor Statistics, job growth in Tampa-St. Petersburg-Clearwater, FL Metro Area was 3.3% in July 2017, reflecting 43,000 jobs added during a 12-month period. The metro job growth figure was above the national number of 1.5%.

Axiometrics forecasts Tampa-St. Petersburg-Clearwater, FL Metro Area’s job growth to be 2.1% in 2018, with 27,983 jobs added. Job growth is expected to average 2.2% from 2019 to 2021, with an average of 30,603 jobs added each year.

On the supply side, permits for 5,995 multifamily units were issued in the 12 months ending in May 2017, down -337 units from the prior year’s sum. In terms of total residential housing, 18,169 units were permitted in the 12 months ending May 2017, an increase of 989 units from the prior year’s total.

Market Employment and Permitting Annual July-17 Annual Forecast 2014 2015 2016 Market National 2017F 2018F 2019F 2020F 2021F Employment (000s) 1,208.4 1,250.9 1,296.8 1,338.4 146,748.0 1,333.6 1,361.5 1,391.6 1,425.1 1,453.4 Job Gain (000s) 32.0 42.5 45.9 43.0 2,223.0 36.8 28.0 30.1 33.5 28.3 Job Growth (%) 2.7% 3.5% 3.7% 3.3% 1.5% 2.8% 2.1% 2.2% 2.4% 2.0% Total Residential Permitting 12,427 15,283 17,180 16,020 1,096,260 19,825 20,987 19,061 18,147 20,447 Relative Change 3.4% 23.0% 12.4% 8.2% 2.2% 15.4% 5.9% -9.2% -4.8% 12.7% Single Family Units Permitted 7,269 9,046 10,683 10,700 700,786 Relative Change -0.8% 24.4% 18.1% 25.9% 8.0% Multifamily Units Permitted 4,896 6,044 6,332 5,230 364,372 Relative Change 9.8% 23.4% 4.8% -14.5% -7.3% Multifamily as a % of Total 39.4% 39.5% 36.9% 32.6% 33.2% Demand/Supply Ratio Job Gain / Total Residential Units Permitted 2.7 3.4 3.0 2.9 2.1 2.1 1.4 1.4 1.8 1.6 Job Gain / Single Family Units Permitted 4.4 5.8 5.1 5.1 3.4 Job Gain / Multifamily Units Permitted 7.2 8.7 7.6 7.0 5.7

Multifamily Absorption and Supply Annual 2Q17 Annual Forecast 2014 2015 2016 Market National 2017F 2018F 2019F 2020F 2021F Total Units Absorbed 6,710 5,627 1,733 2,573 175,965 5,307 3,517 5,461 4,047 1,657 New Supply 4,012 3,987 4,704 5,115 363,579 5,416 4,746 4,026 3,204 3,869 Inventory Growth 1.3% 1.3% 1.5% 1.5% 1.4% 1.7% 1.5% 1.2% 1.0% 1.2%

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 3 IDENTIFIED SUPPLY As of July 16, 2017, Axiometrics has identified 5,060 apartment units scheduled for delivery in 2017, of which, 2,982 have been delivered. As a comparison, there were 3,231 apartment units delivered in 2016. Properties delivered to the market in the last 12 months have achieved an average asking rent of $1,635 per unit, or $1.66 per square foot. Effective rent has averaged $1,572, or $1.60 per square foot, resulting in an average concession value of $-62.26. As a comparison, existing properties in the market had an average asking rent of $1,137 per unit ($1.20 per square foot) and an average effective rent of $1,131 per unit, or $1.20 per square foot, in 2Q17. Concessions for existing properties averaged $-5.47.

Submarket Delivery Schedule Pipeline Delivery Schedule Pipeline Lease Up Trend Units Absorbed Asking Rent Effective Rent Top Submarkets 2015 2016 2017 Total Totals PPM Per Unit PSF Per Unit PSF Central Tampa 768 799 2,526 4,093 1,029 15 $1,966 $1.99 $1,861 $1.89 Clearwater 379 47 415 841 78 7 $1,396 $1.67 $1,354 $1.62 North St. Petersburg 278 253 531 340 17 $1,602 $1.53 $1,545 $1.48 South Hillsborough County 260 250 366 876 235 18 $1,429 $1.44 $1,393 $1.41 University North 144 418 562 283 17 $1,361 $1.31 $1,269 $1.22 Other 2,136 1,713 1,082 4,931 1,085 14 $1,539 $1.56 $1,500 $1.52 Tampa-St. Petersburg-Clearwater, FL 3,543 3,231 5,060 11,834 3,050 14 $1,661 $1.68 $1,593 $1.61 *Based on 2017 deliveries *Trend based on a trailing 12 month period

