apartment market study A Definitive Study of Seattle’s Apartment Market Dynamics & Development Pipeline

Dylan Simon Dave Schumacher Jerrid Anderson Author Sr. Vice President Associate colliers international “To achieve superior investment results, your insight into value has to be superior. Thus you must learn things others don’t, see things differently or do a better job of analyzing them – ideally all three.”

—Howard Marks Oaktree Capital Management 2015 Seattle Apartment Market Study

n the last several years, Seattle’s economic growth TOPICS COVERED and dynamism as a destination city for the nation’s We have taken a comprehensive and granular look at Itop employers and employees alike has garnered it each market and each urban neighborhood. In this significant attention—especially from the commercial study you will find the following topics covered: real estate community. As measured from nearly every traditional metric of apartment investment—rent • 2014 Year-in-Review appreciation, vacancy, development and job growth— • Submarket Dynamics Seattle is deserving of recent attention gained. o Historical Sales Trends o snapshot of Rent & Vacancy Trends The purpose of this study is to assist and guide o 2000—2014 Job Growth Trends apartment developers, investors and owners in o 2014 Sales Transaction Summary & List gaining deeper insight into the fundamentals driving o 2015—Future Development Pipeline the market’s ascension. In order to facilitate this goal, we have prepared this study with a broad scope, both This study would not be possible without an amazing geographically and topical. amount of hard work from our team and data providers, all listed by topic on page 88. We would like to extend GEOGRAPHIES COVERED special thanks to Dupre + Scott and encourage all readers to subscribe as a direct source of data and As far as geographies covered, this study is broken analytics—far beyond the snapshot we provide here. down into a study of King County and Snohomish Subscribe here: County. Within each county we have dissected the regions into urban markets and geographic WWW.DUPRESCOTT.COM submarkets: north, east and south. Vertical tabs on We invite you to use this study as a tool and to call us each page are provided as a guide to provide quick directly to discuss your apartment investment goals navigation to each market. and how using our advisory services will help you outperform the market.

Colliers International Seattle 1 2015 Seattle Apartment Market Study

north snohomish

south snohomish

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Table of Contents

2014 Year in Review 5 North King 49 North Snohomish 73 2014 Metrics & Fundamentals Bothell Central Everett > Sales Shoreline Paine Field > Rent Growth North Seattle Silver Lake > Vacancy 2015 Development Pipeline 81 2000-2014 Job Growth 57 South Snohomish East King Edmonds East Bellevue Lynnwood Factoria 15 Mill Creek Urban King Issaquah Downtown Mountlake Terrace Juanita South Downtown/Pioneer Square Thrashers Corner Redmond Capitol Hill Woodinville First Hill/Yesler Terrace Belltown Sources 88 Queen Anne 65 South Lake Union South King Auburn Central Area/Beacon Hill/Rainier Valley Burien Greenlake/Wallingford/Fremont Des Moines University District Federal Way West Seattle Kent Ballard Renton West Bellevue Riverton/Tukwila Kirkland SeaTac White Center

Colliers International Seattle 3 2015 Seattle Apartment Market Study

Dylan Simon Dave Schumacher Jerrid Anderson Multifamily Investment Sales Senior Vice President Associate O 206 624 7413 O 206 382 8555 O 206 382 8555 M 206 414 8575 M 425 985 8528 M 206 499 8191 [email protected] [email protected] [email protected] www.dylansimon.com

Dylan’s market expertise is in the sale of apartment Dave Schumacher joined Colliers in November 2010. Jerrid is a broker with Colliers International and has over buildings and development land in Seattle and the Puget Formerly with Columbia Partners, a multifamily brokerage nine years of experience in real estate investment and Sound region. Although Dylan has a keen understanding firm Dave founded in 1991, they bring unmatched experience sales. His first job was working for his family’s business of urban dynamics, his greatest strength is in the study of and multifamily expertise. helping buy, renovate, sell, develop and manage various real estate investments. After graduating with a Bachelor key components of market and economic analysis, thereby Degree in Business, Jerrid attained his real estate license leading his clients to the greatest degree of value creation in In his 38 years brokering apartment sales, Dave has worked and began selling residential real estate. It wasn’t long any geographic market. on deals from Juneau, Alaska, down to Portland, Oregon. until he was recruited to commercial real estate brokerage The majority of his work has been in the Puget Sound with Colliers International. Whether focused on the sale of an existing apartment building area—particularly King and Snohomish Counties. Dave’s or pursuit of a development opportunity, Dylan’s clients gain clients include REITs and large institutional players, local Jerrid’s current focus on apartment sales is a perfect fit market-leading value through his multidisciplinary approach and national syndicators and wealthy individuals. for his background. His combination of skills in acquisition to the brokerage business and best-in-class marketing, rehab, financial analysis, and sales help him analyze sales and negotiation techniques. > 38 years of multifamily sales experience assets at a granular level and provide the greatest value to his clients. > Over $2 billion in multifamily transactions Academic: > Widely recognized as one of Seattle’s top apartment Academic: UCLA School of Law, Juris Doctorate > brokers Jerrid received his Bachelor of Business degree, in > UCLA Anderson School of Management, Joint Studies > Strong client relationships with the leading pension fund Entrepreneurship from Washington State University in > University of Washington, Certificate in Commercial Real advisors, REITs, and large syndicators as well as high net Pullman, Wa. Estate worth individuals and families > California State University, BS, Mechanical Engineering > Rookie of the Year in his first year Civic Activities: > Remained the top apartment broker in the Seattle office > Community For Youth Mentor Organizations & Affiliations for most of his first 14 year tenure with CBRE > Member, NAIOP Washington Chapter > National Multifamily Housing Council, Member > 1990 Top CBRE investment broker in the country Personal Interests: > Urban Land Institute, Northwest Chapter Member > Basketball and football > NAIOP, Chapter & Program Committee Member > Traveling and culture > Washington & California Designated Broker > Mountain biking > Washington & California, Member of the Bar

Personal Interests: > Hiking in the Great Northwest > Skiing in and out of bounds > Traveling, food & libation

4 Colliers International Seattle 2014 y e ar 2014 y e ar i n R E VI W i n R E VI W

2015 Seattle Apartment Market Study

2014 year in review

Colliers International Seattle 5

2015 Seattle Apartment Market Study i n R E VI W 2014 y e ar

In 2014, the Seattle apartment investment market experienced yet As the following numbers illustrate, investment in the Seattle another record setting year by nearly every measure. The story of apartment market is at an all-time high and apartment 2014 was that of continued economic vibrancy in the region and new fundamentals—by all measures—continue to show strength as apartment development to meet job demand. we enter 2015. The combination of new employers and new jobs added to the market plus the addition of newly-developed, high-end Class A “Nearly every measure was up in apartments spurred both rent appreciation and low vacancy— 2014—over 8.5% y-o-y rent growth, sustaining the continuation of an expansion cycle. more than 8,000 units delivered and As a function of both cyclical expansion and national attention on the Seattle apartment investment market, a slew of new job growth at nearly 50,000 jobs for investors and developers poured into our market, driving both the third consecutive year.” sales prices and new development.

2009 2010 2011 2012 2013 2014

Number of Sales 10 29 38 71 52 80

Total Sales Volume $192M $545.6M $1.0B $2.1B $1.7B $2.6B

Average PPU $122,328 $130,171 $139,630 $167,123 $206,672 $193,804

Average PPSF $141 $150 $169 $188 $233 $238

Average Cap Rate 6.8% 5.9% 5.7% 5.5% 5.3% 5.3%

Total Deliveries 4,736 3,686 1,318 4,426 5,986 8,128

Sales Data: 50+ units

Seattle by the numbers... Number one Second best city for millenials Third best city for fourth highest city for Fifth best city place to make a living (NerdWallet, May 2014) commercial real estate commercial real estate for home sellers (MoneyRate.com, June 2014) development (Urban Land investment (Zillow, March 2014) Institute and PwC, October (Urban Land Institute 2014) and PwC, October 2014)

16 Colliers International Seattle 2 3 4 5 2014 y e ar i n R E VI W

2015 Seattle Apartment Market Study

2014 market metrics & Fundamentals Urban King North King East King South King North Snohomish South Snohomish 29 6 9 23 6 7 sales sales sales sales sales sales $1.1B $129.6M $422.2M $592.8M $191.3M $234.2M sales volume sales volume sales volume sales volume sales volume sales volume $305,925 $180,081 $253,812 $125,085 $136,761 $161,160 average PPU average PPU average PPU average PPU average PPU average PPU 2014 Sales $428 $236 $275 $144 $148 $198 average PPSF average PPSF average PPSF average PPSF average PPSF average PPSF

4.5% 5.2% 4.9% 5.8% 5.9% 5.4% Average Cap Rate Average Cap Rate Average Cap Rate Average Cap Rate Average Cap Rate Average Cap Rate

8.2% 7.9% 8.4% 6.6% 7.3% 9.0% annual rent growth annual rent growth annual rent growth annual rent growth annual rent growth annual rent growth

4.1% 2.8% 3.8% 3.5% 5.1% 4.1%

Fundamentals vacancy vacancy vacancy vacancy vacancy vacancy

5,781 797 415 335 0 800 units delivered units delivered units delivered units delivered 2014 units delivered units delivered

0.0% 4.7% 9.5% 5.2% 1.5% 0.6% of north snohomish of south snohomish Development of urban king inventory of north king inventory of east king inventory of south king inventory inventory inventory Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com

sixth most walkable Number seven best U.S. Number eight best city for Ninth best place for Tenth best city in the U.S. city to find a job jobs this fall business international skyline (Foot Traffic Ahead: (WalletHub, March 2014) (Forbes, September 2014) (Forbes, July 2014) (USA Today, Ranking Walkable September 2014) Urbanism in America’s Largest Metros, June 2014)

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2015 Seattle Apartment Market Study i n R E VI W 2014 y e ar 2014 Rent Growth north snohomish 7.3% 16.0% 17.9% 5.3% 12 month growth 3 year growth 5 year growth 3 year average CUMULATIVE GROWTH north king south snohomish 7.9% 12 month growth 9.0% 21.5% 26.6% 7.2% 12 month growth 3 year growth 5 year growth 3 year average 19.5% CUMULATIVE GROWTH 3 year growth CUMULATIVE GROWTH CUMULATIVE 22.3% GROWTH C U M LATIVE 5 year growth east king 6.5% 3 year average 8.4% 12 month growth 23.5% 7.8% 3 year growth 3 year average 29.8% 5 year growth urban king GROWTH C U M LATIVE 8.2% 12 month growth 23.6% South king 3 year growth 6.6% 12 month growth

GROWTH C U M LATIVE 34.7% 5 year growth 14.4% 4.8% 7.9% 3 year growth 3 year average 3 year average 16.3% 5 year growth GROWTH C U M LATIVE

Rent & Vacancy Data Provided by Dupre + Scott 8 Colliers International Seattle For more comprehensive data, visit: www.duprescott.com 2014 y e ar i n R E VI W

2015 Seattle Apartment Market Study

2014 Vacancy

King County snohomish County

Urban North east south north south

7.00%

1.7% 6.00%

.85% 1.76% (.03%) .35% 1.34% 5.00% (.94%) 1.38% (.10%) (1.46%) (.24%) .19% .03% .03% 1.16% 1.44% .03% .03% .72% (1.59%) (.10%)(.55%) .27% 4.00% .72% (.97%) (1.82%) (.79%) .49% .58% (1.09%)

1.42% (.93%) (.10%) 3.00% (1.96%) (.06%) (.77%) (1.54%) (1.8%) (.74%)

2.00%

(1.1%) 1.00%

0.00%

East Bellevue South Lake Union

ANNUAL CHANGE IN VACANCY fall 2013-2014 Decreased increased Percent change in year-over-year vacancy Increase in year-over-year vacancy Decrease in year-over-year vacancy

Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com

Colliers International Seattle 9 URBAN KING COUNTY Developments URBAN KING COUNTY Developments

King Urban County 2015 2016 2017 2018 Future Total % of MarketKing Urban County 2015 2016 2017 2018 Future Total % of Market Ballard 536 391 136 0 490 1553 3%Ballard 536 391 136 0 490 1553 3% Belltown 297 140 1469 0 999 2905 6%Belltown 297 140 1469 46,8930 999units planned2905 in King Urban6% 46,893 units planned in King Urban Capitol Hill 1326 682 738 20 576 7% 3425 North King Capitol Hill 1326 682 738 20 576 3342 7% 3425 North King 3342 Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 7573 East King Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 7573 East King Downtown 815 407 2533 0 2486 6241 13% 5765 South King Downtown 815 407 2533 0 2486 6241 13%First Hill 487 396 275 0 57652266South King 3424 7% 63,656 of all King planned First Hill 487 396 275 0 2266 3424 7%Greenlake/Wallingford/Fremont 674 327 266 63,6560 588of all King planned1855 4% Greenlake/Wallingford/Fremont 674 327 266 0 588 1855 4%Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County Planned Development Queen Anne 265 283 56 0 565 2% Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County1169 Planned Development North King makes up 5% of all King County Planned Development S Downtown/Pioneer Square 424 0 50 0 305 779 2% East King makes up 12% of all King County Planned Development Queen Anne 265 283 56 0 565 1169 2% North King makes up 5% of all King County Planned Development SLU 640 1387 2197 375 5846 10445 22% South King makes up 9% of all King County Planned Development S Downtown/Pioneer Square 424 0 50 0 305 779 2%University District 402 East King509 makes214 up 0 12%788of all King County1913 Planned4% Development SLU 640 1387 2197 375 5846 10445 22%West Bellevue 1003South King638 makes401 up 1375 9%2177of all King County5594 Planned12% Development University District 402 509 214 0 788 1913 4%West Seattle 1200 608 0 0 469 2277 5% Totals West Bellevue 1003 638 401 1375 2177 5594 12% 9273 6714 10004 1770 19132 West Seattle 1200 608 0 0 469 2277 5% Ballard Belltown Capitol Hill Totals 9273 6714 10004 1770 19132 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

Ballard Belltown Capitol Hill 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

URBAN KING COUNTY Developments

King Urban County 2015 2016 2017 2018 Future Total %Ce ofnt Marketral/Beacon Hill/Rainier Valley Downtown First Hill 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Ballard 536 391 136 0 490 1553 3% Belltown 297 140 1469 0 999 2905 6% 46,893 units planned in King Urban Capitol Hill 1326 682 738 20 576 3342 7% 3425 North King Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 7573 East King Downtown 815 407 2533 0 2486 6241 13% 5765 South King Central/Beacon Hill/FirstRa Hillinier Valley 487 396 275 0 Do2266wntown 3424 7% 63,656 Fiof ralls tKing Hill planned Greenlake/Wallingford/Fremont2015 2016 2017 2018 Future 674 327 266 0 588 2015 18552016 204%17 2018 Future 2015 2016 2017 2018 Future Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County PlannedURBAN Development KING COUNTY Developments Queen Anne 265 283 56 0 565 1169 2% North King makes up 5% of all King County Planned Development S Downtown/Pioneer Square 424 0 50 0 305 779 2% East King makes up 12% of all King County Planned Development SLU 640 1387 2197 375 5846 10445 22% South King makes up 9% of all King County Planned Development University District 402 509 214 0 788 1913 4% King Urban County 2015 2016 2017 2018 Future Total % of Market Ballard 536 391 136 0 490 1553 3% West Bellevue 1003 638 401 1375 2177 5594 12% GreenlaBelltownke/Wallingford/Fremont 297 140 1469 0 999 2905Kirklan6%d 46,893 units planned in King Urban West Seattle 1200 608 0 0 469 2277 5% Queen Anne Capitol Hill 2015 2016 2017 2018 132Futu6re 682 738 20 576 3342 7%2015 2016 2017 2018 Future 3425 North King 2015 2016 2017 2018 Future Totals 9273 6714 10004 1770 19132 Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 7573 East King Downtown 815 407 2533 0 2486 6241 13% 5765 South King FirstB Hillelltown 487 396 275 0 2266 3424 Cap7%itol Hill 63,656 of all King planned Ballard Greenlake/Wallingford/Fremont 674 327 266 0 588 1855 4% 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County Planned Development Queen Anne 265 283 56 0 565 1169 2% North King makes up 5% of all King County Planned Development S Downtown/Pioneer Square 424 0 50 0 305 779 2% East King makes up 12% of all King County Planned Development SLU 640 1387 2197 375 5846 10445 22% South King makes up 9% of all King County Planned Development University District 402 509 214 0 788 1913 4% Greenlake/Wallingford/Fremont Kirkland West Bellevue 1003 638 401 1375 2177Queen Ann5594e 12% 2015 2016 2017 2018 Future 2015 2016 20West17 Seattle2018 Future 1200 608 0 0 469 2277 5% 2015 2016 2017 2018 Future Totals 9273 6714 10004 1770 19132

Ballard Belltown Capitol Hill 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

S Downtown/Pioneer Square SLU 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future University District 2015 2016 2017 2018 Future

Central/Beacon Hill/Rainier Valley Downtown First Hill 2015 2016 2017 2018 Future2015 Seattle Apartment Market Study 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Downtown i n R E VI W 2014 y e ar Deliveries by year URBAN KING 2015 9,516 2016 7,243 development pipeline 815 2017 10,334 2018 1,770 Urban King Pipeline 407 2,486 Future 19,863 48,726 units 74% of King County pipeline Central/Beacon Hill/Rainier Valley Downtown First Hill 69% of Tri-county pipeline 6,241 Central/Beacon H2ill/015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future S Downtown/Pioneer Square SLU UNITS Rainier Valley 2015 2016 2017 2018 Future University District 2015 2016 2017 2018 Future 418 1,136 2015 2016 2017 2018 Future South Lake Union 2,533 West Bellevue West Seattle 640 858 2015 2016 2013,8617 2018 Future 2015 2016 2017 2018 Future West Bellevue UNITS 1,387

1,003 Greenlake/Wallingford/Fremont 5,846 Kirkland 1,449 Queen Anne 2015 2016 2017 2018 Future 10,445 2015 2016 2017 2018 Future UNITS 2,177 2015 2016 2017 2018 Future

2,197 638 5,594 UNITS Greenlake/Wallingford/Fremont Kirkland Queen Anne 401 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 375 2015 2016 2017 2018 FUTURE 1,375

10 Colliers International Seattle

West Bellevue West Seattle 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

S Downtown/Pioneer Square SLU S Downtown/Pioneer Square 2015 2016 2017 2018 Future University DisStLrUict 2015 2016 2017 2018 Fut2u0r1e5 2016 2017 2018 Future University District 2015 22010516 20126017 2017 20182018 FuFututruere 2015 2016 2017 2018 Future

West Bellevue West Seattle 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future West Bellevue West Seattle 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future URBAN KING COUNTY Developments

