Market Study for the Proposed Rental Apartment Building

Market Study

For the

Proposed Rental Apartment Building Northwest Corner 119th Street and Front Street Whiting, Lake County, Indiana

For

Mayor Joseph M. Stahura City of Whiting 1443 119th Street Whiting, Indiana 46394

Prepared By

Appraisal Research Counselors 400 East Randolph Street, Suite 715 Chicago, Illinois 60601

 2017 Appraisal Research Counselors www.AppraisalResearch.com 400 EAST RANDOLPH STREET, SUITE 715 CHICAGO, ILLINOIS 60601-7388 312-565-0977 FAX 312-565-3436 www.appraisalresearch.com Eugene W. Stunard, MAI Joan A. Stunard Julie A. Kluczynski James K. Kutill, MAI Joyce A. Marquez Gail Lissner, CRE, SRA Margarita Lopez Ron DeVries, MAI, FRICS Michael W. Wingader Steven J. Kelley, MAI Jennifer A. Long Jacoub M. Hussien, SRA Gary J. Wager Ronald W. Casper, MAI Stephanie L. Doyle Peter H. Gloodt, MAI Mark A. Brenner Daniel R. Graver Rebecca R. Franklin Erwin C. Wirth, SRA Kelly S. Jones Alexander Jaunius, MAI Virginia C. Evely ______Mark D. Lindsay William H. Miller David G. Ibarra Albany, New York Brian J. Germanowski Patrick J. McCauley Cary A. Lannin Patricia A. Jette Northwest Indiana Donald M. Livingston

Denise R. Navetta Central Illinois ______Betty Bogie Long (1932-2005)

June 9, 2017 Mayor Joseph M. Stahura City of Whiting 1443 119th Street Whiting, Indiana 46394 RE: Proposed rental apartment building located at the northwest corner of 119th Street and Front Street, Whiting, Lake County, Indiana

Dear Mayor Stahura:

In accordance with your request, we have prepared a market study regarding the above-referenced proposed rental apartment building.

Information for this report was researched with property inspections and conversations with brokers, developers, lenders, investors, managers, and leasing agents involved in the Northwest Indiana apartment market.

Should you have any questions about this report or desire further consultations as you decide to move forward, please do not hesitate to call us directly.

Sincerely, Appraisal Research Counselors

Gail Lissner, CRE, SRA, Vice President

3-22521

OFFICE • RETAIL • INDUSTRIAL • MULTI-FAMILY • SENIOR CARE • HOSPITALITY • LAND • SPECIAL-USE CONDOMINIUMS • SINGLE FAMILY • COOPERATIVES • NEIGHBORHOOD PROPERTIES

APPRAISALS ~ MARKET RESEARCH ~ FEASIBILITY STUDIES ~ COUNSELING

PROFESSIONAL SERVICE SINCE 1968 Page 2

CERTIFICATION

We certify that, to the best of our knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions (see following page), and are our personal, unbiased professional analyses, opinions and conclusions. We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved.

Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. We are experienced and competent in appraising this property type.

To the best of our knowledge and belief, the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of (1) the minimum appraisal standards effective June 7, 1994 under Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989, (2) the Uniform Standards of Professional Appraisal Practice (USPAP), and (3) the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to its review by duly authorized representatives. As of the date of this report, Eugene W. Stunard, MAI, Ron DeVries, MAI, FRICS, Gail Lissner, CRE, SRA, James K. Kutill, MAI, Ronald W. Casper, MAI, Steven J. Kelley, MAI, Jacoub M. Hussien, SRA, Peter H. Gloodt, MAI, Erwin C. Wirth, SRA and Alex Jaunius, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. No one provided significant real property appraisal assistance to the person(s) signing this certification. As of the date of this report, Cary A. Lannin has completed the required Standards and Ethics Education Requirements for Affiliates of the Appraisal Institute.

Cary A. Lannin and Gail Lissner, CRE, SRA inspected the site.

We have not provided appraisal services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three- year period immediately preceding acceptance of this assignment.

The professional contribution to the analyses, opinions and conclusions contained in this report is hereby acknowledged.

Gail Lissner, CRE, SRA, Vice President Cary A. Lannin, Senior Appraiser Indiana Appraiser Temporary Permit No. TP21700295 Indiana Certified General Appraiser No. CG41001292 Expires 03/31/2018 Expires 06/30/18

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ASSUMPTIONS AND LIMITING CONDITIONS

The following assumptions and limiting conditions apply to our appraisal:

Extraordinary Assumptions/Hypothetical Conditions

Our appraised value is subject to the following, which may have affected the assignment results:

• None General

The Certification, and all analyses, opinions and conclusions are expressly subject to the following stipulations: • No responsibility is assumed for matters of a legal nature. • It is assumed that title is marketable and that the descriptive legal information furnished is correct. • Except as noted, the property is assumed in accordance with applicable local, state and federal ordinances, regulations and laws. • The physical condition of the real estate described herein was based on visual inspection, except as noted. • It is assumed that there are no hidden or unapparent conditions that would render the property more or less valuable. Hidden or unapparent conditions include but are not limited to soundness of members, equipment, soil conditions or environmental contamination. No responsibility is assumed for such conditions, their effects or for arranging engineering studies that may be required to discover them. • Any plots, diagrams or drawings presented are only to facilitate and aid the reader and are not meant to be used in matters of survey or for any other purpose. • Any distribution of value applies only as presented or discussed. Value distributions include but are not limited to leased fee and leasehold and land and building allocations. • Portions of this report should not be relied upon except in the context of the whole. • All analyses, opinions and conclusions assume responsible ownership and competent management. • No persons signing or identified as contributing to this report shall be required to give testimony or appear in court by reason of this report with reference to the property herein described, unless prior arrangements have been made. • As used herein, report is defined to include both the written version and information contained in our files. • Neither all nor any part of the contents of this report (especially any conclusions, the identity of persons signing or contributing to this report or the firm with which they are connected, or any reference to the Appraisal Institute or to the MAI or SRA designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without prior written consent and approval. • We, however, hereby consent to your referencing this report in your company's financial statements or other required statements, provided that: 1) prior to making such reference in any publication, including any filings with the Securities and Exchange Commission or other governmental agency, we are allowed to review the same so as to insure the accuracy and adequacy of such reference to our report; 2) in our sole discretion such reference is not untrue or misleading and is accurate and adequate for the purposes intended and in light of the circumstances under which it is made; and 3) any reference to such report include the following language: "In addition to setting forth our analyses, opinions and conclusions, the report contains a description of the property that is the subject of this assignment; a statement of the various facts, assumptions and conditions upon which the analyses and opinions were based; the conclusions and certain limiting conditions which relate to the report. The portions of the report referred to herein are qualified in their entireties by reference to the complete report, which will be made available upon written request, to any person who has a proper purpose in reviewing the same. The report or portions of the report should not be relied upon except in the context of the whole. The terms of our engagement are such that we have no obligation to update or revise the report or our analyses, opinions and conclusions in any manner because of events or transactions occurring subsequent to the date of the report." • The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider non0compliance with the requirements of the ADA in estimating the value of the property, unless otherwise stated in the scope of this report.

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SCOPE OF WORK

Client/Intended User(s)

The client identified on the certification page is the intended user of this report.

Use of the Consulting Report

This report is prepared for exclusive use by the addressee for internal analysis and planning purposes.

Purpose of the Consulting Assignment

The purpose of this report is to provide:

• A summary description of the proposed development • Definition of the market area • Discussion of current demographics, employment, economics, and apartment market statistics • Identification of competitive properties including occupancy performance and overall rental rates • Identification of potential new apartment supply and likelihood of being built and delivered • Suggestions on proposed unit mix, unit sizes, finishes and amenities for the proposed development • Conclusion on market rent for the subject units in 2017 dollars and at delivery • Conclusions regarding absorption forecast for subject units at delivery

Effective Date

The effective date of the analysis and conclusions is May 2017.

Sources of Data / Extent of Research

An inspection of the neighborhood was completed along with a review of the preliminary site plan for the development.

The following data sources were researched:

• Inspection of the site • Visual inspection of the immediate neighborhood • Ongoing discussions with brokers, developers, lenders and investors active in the Northwest Indiana rental market • Inspection of the competing rental buildings in the market and discussions with management and leasing agents • Previous assignments where information was not confidential

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TABLE OF CONTENTS

Certification ...... 2 Assumptions And Limiting Conditions ...... 3 Extraordinary Assumptions/Hypothetical Conditions ...... 3 General ...... 3 Scope Of Work ...... 4 Table Of Contents ...... 5

Part I – Introduction

Executive Summary and Conclusions ...... 6 Northwest Indiana Apartment Market Overview ...... 27 Demographic Trends – 2017 Statistics ...... 33 Rental Competition Survey ...... 40

Part IV - Addenda

Qualifications ...... A

Part I – Introduction

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EXECUTIVE SUMMARY AND CONCLUSIONS

Subject Site Looking Northwest

Location: Northwest corner of E. 119th Street and Front Street, Whiting, Lake County, Indiana. Whiting is a northwest Indiana suburb located approximately 15 miles southeast of Downtown Chicago.

