Research & Forecast Report

TAMPA Accelerating success. Q3 2016 | Multifamily

Source: AXIOMetrics. RCA, CoStar

Market Survey Results and Forecasts Sequential Month Annual 4Q15 1Q16 2Q16 3Q16 Sep-16 2014 2015 2016F 2017F 2018F 2019F 2020F Effective Rent Per Unit $1,076 $1,085 $1,110 $1,126 $1,120 $991 $1,051 $1,111 $1,151 $1,181 $1,217 $1,262 Per Sq. Ft $1.13 $1.14 $1.17 $1.19 $1.19 $1.04 $1.11 $1.17 $1.21 $1.25 $1.28 $1.33 Effective Rent Growth - Annually 6.9% 6.6% 6.5% 5.6% 4.9% 3.3% 6.1% 5.7% 3.6% 2.6% 3.0% 3.7%

Effective Rent Growth - Quarterly 0.9% 0.9% 2.3% 1.5% Occupancy Rate 95.6% 95.5% 95.5% 95.4% 95.2% 94.8% 95.5% 95.5% 95.0% 94.7% 95.0% 95.3% Occupancy Change - Annually 0.6% 0.4% 0.0% -0.3% -0.5% 0.6% 0.7% 0.0% -0.5% -0.3% 0.3% 0.3% Occupancy Change - Quarterly -0.1% -0.1% 0.1% -0.1% Economic Concessions Concession Value $-3.40 $-4.53 $-3.60 $-3.23 $-3.18 $-8.64 $-3.74 As a % of Asking Rent -0.3% -0.4% -0.3% -0.3% -0.3% -0.9% -0.4% Q3 SALES

Date Property Name Address City Units Year Built Price in $ $/Units Sep-16 TGM Ibis Walk 871 Ibis Walk Pl N Saint 401 2014 68,000,000 169,576 Petersburg Sep-16 District on Clearwater 3021 State Rd 590 Clearwater 222 1991 / 1997 28,750,000 129,505 Sep-16 Riverside Palms 5008 Sierra Pl Tampa 351 1974 / 2013 19,000,000 54,131 Sep-16 Camden Lakes Phase I & 11401 Doctor M L K Jr St N Saint 688 1983 80,850,000 117,515 Phase II Petersburg Sep-16 Las Villas Apartments 1503 E 142nd Ave Tampa 50 1974 / 1993 2,700,000 54,000 Sep-16 Tampa Commons 5718 Las Ventanas Dr Tampa 42 2008 4,352,500 103,631 Sep-16 Pasco Woods 6050 Ryerson Cir Wesley Chapel 200 2000 15,308,190 76,541 Sep-16 Park Springs 300 Park Springs Cir Plant City 200 2000 / 2007 13,100,000 65,500 Sep-16 Landmark at Largo Crossing 305 Glades Cir Largo 304 1974 / 2011 23,150,000 76,151 Sep-16 Green Oaks of 6817 Interbay Blvd Tampa 100 1986 / 2012 6,400,000 64,000 Sep-16 The Villas of Bayshore 2307 S Clewis Ct Tampa 20 1958 / 1996 3,420,000 171,000 Sep-16 Park East 14609 Banyan Bluff Dr Tampa 192 1987 17,500,000 91,146 Sep-16 Palm River 710 Palm Bay Dr Tampa 70 1986 3,250,000 46,429 Sep-16 Puritan Place 7903 Holly Lea Ct Tampa 232 1973 11,045,202 47,609 Sep-16 Rivertree Landing 6909 Indian River Dr Tampa 228 1974 / 2004 10,854,767 47,609 Sep-16 Laurel Chase 1426 Marathon Key Dr Tampa 122 1968 4,875,000 39,959 Aug-16 The Place at Davis Island 401 Danube Ave Tampa 40 1972 5,000,000 125,000 Aug-16 Woodland Oaks 4201 49th St N Saint 92 1987 6,350,000 69,022 Apartments Petersburg Aug-16 Bay Isle Key Apartments 11850 Dr Martin Luther King Saint 582 1998 / 2004 93,750,000 161,082 St Petersburg Aug-16 Tampa Woods 5207 Belle Chase Cir Tampa 444 1985 58,000,000 130,631 Aug-16 The Mirasol 84 Davis Blvd Tampa 58 1925 / 1996 10,375,000 178,879 Aug-16 Sun Garden 4000 58th St N Saint 50 1966 3,600,000 72,000 Petersburg Jul-16 Arbor Lakes 6161 Memorial Hwy Tampa 356 1979 / 2009 28,250,000 79,354 Jul-16 The Enclave at Tranquility 9707 Tranquility Lake Cir Riverview 348 2010 48,750,000 140,086 Lake Jul-16 Westbury at Lake Brandon 1210 Westbury Pointe Dr Brandon 366 2002 49,600,000 135,519