King Urban County 2015 2016 2017 2018 Future Total % of Market Ballard 536 391 136 0 490 1553 3% Belltown 297 140 1469 0 999 2905 6% 46,893 units planned in King Urban Capitol Hill 1326 682 738 20 576 3342 7% 3425 North King Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 7573 East King Downtown 815 407 2533 0 2486 6241 13% 5765 South King URBAN KING COUNTY First Hill 487 396 275 0 2266 3424 7% 63,656 of all King planned Developments Greenlake/Wallingford/Fremont 674 327 266 0 588 1855 4% Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County Planned Development Queen Anne 265 283 56 0 565 1169 2% North King makes up 5% of all King County Planned Development S Downtown/Pioneer Square 424 0 50 King 0Urban C305ounty 779 2% 2015 2016 2017 2018 FEastutur eKingT makesotal up %12 of% Marketof all King County Planned Development SLU 640 1387 2197 375 5846 10445 22% South King makes up 9% of all King County Planned Development Ballard 536 391 136 0 490 1553 3% University District 402 509 214 0 788 1913 4% Belltown 297 140 1469 0 999 2905 6% 46,893 units planned in King Urban West Bellevue 1003 638 401 1375 2177 5594 12% Capitol Hill 1326 682 738 20 576 3342 7% 3425 North King West Seattle 1200 608 0 0 469 2277 5% Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 7573 East King Totals 9273 6714 10004 1770 19132 Downtown 815 407 2533 0 2486 6241 13% 5765 South King First Hill 487 396 275 0 2266 7% of all King planned Belltown 3424 Capitol Hill 63,656 Ballard Greenlake/Wallingford/Fremont 674 327 266 0 588 1855 4% 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County Planned Development Queen Anne 265 283 56 0 565 1169 2% North King makes up 5% of all King County Planned Development S Downtown/Pioneer Square 424 0 50 0 305 779 2% East King makes up 12% of all King County Planned Development SLU 640 1387 2197 375 5846 10445 22% South King makes up 9% of all King County Planned Development University District 402 509 214 0 788 1913 4% West Bellevue 1003 638 401 1375 2177 5594 12% West Seattle 1200 608 0 0 469 2277 5% Totals 9273 6714 10004 1770 19132 URBAN KING COUNTY Developments Belltown Capitol Hill URBAN KING COUNTY Ballard 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future King Urban County 2015 2016 2017 2018 Future Total URBAN% of Market KING COUNTY Developments Ballard 536 391 136 0 490 1553 Developments3% Belltown 297 140 1469 0 999 2905 6% 46,893 units planned in King Urban Capitol Hill 1326 682 738 20 576 3342 7% 3425 North King Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 7573 East King Downtown 815 407 2533 0 2486 6241 13% 5765 South King Central/Beacon Hill/Rainier Valley Downtown First Hill First Hill 487 396 275 0 2266 3424 7% 63,656 of all King planned Greenlake/Wallingford/Fremont 674 327 266 0 588 1855 4% 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future King Urban County 2015 20Kirkland16 2017 2018 Fut78u6re 8T8 otal220 0 % 441of Market1535 3% Urban King makes up 74% of all King County Planned Development Ballard 536 39Queen1 Anne 136 0 265 490283 56 15530 565 3% 1169 2% North King makes up 5% of all King County Planned Development King Urban County 2015 2016 2017 2018 Future Total % of Market S Downtown/Pioneer Square 424 0 50 0 305 779 2% East King makes up 12% of all King County Planned Development Belltown 297 14SLU0 1469 0 640 9991387 2197 2905375 5846 6%10445 22% South King makes up 9% of all King County Planned46,893 Developmentunits planned in King Urban URBAN KING COUNTY University District 402 509 214 0 788 1913 4% Ballard 536 391 136 0 490 1553 3% Capitol Hill 1326 68West2 Bellevue 738 20 1003 576638 401 33421375 2177 7% 5594 12% 3425 North King West Seattle 1200 608 0 0 469 5% Developments Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 2277 7573 East King Belltown 297 140 1469 0 999 2905 6% 46,893 units planned in King Urban Totals 9273 6714 10004 1770 19132 Downtown 815 407 2533 0 2486 6241 13% 5765 South King Ballard Belltown Capitol Hill URBAN KING COUNTY 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Capitol Hill 1326 682 738 20 576 3342 7% 3425 North King First Hill 487 396 275 0 2015 22266016 2017 2018 Future 3424 7% 63,656 of all King planned Developments Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861 8% 7573 East King Greenlake/Wallingford/Fremont 674 327 266 0 588 1855 4% Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County Planned Development Downtown 815 407 2533 0 2486 6241 13% 5765 SouthKing King Urban County 2015 2016 2017 2018 Future TotalQueen %Anne of Market 265 283 56 0 565 1169 2% North King makes up 5% of all King County Planned Development King Urban County 2015 2016 2017 2018 Future Total % of Market URBAN KING COUNTY Ballard 536 391 136 0 490 1553 3% Central/Beacon Hill/Rainier Valley DoS Downtown/Pioneerwntown Square 424 0 50 Developments0 305First Hill 779 2% East King makes up 12% of all King County Planned Development First Hill 487 396 275 0 2266 3424 7% 63,656 of all BelltownKing planned 297 140 1469 0 999 2905 6% 46,893 units planned in King Urban Ballard 536 391 136 0 490 1553 3% 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Capitol Hill 1326 682 738 20 576 SLU3342 7% 640 1387 3425 North219 King7 375 5846 10445 22% South King makes up 9% of all King County Planned Development Greenlake/Wallingford/FremontBelltown 674 297 327 140 2661469 0 0 588999 18552905 4%6% 46,893 units plannedCentral/Beacon in Hill/Rainier King Urban Valley 418 858 1449 0 1136 University3861 District8% 402 509 7573 East21 King4 0 788 1913 4% Downtown 815 407 2533 0 2486 6241 13% 5765 South King West Bellevue 1003 638 401 1375 2177 5594 12% KirklandCapitol Hill 7861326 88 682 220738 0 20 441576 15353342 3%7% Greenlake/Wallingford/Fremont Urban King makes up 342745%NorthKofirk alllan KingFirst dKing Hill County Planned48 Development7 King396 Urban27 5County 0URBAN2266 KING3424 COUNTYQ20u17%5een A20nn16 e 2017 2018 Future Total 63,656% of Marketof all King planned 2015 2016 2017 2018 Future Greenlake/Wallingford/Fremont2015 2016 2017 2018 Future 674 327 266 0 588 1855 4% Ballard DevelopmentsWest Seattle536 3921015 213016 2017 0 2018 490120Future0 1553608 3% 0 0 469 2277 5% Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County Planned Development QueenCentral/Beacon Anne Hill/Rainier Valley 265 418 283 858 561449 0 0 5651136 11693861 2%8% North King makes up 75753%Eastof all King King County Planned DevelopmentBelltown Totals 297 140 1469 0 9999273 29056714 10006% Ce4ntral/Bea177con 0Hill/Raini19132er Valley 46,893Downunitstown planned in King Urban First Hill Queen Anne 265 283 56 0 565 1169 2% North King makes up 5% of all King County Planned20 1Development5 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Capitol Hill 1326 682 738 20 576 7% 3425 North King 424 815 0 407 502533 0 0 3052486 2%13% 5765 South KingS Downtown/Pioneer Square 424 0 50 0 305 779 2% East King makes up3342 12% of all King County Planned Development S Downtown/PioneerDowntown Square 7796241 East King makes up 12% of all King County Planned DevelopmentCentral/Beacon Hill/Rainier Valley 418 858 1449 0 1136 8% 7573 East King SLU 640 1387 2197 375 5846 10445 22% South King makes up3861 9% of all King County Planned Development URBAN KINGBe COUNTYlltown Capitol Hill University District 402 Downtown509 214 0 788 1913 814%5 407 2533 Ba0llard2486 6241 13% Developments5765 South King SLU First Hill 640 487 1387 396 2197275 375 0 58462266 104453424 22%7% South King makes up 63,6569%ofof all all King King planned County Planned Development 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future West Bellevue 1003 First638 Hill 401 1375 2177 5594 4812%7 396 275 0 22266015 2016 34242017 2018 7% Future 63,656 of all King planned West Seattle 1200 608 0 0 469 2277 5% 674 327 266 0 588 4% King Urban County 2015 2016 2017 2018 Future Total Greenlake/Wallingford/Fremont% of Market 674 327 266 0 588 1855 4% UniversityGreenlake/Wallingford/Fremont District 402 509 214 0 788 19131855 4% Totals 9273 6714 10004 1770 19132 Ballard 536 391 136 0 490 1553Kirkland 3% 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County Planned Development Kirkland 786 88 220 0 441 1535 3% Urban King makes up 74% of all King County Planned Development King Urban County 2015 2016 2017 2018 Future Total % of Market West Bellevue 1003 638 401 1375 2177 5594 12% Ballard Queen Anne 265 Bell28to3wn 56 0 565 1169 2% Capitol Hill North King makes up 5% of all King County Planned Development Ballard 2015 2016 2017 2018 Future 536 391 136 0 2015 2049016 2017 2018 Future 3% 265 283 56 0 565 2% Belltown 297 140 1469 0 999 2015 22905016 S20 1Downtown/Pioneer7 2018 Futur6%e Square 424 0 50 0 305 779 2% 46,893 units planned in King1553 UrbanEast King makes up 12% of all King County Planned Development West SeattleQueen Anne 1200 608 0 0 469 22771169 5% North King makes up 5% of all King County Planned Development Belltown 297 140 1469 0 999 6% units planned in King Urban Capitol Hill 1326 682 738 20 576 3342SLU 7% 640 1387 2197 375 5846 10445 22% 3425 North King 2905South King makes up 9% of all King County Planned Development 46,893 Capitol Hill 1326 682 738 20 576 3342 7% 3425 North King S Downtown/Pioneer Square 424 0 50 0 305 779 2% East King makes up 12% of all King County Planned DevelopmentUniversity District 402 509 214 0 788 1913 4% Greenlake/Wallingford/Fremont Kirkland Queen Anne Totals 9273 6714 10004 1770 19132 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Central/Beacon Hill/Rainier Valley 418 858 1449 0 1136 3861West Bellevue8% 1003 Central/Beacon638 401 Hill/Rainier1375 Valley2177 4155948 8512%8 1447579 3 East0 King1136 3861 8% 7573 East King 2015 2016 2017 2018 Future SLU 640 1387 2197 375 5846 10445 22% South King makesG rupeen lake/Walling9% fofor d/Fall rKingemon Countyt Planned DevelopmentWest Seattle Kirklan120d0 Downtown608 0 0 469 8122775 4075% 2533 0 2486Queen Ann6241e 13% 5765 South King Downtown 815 407 25320135 2016 20107 2018 2486Future 6241 13% 2015 2016 2017 2018 Future 5765 South King Totals 9273 First671 4Hill 10004 1770 19132 487 396 275 0 2266 34242015 2017%6 2017 2018 Future 63,656 of all King planned 2014 y e ar University District 402 509 214 0 788 4% i n R E VI W 1913 Belltown First Hill 487 396 275 0 2266Capitol Hill3424 7% Greenlake/Wallingford/Fremont 674 327 63,656266 of 0all King588 planned1855 4% Ballard Kirkland 786 88 22Be0lltown 0 441 1535 3% CapUrbanitol HKingill makes up 74% of all King County Planned Development West Bellevue 1003 638 401 1375 2177 5594 12% Greenlake/Wallingford/Fremont 674 327 266 0 588 20118555 2016 4%2017 2018 BFuallaturrde S Dow2n0t1own/5 P20ionee16 r 2Squa017 re 2018 Future Queen Anne 2015 S26eattle5 28A3partment56 M201arket5 0 2016 S5652tudy017 2018 1169Future 2% North King2015 makes2016 up20 17 20185% ofFut uallre King County Planned Development 2015 2016 2017 2018 Future SLU 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future UniversityS Downtown/PioneerDistrict Square 424 0 50 0 305 779 2% East King makes up 12% of all King County Planned Development West Seattle 1200 608 0 0 469 2277 5% Kirkland 786 88 220 2015 20106 2017 4412018 Future 1535 3% Urban King makes up 74% of all King County Planned Development SLU 2015 2016 2017 2018 Future 640 1387 2197 375 5846 10445 22% South King makes up 9% of all King County Planned Development Queen Anne 265 283 56 0 565 1169 2% University District North King makes up 5% of all King County Planned Development Totals 9273 6714 10004 1770 19132 University District 402 509 S. D21ow4 nt0own/788 1913 4% West Bellevue 1003 638 401 1375 2177 12% S Downtown/Pioneer Square 424 0 50URBA0N CKIent305raNl/BeGaco n Hill/Rainier 779Valley 2% Downtown East King makes up 12Fi%rst ofHill all King County5594 Planned Development 1200 608 P0ionee0 r 469 5% 2015 2016 2017 2018 Future West2015 Seattle2016 2017 2018 Future S Downtown/P2i0onee15 r2 0Squa16 r2e017 2018 Fu2277ture SLU 2015 2016 2017 2018 Future University District SLU 640 1387 2197 375 5846 10445 22% 402Central/BeaconSouth Hill/R aKinginier makesValley up S9quar% of alle King County Planned DevelopmentDowntown 2015 2016 2017 2018 Future First Hill development pipeline Totals 9273 6714 10004 1770 19132 2015 2016 2017 2018 Future Belltown Capitol Hill 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Ballard University District 402 509 214 0 788 1913 4% 305 2015 2016 2017 2018 Future 2015 2016 2017 2018 Fut788ure Belltown Capitol Hill 2015 2016 2017 2018 Future Ballard West Bellevue 1003 638 401 137C5 apit2177ol Hill 5594 12% 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 1,913 Ballard2015 2016 2017 2018 Future West Seattle 1200 608 0 0 469 5% UNITS 779 2277 UNITS Totals 9273 6714 10004 1770 19132 509 576 50 424 214 490 536 S Downtown/Pionee20r Square CenBtrael/llBteoacwonn HSill/LURainier Valley 1,553 Downtown Capitol Hill First Hill Ballard 2015 2016 2017 2018 Future University District 2015 2016 2017 2018 Future UNITS 2015 2016 2017 2018 Future 2015 2015 20126016 22010717 2018 201Fu8ture Future 20W15est Be201ll6evue2017 2018 Future 2015 2016 We2s0t1 S7eattle 2018 Future 2015 2016 2017 2018 Future Greenlake/Wallingford/Fremont Kirkland 2015 2016 2017 2018 Future Queen Anne2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Belltown 2015 2016 2017 2018136Future 1,326 Queen Anne2015 2016 2017 2018 Future 3,342 391 West Bellevue West Seattle UNITS 2015 2016 2017 2018 Future 20157382016 2017 2018 Future 297 265 140 999 565 1,169 Greenlake/Wallingford/Fremont UNITS Kirkland 682 GreenlCentraakl/Bee/aco n Hill/Rainier Valley 283 Downtown First Hill Queen Anne 2015 20120615 2200167 20210718 2018FuturFue ture 2015 2016 201175 20218016 Futur2e017 2018 Future 2015 2016 2017 2018 Future 2,905 Wallingford/Fremont 56 2015 2016 2017 2018 Future Central/Beacon Hill/Rainier Valley Downtown First Hill UNITS First Hill/ 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 1,469 yesler teS Drracowntown/ePioneer Square SLU 588 2015 2016 2017 2018 Future Greenlake/Wallingford/Fremont Kirkland 2015 2016 2017 2018 Future University District Queen Anne 2015 2016 2017 2018 Future 2015 20152016 2016 20172017 20210818 FuFutturee 674 2015 2016 2017 2018 Future 1,855 Kirkland UNITS 487 Central/Beacon Hill/Rainier Valley Downtown West Bellevue First Hill West Seattle 441 2015 2016 2017 2018 Future 2015 2016 2017 2662018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 WeFustutre Seattle 327 396 1,535 UNITS 786 Greenlake/Wallingford/Fremont Kirkland Queen Anne 2015 2016 2202017 2018 Future 2015 2016 2017 2018 Future Central/Beacon Hill/Rainier Valley 3,624 Downt469own First Hill 2015 2016 2017 2018 Future UNITS 2015 2016 2017 2018 Future 275 2015 2016 2017 2018 Future 88 2015 2016 2017 2018 Future S Downtown/Pioneer Square West Bellevue 2,277 West Seattle SLU 1,200 2015 2016 2017 2018 Future 2,466 2015 2016 2017 2018 Future UNITS 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future University District 2015 2016 2017 2018 Future 608 2015 2016 2017 2018 FUTURE S Downtown/Pioneer Square SLU 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future University District 2015 2016 2017 2018 Future

Colliers International Seattle 11

Greenlake/Wallingford/Fremont Kirkland Queen Anne S Downtown/Pioneer Square SLU 2015 2016 2017 2018 Future University District 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

Greenlake/Wallingford/Fremont Kirkland Queen Anne 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Greenlake/Wallingford/Fremont 2015 2016 2017 2018 KirkFultanurWe dest Bellevue West Bellevue West Seattle West Seattle 2015 2016 2017 2018 Future 2015 2016 2017 2018QuFuteeure n Anne 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

West Bellevue West Seattle 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

S Downtown/Pioneer Square SLU 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future University District 2015 2016 2017 2018 Future S Downtown/Pioneer Square SLU 2015 2016 2017 2018 Future S Downtown/Pioneer Square 2015 2016 2017 2018 Future University District SLU 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future University District 2015 2016 2017 2018 Future

West Bellevue West Seattle West Bellevue West Seattle 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future West Bellevue West Seattle 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future Total North King 593 321 485 0 2026 3425 East King 1236 2641 944 1701 1051 7573 South King 698 1968 328 0 2771 5765 North Snohomish 983 0 0 0 1163 2146 South Snohomish 995 410 407 0 1307 3119

North King East King

1,051 1,236 593

321 1,701

2,026 2,641 2015 2016 2017 2018 Future Total 485

North King 593 321 485 0 2026 3425 944 East King 1236 2641 944 1701 1051 7573 South King 698 1968 328 0 2771 5765 2015 2016 2017 2018 Future Total 2015 2016 2017 2018 Future Total 2015 Seattle Apartment Market Study North Snohomish 983 0 0 0 1163 2146 North King 593 321 485 0 2026 3425 North King 593 321 485 0 2026 3425 East King 1236 2641 944 1701 1051 7573

South Snohomish 995 410 407 0 1307 3119 i n R E VI W East King 1236 2641 944 1701 1051 2014 y e ar 7573 South King 698 1968 328 0 2771 5765 South King 698 1968 328 0 2771 5765 2015 2016 2017 2018 Future North Snohomish 983 0 0 0 1163 2146 2015 2016 2017 2018 Future North Snohomish 983 0 0 0 1163 2146 South Snohomish su995bur 410b 407an d 0Easte 1307v Kingel3119opment pipeline South SnohomishNorth King 995 410 407 0 1307 3119 North Snohomish North King South King East King North King North King easEastt KingKing south King 1,051 1,236 593

1,051 1,051 1,236 698 1,236 593 593 321 King County 1,701 Pipeline 983 2,026 321 321 2,771 1,701 485 3,425 2,641 1,701 7,573 5,765 65,489 1,163 1,968 2,026 2,026 UNITS944 UNITS UNITS units 2,641 485 485 2,641 planned 944 944 328 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future North Snohomish South Snohomish South King north snohomish south snohomish

North Snohomish SouthNorth Snohomish Snohomish South King South King 698 995 Snohomish County Pipeline 698 1,307 698 983 5,265 995 2,771 1,163 2,146 3,119 UNITS UNITS 1,307 1,968 983 units 983 2015 2,771 2,771 1,163 1,163 planned 410 2016 1,968 1,968 407 2017 328 410 2018 407 328 328 FUTURE 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future

2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2015 2016 2017 2018 Future South Snohomish 12 Colliers International Seattle

South Snohomish South Snohomish

995

1,307

995 995

1,307 1,307

410

407

410 410

407 407

2015 2016 2017 2018 Future

2015 2016 2017 2018 Future 2015 2016 2017 2018 Future 2014 y e ar i n R E VI W

2015 Seattle Apartment Market Study

2000-2014 job growth year-over-year growth Seattle-bellevue-everett msa 17,700 31,200 42,800 43,100 49,080 JOBS JOBS JOBS JOBS JOBS 2010 2011 2012 2013 2014

350,000 Hottest & Coldest job growth in the last 10 years stem job Growth 300,000 69,660 professional/stem 15% in last 4 years

250,000 -7,760 27% Fire in last 10 years

200,000 2010-2014 Percentage of total new jobs by industry

JOBS Construct ion/ Manufacturing 150,000 6%

14% 25% 100,000

50,000 11%

2% 15%

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 25% Construction/Manufacturing Retail/Service Trade/Transportation/Utilities 2% Professional/STEM FIRE Education/Healthcare Government Professional/STE M

*Due to incomplete employment data for Nov.-Dec. 2014, the existing data was annualized and trended by industry for the six different submarkets. Colliers International Seattle 13

2015 Seattle Apartment Market Study ur b :: MARKET OVERVIEW UR B a n ki g URBAN KING A N KI G

Downtown Central Area/Beacon Hill/Rainier Valley South Downtown/Pioneer Square Greenlake/Wallingford/Fremont Capitol Hill University District First Hill/Yesler Terrace West Seattle Belltown Ballard Queen Anne West Bellevue South Lake Union Kirkland

Market Snapshot $ % 4.1% 27,584

$2.37 vacancy average avg rent per s f avg 2015-2018 Deliverie s

Colliers International Seattle 15 2015 Seattle Apartment Market Study

Urban king kirkland Kirkland

ballard university Redmond Since the beginning of the most recent apartment market greenlake/ district wallingford/ cycle in 2011, urban neighborhoods within king County fremont Bainbridge Island a n ki g have received the greatest share of attention from the ur b apartment investment community—and deservingly so. The queen 14 neighborhoods covered in this market have absorbed anne

nearly 13,000 new apartment units in the last 4 years while South west lake union capitol bellevue hill Bellevue continuing to post positive rent growth y-o-y and a mean belltown Sammamish vacancy rate near 4%. Sales in the urban king market Seattle downtown first continue to impress with increasing prices on a per square hill south downtown/ foot and unit basis. These neighborhoods will certainly Pioneer square

remain the focal point for some time to come. Mercer Island

west central area/ seattle beacon Hill/ Rainier valley

Issaquah

WA 900

Historical performance 2009 2010 2011 2012 2013 2014 Number of Sales 3 9 8 19 17 29 Sales Volume $87.6M $232.6M $250.9M $749M $784M $1.1B Average PPU $181,568 $200,169 $212,193 $277,864 $310,934 $305,925 Average PPSF $213 $280 $326 $381 $437 $428 Average Cap Rate 5.8% 5.2% 5.2% 4.8% 4.6% 4.5% Number of Deliveries 3,351 2,645 620 2,696 4,031 5,781

Sales: Buildings 50+ units 16 Colliers International Seattle 2015 Seattle Apartment Market Study market fundamentals $1,804 $2.37 4.1% ur b AVG RENT per unit AVG RENT per SF CURRENT VACANCY a n ki g Urban King County 27,584 15,773 Units Delivered Units Planned 9,948 9,301

$2,000 10.00%

$1,800 9.00%

$1,600 6,565 8.00% 5,781 $1,400 7.00%

$1,200 6.00% Vacancy Rate

$1,000 4,031 5.00%

$800 3,351 4.00%

Monthly Rent Monthly $600 2,645 2,696 3.00% 2,111 $400 1,717 2.00% 1,389 1,770 $200 1,046 1,078 1.00% 942 807 883 619 620 $0 0.00%

Market Rent Market Vacancy Market Rent Market Vacancy Units Delivered Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com

Colliers International Seattle 17 2015 Seattle Apartment Market Study

employment growth year-over-year growth urban king (1,541) 15,798 15,916 21,351 21,511 JOBS JOBS JOBS JOBS JOBS 200,000 2010 2011 2012 2013 2014 a n ki g ur b 180,000 Hottest & Coldest job growth in the last 10 years stem job Growth 160,000 41,690 professional/stem 18% in last 4 years

140,000 -8,285 41% Fire in last 10 years 120,000

100,000 2010-2014 Percentage of total new

JOBS jobs by industry

80,000 retail/servic e

8% 3% 60,000

39% 40,000

20,000 29%

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Construction/Manufacturing Retail/Service Trade/Transportation/Utilities Professional/STEM FIRE Education/Healthcare Government 2%

*Due to incomplete employment data for Nov.-Dec. 2014, the existing data was annualized and trended by industry for the six different submarkets. 19%

Professional/STE M 18 Colliers International Seattle 2015 Seattle Apartment Market Study

2014 sales & sales trends URBAN KING COUNTY ur b 2014 SALES

2014 sales metrics a n ki g

2020 2020

2000 2000

1980 1980 Built

Built 1960 1960 Year Year

1940 1940

1920 1920

1900 1900 $‐ $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $‐ $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00 Sale Price (PPU) Sale Price (PPSF)

