1187 W Wilson St Green Meadows Apartments 150 Unit Apartment Building Batavia, Illinois - Fox River Valley Neighborhood

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Underwriting Report 1187 W Wilson St Green Meadows Apartments 150 Unit Apartment Building Batavia, Illinois - Fox River Valley Neighborhood

PREPARED BY

Robert Petrich 1187 W Wilson St - Green Meadows Apartments

SUBJECT PROPERTY

Property Details 2

RENT COMPS

Map & List 7 Photo Comparison 9 Rent Comps Details 11 Unit Mix Summary 30 Ranking Chart By Bedroom 31 Changes in Rent Comps 34 Rent Trend Charts 37 Rent Trend Data 43

CONSTRUCTION

Overall Construction Map & Summary 45 Under Construction Map & List 46 Under Construction Details 48 Deliveries Past 12 Months Map & List 49 Delivered Property Details 51 Construction Summary 54

SALE COMPS

Map & List 60 Sale Comp Details 62

Sales Volume 66 Sales Pricing 67

Cap Rates 69 Top Buyers & Sellers 70

DEMOGRAPHICS

Overview 73 Age & Education 74 Ethnicity 75

SUBMARKET OVERVIEW

Fox River Valley Overview 76

MARKET OVERVIEW

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate 708-917-3333 1187 W Wilson St - Green Meadows Apartments

Chicago Overview 95

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate 708-917-3333 Subject Property

1187 W Wilson St - Green Meadows Apartments Batavia, Illinois - Fox River Valley Neighborhood

PROPERTY PROPERTY MANAGER No. of Units: 150 Napro Management LTD - Green Meadows A… Stories: 2 (630) 879-8300 Avg. Unit Size: 849 SF Type: Apartments - All Rent Type: Market OWNER Year Built: 1978 Nancy Protter Parking: 225 Spaces; 1.5 per Unit Purchased Feb 2004 Distance to Transit: - $11,800,000 ($78,667/Unit)

ASKING RENTS PER UNIT/SF VACANCY 12 MONTH NET ABSORPTION Current: $1,107 $1.30 /SF Current: 2.0% 3 Units Current: 1 Unit Last Quarter: $1,107 $1.30 /SF Last Quarter: 2.0% 3 Units Competitor Total: (4) Units Year Ago: $1,080 $1.27 /SF Year Ago: 2.7% 4 Units Competitor Avg: (0.2) Units Competitors: $1,092 $1.28 /SF Competitors: 5.9% 181 Units Submarket Total: (48) Units Submarket: $1,228 $1.30 /SF Submarket: 5.1% 201 Units Submarket Avg: (1.0) Units

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 703 68 45.3% 1 1.5% $951 $1.35 $951 $1.35 0.0% 2 1.5 915 60 40.0% 2 3.3% $1,150 $1.26 $1,150 $1.26 0.0% 3 1.5 1,120 22 14.7% 0 0.0% $1,476 $1.32 $1,476 $1.32 0.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 703 68 45.3% 1 1.5% $951 $1.35 $951 $1.35 0.0% All 2 Beds 915 60 40.0% 2 3.3% $1,150 $1.26 $1,150 $1.26 0.0% All 3 Beds 1,120 22 14.7% 0 0.0% $1,476 $1.32 $1,476 $1.32 0.0% Totals 849 150 100% 3 2.0% $1,107 $1.30 $1,107 $1.30 0.0% Estimate Updated May 15, 2017

SITE AMENITIES Clubhouse Laundry Facilities Maintenance on site Playground Pool Property Manager on Site Storage Space Sundeck Tennis Court

UNIT AMENITIES Air Conditioning Cable Ready Carpet Ceiling Fans Dining Room Dishwasher Disposal Heating High Speed Internet Access Kitchen Range Tub/Shower Walk-In Closets Washer/Dryer Washer/Dryer Hookup

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RECURRING EXPENSES Dog Rent $15 Cat Rent $0 Free Water, Trash Removal, …

ONE TIME EXPENSES Dog Fee $400 Cat Fee $400 Application Fee $50

PET POLICY Cats Allowed - $0/Mo, 2 Maximum, Maximum Weight 20 lb, One-Time Fee: $400 Restrictions: 400 fee per pet. Dogs Allowed - $15/Mo, 1 Maximum, Maximum Weight 17 lb, One-Time Fee: $400 Restrictions: $400 fee per pet.

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Primary Buiding

Buiding Buiding

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Interior Interior

Interior Buiding

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 5 708-917-3333 Rent Comparables 1187 W Wilson St Green Meadows Apartments 150 Unit Apartment Building Batavia, Illinois - Fox River Valley Neighborhood

PREPARED BY

Robert Petrich Rent Comparables Summary 1187 W Wilson St - Green Meadows Apartments

No. Rent Comps Avg. Rent Per Unit Avg. Rent Per SF Avg. Vacancy Rate 17 $1,092 $1.28 5.9% RENT COMPS LOCATIONS

RENT COMPS SUMMARY STATISTICS

Unit Breakdown Low Average Median High Total Units 31 179 208 336 Studio Units 0 2 0 33 One Bedroom Units 0 76 46 224 Two Bedroom Units 16 86 84 200 Three Bedroom Units 0 15 0 124

Property Attributes Low Average Median High Year Built 1964 1980 1975 2017 Number of Floors 2 3 2 11 Average Unit Size 612 SF 853 SF 876 SF 1,040 SF Vacancy Rate 0.9% 5.9% 5.9% 46.7%

Star Rating 2.9

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Property Size Asking Rent Per Month Per Unit

Property Name/Address Rating Yr Built Units Avg Unit SF Studio 1 Bed 2 Bed 3 Bed Rent/SF Lake View Residences 1 - 1972 97 612 $900 $1,000 $1,400 - $1.73 1037 Howell Pl Park Shore Apartments 2 - 1964 160 767 - $1,084 $1,244 $1,549 $1.59 1000-1100 Geneva Rd Springs at Orchard Road … 3 - 2017 60 947 $1,191 $1,365 $1,727 $1,849 $1.59 1801 Oak St The Village at Mill Creek 4 - - 31 941 $890 $1,260 $1,638 - $1.53 39W250 Herrington Blvd Prairie Pointe Apartments 5 - 1972 228 843 - $1,070 $1,257 - $1.46 1820 Wessel Ct Butterfield Oaks 6 - 2001 336 877 - $1,167 $1,427 - $1.44 2288 Oakmeadow Dr Ashford St Charles 7 - 1988 208 933 - $1,260 $1,326 - $1.40 1690 Covington Ct Autumn Run Apartments 8 - 1986 320 767 - $967 $1,275 - $1.38 1627 Country Lakes Dr Green Meadows Apartments - 1978 150 848 - $951 $1,150 $1,476 $1.30 1187 W Wilson St Charleston Park Apartments 9 - 1974 71 984 - $946 $1,470 $1,642 $1.30 1815-1821 Howard St Courtyards Village West 10 - 1975 216 753 - $915 $1,095 - $1.28 844 Staghorn Ln Fox Run 11 - 1973 220 876 - $975 $1,276 $1,362 $1.21 145 Walnut Dr Lorlyn of Batavia 12 - 1975 253 798 - $849 $968 - $1.17 1034 Lorlyn Cir St. Charles Place Apartme… 13 - 1975 126 834 - $861 $990 - $1.14 201 N 15th St Butterfield Trails Apartments 14 - 1969 96 702 - $736 $822 - $1.11 102 Laurel Dr Stone Crossing Apartments 15 - 1970 240 909 - $781 $1,002 $1,240 $1.10 1240 Nantucket Rd Fox Pointe Apartments 16 - 2000 248 1,039 - - $978 $1,087 $0.99 2074 Fox Pointe Cir Colony West Apartments 17 - 1975 132 944 - $760 $860 $1,072 $0.90 685 Laurel Dr

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1 Lake View Residences 2 Park Shore Apartments 3 Springs at Orchard Road 1037 Howell Pl 1000-1100 Geneva Rd 1801 Oak St 97 Units / 11 Stories 160 Units / 3 Stories 60 Units / 2 Stories Rent/SF $1.73, Vacancy 7.2% Rent/SF $1.59, Vacancy 7.5% Rent/SF $1.59, Vacancy 46.7% Owner: Margaret McSheehey Owner: Steadfast Capital Markets G… Owner: Continental Properties Com…

4 The Village at Mill Creek 5 Prairie Pointe Apartments 6 Butterfield Oaks 39W250 Herrington Blvd 1820 Wessel Ct 2288 Oakmeadow Dr 31 Units / 3 Stories 228 Units / 3 Stories 336 Units / 2 Stories Rent/SF $1.53, Vacancy 12.9% Rent/SF $1.46, Vacancy 2.2% Rent/SF $1.44, Vacancy 12.5% Owner: ShoDeen Group, LLC Owner: Axiom Properties Owner: RMK Management

Subject Property

7 Ashford St Charles 8 Autumn Run Apartments Green Meadows 1690 Covington Ct 1627 Country Lakes Dr 1187 W Wilson St 208 Units / 2 Stories 320 Units / 2 Stories 150 Units / 2 Stories Rent/SF $1.40, Vacancy 6.3% Rent/SF $1.38, Vacancy 3.1% Rent/SF $1.30, Vacancy 2.0% Owner: The RADCO Companies Owner: - Owner: Nancy Protter

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9 Charleston Park 10 Courtyards Village West 11 Fox Run 1815-1821 Howard St 844 Staghorn Ln 145 Walnut Dr 71 Units / 2 Stories 216 Units / 3 Stories 220 Units / 4 Stories Rent/SF $1.30, Vacancy 5.6% Rent/SF $1.28, Vacancy 0.9% Rent/SF $1.21, Vacancy 2.3% Owner: Napro Management LTD Owner: Prairie Management & Deve… Owner: Windy City RE

12 Lorlyn of Batavia 13 St. Charles Place 14 Butterfield Trails 1034 Lorlyn Cir 201 N 15th St 102 Laurel Dr 253 Units / 3 Stories 126 Units / 2 Stories 96 Units / 2 Stories Rent/SF $1.17, Vacancy 2.0% Rent/SF $1.14, Vacancy 11.9% Rent/SF $1.11, Vacancy 6.3% Owner: Austin Highland - Briargate … Owner: St Charles Place Properties … Owner: Anthony Konopacki

15 Stone Crossing 16 Fox Pointe Apartments 17 Colony West Apartments 1240 Nantucket Rd 2074 Fox Pointe Cir 685 Laurel Dr 240 Units / 2 Stories 248 Units / 2 Stories 132 Units / 3 Stories Rent/SF $1.10, Vacancy 7.5% Rent/SF $0.99, Vacancy 1.6% Rent/SF $0.90, Vacancy 0.8% Owner: The Ferndale Property Man… Owner: New Directions Housing Cor… Owner: Globe Management Inc

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1 1037 Howell Pl - Lake View Residences Aurora, Illinois - Southeast Aurora Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 97 Units, 11 Floors Pinnacle - Lakeview Apartments Avg. Unit Size: 612 SF (630) 246-4843 Year Built: 1972 Type: Apartments - All OWNER Rent Type: Market Purchased Nov 2011 Parking: 110 Spaces; 1.1 per Unit $5,200,000 ($54,167/Unit) Distance to Subject: 8.1 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions Studio 1 500 33 34.0% 1 3.0% $900 $1.80 $895 $1.79 0.5% 1 1 610 42 43.3% 2 4.8% $1,000 $1.64 $991 $1.63 0.9% 2 1 785 22 22.7% 2 9.1% $1,400 $1.78 $1,386 $1.77 1.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All Studios 500 33 34.0% 1 3.0% $900 $1.80 $895 $1.79 0.5% All 1 Beds 610 42 43.3% 2 4.8% $1,000 $1.64 $991 $1.63 0.9% All 2 Beds 785 22 22.7% 2 9.1% $1,400 $1.78 $1,386 $1.77 1.0% Totals 612 97 100% 5 5.2% $1,057 $1.73 $1,048 $1.71 0.8% Estimate Updated May 05, 2017

SITE AMENITIES Fitness Center, Picnic Area, Tennis Court, Volleyball Court, Walking/Biking Trails

UNIT AMENITIES Air Conditioning, Balcony, Cable Ready, Disposal, Heating, Kitchen, Views

RECURRING EXPENSES Dog Rent $60 Assigned Surface Lot Parking… Unassigned Garage Parking … Unassigned Surface Lot Parki…

ONE TIME EXPENSES Admin Fee $299 Application Fee $60

PET POLICY Dogs Allowed - $60/Mo, 2 Maximum, Maximum Weight 75 lb Restrictions: Breed Restrictions

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2 1000-1100 Geneva Rd - Park Shore Apartments Saint Charles, Illinois - Fox River Valley Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 160 Units, 3 Floors Steadfast - Park Shore Avg. Unit Size: 768 SF (630) 584-1500 Year Built: 1964 Type: Apartments - All OWNER Rent Type: Market Purchased Sep 2014 Parking: 200 Spaces; 1.3 per Unit $18,350,000 ($114,688/Unit) Distance to Subject: 3.8 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 650 68 42.5% 3 4.4% $1,084 $1.67 $1,084 $1.67 0.0% 2 1 750 68 42.5% 3 4.4% $1,244 $1.66 $1,244 $1.66 0.0% 3 1.5 1,150 24 15.0% 1 4.2% $1,549 $1.35 $1,549 $1.35 0.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 650 68 42.5% 3 4.4% $1,084 $1.67 $1,084 $1.67 0.0% All 2 Beds 750 68 42.5% 3 4.4% $1,244 $1.66 $1,244 $1.66 0.0% All 3 Beds 1,150 24 15.0% 1 4.2% $1,549 $1.35 $1,549 $1.35 0.0% Totals 768 160 100% 7 4.4% $1,222 $1.59 $1,222 $1.59 0.0% Estimate Updated May 18, 2017

SITE AMENITIES Laundry Facilities, Package Service, Pool, Sundeck

UNIT AMENITIES Air Conditioning, Cable Ready, Ceiling Fans, Dishwasher, Disposal, High Speed Internet Access, Views, Walk-In Closets, Washer/Dryer, Window Coverings

RECURRING EXPENSES Dog Rent $35 Cat Rent $35

ONE TIME EXPENSES Dog Fee $350 Cat Fee $350 Admin Fee $150 Application Fee $60

PET POLICY Cats Allowed - $35/Mo, 2 Maximum, Maximum Weight 35 lb, One-Time Fee: $350 Restrictions: Breed Restriction Apply Dogs Allowed - $35/Mo, 2 Maximum, Maximum Weight 35 lb, One-Time Fee: $350 Restrictions: Breed Restriction Apply

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3 1801 Oak St - Springs at Orchard Road Apartments North Aurora, Illinois - North Aurora Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 60 Units, 2 Floors Continental - Springs at Orchard Road Avg. Unit Size: 947 SF (630) 448-4089 Year Built: Mar 2017 Type: Apartments - All OWNER Rent Type: Market - Parking: - Distance to Subject: 3.7 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions Studio 1 623 6 10.0% 6 100% $1,191 $1.91 $1,191 $1.91 0.0% 1 1 760 12 20.0% 12 100% $1,430 $1.88 $1,413 $1.86 1.2% 1 1 816 6 10.0% 6 100% $1,315 $1.61 $1,300 $1.59 1.2% 1 1 857 6 10.0% 6 100% $1,300 $1.52 $1,285 $1.50 1.2% 1 1 909 6 10.0% 6 100% $1,350 $1.49 $1,334 $1.47 1.2% 2 2 1,062 6 10.0% 6 100% $1,785 $1.68 $1,785 $1.68 0.0% 2 2 1,088 3 5.0% 3 100% $1,790 $1.65 $1,790 $1.65 0.0% 2 2 1,152 3 5.0% 3 100% $1,595 $1.38 $1,595 $1.38 0.0% 2 2 1,185 6 10.0% 6 100% $1,703 $1.44 $1,703 $1.44 0.0% 3 2 1,334 3 5.0% 3 100% $1,955 $1.47 $1,938 $1.45 0.9% 3 2 1,430 3 5.0% 3 100% $1,742 $1.22 $1,727 $1.21 0.9%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All Studios 623 6 10.0% 6 100% $1,191 $1.91 $1,191 $1.91 0.0% All 1 Beds 820 30 50.0% 30 100% $1,365 $1.66 $1,349 $1.64 1.2% All 2 Beds 1,122 18 30.0% 18 100% $1,727 $1.54 $1,727 $1.54 0.0% All 3 Beds 1,382 6 10.0% 6 100% $1,849 $1.34 $1,832 $1.33 0.9% Totals 947 60 100% 60 100% $1,504 $1.59 $1,495 $1.58 0.6% Estimate Updated May 24, 2017

SITE AMENITIES Clubhouse, Coffee Bar, Fitness Center, Furnished Units Available, Gated, Pet Play Area, Pet Washing Station, Pool, Property Manager on Site, Sundeck

UNIT AMENITIES Air Conditioning, Ceiling Fans, Heating, Island Kitchen, Walk-In Closets, Washer/Dryer

RECURRING EXPENSES Dog Rent $20 Cat Rent $20

ONE TIME EXPENSES Admin Fee $200 Application Fee $60

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PET POLICY Cats Allowed - $20/Mo, 2 Maximum Restrictions: We welcome up to 2 pets per household. Some breed restrictions apply. No weight restrictions. We accept dogs and cats. There is a $40 poo prints fee for dogs only. There is also a $300 pet fee and a $20 pet rent. Please call our leasing office for more details. Dogs Allowed - $20/Mo, 2 Maximum Restrictions: We welcome up to 2 pets per household. Some breed restrictions apply. No weight restrictions. We accept dogs and cats. There is a $40 poo prints fee for dogs only. There is also a $300 pet fee and a $20 pet rent. Please call our leasing office for more details.

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4 39W250 Herrington Blvd - The Village at Mill Creek Geneva, Illinois - Western Kane County Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 31 Units, 3 Floors Shodeen - The Village at Mill Creek Avg. Unit Size: 942 SF (630) 232-8882 Year Built: - Type: Apartments - All OWNER Rent Type: Market - Parking: 50 Spaces; 1.6 per Unit Distance to Subject: 3.1 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions Studio 1 500 1 3.2% 0 0.0% $890 $1.78 $887 $1.77 0.3% 1 1 642 2 6.5% 0 0.0% $1,135 $1.77 $1,126 $1.75 0.8% 1 1 650 4 12.9% 2 50.0% $1,155 $1.78 $1,146 $1.76 0.8% 1 1 835 2 6.5% 1 50.0% $1,390 $1.66 $1,379 $1.65 0.8% 1 1 869 2 6.5% 0 0.0% $1,315 $1.51 $1,305 $1.50 0.8% 1 1 880 2 6.5% 0 0.0% $1,280 $1.45 $1,270 $1.44 0.8% 1 1 975 2 6.5% 0 0.0% $1,390 $1.43 $1,379 $1.41 0.8% 2 1 896 2 6.5% 0 0.0% $1,410 $1.57 $1,396 $1.56 1.0% 2 1 992 2 6.5% 0 0.0% $1,550 $1.56 $1,535 $1.55 1.0% 2 2 1,066 2 6.5% 0 0.0% $1,580 $1.48 $1,564 $1.47 1.0% 2 2 1,071 2 6.5% 0 0.0% $1,599 $1.49 $1,583 $1.48 1.0% 2 2 1,148 4 12.9% 2 50.0% $1,732 $1.51 $1,715 $1.49 1.0% 2 2 1,247 2 6.5% 0 0.0% $1,800 $1.44 $1,782 $1.43 1.0% 2 2 1,276 2 6.5% 2 100% $1,700 $1.33 $1,683 $1.32 1.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All Studios 500 1 3.2% 0 0.0% $890 $1.78 $887 $1.77 0.3% All 1 Beds 786 14 45.2% 3 21.4% $1,260 $1.60 $1,250 $1.59 0.8% All 2 Beds 1,106 16 51.6% 4 25.0% $1,638 $1.48 $1,621 $1.47 1.0% Totals 942 31 100% 7 22.6% $1,443 $1.53 $1,430 $1.52 0.9% Estimate Updated May 25, 2017

SITE AMENITIES Basketball Court, Controlled Access, Elevator, Fitness Center, Free Weights, Laundry Facilities, Package Service, Pool, Property Manager on Site, Tennis Court

UNIT AMENITIES Air Conditioning, Cable Ready, Carpet, Ceiling Fans, Dining Room, Dishwasher, Disposal, Heating, High Speed Internet Access, Kitchen, Microwave, Range, Tile Floors, Tub/Shower, Walk-In Closets, Washer/Dryer, Washer/Dryer Hookup, Window Coverings

RECURRING EXPENSES Dog Rent $0 Cat Rent $0 Free Trash Removal

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ONE TIME EXPENSES Dog Fee $250 Cat Fee $250 Admin Fee $150 Application Fee $45

PET POLICY Cats Allowed - $0 Deposit, $0/Mo, Declaw Required, Pet Interview Required, Neutering Required, 2 Maximum, One-Time Fee: $250 Restrictions: Limit two pets with a combined weight not to exceed 100 pounds. Breed restrictions apply. Dogs Allowed - $0 Deposit, $0/Mo, Declaw Required, Pet Interview Required, Neutering Required, 2 Maximum, Maximum Weight 100 lb, One- Time Fee: $250 Restrictions: Limit two pets with a combined weight not to exceed 100 pounds. Breed restrictions apply.

