GREATER SALT LAKE AREA MULTIFAMILY MARKET REPORT Salt Lake • Utah • Davis • Weber

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For a market analysis on your property or or analysis on your property For a market more information contact: Patrick Bodnar Patrick Senior Associate +1 801 869 8053 [email protected] Eli Mills Senior Vice President +1 801 869 8029 [email protected]

TABLE OF CONTENTS (Source: Real Capital (Source: Real (2014 Historical Data)

Properties Senior Vice President Utah Department of Economics Utah Department of of Economics and Business ResearchUniversity of Utah Bureau Equimark Construction Monitor CoStar • • • • •

CBRE Research CBRE Econometric Advisors Matrix Yardi Axiometrics States Multifamily Western Senior Associate Eli Mills Eli Bodnar Patrick We welcome your inquiries into the Utah multifamily market and encourage you to contact us with any questions. welcome your inquiries into the Utah We CBRE consistently leads the market, with multifamily CBRE consistently leads the market, billion in 2017 investment sales totaling over $25.6 second-to-none.is CBRE of the exposure With the nearest competitor, volume of over double the Analytics). By consistently closing 65 locations and over 300 multifamily professionals, including direct lending services, CBRE’s unparalleled multifamily platform has a competitive in Utah and an enhanced investment presence multifamily reach into the space here in the mountain west region, market exposure available. providing our clients with the greatest Whatever your multifamily needs may be, please feel free to reach out to us. We have the most comprehensive data on the market comprehensive data on the most have We us. to out reach to please feel free be, may multifamily Whatever your needs rail proximity to size, age, location, zip code, submarket, city, class, on micro level based or macro a information on providecan and stops, and many other variations. Data contributions and validations to this publication were made by: and validations to this publication were Data contributions This report has been prepared with current data sourced from a survey of over 60,000 units along the Wasatch Front Area inclusive Area Front prepared This report has been units along the Wasatch data sourced from a survey of over 60,000 with current of Salt Lake, Utah, Davis and Counties. Weber Minimum reporting requirements were identified for each city and county by class, type and size. • • • • • CBRE is pleased to release the 2018 Greater Salt Lake City Area Multifamily Market Report, the most current and comprehensive and comprehensive the most current 2018 Greater to release the CBRE is pleased Lake City Area Multifamily Salt Market Report, CBRE, Eli Mills of Bodnar and report this by Patrick Produced market. Front multifamily Salt Lake Area/Wasatch available for the data market. in the Utah professionals interested of multifamily the decision making assembled to empower has been PREFACE 2018 GREATER SALT LAKE AREA MULTIFAMILY REPORT

EXECUTIVE SUMMARY TRANSACTION VOLUME & CAP RATES

Utah’s robust multifamily sector in 2017 was recently validated by Price HEADLINES TO KNOW Total multifamily transaction volume reached an all-time high in NOTABLE SALES TRANSACTIONS Waterhouse Coopers and the Urban Land Institutes, Emerging Trends 2017 cresting over $1.0 billion for properties 50 units or greater. This THE LARGEST SALE HIGHEST PRICE/UNIT GREATEST # OF UNITS in Real Estate Report, released in Q4 of 2017, wherein Salt Lake City represents 42 transactions and 7,014 units. The market volume total was identified as the number two location to buy multifamily real estate VACANCY was a little over $913.0 million for properties greater than 100 units. in the nation. With another record year in sales volume totaling over Additionally, the small market sold $100.7 million in assets between $1.0 billion, demand for Utah multifamily has been rightly confirmed. 4.0% 60 BPS YOY 10 and 49 units. 44% of the total sales volume was from eight Class Investor interest is fueled by strong economic fundamentals and better A and B assets, having greater than 200 units. Each sold for over $40 yield spreads than neighboring western states markets. million dollars at an average price per unit of $217,000 dollars. RENT SALES The greater Salt Lake area has been operating at near full employment Pricing across the board was strong. Average unit pricing was PARK AT CITY CENTER THE VUE LIONSGATE throughout 2017 greatly contributing to the continued high numbers $1,059/MO. $239,000 for Class A, $155,300 for Class B, and $111,000 for of people migrating to Utah for job opportunities. The Bureau of Class C. Although Class A pricing reached new heights in Utah, Sandy, Utah Salt Lake City, Utah Murray, Utah Labor Statistics data shows Utah ranked number two in the U.S. for job VOLUME OVER close comparison to neighboring, coastal and western states markets $1 BILLION 330 Units 211 Units 400 Units growth at 2.7%. In addition, Utah is tied with Nevada for the number 6.6% YOY provide a clearer picture why Utah remains an attractive alternative one spot in private sector job growth at 2.9%. These labor statistics for investors. Over the last two years other western markets averaged have contributed to the healthy population growth of over double the PIPELINE per unit pricing as follows: Los Angeles $397,000, Orange County 2017 WASATCH FRONT MULTIFAMILY CAP RATES BY CLASS national average at 2.0%. The Greater Salt Lake Area is attracting $303,700, San Diego $322,100, Denver $244,800, Portland the interest of capital from investors across the nation and around the 5,138 UNITS 11,222 UNITS $252,800 and Seattle $281,300. Utah’s Class A multifamily assets NEW DELIVERIES UNDER CONSTRUCTION are selling at an average of $239,000, a much lower price than the CLASS A CLASS B CLASS C MARKET TRENDS Class B and C assets in other coastal and western state markets. Investors can purchase new product with state-of-the-art amenities in 4.9% 5.5% 6.0% Utah and achieve far better yields at a lower price point. LOOKING FORWARD

WESTERN MARKETS – CAP RATES & PRICING PER UNIT MULTIFAMILY SALES VOLUME ($, MILLIONS) STRONG INCREASED SALES CAP RATES 6.5% $450,000 $1,100 ABSORPTION INSTITUTIONAL CAP RATE PRICE/UNIT $1,038 6.0% $1,000 (17 UNITS/MO) INTEREST 5.6% 5.6% 5.6% $400,000 INCREASED RATES TO 5.5% 5.3% 5.3% VOLUME REMAIN STABLE $900 5.0% $350,000 4.5% $800 4.5% $396,978 $300,000 $703 $700 GROWING HIGH PIPELINE 4.0% 3.9% $644 INTEREST FOR DEMAND FOR HIGH RISE VALUE-ADD 3.5% $250,000 $600 $281,320 RESIDENTIAL OPPORTUNITIES EXPECT 8,100 NEW 3.0% UNITS TO BE DELIVERED $252,777 $200,000 $500 $464 2.5% $244,846 $400 $150,000 2.0% $300 $285

RENT VACANCY $164,661

1.5% $159,179 $100,000

$145,220 $200 1.0% GROWTH SOME $50,000 TO CONTINUE INCREASE 0.5% $100 0.0% $0 $0 SALT LAKE CITY PHOENIX LAS VEGAS DENVER PORTLAND SEATTLE LOS ANGELES 2013 2014 2015 2016 2017 Source: CBRE, Inc., Real Capital Analytics. Source: CBRE, Inc., Real Capital Analytics.