URBAN KING COUNTY 2000‐ 2014 SALES

$500 2000-2014 Sales8.0% Trends 7.3% 7.3% $450 $437 $428 7.0% 7.0% 6.5% $400 $381 6.0% 5.7% 5.8% $339 $350 $326 $311 5.0% 5.0% 5.2% 5.2% 4.8% $300 $280 5.0% 4.6% $269 4.5% 4.5% 4.5% Rate $250 4.0% PPSF $209 $213 Cap $200 $172 $163 3.0% $150 $154 $150 $138 2.0% $100

$50 1.0%

$0 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Year

Colliers International Seattle 19 2015 Seattle Apartment Market Study

2014 Downtown Sales no 2014 sales

N OW AVG Price per unit Avg Price per SF Cap rate

Harvard Avenue East

25th Avenue East

13th Avenue East

12th Avenue East Elliott Avenue West Fairview Avenue North East Thomas Street

Taylor Avenue NT DOW John Street East John Court East John Street

Broad Street Broadway East 6th Avenue 6th Avenue North

8th Avenue 8th Avenue North Avenue9th North Terry Avenue Avenue North Terry

Minor Avenue Melrose Avenue East Denny Way Belmont Avenue Denny Way East Denny Way Avenue23rd East 24th Avenue 24th Avenue East

11th Avenue 2nd Avenue 2nd Avenue North

21st Avenue Avenue East 21st 10th Avenue 10th Avenue East

22nd Avenue22nd East Elliott Avenue

Western Avenue Boylston Avenue East

Westlake Avenue WestlakeNorth

14th Avenue 14th

DexterAvenue

East Olive Way Nagle Place

Cedar Street Aurora Avenue Terry Avenue

Lenora Street8th Avenue 15thAvenue Olive Way East Madison Street East Pine Street East Pine Street

Bell Street 12th Avenue East Pike Street East Pike Street

19thAvenue 11th Avenue Summit Avenue

Pine Street Bellevue Avenue Elliott Avenue Vine Street Blanchard Street Boren Avenue East Union Street East Union Street East Union Street Virginia Street Pike Street 7th Avenue Elliott Avenue 6th Avenue 8th Avenue 5th Avenue 9th Avenue Broadway Court

Stewart Street Avenue21st 4th Avenue East Marion Street 3rd Avenue

24th Avenue 24th Madison Street Avenue 23rd

Broadway

1st Avenue East Columbia Street

2nd Avenue 7th Avenue

Pine Street 25th Avenue Western Avenue East Cherry Street University Street Alaskan Way East James Court East James Street

17th Avenue 19th Avenue Columbia Street East Jefferson Street Spring Street

Marion Street 9th Avenue 10th Avenue

Madison Street James Street 18th Avenue East Alder Street

2nd AvenueSeattle Extension South East Spruce Street Property Year WA 305 Cap Buyer Address Units NRSF Price Sale Date $/Unit $/NRSF East Fir Street Name Built WA 304 Rate Seller Yesler Way East Yesler Way Dilling Way 23rd Avenue South

Alaskan Way South Average 5th Avenue 5th Avenue South

21st Avenue21st South 14th Avenue 14th Avenue South 15th Avenue South 16th Avenue South 17th Avenue South

South Jackson Street Avenue24th South 18th Avenue 18th Avenue South

4th Avenue4th South

22ndAvenue South 6th Avenue 6th Avenue South 7th Avenue 7th Avenue South 25th Avenue 25th Avenue South 20th Avenue 20th Avenue South South King Street Avenue12th South 19th Avenue South 9th Avenue 9th Avenue South

20 Colliers International Seattle 2015 Seattle Apartment Market Study

Downtown Development Pipeline Deliveries 2015 2016 2017 2018 Future

2015 2016 2017 2018 FUTURE DOW NT 815 407 2,533 0 2,486 Numbers within circles on map below indicate size of development

Harvard Avenue East

25th Avenue East

13th Avenue East

12th Avenue East OW N Elliott Avenue West Fairview Avenue North East Thomas Street

Taylor Avenue 550John Street East John Court East John Street Broad Street 300 Broadway East 6th Avenue 6th Avenue North

8th Avenue 8th Avenue North Avenue9th North Terry Avenue Avenue North Terry

Minor Avenue Melrose Avenue East Denny Way Belmont Avenue 354 Denny Way East Denny Way Avenue23rd East 24th Avenue 24th Avenue East

11th Avenue 2nd Avenue 2nd Avenue North

21st Avenue Avenue East 21st 10th Avenue 10th Avenue East 396 238 Avenue22nd East Elliott Avenue 430 368

Western Avenue Boylston Avenue East

Westlake Avenue WestlakeNorth

14th Avenue 14th

DexterAvenue

East Olive Way Nagle Place

Aurora Avenue 355 Cedar Street Terry Avenue

346 15thAvenue Lenora Street8th Avenue 270 Olive Way East Madison Street East Pine Street East Pine Street

Bell Street 154 12th Avenue East Pike Street East Pike Street

19thAvenue 74 11th Avenue Summit Avenue

Pine Street Bellevue Avenue Elliott Avenue 200 Vine Street Blanchard Street Boren Avenue East Union Street East Union Street East Union Street 386 Virginia Street Pike Street 7th Avenue Elliott Avenue 6th Avenue 8th Avenue 5th Avenue 9th Avenue Broadway Court

Stewart Street Avenue21st 398 4th Avenue East Marion Street 3rd Avenue

24th Avenue 24th Madison Street Avenue 23rd 250 Broadway 1st Avenue East Columbia Street 222 3392nd Avenue 7th Avenue

Pine Street 25th Avenue Western Avenue East Cherry Street University Street Alaskan Way East James Court East James Street

169 17th Avenue 19th Avenue Columbia Street East Jefferson Street Spring Street

Marion Street 9th Avenue 10th Avenue

Madison Street250 James Street 18th Avenue East Alder Street 192 2nd AvenueSeattle Extension South East Spruce Street WA 305 East Fir Street WA 304 Yesler Way East Yesler Way Dilling Way 23rd Avenue South

Alaskan Way South 5th Avenue 5th Avenue South

21st Avenue21st South 14th Avenue 14th Avenue South 15th Avenue South 16th Avenue South 17th Avenue South

South Jackson Street Avenue24th South 18th Avenue 18th Avenue South

4th Avenue4th South

22ndAvenue South 6th Avenue 6th Avenue South 7th Avenue 7th Avenue South 25th Avenue 25th Avenue South 20th Avenue 20th Avenue South South King Street Avenue12th South 19th Avenue South 9th Avenue 9th Avenue South

Colliers International Seattle 21 2015 Seattle Apartment Market Study

2014 South Downtown/Pioneer Square Sales $118,421 $293 4.7% N / OW AVG Price per unit avg Price per SF Cap rate 9th Avenue East Spruce Street 4th Avenue Western Avenue 2nd Avenue 10th Avenue 5th Avenue

14th Avenue

WA 305 13th Avenue Boren Avenue

1st Avenue NT S. DOW

8th Avenue E p IO NEE R SQUAR WA 304; WA 305

WA 304 Broadway

15th Avenue 15th 16th Avenue Yesler Way East Yesler Way 12th Avenue East Yesler Way Avenue19th 20th Avenue

3rd Avenue South

South Washington Street

20th Avenue South

9th Avenue South South Main Street Boren Avenue SouthSouth Main Street

2nd Avenue2nd South

17th Avenue17th South

South Jackson Street South Jackson Street South Jackson Street 1 South Jackson Place

South King Street South King Street

5th Avenue5th South

Railroad Way South South Weller Street

Rainier Avenue South

10th Avenue10th South 12th Avenue 12th Avenue South

Seattle Boulevard South

7th Avenue SouthAvenue 7th

Maynard AvenueMaynard South South Dearborn Street South Dearborn Street Railroad Way South

8th Avenue SouthAvenue 8th

Alaskan South Way Jose Rizal Bridge

7th Avenue7th South

4th Avenue South South Plummer Street

Airport Way South Golf Drive South South Charles Street

Sturgus Avenue South Property Year Cap Buyer Address Units NRSF Price Sale Date $/Unit $/NRSF South Norman Street Name Built Rate Seller Rainier Avenue South Foundation Group

Ascona 200 5th Ave S 1910 57 23,027 $6,750,000 6/1/2014 $118,421 $293.13 4.7% 15th Avenue South 1 Daly Partners 12th Avenue 12th Avenue South Average 1910 57 $6,750,000 $118,421 $293 4.7%

3rdAvenue South

East Frontage Road South South Addition Street 1st Avenue 1st Avenue South 6th Avenue South

22 Colliers International Seattle 2015 Seattle Apartment Market Study

South Downtown/Pioneer Square Deliveries p IO NEE R SQUAR E

2015 2016 2017 2018 Future S. DOW NT Development Pipeline 2015 2016 2017 2018 FUTURE 424 0 50 0 305 Numbers within circles on map below indicate size of development 9th Avenue East Spruce Street 4th Avenue

Western Avenue OW N / 2nd Avenue 10th Avenue 5th Avenue

14th Avenue

WA 305 13th Avenue Boren Avenue

1st Avenue

8th Avenue

WA 304; WA 305

WA 304 Broadway

15th Avenue 15th 16th Avenue Yesler Way East Yesler Way 12th Avenue East Yesler Way Avenue19th 20th Avenue

3rd Avenue South

South Washington Street

20th Avenue South

45 96 9th Avenue South South Main Street Boren Avenue SouthSouth Main Street

2nd Avenue2nd South 50 200 Avenue17th South South Jackson Street South Jackson158 Street South Jackson Street South Jackson Place

South King Street South King Street

5th Avenue5th125 South Railroad Way South South Weller Street

Rainier Avenue South

10th Avenue10th South 12th Avenue 12th Avenue South

Seattle Boulevard South

7th Avenue SouthAvenue 7th

105 AvenueMaynard South South Dearborn Street South Dearborn Street Railroad Way South

8th Avenue SouthAvenue 8th

Alaskan South Way Jose Rizal Bridge

7th Avenue7th South

4th Avenue South South Plummer Street

Airport Way South Golf Drive South South Charles Street

Sturgus Avenue South

South Norman Street Rainier Avenue South

15th Avenue South 12th Avenue 12th Avenue South

3rdAvenue South

East Frontage Road South South Addition Street 1st Avenue 1st Avenue South 6th Avenue South

Colliers International Seattle 23 2015 Seattle Apartment Market Study

2014 Capitol Hill Sales Gilman Drive West McGraw Street West McGraw Street East Lynn Street West Boston Street Boston Street East Crockett Street Magnolia Boulevard West $313,554 $454 4.0% 6th Avenue6th West AVG Price per unit avg Price per SF Cap rate Blaine Street

4th Avenue4th West

HarvardAvenue East O L HI LL

Magnolia Bridge Avenue24th East 41st Avenue East

26th Avenue Avenue East 26th Galer Street

15th Avenue 15th Avenue West West Lee Street Queen Anne Avenue Queen Anne Avenue North CAPI T West Olympic Place Bellevue Avenue East

Aurora AvenueAurora North Fairview Avenue North 3 East Helen Street

19th Avenue19th East 10th Avenue10th East East Aloha Street

McGilvra Boulevard East Elliott Avenue West

8th Avenue8th North Belmont Place East East Madison Street Mercer Street Mercer Street 21st Avenue East HarvardAvenue East 2 Maiden Lane East SR-99 SB

1st Avenue1st North 23rd Avenue 23rd Avenue East

25th Avenue25th East

Western AvenueDenny Way Denny Way East Denny Way Broadway East

35thAvenue East

9th Avenue9th North

27thAvenue East 8th Avenue 29thAvenue East 32ndAvenue East 5th Avenue 12th Avenue East

Madrona Drive Olive Way 2nd Avenue 5 East Pike Street 7th Avenue

4 Avenue19th East Union Street

4th Avenue 1 Alaskan Way

1st Avenue

East Cherry Street Broadway

34th Avenue34th East Jefferson Street Avenue36th Madison Street East Alder Street James Street WA 305 Seattle 25th Avenue Yesler WayEast Yesler Way 29th Avenue

31st Avenue31st South Jackson Street Property Year Seattle Boulevard South Martin Luther King Junior Way Cap Buyer Address Units NRSF Price Sale DateSouth Weller $/UnitStreet $/NRSF Name Built South Dearborn Street Rate Seller 1st Avenue 1st Avenue South

35th Avenue35th South 33rd Avenue 33rd Avenue South 23rd Avenue 23rd Avenue South Timberlane Partners Miller-Warren 1410 Belmont Avenue 1910 52 26,561 $10,000,000 10/1/2014 $192,308 $376.49 3.4% 1 SouthAlaskan Way South Norman Street Rodney Hanson & E. Lee Noble

31st Avenue31st South

28th Avenue 28th Avenue South Frederick B & Julie Gould 700 E Mercer 700 E Mercer St 1962 51 33,959 $10,605,000Edgar Martinez Drive South9/10/2014 $207,941 $312.29 AvenueYakima South 3.8% 2 C.F. Williams & Edward Granston Robert S. Tandler Gatsby 1145 10th Ave E 2014 70 56,035 $35,600,000 8/7/2014 $508,571 $635.32 4.2% 3 Continental Properties Essex Property Trust Collins on Pine 1222 E Pine Street 2013 76 57,167 $29,600,000 5/21/2014 $389,474 $517.78 4.5% 4 The Metropolitan Cos Equity Residential Three20 320 E Pine St. 2014 134 83,734 $36,109,577 5/16/2014 $269,474 $431.24 4.1% 5 Stratford Company Average 1983 77 51,491 $24,382,915 $313,554 $454 4.0%

24 Colliers International Seattle 2015 Seattle Apartment Market Study

Capitol Hill Development Pipeline Deliveries

Yale Avenue North

2015 2016 2017 2018WashingtonF Placeut Easture CAPI T

Lakeview Boulevard East 2015 2016 2017 2018 FUTURE East Prospect Street 1,326 682 738 20 576 East Helen Street Numbers within circles on map below indicate size of development *Condo or potential condo O L HI LL East Ward Street † Affordable housing projects not included in unit counts Northeast Boat Street

Bellevue CourtBelmont East Avenue East Avenue East 34th 37th Avenue37th East

Broadway East Turner Way East East Aloha Street North 37th Street 17th Avenue East17th

18th Avenue East18th Avenue East19th

20th Avenue East20th 21st Avenue East 10th Avenue 10th Avenue East 16th Avenue East

22nd Avenue East22nd

11th Avenue Avenue East 11th East Aloha Street

Federal Avenue EastAvenue Federal

Harvard Avenue EastAvenue Harvard Eastlake 36 60Portage Bay Place East 40 Northeast Pacific Place East Martin Street Northeast San Juan Road Valley Street East Valley Street Fairview Avenue North 46 36th Avenue East

Wallingford Avenue NorthWallingford

East Allison Street 28th Avenue East Roy Street East Roy32 Street Fuhrman Avenue East

12th Avenue12th East North 34th Street Mercer Street East Roy Street 34 Lake Washington Boulevard East Mercer Street East Mercer Street 39th Avenue East 115 202 Broadway East

73 Avenue East11th 22 East Republican Street HarvardAvenue East Republican Street 24thAvenue East

Montlake Boulevard East

45† Avenue15th East Boyer Avenue East

48 27th Avenue East

13th Avenue Avenue East 13th 14thAvenue East East Roanoke Street East Roanoke Street McGilvra Boulevard East Malden Avenue Malden Avenue East

Melrose Avenue Melrose Avenue East East Arthur Place East Harrison Street Eastlake Avenue Eastlake Avenue East

132 Yale Avenue East East Louisa Street

Dewey Place East Harrison Street BoylstonAvenue East

25thAvenue East 61 East Miller Street Royal Court East

10th Avenue10th East 70 East Thomas Street

23rd Avenue Avenue East 23rd

Minor Avenue Minor Avenue East East Lynn Street East Lynn Street

26th Avenue East 15thAvenue East

Harvard Avenue East Thomas Street Avenue EastFranklin East Thomas Street Eastlake Avenue East 12th Avenue 12th Avenue East 13th Avenue 13th Avenue East

45 Avenue19th East Boren Avenue Boren Avenue North 47 East Eaton PlaceEast Blaine Street East John Street Fairview Avenue East Deliveries 64 Boylston Avenue East East Newton Street

29th Avenue Avenue East 29th John Street 24 Broadway East 86 50 East John Court East John Street 24 2015 2016 2017 2018 Future East Loretta Place 85 HarvardAvenue East East Florence Court 60 East Glen Street East Olin Place 10th Avenue 10th Avenue East

25th Avenue25th East

East Denny Way Federal Avenue East 34 96 46 269 0 0 147 Avenue24th East

26th Avenue26th East

31st Avenue Avenue East 31st

30th Avenue30th East Denny Way East Denny Way 24th Avenue East Stewart Street East Galer Street East Denny Way

Belmont Avenue 66 Summit Avenue

11th Avenue 57 32nd Avenue Boylston Avenue Boylston Avenue East 44 East Crescent Drive Minor Avenue Minor Avenue North

29th Avenue 29th East Howell Street

14th Avenue 14th 13th Avenue 41 Martin Luther King Junior East Way East Galer Street 20 Avenue23rd

16th Avenue16th East 15th Avenue15th East East Schubert Place 36 Boylston Avenue East Lee Street

Nagle Place 41 East Olive Street East Olive Way Avenue15th

East Madison Street Grand Avenue Olive Way Broadway East Pine Street East Pine Street

27th Avenue27th

33rd Avenue33rd Avenue34th

35th Avenue35th Avenue36th

37th Avenue 37th

205 Harvard Avenue 20 40thAvenue 70

12th Avenue 88 100 57 Pine Street 91

East Pike Street 26th Avenue Howell Street 19thAvenue

7th Avenue Avenue Melrose 249 140 Bellevue Avenue Bellevue 89 260 248 135 Madrona Drive

21stAvenue 20thAvenue 22nd Avenue22nd 8th Avenue 60 94 East Union Street East Union Street Boren Avenue Avenue 18th East Union Street

6th Avenue Pike Street Terry Avenue 9th Avenue 11th Avenue 11th

Martin Luther King Junior Way

30thAvenue

31st Avenue31st

32nd Avenue32nd 16th Avenue East Spring Street 17th Avenue Avenue 19th Seneca Street

Spring Street Broadway Court

Colliers International Seattle 25 2015 Seattle Apartment Market Study

2014 First Hill/Yesler Terrace Sales

$309,594 $408 3.7% AVG Price per unit avg Price per SF Cap rate

Nagle Place

/ T HI LL 8th Avenue Terry Avenue East Olive Street

Belmont Avenue Bell Street 15th Avenue FIRS

11th Avenue E S LE R TE RRAC Olive Way Battery Street 9th Avenue East Pine Street East Pine Street Y E East Madison Street

Lenora Street

Westlake Avenue East Pike Street 4th Avenue Stewart Street East Pike Street 7th Avenue MelroseAvenue Summit Avenue Bellevue Avenue

11th Avenue

East Union Street Boren Avenue 3 East Union Street East Union Street

19th Avenue19th Blanchard Street Pike Street Terry Avenue 1 8th Avenue 2 Elliott Avenue 32ndAvenue 17th Avenue 6th Avenue Virginia Street

20th Avenue20th 5th Avenue Broadway Court

Stewart Street Avenue21st

22ndAvenue Pike Place Pine Street Alaskan Way

24th Avenue24th 3rd Avenue Madison Street Avenue 23rd

Hubbell Place

East Columbia Street 1st Avenue 12th Avenue

2nd Avenue Pine Street Spring Street Marion Street

Temple Place Broadway East Cherry Street East Cherry Street Western Avenue University Street Avenue34th Columbia Street East James Street

8th Avenue

Seneca Street 25th Avenue

19th Avenue East Jefferson Street 27th Avenue East Jefferson Street

7th Avenue 34thAvenue

Marion Street East Terrace Street 10th Avenue Columbia Street 9th Avenue Madison Street East Alder Street Avenue 26th Alaskan Way Avenue 14th

Seattle James Street East Spruce Street

2nd Avenue Extension South

WA 305 32nd Avenue

Jefferson Street East Fir Street 27th Avenue South Year Spruce Street Cap Buyer WA 304 29th Avenue

Property Name Address Units NRSF Price Sale Date $/Unit $/NRSF Avenue 28th Built Yesler Way East Yesler Way Rate Seller East Yesler Way Avenue 30th Martin Luther King Junior Way

Saratoga Capital Inc 23rd Avenue South Vesper 1321 Minor Avenue 1991 72 53,108 $23,914,000 11/12/2014 $332,139 $450.29South Washington4.4% Street 1 9th Avenue South Pacific Urban Residential Boren Avenue South 4th Avenue 4th Avenue South 24th Avenue 24th Avenue South 31st Avenue South

14th Avenue 14th Avenue South Avenue15th South 8th Avenue South SecuritySouth Main Properties Street Panorama 1100 University St. 1962 179 172,000 $74,000,000 9/5/2014 $413,408 $430.23 2.4% 2 J Wolfe & T Hoffenreich & V Todd South Jackson Street South Jackson Street South Jackson Place Mitsumaru Estate

22nd Avenue22nd South Union Arms & Manor 604 E Union St. 1925 83 44,190Avenue6th South $15,208,468 1/31/2014 $183,235 $344.16 4.2% 3 South King Street Gibraltar Investment

7th Avenue7th South

Average 1959 111 89,766 $37,707,489 10th Avenue South 12th Avenue South $309,594 $408 3.7% Alaskan South Way

25th Avenue25th South South Weller Street Avenue26th South 31stAvenue South Maynard Avenue Maynard Avenue South