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5 1820 Wessel Ct - Prairie Pointe Apartments Saint Charles, Illinois - Fox River Valley Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 228 Units, 3 Floors Axiom - Wessel Court Apartments Avg. Unit Size: 844 SF (630) 584-8276 Year Built: 1972 Type: Apartments - All OWNER Rent Type: Market Purchased Jun 2015 Parking: 280 Spaces; 1.2 per Unit $20,800,000 ($91,228/Unit) Distance to Subject: 3.7 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 800 28 12.3% 4 14.3% $1,070 $1.34 $1,070 $1.34 0.0% 2 1 850 200 87.7% 6 3.0% $1,257 $1.48 $1,217 $1.43 3.2%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 800 28 12.3% 4 14.3% $1,070 $1.34 $1,070 $1.34 0.0% All 2 Beds 850 200 87.7% 6 3.0% $1,257 $1.48 $1,217 $1.43 3.2% Totals 844 228 100% 10 4.4% $1,234 $1.46 $1,199 $1.42 2.8% Estimate Updated May 23, 2017

SITE AMENITIES Breakfast/Coffee Concierge, Clubhouse, Fitness Center, Furnished Units Available, Maintenance on site, Package Service, Playground, Pool, Property Manager on Site, Recycling, Storage Space, Sundeck

UNIT AMENITIES Air Conditioning, Alarm, Cable Ready, Carpet, Ceiling Fans, Dining Room, Dishwasher, Disposal, Eat-in Kitchen, Heating, Kitchen, Range, Refrigerator, Tile Floors, Tub/Shower, Walk-In Closets, Washer/Dryer, Window Coverings

RECURRING EXPENSES Dog Rent $40 Cat Rent $25 Assigned Garage Parking $65 Unassigned Garage Parking … Free Gas, Water, Heat

ONE TIME EXPENSES Dog Fee $300 Cat Fee $300 Amenity Fee $250 Application Fee $35

PET POLICY Cats Allowed - $25/Mo, 2 Maximum, Maximum Weight 20 lb, One-Time Fee: $300 Dogs Allowed - $0 Deposit, $40/Mo, 2 Maximum, Maximum Weight 40 lb, One-Time Fee: $300 Restrictions: Breed restrictions apply.

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6 2288 Oakmeadow Dr - Butterfield Oaks Aurora, Illinois - Glen Ellyn to West Chicago Corridor Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 336 Units, 2 Floors RMK - Butterfield Oaks Avg. Unit Size: 878 SF (630) 499-9100 Year Built: 2001 Type: Apartments - All OWNER Rent Type: Market - Parking: - Distance to Subject: 4.4 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 703 74 22.0% 1 1.4% $1,099 $1.56 $1,041 $1.48 5.3% 1 1 781 32 9.5% 3 9.4% $1,236 $1.58 $1,171 $1.50 5.3% 1 1 801 74 22.0% 2 2.7% $1,129 $1.41 $1,069 $1.34 5.3% 1 1 867 32 9.5% 0 0.0% $1,342 $1.55 $1,271 $1.47 5.3% 2 2 957 20 6.0% 2 10.0% $1,349 $1.41 $1,336 $1.40 1.0% 2 2 1,027 42 12.5% 2 4.8% $1,439 $1.40 $1,425 $1.39 1.0% 2 2 1,058 20 6.0% 2 10.0% $1,349 $1.28 $1,336 $1.26 1.0% 2 2 1,130 42 12.5% 4 9.5% $1,489 $1.32 $1,474 $1.30 1.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 774 212 63.1% 6 2.8% $1,167 $1.51 $1,105 $1.43 5.3% All 2 Beds 1,056 124 36.9% 10 8.1% $1,427 $1.35 $1,413 $1.34 1.0% Totals 878 336 100% 16 4.8% $1,263 $1.44 $1,219 $1.39 3.5% Estimate Updated May 23, 2017

SITE AMENITIES Breakfast/Coffee Concierge, Business Center, Clubhouse, Controlled Access, Fitness Center, Free Weights, Grill, Laundry Facilities, Maintenance on site, Package Service, Pool, Property Manager on Site, Storage Space, Sundeck, Wi-Fi at Pool and Clubhouse

UNIT AMENITIES Air Conditioning, Cable Ready, Carpet, Dining Room, Dishwasher, Disposal, Fireplace, Heating, High Speed Internet Access, Ice Maker, Kitchen, Range, Tub/Shower, Views, Walk-In Closets, Washer/Dryer, Wi-Fi, Window Coverings

RECURRING EXPENSES Dog Rent $25 Cat Rent $25 Unassigned Garage Parking …

ONE TIME EXPENSES Dog Fee $300 Cat Fee $300 Admin Fee $175 Application Fee $65

PET POLICY Cats Allowed - $25/Mo, Declaw Required, Neutering Required, 1 Maximum, One-Time Fee: $300 Restrictions: Cats and Dogs welcome. $300.00 non-refundable fee per cat/dog plus $25.00 pet rent. Dogs Allowed - $25/Mo, Declaw Required, Neutering Required, 1 Maximum, One-Time Fee: $300 Restrictions: Cats and Dogs welcome. $300.00 non-refundable fee per cat/dog plus $25.00 pet rent.

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7 1690 Covington Ct - Ashford St Charles Saint Charles, Illinois - Fox River Valley Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 208 Units, 2 Floors RADCO - Ashford St. Charles Avg. Unit Size: 933 SF (630) 377-5900 Year Built: 1988 Renov 2015 Type: Apartments - All OWNER Rent Type: Market Purchased Jun 2013 Parking: 240 Spaces; 1.2 per Unit $19,250,000 ($92,548/Unit) Distance to Subject: 3.6 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 830 62 29.8% 1 1.6% $1,260 $1.52 $1,260 $1.52 0.0% 2 1 875 60 28.8% 2 3.3% $1,295 $1.48 $1,295 $1.48 0.0% 2 2 1,000 50 24.0% 2 4.0% $1,305 $1.31 $1,305 $1.31 0.0% 2 2 1,115 36 17.3% 2 5.6% $1,405 $1.26 $1,405 $1.26 0.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 830 62 29.8% 1 1.6% $1,260 $1.52 $1,260 $1.52 0.0% All 2 Beds 977 146 70.2% 6 4.1% $1,326 $1.36 $1,326 $1.36 0.0% Totals 933 208 100% 7 3.4% $1,306 $1.40 $1,306 $1.40 0.0% Estimate Updated May 25, 2017

SITE AMENITIES Business Center, Clubhouse, Coffee Bar, Fitness Center, Laundry Facilities, Maintenance on site, Package Service, Pool, Property Manager on Site, Sundeck

UNIT AMENITIES Air Conditioning, Balcony, Cable Ready, Carpet, Den, Dining Room, Dishwasher, Disposal, Eat-in Kitchen, Heating, High Speed Internet Access, Kitchen, Oven, Range, Tile Floors, Tub/Shower, Walk-In Closets, Washer/Dryer, Window Coverings

RECURRING EXPENSES Dog Rent $20

ONE TIME EXPENSES Dog Fee $250 Admin Fee $150 Application Fee $65

PET POLICY Cats Allowed - 2 Maximum Dogs Allowed - $0 Deposit, $20/Mo, 2 Maximum, One-Time Fee: $250 Restrictions: Call to ask about our breed restrictions.

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 19 708-917-3333 Rent Comparables 1187 W Wilson St - Green Meadows Apartments

8 1627 Country Lakes Dr - Autumn Run Apartments Naperville, Illinois - Country Lakes Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 320 Units, 2 Floors Sierra Realty & Management - Autumn Run … Avg. Unit Size: 768 SF (888) 247-5964 Year Built: 1986 Type: Apartments - All OWNER Rent Type: Market Purchased Oct 2009 Parking: 642 Spaces; 2.0 per Unit $24,745,000 ($77,328/Unit) Distance to Subject: 7.1 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 616 64 20.0% 2 3.1% $906 $1.47 $906 $1.47 0.0% 1 1 621 80 25.0% 3 3.8% $957 $1.54 $957 $1.54 0.0% 1 1 762 80 25.0% 3 3.8% $1,026 $1.35 $1,026 $1.35 0.0% 2 1 847 24 7.5% 1 4.2% $1,201 $1.42 $1,201 $1.42 0.0% 2 2 1,045 72 22.5% 2 2.8% $1,300 $1.24 $1,300 $1.24 0.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 670 224 70.0% 8 3.6% $967 $1.44 $967 $1.44 0.0% All 2 Beds 996 96 30.0% 3 3.1% $1,275 $1.28 $1,275 $1.28 0.0% Totals 768 320 100% 11 3.4% $1,059 $1.38 $1,059 $1.38 0.0% Estimate Updated May 17, 2017

SITE AMENITIES Business Center, Clubhouse, Corporate Suites, Fitness Center, Laundry Facilities, Maid Service, Maintenance on site, Pool, Racquetball Court

UNIT AMENITIES Air Conditioning, Cable Ready, Dishwasher, Disposal, Fireplace, Heating, Ice Maker, Microwave, Refrigerator, Walk-In Closets, Washer/Dryer

RECURRING EXPENSES Dog Rent $25 Cat Rent $25

ONE TIME EXPENSES Dog Deposit $300 Cat Deposit $300 Application Fee $35

PET POLICY Cats Allowed - $300 Deposit, $25/Mo, 2 Maximum, One-Time Fee: $0 Restrictions: We are extremely pet friendly! Give us a call for details. Dogs Allowed - $300 Deposit, $25/Mo, Pet Interview Required, 2 Maximum, One-Time Fee: $0 Restrictions: We are extremely pet friendly! Give us a call for details.

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 20 708-917-3333 Rent Comparables 1187 W Wilson St - Green Meadows Apartments

9 1815-1821 Howard St - Charleston Park Apartments Saint Charles, Illinois - Fox River Valley Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 71 Units, 2 Floors Protter - Charleston Park Avg. Unit Size: 985 SF (630) 513-6110 Year Built: 1974 Type: Apartments - All OWNER Rent Type: Market Purchased Jan 2014 Parking: 117 Spaces; 1.6 per Unit $5,625,000 ($79,225/Unit) Distance to Subject: 3.8 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 514 15 21.1% 1 6.7% $931 $1.81 $926 $1.80 0.5% 1 1 680 16 22.5% 1 6.3% $961 $1.41 $955 $1.40 0.5% 2 1 746 4 5.6% 0 0.0% $1,140 $1.53 $1,098 $1.47 3.7% 2 1 1,050 3 4.2% 0 0.0% $1,276 $1.22 $1,229 $1.17 3.7% 2 1 1,080 3 4.2% 0 0.0% $1,477 $1.37 $1,422 $1.32 3.7% 2 1 1,200 13 18.3% 1 7.7% $1,614 $1.35 $1,555 $1.30 3.7% 3 2 1,550 17 23.9% 1 5.9% $1,642 $1.06 $1,632 $1.05 0.6%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 600 31 43.7% 2 6.5% $946 $1.58 $941 $1.57 0.5% All 2 Beds 1,086 23 32.4% 1 4.4% $1,470 $1.35 $1,416 $1.30 3.7% All 3 Beds 1,550 17 23.9% 1 5.9% $1,642 $1.06 $1,632 $1.05 0.6% Totals 985 71 100% 4 5.6% $1,282 $1.30 $1,260 $1.28 1.7% Estimate Updated May 19, 2017

SITE AMENITIES Laundry Facilities, Laundry Service, Playground, Property Manager on Site

UNIT AMENITIES Air Conditioning, Cable Ready, Ceiling Fans, Dishwasher, Disposal, Heating, High Speed Internet Access, Microwave, Refrigerator, Storage Units, Vaulted Ceiling, Walk-In Closets, Washer/Dryer

RECURRING EXPENSES Free Gas, Water, Sewer

ONE TIME EXPENSES Cat Fee $400

PET POLICY Cats Allowed - 2 Maximum, One-Time Fee: $400

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10 844 Staghorn Ln - Courtyards Village West North Aurora, Illinois - North Aurora Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 216 Units, 3 Floors Prairie - Courtyards Village West Avg. Unit Size: 753 SF (630) 859-1810 Year Built: 1975 Type: Apartments - All OWNER Rent Type: Market - Parking: 246 Spaces; 1.1 per Unit Distance to Subject: 3.4 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 720 156 72.2% 2 1.3% $915 $1.27 $913 $1.27 0.3% 2 1 840 60 27.8% 2 3.3% $1,095 $1.30 $1,090 $1.30 0.5%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 720 156 72.2% 2 1.3% $915 $1.27 $913 $1.27 0.3% All 2 Beds 840 60 27.8% 2 3.3% $1,095 $1.30 $1,090 $1.30 0.5% Totals 753 216 100% 4 1.9% $965 $1.28 $962 $1.28 0.3% Estimate Updated May 15, 2017

SITE AMENITIES 24 Hour Availability, Business Center, Clubhouse, Fitness Center, Grill, Laundry Facilities, Picnic Area, Pool, Property Manager on Site

UNIT AMENITIES Air Conditioning, Balcony, Cable Ready, Ceiling Fans, Hardwood Floors, Heating, Kitchen, Range, Tub/Shower, Views, Walk-In Closets

RECURRING EXPENSES Free Water, Heat, Trash Rem…

ONE TIME EXPENSES Application Fee $50

PET POLICY Cats Allowed - 2 Maximum

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11 145 Walnut Dr - Fox Run Saint Charles, Illinois - Fox River Valley Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 220 Units, 4 Floors Windy City RE - Fox Run Avg. Unit Size: 876 SF (630) 584-8914 Year Built: 1973 Type: Apartments - All OWNER Rent Type: Market Purchased Apr 2015 Parking: 400 Spaces; 1.8 per Unit $17,400,000 ($79,091/Unit) Distance to Subject: 4.2 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 650 80 36.4% 1 1.3% $976 $1.50 $972 $1.50 0.4% 1 1.5 850 80 36.4% 4 5.0% $975 $1.15 $971 $1.14 0.4% 2 1.5 1,200 56 25.5% 2 3.6% $1,276 $1.06 $1,269 $1.06 0.5% 3 1.5 1,400 4 1.8% 0 0.0% $1,362 $0.97 $1,356 $0.97 0.4%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 750 160 72.7% 5 3.1% $975 $1.30 $972 $1.30 0.4% All 2 Beds 1,200 56 25.5% 2 3.6% $1,276 $1.06 $1,269 $1.06 0.5% All 3 Beds 1,400 4 1.8% 0 0.0% $1,362 $0.97 $1,356 $0.97 0.4% Totals 876 220 100% 7 3.2% $1,059 $1.21 $1,054 $1.20 0.4% Estimate Updated May 16, 2017

SITE AMENITIES Clubhouse, Elevator, Laundry Facilities, Laundry Service, Maintenance on site, Package Service, Pool, Property Manager on Site

UNIT AMENITIES Air Conditioning, Balcony, Cable Ready, Carpet, Ceiling Fans, Dishwasher, Heating, Island Kitchen, Kitchen, Lawn, Microwave, Patio, Range, Refrigerator, Tile Floors, Tub/Shower, Views, Walk-In Closets, Window Coverings

RECURRING EXPENSES Dog Rent $5 Cat Rent $0 Unassigned Surface Lot Parki… Free Water, Trash Removal, …

ONE TIME EXPENSES Dog Fee $250 Cat Fee $250 Application Fee $50

PET POLICY Cats Allowed - $0/Mo, Declaw Required, Neutering Required, 2 Maximum, Maximum Weight 30 lb, One-Time Fee: $250 Dogs Allowed - $5/Mo, 2 Maximum, Maximum Weight 65 lb, One-Time Fee: $250

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 23 708-917-3333 Rent Comparables 1187 W Wilson St - Green Meadows Apartments

12 1034 Lorlyn Cir - Lorlyn of Batavia Batavia, Illinois - Fox River Valley Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 253 Units, 3 Floors Austin Highland - Lorlyn of Batavia Avg. Unit Size: 799 SF (630) 879-7227 Year Built: 1975 Type: Apartments - All OWNER Rent Type: Market - Parking: 464 Spaces; 1.8 per Unit Distance to Subject: 0.3 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 615 11 4.3% 0 0.0% $786 $1.28 $782 $1.27 0.4% 1 1 700 66 26.1% 1 1.5% $860 $1.23 $857 $1.22 0.4% 2 1 775 66 26.1% 0 0.0% $915 $1.18 $912 $1.18 0.4% 2 1 840 44 17.4% 1 2.3% $975 $1.16 $971 $1.16 0.4% 2 1 925 66 26.1% 0 0.0% $1,016 $1.10 $1,012 $1.09 0.4%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 688 77 30.4% 1 1.3% $849 $1.23 $846 $1.23 0.4% All 2 Beds 848 176 69.6% 1 0.6% $968 $1.14 $964 $1.14 0.4% Totals 799 253 100% 2 0.8% $932 $1.17 $928 $1.16 0.4% Estimate Updated May 18, 2017

SITE AMENITIES Basketball Court, Fitness Center, Laundry Facilities, Maintenance on site, Pool, Sauna, Storage Space, Sundeck, Volleyball Court

UNIT AMENITIES Air Conditioning, Balcony, Cable Ready, Ceiling Fans, Heating, Kitchen, Oven, Range, Refrigerator, Walk-In Closets, Wheelchair Accessible (Rooms)

RECURRING EXPENSES Cat Rent $0 Free Gas, Water, Trash Rem…

ONE TIME EXPENSES Cat Deposit $400 Application Fee $45

PET POLICY Cats Allowed - $400 Deposit, $0/Mo, 1 Maximum, One-Time Fee: $0

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13 201 N 15th St - St. Charles Place Apartments Saint Charles, Illinois - Fox River Valley Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 126 Units, 2 Floors St. Charles Place Apartments Avg. Unit Size: 835 SF (630) 584-1773 Year Built: 1975 Type: Apartments - All OWNER Rent Type: Market Purchased Mar 2008 Parking: 90 Spaces; 0.7 per Unit $8,350,000 ($66,270/Unit) Distance to Subject: 4.4 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 725 34 27.0% 4 11.8% $861 $1.19 $852 $1.18 1.0% 2 1 875 92 73.0% 11 12.0% $990 $1.13 $980 $1.12 1.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 725 34 27.0% 4 11.8% $861 $1.19 $852 $1.18 1.0% All 2 Beds 875 92 73.0% 11 12.0% $990 $1.13 $980 $1.12 1.0% Totals 835 126 100% 15 11.9% $955 $1.14 $945 $1.13 1.0% Estimate Updated May 07, 2017

SITE AMENITIES Laundry Facilities, Pool

UNIT AMENITIES Air Conditioning, Cable Ready, Heating, Kitchen, Smoke Free

RECURRING EXPENSES Dog Rent $0 Cat Rent $0 Bird Rent $0 Fish Rent $0 Reptile Rent $0 Other Rent $0 Free Gas, Water, Heat

ONE TIME EXPENSES Application Fee $35

PET POLICY Birds Allowed - $0 Deposit, $0/Mo, One-Time Fee: $0 Cats Allowed - $0 Deposit, $0/Mo, One-Time Fee: $0 Dogs Allowed - $0 Deposit, $0/Mo, Maximum Weight 60 lb, One-Time Fee: $0 Fishes Allowed - $0 Deposit, $0/Mo, One-Time Fee: $0 Reptiles Allowed - $0 Deposit, $0/Mo, One-Time Fee: $0 Others Allowed - $0 Deposit, $0/Mo, One-Time Fee: $0

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14 102 Laurel Dr - Butterfield Trails Apartments North Aurora, Illinois - North Aurora Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 96 Units, 2 Floors Butterfield Trails Apartments Avg. Unit Size: 702 SF (630) 801-8585 Year Built: 1969 Type: Apartments - All OWNER Rent Type: Market Purchased Feb 2005 Parking: - $5,675,000 ($59,115/Unit) Distance to Subject: 2.9 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 650 46 47.9% 3 6.5% $736 $1.13 $730 $1.12 0.8% 2 1 750 50 52.1% 2 4.0% $822 $1.10 $817 $1.09 0.6%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 650 46 47.9% 3 6.5% $736 $1.13 $730 $1.12 0.8% All 2 Beds 750 50 52.1% 2 4.0% $822 $1.10 $817 $1.09 0.6% Totals 702 96 100% 5 5.2% $780 $1.11 $775 $1.10 0.7% Estimate Updated May 05, 2017

SITE AMENITIES Laundry Facilities

UNIT AMENITIES Heating, High Speed Internet Access, Kitchen, Oven, Refrigerator

RECURRING EXPENSES Free Water, Trash Removal, …

ONE TIME EXPENSES Application Fee $35

PET POLICY Cats Allowed - 1 Maximum Dogs Allowed - 1 Maximum, Maximum Weight 20 lb

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15 1240 Nantucket Rd - Stone Crossing Apartments Aurora, Illinois - North River Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 240 Units, 2 Floors Ferndale - Stone Crossing Avg. Unit Size: 910 SF (630) 859-0398 Year Built: 1970 Type: Apartments - All OWNER Rent Type: Market Purchased Dec 2012 Parking: 200 Spaces; 0.8 per Unit $14,915,000 ($57,810/Unit) Distance to Subject: 4.8 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 650 35 14.6% 3 8.6% $788 $1.21 $781 $1.20 0.8% 1 1 700 35 14.6% 3 8.6% $775 $1.11 $769 $1.10 0.8% 2 1 820 55 22.9% 4 7.3% $1,019 $1.24 $1,011 $1.23 0.8% 2 1 900 55 22.9% 4 7.3% $985 $1.09 $977 $1.09 0.8% 3 1 1,275 60 25.0% 5 8.3% $1,240 $0.97 $1,229 $0.96 0.8%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 675 70 29.2% 6 8.6% $781 $1.16 $775 $1.15 0.8% All 2 Beds 860 110 45.8% 8 7.3% $1,002 $1.17 $994 $1.16 0.8% All 3 Beds 1,275 60 25.0% 5 8.3% $1,240 $0.97 $1,229 $0.96 0.8% Totals 910 240 100% 19 7.9% $997 $1.10 $989 $1.09 0.8% Estimate Updated May 16, 2017

SITE AMENITIES 24 Hour Availability, Grill, Laundry Facilities, Maintenance on site, Picnic Area, Property Manager on Site, Storage Space

UNIT AMENITIES Air Conditioning, Dishwasher, Heating, Intercom, Oven, Patio, Range, Refrigerator, Yard

