5301 , NW Washington, DC

Confidential Offering Memorandum

Newly built residential development Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC Table of contents

01. Executive Summary 3

02. Property Overview 5

03. Location Overview 13

04. Financial Analysis 19

05. Market Overview 27

Avison Young Capital Markets Group | Confidential Offering Memorandum 22 Offering Memorandum 01. Executive Summary 5301 Connecticut Avenue, NW Washington, DC

The Offering

Avison Young, as exclusive advisor to the owner, is pleased to present the opportunity to acquire 5301 Connecticut Avenue, NW (“5301 Connecticut” or the “Property”), a newly constructed, luxury Class-A apartment building located in Chevy Chase, DC. The Property, to be delivered in first quarter 2021, has 19 luxurious units, a mix of studio, 1-bedroom, and 2-bedroom units, averaging approximately 564 square feet per unit. Ideally located, in the Chevy Chase neighborhood of Washington, DC, the property offers residents numerous walkable amenities and neighborhood attractions in a vibrant and family-friendly community.

Project Summary

5301 Connecticut Avenue NW Address Washington, DC 20015 Zoning RA-2 Gross Building Area 14,000 SF Stories 4 Delivery Q1 2021 Number of Units 19 Bedrooms 24 Net Rentatble Area 10,709 SF Average Unit Size 564 SF

Avison Young Capital Markets Group | Confidential Offering Memorandum 33 Offering Memorandum 01. Executive Summary | Investment Highlights 5301 Connecticut Avenue, NW Washington, DC

Limited Supply of New, Class A Product in Immediate Area In the Connecticut Avenue Northwest Submarket, there are only a handful of luxury, Class-A multifamily properties. The brand-new construction and luxury unit finishes with high ceilings and large windows will separate 5301 Connecticut from its competition.

Stable Renter’s Market Consistently, the renter’s market in Upper Northwest DC is stable. The long-term average vacancy rate over the past decade stands at 5.9%. With the median single-family home price over $1.2 Million in Chevy Chase, DC, renting is an attractive and affordable option for individuals and families looking to live in this desirable neighborhood.

Precise Blue-Print Robotics Construction The property is constructed with Blueprint Construction’s pre-fabricated panels, which offer exceptional precision during construction and a foundation that is well above builder grade standards.

Opportunity to Place Accretive Debt at Historically Low Rates

Ideal Property for DC Voucher Program 5301 Connecticut presents an incredible opportunity to take advantage of the highly stable Voucher market, and participate in the program that the Washington DC Housing Authority offers. The program provides quality affordable housing to extremely low through moderate-income households, fosters sustainable communities, and cultivates opportunities for residents to improve their lives.

The program is attractive to landlords because the government guarantees rent payments at attractive rental rates. Also, the retention rate among tenants at the properties that participate in the program is incredibly high, reducing annual leasing costs for landlords.

4 Offering Memorandum 01. Executive Summary | Investment Highlights 5301 Connecticut Avenue, NW Washington, DC

Retailers

Exceptional Public Transportation Options Buses run consistently up and down Connecticut Avenue from to Downtown DC. Residents at 5301 Connecticut have multiple bus stop options to access the Connecticut Avenue Bus line (L1/L2). These bus lines have a direct shot down Connecticut Avenue to and Downtown DC, making the commute downtown from the property seamless. 5301 Connecticut is located less than a 15 minute walk to the Friendship Heights Metro Station, giving residents direct access to the Redline. From the Friendship Heights Station, it takes approximately 8 minutes to get to the Downtown Bethesda Metro Station, and 12 minutes to get to Metro Center in Downtown DC, making it simple and fast for residents to commute to work anywhere in the Metropolitan DC area.