Concept: The subject site is an assemblage of nine vacant land parcels on which the City of Whiting is proposing a mixed-use commercial and residential development. The total site area is about 31,488 sf. According to the representatives of the City of Whiting, the desired development for the site would include street level commercial space, with higher density residential apartments on the upper floors of the building. The first floor of the building is anticipated to be occupied by the Whiting Lakefront Museum.

There have been prior mixed-use developments proposed for the site; however, the focus of this market analysis is not to validate a specific development concept, but to recommend the optimal apartment development criteria for the property.

Conclusion: We have projected that a 50-unit, luxury elevator building would be marketable at this location, comprised of a mix of 15% convertible units (575 sf), 45% one bedroom units (725 sf) and 40% two bedroom units (975 sf), or an average size of 803 sf. Rents are projected to average approximately $1.43 psf in current dollars, with rents of $1.49 psf at occupancy in 2019. Stabilized occupancy is estimated to occur within nine months.

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Property Location / Characteristics: The subject property is located in Whiting, a small community of approximately 4,676 persons located in the far northwest section of Lake County, Indiana, and approximately 15 miles southeast of downtown Chicago. The City is bordered by the Robertsdale section of the City of Hammond and Wolf Lake to the west, the BP Oil Refinery to the south and east, and Lake Michigan to the north and east.

Within this geography, Whiting represents an island community essentially surrounded by industrial uses, and has a more urban character than in the more suburban communities located to the south in Lake County. Primary linkage within Northwest Indiana is provided by US 12/20 and US 41. Interstate 90 runs north-south along the western boundary of the submarket, and is accessible just to the west of Whiting at US 12/20 and 103rd St. This location facilitates a relatively short automobile commute to neighboring Chicago to the northwest, which is a key advantage of the location. Whiting is not located along the South Shore commuter rail line which serves Northwest Indiana. The nearest station is located approximately four miles southwest in Hammond, approximately 15 minutes by car, and with that, significant commuter rail demand is not anticipated at the property.

The average household income for Whiting is estimated at $68,724 with a median household income of $56,389, according to 2017 estimates by Nielsen. During the prior twelve months, according to GNIAR MLS, the 21 detached single family home sales in Whiting averaged $120,048 in price, with a median house price of $130,500. Home sales ranged between $42,000 and $225,000.

In 2015, Whiting completed a redevelopment of its Lakefront Park. The 26-acre park redevelopment included a two-tier promenade, nature area and gazebo event center, new parking areas, and renovation of all existing facilities including Whihala Beach pathways and the boat harbor. Additional new development is occurring in the vicinity of the subject, with the Mascot Hall of Fame under construction just southeast of the property.

The proximity and access to the lakefront is a key aspect of the location that is unusual for Lake County, where much of the lakefront is dominated by large-scale steel mill facilities. The subject site is located at Front Street, which is the eastern entry point to the lakefront park. Additionally, and also of significance, there are no vertical developments to the north of the site, and the upper floors in the building will have unobstructed views of Lake Michigan.

The following Google Earth image of the park was taken June 17, 2016.

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Subject Site

Lakefront Park

Whiting’s 119th Street is developed with a mix of commercial and mixed use buildings, with a variety of retail, office, and restaurants located in the first floors of the buildings. Upper floors are primarily residential apartments. The focus of the majority of commercial uses along 119th are towards locally- owned small retailers and service providers.

The Whiting/Robertsdale community area is served with two grocery stores (Strack & Van Til, Walmart), but has very few other larger national retailers. The nearest concentration of big box retailers is located in the Highland Grove commercial development in Highland, approximately 10 miles due south of Whiting.

Adjacent Land Uses

North – A set of freight railroad tracks, leading to Lakefront Park and Lake Michigan.

South –Primarily residential uses on the south side of 119th Street, with the BP Whiting Refinery’s new office campus to the south of the residential properties. Oil City Stadium is located on the south side of 119th Street just west of the subject site.

East – The Mascot Hall of Fame is under construction on the east side of Front Street at 119th Street. The BP Whiting Refinery and Lake Michigan are to the east.

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West -119th Street to the immediate west of the subject site is improved with primarily vintage residential or mixed use properties. Many of the existing improvements have been acquired and demolished by the City to make way for new development along this stretch of 119th St. The Downtown Whiting commercial district lies to the west of this transitioning section of 119th.

Whiting Downtown Redevelopment: In addition to the renovation of the Lakefront Park, several new development initiatives have been completed in the downtown area, or are under construction or proposed:

Oil City Stadium at Standard Diamonds Park is an 800-seat baseball stadium that was developed in 2012. The field is home to the NW Indiana Oilmen, part of the Midwest Collegiate League, a professional-level wood bat baseball league.

Mascot Hall of Fame: Currently under construction, the Mascot Hall of Fame will be located in a 25,000 square foot building located at the southeast corner of 119th Street and Front Street. The building shell and furnishings are being funded by an $8.5 million bond issued by the Whiting Redevelopment Commission, with the funds for the exhibits is being sought from private and corporate sponsorships. The Mascot Hall of Fame will be a hands-on children’s museum, with interactive exhibits, as well as a 50-seat auditorium.

Whiting Lakefront Museum is a proposed museum that will feature and preserve the history of the Whiting / Robertsdale community, as well as the adjacent BP Whiting Refinery. The museum is proposed to be located on the first level of the proposed subject development.

Hotel & Restaurant Development – a new hotel with restaurant is being proposed for the site of the former Whiting Gun Club, which was demolished in 2014. The site is located adjacent to the Lakefront Park, and would provide unobstructed views of Lake Michigan. The hotel would be operated as a boutique hotel, and would include a restaurant and banquet facility. It is reported that the proposed developer is Jonathan Byrd Hospitality and Restaurant Group of Greenwood, Indiana.

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The following illustrates the location of these improvements.

Hotel Site

Mascot HOF Oil City Stadium

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Housing Inventory: CoStar data was utilized to track the residential apartment inventory in Lake County. The following summarizes the CoStar data for all market rate apartments, with over 12 units. There were 123 complexes included in the survey data, totaling 14,140 apartment units.

Lake County Apartment Inventory Map

Source: CoStar

Of interest, the location of the available apartment inventory is clustered along the west side of I-65, in the communities of Merrillville and Crown Point. Additionally, Hammond and Gary have clusters of apartment inventory. There is a relative lack of inventory along the US-41 corridor south of I- 80/94, which is the result of those communities (Highland, Munster, Schererville, St. John, Dyer) desiring single family residential development as opposed to apartments.

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Also, we note that the median year built of the apartment inventory in Lake County is 1972, with an average year built of 1968. Clearly, the available inventory consists largely of older apartment product. Furthermore, there were only 13 complexes constructed within the last 20 years (1997+), totaling 2,468 units, which equates to about 17% of total inventory. The following summarizes the data for these more relevant developments.

Lake County Apartment Inventory Map – Built Post-1997

Source: CoStar

To a large extent, the map illustrates that there is lack of inventory in the market of upscale modern apartments, and largely the reason for this isn’t that there isn’t demand for such units; rather, it is that

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the communities most conducive to this type of new development haven’t been interested in promoting apartment development in their communities. Renter Profile: As noted, the subject property is situated in a submarket which has experienced limited new rental apartment construction in recent years. Relative to the subject property, only City Place, which opened two years ago, has a similar location.

According to information provided by leasing personnel, 21 of the 24 residents in the building moved to City Place from outside of Lake County. The majority of the residents had resided in the city of Chicago. Additionally, 15 of the tenants work in Chicago or the South Suburbs, indicating that the location is attractive to commuters who work outside of Indiana. Also of note, the average age of the tenants is largely skewed towards the younger demographic, with 20 out of 24 tenants under the age of 40 years old. Very few residents are married, with a larger percentage of divorced persons, single parents with a child/children, couples living together, and roommates. The occupations of the tenants are largely professional service providers, with a heavy concentration of health care professionals, as opposed to employees of the area’s refinery and steel manufacturing employment base. We also spoke with the leasing agent at Prairie Square in Highland, which is another recent addition to the Lake County apartment market, having opened in 2014. The agent indicated that the typical tenant in this building was also under 40 years of age, with professional employment, with a good amount of the tenants working in Illinois. With this, it appears that persons desiring a modern apartment in Indiana, but within close proximity to places of employment in Illinois, would not have many options available to them. The subject’s location would represent such an alternative. The location is proximate to I-90, which provides access to downtown Chicago, or Lakeshore Drive, which feeds into the Hyde Park / University of Chicago employment market. It is located about four miles from the nearest South Shore commuter rail station, or about a 15-minute drive. With this, the location is not really convenient to the commuter rail line, and we do not anticipate a significant demand from tenants that are riding the train to Chicago’s Loop. It is anticipated that the renter profile will be similar to that of City Place, comprised of persons who primarily work in Illinois supplemented by Indiana employees, who commute into Chicago and the southern suburbs. While empty nesters are a very logical segment of the apartment market, the available data suggests that empty nesters will not be a significant driver of demand in the market. While there is a need for senior housing in Whiting, the development of such facilities typically requires tax credit financing, and empty nesters are more likely to remain in their homes until such time as the need assisted living. Additionally, while there are numerous restaurants and stores located along 119th, there are no grocery stores currently located in downtown Whiting which further diminishes its attractiveness to persons desiring a very walkable, heavily amenitized downtown suburban location. Thus, all residents would be expected to own cars.