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 2 SUPPLY AND DEMAND According to the Bureau of Labor Statistics, job growth in Tampa-St. Petersburg-Clearwater, FL Metro Area was 3.1% in August 2016, reflecting 38,200 jobs added during a 12-month period. The metro job growth figure was above the national number of 1.7%.

Axiometrics forecasts Tampa-St. Petersburg-Clearwater, FL Metro Area’s job growth to be 2.4% in 2017, with 30,288 jobs added. Job growth is expected to average 2.0% from 2018 to 2020, with an average of 27,246 jobs added each year.

On the supply side, permits for 5,626 multifamily units were issued in the 12 months ending in August 2016, down -418 units from the prior year’s sum. In terms of total residential housing, 16,484 units were permitted in the 12 months ending August 2016, an increase of 1,201 units from the prior year’s total.

Market Employment and Permitting Annual August-16 Annual Forecast 2013 2014 2015 Market National 2016F 2017F 2018F 2019F 2020F Employment (000s) 1,176.5 1,208.4 1,249.5 1,287.6 144,424.0 1,289.0 1,319.3 1,341.6 1,367.7 1,401.0 Job Gain (000s) 27.7 32.0 41.0 38.2 2,451.0 39.5 30.3 22.3 26.1 33.3 Job Growth (%) 2.4% 2.7% 3.4% 3.1% 1.7% 3.2% 2.3% 1.7% 1.9% 2.4% Total Residential Permitting 12,024 12,427 15,283 15,161 1,056,185 18,351 19,476 21,887 20,028 19,434 Relative Change 18.3% 3.4% 23.0% 14.2% 2.3% 20.1% 6.1% 12.4% -8.5% -3.0% Single Family Units Permitted 7,325 7,269 9,046 9,574 658,713 Relative Change 24.5% -0.8% 24.4% 23.5% 9.1% Multifamily Units Permitted 4,460 4,896 6,044 5,431 368,231 Relative Change 7.9% 9.8% 23.4% 3.3% -8.2% Multifamily as a % of Total 37.1% 39.4% 39.5% 35.8% 34.9% Demand/Supply Ratio Job Gain / Total Residential Units Permitted 2.7 2.7 3.3 2.9 2.4 2.6 1.7 1.1 1.2 1.7 Job Gain / Single Family Units Permitted 4.7 4.4 5.6 4.9 4.1 Job Gain / Multifamily Units Permitted 6.7 7.2 8.4 7.3 6.1

Multifamily Absorption and Supply Annual 3Q16 Annual Forecast 2013 2014 2015 Market National 2016F 2017F 2018F 2019F 2020F Total Units Absorbed 3,663 6,632 5,640 4,040 274,353 4,385 1,038 4,169 5,133 4,048 New Supply 3,717 4,012 3,987 3,658 367,859 4,558 3,956 4,747 4,026 3,204 Inventory Growth 0.9% 1.4% 1.3% 1.1% 1.4% 1.2% 1.5% 1.2% 1.4% 1.1%

