Research & Forecast Report

* GREATER Accelerating success. Q1 2017 | Multifamily

Source: AXIOMetrics. RCA, CoStar Market Survey Results and Forecasts Sequential Month Annual 2Q16 3Q16 4Q16 1Q17 Mar-17 2015 2016 2017F 2018F 2019F 2020F 2021F

Effective Rent Per Unit $1,326 $1,330 $1,317 $1,316 $1,329 $1,285 $1,314 $1,334 $1,374 $1,418 $1,461 $1,508

Per Sq. Ft $1.52 $1.52 $1.51 $1.51 $1.52 $1.47 $1.51 $1.53 $1.57 $1.62 $1.67 $1.73

Effective Rent Growth - Annually 2.4% 2.5% 2.8% 2.6% 2.7% 2.9% 2.3% 1.5% 3.1% 3.2% 3.1% 3.2%

Effective Rent Growth - Quarterly 3.4% 0.3% -1.0% 0.0%

Occupancy Rate 95.7% 95.4% 95.3% 95.0% 95.1% 95.7% 95.5% 95.1% 95.4% 95.6% 95.4% 95.3%

Occupancy Change - Annually -0.1% -0.5% -0.2% -0.5% -0.5% 0.2% -0.2% -0.4% 0.4% 0.1% -0.1% -0.1%

Occupancy Change - Quarterly 0.3% -0.3% -0.2% -0.3%

Economic Concessions Concession Value $-8.35 $-11.13 $-16.13 $-19.82 $-18.59 $-8.17 $-11.93

As a % of Asking Rent -0.6% -0.8% -1.2% -1.5% -1.4% -0.6% -0.8% RECENT SALES Date Property Name Address City Units Year Built Price in $ $/Units Mar-17 Phoenix View 495 Nutt Rd Phoenixville 92 1971 8,986,100.00 97,675 Mar-17 Imperial Towers 3801 Conshohocken Ave Philadelphia 186 1970 14,750,000.00 79,301 Feb-17 Wissahickon Apartments 5232 Laurens St Philadelphia 58 1910 3,380,000.00 58,276 Jan-17 Parc at Plymouth 134 Plymouth Rd Plymouth Meeting 398 2015 201,000,000.00 505,025 Dec-16 Penn Wynn House 2201 Bryn Mawr Ave Philadelphia 234 1960 16,350,000.00 69,872 Dec-16 The Gardens 7284 Radbourne Rd Upper Darby 200 1924 6,000,000.00 30,000 Oct-16 Stonefield at Yardley 26000 Cornerstone Dr Morrisville 216 1997 42,500,000.00 196,759 Oct-16 Lennox Apartments 236 W Walnut Ln Philadelphia 157 1930 12,700,000.00 80,892 Oct-16 Verandas 7000 Cornerstone Dr Newtown Square 250 2015 Confidential Confidential Oct-16 Charter Court at East Falls 5450 Wissahickon Ave Philadelphia 496 1950 56,000,000.00 112,903

*AXIOMetrics reports based on a combined report for the 2 submarkets: Philadelphia, PA + Montgomery County-Bucks County-Chester County-Delaware County, PA. SUPPLY AND DEMAND

Market Employment and Permitting Annual February-17 Annual Forecast 2014 2015 2016 Market National 2017F 2018F 2019F 2020F 2021F Employment (000s) 1,922.3 1,945.9 1,981.6 1,987.5 144,271.0 2,008.6 2,034.5 2,058.8 2,080.7 2,099.9 Job Gain (000s) 24.3 23.6 35.7 44.1 2,352.0 27.0 25.9 24.3 21.9 19.2 Job Growth (%) 1.3% 1.2% 1.8% 2.3% 1.7% 1.4% 1.3% 1.2% 1.1% 0.9% Total Residential Permitting 7,788 7,746 8,203 7,906 1,101,437 9,533 11,439 11,819 9,552 10,693 Relative Change 21.3% 0.2% 6.4% 3.7% 0.3% 14.6% 19.2% -2.6% -19.2% 17.1% Single Family Units Permitted 3,324 3,837 4,240 4,002 702,275 Relative Change -0.3% 14.8% 10.9% 11.1% 9.0% Multifamily Units Permitted 3,905 3,281 3,224 3,162 368,649 Relative Change 105.7% -15.1% 17.2% -2.5% -12.8% Multifamily as a % of Total 48.4% 41.8% 40.1% 40.5% 33.5% Demand/Supply Ratio Job Gain / Total Residential Units Permitted 3.8 3.1 4.6 5.7 2.1 3.4 2.9 2.2 2.3 2.8 Job Gain / Single Family Units Permitted 9.2 8.2 11.4 15.8 3.7 Job Gain / Multifamily Units Permitted 17.2 7.7 12.9 13.2 5.6