GREATER SALT LAKE AREA (WASATCH FRONT) SUPPLY VS. DEMAND AND ABSORPTION

The Greater Salt Lake area, also known as the Wasatch Front, consists UTAH ACCOLADES Multifamily expansion continues to be bullish. There are NOTABLE NEW DEVELOPMENTS of four counties—Salt Lake, Utah, Davis and Weber. Ogden City is approximately 11,222 total units presently under construction located 45 minutes to the north of Salt Lake City, while Provo is located along the Wasatch Front and another 8,099 units are slated as THE LARGEST SALE HIGHEST PRICE/UNIT GREATEST # OF UNITS 45 minutes to the south of Salt Lake City. Approximately 2.4 million ECONOMY potential starts. The bulk of new development is located in Salt people (80% of Utah’s population) live within this four-county area. NUMBER 1 NUMBER 2 STATE Lake County with a total of 8,034 units under construction. Salt STATE FOR THAT WILL BOOM OVER Lake County houses a little over 53% of all active and planned THE WASATCH FRONT BUSINESS THE NEXT 5 YEARS construction. This influx of new units will increase the base inventory (WALL STREET) (FORBES) by approximately 5.7% over last year. So, are we overbuilding? The answer is no. Certainly supply levels will create some slowing in absorption velocity, however, the current new supply is being 4TH WEST ALTA GATEWAY RIVERFRONT 3.05 1,700 MILLION absorbed at a very healthy pace. MILES Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, Utah PEOPLE WEBER U.S. CENSUS OF RAILROAD NUMBER 1 CBRE Salt Lake City Multifamily tracks monthly lease-up activity for COUNTY TRACKS STATE FOR 493 Units 277 Units 288 Units FUTURE all new developments. The current 10-month average for absorption LIVABILITY per project is 17 units per month. On the high end of the absorption PUBLIC GALLUP WELLBEING LOWEST TRANSIT range, some select downtown properties are absorbing north of 30 CONSTRUCTION SUMMARY MEDIAN REACHES units per month and some suburban projects are absorbing only DAVIS AGE IN 75% 6TH LOWEST nine units per month on the low end of the range. Of the total units COUNTY COMPLETED 2011 - CURRENT UNDER CONSTRUCTION POTENTIAL STARTS COUNTY NATION Salt Lake 14,953 8,034 2,163 NATIONAL OF THE CRIME RATE delivered to the market for lease in 2017, approximately 75% of

DEMOGRAPHICS MEDIAN: 37.1 FRAMEWORK POPULATION LIFESTYLE IN AMERICA Utah 5,357 2,290 3,950 these units are leased, suggesting the overall lease-up velocity is Davis 2,939 383 843 healthy and the market demand is keeping pace with new supply. SALT LAKE Weber 1,470 515 1,143 COUNTY Totals 24,719 11,222 8,099 2017 POPULATION GROWTH RATE COMPARISON THE RIDGE Source: CBRE, Inc.; Western States Multifamily.

UTAH GREATER SALT LAKE WASATCH FRONT GROWTH PIPELINE (UNITS OF COMPLETED PROJECTS) COUNTY POPULATION GROWTH RATE 9,000 UTAH LAKE 1.9% 8,000 8,100 U.S. 7,000 POPULATION GROWTH RATE 0.7% 6,000 Source: Kem C. Gardner Policy Institute (as of January 2018); U.S. Census Bureau. 5,000 5,148 4,000

3,000 3,572

2,000 2,863 2,397 2,131 1,000

0 2013 2014 2015 2016 2017 2018* Source: CBRE, Inc. * Projected

WASATCH FRONT SUMMARY WASATCH FRONT HISTORICAL RENTAL RATES & VACANCY: SUMMARY TABLES BY COUNTY AND CITY

Record inmigration of approximately 20,000 people along the Wasatch Front has fueled the multifamily market in 2017. Overall rent growth is 2015 2016 2017 up year-over-year at 6.6% with an average monthly rent of $1,059. 5,138 units were delivered in 2017 with 11,222 units are presently under SALT LAKE COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY construction. Total sales skyrocketed last year with a record volume of over $1.0 billion. Vacancy remained favorable to landlords at 4.0%. Cottonwood Heights $1,048 952 $1.10 4.0% $1,135 986 $1.15 3.5% $1,128 928 $1.21 3.1% Draper $1,055 970 $1.08 3.4% $1,132 976 $1.16 4.7% $1,151 959 $1.20 3.1% RENTAL RATES BY COUNTY Midvale $957 874 $1.09 3.6% $1,025 871 $1.18 2.5% $1,095 954 $1.15 5.0% Avg. Monthly Rent/Unit $/SF Murray $922 897 $1.03 3.2% $982 906 $1.08 2.5% $1,072 903 $1.19 4.0% $1,200 $2.00 Riverton $973 971 $1.01 4.7% $1,028 898 $1.14 2.2% $1,073 874 $1.23 3.5% $1,087 $1,097 $1,059 $1,100 $1,027 $1,041 $1,005 $994 Salt Lake City $974 771 $1.26 4.2% $1,061 760 $1.40 3.4% $1,342 1,204 $1.45 2.7% $1,000 $960 $956 $1.75 $933 $915 Sandy $1,024 886 $1.15 4.5% $1,073 888 $1.21 3.4% $1,104 760 $1.45 4.6% $900 $864 $864 $810 South Jordan $1,268 1,123 $1.13 6.2% $1,400 1,212 $1.15 5.5% $1,131 844 $1.34 5.1% $800 $740 $1.50 South Salt Lake $818 756 $1.08 4.3% $912 840 $1.09 2.6% $1,261 1,050 $1.20 4.7% $700 Taylorsville $886 891 $1.00 4.4% $956 969 $0.99 2.7% $898 840 $1.07 4.7% $600 $1.25 West Jordan $965 902 $1.07 3.9% $1,068 971 $1.10 2.8% $1,011 979 $1.03 4.4% $500 $1.24

$1.18 West Valley City $862 854 $1.01 4.6% $975 917 $1.06 5.0% $1,016 801 $1.27 5.3% $1.16 $1.15

$400 $1.14 $1.00 $1.11 $1.11 $1.08 $1.08 $1.07 $300 $1.04 Downtown $962 782 $1.38 4.2% $1,166 781 $1.49 2.2% $1,166 781 $1.49 1.6% $1.00 Overall $1,027 890 $1.15 3.2% $1,087 875 $1.24 4.1%

$200 $0.86 $0.75 $0.81 $100 $0.81 Source: CBRE, Inc. $0 $0.50 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 SALT LAKE COUNTY UTAH COUNTY DAVIS COUNTY WEBER COUNTY WASATCH FRONT UTAH COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Source: CBRE Research, H2 2017. Orem $997 907 $1.10 4.7% $1,049 901 $1.16 4.1% $1,079 947 $1.14 4.9% Pleasant Grove $992 984 $1.00 3.6% $1,063 1,022 $1.04 3.9% $1,099 997 $1.10 4.8% HISTORICAL RENTAL & VACANCY RATES Provo $700 683 $1.03 2.1% $715 653 $1.09 1.4% $746 611 $1.22 1.6% 2015 2016 2017 Overall $1,041 914 $1.14 4.0% $1,097 943 $1.16 4.1% WASATCH FRONT RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Source: CBRE, Inc. Salt Lake $960 871 $1.08 4.1% $1,027 890 $1.15 3.2% $1,087 875 $1.24 4.1% Utah $955 880 $1.07 3.8% $1,041 914 $1.14 4.0% $1,097 943 $1.16 4.1% 2015 2016 2017 Davis $864 854 $1.00 4.0% $933 863 $1.08 3.4% $1,005 906 $1.11 3.5% DAVIS COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Weber $754 922 $0.81 3.5% $810 945 $0.86 2.3% $864 960 $0.90 3.2% Bountiful $900 945 $0.95 5.4% $962 930 $1.03 4.8% $979 901 $1.09 3.8% Wasatch Front $915 879 $1.04 4.1% $994 897 $1.11 3.3% $1,059 896 $1.18 4.0% Clearfield $760 865 $0.88 3.4% $796 833 $0.96 3.1% $889 775 $1.15 4.8%