RECURRING EXPENSES Dog Rent $30 Cat Rent $20

ONE TIME EXPENSES Dog Fee $300 Cat Fee $300 Admin Fee $100 Application Fee $35

PET POLICY Cats Allowed - $20/Mo, 2 Maximum, One-Time Fee: $300 Dogs Allowed - $30/Mo, 2 Maximum, Maximum Weight 35 lb, One-Time Fee: $300

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16 2074 Fox Pointe Cir - Fox Pointe Apartments Aurora, Illinois - South Farnsworth Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 248 Units, 2 Floors CPMC - Fox Pointe Apartments Avg. Unit Size: 1,040 SF (630) 820-4878 Year Built: 2000 Type: Apartments - All OWNER Rent Type: Affordable - Parking: 300 Spaces; 1.2 per Unit Distance to Subject: 8.6 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 2 2 922 62 25.0% 2 3.2% $978 $1.06 $974 $1.06 0.4% 2 2 928 62 25.0% 1 1.6% $978 $1.05 $974 $1.05 0.4% 3 2 1,102 1 0.4% 0 0.0% $1,093 $0.99 $1,088 $0.99 0.5% 3 2 1,155 123 49.6% 1 0.8% $1,087 $0.94 $1,083 $0.94 0.4%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 2 Beds 925 124 50.0% 3 2.4% $978 $1.06 $974 $1.05 0.4% All 3 Beds 1,155 124 50.0% 1 0.8% $1,087 $0.94 $1,083 $0.94 0.4% Totals 1,040 248 100% 4 1.6% $1,033 $0.99 $1,029 $0.99 0.4% Estimate Updated May 25, 2017

RECURRING EXPENSES Dog Rent $0 Cat Rent $0 Free Trash Removal, Sewer

ONE TIME EXPENSES Dog Fee $300 Cat Fee $300

PET POLICY Cats Allowed - $0/Mo, 1 Maximum, One-Time Fee: $300 Restrictions: Breed & Weight Dogs Allowed - $0/Mo, 1 Maximum, One-Time Fee: $300 Restrictions: Breed & Weight

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17 685 Laurel Dr - Colony West Apartments Aurora, Illinois - Edgelawn Randall Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 132 Units, 3 Floors Globe Management - Colony West Apartments Avg. Unit Size: 945 SF (630) 892-3397 Year Built: Jun 1975 Type: Apartments - All OWNER Rent Type: Market - Parking: 116 Spaces; 0.9 per Unit Distance to Subject: 5.9 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 730 36 27.3% 0 0.0% $760 $1.04 $757 $1.04 0.4% 2 1 1,000 84 63.6% 2 2.4% $860 $0.86 $857 $0.86 0.3% 3 2 1,200 12 9.1% 0 0.0% $1,072 $0.89 $1,069 $0.89 0.2%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 730 36 27.3% 0 0.0% $760 $1.04 $757 $1.04 0.4% All 2 Beds 1,000 84 63.6% 2 2.4% $860 $0.86 $857 $0.86 0.3% All 3 Beds 1,200 12 9.1% 0 0.0% $1,072 $0.89 $1,069 $0.89 0.2% Totals 945 132 100% 2 1.5% $852 $0.90 $849 $0.90 0.3% Estimate Updated May 09, 2017

SITE AMENITIES Concierge, Maintenance on site, Package Service, Pool, Property Manager on Site, Storage Space, Sundeck

UNIT AMENITIES Air Conditioning, Cable Ready, Carpet, Ceiling Fans, Dining Room, Dishwasher, Disposal, Heating, Kitchen, Oven, Range, Tile Floors, Tub/Shower, Walk-In Closets, Window Coverings

RECURRING EXPENSES Free Gas, Trash Removal

ONE TIME EXPENSES Cat Deposit $200 Application Fee $25

PET POLICY Cats Allowed - $200 Deposit

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Studio Comps One Bed Comps Two Bed Comps Three Bed Comps $943 $996 $1,156 $1,229 Subject Subject Subject Subject - $951 $1,150 $1,476

Current Conditions in Rent Comps Studio 1 Bedroom 2 Bedroom 3 Bedroom Total Number of Units 40 1,290 1,465 247 Vacancy Rate 5.3% 6.3% 5.8% 5.0% Asking Rent Per Unit $943 $996 $1,156 $1,229 Asking Rent Per SF $1.82 $1.39 $1.26 $1.01 Effective Rents Per Unit $939 $983 $1,146 $1,224 Effective Rents Per SF $1.81 $1.37 $1.24 $1.00 Concessions 0.4% 1.3% 0.9% 0.5% Changes Past Year in Rent Comps Studio 1 Bedroom 2 Bedroom 3 Bedroom Year-Over-Year Effective Rent Growth 27.4% 0.6% 5.5% 7.2% Year-Over-Year Vacancy Rate Change 1.4% 2.5% 1.5% 1.7% 12 Month Net Absorption in Units 5 -5 -6 2

EXISTING UNITS VACANT UNITS

ASKING RENT PER UNIT PER MONTH 12 MONTH NET ABSORPTION IN UNITS

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Change in Rent

Property Name/Address Rating One Bedroom Rent Per Unit Rent/SF Quarter Year

Springs at Orchard Road Apart… $1,365 $1.66 -1.9% - 1801 Oak St $1,300 $1,429

Ashford St Charles $1,260 $1.52 2.4% -1.6% 1690 Covington Ct

The Village at Mill Creek $1,260 $1.60 0.1% 4.9% 39W250 Herrington Blvd $1,135 $1,390

Butterfield Oaks $1,167 $1.51 -2.8% -1.4% 2288 Oakmeadow Dr $1,099 $1,341

Park Shore Apartments $1,084 $1.67 0.0% -3.7% 1000-1100 Geneva Rd

Prairie Pointe Apartments $1,070 $1.34 0.0% 5.4% 1820 Wessel Ct $1,070

Lake View Residences $1,000 $1.64 0.1% 5.9% 1037 Howell Pl $999

Fox Run $975 $1.30 0.0% 0.2% 145 Walnut Dr $975

Autumn Run Apartments $967 $1.44 0.1% -2.7% 1627 Country Lakes Dr $905 $1,025

Green Meadows Apartments $951 $1.35 0.1% 1.1% 1187 W Wilson St $950

Charleston Park Apartments $946 $1.58 0.1% 2.0% 1815-1821 Howard St $931 $960

Courtyards Village West $915 $1.27 -4.7% 4.0% 844 Staghorn Ln

St. Charles Place Apartments $861 $1.19 0.2% 1.9% 201 N 15th St $860

Lorlyn of Batavia $849 $1.23 0.0% 3.1% 1034 Lorlyn Cir $785 $860

Stone Crossing Apartments $781 $1.16 0.0% 2.1% 1240 Nantucket Rd $775 $787

Colony West Apartments $760 $1.04 0.3% 1.0% 685 Laurel Dr $759

Butterfield Trails Apartments $736 $1.13 0.1% 2.7% 102 Laurel Dr $735 $0 $625 $1,250 $1,875 $2,500

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Change in Rent

Property Name/Address Rating Two Bedroom Rent Per Unit Rent/SF Quarter Year

Springs at Orchard Road Apart… $1,727 $1.54 7.4% - 1801 Oak St $1,595 $1,790

The Village at Mill Creek $1,638 $1.48 -0.4% 4.6% 39W250 Herrington Blvd $1,410 $1,800

Charleston Park Apartments $1,470 $1.35 0.1% 2.4% 1815-1821 Howard St $1,140 $1,614

Butterfield Oaks $1,427 $1.35 4.1% -3.0% 2288 Oakmeadow Dr $1,349 $1,489

Lake View Residences $1,400 $1.78 0.1% 19.2% 1037 Howell Pl $1,400

Ashford St Charles $1,326 $1.36 4.7% 6.3% 1690 Covington Ct $1,295 $1,405

Fox Run $1,276 $1.06 0.1% 2.1% 145 Walnut Dr $1,275

Autumn Run Apartments $1,275 $1.28 0.0% -3.2% 1627 Country Lakes Dr $1,200 $1,300

Prairie Pointe Apartments $1,257 $1.48 0.3% 6.3% 1820 Wessel Ct $1,256

Park Shore Apartments $1,244 $1.66 -6.8% -3.9% 1000-1100 Geneva Rd

Green Meadows Apartments $1,150 $1.26 0.0% 3.9% 1187 W Wilson St

Courtyards Village West $1,095 $1.30 -2.9% 2.3% 844 Staghorn Ln

Stone Crossing Apartments $1,002 $1.17 8.3% 14.5% 1240 Nantucket Rd $985 $1,018

St. Charles Place Apartments $990 $1.13 0.6% 4.8% 201 N 15th St $989

Fox Pointe Apartments $978 $1.06 3.2% 7.0% 2074 Fox Pointe Cir

Lorlyn of Batavia $968 $1.14 -2.0% 4.8% 1034 Lorlyn Cir $915 $1,016

Colony West Apartments $860 $0.86 1.1% -0.7% 685 Laurel Dr $859

Butterfield Trails Apartments $822 $1.10 0.2% -1.6% 102 Laurel Dr $821 $0 $750 $1,500 $2,250 $3,000

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 32 708-917-3333 Three Bedroom Rent Comparables 1187 W Wilson St - Green Meadows Apartments

Change in Rent

Property Name/Address Rating Three Bedroom Rent Per Unit Rent/SF Quarter Year

Springs at Orchard Road Apart… $1,849 $1.34 -0.1% - 1801 Oak St $1,742 $1,955

Charleston Park Apartments $1,642 $1.06 0.1% 2.0% 1815-1821 Howard St $1,641

Park Shore Apartments $1,549 $1.35 0.0% 9.5% 1000-1100 Geneva Rd

Green Meadows Apartments $1,476 $1.32 0.1% 2.5% 1187 W Wilson St $1,476

Fox Run $1,362 $0.97 0.1% 0.9% 145 Walnut Dr $1,361

Stone Crossing Apartments $1,240 $0.97 2.8% 10.2% 1240 Nantucket Rd $1,239

Fox Pointe Apartments $1,087 $0.94 1.5% 4.3% 2074 Fox Pointe Cir $1,087 $1,093

Colony West Apartments $1,072 $0.89 0.2% 0.7% 685 Laurel Dr $600 $1,150 $1,700 $2,250 $2,800

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 33 708-917-3333 Changes in Rent Comparables 1187 W Wilson St - Green Meadows Apartments

VACANCY CHANGES PAST QUARTER & YEAR

Vacancy Levels Change

Property Name - Address Rating Units Now Last Qtr Last Year Past Qtr Past Year

Springs at Orchard Road Apartments - 1801 Oa… 60 46.7% 51.2% - -4.5% -

Fox Run - 145 Walnut Dr 220 2.2% 2.8% 2.4% -0.5% -0.1%

Courtyards Village West - 844 Staghorn Ln 216 0.9% 1.3% 1.9% -0.4% -1.0%

Lake View Residences - 1037 Howell Pl 97 6.8% 7.0% 7.1% -0.2% -0.3%

Colony West Apartments - 685 Laurel Dr 132 1.1% 1.1% 1.1% -0.1% -0.1%

Autumn Run Apartments - 1627 Country Lakes Dr 320 3.1% 3.1% 4.4% 0% -1.3%

Butterfield Trails Apartments - 102 Laurel Dr 96 5.9% 5.9% 6.0% 0% -0.1%

Charleston Park Apartments - 1815-1821 Howard… 71 5.9% 5.9% 5.8% 0% 0.1%

Fox Pointe Apartments - 2074 Fox Pointe Cir 248 1.7% 1.7% 1.6% 0% 0.1%

Green Meadows Apartments - 1187 W Wilson St 150 2.0% 2.0% 2.7% 0% -0.7%

Lorlyn of Batavia - 1034 Lorlyn Cir 253 2.0% 2.0% 5.5% 0% -3.5%

Park Shore Apartments - 1000-1100 Geneva Rd 160 7.5% 7.5% 4.4% 0% 3.1%

Prairie Pointe Apartments - 1820 Wessel Ct 228 2.3% 2.3% 3.3% 0% -1.1%

The Village at Mill Creek - 39W250 Herrington Blvd 31 12.6% 12.6% 2.6% 0% 10.0%

Stone Crossing Apartments - 1240 Nantucket Rd 240 7.5% 7.5% 4.5% 0% 3.0%

Butterfield Oaks - 2288 Oakmeadow Dr 336 12.4% 11.8% 6.1% 0.7% 6.3%

Ashford St Charles - 1690 Covington Ct 208 6.3% 5.3% 4.2% 1.0% 2.1%

St. Charles Place Apartments - 201 N 15th St 126 11.8% 3.9% 3.7% 7.9% 8.1%

ASKING RENT CHANGES PAST QUARTER & YEAR - STUDIO

Rents Levels Change

Property Name - Address Rating Units Now Last Qtr Last Year Past Qtr Past Year

The Village at Mill Creek - 39W250 Herrington Blvd 1 $890 $890 $890 0% 0%

Lake View Residences - 1037 Howell Pl 33 $900 $899 $737 0.1% 22.1%

Springs at Orchard Road Apartments - 1801 Oa… 6 $1,191 $1,130 - 5.4% -

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 34 708-917-3333 Changes in Rent Comparables 1187 W Wilson St - Green Meadows Apartments

ASKING RENT CHANGES PAST QUARTER & YEAR - ONE BEDROOM

Rents Levels Change

Property Name - Address Rating Units Now Last Qtr Last Year Past Qtr Past Year

Courtyards Village West - 844 Staghorn Ln 156 $915 $960 $880 -4.7% 4.0%

Butterfield Oaks - 2288 Oakmeadow Dr 212 $1,167 $1,201 $1,183 -2.8% -1.4%

Springs at Orchard Road Apartments - 1801 Oa… 30 $1,365 $1,391 - -1.9% -

Park Shore Apartments - 1000-1100 Geneva Rd 68 $1,084 $1,084 $1,125 0% -3.6%

Lorlyn of Batavia - 1034 Lorlyn Cir 77 $849 $849 $824 0% 3.0%

Prairie Pointe Apartments - 1820 Wessel Ct 28 $1,070 $1,070 $1,016 0% 5.4%

Fox Run - 145 Walnut Dr 160 $975 $975 $973 0% 0.2%

Stone Crossing Apartments - 1240 Nantucket Rd 70 $781 $781 $765 0% 2.1%

Charleston Park Apartments - 1815-1821 Howard… 31 $946 $946 $928 0.1% 2.0%

Green Meadows Apartments - 1187 W Wilson St 68 $951 $950 $940 0.1% 1.1%

Butterfield Trails Apartments - 102 Laurel Dr 46 $736 $735 $716 0.1% 2.7%

Autumn Run Apartments - 1627 Country Lakes Dr 224 $967 $966 $994 0.1% -2.7%

Lake View Residences - 1037 Howell Pl 42 $1,000 $999 $945 0.1% 5.9%

The Village at Mill Creek - 39W250 Herrington Blvd 14 $1,260 $1,259 $1,201 0.1% 4.9%

St. Charles Place Apartments - 201 N 15th St 34 $861 $859 $845 0.2% 1.8%

Colony West Apartments - 685 Laurel Dr 36 $760 $757 $752 0.3% 1.0%

Ashford St Charles - 1690 Covington Ct 62 $1,260 $1,230 $1,280 2.4% -1.6%

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 35 708-917-3333 Changes in Rent Comparables 1187 W Wilson St - Green Meadows Apartments

ASKING RENT CHANGES PAST QUARTER & YEAR - TWO BEDROOM

Rents Levels Change

Property Name - Address Rating Units Now Last Qtr Last Year Past Qtr Past Year

Park Shore Apartments - 1000-1100 Geneva Rd 68 $1,244 $1,334 $1,295 -6.7% -3.9%

Courtyards Village West - 844 Staghorn Ln 60 $1,095 $1,128 $1,070 -2.9% 2.3%

Lorlyn of Batavia - 1034 Lorlyn Cir 176 $968 $988 $924 -2.0% 4.8%

The Village at Mill Creek - 39W250 Herrington Blvd 16 $1,638 $1,644 $1,565 -0.4% 4.6%

Green Meadows Apartments - 1187 W Wilson St 60 $1,150 $1,150 $1,107 0% 3.9%

Autumn Run Apartments - 1627 Country Lakes Dr 96 $1,275 $1,275 $1,318 0% -3.2%

Charleston Park Apartments - 1815-1821 Howard… 23 $1,470 $1,469 $1,435 0.1% 2.4%

Fox Run - 145 Walnut Dr 56 $1,276 $1,275 $1,250 0.1% 2.1%

Lake View Residences - 1037 Howell Pl 22 $1,400 $1,399 $1,175 0.1% 19.2%

Butterfield Trails Apartments - 102 Laurel Dr 50 $822 $820 $835 0.2% -1.6%

Prairie Pointe Apartments - 1820 Wessel Ct 200 $1,257 $1,253 $1,183 0.3% 6.3%

St. Charles Place Apartments - 201 N 15th St 92 $990 $984 $944 0.6% 4.8%

Colony West Apartments - 685 Laurel Dr 84 $860 $850 $865 1.1% -0.7%

Fox Pointe Apartments - 2074 Fox Pointe Cir 124 $978 $948 $914 3.2% 7.0%

Butterfield Oaks - 2288 Oakmeadow Dr 124 $1,427 $1,371 $1,472 4.0% -3.0%

Ashford St Charles - 1690 Covington Ct 146 $1,326 $1,266 $1,247 4.7% 6.3%

Springs at Orchard Road Apartments - 1801 Oa… 18 $1,727 $1,608 - 7.4% -

Stone Crossing Apartments - 1240 Nantucket Rd 110 $1,002 $925 $875 8.3% 14.5%

ASKING RENT CHANGES PAST QUARTER & YEAR - THREE BEDROOM

Rents Levels Change

Property Name - Address Rating Units Now Last Qtr Last Year Past Qtr Past Year

Springs at Orchard Road Apartments - 1801 Oa… 6 $1,849 $1,850 - -0.1% -

Park Shore Apartments - 1000-1100 Geneva Rd 24 $1,549 $1,549 $1,415 0% 9.5%

Green Meadows Apartments - 1187 W Wilson St 22 $1,476 $1,475 $1,439 0.1% 2.5%

Charleston Park Apartments - 1815-1821 Howard… 17 $1,642 $1,641 $1,610 0.1% 2.0%

Fox Run - 145 Walnut Dr 4 $1,362 $1,361 $1,350 0.1% 0.9%

Colony West Apartments - 685 Laurel Dr 12 $1,072 $1,070 $1,065 0.2% 0.7%

Fox Pointe Apartments - 2074 Fox Pointe Cir 124 $1,087 $1,071 $1,042 1.5% 4.3%

Stone Crossing Apartments - 1240 Nantucket Rd 60 $1,240 $1,205 $1,125 2.8% 10.2%

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 36 708-917-3333 Rent Trends 1187 W Wilson St - Green Meadows Apartments

Green Meadows PROPERTY ATTRIBUTES Rent Comps Fox River Valley 1-3 Star Chicago 1-3 Star Apartments Existing Units 150 3,042 3,002 601,326

Building Rating 2.9 2.3 2.2

Under Construction as % of Inventory - - - 0.4%

Green Meadows UNIT MIX Rent Comps Fox River Valley 1-3 Star Chicago 1-3 Star Apartments 1 Bedroom - 1 Bath 45% 40% 31% 32%

2 Bedroom - 1.5 Bath 40% 2% 4% 2%

3 Bedroom - 1.5 Bath 15% 1% 2% 1%

Green Meadows ASKING RENTS PER SF Rent Comps Fox River Valley 1-3 Star Chicago 1-3 Star Apartments 1 Bedroom - 1 Bath $1.35 $1.41 $1.31 $1.44

2 Bedroom - 1.5 Bath $1.26 $1.06 $1.15 $1.13

3 Bedroom - 1.5 Bath $1.32 $1.28 $1.30 $0.98

Concessions 0.0% 1.0% 0.7% 1.2%

Green Meadows AVERAGE EFFECTIVE RENT GROWTH Rent Comps Fox River Valley 1-3 Star Chicago 1-3 Star Apartments Current Quarter 0.0% 0.8% 0.8% 0.7%

1 Year Rent Growth 3.7% 3.6% 2.7% 2.2%

3 Year Rent Growth 8.2% 12.5% 11.0% 8.5%

5 Year Rent Growth 13.6% 18.1% 16.2% 13.1%

All-Time Average 1.9% 1.9% 1.8% 1.7%

Green Meadows Vacancy Rate Rent Comps Fox River Valley 1-3 Star Chicago 1-3 Star Apartments Current Quarter 2.0% 5.9% 4.4% 5.7%

Last Quarter 2.0% 5.6% 3.9% 5.7%

1 Year Ago 2.7% 4.0% 3.8% 5.3%

3 Years Ago 4.7% 4.6% 3.7% 5.5%

5 Years Ago 6.7% 5.4% 4.9% 6.3%

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 37 708-917-3333 Rent Trends 1187 W Wilson St - Green Meadows Apartments

ONE BEDROOM ASKING RENT PER SQUARE FOOT

TWO BEDROOM ASKING RENT PER SQUARE FOOT

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 38 708-917-3333 Rent Trends 1187 W Wilson St - Green Meadows Apartments

THREE BEDROOM ASKING RENT PER SQUARE FOOT

OVERALL ASKING RENT PER SQUARE FOOT

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 39 708-917-3333 Rent Trends 1187 W Wilson St - Green Meadows Apartments

OVERALL EFFECTIVE RENT PER SQUARE FOOT

ANNUAL EFFECTIVE RENT GROWTH

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CONCESSIONS

VACANCY RATES

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OCCUPANCY RATES

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RENT COMPARABLES HISTORICAL DATA BY YEAR

Rental Rates Per SF Vacancy

Year Units Asking Effective Growth Concessions Units Percent Change Net Absorption