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 4 PIPELINE MAP GREATER TAMPA

28

38 33 35 34 55

12 86 61

62 69

57 52 4 53 51 27 54 5 26 50 84 10 14 75 Downtown 16 29 32 45 Tampa 36 87 78

13 65 81 82 7637 83 30 31 1 80 48 79 77 47 73 68 7 71 21 56 8 72 70 2 66 23 Key Lease-Up

Under Construction

Proposed SARASOTA 17

20

25 67 49 18 74 46 59 22 60 58 3 11 85 6 19 63 43 42 9 44 39 24 40

15

64

41

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 5 PIPELINE DETAIL # Name Status Owner Address Market Units Lease Up 1 Peridot Palms Lease Up Parkland Development Corporation 10601 Gandy Blvd N Brighton Bay 381 2 Burlington Place Apartments Lease Up Green Mills 3155 Burlington Ave N Central Plaza 53 3 The Fitzgerald Lease Up Crystals Corporation 1211 E Kennedy Blvd 300 4 Aida Palms Lease Up Green Mills 140 Aida Sr City of Lakeland 96 5 NoBay Village Lease Up Broadway Real Estate Services 270 E Bay St City of Lakeland 55 6 Aurora Lease Up The Richman Group 124 S Morgan St Downtown 351 7 Aer Lease Up American Land Ventures 330 3rd Ave Downtown St Petersburg 358 8 The Hermitage Apartment Lease Up The Allen Morris Company 151 7th St S Downtown St Petersburg 348 Homes 9 500 Lease Up Forge Capital Partners 500 Knights Run Ave Harbour Island 235 10 The Graham at Gracepoint Lease Up Campbell Landings Llc 2400 E Henry Ave Independence Square 90 11 Havana Square Lease Up Southern Roofing 400 N Rome Ave North 274 12 Integra Junction Lease Up Hines Interests Limited 15175 Integra Junction Outer Pasco County 322 Partnership 13 Alta at Magnolia Park Lease Up Wood Partners 9155 Canopy Oak Ln Outer Southeast Tampa 72 14 Ariva Luxury Apartments Lease Up Daniel Reiter 4100 Clubhouse Rd Outlying Polk County 312 15 Springs at Bee Ridge Lease Up Continental Properties Company, 5900 Wilkinson Rd Sarasota 360 Inc. 16 The Nolen Lease Up Forge Capital Partners 901-949 Cleveland St South Clearwater 250 17 Echo Lake at Lakewood Ranch Lease Up Zilber Property Group 11502 Echo Lake Cir Suburban Manatee County 360 18 The Point at Bella Grove Lease Up Waypoint Residential LLC 8310 Bella Grove Cir Whitfield 180 Units 4,397