Source: CBRE, Inc. Layton $839 855 $0.99 4.0% $889 813 $1.09 3.1% $978 932 $1.05 3.3%

North Salt Lake $984 906 $1.09 4.7% $1,062 888 $1.20 3.9% $1,054 914 $1.15 4.7% WASATCH FRONT CURRENT RENTAL & VACANCY RATES WASATCH FRONT NEWS HEADLINES“ Overall $933 863 $1.08 3.4% $1,005 906 $1.11 3.5% BY CLASS CLASS A CLASS B CLASS C SILICON SLOPES: UTAH HAS OPPORTUNITY TO BE AT THE FOREFRONT OF Source: CBRE, Inc.

CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY TECH EDUCATION “Source: Utah Business, January 23, 2018. 1 “ 2015 2016 2017 Studio $1,065 $2.01 $738 $1.88 $541 $1.41 WEBER COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY 1 Bed 1 Bath $1,091 $1.44 $892 $1.31 $763 $1.29 LAWMAKERS MAY IMPOSE FEES ON UTAH CITIES THAT LACK AFFORDABLE

HOUSING

2 Bed 1 Bath $1,136 $1.20 $1,002 $1.12 $886 $1.02 “ Ogden $684 826 $0.83 4.0% $745 862 $0.86 2.3% $772 870 $0.89 4.2% Source: Salt Lake Tribune, January 4, 2018. 2 “ Roy $860 1,116 $0.77 2.6% $908 1,127 $0.81 1.9% $934 1,127 $0.83 3.2% 2 Bed 2 Bath $1,244 $1.17 $1,137 $1.13 $870 $0.73 3 Bed 2 Bath $1,508 $1.13 $1,242 $1.01 $1,118 $0.78 West Haven $707 903 $0.78 3.2% $659 922 $0.71 2.9% $707 834 $0.85 3.1% WASATCH FRONT HOME PRICES HIGHER THAN EVER BEFORE Overall $1,205 $1.25 4.5% $1,010 $1.15 3.7% $821 $1.18 4.2% 3“Source: KSL, August 11, 2017. Overall $810 945 $0.86 2.3% $864 960 $0.90 3.2% Source: CBRE, Inc. Source: CBRE, Inc.

SALT LAKE COUNTY DOWNTOWN VS. SUBURBAN MULTIFAMILY STATS Salt Lake City’s downtown remains vibrant with development activity. OVERALL VACANCY & RENT SQUARE FOOT & VACANCY COMPARISON BY LOCATION 1,250 units were delivered in the downtown area in 2017 of which 940 25.0 2017 2016 10.0% $1,100 74% have been leased. An estimated 1,992 units are presently 925 SF VACANCY (%) RENT ($) 920 9.0% under construction with expected deliveries over the next 18 months. $1,000 VACANCY RATE VACANCY RATE Vacancy for Class A properties realized a bump to 6.2%. Job growth 900 20.0 8.0% in the financial and health services sectors at companies such as 880 4.1% 3.2% $900

7.0% Goldman Sachs, Fidelity and University Health Systems are the main 860 VACANCY (%) 15.0 $800 drivers for employment, bringing many renters downtown. 840 6.0%

RENTAL RATE RENTAL RATE SIZE (SF) 820 5.0% $700 New, Class A product in Salt Lake City’s downtown has an average 10.0 800 $1,087 $1,027 rental rate across all unit types of $1,446/unit or $1.68/SF. Best- 781 SF 4.0% 780 $600 in-class properties have average rental rates over $2.00/SF. 5.0 Additionally, some select units are realizing rates as high as $2.66/ 760 3.2% 3.0% 1.6% $500 SF for studio units. As rent levels push the high water mark, we will 740 RENT GROWTH 2.0% soon see the development of new high-rise apartment communities. 720 0.0 $400 DOWNTOWN SUBURBAN 6 MONTH 12 MONTH 1.0% Highly efficient design, inclusive of micro units and desirable Source: CBRE, Inc. amenities, along with continued wage growth, will be necessary to 4.7% 5.8% 0.0% $300 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 sustain a significant number of high-rise rental units and to justify ( ) Source: CBRE, Inc. the Type 1 construction* required. Several sites have been identified DOWNTOWN RENTAL RATE COMPARISON BY CLASS A & B ONLY and are presently being considered for such developments. RENTAL RATE & VACANCY SUMMARY TABLES DOWNTOWN CLASS A CLASS B CATEGORY RENT $/SF RENT $/SF BY UNIT TYPE BY CLASS CLASS A CLASS B CLASS C ALTA GATEWAY STATION Studio $1,395 $2.66 $776 $1.93 CATEGORY RENT SF $/SF VACANCY CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 1 Bed 1 Bath $1,327 $1.81 $987 $1.48 Studio $827 415 $1.99 Studio $1,076 $2.05 $748 $1.97 $745 $1.96 2 Bed 1 Bath $1,563 $1.98 $1,074 $1.09 1 Bed 1 Bath $969 686 $1.41 1 Bed 1 Bath $1,096 $1.47 $905 $1.37 $825 $1.39 2 Bed 2 Bath $1,614 $1.56 $1,364 $1.40 2 Bed 1 Bath $1,023 908 $1.13 2 Bed 1 Bath $1,125 $1.18 $1,013 $1.12 $963 $1.09 3 Bed 2 Bath $1,494 $1.32 $1,273 $0.92 2 Bed 2 Bath $1,242 1,024 $1.21 2 Bed 2 Bath $1,333 $1.25 $1,167 $1.18 $877 $0.73 Overall $1,446 $1.68 $1,023 $1.38 3 Bed 2 Bath $1,373 1,253 $1.10 3 Bed 2 Bath $1,544 $1.16 $1,297 $1.08 $1,118 $0.78 Source: CBRE, Inc. Overall $1,087 875 $1.24 4.1% Overall $1,234 $1.31 4.5% $1,047 $1.21 3.9% $907 $1.16 4.3%

Source: CBRE, Inc. Source: CBRE, Inc. SUBURBAN RENTAL RATE COMPARISON BY CLASS (A & B ONLY)

BY SIZE 50 - 99 UNITS 100+ UNITS BY YEAR 1990 - 1999 2000 - 2009 BUILT AFTER 2010 SUBURBAN CLASS A CLASS B

CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY CATEGORY RENT $/SF RENT $/SF