Existing Rental Apartment Developments in Whiting: As noted, the only comparable development in Whiting is City Place. The following summarizes this development along with the current rents that are being achieved:

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City Place is a 24 unit elevator building constructed in downtown Whiting in 2015. It was a desired development from the onset, with 22 of the 24 units pre-leasing prior to completion of construction. All of the units in the building are 2br/2ba apartments, located on floors 2-4 in this mixed use building. Each unit features walnut cabinetry, granite countertops and stainless steel appliances in the kitchen, and in-unit washer and dryer. The elevator building has a security system with access panel from the lobby for guests, and the building has a storage unit and bike rack in the penthouse on the 5th floor. The building also has a rooftop deck with views of Chicago. The reported rents in this building average $1.29 psf and it is 100% occupied. Management decided to hold rents flat at the first year renewal for the tenants in the building, in order to forestall a high rollover vacancy from occurring at a single point in time. Rents were increased by $50 to $125 for new tenants after a unit had been vacated, and upon the upcoming renewal for existing tenants in June / July, rents for these tenants will also be raised $10 to $15 per unit. Rents in the building vary based upon location in the building and floor height. The front units (facing 119th Street) rent for more than rear facing units, and the higher floors also rent for higher levels. Asking rents range from $1,025 per month for a rear-facing unit on the 2nd floor, to $1,350 per month for a 4th floor front-facing unit. The building is 100% occupied, and has a waiting list.

Competition Overview: Rather than competing with the existing, primarily vintage apartment rental supply in Whiting, the obvious primary comparable is City Place, a similar elevator property with a location on 119th St in Whiting. Additional competition for the subject property will be spread out geographically throughout Lake County. These properties would be recent construction, with a similar level of modern construction quality and features. However, other than City Place, there are no modern elevator buildings in Northwest Indiana. With that limitation, a sampling of other modern apartments located in more suburban Northwest Indiana locations were considered; we recognize that these are not truly similar in their design and location; however, they are considered representative of the apartment stock that would be desired by the target tenant at the subject’s location. The modern rental apartment properties, in addition to City Place, which fit these parameters include the following: In Highland – Embassy Place and Prairie Square, and in Merrillville/Crown Point – Brickshire, Mallard Bay, and Prairie Point. In order to round out the sample set, two Porter County properties were included – The Enclave at Coffee Creek in Chesterton, and Traditions at the Village in Burns Harbor. Embassy Place is comprised of sixteen two-story walk-up apartment buildings with 128 apartment units. The buildings were constructed in 1998, with a unit mix of 60 2BR/2BA 1st Floor units, each offering 1,210 square feet, with 64 2BR/2BA 2nd Floor units, with 1,300 square feet in unit size. Additionally, there are four first-floor units in two buildings that are 1,300 sf in size due to the placement of the garages in these buildings. Each unit has high-end features, including a private one- car garage, in-unit washer and dryer, fireplace, central air, and all appliances. Prairie Square is a 176-unit Class A apartment complex located due north of the subject property on 45th Street in Highland. This property was constructed in 2014, and has 68 1BR/1BA and 108 2BR/2BA apartments. The project is a gated development, with surface parking only. The common area amenities include a clubhouse and on-site fitness center. Interior finishes are high-end with faux hardwood floors, granite countertops, and steel appliances.

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Brickshire is a 296-unit apartment complex of three-story buildings that were completed in phases, with Phase I opening with 132 units in 2008, and the second phase coming on line in December 2013. The units have 9’ ceilings, in-unit washer / dryer, balconies/patios with each unit, and formica countertops and white appliances. Garage parking is available for an additional fee. The complex offers a clubhouse with fitness center, outdoor pool, and fenced lease-free dog park. Mallard Bay is a 246-unit complex that was constructed in 2008. The complex offers a clubhouse, an outdoor pool, a full circuit gym, racquet ball court, indoor hot tub, and two outdoor tennis courts. Interior unit finishes consist of formica countertops, washer-dryer hook-ups, and carpeted floors. Prairie Point is located in Merrillville. The complex was originally developed in two phases, with Phase I completed in 2002, and offering 300 units. Phase II was constructed in 2014. The second phase is called Prairie Point Reserve. The level of interior finish varies between the two phases – Prairie Point has formica countertops and white appliances, whereas the Reserve has granite and steel appliances. Attached garages are available within the complex. The project amenities include a clubhouse, outdoor pool and sundeck, and a recreation room. The Enclave at Coffee Creek Center, is a smaller 88-unit apartment complex in Chesterton, in Porter County, Indiana. This complex offers a mix of 1BR and 2BR units; however, all of the 2BR units include an attached one car garage per unit. Additionally, the complex has no amenities. Traditions at the Village is a 125-unit apartment complex in Burns Harbor that was constructed in 2014. An additional 30 to 40 units are permitted for the complex, but are not yet under construction. The interior finishes include formica countertops and carpeted floors, and each unit has a balcony / patio. The complex has a clubhouse, fitness center, and outdoor swimming pool. Detached garages are available for an additional fee.

Again, we recognize that these apartment developments are not truly similar in their location with the subject, but are representative of the upper tier of residential apartments in Lake County. The following is a summary of the competitive properties:

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Summary of the Rental Survey

Avg Avg Quoted Avg Net Effec Monthly Property Address Submarket Built Units Size (SF) Rent PSF Rent PSF Occupancy Garage Fee SUBJECT 119th St & Front St Whiting Proposed TBD

Embassy Place 2319 Teakwood Circle Highland 1998 128 1,258 $1.16 $1.16 92.20% Included Brickshire 9000 Lincoln Street Merrillville 2008/2013 296 971 $1.17 $1.17 91.90% $125 City Place 1518 119th Street Whiting 2015 24 921 $1.29 $1.29 100.00% City Lot Enclave at Coffee Creek 2135 Dickinson Road Chesterton 2004 88 1,248 $0.95 $0.95 100.00% Free Surface Mallard Bay 9310 Monroe Street Crown Point 1996 246 957 $1.11 $1.11 95.90% $125 Prairie Point/Reserve at Prairie Point 9123 Cleveland Street Merrillville 2002/2014 440 1,048 $1.24 $1.24 97.30% $75-$125 Prairie Square 2121 45th Street Highland 2014 176 788 $1.46 $1.46 93.20% Free Surface Traditions at the Village 331 S Boo Road Burns Harbor 2014 125 973 $1.08 $1.08 96.00% $125 Total 1,523

Rental Market Survey - Effective Rent PSF & Avg Unit SF $1.50

$1.40

$1.30

$1.20

$1.10

$1.00

$0.90 700 750 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 1,300

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Primary Data Survey Summary No. of Avg Quoted Quoted Effective Effective Unit Type Units Percent SF Rent PSF Rent PSF 1BR 353 23.18% 749 $992 $1.33 $992 $1.33 1BR+Den 128 8.40% 1,018 $1,169 $1.15 $1,169 $1.15 2BR 964 63.30% 1,079 $1,258 $1.17 $1,258 $1.17 3BR 78 5.12% 1,311 $1,363 $1.04 $1,363 $1.04 Total 1,523 100.00%

Average Monthly Rent and Unit Size (SF) $1,600 $1,363 $1,400 $1,258 1,311 $1,169 $1,200 1,079 $992 1,018 $1,000 749 $800 Avg Rent

$600 Avg SF

$400

$200

$0 1BR 1BR+Den 2BR 3BR

Eight properties comprising 1,523 units were identified as being representative of the subject’s anticipated market segment. The data is summarized on the following pages. All of the properties are operating at stabilized levels, with no remaining lease-up. As noted, City Place is most representative, and would be direct competition because of its similar design and location. This mid-rise elevator building has a rooftop deck and a party room, with bike storage and storage lockers in the rooftop deck. The building does not have dedicated parking for the tenants; however, a large municipal parking lot is located behind the building which is used for tenant parking. Interior finishes include wood floors, granite countertops and stainless steel appliances, and in-unit laundry. With the exception of City Place, the balance of the representative apartments consist of suburban complexes on larger sites. Two of the complexes (Embassy Place and Enclave at Coffee Creek) do not offer any amenities such as fitness centers or a swimming pool. The remainder of the facilities generally offer a superior level of amenities than will be possible at the subject property. However, the subject has an advantage relative to the representative set in that it has lake view potential from the upper floors in the building.