Under Construction 19 Altis Grand Central Under Construction The Altman Companies 504 W Grand Central Ave Alice Kelly's 314 20 Stone River Resort Lifestyle Under Construction Resort Lifestyle Communities 7360 55th Ave E Bradenton 128 Community 21 Burlington Post Under Construction Green Mills 3201 Burlington Ave Central Plaza 86 22 The Channel Club Under Construction ECI Group 1115 E Twiggs St Channel District 323 23 Avanti Under Construction The NRP Group, LLC 201 4th Ave S Downtown St Petersburg 366 24 Icon Harbour Island Under Construction The Related Companies 301 Harbour Place Dr Harbour Island 340 25 Bainbridge Under Construction The Bainbridge Companies 1512 E 12th Ave Historic Ybor 240 26 2506 Countryside Blvd Under Construction MAS Companies 2506 Countryside Blvd North Clearwater 239 27 The Alexander at Countryside Under Construction Alexander Investments 3001 Countryside Blvd North Clearwater 330 International, Inc 28 Park at Wellington Under Construction Rieger, Matthew 4311 Jordana Way Northwest Holiday 110 29 Seazen Under Construction ZOM, Inc. 7616 W Courtney Campbell Outer Central Tampa 323 Cswy 30 Alta at Magnolia Park-Phase II Under Construction Wood Partners 9104 Canopy Oak Ln Outer Southeast Tampa 92 31 Azola Magnolia Park Under Construction Bainbridge Magnolia Park Land 9374 Progress Blvd Outer Southeast Tampa 366 Co., LLC 32 Ariva Luxury Apartments Phase Under Construction Highland City Gardens, LLC 4100 Clubhouse Rd Outlying Polk County 208 II 33 Champions Vue Apartments Under Construction Srvp Llc 7396 State Route 25 Outlying Polk County 326 34 Legacy Callawalk Under Construction Goldberg Companies, Inc. Osceola Polk Line Rd Outlying Polk County 318 35 Legacy Union Square Under Construction Goldberg Companies, Inc. 8300 Osceola Polk Line Outlying Polk County 318 Rd 36 The Avenue Apartments Phase Under Construction Village Partners 6720 S Florida Ave Outlying Polk County 222 II 37 The Broadway at 66th Under Construction Theodore F Bertuca 12700 66th St Pinellas Park 258 38 Abigail Court Under Construction The Vestcor Companies, Inc. 7850 Washington St Port Richey 90 39 1445 2nd St Under Construction Carter USA 1445 2nd St Sarasota 180 40 50 Paramount Under Construction Renovatio Realty Group 50 Paramount Dr Sarasota 284 41 Anson at Palmer Ranch Under Construction A.G. Spanos Companies 6201 Sawyer Loop Rd Sarasota 239 42 Arcos Under Construction Forge Capital Partners 1401 Fruitville Rd Sarasota 228

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 6 PIPELINE DETAIL, cont. # Name Status Owner Address Market Units 43 Elan Rosemary Under Construction The Prudential Insurance 710 N Lemon Ave Sarasota 286 Company of America 44 The Desota Under Construction Sarasota Second Street Owner Llc 1415 2nd St Sarasota 180 45 The Nolen-Phase II Under Construction Forge Capital Partners 949 Cleveland St South Clearwater 193 46 The Tempo at Encore Under Construction JMG Realty, Inc. 1102 Ray Charles Blvd South Nebraska 203 47 The Addison on Long Bayou Under Construction ContraVest 10260 Bayou Grande Ave South Seminole 247 48 M South Under Construction Pollack Shores Real Estate Group 5110 S Manhattan Ave Sun Bay South 297 49 The Pearl at The Heights Under Construction Capital 350 W Palm Ave 300 50 6387 Tampa Shores Blvd Under Construction Cortland Partners 6387 Tampa Shores Blvd Tampa Shores 350 51 Bellarmine Hall Under Construction Aspen Heights 12977 50th St Temple Terrace 116 52 The Lodge at Hidden River Under Construction Oxford Properties 14059 Riveredge Dr Temple Terrace 306 53 The Village Under Construction Capstone Companies 123 USF Holly Dr Temple Terrace 1140 54 The Retreat at Tampa- Off Site Under Construction University Of South Florida 11326 N 46th St 106 Leasing Office Research Fou 55 Main Street Landing Under Construction Onicx 5500 Main St Town of New Port Richey 80 56 930 Central Flats Under Construction The Bainbridge Companies 930 Central Ave University Park 218 57 Haven 46 Under Construction Haven Campus Communities- 14500 N 46th St University Square 158 tampa 58 AER in the Arts District Under Construction Crescent Communities, LLC 259 W Tyler St Uptown Tampa 344 59 Crescent Riverwalk Under Construction Crescent Communities, LLC 109 W Fortune Dr Uptown Tampa 394 60 Nine15 Under Construction H. J. Russell & Company 915 N Franklin St Uptown Tampa 362 61 Altis at Wiregrass Under Construction The Altman Companies State Road 56 Wesley Chapel 375 62 Oasis at Highwoods Preserve Under Construction Picerne Real Estate Group 18300 Highwoods 295 Preserve Pky Units 11,878

