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Prepared For: Ms. Erica Beck, Vice President of Development Lloyd Companies 101 South Reid Street, Suite 201 Sioux Falls, South Dakota 57103

Project Number D1966PSMB July 20, 2015

Danter Company, LLC National Leaders in Real Estate Research 2760 Airport Drive | Suite 135 Columbus, OH 43219 614.221.9096 http://www.danter.com

Page 25 of 224 08/13/2015 TABLE OF CONTENTS

I. INTRODUCTION ...... I-1

A. OBJECTIVES ...... I-1 B. METHODOLOGY ...... I-1 C. DATA ANALYSIS ...... I-2 D. USES AND APPLICATIONS ...... I-2

II. SCOPE OF SURVEY ...... II-1

III. EXECUTIVE SUMMARY ...... III-1

IV. CONCLUSIONS ...... IV-1

A. INTRODUCTION ...... IV-1 B. EFFECTIVE MARKET AREA (EMA) ...... IV-1 C. PROJECT CONCEPT...... IV-2 D. SITE DESCRIPTION/EVALUATION ...... IV-4 E. RESIDENTIAL ANALYSIS ...... IV-11 F. APARTMENT DEMAND FACTOR ANALYSIS ...... IV-34 G. DEMOGRAPHIC AND ECONOMIC ANALYSIS ...... IV-39 H. RECOMMENDATIONS/ABSORPTION ...... IV-49

V. SITE AREA MAPS AND PHOTOGRAPHS ...... V-1

SITE EFFECTIVE MARKET AREA MAP ...... V-2 NEIGHBORHOOD MAP ...... V-3 SITE LOCATION MAP ...... V-4 COMMUNITY SERVICES MAP ...... V-5 SITE PHOTOGRAPHS ...... V-6

VI. FIELD SURVEY OF MODERN APARTMENTS ...... VI-1

Page 26 of 224 08/13/2015 VII. MODERN APARTMENT LOCATIONS AND PHOTOGRAPHS ...... VII-1

APARTMENT LOCATIONS REFERENCE MAP ...... VII-2 APARTMENT LOCATIONS MAP A ...... VII-3 APARTMENT LOCATIONS MAP B ...... VII-4 APARTMENT LOCATIONS MAP C ...... VII-5 SELECTED APARTMENT PHOTOGRAPHS ...... VII-6

VIII. AREA ECONOMY ...... VIII-1 A. EMPLOYMENT CONDITIONS ...... VIII-1 B. HOUSING STARTS ...... VIII-4

DEMOGRAPHICS

GLOSSARY ...... G-1

QUALIFICATIONS AND SERVICES ...... Q-1

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Page 27 of 224 08/13/2015 I. INTRODUCTION

A. OBJECTIVES

This study analyzes the feasibility of developing an apartment complex in Aberdeen, South Dakota using the low-income housing Tax Credit program. After fully discussing the scope and area of survey with Ms. Erica Beck of Lloyd Companies, the Danter Company, LLC undertook the analysis.

B. METHODOLOGY

The methodology we use in our studies is centered on three analytical techniques: the Effective Market Area (EMA)SM principle, a l00% data base, and the application of data generated from supplemental proprietary research.

The Effective Market Area (EMA) Principle—The EMA principle is a concept developed by the Danter Company, LLC to delineate the support that can be expected for a proposed development. An EMA is the smallest specific geographic area that will generate the most support for that development. This methodology has significant advantages in that it considers existing natural and manmade boundaries and socioeconomic conditions.

Survey Data Base—Our surveys employ a l00% data base. In the course of a study, our field analysts survey not only the developments within a given range of price, amenities, or facilities, but all conventional developments within the EMA.

Proprietary Research—In addition to site-specific analyses, Danter Company, LLC conducts a number of ongoing studies, the results of which are used as support data for our conclusions. Danter Company, LLC maintains a l00% data base of more than 1,500 communities, with each development cross-analyzed by rents, unit and project amenities, occupancy levels, rate of absorption, and rent/value relationships.

SM Service mark of Danter Company, LLC

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Page 28 of 224 08/13/2015 C. DATA ANALYSIS

This study represents a compilation of data gathered from various sources, including the properties surveyed, local records, and interviews with local officials, real estate professionals, and major employers, as well as secondary demographic material. Although we judge these sources to be reliable, it is impossible to authenticate all data. The analyst does not guarantee the data and assumes no liability for any errors in fact, analysis, or judgment.

The secondary data used in this study are the most recent available at the time of the report preparation.

In Section VII—Field Survey, we have attempted to survey l00% of all units. Since this is not always possible, we have also compared the number of units surveyed with the number of multifamily housing starts to establish acceptable levels of representation. All developments included in the study are personally inspected by a field analyst directly employed by the Danter Company, LLC.

The objective of this report is to gather, analyze, and present as many market components as reasonably possible within the time constraints agreed upon. The conclusions contained in this report are based on the best judgments of the analysts; we make no guarantees or assurances that the projections or conclusions will be realized as stated. It is our function to provide our best effort in data aggregation, and to express opinions based on our evaluation.

D. USES AND APPLICATIONS

Although this report represents the best available attempt to identify the current market status and future market trends, note that most markets are continually affected by demographic, economic, and developmental changes. Further, this analysis has been conducted with respect to a particular client's development objectives, and consequently has been developed to determine the current market's ability to support those particular objectives. For these reasons, the conclusions and recommendations in this study are applicable only to the proposed site identified herein, and only for the potential uses for that site as described to us by our client. Use of the conclusions and recommendations in this study by any other party or for any other purpose compromises our analysis and is strictly prohibited, unless otherwise specified in writing by the Danter Company, LLC.

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Page 29 of 224 08/13/2015 II. SCOPE OF SURVEY

A complete analysis of a rental market for a low-income housing Tax Credit project requires the following considerations: a field survey of conventional apartments; an analysis of area housing; telephone survey data; an analysis of the area economy; a demographic analysis; and recommendations for development.

Field Survey—Our survey of conventional apartments includes a cross-analysis of vacancies by rents, a survey of unit and project amenities, and a rent/value analysis.

Area Housing Analysis—We have conducted an analysis of housing demand that includes a study of support by both growth and internal mobility. Further, we have analyzed existing housing using the most recent census material.

Economic Analysis—Major employers, utilities, banks, savings and loans, and media that serve the area are listed in the study. The information gathered has been used to create a Community Services map showing school, shopping, and employment areas in relation to the proposed site.

Demographic Analysis—The study includes an analysis of social and demographic characteristics of the area, and a description of the area economy that includes income and employment trends.

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Page 30 of 224 08/13/2015 III. EXECUTIVE SUMMARY

This study evaluates the market potential to develop the 40-unit Central Villas low- income housing Tax Credit project for older adults (55+) in Aberdeen, South Dakota.

The subject site is located in the southern portion of Aberdeen. Specifically, the site will be on the east side of Merton Street South of Melgaard Road.

The proposed 40-unit Central Villas project will include 30 one-bedroom and 10 two- bedroom units within a two story, elevator equipped building. The Tax Credit rents at the property will be based on 30%, 40%, 50%, and 60% of the area median household income. The developer plans to offer 2 (5.0%) units to households with incomes at or below 30% of the area median household income, 3 (7.5%) units to households with incomes at or below 40% of the area median household income, 17 (42.5%) units to households with incomes up to 50% of the area median income, and 18 (45.0%) units to households with incomes at or below 60% of the area median household income.

The subject Central Villas project is anticipated to have units available by March 2017.

Our evaluation considers the current rental housing market, area demographic characteristics, projected growth, and the appropriateness of the site and site area for the subject development. Amenities, features, and services at the subject development are also considered.

Based on these factors, it is our opinion that a market exists for the 40-unit rental housing development at the subject site, assuming the project is developed as detailed in this report. Changes in the project’s site, rent, unit mix, amenities, floor plans, or opening date may invalidate these findings.

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Page 31 of 224 08/13/2015 The project is proposed as follows:

CENTRAL VILLAS MERTON STREET SOUTH ABERDEEN, SOUTH DAKOTA

PERCENT RENTS AT OPENING OF MEDIAN MAXIMUM HOUSEHOLD SQUARE ALLOWABLE UTILITY UNIT TYPE INCOME NUMBER FEET GROSS RENT GROSS ALLOWANCE COLLECTED One-Bedroom/ 30% 2 645 $376 $375 $0 $375 1.0 Bath Garden 40% 3 645 $502 $495 $0 $495 50% 9 645 $628 $585 $0 $585 60% 16 645 $753 $605 $0 $605 Two-Bedroom/ 50% 8 802 $753 $670 $0 $670 1.0 Bath Garden 60% 2 802 $904 $745 $0 $745 Total 40 *March 2017

 Rents will include gas heat, gas hot water, electric, as well as water, sewer, and trash collection. Tenants will be responsible for phone and cable. Because the property will include gas heat, gas hot water, electric cooking, and electricity, the collect rents at the proposed Central Villas project are the same as the gross rents. In addition, the rents for any projects that do not include all utilities in the collection of rent have been adjusted to gross rent which includes landlord-paid heat, hot water, electricity, water, sewer, and trash collection. Adjusting all rents to gross rent is used to more easily compare with existing market rents in the area.

 Each unit in the proposed development will include the following amenities:

 Range  Window blinds  Frost-free refrigerator  Carpeting/vinyl flooring  Dishwasher  Microwave  Washer and dryer  One-car garage (detached)  Washer and dryer hookup  Intercom entry  Central air conditioning

 Project amenities will include the following:

 Community room  Picnic area  Elevator  On-site management

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Page 32 of 224 08/13/2015  Based on our site inspection, the site is appropriate for the proposed development. A detailed site description and evaluation is on the proceeding pages.

ABSORPTION

 When responding to only age and income-qualified tenants, absorption for the 5 Tax Credit units at the 30% and 40% income levels will be leased within one month after opening. With advanced marketing, these units will be leased prior to opening.

 Absorption for the 35 Tax Credit units at the 50% and 60% income levels is expected to average 6 to 7 units per month, resulting in a 4.7 to 5.5 month absorption period to achieve a 95% occupancy level.

 The addition of tenants with Housing Choice Vouchers would accelerate the absorption.

HOUSEHOLD AND POPULATION GROWTH

POPULATION AND HOUSEHOLDS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA

POPULATION YEAR POPULATION HOUSEHOLDS PER HOUSEHOLD 1990 24,713 9,952 2.48 2000 25,268 10,768 2.35 Change 1990-2000 2.2% 8.2% - 2010 Census 25,941 11,364 2.28 Change 2000-2010 2.7% 5.5% - 2015 (Estimated) 27,429 12,160 2.26 2020 (Projected) 29,141 12,981 2.24 Change 2015-2020 6.2% 6.8% - Sources: The Danter Company, LLC 2000 Census ESRI, Incorporated

 As the previous table illustrates, the total population and households within the Aberdeen Site EMA increased between 1990 and 2000. During this time period, the total population increased 2.2% from 24,713 in 1990 to 25,268 in 2000. During this same time period, households increased 8.2% from 9,952 in 1990 to 10,768 in 2000. Both the total population and households are expected to continue to increase through 2020. The population is expected to increase by 1,712 (6.2%) between

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Page 33 of 224 08/13/2015 2015 and 2020 while households are expected to increase by 821 (6.8%) from 12,160 in 2015 to 12,981 in 2020.

FIELD SURVEY OF CONVENTIONAL APARTMENTS

 A total of 2,102 conventional apartment units in 52 projects were surveyed in the Aberdeen, South Dakota Site EMA. A total of 1,751 of these units are in 45 market- rate and Tax Credit developments. The remaining 351 units are in 7 subsidized developments. There are no vacant units among the 7 government subsidized projects.

 An additional 53 units are under construction within 3 new market-rate developments.

 Following is a distribution of market-rate, Tax Credit, and government subsidized units surveyed by unit type and vacancy rate:

SUMMARY OF CONVENTIONAL MARKET-RATE, TAX CREDIT, AND GOVERNMENT SUBSIDIZED APARTMENTS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MARKET-RATE UNITS

MARKET-RATE UNITS VACANCY MEDIAN UNIT TYPE NUMBER PERCENT RATE RENT Studio 81 5.2% 3.7% $314 One-Bedroom 536 34.4% 12.1% $499 Two-Bedroom 814 52.2% 7.9% $724 Three-Bedroom 127 8.2% 5.5% $1,310 Total 1,558 100.0% 8.9%

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Page 34 of 224 08/13/2015 TAX CREDIT UNITS

TAX CREDIT UNITS VACANCY MEDIAN UNIT TYPE NUMBER PERCENT RATE RENT One-Bedroom 61 31.6% 0.0% $470 Two-Bedroom 81 42.0% 3.7% $607 Three-Bedroom 47 24.4% 0.0% $778 Four-Bedroom 4 2.1% 0.0% $970 Total 193 100.0% 1.6%

GOVERNMENT SUBSIDIZED UNITS

GOVERNMENT SUBSIDIZED UNITS VACANCY UNIT TYPE NUMBER PERCENT RATE One-Bedroom 224 63.8% 0.0% Two-Bedroom 78 22.2% 0.0% Three-Bedroom 42 12.0% 0.0% Four-Bedroom 7 2.0% 0.0% Total 351 100.0% 0.0%

 In 2017, there will be an estimated 1,730 total households age 55 or older within the Site EMA with incomes between $9,000 and $32,160.

 Overall, the vacancy rate in the Aberdeen Site EMA is 8.1%. However, there are two projects that opened in March 2015 and are still in initial lease up. These two projects, Prairie Village Phase II (Map Code 38) and The Depot (Map Code 55) have a combined 60 units to lease, or 42.3% of all vacant units in the market.

 Phase II of Prairie Village opened in early March 2015 and includes 72 units, of which, 40 have been leased. Prairie Village Phase II has leased an average of 8.9 units per month since opening.

 The Depot opened on March 15, 2015 and includes 57 units, of which, 29 have been leased. The Depot has leased an average of 7.3 units per month since opening. It is of note that the rents at The Depot are among the highest in the market.

 When excluding the vacant units in lease up at Prairie Village and The Depot, the overall vacancy rate in the market is 4.0%. This an overall low vacancy rate and would indicate that the market is limited by lack of supply rather than lacking demand.

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Page 35 of 224 08/13/2015  The market-rate units in the EMA have an overall vacancy rate of 8.9%. However, when excluding the vacant units in lease up at the previously mentioned Prairie Village and The Depot, the overall vacancy rate among the market-rate units is 5.3%.

 The vacancy rate among the 193 Tax Credit units in the EMA is 1.6%. This is a very low vacancy rate and indicates that the affordable housing market is limited by supply rather than lacking demand.

 There are no vacancies among the 341 subsidized units in the market.

 The Site EMA apartment base contains a well-balanced distribution of one-, two-, and three-bedroom units, with 34.1%, 51.1%, and 9.9%, respectively.

 Rents in the EMA increased at an established average of 1.1% between January 2014 and July 2015.

INCOME-APPROPRIATE HOUSEHOLDS

 The 40 Tax Credit units at the subject Central Villas development will represent a rental housing alternative for 2.3% to 2.5% of all age- and income-appropriate households, depending on management’s criteria for qualifying potential renters.

 These are excellent ratios and indicate a good supply of potential household support. These ratios have been considered in establishing the anticipated absorption rates at the site.

 There are 5 existing Tax Credit properties in the site EMA. Combined, these 5 Tax Credit properties include a total of 193 Tax credit units.

 When the existing Tax Credit units in the Site EMA are also considered, the appropriate household income range is $10,500 to $46,620 (using a 40% rent to income ratio). This range is wider than the range for just the subject development due to the wider range of rents being charged when considering the existing property.

 Proposed and existing Tax Credit units will represent a rental housing alternative for 5.3% to 5.6% of all income-appropriate households, depending on management's criteria for qualifying potential renters. These ratios are considered excellent and have been considered in establishing the anticipated absorption rates at the site.

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Page 36 of 224 08/13/2015  The 2010 Census indicated that 39.5% of the area households were rentals. Of the estimated 4,484 renter households in 2010, an estimated 32.2% are age 55 or older. The reality is that at lower income levels, a higher ratio of renters is likely compared to the overall market. Within the Aberdeen Site EMA, this is reflected.

 Considering the renter to total households’ ratio established for households with lower incomes, the estimated number of renter households within the Site EMA that are age 55 or older and income-qualified for the proposed Central Villas ($9,000 to $32,160) is estimated at 557. The 40 Tax Credit units proposed for Central Villas represent 7.2% of their potential age and income-qualified renter base. This is an excellent ratio of proposed units to potential income-qualified renter households.

 As noted earlier, there are 193 existing Tax Credit units within the Site EMA. Combined with the 40 proposed units, these properties total 233 Tax Credit units. When the existing Tax Credit units in the Site EMA also considered, the appropriate household income range is $10,500 to $46,620 (when using a 40% rent to income ratio). The number of renter households is estimated to be 2,842. The 233 proposed and existing Tax Credit units in the market represents 8.2% of the age and income-qualified renter household base. This ratio is considered excellent.

COMPARABLE MARKET RENT ANALYSIS

 The following table compares the market rent at opening with the proposed Tax Credit rent at the subject site for one- and two-bedroom units. Rents are gross, and include all utilities (expect phone, cable, and internet).

PERCENT OF MARKET RENT AT PROPOSED TAX CREDIT MEDIAN OPENING AT 23.0 TAX CREDIT RENT AS A HOUSEHOLD COMPARABILITY OPENING PERCENT OF UNIT TYPE INCOME RATING RENT MARKET RENT One-Bedroom 30% $890 $375 (30%) 42.1% 40% $495 (40%) 55.6% 50% $585 (50%) 65.7% 60% $605 (60%) 68.0% Two-Bedroom 50% $1,295 $670 (50%) 51.7% 60% $745 (60%) 57.5%

 With the proposed Tax Credit rents ranging from 42.1% to 68.0% of market-driven rents, the proposed units will be perceived as an excellent value within the market.

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Page 37 of 224 08/13/2015 IV. CONCLUSIONS

A. INTRODUCTION

This study evaluates the market potential to develop the 40-unit Central Villas low- income housing Tax Credit project for older adults (55+) in Aberdeen, South Dakota.

The subject site is located in the southern portion of Aberdeen. Specifically, the site will be located on the east side of Merton Street South of Melgaard Road.

The subject Central Villas project is anticipated to have units available by March 2017.

Conclusions for the market potential of the subject project are based on a thorough analysis of the Effective Market Area (EMA). EMA refers to a methodology developed by The Danter Company to describe areas of similar economic and demographic characteristics.

B. EFFECTIVE MARKET AREA (EMA)

Basic to this study is the application of the Effective Market Area (EMA) approach to area analysis and development. The EMA is the smallest geographic area that is expected to generate between 60% and 70% of the support for the proposed project.

Each EMA is separated from adjacent market areas by natural and manmade barriers such as rivers, freeways, railroads, major arteries, or a marked difference in the socioeconomic makeup of a neighborhood or area. This methodology has a significant advantage over radial analyses that often do not consider these boundaries.

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Page 38 of 224 08/13/2015 The EMA of the proposed site has been determined by:

 Interviews conducted with area apartment managers, the Aberdeen Housing Authority, real estate agents, planners, city officials, and area developers  A demographic analysis  An analysis of mobility patterns  Personal observations of the field analyst

Generally, the Aberdeen Site Effective Market Area (EMA) includes the city of Aberdeen and the immediate surrounding area of Brown County. Specifically, the Site EMA is bound by 24th Avenue to the north, Melgaard Road (390th Street) to the east, 135th Street to the south, and US Highway 281 to the west.

The following analyses have been conducted to identify market potential for the subject property:

 Analysis of the existing EMA rental housing market supply, including:  Historical housing trends  Current market conditions based on 100% field survey of modern apartments  Area apartment demand factors, including  Age- and income-appropriate households based on program guidelines  Current and expected economic and household growth conditions  Comparable market rent for the proposed property as determined through regression analysis  Appropriateness of the subject property for participation in the area Housing Choice Voucher program  Appropriateness of the site for the subject development

A regression analysis, based on a “rent by comparability” index evaluation for all conventional apartment developments within the Site EMA, is used to evaluate and establish rents for comparable units at the proposed subject Central Villas Tax Credit development.

C. PROJECT CONCEPT

This study evaluates the market potential to develop the 40-unit Central Villas low- income housing Tax Credit project for older adults (55+) in Aberdeen, South Dakota.

The subject site is located in the southern portion of Aberdeen. Specifically, the site will be located on the east side of Merton Street South of Melgaard Road.

The proposed 40-unit Central Villas project will include 30 one-bedroom and 10 two- bedroom units within a two story elevator equipped, two story buildings. The Tax Credit

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Page 39 of 224 08/13/2015 rents at the property will be based on 30%, 40%, 50%, and 60% of the area median household income.

The subject Central Villas project is anticipated to have units available by March 2017.

CENTRAL VILLAS MERTON STREET SOUTH ABERDEEN, SOUTH DAKOTA

Rents will include gas heat, gas hot water, electric, as well as water, sewer, and trash collection. Tenants will be responsible for phone and cable. Because the property will include gas heat, gas hot water, electric cooking, and electricity, the collect rents at the proposed Central Villas project are the same as the gross rents. In addition, the rents for any projects that do not include all utilities in the collection of rent have been adjusted to gross rent which includes landlord-paid heat, hot water, electricity, water, sewer, and trash collection. Adjusting all rents to gross rent is used to more easily compare with existing market rents in the area.

These rents are meant as guidelines. Actual rents may vary based on the area median income and utility costs at the time of opening. It should be noted, however, that incomes sometimes increase at a greater rate than market area rents, and arbitrarily increasing rents whenever income guidelines allow may result in a development becoming less of a value. Future increases must always be considered within the context of the existing rental market. Within Brown County, recent median income (as

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Page 40 of 224 08/13/2015 established by HUD) has increased at an annual average of 2.3% compared with the Site EMA's established annual rent increase of 1.1%.

Each unit in the proposed development will include the following amenities:

 Range  Window blinds  Frost-free refrigerator  Carpeting/vinyl flooring  Dishwasher  Microwave  Washer and dryer  One car garage (detached)  Washer and dryer hookup  Intercom entry  Central air conditioning

It is of note that the initial plans for the proposed project will include 40 detached garages. However, according to the developer, if there are sufficient funds in the construction contingency when the project is 50% complete, the contingency funds will be used to construct attached garages and eliminate the detached garages.

Project amenities will include the following:

 Community room  Picnic area  Elevator  On-site management

Based on our site inspection, the site is appropriate for the proposed development. A detailed site description and evaluation is on the proceeding pages.

D. SITE DESCRIPTION/EVALUATION

The proposed site is in the southeastern portion of Aberdeen, South Dakota. Specifically, the site is on the southeast side of the Melgaard Road and Merton Street intersection (0.3 mile west of 389th Avenue) and immediately west of Aberdeen Central High School. The site is flat, undeveloped land.

NORTH

East Melgaard Road borders the site to the north. East Melgaard Road is a major east- west thoroughfare through the southern portion of Aberdeen and includes two lanes and a turning lane. The Kingdom Hall of Jehovah’s Witnesses church, Angelhaus Regional basic Care Center, Melgaard Place apartments, several single-family homes and duplexes, and undeveloped land are located on East Melgaard Road in the immediate site area. North of East Melgaard Road, single-family homes extend 1.0 mile to 6th Avenue Southeast/US Route 12.

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Page 41 of 224 08/13/2015 EAST

Aberdeen Central High School borders the site to the east and extends 0.3 mile to South Roosevelt Street. Further east, agricultural land extends 1.0 mile to 390th Street. The Aberdeen Regional Airport is further east.

SOUTH

Agricultural land borders the site to the south and extends beyond the southern portion of the EMA.

WEST

Merton Street borders the site to the west. Merton Street is a side street with little traffic. West of Merton Street, Acadia Creek (Map Code 1) and single-family home lots extend 0.2 mile to Lawson Street. The First Baptist Church is immediately west of Lawson Street. Further west, several single-family homes and agricultural land extends 0.3 mile to Melgaard Park. Single-family homes extend further west.

IN GENERAL

The proposed site is in the southeastern portion of Aberdeen on the south side of Melgaard Road. The site area is a developing area that includes single-family homes, duplexes, the Aberdeen Central High School, as well as agricultural land. Access to many community services including grocery shopping, Target, Wal-Mart, Lakewood Mall, several banks, a convenience store, two hospitals, as well as various small retail stores and restaurants is within 2.0 miles north, northeast, and northwest of the site. Most community services are located along 6th Avenue Southeast.

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Page 42 of 224 08/13/2015 COMMUNITY SERVICES

The following table provides a listing of the community services that impact the proposed site:

DISTANCE FACILITY/SERVICE NAME/DESCRIPTION FROM SITE DIRECTION Major Highway 6th Avenue SE/US Route 12 1.3 Miles Northeast South Roosevelt Street 0.3 Mile East Police Aberdeen Police 2.5 Miles Northwest Fire Aberdeen Rural Station 1 2.0 Miles West Aberdeen Fire & Rescue 2.5 Miles Northwest Schools: Aberdeen School District Elementary May Overby 1.3 Miles Northwest Middle Simmons 2.0 Miles Northwest High Aberdeen Central Borders East Convenience Store Sinclair 1.2 Miles North Shell 1.3 Miles North Grocery/Supermarket Kens Super Fair Foods 1.5 Miles North Wal-Mart 2.1 Miles Northeast Kessler’s Grocery 1.9 Miles Northeast Senior Center Aberdeen Senior Center 1.4 Miles Northwest Shopping Mall/Center Lakewood Mall 1.9 Miles Northeast Target 1.9 Miles Northeast Wal-Mart 2.1 Miles Northeast Big K-Mart 1.5 Miles North Employment Centers/ Northern State University 1.4 Miles Northwest Major Employers Wal-Mart 2.1 Miles Northeast Avera Medical Center 2.0 Miles Northwest Recreational Facilities Sunshine Park 0.3 Mile Northwest Melgaard Park 1.0 Mile West Aberdeen Senior Center 1.4 Miles Northwest Hospital/Medical Facility Sanford Medical Center 1.9 Miles Northeast Avera Medical Center 2.0 Miles Northwest Banks First State Bank 1.5 Miles North First State Bank 1.9 Miles Northeast Dakota Bank 1.9 Miles Northeast Home Federal Bank 1.6 Miles North Post Office U.S. Post Office 1.5 Miles North Library Alexander Mitchel 2.1 Miles Northeast

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Page 43 of 224 08/13/2015 RELIGION AND SCHOOLS

Most major denominations are represented. School facilities in the Aberdeen School District include 8 elementary schools, 2 middle schools, and 1 senior high school. There are 6 private/parochial schools in the area. Northern State University and Presentation College are also in the area.

UTILITIES

Electric and gas services are provided by Northwestern Public Service Company. Water and sewer services are provided by the City of Aberdeen. US West provides telephone service.

FINANCIAL INSTITUTIONS

Nine banks serve the Aberdeen area.

MEDIA

Newspapers Circulated in the Site Area

FREQUENCY OF NEWSPAPER CITY OF ORIGIN PUBLICATION Aberdeen American News Aberdeen Daily

Television: All stations are received from Sioux Falls. Cable television is available.

Radio: KEEA (FM), KDSD (FM), KSDN (AM/FM), KLRJ (FM), KNBZ (FM), KGIM (AM/FM), KMOM (FM), KBFO (FM), KABD (FM), and KKAA (FM) broadcast locally.

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Page 44 of 224 08/13/2015 SITE EVALUATION

Our evaluation of site access characteristics is most concerned with the ease of access to the site for potential residents. Therefore, we evaluate ingress and egress to the site, proximity to thoroughfares, and site location relative to public transportation.

ASSESSMENT RATING CRITERIA POOR FAIR/AVERAGE GOOD EXCELLENT Ingress X Egress X Proximity to X Thoroughfare(s) Proximity and Access to X Public Transportation Overall X

The Proposed site is on the southeast corner of Melgaard Road and Merton Street. Access to the site will be from Merton Street. Traffic on Merton Street is light and traffic on Melgaard Road is light to moderate. Ingress and egress to and from the site are not expected to be difficult.

Access to thoroughfares is considered good. Melgaard Road borders the site to the north and South Roosevelt Street is 0.3 mile west of the site. Access to 6th Avenue Southeast/US 12 is 1.3 miles northeast of the site.

Access to public transportation is considered fair. The Ride Line Transportation Services is the only bus service in Aberdeen. The Ride Line Transportation Services does not have regular scheduled bus Routes. Rides must be scheduled at least one day in advance and the service will pick up riders and transport them to their destination. The subject site will purchase 600 Ride Line Passes for $2 each and will sell them to tenants for $1 per ticket.

Overall, access to the site is considered good.

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Page 45 of 224 08/13/2015 VISIBILITY

Our research has determined that a significant percent of traffic at any multifamily development is generated from drive-by traffic. The key to generating drive-by traffic is visibility from well-traveled arteries.

ASSESSMENT RATING POOR FAIR/AVERAGE GOOD EXCELLENT Site Visibility X Traffic Volume X Overall X

The subject site is on the south side of Melgaard Road at Merton Street. The site will be clearly visible from those driving east or west on Melgaard Road. However, traffic on Melgaard Road is light to moderate.

Overall, visibility of the site is considered good.

COMMUNITY SERVICES

In evaluating a site’s environment, it is critical to assess the curb appeal of surrounding views and land usage, as well as the site’s proximity to everyday community services.

ASSESSMENT RATING COMMUNITY SERVICE POOR FAIR/AVERAGE GOOD EXCELLENT Grocery Store X Convenience Shopping X Retail Center X Employment Center X Bank(s) X Park(s) X Schools X Area Appeal X Overall X

Access to grocery and convenience shopping is considered good. Ken’s Super Fair Foods is 1.5 miles north of the site and Kessler’s Grocery is 1.9 miles northeast of the site. A Wal-Mart is 2.1 miles northeast of the site. A Sinclair convenience store is 1.2 miles north and a Shell convenience store is 1.3 miles north of the site.

Access to retail is considered good. Lakewood Mall and Target are 1.9 miles north of the site and Big K-Mart is 1.5 miles north.

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Page 46 of 224 08/13/2015 Access to employment is considered fair. There are numerous businesses and retail stores along 6th Avenue, 1.2 miles to 3.0 miles from the site. In addition, Northern State University is 1.4 miles northwest of the site and Avera Medical Center is 2.0 miles northwest of the site.

Access to banking is considered good. First State Bank, Home Federal, and Dacotah Bank are all within 1.5 to 1.9 miles of the site.

Access to parks and recreational activities is considered good. The Aberdeen Senior center is 1.4 miles northwest of the site. Sunshine Park is 0.3 mile northwest of the site and Melgaard Park is 1.0 mile west of the site. The Kuhnert Arboretum and Aberdeen Recreation Trail is 0.7 mile west of the site.

Overall, access to the community services is considered good.

CONVENIENCE TO ELDERLY SERVICES

There is one senior citizen’s center within the Aberdeen area. The Aberdeen Senior Center is the closest facility to the subject site offering a variety of senior citizens services and programs. This project is summarized as follows:

SENIOR CITIZEN CENTER ADDRESS DISTANCE FROM SITE Aberdeen Area Senior 1303 7th Avenue Southeast 1.4 Miles Center

The Aberdeen Area Senior Center is operated by the United Way. The center offers a wide variety of community programs and services including those for elderly residents of Aberdeen. The senior programs and services include bingo, bowling trips, pool tournaments, exercise classes, line dancing, technology club, reading group, dinners, and social gatherings and day trips.