2017 3,042 $1.28 $1.27 4.3% 1.0% 181 5.9% 0.7% (9)

2016 2,982 $1.25 $1.21 2.1% 2.7% 155 5.2% 1.5% (21)

2015 2,982 $1.21 $1.19 4.0% 2.2% 112 3.8% -1.5% (6)

2014 2,982 $1.15 $1.14 3.4% 0.6% 155 5.2% 0.9% (11)

2013 2,982 $1.12 $1.11 2.1% 1.6% 128 4.3% -0.8% 4

2012 2,982 $1.10 $1.08 0.9% 1.2% 152 5.1% -0.4% 5

2011 2,982 $1.08 $1.07 0.8% 0.6% 163 5.5% -0.2% 0

2010 2,982 $1.07 $1.06 0.4% 0.7% 170 5.7% -1.0% 7

2009 2,982 $1.07 $1.06 -1.4% 0.7% 200 6.7% 1.0% (3)

2008 2,982 $1.08 $1.07 1.8% 0.7% 171 5.8% -0.2% (1)

RENT COMPARABLES HISTORICAL DATA BY QUARTER PAST 3 YEARS

Rental Rates Per SF Vacancy

Quarter Units Asking Effective Growth Concessions Units Percent Change Net Absorption

2017 Q2 3,042 $1.28 $1.27 0.8% 1.0% 181 5.9% 0.3% (9)

2017 Q1 3,042 $1.27 $1.26 3.5% 1.4% 171 5.6% 0.4% 44

2016 Q4 2,982 $1.25 $1.21 -1.4% 2.7% 155 5.2% 0.7% (21)

2016 Q3 2,982 $1.26 $1.23 0.7% 2.0% 135 4.5% 0.5% (15)

2016 Q2 2,982 $1.24 $1.22 2.7% 1.5% 120 4.0% 0.1% (3)

2016 Q1 2,982 $1.23 $1.19 0.2% 3.3% 117 3.9% 0.2% (5)

2015 Q4 2,982 $1.21 $1.19 -1.9% 2.2% 112 3.8% 0.2% (6)

2015 Q3 2,982 $1.22 $1.21 0.2% 0.6% 106 3.6% -0.2% 7

2015 Q2 2,982 $1.22 $1.21 2.8% 0.6% 112 3.8% -0.6% 19

2015 Q1 2,982 $1.18 $1.18 2.9% 0.6% 131 4.4% -0.8% 24

2014 Q4 2,982 $1.15 $1.14 0.2% 0.6% 155 5.2% 0.4% (11)

2014 Q3 2,982 $1.15 $1.14 1.3% 0.4% 144 4.8% 0.2% (7)

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 43 708-917-3333 Construction Survey 1187 W Wilson St Green Meadows Apartments 150 Unit Apartment Building Batavia, Illinois - Fox River Valley Neighborhood

PREPARED BY

Robert Petrich Overall Construction Summary 1187 W Wilson St - Green Meadows Apartments

All-Time Annual Average Delivered Past 4 Quarters Deliveries Next 4 Quarters Proposed Next 4 Quarters 76 126 240 0

MAP OF 12 MONTH DELIVERIES, UNDER CONSTRUCTION, PROPOSED

PAST AND FUTURE DELIVERIES

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 45 708-917-3333 Under Construction Properties 1187 W Wilson St - Green Meadows Apartments

Properties Units Percent Of Inventory Avg. No. Units 1 240 4.2% 240

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION SUMMARY STATISTICS

Low Average Median High Property Size in Units 240 240 240 240 Number of Stories 2 2 2 2 Average Unit Size 1,018 SF 1,018 SF 1,018 SF 1,018 SF

Star Rating

Estimated Delivery Date Jul 2017 Jul 2017 Jul 2017 Jul 2017 Months to Delivery 2 2 2 2 Construction Period in Months 11 11 11 11

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 46 708-917-3333 Under Construction Properties 1187 W Wilson St - Green Meadows Apartments

COMPLETIONS WITHIN NEXT 3 MONTHS

Property Name/Address Rating Units Stories Start Complete Developer/Owner Springs at Orchard Road … Continental Properties Company, I… 1 240 2 Aug-2016 Jul-2017 1801 Oak St Continental Properties Company, I…

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 47 708-917-3333 Under Construction Properties 1187 W Wilson St - Green Meadows Apartments

1 1801 Oak St - Springs at Orchard Road - Phase II North Aurora, Illinois - North Aurora Neighborhood

PROPERTY CONSTRUCTION INFO Property Size: 240 Units Start Date: Aug-2016 Stories: 2 Completion Date: Jul-2017 Average Unit Size: 1,018 SF Build Time: 11 Months Rent Type: Market Time to Delivery: 2 Months

DEVELOPER OWNER Continental Properties Company, Inc. Continental Properties Company, Inc.

NOTES This property represents teh under construction units of Springs at Orchard Road. For the existing units, see PID 9958082.

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 48 708-917-3333 Deliveries Past 12 Months Summary 1187 W Wilson St - Green Meadows Apartments

Properties Units Vacancy Rate Avg. Asking Rent/Unit 2 126 53.2% $1,572 DELIVERIES IN PAST 12 MONTHS

DELIVERIES PAST 12 MONTHS SUMMARY STATISTICS Unit Mix Low Average Median High Property Size in Units 60 63 63 66 Studio Units 6 6 6 6 One Bedroom Units 20 25 25 30 Two Bedroom Units 18 32 32 46 Three Bedroom Units 6 6 6 6 Property Attributes Low Average Median High Number of Stories 2 2 2 3 Average Unit Size 947 967 967 988 Rating 4.0

Leasing Performance Low Average Median High Vacancy Rate 50.0% 53.2% 53.0% 56.1% Asking Rent Per Unit $1,504 $1,572 $1,569 $1,634 Effective Rent Per Unit $1,495 $1,516 $1,515 $1,536 Asking Rent Per SF $1.59 $1.62 $1.62 $1.65 Effective Rent Per SF $1.55 $1.57 $1.57 $1.58 Concessions 0.6% 3.3% 3.3% 6.0%

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 49 708-917-3333 Deliveries Past 12 Months Summary 1187 W Wilson St - Green Meadows Apartments

Property Name/Address Rating Units Stories Start Complete Developer/Owner The Village Reserve at Mil… ShoDeen Group, LLC 1 66 3 Nov-15 Oct-16 39W300-39W305 Herringto… ShoDeen Group, LLC Springs at Orchard Road … Continental Properties Company, I… 2 60 2 Aug-16 Mar-17 1801 Oak St Continental Properties Company, I…

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 50 708-917-3333 Deliveries Past 12 Months 1187 W Wilson St - Green Meadows Apartments

1 39W300-39W305 Herrington Blvd - The Village Reserve at Mill Creek Geneva, Illinois - Western Kane County Neighborhood

PROPERTY PROPERTY MANAGER Property Size: 66 Units, 3 Floors Shodeen - The Village Reserve at Mill Creek Avg. Unit Size: 989 SF (630) 232-8882 Year Built: Oct 2016 Type: Apartments - All OWNER Rent Type: Market - Parking: - Distance to Subject: 3.2 Miles Distance to Transit: -

UNIT BREAKDOWN

Unit Mix Availability Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions 1 1 734 20 30.3% 14 70.0% $1,350 $1.84 $1,269 $1.73 6.0% 2 1 935 10 15.2% 0 0.0% $1,550 $1.66 $1,457 $1.56 6.0% 2 2 1,121 5 7.6% 3 60.0% $1,750 $1.56 $1,645 $1.47 6.0% 2 2 1,145 15 22.7% 6 40.0% $1,800 $1.57 $1,692 $1.48 6.0% 2 2 1,153 16 24.2% 9 56.3% $1,850 $1.60 $1,739 $1.51 6.0%

Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions All 1 Beds 734 20 30.3% 14 70.0% $1,350 $1.84 $1,269 $1.73 6.0% All 2 Beds 1,100 46 69.7% 18 39.1% $1,758 $1.60 $1,652 $1.50 6.0% Totals 989 66 100% 32 48.5% $1,634 $1.65 $1,536 $1.55 6.0% Estimate Updated May 24, 2017

UNIT AMENITIES Air Conditioning, Balcony, Granite Countertops, Kitchen, Stainless Steel Appliances, Washer/Dryer

RECURRING EXPENSES Dog Rent $0 Cat Rent $0 Unassigned Garage Parking … Unassigned Surface Lot Parki…

ONE TIME EXPENSES Dog Fee $250 Cat Fee $250 Admin Fee $150 Application Fee $45

PET POLICY Cats Allowed - $0/Mo, Neutering Required, 2 Maximum, Maximum Weight 100 lb, One-Time Fee: $250 Dogs Allowed - $0/Mo, Neutering Required, 2 Maximum, Maximum Weight 100 lb, One-Time Fee: $250 Restrictions: Pit bull, Rottweiler, Cane Corso, Mastiff, Boxer, or any mixes of those breeds.

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 51 708-917-3333 Deliveries Past 12 Months 1187 W Wilson St - Green Meadows Apartments

2 1801 Oak St - Springs at Orchard Road Apartments North Aurora, Illinois - North Aurora Neighborhood

UNIT BREAKDOWN

SITE AMENITIES Clubhouse, Coffee Bar, Fitness Center, Furnished Units Available, Gated, Pet Play Area, Pet Washing Station, Pool, Property Manager on Site, Sundeck

UNIT AMENITIES Air Conditioning, Ceiling Fans, Heating, Island Kitchen, Walk-In Closets, Washer/Dryer

RECURRING EXPENSES Dog Rent $20 Cat Rent $20

ONE TIME EXPENSES Admin Fee $200 Application Fee $60

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 52 708-917-3333 Deliveries Past 12 Months 1187 W Wilson St - Green Meadows Apartments

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 53 708-917-3333 Construction Summary 1187 W Wilson St - Green Meadows Apartments

UNITS UNDER CONSTRUCTION

PROJECTED DELIVERY DATES OF UNITS UNDER CONSTRUCTION

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 54 708-917-3333 Construction Summary 1187 W Wilson St - Green Meadows Apartments

CONSTRUCTION DELIVERIES IN UNITS

CONSTRUCTION STARTS IN UNITS

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PERCENT OCCUPIED AT DELIVERY

UNITS OCCUPIED IN DELIVERIES OVER TIME

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NEW CONSTRUCTION OCCUPANCY AFTER DELIVERY BY YEAR BUILT

NET ABSORPTION IN UNITS

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ASKING RENTAL RATES PER UNIT

CONCESSIONS IN DELIVERIES PER YEAR

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 58 708-917-3333 Sale Comparables 1187 W Wilson St Green Meadows Apartments 150 Unit Apartment Building Batavia, Illinois - Fox River Valley Neighborhood

PREPARED BY

Robert Petrich Sale Comparables Summary Green Meadows Apartments - 1187 W Wilson St

Sale Comparables Avg. Price/Unit (thous.) Average Price (mil.) Average Vacancy at Sale 3 $125 $30.2 4.9% SALE COMPARABLE LOCATIONS

Sales Attributes Low Average Median High

Sale Price $20,800,000 $30,250,000 $34,500,000 $35,450,000

Price Per Unit $91,228 $124,999 $126,838 $156,858

Cap Rate 5.1% 5.1% 5.1% 5.1%

Vacancy at Sale 2.6% 4.9% 5.3% 6.3%

Time Since Sale in Months 1.8 14.7 18.6 23.6

Property Attributes Low Average Median High

Property Size in Units 226 242 228 272

Number of Floors 2 2 2 3

Average Unit SF 844 894 872 965

Year Built 1972 1987 1990 2000

Star Rating 2.7

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 60 708-917-3333 Sale Comparables Summary Green Meadows Apartments - 1187 W Wilson St

Property Information Sale Information

Property Name/Address Rating Yr Built Units Vacancy Sale Date Price Price/Unit Price/SF Ashford at Geneva 1 - 1990 226 5.3% 3/30/2017 $35,450,000 $156,858 $131 350-420 Brittany Ct Orchard Village 2 - 2000 272 6.3% 11/5/2015 $34,500,000 $126,838 $138 1240 W Indian Trail Rd Prairie Pointe Apartments 3 - 1972 228 2.6% 6/8/2015 $20,800,000 $91,228 $108 1820 Wessel Ct

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 61 708-917-3333 Sale Comparables 1187 W Wilson St - Green Meadows Apartments

1 Ashford at Geneva - 350-420 Brittany Ct Geneva, IL 60134 - Fox River Valley Neighborhood

SALE PROPERTY Sale Date: 3/30/2017 Property Size: 226 Units, 2 Floors Sale Price: $35,450,000 Average Unit Size: 965 SF Price Per Unit: $156,858 Year Built: 1990 Price Per SF: $131 Vacancy At Sale: 5.3% Cap Rate: 5.1% Parking Spaces: 630 Spaces; 2.8 per Unit

CONTACTS Buyer: Oak Residential Partners, LLC Seller: The RADCO Companies Listing Broker: Berkadia Real Estate Advisors - Alex Blagojevich, Ralph DePasquale

FINANCING $23,220,000 from Wells Fargo Bank, National Association

UNIT MIX AT SALE

Unit Mix Vacancy Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Vac % Per Unit Per SF Per Unit Per SF Concessions 1 1 850 36 15.9% 2 5.6% $1,305 $1.54 $1,273 $1.50 2.5% 2 1 875 70 31.0% 4 5.7% $1,305 $1.49 $1,284 $1.47 1.6% 2 2 1,000 66 29.2% 4 6.1% $1,458 $1.46 $1,434 $1.43 1.6% 2 2 1,115 54 23.9% 3 5.6% $1,443 $1.29 $1,419 $1.27 1.6% Totals 965 226 100% 12 5.3% $1,382 $1.43 $1,358 $1.41 1.7%

SITE AMENITIES Business Center, Clubhouse, Fitness Center, Laundry Facilities, Package Service, Pool, Property Manager on Site, Sundeck

UNIT AMENITIES Air Conditioning, Cable Ready, Carpet, Den, Dining Room, Dishwasher, Disposal, Eat-in Kitchen, Heating, Kitchen, Microwave, Range, Tile Floors, Tub/Shower, Walk-In Closets, Washer/Dryer, Window Coverings

TRANSACTION NOTES On March 30, 2017, the 226 unit multi-family asset located at 350-420 Brittany Ct, Geneva, IL, sold for $35,450,000, or $156,858 per unit. The asset traded between The RADCO Companies and Oak Residential Partners, LLC.

The asset features 36 1-bedroom units and 190 2-bedroom units.

Per a press release issued by the brokerage firm involved, they reported an in-place cap rate of 5.14%. When reached, the buyer did not confirm the price, but reported a cap rate of 5.50% (based on T-3 revenues less T-12 expenses, adjusted for Year 1 tax expense).

The buyer secured acquisition financing in the amount of $23,220,000.

The sale price is consistent with Kane County records. Other information was confirmed with the brokerage firm involved, and the buyer.

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2 Orchard Village - 1240 W Indian Trail Rd Aurora, IL 60506 - Edgelawn Randall Neighborhood

SALE PROPERTY Sale Date: 11/5/2015 Property Size: 272 Units, 2 Floors Sale Price: $34,500,000 Average Unit Size: 872 SF Price Per Unit: $126,838 Year Built: 2000 Price Per SF: $139 Vacancy At Sale: 6.3% Cap Rate: 5.1% Parking Spaces: 340 Spaces; 1.3 per Unit

CONTACTS Buyer: Prospect Capital Corporation, Sinatra and Company, Stadt-Sinatra … Seller: Benjamin E. Sherman & Sons, Inc. Listing Broker: Moran & Company - Peter Evans

UNIT MIX AT SALE

Unit Mix Vacancy Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Vac % Per Unit Per SF Per Unit Per SF Concessions 1 1 703 45 16.5% 3 6.7% $997 $1.42 $990 $1.41 0.7% 1 1 781 45 16.5% 3 6.7% $1,083 $1.39 $1,075 $1.38 0.7% 1 1 801 45 16.5% 3 6.7% $1,087 $1.36 $1,080 $1.35 0.7% 1 1 867 45 16.5% 3 6.7% $1,118 $1.29 $1,110 $1.28 0.7% 2 2 957 31 11.4% 2 6.5% $1,393 $1.46 $1,351 $1.41 3.0% 2 2 1,027 31 11.4% 2 6.5% $1,361 $1.33 $1,320 $1.29 3.0% 2 2 1,130 30 11.0% 2 6.7% $1,484 $1.31 $1,439 $1.27 3.0% Totals 872 272 100% 17 6.3% $1,187 $1.36 $1,167 $1.34 1.6%

SITE AMENITIES Business Center, Clubhouse, Fitness Center, Grill, Laundry Facilities, Picnic Area, Pool, Sundeck

UNIT AMENITIES Air Conditioning, Dishwasher, Refrigerator, Walk-In Closets, Washer/Dryer

TRANSACTION NOTES On November 5, 2015, the 272 unit multi-family property located at 1240 W Indian Trail Rd, Aurora, IL, sold for $34,500,000, or $126,838 per unit. The property traded between Benjamin E. Sherman & Sons and a JV formed between Sinatra & Company/Stadt Group/National Property REIT Corporation (Prospect Capital Corporation).

Orchard Village Apartments delivered in 2000, and sit on 16.9 acres. The community was 96.5% occupied at the time of sale. The property consists of 17 buildings and a clubhouse. Community amenities include an on-site dog park, fitness center, 24-hour management/maintenance, pet-friendly, resort-style pool, available storage, business center, picnic area, DVD library, and resident lounge areas. Unit amenities include handicap accessible units, A/C, dishwasher, fireplace, 9' ceilings, private balconies/patios, washer/dryer, and walk-in closets.

The acquisition serves as a light value-add project for the new owner group. Minor interior upgrades, clubhouse upgrades, as well as landscaping upgrades will highlight the capital improvement project. The buyer secured financing in the amount of $26,450,000. The deal was under contract for approximately 90 days before closing. An in-place cap rate based on a T-1 NOI figure of $1,770,000 is calculated at 5.13%. A year 1 pro forma cap rate is calculated at approximately 5.20% based on future potential NOI of $1,794,000.

Information was confirmed with sources deemed reliable.

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3 Prairie Pointe Apartments - 1820 Wessel Ct Saint Charles, IL 60174 - Fox River Valley Neighborhood

SALE PROPERTY Sale Date: 6/8/2015 Property Size: 228 Units, 3 Floors Sale Price: $20,800,000 Average Unit Size: 844 SF Price Per Unit: $91,228 Year Built: 1972 Price Per SF: $108 Vacancy At Sale: 2.6% Cap Rate: - Parking Spaces: 280 Spaces; 1.2 per Unit

CONTACTS Buyer: Axiom Properties Seller: ShoDeen Group, LLC Listing Broker: CBRE - Dan Cohen, John Jaeger, Martha Jane Zaring

FINANCING $19,154,000 from KeyBank National Association

UNIT MIX AT SALE

Unit Mix Vacancy Avg Asking Rent Avg Effective Rent Bed Bath Avg SF Units Mix % Units Vac % Per Unit Per SF Per Unit Per SF Concessions 1 1 800 28 12.3% 1 3.6% $998 $1.25 $998 $1.25 0.0% 2 1 850 200 87.7% 5 2.5% $1,131 $1.33 $1,131 $1.33 0.0% Totals 844 228 100% 6 2.6% $1,115 $1.32 $1,115 $1.32 0.0%

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TRANSACTION NOTES Axiom Properties Inc. acquired the multi-family property at 1820 Wessel Court in Saint Charles, IL from ShoDeen Group, LLC for $20.8 million, or about $91,228 per unit.

Known as Wessel Court Apartments, 1820 Wessel Court is a 228-unit apartment community. It has 28 one-bedroom one-bathroom units and 200 two-bedroom one-bathroom units. It consists of fourteen three-story apartment buildings with a total RBA of 191,900 square feet. It is located on 12.753 acres of land.

The property's name will reportedly be changed to Prairie Point following the sale.

The transfer tax declaration indicates that the property was 100% occupied at the time of the sale and that it was sold in an off market transaction. It is not known how long the property was under contract before it closed.

The seller was represented. It is not known if the buyer had any representation.

The buyer took out a loan in the amount of $19,154,000 from Key Bank National Association towards the acquistion of the property. Terms of the loan were not known at the time of publication.

The amount of the down payment was calculated by subtracting the amount of the loan from the sale price. However, this amount has not been confirmed with the parties involved.

The buyer reportedly plans to renovate the property. Improvements will include window replacements, the addition of washers and dryers to units, and kitchen upgrades including new appliances and new cabinets.

As we were unable to contact the buyer or seller, we were unable to obtain additional information about the property or the transaction other details contained in the brokers' press release or public records.

