North Village OFFERING MEMORANDUM INVESTMENT OFFERING Exclusively Presented by APARTMENT REALTY ADVISORS

JULY 2009

Jed B. Millburn Principal DID: (801) 961-1372 [email protected]

Carter G. Owens Vice President DID: (801) 961-1376 [email protected]

Apartment Realty Advisors 178 South Rio Grande, Suite 220 Salt Lake City, Utah 84101 Phone: (801) 531-1221 Fax: (801) 531-1225

www.ARAusa.com

PROVIDING MULTIFAMILY INVESTMENT SERVICES THROUGHOUT THE UNITED STATES

North Village APARTMENT LAND OFFERING PROCEDURES North Village 3

Apartment Realty Advisors (ARA) of Utah is contacting a select group of prospective purchasers in order to identify their interest in the acquisition of North Village Apartment Land. The selection of the buyer will be influenced by the level of physical and economic due diligence initially undertaken by prospective purchasers. Title reports and other relevant documentation will be available for review. Prospective purchasers are asked to contact ARA to schedule a specific time to tour the property. THERE IS CURRENTLY NO DEADLINE FOR OFFERS. SELLER RESERVES THE RIGHT TO ACCEPT ANY OFFER AT ANY TIME.

Jed B. Millburn Principal Direct: (801) 961-1372 [email protected]

Carter G. Owens Vice President Direct: (801) 961-1376 [email protected]

Apartment Realty Advisors 178 South Rio Grande, Suite 220 Salt Lake City, UT 84101 Telephone: (801) 531-1221 Fax: (801) 531-1225 TABLE OF CONTENTS North Village 4

Executive Summary

Property Overview Property Summary 10 Possible Site Plan 11 Property Photographs 12 Proposed Features and Amenities 13 Location Information 14 Location Map 16

July 2009 Financial Information Terms of Sale 17

Market Overview Market Rent Survey 18 Recent Sales 20 Market Information 22

Appendix Conﬁ dentiality Statement & Disclaimer 28 EXECUTIVE SUMMARY North Village 5

Offering Terms Site Information

Offering Price: $3,540,000 Land Size 20.71 Acres Price per Unit: $12,000 Price per Acre: $166,586 Units 295

Density 14.24 Units / Acre Terms: All Cash County Salt Lake

Zoning R-3-16 Property Address Frontage 6700 West & 7725 South

NE CORNER OF 6700 WEST 7725 SOUTH WEST JORDAN, UT School District Jordan School District

Demographic Information

Source: 2009 Anysite Online 1 mile radius 3 mile radius 5 mile radius

2008 Population 4,072 57,321 171,515 2013 Population 4,912 63,659 182,011 2008 Avg. Household Income $89,949 $69,972 $70,686 2008 Avg. Household Size 3.8 3.8 3.7 Renter Occupied Percentage 0.4% 4.4% 9.7% Median Age 25.1 24.9 26.6 Total Daytime Employment 835 12,383 35,681 EXECUTIVE SUMMARY North Village 6

North Village is located 22 miles from downtown Salt Lake City and 16 miles from the Salt Lake International Airport. The property benefits from easy freeway access via Highway 111 located les than one half mile to the west providing direct access to the Central Business District in downtown Salt Lake City, shopping, and recreation. Major ski resorts are within 30 miles east of North Village.

West Jordan City is centrally located within the Salt Lake metropolitan area of approximately 1.4 million people. West Jordan has great access to regional transportation NORTH VILLAGE APARTMENT LAND systems, providing strategic strength to North Village. Major thoroughfares such as Bangerter Highway, Highway 111 and 7800 South provide excellent access to the property.

MOUNTAIN VIEW CORRIDOR

The new Mountain View Corridor (MVC) will provide an interchange at 7800 South, located less than one mile from North Village. The Mountain View Corridor is planned to be a six lane highway extending from I-80 south to Utah County. The Utah State Legislature allocated $500 million in the 2009 Legislative Session as part of a future bonding package leading to the start of construction in Spring 2010. Tremendous growth is projected along the MVC over the next 30 years, including a 167% increase in population, a 298% JORDAN LANDING increase in employment, and a 223% increase in households.

JORDAN LANDING

Developed by Foursquare Properties, Jordan Landing is a 500-acre master-planned community that is the centerpiece of retail development in West Jordan and is one of the largest shopping centers in Utah.