Walkable Retail Amenities There are retail amenities to both the North and South of the property on Connecticut Avenue. A five-minute walk north of the property is Chevy Chase Circle, where there is a three-block stretch of retail including a Safeway. Two blocks south Schools of the property there is a collection of locally owned restaurants, cafes, and shops, giving residents a variety of options when it comes to dining and shopping in the Janney Alice Deal Woodrow M.S. Wilson H.S. Outstanding Public and Private Schools in the Area E.S. Living at 5301 Connecticut gives residents access to some of the top public schools in the Metro DC area. Additionally within walking distance of the property, there are exceptional private schools and preschools including, CCBC Children’s Center, A- A A Montessori School of Chevy Chase, Blessed Sacrament, and All Saints.

5 Offering OfferingMemorandum type 5301 Connecticut Avenue,Address NW Washington,Address DC

02. Property Overview Offering Memorandum 02. Property Overview 5301 Connecticut Avenue, NW Washington, DC Detailed Unit Mix

Unit Type # of Units SF per Unit % of Units Units

Studio 4 414 21% 102, 202, 302, 402 1 Bed+1 Bath 1 552 5% 001 1 Bed+1 Bath 1 480 5% 002 1 Bed+1 Bath 1 534 5% 101 1 Bed+1 Bath 3 557 17% 201,301,401 1 Bed+1 Bath 4 599 21% 104, 204, 304, 404 2 Bed+1 Bath 1 844 5% 003 2 Bed+2 Bath 4 644 21% 103, 203, 303, 403 Total/Avg. 19 564 100%

Construction & Mechanical Detail Utility Providers Foundation Poured concrete Utility Utility Provider Pre-fabricated panels Basic Structural System Blueprint Robotics Electricity Pepco Exterior Walls 2x6, zip sheathing, Water/Sewer DC WASA Rigid insulation, TPO Trash Tenleytown Trash with additional TPO Roof Cover slip sheet, 4’’ green roof Interior Walls 2x4, 2x6 sheer, double Ceiling Heights 9’8 Heating and Cooling System Central electric, heat Plumbing Fixtures Hansgrohe Electric Meters Square D Security Features Cameras, intercom

7 Offering Memorandum 02. Property Overview | Unit Features 5301 Connecticut Avenue, NW Washington, DC

- Modern kitchens, quartz countertops, white cabinets, and stainless steel GE appliances - Modern bathrooms feature tile flooring, vanities with quartz countertops, large mirrors and wood cabinets with white and gray finishes - Central heating and air conditioning - Large windows - 9’8 ceiling height

8 Offering Memorandum 02. Property Overview | Exterior Rendering 5301 Connecticut Avenue, NW Washington, DC

9 Offering Memorandum 02. Property Overview | Floor Plans 5301 Connecticut Avenue, NW Washington, DC

2 Bed+1 Bath Average Size: 844 SF

10 Offering Memorandum 02. Property Overview | Floor Plans 5301 Connecticut Avenue, NW Washington, DC

1 Bed+1 Bath Average Size: 544 SF

11 Offering Memorandum 02. Property Overview | Floor Plans 5301 Connecticut Avenue, NW Washington, DC

Studio Average Size: 414 SF

12 Offering Memorandum 02. Property Overview | Floor Plans 5301 Connecticut Avenue, NW Washington, DC

2 Bed+2 Bath Average Size: 644 SF

13 Offering OfferingMemorandum type 5301 Connecticut Avenue,Address NW Washington,Address DC

03. Location Overview 02. Location Overview Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC

Chevy Chase Circle

The Brittany Apartments The Livingston

Chevy Chase House La Reine Apartments

Garfield of Chevy Chase The Kenmore

Friendship Heights Metro 5333 Connecticut

Chevy Chase Tower Subject Site

Connecticut Avenue, NW 5301 Connecticut Ave. NW

Regency House

Sulgrave Manor 5100 Connecticut 15 02. Location Overview Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC

The Livingston

La Reine Apartments

The Kenmore

5333 Connecticut

Chevy Chase Tower Connecticut Avenue, NW The Brittany Subject Site Chevy Chase House 5301 Connecticut Ave. NW Garfield of Chevy Chase