According to the director of the seniors’ program, the center is visited by 550 elderly residents each year. The elderly newsletter has 700 subscribers in the area.

There are two hospitals and several home health care providers that serve the area.

Overall, convenience to senior services is considered good.

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Page 47 of 224 08/13/2015 SUMMARY

Based on our evaluation of the site’s surrounding land usage, convenience to employment, and convenience to shopping, we rate the environment of the site for multifamily residential usage as good.

ASSESSMENT RATING SITE DEMAND FACTOR POOR FAIR/AVERAGE GOOD EXCELLENT Access X Visibility X Community Services X Overall X

E. RESIDENTIAL ANALYSIS

1. SITE EFFECTIVE MARKET AREA HOUSING BASE

Detailed data regarding the Aberdeen, South Dakota Site Effective Market Area's rental base are provided by ESRI, Incorporated, the 2010 Census and the 2000 Census.

In 2010, there were 11,364 occupied housing units within the Aberdeen Site EMA. This is an increase from the 10,768 units identified in the 2000 Census. By 2020, the number of occupied area housing units is projected to increase 14.2% from 2010 to 12,981.

Distributions of housing units for 2000 and 2010 are as follows:

2000 CENSUS 2010 CENSUS NUMBER PERCENT NUMBER PERCENT Occupied 10,768 93.6% 11,364 93.9% By Owner 6,314 58.6% 6,880 60.5% By Renter 4,454 41.4% 4,484 39.5% Vacant 742 6.4% 741 6.1% Total 11,510 100.0% 12,105 100.0%

The above data are a distribution of all rental units (e.g., duplexes, conversions, units above storefronts, single-family homes, mobile homes, and conventional apartments) regardless of age or condition.

The 2010 Census marked a significant change in information gathering procedures. The information formerly gathered on the long form (income, rents, and mortgage details) is no longer being collected for the decennial Census. Instead, everyone received a short

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Page 48 of 224 08/13/2015 form. This information is being collected on the much less sampled American Community Survey and being released as five-year rolling averages, limiting its usefulness for small area demographics.

When available, we have presented 2010 Census data along with 2015 estimates and 2020 projections. When 2010 Census data are not available, we have presented 2000 Census data.

In 2000, there were approximately 4,454 renter-occupied housing units in the EMA. This includes all housing units (e.g., duplexes, single-family homes, mobile homes) regardless of age or condition.

A summary of the existing rental units in the market by type follows:

DISTRIBUTION OF RENTED UNITS BY UNIT TYPE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2000

TOTAL NUMBER OF SHARE OF UNIT TYPE HOUSING UNITS HOUSING UNITS Single, Detached 1,002 22.5% Single, Attached 18 0.4% 2 to 4 1,127 25.3% 5 to 9 731 16.4% 10 to 19 717 16.1% 20 to 49 445 10.0% 50+ 316 7.1% Mobile Home or Trailer 98 2.2% Other 0 0.0% Total 4,454 100.0%

Of the 4,454 renter-occupied housing units in the EMA in 2000, 1,118 (25.1%) were within single-family detached and attached, and mobile homes or trailers. This is a moderate share of renter-occupied units in non-conventional alternatives.

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Page 49 of 224 08/13/2015 Following is a summary of the renter households in the Site EMA by household size:

DISTRIBUTION OF RENTER HOUSEHOLDS BY HOUSEHOLD SIZE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2010 CENSUS

HOUSEHOLD SIZE NUMBER PERCENT One Person 2,462 54.9% Two Persons 1,152 25.7% Three Persons 416 9.3% Four Persons 276 6.2% Five or More Persons 178 4.0% Total 4,484 100.0% Sources: 2010 Census of Population ESRI, Incorporated

In 2010, the owner- and renter-occupied households within the Aberdeen Site Effective Market area were distributed as follows:

DISTRIBUTION OF TENURE BY AGE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2010 CENSUS

OWNER-OCCUPIED RENTER-OCCUPIED TENURE NUMBER PERCENT NUMBER PERCENT Householder 15 to 24 Years 153 2.2% 901 20.1% Householder 25 to 34 Years 998 14.5% 958 21.4% Householder 35 to 44 Years 1,046 15.2% 533 11.9% Householder 45 to 54 Years 1,533 22.3% 597 13.3% Householder 55 to 64 Years 1,375 20.0% 487 10.9% Householder 65 to 74 Years 872 12.7% 278 6.2% Householder 75 to 84 Years 667 9.7% 376 8.4% Householder 85 Years and Over 236 3.4% 353 7.9% Total 6,880 100.0% 4,483 100.0%

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Page 50 of 224 08/13/2015 In 2000, existing gross rents in the Effective Market Area were distributed as follows:

DISTRIBUTION OF RENTAL UNITS BY GROSS RENT ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2000 CENSUS

NUMBER PERCENT No Cash Rent 206 4.6% Under $250 944 21.2% $250 - $349 1,004 22.5% $350 - $449 1,038 23.3% $450 - $549 604 13.6% $550 - $649 373 8.4% $650 - $749 98 2.2% $750 - $899 59 1.3% $900 - $999 28 0.6% $1,000 - $1,499 87 2.0% $1,500 and Over 16 0.4% Total 4,454 100.0% Median Gross Rent $367 Source: 2000 Census

The following table provides a summary of gross rent as a percentage of household income for the renter households in the Aberdeen Site EMA:

GROSS RENT AS A PERCENT OF INCOME ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2000 CENSUS

RENTER HOUSEHOLDS PERCENTAGE NUMBER PERCENT Less Than 20% 1,768 39.7% 20% to 24% 722 16.2% 25% to 29% 347 7.8% 30% to 34% 281 6.3% 35% or More 1,038 23.3% Not Computed 303 6.8% Total 4,454 100.0%

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Page 51 of 224 08/13/2015 As the above table indicates, 29.6% of the renter households paid over 30% of their annual household income for rental housing costs in 2000. A total of 1,038 renter households paid 35% or more of their income for rental housing costs, a significant number of rent burdened households.

2. FIELD SURVEY OF CONVENTIONAL APARTMENTS

The collected rents at the subject property will include gas heat, gas hot water, electricity, as well as water, sewer, and trash collection. These rents will be referred to as gross rents throughout this study.

For the purposes of this analysis, the rents for any projects that do not include all utilities in the collection of rent have been adjusted to gross rent which includes landlord-paid heat, hot water, electricity, water, sewer, and trash collection. Adjusting all rents to gross rent is used to more easily compare with existing market rents in the area.

A total of 2,102 conventional apartment units in 52 projects were surveyed in the Aberdeen, South Dakota Site EMA. A total of 1,751 of these units are in 45 market-rate and Tax Credit developments. The remaining 351 units are in 7 subsidized developments. There are no vacant units among the 7 government subsidized projects.

An additional 53 units are under construction within 3 new market-rate developments. These 3 projects are summarized as follows:

The Lofts on Main (Map Code 49) is a new 16-unit market-rate project that is expected to open in January 2016. The Lofts on Main will include 4 studio units, 6 one-bedroom units, and 6 two-bedroom units.

The Lofts at Melgaard (Map Code 50) is a new 16-unit market-rate project that is expected to open in October 2015. The Lots at Melgaard will include 16 two-bedroom units.

Northern Commons (Map Code 51) is a new 21-unit market-rate project that is expected to open in February 2016 and will include 9 two-bedroom units, 6 three-bedroom units, and 6 four-bedroom units.

Following is a distribution of market-rate, Tax Credit, and government subsidized units surveyed by unit type and vacancy rate:

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Page 52 of 224 08/13/2015 SUMMARY OF CONVENTIONAL MARKET-RATE, TAX CREDIT, AND GOVERNMENT SUBSIDIZED APARTMENTS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MARKET-RATE UNITS

TAX CREDIT UNITS

GOVERNMENT SUBSIDIZED UNITS

GOVERNMENT SUBSIDIZED UNITS VACANCY UNIT TYPE NUMBER PERCENT RATE One-Bedroom 224 63.8% 0.0% Two-Bedroom 78 22.2% 0.0% Three-Bedroom 42 12.0% 0.0% Four-Bedroom 7 2.0% 0.0% Total 351 100.0% 0.0%

Overall, the vacancy rate in the Aberdeen Site EMA is 8.1%. However, there are two projects that opened in March 2015 and are still in initial lease up. These two projects,

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Page 53 of 224 08/13/2015 Prairie Village Phase II (Map Code 38) and The Depot (Map Code 55) have a combined 60 units to lease, or 42.3% of all vacant units in the market.

Phase II of Prairie Village opened in early March 2015 and includes 72 units, of which, 40 have been leased. Prairie Village Phase II has leased an average of 8.9 units per month since opening.

The Depot opened on March 15, 2015 and includes 57 units, of which, 29 have been leased. The Depot has leased an average of 7.3 units per month since opening. It is of note that the rents at The Depot are among the highest in the market.

When excluding the vacant units in lease up at Prairie Village and The Depot, the overall vacancy rate in the market is 4.0%. This is an overall low vacancy rate and would indicate that the market is limited by lack of supply rather than lacking demand.

The market-rate units in the EMA have an overall vacancy rate of 8.9%. However, when excluding the vacant units in lease up at the previously mentioned Prairie Village and The Depot, the overall vacancy rate among the market-rate units is 5.3%.

The vacancy rate among the 193 Tax Credit units in the EMA is 1.6%. This is a very low vacancy rate and indicates that the affordable housing market is limited by supply rather than lacking demand.

There are no vacancies among the 341 subsidized units in the market.

The Site EMA apartment base contains a well-balanced distribution of one-, two-, and three-bedroom units, with 34.1%, 51.1%, and 9.9%, respectively.

Rents in the EMA increased at an established average of 1.1% between January 2014 and July 2015.

The subject Central Villas project will include one- and two-bedroom garden units with gross rents ranging from $375 to $745 per month. The following is an evaluation of units renting at or above the proposed rents at the site:

PERCENT OF UNITS PRICED ABOVE THE MEDIAN PROPOSED PROPOSED RENT NUMBER HOUSEHOLD GROSS UNIT TYPE OF UNITS INCOME RENT NUMBER PERCENT VACANCY One-Bedroom 2 30% $375 590 98.8% 11.0% 3 40% $495 372 62.3% 14.8% 9 50% $585 254 42.5% 19.3% 16 60% $605 254 42.5% 19.3% Two-Bedroom 8 50% $670 537 60.0% 8.8% 2 60% $745 466 52.1% 9.0%

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Page 54 of 224 08/13/2015 The proposed Tax Credit rent at the 30% income level will be virtually the lowest one- bedroom rent in the market while the rent a the 40% income level will be lower than nearly two-thirds of all one-bedroom rents. These units will be perceived as an excellent value within the market.

The propose one-bedroom rents at the 50% and 60% income levels income level are priced lower than nearly 43% of all one-bedroom rents in the market. Overall, these units will be perceived as a value within the market.

The proposed two-bedroom rent at the 50% income level will be lower than 60% of all two-bedroom rents. These units will be perceived as a good value within the market.

The proposed the two-bedroom rents at the 60% income level are priced lower than half of all two-bedroom rents in the market. Overall, these units will be perceived as a value within the market.

It is of note that the high vacancy rates for the units with rents higher than the proposed rents are attributed to the previously mentioned Prairie Village and The Depot. These two project have rents well above the proposed rents and when excluding the units at both that are in initial lease up, the vacancy rates for units with rents higher than the proposed gross rents range from 3.6% to 6.7%.

It is of note that many of the units with rents below the proposed rents are within older, less modern, substandard developments that lack modern amenities. The proposed units will have an advantage over most of the units in the EMA in terms of age, quality, and amenities.

The existing supply of apartments in the EMA is somewhat newer. Of the 45 apartment properties in the Site EMA, 21 (46.7%) have opened since 2000. These 21 properties contain 965 units, or 55.1% of the total units in the EMA. Among these projects built since 2000, 5 operate within the low-income housing Tax Credit program. These 5 Tax Credit properties include a total of 193 units.

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Page 55 of 224 08/13/2015 A distribution of units and vacancies by year opened is as follows:

PROJECTS CURRENT PERIOD BUILT UNITS BUILT VACANCY RATE Before 1970 3 121 5.0% 1970-1979 14 483 6.0% 1980-1989 4 130 6.9% 1990-1999 3 52 5.8% 2000-2005 3 97 2.1% 2006-2010 5 199 6.5% 2011 2 81 4.9% 2012 4 159 1.9% 2013 5 329 13.7% 2014 1 43 0.0% 2015 1 57 49.1% Total 45 1,751 8.1% *Through July 2015

The high vacancy rate for units built in 2013 is attributed to Prairie Village (Map Code 38). Phase I of Prairie Village opened in 2013 and Phase II opened in March 2015 and is still in its initial lease up period. When excluding the units in lease up at Prairie Village, the overall vacancy rate for units built in 2013 is 4.4%.

The high vacancy rate for units built in 2015 is attributed to The Depot, which opened on March 15, 2015 and is in initial lease up.

The area apartment market has also been evaluated based on the comparability rating of each property. Comparability ratings are based on a rating system that awards points to each project based on its unit amenities, project amenities, and aesthetic amenities (curbside appeal).

The aesthetic value, or curb appeal, of each project surveyed was rated on a scale of 1 to 10. Projects that rate at the low end of the scale (1 to 5) are typically older projects that have not been maintained and lack appeal. Projects rated at the high end of the scale (8 to 10) are typically newer properties that are properly landscaped, well- designed, and maintained regularly.

Overall, comparability ratings among the existing projects in the EMA range from 9.5 to 22.0. The average comparability rating in the EMA is 16.2.

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Page 56 of 224 08/13/2015 The following table identifies units and vacancies by comparability rating:

COMPARABILITY NUMBER OF NUMBER VACANCY RATING RANGE PROJECTS OF UNITS RATE Less Than 12.0 3 71 2.8% 12.0 To 14.5 18 663 6.3% 15.0 To 17.5 6 152 3.9% 18.0 To 20.5 12 494 10.3% 21.0 Or Higher 6 371 11.1% Total 45 1,751 8.1%

It is of note that the high vacancy rate for units with comparability ratings between 18.0 to 20.5 is attributed to the previously mentioned The Depot, which opened in March 2015 and is in its initial lease up.

The high vacancy rate for units with comparably ratings of 21.0 or higher is attributed to Prairie Village, which opened in March 2015 and is in its initial lease up period.

As the previous table illustrates, 39 projects with 78.8% of all units (1,380 units) have comparability ratings of 20.5 or less. Only 6 projects with 21.2% of all units have comparability ratings of 21.0 or higher.

The subject Central Villas is anticipated to have the highest overall comparability rating in the market at 23.0. The next highest rated property is the 152 unit market-rate development Prairie Village (map code 38 with 22.0 rating).

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Page 57 of 224 08/13/2015 A distribution of amenities for existing 45 market-rate and Tax Credit projects in the EMA, as well as for The Lofts on Main, The Lofts at Melgaard, and Northern Commons, which are under construction, follows:

TOTAL NUMBER SHARE OF INCLUDED OF PROJECTS PROJECTS AMENITY AT SUBJECT (OUT OF 48*) WITH AMENITY Range X 48 100.0% Refrigerator X 48 100.0% Carpeting X 48 100.0% Air Conditioning X 47 97.9% Window Coverings X 40 83.3% Dishwasher X 28 58.3% Garage X 27 56.3% Washer/Dryer Hookups X 25 52.1% Washer/Dryer X 21 43.8% Intercom Security X 17 35.4% Microwave X 13 27.1% Elevator X 13 27.1% On-Site Management X 11 22.9% Community Building X 8 16.7% Picnic Area X 2 4.2% Balcony/Patio 30 62.5% Disposal 25 52.1% Central Laundry Facility 24 50.0% Ceiling Fan 18 37.5% Playground 5 10.4% Exercise Room 5 10.4% Vaulted Ceilings 5 10.4% Carport 1 2.1% *Includes amenities in some or all of the units

The standard amenities featured in at least 60% of apartments in the Site EMA include a range, refrigerator, carpeting, air conditioning, and window coverings. With the exception of not offering a patio or balcony (site will include outside sitting area), the subject site will offer the standard amenities.

In addition to the standard amenities offered in the market, the subject site will also offer a dishwasher, one-car detached garage, washer and dryer, washer and dryer hookups, picnic area, microwave, on-site management, community building, and an elevator. These amenities are not readily offered among the existing properties in the market and will give the subject property a competitive advantage in terms of unit amenities.

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Page 58 of 224 08/13/2015 Analysis of Tax Credit Apartment Supply

The Site EMA contains 5 existing Tax Credit properties. Combined, these 5 Tax Credit properties include a total of 193 Tax credit units. These 5 Tax Credit developments, as well as the proposed project, are summarized as follows:

GROSS RENTS MAP YEAR TOTAL WAITING OCCUPANCY CODE NAME OPENED UNITS LIST ONE-BR. TWO-BR. THREE-BR. FOUR-BR. RATE Site Central Villas 2015 40 - $375 (30%) $670 (50%) - - - (Subject Site 55+) $495 (40%) $745 (60%) $585 (50%) $605 (60%) 1 Acadia Creek 2013 48 - - $512 (40%) $617 (40%) - 93.8% $512 (50%) $653 (50%) $705 (60%) $778 (60%) 2 Sunshine Park 2010 28 386 - $529 (40%) $783 (60%) $933 (60%) 100.0% Townhomes $542 (50%) $612 (60%) 12 Carlyle (55+) 2001 42 - $420 (50%) - - - 100.0% $515 (60%) 17 Meadow Wood 2012 32 184 - $603 (40%) $843 (60%) $1,006 (60%) 100.0% Townhomes $624-$663 (50%) $716 (60%) 42 Jackson Heights 2014 41 211 $350 (30%) $420 (30%) $650 (40%) - 100.0% $425 (40%) $495 (40%) $710 (50%) $515 (50%) $610 (50%) $800 (60%) $565 (60%) $690 (60%)

The 5 existing Tax Credit projects in the market have a combined 98.4% occupancy rate. Acadia Creek is the only Tax Credit project that is not 100.0% occupied.

Jackson Heights opened in August 2014 and was 100% occupied in November 2014. According to the manager, preleasing at the property began shortly before opening. Overall, Jackson Heights had an average absorption rate of nearly 11 units per month, including the preleasing period.

Acadia Creek and Carlyle do not have active waiting lists. However, the remaining three Tax Credit projects have a combined 781 names on their waiting lists. The waiting lists at the Tax Credit projects in the market is a good indication that there is pent up demand for new, quality, affordable rental units in the Aberdeen market. In addition, it is of note that Acadia Creek had an average initial absorption rate of 10 units per month during the slow winter months.

Other than the subject site, Carlyle is the only other Tax Credit project that has an age restriction. Carlyle is also restricted to older adults age 55 or older and is 100% occupied.

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Page 59 of 224 08/13/2015 Planned and Proposed Projects

According to the area building and planning officials, there is one new market-rate project planned to be built in the EMA.

The Lamount Company has received approval to build a 28-unit market-rate property at 612 10th Avenue SE. According to planning officials, the new property will be contained within a 4 story building and will include 8 two-bedroom units, 12 three-bedroom units, and 8 four-bedroom units. Construction on the property is expected to begin in fall 2015 with the first units available for occupancy beginning in summer 2016.

This project will not be competitive with the proposed project that will be restricted to older adults, age 55 or older.

3. COMPETITIVE ANALYSIS

Generally, there are two sets of criteria which can be used to identify comparable properties. A project can be comparable conceptually and/or economically.

Conceptually Comparable Properties are those properties that have a similar comparability index to the proposed project. A similar comparability index indicates that properties will likely have similar unit and project amenities and a similar aesthetic rating. They may or may not have similar rents.

Economically Comparable Properties are those properties with similar gross rent levels to the proposed project. These properties may or may not have a similar comparability index.

Based on these criteria, we consider 9 properties to be potentially competitive or most comparable with the subject site. It is of note that although Sunshine Park Townhomes and Meadow Wood Townhomes both operate under the Tax Credit program, both offer only two-, three-, and four-bedroom townhouse units and will not be competitive with the subject site, which is restricted to older adults age 55 or older. As such, these projects have not been used in the competitive analysis.

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Page 60 of 224 08/13/2015 The following table details these 9 properties:

MAP TOTAL YEAR COMPARABILITY CODE PROJECT UNITS BUILT RATING Site Central Villas 40 March 2017 23.0 (Subject Site 55+) 1 Acadia Creek (TC) 48 2013 20.0 11 Prairie Springs II 65 2011 21.0 12 Carlyle (TC 55+) 42 2001 20.0 37 Prairie Springs I 65 2008 20.5 39 Dakota Estates 65 2013 20.5 41 Paramount Villas 16 2011 18.0 42 Jackson Heights (TC) 43 2014 18.5 52 Crystal (55+) 30 2006 19.5 54 Prospect I & II (55+) 28 2002 17.0 (TC) – Tax Credit

Acadia Creek, Carlyle, and Jackson Heights all operate under the Tax Credit program.

Carlyle, Crystal, and Prospect I & II are all restricted to older adults, age 55 or older. Crystal and Prospect I & II are market-rate with no income restrictions.

The average size of the most comparable projects in the market is 45 units. At 40 units, the subject site will be the 4th smallest among the most comparable projects. All 9 of the comparable projects opened in 2001 or later.

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Page 61 of 224 08/13/2015 A comparison of unit amenities at these projects and the proposed project is as follows:

ER/DRYER HOOKUPS ER/DRYER

PROJECT RANGE REFRIGERATOR MICROWAVE DISHWASHER DISPOSAL AIR CONDITIONING WASHER/DRYER WASH CARPET BLINDS WINDOW BUILT IN COMPUTER DESK SECURITY INTERCOM BALCONY/PATIO FAN CEILING EXTRA STORAGE GARAGE Central Villas X X X X C X X X X X D (Subject Site 55+) Acadia Creek (TC) X X X X C X X X X X A Prairie Springs II X X X X X C X X X X X X X D $50 Carlyle (TC 55+) X X X W X X X Prairie Springs I X X X X X W X X X X X X D $50 Dakota Estates X X X X X W X X X X X S D $50 Paramount Villas X X X X C X X X X X X A Jackson Heights (TC) X X X X C X X X X X D $20 Crystal (55+) X X X X C X X X X X X X D Prospect I & II (55+) X X X X W X X X X X X D (TC) - Tax Credit C – Central air conditioning W – Window air conditioning D – Detached garage A – Attached garage S – Some units

The units at the subject Central Villas will feature a competitive unit amenity package when compared with the 9 most competitive projects in the market.

Although the units at the subject site do not include a patio or balcony, the project will include a community room as well as a sitting area outside the community room.

In addition, only two of the 4 comparable projects include a garage in the monthly rent. Of the 9 comparable projects, 4 include a detached garage as an option. However, these garages range in price from $20 per month to $50 per month extra. The garages, one for every unit at the site, are included in the monthly rent. It is of note that Crystal and Prospect I & II also include detached garages in the monthly rent.

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Page 62 of 224 08/13/2015 Project amenities are listed as follows:

SITE MANAGEMENT -

PROJECT BUILDINGCOMMUNITY EXERCISE ROOM PLAYGROUND PICNIC AREA LAUNDRY CENTRAL ON ELEVATOR Central Villas X X X X (Subject Site 55+) Acadia Creek (TC) X X X X Prairie Springs II X X X Carlyle (TC 55+) X X X X Prairie Springs II X X X Dakota Estates X X X X Paramount Villas Jackson Heights X X Crystal (55+) X X Prospect I & II (55+) (TC) – Tax Credit

Few project amenities are offered at the most competitive projects in the market. Project amenities to be offered at the site will be limited to a community building, picnic area, on-site management, and an elevator. However, when considering that the site includes only 40 units, the limited project amenities will not be an issue.

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Page 63 of 224 08/13/2015 A distribution of the 6 most competitive properties by units offered follows:

UNITS OFFERED MAP TOTAL ONE- TWO- THREE- CODE PROJECT UNITS BEDROOM BEDROOM BEDROOM Site Central Villas 48 2 (30%) 8 (50%) - (Subject Site 55+) 3 (40%) 2 (60%) 9 (50%) 16 (60%) 1 Acadia Creek (TC) 48 - 4 (40%) 1 (40%) 4 (50%) 6 (50%) 16 (60%) 17 (60%) 11 Prairie Springs II 65 36 29 - 12 Carlyle (TC 55+) 42 20 (50%) - - 22 (60%) 37 Prairie Springs I 65 36 29 - 39 Dakota Estates 65 36 29 - 41 Paramount Villas 16 16 - - 42 Jackson Heights (TC) 43 1 (30%) 1 (30%) 1 (40%) 1 (40%) 1 (40%) 3 (50%) 6 (50%) 5 (50%) 3 (60%) 11 (60%) 8 (60%) 52 Crystal (55+) 30 - 30 - 54 Prospect I & II (55+) 28 - 28 - (TC) – Tax Credit

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Page 64 of 224 08/13/2015 Following is a comparison between the subject site and the one- and two-bedroom units at the 9 most competitive projects:

ONE-BEDROOM COMPARISON

RENT PER MAP NUMBER NUMBER GROSS SQUARE CODE PROJECT OF UNITS UNIT SIZE OF BATHS RENT FOOT Site Central Villas 2 645 1.0 $375 (30%) $0.58 (Subject Site 55+) 3 645 1.0 $495 (40%) $0.77 9 645 1.0 $585 (50%) $0.91 16 645 1.0 $605 (60%) $0.94 1 Acadia Creek (TC) Unit Type Not Offered 11 Prairie Springs II 36 619 1.0 $710-$790 $1.15-$1.28 12 Carlyle (TC 55+) 20 625 1.0 $420 (50%) $0.67 22 625 1.0 $515 (60%) $0.82 37 Prairie Springs I 36 619 1.0 $750-$790 $1.21-$1.28 39 Dakota Estates 36 619 1.0 $715-$750 $1.16-$1.21 41 Paramount Villas 16 675 1.0 $820 $1.21 42 Jackson Heights (TC) 1 679 1.0 $350 (30%) $0.52 1 679 1.0 $425 (40%) $0.63 6 679 1.0 $515 (50%) $0.76 11 679 1.0 $565 (60%) $0.83 52 Crystal (55+) Unit Type Not Offered 54 Prospect I & II (55+) Unit Type Not Offered Average 19 650 1.0 $624 $0.96 (TC) – Tax Credit

Among the comparable projects, one-bedroom units range in size from 619 square feet at Prairie Springs II, Prairie Springs I, and Dakota Estates to 679 square feet at Jackson Heights. The average comparable one-bedroom unit is 650 square feet. The one- bedroom units at the subject site of 645 square feet will be very competitive with the comparable one-bedroom units in terms of unit size. Only Paramount Villas and Jackson Heights will have larger one-bedroom units.

Overall, the proposed rents will be competitive with the rents at the most comparable projects. The proposed rents are well below the rents among the comparable market- rate projects and range from $105 to $445 below the rents at the comparable market- rate projects.

The proposed Tax Credit rents will be competitive with the Tax Credit rents at the comparable Tax Credit projects at the same income level.

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Page 65 of 224 08/13/2015 TWO-BEDROOM COMPARISON

RENT PER MAP NUMBER NUMBER GROSS SQUARE CODE PROJECT OF UNITS UNIT SIZE OF BATHS RENT FOOT Site Central Villas 8 802 1.0 $670 (50%) $0.84 (Subject Site) 2 802 1.0 $745 (60%) $0.93 1 Acadia Creek (TC) 4 927-988 2.0 $512 (40%) $0.52-$0.55 4 927 2.0 $512 (50%) $0.55 16 927-1,036 2.0 $705 (60%) $0.68-$0.76 11 Prairie Springs II 29 912 1.0 $939-$979 $1.03-$1.07 12 Carlyle (TC 55+) UNIT TYPE NOT OFFERED 37 Prairie Springs I 29 912 1.0 $939-$979 $1.03-$1.07 39 Dakota Estates 29 912 1.0 $874-$924 $0.96-$1.01 41 Paramount Villas UNIT TYPE NOT OFFERED 42 Jackson Heights (TC) 1 926 1.0 $420 (30%) $0.45 1 926 1.0 $495 (40%) $0.53 5 926 1.0 $610 (50%) $0.66 8 926 1.0 $690 (60%) $0.75 52 Crystal (55+) 30 800-950 1.0-2.0 $921-$1,049 $1.10-$1.15 54 Prospect I & II (55+) 28 850 1.0 $868-$903 $1.02-$1.06 Average 15 923 1.0 $783 $0.85 (TC) – Tax Credit

Among the comparable projects, two-bedroom units range in size from 800 square feet at Crystal to 1,036 square feet at Acadia Creek. The average comparable two-bedroom unit is 923 square feet. The two-bedroom units at the subject site of 802 square feet are among the smallest units when compared to the most comparable projects. However, the proposed units will provide ample living and storage space.

The proposed rents will be well below the rent among the comparable market-rate units and will range from $123 to $379 lower than the rents among the comparable market- rate projects.

With the exception of the rents at the 50% income level at Acadia Creek, the proposed Tax Credit rents will be competitive with the rents at the comparable tax Credit projects at the same income level.

Overall, the proposed Central Villas Tax Credit project will be very competitive with the existing units in the market. The proposed Tax Credit rents are competitive with most Tax Credit rents in the market and are well below the rents at the comparable market- rate projects. In addition, the proposed units will also be very competitive when comparing unit and project amenities and overall quality.

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Page 66 of 224 08/13/2015 4. COMPARABLE MARKET RENT ANALYSIS

Comparable market rent analysis establishes the rent potential renters would expect to pay for the subject units in the open market without income restrictions. Comparable market rent is based on a regression analysis for the area apartment market. For each unit type, the regression analysis compares gross rent by comparability index for all market-rate developments. This evaluation provides a comparison of existing market rents to those at the proposed project. A variety of factors influence a property’s ability to actually achieve the comparable market rent, including the number of units at that comparable market rent, the step-up support base at that rent range, and the age and condition of the subject property and competitive units.

Considering the proposed unit and project amenities and an appealing aesthetic quality, the subject Central Villas project is anticipated to have an overall comparability rating of 23.0. The overall rating is based on ratings of 12.0 for unit amenities, 3.0 for project amenities, and 8.0 for aesthetic quality.

Rents within the Aberdeen Site EMA have increased at an established rate of 1.1% between January 2014 and July 2015.

There are 597 one-bedroom units within the Site EMA. Gross rents for these units range from $324 to $950 and the median rent is $514. Based on the current rent structure of one-bedroom units, present-day rent for a development comparable to the one proposed is $875 per month. Applying the average annual increase in the Site EMA yields one-bedroom rent of $890 at the projected opening date of March 2017.

There are 895 two-bedroom units within the Site EMA. Gross rents for these units range from $420 to $1,624 and the median rent is $874. Based on the current rent structure of two-bedroom units, present-day rent for a development comparable to the one proposed is $1,275 per month. Applying the average annual increase in the Site EMA yields two-bedroom rent of $1,295 at the projected opening date of March 2017.

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Page 67 of 224 08/13/2015 The following table compares the market rent at opening with the proposed Tax Credit rent at the subject site for one- and two-bedroom units. Rents are gross, and include all utilities (expect phone, cable, and internet).

With the proposed Tax Credit rents ranging from 42.1% to 68.0% of market-driven rents, the proposed units will be perceived as an excellent value within the market.

The relative value the proposed units represent in the market is further illustrated by the following trend line analysis.