As the focal point for this master-planned community, Foursquare Properties developed Jordan Landing Shopping Center. With nearly 2,000,000 square feet of shopping and dining, including an array of apparel, restaurant, entertainment, electronic, discount, home furnishing, ﬁ tness, lifestyle, pet, hobby and home improvement. Speciﬁ c tenants include Super Wal-Mart, Sam’s Club, Target, Best Buy, Lowe’s, NORTH VILLAGE APARTMENT LAND Kohl’s, Sears Grand, Bed Bath & Beyond, Barnes & Noble and Cinemark 24 Theater. EXECUTIVE SUMMARY North Village 7

JORDAN VALLEY MEDICAL CENTER

Jordan Valley Medical Center, located at 3580 West 9000 South, has been serving the health care needs of the Southwest Valley for more than 20 years. This full service hospital offers a wide range of medical services and technologies. As the area has grown, Jordan Valley Medical Center has responded by expanding its services. In 1993, the Women’s Center opened. In January 2004, Phase I of the hospital’s expansion project began. This phase included an NORTH VILLAGE APARTMENT LAND eight-bed Intensive Care Unit, ten Medical Surgical Rooms and ten new LDRP (Labor, Delivery, Recovery, Postpartum) suites. Also included in this phase was the renovation of the current nursery, increased parking and additional dietary space. More expansion is planned for the near future. North Village is ideally situated to provide the medical center employees with high quality housing.

THE DISTRICT

The District is located less than nine miles from North Village. Situated on 120 acres with approximately 1,200,000 square feet of retail space, The District is anchored by Target, JC Penney and Larry H. Millers 20-Screen MegaPlex Theatres. THE DISTRICT Other retailers include the Buckle, Aeropostale, Sports Author- ity, American Eagle Outﬁ tters, Red Robin, Chick-Fil-A and Mac- Cools restaurants.

THE OLYMPIC OVAL

The Utah Olympic Oval is located approximately 4.5 miles northeast of North Village. The Oval was built with the purpose of hosting speed skating competitions during the 2002 Salt Lake Olympic Winter Games, but serves as a legacy to the State of Utah for all members of the community to enjoy. The Oval is part of a multi-purpose recreation complex that includes recreational gyms, weight facilities and swimming pools.

THE OLYMPIC OVAL EXECUTIVE SUMMARY North Village 8

MARKET HIGHLIGHTS

SALT LAKE COUNTY RENTAL MARKET (MID YEAR 2009) Rent Growth (Year Over Year) -0.7% Vacancy Rate 7.8% Avg. Monthly Rent $756/unit Avg. Rent Per Square Foot $0.90

UTAH STATE CAPITOL LABOR MARKET (JUNE 2009) Salt Lake County Job Growth -3.8% Utah State Job Growth -3.7% National Job Growth -4.2% Salt Lake County Unemployment 5.6% Utah State Unemployment 5.7% National Unemployment 9.5%

• The mid year 2009 multifamily vacancy rate in Salt Lake County rose from 6.8% at year-end 2008 to a rate of 7.8%.

• Properties of 100+ units in Salt Lake County reported average year-over-year rent growth of -1.2%.

• Utah economic performance continues to rank as one of the nation’s strongest, a position held throughout 2008.

• Utah’s average nonagricultural wage rose 2.8% during 2008.

• Utah has one of the lowest foreclosure rates in the country at 1.4% as of 3rd quarter 2008.

• In 2008, Utah’s population grew by 2.5%, nearly 3 times the national rate of 0.9%. Utah’s 2008 net in-migration was 16,648.

• Utah ranked as the youngest state in the nation with a 2007 median age of 28.5, compared to the national average of 36.6.

• The State’s population is projected to be 2.9 million in 2010, 3.6 million in 2020, 4.4 million in 2030, 5.2 million in 2040, 6.0 million in 2050, and reach 6.8 million in 2060. EXECUTIVE SUMMARY North Village 9 PROPERTY SUMMARY North Village 10

Land Size 20.71 Acres

Units 295 Units

Density 14.24 Units / Acre

County Salt Lake

Zoning R-3-16

Frontage 6700 West & 7725 South

School District Jordan School District

North Village

The site is 20.71 acres in West Jordan, Utah. The property is located at the northeast corner of 6700 West & 7725 South, North Village is located 22 miles from downtown Salt Lake City and 16 miles from the Salt Lake International Airport. The property benefits from easy freeway access via Highway 111 located less than one half mile to the west providing direct access to the Central Business District in downtown Salt Lake City, shopping, and recreation. Major ski resorts are within 30 miles east of North Village.