Studio $725 $1.67 $836 $2.02 Studio N/A N/A $675 $1.23 $1,179 $2.32 Studio $942 $1.72 $731 $2.03 1 Bed 1 Bath $989 $1.46 $968 $1.41 1 Bed 1 Bath $1,066 $1.43 $1,006 $1.29 $1,127 $1.56 1 Bed 1 Bath $1,038 $1.37 $894 $1.35 2 Bed 1 Bath $948 $1.03 $1,046 $1.16 2 Bed 1 Bath $1,069 $1.21 $1,069 $1.17 $1,177 $1.27 2 Bed 1 Bath $1,124 $1.17 $1,023 $1.14 2 Bed 2 Bath $1,181 $1.08 $1,246 $1.22 2 Bed 2 Bath $1,256 $1.20 $1,256 $1.14 $1,362 $1.37 2 Bed 2 Bath $1,268 $1.18 $1,153 $1.16 3 Bed 2 Bath $1,316 $0.94 $1,382 $1.12 3 Bed 2 Bath $1,404 $1.16 $1,404 $1.09 $1,440 $1.16 3 Bed 2 Bath $1,548 $1.15 $1,297 $1.08 Overall $1,049 $1.12 2.8% $1,106 $1.26 4.3% Overall $1,179 $1.27 3.7% $1,184 $1.18 4.8% $1,269 $1.37 4.7% Overall $1,198 $1.24 $1,047 $1.19 Source: CBRE, Inc. Source: CBRE, Inc. * Construction utilizing fire-resistive, non-combustible building materials such as steel and concrete. Source: CBRE, Inc.

SALT LAKE COUNTY SALT LAKE COUNTY: COMPLETED MULTIFAMILY PROJECTS, 2011 - JANUARY 2018

HISTORICAL RENTAL RATES BY UNIT TYPE (AVERAGE MONTHLY AND PER SQ. FT. RATES) # NAME UNITS TYPE # NAME UNITS TYPE 1 600 Lofts 274 A 56 Millcreek Towers 38 M $1,800 $2.10 2 21st and View 29 M 57 Newhouse 61 M 2015 2016 2017 3 2550 South Main 112 M 58 North Sixth 115 A $2.00 4 644 City Station 132 M 59 Novi at Jordan Valley Station 267 M $1,600 $1.99 5 4th West Apartments 493 M 60 Oquirrh Hills 288 M $1.90 6 9th East Lofts 68 A 61 Paragon Station Lofts 38 M $1,400 $1,373 7 Aire Condominiums 30 M 62 Parc at Day Dairy 228 M $1.83 $1,242 $1,310 $1.80 $1,193 $1,234 8 Alta Gateway 264 M 63 Parc West 249 M $1.70 $1,200 $1.72 $1,105 $1,087 9 Artesian Springs Phase 1&2 191 A 64 Park at City Center* 330 M $1,023 $1,023 10 Artspace Macaroni Flats 13 M 65 Park East 70 M $969 $1.60 11 Axio 8400 332 M 66 Pinnacle Highbury 290 M $1,000 $923 $878 $912 $955 $827 $852 $1.50 12 Ball Park Apartments 61 S 67 Prana Townhomes 21 M 13 Beacon Hill 168 A 68 Promenade at the District 170 M $800 $776 $1.41 $704 $1.35 $1.40 14 Birkhill 202 A 69 Providence Place 125 M $1.28 $1.28 15 Birkhill Seniors 105 S 70 Rendon Terrace 70 S $600 $1.24 $1.30 16 Brickgate 268 A 71 Residence at Fairbourne Station 225 M $1.21 $1.22 $1.20 17 Brickyard 24 M 72 Residences at the District 258 M $400 $1.16 18 Bridges at Citifront - Phase 2 91 M 73 Riverfront 288 M $1.13 $1.10 $1.09 $1.10 19 Bud Bailey 136 A 74 Rockledge at Quarry Bend 416 M $1.04 $1.03 60 $200 $1.02 $1.00 20 Canyon Crossing at Riverwalk 180 A 75 Rockwell Village at Independence 60 M $1.00 21 Center Court 60 S 76 Rosegate 159 S 22 City Creek Landing 105 M 77 Rosegate in Draper 277 S $0 $0.90 STUDIO 1 BED 1 BATH 2 BED 1 BATH 2 BED 2 BATH 3 BED 2 BATH OVERALL 23 Cityscape 122 M 78 Sage Gate at Haynes Landing 278 M 24 Diamondpoint 18 M 79 San Tropez - Phase II 84 M Source: CBRE, Inc. 25 District Heights Village 258 M 80 Seasons at City Creek 130 M

26 Downtown 360 Apartments 151 M 81 Seasons at Library Square 119 M

Multifamily in Salt Lake County realized rent growth of 5.8% over last SALT LAKE COUNTY NEWS HEADLINES 27 Draper Village 181 M 82 Seasons on the Boulevard 99 M year, in part due to the increase in population from in-migration sparked “ 28 Drycreek at East Village 282 M 83 SEG028 28 M 29 East Village 273 M 84 Sharon Gardens 58 S by strong job growth. Many renters are coming to Salt Lake from other SALT LAKE CITY IS PROJECTED TO BE ONE OF AMERICA’S TOP TEN 30 Eastside Apartments 173 M 85 Silvercrest 186 S

HOUSING MARKETS FOR 2018 31 Element 31 at Brickyard 208 M 86 Solameer at Herriman Towne Center 134 M major markets where rental rates are much higher. Apartments in “Source: Fox13 News, November 29, 2017. 1 “ 32 Enclave 210 A 87 South Ridge 145 M Salt Lake county are a bargain compared to other markets and these 33 Encore 189 M 88 Sugarhouse Apartments 70 M renters are helping to raise the bar on pricing expectations. 34 Florentine Villas 214 A 89 S-Line Townhomes 32 M

APARTMENT VACANCY RATES IN SALT LAKE AREA ARE AT ALL-TIME LOW 35 Greenprint 60 M 90 Talavera at the Junction 252 M

Source: Deseret News, September 12, 2017. 2 “ 36 Highland 40 Townhomes 40 M 91 Taylor Gardens 112 A, S Vacancy increased 90 bps over 2017 to 4.0%. A slight uptick “ 37 Hills at Sandy Station 55 M 92 Taylor Springs 95 A, S in vacancy was realized mid-year, and vacancy has continued APARTMENTS (AND THEIR RENTS) ARE GOING UP FAST IN SALT LAKE 38 Hills at Sandy Station - Ph 2 146 M 93 Terrameer 174 M COUNTY, BUT THEY FILL UP JUST AS QUICKLY 39 Jordan Station 302 M 94 The Bonneville 158 M to increase. Many of the new properties have generated renter “ 3 Source: Salt Lake Tribune, September 19, 2017. 40 Jordan Valley Seniors 72 A, S 95 The Gardens 60 A, S movement to new units. 41 Kimpton Square 97 S 96 The Lotus 84 M 42 Laporte* 180 A 97 The Overlook at Rosecrest 196 M 43 Legacy Cottages 186 A 98 The Station at Midvale - Ph 1 102 A Increasing migration to Utah fueled by consistent job growth EAST VILLAGE APARTMENTS 44 Liberty Crest 177 M 99 The Vue at Sugarhouse Crossing 211 M will continue to keep vacancy rates across the Salt Lake valley at 45 Liberty Gateway 160 M 100 Triton Terrace 177 M industry-standard levels. The bulk of new development is located 46 Liberty Village 171 A 101 Tuscany Villas 76 A 47 Lionsgate at Fireclay 400 M 102 Via - Ph 1&2 138 M in Salt Lake County with a total of 8,034 units under construction. 48 Locust Lane 10 M 103 Victoria Woods - Draper 42 A, S Salt Lake County houses a little over 53% of all active and planned 49 Lofts at 7800 192 M 104 Victoria Woods - Sandy 100 S 50 Lotus Bluekoi 20 M 105 Villas at Fern Circle 36 S construction. This influx of new units will increase the base inventory 51 Lotus Madrona 37 M 106 Washington Street 5 M approximately 5.7% over last year. Many of these units have already 52 Meadows at Park Avenue 121 M 107 West Station 145 M 53 Meadows at Park Avenue - Ph 2 14 M 108 Willow Cove VII 72 M been delivered with initial project phases. Supply levels may create 54 Mercer 73 M 109 Wilmington Flats 105 M some slowing in rent growth and absorption velocity, however, the 55 Millcreek 9 27 M 15,903 Total Units current new supply is being absorbed at a very healthy pace of 17 MARKET AFFORDABLE SENIOR STUDENT units per month. M 11,572 Units A 2,741 Units S 1,590 Units ST 0 Units