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Page 68 of 224 08/13/2015

ONE-BEDROOM UNITS BY COLLECTED RENT

AND COMPARABILITY INDEX

1,000

900

800

700

600 RENT

500

400

300

200 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 COMPARABILITY INDEX

Legend: Site (30% AMI) Site (40% AMI) Site (50% AMI) Site (60% AMI) Market-Rate Properties Tax Credit Properties Market-Driven Rent IV-32

Page 69 of 224 08/13/2015

TWO-BEDROOM UNITS BY COLLECTED RENT

AND COMPARABILITY INDEX

1,750

1,650

1,550

1,450

1,350

1,250

1,150

1,050 RENT

950

850

750

650

550

450

350 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 COMPARABILITY INDEX

Legend: Site (50% AMI) Site (60% AMI) Market-Rate Properties Tax Credit Properties Market-Driven Rent IV-33

Page 70 of 224 08/13/2015 F. APARTMENT DEMAND FACTOR ANALYSIS

1. PROGRAM LIMITATIONS AND QUALIFICATIONS

The proposed Central Villas project will include 40 Tax Credit units. Tax Credit rents at the project will be based on 30%, 40%, 50%, and 60% of the area median household income.

Rents for units operating within the Tax Credit program are based on income limits by household size. The gross rent charged for an eligible unit to a tenant cannot exceed 30% of the tenant income limitation (30%, 40%, 50%, or 60% of area median income adjusted for household size).

Median incomes are established by the United States Department of Housing and Urban Development (HUD). The proposed project is located in Aberdeen, in Brown County, South Dakota. In rural counties, the Tax Credit program uses the median income for the county or the median income for nonmetropolitan areas, whichever is greater. The 2015 median income for Brown County is $66,900. The median income for nonmetropolitan areas of South Dakota is $61,900. Because it is greater, the $66,900 figure for Brown County is used.

The following chart illustrates the maximum income allowed per household size at the 30%, 40%, 50%, and 60% levels, based on the 2015 median income for Brown County, South Dakota:

MAXIMUM ALLOWABLE INCOME HOUSEHOLD SIZE 30% 40% 50% 60% One-Person $14,070 $18,760 $23,450 $28,140 Two-Person $16,080 $21,440 $26,800 $32,160

Current guidelines establish maximum rents based on the probable household size by number of bedrooms, with one-bedroom units at 1.5 and two-bedroom units at 3.0 people per household (regardless of the actual number of people occupying the unit).

Maximum rent by number of bedrooms is as follows:

MAXIMUM GROSS RENT UNIT TYPE 30% 40% 50% 60% One-Bedroom (1.5) $376 $502 $628 $753 Two-Bedroom (3.0) - - $753 $904

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Page 71 of 224 08/13/2015 Because the collected rents at the proposed project include all utilities, the collected rents are also the gross rents. Following is an evaluation of the gross rents at the site and the 2015 maximum allowable gross rents for Brown County:

PERCENT OF MEDIAN MAXIMUM HOUSEHOLD GROSS MONTHLY PROPOSED UNIT TYPE INCOME RENT GROSS RENT One-Bedroom 30% $376 $375 40% $502 $495 50% $628 $585 60% $753 $605 Two-Bedroom 50% $753 $670 60% $904 $745

The proposed one- and two-bedroom gross rents at the 30%, 40%, 50%, and 60% income levels are set $1 to $159 lower than the current (2015) maximum allowable. The maximum allowable gross rent at opening may increase (or decrease) based on the median income at the time of reopening.

The subject site is anticipated to open in March 2017. As such, the maximum allowable rents at the subject site will be based on the 2017 median income for Brown County.

Based on HUD estimates, the median income for Brown County has increased at an annual average of approximately 2.3% since 2010; however, the rate of change has varied each year from an increase of 0.5% in 2010-2011 to a 3.9% increase in 2014- 2015.

The following chart provides the median incomes for Brown County for the past 5 years:

YEAR MEDIAN INCOME CHANGE 2010 $59,900 - 2011 $60,200 0.5% 2012 $61,000 1.3% 2013 $62,400 2.3% 2014 $64,400 3.2% 2015 $66,900 3.9%

It is important to note that the proposed rents are based on the 2015 median income for Brown County. The Danter Company can make no assurances that future changes will continue to reflect past increases in the area median household income.

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Page 72 of 224 08/13/2015 2. INCOME-APPROPRIATE HOUSEHOLDS

Under the Section 42 Tax Credit program, a household may live in any unit type, regardless of size, as long as the household income does not exceed the maximum allowable for that household size.

We anticipate that the proposed one- and two-bedroom units will predominantly house one- and two-person households, although one-person households will be most common. The subject Central Villas will have units available to households with rents based on 30%, 40%, 50%, and 60% of the area median household income. For 2015, the maximum allowable income for a one-person household at the 30% income level is $14,070 and the maximum allowable for a two-person household at the 60% income level is $32,160.

Based on telephone surveys conducted by The Danter Company among residents of low-income housing Tax Credit projects, it was established that the ratio of rent to monthly income often exceeds the maximum ratio of 30%. According to surveys, this ratio may reach 50%, especially among older adult or elderly households who tend to have lower living expenses. Thus, at the projected rent levels, the minimum annual household income level at the proposed Central Villas development could be as low as $9,000 per year (gross rent for a one-bedroom unit at the 30% level - $375 x 12 months = $4,500 / 50% = $9,000).

All Income-Qualified Households

In 2017, there will be an estimated 1,730 total households age 55 or older within the Site EMA with incomes between $9,000 and $32,160.

Following is an analysis of housing costs as a percent of household income by the number of qualified households in the Site EMA:

PERCENT OF CAPTURE INCOME TO GROSS TOTAL RATE HOUSING COSTS INCOME RANGE HOUSEHOLDS 55+ (40 UNITS) 40% $11,250 - $32,160 1,599 2.5% 45% $10,000 - $32,160 1,672 2.4% 50% $9,000 - $32,160 1,730 2.3%

The 40 Tax Credit units at the subject Central Villas development will represent a rental housing alternative for 2.3% to 2.5% of all age- income-appropriate households, depending on management's criteria for qualifying potential renters.

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Page 73 of 224 08/13/2015 These are excellent ratios and indicate a good supply of potential household support. These ratios have been considered in establishing the anticipated absorption rates at the site.

There are 5 existing Tax Credit properties in the site EMA. Combined, these 5 Tax Credit properties include a total of 193 Tax credit units:

 The 48-unit Acadia Creek  The 28-unit Sunshine Park Townhomes  The 42-unit Carlyle that is restricted to older adults age 55 or older  The 32-unit Meadow Wood Townhomes  The 43-unit Jackson Heights

When the existing Tax Credit units in the Site EMA are also considered, the appropriate household income range is $10,500 to $46,620 (using a 40% rent to income ratio). This range is wider than the range for just the subject development due to the wider range of rents being charged when considering the existing property. The following table analyzes the number of households with appropriate incomes when considering all Tax Credit development in the Site EMA:

PERCENT OF INCOME CAPTURE TO GROSS HOUSING TOTAL RATE COSTS INCOME RANGE HOUSEHOLDS (233 UNITS) 35% $12,000 - $46,620 4,189 5.6% 40% $10,500 - $46,620 4,413 5.3%

Proposed and existing Tax Credit units will represent a rental housing alternative for 5.3% to 5.6% of all income-appropriate households, depending on management's criteria for qualifying potential renters. These ratios are considered excellent and have been considered in establishing the anticipated absorption rates at the site.

The Central Villas project will feature one- and two-bedroom units available to households with incomes based on 30%, 40%, 50%, and 60% of the area median household income.

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Page 74 of 224 08/13/2015 The following table details the estimated total and renter households age 55 or older by income level within the Site EMA:

INCOME-APPROPRIATE HOUSEHOLDS 55+ RATIO OF UNITS TO PERCENT UNITS INCOME-APPROPRIATE AMI INCOME RANGE TOTAL RENTERS PROPOSED RENTER HOUSEHOLDS 30% $9,000-$16,080 442 142 2 1.4% 40% $11,880-$21,440 722 232 3 1.3% 50% $14,040-$26,800 1,029 331 17 5.1% 60% $14,520-$32,160 1,407 453 18 4.3%

The proposed units to income-appropriate renter household ratios at all 4 election levels are considered excellent, ranging from 1.3% to 5.1%.

Renter Households

The 2010 Census indicated that 39.5% of the area households were rentals. Of the estimated 4,484 renter households in 2010, an estimated 32.2% are age 55 or older. The reality is that at lower income levels, a higher ratio of renters is likely compared to the overall market. Within the Aberdeen Site EMA, this is reflected.

Considering the renter to total households’ ratio established for households with lower incomes, the estimated number of renter households within the Site EMA that are age 55 or older and income-qualified for the proposed Central Villas ($9,000 to $32,160) is estimated at 557. The 40 Tax Credit units proposed for Central Villas represent 7.2% of their potential age and income-qualified renter base. This is an excellent ratio of proposed units to potential income-qualified renter households.

As noted earlier, there are 193 existing Tax Credit units within the Site EMA. Combined with the 40 proposed units, these properties total 233 Tax Credit units. When the existing Tax Credit units in the Site EMA also considered, the appropriate household income range is $10,500 to $46,620 (when using a 40% rent to income ratio). The number of renter households is estimated to be 2,842. The 233 proposed and existing Tax Credit units in the market represents 8.2% of the age and income-qualified renter household base. This ratio is considered excellent.

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Page 75 of 224 08/13/2015 3. HOUSING CHOICE VOUCHERS

It is anticipated that additional support for the units at the proposed site could come from tenants with Housing Choice Vouchers. The current 2015 Fair Market Rents for the area as well as the proposed gross rents are as follows:

2015 FAIR PROPOSED GROSS RENT MARKET UNIT TYPE RENTS 30% 40% 50% 60% One-Bedroom $497 $375 $495 $585 $605 Two-Bedroom $672 - - $670 $745 Source: US Department of Housing and Urban Development Effective Date: October 2013 Note: The Fair Market Rents have been established by the Department of Housing and Urban Development and are gross rents including utilities

As the above table indicates the proposed gross Tax Credit rents for one-bedroom units at the 30% and 40% income levels and the two-bedroom units at the 50% income level are set below the Fair Market Rents. These units will be available to renters with Housing Choice Vouchers. However, the one-bedroom units at the 50% and 60% income levels as well as the two-bedroom units at the 60% income level have proposed gross Tax Credit rents above the Fair Market Rents, and these units will not be available to renters with Housing Choice Vouchers unless management is willing to reduce rent levels to Fair Market Rents or the tenants are willing and able (due to income restrictions) to make up the difference.

G. DEMOGRAPHIC AND ECONOMIC FACTORS

Population and household growth rates, age breakdown and migration trends, household income, and employment stability and growth are important considerations when determining support for a residential development. We have reviewed these factors for the Site EMA.

Data generated for this section are derived primarily from ESRI, Incorporated, which is a nationally recognized demographic research firm. Data specific to Aberdeen and Brown County are within the Demographics section of this report.

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Page 76 of 224 08/13/2015 1. HOUSEHOLD AND POPULATION GROWTH

The following tables provide key information on Site EMA demographics, including population trends, household trends, and household income trends.

POPULATION AND HOUSEHOLDS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA

As the previous table illustrates, the total population and households within the Aberdeen Site EMA increased between 1990 and 2000. During this time period, the total population increased 2.2% from 24,713 in 1990 to 25,268 in 2000. During this same time period, households increased 8.2% from 9,952 in 1990 to 10,768 in 2000. Both the total population and households are expected to continue to increase through 2020. The population is expected to increase by 1,712 (6.2%) between 2015 and 2020 while households are expected to increase by 821 (6.8%) from 12,160 in 2015 to 12,981 in 2020.

The median population age in the 2010 Census was 36.4 years old, 1.5 years younger than reported in the 2000 Census. By 2020, the median population age is expected to be 37.7 years old. The following tables detail the area population by age groups:

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Page 77 of 224 08/13/2015 DISTRIBUTION OF POPULATION BY AGE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2000 CENSUS, 2010 CENSUS

TOTAL POPULATION 2000 2010 BY AGE NUMBER PERCENT NUMBER PERCENT Under 5 Years 1,542 6.1% 1,821 7.0% 5 to 9 Years 1,436 5.7% 1,580 6.1% 10 to 14 Years 1,618 6.4% 1,499 5.8% 15 to 19 Years 2,201 8.7% 1,738 6.7% 20 to 24 Years 2,471 9.8% 2,458 9.5% 25 to 34 Years 3,175 12.6% 3,501 13.5% 35 to 44 Years 3,709 14.7% 2,724 10.5% 45 to 54 Years 2,955 11.7% 3,507 13.5% 55 to 64 Years 2,021 8.0% 2,935 11.3% 65 to 74 Years 1,808 7.2% 1,792 6.9% 75 to 84 Years 1,629 6.4% 1,511 5.8% 85 Years and Over 704 2.8% 875 3.4% Total 25,268 100.0% 25,941 100.0% Median Age 37.9 36.4 Sources: The Danter Company, LLC 2000 Census, 2010 Census ESRI, Incorporated

DISTRIBUTION OF POPULATION BY AGE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2015 (ESTIMATED), AND 2020 (PROJECTED)

TOTAL POPULATION 2015 (ESTIMATED) 2020 (PROJECTED) BY AGE NUMBER PERCENT NUMBER PERCENT Under 5 Years 1,816 6.6% 1,900 6.5% 5 to 9 Years 1,728 6.3% 1,759 6.0% 10 to 14 Years 1,588 5.8% 1,792 6.1% 15 to 19 Years 1,776 6.5% 1,878 6.4% 20 to 24 Years 2,051 7.5% 2,096 7.2% 25 to 34 Years 4,200 15.3% 4,111 14.1% 35 to 44 Years 2,867 10.5% 3,431 11.8% 45 to 54 Years 3,182 11.6% 2,896 9.9% 55 to 64 Years 3,438 12.5% 3,550 12.2% 65 to 74 Years 2,247 8.2% 2,917 10.0% 75 to 84 Years 1,556 5.7% 1,763 6.0% 85 Years and Over 980 3.6% 1,047 3.6% Total 27,429 100.0% 29,141 100.0% Median Age 36.9 37.7 Sources: The Danter Company, LLC ESRI, Incorporated

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Page 78 of 224 08/13/2015 Between 2000 and 2010, the population age 55 or older increased 15.4% (951). Between 2010 and 2015, the population age 55 or older increased by an estimated 15.6% form 7,113 in 2010 to 8,221 in 2015. By 2020 the population age 55 or older is expected to increase by 1,056 people from 2015, a 12.8% increase.

By comparison, the population age 20 to 54 decreased 1.0% between 2000 and 2010 and is expected to increase only slightly over the next few years. The population age 20 to 54 is expected to increase 1.9% from 12,300 in 2015 to 12,534 in 2020.

The following table illustrates the households by age in the Site EMA in 2000, 2015 (estimated), and 2020 (projected):

HOUSEHOLDS BY AGE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2000 CENSUS, 2015 (ESTIMATED), AND 2020 (PROJECTED)

2000 2015 (ESTIMATED) 2020 (PROJECTED) HOUSEHOLD AGE NUMBER PERCENT NUMBER PERCENT NUMBER PERCENT Under 25 Years 1,141 10.6% 887 7.3% 930 7.2% 25 to 34 Years 1,831 17.0% 2,349 19.3% 2,298 17.7% 35 to 44 Years 2,089 19.4% 1,656 13.6% 1,981 15.3% 45 to 54 Years 1,895 17.6% 1,923 15.8% 1,756 13.5% 55 to 64 Years 1,184 11.0% 2,173 17.9% 2,238 17.2% 65 to 74 Years 1,098 10.2% 1,440 11.8% 1,863 14.4% 75 and Older 1,529 14.2% 1,733 14.3% 1,914 14.7% Total 10,768 100.0% 12,160 100.0% 12,981 100.0% Sources: The Danter Company, LLC 2000 Census ESRI, Incorporated

The total households age 55 or older grew 40.3% (1,535) between 2000 and 2015 and are expected to continue to grow. Households age 55 or older are expected to grow 12.5% (669) from 5,346 in 2015 to 6,015 in 2020.

2. MIGRATION TRENDS

According to county-to-county migration data reported from the American Community Survey 2008-2012, a total of 2,148 persons moved to Brown County between 2008 and 2012. A total of 1,113 people moved to Brown County from other counties within South Dakota, while 891 moved from a different state, and 144 moved from a different country.

While 2,148 people moved to Brown County Between 2008 and 2012, 2,090 moved out of Brown County during the same time period. A total of 974 moved to a different county within South Dakota while 1,116 moved out of the state. This results in a net gain of 58 people between 2008 and 2012.

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Page 79 of 224 08/13/2015 3. HOUSEHOLD INCOME

Median income within the Site EMA was estimated at $43,959 in 2015, which is 34.5% higher than the median income in 2000. By 2020, the median income within the area is projected to increase 17.3% to $51,548.

The following table illustrates the distribution of income among all households in the Site EMA in 2000, 2015 (estimated), and 2020 (projected). Again, it is worth remembering that income data were not collected for the 2010 Census.

DISTRIBUTION OF INCOME ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2000 CENSUS, 2015 (ESTIMATED), AND 2020(PROJECTED)

2000 2015 (ESTIMATED) 2020 (PROJECTED) HOUSEHOLD INCOME NUMBER PERCENT NUMBER PERCENT NUMBER PERCENT Less Than $15,000 2,283 21.2% 1,585 13.0% 1,593 12.3% $15,000 to $24,999 1,852 17.2% 1,607 13.2% 1,315 10.1% $25,000 to $34,999 1,626 15.1% 1,471 12.1% 1,260 9.7% $35,000 to $49,999 1,938 18.0% 2,095 17.2% 2,054 15.8% $50,000 to $74,999 2,014 18.7% 2,353 19.4% 2,812 21.7% $75,000 to $99,999 592 5.5% 1,436 11.8% 1,846 14.2% $100,000 to $149,999 291 2.7% 1,120 9.2% 1,435 11.1% $150,000 to $199,999 65 0.6% 194 1.6% 292 2.2% $200,000 or More 108 1.0% 298 2.5% 373 2.9% Total 10,768 100.0% 12,160 100.0% 12,981 100.0% Median Income $32,682 $43,959 $51,548

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Page 80 of 224 08/13/2015 The following tables illustrate the distribution of income by age in 2000, 2015 (estimated), and 2020 (projected), the most recent available:

DISTRIBUTION OF INCOME BY AGE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2000 CENSUS

2000 HOUSEHOLD AGE GROUP INCOME UNDER 25 25-34 35-44 45-54 55-64 65-74 75+ Less Than $10,000 346 101 140 129 122 115 384 $10,000-$14,999 224 108 127 87 44 86 265 $15,000-$24,999 232 333 269 254 154 263 346 $25,000-$34,999 177 366 226 271 185 237 165 $35,000-$49,999 116 491 418 326 244 159 180 $50,000-$74,999 29 315 604 551 246 177 93 $75,000-$99,999 0 110 203 85 91 45 60 $100,000-$149,999 18 7 44 123 62 11 28 $150,000-$199,999 0 0 13 32 9 7 8 $200,000 or More 0 0 42 34 27 0 6 Total 1,141 1,831 2,089 1,895 1,184 1,098 1,529

DISTRIBUTION OF INCOME BY AGE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2015 ESTIMATED

2015 HOUSEHOLD AGE GROUP INCOME UNDER 25 25-34 35-44 45-54 55-64 65-74 75+ Less Than $15,000 183 270 128 166 288 174 376 $15,000-$24,999 143 311 121 130 218 192 493 $25,000-$34,999 155 234 156 134 187 252 355 $35,000-$49,999 212 446 253 299 356 286 243 $50,000-$74,999 110 480 397 457 457 346 106 $75,000-$99,999 47 325 298 359 264 60 83 $100,000-$149,999 32 205 230 260 268 69 56 $150,000-$199,999 3 30 17 67 48 21 8 $200,000 or More 3 50 56 50 86 40 13 Total 887 2,349 1,656 1,923 2,173 1,440 1,733 Median Income $31,964 $46,224 $58,051 $59,953 $51,317 $39,090 $24,918 Average Income $38,689 $58,630 $70,771 $72,107 $67,634 $53,308 $34,728

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Page 81 of 224 08/13/2015 DISTRIBUTION OF INCOME BY AGE ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA 2020 PROJECTED

2020 HOUSEHOLD AGE GROUP INCOME UNDER 25 25-34 35-44 45-54 55-64 65-74 75+ Less Than $15,000 191 236 127 132 266 211 429 $15,000-$24,999 128 220 95 80 143 201 449 $25,000-$34,999 139 169 133 87 137 260 335 $35,000-$49,999 212 389 263 226 329 349 286 $50,000-$74,999 137 526 515 438 514 525 156 $75,000-$99,999 66 404 424 382 330 109 132 $100,000-$149,999 47 252 322 274 337 113 91 $150,000-$199,999 5 40 30 86 80 34 17 $200,000 or More 5 62 73 51 103 62 18 Total 930 2,298 1,981 1,756 2,238 1,863 1,914 Median Income $35,314 $54,461 $65,708 $68,279 $59,227 $45,091 $26,755 Average Income $43,972 $68,463 $79,853 $81,567 $78,909 $61,289 $40,833

4. EMPLOYMENT FACTORS

According to the South Dakota Department of Labor, average entry-level wages in the Eastern portion of South Dakota range from $8.66 to $13.79 per hour, or approximately $18,010 to $28,680 annually. Various entry-level employment opportunities exist in Aberdeen area and are mostly within the service and construction industry.

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Page 82 of 224 08/13/2015 Following is wage and employment information for Brown County provided by South Dakota Department of Labor:

AVERAGE NUMBER OF NUMBER OF INDUSTRY GROUP AND INDUSTRY ESTABLISHMENTS WORKERS ANNUAL PAY Natural Resources and Mining 48 254 $39,134 Agriculture, Forestry, Fishing & Hunting 0 0 - Mining 0 0 - Construction 190 1,022 $43,552 Manufacturing 46 2,765 $44,390 Trade, Transportation and Utilities 381 4,629 $34,604 Wholesale Trade 122 1,099 $49,791 Retail Trade 196 3,030 $27,497 Transportation & Warehousing 58 397 $38,689 Utilities 5 102 $66,522 Information 25 310 $46,256 Financial Activities 181 1,129 $53,949 Finance & Insurance 119 974 $58,223 Real Estate & Rental & Leasing 62 155 $27,088 Professional and Business Services 195 1,622 $44,361 Professional, Scientific, & Technical 105 397 $48,910 Management of Companies/Enterprises 14 278 $77,604 Administrative & Support & Waste 76 947 $32,694 Management & Remediation Services Education and Health Services 130 3,297 $43,427 Educational Services 8 200 $34,084 Health Care & Social Assistance 122 3,097 $44,031 Leisure and Hospitality Services 148 2,232 $13,146 Arts, Entertainment & Recreation 39 250 $12,862 Accommodation & Food Services 109 1,982 $13,182 Other Services, except Public Administration 94 607 $22,700 Total Government 86 2,850 $39,891 Federal Government 30 470 $66,117 State Government 34 807 $42,089 Local Government 22 1,573 $30,927

The Business Summary report provided by ESRI, Incorporated reported that a total of 20,863 employees, among 1,650 businesses, were within the Site EMA in 2015. The largest employment categories within the Site EMA included Health Care & Social Assistance, Retail Trade, Accommodation and Food Services, and Other Services. Combined, employees among these 4 categories accounted for 51.8% of the total number of employees within the Site EMA.

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Page 83 of 224 08/13/2015 Major employers in the Aberdeen area are:

NUMBER OF EMPLOYER EMPLOYEES SECTOR Sanford Health 1,800 Health Care & Social Assistance Avera Saint Luke’s Hospital 1,500 Health Care & Social Assistance Aberdeen Public School District 650 Educational Services 3M 650 Manufacturing Wells Fargo Auto Finance 450 Finance & Insurance Super 8 Worldwide 400 Administration & Support Services Hub City, Incorporated 339 Manufacturing South Dakota Wheat Growers 310 Agriculture Midstates Printing/Quality Quick Print 300 Manufacturing Northern State University 298 Educational Services Kessler’s, Incorporated 260 Retail Trade SOURCE: Aberdeen Develo0pment Corporation

Total employment in Brown County was 20,162 people in 2005 and 20,585 people in 2015, a 2.1% increase.

Employment in Brown County showed an overall decrease of 2.1% (423) between 2005 and April 2015. Between 2005 and 2011, total employment had decreased 1.0% (203) from 20,162 in 2005 to 19,959 in 2011. Between 2011 and April 2015 there was a steady employment increase of 626 workers (3.1%).

Unemployment in Brown County was 3.8% in 2010, slightly less than the statewide average of 5.0%. It is a significant increase; however, from the 2007 figure of 2.3%. From 2010 through April 2015, the unemployment rate in Brown County had decreased 0.7 percentage point to 3.1%.

IV-47

Page 84 of 224 08/13/2015 EMPLOYMENT AND UNEMPLOYMENT RATES BROWN COUNTY, SOUTH DAKOTA 2005-2015*

UNEMPLOYMENT RATES STATE OF YEAR EMPLOYMENT BROWN COUNTY SOUTH DAKOTA US 2005 20,162 3.3% 3.8% 5.1% 2006 20,263 2.6% 3.1% 4.6% 2007 20,758 2.3% 2.8% 4.6% 2008 20,706 2.5% 3.1% 5.8% 2009 20,452 3.6% 4.9% 9.3% 2010 20,081 3.8% 5.0% 9.6% 2011 19,959 3.8% 4.7% 8.9% 2012 20,140 3.6% 4.3% 8.1% 2013 20,320 3.2% 3.8% 7.4% 2014 20,428 2.9% 3.4% 6.2% 2015* 20,585 3.1% 3.7% 5.1% *Through April 2015 Source: U.S. Bureau of Labor Statistics

EMPLOYMENT 21,000

20,800

20,600

20,400

20,200

20,000

19,800

19,600

19,400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

IV-48

Page 85 of 224 08/13/2015 H. RECOMMENDATIONS/ABSORPTION

This study evaluates the market potential to develop the 40-unit Central Villas low- income housing Tax Credit project for older adults (55+) in Aberdeen, South Dakota.

The subject site is located in the southern portion of Aberdeen. Specifically, the site will be located on the east side of Merton Street South of Melgaard Road.

The subject Central Villas project is anticipated to have units available by March 2017.

ABSORPTION

We have considered the following factors in determining absorption:

 Relationship of proposed rents to market rents  Number of age- and income-appropriate households within the Site EMA  Expected quality of the subject development relative to market at opening  Appropriateness of the subject development for the proposed site  Anticipated opening date  Area household growth and employment trends  Area income trends  Ability of the subject development to attract age- and income-qualified renters: many households attracted to the property will not meet program income guidelines.

The subject Central Villas project is anticipated to have units available by March 2017.

IV-49

Page 86 of 224 08/13/2015 We expect most of the absorption for the proposed development to come from within the Site EMA. (See Section V for a complete description of the Site EMA.) A comparison of typical versus anticipated geographic support for the subject site is as follows:

TYPICAL SUPPORT ANTICIPATED SUPPORT Within The Site EMA Apartments 55% 40% Other Rentals 20% 25% Other 10% 20% Beyond The Site EMA 15% 15% Total 100% 100%

When responding to only age and income-qualified tenants, absorption for the 5 Tax Credit units at the 30% and 40% income levels will be leased within one month after opening. With advanced marketing, these units will be leased prior to opening.

Absorption for the 35 Tax Credit units at the 50% and 60% income levels is expected to average 6 to 7 units per month, resulting in a 4.7 to 5.5 month absorption period to achieve a 95% occupancy level.

The addition of tenants with Housing Choice Vouchers would accelerate the absorption.

Prior studies have shown that absorption tends to be seasonal, with up to 64% of annual absorption taking place in the "peak" summer months (May through August). The shoulder season (the two months on either side of the peak season) generally accounts for approximately 24% of annual absorption. The "off" season, November through February, typically accounts for the remaining 12% of absorption. While these percentages do not hold true in all markets, they give a good indication of the potential seasonal variations in absorption.

IV-50

Page 87 of 224 08/13/2015 V. SITE AREA MAPS AND PHOTOGRAPHS

The following section contains maps and photographs of the subject site area. Maps illustrating the following are included:

 The specific neighborhood of the site, with traffic counts when available.

 A close-in aerial view of the site parcel.

 The locations of community (resident) services relative to the site. Typical of community services included in the map would be shopping, parks/recreation, and the locations of fire and police services.

Following the maps are site area photographs, including photographs of the subject site and surrounding land uses.

V-1

Page 88 of 224 08/13/2015 SITE EFFECTIVE MARKET AREA MAP

ABERDEEN, SOUTH DAKOTA

V-2

Page 89 of 224 08/13/2015 NEIGHBORHOOD MAP

ABERDEEN, SOUTH DAKOTA

V-3

Page 90 of 224 08/13/2015 SITE LOCATION MAP

ABERDEEN, SOUTH DAKOTA

V-4

Page 91 of 224 08/13/2015 COMMUNITY SERVICES MAP

ABERDEEN, SOUTH DAKOTA

Bank Middle School Site Elementary School Park Shopping Fire Department Pharmacy University High School Police Department Hospital Post Office Library Recreation Medical Center Senior Center

V-5

Page 92 of 224 08/13/2015 SITE PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

EASTERN BORDER OF SITE NORTHERN BORDER OF SITE ALONG MELGAARD ROAD

WESTERN BORDER OF SITE ON SOUTH MERTON STREET SOUTHERN BORDER OF SITE

NEW SINGLE-FAMILY HOMES WEST OF SITE SOUTH MERTON STREET DIRECTLY WEST OF SITE

Page V-693 of 224 08/13/2015 SITE PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

EAST MELGAARD ROAD DIRECTLY NORTH OF SITE CENTRAL HIGH SCHOOL DIRECTLY EAST OF SITE

Page V-794 of 224 08/13/2015 VI. FIELD SURVEY OF MODERN APARTMENTS

The following analyses represent data from a field survey of the modern apartments in the Site EMA. Each development was surveyed by unit and project amenities, year opened, unit mix, vacancies, rents, and aesthetic quality. The collected data have been analyzed as follows:

 A distribution of both market-rate and government subsidized modern apartment units. The units are distributed by mix and vacancy.

 An analysis of multifamily construction trends, which includes number of units, number of projects, percent distribution, cumulative units, and vacancy rate by year built.

 A rent and vacancy analysis, which contains distributions of units and vacancies by net rent range. A separate distribution appears for units by number of bedrooms.

 A project information analysis listing the name and address of each development, its occupancy, and year opened. Any unique features are noted by the analyst.

 A street rent comparison listing rents by unit size for all market-rate developments.

 A comparability rating, assigning point values for unit amenities, project amenities, and overall aesthetic appeal/curbside marketability.

 Amenity analyses, including the following:  A unit amenity analyses listing the unit amenities for each property.  A project amenity analysis listing the project amenities for each development.  A distribution of amenities by number of units and properties offering that amenity.

 A unit type/utility detail analysis with units offered and utilities available, including responsibility for payment.

 Rent/square foot.

A map showing the location of each apartment complex included in this analysis is in Section VII – Modern Apartment Locations and Photographs.