26 Colliers International Seattle 2015 Seattle Apartment Market Study

First Hill/Yesler Terrace Deliveries 2015 2016 2017 2018 Future Y E S LE R TE RRAC E Development Pipeline 2015 2016 2017 2018 FUTURE FIRS 487 396 275 0 2,466

Numbers within circles on map below indicate size of development *Condo or potential condo T HI LL / † Affordable housing projects not included in unit counts

8th Avenue Nagle Place Terry Avenue East Olive Street

Belmont Avenue Bell Street 15th Avenue

11th Avenue Olive Way Battery Street 9th Avenue East Pine Street East Madison Street East Pine Street

Lenora Street

Westlake Avenue East Pike Street 4th Avenue Stewart Street East Pike Street 7th Avenue MelroseAvenue Summit Avenue Bellevue Avenue 30 11th Avenue East Union Street Boren Avenue East Union Street East Union Street

19th Avenue19th Blanchard Street Pike Street Terry Avenue 8th Avenue

Elliott Avenue 32ndAvenue 168* 17th Avenue 6th Avenue Virginia Street 300

20th Avenue20th 5th Avenue Broadway Court

Stewart Street Avenue21st

22ndAvenue Pike Place Pine Street Alaskan Way

24th Avenue24th 3rd Avenue 200 Madison Street Avenue 23rd

Hubbell Place

East Columbia Street 1st Avenue 12th Avenue 335 2nd Avenue Pine Street Spring Street Marion275 Street

Temple Place 200 Broadway East Cherry Street East Cherry Street Western Avenue University Street Avenue34th Columbia Street 287 East James Street 8th Avenue 255 Seneca Street 25th Avenue

19th Avenue 32 East Jefferson Street 27th Avenue East Jefferson Street

7th Avenue 34thAvenue

Marion Street 329 East Terrace Street 10th Avenue Columbia Street 9th Avenue

75 Avenue 26th Madison Street East Alder Street Alaskan Way 85 Avenue 14th 100 Seattle James Street 68 East Spruce Street 2nd Avenue Extension South

WA 305 93 106 32nd Avenue

Jefferson Street East Fir Street 27th Avenue South Spruce Street 91 † WA 304 83 200 161 29th Avenue 120 Avenue 28th Yesler Way † East Yesler45 Way East Yesler Way Avenue 30th Martin Luther King Junior Way

200 23rd Avenue South South Washington Street

9th Avenue South

Boren Avenue South 4th Avenue 4th Avenue South 24th Avenue 24th Avenue South 31st Avenue South

14th Avenue 14th Avenue South Avenue15th South 8th Avenue South South Main Street

South Jackson Street 60 South Jackson Street South Jackson Place

22nd Avenue22nd South

6th Avenue6th South South King Street

7th Avenue7th South 10th Avenue 10th Avenue South 12th Avenue South

Alaskan South Way

25th Avenue25th South South Weller Street Avenue26th South 31stAvenue South Maynard Avenue Maynard Avenue South

Colliers International Seattle 27 2015 Seattle Apartment Market Study

2014 Belltown Sales $562,661 $643 4.4%East Harrison Street AVG Price per unit avg Price per SF Cap rate East Thomas Street N OW

14th Avenue East 13th Avenue East Elliott Avenue West Belmont Avenue East

BELLT East John Street

Broad Street Broadway East 1st Avenue 1st Avenue North East John Street

2nd Avenue2nd North

Taylor Avenue 6th Avenue 6th Avenue North

8th Avenue 8th Avenue North Avenue North 9th Pontius Avenue Pontius Avenue North Fairview Avenue Fairview Avenue North Queen Anne Avenue NorthAnneQueen East Denny Way East Denny Way Denny Way Minor Avenue East Denny Way Stewart Street

Belmont Avenue Terry Avenue Harvard Avenue Terry Avenue Avenue North Terry Boylston Avenue Boylston Avenue East Bay Street Avenue Warren North

Westlake Avenue WestlakeNorth

Elliott Avenue Dexter Avenue East Howell Street Western Avenue Wall Street

Westlake Avenue

Boylston Avenue Aurora Avenue

Cedar Street Nagle Place East Olive Way East Olive Street Bell Street

8th Avenue Summit Avenue Battery Street Olive Way East Pine Street Vine Street Bell Street 1 Clay Street Howell Street East Pike Street

2 7th Avenue Avenue Melrose Pine Street Avenue Bellevue Battery Street Vine Street Elliott Avenue East Union Street Boren Avenue East Union Street Blanchard Street Virginia Street Terry Avenue Lenora Street

Elliott Avenue Pike Street East Spring Street 6th Avenue

8th Avenue Stewart Street 5th Avenue 9th Avenue East Madison Street 4th Avenue Alaskan Way 3rd Avenue Spring Street

7th Avenue 12th Avenue 1st Avenue Marion Street

Pine Street 2nd Avenue Broadway East Cherry Street Year University Street Cap Buyer Property Name Address Units NRSF WesternPrice Avenue Sale Date $/Unit $/NRSF Built Rate8th Avenue Seller Columbia Street East James Court Invesco RE East James Way Martin 2105 5th Avenue 2013 188 189,708 $114,000,000 10/8/2014 $606,383 $600.92 4.7% East Barclay Court 1 Vulcan Real Estate Seneca Street Madison Street Invesco RE East Jefferson Street Joseph Arnold Lofts 62 Cedar Street 2013 132 99,880 $68,500,000 4/28/2014 $518,939 $685.82 4.1% 2 Spring Street Schuster Group

Average 2013 160 144,794 $91,250,000 $562,661Marion Street$643 4.4%

Columbia Street 9th Avenue Madison Street James Street East Alder Street Seattle Alder Street 28 Colliers International Seattle East Spruce Street 2015 Seattle Apartment Market Study

Belltown Development Pipeline Deliveries 2015 2016 2017 2018 Future East Harrison Street

2015 2016 2017 2018 FUTURE BELLT 297 140 1,469 0 999 Numbers within circles on map below indicate size of development *Condo or potential condo East Thomas Street † Affordable housing projects not included in unit counts OW N

14th Avenue East 13th Avenue East Elliott Avenue West Belmont Avenue East

East John Street

Broad Street Broadway East 1st Avenue 1st Avenue North East John Street

2nd Avenue2nd North

Taylor Avenue 6th Avenue 6th Avenue North

8th Avenue 8th Avenue North Avenue North 9th Pontius Avenue Pontius Avenue North Fairview Avenue Fairview Avenue North Queen Anne Avenue NorthAnneQueen East Denny Way East Denny Way Denny Way Minor Avenue East Denny Way 150 Stewart Street

161 Belmont Avenue Terry Avenue Harvard Avenue Terry Avenue Avenue North Terry Boylston Avenue Boylston Avenue East Bay Street Avenue Warren North 100 Avenue WestlakeNorth

Elliott Avenue Dexter Avenue East Howell Street Western Avenue Wall Street

Westlake Avenue

Boylston Avenue Aurora Avenue

Cedar100 Street Nagle Place East Olive Way East Olive Street 327 Bell Street

8th Avenue Summit Avenue Battery Street Olive Way East Pine Street Vine Street 220*Bell Street 136 342* Clay Street Howell Street East Pike Street

433* 7th Avenue Avenue Melrose Pine Street Avenue Bellevue Battery Street 158 Vine Street 65† Elliott Avenue East Union Street Boren Avenue East Union Street Blanchard Street 324* Virginia Street Terry Avenue Lenora Street150 164 Elliott Avenue Pike Street East Spring Street 6th Avenue

100 8th Avenue Stewart Street 5th Avenue 9th Avenue East Madison Street 4th Avenue Alaskan Way 40 3rd Avenue Spring Street

7th Avenue 12th Avenue 1st Avenue Marion Street

Pine Street 2nd Avenue Broadway East Cherry Street Western Avenue University Street 8th Avenue Columbia Street East James Court East James Way East Barclay Court

Seneca Street Madison Street East Jefferson Street

Spring Street

Marion Street

Columbia Street 9th Avenue Madison Street James Street East Alder Street Seattle

Colliers International SeattleAlder29 Street East Spruce Street Northwest 68th Street

Northwest 65th Street North 65th Street Northeast 65th Street

40th Avenue West

Leary Avenue Northwest

North 56th Street 22nd Avenue Northeast West Cramer Street Northwest Market Street East Green Lake Way North Northeast 55th Street

5th Avenue Northeast

20th Avenue Northeast Illinios Avenue Northwest 54th Street Seattle Apartment Market Study North 52nd Street Avenue33rd Northeast 2015 Northwest 52nd Street Penny Drive 28th Avenue 28th Avenue Northeast Aurora Avenue Aurora Avenue North

Brooklyn Avenue Brooklyn Avenue Northeast Northeast 50th Street 60th Avenue 60th Avenue Northeast

31st Avenue West Leary Way Northwest North 48th Street 17th Avenue 17th Avenue Northeast Roosevelt Way Northeast Roosevelt Way North 46th Street 25th Avenue Northeast 2014 Queen Anne SalesBallard Bridge Northeast 45th Street

15th Avenue15th Northeast Northeast 41st Street

Texas Way Texas

25th Avenue25th West West Nickerson Street Gilman Avenue West

28th Avenue 28th Avenue West $354,942 $452 4.5% West Emerson Street AVG 7th Avenue Northeast Price per unit avg Price per SF Cap rate

2nd Avenue2nd Northeast

Stone Way North

15th Avenue 15th Avenue West Nickerson Street 45th Avenue 45th Avenue West North 34th Street QU EEN A NNE

Montlake Boulevard Northeast

North Pacific Street

WallingfordAvenue North Whalley Place West

11th Avenue Avenue West 11th West approach bridge north (WABN) 28th Avenue 28th Avenue West Westlake Avenue North

Magnolia Boulevard West 10th Avenue East

32ndAvenue West

30th Avenue30th West Harvard Avenue Harvard Avenue East West Halladay Street Prosch Avenue West 5 34th Avenue 34th Avenue West 15th Avenue 15th Avenue West East Lynn Street West Boston Street Boston Street 3rd Avenue 3rd Avenue West

West Newton Street 7th Avenue West 4 Eastlake Avenue East

MinorAvenue East Queen Anne Avenue Queen Anne Avenue North Blaine Street

Clise Place West

Magnolia Bridge 10th Avenue West

24thAvenue East 41st Avenue East Elliott Avenue West Avenue East 26th Lee Street

Comstock Street 39th Avenue East

Franklin Avenue East

3 East Aloha Street Valley Street Roy Street 2 Mercer Street East Madison Street 20thAvenue East 1 22nd Avenue East Harrison Street

26th Avenue

12th Avenue

5thAvenue West SR-99 SB Elliott Avenue 2nd Avenue East Denny Way Denny Way East Denny Way Broadway East

14thAvenue 16th Avenue 19th Avenue

23rd Avenue23rd Year Cap Buyer Property Name Address Units NRSF Price Sale Date $/Unit $/NRSF Built Rate Seller Robert Tandler Jax 500 3rd Avenue W 2014 76 60,654 $36,000,000 11/5/2014 $473,684 $593.53 3.1% 1 Continental Properties Olympic Investors Canvas 600 Elliot Ave W 2014 123 84,106 $44,969,250 9/1/2014 $365,604 $534.67 4.5% 2 Goodman Real Estate TIAA-CREF Stream Uptown 708 6th Avenue N 2012 118 72,734 $32,955,000 7/10/2014 $279,280 $453.09 5.2% 3 Stream Real Estate RREEF Queen Anne Towne 1900 Queen Anne Ave N 2014 107 123,044 $51,100,000 5/16/2014 $477,570 $415.30 4.7% 4 Emerald Bay Equity Viewpointe on Queen Timberlane Partners 2450 Aurora Avenue N 1987 112 76,534 $20,000,000 4/30/2014 $178,571 $261.32 4.9% 5 Anne Jim Lampman Average 2008 107 83,414 $37,004,850 $354,942 $452 4.5%

30 Colliers International Seattle Northwest 52nd Street West Commodore Way North 51st Street West Lawton Street Northwest 50th Street 2015 Seattle Apartment Market Study Illinios Avenue Northwest Leary Way

31st Avenue West North 46th Street Green Lake Way North Queen Anne Development PipelineNorthwest 45th Street Deliveries Northeast 45th Street 2015 2016 2017 2018 Future QU EEN A NNE

2015 2016 2017 2018 FUTURE 7th Avenue Northeast 5th Avenue 5th Avenue Northeast Leary Way Northwest North 43rd Street 15th Avenue 15th Avenue Northeast 265 283 56 0 Northeast Roosevelt Way 565

Oregon Avenue WayTexas North 42nd Street West Emerson Place Numbers within circles on map below indicate size of development North 41st Street West Roberts Way Northeast Memorial Way West Nickerson Street North 40th Street Gilman Avenue West West Emerson Street North 39th Street

4th Avenue Northeast4th Brooklyn Avenue Brooklyn Avenue Northeast

11th Avenue West North 35th Street

University Bridge Walla Walla Road Northeast Nickerson Street

Stone Way North

Montlake Boulevard Northeast 100 Carr Place North West Dravus Street East Gwinn Place

North Pacific Street 44th Avenue 44th Avenue West

West Barrett Street 26th Avenue West 24th Avenue West

3rd Avenue West East Hamlin Street 15th Avenue 15th Avenue West 28th Avenue 28th Avenue West Armour Street 22nd Avenue 22nd Avenue West 9th Avenue 9th Avenue West

West Viewmont Way West Prosch Avenue Prosch Avenue West

46thAvenue West West Halladay Street Westlake Avenue North East Louisa Street Magnolia Boulevard West

8th Avenue 8th Avenue West Queen Anne Drive

39th Avenue 39th Avenue West East Miller Street

Gilman Drive West West McGraw Street East Lynn Street East Lynn Street West Boston Street Boston Street

Eastlake Avenue Eastlake Avenue East East Crockett Street 15th Avenue 15th Avenue West

West Howe Street Avenue6th West Howe Street 5th Avenue 5th Avenue North

West Hayes Street 4th Avenue West Hayes Street East Garfield Street Magnolia Bridge Olympic Way West West Galer Street Galer Street

West Lee Street Queen Anne Avenue North 24th Avenue 24th Avenue East

Aurora Avenue NorthAvenue Aurora

Bellevue Avenue East 23rd Avenue 23rd Avenue West West Prospect Street Prospect Street

Aloha Street Fairview Avenue North 10th Avenue East East Aloha Street

Elliott Avenue WestWest77 Roy Street 150 Roy Street Avenue8th North Mercer Street Avenue19th East 33 31

37 70 176 212 Boylston Avenue East 45 SR-99 SB 20 82 56 John Street 80 23rdAvenue East 1st Avenue 1st Avenue North Denny Way

East Denny Way Broadway East East Denny Way

2ndAvenue North

9th Avenue9th North

Colliers International Seattle 31 2015 Seattle Apartment Market Study

2014 South Lake Union Sales

$307,210 $423 4.9% AVG Price per unit avg Price per SF Cap rate

Gilman Drive West SOU T H McGraw Street

AK E U N IO West McGraw Street East Lynn Street L West Boston Street Boston Street East Crockett Street Magnolia Boulevard West

6th Avenue6th West Blaine Street

4th Avenue4th West

HarvardAvenue East

Magnolia Bridge Avenue24th East 41st Avenue East

26th Avenue Avenue East 26th Galer Street

15th Avenue 15th Avenue West West Lee Street Queen Anne Avenue Queen Anne Avenue North

West Olympic Place Bellevue Avenue East

Aurora AvenueAurora North Fairview Avenue North East Helen Street

19th Avenue19th East 10th Avenue10th East East Aloha Street

McGilvra Boulevard East Elliott Avenue West

8th Avenue8th North Belmont Place East East Madison Street Mercer Street Mercer Street 21st Avenue East HarvardAvenue East Maiden Lane East SR-99 SB 1 1st Avenue1st North 23rd Avenue 23rd Avenue East 2 Avenue25th East Western AvenueDenny Way Denny Way East Denny Way Broadway East

35thAvenue East

9th Avenue9th North

27thAvenue East 8th Avenue 29thAvenue East 32ndAvenue East 5th Avenue 12th Avenue East

Madrona Drive Olive Way 2nd Avenue East Pike Street

7th Avenue

19th Avenue19th East Union Street

4th Avenue Alaskan Way

1st Avenue

East Cherry Street Broadway

34th Avenue34th East Jefferson Street Avenue36th Madison Street East Alder Street James Street WA 305 Seattle 25th Avenue Yesler WayEast Yesler Way 29th Avenue

31st Avenue31st South Jackson Street

Seattle Boulevard South Martin Luther King Junior Way South Weller Street

South Dearborn Street 1st Avenue 1st Avenue South

35th Avenue35th South 33rd Avenue 33rd Avenue South 23rd Avenue 23rd Avenue South

Alaskan Way SouthAlaskan Way South Norman Street

31st Avenue31st South 28th Avenue 28th Avenue South Property Year Edgar Martinez Drive South AvenueYakima South Cap Buyer Address Units NRSF Price Sale Date $/Unit $/NRSF Name Built Rate Seller Equity Residential Alcyone 301 Minor Avenue N 2004 161 120,577 $60,950,000 12/17/2014 $378,571 $505.49 4.7% 1 Vulcan Real Estate James Almon Borealis 109 Dexter Avenue N 2008 53 36,538 $12,500,000 11/20/2014 $235,849 $342.11 5.1% 2 Vulcan Real Estate Average 2006 107 78,558 $36,725,000 $307,210 $423 4.9%

32 Colliers International Seattle 2015 Seattle Apartment Market Study

South Lake Union Deliveries 2015 2016 2017 2018 Future

Development Pipeline 2015 2016 2017 2018 FUTURE L AK E U N IO

640 1,387 2,197 375 5,846 SOU T H Numbers within circles on map below indicate size of development *Condo or potential condo † Affordable housing projects not included in unit counts West Crockett Street East Newton Street

Yale Place East Newton Street East Howe Street Howe Street

Peach Court East East Blaine Street

4th Avenue4th West Hayes Street 66 East Galer Street East Olin Place West Garfield Street

Queen Anne Avenue NorthAnneQueen 6th Avenue North 67† Garfield Street Dexter Avenue North

8th Avenue8th West

9th Avenue9th West

6th Avenue 6th Avenue West Avenue5th West 10th Avenue10th West 62

West Galer Street Galer Street Comstock Place East Galer Street East Galer Street

Aurora Avenue NorthAvenue Aurora 158 51 Auburn Place East Olympic Way West 161 Grandview Place East 8th Place West

West Lee Street Federal Avenue East 800 Tower Place West Comstock Street Comstock300 Street

West Highland Drive Highland Drive 382 Prospect Street West Prospect Street

15th Avenue East15th

17th Avenue Avenue East 17th Avenue East21st

18th Avenue Avenue East 18th Avenue East 19th Avenue East 20th

South Warsaw Street

Fairview Avenue North Avenue East 10th Ward Street West Kinnear Place Belmont Avenue East West Aloha Street Aloha Street 500 8th Avenue Avenue North 8th East Aloha Street West Olympic Place 362 East Aloha Street

West Mercer Place Avenue East 11th Valley Street 12thAvenue East Valley Street East Valley Street West Roy Street 227 Valley Street Roy Street 5th Avenue North Roy Street 250 Taylor Avenue Avenue North Taylor Broad Street 204 West Mercer Street 377Mercer Street Mercer Street East Roy Street Elliott Avenue West Mercer Street TBD 118 340 49 200 211 Republican Street

4th Avenue4th West 3rd Avenue West

Terry Avenue North Terry 282

12th Avenue 12th Avenue East Avenue13th East Warren Avenue Avenue Warren North 244

294 AvenueMalden East SR-99 NB Harrison Street

375 Broadway East 260 Avenue10th East Western Avenue West East Thomas Street 328 Thomas Street 264 Boylston Avenue East 174 East Thomas Street 1st Avenue1st North 860 78 Melrose Avenue East East John Street Westlake Avenue Avenue Westlake North John Street 225 East John Court East John Street Broad Street 300

2nd Avenue2nd North

470Avenue9th North 238

Denny Way Westlake Avenue Pontius Avenue North East Denny Way Belmont Avenue East Denny Way Western Avenue Denny Way Harvard Avenue 1,085*Boren150 Avenue 11th Avenue 1st Avenue East Howell Street

14th Avenue 14th Dexter Avenue 13th Avenue

2nd Avenue Avenue Taylor Wall Street East Olive Way Terry Avenue Nagle Place

Vine Street 15thAvenue 16th Avenue 8th Avenue Olive Way 5th Avenue 10th Avenue

Alaskan Way Avenue 21st 7th Avenue 9th Avenue East Pine Street Avenue20th Broadway East Madison Street 3rd Avenue 4th Avenue Boylston Avenue Pine Street East Pike Street East Pike Street

19thAvenue

Colliers International Seattle 33 2015 Seattle Apartment Market Study

Mercer Street Northeast 16th Street

2014 CentralElliott Avenue District/Beacon Hill/Rainier Valley Sales Northeast 12th Street Northeast 10th Place / Northeast 10th Street Denny Way Madrona Drive Northeast 8th Street Overlake Drive West Vine Street Northeast 6th Place 23rd Avenue

T RIC Bellevue Summit Avenue 8th Avenue 15th Avenue $237,496 $291 5.4% Northeast 2nd Street 19th Avenue Broadway AVG Price per unit avg Price per SF Cap rate 12th Avenue Alaskan Way 17th Avenue Main Street Main Street Southeast 2nd Street 34th Avenue

Temple Place Temple Southeast 7th Street

123rd Avenue Southeast / N HI LL BE ACO

Seattle 25th Avenue 102nd Avenue 102nd Avenue Southeast

14th Avenue Erie Avenue Y LLE RAI N I E R VA C ENT RA L DIS South Jackson Street 30th Avenue Bellevue Way Southeast Bellevue Way