Chevy Chase Pediatric Center

Regency House

16 CHEVY CHASE / 03. Location Overview Offering Memorandum FRIENDSHIP HEIGHTS 5301 Connecticut Avenue, NW Washington, DC 0-½ mi 0-1 mi 0-3 mi Retail/Restaurant Arts/Tourism Education Government Great Street Main Street BID Area POPULATION Population 9,365 28,695 180,373 Male 44% 45% 46% Female 56% 55% 54% High School Graduate + 99% 98% 97% Bachelor’s Degree + 83% 85% 83% Subject Site Graduate / 53% 56% 54% Professional Degree 5301 Connecticut Ave. NW HOUSEHOLDS Households (HH) 4,785 13,275 81,291 Average HH Size 1.9 2.1 2.2 Owner-occupied 54% 58% 55% Renter-occupied 46% 42% 45% Median HH Value $871,438 $953,172 $951,008

½ MILE RADIUS INCOME AVALONLO THEATERE Average HH $176,456 $209,590 $200,006

CVSCVS Median HH $119,975 $148,333 $136,159 SAFEWAYSAFEWAY BREAD & CHOCOLATECO HH Income <$50k 18% 16% 17% BARSTONSMORRISONSTONSTONSRRISONRISON CHILD'SCHILDCHIL ST 'S S PLAY CORECORE 7272 HH Income $50–$75k 14% 9% 11% MACONMACON HH Income $75k+ 68% 75% 72% LIVINGSTON STT Average HH Disposable $108,391 $122,747 $117,828

LEGATION ST AGE M Friendship Heights MILITARY RD Age < 20 15% 19% 20% WHOLE FOODS CHEESECAKE FACTORY EMBASSY SUITES Age 20–34 21% 18% 22% KANAWHA ST AMC J. CREW NEIMAN MARCUS WORLD MARKET Age 35–64 36% 38% 38% SAKS FIFTH AVENUE OLD NAVY JOCELY N ST TJ MAXX NORDSTROM RACK Age 65+ 28% 25% 20% DSW Median Age (years) 47.0 45.7 40.9 LORD & JENIFER ST TAYLOR 17 TERN AVE MICHAELS R S EN CONSUMER EXPENDITURES ($ thousands) O WE RD Apparel $20,759 $67,279 $398,485

HARRISON ST Child Care $5,411 $18,140 $105,926 Computers & Accessories $1,940 $6,281 $37,294 MARYLAND Entertainment & Recreation $30,312 $99,487 $581,668

T

T T T T S S

ST

- Pets $5,732 $18,596 $107,979

H T

TH TH

T T T

S 9 1 8

3

4

3 3 3 Food at Home $46,656 $149,367 $888,730 FESSENDEN ST Food away from Home $35,281 $113,758 $673,684 RIVER Health Care $50,983 $164,741 $964,641 RD - Medical Care $17,148 $55,284 $322,357 ELLICOTT STT GEORGETOWN DAY Home Improvement $23,884 $80,940 $455,234 LOWER/MIDDLE SCHOOL DEAL MIDDLEIDDLE SCHOOL Household Furnishings $19,448 $63,442 $372,904

DAVENPORTT ST GEORGETOWN Personal Care Products $8,251 $26,710 $157,467 DAY SCHOOL

42NDST Vehicle Maint. & Repair $9,843 $31,854 $191,990

CHESAPEAKE ST

WILSON HIGHH SCHOOL

T

T 1

S

S S S AVAILABLE VEHICLES PER HH

H DISTRICTSTRICT TACOT

4TH BANDITD T 3RD ORANGETHEORYE Y FITNESSFITT

T

4 4 4 4 TACOO 0 26% 20% 17% SEOULUL SPICESPS S BRANDYWINEN ST COREO POWER YOGA Y

WHOLEWH FOODS MARKETARKKETT H 1 49% 44% 45%

T T CHICK-FIL-ACHI T

WAWAWAW 38 2-3 25% 35% 37% BUTTERWORTH PL PANERAPAAN BREADAD STARBUCKSS A 4+ 1% 1% 2% ACE HARDWAREW E CVSCVS CONTAINERCOO STOREST E ALBEMARLEALBEMARLE SSTT TARGETAR T M Tenleytown/AUTen eytow MOBILITY JANNEY ELEMENTARYMENTA SCHOOLC ALTON PL Metrorail Exits2 8,086 / 2,758 Friendship Heights avg weekday/avg weekend ST 3