VI -1

Page 95 of 224 08/13/2015 DISTRIBUTION OF MODERN APARTMENT UNITS AND VACANCIES ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MARKET RATE UNITS

UNIT TYPE UNITS VACANCIES NUMBER PERCENT NUMBER PERCENT STUDIO 81 4.6% 3 3.7% ONE-BEDROOM 597 34.1% 65 10.9% TWO-BEDROOM 895 51.1% 67 7.5% THREE-BEDROOM 174 9.9% 7 4.0% FOUR-BEDROOM + 4 0.2% 0 0.0%

TOTAL 1,751 100.0% 142 8.1%

TOTAL DOES NOT INCLUDE 53 UNITS UNDER CONSTRUCTION

SUBSIDIZED

UNIT TYPE UNITS VACANCIES NUMBER PERCENT NUMBER PERCENT

ONE-BEDROOM 224 63.8% 0 0.0% TWO-BEDROOM 78 22.2% 0 0.0% THREE-BEDROOM 42 12.0% 0 0.0% FOUR-BEDROOM + 7 2.0% 0 0.0%

TOTAL 351 100.0% 0 0.0%

VI-2 Page 96 of 224 08/13/2015 MARKET RATE MULTIFAMILY CONSTRUCTION TRENDS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

JULY 2015 YEAR OF NUMBER OF NUMBER OF PERCENT CUMULATIVE VACANCY PROJECT OPENING PROJECTS UNITS DISTRIBUTION UNITS RATE

Before 1970 3 121 6.9% 121 5.0% 1970 - 1974 10 359 20.5% 480 5.6% 1975 - 1979 4 124 7.1% 604 7.3% 1980 - 1984 3 106 6.1% 710 7.5% 1985 - 1989 1 24 1.4% 734 4.2% 1990 - 1994 0 0 0.0% 734 0.0% 1995 - 1999 3 52 3.0% 786 5.8% 2000 - 2004 3 97 5.5% 883 2.1% 2005 0 0 0.0% 883 0.0% 2006 1 30 1.7% 913 0.0% 2007 0 0 0.0% 913 0.0% 2008 2 101 5.8% 1,014 9.9% 2009 1 40 2.3% 1,054 7.5% 2010 1 28 1.6% 1,082 0.0% 2011 2 81 4.6% 1,163 4.9% 2012 4 159 9.1% 1,322 1.9% 2013 5 329 18.8% 1,651 13.7% 2014 1 43 2.5% 1,694 0.0% 2015* 1 57 3.3% 1,751 49.1% TOTAL: 45 1,751 100.0 % 1,751 8.1%

AVERAGE ANNUAL RELEASE OF UNITS 2010 - 2014: 128

* THROUGH JULY 2015

VI-3

Page 97 of 224 08/13/2015 RENT AND VACANCY ANALYSIS STUDIO UNITS ABERDEEN, SOUTH DAKOTA JULY 2015 SITE EFFECTIVE MARKET AREA

TOTAL UNITS VACANCIES GROSS RENT NUMBER PERCENT NUMBER PERCENT $574 2 2.5% 0 0.0%

$469 - $474 13 16.0% 1 7.7%

$334 - $344 26 32.1% 0 0.0%

$304 - $314 34 42.0% 2 5.9%

$269 6 7.4% 0 0.0%

TOTAL 81 100.0% 3 3.7%

Median Gross Rent: $334

VI-4 Page 98 of 224 08/13/2015 RENT AND VACANCY ANALYSIS ONE BEDROOM UNITS ABERDEEN, SOUTH DAKOTA JULY 2015 SITE EFFECTIVE MARKET AREA

TOTAL UNITS VACANCIES GROSS RENT NUMBER PERCENT NUMBER PERCENT $950 8 1.3% 0 0.0%

$820 - $825 28 4.7% 6 21.4%

$790 - $795 87 14.6% 20 23.0%

$740 - $750 85 14.2% 16 18.8%

$710 - $715 36 6.0% 4 11.1%

$620 10 1.7% 3 30.0%

$565 11 1.8% 0 0.0%

$493 - $515 107 17.9% 6 5.6%

$468 - $474 70 11.7% 3 4.3%

$420 - $440 69 11.6% 0 0.0%

$389 - $404 79 13.2% 7 8.9%

$350 1 0.2% 0 0.0%

$324 6 1.0% 0 0.0%

TOTAL 597 100.0% 65 10.9%

Median Gross Rent: $514

VI-5 Page 99 of 224 08/13/2015 RENT AND VACANCY ANALYSIS TWO BEDROOM UNITS ABERDEEN, SOUTH DAKOTA JULY 2015 SITE EFFECTIVE MARKET AREA

TOTAL UNITS VACANCIES GROSS RENT NUMBER PERCENT NUMBER PERCENT $1624 28 3.1% 0 0.0%

$1499 27 3.0% 0 0.0%

$1374 2 0.2% 0 0.0%

$1274 - $1294 50 5.6% 3 6.0%

$1244 20 2.2% 3 15.0%

$1124 15 1.7% 1 6.7%

$1044 - $1049 48 5.4% 16 33.3%

$974 - $999 108 12.1% 9 8.3%

$924 - $939 59 6.6% 2 3.4%

$899 - $903 50 5.6% 4 8.0%

$868 - $874 59 6.6% 4 6.8%

$705 - $724 36 4.0% 3 8.3%

$668 - $690 38 4.2% 2 5.3%

$643 - $663 44 4.9% 3 6.8%

$603 - $624 50 5.6% 1 2.0%

$573 - $597 70 7.8% 4 5.7%

$554 - $568 20 2.2% 0 0.0%

$519 - $542 46 5.1% 2 4.3%

VI-6 Page 100 of 224 08/13/2015 RENT AND VACANCY ANALYSIS TWO BEDROOM UNITS ABERDEEN, SOUTH DAKOTA JULY 2015 SITE EFFECTIVE MARKET AREA

TOTAL UNITS VACANCIES GROSS RENT NUMBER PERCENT NUMBER PERCENT $488 - $512 66 7.4% 7 10.6%

$458 - $478 50 5.6% 3 6.0%

$420 - $428 9 1.0% 0 0.0%

TOTAL 895 100.0% 67 7.5%

Median Gross Rent: $874

VI-7 Page 101 of 224 08/13/2015 RENT AND VACANCY ANALYSIS THREE BEDROOM UNITS ABERDEEN, SOUTH DAKOTA JULY 2015 SITE EFFECTIVE MARKET AREA

TOTAL UNITS VACANCIES GROSS RENT NUMBER PERCENT NUMBER PERCENT $1539 12 6.9% 0 0.0%

$1409 - $1429 16 9.2% 2 12.5%

$1379 15 8.6% 1 6.7%

$1309 - $1310 44 25.3% 1 2.3%

$1204 12 6.9% 2 16.7%

$1084 12 6.9% 1 8.3%

$843 - $859 13 7.5% 0 0.0%

$778 - $800 26 14.9% 0 0.0%

$710 - $733 6 3.4% 0 0.0%

$633 - $653 11 6.3% 0 0.0%

$594 - $617 7 4.0% 0 0.0%

TOTAL 174 100.0% 7 4.0%

Median Gross Rent: $1,309

VI-8 Page 102 of 224 08/13/2015 RENT AND VACANCY ANALYSIS FOUR+ BEDROOM UNITS ABERDEEN, SOUTH DAKOTA JULY 2015 SITE EFFECTIVE MARKET AREA

TOTAL UNITS VACANCIES GROSS RENT NUMBER PERCENT NUMBER PERCENT $1006 2 50.0% 0 0.0%

$933 2 50.0% 0 0.0%

TOTAL 4 100.0% 0 0.0%

Median Gross Rent: $1,006

Gross rent includes the following utilities: heat, water heating, cooking fuel, electricity, water/sewer, and trash pickup. Any of these utilities paid by the tenant have been added to the street rent.

VI-9 Page 103 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 1 ACADIA CREEK 2013 48 93.8% TAX CREDIT - 40%, 50%, & 60% MERTON CREEK AMI; OPENED 10/2013-01/14; ABERDEEN SD OUTSIDE CAR PLUG-INS (605) 262-4151

2 SUNSHINE PARK TOWNHOMES 2010 28 100.0% TAX CREDIT; 40%, 50% & 60% 1524 S. LAWSON ST. AMI; 2 HANDICAPPED UNITS; ABERDEEN SD WAITING LIST: 2-BR. 235, 3-BR.- (605) 226-2321 81, 4-BR. 70 NAMES

3 JORDAN PARK TOWNHOMES 1972 40 100.0% GOVERNMENT SUBSIDIZED, 1415 S. HIGH ST./1515 15TH ST./1416 S. L HUD SECTIONS 8 & 236; ABERDEEN SD RENOVATED IN 2012 UNDER (605) 715-6331 TAX CREDIT PROGRAM; 30 TENANTS USE HOUSING CHOICE VOUCHERS; SHORT WAITING LIST 4 LAWSON VIEW TOWNHOMES 1975 32 100.0% GOVERNMENT SUBSIDIZED, 1316 S. LAWSON ST. SECTION 8/TAX CREDIT; ABERDEEN SD ABERDEEN PUBLIC HOUSING; (605) 226-2321 WAITING LIST: 2-BR. 91, 3-BR. 105, 3-BR. 24 NAMES

5 BICENTENNIAL 1985 48 100.0% GOVERNMENT SUBSIDIZED, 1212 S. LAWSON ST. HUD SECTION 8; ELDERLY, ABERDEEN SD HANDICAPPED; ALL UNITS 605 229-0080 HANDICAPPED-ACCESSIBLE; WAITING LIST

6 PARK SOUTH 1974 36 91.7% MULTIPLE OWNERS 25-111 W. MELGAARD RD. ABERDEEN SD 605 225-1578

VI-10 Page 104 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 7 LE CHATEAU 1971 26 92.3% FORMERLY A TAX CREDIT 16 9TH AVE. SW PROPERTY ABERDEEN SD

8 NARREGANG HOLDING CORPORATION 1935 21 100.0% SEVERAL LOCATIONS 903 JAY ST. ABERDEEN SD

9 STATESMAN 1980 36 88.9% OUTSIDE CAR PLUG-INS 1015 SE 7TH ST. ABERDEEN SD 605 225-1578

10 623 RIVERSIDE DRIVE 1974 8 100.0% DETACHED GARAGE INCLUDED; OUTSIDE CAR ABERDEEN SD PLUG-INS (855) 361-5672

11 PRAIRIE SPRINGS II 2011 65 93.8% 9' CEILINGS; HARDWOOD 116 WEBER ST. S FLOORS; KITCHEN ISLAND; ABERDEEN SD NON-SMOKING (605) 610-2108

12 CARLYLE 2001 42 100.0% TAX CREDIT; 20 UNITS 50%, 22 1901 3RD AVE. SE UNITS 60% AMI; ELDERLY ABERDEEN SD (55+); 1 ADDITIONAL 2-BR. (605) 715-6331 UNIT FOR MANAGER ONLY; SPRINKLER SYSTEM; BEAUTY SHOP; NON-SMOKING; OUTSIDE CAR PLUG-IN

VI-11 Page 105 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 13 FOX RIDGE 1980 48 95.8% OUTSIDE CAR PLUG-INS 2023 3RD AVE. SE ABERDEEN SD (605) 262-0141

14 ELMWOOD 1964 77 92.2% OUTSIDE CAR PLUG-INS 316 S. ELM ST. ABERDEEN SD (605) 262-0141

15 MARSHALL 1978 20 100.0% OUTSIDE CAR PLUG-INS 324 MARSHALL ST. ABERDEEN SD 605 225-1285

16 HOMESTEAD 1972 75 100.0% GOVERNMENT SUBSIDIZED, 2222 SE 3RD AVE. ABERDEEN HOUSING ABERDEEN SD AUTHORITY; ELDERLY, 605 225-9095 HANDICAP; WAITING LIST: 1- BR. 21, 2-BR. 6 NAMES

17 MEADOW WOOD TOWNHOMES 2012 32 100.0% TAX CREDIT (40%, 50% & 60% 102-127 MCDOWELL CIR. AMI); OPENED 04-08, 2012; ABERDEEN SD WAITING LIST: 2-BR. 77, 3-BR. (605) 226-2321 74, 4-BR. 33 NAMES

18 MEHLHOFF 1978 24 95.8% OUTSIDE CAR PLUG-INS 302-320 ILLINOIS ST. ABERDEEN SD (605) 725-3130

VI-12 Page 106 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 19 LAKEWOOD PLACE 2002 27 92.6% CENTRAL DETACHED GARAGE 2702 3RD AVE. SE BUILDING ADJACENT TO ABERDEEN SD BUILDING, 1 SPACE INCLUDED (605) 229-8632 IN RENT

20 PARAMOUNT PLACE 2009 40 92.5% GRANITE COUNTERS; 1 2802 3RD AVE. SE UNDERGROUND PARKING ABERDEEN SD SPACE INCLUDED IN RENT; (605) 225-3552 HIGHER-PRICED UNITS ARE ON TOP FLOOR; HEATED DRIVEWAY

21 M & I VILLAS 1996 32 90.6% DETACHED GARAGE INCLUDED 2701-2821 3RD AVE. SE ABERDEEN SD (605) 229-8631

22 ROSE PARK ARMS 1972 36 100.0% DETACHED GARAGE $45/MO. 222 GREENWOOD ST. ABERDEEN SD (605) 262-0141

23 2415-2603 RAILROAD AVENUE 1972 60 88.3% MULTIPLE OWNERS

ABERDEEN SD 605 225-1884

24 PARAMOUNT ESTATES 2008 36 83.3% GRANITE COUNTERS; 1 612 W. PARAMOUNT DR. UNDERGROUND PARKING ABERDEEN SD SPACE INCLUDED IN RENT (605) 229-8632

VI-13 Page 107 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 25 GOLDEN PARK 1989 24 95.8% 1224 NE 3RD AVE. ABERDEEN SD 605 225-1578

26 1003-1023 DAKOTA STREET NORTH 1977 24 83.3% DETACHED GARAGE $45/MO.

ABERDEEN SD (605) 229-0229

27 1215 DAKOTA STREET NORTH 1974 24 95.8%

ABERDEEN SD (605) 216-4911

28 605-823 NORTHEAST 15TH AVENUE 1978 56 92.9% MULTIPLE OWNERS & LOCATIONS; DETACHED ABERDEEN SD GARAGE $45/MO. (605) 225-7179

29 DAKOTA SQUARE 1970 55 100.0% GOVERNMENT SUBSIDIZED, 1902 N. DAKOTA ST. ABERDEEN HOUSING ABERDEEN SD AUTHORITY; FAMILY; WAITING 605 226-3353 LIST: 1-BR. 198, 2-BR. 25, 3-BR. 13, 4-BR. 45 NAMES; DETACHED GARAGE $20/MO.

30 ROCKFORD 1972 84 92.9% 1006 N. 2ND ST. ABERDEEN SD (605) 225-2330

VI-14 Page 108 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 31 1601-1631 OLIVE DRIVE 1972 24 100.0% DETACHED GARAGE $40/MO.

ABERDEEN SD 605 225-0100

32 SHERMAN 1981 51 100.0% GOVERNMENT SUBSIDIZED, 223 S. MAIN ABERDEEN PUBLIC HOUSING; ABERDEEN SD ELDERLY (62+) OR HANDICAP; 605 226-3162 63 NAMES ON WAITING LIST

33 CITIZENS BUILDING 1970 28 100.0% SEVERAL LOCATIONS 202 S. MAIN ST., #330 DOWNTOWN; 1ST FLOOR ABERDEEN SD RETAIL

34 5TH AVENUE 1979 50 100.0% GOVERNMENT SUBSIDIZED, 502 S. 1ST ST. HUD SECTION 8; ELDERLY, ABERDEEN SD HANDICAPPED; WAITING LIST 605 225-9504

35 J & O 1927 23 100.0% CONVERTED TO TAX CREDIT 224 4TH AVE. SE IN 1987, BECAME MARKET- ABERDEEN SD RATE IN 2003 (605) 225-1298

36 815 SOUTH STATE STREET 1980 22 90.9% OUTSIDE CAR PLUG-INS; DETACHED GARAGE ABERDEEN SD INCLUDED IN RENT (605) 380-6043

VI-15 Page 109 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 37 PRAIRIE SPRINGS I 2008 65 93.8% DETACHED GARAGE $50/MO.; 1314 S. 1ST AVE. SE KITCHEN ISLAND; 9' CEILINGS ABERDEEN SD (605) 725-2387

38 PRAIRIE VILLAGE 2013 152 78.9% 1-CAR GARAGE $50/MO.; 1215 N. ROOSEVELT ST. LARGE GARAGE $65/MO.; 9' ABERDEEN SD CEILINGS; KITCHEN ISLAND; (605) 610-2108 NON-SMOKING; PHASE II OPENED 03/15, STILL IN LEASE- UP; UNITS ARE WIRED FOR ALARM SYSTEM 39 DAKOTA ESTATES 2013 65 84.6% HIGHER-PRICED UNITS 917 27TH AVE. INCLUDE BALCONY OR PATIO; ABERDEEN SD STACKABLE WASHER & (605) 277-2531 DRYER; DETACHED GARAGES $50/MO.

40 HIGHLAND 1974 33 97.0% 11 9TH AVE. NE ABERDEEN SD (605) 622-0565

41 PARAMOUNT VILLAS 2011 16 100.0% 310 KENMORE ST. S. ABERDEEN SD (605) 229-8632

42 JACKSON HEIGHTS 2014 43 100.0% TAX CREDIT, 30%, 40%, 50% & 1016 1ST AVE. SE 60% AMI; OPENED 08/14; 100% ABERDEEN SD LEASED 11/14; WAITING LIST: (605) 226-2321 1-BR. 140, 2-BR. 33, 3-BR. 38 NAMES

VI-16 Page 110 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 43 ROOSEVELT 2013 32 100.0% BUILT IN 1925 AS A SCHOOL; 212 S. KLINE ST. OPENED 12/13; LEASED BY ABERDEEN SD 03/14 (605) 290-1169

44 ARBOR SPRINGS 2012 55 100.0% 1- & 2-CAR ATTACHED 1101 8TH AVE. NE GARAGE INCLUDED IN RENT; ABERDEEN SD GRANITE COUNTERTOPS; (605) 262-4222 SENIOR (55+); 20 NAMES ON WAITING LIST

45 MELGAARD PLACE 1998 8 100.0% DETACHED GARAGE 1701 E. MELGAARD RD. INCLUDED IN RENT ABERDEEN SD (605) 229-0004

46 S & S RENTALS 2013 32 100.0% ALL INCLUSIVE; ATTACHED 1721-1722 SE ABBY AVE. GARAGE INCLUDED IN RENT ABERDEEN SD (605) 380-9848

47 THE CORNERSTONE 2012 24 87.5% 1620 E. MELGAARD RD. ABERDEEN SD (605) 725-3130

48 EAST BRIAR COMMONS 2012 48 100.0% ATTACHED GARAGE 1201 NE 3RD AVE. INCLUDED IN RENT; ABERDEEN SD STAINLESS APPLIANCES; (605) 216-6446 HARDWOOD FLOORS IN DINING ROOM & KITCHEN

VI-17 Page 111 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS

49 THE LOFTS ON MAIN UNDER CONSTRUCTION UNDER CONSTRUCTION, DUE 321 S. MAIN ST. TO OPEN 01/16; 1ST FLOOR ABERDEEN SD RETAIL; STAINLESS (605) 225-1712 APPLIANCES; 9' CEILINGS; STORAGE; RENTS TO BE DETERMINED

50 THE LOFTS AT MELGAARD UNDER CONSTRUCTION UNDER CONSTRUCTION, DUE 316 17TH AVE. SE TO OPEN 10/15; ATTACHED ABERDEEN SD GARAGE INCLUDED IN RENT; (605) 225-1712 RENTS TO BE DETERMINED

51 NORTHERN COMMONS UNDER CONSTRUCTION UNDER CONSTRUCTION, DUE 1116 S. STATE ST. TO OPEN 02/16; STAINLESS ABERDEEN SD APPLIANCES (605) 225-1712

52 1000 S. ROOSEVELT ST. 2006 30 100.0% OLDER ADULTS (55+); DETACHED GARAGES ABERDEEN SD INCLUDED IN RENT (605) 225-4022

53 2013 SOUTHEAST 10TH AVE. 1999 12 100.0% OLDER ADULTS (55+); DETACHED GARAGE ABERDEEN SD INCLUDED IN RENT (605) 228-3757

54 PROSPECT I & II 2002 28 100.0% OLDER ADULTS (55+); 2023 PROSPECT AVE. DETACHED GARAGE ABERDEEN SD INCLUDED IN RENT (605) 225-4022

VI-18 Page 112 of 224 08/13/2015 PROJECT INFORMATION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT YEAR TOTAL PERCENT CODE NAME BUILT UNITS OCCUPIED COMMENTS 55 THE DEPOT 2015 57 50.9% OPENED 03/15; STILL IN LEASE- 1116 S. MAIN ST. UP; PRELEASING STARTED ABERDEEN SD 03/01/15 (605) 212-8387

VI-19 Page 113 of 224 08/13/2015 STREET RENT COMPARISON ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP ONE TWO THREE FOUR+ CODE PROJECT NAME STUDIO BEDROOM BEDROOM BEDROOM BEDROOM 1 ACADIA CREEK $432 - $625 $519 - $680

2 SUNSHINE PARK $463 - $546 $704 $841 TOWNHOMES

3 JORDAN PARK SUB. SUB. SUB. TOWNHOMES

4 LAWSON VIEW SUB. SUB. SUB. TOWNHOMES

5 BICENTENNIAL SUB.

6 PARK SOUTH $450

7 LE CHATEAU $380 $430

8 NARREGANG HOLDING $315 - $325 $380 - $400 CORPORATION

9 STATESMAN $400 $525 $600 $700

10 623 RIVERSIDE DRIVE $430

11 PRAIRIE SPRINGS II $615 - $695 $815 - $855

12 CARLYLE $420 - $515

13 FOX RIDGE $335 $395 $435

14 ELMWOOD $295 $490 $545

15 MARSHALL $285 $540

SUB. = GOVERNMENT SUBSIDIZED

VI-20 Page 114 of 224 08/13/2015 STREET RENT COMPARISON ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP ONE TWO THREE FOUR+ CODE PROJECT NAME STUDIO BEDROOM BEDROOM BEDROOM BEDROOM 16 HOMESTEAD SUB. SUB.

17 MEADOW WOOD $479 - $592 $684 $810 TOWNHOMES

18 MEHLHOFF $495

19 LAKEWOOD PLACE $1000 $1150

20 PARAMOUNT PLACE $725 - $775 $1200 - $1250 $1300 - $1350

21 M & I VILLAS $850

22 ROSE PARK ARMS $325 $450 $500

23 2415-2603 RAILROAD $410 $460 AVENUE

24 PARAMOUNT ESTATES $1200 - $1250 $1300 - $1350

25 GOLDEN PARK $400 - $425 $500 - $550

26 1003-1023 DAKOTA $285 $615 STREET NORTH

27 1215 DAKOTA STREET $285 $450 - $490 $615 NORTH

28 605-823 NORTHEAST $485 $640 15TH AVENUE

29 DAKOTA SQUARE SUB. SUB. SUB. SUB.

30 ROCKFORD $250 $375 $450 $600 - $700

SUB. = GOVERNMENT SUBSIDIZED

VI-21 Page 115 of 224 08/13/2015 STREET RENT COMPARISON ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP ONE TWO THREE FOUR+ CODE PROJECT NAME STUDIO BEDROOM BEDROOM BEDROOM BEDROOM 31 1601-1631 OLIVE DRIVE $375 $485 - $525

32 SHERMAN SUB.

33 CITIZENS BUILDING $300 - $375 $400 - $460

34 5TH AVENUE SUB.

35 J & O $440 $580

36 815 SOUTH STATE $365 $465 STREET

37 PRAIRIE SPRINGS I $655 - $695 $815 - $855

38 PRAIRIE VILLAGE $655 - $695 $775 - $855 $925 - $1045

39 DAKOTA ESTATES $660 - $695 $790 - $840

40 HIGHLAND $475 $550

41 PARAMOUNT VILLAS $725

42 JACKSON HEIGHTS $350 - $565 $420 - $690 $650 - $800

43 ROOSEVELT $395 - $500 $650 $750 - $1250 $1250

44 ARBOR SPRINGS $1375 - $1500

45 MELGAARD PLACE $775

46 S & S RENTALS $1350

SUB. = GOVERNMENT SUBSIDIZED

VI-22 Page 116 of 224 08/13/2015 STREET RENT COMPARISON ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP ONE TWO THREE FOUR+ CODE PROJECT NAME STUDIO BEDROOM BEDROOM BEDROOM BEDROOM 47 THE CORNERSTONE $750

48 EAST BRIAR COMMONS $800 $1100 $1300

49 THE LOFTS ON MAIN U N D E R C O N S T R U C T I O N

50 THE LOFTS AT U N D E R C O N S T R U C T I O N MELGAARD

51 NORTHERN COMMONS U N D E R C O N S T R U C T I O N

52 1000 S. ROOSEVELT ST. $800 - $925

53 2013 SOUTHEAST 10TH $875 AVE.

54 PROSPECT I & II $840 - $875

55 THE DEPOT $700 - $730 $920

NOTE: Rents listed are those quoted to our field analyst for new leases. Residents on older leases or renting month-to-month may be paying more or less, depending on changes in quoted rent. Rent specials and concessions are noted in the project information section of this field survey.

SUB. = GOVERNMENT SUBSIDIZED

VI-23 Page 117 of 224 08/13/2015 COMPARABILITY RATING MODERN APARTMENT DEVELOPMENT ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

COMPARABILITY FACTOR MAP CODE PROJECT UNIT PROJECT AESTHETIC TOTAL 1 ACADIA CREEK 10.0 2.5 7.5 20.0

2 SUNSHINE PARK 10.0 0.5 7.0 17.5 TOWNHOMES 3 JORDAN PARK 10.0 0.5 6.5 17.0 TOWNHOMES 4 LAWSON VIEW 9.0 1.5 5.5 16.0 TOWNHOMES 5 BICENTENNIAL 6.5 2.0 5.5 14.0

6 PARK SOUTH 6.0 1.0 5.5 12.5

7 LE CHATEAU 5.5 1.0 5.0 11.5

8 NARREGANG HOLDING 3.5 1.0 5.0 9.5 CORPORATION 9 STATESMAN 7.0 1.5 5.5 14.0

10 623 RIVERSIDE DRIVE 6.5 1.5 5.5 13.5

11 PRAIRIE SPRINGS II 12.0 2.0 7.0 21.0

12 CARLYLE 7.5 5.5 7.0 20.0

13 FOX RIDGE 6.5 2.0 5.5 14.0

14 ELMWOOD 6.5 1.5 5.0 13.0

15 MARSHALL 6.5 1.5 5.0 13.0

16 HOMESTEAD 6.5 2.5 6.5 15.5

VI-24 Page 118 of 224 08/13/2015 COMPARABILITY RATING MODERN APARTMENT DEVELOPMENT ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

COMPARABILITY FACTOR MAP CODE PROJECT UNIT PROJECT AESTHETIC TOTAL 17 MEADOW WOOD 9.5 1.5 7.0 18.0 TOWNHOMES 18 MEHLHOFF 7.5 1.5 5.5 14.5

19 LAKEWOOD PLACE 12.0 2.5 7.0 21.5

20 PARAMOUNT PLACE 12.5 1.5 7.0 21.0

21 M & I VILLAS 10.0 0.5 6.5 17.0

22 ROSE PARK ARMS 6.5 1.0 5.0 12.5

23 2415-2603 RAILROAD 6.5 1.0 5.5 13.0 AVENUE 24 PARAMOUNT ESTATES 12.5 1.0 6.5 20.0

25 GOLDEN PARK 6.0 1.0 5.5 12.5

26 1003-1023 DAKOTA 6.0 1.0 5.5 12.5 STREET NORTH 27 1215 DAKOTA STREET 6.0 1.0 5.5 12.5 NORTH 28 605-823 NORTHEAST 6.5 1.0 5.5 13.0 15TH AVENUE 29 DAKOTA SQUARE 6.0 2.0 5.5 13.5

30 ROCKFORD 6.0 2.0 5.0 13.0

31 1601-1631 OLIVE DRIVE 4.0 1.0 5.0 10.0

32 SHERMAN 7.0 3.5 5.5 16.0

VI-25 Page 119 of 224 08/13/2015 COMPARABILITY RATING MODERN APARTMENT DEVELOPMENT ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

COMPARABILITY FACTOR MAP CODE PROJECT UNIT PROJECT AESTHETIC TOTAL 33 CITIZENS BUILDING 5.5 1.0 5.5 12.0

34 5TH AVENUE 6.5 3.5 5.5 15.5

35 J & O 6.0 1.0 5.0 12.0

36 815 SOUTH STATE 6.0 1.5 5.5 13.0 STREET 37 PRAIRIE SPRINGS I 11.0 2.5 7.0 20.5

38 PRAIRIE VILLAGE 11.5 3.5 7.0 22.0

39 DAKOTA ESTATES 10.0 3.5 7.0 20.5

40 HIGHLAND 6.0 1.0 5.0 12.0

41 PARAMOUNT VILLAS 11.0 0.0 7.0 18.0

42 JACKSON HEIGHTS 9.5 1.5 7.0 18.0

43 ROOSEVELT 9.5 2.0 6.0 17.5

44 ARBOR SPRINGS 12.5 2.0 7.0 21.5

45 MELGAARD PLACE 10.0 0.0 6.5 16.5

46 S & S RENTALS 14.0 0.0 7.0 21.0

47 THE CORNERSTONE 10.5 0.5 6.5 17.5

48 EAST BRIAR COMMONS 13.0 0.0 7.5 20.5

VI-26 Page 120 of 224 08/13/2015 COMPARABILITY RATING MODERN APARTMENT DEVELOPMENT ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

COMPARABILITY FACTOR MAP CODE PROJECT UNIT PROJECT AESTHETIC TOTAL 49 THE LOFTS ON MAIN 12.5 1.0 8.5 22.0

50 THE LOFTS AT 12.0 0.0 8.5 20.5 MELGAARD 51 NORTHERN COMMONS 12.0 1.0 8.5 21.5

52 1000 S. ROOSEVELT ST. 11.5 1.5 6.5 19.5

53 2013 SOUTHEAST 10TH 11.5 0.0 6.5 18.0 AVE. 54 PROSPECT I & II 10.5 0.0 6.5 17.0

55 THE DEPOT 10.5 3.0 7.0 20.5

Point values have been assigned for unit and project amenities. Aesthetic amenities are based on general appearance, upkeep, landscaping, etc. and are based on the judgment of the field representative.