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The data set includes buildings with finishes that are consistent with Class A apartment properties and renter expectations for such properties; however, within the buildings, formica countertops and carpeted floors are the norm, whereas market trends (especially for the younger demographic) are calling for faux hardwood or vinyl plank flooring and granite/quartz countertops, and stainless steel appliances. Overall, the rents at the two Porter County complexes will represent the lower end of the market. These properties, while well located within their respective communities, are less proximate to employment centers and cultural/entertainment amenities. The properties with granite/quartz countertops and stainless appliances (City Place, Prairie Point - Reserve, and Prairie Square) command a rent premium over the facilities with formica countertops and white appliances. Garage parking is included at Embassy Place, and in the 2BR units at the Enclave at Coffee Creek. At the remaining complexes, surface lots are available, with some limited garage capacity. Occupancies throughout Northwest Indiana are averaging just about 91% and occupancies in the competing, stabilized survey properties range from 91.2% to 100.0%. City Place in Whiting is currently at 100% occupancy, with a waiting list. Proposed and Under Construction:

There are no proposed and under construction apartment sites that have been publically announced and are located in the primary market area.

Recommendations on the Unit Mix & Layouts: We note that none of the representative set offer studio or convertible units. Studio units are apartments with one large open room and a bath, and no separate bedroom. Studio units generally range anywhere between 450 and 550 square feet. Convertible units are larger than studio units, and include a centralized living space, but with a separate bedroom alcove (but no door). These units are frequently also referred to as junior one bedroom units. Convertible generally range between 500 and 600 square feet. Our experience in the City of Chicago and throughout Chicago’s suburbs indicates that these type units are extremely marketable, exhibiting strong occupancy and demand. Suburban developers who have recently included convertibles in their unit mix have commented that they have been the first units to lease-up and in strong demand. They are also the units which are able to command the highest rents on a per square foot basis.

The studio and convertible layouts would appeal to primarily singles. These units would rent at a lower chunk rent compared to a one bedroom but still offer some privacy with the convertible unit providing a separate sleeping area. For the subject, we suggest including a convertible layout over studio units. This layout would include a separate sleeping area and possibly a closet but no door. This room does not necessarily have to be along a window wall.

Approximately 30% of the unit mix at the competitive developments consists of one-bedroom layouts. One-bedroom layouts typically consist of the largest component of the unit mix in urban settings. In the case of the suburban nature of the representative set, this is reversed, with the majority of the units two-bedroom layouts. A higher percentage of one-bedroom layouts is recommended, as they appeal to both singles and couples and don’t carry the higher chunk price of the two-bedroom layout yet offer more privacy than a convertible or studio layout.

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Several of the comparables include one-bedroom plus den layouts. These layouts work well for tenants who desire a home office and do not need a full second bedroom. However, there tends to be lesser market demand for one bedroom plus den units, as they frequently become too close in size to two bedroom units but lack the utility of a two bedroom units. We have not recommended any of these unit types.

All of the comparables offer two-bedroom layouts, which comprise 63% of the unit mix. On average, the comparables report unit sizes 1,079 SF. A split bedroom layout can be extremely versatile. We expect these units will appeal to singles, couples, divorced parents, and small families.

None of the developments include two bedroom plus den units, and we have not recommended these unit types.

Three of the comparables include three-bedroom layouts. These layouts average about 1,300 SF. We have not recommended any three-bedroom units, because 3BR renters are frequently families who prefer townhome or SFR alternatives, and not a unit in an elevator building.

We suggest that the unit layouts include walk-in closets in at least the master bedroom and good closet space throughout the remaining bedrooms and near the unit entry. There should be two bathrooms in all two bedroom units.

With City Place having two bedroom units exclusively, we believe that it will be advantageous to expand the unit types available in Class A rental apartment buildings in Whiting. This will enable the subject property to appeal to a broader range of potential renters, all of whom will be desirous of Class A, luxury rental apartment residences, but who may have varying space needs.

We recommend the following mix:

Avg Unit Unit Type SF Percent Convertible 550-600 15.00% 1BR 700-750 45.00% 2BR 950-1,000 40.00%

If desired, a more typical unit mix could be utilized increasing the number of two bedroom units and decreasing the number of convertible units.

Recommendations on the Unit Finishes: We recommend the units contain the standard finishes found in new luxury rental buildings in the broader market. Based on our discussions with leasing agents and developers in Northwest Indiana and our experience in urban and suburban settings in Illinois, we recommended the following:

Kitchens: a contemporary cabinet, stainless steel appliances, granite or quartz counter tops, full tile backsplash and undermount sink.

In-unit washer dryer: A washer and dryer in each unit is considered a necessity in the market. Typically, this will be a full-size, side by side or stacked unit.

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Flooring: The current trend for the entry, kitchen, and living room flooring is some sort of wood finish, whether hardwood or a laminate/vinyl plan flooring (faux wood) that has the appearance of wood. Bedrooms are typically carpeted.

Baths: Bath finishes should be upgraded ceramic tile/stone floor and tub/shower surrounds with contemporary finishes, which is what is standard in the market. Mirrors, vanities, and accessories etc. should be good quality and good design.

Balconies: Balconies are a standard amenity in nearly all suburban developments. We suggest balconies for all units.

Ceiling: Ceilings should have drywall finishes and be 9’ in height.

HVAC: HVAC, water, sewer, and trash costs will be passed on to the residents.

Overall, these finishes will meet the expectations of renters in the upscale market.

Recommendations for the Common Area Amenities: The limited site area does not allow for extensive common area amenities, but the following are desired in the market:

Parking: Because the typical tenant in the building will commute, high automobile ownership is anticipated, and with that, reserved and secure parking is necessary. If physically possible in the building, a parking garage would command rent premiums, but if not, a secured lot with reserved parking is necessary. The 2BR units should have two spaces per unit, with one space per 1BR or convertible unit. At minimum, a 1.7:1 ratio is recommended.

Roof Deck: The subject’s location provides views of Lake Michigan, which is a strong advantage of the building. In order to maximize this location, a rooftop deck is considered necessary.

Club Room / Fitness: Some sort of club room is a popular amenity. Leasing staff at rental properties comment that clubrooms and community rooms that provide work areas and additional outlets to accommodate residents who work from home and desire a separate place to work as being highly desirable by tenants. The optimal location would be adjacent to the roof top deck on the penthouse level. We do not see the necessity of having computer workstations or equipment. A small fitness center is also definitely considered to be an important amenity. Storage lockers are a less important amenity and do not need to be provided at a 1:1 ratio.

Pet Friendly: Pet ownership among the target demographic may be high, being pet friendly is recommended. If possible, an on-site, off-leash play area or dog run is recommended.

Recommended Units and Rents (average): Based upon our survey of rental properties which provide alternatives to the subject units, we have recommended average rental rates on a per unit per month basis which equate to approximately $1.43 per sf in current dollars (as of June 2017). The actual rents on a chunk (per unit) basis is really what is focused on by renters in the market, and the monthly per unit rents which are projected below reflect the amenities, finishes, and new construction features of the proposed units.

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We are projecting rent annual increases of 2% over the next two years, or rents of approximately $1.49 psf at the time of projected occupancy in 2019. In the NW Indiana submarket, rents increased approximately 2.7% on a year over year basis. We expect rent growth to continue trending upward in the near term for the overall NW Indiana market due to demand fundamentals, occupancy levels and limited new supply in most markets.

ARC Recommended Mix & Rents Avg Unit Avg $ / Unit Type SF Percent Rent SF Convertible 550-600 15.00% $900 $1.57 1BR 700-750 45.00% $1,100 $1.52 2BR 950-1,000 40.00% $1,300 $1.33 It is also assumed that the utility charges will be paid by the residents, as is typical of newer properties in the overall market. Parking in a surface lot is assumed to be included in the monthly rent. Parking in a garage, if developed, has been estimated at $75 to $125 per month which is consistent with most of the buildings in the market. It is expected that these projections will be further refined as a development plan for the subject site is formulated. Recommended # of Units: Based on the site area (31,488 sf +-) and the location, a mid-rise elevator building of approximately 4 stories with a total unit count of approximately 50 units appears reasonable. This will be twice the size of the City Place project which was recently developed in Whiting. Estimated Absorption: The subject units will be facing limited direct new construction competition in the market at this time. We note that City Place pre-leased 22 of 24 units prior to completion of construction. Overall, we have projected the lease-up of the property at a pace of 5 to 6 units per month is reasonable, for a nine month absorption period. With pent-up demand for these units, the lease-up could surpass these projections. The following graphs show our rent and size conclusions in relation to the comparables. None of the comparables have convertible units, and the graphs include comparisons only of the 1BR/1BA and 2BR/2BA units. The projections for the subject property are shown in Red and the competing properties are shown in Blue.