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 3 IDENTIFIED SUPPLY As of October 16, 2016, Axiometrics has identified 3,565 apartment units scheduled for delivery in 2016, of which, 1,945 have been delivered. As a comparison, there were 3,550 apartment units delivered in 2015. Properties delivered to the market in the last 12 months have achieved an average asking rent of $1,519 per unit, or $1.57 per square foot. Effective rent has averaged $1,485, or $1.54 per square foot, resulting in an average concession value of $-33.21. As a comparison, existing properties in the market had an average asking rent of $1,130 per unit ($1.19 per square foot) and an average effective rent of $1,126 per unit, or $1.19 per square foot, in 3Q16. Concessions for existing properties averaged $-3.23.

Submarket Delivery Schedule Pipeline Delivery Schedule Pipeline Lease Up Trend Units Absorbed Asking Rent Effective Rent Top Submarkets 2014 2015 2016 Total Totals PPM Per Unit PSF Per Unit PSF Central St. Petersburg 375 260 408 1,043 125 15 $2,470 $2.24 $2,470 $2.24 Central Tampa 1,206 772 1,196 3,174 571 12 $1,699 $1.93 $1,628 $1.85 Clearwater 240 379 297 916 260 21 $1,446 $1.52 $1,421 $1.50 North St. Petersburg 651 278 929 132 16 $1,523 $1.39 $1,488 $1.36 Pasco County 421 421 374 1,216 276 13 $1,311 $1.21 $1,311 $1.21 Other 1,304 1,718 1,012 4,034 776 11 $1,348 $1.36 $1,321 $1.33 Tampa-St. Petersburg-Clearwater, FL 4,197 3,550 3,565 11,312 2,140 12 $1,530 $1.58 $1,496 $1.54 *Based on 2016 deliveries *Trend based on a trailing 12 month period

“We were extremely pleased with the East Region team and its ability to attract an incredible amount of interest in our 3 assets. The number of offers received and the end results exceeded our expectations. They have a talented group who was a pleasure to work with. Their performance stands out against any of the groups we work with nationally.” Nels Billsten, Vice President | CORE Realty Holding Management

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

33

6 2

29 61 24 47 48

50 34 39 10 35

7

12 54 44 70 13 59 69 Downtown 56 41 Tampa 36 4 16 68 5 57 15 37 67 26 11 3 30 51

23 60 1 53 Key 64 Lease-Up

Under Construction

Proposed SARASOTA 20

55 21 66 71 19 28 42 43 52 18 27 63 45 46 38

22 25 14 49 62 17 31 8 65 40 9

32

58

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 5 PIPELINE DETAIL

# Name Status Owner Address Market Units Lease Up 1 Aer Lease Up American Land Ventures 330 3rd Ave S Downtown St Petersburg 358 2 Alta Terra Bella Lease Up Wood Partners 23700 Viento Dr Land O' Lakes 311 3 Aura @ 4th Lease Up Bayfair Properties Inc 10980 Oak St NE Brighton Bay 150 4 Overlook at Crosstown Walk Lease Up Preferred Apartment Communities 10151 Iris Crosstown Dr Brandon 180 5 Pearce at Pavilion Lease Up Adler Realty Services LLC 3603 Pavilion Palms Cir Outer Southeast Tampa 250 6 The Retreat at Trinity Lease Up Trust for Rehabilitation and 11405 Billfish Cir Trinity 120 Apartments Nurturing 7 Tupelo Vue Lease Up Pinnacle Housing Group 525 Avenue G NW Winter Haven/Lake Wales 70 Units 1,439