VI-27 Page 121 of 224 08/13/2015 PROJECT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

1 ACADIA CREEK X X X X

2 SUNSHINE PARK X TOWNHOMES

3 JORDAN PARK X TOWNHOMES

4 LAWSON VIEW X X TOWNHOMES

5 BICENTENNIAL X X

6 PARK SOUTH X

7 LE CHATEAU X

8 NARREGANG HOLDING X CORPORATION

9 STATESMAN X BIKE RACKS

10 623 RIVERSIDE DRIVE X

11 PRAIRIE SPRINGS II X X PET PARK

12 CARLYLE X X X X LIBARAY

SPORTS COURT V - VOLLEYBALL B - BASKETBALL R - RACQUETBALL

VI-28 Page 122 of 224 08/13/2015 PROJECT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

13 FOX RIDGE X X

14 ELMWOOD X

15 MARSHALL X

16 HOMESTEAD X X X

17 MEADOW WOOD X X TOWNHOMES

18 MEHLHOFF X

19 LAKEWOOD PLACE X X X

20 PARAMOUNT PLACE X COMMUNITY GARDEN

21 M & I VILLAS X

22 ROSE PARK ARMS X

23 2415-2603 RAILROAD X AVENUE

24 PARAMOUNT ESTATES X

SPORTS COURT V - VOLLEYBALL B - BASKETBALL R - RACQUETBALL

VI-29 Page 123 of 224 08/13/2015 PROJECT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

25 GOLDEN PARK X

26 1003-1023 DAKOTA X STREET NORTH

27 1215 DAKOTA STREET X NORTH

28 605-823 NORTHEAST 15TH X AVENUE

29 DAKOTA SQUARE X X X

30 ROCKFORD X X X

31 1601-1631 OLIVE DRIVE X

32 SHERMAN X X X X

33 CITIZENS BUILDING X

34 5TH AVENUE X X X X

35 J & O X

36 815 SOUTH STATE STREET X

SPORTS COURT V - VOLLEYBALL B - BASKETBALL R - RACQUETBALL

VI-30 Page 124 of 224 08/13/2015 PROJECT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

37 PRAIRIE SPRINGS I X X X PET PARK

38 PRAIRIE VILLAGE X X X X

39 DAKOTA ESTATES X X X X

40 HIGHLAND X

41 PARAMOUNT VILLAS

42 JACKSON HEIGHTS X X

43 ROOSEVELT X X

44 ARBOR SPRINGS X X BILLIARDS

45 MELGAARD PLACE

46 S & S RENTALS

47 THE CORNERSTONE X

48 EAST BRIAR COMMONS

SPORTS COURT V - VOLLEYBALL B - BASKETBALL R - RACQUETBALL

VI-31 Page 125 of 224 08/13/2015 PROJECT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

49 THE LOFTS ON MAIN X

50 THE LOFTS AT MELGAARD U N D E R C O N S T R U C T I O N

51 NORTHERN COMMONS X

52 1000 S. ROOSEVELT ST. X X

53 2013 SOUTHEAST 10TH AVE.

54 PROSPECT I & II

55 THE DEPOT X X X

SPORTS COURT V - VOLLEYBALL B - BASKETBALL R - RACQUETBALL

VI-32 Page 126 of 224 08/13/2015 UNIT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

1 ACADIA CREEK X X C X C X X X B A COMPUTER DESK

2 SUNSHINE PARK X X X C X X B X XA ATTACHED TOWNHOMES GARAGE

3 JORDAN PARK X X X X C XX XB X TOWNHOMES

4 LAWSON VIEW X X X C X X B X U TOWNHOMES

5 BICENTENNIAL X X W X B X

6 PARK SOUTH X X W X B S

7 LE CHATEAU X X W X

8 NARREGANG X X SB HOLDING CORPORATION 9 STATESMAN X X X W X B X

10 623 RIVERSIDE DRIVE X X W X B D

11 PRAIRIE SPRINGS II X X X X X C XX XB X X O X GARAGE $50/MO.

REFRIGERATOR AIR CONDITIONING WINDOW COVERINGS GARAGE BASEMENT S - SOME I -ICEMAKER C - CENTRAL AIR B - BLINDS A - ATTACHED U - UNFINISHED O - OPTIONAL F - FROSTFREE W - WINDOW UNIT D - DRAPES D - DETACHED F - FINISHED U - UNDERGROUND

VI-33 Page 127 of 224 08/13/2015 UNIT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

12 CARLYLE X X X W X B X

13 FOX RIDGE X X W X B X

14 ELMWOOD X X W XBX

15 MARSHALL X X W X B X

16 HOMESTEAD X X W X B X

17 MEADOW WOOD X X X X X C X X A TOWNHOMES

18 MEHLHOFF X X X C XBX

19 LAKEWOOD PLACE X X X X C XX XB X X D X STORAGE

20 PARAMOUNT PLACE X X X X C X X X B X X U X S STORAGE

21 M & I VILLAS X X X X C X X X X D X S

22 ROSE PARK ARMS X X W XB X O

VI-34 Page 128 of 224 08/13/2015 UNIT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

23 2415-2603 RAILROAD X X S C X B AVENUE

24 PARAMOUNT X X X X C X X X B X X U X S STORAGE ESTATES

25 GOLDEN PARK X X W XB

26 1003-1023 DAKOTA X X W X B S O STREET NORTH

27 1215 DAKOTA X X W X B STREET NORTH

28 605-823 NORTHEAST X X W X B X O 15TH AVENUE

29 DAKOTA SQUARE X X S W XB O

30 ROCKFORD X X W XB S

31 1601-1631 OLIVE X X W S S O DRIVE

32 SHERMAN X X X W X B X

33 CITIZENS BUILDING X X W X

VI-35 Page 129 of 224 08/13/2015 UNIT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

34 5TH AVENUE X X W X B X

35 J & O X X W X B

36 815 SOUTH STATE X X W X D STREET

37 PRAIRIE SPRINGS I X X X X X W X X X X X O X S HARDWOOD FLOORS

38 PRAIRIE VILLAGE X X X X X W X X X B X X O X S O HARDWOOD FLOORS

39 DAKOTA ESTATES X X X X X W X X X B X S O

40 HIGHLAND X X W XB S

41 PARAMOUNT VILLAS X X X X C XX X X A X

42 JACKSON HEIGHTS X X X X C X X X B O GARAGE $20/MO.

43 ROOSEVELT X X X X X C X X B X

44 ARBOR SPRINGS X X X X C XX XBX X A STAINLESS APPLIANCES

VI-36 Page 130 of 224 08/13/2015 UNIT AMENITIES DESCRIPTION ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

MAP PROJECT CODE NAME OTHER

45 MELGAARD PLACE X X X X C X B X X D X

46 S & S RENTALS X X X X C X X X B X A X FURNISHED

47 THE CORNERSTONE X X X X X W XX XB X X

48 EAST BRIAR X X X X X C X X X B X A X GRANITE COMMONS COUNTERS

49 THE LOFTS ON MAIN X X X X C X X X B X X GRANITE COUNTERS

50 THE LOFTS AT X X X X X C X X X B X A X MELGAARD

51 NORTHERN X X X X X C XX XB X X GRANITE COMMONS COUNTERS

52 1000 S. ROOSEVELT X X X X C XX XB X X D X ST.

53 2013 SOUTHEAST X X X X C X X X B X X D X 10TH AVE.

54 PROSPECT I & II X X X X W X X X B X D X

55 THE DEPOT X X X X X W XX XB X BLACK APPLIANCES

VI-37 Page 131 of 224 08/13/2015 DISTRIBUTION OF UNIT AND PROJECT AMENITIES MARKET RATE UNITS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

PROJECTS SOME UNITS PERCENTAGE UNIT AMENITIES ALL UNITS OR OPTIONAL TOTAL OF PROJECTS REFRIGERATOR 48 0 48 100.0% RANGE 48 0 48 100.0% MICROWAVE 13 0 13 27.1% DISHWASHER 27 1 28 58.3% DISPOSAL 25 0 25 52.1% AIR CONDITIONING 47 0 47 97.9% WASHER / DRYER 21 0 21 43.8% WASH / DRY HOOKUP 25 0 25 52.1% CARPET 46 2 48 100.0% WINDOW COVERINGS 40 0 40 83.3% FIREPLACE 1 0 1 2.1% INTERCOM SECURITY 17 0 17 35.4% BALCONY / PATIO 24 6 30 62.5% CAR PORT 1 0 1 2.1% GARAGE 18 9 27 56.3% BASEMENT 0 0 0 0.0% CEILING FAN 18 0 18 37.5% VAULTED CEILING 0 5 5 10.4% SECURITY SYSTEM 0 1 1 2.1% PROJECT AMENITIES POOL 0 0 0.0% COMMON BUILDING 8 8 16.7% SAUNA 0 0 0.0% HOT TUB 0 0 0.0% EXERCISE ROOM 5 5 10.4% TENNIS 0 0 0.0% PLAYGROUND 5 5 10.4% SPORTS COURT 0 0 0.0% JOG / BIKE TRAIL 0 0 0.0% LAKE 0 0 0.0% PICNIC AREA 2 2 4.2% LAUNDRY FACILITY 24 24 50.0% SECURITY GATE 0 0 0.0% ON SITE MANAGEMENT 11 11 22.9% ELEVATOR 13 13 27.1%

VI-38 Page 132 of 224 08/13/2015 UNIT TYPE / UTILITY DETAIL ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

NUMBER MAP PROJECT GARDEN TOWNHOUSE OF CODE NAME S 1 2 3 4+ 1 2 3 4+ FLOORS 1 ACADIA CREEK X X 2 G T G T E T T L L C T T

2 SUNSHINE PARK X X X 2 G T G L E T T L L C T T TOWNHOMES 3 JORDAN PARK X X X 2 G L G L E T T L L C T T TOWNHOMES 4 LAWSON VIEW X X X 2 E T E T E T T L L C T T TOWNHOMES 5 BICENTENNIAL X 1 G L G L E T T L L T

6 PARK SOUTH X 2.5 G L G L E T T L L C T T

7 LE CHATEAU X X 2 G L G L E T T L L C T T

8 NARREGANG HOLDING X X 2.5 G L G L E T T L L C T T CORPORATION 9 STATESMAN X X X X 2.5 E T E T E T T L L C T T

10 623 RIVERSIDE DRIVE X 2.5 E T E T E T T L L C T T

11 PRAIRIE SPRINGS II X X 3 E T E T E T T L L C T T

12 CARLYLE X 3 E L E L E L L L L C T T

13 FOX RIDGE X X X 2.5 E T E T E T T L L C T T

14 ELMWOOD X X X 2.5 G L G L E T T L L C T T

15 MARSHALL X X 2.5 G L G L E T T L L C T T

16 HOMESTEAD X X 1,2 E L G L E L L L L C T T

PAYOR UTILITIES CABLE TV L - LANDLORD E - ELECTRIC C - COAXIAL T - TENANT G - GAS S - SATELLITE S - STEAM O - OTHER

VI-39 Page 133 of 224 08/13/2015 UNIT TYPE / UTILITY DETAIL ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

NUMBER MAP PROJECT GARDEN TOWNHOUSE OF CODE NAME S 1 2 3 4+ 1 2 3 4+ FLOORS 17 MEADOW WOOD X X X 2 E T E T E T T L L C T T TOWNHOMES 18 MEHLHOFF X 1.5 E T E T E T T L L C T T

19 LAKEWOOD PLACE X X 3 E T E T E T T L L C T T

20 PARAMOUNT PLACE X X X 3 E T E T E T T L L C L L

21 M & I VILLAS X 2 E T E T E T T L L C T T

22 ROSE PARK ARMS X X X 2.5 G L G L E T T L L C T T

23 2415-2603 RAILROAD X X 2,2.5 G L G L E T T L L C T T AVENUE 24 PARAMOUNT ESTATES X X 3 E T E T E T T L L C L L

25 GOLDEN PARK X X 2.5 E T E T E T T L T C L T

26 1003-1023 DAKOTA X X 2.5 G L G L E T T L L C T T STREET NORTH 27 1215 DAKOTA STREET X X X 2.5 G L G L E T T L L C T T NORTH 28 605-823 NORTHEAST X X 2,2.5 G L G L E T T L L C T T 15TH AVENUE 29 DAKOTA SQUARE X X X X 2 G L G L E T T L L C T T

30 ROCKFORD X X X X 2.5 G L G L E T T L L C T T

31 1601-1631 OLIVE DRIVE X X 2.5 E T E T E T T L L C T T

32 SHERMAN X 7 E L G L E L L L L C T T

PAYOR UTILITIES CABLE TV L - LANDLORD E - ELECTRIC C - COAXIAL T - TENANT G - GAS S - SATELLITE S - STEAM O - OTHER

VI-40 Page 134 of 224 08/13/2015 UNIT TYPE / UTILITY DETAIL ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

NUMBER MAP PROJECT GARDEN TOWNHOUSE OF CODE NAME S 1 2 3 4+ 1 2 3 4+ FLOORS 33 CITIZENS BUILDING X X 2,2.5 G L G L E T T L L C T T

34 5TH AVENUE X 5 G L G L E L L L L C T T

35 J & O X X 2 G L G L E L L L L C T T

36 815 SOUTH STATE X X 2.5 G L G L E T T L L C T T STREET 37 PRAIRIE SPRINGS I X X 3 E T E T E T T L L C T T

38 PRAIRIE VILLAGE X X X 3 E T E T E T T L L C T T

39 DAKOTA ESTATES X X 3 E T E T E T T L L C T L

40 HIGHLAND X X 2.5 G L G L E T T L L C T T

41 PARAMOUNT VILLAS X 2 E T E T E T T L L C T T

42 JACKSON HEIGHTS X X X 3 E L E L E L L L L C T T

43 ROOSEVELT X X X X X 3 E T E T E T T L L T T

44 ARBOR SPRINGS X 1 E T E T E T T L L C T T

45 MELGAARD PLACE X 2 E T E T E T T L L C T T

46 S & S RENTALS X 1 E L E L E L L L L C L T

47 THE CORNERSTONE X 2 E T E T E T T L L C T T

48 EAST BRIAR COMMONS X X X 2 E T E T E T T T T C T T

PAYOR UTILITIES CABLE TV L - LANDLORD E - ELECTRIC C - COAXIAL T - TENANT G - GAS S - SATELLITE S - STEAM O - OTHER

VI-41 Page 135 of 224 08/13/2015 UNIT TYPE / UTILITY DETAIL ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

NUMBER MAP PROJECT GARDEN TOWNHOUSE OF CODE NAME S 1 2 3 4+ 1 2 3 4+ FLOORS 49 THE LOFTS ON MAIN UNDER CONSTRUCTION 3 E T E T E T T L L C T T

50 THE LOFTS AT UNDER CONSTRUCTION 1 E T E T E T T L L C T T MELGAARD 51 NORTHERN COMMONS UNDER CONSTRUCTION 3 E T E T E T T L L C T T

52 1000 S. ROOSEVELT ST. X 1 E T E T E T T L L C T T

53 2013 SOUTHEAST 10TH X 1 E T E T E T T L L C T T AVE. 54 PROSPECT I & II X 1 G L G L E T T L L C T T

55 THE DEPOT X X 3 E T E T E T T L L C T T

PAYOR UTILITIES CABLE TV L - LANDLORD E - ELECTRIC C - COAXIAL T - TENANT G - GAS S - SATELLITE S - STEAM O - OTHER

VI-42 Page 136 of 224 08/13/2015 RENT PER SQUARE FOOT COMPARISON STUDIO UNITS SITE EFFECTIVE MARKET AREA ABERDEEN, SOUTH DAKOTA

ADJUSTED Map UNIT SIZE RENT RENT PER SQ. FOOT Code Project Name Low High Low High Low High 8 NARREGANG HOLDING 300 300 $334 $344 $1.11 $1.15 CORPORATION

9 STATESMAN N.A. N.A. $474 $474 N.A. N.A.

14 ELMWOOD 300 300 $314 $314 $1.05 $1.05

15 MARSHALL 300 300 $304 $304 $1.01 $1.01

22 ROSE PARK ARMS N.A. N.A. $344 $344 N.A. N.A.

26 1003-1023 DAKOTA STREET NORTH 300 300 $304 $304 $1.01 $1.01

27 1215 DAKOTA STREET NORTH 300 300 $304 $304 $1.01 $1.01

30 ROCKFORD 450 450 $269 $269 $0.60 $0.60

43 ROOSEVELT 350 400 $469 $574 $1.34 $1.43

VI-43 Page 137 of 224 08/13/2015 RENT PER SQUARE FOOT COMPARISON ONE BEDROOM UNITS SITE EFFECTIVE MARKET AREA ABERDEEN, SOUTH DAKOTA

ADJUSTED Map UNIT SIZE RENT RENT PER SQ. FOOT Code Project Name Low High Low High Low High 6 PARK SOUTH 625 625 $474 $474 $0.76 $0.76

7 LE CHATEAU 600 600 $404 $404 $0.67 $0.67

8 NARREGANG HOLDING 550 550 $404 $424 $0.73 $0.77 CORPORATION

9 STATESMAN N.A. N.A. $620 $620 N.A. N.A.

11 PRAIRIE SPRINGS II 619 619 $710 $790 $1.15 $1.28

12 CARLYLE 620 620 $420 $515 $0.68 $0.83

13 FOX RIDGE 500 500 $430 $430 $0.86 $0.86

14 ELMWOOD 550 550 $514 $514 $0.93 $0.93

20 PARAMOUNT PLACE 640 640 $740 $790 $1.16 $1.23

22 ROSE PARK ARMS N.A. N.A. $474 $474 N.A. N.A.

23 2415-2603 RAILROAD AVENUE 550 600 $434 $434 $0.72 $0.79

25 GOLDEN PARK 600 600 $468 $493 $0.78 $0.82

27 1215 DAKOTA STREET NORTH 600 600 $474 $514 $0.79 $0.86

28 605-823 NORTHEAST 15TH AVENUE 600 650 $509 $509 $0.78 $0.85

30 ROCKFORD 750 750 $399 $399 $0.53 $0.53

31 1601-1631 OLIVE DRIVE N.A. N.A. $470 $470 N.A. N.A.

33 CITIZENS BUILDING 380 600 $324 $399 $0.67 $0.85

35 J & O 500 500 $440 $440 $0.88 $0.88

36 815 SOUTH STATE STREET 600 600 $389 $389 $0.65 $0.65

37 PRAIRIE SPRINGS I 619 619 $750 $790 $1.21 $1.28

38 PRAIRIE VILLAGE 619 619 $750 $790 $1.21 $1.28

39 DAKOTA ESTATES 619 619 $715 $750 $1.16 $1.21

40 HIGHLAND 590 590 $499 $499 $0.85 $0.85

VI-44 Page 138 of 224 08/13/2015 RENT PER SQUARE FOOT COMPARISON ONE BEDROOM UNITS SITE EFFECTIVE MARKET AREA ABERDEEN, SOUTH DAKOTA

ADJUSTED Map UNIT SIZE RENT RENT PER SQ. FOOT Code Project Name Low High Low High Low High 41 PARAMOUNT VILLAS 675 675 $820 $820 $1.21 $1.21

42 JACKSON HEIGHTS 679 679 $350 $565 $0.52 $0.83

43 ROOSEVELT 750 750 $745 $745 $0.99 $0.99

48 EAST BRIAR COMMONS 900 900 $950 $950 $1.06 $1.06

55 THE DEPOT 610 610 $795 $825 $1.30 $1.35

VI-45 Page 139 of 224 08/13/2015 RENT PER SQUARE FOOT COMPARISON TWO BEDROOM UNITS SITE EFFECTIVE MARKET AREA ABERDEEN, SOUTH DAKOTA

ADJUSTED Map UNIT SIZE RENT RENT PER SQ. FOOT Code Project Name Low High Low High Low High 1 ACADIA CREEK 927 1,036 $512 $705 $0.55 $0.68

2 SUNSHINE PARK TOWNHOMES 1,046 1,052 $529 $612 $0.51 $0.58

7 LE CHATEAU 700 700 $458 $458 $0.65 $0.65

9 STATESMAN N.A. N.A. $724 $724 N.A. N.A.

10 623 RIVERSIDE DRIVE 800 800 $554 $554 $0.69 $0.69

11 PRAIRIE SPRINGS II 912 912 $939 $979 $1.03 $1.07

13 FOX RIDGE 700 700 $519 $519 $0.74 $0.74

14 ELMWOOD 750 750 $573 $573 $0.76 $0.76

15 MARSHALL 675 675 $568 $568 $0.84 $0.84

17 MEADOW WOOD TOWNHOMES 1,036 1,036 $603 $716 $0.58 $0.69

18 MEHLHOFF 700 700 $619 $619 $0.88 $0.88

19 LAKEWOOD PLACE 1,050 1,050 $1,124 $1,124 $1.07 $1.07

20 PARAMOUNT PLACE 1,230 1,230 $1,244 $1,294 $1.01 $1.05

21 M & I VILLAS 1,065 1,065 $974 $974 $0.91 $0.91

22 ROSE PARK ARMS N.A. N.A. $528 $528 N.A. N.A.

23 2415-2603 RAILROAD AVENUE 700 800 $488 $488 $0.61 $0.70

24 PARAMOUNT ESTATES 1,230 1,230 $1,244 $1,294 $1.01 $1.05

25 GOLDEN PARK N.A. N.A. $597 $647 N.A. N.A.

26 1003-1023 DAKOTA STREET NORTH 700 700 $643 $643 $0.92 $0.92

27 1215 DAKOTA STREET NORTH 800 800 $643 $643 $0.80 $0.80

28 605-823 NORTHEAST 15TH AVENUE 700 750 $668 $668 $0.89 $0.95

30 ROCKFORD 800 800 $478 $478 $0.60 $0.60

31 1601-1631 OLIVE DRIVE N.A. N.A. $609 $649 N.A. N.A.

33 CITIZENS BUILDING 650 850 $428 $488 $0.57 $0.66

VI-46 Page 140 of 224 08/13/2015 RENT PER SQUARE FOOT COMPARISON TWO BEDROOM UNITS SITE EFFECTIVE MARKET AREA ABERDEEN, SOUTH DAKOTA

ADJUSTED Map UNIT SIZE RENT RENT PER SQ. FOOT Code Project Name Low High Low High Low High 35 J & O 700 700 $580 $580 $0.83 $0.83

36 815 SOUTH STATE STREET 700 700 $493 $493 $0.70 $0.70

37 PRAIRIE SPRINGS I 912 912 $939 $979 $1.03 $1.07

38 PRAIRIE VILLAGE 912 912 $899 $979 $0.99 $1.07

39 DAKOTA ESTATES 912 912 $874 $924 $0.96 $1.01

40 HIGHLAND 790 790 $578 $578 $0.73 $0.73

42 JACKSON HEIGHTS 926 926 $420 $690 $0.45 $0.75

43 ROOSEVELT 750 1,200 $874 $1,374 $1.14 $1.17

44 ARBOR SPRINGS 1,495 1,525 $1,499 $1,624 $1.00 $1.06

45 MELGAARD PLACE 900 900 $899 $899 $1.00 $1.00

47 THE CORNERSTONE 1,000 1,000 $874 $874 $0.87 $0.87

48 EAST BRIAR COMMONS 1,250 1,250 $1,287 $1,287 $1.03 $1.03

52 1000 S. ROOSEVELT ST. 800 950 $924 $1,049 $1.10 $1.15

53 2013 SOUTHEAST 10TH AVE. 900 900 $999 $999 $1.11 $1.11

54 PROSPECT I & II 850 850 $868 $903 $1.02 $1.06

55 THE DEPOT 930 930 $1,044 $1,044 $1.12 $1.12

VI-47 Page 141 of 224 08/13/2015 RENT PER SQUARE FOOT COMPARISON THREE BEDROOM UNITS SITE EFFECTIVE MARKET AREA ABERDEEN, SOUTH DAKOTA

ADJUSTED Map UNIT SIZE RENT RENT PER SQ. FOOT Code Project Name Low High Low High Low High 1 ACADIA CREEK 1,131 1,401 $617 $778 $0.55 $0.56

2 SUNSHINE PARK TOWNHOMES 1,392 1,392 $783 $783 $0.56 $0.56

9 STATESMAN N.A. N.A. $859 $859 N.A. N.A.

13 FOX RIDGE 900 900 $594 $594 $0.66 $0.66

17 MEADOW WOOD TOWNHOMES 1,252 1,252 $843 $843 $0.67 $0.67

19 LAKEWOOD PLACE 1,375 1,375 $1,309 $1,309 $0.95 $0.95

20 PARAMOUNT PLACE 1,330 1,330 $1,379 $1,429 $1.04 $1.07

24 PARAMOUNT ESTATES 1,330 1,330 $1,379 $1,429 $1.04 $1.07

30 ROCKFORD 1,000 1,000 $633 $733 $0.63 $0.73

38 PRAIRIE VILLAGE 1,209 1,209 $1,084 $1,204 $0.90 $1.00

42 JACKSON HEIGHTS 1,227 1,227 $650 $800 $0.53 $0.65

43 ROOSEVELT 1,250 1,250 $1,409 $1,409 $1.13 $1.13

46 S & S RENTALS 1,500 1,500 $1,310 $1,310 $0.87 $0.87

48 EAST BRIAR COMMONS 1,450 1,450 $1,539 $1,539 $1.06 $1.06

VI-48 Page 142 of 224 08/13/2015 RENT PER SQUARE FOOT COMPARISON FOUR+ BEDROOM UNITS SITE EFFECTIVE MARKET AREA ABERDEEN, SOUTH DAKOTA

ADJUSTED Map UNIT SIZE RENT RENT PER SQ. FOOT Code Project Name Low High Low High Low High 2 SUNSHINE PARK TOWNHOMES 1,572 1,572 $933 $933 $0.59 $0.59

17 MEADOW WOOD TOWNHOMES 1,597 1,597 $1,006 $1,006 $0.63 $0.63

VI-49 Page 143 of 224 08/13/2015 VII. MODERN APARTMENT LOCATIONS AND PHOTOGRAPHS

The following section contains a map/maps illustrating the locations of the modern apartments identified in the field survey (Section VI).

Following the maps are photographs of selected apartment properties. Apartment photographs may be selected for inclusion due to comparability of the property to the site, the property’s proximity to the site, or because the property is representative of area apartments.

VII-1

Page 144 of 224 08/13/2015 APARTMENT LOCATIONS REFERENCE MAP

MAP B

MAP A

MAP C

ABERDEEN, SOUTH DAKOTA

VII-2

Page 145 of 224 08/13/2015 APARTMENT LOCATIONS MAP A

ABERDEEN, SOUTH DAKOTA

VII-3

Page 146 of 224 08/13/2015 APARTMENT LOCATIONS MAP B

ABERDEEN, SOUTH DAKOTA

VII-4

Page 147 of 224 08/13/2015 APARTMENT LOCATIONS MAP C

ABERDEEN, SOUTH DAKOTA

VII-5

Page 148 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

1) ACADIA CREEK 2) SUNSHINE PARK TOWNHOMES

3) JORDAN PARK TOWNHOMES 4) LAWSON VIEW TOWNHOMES

5) BICENTENNIAL 6) PARK SOUTH

Page 149VII-6 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

7) LE CHATEAU 8) NARREGANG HOLDING CORPORATION

9) STATESMAN 10) 623 RIVERSIDE DRIVE

11) PRAIRIE SPRINGS II 12) CARLYLE

Page 150VII-7 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

13) FOX RIDGE 14) ELMWOOD

15) MARSHALL 16) HOMESTEAD

17) MEADOW WOOD TOWNHOMES 18) MEHLHOFF

Page 151VII-8 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

19) LAKEWOOD PLACE 20) PARAMOUNT PLACE

21) M & I VILLAS 22) ROSE PARK ARMS

23) 2415-2603 RAILROAD AVENUE 24) PARAMOUNT ESTATES

Page 152VII-9 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

25) GOLDEN PARK 26) 1003-1023 DAKOTA STREET NORTH

27) 1215 DAKOTA STREET NORTH 28) 605-823 NORTHEAST 15TH AVENUE

29) DAKOTA SQUARE 30) ROCKFORD

Page 153VII-10 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

31) 1601-1631 OLIVE DRIVE 32) SHERMAN

33) CITIZENS BUILDING 34) 5TH AVENUE

35) J & O 36) 815 SOUTH STATE STREET

Page 154VII-11 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

37) PRAIRIE SPRINGS I 38) PRAIRIE VILLAGE

39) DAKOTA ESTATES 40) HIGHLAND

41) PARAMOUNT VILLAS 42) JACKSON HEIGHTS

Page 155VII-12 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

43) ROOSEVELT 44) ARBOR SPRINGS

45) MELGAARD PLACE 46) S & S RENTALS

47) THE CORNERSTONE 48) EAST BRIAR COMMONS

Page 156VII-13 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

49) THE LOFTS ON MAIN 50) THE LOFTS AT MELGAARD

51) NORTHERN COMMONS 52) 1000 S. ROOSEVELT ST.

53) 2013 SOUTHEAST 10TH AVE. 54) PROSPECT I & II

Page 157VII-14 of 224 08/13/2015 APARTMENT PHOTOGRAPHS ABERDEEN, SOUTH DAKOTA SITE EFFECTIVE MARKET AREA JULY 2015

55) THE DEPOT

Page 158VII-15 of 224 08/13/2015 VIII. AREA ECONOMY

A. EMPLOYMENT CONDITIONS

Major employers in the Aberdeen area are:

NUMBER OF EMPLOYER EMPLOYEES SECTOR Sanford Health 1,800 Health Care & Social Assistance Avera Saint Luke’s Hospital 1,500 Health Care & Social Assistance Aberdeen Public School District 650 Educational Services 3M 650 Manufacturing Wells Fargo Auto Finance 450 Finance & Insurance Super 8 Worldwide 400 Administration & Support Services Hub City, Incorporated 339 Manufacturing South Dakota Wheat Growers 310 Agriculture Midstates Printing/Quality Quick Print 300 Manufacturing Northern State University 298 Educational Services Kessler’s, Incorpoprated 260 Retail Trade SOURCE: Aberdeen Develo0pment Corporation

VIII-1

Page 159 of 224 08/13/2015 EMPLOYMENT AND UNEMPLOYMENT RATES BROWN COUNTY, SOUTH DAKOTA 2005-2015*

EMPLOYMENT 21,000

20,800

20,600

20,400

20,200

20,000

19,800

19,600

19,400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

VIII-2

Page 160 of 224 08/13/2015 DISTRIBUTION OF EMPLOYMENT BY CATEGORY BROWN COUNTY AND THE EFFECTIVE MARKET AREA

BROWN COUNTY EFFECTIVE MARKET AREA TOTAL TOTAL EMPLOYMENT CATEGORY EMPLOYMENT DISTRIBUTION EMPLOYMENT DISTRIBUTION AGRICULTURE, FORESTRY, 171 0.7% 15 0.1% FISHING & HUNTING MINING 3 0.0% 0 0.0% UTILITIES 159 0.6% 110 0.5% CONSTRUCTION 1,882 7.2% 1,363 6.5% MANUFACTURING 2,148 8.2% 1,471 7.1% WHOLESALE TRADE 1,369 5.2% 982 4.7% RETAIL TRADE 3,666 14.0% 2,964 14.2% TRANSPORTATION & 462 1.8% 252 1.2% WAREHOUSING INFORMATION 637 2.4% 375 1.8% FINANCE & INSURANCE 1,678 6.4% 1,577 7.6% REAL ESTATE, RENTAL & 613 2.3% 561 2.7% LEASING PROFESSIONAL, SCIENTIFIC & 659 2.5% 531 2.5% TECH SERVICES MANAGEMENT OF COMPANIES & 25 0.1% 19 0.1% ENTERPRISES ADMINISTRATIVE, SUPPORT, & 332 1.3% 246 1.2% WASTE MANAGEMENT EDUCATIONAL SERVICES 1,117 4.3% 829 4.0% HEALTH CARE & SOCIAL 4,562 17.4% 4,312 20.7% ASSISTANCE ARTS, ENTERTAINMENT & 385 1.5% 289 1.4% RECREATION ACCOMMODATION & FOOD 2,354 9.0% 1,871 9.0% SERVICES OTHER SERVICES (EXCEPT 2,170 8.3% 1,642 7.9% PUBLIC ADMINISTRATION) PUBLIC ADMINISTRATION 1,744 6.6% 1,397 6.7% UNCLASSIFIED ESTABLISHMENTS 131 0.5% 58 0.3% TOTAL 26,267 100.0% 20,864 100.0% SOURCE: ESRI, Incorporated

VIII-3

Page 161 of 224 08/13/2015 The city of Aberdeen EMA encompasses 79.4% of the jobs in Brown County.