4th Avenue South Southeast 16th Street Harbor Avenue Southwest South3 Wadsworth Place1

West Mercer Way 112th Avenue Southeast

118th Avenue Southeast 118th 148th Avenue 148th Avenue Southeast 12th Avenue 12th Avenue South

Alaskan Way South Southeast 29th Street

36thAvenue South Southeast 30th Street

42nd Avenue Southwest

156th Avenue Southeast 132nd Avenue 132nd Avenue Southeast

6th Avenue 6th Avenue South South Waite Street

154thAvenue Southeast Mercer Island 26th Avenue 26th Avenue Southwest

13th Avenue 13th Avenue Southwest Southeast 40th Street Southeast 40th Street 47th Avenue Southwest Southeast 41st Street Beacon Avenue South

Southwest Spokane Street Swing Bridge 3rd Avenue South Gallagher Hill Rd

37th Avenue 37th Avenue Southwest Maple Lane 40th Avenue 40th Avenue Southwest

164thAvenue Southeast

9thAvenue South WA 99 48th Avenue 48th Avenue South Southeast 47th Street West Marginal Way Southwest 31st Avenue 31st Avenue South

24th Place South

129th Avenue Southeast South Columbian Way 41st Avenue 41st Avenue South Southeast 47th Place 38th Avenue 38th Avenue South

Martin Luther King Junior Way South

21st Avenue Southwest South Pearl Street South Hudson Street 1st Avenue 1st Avenue South South Farrar Street 132nd Avenue 132nd Avenue Southeast South Lucile Street South Orcas Street

Road D

Delridge Way Southwest Delridge Way 106th Avenue Southeast

44th Avenue 44th Avenue Southwest Rainier Avenue South

Island Crest Way

OhioAvenue South Airport Way South South Graham Street South Michigan Street East Marginal Way South Southeast 68th Street 26th Avenue 26th Avenue Southwest

16th Avenue16th Southwest Newcastle Golf Club Road

34thAvenue Southwest Southwest Othello Street Southeast 72nd Place

116th Avenue 116th Southeast Southwest Ida Street South Holden Street Ridgecrest Lane

South Kenyon Street 2 Seahawks Way Coal Creek Parkway Southeast

Year Cap Buyer Property Name Address Units NRSF Price Sale Date $/Unit $/NRSF Built Rate Seller 538 Lakeside Greystar RE Partners Shangri-La 1961 79 63,000 $23,125,000 9/11/2014 $292,722 $367.06 4.8% 1 Avenue S BlackRock Realty CBRE Investors Inc. Station at Othello Park 4219 S Othello Street 2011 351 244,594 $75,000,000 7/17/2014 $213,675 $306.63 5.1% 2 Othello Partners Pacific Urban Residential Verse 2201 S Jackson Street 2004 90 92,636 $18,548,240 4/28/2014 $206,092 $200.23 6.2% 3 Lorig Associates Average 1992 173 133,410 $38,891,080 $237,496 $291 5.4%

34 Colliers International Seattle 2015 Seattle Apartment Market Study

Central District/Beacon Hill/ Deliveries C ENT RA L DIS

2015 2016 2017 2018 Future RAI N I E R VA LLE Y Rainier Valley 2015 2016 2017 2018 FUTURE BE ACO N HI LL / 418 858 1,449 0 1,136 Development Pipeline Numbers within circles on map below indicate size of development † Affordable housing projects not included in unit counts

Mercer Street Northeast 16th Street T RIC

Elliott Avenue 51 157 Northeast 12th Street 64 Northeast 10th Street Northeast 10th Place/ Denny Way Madrona Drive 95 Northeast 8th Street 33 Overlake Drive West Vine Street Northeast 6th Place 23rd Avenue Bellevue Summit Avenue 20† 8th Avenue 15th Avenue 92 41 Northeast 2nd Street 19th Avenue Broadway 43 12th Avenue Alaskan Way 17th Avenue Main Street Main Street Southeast 2nd Street 34th Avenue

Temple Place Temple Southeast 7th Street 20 123rd Avenue Southeast

Seattle 25th Avenue 102nd Avenue 102nd Avenue Southeast 200 14th Avenue Erie Avenue

South Jackson Street 30th Avenue 120 35† 160 275 65† Southeast Bellevue Way

4th Avenue South Southeast 16th Street Harbor Avenue Southwest South Wadsworth Place

West Mercer Way 112th Avenue Southeast

118th Avenue Southeast 118th 148th Avenue 148th Avenue Southeast 12th Avenue 12th Avenue South

Alaskan Way South Southeast 29th Street

36thAvenue South Southeast 30th Street

42nd Avenue Southwest 112 156th Avenue Southeast 132nd Avenue 132nd Avenue Southeast

6th Avenue 6th Avenue South South Waite Street 47 111 154thAvenue Southeast 196 Mercer Island 26th Avenue 26th Avenue Southwest

13th Avenue 13th Avenue Southwest Southeast 40th Street Southeast 40th Street 47th Avenue Southwest Southeast 41st Street Beacon Avenue South

Southwest Spokane Street Swing Bridge 3rd Avenue South Gallagher Hill Rd

37th Avenue 37th Avenue Southwest Maple Lane 40th Avenue 40th Avenue Southwest

164thAvenue Southeast

9thAvenue South WA 99 95 48th Avenue South Southeast 47th Street West Marginal Way Southwest 31st Avenue 31st Avenue South

24th Place South

129th Avenue Southeast South Columbian Way 41st Avenue 41st Avenue South Southeast 47th Place 100 38th Avenue South

Martin Luther King Junior Way South 244 75 21st Avenue Southwest South Pearl Street South Hudson Street 1st Avenue 1st Avenue South 193 South Farrar Street 132nd Avenue 132nd Avenue Southeast South Lucile Street 120 150South Orcas Street Road D

Delridge Way Southwest Delridge Way 106th Avenue Southeast

44th Avenue 44th Avenue Southwest Rainier Avenue South

70 Island Crest Way

OhioAvenue South Airport Way South South Graham Street South Michigan Street 27 East Marginal Way South 108† Southeast 68th Street 26th Avenue 26th Avenue Southwest 16th Avenue16th Southwest 174 Newcastle Golf Club Road 34thAvenue Southwest Southwest Othello Street 177 Southeast 72nd Place 505 70† Avenue 116th Southeast Southwest Ida Street South Holden Street Ridgecrest Lane South Kenyon Street 67 34 13 Seahawks Way Coal Creek Parkway Southeast

Colliers International Seattle 35 2015 Seattle Apartment Market Study

2014 Greenlake/Wallingford/Fremont Sales

$280,864 $554 4.1%

AK E / AVG Price per unit avg Price per SF Cap rate

North 88th Street Northeast 88th Street

22nd Avenue Northwest

FR E MO NT Northwest 87th Street

GR EENL North 86th Street Northeast 86th Street

I N GFORD/ LL WA Northwest 85th Street North 85th Street Corliss Way North Northeast 85th Street Northeast 83rd Street North 82nd Street Northwest 82nd Street 43rd Avenue Northeast 12th Avenue Northeast Northeast 81st Place Northwest 80th Street 15th Avenue 15th Avenue Northeast

Northwest 77th Street 20th Place Northeast 15th Avenue 15th Avenue Northwest 20th Avenue 20th Avenue Northwest North 75th Street Northeast 75th Street 29th Avenue 29th Avenue Northwest 32nd Avenue 32nd Avenue Northwest

SeaviewAvenue Northwest

Northeast Ravenna Boulevard

Weedin Place Northeast 35th Avenue Northeast 31st Avenue Northeast Corliss Avenue Corliss Avenue North Aurora Avenue Aurora Avenue North Northwest 70th Street West Green Lake Drive North 24th Avenue 24th Avenue Northwest 18th Avenue Northwest Northwest 68th Street Alonzo Avenue Northwest North 67th Street

40th Avenue Northeast 8th Avenue 8th Avenue Northwest

10th Avenue10th Northwest 12th Avenue 12th Avenue Northwest Northwest 65th Street North 65th Street

38th Avenue Northeast 7th Avenue 7th Avenue Northwest Northwest 64th Street 3rd Avenue Northwest Northwest 62nd Street

PhinneyAvenue North 23rd Avenue 23rd Avenue Northeast

Leary Avenue Northwest North 58th Street 5th Avenue 5th Avenue Northwest 36thAvenue Northwest North Argyle Place East Green Lake WayNorth North 56th Street Bernie Whitebear Way Northwest Market Street Northwest 54th Street Northwest 52nd Street

Aurora Avenue NorthAvenue Aurora

BrooklynAvenue Northeast 40th Avenue Northeast West Commodore Way West Lawton Street North 50th Street Illinios Avenue

Northwest Leary Way 25th Avenue Northeast

31st Avenue West North 46th Street Green Lake Way North 1 Northwest 45th Street Northeast 45th Street 5th Avenue 5th Avenue Northeast

Roosevelt Way Northeast Leary Way Northwest 21st Place Northeast North 43rd Street 7th Avenue Northeast 15th Avenue 15th Avenue Northeast 20th Avenue 20th Avenue Northeast

Oregon Avenue WayTexas North 42nd Street West Emerson Place Memorial Way Northeast Memorial Way

27th Place West Avenue Northeast42nd West Nickerson Street North 40th Street Ballard Bridge Gilman Avenue West West Emerson Street Northeast Boat Street North 36th Street

14th Avenue West Douglas Road Northeast

6th Avenue6th Northeast

Property Year 11th Avenue West Cap Buyer Address Units NRSF Price Sale DateStone Way North $/Unit $/NRSF Name Built Rate Seller Walla Walla Road Northeast Nickerson Street North Northlake Way UDR Montlake Boulevard Northeast 1 Lightbox 4545 8th Avenue NE 2014 162 82,087 $45,500,000 8/29/2014 $280,864 $554.29East Gwinn4.1% Place West Barrett Street North Pacific Street Intracorp Companies West Barrett Street East Shelby Street Average 2014 162 82,087 $45,500,000 $280,864 $554 4.1% West approach bridge north (WABN) 28th Avenue 28th Avenue West 15th Avenue West 22nd Avenue 22nd Avenue West West Newell Street

Magnolia Boulevard West

36 Colliers International Seattle 2015 Seattle Apartment Market Study

Greenlake/Wallingford/Fremont Deliveries 2015 2016 2017 2018 Future WA LL I N GFORD/ wa ll i n gford /

Development Pipeline 2015 2016 2017 2018 FUTURE GR EENL gr eenl FR E MO NT 674 327 266 0 588 fr e mo nt Numbers within circles on map below indicate size of development † Affordable housing projects not included in unit counts ak e/ AK E / North 88th Street Northeast 88th Street Northwest 87th Street 22nd Avenue Northwest North 86th Street Northeast 86th Street Northwest 85th Street North 85th Street Corliss Way North Northeast 85th Street Northeast 83rd Street North 82nd Street Northwest 82nd Street 43rd Avenue Northeast 12th Avenue Northeast Northeast 81st Place Northwest 80th Street 34 15th Avenue Northeast

Northwest 77th Street 20th Place Northeast 15th Avenue 15th Avenue Northwest 20th Avenue 20th Avenue Northwest North 75th Street Northeast 75th Street 29th Avenue 29th Avenue Northwest 32nd Avenue 32nd Avenue Northwest

SeaviewAvenue Northwest 34 Northeast Ravenna140 Boulevard

Weedin Place Northeast 35th Avenue Northeast 31st Avenue Northeast Corliss Avenue Corliss Avenue North Aurora Avenue Aurora Avenue North Northwest 70th Street West Green Lake Drive North 62 24th Avenue 24th Avenue Northwest 18th Avenue Northwest Northwest 68th Street Alonzo Avenue Northwest 32 North 67th Street

40th Avenue Northeast 8th Avenue 8th Avenue Northwest

10th Avenue10th Northwest 12th Avenue 12th Avenue Northwest Northwest 65th Street North 65th Street

38th Avenue Northeast 7th Avenue 7th Avenue Northwest Northwest 64th Street 3rd Avenue Northwest Northwest 62nd Street

PhinneyAvenue North 23 23rd Avenue Northeast

Leary Avenue Northwest North 58th Street 5th Avenue 5th Avenue Northwest 36thAvenue Northwest North Argyle Place East Green Lake WayNorth North 56th Street Bernie Whitebear Way Northwest Market Street Northwest 54th Street Northwest 52nd Street

Aurora Avenue NorthAvenue Aurora

BrooklynAvenue Northeast 40th Avenue Northeast West Commodore Way West Lawton Street North 50th Street Illinios Avenue

Northwest Leary Way 25th Avenue Northeast

31st Avenue West North 46th Street Green30 Lake150 Way 42North 40 Northwest 45th Street Northeast 45th Street 5th Avenue 5th Avenue Northeast

Roosevelt Way Northeast Leary Way Northwest 21st Place Northeast North 43rd Street 7th Avenue Northeast 15th Avenue 15th Avenue Northeast

71† 20th Avenue Northeast

Oregon Avenue WayTexas North 42nd Street West Emerson Place Memorial Way Northeast Memorial Way

27th Place West Avenue Northeast42nd West Nickerson Street North 40th Street Ballard Bridge Gilman Avenue West 100 28 126 West Emerson Street Northeast Boat Street North 36th27 Street 14th Avenue West 64 35 279 Douglas Road Northeast

6th Avenue6th Northeast

11th Avenue West 126Stone Way North 119 56 Walla Walla Road Northeast Nickerson Street 279 North Northlake Way 77 Montlake Boulevard Northeast East Gwinn Place West Barrett Street North Pacific Street West Barrett Street East Shelby Street West approach bridge north (WABN) 28th Avenue 28th Avenue West 15th Avenue West 22nd Avenue 22nd Avenue West West Newell Street

Magnolia Boulevard West

Colliers International Seattle 37 2015 Seattle Apartment Market Study

Northeast 76th Street 2014 UNorthniversity 75th Street District Sales Northeast Park Place Northeast 75th Street Northeast 75th Street Northeast 74th Street

28th Avenue Northeast Northeast 73rd Place Northeast 73rd Street 32nd Avenue Northeast Y $233,569 $477 4.6% AVG Price per unit avg Price per SF Cap rate Northeast 70th Street

12th Avenue Northeast Northeast 70th Street Northeast 70th Street

T RIC Northeast Maple Leaf Place

Northeast Ravenna Boulevard Sportsfield Drive DIS North 66th Street T U N IV E RSI

52nd Avenue Northeast Northeast 65th Street Northeast 65th Street North 64th Street 1 North 62nd Street Kirkwood Place North Northeast 61st Street Northeast 60th Street

22nd Avenue 22nd Avenue Northeast Northeast Tulane Place

PrincetonAvenue Northeast

4th Avenue Northeast4th 40th Avenue 40th Avenue Northeast Northeast 56th Street 2

30th Avenue 30th Avenue Northeast Avenue Northeast34th 36th Avenue Northeast

North Clogston Way 26th Avenue Northeast Northeast Penrith Road

Brooklyn AvenueBrooklyn Northeast North 52nd Street

North 50th Street 20th Avenue Northeast Northeast 50th Street University Way Northeast University Way

Sand Point Way Northeast Green Lake Way North Northeast 47th Street 5th Avenue 5th Avenue Northeast

North 45th Street 25th Avenue Northeast Roosevelt Northeast Way Northeast 45th Street Northeast 44th Street

7th Avenue7th Northeast

North 43rd Street Northeast 43rd Street 3 Northeast 41st Street

Northeast 42nd Street Northeast Memorial Way Northeast 38th Street

North 39th Street Northeast Northlake Way Northeast 36th Street

Northeast Pacific Street Year Douglas Road Northeast Northeast 33rd Street Cap Buyer

Wallingford Avenue Avenue Wallingford North Property Name Address Units NRSF Price Sale Date $/Unit $/NRSF Built Rate Seller Walla Walla Road Northeast 1020 NE 63rd Equity Residential Montlake Boulevard Northeast

Stone Way North SquareOne 2014 112 57,864 $33,399,200 12/30/2014 $298,207 $577.20 4.0% 1 Street Intracorp North 35th Street North Northlake Way 1305 NE 43rd Gibraltar Investment University Manor 1928 80 50,426 $13,000,000 4/22/2014 $162,500 $257.80 3.7% 2 Street Carl Schaber/Gene & Marie Casal 5240 University FSC Realty Muriel's Landing 2012 100 40,253 $24,000,000 3/25/2014 $240,000 $596.23 6.0% 3 Way NE Schuster Group Average 1985 97 49,514 $23,466,400 $233,569 $477 4.6%

38 Colliers International Seattle 2015 Seattle Apartment Market Study

University District Northeast 76th Street Deliveries North 75th Street Northeast Park Place Northeast 75th Street 2015 2016Northeast2017 75th Street2018 Future

20th Place Northeast Development Pipeline 2015 2016 2017 2018Northeast 74thFU StreetTURE uN IV E RSI T DIS 28th Avenue Northeast Northeast 73rd Place Northeast 73rd Street Northeast 73rd Street 32nd Avenue Northeast 402 509 214 0 788 Northeast 73rd Street

Numbers within circles on map below indicate size of development T RIC † AffordableNortheast 72ndhousing Street projects not included in unit counts

Northeast 70th Street Northeast Maple Leaf Place Northeast Maple Leaf Place 12th Avenue Northeast Northeast 70th Street NortheastNortheast 71st Street 70th Street

Ravenna Avenue Northeast Northeast 71st Street Y

18th Avenue Northeast

16th Avenue Northeast 17th Avenue Northeast

Northeast Ravenna Boulevard

Northeast 70th Street Sportsfield Drive North 66th Street roosevelt Northeast 70th Street 5th Avenue 5th Avenue Northeast 109 Northeast 69th Street 75 52nd Avenue Northeast Northeast 65th StreetWeedin Place Northeast 79 Northeast 65th Street 5th Avenue Northeast Northeast 68th Street

Northeast Ravenna Boulevard 19th Avenue Northeast 20th Avenue Northeast North 64th Street 23rd Avenue Northeast

North 66th Street 260 Woodlawn Avenue Northeast Northeast 67th Street 12th Avenue Northeast

North 62nd Street 1stAvenue Northeast Kirkwood Place North SunnysideAvenue North

197 Roosevelt Way Northeast NortheastNortheast 66th 61st Street Street 110 Northeast 60th Street North 65th Street North 65th Street 200 220

22nd Avenue 22nd Avenue Northeast Northeast Tulane Place Northeast 65th Street 99 PrincetonAvenue Northeast

4th Avenue Northeast4th

22nd Avenue Northeast North 64th Street 40th Avenue Northeast North 64th Street Northeast 64th Street Oswego Place Northeast Northeast Naomi Place Northeast 56th Street 51 North 63rd Street 9th Avenue Northeast

30th Avenue 30th Avenue Northeast Avenue Northeast34th 36th Avenue Northeast

North Clogston Way 26th Avenue Northeast Northeast 63rd Street 70 North 62nd Street Northeast Penrith Road Brooklyn AvenueBrooklyn Northeast Northeast 62nd Street

North 52nd Street 105 21st Avenue Northeast 50† Northeast 61st Street 115 Woodlawn Avenue North 8thAvenue Northeast Keystone Place North

6th Avenue NortheastAvenue 6th

4th Avenue4th Northeast

20th Avenue Northeast North 50th Street Northeast 60th Street Northeast 50th Street Deliveries 25th Avenue Northeast 26th Avenue Northeast 60 Northeast University Way 56 126 2015 2016 2017 2018 Future 66 40 Northeast 59th Street Sand Point Way Northeast 11th Avenue Northeast

Green Lake Way North MeridianAvenue North Northeast 47th Street CorlissAvenue North

28th Avenue Northeast Northeast 58th Street 197 260 330 0Cowen Place Northeast384 168 Kensington Place North 184 33 20 Kenwood Place North Kirkwood Place North

5th Avenue 5th Avenue Northeast Northeast Park Road

North 45th Street 25th Avenue Northeast 27th Avenue 27th Avenue Northeast Roosevelt Northeast Way Northeast 45th Street Northeast 57th Street Northeast 44th Street

7th Avenue7th Northeast 20 Northeast 56th Street Northeast 56th Street 12th Avenue 12th Avenue Northeast

Brooklyn Avenue NortheastAvenue Brooklyn

15th Avenue NortheastAvenue 15th North 43rd Street 20th Avenue Northeast Northeast 43rd Street47 99 Northeast 41st Street

Northeast 42nd Street102 Northeast Memorial Way 60 37 Northeast 38th Street 62 214

North 39th Street Northeast Northlake Way Northeast 36th Street

Northeast Pacific Street Douglas Road Northeast Northeast 33rd Street Wallingford Avenue Avenue Wallingford North

Walla Walla Road Northeast

Montlake Boulevard Northeast

Stone Way North North 35th Street North Northlake Way

Colliers International Seattle 39 2015 Seattle Apartment Market Study

Harbor Avenue Southwest 2014 West Seattle Sales Edgar Martinez Drive South South Massachusetts Street

TTLE $218,958 $294 5.1% AVG Price per unit avg Price per SF Cap rate South Holgate Street 14th Avenue South 23rd Avenue 23rd Avenue South

T S E A Alki Avenue Southwest SturgusAvenue South S

Southwest Admiral Way W E

Utah AvenueUtah South South Stacy Street South Waite Street

Southwest Lander Street South East Marginal Way South Lander Street

Southwest Admiral Way 26th Avenue Southwest

Rainier Avenue South South Forest Street South Forest Street

46thAvenue Southwest

58thAvenue Southwest South Hanford Street 31st Avenue South

55th Avenue Southwest

Beacon Avenue South Southwest Spokane Street Swing Bridge South Spokane Street

63rdAvenue Southwest 59th Avenue 59th Avenue Southwest

23rdAvenue South

61stAvenue Southwest

49th Avenue49th Southwest Lafayette Avenue Lafayette Avenue South

40th Avenue 40th Avenue Southwest 37th Avenue Southwest South Industrial Way Glenn Way Southwest