Source: Western States Multifamily. Maps as of January 2018.

SALT LAKE COUNTY: MULTIFAMILY DEVELOPMENT UNDER CONSTRUCTION - JANUARY 2018 SALT LAKE COUNTY: POTENTIAL MULTIFAMILY STARTS AS OF JANUARY 2018

# NAME UNITS TYPE # NAME UNITS TYPE 1 21 By Urbana 126 M 1 409 E 400 S 97 M 2 35 S 900 E 39 M 2 965 Central 50 M 3 3357 S 900 E 19 M 3 447 E 100 S 86 M 4 1987 S 300 W 81 M 4 9th and 9th 28 A 5 2100 South Apartments 211 M 5 Affinity 56 192 M 6 3Forty3 Apartments 48 M 7 4- Legged Townhomes 11 M 6 Artesian Springs Phase 3 133 A 8 Block 67 230 M 7 Block 44 210 M 9 Brickcreek 58 A 8 Bodhi Salt Lake City 80 A 10 Canyon Centre 123 M 9 C9 Flats 97 M 11 Harmony Square 287 M 12 Central 9th Studios 12 M 10 Central Ninth 43 M 13 Central Station Senior Apartments 84 A 11 Cliffs at Jordan Station 237 M 14 Daybreak Condos 180 M 12 Diamond Ridge 58 M 15 Daybreak Town Center 466 M 13 Gladstone Place 187 M 16 Diamond Ridge 58 M 17 Draper South Point 119 A 14 Granary Place 134 A 18 Fairbourne Station II 201 M 15 Hardware Station East Village 195 A 19 First Step House 75 A 16 Hardware Station West Village 265 A 20 Flats at the District 120 M 17 Haxton 39 M 21 Garden Lofts 272 A 18 Herriman Town Center 304 M 22 Hardison 112 M 23 Independence 255 M 19 HiGrade 100 A 24 Liberty Crossing 157 A 20 Liberty Boulevard 266 M 25 Liberty on Main 120 A 21 Liberty Place 69 M 26 Liberty Pointe 100 M 22 Icon 9700 264 M 27 Liberty Square 138 M 28 Liberty Uptown 109 M 23 Lotus Millcreek 43 M 29 Little Diamond 146 A 24 Lotus Tapestry 43 M 30 Lone Peak 30 M 25 Meridian 263 M 31 Lotus Calla 43 M 26 Metro at Fireclay 175 M 32 Marmalade Flats 300 M 33 Maven 25 M 27 Milagro Apartments 182 M 34 Meadowbrook 145 A 28 Murray Crossing 280 M 35 Metropolitan 74 M 29 North 4th Apartments 110 A 36 Millcreek Station 70 A 30 North Temple Flats 168 A 37 North Temple Orange 364 M 38 Novi at Jordan Valley Station Ph 2 181 M 31 Paragon Station Lofts 38 M 39 NW Pipeline 248 A 32 Paytons Quarry of Herriman 124 M 40 Oquirrh Flats 96 A 33 Pierpont 87 M 41 Paperbox Development Ph 1 & 2 309 A 34 Ritz Classic Multifamily 287 M 42 Paxton 365 103 M 43 Project Open 2 90 A 35 Rosegate in Herriman 298 S 44 Residences at Vista Station North 308 M 36 Sagegate at Anthem* 422 M 45 Rockwell Lofts 21 M 37 Skyhouse 240 M 46 Sage Gate 342 M 38 Spring Run Townhomes 54 M 47 Salt Lake Costumes Site 19 M 48 TAG 170 42 M 39 Station at Gardner Mill 272 M 49 TAG 945 12 M 40 Sugarmont 435 M 50 TAG 950 18 M 41 Tenfifteen 54 A 51 The East Village Phase 2 65 M 42 The Arcadia 211 A 51 The Exchange Phase 1&2 412 A 53 The Green on Highland 188 M 43 The Morton 137 M 54 The Hub of Opportunity 57 A 44 The Ridge 261 M 55 The Lofts on Vine 264 M 45 The Station at Midvale - Ph 1 102 A 56 The Metro at Fireclay Phase II 165 M 57 The Prestige 350 M 46 The Station at Midvale - Ph 2 84 A 58 The View at 5600 192 M 47 Veranda 239 A 59 Town Center 30 M 48 Washington Street 5 M 60 Triton Point of View 320 M 49 West Station - Phase II 145 M 61 West Gateway Commons 100 M 62 West Temple 260 M 50 Zellerbach 292 M 63 West Valley Apartments 420 M 8,214 Total Units 9,591 Total Units

MARKET SENIOR MARKET SENIOR M 6,013 Units S 298 Units M 7,133 Units S 0 Units AFFORDABLE STUDENT AFFORDABLE STUDENT A 1,903 Units ST 0 Units A 2,458 Units ST 0 Units

Source: Western States Multifamily. Maps as of January 2018. Source: Western States Multifamily. Maps as of January 2018.

UTAH COUNTY UTAH COUNTY: MULTIFAMILY COMPLETED/PIPELINE, 2011- JANUARY 2018

OVERALL VACANCY & RENT # NAME UNITS STATUS TYPE 1 200 Cityview 139 Under Construction M 2 63 Center 41 Completed M 2017 2016 8.0% $1,200 3 Aldara 240 Completed M VACANCY (%) RENT ($) 4 Alloy at Geneva 324 Completed M 7.0% $1,100 5 Arbors on the Avenue 68 Potential Start M VACANCY RATE VACANCY RATE 6 Avalon Senior Living 90 Completed S $1,000 7 Avalon Senior Living - Phase 2 90 Completed S 4.1% 4.0% 6.0% 8 Bella Grace 24 Completed M 9 Canyon View Crossing 180 Completed M $900 10 Cascade Gardens 42 Completed S 5.0% 11 Central Park Station 59 Completed A RENTAL RATE RENTAL RATE $800 12 Cherry Hill 74 Completed M 4.0% 13 College Place Provo 71 Completed ST $700 14 Concord at Geneva 304 Completed M $1,097 $1,041 15 Cresthaven 344 Completed M 3.0% 16 Geneva Road 270 Potential Start ST $600 17 Grove Crest Villas 162 Completed S 2.0% 18 Lakeview Condos 44 Completed M $500 19 Lexington Green 252 Potential Start M RENT GROWTH 20 Liberty Center 120 Completed A 6 MONTH 12 MONTH 1.0% $400 21 Lincoln Square 473 Potential Start M 22 Lofts at Ivory Ridge 45 Completed M 23 Meadows 142 Potential Start M 0.4% 5.4% 0.0% $300 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 24 Meadows at American Fork 270 Under Construction M 25 Midtown 360 286 Completed M Source: CBRE, Inc. 26 Midtown 360 West Tower 248 Under Construction M 27 Millpond 214 Potential Start M