This project is located less than a mile from the future interchange of the Mountain View Corridor. The Mountain View Corridor is planned to be a six lane highway extending from I-80 south to Utah County. POSSIBLE SITE PLAN North Village 11 PROPERTY PHOTOGRAPHS

North Village 12 PROPOSED FEATURES & AMENITIES

North Village 13

• Swimming Pool

• Hot Tub/Spa

• Fitness Center

• Business Center

• Garages/Covered Parking

• Clubhouse/Rec Room

• Patio/Balconies

• Central Air

• Playground LOCATION INFORMATION North Village 14

North Village is located 22 miles from downtown Salt Lake City and 16 miles from the Salt Lake International Airport. The property benefits from easy freeway access via Highway 111 located less than one half mile to the west providing direct access to the Central Business District in downtown Salt Lake City, shopping, and recreation. Major ski resorts are within 30 miles east of North Village.

West Jordan City is centrally located within the Salt Lake metropolitan area of approximately 1.4 million people. West Jordan has great access to regional transportation systems, providing strategic strength to North Village. Major NORTH VILLAGE APARTMENT LAND thoroughfares such as Bangerter Highway, Highway 111 and 7800 South provide excellent access to the property.

MOUNTAIN VIEW CORRIDOR

The new Mountain View Corridor (MVC) will provide an interchange at 7800 South, located less than one mile from North Village. The Mountain View Corridor is planned to be a six lane highway extending from I-80 south to Utah County. The Utah State Legislature allocated $500 million in the 2009 Legislative Session as part of a future bonding package leading to the start of construction in Spring 2010. Tremendous growth is projected along the MVC over the next 30 years, including a 167% increase in population, a 298% increase in employment, and a 223% UTA TRAX increase in households.

JORDAN LANDING

As the focal point for this master-planned community, Foursquare Properties developed Jordan Landing Shopping Center. With nearly 2,000,000 square feet of shopping and dining, including an array of apparel, restaurant, entertainment, electronic, discount, home furnishing, ﬁ tness, lifestyle, pet, hobby and home improvement. Speciﬁ c tenants include Super Wal-Mart, Sam’s Club, Target, Best JORDAN LANDING Buy, Lowe’s, Kohl’s, Sears Grand, Bed Bath & Beyond, Barnes & Noble and Cinemark 24 Theater. LOCATION INFORMATION North Village 15

JORDAN VALLEY MEDICAL CENTER

Jordan Valley Medical Center, located at 3580 West 9000 South, has been serving the health care needs of the Southwest Valley for more than 20 years. This full service hospital offers a wide range of medical services and technologies. As the area has grown, Jordan Valley Medical Center has responded by expanding its services. In 1993, the Women’s Center opened. In January 2004, Phase I of the hospital’s expansion project began. This phase included an eight-bed Intensive Care Unit, ten Medical Surgical Rooms and ten new LDRP (Labor, Delivery, Recovery, Postpartum) NORTH VILLAGE APARTMENT LAND suites. Also included in this phase was the renovation of the current nursery, increased parking and additional dietary space. More expansion is planned for the near future. North Village is ideally situated to provide the medical center employees with high quality housing.

THE DISTRICT

The District is located less than nine miles from North Village. Situated on 120 acres with approximately 1,200,000 square feet of retail space, The District is anchored by Tar- get, JC Penney and Larry H. Millers 20-Screen MegaPlex Theatres. Other retailers include the Buckle, Aeropostale, Sports Authority, American Eagle Outﬁ tters, Red Robin, JORDAN VALLEY MEDICAL CENTER Chick-Fil-A and MacCools restaurants.

THE OLYMPIC OVAL

The Utah Olympic Oval is located approximately 3.5 miles northeast of North Village. The Oval was built with the purpose of hosting speed skating competitions during the 2002 Salt Lake Olympic Winter Games, but serves as a legacy to the State of Utah for all members of the community to enjoy. The Oval is part of a multi-purpose recreation complex that includes recreational gyms, weight facilities and swimming pools.

THE DISTRICT LOCATION MAP North Village 16

North Village TERMS OF SALE North Village 17

Offering Price: $3,540,000

Price Per Unit: $12,000 Price Per Acre: $166,586

Terms: All Cash

THERE IS CURRENTLY NO DEADLINE FOR OFFERS. SELLER RESERVES THE RIGHT TO ACCEPT ANY OFFER AT ANY TIME. MARKET RENT SURVEY North Village 18

N. Salt Lake DAVIS CO. WASATCH - CACH NATIONAL FOREST Great Salt Lake 89 SALT LAKE CO.

2300 North City

2200 North 15 Salt Lake City Surplus Salt Lake City 215

4000 West 4000 West International Airport

Brighton

North Temple 80 EMIGRATION CANYON Emigration Canyon 80 Salt Pond 400 South

Canal Canal

Jordan State St/ State 1300 South California Ave Rd. Redwood Foothill Dr. 80 1300 East 2100 South PARLEYS CANYON