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One-Bedroom Net Effective Rent $1,400

$1,300

$1,200

$1,100

$1,000

$900

$800 600 650 700 750 800 850 900 950 1,000

One-Bedroom Net Effective Rent PSF $1.70

$1.60

$1.50

$1.40

$1.30

$1.20

$1.10

$1.00

$0.90 600 650 700 750 800 850 900 950 1,000

One-Bedroom Net Effective Rent Survey $1,400

$1,300

$1,200

$1,100

$1,000

$900

$800

$700

$600 Prairie Point Prairie Point Subject Prairie Brickshire Mallard Bay Traditions at Enclave at - Reserve Square the Village Coffee Creek Center

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Two-Bedroom Net Effective Rent $1,700

$1,600

$1,500

$1,400

$1,300

$1,200

$1,100

$1,000 700 800 900 1,000 1,100 1,200 1,300 1,400

Two-Bedroom Net Effective Rent PSF $1.50

$1.40

$1.30

$1.20

$1.10

$1.00

$0.90 700 800 900 1,000 1,100 1,200 1,300 1,400

Two-Bedroom Net Effective Rent Survey $1,700

$1,600

$1,500

$1,400

$1,300

$1,200

$1,100

$1,000 Prairie Embassy Subject Prairie Prairie Enclave at Brickshire City Place Mallard Traditions Point - Place Point Square Coffee Bay at the Preserve Creek Village Center

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Location Map Red Dots = Commuter Rail Stations

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Regional Aerial Map

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Neighborhood Aerial Map

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NORTHWEST INDIANA APARTMENT MARKET OVERVIEW

Market area defined. The following analysis details the historical trends in the broader Northwest Indiana Apartment market. The analysis focuses on Lake County only, and excludes Porter County.

Source: CoStar

Market property profile. The database for the Lake County, Indiana survey includes 120+ buildings/complexes with a total of over 14,000 dwelling units indicating an average development size of just over 116 units. The data survey reflects market-rate apartments with more than 12 units.

Demand drivers. As the economy rallied in 2004-2007, demand for apartments increased. Recessionary pressures caused a market decline in 2007 through 2009; however, performance improved dramatically thereafter. Rental demand is being driven by instability in the for-sale housing market, the inability to obtain a mortgage due lack of down payment, debt to income ratios (including the impact of student loans) and/or credit issues. Homeownership rates throughout the region had been on a decline through year end 2011 but rose through 2013 – seemingly pointing to a turn in the market. With rising interest rates and a perception of rising values, there was a push for buyers to “get off the fence” and ownership increased through 2013. With the Dodd Frank lending rules starting in January 2014, obtaining a loan has become even more difficult due to increased underwriting requirements. Nationally, the rate continues to show a decline but with an upward bump in 3Q16. Each percentage point change equates to roughly 30,000 households in the Chicago MSA.

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Homeownership Rate – Chicago MSA vs. National

72.0 71.0 70.0 69.0 68.0 67.0 66.0 65.0 64.0 63.0 62.0 61.0 Chicago National 60.0

1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16

The market remains in flux but with a steady downward trend in ownership.

Rent Trends The following table summarizes historical trends in rent in the Lake County submarket.

Source: CoStar

Asking rent per square foot is generally trending upwards, and have increased at a more rapid pace post-recession. We expect rent growth to continue trending upward in the near term for the overall Lake County market due to demand fundamentals, occupancy levels and limited new supply in most markets.

Occupancy. Physical occupancy is at 90.7.1 percent for the entire market – up 150 bps relative to the five year average.

Market Revenue Performance. Market revenue performance is a function of the product of rent and occupancy. The following table illustrates the trends in these metrics.

Source: CoStar

Market revenue performance for the overall Lake County market shows strong rapidly appreciating rents, albeit at the expense of declining occupancy in the broader market. The most recent quarter shows a slight uptick in occupancy, but it is premature to indicate that this is a reversal of the recent trend.

Demand Generators

The unemployment rate for the Chicago MSA is 5.3 percent (National, 4.6 percent) as of November 2016. The national unemployment rate for 25+ year olds with a bachelor’s degree has been holding proximate to 2.3 percent. While the MSA unemployment rate declined notably since early 2014 from a high of almost 9 percent, details behind the data suggest a much higher unemployment rate when discouraged workers and part time employment are factored into the equation.

Chicago vs. National Unemployment Rate – BLS Data

14.0% Chicago National 25+ College 12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0% Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jan 09 Jan 13 Jan Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 10 Jan 11 Jan 12 Jan 14 Jan 15 Jan 16 Jan

The Chicago market generated an annual average of 75,000 new jobs from 1992-2000 – a trough to peak period. Employment declined from 2000-2003 with peak post-recession employment achieved in 2007 which did not even match the 2000 employment level. Economy.com forecasts indicate a return to 2000 employment levels will not occur until at least 2020 – 20 years later.

By looking at the month over month comparisons to prior year employment, the trends in employment become more evident. The rate of growth in employment has declined precipitously over the past year.

125 100 75 50 25 0 -25 -50 -75 -100 -125 -150 -175 -200 -225 -250 -275 -300 -325 Jul-09 Jul-07 Jul-08 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Chicago MSA Employment - Non Farm (000s) Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2006 4397.8 4411.7 4445.1 4492.2 4529.9 4572.7 4544.3 4547.6 4553.9 4555.2 4570.3 4573.1 2007 4449.2 4447.5 4487.3 4529.2 4577.6 4610.6 4584.0 4584.5 4579.2 4588.4 4603.7 4601.6 2008 4469.7 4467.3 4487.8 4533.1 4572.4 4588.8 4563.2 4558.4 4536.1 4533.6 4511.2 4480.1 2009 4313.0 4291.2 4282.8 4291.9 4317.4 4321.7 4280.8 4267.6 4265.5 4276.7 4278.1 4264.1 2010 4137.4 4146.0 4167.3 4220.2 4274.8 4288.9 4246.1 4255.2 4264.3 4298.8 4311.2 4302.5 2011 4181.1 4190.8 4222.2 4280.6 4313.6 4339.2 4324.0 4332.2 4346.4 4358.4 4372.2 4363.0 2012 4250.0 4261.2 4295.8 4343.1 4385.6 4417.5 4390.6 4403.3 4416.7 4427.2 4446.5 4440.7 2013 4313.5 4334.9 4363.7 4400.3 4456.9 4489.6 4462.5 4477.0 4480.5 4494.2 4511.3 4513.1 2014 4373.5 4387.6 4420.2 4474.2 4531.1 4560.6 4533.5 4541.8 4539.0 4568.7 4580.4 4583.9 2015 4448.6 4465.0 4493.5 4550.1 4611.2 4641.0 4620.8 4619.3 4620.8 4659.6 4660.1 4640.6 2016 4514.9 4542.2 4573.3 4620.9 4675.7 4701.8 4686.9 4677.3 4677.0 4701.6 4696.2 4672.8

Revised BLS numbers indicate a deceleration in employment growth as follows:

Employment Change Year Annual Change 2007 37,417 2008 (28,425) 2009 (237,575) 2010 (44,842) 2011 59,250 2012 71,208 2013 68,275 2014 66,417 2015 78,008 2016 59,167

DEMOGRAPHIC TRENDS – 2017 STATISTICS

In researching the demographics of the target market area, we have provided Claritas data from the Nielsen Company for the demographics of the residents located within Northwest Indiana.

We fully recognize that while the demographics provide insights into the existing population, demand for the subject units will come from both the immediate market area and from outside this market area.

Boundary Map

Crown Point, IN Highland, IN Merrillville, IN Whiting, IN Description Total % Total % Total % Total % Population 2022 Projection 30,172 22,483 36,705 4,542 2017 Estimate 29,484 22,847 36,161 4,676 2010 Census 27,317 23,727 35,246 4,997 2000 Census 20,924 23,543 29,940 5,133 Growth 2017 - 2022 2.33% -1.59% 1.50% -2.87% Growth 2010 - 2017 7.93% -3.71% 2.60% -6.42% Growth 2000 - 2010 30.55% 0.78% 17.72% -2.65%

2017 Est. Population by Sex 29,484 22,847 36,161 4,676 Male 14,761 50.06% 11,003 48.16% 17,041 47.13% 2,308 49.36% Female 14,723 49.94% 11,844 51.84% 19,120 52.87% 2,368 50.64%

2017 Est. Population by Age 29,484 22,847 36,161 4,676 Age 0 - 4 1,524 5.17% 1,074 4.70% 2,142 5.92% 319 6.82% Age 5 - 9 1,624 5.51% 1,169 5.12% 2,268 6.27% 324 6.93% Age 10 - 14 1,742 5.91% 1,286 5.63% 2,421 6.70% 355 7.59% Age 15 - 17 1,136 3.85% 832 3.64% 1,541 4.26% 195 4.17% Age 18 - 20 1,084 3.68% 775 3.39% 1,422 3.93% 181 3.87% Age 21 - 24 1,536 5.21% 1,089 4.77% 1,918 5.30% 254 5.43% Age 25 - 34 3,614 12.26% 2,815 12.32% 4,762 13.17% 633 13.54% Age 35 - 44 3,893 13.20% 2,951 12.92% 4,861 13.44% 637 13.62% Age 45 - 54 3,814 12.94% 3,180 13.92% 4,574 12.65% 601 12.85% Age 55 - 64 4,106 13.93% 3,321 14.54% 4,465 12.35% 578 12.36% Age 65 - 74 2,963 10.05% 2,302 10.08% 3,093 8.55% 341 7.29% Age 75 - 84 1,624 5.51% 1,436 6.29% 1,688 4.67% 173 3.70% Age 85 and over 824 2.79% 617 2.70% 1,006 2.78% 85 1.82% Age 16 and over 24,222 82.15% 19,043 83.35% 28,822 79.70% 3,615 77.31% Age 18 and over 23,458 79.56% 18,486 80.91% 27,789 76.85% 3,483 74.49% Age 21 and over 22,374 75.89% 17,711 77.52% 26,367 72.92% 3,302 70.62% Age 65 and over 5,411 18.35% 4,355 19.06% 5,787 16.00% 599 12.81%