28 Outlook 260 Completed M

CURRENT RENTAL & VACANCY RATES UTAH COUNTY NEWS HEADLINES 29 Pacific Drive Apartments 26 Under Construction A “ 30 Palos Verdes Neighborhood 461 Potential Start ST THREE UTAH CITIES TAKE TOP RANKS IN ANNUAL BEST-PERFORMING 31 Parc on 5th 252 Potential Start M

BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL 32 Parc on Center 168 Completed M

CITIES REPORT – PROVO-OREM TAKE #1 SPOT 33 Parkway Lofts 332 Completed M “Source: Milken Institute, January 10, 2018. CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 1 “ 34 Porter Ranch Townhomes 90 Under Construction M 35 Red Sky 126 Potential Start M Studio N/A N/A $900 $1.48 N/A N/A PROVO UTAH #1 IN JOB GROWTH #6 BEST PLACES FOR BUSINESS 36 Residences at Mayfield 214 Completed M

37 Residences at Montveal 132 Completed M

1 Bed 1 Bath $805 $1.35 $1,011 $1.35 $996 $1.34 AND CAREERS 38 Ridgeline Townhomes 85 Under Construction M “Source: Forbes, 2017 ranking. 2 “ 39 River's Edge 246 Potential Start M 2 Bed 1 Bath $770 $1.08 $995 $1.19 $962 $1.17 40 Riverview 32 Completed ST 41 Rivulet 252 Under Construction M 2 Bed 2 Bath $1,150 $1.09 $1,153 $1.09 $1,154 $1.09 UTAH POPULATION BOOMING – FUELED BY JOB SEEKERS AND BABIES 42 Rowland Heights 128 Potential Start ST Source: Salt Lake Tribune, November 29, 2017. 43 Seasons at Traverse Mountain 440 Completed M 3 Bed 2 Bath N/A N/A $1,471 $1.12 $1,476 $1.12 3“ 44 Siena Villas 81 Completed M 45 Spring Haven 320 Potential Start S Overall $828 $1.17 6.2% $1,104 $1.16 4.1% $1,097 $1.16 4.1% 46 Startup Crossing 100 Completed A 47 Sun Canyon Villas 84 Under Construction M Source: CBRE, Inc. ALLOY AT GENEVA 48 The Aston at University Place 237 Completed M 49 The Aston at University Place - Phase 2 241 Under Construction M 50 The Boulevard 110 Completed M HISTORICAL RENTAL & VACANCY RATES 51 The Depot 120 Under Construction M 52 The Old Chapel 15 Completed M 53 The Orchards 60 Potential Start M BY YEAR 2015 2016 2017 54 The Vue at Traverse Mountain, Phase 1 154 Potential Start M 55 The Vue at Traverse Mountain, Phase 2 154 Potential Start M CATEGORY RENT $/SF RENT $/SF RENT $/SF 56 Traverse Towns 92 Under Construction M 57 University Downs 437 Potential Start ST Studio N/A N/A N/A N/A N/A N/A 58 Viewpointe 288 Completed M 59 Village at South Campus 236 Completed ST 1 Bed 1 Bath $876 $1.25 $820 $1.19 $996 $1.34 60 Vine 72 Under Construction M 61 Vine (Future Phases) 396 Potential Start M 2 Bed 1 Bath $859 $1.03 $818 $0.99 $962 $1.17 62 Waters Edge 227 Potential Start M Status/Type M A S ST Total 63 Woodland Heights 71 Completed ST 2 Bed 2 Bath $1,057 $1.01 $1,076 $1.04 $1,154 $1.09 Completed 4,183 279 384 410 5,256 11,355 Total Units Under Construction 1,693 26 0 0 1,719 3 Bed 2 Bath $1,245 $1.02 $1,158 $1.00 $1,476 $1.12 Potential Start 2,764 0 320 1296 4,380 M MARKET A AFFORDABLE S SENIOR ST STUDENT Overall $959 $1.08 $930 $1.07 $1,097 $1.16 Total 8,640 305 704 1,706 11,355 53 8,640 Units 305 Units 704 Units 1,706 Units Source: CBRE, Inc. Source: Western States Multifamily. Maps as of January 2018.

DAVIS COUNTY DAVIS COUNTY: MULTIFAMILY COMPLETED/PIPELINE, 2011- JANUARY 2018

OVERALL VACANCY & RENT # NAME UNITS STATUS TYPE 1 Angels Landing Townhomes 24 Completed M 2017 2016 9.0% $1,100 VACANCY (%) RENT ($) 2 Avanti at Farmington Station 140 Completed M VACANCY RATE VACANCY RATE 8.0% $1,000 3 Boardwalk Townhomes 15 Potential Start M 7.0% 4 Carrington Place Ph II 60 Potential Start M 3.5% 3.4% $900 5 Cimarron at Foxboro 102 Potential Start M 6.0% $800 6 City Centre 123 Under Construction M RENTAL RATE RENTAL RATE 5.0% 7 Clearfield Station 216 Under Construction M $700 $1,005 $933 4.0% 8 Creekside Oaks 24 Completed M $600 9 Eaglewood Lofts 410 Completed M 3.0% 10 Eastgate at Greyhawk 108 Completed M $500 RENT GROWTH 2.0% 11 Farmington Crossing 93 Completed M 6 MONTH 12 MONTH 1.0% $400 12 Fernwood Place 74 Completed M 13 Greyhawk Townhomes 114 Completed M 4.2% 7.7% 0.0% $300 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 14 Hampton Place 210 Completed M Source: CBRE, Inc. 15 Hepworth Apartments 178 Potential Start M

16 Hills at Renaissance 107 Completed M CURRENT RENTAL & VACANCY RATES DAVIS COUNTY NEWS HEADLINES “ 17 Huntington 70 Completed M

BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL GOV. GARY HERBERT UNVEILS $16.7 BILLION BUDGET PROPOSAL FOR 18 Kay’s Crossing 156 Completed M

UTAH - $33.4 M FOR DAVIS TECHNICAL COLLEGE

19 Legacy Cottages 150 Completed S “Source: Deseret News Utah, December 13, 2017. CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 1 “ 20 Legacy Crossing 206 Completed M Studio $469 $1.30 $586 $1.43 $586 $1.43 21 Odell Crossing 44 Under Construction M