TH YUMA ST Traffic Counts 23,400

9 9 9

4

T T AMERICANER 22,800 Eastern Avenue S

S

S S S S

ST S

UNIVERSITYNIV

H H H TH

T COLLEGECOC OF LAW 7TH 46TH ST 46TH ST

45

4 4 4 48 Source: ESRI, 2019 Estimates & Projections; 1. American Community WARREN ST WARREN ST CAVAVA Survey (2013–2017), values are rounded to nearest whole percent; NANANDO’SANDO’S PERIE PERPERIRI 2. WMATA (FY 2019); 3. DDoT (Daily Avg, 2017); 4. TransitScreen

BOURBONBOOU COFFEE SULLIVAN’SSULUL TOYS & ARTA SUPPLIES VANN NEN E S S S S ST STT CONTACT Washington DC Economic Partnership UPTON ST

E Chad Shuskey, SVP, Research & Real Estate WI (202) 661-8670 • [email protected] S TILDEN ST KA C ONSINON ASKA AV SIDWELL FRIENFRIERI N wdcep.com R CITYCITY RIDGERIDGE Metrorail Traffic Mobility Walkscore Residents w/in SIN 2 3 4 FUTUREE WEGMANS SES DGWICK ST Exits Counts ScoreNEB 10 min. car ride AVE AVE

8,086 / 2,758 23,400 100 93 140,050 E 14

RODMAN ST Avg weekday/Avg weekend Wisconsin Ave. Excellent Mobility Walker's Paradise MOBILITY 03. Location Overview Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC

D.C. Family-friendly Living 5301 Connecticut is located in the vibrant and family-friendly community of Chevy Chase DC. Chevy Chase is a charming neighborhood with a suburban feel that is the perfect escape from the congestion, traffic and tourism crowding much of DC.

With a 79 walk score, 5301 Connecticut is considered “Very Walkable”. Approximately a 12-minute walk to the Friendship Heights Metro Station, residents of Chevy Chase enjoy an easy and direct commute to Downtown DC and Bethesda. Connecticut Avenue provides drivers a straight shot to Downtown DC and Rock Creek Parkway. The Beltway is located just three miles north of the property, allowing easy access to anywhere in Metro DC.

Walk Score 79

Transit Score 60

Bike Score 64 18 03. Location Overview Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC

Neighborhood Amenities & Attractions

Retail The property has walkable retail amenities to the north and south on Connecticut Avenue. Approximately a six-minute walk to the north is Chevy Chase Circle, where there is a three-block stretch of restaurants, coffee shops, and other stores, including a Safeway. Two blocks south of the property, there is a stretch of retail that features a handful of local restaurants and shops including: Little Red Fox, Comet Ping Pong, and Politics and Prose.

Parks and Green Space is the eastern border of Chevy Chase, and is an Oasis within DC, allowing visitors to escape the bustle of the city. Within the 1,754 park, there is over 32 miles of trails to hike, run and bike. There are also tennis courts, a public golf course, horseback riding, playgrounds, and plenty of places to picnic and relax.

Lafayette Park is located in the center of Chevy Chase, DC, approximately a 15-minute walk from the property, offers residents playgrounds, tennis courts and baseball fields.

Livingston Park is a part of Chevy Chase Recreation Center. The Rec Center offers baseball fields, tennis courts, a dog park, a small water park, and playgrounds.