Magna 2400 South 3200 West 3200 West 2700 West 2700 West S. Salt Lake N. 15 3300 South 9000 West 9000 West 8400 West 8400 West 7200 West 7200 West 8000 West 8000 West 3500 South Jordan Utah Millcreek Canyon Rd. and Canal 3900 South Salt 4100 South 215 MILL CREEK CANYON Lake 700 East 4500 South West Valley Canal 4700 South Holladay City Cottonwood Taylorsville Holladay 5400 South Kearns Murray Highland Dr. Wasatch Blvd Blvd

6200 South

Rd. Salt Lake City Mun. Airport 1 Jordan River Blvd. Canyon No. 2 7000 South Cottonwood 3 Big North Village 7000 South Cottonwood COTTONWOOD Midvale BIG 7600 South TWIN PEAKS 7800 South Jordan Landing Blvd. West 7800 South Hts Bengal Blvd. WILDERNESS AREA 2 Jordan Creek Rd.

Jordan

Bangerter Hwy 15 9000 South

4800 West 4800 West 9400 South LITTLE COTTONWOOD New Bingham Hwy. Granite Sate St. St. Sate Canal Little Cottonwood Canyon Rd. Bingham Hwy. 3200 West Copperton Old Queens Perry Dr.

10400 South Sandy 1300 East 10600 South

Dimple Dell Rd. LONE PEAK WILDERNESS Bingham Canyon Mine South AREA 700 East 1700 East 1000 East 4000 West 4000 West Jordan Rd. Redwood Wasatch Blvd. 11800 South Canal

1300 West 1300 West 12300 South

12600 South 6000 West 6000 West Riverton WASATCH- Herriman CACHE N.F. SALT LAKEUTAH CO. CO. 1300 East 300 East E. Jordan 900 East

13400 South Jordan 3600 West 3600 West 2700 West 13800 South

14400 South Draper

Bluffdale 14600 South Canyon Rd. 15

NORTH VILLAGE APARTMENT LAND NE CORNER OF 6700 W 7725 S WEST JORDAN, UT

1. LIBERTY LANDING 3. WOODGATE AT JORDAN LANDING 7028 S. CHERRY LEAF DRIVE 3851 W. COBBLE RIDGE DRIVE WEST JORDAN, UT WEST JORDAN, UT

2. SERENGETI SPRINGS 7898 S. SERENERA WAY (6710 W.) WEST JORDAN, UT MARKET RENT SURVEY North Village 19

Liberty Landing Serengeti Springs Woodgate @ Jordan Landing

7028 S. Cherry Leaf Drive 7898 S. Serenera Way (6710 W.) 3851 West Cobble Ridge Drive 216 Units 296 Units 288 Units Built In: 2009 Built In: 2008 Built In: 2002

Unit Mix Units Rent Sq Ft $ Sq. Ft. Unit Mix Units Rent Sq Ft $ Sq. Ft. Unit Mix Units Rent Sq Ft $ Sq. Ft. 1 Bd 1 Bth 84 $791 720 1.10 1 Bd 1 Bth 49 $759 705 1.08 1 Bd 1 Bth 32 $780 670 1.16 2 Bd 2 Bth 122 $1,055 1,024 1.03 1 Bd 1 Bth 50 $759 705 1.08 1 Bd 1 Bth 32 $790 670 1.18 3 Bd 2 Bth 10 $1,203 1,260 0.95 2 Bd 1 Bth 37 $859 950 0.90 1 Bd 1 Bth 32 $799 670 1.19 Totals 216 $207,098 197,988 2 Bd 1 Bth 37 $859 950 0.90 2 Bd 2 Bth 48 $950 850 1.12 Averages $959 917 $1.05 2 Bd 2 Bth 37 $899 1,000 0.90 2 Bd 2 Bth 48 $960 850 1.13 2 Bd 2 Bth 37 $899 1,000 0.90 2 Bd 2 Bth 48 $970 850 1.14 3 Bd 2 Bth 12 $999 1,270 0.79 3 Bd 2 Bth 16 $1,120 1,050 1.07 3 Bd 2 Bth 13 $999 1,270 0.79 3 Bd 2 Bth 16 $1,173 1,050 1.12 3 Bd 2 Bth 12 $1,149 1,370 0.84 3 Bd 2 Bth 16 $1,225 1,050 1.17 3 Bd 2 Bth 12 $1,159 1,390 0.83 Totals 288 $270,328 237,120 Totals 296 $257,904 278,965 Averages $939 823 $1.14 Averages $871 942 $0.92