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CHICAGO METRO SALES VOLUME IN UNITS

FOX RIVER VALLEY SUBMARKET SALES VOLUME IN UNITS

FOX RIVER VALLEY NEIGHBORHOOD SALES VOLUME IN UNITS

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NATIONAL PRICE INDICES

REGIONAL MULTI-FAMILY PRICE INDICES

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CHICAGO PRICE PER UNIT INDEX

UNITED STATES PAST YEAR BY PRICE PER UNIT CHICAGO PAST YEAR BY PRICE PER UNIT

PRICE PER UNIT SUMMARY FOR SALES IN PAST YEAR

Geography Transactions Low Bottom 25% Median Average Top 25% High United States 19,015 $5,000 $32,283 $105,000 $132,856 $362,213 $12,300,000 Chicago 822 $5,000 $31,187 $85,714 $152,237 $280,092 $730,000 Fox River Valley 4 $98,125 $98,125 $114,196 $140,511 $156,858 $156,858 Selected Sale Comps 3 $91,228 N/A $126,838 $124,999 N/A $156,858

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CAP RATE TRENDS

UNITED STATES CAP RATES PAST YEAR CHICAGO CAP RATES PAST YEAR

CAP RATE SUMMARY STATISTICS IN PAST YEAR

Geography Transactions Low Bottom 25% Median Average Top 25% High United States 10,001 0.6% 3.8% 5.8% 6.2% 9.2% 20.0% Chicago 393 2.9% 5.2% 7.3% 7.9% 11.5% 20.0% Fox River Valley 3 5.1% N/A 6.0% 6.0% N/A 6.8% Selected Sale Comps 2 5.1% N/A 5.1% 5.1% N/A 5.1%

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 69 708-917-3333 Buyers 1187 W Wilson St - Green Meadows Apartments

TOP CHICAGO MULTI-FAMILY BUYERS PAST TWO YEARS

Properties Bought Properties Sold

Company Name Bldgs Units Volume Bldgs Units Volume Hudson Americas, LP 9 3,563 $480,677,374 13 3,974 $530,752,374 Group Fox 4 1,393 $459,600,000 0 0 - Crescent Heights 2 898 $363,180,180 1 160 $134,600,000 Angelo, Gordon & Co. 2 560 $251,600,000 1 330 $85,000,000 Invesco 1 398 $240,312,000 0 0 - Redwood Capital Group, LLC 3 1,302 $212,200,000 4 1,856 $191,390,500 Alcion Ventures 8 501 $195,820,000 0 0 - Golub & Company 6 490 $193,270,000 0 0 - TLC Management Co. 4 1,285 $189,059,500 0 0 - The Laramar Group, LLC 15 909 $175,955,997 1 281 $30,500,000 The Connor Group 4 1,690 $173,894,500 2 736 $6,794,500 LaSalle Investment Management Inc. 2 438 $164,000,000 1 615 $225,000,000 Waterton Associates LLC 2 481 $157,000,000 3 1,060 $286,000,000 Pensam Capital 4 1,286 $150,730,500 0 0 - Friedkin Investment Co. 4 737 $149,293,000 5 1,724 $251,000,000 JP Morgan Chase & Co. 1 198 $140,000,000 0 0 - Harlem Irving Companies 1 160 $134,600,000 0 0 - JDL Development 1 160 $134,600,000 0 0 - Marquette Companies 2 609 $133,925,000 1 278 $92,500,000 Canada Pension Plan Investment Board 1 176 $127,205,099 0 0 - GIC Real Estate International Pte Ltd 1 176 $127,205,099 0 0 - The Scion Group LLC 1 176 $127,205,099 0 0 - Prudential Financial, Inc. 1 342 $127,078,770 0 0 - Beal Properties, LLC 9 551 $124,331,000 3 40 $6,317,500 CLK Properties 11 730 $115,647,000 0 0 -

Purchased at least one asset in Fox River Valley Multi-Family submarket

TYPES OF MULTI-FAMILY CHICAGO BUYERS PAST TWO YEARS

Buying Volume Average Purchase

Company Type Bldgs Units Billions Price/Unit Avg Price

Private 1,201 52,101 $6.84 $131,298 $5,695,885

Institutional 153 17,624 $3.39 $192,891 $22,219,076

Private Equity 26 3,458 $.59 $170,925 $22,733,058

REIT/Public 2 727 $.10 $150,343 $54,650,000

$0 $1.8 $3.6 $5.4 $7.2

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TOP CHICAGO MULTI-FAMILY SELLERS PAST TWO YEARS

Properties Sold Properties Bought

Company Name Bldgs Units Volume Bldgs Units Volume Hudson Americas, LP 13 3,974 $530,752,374 9 3,563 $480,677,374 Heitman 3 1,182 $412,880,180 1 206 $47,775,000 Florida State Board of Administration 2 863 $346,180,180 0 0 - Waterton Associates LLC 3 1,060 $286,000,000 2 481 $157,000,000 Friedkin Investment Co. 5 1,724 $251,000,000 4 737 $149,293,000 DRW Trading Group 2 409 $247,712,000 0 0 - LaSalle Investment Management Inc. 1 615 $225,000,000 2 438 $164,000,000 American Realty Advisors 3 1,066 $208,350,000 1 216 $99,600,000 Jackson Square Properties 4 1,340 $203,400,000 0 0 - Redwood Capital Group, LLC 4 1,856 $191,390,500 3 1,302 $212,200,000 McCaffery Interests, Inc. 2 494 $172,078,770 0 0 - Lennar 2 465 $156,950,000 0 0 - Kensington Realty Advisors, Inc. 3 1,019 $152,850,000 0 0 - Lawrence A. Ventresca & Co. 2 448 $149,600,000 0 0 - Marc Realty 7 604 $146,241,551 3 18 $1,930,000 Investcorp Bank B.S.C. 3 1,514 $141,390,500 1 642 $86,300,000 Integrated Development Group 1 198 $140,000,000 0 0 - National Real Estate Advisors 1 198 $140,000,000 0 0 - DK Real Estate Services 3 580 $137,067,000 1 448 $48,250,000 Crescent Heights 1 160 $134,600,000 2 898 $363,180,180 Smithfield Properties 2 328 $128,295,000 0 0 - CA Ventures, LLC 1 176 $127,205,099 4 95 $34,550,000 Harrison Street Capital 1 176 $127,205,099 0 0 - The Opus Group 1 176 $127,205,099 0 0 - Trinitas Ventures 1 176 $127,205,099 0 0 -

Sold at least one asset in Fox River Valley Multi-Family submarket

TYPES OF MULTI-FAMILY CHICAGO SELLERS PAST TWO YEARS

Selling Volume Average Sale

Company Type Bldgs Units Billions Price/Unit Avg Price

Private 1,143 46,145 $6.50 $140,981 $5,691,672

Institutional 191 21,080 $4.35 $206,666 $22,809,082

REIT/Public 10 3,054 $.45 $149,073 $45,527,050

Private Equity 12 677 $.22 $332,858 $18,778,791

$0 $1.7 $3.4 $5.1 $6.8

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 71 708-917-3333 Demographics 1187 W Wilson St Green Meadows Apartments 247,902 SF Multi-Family Building Batavia, Illinois - Fox River Valley Neighborhood

PREPARED BY

Robert Petrich Demographic Overview 1187 W Wilson St - Green Meadows Apartments

Population (1 mi) Avg. HH Size (1 mi) Avg. Age (1 mi) Med. HH Inc. (1 mi) 10,969 2.5 41 $83,987 DEMOGRAPHIC RADIUS RINGS

DEMOGRAPHIC SUMMARY

Population 1 Mile 3 Mile 5 Mile 2017 Population 10,969 55,137 120,598 2022 Population 11,209 56,319 123,390 Pop Growth 2017-2022 2.2% 2.1% 2.3% 2017 Average Age 41 39 38 Households 2017 Households 4,313 19,537 42,960 2022 Households 4,408 19,961 43,952 Household Growth 2017-2022 2.2% 2.2% 2.3% Median Household Income $83,987 $100,327 $85,431 Average Household Size 2.5 2.8 2.7 Average HH Vehicles 2 2 2 Housing Median Home Value $279,601 $304,714 $275,570 Median Year Built 1980 1987 1985

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 73 708-917-3333 Age & Education 1187 W Wilson St - Green Meadows Apartments

POPULATION BY AGE GROUP IN 1 MILE RADIUS

POPULATION BY AGE IN 1 MILE RADIUS POPULATION BY EDUCATION IN 1 MILE RADIUS

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate Page 74 708-917-3333 Ethnicity 1187 W Wilson St - Green Meadows Apartments

POPULATION BY RACE

2017 Population

Race 1 Mile 3 Mile 5 Mile

White 10,393 94.74% 50,996 92.49% 108,039 89.59%

Black 202 1.84% 1,535 2.78% 5,542 4.60%

Asian 212 1.93% 1,570 2.85% 4,362 3.62%

American Indian & Alaskan 38 < 1% 150 < 1% 517 < 1%

Hawaiian & Pacific Islander 3 < 1% 30 < 1% 103 < 1%

Other 122 1.11% 856 1.55% 2,035 1.69%

0 2,400 4,800 7,200 9,600 12,000

POPULATION BY RACE IN 1 MILE RADIUS HISPANIC POPULATION IN 1 MILE RADIUS

MILITARY POPULATION

2017 Population

1 Mile 3 Mile 5 Mile

Military 2 < 1% 23 < 1% 54 < 1%

Non-Military Workforce 6,037 99.97% 29,477 99.92% 64,115 99.92%

0 1,400 2,800 4,200 5,600 7,000

5/25/2017 Bob Petrich Boardwalk Commercial Real Estate 708-917-3333 Page 75 Fox River Valley Overview 1187 W Wilson St Green Meadows Apartments 150 Unit Apartment Building Batavia, Illinois - Fox River Valley Neighborhood

PREPARED BY

Robert Petrich Overview Fox River Valley Apartment

12 Mo. Deliveries in Units 12 Mo. Net Absorption Vacancy Rate 12 Mo. Rent Growth 0 -25 5.5% 0.9%

Market Analyst: Brandon Frankel - [email protected]

Development continues to be quiet in Fox River Valley. Only one new community, Randall Highlands, has delivered this cycle. Despite one planned project, the pipeline remains fairly dry in the submarket due to a combination of the strength of the single-family housing market, lenders increasing scrutiny on suburban construction loans, and demographic constraints for renter-demand in 4 & 5 Star units. That said, vacancies remain compressed, with landlords easing up on rental escalations in order to maintain high occupancies. Investors haven¶t been overly active in the past year, and only a few 2 Star assets have changed hands.

KEY INDICATORS

Under Current Quarter Units Vacancy Rate Asking Rent Effective Rent Net Absorption Net Deliveries Construction 4 & 5 Star 812 7.8% $1,606 $1,556 (5) 0 0 3 Star 1,290 5.0% $1,199 $1,187 (5) 0 0 1 & 2 Star 1,029 4.4% N/A N/A (9) 0 0 SUBMARKET 3,131 5.5% $1,274 $1,257 (19) 0 0

Annual Trends 12 Month Change Hist. Avg. Fcst. Avg. Peak When Trough When

Vacancy 1.0% 5.8% 5.7% 10.3% 2003 Q3 2.0% 2000 Q1 Net Absorption (25) 20 3 188 2004 Q2 (40) 2016 Q4 Net Deliveries 0 26 11 266 2003 Q3 0 2016 Q2 Rent Growth 0.9% 2.2% 1.0% 7.0% 2015 Q3 -1.2% 2003 Q3 Effective Rent Growth 2.4% 2.2% 1.0% 7.0% 2015 Q3 -1.2% 2003 Q3 Sales ($ millions) $51 $20 N/A $94 2013 Q4 $0 2012 Q4

FUNDAMENTALS

Fox River Valley is dominated by the single-family housing market, creating an environment where new large- scale apartment construction is uncommon. Renters that do live here typically work close-by, given the employment opportunities in both the I-88 corridor and St. Charles¶robust manufacturing hub, which is adjacent to the DuPage Airport. While commuting to Downtown from the Geneva Metra Station is a possibility, most renters are adverse to this long commute. Low vacancy levels are commonplace in Fox River Valley, but this is due to the lack of apartment construction rather than an overflow of renter-demand.

Chicago¶s suburban developers have largely overlooked Fox River Valley this cycle. This is partially due to the strength of the single-family housing market, especially considering its relatively affordable median price of $300,000. Assuming a 30-year loan with a 4% fixed interest rate and taxes, a homeowner¶s monthly payment of $1,450 is just 15% higher than the submarket¶s median monthly rent. Furthermore, while census data suggests the submarket adds about 200 households per year, only about 20% contribute to the renter pool. Kane County, which encompasses the entire Fox River Valley submarket, was one of four Chicago County¶s to show an increase in single-family home starts year-over-year in 16Q2. With five Kane County Schools districts ranked in Illinois¶top ten, the backdrop is primed for new home construction to continue to increase at a faster pace than apartment building.

In St. Charles, manufacturing jobs drive the local economy and subsequent demand for 3 Star rental units. AJR Filtration moved-in to its new 180,000 SF facility at 1200 Equity Dr. in 16Q3, creating 150 new jobs. AJR received lucrative tax rebates from the City of St. Charles, including a three-year tax abatement program in an already low-tax Kane County. In Batavia, PDS, a transportation and logistics provider, moved-in to its new headquarters at 1070 Swanson Drive in 16Q2. The move is a consolidation into 107,800 SF, and the site¶s proximity to I-88 and DuPage Airport were cited as key incentives for the move. The submarket averaged about 150,000 SF of industrial net absorption per year over the past five years, and currently has an industrial vacancy rate of just 3%.

Redevelopments have also been commonplace in downtown St. Charles, creating high-end supply for targeted renters. First Street, a key drag in Downtown St. Charles, has been slated for redevelopment for over ten years, with the economic downturn in 2008 partially responsible for the delay. However, the first of three new mixed-use buildings is now complete, and houses some of ALE Solutions¶employees. Construction on the second building is scheduled to begin this year, with a third coming up at a later date. The buildings will include two parking garages with over 500 public parking spaces, plus infrastructure improvements to help make the area more walkable. ALE CEO Rob Zimmers envisions Downtown St. Charles as a live/work/play destination, a change from its history.

In the southern portion of Fox River Valley, the I-88 corridor continues to attract business, despite a few bumps in the road. Molex has been performing very well, and now employs over 800 workers. O¶Reilly Automotive recently completed a manufacturing facility along I-88, bringing hundreds of jobs to the area. However, several companies, such as Unilever and OfficeMax, have recently announced relocations away from the I-88 corridor, providing some uncertainty for its future ability to drive employers and create renter demand.

NET ABSORPTION, NET DELIVERIES AND VACANCY RATE

Fox River Valley lacks the 4 & 5 Star inventory found in most other submarkets. Just a few high-end communities exist, which are located in North Aurora close to I-88 or to the east of St. Charles, near the DuPage Airport. To the west of St. Charles, a bevy of low-rise and garden style 2 Star assets can be found, which as of February, 2017 have an average vacancy of 7%.

Randall Highlands, a 146-unit, 4 Star Marquette development delivered in 13Q2. The community stabilized in just over one year, averaging a physical absorption rate of 10 units (7%) per month²as of April, 2017 the property is 91% occupied and offering concessions of less than one month for those who sign leases before April 15th. The property includes two- and three-bedroom units only, a long-time trend in the submarket. Marquette sold the property in 15Q1 for about $32.1 million ($219,966/unit) at a 5.5% cap rate. At the time of sale, the property was 95% occupied.

Even with the success of Randall Highlands, banks have turned more and more suburban developers away with tight loan restrictions, thinning out the pipeline. For instance, in 2012 JCF received approval from the city to redevelop a portion of the InterPark Corporate Center in O¶Hare into 394 apartments. After being unable to secure $35 million in construction financing the project was ultimately cancelled, and JCF filed for chapter 11 bankruptcy earlier in 2016. As part of tightening regulations, banks are also requiring higher capital amounts which some developers cannot afford.

To the west side of downtown St. Charles, a concept plan for the Old St. Charles Mall site¶s redevelopment has been submitted. While still very early in planning, the intention is for the site to become a mixed-use property, with about 500 residential units. The City of St. Charles believes there is still renter demand in the Downtown area, and both renters commuting Downtown and working in the area are anticipated to draw interest, despite the long commute. If the new units are 4 or 5 Star, it would test the strength of the higher-end market in Fox River Valley by nearly doubling the amount of 4 & 5 Star inventory in the submarket.

NET DELIVERIES

CONSTRUCTION ACTIVITY

12 MONTH AVERAGE DELIVERIES IN UNITS AVERAGE BUILDING SIZE IN UNITS

DELIVERED PROJECTS

No. Property Name Address Stories Units Start Yr. Deliv. Yr Owner/Developer Steadfast Apartment RE... 2 Randall Highlands 1241 Ritter St 2 146 2012 2013

ShoDeen Group, LLC 3 Dodson Place Residential 500 S Third St 3 20 2008 2009

PROPOSED PROJECTS

No. Property Name Address Stories Units Start Yr. Deliv. Yr Owner/Developer ShoDeen Incorporated 1 Prairie Centre Project 2036 Lincoln Hwy 2 490 N/A ShoDeen Incorporated

RENTS

Rents in Fox River Valley rank in the top half among Chicago submarkets and are on par with the metro average. While rent growth totaled a historical high in 2015, it has trailed off in 2016, growing slower than the submarket historical average. Despite trailing off, the lack of new supply may provide landlords the opportunity to raise rents above inflation.

The highest rents in the submarket can be found at the AMLI at St. Charles and Dodson Place Residential in Geneva. One-bedrooms at the AMLI go for about $1.75/SF, a similar price to Dodson Place ($1.78/SF). Dodson Place also has the highest two-bedroom asking rents in the submarket, at $1.63/SF. Shodeen Group, who manages the property, is able to ask for one- and two-bedroom rents 25% above the Fox River Valley average due to the assets proximity to the Geneva Metra Station, and its access to retailers who line S. 3rd St. resulting in a high walkability score of 76 (very walkable). Meanwhile, AMLI boasts several amenities including a sand volleyball court, two 24-hour fitness centers, and gas log fireplaces in select units.

Two-bedrooms are also the most commonly built floor plan in the submarket, and there is a higher percentage of two-bedrooms here than in any other Chicago submarket (59%). This is partially due to the disparity between one-bedroom asking rents and median incomes among renters. The average one-bedroom in the submarket is about $1.40/SF, which at 30% income, requires a solo renter to make at least $45,000 per year to live comfortably. The median income in Fox River Valley among renters is only $37,000 according to the US Census, with two-thirds of this population making less than $50,000 per year. Sharing housing makes several communities affordable that otherwise might not be for residents, highlighted by Randall Highlands and its bevy of two- and three-bedroom units.

ASKING RENT LEVELS AND ANNUAL GROWTH

EXPENSES

Operating Expenses Per SF Capital Expenditures Per SF

Market Mgmt. Admin. Payroll Water Utilities Maint. Insurance Taxes Appliance Structual Other Total

4 & 5 Star Chicago $0.82 $1.15 $2.63 $0.34 $1.17 $2.14 $0.37 $3.00 $0.10 $0.44 $0.94 $13.10 Suburban $0.79 $0.79 $1.95 $0.49 $1.18 $1.53 $0.31 $2.78 $0.09 $0.44 $0.94 $11.30 Submarket $0.72 $0.72 $2.03 $0.48 $1.13 $1.36 $0.28 $2.51 $0.09 $0.44 $0.95 $10.71 3 Star Chicago $0.77 $1.10 $1.07 $0.29 $1.10 $1.79 $0.33 $1.79 $0.09 $0.41 $0.65 $9.39 Suburban $0.64 $0.67 $0.96 $0.39 $1.05 $1.03 $0.28 $1.56 $0.08 $0.39 $0.66 $7.71 Submarket $0.67 $0.75 $1.01 $0.43 $1.01 $1.32 $0.28 $1.66 $0.07 $0.42 $0.69 $8.32 1 & 2 Star Chicago $0.52 $0.71 $0.97 $0.27 $0.85 $1.22 $0.30 $1.06 $0.08 $0.39 $0.60 $6.99 Suburban $0.48 $0.46 $0.91 $0.35 $0.82 $0.81 $0.26 $1.22 $0.06 $0.37 $0.62 $6.36 Submarket $0.54 $0.57 $0.99 $0.37 $0.83 $1.09 $0.27 $1.56 $0.06 $0.40 $0.66 $7.33 * Expenses are estimated using NCREIF and IREM data using the narrowest possible geographical definition ranging from zip code to region.

SALES

Private buyers and sellers account for the majority of Fox River Valley¶s investment activity. Trades do not occur frequently in the submarket, and few deals closed in 2016. However, toward the end of 2015 the submarket saw several smaller, 2 Star assets changing hands for pricing close to the metro average. With few deals, cap rates have fluctuated considerably over the past five years, and currently average 6.5% over the last four quarters, 150 basis points above the Chicago average.

A typical deal was the sale of 101 S. 17th St. in St. Charles. The 6-unit, 2 Star asset sold for $495,000 ($82,500/unit) in 15Q4 at a 6.34% cap rate. The buyer and seller were both local investors, with the seller having purchased the property in 13Q1 for $385,000 ($64,167/unit) at an 8.20% cap rate. The seller was distressed in the 13Q1 deal, possibly accounting for the discounted price. The asset is in prime location relative to retailers, which include Costco, Meijer, and a Lowe¶s.

Most recently, the 8-unit apartment located at 1330 S. 14th St. in St. Charles sold in 16Q4 for $785,000 ($98,125/unit) at a 6.75% cap rate. The higher price per unit can be attributed to the unit mix, which contains one one-bedroom and seven two-bedrooms that range from 675 to 825 SF. The cap rate is consistent with Fox River Valley trades over the past year-plus.