DAVIS COUNTY RANKS HIGH IN FINANCIAL HEALTH 1 Bed 1 Bath $816 $1.05 $911 $1.31 $906 $1.29 22 Orchard Farms 80 Completed M 2“Source: The Davis Clipper, January 15, 2018. “ 2 Bed 1 Bath $864 $0.94 $1,003 $1.12 $987 $1.10 23 Park Lane Village 324 Completed M DAVIS COUNTY U.S. 89 PLANS ENTAIL BIG CHANGES AT MANY 2 Bed 2 Bath $1,044 $0.94 $1,076 $1.09 $1,071 $1.06 “INTERSECTIONS-$275 MILLION PROJECT TO IMPROVE FLOW & EXPAND U.S. 89 24 Parkview Townhomes 24 Completed M Source: Standard-Examiner, June 22, 2017. 3 Bed 2 Bath $1,255 $0.96 $1,225 $0.97 $1,221 $0.97 3 25 Residences at Station Parkway 431 Potential Start M 26 Ridgeview 122 Completed M Overall $984 $0.95 1.0% $1,006 $1.14 3.9% $1,005 $1.11 3.5% 27 Seasons at Layton 164 Completed M Source: CBRE, Inc. HAMPTON PLACE 28 Sessions Settlement 19 Completed M HISTORICAL RENTAL & VACANCY RATES 29 The Park at Legacy Trails 162 Completed M 30 University Ridge 32 Completed M BY YEAR 2015 2016 2017 31 Village at Church & Main 56 Completed M

CATEGORY RENT $/SF RENT $/SF RENT $/SF 32 Villas on Main 142 Completed M 33 West Square 149 Potential Start M Studio $475 $1.22 $512 $1.39 $586 $1.43 34 Woods Cross Townhomes 72 Potential Start M 1 Bed 1 Bath $780 $1.18 $839 $1.27 $906 $1.29 4,401 Total Units 2 Bed 1 Bath $840 $0.94 $911 $1.04 $987 $1.10 Status/Type M A S ST Total 2 Bed 2 Bath $939 $1.01 $1,051 $1.09 $1,071 $1.06 Completed 2,861 0 150 0 3,011 MARKET SENIOR Under Construction 383 0 0 0 383 M 4,251 Units S 150 Units 3 Bed 2 Bath $1,064 $0.91 $1,158 $1.00 $1,221 $0.97 Potential Start 1,007 0 0 0 1,007 A AFFORDABLE ST STUDENT Overall $864 $1.00 $933 $1.08 $1,005 $1.11 Total 4,251 0 150 0 4,401 0 Units 0 Units Source: CBRE, Inc. Source: Western States Multifamily. Maps as of January 2018.

WEBER COUNTY WEBER COUNTY: MULTIFAMILY COMPLETED/PIPELINE, 2011-JANUARY 2018

OVERALL VACANCY & RENT # NAME UNITS STATUS TYPE

2017 2016 10.0% $900 1 11 West Apartments 303 Potential Start M VACANCY (%) RENT ($) 9.0% 2 Aderra 114 Completed M VACANCY RATE VACANCY RATE $800 8.0% 3.2% 2.3% 3 Bouwhuis Apartments 216 Potential Start M 7.0% $700 4 Claradon Village 192 Completed M 6.0% RENTAL RATE RENTAL RATE 5 Claradon Village - Phase 2 108 Under Construction M 5.0% $600 $864 $810 6 Colonial Court 73 Completed M 4.0% $500 7 Garden City 61 Under Construction M 3.0% RENT GROWTH 2.0% 8 Harrison Boulevard 41 Under Construction ST $400 6 MONTH 12 MONTH 1.0% 9 Haven Cove Townhomes 156 Potential Start M

8.6% 6.6% 0.0% $300 10 Imagine Jefferson 59 Completed A 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: CBRE, Inc. 11 Imagine Jefferson - Phase 2 113 Under Construction A

CURRENT RENTAL & VACANCY RATES WEBER COUNTY NEWS HEADLINES 12 Lomond View 38 Under Construction A “ 13 Mountain View Townhomes 105 Completed M BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL UTAH BOEING PLANTS WILL BE PART OF GROUND BASED STRATEGIC

DETERRENT DEVELOPMENT PROGRAM 14 Mountain View Townhomes Ph 3 40 Under Construction M “Source: The Enterprise, September 4, 2017. CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 1 “ 15 One West 216 Under Construction M Studio $490 $0.89 $511 $1.30 $510 $1.28 AVIATION ADVISORY GROUP TO LOCATE GLOBAL HEADQUARTERS

IN OGDEN 16 Seasons on Skyline 208 Potential Start M

1 Bed 1 Bath $612 $0.87 $793 $1.03 $756 $1.00 “ Source: Utah Business, March 30, 2017. 2 “ 2 Bed 1 Bath $746 $0.79 $836 $0.91 $820 $0.89 17 Station at Pleasant View 144 Completed A DUE NORTH: WEBER AND DAVIS COUNTIES ARE SEIZING ECONOMIC 2 Bed 2 Bath $821 $0.77 $1,015 $0.94 $992 $0.92 “OPPORTUNITIES 18 Station at Pleasant View - Phase 3 128 Potential Start A Source: Utah Business, July 3, 2017. 3 Bed 2 Bath $1,283 $0.84 $1,143 $0.87 $1,175 $0.86 3 19 Station Square 31 Under Construction A Overall $818 $0.82 2.8% $885 $0.94 3.3% $864 $0.90 3.2% 20 The Cove at Pleasant View 88 Completed M Source: CBRE, Inc. TOWER VIEW 21 The Ranches 79 Under Construction M

HISTORICAL RENTAL & VACANCY RATES 22 The View on 20th 147 Completed M

BY YEAR 2015 2016 2017 20 Tower View Apartments 144 Under Construction M

CATEGORY RENT $/SF RENT $/SF RENT $/SF 21 View at the Junction 40 Completed M

Studio $464 $1.20 $496 $1.30 $510 $1.28 22 Village at Prominence Point 339 Potential Start M

1 Bed 1 Bath $690 $0.89 $726 $0.99 $756 $1.00 3,183 Total Units

2 Bed 1 Bath $729 $0.78 $748 $0.81 $820 $0.89 Status/Type M A S ST Total 2 Bed 2 Bath $898 $0.78 $970 $0.88 $992 $0.92 Completed 759 203 0 0 962 MARKET SENIOR Under Construction 648 182 0 41 871 M 2,629 Units S 0 Units 3 Bed 2 Bath $973 $0.72 $1,048 $0.78 $1,175 $0.86 Potential Start 1,222 128 0 0 1350 A AFFORDABLE ST STUDENT Overall $754 $0.80 $810 $0.86 $864 $0.90 Total 2,629 513 0 41 3,183 513 Units 41 Units Source: CBRE, Inc. Source: Western States Multifamily. Maps as of January 2018.