24thAvenue South Southwest Dakota Street 15thAvenue South

1 2 Fauntleroy Way Southwest Southwest Idaho Street 25thAvenue South

53rd Avenue53rd Southwest 42nd Avenue 42nd Avenue Southwest

35th Avenue35th Southwest WA 99 South Columbian Way 2nd Avenue 2nd Avenue South

52nd Avenue52nd Southwest

Beach Drive Southwest Southwest Dawson Street

Airport Way South 1st Avenue 1st Avenue South

West Marginal Way Southwest

4th Avenue4th South

Year Cap Buyer South Lucile Street Property Name Address Units NRSF Price Sale Date $/Unit $/NRSF 29th Avenue South Built Rate Seller Abacus Capital GroupSouth Mead Street 1 Residences at 3295 3295 SW Avalon Way 2012 60 42,283 $15,500,000 6/24/2014 $258,333 $366.58 5.0% South Orcas Street

Fauntleroy Way Southwest Randolph Street RE Cap

15th Avenue15th South

17th Avenue17th South Granite Peak Partners Avenue20th South Westside Flats 3233 SW Avalon Way 1999 60 48,240 $10,775,000 1/17/2014 $179,583 $223.36 5.2% 2 Richard Powlesland Swift Avenue South Average 2006 60 45,262 $13,137,500 $218,958 $294 5.1% South Graham Street East Marginal Way South South Hardy Street

Delridge Way Southwest

CaliforniaAvenue Southwest

26th Avenue Southwest26th

48th Avenue48th Southwest Perimeter Road South 40 Colliers International Seattle Avenue Southwest16th 50th Avenue50th Southwest Southwest Mills Street Highland Park Way Southwest

22ndAvenue Southwest

18th Avenue Southwest18th

35th Avenue35th Southwest 33rd Avenue33rd Southwest Southwest Myrtle Street

38th Avenue Southwest38th Southwest Othello Street Ellis Avenue South

Covello Drive South 2015 Seattle Apartment Market Study

Harbor Avenue Southwest West Seattle Development Pipeline Deliveries Edgar Martinez Drive South

2015 2016 2017 2018 Future W E 2015 2016 2017 2018 FUTURE South Massachusetts Street S

1200 608 0 0 469 T S E A Numbers within circles on map below indicate size of development South Holgate Street 14th Avenue South 23rd Avenue 23rd Avenue South TTLE Alki Avenue Southwest SturgusAvenue South

Southwest Admiral Way

Utah AvenueUtah South South Stacy Street South Waite Street

Southwest Lander Street South East Marginal Way South Lander Street

Southwest Admiral Way 26th Avenue Southwest

Rainier Avenue South South Forest Street South Forest Street

46thAvenue Southwest

58thAvenue Southwest 136 South Hanford Street 31st Avenue South

46

55th Avenue Southwest 51 Beacon Avenue South Southwest Spokane Street Swing Bridge South Spokane Street

63rdAvenue Southwest 59th Avenue 59th Avenue Southwest

29 23rdAvenue South 61stAvenue Southwest

49th Avenue49th Southwest Lafayette Avenue Lafayette Avenue South

40th Avenue 40th Avenue Southwest 37th Avenue Southwest South Industrial Way Glenn Way Southwest

24thAvenue South Southwest Dakota Street 15thAvenue South 102 80 40

Fauntleroy Way Southwest 159 Southwest Idaho Street 25thAvenue South

53rd Avenue53rd Southwest 42nd Avenue 42nd Avenue Southwest 45 75 Avenue35th Southwest 38 WA 99 South Columbian Way 2nd Avenue 2nd Avenue South 52nd Avenue52nd Southwest 38 35 216 Beach Drive Southwest Southwest Dawson Street 88 203 151 389 Airport Way South 1st Avenue 1st Avenue South

206 100 West Marginal Way Southwest

4th Avenue4th South

South Lucile Street 29th Avenue 29th Avenue South

South Mead Street South Orcas Street

Fauntleroy Way Southwest

15th Avenue15th South

17th Avenue17th South 20 Avenue20th South Swift Avenue South South Graham Street East Marginal Way South South Hardy Street

Delridge Way Southwest

CaliforniaAvenue Southwest

26th Avenue Southwest26th

48th Avenue48th Southwest Perimeter Road South

30 Avenue Southwest16th

50th Avenue50th Southwest Southwest Mills Street Highland Park Way Southwest

22ndAvenue Southwest

18th Avenue Southwest18th

35th Avenue35th Southwest 33rd Avenue33rd Southwest Southwest Myrtle Street

38th Avenue Southwest38th Southwest Othello Street Colliers International Seattle 41 Ellis Avenue South Covello Drive South 2015 Seattle Apartment Market Study

23rd Avenue Northwest

25th Avenue Northwest Northwest 76th Street North 76th Street Northwest 75th Street North 75th Street

Dibble Avenue Northwest

11th Avenue Northwest

12th Avenue Northwest 2014 Ballard Sales 26th Avenue Northwest Northwest 74th Street Winona Avenue North

North 72nd Street Northwest 72nd Street 27th Avenue Northwest $343,373 $443 4.5% 16th Avenue 16th Avenue Northwest 24th Avenue 24th Avenue Northwest North 71st Street Jones Avenue Jones Avenue Northwest NorthwestAVG Canoe Pric Placee per unit avg Price per SF Cap rate ARD Northwest 70th Street

Northwest Sloop Place 5th Avenue Northwest North 68th Street A LL Northwest 69th Street 9th Avenue Northwest 8th Avenue Northwest

10th Avenue Northwest10th 14th Avenue 14th Avenue Northwest 13th Avenue Northwest

15th Avenue Northwest15th Mary Avenue Mary Avenue Northwest Alonzo Avenue Alonzo Avenue Northwest B

LindenAvenue North 33rd Avenue 33rd Avenue Northwest

Northwest 67th Street Woodland Place North Greenwood Avenue Greenwood Avenue North

34th Avenue Northwest34th North 66th Street

Northwest 65th Court Northwest 65th Street North 65th Street Northwest 64th Street Phinney Avenue Phinney Avenue North

Northwest 63rd Street AvenueSycamore Northwest Northwest 62nd Street 6th Avenue 6th Avenue Northwest

1st Avenue Northwest1st Northwest 61st Street Palatine Avenue North Northwest 61st Street

39th Avenue West Northwest 60th Street Northwest 59th Street North 59th Street

2nd Avenue Northwest2nd

3rd Avenue Northwest3rd 7th Avenue 7th Avenue Northwest

32nd Avenue Northwest North 57th Street West Sheridan Street Seaview Avenue Northwest Northwest 57th Street Shilshole Avenue Northwest Leary Avenue Northwest

Northwest Market Street Northwest 55th Street Bernie Whitebear Way Northwest 54th Street North 54th Street

Aurora Avenue NorthAvenue Aurora Northwest 54th Street Northwest 53rd Street Northwest 52nd Street West Commodore Way 1 Northwest 51st Street Texas Way Northwest 50th Street North 50th Street North 50th Street

Northwest Leary Way Northwest 48th Street North 48th Street Illinios Avenue West Lawton Street Northwest DockNorthwest Place Ballard Way Northwest Ballard Way Northwest 47th Street West McCord Place North 46th Street West Government Way Northwest 45th Street Northwest 45th Street North 45th Street Green LakeNorth Way 45th North Street

27th Avenue 27th Avenue West Leary Way Northwest Discovery Park Boulevard Discovery Park Boulevard

34th Avenue West 31st Avenue West Gilman Avenue West North 43rd Street 24th Avenue 24th Avenue West

Texas WayTexas

Year Cap Buyer Winslow Place North 22nd Avenue 22nd Avenue West 23rd Avenue 23rd Avenue West

Property Name Address Units NRSF Price 21st Avenue West Sale Date $/Unit $/NRSF North 41st Street Built Ballard Bridge Rate Seller

Northwest 40th Street Stone Way North CBRE Investors Inc. Broadstone Koi 1139 NW Market Street 2013 166 128,621 $57,000,000 6/2/2014 $343,373 $443.16 4.5% 1 Alliance Residential

Average 2013 166 128,621 $57,000,000 $343,373 $443 4.5%

42 Colliers International Seattle 2015 Seattle Apartment Market Study

Ballard Development Pipeline Deliveries

23rd Avenue Northwest 25th Avenue Northwest 2015 2016 2017 2018 Future 2015 2016 2017 2018 FUTURE Northwest 76th Street North 76th Street B

536 391 136 0 490 A LL Northwest 75th Street North 75th Street Numbers within circles on map below indicate size of development Dibble Avenue Northwest

11th Avenue Northwest

12th Avenue Northwest

26th Avenue Northwest *Condo or potential condo

† Affordable housing projects not included in unit counts ARD Northwest 74th Street Winona Avenue North

North 72nd Street Northwest 72nd Street 27th Avenue Northwest 16th Avenue 16th Avenue Northwest 24th Avenue 24th Avenue Northwest North 71st Street Jones Avenue Jones Avenue Northwest Northwest Canoe Place 90 Northwest 70th Street

Northwest Sloop Place 5th Avenue Northwest North 68th Street

Northwest 69th Street 9th Avenue Northwest 8th Avenue Northwest

10th Avenue Northwest10th 14th Avenue 14th Avenue Northwest 13th Avenue Northwest

15th Avenue Northwest15th Mary Avenue Mary Avenue Northwest Alonzo Avenue Alonzo Avenue Northwest

LindenAvenue North 33rd Avenue 33rd Avenue Northwest

Northwest 67th Street Woodland Place North Greenwood Avenue Greenwood Avenue North

34th Avenue Northwest34th North 66th Street

North 65th Street Northwest 65th Court Northwest 65th Street 72 24 Northwest 64th Street 63 Phinney Avenue Phinney Avenue North

Northwest 63rd Street AvenueSycamore Northwest Northwest 62nd Street 30

40 6th Avenue Northwest

1st Avenue Northwest1st Northwest 61st Street Palatine Avenue North Northwest 61st Street 39th Avenue West Northwest 60th Street 25 Northwest 59th Street North 59th Street

2nd Avenue Northwest2nd

3rd Avenue Northwest3rd 7th Avenue 7th Avenue Northwest

32nd Avenue Northwest 20* North 57th Street West Sheridan Street Seaview Avenue Northwest Northwest 57th Street Shilshole Avenue Northwest84 105 Leary Avenue Northwest51†136 48 106* 38* 117* Northwest Market Street Northwest 55th Street Bernie Whitebear Way 303 Northwest 54th Street North 54th Street

Aurora Avenue NorthAvenue Aurora Northwest 54th Street Northwest 53rd Street Northwest 52nd Street West Commodore Way 81 Northwest 51st Street Texas Way Northwest 50th Street North 50th Street North 50th Street

Northwest Leary Way Northwest 48th Street North 48th Street Illinios Avenue West Lawton Street Northwest DockNorthwest Place Ballard Way Northwest Ballard Way Northwest 47th Street West McCord Place North 46th Street West Government Way Northwest 45th Street Northwest 45th Street North 45th Street Green LakeNorth Way 45th North Street

27th Avenue 27th Avenue West Leary Way Northwest Discovery Park Boulevard Discovery Park Boulevard

34th Avenue West 31st Avenue West Gilman Avenue West North 43rd Street 24th Avenue 24th Avenue West Texas WayTexas 171

Winslow Place North 22nd Avenue 22nd Avenue West 23rd Avenue 23rd Avenue West 21st Avenue 21st Avenue West North 41st Street Ballard Bridge

Northwest 40th Street Stone Way North

Colliers International Seattle 43 2015 Seattle Apartment Market Study

2014 West Bellevue Sales $267,045 $355 5.3% AVG Price per unit avg Price per SF Cap rate

Northeast 17th Street

VU E T BELLE Clyde Lane

80th Avenue Northeast

S Northeast 16th Street Northeast 16th Place W E Laurel Lane Northeast 15th Street Northeast 15th Place Northeast 14th Street

116th Avenue Northeast 84th Avenue Northeast84th Northeast 13th Street 110th Avenue Avenue Northeast 110th Northeast 12th Street 120th Avenue Northeast

92nd Avenue Northeast

102ndAvenue Northeast 85th Avenue 85th Avenue Northeast Northeast 12th Place Northeast 12th Street Vineyard Crest 91st Avenue 91st Avenue Northeast Northeast 12th Street 1

111th Avenue Northeast 111th

101st Place Northeast

Sunset Way Hilltop Road Northeast 10th Street Park Road Northeast 10th Street Northeast 1st Street Lake Bellevue Drive

Bellevue Way Northeast Northeast 9th Place

101st Avenue Northeast101st

Northeast 8th Street Northeast 8th Street 103rd Avenue 103rd Avenue Northeast 110th Avenue Avenue Northeast 110th

97th Avenue Northeast

100th Avenue NortheastAvenue 100th

Highmoor Lane Northeast 7th Street

120th Avenue Northeast

119th Avenue Northeast Northeast 5th Street

Overlake Drive West Northeast 6th Street Northeast 6th Street Lake Washington Boulevard Northeast

Ridge Road 105th Avenue Northeast

106th Place Northeast Bellevue 106th Avenue Northeast

Northeast 4th Street

98th Place Northeast 107th Avenue Northeast Overlake Drive East Northeast 1st Street 108th Avenue Northeast Northeast 3rd Place

112th Avenue Northeast

102nd Avenue Northeast

103rd Avenue Northeast

114th Avenue Northeast 114th

107th Avenue Southeast

Groat Point Drive 114thAvenue Northeast

114th Avenue Southeast Bellevue Way Southeast Main Street Main Street

106th Avenue Southeast Southeast 1st Street 101st Avenue Southeast Property Year 105th Avenue Southeast Cap Buyer Address Units NRSF Price Sale Date $/Unit $/NSoutheastRSF 2nd Street Southeast 1st Street Name Built Rate SellerSoutheast 1st Street

Ellington at Essex Property Trust Avenue Southeast 118th 11200 NE 11th Street 1994 220 165,056 $58,750,000 8/18/2014 $267,045 $355.94 5.3% 1 Bellevue AvalonBay Average 1994 220Southeast 5th Street165,056 $58,750,000 $267,045 $355 5.3% Southeast 4th Street Shoreland Drive Southeast Southeast 4th Place

44 Colliers International Seattle 2015 Seattle Apartment Market Study

West Bellevue Development Pipeline Deliveries

2015 2016 2017 2018 Future W E 2015 2016 2017 2018 FUTURE S

1,003 638 401 1,375 2,177 T BELLE VU E Numbers within circles on map below indicate size of development *Condo or potential condo † Affordable housing projects not included in unit counts

Clyde Lane Northeast 17th Street

80th Avenue Northeast Northeast 16th Street Northeast 16th Place

Laurel Lane Northeast 15th Street Northeast 15th Place Northeast 14th Street

116th Avenue Northeast 84th Avenue Northeast84th Northeast 13th Street 110th Avenue Avenue Northeast 110th Northeast 12th Street 120th Avenue Northeast

92nd Avenue Northeast

102ndAvenue Northeast 85th Avenue 85th Avenue Northeast Northeast 12th Place Northeast 12th Street Vineyard Crest 91st Avenue 91st Avenue Northeast Northeast 12th Street 175 183 317 Avenue Northeast 111th

101st Place Northeast 290 Sunset Way Hilltop Road Northeast 10th Street Park Road Northeast 10th Street Northeast 1st Street 152 Lake Bellevue Drive Bellevue Way Northeast Northeast 9th Place 101st Avenue Northeast101st 135 260

Northeast 8th Street Northeast 8th Street 103rd Avenue 103rd Avenue Northeast 110th Avenue Avenue Northeast 110th 97th Avenue Northeast 1,000*

100th Avenue NortheastAvenue 100th

Highmoor Lane Northeast 7th Street

120th Avenue Northeast

119th Avenue Northeast Northeast 5th Street Northeast 6th Street Overlake Drive West 100 Northeast 6th Street Lake Washington Boulevard Northeast 240 Ridge Road 105th Avenue Northeast 100 106th Place Northeast Bellevue 231 106th Avenue Northeast

Northeast 4th Street

98th Place Northeast 148 107th Avenue Northeast Overlake Drive East Northeast 1st Street 108th Avenue Northeast Northeast 3rd Place

127 170 112th Avenue Northeast

102nd Avenue Northeast

103rd Avenue Northeast

114th Avenue Northeast 114th

353 107th Avenue Southeast 158 160 550 57† Groat Point Drive 130 256 114thAvenue Northeast 260 114th Avenue Southeast Bellevue Way Southeast 79 Main Street Main Street

20 106th Avenue Southeast Southeast 1st Street 101st Avenue Southeast

105th Avenue Southeast

Southeast 2nd Street Southeast 1st Street Southeast 1st Street 118th Avenue Avenue Southeast 118th

Southeast 5th Street Southeast 4th Street Shoreland Drive Southeast Southeast 4th Place

Colliers International Seattle 45 2015 Seattle Apartment Market Study

2014 Kirkland Sales no 2014 sales

A N D AVG Price per unit avg Price per SF Cap rate

Sand Point Way Northeast

55th Avenue Northeast 11th Avenue 10th Avenue Willows Road Northeast

54th Avenue Northeast KIRK L Northeast 90th Street

122nd Avenue Northeast

3rd Street 7th Avenue 118th Avenue Northeast Northeast 86th Court Market Street Northeast 85th Street 5th Avenue Redmond Way

51st Avenue Northeast

8th Lane 9 Lane Lake Street Central Way 2nd Avenue 154th Avenue Northeast

Northeast 65th Street 132ndAvenue Northeast Northeast 80th Place

Northeast 76th Street 5th Avenue South State Street South

Northeast 72nd Street Northeast 70th Place Northeast Penrith Road Northeast 70th Street Northeast 69th Street 2nd Street South Northeast 68th Street Northeast 67th Street Lake Street South Northeast 66th Court Northeast 65th Street Northeast 63rd Street Northeast 62nd Court

Northeast 59th Street Northeast 60th Street

144th Avenue144th Northeast

Bridlewood Circle

53rdAvenue Northeast Lakeview Drive

Northeast 52nd Street 140th Avenue Northeast Northeast 51st Street

Northeast 48th Place 108th Avenue Northeast

148thAvenue Northeast

Northeast 45th Court

Hunts Point Road Northeast 39th Street Northeast 40th Street 92nd Avenue 92nd Avenue Northeast

132ndAvenue Northeast Northeast Points Drive Northeast 37th Street

112th Avenue Northeast Avenue Northeast140th

Northeast 31st Place Northeast 32nd Street

Evergreen Point Road Northeast 30th Place 156th Avenue 156th Avenue Northeast

157th Avenue157th Northeast Northeast 28th Street 134th Avenue 134th Avenue Northeast Points Drive Northeast

135th Avenue135th Northeast Property Year Northeast 26th Place Cap 137th Avenue Northeast Buyer Address Units NortheastNRSF 26th Street Price Sale Date $/Unit $/NRSF Name Built Avenue Northeast 116th Rate Seller

Average

46 Colliers International Seattle 2015 Seattle Apartment Market Study

Kirkland Development Pipeline Deliveries 2015 2016 2017 2018 Future 2015 2016 2017 2018 FUTURE KIRK L 786 88 220 0 441 Numbers within circles on map below indicate size of development *Condo or potential condo

Sand Point Way Northeast

55th Avenue Northeast 11th Avenue A N D 10th Avenue Willows Road Northeast 54th Avenue Northeast 91 Northeast 90th Street

122nd Avenue Northeast

3rd Street 7th Avenue 118th Avenue Northeast Northeast 86th Court Market Street Northeast 85th Street 290 3505th Avenue Redmond Way

51st Avenue Northeast

8th Lane 9 Lane Lake Street Central Way 73 154th Avenue Northeast 220 2nd Avenue Northeast 65th Street 132ndAvenue Northeast Northeast 80th Place

Northeast 76th Street 5th Avenue South State Street South 88 Northeast 72nd Street Northeast 70th Place Northeast Penrith Road Northeast 70th Street Northeast 69th Street 2nd Street South Northeast 68th Street Northeast 67th Street Lake Street South Northeast 66th Court Northeast 65th Street Northeast 63rd Street Northeast 62nd Court

Northeast 59th Street Northeast 60th Street

144th Avenue144th Northeast

Bridlewood Circle

53rdAvenue Northeast Lakeview Drive

Northeast 52nd Street 140th Avenue Northeast Northeast 51st Street

Northeast 48th Place 108th Avenue Northeast

148thAvenue Northeast

Northeast 45th Court

Hunts Point Road Northeast 39th Street Northeast 40th Street 92nd Avenue 92nd Avenue Northeast 180 132ndAvenue Northeast 58* Northeast Points Drive 243 Northeast 37th Street

112th Avenue Northeast Avenue Northeast140th

Northeast 31st Place Northeast 32nd Street

Evergreen Point Road Northeast 30th Place 156th Avenue 156th Avenue Northeast

157th Avenue157th Northeast Northeast 28th Street 134th Avenue 134th Avenue Northeast Points Drive Northeast

135th Avenue135th Northeast Northeast 26th Street Northeast 26th Place 137th Avenue Northeast

116th Avenue Northeast 116th

Colliers International Seattle 47

2015 Seattle Apartment Market Study north KING :: MARKET OVERVIEW n or n or t h ki n g t h ki n g Bothell Shoreline North Seattle

Market Snapshot $ % $1.53 2.8% 1,399 avg rent per s f avg vacancy average 2015-2018 d eliverie s

Colliers International Seattle 49 2015 Seattle Apartment Market Study

north king

Mountlake Terrace Paradise Lake Road Timber Lane 228th Street Southwest North King neighborhoods have received Cedar Way 228th Street Southeast Brier Road