AMENITIES: AMENITIES: AMENITIES: Business Center Playground Basketball Court Garages Basketball Court Patio/Balconies Clubhouse/Rec Room Spa/Hot Tub BBQ/Picnic Area Spa/Hot Tub Clubhouse/Rec Room Playground Fitness Center Swimming Pool Central Air Storage Covered Parking Spa/Hot Tub Garages 9-Foot Ceilings Clubhouse/Rec Room Swimming Pool Fitness Center Storage Underground Parking Washer/Dryers Fitness Center Volleyball Court Garages Swimming Pool Patio/Balconies Gas Fireplaces Vaulted Ceilings Full Washer/Dryer Hookups Full Washer/Dryer Hookups

UTILITIES: UTILITIES: UTILITIES: Individually metered electricity Individually metered gas & electricity; tenant pays Individually metered gas & electricity; tenant pays sewer, water, trash sewer, water, trash

PREMIUMS: PREMIUMS: PREMIUMS: $25 Application Fee $10 Additional Applications; $25 Application Fee; $13-$27 sewer, water, trash $25 Application Per Adult, $40 Couple; $65 Garage $100 Garages; $25-$35 sewer, water, trash

CONCESSIONS: CONCESSIONS: CONCESSIONS: 1 month free No application fee 1 month free with a 2 bed unit RECENT SALES North Village 20

PROPERTY ADDRESS ACRES UNITS PRICE $/UNIT $/ACRE SALE S. North Village NE corner of 6700 West 7725 South 20.71 295 $3,540,000 $12,000 $166,586 Pending 1. Clay Hollow 7880 South 5600 West 10.69 280 $5,235,000 $18,696 $489,710 6/09 2. San Marino 774 West 10000 South 15.97 330 $7,050,000 $21,364 $441,453 1/08 3. Farm Gate 5663 West 11800 South 24.78 496 $9,157,500 $18,463 $369,552 12/08 4. Timber Gate 5537 West 11800 South 14.33 288 $4,896,000 $17,000 $341,661 12/08

CO. N. Salt Lake DAVIS WASATCH - CACH NATIONAL FOREST Great Salt Lake 89 SALT LAKE CO.

2300 North City

2200 North 15 Salt Lake City Surplus Salt Lake City 215

4000 West 4000 West International Airport

Brighton

North Temple 80 EMIGRATION CANYON Emigration Canyon 80 Salt Pond 400 South

Canal Canal

Jordan State St/ State 1300 South California Ave Rd. Redwood Foothill Dr. 80 1300 East 2100 South PARLEYS CANYON

agna 2400 South 3200 West 3200 West 2700 West 2700 West S. Salt Lake N. 15 3300 South 9000 West 9000 West 8400 West 8400 West 7200 West 7200 West 8000 West 8000 West 3500 South Jordan Utah Millcreek Canyon Rd. and Canal 3900 South Salt 4100 South 215 MILL CREEK CANYON Lake 700 East 4500 South West Valley Canal 4700 South Holladay City Cottonwood Taylorsville Holladay 5400 South Kearns Murray Highland Dr. Wasatch Blvd Blvd

6200 South

Salt Lake City Mun. Airport Canyon Jordan River Blvd. Union ParkFort Union Blvd No. 2 7000 South Cottonwood Big 7000 South Cottonwood COTTONWOOD Midvale BIG North Village 7600 South TWIN PEAKS 7800 South Jordan Landing Blvd. West 7800 South Hts Bengal Blvd. WILDERNESS AREA 1 Jordan Creek Rd. Jordan

Bangerter Hwy 15 9000 South

4800 West 4800 West 9400 South LITTLE COTTONWOOD New Bingham Hwy. Granite Sate St. St. Sate Canal Little Cottonwood Canyon Rd.

3200 West 3200 West 2 Bingham Hwy. opperton Old Queens Perry Dr.

10400 South Sandy 1300 East 10600 South

Dimple Dell Rd. LONE PEAK WILDERNESS ngham Canyon Mine South AREA 700 East 1700 East 1000 East 4000 West 4000 West Jordan Rd. Redwood Wasatch Blvd. 11800 South 3 4 Canal

1300 West 1300 West 12300 South

12600 South 6000 West 6000 West Riverton WASATCH- Herriman CACHE N.F. SALT LAKEUTAH CO. CO. 1300 East 300 East E. Jordan 900 East

13400 South Jordan 3600 West 3600 West 2700 West 13800 South

14400 South Draper

yon Rd. Bluffdale 14600 South 15 RECENT SALES North Village 21

Clay Hollow Apartment Land Farm Gate Apartment Land

7880 South 5600 West 5663 West 11800 South West Jordan, UT Herriman, UT Sale Price: $5,235,000 Sale Price: $9,157,500

Date: June 2009 Date: December 2008 Units: 280 Units: 496 $/Unit: $18,696 $/Unit: $18,463 $/Acre: $489,710 $/Acre: $369,552