The highest shares of employment in Brown County are within Health Care and Social Assistance and Retail Trade (17.4% and 14.0% respectively). Health Care and Social Assistance also ranks first in the Aberdeen EMA (20.7%) and Retail Trade is second (14.2%).

B. HOUSING STARTS

In an analysis of housing starts by building permits in Brown County, South Dakota since 2005, the peak year was 2012 with 324 units; 61.4% of these were multifamily units. In 2013, there were 295 starts, and there were 145 in 2014.

Housing starts in the city of Aberdeen accounted for 83.9% of the total Brown County starts. Since 2005, there have been permits issued representing 1,644 units in Aberdeen, 51.8% of which have been multifamily units.

VIII-4

Page 162 of 224 08/13/2015 HOUSING UNITS AUTHORIZED BROWN COUNTY, SOUTH DAKOTA 2005-2014

SINGLE- YEAR FAMILY MULTIFAMILY TOTAL 2005 103 21 124 2006 95 18 113 2007 126 46 172 2008 132 11 143 2009 104 169 273 2010 93 77 170 2011 121 80 201 2012 125 199 324 2013 122 173 295 2014 84 61 145

250

200

150

100

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SINGLE-FAMILY MULTIFAMILY

The Brown County building permit system covers the entire county

SOURCES: U.S. Department of Commerce, C-40 Construction Reports Danter Company, LLC

VIII-5

Page 163 of 224 08/13/2015 HOUSING UNITS AUTHORIZED ABERDEEN, SOUTH DAKOTA 2005-2014

SINGLE- YEAR FAMILY MULTIFAMILY TOTAL 2005 69 21 90 2006 64 18 82 2007 96 46 142 2008 85 11 96 2009 77 169 246 2010 63 77 140 2011 94 80 174 2012 92 199 291 2013 91 173 264 2014 62 57 119

250

200

150

100

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SINGLE-FAMILY MULTIFAMILY

SOURCES: U.S. Department of Commerce, C-40 Construction Reports Danter Company, LLC

VIII-6

Page 164 of 224 08/13/2015 DEMOGRAPHICS

SITE EFFECTIVE MARKET AREA

ABERDEEN, SOUTH DAKOTA

BROWN COUNTY

Page 165 of 224 08/13/2015 2010 Census Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636

2000-2010 2000 2010 Annual Rate Population 25,268 25,941 0.26% Households 10,768 11,364 0.54% Housing Units 11,510 12,105 0.51%

Population by Race Number Percent Total 25,941 100.0% Population Reporting One Race 25,430 98.0% White 23,830 91.9% Black 172 0.7% American Indian 944 3.6% Asian 322 1.2% Pacific Islander 41 0.2% Some Other Race 121 0.5% Population Reporting Two or More Races 511 2.0%

Total Hispanic Population 410 1.6%

Population by Sex Male 12,381 47.7% Female 13,560 52.3%

Population by Age Total 25,940 100.0% Age 0 - 4 1,821 7.0% Age 5 - 9 1,580 6.1% Age 10 - 14 1,499 5.8% Age 15 - 19 1,738 6.7% Age 20 - 24 2,458 9.5% Age 25 - 29 1,963 7.6% Age 30 - 34 1,538 5.9% Age 35 - 39 1,332 5.1% Age 40 - 44 1,392 5.4% Age 45 - 49 1,716 6.6% Age 50 - 54 1,791 6.9% Age 55 - 59 1,640 6.3% Age 60 - 64 1,295 5.0% Age 65 - 69 938 3.6% Age 70 - 74 854 3.3% Age 75 - 79 769 3.0% Age 80 - 84 742 2.9% Age 85+ 875 3.4%

Age 18+ 20,162 77.7% Age 65+ 4,178 16.1%

Median Age by Sex and Race/Hispanic Origin Total Population 36.4 Male 34.5 Female 38.4 White Alone 38.4 Black Alone 24.1 American Indian Alone 25.0 Asian Alone 24.0 Pacific Islander Alone 23.4 Some Other Race Alone 26.9 Two or More Races 14.4 Hispanic Population 22.9 Data Note: Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri converted Census 2000 data into 2010 geography.

July 09, 2015

Page 166 of 224 08/13/2015 2010 Census Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636

Households by Type Total 11,364 100.0% Households with 1 Person 4,156 36.6% Households with 2+ People 7,208 63.4% Family Households 6,374 56.1% Husband-wife Families 4,849 42.7% With Own Children 1,892 16.6% Other Family (No Spouse Present) 1,525 13.4% With Own Children 1,004 8.8% Nonfamily Households 834 7.3%

All Households with Children 3,083 27.1% Multigenerational Households 133 1.2% Unmarried Partner Households 779 6.9% Male-female 752 6.6% Same-sex 27 0.2% Average Household Size 2.18

Family Households by Size Total 6,374 100.0% 2 People 3,217 50.5% 3 People 1,325 20.8% 4 People 1,105 17.3% 5 People 496 7.8% 6 People 166 2.6% 7+ People 65 1.0% Average Family Size 2.86

Nonfamily Households by Size Total 4,991 100.0% 1 Person 4,156 83.3% 2 People 661 13.2% 3 People 114 2.3% 4 People 40 0.8% 5 People 18 0.4% 6 People 2 0.0% 7+ People 0 0.0% Average Nonfamily Size 1.22

Population by Relationship and Household Type Total 25,941 100.0% In Households 24,814 95.7% In Family Households 18,746 72.3% Householder 6,354 24.5% Spouse 4,832 18.6% Child 6,637 25.6% Other relative 390 1.5% Nonrelative 533 2.1% In Nonfamily Households 6,067 23.4% In Group Quarters 1,127 4.3% Institutionalized Population 369 1.4% Noninstitutionalized Population 758 2.9%

Data Note: Households with children include any households with people under age 18, related or not. Multigenerational households are families with 3 or more parent-child relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the householder. Multigenerational and unmarried partner households are reported only to the tract level. Esri estimated block group data, which is used to estimate polygons or non-standard geography. Average family size excludes nonrelatives. Source: U.S. Census Bureau, Census 2010 Summary File 1.

July 09, 2015

Page 167 of 224 08/13/2015 2010 Census Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636

Family Households by Age of Householder Total 6,376 100.0% Householder Age 15 - 44 2,686 42.1% Householder Age 45 - 54 1,351 21.2% Householder Age 55 - 64 1,078 16.9% Householder Age 65 - 74 671 10.5% Householder Age 75+ 590 9.3%

Nonfamily Households by Age of Householder Total 4,991 100.0% Householder Age 15 - 44 1,905 38.2% Householder Age 45 - 54 779 15.6% Householder Age 55 - 64 784 15.7% Householder Age 65 - 74 479 9.6% Householder Age 75+ 1,044 20.9%

Households by Race of Householder Total 11,364 100.0% Householder is White Alone 10,740 94.5% Householder is Black Alone 53 0.5% Householder is American Indian Alone 331 2.9% Householder is Asian Alone 77 0.7% Householder is Pacific Islander Alone 8 0.1% Householder is Some Other Race Alone 34 0.3% Householder is Two or More Races 121 1.1% Households with Hispanic Householder 123 1.1%

Husband-wife Families by Race of Householder Total 4,850 100.0% Householder is White Alone 4,663 96.1% Householder is Black Alone 11 0.2% Householder is American Indian Alone 91 1.9% Householder is Asian Alone 29 0.6% Householder is Pacific Islander Alone 6 0.1% Householder is Some Other Race Alone 15 0.3% Householder is Two or More Races 35 0.7% Husband-wife Families with Hispanic Householder 42 0.9%

Other Families (No Spouse) by Race of Householder Total 1,525 100.0% Householder is White Alone 1,342 88.0% Householder is Black Alone 9 0.6% Householder is American Indian Alone 121 7.9% Householder is Asian Alone 11 0.7% Householder is Pacific Islander Alone 0 0.0% Householder is Some Other Race Alone 6 0.4% Householder is Two or More Races 36 2.4% Other Families with Hispanic Householder 25 1.6%

Nonfamily Households by Race of Householder Total 4,991 100.0% Householder is White Alone 4,735 94.9% Householder is Black Alone 33 0.7% Householder is American Indian Alone 118 2.4% Householder is Asian Alone 38 0.8% Householder is Pacific Islander Alone 2 0.0% Householder is Some Other Race Alone 14 0.3% Householder is Two or More Races 51 1.0% Nonfamily Households with Hispanic Householder 56 1.1% Source: U.S. Census Bureau, Census 2010 Summary File 1.

July 09, 2015

Page 168 of 224 08/13/2015 2010 Census Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636

Total Housing Units by Occupancy Total 12,091 100.0% Occupied Housing Units 11,364 94.0% Vacant Housing Units For Rent 294 2.4% Rented, not Occupied 28 0.2% For Sale Only 103 0.9% Sold, not Occupied 20 0.2% For Seasonal/Recreational/Occasional Use 50 0.4% For Migrant Workers 4 0.0% Other Vacant 228 1.9% Total Vacancy Rate 6.1%

Households by Tenure and Mortgage Status Total 11,364 100.0% Owner Occupied 6,880 60.5% Owned with a Mortgage/Loan 4,462 39.3% Owned Free and Clear 2,418 21.3% Average Household Size 2.43 Renter Occupied 4,484 39.5% Average Household Size 1.81

Owner-occupied Housing Units by Race of Householder Total 6,880 100.0% Householder is White Alone 6,665 96.9% Householder is Black Alone 8 0.1% Householder is American Indian Alone 125 1.8% Householder is Asian Alone 28 0.4% Householder is Pacific Islander Alone 2 0.0% Householder is Some Other Race Alone 5 0.1% Householder is Two or More Races 47 0.7% Owner-occupied Housing Units with Hispanic Householder 39 0.6%

Renter-occupied Housing Units by Race of Householder Total 4,485 100.0% Householder is White Alone 4,075 90.9% Householder is Black Alone 46 1.0% Householder is American Indian Alone 206 4.6% Householder is Asian Alone 49 1.1% Householder is Pacific Islander Alone 6 0.1% Householder is Some Other Race Alone 29 0.6% Householder is Two or More Races 74 1.7% Renter-occupied Housing Units with Hispanic Householder 85 1.9%

Average Household Size by Race/Hispanic Origin of Householder Householder is White Alone 2.16 Householder is Black Alone 1.94 Householder is American Indian Alone 2.67 Householder is Asian Alone 2.35 Householder is Pacific Islander Alone 4.50 Householder is Some Other Race Alone 2.97 Householder is Two or More Races 2.40 Householder is Hispanic 2.48

Source: U.S. Census Bureau, Census 2010 Summary File 1.

July 09, 2015

Page 169 of 224 08/13/2015 Business Summary

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636

Data for all businesses in area Total Businesses: 1,650 Total Employees: 20,863 Total Residential Population: 27,429 Employee/Residential Population Ratio: 0.76:1

Employees by SIC Codes Number Percent Number Percent Agriculture & Mining 21 1.3% 91 0.4% Construction 146 8.8% 1,329 6.4% Manufacturing 38 2.3% 1,558 7.5% Transportation 40 2.4% 369 1.8% Communication 13 0.8% 174 0.8% Utility 6 0.4% 121 0.6% Wholesale Trade 70 4.2% 994 4.8%

Retail Trade Summary 315 19.1% 4,473 21.4% Home Improvement 19 1.2% 215 1.0% General Merchandise Stores 9 0.5% 575 2.8% Food Stores 18 1.1% 172 0.8% Auto Dealers, Gas Stations, Auto Aftermarket 44 2.7% 639 3.1% Apparel & Accessory Stores 19 1.2% 90 0.4% Furniture & Home Furnishings 38 2.3% 249 1.2% Eating & Drinking Places 79 4.8% 1,469 7.0% Miscellaneous Retail 89 5.4% 1,065 5.1%

Finance, Insurance, Real Estate Summary 258 15.6% 1,834 8.8% Banks, Savings & Lending Institutions 112 6.8% 1,239 5.9% Securities Brokers 22 1.3% 126 0.6% Insurance Carriers & Agents 60 3.6% 198 0.9% Real Estate, Holding, Other Investment Offices 63 3.8% 271 1.3%

Services Summary 611 37.0% 8,482 40.7% Hotels & Lodging 20 1.2% 387 1.9% Automotive Services 59 3.6% 933 4.5% Motion Pictures & Amusements 48 2.9% 294 1.4% Health Services 108 6.5% 3,134 15.0% Legal Services 17 1.0% 106 0.5% Education Institutions & Libraries 28 1.7% 882 4.2% Other Services 331 20.1% 2,745 13.2%

Government 108 6.5% 1,388 6.7%

Unclassified Establishments 25 1.5% 51 0.2%

Page 170 of 224 08/13/2015 Business Summary

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636

Businesses Employees by NAICS Codes Number Percent Number Percent Agriculture, Forestry, Fishing & Hunting 4 0.2% 15 0.1% Mining 0 0.0% 0 0.0% Utilities 4 0.2% 110 0.5% Construction 152 9.2% 1,363 6.5% Manufacturing 42 2.5% 1,471 7.1% Wholesale Trade 67 4.1% 982 4.7% Retail Trade 228 13.8% 2,964 14.2% Motor Vehicle & Parts Dealers 30 1.8% 273 1.3% Furniture & Home Furnishings Stores 18 1.1% 107 0.5% Electronics & Appliance Stores 15 0.9% 77 0.4% Bldg Material & Garden Equipment & Supplies Dealers 18 1.1% 204 1.0% Food & Beverage Stores 17 1.0% 749 3.6% Health & Personal Care Stores 25 1.5% 128 0.6% Gasoline Stations 14 0.8% 366 1.8% Clothing & Clothing Accessories Stores 23 1.4% 104 0.5% Sport Goods, Hobby, Book, & Music Stores 19 1.2% 140 0.7% General Merchandise Stores 9 0.5% 575 2.8% Miscellaneous Store Retailers 39 2.4% 230 1.1% Nonstore Retailers 2 0.1% 12 0.1% Transportation & Warehousing 25 1.5% 252 1.2% Information 24 1.5% 375 1.8% Finance & Insurance 200 12.1% 1,577 7.6% Central Bank/Credit Intermediation & Related Activities 116 7.0% 1,249 6.0% Securities, Commodity Contracts & Other Financial 23 1.4% 130 0.6% Insurance Carriers & Related Activities; Funds, Trusts & 60 3.6% 198 0.9% Real Estate, Rental & Leasing 82 5.0% 561 2.7% Professional, Scientific & Tech Services 86 5.2% 531 2.5% Legal Services 19 1.2% 121 0.6% Management of Companies & Enterprises 2 0.1% 19 0.1% Administrative & Support & Waste Management & 54 3.3% 246 1.2% Educational Services 26 1.6% 829 4.0% Health Care & Social Assistance 162 9.8% 4,312 20.7% Arts, Entertainment & Recreation 47 2.8% 289 1.4% Accommodation & Food Services 100 6.1% 1,871 9.0% Accommodation 20 1.2% 387 1.9% Food Services & Drinking Places 80 4.8% 1,484 7.1% Other Services (except Public Administration) 210 12.7% 1,642 7.9% Automotive Repair & Maintenance 50 3.0% 900 4.3% Public Administration 110 6.7% 1,397 6.7%

Unclassified Establishments 26 1.6% 58 0.3%

Page 171 of 224 08/13/2015 Household Income Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636 2015-2020 2015-2020 Summary 2015 2020 Change Annual Rate Population 27,429 29,141 1,712 1.22% Households 12,160 12,981 821 1.32% Median Age 36.9 37.7 0.8 0.43% Average Household Size 2.16 2.16 0.00 0.00%

2015 2020 Households by Income Number Percent Number Percent Household 12,160 100% 12,981 100% Income<$15,000 Base 1,585 13.0% 1,593 12.3% $15,000-$24,999 1,607 13.2% 1,315 10.1% $25,000-$34,999 1,471 12.1% 1,260 9.7% $35,000-$49,999 2,095 17.2% 2,054 15.8% $50,000-$74,999 2,353 19.4% 2,812 21.7% $75,000-$99,999 1,436 11.8% 1,846 14.2% $100,000-$149,999 1,120 9.2% 1,435 11.1% $150,000-$199,999 194 1.6% 292 2.2% $200,000+ 298 2.5% 373 2.9%

Median Household Income $43,959 $51,548 Average Household Income $58,537 $66,911 Per Capita Income $25,972 $29,817

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 172 of 224 08/13/2015 Household Income Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636 2015 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 887 2,349 1,656 1,923 2,173 1,440 1,733

<$15,000 183 270 128 166 288 174 376 $15,000-$24,999 143 311 121 130 218 192 493 $25,000-$34,999 155 234 156 134 187 252 355 $35,000-$49,999 212 446 253 299 356 286 243 $50,000-$74,999 110 480 397 457 457 346 106 $75,000-$99,999 47 325 298 359 264 60 83 $100,000- 32 205 230 260 268 69 56 $150,000-$149,999 3 30 17 67 48 21 8 $200,000+$199,999 3 50 56 50 86 40 13

Median HH Income $31,964 $46,224 $58,051 $59,953 $51,317 $39,090 $24,918 Average HH $38,689 $58,630 $70,771 $72,107 $67,634 $53,308 $34,728 Income Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100%

<$15,000 20.6% 11.5% 7.7% 8.6% 13.3% 12.1% 21.7% $15,000-$24,999 16.1% 13.2% 7.3% 6.8% 10.0% 13.3% 28.4% $25,000-$34,999 17.5% 10.0% 9.4% 7.0% 8.6% 17.5% 20.5% $35,000-$49,999 23.9% 19.0% 15.3% 15.5% 16.4% 19.9% 14.0% $50,000-$74,999 12.4% 20.4% 24.0% 23.8% 21.0% 24.0% 6.1% $75,000-$99,999 5.3% 13.8% 18.0% 18.7% 12.1% 4.2% 4.8% $100,000- 3.6% 8.7% 13.9% 13.5% 12.3% 4.8% 3.2% $150,000-$149,999 0.3% 1.3% 1.0% 3.5% 2.2% 1.5% 0.5% $200,000+$199,999 0.3% 2.1% 3.4% 2.6% 4.0% 2.8% 0.8%

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 173 of 224 08/13/2015 Household Income Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636 2020 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 930 2,298 1,981 1,756 2,238 1,863 1,914

<$15,000 191 236 127 132 266 211 429 $15,000-$24,999 128 220 95 80 143 201 449 $25,000-$34,999 139 169 133 87 137 260 335 $35,000-$49,999 212 389 263 226 329 349 286 $50,000-$74,999 137 526 515 438 514 525 156 $75,000-$99,999 66 404 424 382 330 109 132 $100,000- 47 252 322 274 337 113 91 $150,000-$149,999 5 40 30 86 80 34 17 $200,000+$199,999 5 62 73 51 103 62 18

Median HH Income $35,314 $54,461 $65,708 $68,279 $59,227 $45,091 $26,755 Average HH $43,972 $68,463 $79,853 $81,567 $78,909 $61,289 $40,833 Income Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100%

<$15,000 20.5% 10.3% 6.4% 7.5% 11.9% 11.3% 22.4% $15,000-$24,999 13.8% 9.6% 4.8% 4.6% 6.4% 10.8% 23.5% $25,000-$34,999 14.9% 7.4% 6.7% 5.0% 6.1% 14.0% 17.5% $35,000-$49,999 22.8% 16.9% 13.3% 12.9% 14.7% 18.7% 14.9% $50,000-$74,999 14.7% 22.9% 26.0% 24.9% 23.0% 28.2% 8.2% $75,000-$99,999 7.1% 17.6% 21.4% 21.8% 14.7% 5.9% 6.9% $100,000- 5.1% 11.0% 16.3% 15.6% 15.1% 6.1% 4.8% $150,000-$149,999 0.5% 1.7% 1.5% 4.9% 3.6% 1.8% 0.9% $200,000+$199,999 0.5% 2.7% 3.7% 2.9% 4.6% 3.3% 0.9%

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 174 of 224 08/13/2015 Housing Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636

Population Households 2010 Total Population 25,941 2015 Median Household Income $43,959 2015 Total Population 27,429 2020 Median Household Income $51,548 2020 Total Population 29,141 2015-2020 Annual Rate 3.24% 2015-2020 Annual Rate 1.22%

Census 2010 2015 2020 Housing Units by Occupancy Status and Tenure Number Percent Number Percent Number Percent Total Housing Units 12,105 100.0% 12,978 100.0% 13,832 100.0% Occupied 11,364 93.9% 12,161 93.7% 12,982 93.9% Owner 6,880 56.8% 7,091 54.6% 7,560 54.7% Renter 4,484 37.0% 5,070 39.1% 5,422 39.2% Vacant 741 6.1% 818 6.3% 851 6.2%

2015 2020 Owner Occupied Housing Units by Value Number Percent Number Percent Total 7,092 100.0% 7,559 100.0% <$50,000 672 9.5% 399 5.3% $50,000-$99,999 1,747 24.6% 1,284 17.0% $100,000-$149,999 1,508 21.3% 1,740 23.0% $150,000-$199,999 1,183 16.7% 1,505 19.9% $200,000-$249,999 745 10.5% 1,056 14.0% $250,000-$299,999 417 5.9% 576 7.6% $300,000-$399,999 429 6.0% 489 6.5% $400,000-$499,999 171 2.4% 209 2.8% $500,000-$749,999 132 1.9% 181 2.4% $750,000-$999,999 31 0.4% 52 0.7% $1,000,000+ 57 0.8% 68 0.9%

Median Value $137,367 $161,844 Average Value $173,946 $197,377

Data Note: Persons of Hispanic Origin may be of any race. Source: U.S. Census Bureau, Census 2010 Summary File 1. July 09, 2015

Page 175 of 224 08/13/2015 Housing Profile

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles Latitude: 45.45907088 Longitude: -98.4741636

Census 2010 Owner Occupied Housing Units by Mortgage Status Number Percent Total 6,880 100.0% Owned with a Mortgage/Loan 4,462 64.9% Owned Free and Clear 2,418 35.1%

Census 2010 Vacant Housing Units by Status Number Percent Total 741 100.0% For Rent 294 39.7% Rented- Not Occupied 28 3.8% For Sale Only 103 13.9% Sold - Not Occupied 20 2.7% Seasonal/Recreational/Occasional Use 50 6.7% For Migrant Workers 4 0.5% Other Vacant 228 30.8%

Census 2010 Occupied Housing Units by Age of Householder and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 11,363 6,880 60.5% 15-24 1,054 153 14.5% 25-34 1,956 998 51.0% 35-44 1,579 1,046 66.2% 45-54 2,130 1,533 72.0% 55-64 1,862 1,375 73.8% 65-74 1,150 872 75.8% 75-84 1,043 667 64.0% 85+ 589 236 40.1%

Census 2010 Occupied Housing Units by Race/Ethnicity of Householder and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 11,365 6,880 60.5% White Alone 10,740 6,665 62.1% Black/African American 54 8 14.8% American 331 125 37.8% Asian Alone 77 28 36.4% Pacific Islander Alone 8 2 25.0% Other Race Alone 34 5 14.7% Two or More Races 121 47 38.8%

Hispanic Origin 124 39 31.5%

Census 2010 Occupied Housing Units by Size and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 11,365 6,881 60.5% 1-Person 4,157 1,695 40.8% 2-Person 3,878 2,726 70.3% 3-Person 1,439 1,023 71.1% 4-Person 1,144 868 75.9% 5-Person 514 397 77.2% 6-Person 168 131 78.0% 7+ Person 65 41 63.1%

Data Note: Persons of Hispanic Origin may be of any race. Source: U.S. Census Bureau, Census 2010 Summary File 1. July 09, 2015

Page 176 of 224 08/13/2015 Site Map

ABERDEEN, SD D1966 EMA ABERDEEN, SD D1966 EMA Area: 15.83 square miles

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place 2015-2020 2015-2020 Summary 2015 2020 Change Annual Rate Population 27,581 29,319 1,738 1.23% Households 12,228 13,059 831 1.32% Median Age 36.9 37.8 0.9 0.48% Average Household Size 2.16 2.16 0.00 0.00%

2015 2020 Households by Income Number Percent Number Percent Household 12,228 100% 13,060 100% Income<$15,000 Base 1,589 13.0% 1,597 12.2% $15,000-$24,999 1,609 13.2% 1,316 10.1% $25,000-$34,999 1,476 12.1% 1,264 9.7% $35,000-$49,999 2,108 17.2% 2,067 15.8% $50,000-$74,999 2,366 19.3% 2,827 21.6% $75,000-$99,999 1,447 11.8% 1,860 14.2% $100,000-$149,999 1,132 9.3% 1,451 11.1% $150,000-$199,999 198 1.6% 298 2.3% $200,000+ 303 2.5% 380 2.9%

Median Household Income $44,075 $51,649 Average Household Income $58,720 $67,124 Per Capita Income $26,027 $29,882

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 178 of 224 08/13/2015 Household Income Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place 2015 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 888 2,355 1,666 1,935 2,190 1,456 1,739

<$15,000 183 271 129 166 289 174 377 $15,000-$24,999 143 310 121 130 218 193 494 $25,000-$34,999 154 234 157 134 187 253 357 $35,000-$49,999 213 447 254 301 358 290 244 $50,000-$74,999 110 481 398 459 461 351 107 $75,000-$99,999 47 326 301 363 267 60 83 $100,000- 32 206 233 262 272 71 56 $150,000-$149,999 3 30 17 69 49 22 8 $200,000+$199,999 3 50 56 51 89 42 13

Median HH Income $32,025 $46,273 $58,147 $60,144 $51,526 $39,298 $24,951 Average HH $38,717 $58,683 $70,832 $72,413 $68,043 $53,583 $34,671 Income Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100%

<$15,000 20.6% 11.5% 7.7% 8.6% 13.2% 12.0% 21.7% $15,000-$24,999 16.1% 13.2% 7.3% 6.7% 10.0% 13.3% 28.4% $25,000-$34,999 17.3% 9.9% 9.4% 6.9% 8.5% 17.4% 20.5% $35,000-$49,999 24.0% 19.0% 15.2% 15.6% 16.3% 19.9% 14.0% $50,000-$74,999 12.4% 20.4% 23.9% 23.7% 21.1% 24.1% 6.2% $75,000-$99,999 5.3% 13.8% 18.1% 18.8% 12.2% 4.1% 4.8% $100,000- 3.6% 8.7% 14.0% 13.5% 12.4% 4.9% 3.2% $150,000-$149,999 0.3% 1.3% 1.0% 3.6% 2.2% 1.5% 0.5% $200,000+$199,999 0.3% 2.1% 3.4% 2.6% 4.1% 2.9% 0.7%

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 179 of 224 08/13/2015 Household Income Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place 2020 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 931 2,307 1,991 1,770 2,256 1,884 1,920

<$15,000 191 237 127 132 267 212 430 $15,000-$24,999 128 220 95 80 143 201 450 $25,000-$34,999 139 169 133 88 137 261 337 $35,000-$49,999 213 391 264 227 331 353 288 $50,000-$74,999 137 528 516 440 517 532 158 $75,000-$99,999 66 406 427 386 333 110 132 $100,000- 47 254 325 277 341 116 91 $150,000-$149,999 5 40 31 88 81 35 17 $200,000+$199,999 5 62 73 52 106 64 17

Median HH Income $35,335 $54,498 $65,873 $68,529 $59,419 $45,342 $26,780 Average HH $44,013 $68,573 $79,946 $81,774 $79,346 $61,686 $40,796 Income Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100%

<$15,000 20.5% 10.3% 6.4% 7.5% 11.8% 11.3% 22.4% $15,000-$24,999 13.7% 9.5% 4.8% 4.5% 6.3% 10.7% 23.4% $25,000-$34,999 14.9% 7.3% 6.7% 5.0% 6.1% 13.9% 17.6% $35,000-$49,999 22.9% 16.9% 13.3% 12.8% 14.7% 18.7% 15.0% $50,000-$74,999 14.7% 22.9% 25.9% 24.9% 22.9% 28.2% 8.2% $75,000-$99,999 7.1% 17.6% 21.4% 21.8% 14.8% 5.8% 6.9% $100,000- 5.0% 11.0% 16.3% 15.6% 15.1% 6.2% 4.7% $150,000-$149,999 0.5% 1.7% 1.6% 5.0% 3.6% 1.9% 0.9% $200,000+$199,999 0.5% 2.7% 3.7% 2.9% 4.7% 3.4% 0.9%

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 180 of 224 08/13/2015 Business Summary

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Geography: Place

Data for all businesses in area Aberdeen city, S... Total Businesses: 1,696 Total Employees: 21,622 Total Residential Population: 27,581 Employee/Residential Population Ratio: 0.78:1

Employees by SIC Codes Number Percent Number Percent Agriculture & Mining 20 1.2% 49 0.2% Construction 142 8.4% 1,376 6.4% Manufacturing 38 2.2% 2,031 9.4% Transportation 42 2.5% 387 1.8% Communication 14 0.8% 184 0.9% Utility 5 0.3% 107 0.5% Wholesale Trade 66 3.9% 986 4.6%

Retail Trade Summary 332 19.6% 5,016 23.2% Home Improvement 18 1.1% 248 1.1% General Merchandise Stores 11 0.6% 758 3.5% Food Stores 20 1.2% 185 0.9% Auto Dealers, Gas Stations, Auto Aftermarket 42 2.5% 685 3.2% Apparel & Accessory Stores 23 1.4% 114 0.5% Furniture & Home Furnishings 41 2.4% 275 1.3% Eating & Drinking Places 85 5.0% 1,642 7.6% Miscellaneous Retail 92 5.4% 1,109 5.1%

Finance, Insurance, Real Estate Summary 267 15.7% 1,836 8.5% Banks, Savings & Lending Institutions 118 7.0% 1,248 5.8% Securities Brokers 24 1.4% 130 0.6% Insurance Carriers & Agents 61 3.6% 203 0.9% Real Estate, Holding, Other Investment Offices 64 3.8% 255 1.2%

Services Summary 635 37.4% 8,181 37.8% Hotels & Lodging 25 1.5% 524 2.4% Automotive Services 58 3.4% 283 1.3% Motion Pictures & Amusements 49 2.9% 333 1.5% Health Services 112 6.6% 3,257 15.1% Legal Services 18 1.1% 108 0.5% Education Institutions & Libraries 28 1.7% 846 3.9% Other Services 345 20.3% 2,830 13.1%