Under Construction 8 1445 2nd St Under Construction Carter USA 1445 2nd St Sarasota 180 9 500 Under Construction Forge Capital Partners 500 Knights Run Ave Harbour Island 235 10 Aida Palms Under Construction Green Mills Aida St City of Lakeland 96 11 Alta at Magnolia Park Under Construction Wood Partners Faulkenburg Rd @ Outer Southeast Tampa 300 Progress Boulevard 12 Ariva Luxary Apartments Under Construction Highland City Gardens LLC 5190 Ariva Blvd Outlying Polk County 312 13 Asturia Multifamily Development Under Construction Hines Interests Limited 14721 State 54 Rd Outer Pasco County 322 Partnership 14 Aurora Under Construction The Richman Group 124 S Morgan St Downtown 351 15 Bainbridge Brandon Apartments Under Construction The Bainbridge Companies 10440 S Sanderling Brandon 194 Shores Dr 16 Belleview Biltmore Apartments Under Construction JMC Communities 221 Belleview Blvd South Clearwater 196 17 CitySide Apartments Under Construction Bruce Weiner 700 Coconut Ave Sarasota 228 18 Crescent Riverwalk Under Construction Crescent Communities, LLC 109 W Fortune Dr Uptown Tampa 394 19 Crescent Under Construction Crescent Communities, LLC 2202 N Lois Ave Carver City-Lincoln 374 Gardens 20 Echo Lake at Lakewood Ranch Under Construction Joseph and Vera Zilber Charitable 11502 Echo Lake Cir Suburban Manatee County 360 Foundation, Inc. 21 Grady Square Under Construction Wisdom Development Group, Inc. 2615 N Grady Ave Carver City-Lincoln 557 Gardens 22 Havana Square Under Construction Southern Roofing 400 N Rome Ave North 274 23 Hermitage Under Construction The Allen Morris Company 151 7th Ave NE Downtown St Petersburg 348 24 Integra Junction Under Construction Behnke Land Trust Number One 15175 Integra Jct Outer Pasco County 322 25 Janie's Garden III Under Construction Sarasota Housing Authority 2350 Central Ave Sarasota 72 26 M South Under Construction Pollack Shores Real Estate Group S Lois Ave Sun Bay South 297 27 Nine15 Under Construction Kress Square IV LLC 915 N Franklin St Uptown Tampa 362 28 Novus Westshore Under Construction Northwood Investors LLC 4310 W Spruce St Carver City-Lincoln 260 Gardens 29 Park at Wellington Under Construction Htg Land LLC 4369 Sunray Dr Northwest Holiday 220 30 Peridot Palms Weedon Island - Under Construction Forum St Petersburg Ltd. 10601 Gandy Blvd N Brighton Bay 361 Phase II 31 Sarasota Flats Under Construction Forge Capital Partners 1401 Fruitville Rd Sarasota 228 32 Springs at Bee Ridge Under Construction Continental Properties Company, Cattlemen Rd Sarasota 360 Inc. 33 Summerset Apartments Under Construction Beneficial Communities 6627 Fort King Rd Zephyrhills Area 96 34 Tapestry at Lake Park Under Construction Arlington Properties 18402 Tapestry Lake Cir Outer Northwest Tampa 177 35 The Addison at Tampa Oaks Under Construction North Bay Group, Inc. 13052 Tampa Oaks Blvd Temple Terrace 262 36 The Avenue Apartments Under Construction Village Partners 6720 S Ave Outlying Polk County 259 37 The Broadway at 66th Under Construction Theodore F Bertuca 12700 66th St Pinellas Park 258 38 The Fitzgerald Under Construction Florida Crystals Corporation 1211 E Kennedy Blvd 250 39 The Lodge Under Construction Oxford Properties 14059 Riveredge Dr Temple Terrace 300 40 The Manor at Harbour Island Under Construction The Related Companies 402 Knights Run Ave Harbour Island 340 41 The Nolen Under Construction Forge Capital Partners 901 Cleveland St South Clearwater 257

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 6 PIPELINE DETAIL, cont.