San Marino Apartment Land Timber Gate Apartment Land

774 West 10000 South 5537 West 11800 South South Jordan, UT Herriman, UT Sale Price: $7,050,000 Sale Price: $4,896,000

Date: January 2008 Date: December 2008 Units: 330 Units: 288 $/Unit: $21,364 $/Unit: $17,000 $/Acre: $441,453 $/Acre: $341,661 MARKET INFORMATION

North Village 22

OVERVIEW Utah is known for its wealth of recreational opportunities, youthful and educated work force, prestigious universities, and healthy and affordable lifestyle. Additionally, Utah offers businesses low operating costs; a pro-business regulatory environment; low business taxes, with the lowest worker’s compensation costs in the nation; and a solid utility, communications, education and transportation infrastructure.

UTAH STATE CAPITOL Utah State’s job growth is signiﬁ cantly outpacing the national average, especially in the high wage paying technology sector.

Salt Lake County alone accounts for 40 percent of the state’s population and approximately half of Utah’s total employment base. Salt Lake County is part of the Wasatch Front, which is comprised of four counties in northern Utah: Salt Lake, Utah, Weber and Davis Counties. The heart of the Wasatch Front is Salt Lake City, and more speciﬁ cally, the city’s Central Business District (CBD), which is the ﬁ nancial, governmental and cultural center of Utah. The Salt Lake metropolitan area is a highly desirable place to live due to its moderate climate, recreation amenities, environmental quality and stable economy.

Salt Lake County’s economic expansion is expected to continue through 2008, with strong growth in education, health care, retail trade, and in professional, scientiﬁ c, and technical services.

POPULATION Salt Lake County is the most populous county in the state, with 1,018,904. The state’s average annual population growth rate was 2.7% from 1990-2000, more than double the national average of 0.9%. Salt Lake County’s growth rate from April 1, 2000 to July 1, 2007 was 12.9%. For the decade of the 1990s the state’s population grew by 29.6%, which was the fourth fastest growth rate in the nation. MARKET INFORMATION

North Village 23

The four most populated counties in the state of Utah are Salt Lake, Utah, Davis and Weber. These counties make up the Wasatch Front Region. 2,037,161 people, or 75.5% of the state’s population of 2,699,554, live and work in the region. Salt Lake County represents approximately 50% of the total Wasatch Front Region population. Fueled primarily by a high birth rate, Utah’s population is expected to reach approximately 2.7 million by 2010, surpass 3.0 million by 2020 and tally 3.7 million by 2030. This rate of growth should be sustained by a strong and diversiﬁ ed economy. If Salt Lake County only grows at the Utah State population growth rate of 1.9%, it would reach 1,330,000 by the year 2020.

Fueled primarily by a high birth rate, Utah’s population is expected to reach approximately 2.7 million by 2010, surpass 3.0 million by 2020 and tally 3.7 million by 2030. This rate of growth should be sustained by a strong and diversiﬁ ed economy. If Salt Lake County only grows at the Utah State population growth rate of 1.9%, it would reach 1,330,000 by the year 2020.

EMPLOYMENT

The Wasatch Front is strategically located within the western states. It is equidistant from most major western and southwestern markets. Over the past two decades Salt Lake County has become a regional hub and prime center for the manufacturing, distribution and transportation of goods.

Salt Lake County average payroll jobs increased throughout 2007 at a very healthy pace of 3.7%. In November 2007, estimated nonfarm employment was 617,672 or 22,663 more jobs than November 2006. Salt Lake County’s economic expansion is expected to continue through 2008, with strong employment growth in education, health care, retail trade, and in professional, scientiﬁ c, and technical services.

Solid employment gains are expected to continue in 2008. The Utah economy added roughly 48,900 net new jobs in 2007, a growth rate of 4.0%. MARKET INFORMATION

North Village 24

As shown below, Salt Lake County job growth has historically been above the national levels:

JOB GROWTH BY COUNTY

Year Salt Lake Davis Utah Weber National 1999 2.4% 2.6% 3.7% 2.2% 2.2% 2000 2.6% 3.2% 4.1% 0.1% 2.0% 2001 0.9% 3.4% 1.4% -1.6% 0.5% 2002 -1.4% 2.9% 1.3% 0.5% -0.2% 2003 -0.5% 1.2% 0.2% 2.2% -0.5% 2004 1.9% 4.1% 4.7% 1.6% 1.7% 2005 3.4% 5.0% 4.5% 3.1% 1.5% 2006 4.4% 4.2% 4.9% 2.5% 1.4% 2007 3.8% 2.2% 4.0% 2.6% 0.9% 2008 -2.5% -2.6% -3.2% -1.8% -2.0% 2009 (June) -3.8% -3.1% -4.9% -4.8% -4.2%