Multifamily Absorption and Supply Annual 1Q17 Annual Forecast 2014 2015 2016 Market National 2017F 2018F 2019F 2020F 2021F Total Units Absorbed 4,222 3,454 3,874 4,139 264,921 4,763 4,736 2,788 2,699 2,777 New Supply 1,873 4,129 4,582 5,030 350,515 5,732 3,676 3,100 3,251 3,072 Inventory Growth 0.7% 1.6% 1.7% 1.7% 1.4% 2.1% 1.3% 1.1% 1.1% 1.1%

Submarket Delivery Schedule Pipeline Delivery Schedule Pipeline Lease Up Trend Units Absorbed Asking Rent Effective Rent Top Submarkets 2015 2016 2017 Total Totals PPM Per Unit PSF Per Unit PSF Bala-Cynwyd 161 276 265 702 194 17 $1,969 $2.50 $1,872 $2.37 Center City 548 1,442 2,008 3,998 569 10 $2,511 $3.10 $2,332 $2.88 North Delaware County 250 151 401 70 10 $1,932 $2.12 $1,932 $2.12 North/Frankford/Holmesburg 147 134 111 392 105 6 $1,719 $1.77 $1,715 $1.77 642 60 634 1,336 287 12 $2,643 $3.55 $2,550 $3.42 Central Chester 265 378 180 823 125 12 $1,881 $1.97 $1,881 $1.97 Moreland/Abington/Upper Dublin 354 234 588 250 22 $1,612 $1.68 $1,416 $1.47 NE Chester/Upper Montgomery 382 533 186 1,101 443 8 $1,755 $1.69 $1,668 $1.60 County Upper Bucks County 220 220 570 19 $2,115 $2.10 $2,023 $2.01 Upper/Lower Merion 338 606 1,085 2,029 201 8 $2,009 $1.91 $1,979 $1.87 Other 816 654 1,470 1,704 20 $2,110 $2.33 $2,011 $2.21 Philadelphia, PA 3,549 4,437 5,074 13,060 4,518 13 $2,023 $2.25 $1,944 $2.15 *Based on 2017 deliveries *Trend based on a trailing 12 month period

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 2 PIPELINE GREATER PHILADELPHIA 28 Source: CoStar

29

33 47

16

46 14 1348 30 37 9

36 35 45 15 31 34

10 8 4 49 19 17 41 11 40 Key Downtown Lease-Up Philadelphia Under Construction

Proposed

DOWNTOWN PHILADELPHIA 38

39

3 42

7 43 6

2 32 44

12

24 23

1 20 27 21

26 5 22 25 18

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 3 PIPELINE DETAIL Over 100 Multifamily Developments Proposed for the Philadelphia area. Source: CoStar