15th Avenue Northeast significantly less attention than their urban Highway 99 238th Street Southeast

Locust Way 100thAvenue West Northeast 205th Street

Carter Road counterparts. Yet due to overwhelmingly 23rd Avenue West 7th Place West

4th Place West positive market fundamentals, these Northwest 195th Street

Northwest Richmond Beach Road markets have performed quite well over Northeast 187th Street Bothell

80th Avenue 80th Avenue Northeast Bothell Way Northeast the last several years—and 2014 is no Lake Forest Park Simonds Road Northeast shoreline

exception. Rent growth in the last year 1st Avenue Northeast Northeast 165th Street

Northeast 160th Street Mink Road Northeast t h ki n g neared 8% and these neighborhoods represent one of the lowest vacancy rates— n or currently at 2.8%. With a relatively small Greenwood Avenue North

development pipeline, these neighborhoods Avenue Northeast5th

132ndAvenue Northeast

Aurora Avenue Aurora Avenue North 24th Avenue Northeast Northeast 128th Street Avondale Road Northeast are forecasted to outperform the market. North 115th Street Northeast 124th Street

north seattle Juanita Drive Northeast

Northeast 112th Street

32nd Avenue Northwest

124thAvenue Northeast 156th Avenue 156th Avenue Northeast Roosevelt Way Northeast Roosevelt Way Forbes Creek Drive 15th Avenue 15th Avenue Northwest North 85th Street 18th Avenue Kirkland Northeast Novelty Hill Road

Central Way Northeast 85th Street

6th Street South Northeast 65th Street Redmond Way 25th Avenue 25th Avenue Northeast

Northwest Market Street 196th Avenue Northeast Redmond Texas Way 208thAvenue Northeast

Historical performance 2009 2010 2011 2012 2013 2014 Number of Sales 1 2 4 6 6 6 Sales Volume $5.6M $42.2M $51.2M $142.1M $107.5M $129.6M Average PPU $101,014 $124,413 $124,449 $161,080 $185,077 $180,081 Average PPSF $154 $126 $134 $164 $164 $236 Average Cap Rate 5.9% 6.4% 5.8% 5.8% 5.2% 5.2% Number of Deliveries 777 109 21 239 763 797

Sales: Buildings 50+ units

50 Colliers International Seattle 2015 Seattle Apartment Market Study market fundamentals North King$1,202 County $1.53 2.8% AVG RENT per unit AVG RENT per SF CURRENT VACANCY

1,399 2,706 Units delivered Units planned n or $1,400 8.00% t h ki n g

$1,200 7.00%

6.00% Vacancy Rate $1,000

5.00% $800 4.00%

Monthly Rent Monthly $600 3.00%

$400 2.00%

777 763 797 $200 593 485 1.00% 359 407 321 179 109 239 39 36 86 163 124 116 21 0 $0 0.00%

Market Rent Market Vacancy Market Rent Market Vacancy Units Delivered

Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com

Colliers International Seattle 51 2015 Seattle Apartment Market Study

employment Growth year-over-year growth (1,057) 620 2,087 440 1,390 north king JOBS JOBS JOBS JOBS JOBS 14,000 2010 2011 2012 2013 2014

Hottest & Coldest job growth in the last 10 years stem job Growth

10,500 2,980 professional/stem 26% in last 4 years t h ki n g n or -218 52% Fire in last 10 years

7,000 2010-2014 Percentage of total new jobs by industry

1% retail/servic e 7% JOBS

3,500

28% 39%

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Construction/Manufacturing Retail/Service Trade/Transportation/Utilities 12% Professional/STEM FIRE Education/Healthcare Government 13% *Due to incomplete employment data for Nov.-Dec. 2014, the existing data was annualized and trended by industry for the six different submarkets. Professional/STE M 52 Colliers International Seattle 2015 Seattle Apartment Market Study

2014 sales & sales trends

NORTH KING COUNTY SALES 2014 sales metrics

2020 2020

2010 2010 n or

2000 2000 t h ki n g Built Built

1990 1990 Year Year 1980 1980

1970 1970

1960 1960 $‐ $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $‐ $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00 Sale Price (PPU) Sale Price (PPSF)

NORTH KING COUNTY 2000-20142000‐ 2014Sa Salesles Graph Trends

$250 $236 8.0% 6.9% 6.7% 7.0% 6.5% 6.3% 6.4% $200 5.8% 5.9% 5.8% 5.8% $168 6.0% $164 $164 5.2% 5.2% 5.2% $152 $155 $154 5.1% 5.0% 4.8% $150 $136 $134 4.5% $126 $119 $115 Rate $112 4.0% Price/PSF $109 $102 $100 Cap

Sales 3.0%

2.0% $50 1.0%

$0 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Year

Colliers International Seattle 53 2015 Seattle Apartment Market Study

2014 North King Sales $180,081 $236 5.2% Bothell AVG Price per unit avg Price per SF Cap rate Buyer Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Seller

Northshore Matteson Companies 7000 NE 186th Place 2008 86 124,335 $22,100,000 9/22/2014 $256,977 $177.75 5.6% Townhomes Mosaic USA

Average 2008 86 124335 $22,100,000 $256,977 $177 5.6%

North Seattle t h ki n g Buyer Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Seller n or

Michael J Henry Remington Place 3025 NE 137th Street 1982 61 57,420 $8,950,000 9/30/2014 $146,721 $155.87 4.9% GenCare Lifestyle

10215 Greenwood Weidner Apt Homes Leilani 2013 273 174,895 $66,000,000 9/16/2014 $241,758 $377.37 4.9% Avenue N Goodman Real Estate

10770 Greenwood Weidner Apt Homes 107 on Greenwood 2013 56 30,744 $11,770,000 9/16/2014 $210,179 $382.84 5.0% Avenue N Goodman Real Estate

Thrive Communites Woodland Pointe 14359 Linden Avenue N 1978 112 71,881 $14,000,000 6/24/2014 $125,000 $194.77 5.4% Stratford Company

Sung Rhee Chameleon 3031 NE 137th Street 1965 68 52,742 $6,790,000 1/29/2014 $99,853 $128.74 5.6% Western Homes

Average 1990 114 77,536 $21,502,000 $164,702 $248 5.2%

54 Colliers International Seattle 2015 Seattle Apartment Market Study

North King Development Pipeline Deliveries 2015 2016 2017 2018 Future 2015 2016 2017 2018 FUTURE 593 321 485 0 2,026 Numbers within circles on map below indicate size of development *Condo or potential condo † Affordable housing projects not included in unit counts

Mountlake Terrace Paradise Lake Road Timber Lane 228th Street Southwest Cedar Way 228th Street Southeast Brier Road

15th Avenue Northeast Highway 99 238th Street Southeast n or

Locust Way 100thAvenue West Northeast 205th Street

Carter Road 108 23rd Avenue West t h ki n g 7th Place West

4th Place West Northwest 195th Street 146 Northwest Richmond Beach Road Northeast 187th Street 56 175 138 90 200 107 82

80th Avenue 80th Avenue Northeast Bothell Way Northeast Lake Forest Park Simonds Road Northeast

1st Avenue Northeast Northeast 165th Street

Northeast 160th Street Mink Road Northeast

129

39 65

Greenwood Avenue Greenwood Avenue North 105† 104 26 166 81 159

5th Avenue Northeast5th 37 152

132ndAvenue Northeast

Aurora Avenue Aurora Avenue North 24th Avenue Northeast 153 Northeast 128th Street Avondale Road Northeast North 115th Street Northeast 124th Street 24 300 180

Juanita Drive Northeast

Northeast 112th Street 32nd Avenue Northwest 36

124thAvenue Northeast 156th Avenue 156th Avenue Northeast Roosevelt Way Northeast Roosevelt Way 105 98 Forbes Creek Drive 20 145 15th Avenue 15th Avenue Northwest 200 North 85th Street 104 18th Avenue Kirkland Northeast Novelty Hill Road

Central Way Northeast 85th Street

6th Street South Northeast 65th Street Redmond Way

25th Avenue 25th Avenue Northeast Colliers International Seattle 55 Northwest Market Street 196th Avenue Northeast Redmond Texas Way 208thAvenue Northeast

2015 Seattle Apartment Market Study east KING :: MARKET OVERVIEW

East Bellevue Factoria Issaquah e as

Juanita t ki n g Redmond Woodinville

Market Snapshot $ % $1.62 3.8% 6,522 avg rent per s f avg 2015-2018 d eliverie s average vacancy average

Colliers International Seattle 57 2015 Seattle Apartment Market Study

east king

The Eastside markets of East King, much woodinville like Urban King, have experienced rental growth early in the current apartment juanita market cycle. Fueled by stellar job growth and relatively few deliveries of new

apartment units, these markets continue to redmond have increasing rental rates (8.4% growth y-o-y) and low vacancy (currently at 3.8%). Over 6,500 units are planned for delivery Bellevue East in the next 4 years, which may impact the rate of rent growth in specific sub-markets.

factoria T ki n g E AS issaquah

WA 900

Historical performance 2009 2010 2011 2012 2013 2014 Number of Sales No Data 5 5 17 7 9 Sales Volume No Data $105.5M $237.2M $580.3M $339.3M $422.2M Average PPU No Data $137,537 $163,340 $190,221 $247,646 $253,812 Average PPSF No Data $164 $198 $214 $275 $275 Average Cap Rate No Data 5.0% 5.1% 4.7% 4.7% 4.9% Number of Deliveries 1,111 482 0 577 565 415

Sales: Buildings 50+ units

58 Colliers International Seattle 2015 Seattle Apartment Market Study market fundamentals $1,485 $1.62 3.8% East KingAVG County RENT per unit AVG RENT per SF CURRENT VACANCY

6,522 3,150 Units delivered Units Planned

$1,600 9.00%

$1,400 8.00%

7.00% $1,200

6.00% eAS

$1,000 Vacancy Rate T ki n g 5.00% $800 4.00% 2,641 $600 3.00% Monthly Rent Monthly 1,701 $400 2.00% 1,130 1,111 1,236 944 763 711 577 565 $200 399 482 415 1.00% 211 350 60 0 59 0 $0 0.00%

Market Rent Market Vacancy Market Rent Market Vacancy Units Delivered

Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com

Colliers International Seattle 59 2015 Seattle Apartment Market Study

employment growth year-over-year growth east king (7,364) 6,160 897 4,105 4,506 JOBS JOBS JOBS JOBS JOBS

60,000 2010 2011 2012 2013 2014

55,000 Hottest & Coldest job growth in the last 10 years stem job

50,000 Growth

** 11,090 45,000 professional/stem 14% in last 4 years

40,000 -5,356 24% construction/ in last 10 years manufacturing 35,000

30,000 2010-2014 Percentage of total new T ki n g

JOBS jobs by industry E AS 25,000 1% Professional/STE M

20,000

15,000 26%

10,000 42%

5,000

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 12%

Construction/Manufacturing Retail/Service Trade/Transportation/Utilities Professional/STEM FIRE Education/Healthcare Government 19% *Due to incomplete employment data for Nov.-Dec. 2014, the existing data was annualized and trended by industry for the six different submarkets. ** Estimated 2004-2009 and 2011-2014 due to incomplete recording of NAICS code #51 educatio n/ healthcare 60 Colliers International Seattle 2015 Seattle Apartment Market Study

2014 sales & sales trends

EAST BELLEVUE 20142014 SALESsale GRAPHSs metrics

2020 2020 2015 2015 2010 2010 2005 2005 2000 2000 1995 1995 Built Built

1990 1990 Year Year 1985 1985 1980 1980

1975 1975 eAS

1970 1970 T ki n g 1965 1965 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 Sale Price (PPU) Sale Price (PPSF)

EAST KING COUNTY 2000-20142000‐2014 Sales Sa Graphles Trends

$300 8.0% $275 $275 7.4% 7.1% 7.0% $250 6.1% $214 6.0% 5.6% 5.6% $199 $194 $198 $200 5.0% 5.1% 4.8% 4.9% 5.0% 4.9% 5.0% 4.7% 4.7% $164 $164 4.4% Rate $150 $136 $136 4.0% PPSF $122 $115 $118 Cap $104 3.0% $100

2.0% $50 1.0% no sales data no sales $0 0.0% data no sales 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Year Colliers International Seattle 61 2015 Seattle Apartment Market Study 2014 East King Sales $253,812 $275 4.9% East Bellevue AVG Price per unit avg Price per SF Cap rate

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Essex Property Trust Piedmont 15309 NE 13th Place 1968 396 348,961 $76,750,000 5/2/2014 $193,813 $219.94 5.8% Carmel Partners

Greg Itkin & Marina Itkin Catalina 2210 132nd Avenue SE 1992 92 66,100 $16,383,765 2/1/2014 $178,084 $247.86 6.0% William Summers

Average 1980 244 207531 $46,566,883 $185,949 $233 5.9% Factoria Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Pacific Urban Residential Sofi at Somerset 13180 SE Newport Way 1986 144 133,668 $39,277,500 12/3/2014 $272,760 $293.84 4.0% Horizon Realty Investors

7311 Coal Creek Park- Friedkin Realty Group Newport Crossing 1990 192 157,824 $38,800,000 11/4/2014 $202,083 $245.84 4.6% way SE Security Properties

6802 Coal Creek Park- Friedkin Realty Group Karbon 1989 105 70,584 $19,100,000 8/15/2014 $181,905 $270.60 5.9% way SE Goodman Real Estate Inc

Average 1988 147 120,692 $32,392,500 $218,916 $270 4.8%

T ki n g Issaquah Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller E AS

Security Properties Gilman Square 360 NW Dogwood Street 1987 124 115,690 $23,000,000 6/30/2014 $185,484 $198.81 4.9% TRECAP Partners

Average 1987 124 1,156,690 $23,000,000 $185,484 $198 4.9% Juanita Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Waterscape UDR 11801 97th Lane NE 2013 196 217,055 $75,200,000 9/25/2014 $383,673 $346.46 4.7% Juanita Village M-M Properties

Average 2013 196 217,055 $75,200,000 $383,673 $346 4.7% Redmond Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Berkshire Group Elan Redmond 16325 Cleveland Street 2013 134 152,556 $49,900,000 12/10/2014 $372,388 $327.09 4.0% Greystar/Resmark

Average 2013 134 $49,900,000 $372,388 $327 4.0% Woodinville Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Guardian Life Insurance Co Beaumont 14001 NE 183rd St 2008 344 300,624 $83,742,000 12/30/2014 $243,436 $278.56 4.3% Boston Capital Corporation

Average 2008 344 $83,742,000 $243,436 $278 4.3%

62 Colliers International Seattle 2015 Seattle Apartment Market Study

East King Development Pipeline Deliveries 2015 2016 2017 2018 Future 2015 2016 2017 2018 FUTURE 1,769 2,815 1,317 621 1,166 Numbers within circles on map below indicate size of development *Condo or potential condo † Affordable housing projects not included in unit counts

237 125

125 80†

148 177 208 120 34 105 180 81 452 eAS

225 T ki n g 310 900 482 420 108 31 309 90

346

346 271 298 176 80 100 344 208 230 371 51

WA 900

Colliers International Seattle 63

2015 Seattle Apartment Market Study south KING :: MARKET OVERVIEW

Auburn Burien Des Moines Federal Way Kent Renton SOU T H ki n g Riverton/Tukwila sou t h ki n g SeaTac White Center

Market Snapshot $ % $1.20 3.5% 2,994 avg rent per s f avg vacancy average 2015-2018 d eliverie s

Colliers International Seattle 65 2015 Seattle Apartment Market Study

south king

We define South king by 9 neighboring markets that experienced steady rent growth Mercer Island in the last year, yet have trailed the rest of the

markets covered in this study. These markets Issaquah Snoqualmie were the last to recover from the 2008 Preston Recession, yet are now poised for continued WA 900 rent growth as a result of low vacancy and a white center North Bend

moderate development pipeline. Over the last Burien Renton Tukwila two years, these markets have experienced seatac significant job growth, which will ultimately help sustain rent appreciation. As an Hobart investment market, South King is one of the Des Moines

most active in the region, posting 23 sales in Kent

2014 of buildings larger than 50 units. Maple Valley WA 169 Covington

Federal Way Auburn

WA 509 SOU T H ki n g Historical performance 2009 2010 2011 2012 2013 2014 Number of Sales 5 9 11 15 14 23 Sales Volume $91.3M $118.6M $235.1M $280.9M $239.6M $592.8M Average PPU $101,014 $124,413 $124,449 $161,080 $185,077 $125,085 Average PPSF $94 $103 $110 $122 $114 $144 Average Cap Rate 7.4% 6.6% 6.5% 6.2% 6.5% 5.8% Number of Deliveries 476 428 487 272 186 335

Sales: Buildings 50+ units

66 Colliers International Seattle 2015 Seattle Apartment Market Study market fundamentals $1,029 $1.20 3.5% SouthAVG King R CountyENT per unit AVG RENT per SF CURRENT VACANCY

2,994 Units 2,184 Units Delivered Planned

$1,200 9.00%

8.00% $1,000 7.00% Vacancy Rate $800 6.00%

5.00% $600 4.00% Monthly Rent Monthly

$400 3.00% 1,968

2.00% SOU T H ki n g $200 698 561 474 476 487 348 473 376 428 335 328 1.00% 282 154 272 186 24 102 0 $0 0.00%

Market Rent Market Vacancy Market Rent Market Vacancy Units Delivered

Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com

Colliers International Seattle 67 2015 Seattle Apartment Market Study

employment growth year-over-year growth (8,158) 3,027 (5,635) 7,002 9,441 south king JOBS JOBS JOBS JOBS JOBS 85,000 2010 2011 2012 2013 2014

80,000 Hottest & Coldest 75,000 job growth in the last 10 years stem job Growth 70,000 13,351 65,000 Education/ 13% Healthcare in last 4 years 60,000

55,000 -5,132 32% construction/ in last 10 years manufacturing 50,000

45,000 2010-2014 Percentage of total new 40,000 jobs by industry

JOBS 35,000 educatio n/ 30,000 healthcare 28%

25,000 4%

20,000 SOU T H ki n g 15,000 10% 10,000

5,000

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 37% 19% Construction/Manufacturing Retail/Service Trade/Transportation/Utilities Professional/STEM FIRE Education/Healthcare Government 2%

*Due to incomplete employment data for Nov.-Dec. 2014, the existing data was annualized and trended by industry for the six different submarkets. retail/servic e

68 Colliers International Seattle 2015 Seattle Apartment Market Study

2014 sales & sales trends

SOUTH KING COUNTY 2014 SALES 2014 sales metrics

2020 2020 2015 2015 2010 2010 2005 2005 2000 2000 1995 1995 Built Built

1990 1990

Year 1985 Year 1985 1980 1980 1975 1975 1970 1970 1965 1965 $‐ $50,000 $100,000 $150,000 $200,000 $250,000 $‐ $50.00 $100.00 $150.00 $200.00 $250.00 Sale Price (PPU) Sale Price (PPSF)

SOUTH KING COUNTY

2000-2014 S2000ale‐ 2014s TrSALESends SOU T H ki n g

$160 9.0% 8.4% 8.4% $144 8.3% $140 8.0% 7.4% 7.4% $122 $118 6.7% 6.6% $115 $114 7.0% 6.5% 6.5% $120 $110 6.2% 6.2% $102 $103 5.8% 6.0% 5.7% 5.8% $94 $100 5.1% $84 $85 $77 5.0% Rate $80 $71 $70 $71 PPSF 4.0% Cap $60 3.0% $40 2.0%

$20 1.0%

$0 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Year

Colliers International Seattle 69 2015 Seattle Apartment Market Study 2014 South King Sales $125,085 $144 5.8% Auburn AVG Price per unit avg Price per SF Cap rate Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Landings at River's Trimark Property Group 1741 22nd Street NE 1976 120 111,660 14,050,000 11/18/2014 $117,083 $125.83 5.7% Edge Zanza & Company

Average 1976 120 $14,050,000 $117,083 $125 5.7% Des Moines Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Randolph Street Capital Marina Club 2445 S 222nd Street 1986 77 60,104 $7,650,000 11/17/2014 $99,351 $127.28 6.4% Mercer Capital Group

Curtis Capital Group Regatta 1145 S 216th Street 1983 86 66,594 $9,500,000 9/30/2014 $110,465 $142.66 5.8% Mercer Capital Group

Curtis Capital Group Spinnaker Landing 21620 14th Avenue S 1987 66 51,180 $7,200,000 9/30/2014 $109,091 $140.68 5.7% Mercer Capital Group

Average 1985 76 $8,116,667 $106,302 $136 6.0% Federal Way Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Fowler Property Acquisitions Pavilion 1900 SW Campus Drive 1990 518 493,854 $59,750,000 5/30/2014 $115,347 $120.99 6.4% Kennedy Wilson

Average 1990 518 $59,750,000 $115,347 $120 6.4% Kent Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Aspens at Prime Group 21010 39th Way S 2010 168 161,610 $28,950,000 10/15/2014 $172,321 $179.13 5.5% Ridgeview HPK LLC

Kennedy Wilson Rock Creek Landing 1024 N Central Avenue 1986 576 442,280 $58,000,000 7/30/2014 $100,694 $131.14 5.3% Holland Holdings

SOU T H ki n g Alliance Investments & Management Inc Forest Creek 24802 99th Place S 1989 92 74,708 $9,100,000 6/30/2014 $98,913 $121.81 5.5% Penni K Frederickson & Joseph Lackerdas

Average 1995 279 $32,016,667 $123,976 $144 5.4% Renton Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Jackson Square Properties Pebble Cove 17600 134th Avenue SE 1996 288 230,360 $49,500,000 12/17/2014 $171,875 $214.88 5.0% LACERA

Thrive Communites Borgata 420 S 50th Street 2002 83 93,720 $17,900,000 10/15/2014 $215,663 $190.99 4.7% Mosaic USA