Source: Utah Department of Workforce Services

Salt Lake County’s current unemployment rate of 5.6% is well below the national average of 9.5% (June 2009). The following table illustrates the health of the Salt Lake County job market:

WASATCH FRONT UNEMPLOYMENT RATES

Year Salt Lake Davis Utah Weber State National 1999 3.4% 3.5% 3.2% 4.5% 3.7% 4.2% 2000 3.0% 2.9% 2.6% 4.1% 3.2% 4.0% 2001 4.3% 3.8% 3.8% 5.0% 4.4% 4.8% 2002 5.4% 4.4% 4.7% 6.3% 5.6% 6.0% 2003 4.8% 4.4% 3.9% 4.9% 4.7% 5.7% 2004 4.4% 4.0% 3.6% 5.3% 4.4% 5.4% 2005 3.9% 3.7% 3.6% 4.2% 3.8% 4.9% 2006 2.7% 2.6% 2.5% 3.0% 2.6% 4.5% 2007 3.0% 3.2% 2.9% 3.6% 3.2% 5.0% 2008 4.1% 4.1% 3.9% 5.2% 5.1% 7.2% 2009 (June) 5.6% 5.1% 5.2% 6.8% 5.7% 9.5%

Source: Utah Department of Workforce Services MARKET INFORMATION

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MAJOR EMPLOYERS

Utah’s list of top ten major employers changes little from year to year. Intermountain Health Care, a large health care organization with numerous hospitals and clinics, and Hill Air Force Base are the two largest employers. Both have employment levels over 20,000. Of the six largest employers in Utah, three are from the public sector and three are from the private sector. Utah’s educational institutions are some of the largest employers in the state. The University of Utah, Brigham Young University, Utah State University, Alpine School District, Granite School District, Davis School District and Jordan School District all place in the top 25.

UTAH’S MAJOR EMPLOYERS

Employer Location Emp. Range Intermountain Health Care (IHC) Central Offi ce - SL County 25,000+ Hill Air Force Base Davis County 20,000+ State of Utah Capitol Building - SL County 15,000+ University of Utah Central Offi ce - SL County 10,000+ Huntsman Corporation, LLC Salt Lake County 10,000+ Teleperformance USA Salt Lake County 10,000 Zions Bancorporation Salt Lake County 9,000-9,999 Skywest Airlines Washington County 9,000-9,999 Convergys Corporation Salt Lake County 7,000-7,999 Granite School District Salt Lake County 7,000-7,999 Alpine School District Utah County 5,000-6,999 Utah Dept. of Human Services Salt Lake County 5,000-6,999 Brigham Young University Utah County 5,000-6,999 Jordan School District Salt Lake County 4,000-4,999 Davis County School District Davis County 4,000-4,999 Associated Food Stores, Inc. Salt Lake County 4,000-4,999 IRS, Ogden Center Weber County 4,000-4,999 University Hospitals & Clinics Salt Lake County 4,000-4,999 Wal-Mart District Offi ce Salt Lake County 4,000-4,999 ATK Thiokol Box Elder County 4,000-4,999 Salt Lake County Salt Lake County 4,000-4,999 United States Postal Service Weber County 3,000-4,999 Wells Fargo Bank N.A. Salt Lake County 3,000-3,999 ICON Health & Fitness Cache County 3,000-3,999 L3 Communications Systems West Salt Lake County 3,000-3,999

HOUSING

Multifamily construction for Salt Lake County in 2009 was moderate, with 1,590 building permits issued through May (includes condominiums). To date, this modest construction activity has helped keep market supply in balance. MARKET INFORMATION

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The Utah State population in the traditional renting years (age 20-29) is expected to increase by more than 1.5 million by 2010. And the fastest growing types of households over the next 10 years are those most likely to rent—childless couples, people who live alone, and unrelated households.

TRANSPORTATION OVERVIEW

Utah’s strategic location, equidistant from all major Western markets, offers unique transportation advantages. Three railroads, an extensive interstate highway system, and an international airport provide the state with an efﬁ cient transportation system. The I-15 corridor through Salt Lake County was recently overhauled to provide better transportation through the region.

The Utah Transit Authority (UTA) offers convenient transportation along the Wasatch Front, with an average daily boarding of approximately 101,000 riders.