SALES VOLUME AND MEDIAN PRICE

HISTORICAL SALES TRANSACTIONS

12 MONTH AVERAGE SALES VOLUME IN MILLIONS 12 MONTH SALES VOLUME IN MILLIONS BY OWNER TYPE

HISTORICAL SALES TRANSACTIONS

Price Per No. Property Sale Date Price Units Built Buyer Name Unit Firethorne Apartments, 1320 16 5/16/2017 $8,280,000 72 $115,000 1987 Brook St Ashford at Geneva, 350 Oak Residential Partners, LLC 2 3/30/2017 $35,450,000 226 $156,858 1990 Brittany Ct (Private) Clarity Strategic Opportunities, LLC 19 Geneva Park, 7 Simpson St 3/9/2017 $6,350,000 56 $113,393 1971 (Private) Prairie Pointe Apartments, 5 6/8/2015 $20,800,000 228 $91,228 1972 Axiom Properties (Private) 1820 Wessel Ct

9 Fox Run, 145 Walnut Dr 4/24/2015 $17,400,000 220 $79,091 1973 Windy City RE (Private)

Randall Highlands, 1241 Steadfast Apartment REIT, Inc. 3 3/31/2015 $32,115,000 146 $219,966 2013 Ritter St (Private) Park Shore Apartments, 1000 Steadfast Capital Markets Group 8 9/12/2014 $18,350,000 160 $114,688 1964 Geneva Rd LLC (Private) Charleston Park Apartments, 21 1/7/2014 $5,625,000 71 $79,225 1974 Protter Enterprises, Ltd (Private) 1815 Howard St The Apartments at Kirkland 1 10/30/2013 $41,952,000 266 $157,714 2003 Mesirow Financial (Institutional) Crossing, 3055 Riverbirch Dr Brick House Investments, LLC 22 Geneva Park, 7 Simpson St 10/22/2013 $3,725,000 56 $66,518 1971 (Private) Ashford St Charles, 1690 7 6/6/2013 $19,250,000 208 $92,548 1988 The RADCO Companies (Private) Covington Ct Ashford at Geneva, 350 4 2/28/2013 $27,850,000 226 $123,230 1990 The RADCO Companies (Private) Brittany Ct Firethorne Apartments, 1320 Michigan Avenue Real Estate Group 18 9/28/2011 $6,600,000 72 $91,667 1987 Brook St (Private)

10 Fox Run, 145 Walnut Dr 11/4/2008 $12,900,000 220 $58,636 1973 Kinzie Realty Corporation (Private)

St. Charles Place Apartments, 15 3/18/2008 $8,350,000 126 $66,270 1975 201 N 15th St Ashford St Charles, 1690 17 4/4/2007 $7,590,500 149 $50,943 1988 Covington Ct

20 Geneva Park, 7 Simpson St 2/23/2007 $5,900,000 56 $105,357 1971

Firethorne Apartments, 1320 13 1/30/2007 $10,929,500 72 $151,799 1987 Brook St Ashford St Charles, 1690 6 1/17/2006 $20,000,000 208 $96,154 1988 ShoDeen Group, LLC (Private) Covington Ct Park Shore Apartments, 1000 12 2/23/2005 $11,191,500 160 $69,947 1964 Geneva Rd Green Meadows Apartments, 11 2/20/2004 $11,800,000 150 $78,667 1978 Nancy Protter (Private) 1187 W Wilson St Green Meadows Apartments, 14 7/1/2003 $9,815,000 150 $65,433 1978 1187 W Wilson St

SUBMARKET SUPPLY AND DEMAND HISTORY AND FORECAST

Inventory Net Absorption

Year Units Growth % Growth Units % Growth Construction Ratio 2021 3,188 19 0.6% 21 0.7% 0.9 2020 3,168 20 0.6% 5 0.2% 3.8 2019 3,148 12 0.4% 0 0.0% -- 2018 3,137 6 0.2% 0 0.0% -- 2017 3,131 0 0.0% 6 0.2% 0.0 2016 3,131 0 0.0% (40) -1.3% -- 2015 3,131 0 0.0% 38 1.3% 0.0 2014 3,131 0 0.0% 73 2.5% 0.0 2013 3,131 146 4.9% 80 2.9% 1.8 2012 2,985 0 0.0% 23 0.8% 0.0 2011 2,985 0 0.0% 4 0.1% 0.0 2010 2,985 0 0.0% 24 0.9% 0.0 2009 2,985 20 0.7% (15) -0.5% -- 2008 2,965 0 0.0% 10 0.4% 0.0 2007 2,965 0 0.0% (10) -0.3% -- 2006 2,965 0 0.0% 30 1.1% 0.0 2005 2,965 0 0.0% 5 0.2% 0.0

SUBMARKET VACANCY AND RENT HISTORY AND FORECAST

Vacancy Asking Rent Effective Rent

Year Units Percent Ppts Chg Per Unit Per SF % Growth Per Unit Per SF 2021 193 6.1% (0.1) $1,320 $1.39 0.6% $1,298 $1.37 2020 194 6.1% 0.4 $1,312 $1.39 1.0% $1,290 $1.36 2019 179 5.7% 0.4 $1,299 $1.37 1.1% $1,278 $1.35 2018 168 5.3% 0.2 $1,284 $1.36 0.5% $1,265 $1.34 2017 162 5.2% (0.2) $1,278 $1.35 3.4% $1,260 $1.33 2016 169 5.4% 1.3 $1,236 $1.31 0.4% $1,212 $1.28 2015 129 4.1% (1.2) $1,232 $1.30 5.5% $1,216 $1.28 2014 166 5.3% (2.3) $1,168 $1.23 2.9% $1,156 $1.22 2013 239 7.6% 1.8 $1,135 $1.20 3.0% $1,116 $1.18 2012 173 5.8% (0.8) $1,102 $1.20 2.4% $1,091 $1.19 2011 196 6.6% (0.1) $1,076 $1.17 1.1% $1,065 $1.16 2010 200 6.7% (0.8) $1,065 $1.16 0.9% $1,054 $1.15 2009 225 7.5% 1.1 $1,056 $1.15 0.6% $1,045 $1.14 2008 190 6.4% (0.3) $1,049 $1.15 0.1% $1,038 $1.13 2007 200 6.8% 0.3 $1,048 $1.14 4.1% $1,037 $1.13 2006 191 6.4% (1.0) $1,006 $1.10 3.4% $996 $1.09 2005 221 7.5% (0.2) $973 $1.06 1.9% $963 $1.05

SUBMARKET SALES HISTORY

Volume Price

Year No. of Sales Units Volume Turnover Median Per Unit Avg Price YTD 3 354 $50,080,002 11.3% $115,000 $16,693,333 2016 1 8 $785,000 0.3% $98,125 $785,000 2015 6 613 $71,906,998 19.6% $86,864 $11,984,500 2014 5 255 $25,405,001 8.1% $79,225 $5,081,000 2013 6 773 $93,662,003 24.7% $79,533 $15,610,333 2012 1 4 $0 0.1% -- -- 2011 7 107 $8,070,000 3.6% $52,500 $1,614,000 2010 2 79 $1,250,000 2.6% $178,571 $1,250,000 2009 1 10 $355,000 0.3% $35,500 $355,000 2008 2 346 $21,250,000 11.7% $62,453 $10,625,000 2007 7 315 $28,704,500 10.6% $108,313 $4,100,643 2006 2 216 $20,973,499 7.3% $108,921 $10,486,750 2005 2 168 $12,051,500 5.7% $88,723 $6,025,750

4 & 5 STAR SUPPLY AND DEMAND HISTORY

Inventory Net Absorption

Year Units Growth % Growth Units % Growth Construction Ratio 2017 ------2016 812 0 0.0% (20) -2.6% -- 2015 812 0 0.0% 31 4.2% 0.0 2014 812 0 0.0% 67 9.9% 0.0 2013 812 146 21.9% 75 12.4% 1.9 2012 666 0 0.0% 5 0.8% 0.0 2011 666 0 0.0% (5) -0.8% -- 2010 666 0 0.0% 4 0.7% 0.0 2009 666 0 0.0% (6) -1.0% -- 2008 666 0 0.0% 7 1.2% 0.0 2007 666 0 0.0% (12) -2.0% -- 2006 666 0 0.0% 13 2.2% 0.0 2005 666 0 0.0% (9) -1.5% --

4 & 5 STAR VACANCY AND RENT HISTORY

Vacancy Asking Rent Effective Rent

Year Percent Ppts Chg Per Unit Per SF % Growth Per Unit Per SF 2021 8.1% (0.2) $1,596 $1.39 -0.1% -- 2020 8.3% 0.3 $1,598 $1.40 0.2% -- 2019 7.9% 0.3 $1,596 $1.39 0.1% -- 2018 7.6% 0.1 $1,593 $1.39 -0.6% -- 2017 7.5% 0.6 $1,602 $1.40 3.9% -- 2016 6.9% 2.5 $1,542 $1.35 -4.2% $1,526 $1.33 2015 4.4% (3.8) $1,609 $1.41 3.8% $1,593 $1.39 2014 8.3% (8.3) $1,550 $1.35 4.0% $1,535 $1.34 2013 16.5% 7.0 $1,491 $1.30 4.8% $1,464 $1.28 2012 9.5% (0.8) $1,423 $1.33 6.0% $1,408 $1.31 2011 10.2% 0.8 $1,342 $1.25 2.3% $1,329 $1.24 2010 9.5% (0.6) $1,312 $1.22 2.0% $1,299 $1.21 2009 10.1% 0.9 $1,286 $1.20 2.9% $1,273 $1.19 2008 9.2% (1.1) $1,249 $1.16 -3.3% $1,236 $1.15 2007 10.2% 1.8 $1,291 $1.20 2.3% $1,278 $1.19 2006 8.4% (2.0) $1,261 $1.18 5.6% $1,249 $1.16 2005 10.4% 1.4 $1,194 $1.11 5.2% $1,182 $1.10

4 & 5 STAR SALES HISTORY

Volume Price

Year Sales Units Volume Turnover Per Unit Avg Price YTD 0 0 $0 0.0% -- -- 2016 0 0 $0 0.0% -- -- 2015 1 146 $32,115,002 18.0% $219,966 $32,115,000 2014 0 0 $0 0.0% -- -- 2013 1 266 $41,952,000 32.8% $157,714 $41,952,000 2012 0 0 $0 0.0% -- -- 2011 0 0 $0 0.0% -- -- 2010 0 0 $0 0.0% -- -- 2009 0 0 $0 0.0% -- -- 2008 0 0 $0 0.0% -- -- 2007 0 0 $0 0.0% -- -- 2006 0 0 $0 0.0% -- -- 2005 0 0 $0 0.0% -- --

3 STAR SUPPLY AND DEMAND HISTORY

Inventory Net Absorption

Year Units Growth % Growth Units % Growth Construction Ratio 2017 ------2016 1,290 0 0.0% 0 0.0% -- 2015 1,290 0 0.0% (7) -0.6% -- 2014 1,290 0 0.0% 5 0.4% 0.0 2013 1,290 0 0.0% (9) -0.7% -- 2012 1,290 0 0.0% 2 0.2% 0.0 2011 1,290 0 0.0% 6 0.5% 0.0 2010 1,290 0 0.0% 11 0.9% 0.0 2009 1,290 20 1.6% 2 0.2% 10.0 2008 1,270 0 0.0% 3 0.2% 0.0 2007 1,270 0 0.0% 1 0.1% 0.0 2006 1,270 0 0.0% 9 0.7% 0.0 2005 1,270 0 0.0% 9 0.8% 0.0

3 STAR VACANCY AND RENT HISTORY

Vacancy Asking Rent Effective Rent

Year Percent Ppts Chg Per Unit Per SF % Growth Per Unit Per SF 2021 5.6% (0.1) $1,249 $1.39 0.7% -- 2020 5.6% 0.4 $1,240 $1.38 1.1% -- 2019 5.2% 0.3 $1,226 $1.36 1.2% -- 2018 4.9% 0.2 $1,211 $1.35 0.6% -- 2017 4.8% 0.0 $1,203 $1.34 2.2% -- 2016 4.7% 0.0 $1,178 $1.31 2.0% $1,157 $1.29 2015 4.7% 0.5 $1,155 $1.29 6.5% $1,101 $1.23 2014 4.2% (0.4) $1,084 $1.21 1.7% $1,055 $1.18 2013 4.6% 0.7 $1,066 $1.19 2.1% $1,052 $1.17 2012 3.9% (0.2) $1,044 $1.16 0.9% $1,034 $1.15 2011 4.0% (0.5) $1,035 $1.15 0.7% $1,025 $1.14 2010 4.5% (0.9) $1,028 $1.14 0.2% $1,018 $1.13 2009 5.3% 1.3 $1,026 $1.14 -0.6% $1,016 $1.13 2008 4.0% (0.2) $1,032 $1.16 1.8% $1,021 $1.15 2007 4.3% (0.1) $1,014 $1.14 5.4% $1,004 $1.13 2006 4.3% (0.7) $962 $1.08 2.4% $952 $1.07 2005 5.0% (0.7) $939 $1.06 0.3% $930 $1.05

3 STAR SALES HISTORY

Volume Price

Year Sales Units Volume Turnover Per Unit Avg Price YTD 2 282 $41,799,999 0.0% $135,126 $20,900,000 2016 0 0 $0 0.0% -- -- 2015 0 0 $0 0.0% -- -- 2014 2 231 $23,975,000 17.9% $96,956 $11,987,500 2013 3 490 $50,825,001 38.0% $92,548 $16,941,666 2012 0 0 $0 0.0% -- -- 2011 0 0 $0 0.0% -- -- 2010 0 0 $0 0.0% -- -- 2009 0 0 $0 0.0% -- -- 2008 0 0 $0 0.0% -- -- 2007 2 205 $13,490,500 16.1% $78,150 $6,745,250 2006 1 208 $20,000,000 16.4% $96,154 $20,000,000 2005 1 160 $11,191,500 12.6% $69,947 $11,191,500

PREPARED BY

Robert Petrich Overview Chicago Apartment

12 Mo. Deliveries in Units 12 Mo. Net Absorption Vacancy Rate 12 Mo. Rent Growth 7,658 4,380 6.2% 2.9%

Market Analyst: Brandon Frankel - [email protected]

While Chicago¶s supply wave severely intensified in 2016, the metro¶s apartment fundamentals remain sturdy. Renter preferences continue to change, but developers are targeting new apartment construction in desirable locations, such as along the N. Milwaukee Avenue corridor in the North Lakefront submarket. While employment growth continues to expand Chicago¶s renter-base, corporate relocations play a role in determining hotspots for optimal renter demand. However, with new deliveries beginning to outpace demand, and household income growth lagging rent growth, landlords are tempering new rent escalations. Finally, while Downtown Chicago garners the lion¶s share of institutional investment, suburban assets are progressively more attractive, especially those within proximity of a transit station.

KEY INDICATORS

Under Current Quarter Units Vacancy Rate Asking Rent Effective Rent Net Absorption Net Deliveries Construction 4 & 5 Star 79,425 9.0% $2,037 $1,988 1,177 751 14,951 3 Star 173,434 5.4% $1,166 $1,146 55 87 1,603 1 & 2 Star 165,456 5.6% N/A N/A (40) 0 9 Market 418,315 6.2% $1,295 $1,275 1,192 838 16,563

Annual Trends 12 Month Change Hist. Avg. Fcst. Avg. Peak When Trough When

Vacancy 0.5% 6.6% 7.2% 8.8% 2004 Q3 3.5% 2000 Q1 Net Absorption 4,380 2,280 4,541 7,044 2015 Q1 (4,048) 2004 Q1 Net Deliveries 7,658 3,026 5,583 8,533 2016 Q4 497 2012 Q2 Rent Growth 2.9% 2.2% 2.1% 6.6% 2007 Q2 -2.4% 2009 Q4 Effective Rent Growth 5.0% 2.0% 2.2% 6.6% 2007 Q2 -2.5% 2009 Q4 Sales ($ millions) $4,079 $2,357 N/A $5,410 2016 Q4 $506 2009 Q3

FUNDAMENTALS

Chicago¶s vacancy picture remains favorable on the whole, with a few recently supply- inundated submarkets witnessing vacancy expansions. For instance, the Downtown and Naperville/Lisle submarkets¶vacancy increases are considerably higher when compared to the metros slow vacancy ascent. Commonalities among these submarkets include substantial and growing employment bases, which drive renter-demand and subsequent apartment development. Many of Chicago¶s submarkets with tight vacancies are largely overlooked by developers so far this cycle, the majority of which are distant from Downtown. Moreover, Chicago¶s vacancy is slightly higher than competing Midwestern metros, such as Minneapolis and Milwaukee. However, supply-side pressure played a role in vacancy expansion, while vacancies were more stagnant in both Minneapolis and Milwaukee.

Chicago¶s residents continue to move to warmer climates. Net migration ran negative once again in 2016, with about 30,000 residents moving out. High rents, cold weather, and an insufficient state budget all factor into Chicago¶s negative net migration trend. The Chicago metropolitan area has not has a positive net migration quarter since 2000.

Sustained employment gains in Chicago persevered in 2016. The metro added nearly 60,000 new jobs in 2016, only slightly below employment increases in both 2014 and 2015. Job growth continues to benefit from hiring in certain sectors including professional and business services, leisure and hospitality, and construction. Together, the three sectors account for nearly 75% of new job creation in 2016. Inhibiting Chicago¶s employment growth is the manufacturing and government sectors, whose growth remained stagnant in 2016. Local government employment ran negative in 2016, and federal and state payrolls in the metro are still shrinking. Given Illinois¶ budgetary woes and ongoing pension reform battle, the government sector will likely remain a drag on the economy for some time to come.

Chicago¶s renter-base seeks apartment communities in walkable, transit-oriented locations within proximity to employment nodes. For instance, CTA accessible lots with heavy retail presences are found in neighborhoods including Fulton Market and Wicker Park, two of the most heavily targeted areas by developers this cycle. Both neighborhoods boast an average walk score of 93, within the numeric range defined as a ³Walkers Paradise´

Leasing velocity continues to be steady in new deliveries, assuming completions are during warmer months. In suburban Naperville for instance, the Avant at the Arboretum, a 4 Star 310-unit apartment community, completed in 13Q4 and suffered a two-year lease-up period, slowed considerably by its end-of-year delivery. Chicago renters are less inclined to move during the cold winters, not to mention the family renters that may need to change their child¶s school in the middle of the school year. Overall, newly constructed 4 & 5 Star communities Downtown are retaining a one-year average lease-up, with new 4 & 5 Star suburban apartments taking slightly longer.

Chicago¶s suburban corporations are increasingly seeking space Downtown, reinforcing 4 & 5 Star apartment demand. However, the impact on suburban demand has been muted, as Loop-focused moves are often followed by companies taking the newly vacant suburban space. For example, Kraft-Heinz moved-into its 170,000 SF space in the Aon Center in 16Q1, leaving behind its old 700,000 SF suburban Northfield location. Medline Industries subsequently purchased the building in March, 2016 and began moving into Kraft-Heinz¶s former space in 16Q4. In 2013, Capital One ditched its 558,859 SF location in suburban Mettawa for its current location at 77 S. Wacker Drive Downtown. By 14Q3, the pharmaceutical company AbbVie began moving 2,000 employees to Mettawa as part of a sublease which backfilled the entire old Capital One space. More recently, McDonald¶s, announced its move from suburban Oak Brook to Fulton Market in 16Q2, which will occupy 500,000 SF upon the buildings anticipated completion in 2018. While no tenant has yet divulged plans to backfill the space, CEO Steve Easterbrook highlighted an upgraded talent pool as a key reason for the move, a common reason for relocations Downtown.

NET ABSORPTION, NET DELIVERIES AND VACANCY RATE

Employment growth in Chicago increasingly relies on the health of the professional and business services sector. Fortunately, the tech and management jobs that help comprise this sector grew at a rapid pace in 2016. As a result, nearly 50% of Chicago¶s net employment gains in 2016 were from the professional and business services sector. Tech companies continue to explore Chicago¶s West Loop and River North neighborhoods, while the growing Goose Island area provides the engine for future tech expansions. However, while Chicago gained 60,000 jobs in 2016, the metro actually took a step back from its more impressive 75,000 jobs gained in 2015. Moreover, ¶s employment gains represent the lowest employment increase the metro has witnessed since 2011. The largest culprit in this drop-off, government employment, fell by nearly 10,000 jobs in 2016 when compared with 2015. More specifically, while state government witnessed employment stagnation, local government job growth ran negative in 2016.

Fully recovered from the downturn, Chicago has intrinsic advantages that should provide the city with a solid economic future. Two of the Windy City¶s major advantages are its central, well-served location for national and international travel and its diverse workforce, which furnishes an employee base that has a broad set of skills. Plus, this is a downright cheap place to run a business compared with New York or San Francisco. These attributes recently helped the metro land the headquarters of Fortune 500 companies Archer Daniels Midland and ConAgra Foods. They also helped spur full recoveries in the advertising/PR, management, computer programming, and administrative/support-services subsectors, making the professional and business services sector one of the biggest drivers of job growth in Chicago. It should remain a major economic engine throughout the forecast, along with the education and health services and leisure and hospitality sectors. Billions have been invested during the hospital and medical-facility building boom across the city and suburbs. Enrollments at the metro¶s major universities have increased in recent years, and these institutions have invested in their campuses²the University of Chicago has $1.5 billion in capital projects in the pipeline. Tourism and spending in Chicago have fully bounced back, and this industry is contributing billions to the local economy.

Pension shortfalls are a looming risk to the already moderate job growth forecast. After the $225 million property tax hike began enforcement in early 2016 to help cover pension shortfalls, in summer 2016 Mayor Rahm Emanuel floated the idea of increasing water and sewer rates. City employees are also likely to be contributing a bigger portion of their paychecks to pensions. Chicago already has one of the highest tax rates of major cities in the country, and Moody¶s Investors Service reduced its credit rating last year. Continued escalation of taxes could further affect landlords¶operating expenses, cause households¶disposable income to dip, and reduce residential and business growth. Even though job gains here through the end of 2021 will probably rank in the bottom half of the pack, on an absolute basis, over 200,000 jobs could be created. That would be among the highest number of jobs added in the country and form the base for CRE investments.

Infrastructure improvements will create CRE opportunities throughout Chicagoland. Multiple transit initiatives are taking place across the metro to open new areas to investment or strengthen existing locations. For instance, the Red and Purple Modernization Program (RPM), is an initiative designed to rebuild the Red Line from Belmont to Howard and the Purple Line from Belmont to Linden. The project, scheduled to begin this year, scored success when it was announced in early 2017 that $1.1 billion in federal grants would help fund the project, along with tax increment financing. Additionally, in early 2017 Mayor Emanuel announced a $50 million project to improve the Garfield Green Line station in Washington Park. While the Garfield Gateway project will not begin until 2018, additional transit upgrades are already underway. In the East Loop, work started in 15Q2 on a $75 million station at Washington and Wabash that will replace and consolidate two nearby Wabash stations. The CTA expects it to be one of the busiest stations in the system upon completion in 2017. In Southwest Chicago, city officials announced the start of a $23 million overhaul of the Illinois Medical District Blue Line station in 17Q1. Upgrades to the station and its concourse will be made to one of the busiest stations on the Blue Line, adding to the 40-plus CTA stations that have been renovated since 2011.