Carriages at Fairwood TruAmerica Multifamily 15030 SE 179th Street 1988 400 436,583 $62,000,000 6/26/2014 $155,000 $142.01 5.9% Downs Berkshire Property Advisors

70 Colliers International Seattle 2015 Seattle Apartment Market Study

2014 South King Sales (Continued)

Renton cont. Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Fowler Property Acquisitions Grammercy 17425 120th Lane SE 1980 382 352,235 $41,500,000 6/11/2014 $108,639 $117.82 5.9% Passco RE Enterprises

SCS Development Copper Ridge 4600 Davis Avenue S 1983 325 253,175 $36,525,000 4/24/2014 $112,385 $144.27 6.0% Archon

TruAmerica Multifamily Montclair Heights 2223 Benson Road S 1989 174 200,548 $28,670,000 4/23/2014 $164,770 $142.96 5.1% Braddock & Logan

2101 SW Sunset Investors Mgmt Group Sunset View 1970 240 229,753 $21,920,000 3/14/2014 $91,333 $95.41 6.6% Boulevard Virtu Investments

Fowler Property Acquisitions Venue 1150 Union Avenue NE 1973 284 205,753 $24,125,000 2/13/2014 $84,947 $117.25 6.0% Longwell Company

Average 1985 272 $35,267,500 $138,076 $145 5.7% Riverton/Tukwila Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

5600 S 152nd Street Woodspear Properties Newport Heights 1985 80 60,400 $10,485,000 12/11/2014 $131,063 $173.59 5.7% Horizon Realty Advisors

5820 Southcenter David Li North Hill 1989 54 32,442 $4,819,000 5/30/2014 $89,241 $148.54 5.9% Boulevard Gencor Development

Friedkin Realty Group Park South 10101 8th Avenue S 1987 252 208,269 $29,820,000 5/29/2014 $118,333 $143.18 6.0% MG Realty Group SOU T H ki n g

Average 1987 129 $15,041,333 $112,879 $155 5.9% SeaTac Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Belvedere at Aspen Prime Belvedere West LLC 20982 39th Way S 2013 140 130,314 $28,000,000 10/15/2014 $200,000 $214.87 5.5% Heights Aspens Ridgeview LLC

Average 2013 140 130314 $28,000,000 $200,000 $214 5.5% White Center Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Pacific Living Properties Sunset Park 11202 2nd Lane SW 1988 124 100,354 $12,920,000 9/18/2014 $104,194 $128.74 5.8% Carl D Barnes

David & Mary Rogge Park Terrace 11020 16th Avenue SW 1968 53 39,600 $3,400,000 7/31/2014 $64,151 $85.86 7.0% Carolee Martin & Brice Martin

TruAmerica Multifamily Westhaven 2201 SW Holden Street 1987 190 152,050 $27,000,000 3/27/2014 $142,105 $177.57 5.8% Holland Partners

Average 1981 122 97,335 $14,440,000 $103,483 $130 6.2%

Colliers International Seattle 71 2015 Seattle Apartment Market Study

South King Development Pipeline Deliveries 2015 2016 2017 2018 Future 2015 2016 2017 2018 FUTURE 698 1,968 328 0 2,771 Numbers within circles on map below indicate size of development *Condo or potential condo † Affordable housing projects not included in unit counts

Mercer Island

61 Issaquah Snoqualmie

Preston 40 42 24 226† WA 900 North Bend 53 112† 23 144 179 24 101

80Burien Renton 162 225 Tukwila370 75 97 170 140

77† 77† 28 243

Hobart 50

500Des Moines 277 261 Kent 154 SOU T H ki n g Maple Valley WA 169 Covington 354 154 200

550

Federal Way 149 216 126Auburn

WA 509 200 293

72 Colliers International Seattle 2015 Seattle Apartment Market Study north snohomish :: MARKET OVERVIEW

Central Everett Paine Field Silver Lake S N OHOMISH S N OHOMISH Nor n or t h t h Market Snapshot $ % $1.19 5.1% 983 avg rent per s f avg vacancy average 2015-2018 d eliverie s

Colliers International Seattle 73 2015 Seattle Apartment Market Study

WA 92 North Snohomish Lake Stevens

North Snohomish is a tight collection of 3 markets. central Although Snohomish County is geographically larger than everett West Lake Stevens these markets suggest, we have limited our study to the

most active markets in this county. Rent growth in the WA 529 Clinton US 2 last year tops 7.3%, yet on a five year average, north Snohomish has the second lowest amount of rent growth Everett for the region. Vacancy rates has risen in the last year,

yet that is expected with such high rent growth. New Mukilteo development is hitting a peak in 2015, remaining modest at 983 units. The investment sales market was relatively moderate in 2014, with only 6 sales of buildings larger

than 50 units. Snohomish WA 99

silver lake

Paine field WA 96 Silver Firs

Admiralty Way

Mill Creek Monroe

Historical performance 2009 2010 2011 2012 2013 2014 Number of Sales No Data 2 4 8 6 6 t h Sales Volume No Data $27.8M $47.5M $207.8M $159.7M $191.3M Nor Average PPU No Data $106,372 $92,708 $105,388 $119,120 $136,761 S N OHOMISH Average PPSF No Data $117 $99 $109 $132 $148 Average Cap Rate No Data 6.8% 8.0% 7.4% 7.3% 5.9% Number of Deliveries 0 22 108 178 0 0

Sales: Buildings 50+ units 74 Colliers International Seattle 2015 Seattle Apartment Market Study market fundamentals $1,031 $1.19 5.1% CURRENT VACANCY North SnohomishAVG RENT County per unit AVG RENT per SF

983 308 Units Delivered Units Planned

$1,200 12.00%

$1,000 10.00%

$800 8.00% Vacancy Rate

$600 6.00%

Monthly Rent Monthly $400 4.00%

$200 983 2.00% 424 412 449 344 284 178 20 62 46 0 0 22 108 0 0 0 0 0 $0 0.00% S N OHOMISH Nor Market Rent Market Market Rent VacancyMarket Vacancy Units Delivered t h

Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com

Colliers International Seattle 75 2015 Seattle Apartment Market Study

employment growth year-over-year growth north snohomish (1,349) 3,905 1,309 1,791 1,565 55,000 JOBS JOBS JOBS JOBS JOBS 2010 2011 2012 2013 2014

50,000 ** Hottest & Coldest Construction/ job growth in the last 10 years Manufacturing 45,000 Job Growth 14,166 40,000 construction/ 9% manufacturing in last 4 years 35,000 -105 44% professional/stem in last 10 years

30,000 Construction/Manufacturing used due to aerospace industry being market driver.

25,000 2010-2014 Percentage of total new jobs by industry JOBS

20,000 3% 12% 15,000

10,000

39% 5,000 t h 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Nor S N OHOMISH Construction/Manufacturing Retail/Service Trade/Transportation/Utilities 46% Professional/STEM FIRE Education/Healthcare Government

*Due to incomplete employment data for Nov.-Dec. 2014, the existing data was annualized and trended by industry for the six different submarkets. ** Conway Pederson data was used as a supplement in 2012-2014 to account for missing NAICS code 33 Construct ion/ Manufacturing retail/servic e

76 Colliers International Seattle 2015 Seattle Apartment Market Study

2014 sales & sales trends

NORTH SNOHOMISH COUNTY 2014 sale2014s SALESmetrics

2010 2010

2005 2005

2000 2000

1995 1995 Built Built 1990 1990

Year 1985 Year 1985

1980 1980

1975 1975

1970 1970 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 Sale Price (PPU) Sale Price (PPSF)

NORTH SNOHOMISH COUNTY 2000-20142000 ‐ S2014ale SALESs Trends

$160 10.0% $148 9.3% 9.0% 9.0% $140 $135 $132 8.4% $127 8.0% 8.0% 7.5% $117 7.4% 7.3% $120 7.1% $109 6.8% 7.0% 6.7% 6.5% 6.7% $101 $99 5.9% 5.9% $100 6.0% $79 S N OHOMISH

$76 Rate $80 $75 $72 5.0%

Price/PSF $70 $67 Nor Cap 4.0%

Sales $60 3.0% t h $40 2.0%

$20 1.0%

$0 data no sales 0.0% data no sales 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Year

Colliers International Seattle 77 2015 Seattle Apartment Market Study

2014 North Snohomish Sales $136,761 $148 5.9% Paine Field AVG Price per unit avg Price per SF Cap rate

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Millington at Merrill 1401 Merrill Creek Security Properties 2006 344 336,504 $63,500,000 6/13/2014 $184,593 $188.71 5.3% Creek Parkway Invesco Real Estate

Lowe Enterprises Covington Farms 10115 Holly Drive 1989 352 339,074 $42,800,000 3/4/2014 $121,591 $126.23 5.8% Heitman

Average 1998 348 337,789 $53,150,000 $153,092 $157 5.6%

Silver Lake

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Coast Equity Partners Blu Water 11911 19 Avenue SE 1991 152 128,974 $25,500,000 12/10/2014 $167,763 $197.71 5.4% Grosvenor

Lowe Enterprises North Creek 11401 3rd Avenue SE 1986 264 227,568 $29,850,000 8/5/2014 $113,068 $131.17 5.7% Blackstone

Yan Ling Li Brentwood Park 10012 4th Avenue W 1976 55 24,982 $2,750,000 5/28/2014 $50,000 $110.08 7.3% Tritext Real Estate Advisors

Thayer Manca Residential Lakes by Mill Creek 13001 8th Avenue W 1986 223 193,591 $26,910,000 4/21/2014 $120,673 $139.00 6.1% Empire USA LLC

Average 1985 174 143,779 $21,252,500 $112,876 $144 6.1% t h Nor S N OHOMISH

78 Colliers International Seattle 2015 Seattle Apartment Market Study

North Snohomish Deliveries 2015 2016 2017 2018 Future Development Pipeline 2015 2016 2017 2018 FUTURE 983 0 0 0 1,163 Numbers within circles on map below indicate size of development *Condo or potential condo † Affordable housing projects not included in unit counts

WA 92

Lake Stevens

660 West Lake Stevens

WA 529 Clinton 220 102 US 2 140

Everett 34

Mukilteo

Snohomish

WA 99

136 100 S N OHOMISH

280 Nor WA 96

Silver Firs 201 51 180 t h

Admiralty Way

42

Mill Creek Monroe

Colliers International Seattle 79

2015 Seattle Apartment Market Study south snohomish :: MARKET OVERVIEW

Edmonds Lynnwood Mill Creek Mountlake Terrace Thrashers Corner

Market Snapshot $ S N OHOMISH

% S N OHOMISH $1.33 4.1% 1,812 avg rent per s f avg vacancy average 2015-2018 d eliverie s sou t h SOU T H

Colliers International Seattle 81 2015 Seattle Apartment Market Study

Mukilteo Speedway south Snohomish East Lowell Larimer Road Old Snohomish Monroe Road Silver Firs Evergreen Way 130th Street Southeast

We have defined the South Snohomish market Picnic Point Road Springhetti Road 136th Place Southwest Cathcart Way Connelly Road

Madison Way as 5 markets, just north of the King County line. State Highway 9 Southeast

These markets have not only experienced the 148th Street Southwest Puget Park Drive lynnwood Mill Creek highest year-over-year rent growth this past 156th Street Southeast

Bothell-Everett Highway Larch Way

44th Avenue West Seattle Hill Road year, topping 9%, they account for the highest 164th Street Southwest

Cascadian Way 164th Street Southeast 5-year cumulative rent growth in the region—a 169th Street Southeast 168th Street Southeast

stunning 26.6%, amounting to just over 7.2% Maple Road 176th Street Southeast 180th Street Southeast North Road 184th Street Southwest High Bridge Road rent growth for 3 straight years. Vacancy rates Lynnwood Fales Road

Highway 99 Yew Way 88th Avenue 88th Avenue West 76thAvenue West Filbert Road 188th Street Southeast North Creek are all below 5%, with an average vacancy rate Filbert Drive Puget Drive 196th Street Southwest Welch Road

in 2014 of 4.1%. South Snohomish absorbed 200th Street Southwest Grannis Road BroadwayAvenue State Highway 522

51st Avenue Southeast51st 44th Avenue 44th Avenue West

a moderate amount of development over the Road York Cedar Valley Road Edmonds Poplar Way 208th Street Southeast 212th Street Southwest Logan Road Maltby Road last 5 years, with approximately 1,800 new Maltby Echo Lake Road mountlake terrace Alderwood Manor

units planned for the next 4 years. Sales were State Route 522 19th Avenue Southeast

Wachusett Road Atlas Road Edmonds Way 224th Street Southeast Mountlake Terrace 228th Street Southwest Paradise Lake Road moderate in 2014, with only 7 sales of buildings Cedar Way 228th Street Southeast 9th Avenue 9th Avenue Southeast

larger than 50 units. Aurora Avenue North Lakeview Drive

Brier Road 238th Street Southeast Timber Lane Timber

Ballinger Way Northeast Locust Way

100thAvenue West

Carter Road 7th Place West 4th Place West Northwest 195th Street

Northeast 187th Street 5th Avenue 5th Avenue Northeast Bothell

Kenmore 80th Avenue Northeast Shoreline Lake Forest Park

Historical performance 2009 2010 2011 2012 2013 2014 Number of Sales 1 2 6 6 2 7 Sales Volume $7.4M $18.9M $206.6M $92.6M $107.9M $234.2M Average PPU $105,714 $88,120 $120,638 $107,102 $192,176 $161,160 Average PPSF $112 $109 $134 $137 $177 $198 Average Cap Rate 6.2% 6.2% 5.8% 5.5% 4.7% 5.4% Number of Deliveries 132 0 82 464 441 800

Sales: Buildings 50+ units

82 Colliers International Seattle S ou t h S N OHOMISH 2015 Seattle Apartment Market Study market fundamentals

South Snohomish$1,189 County $1.33 4.1% AVG RENT per unit AVG RENT per SF CURRENT VACANCY

1,812 Units 1,919 Units Delivered Planned $1,400 9.00%

8.00% $1,200 7.00% $1,000 6.00% Vacancy Rate

$800 5.00%

$600 4.00%

Monthly Rent Monthly 3.00% $400 1,303 2.00% 995 $200 800 438 394 464 441 410 407 1.00% 168 0 123 0 26 0 132 0 82 0 $0 0.00%

Market Rent Market Vacancy Market Rent Market Vacancy Units Delivered

Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com S N OHOMISH sou t h

Colliers International Seattle 83 2015 Seattle Apartment Market Study

employment growth year-over-year growth south snohomish (1,123) 114 3,185 2,249 1,688 JOBS JOBS JOBS JOBS JOBS

25,000 2010 2011 2012 2013 2014

Hottest & Coldest stem job job growth in the last 10 years Growth

20,000 6,371 education/ 4% healthcare in last 4 years -1,426 32% Government in last 10 years

15,000

2010-2014 Percentage of total new jobs by industry JOBS

retail/servic e 10,000 1% 3%

5,000 38%

55%

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Construction/Manufacturing Retail/Service Trade/Transportation/Utilities 3% Professional/STEM FIRE Education/Healthcare Government

*Due to incomplete employment data for Nov.-Dec. 2014, the existing data was annualized and trended by industry for the six different submarkets. educatio n/ healthcare 84 Colliers International Seattle S ou t h S N OHOMISH 2015 Seattle Apartment Market Study

2014 sales & sales trends

SOUTH SNOHOMISH COUNTY 2014 sales2014 m etSALESrics

2020 2020 2015 2015 2010 2010 2005 2005 2000 2000 1995 1995 Built Built

1990 1990 Year Year 1985 1985 1980 1980 1975 1975 1970 1970 1965 1965 $‐ $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $‐ $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 Sale Price / PPU Sale Price / PPSF

SOUTH SNOHOMISH COUNTY 2000-2014 S2000ale‐2014s Tr SALESends

$250 9.0% 8.1% 8.0% 7.6% $198 7.2% $200 7.0% 6.5% $177 6.3% 6.2% 6.2% 5.7% 5.8% 6.0% 5.6% 5.5% 5.4% $140 $150 $134 $137 5.0% 4.9% $128 5.0% 4.7% $121 Rate $112 Price/PSF $109 $109 $106 $100 4.0% $94 Cap $100 $90 Sales $75 3.0%

$50 2.0% 1.0%

$0 0.0% S N OHOMISH 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 sou t h Year Year

Colliers International Seattle 85 2015 Seattle Apartment Market Study

2014 South Snohomish Sales $161,160 $198 5.4% Mill Creek AVG Price per unit avg Price per SF Cap rate

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Olympic Investors Altia 16618 Larch Way 2013 230 162,294 $50,000,000 9/1/2014 $217,391 $308.08 5.0% Goodman Real Estate

Average 2013 230 $50,000,000 $217,391 $308 5.0%

Lynnwood

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Paul Stephanus Serra Vista 15517 40th Avenue W 1989 138 120,370 $20,010,000 12/19/2014 $145,000 $166.24 5.5% Archon Group

Helix Funds Martha Lake Apartments 16626 6th Avenue SW 1991 155 135,662 $20,300,000 11/25/2014 $130,968 $149.64 6.5% Equity Residential

Barbara H Stephanus Pinewood Square 6500 208th Street SW 1977 180 119,720 $20,275,000 10/22/2014 $112,639 $169.35 5.2% Bridge Investment Group

Fairfield Residential Newberry Square 16116 Ash Way 2005 123 113,717 $20,000,000 8/28/2014 $162,602 $175.88 5.3% Larry J Sundquist & Kenneth Achs

Apex Properties Group Heather Ridge 20407 68th Avenue W 1969 107 90,236 $12,150,000 2/21/2014 $113,551 $134.65 5.8% Weidner Apt Homes

Average 1986 141 115,941 $18,547,000 $132,952 $159 5.7%

Thrasher’s Corner

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Kennedy Wilson Bailey Farm 1225 183rd Street SE 2012 372 325,890 $91,500,000 3/21/2014 $245,968 $280.77 4.3% Wolff Company

Average 2012 372 $91,500,000 $245,968 $280 4.3%

86 Colliers International Seattle SOU T H S ou t h S N OHOMISH S N OHOMISH 2015 Seattle Apartment Market Study

South Snohomish Deliveries 2015 2016 2017 2018 Future Development Pipeline 2015 2016 2017 2018 FUTURE 995 410 407 0 1,307 Numbers within circles on map below indicate size of development *Condo or potential condo

Mukilteo Speedway East Lowell Larimer Road

Old Snohomish Monroe Road Silver Firs Evergreen Way 130th Street Southeast

Picnic Point Road Springhetti Road

136th Place Southwest Cathcart Way Connelly Road

Madison Way State Highway 9 Southeast

148th Street Southwest Puget Park Drive 90 Mill Creek 383 156th Street Southeast

Bothell-Everett Highway Larch Way 44th Avenue West 63 Seattle Hill Road 164th367 Street Southwest 120 Cascadian Way 164th Street Southeast 169th Street Southeast 168th Street Southeast 124 114 Maple Road 176th Street Southeast 180th Street Southeast 344 North Road 184th Street Southwest High Bridge Road Lynnwood Fales Road

Highway 99 Yew Way 88th Avenue 88th Avenue West 76thAvenue West Filbert Road 188th Street Southeast Filbert Drive North Creek Puget Drive 196th Street Southwest 345 Welch Road 200th Street Southwest Grannis Road BroadwayAvenue

State Highway 522

46 Avenue Southeast51st 44th Avenue 44th Avenue West

43 Cedar Valley Road Road York Edmonds 276 Poplar Way 208th Street Southeast 212th Street Southwest Logan Road 63 Maltby Road Maltby 89 Echo Lake Road Alderwood Manor

State Route 522

19th Avenue Southeast

Wachusett Road Atlas Road Edmonds Way 224th Street Southeast Mountlake Terrace 228th Street Southwest Paradise Lake Road 243 109 Cedar Way 228th Street Southeast 9th Avenue 9th Avenue Southeast

Aurora Avenue North Lakeview Drive

Brier Road 238th Street Southeast 300 Lane Timber Ballinger Way Northeast Locust Way

100thAvenue West

Carter Road 7th Place West 4th Place West Northwest 195th Street

Northeast 187th Street 5th Avenue 5th Avenue Northeast Bothell

Lake Forest Park Kenmore 80th Avenue Northeast

Shoreline S N OHOMISH sou t h

Colliers International Seattle 87 2015 Seattle Apartment Market Study

Data Sources

Rent & Vacancy Rates Dupre + Scott Sales Data Real Capital Analytics CoStar Dupre + Scott Pierce Eislen

Development Data City of Seattle Department of Planning MPF Research Real Capital Analytics Dupre + Scott Axiometrics CoStar

* Possible condo/apartment developments included in unit count numbers. ** Affordable/Public housing included on development maps; however, not included in unit counts.

Employment Data Puget Sound Regional Council Washington State Employment Security Department The Puget Sound Economic Forecaster

EMPLOYMENT DATA CALCULATIONS: In an effort to understand market behavior through job growth this study provides graphs setting forth job growth in our six subject submarkets, highlighting seven industry sectors (as set forth below). The figures represent number of jobs, not working persons and are representative of relative employment trends in each submarket and illustrate relative trends by industry. NAICS codes used: Construction & Manufacturing: 23, 31-33 Professional/STEM: 51, 54, 55 Government: Government Education/Healthcare: 61, 62, Education Trade Transportation & Utilities: 22, 42, 48, 49 FIRE: 52, 53 Unused NAICS codes: 11, 21, 56 Retail & Service: 44, 45, 71, 72, 81

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2015. All rights reserved.

88 Colliers International Seattle Seattle Multifamily Group

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Although we have brokered apartment transactions for almost 40 continuous INSIGHTS years in the Seattle market, our approach to the brokerage business is modern and dynamic. We perform all of the traditional tasks associated with apartment brokerage—yet our clients gain the advantage of modern advisory practices and services. [ information ]

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