Government 109 6.4% 1,418 6.6%

Unclassified Establishments 26 1.5% 51 0.2%

Page 181 of 224 08/13/2015 Business Summary

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Geography: Place

Businesses Employees by NAICS Codes Number Percent Number Percent Agriculture, Forestry, Fishing & Hunting 3 0.2% 4 0.0% Mining 0 0.0% 0 0.0% Utilities 4 0.2% 102 0.5% Construction 148 8.7% 1,410 6.5% Manufacturing 43 2.5% 1,948 9.0% Wholesale Trade 64 3.8% 976 4.5% Retail Trade 237 14.0% 3,329 15.4% Motor Vehicle & Parts Dealers 28 1.7% 325 1.5% Furniture & Home Furnishings Stores 18 1.1% 119 0.6% Electronics & Appliance Stores 17 1.0% 90 0.4% Bldg Material & Garden Equipment & Supplies Dealers 18 1.1% 248 1.1% Food & Beverage Stores 18 1.1% 759 3.5% Health & Personal Care Stores 27 1.6% 145 0.7% Gasoline Stations 14 0.8% 360 1.7% Clothing & Clothing Accessories Stores 27 1.6% 134 0.6% Sport Goods, Hobby, Book, & Music Stores 20 1.2% 155 0.7% General Merchandise Stores 11 0.6% 758 3.5% Miscellaneous Store Retailers 38 2.2% 234 1.1% Nonstore Retailers 1 0.1% 2 0.0% Transportation & Warehousing 25 1.5% 262 1.2% Information 26 1.5% 393 1.8% Finance & Insurance 208 12.3% 1,595 7.4% Central Bank/Credit Intermediation & Related Activities 122 7.2% 1,258 5.8% Securities, Commodity Contracts & Other Financial 25 1.5% 134 0.6% Insurance Carriers & Related Activities; Funds, Trusts & 61 3.6% 203 0.9% Real Estate, Rental & Leasing 84 5.0% 543 2.5% Professional, Scientific & Tech Services 93 5.5% 584 2.7% Legal Services 19 1.1% 122 0.6% Management of Companies & Enterprises 2 0.1% 20 0.1% Administrative & Support & Waste Management & 53 3.1% 210 1.0% Educational Services 26 1.5% 793 3.7% Health Care & Social Assistance 168 9.9% 4,449 20.6% Arts, Entertainment & Recreation 47 2.8% 318 1.5% Accommodation & Food Services 111 6.5% 2,181 10.1% Accommodation 25 1.5% 524 2.4% Food Services & Drinking Places 86 5.1% 1,657 7.7% Other Services (except Public Administration) 216 12.7% 1,020 4.7% Automotive Repair & Maintenance 49 2.9% 255 1.2% Public Administration 111 6.5% 1,427 6.6%

Unclassified Establishments 27 1.6% 58 0.3%

Page 182 of 224 08/13/2015 Demographic and Income Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place

Summary Census 2010 2015 2020 Population 26,091 27,581 29,319 Households 11,418 12,228 13,059 Families 6,354 6,788 7,191 Average Household Size 2.18 2.16 2.16 Owner Occupied Housing Units 6,839 7,149 7,628 Renter Occupied Housing Units 4,579 5,078 5,432 Median Age 36.4 36.9 37.8 Trends: 2015 - 2020 Annual Rate Area State National Population 1.23% 1.16% 0.75% Households 1.32% 1.26% 0.77% Families 1.16% 1.14% 0.69% Owner HHs 1.31% 1.29% 0.70% Median Household Income 3.22% 2.97% 2.66% 2015 2020 Households by Income Number Percent Number Percent <$15,000 1,589 13.0% 1,597 12.2% $15,000 - $24,999 1,609 13.2% 1,316 10.1% $25,000 - $34,999 1,476 12.1% 1,264 9.7% $35,000 - $49,999 2,108 17.2% 2,067 15.8% $50,000 - $74,999 2,366 19.3% 2,827 21.6% $75,000 - $99,999 1,447 11.8% 1,860 14.2% $100,000 - $149,999 1,132 9.3% 1,451 11.1% $150,000 - $199,999 198 1.6% 298 2.3% $200,000+ 303 2.5% 380 2.9%

Median Household Income $44,075 $51,649 Average Household Income $58,720 $67,124 Per Capita Income $26,027 $29,882 Census 2010 2015 2020 Population by Age Number Percent Number Percent Number Percent 0 - 4 1,827 7.0% 1,825 6.6% 1,911 6.5% 5 - 9 1,590 6.1% 1,737 6.3% 1,769 6.0% 10 - 14 1,506 5.8% 1,599 5.8% 1,803 6.1% 15 - 19 1,735 6.6% 1,785 6.5% 1,890 6.4% 20 - 24 2,479 9.5% 2,061 7.5% 2,106 7.2% 25 - 34 3,534 13.5% 4,209 15.3% 4,128 14.1% 35 - 44 2,759 10.6% 2,882 10.4% 3,445 11.7% 45 - 54 3,456 13.2% 3,202 11.6% 2,916 9.9% 55 - 64 2,928 11.2% 3,467 12.6% 3,578 12.2% 65 - 74 1,778 6.8% 2,268 8.2% 2,947 10.1% 75 - 84 1,578 6.0% 1,565 5.7% 1,774 6.1% 85+ 921 3.5% 984 3.6% 1,054 3.6% Census 2010 2015 2020 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 23,962 91.8% 24,247 87.9% 25,155 85.8% Black Alone 178 0.7% 809 2.9% 1,212 4.1% American Indian Alone 945 3.6% 1,038 3.8% 1,118 3.8% Asian Alone 329 1.3% 637 2.3% 840 2.9% Pacific Islander Alone 42 0.2% 78 0.3% 104 0.4% Some Other Race Alone 119 0.5% 131 0.5% 145 0.5% Two or More Races 516 2.0% 641 2.3% 746 2.5%

Hispanic Origin (Any Race) 412 1.6% 463 1.7% 522 1.8% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

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Page 183 of 224 08/13/2015 Demographic and Income Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place

Trends 2015-2020

2.5

1.5

1 Area 0.5 State Annual Rate (inAnnual Rate percent) USA 0 Population Households Families Owner HHs Median HH Income Population by Age

Percent 6

4 2015 2 2020

0 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ 2015 Household Income 2015 Population by Race

$15K - $24K $25K - $34K 80 12.1% 13.2% 70

<$15K 13.0% 60 $35K - $49K 17.2% 50

$200K+ 40

2.5% Percent $150K - $199K 30 1.6%

$100K - $149K 20 9.3%

$50K - $74K 10 19.3% $75K - $99K 11.8% 0 White Black Am. Ind. Asian Pacific Other Two+

2015 Percent Hispanic Origin: 1.7%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

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Page 184 of 224 08/13/2015 Housing Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place

Population Households 2010 Total Population 26,091 2015 Median Household Income $44,075 2015 Total Population 27,581 2020 Median Household Income $51,649 2020 Total Population 29,319 2015-2020 Annual Rate 3.22% 2015-2020 Annual Rate 1.23%

Census 2010 2015 2020 Housing Units by Occupancy Status and Tenure Number Percent Number Percent Number Percent Total Housing Units 12,158 100.0% 13,041 100.0% 13,904 100.0% Occupied 11,418 93.9% 12,227 93.8% 13,060 93.9% Owner 6,839 56.3% 7,149 54.8% 7,628 54.9% Renter 4,579 37.7% 5,078 38.9% 5,432 39.1% Vacant 740 6.1% 813 6.2% 845 6.1%

2015 2020 Owner Occupied Housing Units by Value Number Percent Number Percent Total 7,150 100.0% 7,630 100.0% <$50,000 677 9.5% 402 5.3% $50,000-$99,999 1,755 24.5% 1,289 16.9% $100,000-$149,999 1,519 21.2% 1,751 22.9% $150,000-$199,999 1,196 16.7% 1,523 20.0% $200,000-$249,999 754 10.5% 1,071 14.0% $250,000-$299,999 422 5.9% 584 7.7% $300,000-$399,999 434 6.1% 495 6.5% $400,000-$499,999 172 2.4% 211 2.8% $500,000-$749,999 133 1.9% 183 2.4% $750,000-$999,999 31 0.4% 53 0.7% $1,000,000+ 57 0.8% 68 0.9%

Median Value $137,623 $162,246 Average Value $174,017 $197,595

Data Note: Persons of Hispanic Origin may be of any race. Source: U.S. Census Bureau, Census 2010 Summary File 1. July 09, 2015

Page 185 of 224 08/13/2015 Housing Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place

Census 2010 Owner Occupied Housing Units by Mortgage Status Number Percent Total 6,839 100.0% Owned with a Mortgage/Loan 4,425 64.7% Owned Free and Clear 2,414 35.3%

Census 2010 Vacant Housing Units by Status Number Percent Total 740 100.0% For Rent 298 40.3% Rented- Not Occupied 27 3.6% For Sale Only 110 14.9% Sold - Not Occupied 22 3.0% Seasonal/Recreational/Occasional Use 52 7.0% For Migrant Workers 4 0.5% Other Vacant 227 30.7%

Census 2010 Occupied Housing Units by Age of Householder and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 11,418 6,839 59.9% 15-24 1,076 153 14.2% 25-34 1,984 1,005 50.7% 35-44 1,590 1,045 65.7% 45-54 2,110 1,507 71.4% 55-64 1,849 1,344 72.7% 65-74 1,138 853 75.0% 75-84 1,069 686 64.2% 85+ 602 246 40.9%

Census 2010 Occupied Housing Units by Race/Ethnicity of Householder and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 11,418 6,839 59.9% White Alone 10,784 6,619 61.4% Black/African American 53 8 15.1% American 335 127 37.9% Asian Alone 81 30 37.0% Pacific Islander Alone 8 2 25.0% Other Race Alone 35 6 17.1% Two or More Races 122 47 38.5%

Hispanic Origin 124 37 29.8%

Census 2010 Occupied Housing Units by Size and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 11,418 6,839 59.9% 1-Person 4,214 1,704 40.4% 2-Person 3,883 2,703 69.6% 3-Person 1,438 1,013 70.4% 4-Person 1,142 859 75.2% 5-Person 514 395 76.8% 6-Person 164 126 76.8% 7+ Person 63 39 61.9%

Data Note: Persons of Hispanic Origin may be of any race. Source: U.S. Census Bureau, Census 2010 Summary File 1. July 09, 2015

Page 186 of 224 08/13/2015 2010 Census Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place

2000-2010 2000 2010 Annual Rate Population 25,397 26,091 0.27% Households 10,812 11,418 0.55% Housing Units 11,552 12,158 0.51%

Population by Race Number Percent Total 26,091 100.0% Population Reporting One Race 25,575 98.0% White 23,962 91.8% Black 178 0.7% American Indian 945 3.6% Asian 329 1.3% Pacific Islander 42 0.2% Some Other Race 119 0.5% Population Reporting Two or More Races 516 2.0%

Total Hispanic Population 412 1.6%

Population by Sex Male 12,432 47.6% Female 13,659 52.4%

Population by Age Total 26,091 100.0% Age 0 - 4 1,827 7.0% Age 5 - 9 1,590 6.1% Age 10 - 14 1,506 5.8% Age 15 - 19 1,735 6.7% Age 20 - 24 2,479 9.5% Age 25 - 29 1,988 7.6% Age 30 - 34 1,546 5.9% Age 35 - 39 1,349 5.2% Age 40 - 44 1,410 5.4% Age 45 - 49 1,700 6.5% Age 50 - 54 1,756 6.7% Age 55 - 59 1,644 6.3% Age 60 - 64 1,284 4.9% Age 65 - 69 931 3.6% Age 70 - 74 847 3.2% Age 75 - 79 804 3.1% Age 80 - 84 774 3.0% Age 85+ 921 3.5%

Age 18+ 20,290 77.8% Age 65+ 4,277 16.4%

Median Age by Sex and Race/Hispanic Origin Total Population 36.4 Male 34.4 Female 38.5 White Alone 38.3 Black Alone 24.1 American Indian Alone 25.0 Asian Alone 24.1 Pacific Islander Alone 23.4 Some Other Race Alone 27.3 Two or More Races 14.3 Hispanic Population 22.6 Data Note: Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri converted Census 2000 data into 2010 geography.

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Page 187 of 224 08/13/2015 2010 Census Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place

Households by Type Total 11,418 100.0% Households with 1 Person 4,214 36.9% Households with 2+ People 7,204 63.1% Family Households 6,354 55.6% Husband-wife Families 4,808 42.1% With Own Children 1,884 16.5% Other Family (No Spouse Present) 1,546 13.5% With Own Children 1,025 9.0% Nonfamily Households 850 7.4%

All Households with Children 3,095 27.1% Multigenerational Households 128 1.1% Unmarried Partner Households 789 6.9% Male-female 761 6.7% Same-sex 28 0.2% Average Household Size 2.18

Family Households by Size Total 6,354 100.0% 2 People 3,210 50.5% 3 People 1,320 20.8% 4 People 1,102 17.3% 5 People 497 7.8% 6 People 162 2.6% 7+ People 63 1.0% Average Family Size 2.86

Nonfamily Households by Size Total 5,064 100.0% 1 Person 4,214 83.2% 2 People 673 13.3% 3 People 118 2.3% 4 People 40 0.8% 5 People 17 0.3% 6 People 2 0.0% 7+ People 0 0.0% Average Nonfamily Size 1.22

Population by Relationship and Household Type Total 26,091 100.0% In Households 24,900 95.4% In Family Households 18,729 71.8% Householder 6,354 24.4% Spouse 4,808 18.4% Child 6,643 25.5% Other relative 392 1.5% Nonrelative 532 2.0% In Nonfamily Households 6,171 23.7% In Group Quarters 1,191 4.6% Institutionalized Population 433 1.7% Noninstitutionalized Population 758 2.9%

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Page 188 of 224 08/13/2015 2010 Census Profile

Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place

Family Households by Age of Householder Total 6,354 100.0% Householder Age 15 - 44 2,714 42.7% Householder Age 45 - 54 1,326 20.9% Householder Age 55 - 64 1,056 16.6% Householder Age 65 - 74 651 10.2% Householder Age 75+ 607 9.6%

Nonfamily Households by Age of Householder Total 5,064 100.0% Householder Age 15 - 44 1,936 38.2% Householder Age 45 - 54 784 15.5% Householder Age 55 - 64 793 15.7% Householder Age 65 - 74 487 9.6% Householder Age 75+ 1,064 21.0%

Households by Race of Householder Total 11,418 100.0% Householder is White Alone 10,784 94.4% Householder is Black Alone 53 0.5% Householder is American Indian Alone 335 2.9% Householder is Asian Alone 81 0.7% Householder is Pacific Islander Alone 8 0.1% Householder is Some Other Race Alone 35 0.3% Householder is Two or More Races 122 1.1% Households with Hispanic Householder 124 1.1%

Husband-wife Families by Race of Householder Total 4,808 100.0% Householder is White Alone 4,621 96.1% Householder is Black Alone 11 0.2% Householder is American Indian Alone 90 1.9% Householder is Asian Alone 30 0.6% Householder is Pacific Islander Alone 6 0.1% Householder is Some Other Race Alone 16 0.3% Householder is Two or More Races 34 0.7% Husband-wife Families with Hispanic Householder 44 0.9%

Other Families (No Spouse) by Race of Householder Total 1,546 100.0% Householder is White Alone 1,359 87.9% Householder is Black Alone 10 0.6% Householder is American Indian Alone 124 8.0% Householder is Asian Alone 11 0.7% Householder is Pacific Islander Alone 0 0.0% Householder is Some Other Race Alone 6 0.4% Householder is Two or More Races 36 2.3% Other Families with Hispanic Householder 25 1.6%

Nonfamily Households by Race of Householder Total 5,064 100.0% Householder is White Alone 4,804 94.9% Householder is Black Alone 32 0.6% Householder is American Indian Alone 121 2.4% Householder is Asian Alone 40 0.8% Householder is Pacific Islander Alone 2 0.0% Householder is Some Other Race Alone 13 0.3% Householder is Two or More Races 52 1.0% Nonfamily Households with Hispanic Householder 55 1.1% Source: U.S. Census Bureau, Census 2010 Summary File 1.

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Aberdeen City, SD ABERDEEN, SD D1966 Aberdeen city, SD (4600100) Place

Total Housing Units by Occupancy Total 12,158 100.0% Occupied Housing Units 11,418 93.9% Vacant Housing Units For Rent 298 2.5% Rented, not Occupied 27 0.2% For Sale Only 110 0.9% Sold, not Occupied 22 0.2% For Seasonal/Recreational/Occasional Use 52 0.4% For Migrant Workers 4 0.0% Other Vacant 227 1.9% Total Vacancy Rate 6.1%

Households by Tenure and Mortgage Status Total 11,418 100.0% Owner Occupied 6,839 59.9% Owned with a Mortgage/Loan 4,425 38.8% Owned Free and Clear 2,414 21.1% Average Household Size 2.43 Renter Occupied 4,579 40.1% Average Household Size 1.81

Owner-occupied Housing Units by Race of Householder Total 6,839 100.0% Householder is White Alone 6,619 96.8% Householder is Black Alone 8 0.1% Householder is American Indian Alone 127 1.9% Householder is Asian Alone 30 0.4% Householder is Pacific Islander Alone 2 0.0% Householder is Some Other Race Alone 6 0.1% Householder is Two or More Races 47 0.7% Owner-occupied Housing Units with Hispanic Householder 37 0.5%

Renter-occupied Housing Units by Race of Householder Total 4,579 100.0% Householder is White Alone 4,165 91.0% Householder is Black Alone 45 1.0% Householder is American Indian Alone 208 4.5% Householder is Asian Alone 51 1.1% Householder is Pacific Islander Alone 6 0.1% Householder is Some Other Race Alone 29 0.6% Householder is Two or More Races 75 1.6% Renter-occupied Housing Units with Hispanic Householder 87 1.9%

Average Household Size by Race/Hispanic Origin of Householder Householder is White Alone 2.16 Householder is Black Alone 2.02 Householder is American Indian Alone 2.66 Householder is Asian Alone 2.32 Householder is Pacific Islander Alone 4.63 Householder is Some Other Race Alone 2.94 Householder is Two or More Races 2.39 Householder is Hispanic 2.46

Source: U.S. Census Bureau, Census 2010 Summary File 1.

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Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County 2015-2020 2015-2020 Summary 2015 2020 Change Annual Rate Population 38,714 41,212 2,498 1.26% Households 16,618 17,769 1,151 1.35% Median Age 39.0 39.7 0.7 0.36% Average Household Size 2.25 2.24 -0.01 -0.09%

2015 2020 Households by Income Number Percent Number Percent Household 16,618 100% 17,769 100% Income<$15,000 Base 1,879 11.3% 1,864 10.5% $15,000-$24,999 1,922 11.6% 1,539 8.7% $25,000-$34,999 1,931 11.6% 1,608 9.0% $35,000-$49,999 2,795 16.8% 2,713 15.3% $50,000-$74,999 3,344 20.1% 3,918 22.0% $75,000-$99,999 2,189 13.2% 2,781 15.7% $100,000-$149,999 1,702 10.2% 2,160 12.2% $150,000-$199,999 351 2.1% 568 3.2% $200,000+ 505 3.0% 618 3.5%

Median Household Income $48,427 $55,297 Average Household Income $63,541 $72,551 Per Capita Income $27,352 $31,355

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 191 of 224 08/13/2015 Household Income Profile

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County 2015 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 1,008 2,844 2,333 2,830 3,191 2,150 2,262

<$15,000 197 292 153 209 367 208 453 $15,000-$24,999 156 335 148 151 262 255 615 $25,000-$34,999 168 260 185 182 262 368 506 $35,000-$49,999 242 542 350 382 511 434 334 $50,000-$74,999 138 597 547 657 677 581 147 $75,000-$99,999 59 430 439 605 444 100 112 $100,000- 40 281 370 427 411 108 65 $150,000-$149,999 5 45 37 113 101 34 16 $200,000+$199,999 3 62 104 104 156 62 14

Median HH Income $33,663 $49,729 $62,455 $66,538 $55,127 $42,022 $25,841 Average HH $40,167 $61,666 $77,410 $78,991 $73,906 $55,993 $35,234 Income Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100%

<$15,000 19.5% 10.3% 6.6% 7.4% 11.5% 9.7% 20.0% $15,000-$24,999 15.5% 11.8% 6.3% 5.3% 8.2% 11.9% 27.2% $25,000-$34,999 16.7% 9.1% 7.9% 6.4% 8.2% 17.1% 22.4% $35,000-$49,999 24.0% 19.1% 15.0% 13.5% 16.0% 20.2% 14.8% $50,000-$74,999 13.7% 21.0% 23.4% 23.2% 21.2% 27.0% 6.5% $75,000-$99,999 5.9% 15.1% 18.8% 21.4% 13.9% 4.7% 5.0% $100,000- 4.0% 9.9% 15.9% 15.1% 12.9% 5.0% 2.9% $150,000-$149,999 0.5% 1.6% 1.6% 4.0% 3.2% 1.6% 0.7% $200,000+$199,999 0.3% 2.2% 4.5% 3.7% 4.9% 2.9% 0.6%

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 192 of 224 08/13/2015 Household Income Profile

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County 2020 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 1,042 2,813 2,691 2,572 3,335 2,785 2,531

<$15,000 205 256 147 159 329 247 521 $15,000-$24,999 136 237 109 91 163 249 554 $25,000-$34,999 146 184 149 111 178 358 482 $35,000-$49,999 238 467 344 279 459 521 405 $50,000-$74,999 168 644 668 601 749 864 224 $75,000-$99,999 80 534 592 637 565 189 184 $100,000- 55 347 492 449 521 187 109 $150,000-$149,999 9 66 64 149 175 73 32 $200,000+$199,999 5 78 126 96 196 97 20

Median HH Income $36,438 $57,647 $71,163 $76,148 $65,732 $50,268 $28,113 Average HH $45,529 $71,973 $86,298 $88,426 $87,364 $65,604 $41,698 Income Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100%

<$15,000 19.7% 9.1% 5.5% 6.2% 9.9% 8.9% 20.6% $15,000-$24,999 13.1% 8.4% 4.1% 3.5% 4.9% 8.9% 21.9% $25,000-$34,999 14.0% 6.5% 5.5% 4.3% 5.3% 12.9% 19.0% $35,000-$49,999 22.8% 16.6% 12.8% 10.8% 13.8% 18.7% 16.0% $50,000-$74,999 16.1% 22.9% 24.8% 23.4% 22.5% 31.0% 8.9% $75,000-$99,999 7.7% 19.0% 22.0% 24.8% 16.9% 6.8% 7.3% $100,000- 5.3% 12.3% 18.3% 17.5% 15.6% 6.7% 4.3% $150,000-$149,999 0.9% 2.3% 2.4% 5.8% 5.2% 2.6% 1.3% $200,000+$199,999 0.5% 2.8% 4.7% 3.7% 5.9% 3.5% 0.8%

Data Note: Income reported for July 1, 2020 represents annual income for the preceding year, expressed in current (2018) dollars, including an adjustment for inflation. July 09, 2015

Page 193 of 224 08/13/2015 Business Summary

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Data for all businesses in area Brown County, SD... Total Businesses: 2,276 Total Employees: 26,267 Total Residential Population: 38,714 Employee/Residential Population Ratio: 0.68:1

Employees by SIC Codes Number Percent Number Percent Agriculture & Mining 89 3.9% 350 1.3% Construction 199 8.7% 1,847 7.0% Manufacturing 60 2.6% 2,231 8.5% Transportation 87 3.8% 582 2.2% Communication 23 1.0% 354 1.3% Utility 11 0.5% 173 0.7% Wholesale Trade 108 4.7% 1,381 5.3%

Retail Trade Summary 418 18.4% 5,479 20.9% Home Improvement 36 1.6% 326 1.2% General Merchandise Stores 11 0.5% 758 2.9% Food Stores 25 1.1% 237 0.9% Auto Dealers, Gas Stations, Auto Aftermarket 69 3.0% 815 3.1% Apparel & Accessory Stores 24 1.1% 116 0.4% Furniture & Home Furnishings 45 2.0% 300 1.1% Eating & Drinking Places 101 4.4% 1,762 6.7% Miscellaneous Retail 107 4.7% 1,165 4.4%

Finance, Insurance, Real Estate Summary 310 13.6% 1,972 7.5% Banks, Savings & Lending Institutions 136 6.0% 1,286 4.9% Securities Brokers 25 1.1% 131 0.5% Insurance Carriers & Agents 76 3.3% 247 0.9% Real Estate, Holding, Other Investment Offices 73 3.2% 308 1.2%

Services Summary 792 34.8% 10,039 38.2% Hotels & Lodging 34 1.5% 577 2.2% Automotive Services 80 3.5% 1,268 4.8% Motion Pictures & Amusements 60 2.6% 393 1.5% Health Services 118 5.2% 3,332 12.7% Legal Services 19 0.8% 112 0.4% Education Institutions & Libraries 38 1.7% 1,172 4.5% Other Services 443 19.5% 3,185 12.1%

Government 140 6.2% 1,735 6.6%

Unclassified Establishments 39 1.7% 124 0.5%

Page 194 of 224 08/13/2015 Business Summary

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Businesses Employees by NAICS Codes Number Percent Number Percent Agriculture, Forestry, Fishing & Hunting 56 2.5% 171 0.7% Mining 1 0.0% 3 0.0% Utilities 9 0.4% 159 0.6% Construction 206 9.1% 1,882 7.2% Manufacturing 65 2.9% 2,148 8.2% Wholesale Trade 105 4.6% 1,369 5.2% Retail Trade 305 13.4% 3,666 14.0% Motor Vehicle & Parts Dealers 49 2.2% 424 1.6% Furniture & Home Furnishings Stores 20 0.9% 137 0.5% Electronics & Appliance Stores 17 0.7% 90 0.3% Bldg Material & Garden Equipment & Supplies Dealers 33 1.4% 295 1.1% Food & Beverage Stores 22 1.0% 810 3.1% Health & Personal Care Stores 30 1.3% 154 0.6% Gasoline Stations 20 0.9% 391 1.5% Clothing & Clothing Accessories Stores 28 1.2% 136 0.5% Sport Goods, Hobby, Book, & Music Stores 24 1.1% 173 0.7% General Merchandise Stores 11 0.5% 758 2.9% Miscellaneous Store Retailers 47 2.1% 281 1.1% Nonstore Retailers 4 0.2% 17 0.1% Transportation & Warehousing 71 3.1% 462 1.8% Information 41 1.8% 637 2.4% Finance & Insurance 242 10.6% 1,678 6.4% Central Bank/Credit Intermediation & Related Activities 140 6.2% 1,296 4.9% Securities, Commodity Contracts & Other Financial 26 1.1% 135 0.5% Insurance Carriers & Related Activities; Funds, Trusts & 76 3.3% 247 0.9% Real Estate, Rental & Leasing 97 4.3% 613 2.3% Professional, Scientific & Tech Services 116 5.1% 659 2.5% Legal Services 21 0.9% 127 0.5% Management of Companies & Enterprises 3 0.1% 25 0.1% Administrative & Support & Waste Management & 71 3.1% 332 1.3% Educational Services 35 1.5% 1,117 4.3% Health Care & Social Assistance 184 8.1% 4,562 17.4% Arts, Entertainment & Recreation 59 2.6% 385 1.5% Accommodation & Food Services 136 6.0% 2,354 9.0% Accommodation 34 1.5% 577 2.2% Food Services & Drinking Places 102 4.5% 1,777 6.8% Other Services (except Public Administration) 292 12.8% 2,170 8.3% Automotive Repair & Maintenance 67 2.9% 1,227 4.7% Public Administration 142 6.2% 1,744 6.6%

Unclassified Establishments 40 1.8% 131 0.5%

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Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Summary Census 2010 2015 2020 Population 36,531 38,714 41,212 Households 15,489 16,618 17,769 Families 9,374 9,939 10,545 Average Household Size 2.27 2.25 2.24 Owner Occupied Housing Units 10,297 10,711 11,468 Renter Occupied Housing Units 5,192 5,907 6,301 Median Age 38.5 39.0 39.7 Trends: 2015 - 2020 Annual Rate Area State National Population 1.26% 1.16% 0.75% Households 1.35% 1.26% 0.77% Families 1.19% 1.14% 0.69% Owner HHs 1.38% 1.29% 0.70% Median Household Income 2.69% 2.97% 2.66% 2015 2020 Households by Income Number Percent Number Percent <$15,000 1,879 11.3% 1,864 10.5% $15,000 - $24,999 1,922 11.6% 1,539 8.7% $25,000 - $34,999 1,931 11.6% 1,608 9.0% $35,000 - $49,999 2,795 16.8% 2,713 15.3% $50,000 - $74,999 3,344 20.1% 3,918 22.0% $75,000 - $99,999 2,189 13.2% 2,781 15.7% $100,000 - $149,999 1,702 10.2% 2,160 12.2% $150,000 - $199,999 351 2.1% 568 3.2% $200,000+ 505 3.0% 618 3.5%

Median Household Income $48,427 $55,297 Average Household Income $63,541 $72,551 Per Capita Income $27,352 $31,355 Census 2010 2015 2020 Population by Age Number Percent Number Percent Number Percent 0 - 4 2,505 6.9% 2,490 6.4% 2,581 6.3% 5 - 9 2,303 6.3% 2,486 6.4% 2,521 6.1% 10 - 14 2,277 6.2% 2,358 6.1% 2,678 6.5% 15 - 19 2,454 6.7% 2,460 6.4% 2,619 6.4% 20 - 24 2,835 7.8% 2,635 6.8% 2,578 6.3% 25 - 34 4,541 12.4% 5,243 13.5% 5,212 12.6% 35 - 44 4,032 11.0% 4,150 10.7% 4,798 11.6% 45 - 54 5,261 14.4% 4,852 12.5% 4,421 10.7% 55 - 64 4,450 12.2% 5,224 13.5% 5,508 13.4% 65 - 74 2,675 7.3% 3,419 8.8% 4,464 10.8% 75 - 84 2,071 5.7% 2,155 5.6% 2,492 6.0% 85+ 1,127 3.1% 1,242 3.2% 1,340 3.3% Census 2010 2015 2020 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 34,057 93.2% 34,824 90.0% 36,351 88.2% Black Alone 194 0.5% 924 2.4% 1,387 3.4% American Indian Alone 1,105 3.0% 1,217 3.1% 1,315 3.2% Asian Alone 355 1.0% 711 1.8% 946 2.3% Pacific Islander Alone 42 0.1% 80 0.2% 106 0.3% Some Other Race Alone 148 0.4% 163 0.4% 181 0.4% Two or More Races 630 1.7% 795 2.1% 926 2.2%

Hispanic Origin (Any Race) 496 1.4% 563 1.5% 630 1.5% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

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Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Trends 2015-2020

2.5

1.5

1 Area 0.5 State

Annual Rate (inAnnual Rate percent) USA 0 Population Households Families Owner HHs Median HH Income Population by Age

6 Percent 4 2015 2 2020

0 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ 2015 Household Income 2015 Population by Race 90 $25K - $34K 11.6% $15K - $24K 11.6% 80 70 $35K - $49K 16.8% <$15K 11.3% 60 50

$200K+ 40 3.0% Percent $150K - $199K 30 2.1% 20 $100K - $149K $50K - $74K 10.2% 20.1% 10

$75K - $99K 0 13.2% White Black Am. Ind. Asian Pacific Other Two+

2015 Percent Hispanic Origin: 1.5%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

July 09, 2015

Page 197 of 224 08/13/2015 Housing Profile

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Population Households 2010 Total Population 36,531 2015 Median Household Income $48,427 2015 Total Population 38,714 2020 Median Household Income $55,297 2020 Total Population 41,212 2015-2020 Annual Rate 2.69% 2015-2020 Annual Rate 1.26%

Census 2010 2015 2020 Housing Units by Occupancy Status and Tenure Number Percent Number Percent Number Percent Total Housing Units 16,706 100.0% 17,949 100.0% 19,157 100.0% Occupied 15,489 92.7% 16,618 92.6% 17,769 92.8% Owner 10,297 61.6% 10,711 59.7% 11,468 59.9% Renter 5,192 31.1% 5,907 32.9% 6,301 32.9% Vacant 1,217 7.3% 1,331 7.4% 1,388 7.2%