MARKET ECONOMIC SUMMARY DEBT MARKETS

Moving into 2018, the greater Salt Lake economy looks much as it did a UTAH JOB SECTORS BY SIZE (SHARE OF TOTAL EMPLOYMENT) 2017 was yet another record year for multifamily finance volume, with just under $300 billion in total origination activity across all lender year ago—coming off a year of exceptional growth and advancing into a types. Volume for 2018 is expected to remain extremely robust, despite increasing interest rates, with many industry experts projecting total TRADE, TRANSPORTATION more complex, cyclically mature market. Yet, indicators suggest additional & UTILITIES 18.9% originations to surpass $300 billion. room to run. This prolonged economic expansion (soon to be the GOVERNMENT 16.5% second-longest in U.S. history) has been enabled in part by strengthening PROFESSIONAL & CURRENT LENDING PARAMETERS ESTIMATED MULTIFAMILY FINANCE VOLUME BY LENDER TYPE (BILLIONS) BUSINESS SERVICES 14.3% demographics. In Utah, a population growth of 1.9% in 2017 was the EDUCATION & HEALTH 13.4% $400 MAX 10-YR third-fastest in the nation, allowing local job growth to continue above LENDER TYPE AMORTIZATION TERM RECOURSE Other CMBS Fannie Mae Freddie Mac Life Insurers HOSPITALITY & LEISURE 9.9% LTV PRICING national and historic averages, despite low unemployment. $350 MANUFACTURING 8.8% $295 $305 Fannie Mae 75-80% 30 years & interest only 5-12 yrs; 30/30 4.50 - 4.75% No $300 Still, several headwinds add risk to the local forecast, leading to CONSTRUCTION $269 6.6% $250 decelerated (though still positive) growth. A tightening labor pool is FINANCIAL ACTIVITIES 5.8% Freddie Mac 75-80% 30 years & interest only 5-10 yrs; 30/30 4.50 - 4.75% No $250 a rising concern, though strengthening local net migration should OTHER SERVICES $191 2.8% HUD 80-85% 35 years 35/35 4.00 - 4.50% No $200 $164 satisfy most of the demand. Protectionist trade policy poses a INFORMATION 2.5% Banks 70-75% 25-30 years 5-10 yrs 4.75 - 5.25% Yes $150 nationwide risk, increasing the cost of raw materials—particularly MINING 0.6% steel—and contributing to construction price inflation. Credit Unions 70-75% 25 years 5-10 yrs 4.75 - 5.25% Yes $100 Source: Kem C. Gardner Policy Institute’s 2018 Economic Report to the Governor. Due to these evolving conditions, economic performance will be a Life Companies 65-70% 25-30 years 5-10 yrs; 25/25 4.25 - 4.50% No $50 dynamic story across the nation through 2018, finding momentum POPULATION & MEDIAN HOME PRICE BY COUNTY CMBS 70-75% 30 years & interest only 5-10 yrs 4.75 - 5.00% No $0 from fiscal stimulus amid any cyclical strain. But overall, the 2013 2014 2015 2016 2017 2018 PROJECTED demographic drivers of economic growth in Utah will remain in Source: CBRE, Inc. Source: Fannie Mae and Freddie Mac 10-Ks, American Council of Life Insurers (ACLI), FDIC, Trepp, Mortgage Bankers Association & Fannie Mae Multifamily Economic Research Group. place, helping the broader Salt Lake area retain a position of relative strength and continue growing healthily through 2018 and beyond. WEBER COUNTY POPULATION: 248,839 1% THE CBRE DIFFERENCE ECONOMIC DRIVERS OF DEMAND MEDIAN HOME PRICE: $225,000 Nationally, CBRE’s multifamily investment sales totaled $25.6 billion in 2017, with the nearest competitor closing less than half as much total sales volume. With 65 locations and over 300 multifamily professionals, including direct lending services, CBRE has an unparalleled multifamily platform which 3.1% 1.9% $65,311 DAVIS COUNTY provides clients with the greatest market exposure available. Coupled with a proven marketing process, CBRE yields the highest values for its clients. UTAH EMPLOYMENT UTAH POPULATION WASATCH FRONT POPULATION: 348,770 2% With the powerful resources of CBRE’s national multifamily platform, along with the most comprehensive local market research, CBRE Multifamily GROWTH GROWTH MEDIAN INCOME MEDIAN HOME PRICE: $285,000 in Salt Lake City is ready to help maximize the value of multifamily assets along the Wasatch Front.

2017 U.S. MULTIFAMILY INVESTMENT SALES VOLUME (BILLIONS) COMPONENTS OF POPULATION GROWTH – WASATCH FRONT (THOUSANDS) TOTAL SALES VOLUME (BILLIONS) POPULATION (THOUSANDS) SALT LAKE COUNTY $30.0 100 NATURAL INCREASE NET MIGRATION ABSOLUTE GROWTH POPULATION: 1,128,283 1% $25.0 MEDIAN HOME PRICE: $330,000 $28.8

80 $25.6 $20.0 $24.7

60 $15.0 $10.0 40 UTAH COUNTY $5.0 POPULATION: 617,735 4% 20 MEDIAN HOME PRICE: $312,000 $0.0 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 0 CBRE NEWMARK GRUBB MARCUS & MILLICHAP HFF CUSHMAN & WAKEFIELD BERKADIA JLL EASTDIL SECURED 2014 2015 2016 2017 2018* 2019* 2020* Source: Population Estimates, Kem C. Gardner Policy Institute July 2017, Utah’s Long-Term Demographic and Economic KNIGHT FRANK Source: Kem C. Gardner Policy Institute, July 2017. *Projected Projections Summary; Median Home Prices, Wasatch Front Multiple Listing Service. Source: Real Capital Analytics. *Volume includes all properties that are 10 units and up or valued at over $1 million.

PATRICK BODNAR ELI MILLS DOUG BIRRELL Senior Associate Senior Vice President First Vice President Capital Markets Capital Markets Debt & Structured Finance +1 801 869 8053 +1 801 869 8029 +1 801 869 8029 [email protected] [email protected] [email protected]

CBRE MULTIFAMILY

TOP FIRM SINCE 2001 $25.6B+ 300+ PROFESSIONALS #1 FREDDIE MAC $24.0B+ U.S. MULTIFAMILY MULTIFAMILY SALES U.S. MULTIFAMILY SELLER/SERVICER LOAN (PER RCA) TRANSACTIONS IN 2017 2009-2016 ORIGINATIONS

SEATTLE • PORTLAND • SACRAMENTO • OAKLAND • SAN FRANCISCO • WALNUT CREEK • SAN JOSE • VENTURA COUNTY LOS ANGELES • BEVERLY HILLS • ONTARIO • ANAHEIM • SOUTH BAY • NEWPORT BEACH • SAN DIEGO • TUCSON PHOENIX • LAS VEGAS • RENO • SALT LAKE CITY • DENVER • ALBUQUERQUE • SAN ANTONIO • AUSTIN • HOUSTON DALLAS • OKLAHOMA CITY • TULSA • KANSAS CITY • FAYETTEVILLE • ST. LOUIS • DES MOINES • MINNEAPOLIS MILWAUKEE • CHICAGO • INDIANAPOLIS • NASHVILLE • TOLEDO • LANSING • GRAND RAPIDS • DETROIT • CLEVELAND COLUMBUS • CINCINNATI • ATLANTA • JACKSONVILLE • ORLANDO • TAMPA • NAPLES • MIAMI • FT. LAUDERDALE WEST PALM BEACH • CHARLESTON • COLUMBIA • GREENVILLE • CHARLOTTE • GREENSBORO • RALEIGH • NORFOLK RICHMOND • MCLEAN • WASHINGTON DC • BALTIMORE • PITTSBURGH • PHILADELPHIA • SADDLE BROOK NEW YORK CITY • BUFFALO • STAMFORD • HARTFORD • BOSTON

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