19 Offering OfferingMemorandum type 5301 Connecticut Avenue,Address NW Washington,Address DC

04. Financial Analysis Offering Memorandum 04. Financial Analysis | Voucher Program Pro Forma 5301 Connecticut Avenue, NW Washington, DC

Feb-22 Feb-23 Feb-24 Feb-25 Feb-26 Feb-27 Feb-28 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Operating Revenue Potential Market Rent $ 646,633 $ 669,265 $ 687,670 $ 706,581 $ 726,012 $ 745,977 $ 766,492 Gross Potential Revenue $ 646,633 $ 669,265 $ 687,670 $ 706,581 $ 726,012 $ 745,977 $ 766,492 Vacancy ($ 32,332) ($ 33,463) ($ 34,384) ($ 35,329) ($ 36,301) ($ 37,299) ($ 38,325) Non-Revenue Units ($ 10,090) ($ 10,443) ($ 10,730) ($ 11,025) ($ 11,328) ($ 11,640) ($ 11,960) Collection Loss / Bad Debt ($ 1,813) ($ 1,876) ($ 1,928) ($ 1,981) ($ 2,035) ($ 2,091) ($ 2,149) Base Rental Revenue $ 602,399 $ 623,483 $ 640,629 $ 658,246 $ 676,348 $ 694,947 $ 714,058 Expense Reimbursements $ 12,350 $ 12,597 $ 12,849 $ 13,106 $ 13,368 $ 13,635 $ 13,908 Other Residential Income $ 15,180 $ 15,635 $ 16,104 $ 16,588 $ 17,085 $ 17,598 $ 18,126 Other Income $ 27,530 $ 28,232 $ 28,953 $ 29,694 $ 30,453 $ 31,233 $ 32,034 EFFECTIVE GROSS REVENUE $ 629,929 $ 651,715 $ 669,582 $ 687,939 $ 706,801 $ 726,180 $ 746,092 Operating Expenses Repair & Maintenance ($ 14,630) ($ 14,923) ($ 15,221) ($ 15,525) ($ 15,836) ($ 16,153) ($ 16,476) Contract Services ($ 4,750) ($ 4,845) ($ 4,942) ($ 5,041) ($ 5,142) ($ 5,244) ($ 5,349) Turnover / Make-Ready ($ 4,750) ($ 4,845) ($ 4,942) ($ 5,041) ($ 5,142) ($ 5,244) ($ 5,349) Personnel ($ 30,400) ($ 31,008) ($ 31,628) ($ 32,261) ($ 32,906) ($ 33,564) ($ 34,235) Marketing / Advertising ($ 4,750) ($ 4,845) ($ 4,942) ($ 5,041) ($ 5,142) ($ 5,244) ($ 5,349) Administrative ($ 8,550) ($ 8,721) ($ 8,895) ($ 9,073) ($ 9,255) ($ 9,440) ($ 9,629) Utilities ($ 19,000) ($ 19,380) ($ 19,768) ($ 20,163) ($ 20,566) ($ 20,978) ($ 21,397) Insurance ($ 5,700) ($ 5,814) ($ 5,930) ($ 6,049) ($ 6,170) ($ 6,293) ($ 6,419) Real Estate Taxes ($ 82,634) ($ 84,287) ($ 85,972) ($ 87,692) ($ 89,446) ($ 91,234) ($ 93,059) Property Management Fee ($ 37,796) ($ 39,103) ($ 40,175) ($ 41,276) ($ 42,408) ($ 43,571) ($ 44,766) TOTAL OPERATING EXPENSES ($ 212,960) ($ 217,770) ($ 222,415) ($ 227,162) ($ 232,011) ($ 236,966) ($ 242,028) Net Operating Income Net Operating Income (bef. Reserves) $ 416,969 $ 433,945 $ 447,167 $ 460,778 $ 474,790 $ 489,215 $ 504,064 Replacement Reserves ($ 3,800) ($ 3,876) ($ 3,954) ($ 4,033) ($ 4,113) ($ 4,196) ($ 4,279) Net Operating Income $ 413,169 $ 430,069 $ 443,213 $ 456,745 $ 470,677 $ 485,019 $ 499,784 (Aft. Reserves)

21 Offering Memorandum 04. Financial Analysis | Voucher Program Revenue Assumptions 5301 Connecticut Avenue, NW Washington, DC Rent Assumptions