# Name Status Owner Address Market Units Lease Up 1 AKA University City Lease Up Brandywine Realty Trust 2929 Walnut St 30th Street Station 163 2 Hanover North Broad - East Lease Up NB Project Owner LLC 322-344 N Broad St Avenue Of The Arts Centra 339 Building 3 Divine Lorraine Lease Up EB Realty Management Corp 699 N Broad St Avenue Of The Arts Centra 79 4 The Royal Athena Lease Up O'Neill Properties Group, L.P. 600 Righters Ferry Bala Cynwyd 275 Rd 5 The Collins Lease Up The Brickstone Companies 1112-1128 Chestnut St Center City East 112 6 NORTHxNORTHWEST – Lease Up Forest City Realty Trust, Inc. 500 N 18th St Fairmount-Art Museum 286 Northwest Tower 7 Dalian on the Park Lease Up Dalian Development, LLC 501 N 22nd St Fairmount-Art Museum 293 8 Queen Lane Apartments Lease Up Philadelphia Housing Authority 301 W Queen Ln Germantown 55 9 Indigo 301 Lease Up Realen 301 Village Dr King of Prussia/Norristow 363 10 The Isle Lease Up Realen 1 Cotton St Manayunk 150 11 Fairmount at Brewerytown Lease Up 1401 N 31st Llc 3717 Master St West 161 12 3601 Market Lease Up Southern Land Company 3601 Market St University City 363 13 Phoenix Village Lease Up Phoenix Village PA, LP 131 Bridge St Upper Chester County 275 14 Riverworks Lease Up South Eastern Economic 45 N Main St Upper Chester County 349 Development Company of PA 15 Meridian At Eagleview Lease Up Hankin Group 659 Rice Blvd Upper Chester County 162 16 Madison Providence Lease Up Equus Capital Partners, Ltd 550 Campus Dr Upper Montgomery County 304 17 Inglis Gardens at Belmont Lease Up Inglis Housing Corp 2560-2566 Belmont Wynnefield 80 Ave 3,809 Under Construction 18 The Atlantic Under Construction Post Commercial Real Estate 260 S Broad St Avenue Of The Arts South 268 19 150 Monument Rd Under Construction Keystone Property Group 150 Monument Rd Bala Cynwyd 206 20 East Market Phase II Under Construction 1100 Market Street Lp 1100 Market St Center City East 250 21 Ludlow Under Construction 1100 Market Street LP 1100 Market St Center City East 322 22 1213 Walnut Under Construction The Goldenberg Group, Inc. 1213-1219 Walnut St Center City East 322 23 The Bridge On Race Street Under Construction National Investors 205 Race St Center City East 146 24 401 Race Under Construction Priderock Capital Partners, LLC 401 Race St Center City East 216 25 The Curtis Center Residences Under Construction Mack-Cali Realty Corporation 601 Walnut St Center City East 63 26 The Beacon Under Construction Pearl Properties, LLC 1527 Walnut St Center City West 100 27 19th + Chestnut Under Construction Pearl Properties, LLC 1910 Chestnut St Center City West 250 28 Patriot Station at Chalfont Under Construction J.G. Petrucci Co., Inc. 131 N Main St Central Bucks County 69 29 Jacksonville Station Under Construction Jerc Partners Xix Lp 375 Jacksonville Rd Central Bucks County 151 30 AVE Under Construction Real Estate 496 W Germantown Conshohocken/Plymouth Mee 265 Investment Trust Pike 31 51 Washington Street Under Construction Roseland Property Company 51 Washington St Conshohocken/Plymouth Mee 310 32 The Alexander Under Construction The Church of Jesus Christ of 1601 Vine St Fairmount-Art Museum 271 Latter-Day Saints 33 The Jacksonville Green Under Construction C2 Architecture 301 Jacksonville Rd Horsham/Willow Grove 85 34 Orinoka Mills Complex Under Construction Ruth St Corp 2753 Ruth Way Kensington 51 35 Canvas Under Construction The Carlyle Group 101 Bryce Ln King of Prussia/Norristow 235 36 Hanover Valley Forge Under Construction The Hanover Company 300 Village Dr King of Prussia/Norristow 339 37 751 Vandenburg Blvd Under Construction Bentley Homes Ltd. 751 Vandenburg Blvd King of Prussia/Norristow 320 38 Drueding Multifamily Under Construction Umbrella Factory Lp 1401 N 5th St North Philadelphia East 172 Redevelopment 39 Liberty Square Under Construction Blackstone Development 1203 Germantown North Philadelphia East 247 Ave 40 Norman Blumberg Apartments Under Construction Philadelphia Housing Authority 2311 W Jefferson St 57 41 3524 Monument St Under Construction Philadelphia Housing Authority 3524 Monument St North Philadelphia West 55 42 1002-1020 N 2nd St Under Construction 1002 Owner, LP 1002-1020 N 2nd St Northern Liberties 53 43 Trans Atlantic Co. Warehouse Under Construction D3 Real Estate Development 420-442 Fairmount Northern Liberties 66 Apartments Ave COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 4 PIPELINE DETAIL, CONTINUED

# Name Status Owner Address Market Units Under Construction 44 Vue32 Under Construction Drexel University 3201 Race St Powelton 164 45 Haven at Atwater Under Construction Johnson Development Associates, 1000 Terrain St Upper Chester County 300 Inc. 46 Westside Under Construction Longview Development LP 1107 Rapps Dam Rd Upper Chester County 171 47 3795 Schuylkill Rd Under Construction Whitehall Lp 3795 Schuylkill Rd Upper Chester County 50 48 Riverworks Under Construction South Eastern Economic 45 N Main St Upper Chester County 247 Development Company of PA 49 Maybrook Under Construction Jefferson Apartment Group 325 Penn Rd Wynnewood 250 6,071 Total Units 9,880

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