# Name Status Owner Address Market Units 42 The Point at Bella Grove Under Construction Waypoint Residential Services, 3415 Broadway Ave Whitfield 180 LLC 43 The Tempo at Encore Under Construction JMG Realty, Inc. 1102 Ray Charles Blvd 203 Units 9,785

Proposed 44 3015 N Dr Proposed BBC Rocky Point, LLC 3015 N Rocky Point Dr Outer Central Tampa 258 45 707 N Rome Ave Proposed Southport Financial Services, Inc. 707 N Rome Ave 86 46 AER in the Arts District Proposed Intowngroup 259 W Tyler St Uptown Tampa 344 47 Altis at Wiregrass Proposed The Altman Companies State Road 56 Wesley Chapel 375 48 Altis at Wiregrass Proposed Wiregrass Ranch Inc 28519 Florida 56 Wesley Chapel 375 49 Altis Grand Central Proposed The Altman Companies 504 W Grand Central Ave Alice Kelly's 314 50 Avalon Commons Lakeland Proposed Parkers Creek II, LLC 6410 Socrum Loop Rd City of Lakeland 108 51 Bermuda Bay Apartments Proposed Shamrock Realty Advisors S Westshore Blvd & W Port Tampa City 352 Pres 52 Gas Worx Proposed Phillips Development & Realty 1400 Channelside Dr Historic Ybor 1432 53 Grand Bohemian Apartments Proposed Greenfield Partners LLC N 2nd St Downtown St Petersburg 306 54 Harbor Bluff Senior Apartments Proposed Sci Funeral Serv Fla Inc 802 N Fort Harrison Ave North Clearwater 152 55 MetWest Apartments Proposed MetLife, Inc. 4050 W Boy Scout Blvd Carver City-Lincoln 254 Gardens 56 Mosaic @ Ft. Harrison Proposed Incore Residential 319 N Fort Harrison Ave North Clearwater 177 57 Palms of Pinellas Proposed Pinellas County Housing Authority 13101 S Belcher Rd Pinellas Park 92 58 Proposed MF/Office Proposed Skyway Group LLC 2907 W Bay to Bay Blvd /Palma 125 Ceia 59 Seazen Proposed ZOM, Inc. 7616 W Courtney Campbell Outer Central Tampa 272 Cswy 60 Skyline Fifth - Phase II Proposed Frank Guerra 3151 3rd Ave N Central Plaza 76 61 State Road 56 Proposed Forest City Enterprises, Inc. State Road 56 Wesley Chapel 275 62 Tampa Tribune Building Proposed The Related Companies 202 S Parker St Alice Kelly's 400 63 The Channel Club Proposed ECI Group 1115 E Twiggs St Channel District 323 64 The Lake Maggiore Proposed Capstone Apartment Partners 3049 6th St S Wilders 285 65 The Mark Proposed Kt State & Lemon Lllp State St Sarasota 157 66 The Pearl Proposed Capital 350 W Palm Ave 317 67 Waterside West Apartments Proposed ABC Capital Corporation 5320 S West Shore Blvd Sun Bay South 188 68 Westshore Ave Proposed BTI Partners Westshore Ave Sun Bay South 580 69 Westshore Ave Proposed BTI Partners Westshore Ave Sun Bay South 127 70 Westshore Ave Proposed BTI Partners Westshore Ave Sun Bay South 733 71 Apartments Proposed The Bainbridge Companies 1512 E 12th Ave Historic Ybor 240 Units 8,723

Total Units 19,974

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

WHO WE ARE

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

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

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

30,000 The East Region Multifamily Advisor Group provided Units sold since 2011 Broker representation to both the buyer and seller. Additionally, We provided the clients with market research, property marketing, and assisted through all negotiations. Grandville on Saxon We were successful in achieving the highest price on Orange City, FL , even prior to stabilization. $2.0B Units: 316 record in the Sarasota market Group gross transaction value in since 2011

Grand Reserve at Park Isle Clearwater, FL Units: 390

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

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

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

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

AT YOUR SERVICE

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