Unit Type Unit Size Beds # Units Market In-Place In-Place Rent PSF

Studio 414 sf Studio 4 units $ 1,780 $ 2,397 $5.79 1 Bed +1 Bath 534 sf 1 BR 1 units $ 2,189 $ 2,467 $4.62 1 Bed + 1 Bath 552 sf 1 BR 1 units $ 2,263 $ 2,467 $4.47 1 Bed +1 Bath 557 sf 1 BR 3 units $ 2,284 $ 2,467 $4.43 1 Bed +1 Bath 599 sf 1 BR 4 units $ 2,456 $ 2,467 $4.12 1 Bed + 1 Bath 480 sf 2 BR 1 units $ 2,016 $ 2,467 $5.14 2 Bed+ 1 Bath 844 sf 1 BR 1 units $ 3,460 $ 3,872 $4.59 2 Bed +2 Bath 644 sf 2 BR 4 units $ 2,576 $ 3,872 $6.01 Total/Avg. 564 sf 19 units $ 2,317 $ 2,317 $5.05

Market Rent Growth Assumptions

Lease Type Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Market-rate Units 0.50% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%

Rental Loss Factors

Loss Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Vacancy (% of Market) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Non-Revenue Units (% of Market) 1.56% 1.56% 1.56% 1.56% 1.56% 1.56% 1.56% Loss to Lease (% of Market) ------Concessions (% of In-Place) ------Collection Loss (% of Base Rental) 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%

Other Income

Line Items Unit Type Frequency Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Garage / Parking $ total per month $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 Other Apartment Income $ / unit per month $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 Other Income Inflation applied at the end of each year (%) 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expense Reimbursements $ total per year $ 12,350 $ 12,597 $ 12,849 $ 13,106 $ 13,368 $ 13,635 $ 13,908 22 Offering Memorandum 04. Financial Analysis | Voucher Program Expense Assumptions 5301 Connecticut Avenue, NW Washington, DC Annual Operating Expenses Pro Forma Unit Type Expense Category Assumption ($/unit)

Repair & Maintenance $ 770 / unit Contract Services $ 250 / unit Personnel $ 1,600 / unit Marketing / Advertising $ 250 / unit Administrative Expenses $ 450 / unit Turnover / Make-Ready $ 250 / unit Electricity $ 350 / unit Fuel (Gas & Oil) $ 50 / unit Water & Sewer $ 400 / unit Other Utilities $ 200 / unit Insurance $ 300 / unit Real Estate Taxes $ 67,203 Total Property Management Fee 6.00% of EGR General Inflation 2.00% - Real Estate Tax Inflation 2.00% -

23 Offering OfferingMemorandum type 5301 Connecticut Avenue,Address NW Washington,Address DC

05. Market Overview Offering Memorandum 05. Market Overview 5301 Connecticut Avenue, NW Washington, DC

Washington, DC Metro Overview

The area is the sixth most-populous metropolitan area in the U.S., trailing only New York City, Los Angeles, Chicago, Dallas and Houston. It outperforms the nation in many key economic indicators, including employment and housing growth, and it has experienced an impressive 34% population growth since 2000, emerging as the Mid-Atlantic hub for millennials.

Partly due to the presence of the federal government, the region boasts one of the strongest demographic profiles in the country. Even since the start of the Pandemic in March 2020, when the global economy took a major hit, DC has been able to recover faster and more consistently than most of the country, mostly due to the cushion of the federal government as the major employer. The region holds one of the highest percentages of college graduates, as half of DC’s population over the age of 25 hold at least a Bachelor’s degree, vs. 30% nationwide. This educated workforce carries an astounding average household income of $106,277, nearly $50,000 higher than the national average of $54,149. Insulated by the federal government and its contractors, the Washington, DC area is in a good place to maintain its leading position.

Washington, DC Multifamily Market

Over the past few years, the Washington DC multifamily market has been incredibly strong. Prior to the Covid-19 pandemic, the Washington, DC multifamily market had emerged as one of the strongest apartment markets in the country with rental rates at their peak in March 2020. Washington, DC is in a unique position to bounce back quickly from the pandemic with the stability of the federal government to cushion the economy. With strong renter household formation, a healthy job market, and costly homeownership, multifamily assets in DC remain a bright spot for investment.