2015 2020 Owner Occupied Housing Units by Value Number Percent Number Percent Total 10,711 100.0% 11,468 100.0% <$50,000 1,169 10.9% 696 6.1% $50,000-$99,999 2,631 24.6% 1,989 17.3% $100,000-$149,999 2,085 19.5% 2,431 21.2% $150,000-$199,999 1,707 15.9% 2,121 18.5% $200,000-$249,999 1,111 10.4% 1,570 13.7% $250,000-$299,999 644 6.0% 916 8.0% $300,000-$399,999 688 6.4% 809 7.1% $400,000-$499,999 289 2.7% 370 3.2% $500,000-$749,999 231 2.2% 334 2.9% $750,000-$999,999 64 0.6% 120 1.0% $1,000,000+ 92 0.9% 112 1.0%

Median Value $137,302 $164,569 Average Value $177,313 $204,933

Data Note: Persons of Hispanic Origin may be of any race. Source: U.S. Census Bureau, Census 2010 Summary File 1. July 09, 2015

Page 198 of 224 08/13/2015 Housing Profile

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Census 2010 Owner Occupied Housing Units by Mortgage Status Number Percent Total 10,297 100.0% Owned with a Mortgage/Loan 6,399 62.1% Owned Free and Clear 3,898 37.9%

Census 2010 Vacant Housing Units by Status Number Percent Total 1,217 100.0% For Rent 352 28.9% Rented- Not Occupied 40 3.3% For Sale Only 147 12.1% Sold - Not Occupied 43 3.5% Seasonal/Recreational/Occasional Use 229 18.8% For Migrant Workers 8 0.7% Other Vacant 398 32.7%

Census 2010 Occupied Housing Units by Age of Householder and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 15,489 10,297 66.5% 15-24 1,164 194 16.7% 25-34 2,446 1,342 54.9% 35-44 2,266 1,627 71.8% 45-54 3,078 2,353 76.4% 55-64 2,722 2,145 78.8% 65-74 1,679 1,346 80.2% 75-84 1,391 953 68.5% 85+ 743 337 45.4%

Census 2010 Occupied Housing Units by Race/Ethnicity of Householder and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 15,489 10,297 66.5% White Alone 14,776 10,017 67.8% Black/African American 58 8 13.8% American 380 165 43.4% Asian Alone 88 34 38.6% Pacific Islander Alone 8 2 25.0% Other Race Alone 39 7 17.9% Two or More Races 140 64 45.7%

Hispanic Origin 140 47 33.6%

Census 2010 Occupied Housing Units by Size and Home Ownership Owner Occupied Units Occupied Number % of Occupied Total 15,489 10,297 66.5% 1-Person 5,118 2,330 45.5% 2-Person 5,540 4,205 75.9% 3-Person 2,015 1,515 75.2% 4-Person 1,681 1,341 79.8% 5-Person 768 617 80.3% 6-Person 272 220 80.9% 7+ Person 95 69 72.6%

Data Note: Persons of Hispanic Origin may be of any race. Source: U.S. Census Bureau, Census 2010 Summary File 1. July 09, 2015

Page 199 of 224 08/13/2015 2010 Census Profile

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

2000-2010 2000 2010 Annual Rate Population 35,460 36,531 0.30% Households 14,638 15,489 0.57% Housing Units 15,861 16,706 0.52%

Population by Race Number Percent Total 36,531 100.0% Population Reporting One Race 35,901 98.3% White 34,057 93.2% Black 194 0.5% American Indian 1,105 3.0% Asian 355 1.0% Pacific Islander 42 0.1% Some Other Race 148 0.4% Population Reporting Two or More Races 630 1.7%

Total Hispanic Population 496 1.4%

Population by Sex Male 17,795 48.7% Female 18,736 51.3%

Population by Age Total 36,531 100.0% Age 0 - 4 2,505 6.9% Age 5 - 9 2,303 6.3% Age 10 - 14 2,277 6.2% Age 15 - 19 2,454 6.7% Age 20 - 24 2,835 7.8% Age 25 - 29 2,455 6.7% Age 30 - 34 2,086 5.7% Age 35 - 39 1,939 5.3% Age 40 - 44 2,093 5.7% Age 45 - 49 2,581 7.1% Age 50 - 54 2,680 7.3% Age 55 - 59 2,452 6.7% Age 60 - 64 1,998 5.5% Age 65 - 69 1,413 3.9% Age 70 - 74 1,262 3.5% Age 75 - 79 1,093 3.0% Age 80 - 84 978 2.7% Age 85+ 1,127 3.1%

Age 18+ 28,058 76.8% Age 65+ 5,873 16.1%

Median Age by Sex and Race/Hispanic Origin Total Population 38.5 Male 37.0 Female 40.0 White Alone 40.1 Black Alone 23.6 American Indian Alone 25.8 Asian Alone 24.2 Pacific Islander Alone 23.4 Some Other Race Alone 27.1 Two or More Races 14.3 Hispanic Population 22.6 Data Note: Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri converted Census 2000 data into 2010 geography.

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Page 200 of 224 08/13/2015 2010 Census Profile

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Households by Type Total 15,489 100.0% Households with 1 Person 5,118 33.0% Households with 2+ People 10,371 67.0% Family Households 9,374 60.5% Husband-wife Families 7,505 48.5% With Own Children 2,926 18.9% Other Family (No Spouse Present) 1,869 12.1% With Own Children 1,220 7.9% Nonfamily Households 997 6.4%

All Households with Children 4,392 28.4% Multigenerational Households 179 1.2% Unmarried Partner Households 961 6.2% Male-female 919 5.9% Same-sex 42 0.3% Average Household Size 2.27

Family Households by Size Total 9,374 100.0% 2 People 4,740 50.6% 3 People 1,883 20.1% 4 People 1,637 17.5% 5 People 750 8.0% 6 People 269 2.9% 7+ People 95 1.0% Average Family Size 2.89

Nonfamily Households by Size Total 6,115 100.0% 1 Person 5,118 83.7% 2 People 800 13.1% 3 People 132 2.2% 4 People 44 0.7% 5 People 18 0.3% 6 People 3 0.0% 7+ People 0 0.0% Average Nonfamily Size 1.21

Population by Relationship and Household Type Total 36,531 100.0% In Households 35,166 96.3% In Family Households 27,768 76.0% Householder 9,374 25.7% Spouse 7,505 20.5% Child 9,725 26.6% Other relative 519 1.4% Nonrelative 645 1.8% In Nonfamily Households 7,398 20.3% In Group Quarters 1,365 3.7% Institutionalized Population 477 1.3% Noninstitutionalized Population 888 2.4%

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Page 201 of 224 08/13/2015 2010 Census Profile

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Family Households by Age of Householder Total 9,374 100.0% Householder Age 15 - 44 3,692 39.4% Householder Age 45 - 54 2,082 22.2% Householder Age 55 - 64 1,714 18.3% Householder Age 65 - 74 1,024 10.9% Householder Age 75+ 862 9.2%

Nonfamily Households by Age of Householder Total 6,115 100.0% Householder Age 15 - 44 2,184 35.7% Householder Age 45 - 54 996 16.3% Householder Age 55 - 64 1,008 16.5% Householder Age 65 - 74 655 10.7% Householder Age 75+ 1,272 20.8%

Households by Race of Householder Total 15,489 100.0% Householder is White Alone 14,776 95.4% Householder is Black Alone 58 0.4% Householder is American Indian Alone 380 2.5% Householder is Asian Alone 88 0.6% Householder is Pacific Islander Alone 8 0.1% Householder is Some Other Race Alone 39 0.3% Householder is Two or More Races 140 0.9% Households with Hispanic Householder 140 0.9%

Husband-wife Families by Race of Householder Total 7,505 100.0% Householder is White Alone 7,262 96.8% Householder is Black Alone 11 0.1% Householder is American Indian Alone 124 1.7% Householder is Asian Alone 37 0.5% Householder is Pacific Islander Alone 6 0.1% Householder is Some Other Race Alone 17 0.2% Householder is Two or More Races 48 0.6% Husband-wife Families with Hispanic Householder 48 0.6%

Other Families (No Spouse) by Race of Householder Total 1,869 100.0% Householder is White Alone 1,673 89.5% Householder is Black Alone 10 0.5% Householder is American Indian Alone 131 7.0% Householder is Asian Alone 11 0.6% Householder is Pacific Islander Alone 0 0.0% Householder is Some Other Race Alone 7 0.4% Householder is Two or More Races 37 2.0% Other Families with Hispanic Householder 27 1.4%

Nonfamily Households by Race of Householder Total 6,115 100.0% Householder is White Alone 5,841 95.5% Householder is Black Alone 37 0.6% Householder is American Indian Alone 125 2.0% Householder is Asian Alone 40 0.7% Householder is Pacific Islander Alone 2 0.0% Householder is Some Other Race Alone 15 0.2% Householder is Two or More Races 55 0.9% Nonfamily Households with Hispanic Householder 65 1.1% Source: U.S. Census Bureau, Census 2010 Summary File 1.

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Page 202 of 224 08/13/2015 2010 Census Profile

Brown County, SD ABERDEEN, SD D1966 Brown County, SD (46013) Geography: County

Total Housing Units by Occupancy Total 16,706 100.0% Occupied Housing Units 15,489 92.7% Vacant Housing Units For Rent 352 2.1% Rented, not Occupied 40 0.2% For Sale Only 147 0.9% Sold, not Occupied 43 0.3% For Seasonal/Recreational/Occasional Use 229 1.4% For Migrant Workers 8 0.0% Other Vacant 398 2.4% Total Vacancy Rate 7.3%

Households by Tenure and Mortgage Status Total 15,489 100.0% Owner Occupied 10,297 66.5% Owned with a Mortgage/Loan 6,399 41.3% Owned Free and Clear 3,898 25.2% Average Household Size 2.48 Renter Occupied 5,192 33.5% Average Household Size 1.85

Owner-occupied Housing Units by Race of Householder Total 10,297 100.0% Householder is White Alone 10,017 97.3% Householder is Black Alone 8 0.1% Householder is American Indian Alone 165 1.6% Householder is Asian Alone 34 0.3% Householder is Pacific Islander Alone 2 0.0% Householder is Some Other Race Alone 7 0.1% Householder is Two or More Races 64 0.6% Owner-occupied Housing Units with Hispanic Householder 47 0.5%

Renter-occupied Housing Units by Race of Householder Total 5,192 100.0% Householder is White Alone 4,759 91.7% Householder is Black Alone 50 1.0% Householder is American Indian Alone 215 4.1% Householder is Asian Alone 54 1.0% Householder is Pacific Islander Alone 6 0.1% Householder is Some Other Race Alone 32 0.6% Householder is Two or More Races 76 1.5% Renter-occupied Housing Units with Hispanic Householder 93 1.8%

Average Household Size by Race/Hispanic Origin of Householder Householder is White Alone 2.25 Householder is Black Alone 1.93 Householder is American Indian Alone 2.73 Householder is Asian Alone 2.43 Householder is Pacific Islander Alone 4.63 Householder is Some Other Race Alone 2.95 Householder is Two or More Races 2.50 Householder is Hispanic 2.49

Source: U.S. Census Bureau, Census 2010 Summary File 1.

July 09, 2015

Page 203 of 224 08/13/2015 GLOSSARY

ABSORPTION PERIOD—The number of months necessary to rent a specific number of units. If over 12 months, the absorption period is adjusted to reflect replacement for turnover (see aggregate absorption and net absorption).

ABSORPTION RATE—The number of units expected to be rented per month.

AESTHETIC AMENITIES (CURBSIDE APPEAL)—Used as part of the comparability index, this factor assigns a point rating to a project's physical appeal to potential tenants. Included in this rating are an evaluation of grounds appearance and landscaping, quality of maintenance, and quality of architecture and design.

AGGREGATE ABSORPTION—The total number of units absorbed by a subject site without accounting for turnover.

CERTIFICATE—See HUD Section 8 Certificate.

COMPARABLE MARKET RENT—The amount a potential renter would expect to pay for the subject unit without income restrictions given current and projected market conditions. Comparable market rent is based on a regression analysis for the market area. Factors influencing a property’s potential to achieve the comparable market rent include the number of units at that rent, the step-up base at that rent level and the age and condition of the property and its competitors.

COMPARABILITY INDEX—A factor used to determine the relative competitiveness of any given multifamily project. This index is established based on a scale developed by the Danter Company, LLC that assigns point values to a project's unit amenities, project amenities, and overall aesthetic rating (curbside appeal).

CONTRACT RENT—See street rent.

CONVENTIONAL APARTMENT—Rental multifamily unit, typically in a building of four units or greater, that was purpose built as multifamily or converted to multifamily by adaptive reuse.

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Page 204 of 224 08/13/2015 COOPERATIVE—a type of multifamily housing in which each household is part-owner of the community. A cooperative will usually involve a purchase or “buy-in” of the unit, and decisions affecting the community are typically made by majority votes of unit holders. Unit holders also share in the project’s equity. Government subsidized units typically involve very low cost buy-ins and low rents geared towards low-income households.

DENSITY—The number of units per acre.

ECONOMIC VACANCY—An existing unit that is not collecting book rent. Economic vacancies include manager's units, model units, units undergoing renovation, units being prepared for occupancy, and units being discounted. The Danter Company, LLC determines vacancies based on a market vacancy standard (see vacancy).

EFFECTIVE MARKET AREA (EMA)SM —The geographic area from which a proposed development is expected to draw between 60% and 70% of its support. Also the area from which an existing project actually draws 60% to 70% of its support. An EMA is determined based on the area's demographic and socioeconomic characteristics, mobility patterns, and existing geographic features (i.e. a river, mountain, or freeway).

EMPTY-NESTER—An older adult (age 55 or over). Typically, households in this age group contain no children under 18.

ENTRY IMPACT—A prospective tenant's perception of a unit's spaciousness on entering a unit; a first impression.

EXTERNAL MOBILITY—Households moving to an area from well outside a market area.

FAIR MARKET RENT—The maximum chargeable gross rent in an area for projects participating in the HUD Section 8 program. Determined by HUD.

FIELD SURVEY—The process of visiting existing developments as part of the information-gathering process. Each project listed in this survey has been visited on- site by an analyst employed by the Danter Company, LLC unless specified otherwise. Also the name of the section detailing information gathered during the field trip.

SM Service Mark of Danter Company, LLC

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Page 205 of 224 08/13/2015 FmHA—Farmers Home Administration, former name for RECD. See RECD.

GARDEN UNIT—A multifamily unit with living and sleeping space all on a single floor. May be in a multistory building.

GOVERNMENT SUBSIDIZED—Units for which all or part of the rent or operating expenses are paid for directly by a government agency. Government subsidy programs include HUD Sections 8 and 236, RECDS Section 515, and other programs sponsored by local housing authorities or agencies. Typically, tenants are charged a percentage of their income (usually 30%) as rent if they are unable to pay the full cost of a unit.

GROSS RENT—Rent paid for a unit adjusted to include all utilities.

HISTORIC TAX CREDIT—Program which gives income tax credits to investors who restore old or historic buildings in designated areas. This is a separate program from the low-income housing Tax Credit program (see Tax Credit).

HOUSING DEMAND ANALYSIS (HDA)SM —A statistical analysis of the relationship of an area's housing demand to its housing supply. This is provided at the county level. The purpose of this analysis is to place the overall housing market within the context of housing demand.

HUD—The United States Department of Housing and Urban Development. The primary agency for sponsoring subsidized housing in the United States, particularly in urban areas.

HUD SECTION 8 CERTIFICATE—A government subsidized housing program administered by local public housing agencies through which low-income households qualify for rent subsidies. Qualified households must pay 30% of adjusted income, 10% of gross income, or the portion of welfare designated for housing, whichever is greatest. Rent subsidies paid to the housing unit owner compensate the owner for the difference in the payment made by the household and the area Fair Market Rent. Qualified housing units must meet HUD quality guidelines. Subsidies may be also project-based, in which a project earns the subsidy by renting the unit to qualified households

SM Service mark of Danter Company, LLC

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Page 206 of 224 08/13/2015 HUD SECTION 8 VOUCHER—A government subsidized housing program administered by local public housing agencies through which income-qualified tenants can use government subsidies to reside at any project which meets certain qualifications. Qualified households pay 30% of adjusted income or 10% of gross income, whichever is greater. Government subsidies pay the housing unit owner the difference between what the qualified household pays and the area Payment Standard. Voucher holders may choose housing that rents for more than the area Payment Standard, but they will be responsible for paying the difference between the charged rent and the Payment Standard

INTERNAL MOBILITY—Households moving within the same market area.

MARKET-DRIVEN RENT—The rent for a unit with a given comparability index as determined by the regression analysis.

MARKET VACANCY—See vacancy.

MAXIMUM ALLOWABLE INCOME—The highest income a household can make and be eligible for the Tax Credit program. The maximum allowable income is set at 60% of the area's median household income unless otherwise noted.

MEDIAN RENT—The midpoint in the range of rents for a unit type at which exactly half of the units have higher rents and half have lower rents.

MSA—Metropolitan Statistical Area. Denotes an area associated with an urban area. MSA determinations are made by the Census Bureau based on population and interaction. Nonurban areas included in an MSA are marked by a high rate of commuting and interaction. MSA boundaries are particularly important in determining maximum allowable rents for Tax Credit development (see PMSA).

NET ABSORPTION—The total number of units absorbed when accounting for turnover.

NET RENT—The rent paid by a tenant adjusted to assume that the landlord pays for water/sewer service and trash removal and that the tenant pays all other utilities.

100% DATA BASE—When the Danter Company, LLC conducts a field survey, we gather data on all (100%) of the modern apartments in an EMA. This methodology allows us to examine the market at all price and amenity levels in order to determine step-up support and to use a regression analysis to determine market-driven rent for any given amenity level.

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Page 207 of 224 08/13/2015 PMSA—Primary Metropolitan Statistical Area. Used for Metropolitan Statistical Areas that have been combined with other adjacent MSAs into a larger Consolidated MSA. Each PMSA is defined in the same manner as a standard MSA (see MSA).

PROJECT AMENITY—An amenity that is available for all residents of a community. Project amenities include laundry facilities, swimming pools, clubhouses, exercise rooms, playgrounds, etc.

RADIAL ANALYSIS—An analysis focusing on the area within a set distance of a site (usually 1, 3, 5, or 10 miles). Such analyses usually disregard mobility patterns, geographic boundaries, or differences in socioeconomic characteristics which separate one area from another.

RD—Rural Development. Formerly Farmers Home Administration. The primary agency of the federal government for overseeing government subsidized housing programs in rural areas, primarily through its Section 515 program.

RENT GAP—The difference in price between a unit type and the next-largest unit type. For example, at a project where one-bedroom units rent for $350 and two-bedroom units rent at $425, the rent gap is $75. May also be used to identify premium rents or special amenities.

REPLACEMENT ABSORPTION—The number of tenants necessary for a project to attract to counteract the number of tenants who chose to break or not renew their lease.

STEP-UP SUPPORT (OR STEP-UP BASE)—The number of multifamily units existing within the EMA with rents within a specified dollar amount below the proposed rents at a proposed multifamily site. Step-up support is calculated separately for each unit type proposed, and may include units of another, smaller unit type (for example, step-up support for proposed one-bedroom units may include not only one-bedroom units but also studio units).

STEP-DOWN SUPPORT—The number of units within a given unit type and comparability index level but with rents above the proposed rent. This total measures the number of tenants in a market who may be willing to move to a new project that provides a similar or higher level of quality at a lower rent.

STREET RENT—The rent quoted by a leasing agent or manager to a prospective tenant, regardless of the utilities included. Also called contract rent.

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Page 208 of 224 08/13/2015 TAX CREDIT—Short for the low-income housing Tax Credit program (LIHTC) or IRS Section 42. This program gives investors the opportunity to gain tax credits for investing in multifamily housing for low- to moderate-income households meeting certain income restrictions. This designation does not refer to the historic Tax Credit program (see historic tax credit).

TOWNHOUSE UNIT—A multifamily unit with a floor plan of two or more floors. Typically, townhouse floor plans living areas and sleeping areas on different floors.

TREND LINE ANALYSIS—A mathematical analysis in which each project surveyed is plotted on a scatter diagram using rent by unit type and the project's comparability index. From this graph a trend line regression line is identified which identifies the market-driven rent at any given comparability index level.

TURNOVER—Units whose tenants choose to break or not renew their lease.

UNIT AMENITIES—Amenities available within an individual unit, or only to individual tenants. For example, a detached garage and external storage are considered unit amenities because they are generally available only to individual tenants.

UNIT TYPE—Based on the number of bedrooms: studio, one-bedroom, two-bedroom, etc.

UPPER-QUARTILE RENTS—The rent range including the 25% of units at the high end of the range scale.

UTILITY ALLOWANCE—Adjustment for utilities not included in the rent in the Tax Credit program. The adjustment is used to keep proposed rents within gross rent guidelines of the program. It is also used to adjust gross rents to compare with area net rents.

VACANCY—As used by the Danter Company, LLC, a vacancy is a multifamily unit available for immediate occupancy. Manager's units and model units are not counted as vacant units, nor are units that are unrentable due to excessive damage or renovation. This definition of vacancy is often referred to as a market vacancy and is different from an economic vacancy (see economic vacancy).

VOUCHER— See HUD Section 8 Voucher.

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Page 209 of 224 08/13/2015 Qualifications and Services

About Danter Company, LLC Danter Company, LLC is a national real estate research firm providing market and demographic information for builders, lenders, and developers in a variety of commercial markets. Danter Company, LLC has completed over 17,000 studies in all 50 states, Canada, Puerto Rico, the Virgin Islands, and Mexico. The Danter Company was founded in 1970 by Kenneth Danter and was one of the first firms in the country to specialize in real estate research. Danter Company, LLC differs from most firms providing real estate research services in two key ways: real estate research is our only area of specialization, and we hold no financial interest in any of the properties for which we do our research. These principles guarantee that our recommendations are based on the existing and expected market conditions, not on any underlying interests or an effort to sell any of our other services. Housing-related studies, including multifamily, single-family, condominium, and elderly (assisted- living and congregate care), account for about two-thirds of our assignments. We also conduct evaluations for site-specific developments (hotels, office buildings, historic reuse, resorts, commercial, and recreational projects) and major market overviews (downtown revitalization, high- rise housing, and industrial/economic development). All our site-specific research is enhanced by over 40 years of extensive proprietary research on housing trends and buyer/renter profiles. Results of this research have been widely quoted in The Washington Post, The Boston Globe, USA Today, Builder Magazine, Multi-Housing News, Professional Builder, and publications produced by The Urban Land Institute and American Demographics. Based on this research, The Danter Company was named 6 consecutive years to American Demographics’ “Best 100 Sources for Marketing Information.” Danter Company, LLC’s combination of primary site-specific research with our proprietary research into market trends has led us to pioneer significant market evaluation methodologies, particularly the use of the 100% Data Base for all market analyses. This Danter concept is of primary importance to real estate analyses because new developments interact with market-area projects throughout the rent/price continuum—not just with those normally considered “comparable.” Other pioneer methodologies include Effective Market Area (EMA) SM analysis, the Housing Demand Analysis (HDA) SM, and the Comparable Rent Analysis. About Our Methodology Overview Our process begins where it happens: the marketplace. We build the most complete market profile through exhaustive primary research. This information is viewed through the concept of the Effective Market Area (EMA), which identifies the smallest area from which a project is likely to draw the most significant amount of support. We also establish a 100% data base from all development within each project’s EMA. We then fine-tune our primary research with the highest- quality, most recent and relevant secondary research for maximum validity.

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The 100% Data Base and Other Research Methodologies Every study conducted by the Danter Company, LLC is based on one simple methodological principle: The 100% Data Base. We believe that the only way to determine market strength is to examine the market at every level, so we gather data on all market area properties, not just “selected” properties that are “comparable.” A report based on selected comparables can determine how the market is performing at one price or quality level: the 100% data base determines how the market is performing at all price and quality levels, allowing our analysts to make recommendations that maximize potential support and give the subject property the best opportunity to perform within the overall continuum of housing within the market. From the 100% Data Base methodology, we have developed significant research methodologies specific to real estate market feasibility analysis. Because we gather rent and amenity data for all market area properties, we can empirically analyze the relationship between rent/price and level of quality/service. For our multifamily market studies, we have developed a proprietary rating system which allows us to determine a project’s Comparability Rating, which includes separate ratings for unit amenities, project amenities, and aesthetic amenities/curbside appeal. By plotting the rents and comparability ratings for an area’s properties on a scatter graph, we can use regression analysis to determine market-driven rent at any comparability rating level. The 100% Data Base also allows us to measure the depth of market support. Our research indicates that most of the support for a new multifamily development typically comes from other apartment renters already within the Effective Market Area. Our previous research has identified the amount of money that renters will typically step-up their rent for a new apartment option that they perceive to be a value within the market. By analyzing this base of step-up support, we can quantify the depth of support for new product within the market, as well as offer constructive recommendations to maximize absorption potential. Proprietary Research and Analytical Support Once our analysts have obtained the 100% data base in a market area for their project, this information is added to our primary data base on that development type. Our apartment data base alone, for example, contains information on over 12 million units across the US. Data on housing units, condominiums, resorts, offices, and motels is available for recall. In addition, analysts are regularly assigned to update this material in major metropolitan markets. Currently, we have apartment information on 75% of the cities with populations of 250,000 or more. This includes rents, vacancies, year opened, amenities, and quality evaluation. In addition to our existing data base by unit type, we also maintain a significant base of proprietary research conducted by the Danter Company, LLC over the last 25+ years. These data, provided to our project directors as background information for their recommendations, are collected as ongoing proprietary research due to their cost—which is usually prohibitively high for developers on a per- study basis. Several different surveys have been conducted, among which are the following:

Apartment Mobility/Demographic Characteristics Tax Credit Multifamily Rural Development Tenant Profile Older Adult Housing Surveys Office Tenant Profiles Downtown Resident Surveys Shopping Habits Health-Care Office and Consumer Surveys

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Every project surveyed by the Danter Company. LLC analysts are photographed for inclusion in our photographic data base. This data base provides a statistical justification of our findings and a visual representation of the entire market. It is used to train our field analysts to evaluate the aesthetic ratings of projects in the field, and for demonstration purposes when consulting with clients. These extensive data bases, combined with our other ongoing research, allow the Danter Company to develop criteria for present and future development alternatives, and provide our analysts background data to help determine both short and long-range potential for any development type. Personnel and Training Our field analysts have completed an in-house training program on data gathering procedures and have completed several studies supervised by senior field analysts before working solo on field assignments. In addition, all field analysts are supervised throughout the data gathering process by the project director for that study. All project directors, in addition to training in advanced real estate analysis techniques, have spent time serving as a field analyst in order to better understand the data gathering process, and to better supervise the field analysts in obtaining accurate market information. In addition, our project directors regularly conduct field research in order to stay current or to personally analyze particularly complicated markets. Danter Company, LLC has a highly-skilled production support staff, including demographics retrieval specialists, professional editors, a graphics/mapping specialist, a geographical information systems specialist and secretarial support. Danter Company, LLC has experienced a great deal of stability and continuity, beginning with Mr. Danter’s 40+ years in real estate analysis. Many of our senior project directors and support staff team members have worked for the company for over 10 years. This experience gives the Danter Company the historical perspective necessary to understanding how real estate developments can best survive the market’s ups and downs. Our Product and Services We conduct several types of real estate research at the Danter Company, LLC: site-specific market studies, in-house research designed either for publication or as public-service media information, proprietary research provided as supplementary data for our Project Directors, real estate marketing and marketing analysis, and real estate market consulting services. Client-Specified Market Studies Market Feasibility Analyses—Market feasibility studies are based on an Effective Market Area (EMA)SM analysis of a 100% data base. The EMA methodology was developed by the Danter Company, LLC to determine the smallest geographic area from which a project can expect most of its support. All analyses include a complete area demographic profile. Some of the commercial development analyses we specialize in include the following:

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Market-rate/Low Income Housing Tax Credit (LIHTC) Apartments—These studies include the complete 100% data base field survey of existing and proposed area apartments at all rental levels, determination of appropriate unit mix, rent, unit size, and level of amenities, for the proposed development, and expected absorption rate. If necessary, we will also suggest ways to make the proposed community more marketable. We have worked with state housing agencies and national syndicators across the country to ensure that our LIHTC studies comply with their requirements. Government Subsidized Apartments—Includes all of the above, plus additional demand calculations as required by the presiding government agency Apartment Repositioning—This study is designed to identify market strategies for underperforming apartment projects. We identify the Effective Market Area based on existing tenants’ previous addresses, survey the existing apartment market, shop the project, and evaluate the existing marketing and pricing methods to identify strategies to maximize project performance. Single-Family Housing—Includes a 100% data base field survey of existing and proposed single- family developments at all price levels, plus a calculation of area demand by price range and an estimated sales rate. We can also identify optimal lot sizes and critique site plans from a marketability standpoint. We also have extensive experience with integrating single-family residential and golf course development. Hotel/Lodging—Includes a 100% data base field survey of all lodging facilities in the Competitive Market Area, plus area lodging demand calculations, estimated occupancy projections by traveler category, and an analysis of projected room rates. Condominium Development—Includes a 100% data base field survey of area condominium developments, a demand analysis by price range, an analysis of optimum pricing strategies, and expected sales rate for the proposed development or conversion. We can also identify a project’s potential for mixed for-sale/for-rent marketing if requested. Senior Housing Development—We complete studies for all types of housing designed for seniors, including congregate care, assisted-living, nursing home, and independent-living options. These studies include an estimate of area demand based on a 100% data base field study of the area’s existing configuration of elderly-appropriate housing options, an analysis of optimum pricing strategies, and a projected absorption or sales rate. Recreation—We can conduct analyses for a variety of recreation options, including recreation centers and golf courses. Analyses include 100% data base field survey of comparable development, calculation of demand for additional facilities, and optimal amenity package and pricing. Resort Development—Resort development studies can include a variety of options as well as integrated lodging or for-sale/for-rent housing development. Analyses will identify demand, sales/absorption/occupancy rate, optimal pricing, and competitive amenity packages. Conference Center—Conference center feasibility studies typically include a 100% data base field study of existing area meeting space, calculation of demand for additional meeting space, projected occupancy, and optimal amenity package and meeting rental rates. Office Development—Includes 100% data base field survey of existing and proposed office development, calculation of demand for additional space, projected absorption rate, and optimal pricing strategies.

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Retail/Shopping Center—Includes a 100% data base field survey of area retail development, calculation of demand for additional retail development by NAISC Code, and optimal rental rate Other Analyses Available Economic-Impact Studies—Economic-impact analysis can determine the dollar effect an industry or organization can have on a community. Our analyses incorporate the Bureau of Economic Analysis’ RIMS II methodology for maximum accuracy in determining economic impact. Survey Research—Although the Danter Company, LLC conducts ongoing in-house surveys (detailed below), we also conduct surveys on a per-project basis for developers who need to know very specific characteristics of their market. Our staff of survey administrators and analysts can develop, conduct, and produce survey results on any subject, providing general data and detailed crosstabs of any survey subject. Consulting—In addition to market feasibility study, we are also available for consulting. Whether you need help identifying the best development alternative for your site, need to determine the which markets have development or acquisition opportunities, need help identifying why a property is not performing as expected, or need another real estate-related problem solved, our analysts are available at for consultation, in our offices and at your sites. The Greater Columbus Apartment Reports—These semi-annual analyses of the Greater Columbus apartment markets survey all area multifamily units in projects of 50 units or more (Columbus) and provide aggregate rent and vacancy performance data, as well as performance data for several submarkets within each metro area.

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