Proposed 63 Tampa Tribune Building Proposed The Related Companies 202 S Parker St Alice Kelly's 400 64 Proposed MF/Office Proposed Skyway Capital Partners 2907 W Bay to Bay Blvd /Palma 125 Ce 65 Lenox of Bloomingdale Proposed The Richman Group of Florida, Inc. 5910 Robert Tolle Dr Brandon 240 66 5th Ave Residences Proposed The Richman Group 555 Martin Luther King Campbell Park 132 Jr. St 67 MetWest Apartments Proposed MetLife, Inc. 4050 W Boy Scout Blvd Carver City-Lincoln Garde 254 68 Skyline Fifth - Phase II Proposed Frank Guerra 3151 3rd Ave N Central Plaza 123 69 Avalon Commons Lakeland Proposed Parkers Creek II, LLC 6410 Socrum Loop Rd City of Lakeland 108 70 211 3rd St S Proposed American Land Ventures 211 3rd St S Downtown St Petersburg 201 71 801 Central Ave Proposed 801 Central-st Pete Llc 801 Central Ave Downtown St Petersburg 354 72 Grand Bohemian Apartments Proposed Greenfield Partners LLC N 2nd St Downtown St Petersburg 306 73 First North Lofts Proposed DevMar Development, LLC 1636 2nd St N Historic Old Northeast 214 74 Gas Worx Proposed Phillips Development & Realty 1400 Channelside Dr Historic Ybor 1432 75 3015 N Dr Proposed BBC Rocky Point, LLC 3015 N Rocky Point Dr Outer Central Tampa 258 76 Palms of Pinellas Proposed Pinellas County Housing Authority 13101 S Belcher Rd Pinellas Park 92 77 Bermuda Bay Apartments Proposed Shamrock Realty Advisors S Blvd & W Port Tampa City 352 Pres 78 Vue at Belleair Proposed Flournoy Companies 2517 Belleair Rd South Clearwater 339 79 5145 S Dale Mabry Hwy Proposed Gries Investments Inc 5145 S Dale Mabry Hwy Sun Bay South 300 80 Waterside West Apartments Proposed IMDC Acquisitions 5320 S West Shore Blvd Sun Bay South 192 81 Westshore Ave Proposed BTI Partners Westshore Ave Sun Bay South 431 82 Westshore Ave Proposed BTI Partners Westshore Ave Sun Bay South 476 83 Westshore Marina District Proposed The Related Group of Florida 5000-5098 W Gandy St Sun Bay South 396 84 68 Units Proposed ABC Capital Corporation 6211 Memorial Hwy Town N County Park 68 85 200 E Madison St Proposed Urban Core Holdings LLC 200 E Madison St Uptown Tampa 120 86 State Road 56 Proposed Forest City Realty Trust, Inc. State Road 56 Wesley Chapel 249 87 Serenity at Lake Wales Proposed Equinox Companies Chalet Suzanne Rd Winter Haven/Lake Wales 335 Units 7,497

Total Units 23,772

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 7 OUR PROVEN TRACK RECORD Recent Closings

WHO WE ARE

One of the largest and most experienced teams of multifamily specialists in the industry

Venue at Lakewood Ranch Sarasota, FL MORE THAN Units: 237 50 Dedicated Multifamily VENUE AT LAKEWOOD RANCH | Sarasota, FL Professionals & Advisors CLIENT: Davis Development UNITS: 237

CHALLENGE: COVERING OVER STATES The challenge for this property was to sell prior to stabilization, and upon 65% occupancy in a market that no longer supports San Marin Apartments pre-sales. 20 Tampa, FL Expansive geographic footprint Units: 193 STRATEGY & RESULTS: To sell this community, which was still under construction, our team was able to leverage our years of experience MORE THAN in order to match the seller with a buyer whose tastes in property acquisition met those of the property.

33,500 The East Region Multifamily Advisor Group provided Units sold since 2011 Broker representation to both the buyer and seller. Additionally, We provided the clients with market research, property marketing, and assisted through all negotiations. Grandville on Saxon We were successful in achieving the highest price on Orange City, FL , even prior to stabilization. $2.3B Units: 316 record in the Sarasota market Group gross transaction value in since 2011

Grand Reserve at Park Isle Clearwater, FL Units: 390

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 8 WE CAN HELP As an investor in multifamily properties, you need a firm that provides experience, broad reach and the ability to market an asset no matter how challenging the economic environment. You need a team that specializes in your market you need The East Region Multifamily Advisory Group.

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

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

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 9 Will Mathews Craig Brown Payton Herschberger PRINCIPAL | EAST REGION ASSOCIATE | EAST REGION ASSOCIATE | EAST REGION INSTITUTIONAL CLIENT GROUP [email protected] [email protected] [email protected] DIR +1 404 978 2336 DIR +1 404 574 1061 DIR +1 404 877 9285

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