JOB GROWTH IN THOUSANDS LAST 6 MONTHS BY INDUSTRY Source: Moody's Analytics

EMPLOYMENT BY INDUSTRY

Current Jobs Current Growth 10-Year Growth Forecast Growth

NAICS Industry Jobs LQ Metro U.S. Metro U.S. Metro U.S.

Manufacturing 413 1.04 -0.3% 0.3% -1.5% -1.3% -0.4% -1.0%

Trade, Transportation and Utilities 947 1.08 0.6% 0.7% 0.2% 0.4% 0.6% 0.6%

Retail Trade 470 0.92 0.1% 0.4% -0.1% 0.3% 0.7% 0.7%

Financial Activities 308 1.14 3.6% 2.2% -1.0% 0.0% 0.5% 0.6%

Government 551 0.77 0.6% 0.7% -0.2% 0.1% 0.4% 0.7%

Natural Resources, Mining and Construction 175 0.72 0.2% 2.4% -2.5% -1.2% 1.9% 1.9%

Education and Health Services 720 0.98 1.4% 2.3% 2.2% 2.2% 0.8% 1.3%

Professional and Business Services 819 1.24 -0.1% 3.2% 1.1% 1.4% 1.6% 1.5%

Information 82 0.93 1.5% -1.2% -1.2% -0.9% 0.3% 0.1%

Leisure and Hospitality 471 0.93 1.3% 1.7% 1.6% 1.7% 0.8% 1.3%

Other Services 193 1.05 -0.4% 1.0% -0.3% 0.4% 0.3% 0.3%

Total Employment 4,678 1.00 0.7% 1.5% 0.3% 0.6% 0.7% 0.8% Source: Moody's Analytics

ANNUAL JOB GROWTH Source: Moody's Analytics

DEMOGRAPHIC TRENDS

Current Level Current Growth 10-Year Growth Forecast Growth

Demographic Category Metro U.S. Metro U.S. Metro U.S. Metro U.S. Population 9,544 324,950 0.1% 0.7% 0.2% 0.8% 0.1% 0.7%

Households 3,625 125,118 0.7% 1.2% 0.5% 0.9% 0.7% 1.1%

Median Household Income $67,312 $58,196 3.1% 2.6% 1.2% 1.6% 3.3% 3.2%

Labor Force 4,893 160,201 -1.0% 0.6% 0.2% 0.5% 0.5% 0.7%

Unemployment 4.7% 4.5% 5.6% 4.8% 7.9% 7.0% 4.4% 4.7% Source: Moody's Analytics

POPULATION GROWTH LABOR FORCE GROWTH INCOME GROWTH

CUMULATIVE NET ABSORPTION

Chicago¶s 2016 supply surge was heavily concentrated Downtown. More than half of new units delivered in 2016 were located in a Downtown neighborhood, albeit scattered throughout the submarket. However, development proposals in Downtown¶s gentrifying neighborhoods, Pilsen and Little Italy, are accelerating as its east-to-west development trajectory progresses. As available land in the Loop lessens, developers are increasingly relying on the revitalizations of those neighborhoods which involve the conversions of industrial, office and condo properties to feed renter appetite for residential units Downtown and in close-in neighborhoods.

Suburban developers take advantage of Chicago¶s Transit Oriented Development reform, targeting lots nearby public transportation for development. The 2015 reform allows for apartment developers building within ½ mile of a transit station to potentially provide less parking than the 1:2 parking to unit ratio agreed upon in the 2013 ordinance, in effect reducing construction costs. Since the start of 2016, all apartment deliveries within the geographic boundaries of the ordinance took advantage of new regulations. The first known developer to benefit from the 2015 ordinance supplement, Centrum Partners, completed its 35-unit community in 16Q2 in the North Lakefront submarket. The apartment, Centrum Lakeview, is adjacent to the Paulina Brown Line station and contains seven parking spaces²had this been built without the new ordinance, Centrum would have needed to build at minimum an additional ten spaces.

In Chicago¶s new communities, one-bedrooms are the most commonly constructed unit-type. However, Downtown developers are more inclined to build studios than suburban developers, as ¶s deliveries Downtown averaged 10% more studios per building than suburban new construction. In effect, Downtown¶s average unit size runs smaller than in suburban Chicago, about 5% below that of suburban units in 2016. Meanwhile, one-, two, and three-bedroom unit allocations are relatively comparable in Downtown and suburban Chicago.

NET DELIVERIES

UNDER CONSTRUCTION PROJECTS

Property Name Submarket Stories Units Start Yr. Deliv. Yr Developer/Owner Alta Roosevelt Downtown Chicago 33 496 2016 2019 Wood Partners One Bennett Park Downtown Chicago 70 340 2016 2019 The Related Companie... Ancora (Part of Riverli... Downtown Chicago 29 420 2016 2019 CMK Companies Buckingham Place Des Plains/Arlington Heig... 5 270 2017 2019 Dearborn-Buckingham ... SoMi Downtown Chicago 46 500 2017 2018 MB Real Estate One South Halsted Downtown Chicago 44 492 2017 2018 F & F Realty, Ltd. 347 N Halsted St Downtown Chicago 38 373 2016 2018 Cardiff Mason Develo... Atrium Village Phase I North Lakefront 30 405 2016 2018 Onni Group 1136 S Wabash Ave Downtown Chicago 24 320 2016 2018 Kgiles LLC 48 E Cermak Rd Downtown Chicago 19 250 2016 2018 Draper and Kramer De... Solstice on the Park South Lakefront 24 250 2016 2018 Silliman Group, LLC One Grant Park Downtown Chicago 76 792 2016 2018 Crescent Heights North Park Downtown Chicago 50 444 2016 2018 Jupiter Realty Corpo... Residential Southwest Chicago 16 230 2017 2018 Higgins Development ... 1001 W Chicago Ave Downtown Chicago 13 363 2016 2018 Bond Companies 170 N Green St Downtown Chicago 17 322 2017 2018 Bridgford Foods Corp... Lakeside Village of Oak... Northeast DuPage County 4 315 2017 2018 InterForum Holdings Promenade at Founders S... Porter County 3 304 2017 2018 Holladay Properties 3Eleven Downtown Chicago 25 245 2016 2018 John Buck Company Metro 59 Phase II Naperville/Lisle 5 404 2015 2017 Next Generation Deve... The Sinclair North Lakefront 35 390 2015 2017 Fifield Capital Part... Optima Signature Downtown Chicago 57 381 2015 2017 Optima, Inc. Landmark West Loop - 10... Downtown Chicago 30 300 2016 2017 Related Midwest, LLC The Residences at Hamil... Northeast DuPage County 4 297 2016 2017 M & R Development Springs at Kenosha Apar... Kenosha 2 280 2016 2017 Continental Properti... The Emerson West Cook 20 271 2016 2017 Clark Street Develop... LINEA Downtown Chicago 33 265 2016 2017 Moceri & Roszak Six Forty North Wells Downtown Chicago 22 251 2016 2017 JDL Development Springs at Orchard Road... Aurora 2 240 2016 2017 Continental Properti... Fountain Ridge Kenosha 227 2016 2017 Lexington Management The Gallery on Wells Downtown Chicago 39 442 2016 2017 Magellan Development... 500 Station - Phase II Naperville/Lisle 5 264 2015 2017 Evercore Companies L... The Hudson North Lakefront 25 240 2015 2017 Onni Group Deer Park Crossing Southwest Lake County 4 236 2016 2017 REVA Development Par...

Against the backdrop of ¶s strong rent growth, Chicago¶s 2016 rent growth appears sluggish. Rents grew by just under 2% in 2016, about half the gains witnessed in 2015. While the unceasing onslaught of supply is one catalyst for weaker growth, post-recession rent growth is nearly double that of post-recession median household income growth. Rents are increasingly becoming out of reach for a large numbers of renters, a possible reason for the recent slowdown, not to mention migration exodus.

Chicago¶s Downtown achieves a significant premium over close-in submarkets, providing renters an opportunity to save money while maintaining proximity to Downtown. While the median asking rents across the metro falls below $1,300/month, Chicago¶s Downtown landlords ask for about $2,300/month on average. With landlords in adjacent submarkets such as North Lakefront (60% cheaper) and South Lakefront (half the Downtown average), providing significant discounts, many renters are willing to spend more time in commute to live there. Moreover, a large market for renting single-family homes prevails in North Lakefront, as renters chose to share space with a roommate for a discounted rent.

ASKING RENT LEVELS AND ANNUAL GROWTH

EXPENSES

Operating Expenses Per SF Capital Expenditures Per SF

Market Mgmt. Admin. Payroll Water Utilities Maint. Insurance Taxes Appliance Structual Other Total

4 & 5 Star Chicago $0.82 $1.15 $2.63 $0.34 $1.17 $2.14 $0.37 $3.00 $0.10 $0.44 $0.94 $13.10 CBD $0.75 $1.25 $3.67 $0.25 $0.94 $2.57 $0.39 $3.06 $0.10 $0.44 $0.95 $14.36 Suburban $0.90 $1.04 $1.59 $0.44 $1.41 $1.71 $0.34 $2.93 $0.11 $0.44 $0.93 $11.84 3 Star Chicago $0.77 $1.10 $1.07 $0.29 $1.10 $1.79 $0.33 $1.79 $0.09 $0.41 $0.65 $9.39 CBD $0.69 $1.18 $1.26 $0.24 $0.90 $2.33 $0.35 $1.81 $0.09 $0.42 $0.66 $9.92 Suburban $0.84 $1.02 $0.88 $0.35 $1.30 $1.25 $0.31 $1.76 $0.09 $0.41 $0.64 $8.85 1 & 2 Star Chicago $0.52 $0.71 $0.97 $0.27 $0.85 $1.22 $0.30 $1.06 $0.08 $0.39 $0.60 $6.99 CBD $0.49 $0.82 $1.08 $0.22 $0.85 $1.50 $0.33 $0.98 $0.09 $0.40 $0.62 $7.39 Suburban $0.55 $0.60 $0.86 $0.31 $0.85 $0.95 $0.27 $1.14 $0.07 $0.39 $0.59 $6.58 * Expenses are estimated using NCREIF and IREM data using the narrowest possible geographical definition ranging from zip code to region.

SALES

While Chicago¶s Downtown assets remain heavily targeted by investors, suburban assets are increasingly attractive to dealmakers. The nearly $420,000/unit paid for the 115-unit 4 Star Park 205 in 15Q4 is one of the highest per-unit prices ever paid for a suburban multifamily asset in Chicago. The community delivered just a few months before trading hands to L&B Realty Advisors, and is next to Whole Foods and the Park Ridge Metra Station. While the price per unit is five times that of the Chicago metro price per unit in 2016, the 5% pro forma cap rate coincides with the metro average. Additionally, the Woodview Apartments, a 241-unit 5 Star suburban asset, traded in 16Q4 for over $330,000/unit at a 5% cap rate. Similar to Park 205, the Woodview Apartments deal represents new construction selling shortly after delivering. The community was purchased by LaSalle Investment Management, and is located along I-94 in Deerfield.

Pricing Downtown continues to soar, setting records in the process. Most recently, 850 N. Lake Shore Drive, a 198-unit 5 Star community located in Downtown¶s Streeterville neighborhood sold for over $700,000/unit in 16Q2. The selling group, a joint venture comprised of Integrated Development Group and National Real Estate Advisors, had redeveloped the asset prior to trading it. As part of the refurbishment process, the JV knocked down walls to create larger units and high-quality finishes. The JV initially purchased the asset from Northwestern University in 2008, which was using the building for student housing. The community not only sold for more than three times the Downtown Submarket average over the past 12 months, but achieved higher pricing than the notable sales of 5 Star assets 111 West Wacker ($651,240/unit in 15Q1) and North Water Apartments ($603,799/unit in 16Q1).

SALES VOLUME AND MEDIAN PRICE

HISTORICAL SALES TRANSACTIONS

Price Per Property Submarket Sale Date Price Units Built Buyer Name Unit

1237 N Milwaukee Ave North Lakefront 5/9/2017 $31,470,000 60 $524,500 2017 CIM Group LP

1643 N Milwaukee Ave North Lakefront 5/9/2017 $26,280,000 36 $730,000 2016 CIM Group LP

Stratford Place, 232 North DuPage County 5/3/2017 $53,000,000 342 $154,971 1991 TLC Management Co. Butterfield Dr The Commons at Town Southwest Lake Inland Real Estate Center, 1255 Town Center 5/3/2017 $23,000,000 85 $270,588 2010 County Group of C... Rd Mont Clare, 7171 W West Cook 4/25/2017 $30,500,000 281 $108,541 1966 Rockwell Partners Gunnison St The Preserve At Osprey Blackstone Real Estate Northeast Lake County 4/13/2017 $40,411,520 483 $83,668 2000 Lake, 2025 Greystem Cir Income...

325 W Fullerton Pkwy North Lakefront 4/13/2017 $18,700,000 48 $389,583 1917 Newcastle Limited

Ashford at Geneva, 350 Oak Residential Fox River Valley 3/30/2017 $35,450,000 226 $156,858 1990 Brittany Ct Partners, LLC Princeton Park Homes, EquiShares Real Southwest Chicago 3/29/2017 $23,742,500 908 $26,148 1946 9119 S Stewart Ave Estate Compan... Madison at Racine, 1164 American Realty Downtown Chicago 3/14/2017 $99,600,000 216 $461,111 2014 W Madison St Advisors The Aberdeen West Loop, Waterton Associates Downtown Chicago 3/8/2017 $40,000,000 103 $388,350 2014 4 N Aberdeen St LLC East Park Tower, 5242 S Blumberg & Freilich South Lakefront 3/1/2017 $23,500,000 140 $167,857 1922 Hyde Park Blvd Equities Astor House, 1340 N North Lakefront 2/23/2017 $82,600,000 218 $378,899 1969 Group Fox Astor St 65 East Scott Street North Lakefront 2/23/2017 $67,000,000 230 $291,304 1971 Group Fox Building, 65 E Scott St 3905-3929 N Western Ave, North Lakefront 2/21/2017 $14,125,000 30 $470,833 Vestian Group Inc. 3905 N Western Ave Dwell at Naperville, 1995 Redwood Capital Naperville/Lisle 2/16/2017 $84,000,000 400 $210,000 1998 Yellowstone Dr Group, LLC The Laramar Group, 4651 N Greenview Ave North Lakefront 2/16/2017 $12,200,000 36 $338,889 LLC, Luber...

625 W Wrightwood Ave North Lakefront 1/20/2017 $19,733,500 87 $226,822 Beal Properties, LLC

Hawthorn Ridge, 3211 Fox Heartland Realty Naperville/Lisle 1/12/2017 $13,300,000 176 $75,568 1976 St Investors, I... The Park Towers Apartments, 3905 Tower Southern Cook County 12/31/2016 $23,090,440 270 $85,520 1974 Morgan Communities Dr Axis Apartments & Lofts, Downtown Chicago 12/29/2016 $225,000,000 615 $365,854 1986 Group Fox 441 E Erie St Village Park of Palatine, Far Northwest LEM Capital, Origin 12/28/2016 $48,250,000 448 $107,701 1977 860 W Panorama Dr Suburban Cook Investmen...

PERFORMANCE

Metro National Metro National Metro National Average Annual Forecast Risk-Adjusted 3.3% 3.5% Historical Volatility 7.7% 7.1% 0.4 0.5 Return Return Forecast Income Return Forecast Appreciation Return -2.0% -1.7% 0.6 0.4 Change

Average Annual Forecast Return -0.6% 9.3%

Historical Volatility 5.9% 11.0%

Risk-Adjusted Return -0.1 1.3

Appreciation Year Price Growth Income Return NOI Growth Rent Growth Total Return Cap Rate Return 2021 1.7% -0.4% 5.5% 2.4% 1.6% 5.1% 5.6% 2020 1.4% -0.7% 5.5% 2.5% 1.9% 4.7% 5.5% 2019 0.5% -1.7% 5.4% 1.8% 2.3% 3.7% 5.5% 2018 -1.9% -4.0% 5.3% 1.2% 2.1% 1.1% 5.4% 2017 -3.7% -5.7% 5.0% 2.0% 3.4% -0.9% 5.2% 2016 6.3% 4.0% 5.0% 2.9% 2.1% 9.1% 4.9% 2015 7.9% 5.5% 5.3% 2.4% 3.5% 11.0% 5.1% 2014 8.0% 5.6% 5.5% 2.4% 2.3% 11.4% 5.4% 2013 12.3% 9.8% 6.0% 3.3% 2.7% 16.2% 5.7% 2012 10.2% 7.8% 6.4% 3.3% 2.1% 14.5% 6.2% 2011 19.2% 16.5% 7.2% 2.9% 1.3% 24.5% 6.6% 2010 2.0% -0.2% 7.8% -0.1% 1.7% 7.6% 7.6% 2009 -16.5% -18.1% 7.2% -4.0% -2.4% -11.9% 7.8%

CHICAGO SUBMARKETS

SUBMARKET INVENTORIES

Inventory 12 Month Deliveries Under Construction

No. Market Bldgs Units % Metro Rank Bldgs Units Percent Rank Bldgs Units Percent Rank 1 Aurora 86 3,939 0.9% 27 2 89 2.3% 8 1 240 6.1% 5 2 DeKalb 58 4,060 1.0% 25 0 0 0.0% 1 16 0.4% 21 3 DeKalb County 4 116 0.0% 41 0 0 0.0% 0 0.0% 4 Des Plains/Arlington ... 279 15,563 3.7% 10 1 0 0.0% 2 315 2.0% 12 5 Downtown Chicago 258 35,324 8.5% 3 16 3,531 10.0% 3 38 8,812 24.9% 1 6 East Suburban McHenry 60 2,400 0.6% 33 1 0 0.0% 1 40 1.7% 15 7 Elgin/Dundee 94 3,683 0.9% 28 0 0 0.0% 1 45 1.2% 17 8 Evanston 196 6,725 1.6% 21 2 112 1.7% 11 1 101 1.5% 16 9 Far North Chicago 988 26,969 6.4% 4 2 20 0.1% 20 0 0.0% 10 Far North Suburban Co... 55 2,498 0.6% 32 2 383 15.3% 2 2 89 3.6% 11 11 Far Northwest Suburba... 148 16,267 3.9% 9 2 0 0.0% 1 36 0.2% 23 12 Fox River Valley 39 3,131 0.7% 29 0 0 0.0% 0 0.0% 13 Glen Ellyn to West Ch... 105 8,981 2.1% 15 1 149 1.7% 12 0 0.0% 14 Grundy County 14 577 0.1% 38 0 0 0.0% 0 0.0% 15 Jasper County 1 71 0.0% 42 0 0 0.0% 0 0.0% 16 Kendall County 17 1,334 0.3% 37 0 0 0.0% 1 200 15.0% 2 17 Kenosha 170 7,292 1.8% 18 3 148 2.0% 9 6 693 9.5% 3 18 Naperville/Lisle 112 17,791 4.3% 7 3 154 0.9% 15 3 711 4.0% 10 19 Near North Suburban C... 140 4,844 1.2% 24 1 6 0.1% 18 0 0.0% 20 Newton County 4 40 0.0% 43 0 0 0.0% 0 0.0% 21 North DuPage County 54 6,842 1.6% 20 0 0 0.0% 0 0.0% 22 North Lake County IN 135 8,823 2.1% 16 0 0 0.0% 0 0.0% 23 North Lakefront 2,255 65,071 15.5% 1 40 1,274 2.0% 10 28 2,659 4.1% 8 24 North Will County 129 7,837 1.9% 17 3 272 3.5% 7 1 27 0.3% 22 25 Northeast DuPage Coun... 239 10,251 2.4% 13 2 373 3.6% 6 2 612 6.0% 6 26 Northeast Lake County 211 11,081 2.6% 11 0 0 0.0% 0 0.0% 27 Northwest Chicago 979 17,746 4.2% 8 4 128 0.7% 17 1 20 0.1% 24 28 Northwest Lake County 64 3,053 0.7% 30 0 0 0.0% 0 0.0% 29 Porter County 77 6,983 1.7% 19 2 260 3.7% 5 2 363 5.2% 7 30 South Chicago 100 2,399 0.6% 34 0 0 0.0% 0 0.0% 31 South Lake County IN 59 5,957 1.4% 23 0 0 0.0% 0 0.0% 32 South Lakefront 1,197 35,824 8.5% 2 1 267 0.7% 16 3 326 0.9% 20 33 South Will County 25 389 0.1% 39 0 0 0.0% 0 0.0% 34 Southeast DuPage Coun... 111 6,584 1.6% 22 0 0 0.0% 4 266 4.0% 9 35 Southeast Lake County 45 2,226 0.5% 35 2 26 1.2% 14 1 39 1.8% 14 36 Southern Cook County 357 9,168 2.2% 14 1 10 0.1% 19 1 98 1.1% 19 37 Southwest Chicago 1,191 18,943 4.6% 5 0 0 0.0% 1 230 1.2% 18 38 Southwest Cook County 454 10,918 2.6% 12 0 0 0.0% 0 0.0% 39 Southwest Lake County 49 3,979 0.9% 26 0 0 0.0% 2 300 7.5% 4 40 University Park 10 1,798 0.4% 36 0 0 0.0% 0 0.0% 41 West Cook 1,095 18,156 4.4% 6 3 282 1.6% 13 2 343 1.9% 13 42 Western Kane County 5 161 0.0% 40 1 66 41.0% 1 0 0.0% 43 Western McHenry Count... 52 2,521 0.6% 31 1 108 4.3% 4 0 0.0%