2017 Est. Median Age 41.4 43.1 38.3 36.2

2017 Est. Average Age 41.5 42.6 39.3 37.3

Households 2022 Projection 11,372 9,627 14,623 1,760 2017 Estimate 11,133 9,710 14,289 1,801 2010 Census 10,409 9,924 13,689 1,899 2000 Census 8,003 9,635 11,435 2,089

Growth 2017 - 2022 2.15% -0.85% 2.34% -2.28% Growth 2010 - 2017 6.96% -2.16% 4.38% -5.16% Growth 2000 - 2010 30.06% 3.00% 19.71% -9.10%

2017 Est. Households by HH Income 11,133 9,710 14,289 1,801 Income < $15,000 632 5.68% 612 6.30% 1,631 11.41% 194 10.77% Income $15,000 - $24,999 901 8.09% 766 7.89% 1,545 10.81% 142 7.88% Income $25,000 - $34,999 934 8.39% 783 8.06% 1,498 10.48% 165 9.16% Income $35,000 - $49,999 1,192 10.71% 1,294 13.33% 2,064 14.44% 319 17.71% Income $50,000 - $74,999 2,165 19.45% 2,144 22.08% 2,991 20.93% 315 17.49% Income $75,000 - $99,999 1,703 15.30% 1,616 16.64% 2,005 14.03% 226 12.55% Income $100,000 - $124,999 1,375 12.35% 1,018 10.48% 1,219 8.53% 233 12.94% Income $125,000 - $149,999 877 7.88% 686 7.06% 646 4.52% 119 6.61% Income $150,000 - $199,999 691 6.21% 526 5.42% 475 3.32% 58 3.22% Income $200,000 - $249,999 295 2.65% 167 1.72% 151 1.06% 19 1.05% Income $250,000 - $499,999 297 2.67% 87 0.90% 59 0.41% 10 0.56% Income $500,000+ 71 0.64% 11 0.11% 5 0.03% 1 0.06% Source: Nielsen

Crown Point, IN Highland, IN Merrillville, IN Whiting, IN Description Total % Total % Total % Total % 2017 Est. Average Household Income $88,926 $77,108 $63,292 $68,724 2017 Est. Median Household Income $72,027 $66,325 $53,398 $56,389

2017 Est. Households by Household 11,133 9,710 14,289 1,801 Size 1-person 2,946 26.46% 2,965 30.54% 4,451 31.15% 554 30.76% 2-person 3,851 34.59% 3,296 33.94% 4,289 30.02% 481 26.71% 3-person 1,851 16.63% 1,563 16.10% 2,343 16.40% 297 16.49% 4-person 1,425 12.80% 1,190 12.26% 1,684 11.79% 246 13.66% 5-person 684 6.14% 465 4.79% 860 6.02% 129 7.16% 6-person 250 2.25% 160 1.65% 397 2.78% 53 2.94% 7-or-more-person 126 1.13% 71 0.73% 265 1.85% 41 2.28%

2017 Est. Average Household Size 2.50 2.35 2.49 2.60

2017 Est. Households by Number of 11,133 9,710 14,289 1,801 Vehicles No Vehicles 587 5.27% 264 2.72% 1,048 7.33% 171 9.49% 1 Vehicle 3,347 30.06% 3,792 39.05% 5,526 38.67% 776 43.09% 2 Vehicles 4,933 44.31% 3,815 39.29% 5,235 36.64% 579 32.15% 3 Vehicles 1,638 14.71% 1,358 13.99% 1,767 12.37% 227 12.60% 4 Vehicles 543 4.88% 319 3.29% 572 4.00% 46 2.55% 5 or more Vehicles 85 0.76% 162 1.67% 141 0.99% 2 0.11%

2017 Est. Average Number of Vehicles 1.9 1.8 1.7 1.6

2017 Est. Workers Age 16+ by Transp. to 13,589 11,700 16,031 2,212 Work 2017 Est. Workers Age 16+ by Travel Time to Work Less than 15 Minutes 4,203 3,016 3,438 678 15 - 29 Minutes 3,569 4,501 5,898 608 30 - 44 Minutes 2,548 2,007 3,569 418 45 - 59 Minutes 1,452 809 1,393 314 60 or more Minutes 1,368 1,026 1,538 165

2017 Est. Avg Travel Time to Work in 30.00 28.00 30.00 29.00 Minutes

2017 Est. Occupied Housing Units by 11,133 9,710 14,289 1,801 Tenure Owner Occupied 8,936 80.27% 7,564 77.90% 9,192 64.33% 1,005 55.80% Renter Occupied 2,197 19.73% 2,146 22.10% 5,097 35.67% 796 44.20%

2017 Owner Occ. HUs: Avg. Length of 15.5 20.5 16.6 22.1 Residence

2017 Renter Occ. HUs: Avg. Length of 7.0 6.8 6.4 6.5 Residence Source: Nielsen

2017 Household Income by Age of Householder – Whiting, IN

Whiting, IN

Description Age 15 - 24 Age 25 - 34 Age 35 - 44 Age 45 - 54 Age 55 - 64 Age 65 - 74 Age 75 - 84 Age 85+ Household Totals 60 267 350 346 346 240 125 67 % of Total Households 3.33% 14.83% 19.43% 19.21% 19.21% 13.33% 6.94% 3.72%

Income Less than $15,000 6 39 41 23 24 27 20 14 % Across Age Ranges 3.09% 20.10% 21.13% 11.86% 12.37% 13.92% 10.31% 7.22% % Within Age Range 10.00% 14.61% 11.71% 6.65% 6.94% 11.25% 16.00% 20.90% Income $15,000 - $24,999 5 17 18 15 21 27 23 16 % Across Age Ranges 3.52% 11.97% 12.68% 10.56% 14.79% 19.01% 16.20% 11.27% % Within Age Range 8.33% 6.37% 5.14% 4.34% 6.07% 11.25% 18.40% 23.88% Income $25,000 - $34,999 5 8 5 24 27 45 33 18 % Across Age Ranges 3.03% 4.85% 3.03% 14.55% 16.36% 27.27% 20.00% 10.91% % Within Age Range 8.33% 3.00% 1.43% 6.94% 7.80% 18.75% 26.40% 26.87% Income $35,000 - $49,999 11 67 81 48 50 37 19 6 % Across Age Ranges 3.45% 21.00% 25.39% 15.05% 15.67% 11.60% 5.96% 1.88% % Within Age Range 18.33% 25.09% 23.14% 13.87% 14.45% 15.42% 15.20% 8.96% Income $50,000 - $74,999 31 39 52 56 61 50 17 9 % Across Age Ranges 9.84% 12.38% 16.51% 17.78% 19.37% 15.87% 5.40% 2.86% % Within Age Range 51.67% 14.61% 14.86% 16.18% 17.63% 20.83% 13.60% 13.43% Income $75,000 - $99,999 1 48 67 48 47 11 3 1 % Across Age Ranges 0.44% 21.24% 29.65% 21.24% 20.80% 4.87% 1.33% 0.44% % Within Age Range 1.67% 17.98% 19.14% 13.87% 13.58% 4.58% 2.40% 1.49% Income $100,000 - $124,999 1 22 39 69 60 32 7 3 % Across Age Ranges 0.43% 9.44% 16.74% 29.61% 25.75% 13.73% 3.00% 1.29% % Within Age Range 1.67% 8.24% 11.14% 19.94% 17.34% 13.33% 5.60% 4.48% Income $125,000 - $149,999 0 21 33 34 31 0 0 0 % Across Age Ranges 0.00% 17.65% 27.73% 28.57% 26.05% 0.00% 0.00% 0.00% % Within Age Range 0.00% 7.87% 9.43% 9.83% 8.96% 0.00% 0.00% 0.00% Income $150,000 - $199,999 0 3 7 19 16 10 3 0 % Across Age Ranges 0.00% 5.17% 12.07% 32.76% 27.59% 17.24% 5.17% 0.00% % Within Age Range 0.00% 1.12% 2.00% 5.49% 4.62% 4.17% 2.40% 0.00% Income $200,000 or more 0 3 7 10 9 1 0 0 % Across Age Ranges 0.00% 10.00% 23.33% 33.33% 30.00% 3.33% 0.00% 0.00% % Within Age Range 0.00% 1.12% 2.00% 2.89% 2.60% 0.42% 0.00% 0.00% Median Household Income $52,419 $51,603 $64,423 $78,646 $70,902 $43,514 $30,909 $26,944

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2017 Household Income by Age of Householder – Crown Point, IN