UTA Proposed Expansion:

• Commuter Rail - “FrontRunner” commuter rail will first be constructed from Weber County to Salt Lake - and eventually to Utah County.

• Bus Rapid Transit - BRT offers transit users speed and dependability similar to light rail but without its infrastructure costs. In a BRT service, buses travel in a set corridor. Signal prioritization lets the BRT bus move through streets more quickly. Passengers board a BRT service at stop areas spaced like light rail stations - nearly every mile in suburban areas and every quarter mile in a central business district.

• TRAX Expansion - Mid-Jordan Light Rail Transit (LRT Project, which will run through the communities of Murray, Midvale, West Jordan and South Jordan.

• TRAX Expansion - West Valley City Light Rail Project, which will extend from the existing 2100 South Station in South Salt Lake on the Sandy/Salt Lake TRAX Line to the future West Valley City Intermodal Center, which will be located near the community’s city hall. MARKET INFORMATION

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Transportation highlights are listed below: • One-half of the nation’s population is within a 2.5 hour ﬂ ight of Salt Lake City. • Salt Lake International Airport served over 22 million passengers in 2007, the highest level in its history. The airport also ranked 22th busiest in the United States, and 54th busiest in the world. • Intrastate and interstate motor freight services are provided by more than 2,300 registered carriers. • The Utah Transit Authority (UTA) was awarded “2002 Transit System of the Year” by the American Public Transit Association. • The Salt Lake region is an important regional trade and shipping center to the Rocky Mountain region and the west coast. • Union paciﬁ c is the major rail provider in the state.

TRAVEL & TOURISM Utah is home to fourteen ski resorts, ﬁ ve national parks, year-round recreation, arts, culture, and nightlife. Utah arts enthusiasts enjoy a unique mix of performing arts groups including the Tony Award winning, Utah Shakespearean Festival, the Utah Symphony, Ballet West, the Utah Opera Company and the Mormon Tabernacle Choir. In addition, Utah has a variety of sports teams including: NBA’s Utah Jazz, Utah Grizzlies (IHL), Real Salt Lake (Major League Soccer), Salt Lake Bees, Ogden Raptors & Provo Angels (Minor League Baseball). Major draws to downtown Salt Lake City include the Salt Palace Convention Center, Temple Square, Genealogy Library, and Energy Solutions Arena. Temple Square and the Salt Palace Convention Center together draw a reported ﬁ ve million visitors a year to the area and estimates suggest that over 17.8 million tourists visit the Salt Lake Region every year.

SUMMARY Davis County has demonstrated its economic vitality and consistency over a sustained period of many years. As the central point between Ogden and Salt Lake City metro areas, it serves the state well in providing a diverse base of employment, housing, entertainment and cultural opportunities. The growth and stability of the Davis County economy are projected to UTAH STATE CAPITAL continue and should result in a healthy business climate for years to come. CONFIDENTIALITY STATEMENT

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Apartment Realty Advisors of Utah, LTD, a licensed Utah Broker, (collectively, the “Agent”) has pre- pared this material for limited use in the acquisition of a certain property, speciﬁ cally, North Village Apartment Land, Salt Lake City, Utah.

The Offering Memorandum is not intended to provide a completely accurate summary of the Prop- erty or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective purchasers may need or desire. All ﬁ nancial projections are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and the Agent, and therefore may be subject to variation. The Offering Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the Offering Memorandum. Ad- ditional information and an opportunity to inspect the Property will be made available to interested and qualiﬁ ed prospective purchasers.

Neither the Owner nor the Agent nor any of their respective offi cers, agents or principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or com- pleteness of the Offering Memorandum or any of the Contents (defi ned below), and no legal commitment or obligation shall arise by reason of the Offering Memorandum or the Contents. Analysis and verifi cation of the information contained in the Offering Memorandum is solely the responsibil- ity of the prospective purchaser.

The Owner and Agent expressly reserve the right, at their sole discretion, to reject any or all ex- pressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until such offer for the Property is approved by the Owner, and any conditions to the Owner obligations thereunder have been satisﬁ ed or waived.

This Offering Memorandum and the Contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein are called the “Contents”), are of a conﬁ dential nature and are not to be made available to persons not receiving copies directly from the Agent. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest conﬁ dence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the Contents to any other entity (except for outside advisors retained by you if necessary, in your opinion, for your determination of whether or not to make a proposal) without the prior written authorization of the Owner or Agent, and that you will not use the Offering Memorandum or any of the Contents in any fashion or manner detri- mental to the interest of the Owner or Agent.

If you have no interest in acquiring the Property at this time, kindly return the Offering Memoran- dum forthwith.