SUBMARKET RENTS

Asking Rents Effective Rents

No. Market Per Unit Per SF Rank Yr Growth Per Unit Per SF Rank Yr Growth Concessions Rank 1 Aurora $935 $0.85 29 3.2% $921 $0.84 29 5.0% 1.5% 21 2 DeKalb $802 $0.73 39 3.9% $790 $0.72 39 6.2% 1.5% 18 3 DeKalb County $681 $0.62 41 0.2% $673 $0.61 41 1.8% 1.2% 36 4 Des Plains/Arlington ... $1,257 $1.14 12 3.4% $1,244 $1.13 12 5.5% 1.3% 31 5 Downtown Chicago $2,402 $2.18 1 2.4% $2,373 $2.16 1 5.2% 1.8% 4 6 East Suburban McHenry $1,032 $0.94 21 2.2% $1,020 $0.93 21 3.9% 1.6% 14 7 Elgin/Dundee $1,044 $0.95 20 3.2% $1,036 $0.94 20 5.0% 1.1% 39 8 Evanston $1,673 $1.52 3 3.8% $1,661 $1.51 3 5.2% 1.4% 25 9 Far North Chicago $1,016 $0.92 22 3.4% $1,004 $0.91 22 5.0% 1.2% 38 10 Far North Suburban Co... $1,782 $1.62 2 4.0% $1,730 $1.57 2 7.6% 1.9% 3 11 Far Northwest Suburba... $1,247 $1.13 14 2.7% $1,228 $1.12 14 5.0% 1.5% 20 12 Fox River Valley $1,271 $1.16 11 0.9% $1,257 $1.14 11 2.4% 1.4% 29 13 Glen Ellyn to West Ch... $1,252 $1.14 13 3.4% $1,239 $1.13 13 5.3% 1.4% 26 14 Grundy County $937 $0.85 28 1.9% $928 $0.84 28 3.5% 1.0% 42 15 Jasper County $518 $0.47 42 -4.1% $509 $0.46 42 -1.6% 1.8% 6 16 Kendall County $1,175 $1.07 15 2.1% $1,161 $1.06 15 4.6% 1.5% 16 17 Kenosha $875 $0.80 33 4.1% $864 $0.79 33 5.6% 1.3% 34 18 Naperville/Lisle $1,323 $1.20 10 3.6% $1,310 $1.19 10 5.3% 1.6% 15 19 Near North Suburban C... $1,340 $1.22 9 2.5% $1,321 $1.20 9 5.0% 1.4% 28 20 Newton County $0.00 $0.00 21 North DuPage County $1,159 $1.05 17 3.5% $1,150 $1.05 16 4.3% 1.1% 41 22 North Lake County IN $848 $0.77 37 3.5% $836 $0.76 37 6.1% 1.7% 8 23 North Lakefront $1,506 $1.37 6 2.6% $1,486 $1.35 6 4.3% 1.5% 23 24 North Will County $1,158 $1.05 18 2.9% $1,147 $1.04 17 5.0% 1.6% 9 25 Northeast DuPage Coun... $1,343 $1.22 8 3.4% $1,328 $1.21 8 5.2% 1.5% 22 26 Northeast Lake County $968 $0.88 27 3.0% $958 $0.87 27 4.8% 1.3% 32 27 Northwest Chicago $978 $0.89 26 1.4% $960 $0.87 26 3.3% 1.5% 17 28 Northwest Lake County $1,007 $0.92 24 1.6% $1,001 $0.91 23 3.2% 1.1% 40 29 Porter County $872 $0.79 34 2.8% $860 $0.78 34 4.7% 1.5% 19 30 South Chicago $863 $0.78 35 2.1% $849 $0.77 36 3.8% 1.6% 10 31 South Lake County IN $902 $0.82 30 2.0% $888 $0.81 30 4.5% 1.7% 7 32 South Lakefront $1,074 $0.98 19 1.9% $1,061 $0.96 19 4.4% 1.6% 13 33 South Will County $829 $0.75 38 2.0% $812 $0.74 38 4.4% 1.6% 12 34 Southeast DuPage Coun... $1,161 $1.06 16 0.9% $1,147 $1.04 18 2.6% 1.4% 27 35 Southeast Lake County $1,590 $1.45 5 2.5% $1,560 $1.42 5 5.3% 1.6% 11 36 Southern Cook County $862 $0.78 36 1.0% $850 $0.77 35 2.8% 1.3% 30 37 Southwest Chicago $780 $0.71 40 2.4% $767 $0.70 40 5.0% 1.8% 5 38 Southwest Cook County $988 $0.90 25 2.7% $975 $0.89 25 5.0% 1.4% 24 39 Southwest Lake County $1,359 $1.24 7 5.0% $1,337 $1.22 7 7.1% 1.3% 33 40 University Park $883 $0.80 32 1.4% $867 $0.79 32 3.5% 1.9% 2 41 West Cook $1,011 $0.92 23 2.2% $1,000 $0.91 24 3.5% 1.2% 35 42 Western Kane County $1,635 $1.49 4 1.6% $1,604 $1.46 4 3.1% 2.0% 1 43 Western McHenry Count... $886 $0.81 31 1.9% $877 $0.80 31 3.0% 1.2% 37

SUBMARKET VACANCY AND NET ABSORPTION

Vacancy 12 Month Absorption

No. Market Units Percent Rank Units Percent Share of Metro Rank Constrct. Ratio 1 Aurora 236 6.0% 24 35 0.9% -0.2% 17 2.6 2 DeKalb 268 6.6% 29 1 0.0% -1.5% 25 0.0 3 DeKalb County 5 4.2% 9 0 0.2% -0.8% 26 0.0 4 Des Plains/Arlington ... 778 5.0% 14 78 0.5% -0.1% 13 0.0 5 Downtown Chicago 3,356 9.5% 39 2,534 7.2% 4.6% 1 1.4 6 East Suburban McHenry 139 5.8% 22 -30 -1.2% -1.0% 34 0.0 7 Elgin/Dundee 140 3.8% 4 34 0.9% -0.2% 18 0.0 8 Evanston 370 5.5% 18 -2 0.0% -0.9% 30 -48.6 9 Far North Chicago 1,133 4.2% 8 38 0.1% -1.0% 16 0.5 10 Far North Suburban Co... 295 11.8% 41 355 14.2% 15.2% 3 1.1 11 Far Northwest Suburba... 992 6.1% 25 13 0.1% -1.2% 20 0.0 12 Fox River Valley 172 5.5% 21 -25 -0.8% -2.2% 33 0.0 13 Glen Ellyn to West Ch... 494 5.5% 19 125 1.4% -0.4% 10 1.2 14 Grundy County 17 3.0% 1 5 0.9% -0.2% 23 0.0 15 Jasper County 7 10.0% 40 -1 -1.3% -2.0% 29 0.0 16 Kendall County 91 6.8% 30 3 0.3% -1.1% 24 0.0 17 Kenosha 277 3.8% 5 174 2.4% 1.6% 7 0.8 18 Naperville/Lisle 1,085 6.1% 26 -162 -0.9% -1.3% 42 -1.0 19 Near North Suburban C... 266 5.5% 20 138 2.8% -0.6% 9 0.0 20 Newton County 2 4.7% 12 0 -1.0% -1.2% 27 0.0 21 North DuPage County 246 3.6% 2 -31 -0.4% -2.3% 35 0.0 22 North Lake County IN 803 9.1% 37 -121 -1.4% -2.0% 41 0.0 23 North Lakefront 3,384 5.2% 15 753 1.2% 0.0% 2 1.7 24 North Will County 603 7.7% 34 -20 -0.3% 0.0% 32 -13.6 25 Northeast DuPage Coun... 636 6.2% 28 147 1.4% 1.0% 8 2.5 26 Northeast Lake County 543 4.9% 13 -13 -0.1% -1.0% 31 0.0 27 Northwest Chicago 1,100 6.2% 27 -48 -0.3% -1.5% 36 -2.7 28 Northwest Lake County 122 4.0% 7 11 0.4% -0.8% 21 0.0 29 Porter County 363 5.2% 16 186 2.7% -0.6% 5 1.4 30 South Chicago 190 7.9% 35 -72 -3.0% -3.7% 38 0.0 31 South Lake County IN 512 8.6% 36 -79 -1.3% -1.9% 39 0.0 32 South Lakefront 2,723 7.6% 33 233 0.7% -0.3% 4 1.1 33 South Will County 29 7.5% 32 -1 -0.2% -0.6% 28 0.0 34 Southeast DuPage Coun... 349 5.3% 17 -65 -1.0% -2.0% 37 0.0 35 Southeast Lake County 154 6.9% 31 89 4.0% 2.0% 12 0.3 36 Southern Cook County 431 4.7% 11 41 0.4% -0.5% 15 0.2 37 Southwest Chicago 1,762 9.3% 38 -206 -1.1% -1.5% 43 0.0 38 Southwest Cook County 633 5.8% 23 65 0.6% -0.4% 14 0.0 39 Southwest Lake County 187 4.7% 10 9 0.2% -0.4% 22 0.0 40 University Park 221 12.3% 42 -94 -5.3% -7.3% 40 0.0 41 West Cook 708 3.9% 6 176 1.0% 0.5% 6 1.6 42 Western Kane County 44 27.6% 43 14 8.9% 25.8% 19 4.6 43 Western McHenry Count... 93 3.7% 3 89 3.5% 2.3% 11 1.2

MARKET FUNDAMENTALS HISTORY AND FORECAST

Inventory Net Absorption Vacancy

Year Units Growth % Growth Units % Growth Constrct. Ratio Units Percent Ppts Chg 2021 443,212 2,412 0.5% 2,772 0.7% 0.9 31,597 7.1% (0.1) 2020 440,800 2,510 0.6% 2,891 0.7% 0.9 31,957 7.2% (0.1) 2019 438,289 4,667 1.1% 3,879 1.0% 1.2 32,337 7.4% 0.1 2018 433,622 9,484 2.2% 6,672 1.7% 1.4 31,549 7.3% 0.5 2017 424,138 7,779 1.9% 6,164 1.6% 1.3 28,736 6.8% 0.3 2016 416,359 8,533 2.1% 4,138 1.1% 2.1 27,122 6.5% 0.9 2015 407,826 4,612 1.1% 5,433 1.4% 0.8 22,727 5.6% (0.3) 2014 403,214 4,908 1.2% 6,652 1.8% 0.7 23,547 5.8% (0.5) 2013 398,306 5,499 1.4% 3,677 1.0% 1.5 25,292 6.3% 0.4 2012 392,807 830 0.2% 3,115 0.9% 0.3 23,469 6.0% (0.6) 2011 391,977 525 0.1% 1,592 0.4% 0.3 25,755 6.6% (0.3) 2010 391,452 3,144 0.8% 6,437 1.8% 0.5 26,822 6.9% (0.9) 2009 388,308 2,794 0.7% (422) -0.1% -- 30,114 7.8% 0.8 2008 385,514 2,396 0.6% 3,283 0.9% 0.7 26,898 7.0% (0.3) 2007 383,118 2,797 0.7% 3,093 0.9% 0.9 27,785 7.3% (0.1) 2006 380,321 2,033 0.5% 4,162 1.2% 0.5 28,081 7.4% (0.6) 2005 378,288 1,147 0.3% 3,915 1.1% 0.3 30,210 8.0% (0.8)

MARKET RENT HISTORY AND FORECAST

Asking Rent Effective Rent

Year Per Unit Per SF Index % Growth Per Unit Per SF % Growth Concessions 2021 $1,410 $1.76 128 1.6% $1,385 $1.73 1.7% 1.8% 2020 $1,387 $1.73 125 1.9% $1,362 $1.70 2.0% 1.8% 2019 $1,361 $1.70 123 2.3% $1,336 $1.66 2.2% 1.9% 2018 $1,331 $1.66 120 2.1% $1,307 $1.63 1.9% 1.8% 2017 $1,304 $1.62 118 3.4% $1,283 $1.60 4.1% 1.6% 2016 $1,261 $1.57 114 2.1% $1,232 $1.53 1.5% 2.3% 2015 $1,234 $1.54 112 3.5% $1,214 $1.51 2.9% 1.6% 2014 $1,193 $1.49 108 2.3% $1,180 $1.47 2.8% 1.0% 2013 $1,166 $1.45 105 2.7% $1,148 $1.43 2.1% 1.5% 2012 $1,135 $1.42 103 2.1% $1,124 $1.41 2.0% 0.9% 2011 $1,111 $1.39 100 1.3% $1,102 $1.38 1.4% 0.8% 2010 $1,097 $1.37 99 1.7% $1,087 $1.36 1.7% 0.9% 2009 $1,079 $1.35 98 -2.4% $1,069 $1.34 -2.5% 0.9% 2008 $1,106 $1.39 100 2.1% $1,096 $1.38 2.1% 0.9% 2007 $1,084 $1.36 98 5.6% $1,074 $1.35 5.7% 0.9% 2006 $1,026 $1.29 93 4.7% $1,016 $1.28 4.7% 0.9% 2005 $979 $1.24 89 1.3% $970 $1.22 1.3% 0.9%

MARKET SALES HISTORY

Volume Price Cap Rates

Year Sales Units Volume Turnover Median Per Unit Avg Price Index Overall 2017 227 9,642 $1,182,825 2.3% $109,999 $6,097,038 150 5.2% 2016 1,060 42,694 $5,410,438 10.3% $85,833 $5,798,969 156 4.9% 2015 961 54,022 $4,442,403 13.2% $76,667 $4,881,761 147 5.1% 2014 971 33,388 $2,941,896 8.3% $70,833 $3,272,409 136 5.4% 2013 858 34,727 $2,888,200 8.7% $62,981 $3,683,929 126 5.7% 2012 763 38,040 $2,420,909 9.7% $56,667 $3,656,962 112 6.2% 2011 629 28,259 $2,145,461 7.2% $52,959 $3,831,181 102 6.6% 2010 500 13,850 $1,061,866 3.5% $57,782 $2,391,589 85 7.6% 2009 532 15,131 $704,619 3.9% $57,500 $1,502,385 84 7.8% 2008 485 21,061 $1,249,674 5.5% $75,000 $2,808,257 100 6.8% 2007 575 32,424 $2,810,966 8.5% $75,000 $5,120,156 119 5.7% 2006 672 32,867 $2,657,259 8.6% $85,000 $3,930,857 120 5.3% 2005 750 36,399 $3,075,948 9.6% $83,927 $4,079,507 109 5.6%

4 & 5 STAR SUPPLY AND DEMAND HISTORY AND FORECAST

Inventory Net Absorption

Year Units Growth % Growth Units % Growth Construction Ratio 2017 ------2016 77,560 8,132 11.7% 4,949 7.7% 1.6 2015 69,428 4,493 6.9% 4,583 7.7% 1.0 2014 64,935 4,535 7.5% 4,865 8.9% 0.9 2013 60,400 5,422 9.9% 2,863 5.5% 1.9 2012 54,978 824 1.5% 1,275 2.5% 0.6 2011 54,154 312 0.6% 570 1.1% 0.5 2010 53,842 2,994 5.9% 3,452 7.5% 0.9 2009 50,848 2,600 5.4% 1,866 4.2% 1.4 2008 48,248 2,072 4.5% 1,997 4.7% 1.0 2007 46,176 2,385 5.4% 2,132 5.3% 1.1 2006 43,791 1,467 3.5% 1,425 3.7% 1.0 2005 42,324 745 1.8% 1,090 2.9% 0.7

4 & 5 STAR VACANCY AND RENT HISTORY AND FORECAST

Vacancy Asking Rent Effective Rent

Year Percent Ppts Chg Per Unit Per SF % Growth Per Unit Per SF 2021 9.8% (0.8) $2,102 $2.42 0.9% -- 2020 10.6% (0.6) $2,083 $2.40 0.9% -- 2019 11.1% 0.1 $2,064 $2.38 0.7% -- 2018 11.0% 0.8 $2,050 $2.36 0.3% -- 2017 10.2% (1.0) $2,044 $2.36 4.2% -- 2016 11.2% 3.3 $1,962 $2.23 1.2% $1,895 $2.15 2015 8.0% (0.7) $1,939 $2.20 3.2% $1,896 $2.15 2014 8.6% (1.2) $1,880 $2.13 2.2% $1,853 $2.10 2013 9.8% 3.7 $1,839 $2.09 3.4% $1,795 $2.04 2012 6.2% (0.9) $1,779 $2.03 3.0% $1,759 $2.00 2011 7.1% (0.5) $1,727 $1.97 2.1% $1,709 $1.95 2010 7.6% (1.3) $1,691 $1.93 2.4% $1,673 $1.91 2009 8.9% 1.0 $1,651 $1.89 -3.0% $1,634 $1.87 2008 7.9% (0.2) $1,703 $1.96 2.2% $1,686 $1.94 2007 8.1% 0.1 $1,666 $1.91 6.3% $1,649 $1.89 2006 8.0% (0.2) $1,567 $1.80 5.2% $1,551 $1.79 2005 8.1% (1.0) $1,491 $1.73 1.6% $1,475 $1.71

4 & 5 STAR SALES HISTORY

Volume Price

Year Sales Units Volume Turnover Per Unit Avg Price YTD 14 1,334 $280,577,515 0.0% $450,000 $25,507,048 2016 60 10,921 $2,738,795,166 14.1% $291,667 $48,049,040 2015 38 9,409 $1,552,657,593 13.6% $181,932 $50,085,732 2014 33 9,070 $798,960,266 14.0% $151,082 $33,290,010 2013 40 7,008 $1,191,362,793 11.6% $183,118 $29,784,070 2012 32 7,775 $1,167,884,033 14.1% $174,889 $46,715,360 2011 42 9,852 $1,181,956,543 18.2% $128,458 $34,763,428 2010 27 5,019 $595,942,200 9.3% $111,449 $24,830,924 2009 20 4,609 $275,841,492 9.1% $70,833 $14,517,974 2008 13 4,070 $324,889,709 8.4% $86,977 $27,074,142 2007 20 7,382 $919,239,136 16.0% $109,549 $57,452,448 2006 19 6,490 $511,433,990 14.8% $120,852 $31,964,624 2005 18 6,141 $801,612,854 14.5% $123,223 $50,100,804

3 STAR SUPPLY AND DEMAND HISTORY AND FORECAST

Inventory Net Absorption

Year Units Growth % Growth Units % Growth Construction Ratio 2017 ------2016 173,285 381 0.2% (651) -0.4% -- 2015 172,904 98 0.1% 402 0.2% 0.2 2014 172,806 337 0.2% 956 0.6% 0.4 2013 172,469 77 0.0% 267 0.2% 0.3 2012 172,392 6 0.0% 1,052 0.6% 0.0 2011 172,386 213 0.1% 444 0.3% 0.5 2010 172,173 98 0.1% 1,897 1.2% 0.1 2009 172,075 194 0.1% (1,125) -0.7% -- 2008 171,881 318 0.2% 894 0.6% 0.4 2007 171,563 387 0.2% 379 0.2% 1.0 2006 171,176 637 0.4% 1,809 1.1% 0.4 2005 170,539 402 0.2% 1,470 0.9% 0.3

3 STAR VACANCY AND RENT HISTORY AND FORECAST

Vacancy Asking Rent Effective Rent

Year Percent Ppts Chg Per Unit Per SF % Growth Per Unit Per SF 2021 6.3% 0.0 $1,243 $1.54 1.4% -- 2020 6.3% 0.0 $1,226 $1.52 1.8% -- 2019 6.3% 0.2 $1,204 $1.49 1.8% -- 2018 6.1% 0.2 $1,183 $1.47 1.0% -- 2017 5.9% 0.4 $1,171 $1.45 2.5% -- 2016 5.4% 0.6 $1,143 $1.42 2.8% $1,121 $1.39 2015 4.8% (0.2) $1,112 $1.38 4.3% $1,094 $1.36 2014 5.0% (0.4) $1,066 $1.32 2.7% $1,053 $1.31 2013 5.4% (0.1) $1,037 $1.29 2.8% $1,024 $1.27 2012 5.5% (0.6) $1,009 $1.25 2.1% $997 $1.24 2011 6.1% (0.1) $989 $1.23 1.0% $978 $1.21 2010 6.3% (1.0) $979 $1.22 1.2% $968 $1.20 2009 7.3% 0.8 $967 $1.20 -2.4% $957 $1.19 2008 6.5% (0.3) $991 $1.23 1.9% $981 $1.22 2007 6.9% 0.0 $973 $1.21 5.5% $962 $1.20 2006 6.9% (0.7) $922 $1.15 4.7% $913 $1.14 2005 7.6% (0.6) $881 $1.10 1.1% $872 $1.09

3 STAR SALES HISTORY

Volume Price

Year Sales Units Volume Turnover Per Unit Avg Price YTD 71 4,853 $663,696,289 0.0% $138,750 $10,534,862 2016 311 20,218 $1,878,726,196 11.7% $103,226 $7,143,446 2015 216 16,999 $1,843,306,274 9.8% $82,500 $8,862,050 2014 235 14,009 $1,465,924,316 8.1% $80,417 $6,603,263 2013 172 16,931 $1,078,957,031 9.8% $82,143 $7,145,411 2012 161 20,298 $853,519,531 11.8% $85,792 $6,010,701 2011 127 9,951 $601,654,724 5.8% $59,111 $5,570,877 2010 66 3,871 $203,153,427 2.2% $67,742 $3,693,699 2009 63 3,322 $164,334,076 1.9% $61,538 $3,222,237 2008 76 8,964 $474,550,262 5.2% $83,007 $6,779,290 2007 145 15,636 $1,329,557,739 9.1% $87,500 $9,429,487 2006 138 11,996 $1,047,761,963 7.0% $93,158 $7,761,200 2005 167 15,826 $1,217,552,490 9.3% $83,912 $7,334,654