Crown Point, IN

Description Age 15 - 24 Age 25 - 34 Age 35 - 44 Age 45 - 54 Age 55 - 64 Age 65 - 74 Age 75 - 84 Age 85+ Household Totals 207 1,388 1,919 1,972 2,355 1,776 1,036 480 % of Total Households 1.86% 12.47% 17.24% 17.71% 21.15% 15.95% 9.31% 4.31%

Income Less than $15,000 26 67 63 77 116 96 110 77 % Across Age Ranges 4.11% 10.60% 9.97% 12.18% 18.35% 15.19% 17.41% 12.18% % Within Age Range 12.56% 4.83% 3.28% 3.90% 4.93% 5.41% 10.62% 16.04% Income $15,000 - $24,999 35 65 71 83 133 195 207 112 % Across Age Ranges 3.88% 7.21% 7.88% 9.21% 14.76% 21.64% 22.97% 12.43% % Within Age Range 16.91% 4.68% 3.70% 4.21% 5.65% 10.98% 19.98% 23.33% Income $25,000 - $34,999 16 91 99 57 88 262 210 111 % Across Age Ranges 1.71% 9.74% 10.60% 6.10% 9.42% 28.05% 22.48% 11.88% % Within Age Range 7.73% 6.56% 5.16% 2.89% 3.74% 14.75% 20.27% 23.13% Income $35,000 - $49,999 9 132 157 155 221 276 175 67 % Across Age Ranges 0.76% 11.07% 13.17% 13.00% 18.54% 23.15% 14.68% 5.62% % Within Age Range 4.35% 9.51% 8.18% 7.86% 9.38% 15.54% 16.89% 13.96% Income $50,000 - $74,999 79 349 417 319 405 375 161 60 % Across Age Ranges 3.65% 16.12% 19.26% 14.73% 18.71% 17.32% 7.44% 2.77% % Within Age Range 38.16% 25.14% 21.73% 16.18% 17.20% 21.11% 15.54% 12.50% Income $75,000 - $99,999 35 258 341 308 359 277 95 30 % Across Age Ranges 2.06% 15.15% 20.02% 18.09% 21.08% 16.27% 5.58% 1.76% % Within Age Range 16.91% 18.59% 17.77% 15.62% 15.24% 15.60% 9.17% 6.25% Income $100,000 - $124,999 4 202 320 318 350 132 34 15 % Across Age Ranges 0.29% 14.69% 23.27% 23.13% 25.45% 9.60% 2.47% 1.09% % Within Age Range 1.93% 14.55% 16.68% 16.13% 14.86% 7.43% 3.28% 3.13% Income $125,000 - $149,999 0 118 193 241 269 41 11 4 % Across Age Ranges 0.00% 13.45% 22.01% 27.48% 30.67% 4.68% 1.25% 0.46% % Within Age Range 0.00% 8.50% 10.06% 12.22% 11.42% 2.31% 1.06% 0.83% Income $150,000 - $199,999 3 70 158 188 187 64 19 2 % Across Age Ranges 0.43% 10.13% 22.87% 27.21% 27.06% 9.26% 2.75% 0.29% % Within Age Range 1.45% 5.04% 8.23% 9.53% 7.94% 3.60% 1.83% 0.42% Income $200,000 or more 0 36 100 226 227 58 14 2 % Across Age Ranges 0.00% 5.43% 15.08% 34.09% 34.24% 8.75% 2.11% 0.30% % Within Age Range 0.00% 2.59% 5.21% 11.46% 9.64% 3.27% 1.35% 0.42% Median Household Income $55,538 $74,284 $86,180 $98,945 $89,937 $53,933 $34,571 $29,595

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2017 Household Income by Age of Householder – Highland, IN

Highland, IN

Description Age 15 - 24 Age 25 - 34 Age 35 - 44 Age 45 - 54 Age 55 - 64 Age 65 - 74 Age 75 - 84 Age 85+ Household Totals 187 1,263 1,585 1,799 1,985 1,410 1,014 467 % of Total Households 1.93% 13.01% 16.32% 18.53% 20.44% 14.52% 10.44% 4.81%

Income Less than $15,000 54 58 47 60 90 102 122 79 % Across Age Ranges 8.82% 9.48% 7.68% 9.80% 14.71% 16.67% 19.93% 12.91% % Within Age Range 28.88% 4.59% 2.97% 3.34% 4.53% 7.23% 12.03% 16.92% Income $15,000 - $24,999 36 117 116 65 89 111 148 84 % Across Age Ranges 4.70% 15.27% 15.14% 8.49% 11.62% 14.49% 19.32% 10.97% % Within Age Range 19.25% 9.26% 7.32% 3.61% 4.48% 7.87% 14.60% 17.99% Income $25,000 - $34,999 5 72 67 83 101 177 177 101 % Across Age Ranges 0.64% 9.20% 8.56% 10.60% 12.90% 22.61% 22.61% 12.90% % Within Age Range 2.67% 5.70% 4.23% 4.61% 5.09% 12.55% 17.46% 21.63% Income $35,000 - $49,999 41 199 207 179 233 200 168 67 % Across Age Ranges 3.17% 15.38% 16.00% 13.83% 18.01% 15.46% 12.98% 5.18% % Within Age Range 21.93% 15.76% 13.06% 9.95% 11.74% 14.18% 16.57% 14.35% Income $50,000 - $74,999 24 302 342 402 451 344 205 74 % Across Age Ranges 1.12% 14.09% 15.95% 18.75% 21.04% 16.04% 9.56% 3.45% % Within Age Range 12.83% 23.91% 21.58% 22.35% 22.72% 24.40% 20.22% 15.85% Income $75,000 - $99,999 24 246 317 348 364 195 95 27 % Across Age Ranges 1.49% 15.22% 19.62% 21.53% 22.52% 12.07% 5.88% 1.67% % Within Age Range 12.83% 19.48% 20.00% 19.34% 18.34% 13.83% 9.37% 5.78% Income $100,000 - $124,999 1 119 192 291 287 84 32 12 % Across Age Ranges 0.10% 11.69% 18.86% 28.59% 28.19% 8.25% 3.14% 1.18% % Within Age Range 0.53% 9.42% 12.11% 16.18% 14.46% 5.96% 3.16% 2.57% Income $125,000 - $149,999 2 83 135 142 146 114 48 16 % Across Age Ranges 0.29% 12.10% 19.68% 20.70% 21.28% 16.62% 7.00% 2.33% % Within Age Range 1.07% 6.57% 8.52% 7.89% 7.36% 8.09% 4.73% 3.43% Income $150,000 - $199,999 0 49 102 150 147 57 14 7 % Across Age Ranges 0.00% 9.32% 19.39% 28.52% 27.95% 10.84% 2.66% 1.33% % Within Age Range 0.00% 3.88% 6.44% 8.34% 7.41% 4.04% 1.38% 1.50% Income $200,000 or more 0 18 60 79 77 26 5 0 % Across Age Ranges 0.00% 6.79% 22.64% 29.81% 29.06% 9.81% 1.89% 0.00% % Within Age Range 0.00% 1.43% 3.79% 4.39% 3.88% 1.84% 0.49% 0.00% Median Household Income $32,000 $65,356 $76,065 $82,938 $76,957 $58,358 $40,357 $31,980

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2017 Household Income by Age of Householder – Merrillville, IN

Merrillville, IN

Description Age 15 - 24 Age 25 - 34 Age 35 - 44 Age 45 - 54 Age 55 - 64 Age 65 - 74 Age 75 - 84 Age 85+ Household Totals 431 2,192 2,619 2,579 2,745 1,968 1,107 648 % of Total Households 3.02% 15.34% 18.33% 18.05% 19.21% 13.77% 7.75% 4.53%