25 05. Market Overview Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC

Connecticut Avenue, NW Submarket The neighborhoods of upper northwest DC are some of the most sought-after neighborhoods in DC. These neighborhoods are particularly desirable for renters, considering the high cost of owning a home in this area, keeping apartment demand in this submarket steady. The long-term average vacancy rate in the submarket is 5.9% (Q1 2021), representing a stabilized market.

What is unique about this area, compared to other neighborhoods of DC, is the lack of supply of new Class-A construction. Over the past decade, only 760 units were delivered. There is a need for new supply in such a desirable location. 5301 Connecticut will stand out among competition with its brand- new construction and luxury units.

Vacancy 7.8%

Average Rent $2,070

% Market Cap Rate 4.5% 26 Offering Memorandum 05. Market Overview | Rent Comparables 5301 Connecticut Avenue, NW Washington, DC

Property Highbridge Tenley View 5333 Conn. Park Van Ness The Woodley Name

4600 Wisconsin Avenue 5333 Connecticut 4455 Connecticut 2700 Woodley Address 2513 Q Street NW NW Avenue NW Avenue NW Road NW

Year Built 2019 2014 2016 2016 2014

Avg. Unit Size 551 1110 669 802 1110

Avg. Rent per $2,249 $2,324 $2,311 $2,802 $4,556 Unit

Avg. Rent PSF $4.08 $4.10 $3.45 $3.49 $4.10

Total Number 96 60 261 271 212 of Units

Occupancy 90% 98% 93.50% 93% 88%

Morris & Holladay Douglas Owner Gwendolyn Cafritz BF Saul Company GID Corporation Development Foundation

27 Offering Memorandum 05. Market Overview | Studio Rent Comparables 5301 Connecticut Avenue, NW Washington, DC

Property 5333 South Cathedral 3333 Highbridge Tenley View The Woodley Name Conn. Mansions Wisconsin

Units 29 3 32 2 20 17

Average Size 429 584 474 622 433 490

Average Rent $1,818 $2,101 $1,823 $2,775 $1,791 1629

Average Rent $4.24 $3.60 $3.84 $4.46 $3.54 $3.32 PSF

28 Offering Memorandum 05. Market Overview | 1-Bed Rent Comparables 5301 Connecticut Avenue, NW Washington, DC

Property 5333 South Cathedral 3333 Highbridge Tenley View Park Van Ness The Woodley 2255 Wisconsin Name Conn. Mansions Wisconsin

Units 54 52 155 175 121 65 94 50

Average Size 526 683 610 668 954 639 636 674

Average Rent $2,206 $2,218 $2,054 $2,273 $3,728 $2,146 $2,367 2090

Average Rent $4.19 $3.25 $3.36 $3.40 $3.91 $3.36 $3.72 $3.10 PSF

29 Offering Memorandum 05. Market Overview | 2-Bed Rent Comparables 5301 Connecticut Avenue, NW Washington, DC

Property 5333 South Cathedral 3333 Highbridge Tenley View Park Van Ness The Woodley 2255 Wisconsin Name Conn. Mansions Wisconsin

Units 13 5 74 84 65 17 36 33

Average Size 913 1,203 848 945 1,311 818 1,151 938

Average Rent $3,264 $3,563 $2,930 $3,389 $5,279 $2,972 $3,929 $3,150

Average Rent $3.58 $3.00 $3.46 $3.59 $4.03 $3.63 $3.41 $3.36 PSF

30 Offering Memorandum If you would like more 5301 Connecticut Avenue, NW information on this offering Washington, DC please get in touch.

John Kevill President, U.S. Capital Markets Principal D 202 602 1737 [email protected]

Dean Sands U.S. Capital Markets Principal D 202 249 6294 [email protected]

Marijane Brennan Analyst U.S. Capital Markets D 202 602 1728 [email protected]

Visit us online avisonyoung.com

© 2021 Avison Young Capital Markets All rights reserved. E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young. 2001 K Street NW, Suite 200 North, Washington, DC 20006