Income Less than $15,000 96 202 193 214 283 220 225 198 % Across Age Ranges 5.89% 12.39% 11.83% 13.12% 17.35% 13.49% 13.80% 12.14% % Within Age Range 22.27% 9.22% 7.37% 8.30% 10.31% 11.18% 20.33% 30.56% Income $15,000 - $24,999 28 264 255 170 231 243 219 135 % Across Age Ranges 1.81% 17.09% 16.50% 11.00% 14.95% 15.73% 14.17% 8.74% % Within Age Range 6.50% 12.04% 9.74% 6.59% 8.42% 12.35% 19.78% 20.83% Income $25,000 - $34,999 70 229 223 253 283 200 145 95 % Across Age Ranges 4.67% 15.29% 14.89% 16.89% 18.89% 13.35% 9.68% 6.34% % Within Age Range 16.24% 10.45% 8.51% 9.81% 10.31% 10.16% 13.10% 14.66% Income $35,000 - $49,999 90 323 354 287 335 363 212 100 % Across Age Ranges 4.36% 15.65% 17.15% 13.91% 16.23% 17.59% 10.27% 4.84% % Within Age Range 20.88% 14.74% 13.52% 11.13% 12.20% 18.45% 19.15% 15.43% Income $50,000 - $74,999 121 485 559 611 646 375 137 57 % Across Age Ranges 4.05% 16.22% 18.69% 20.43% 21.60% 12.54% 4.58% 1.91% % Within Age Range 28.07% 22.13% 21.34% 23.69% 23.53% 19.05% 12.38% 8.80% Income $75,000 - $99,999 21 383 508 347 335 270 101 40 % Across Age Ranges 1.05% 19.10% 25.34% 17.31% 16.71% 13.47% 5.04% 2.00% % Within Age Range 4.87% 17.47% 19.40% 13.45% 12.20% 13.72% 9.12% 6.17% Income $100,000 - $124,999 3 193 309 282 254 135 30 13 % Across Age Ranges 0.25% 15.83% 25.35% 23.13% 20.84% 11.07% 2.46% 1.07% % Within Age Range 0.70% 8.80% 11.80% 10.93% 9.25% 6.86% 2.71% 2.01% Income $125,000 - $149,999 2 73 114 184 171 79 18 5 % Across Age Ranges 0.31% 11.30% 17.65% 28.48% 26.47% 12.23% 2.79% 0.77% % Within Age Range 0.46% 3.33% 4.35% 7.13% 6.23% 4.01% 1.63% 0.77% Income $150,000 - $199,999 0 30 69 148 134 71 20 3 % Across Age Ranges 0.00% 6.32% 14.53% 31.16% 28.21% 14.95% 4.21% 0.63% % Within Age Range 0.00% 1.37% 2.63% 5.74% 4.88% 3.61% 1.81% 0.46% Income $200,000 or more 0 10 35 83 73 12 0 2 % Across Age Ranges 0.00% 4.65% 16.28% 38.60% 33.95% 5.58% 0.00% 0.93% % Within Age Range 0.00% 0.46% 1.34% 3.22% 2.66% 0.61% 0.00% 0.31% Median Household Income $38,583 $54,021 $62,724 $64,955 $59,307 $48,264 $32,552 $24,333

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RENTAL COMPETITION SURVEY

In this section of the report, we have included a survey of the competitive rental apartment units located in the market. We have considered properties within the surrounding communities that are Class A rental properties that were developed within the last several years. The following is a summary of our rental survey.

Primary Data Rental Survey Summary No. of Avg Quoted Quoted Effective Effective Unit Type Units Percent SF Rent PSF Rent PSF 1BR 353 23.18% 749 $992 $1.33 $992 $1.33 1BR+Den 128 8.40% 1,018 $1,169 $1.15 $1,169 $1.15 2BR 964 63.30% 1,079 $1,258 $1.17 $1,258 $1.17 3BR 78 5.12% 1,311 $1,363 $1.04 $1,363 $1.04 Total 1,523 100.00%

Average Monthly Rent and Unit Size (SF) $1,600 $1,363 $1,400 $1,258 1,311 $1,169 $1,200 1,079 $992 1,018 $1,000 749 $800 Avg Rent

$600 Avg SF

$400

$200

$0 1BR 1BR+Den 2BR 3BR

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Rental Competition Survey

Unit Mix Avg Net Effective Rent PSF 5.12% $1.50 $1.33 $1.15 $1.17 23.18% $1.04 1BR $1.00 1BR+Den 8.40% 2BR $0.50 3BR 63.30% $0.00 1BR 1BR+Den 2BR 3BR

Avg SF by Unit Type Avg Net Effective Rent by Unit Type 1,400 1,311 $1,600 $1,363 1,200 1,079 $1,400 $1,258 1,018 $1,169 $1,200 1,000 $992 749 $1,000 800 $800 SF 600 $600 400 $400 200 $200 0 $0 1BR 1BR+Den 2BR 3BR 1BR 1BR+Den 2BR 3BR

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Existing Competition Map – Primary and Secondary Data

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Existing Competition Overview

Avg Avg Quoted Avg Net Effec Monthly Property Address Submarket Built Units Size (SF) Rent PSF Rent PSF Occupancy Garage Fee SUBJECT 119th St & Front St Whiting Proposed TBD

Rental Market Survey - Effective Rent PSF & Avg Unit SF $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 700 750 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 1,300

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Unit Mix

Unit Mix Property Built Units Studio Conv 1BR 1BR+Den 2BR 2BR+Den 3BR

Embassy Place 1998 128 100.00% Brickshire 2008/2013 296 33.78% 50.00% 16.22% City Place 2015 24 100.00% Enclave at Coffee Creek Center 2004 88 9.09% 9.09% 81.82% Mallard Bay 1996 246 29.27% 63.41% 7.32% Prairie Point 2014 440 18.18% 27.27% 54.55% Prairie Square 2014 176 38.64% 61.36% Traditions at the Village 2014 125 20.00% 70.40% 9.60% Total/Avg 1,523

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Unit Sizes (Square Footage)

Average Unit Square Footage Property Built Units Studio Conv 1BR 1BR+Den 2BR 2BR+Den 3BR

Embassy Place 1998 128 1,210-1,300 Brickshire 2008/2013 296 707-756 863-1,205 1,218-1,331 City Place 2015 24 904-938 Enclave at Coffee Creek Center 2004 88 856 1,032 1,316 Mallard Bay 1996 246 777 962-1,065 1,370 Prairie Point 2014 440 753-948 906-1,118 978-1,276 Prairie Square 2014 176 592-665 852-925 Traditions at the Village 2014 125 732-835 916-1,030 1,366 Total/Avg 1,523

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Existing Primary Competition

We have focused on properties built within the last twenty years and located within the surrounding Lake County communities as the primary representative competition. Eight properties with 1,523 units were identified as providing potential competition to the subject units. Geographically, these developments range from Whiting on the north to Crown Point on the south.

One property is located in a similar downtown Whiting location. City Place opened in July 2015 for occupancy. The 24-unit property is a mixed-use, 4-story development in downtown Whiting. The location is within walking distance to the lakefront, and would be considered to be an identical downtown. The finishes are typical of new construction apartments and the amenities include a party room and rooftop deck. Parking is not included in the rent, and is available at a public lot located at the rear of the property. With the similar location and amenity package, the rent levels at this property are expected to be on par with the subject.

There are two properties located in Highland. Embassy Place and Prairie Square. Embassy Place is a 128-unit complex consisting entirely of 2br/2ba units. Every unit at Embassy Place includes an attached 1 car garage, fireplace, and in-unit washer/dryer. Constructed in 1998, the interior finishes include carpeted floors and formica countertops in most units. Some of the units have been renovated to include granite countertops in the kitchens. The complex has no common amenities. The larger unit size in this complex results in rents on a per square foot basis at the lower end of the comparable data set. Prairie Square delivered in 2014, and includes a clubhouse with fitness center. The finishes include quartz countertops and in-unit laundry. The complex is gated, and each unit includes a dedicated parking spot in the adjacent surface lot. Prairie Square includes a number of furnished units offered to extended stay tenants.

There are three developments located along 93rd Avenue, straddling the border between Merrillville and Crown Point that were included in the survey. All of these buildings consist walk-up buildings in a suburban setting. Brickshire and Prairie Point are the most recently constructed building, with second phases being completed in 2013 and 2014, respectively. Mallard Bay is the oldest of these complexes, being delivered in 1996. All of the complexes offer some units with 1 car garages. The finishes at these projects include carpeted floors and formica countertops, but offer superior amenities to what would be available at the subject.

The Enclave at Coffee Creek and Traditions at The Village are located in adjacent Porter County, and were included to provide sufficient sample size for the data set. The Enclave is located in Chesterton, and features larger units and design similar to Embassy Place. Some of the 2BR units in the complex include an attached one car garage. The 88-unit complex was constructed in 2004, and features laminate countertops and carpeted units, and no project amenities. Traditions at The Village is located in Burns Harbor, just south of Lake Michigan. The development was constructed in 2014, and features a central clubhouse with a fitness center and outdoor swimming pool. Unit finishes include in-unit washer/dryer, laminate countertops, and carpeted floors. Some units come with an attached one car garage.

Competition –Under Construction / Proposed for Development

Contact was made with the adjacent communities along the west Lake corridor, including Hammond, Highland, and Munster, which would be most comparable in location. There are no new developments under construction or proposed for these communities.

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Rent Summary

On the following pages is a summary of the current rents at the primary competition followed by the individual project summary pages.

We note that many of the 2BR rental comps are one bath units, while others are two bath units. We anticipate that the subject will have two baths in each of the 2BR units, and have placed greater emphasis on the two bath units in our analysis.

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One Bedroom Units

Quoted Rent Net Effective Rent Unit Description Units Pct Sq Ft Rent PSF Avg Concession Rent PSF Avg Brickshire One Bedroom 100 33.8% 707 $860 $1.22 $1.26 0.0% $860 $1.22 $1.26 1.0 Bath 756 $984 $1.30 $984 $1.30 Enclave at Coffee Creek Center One Bedroom 8 9.1% 856 $850 $0.99 $0.99 0.0% $850 $0.99 $0.99 1.0 Bath 856 $850 $0.99 $850 $0.99 Mallard Bay One Bedroom 72 29.3% 777 $904 $1.16 $1.18 0.0% $904 $1.16 $1.18 1.0 Bath 777 $934 $1.20 $934 $1.20 Prairie Point One Bedroom 60 13.6% 753 $1,027 $1.36 $1.47 0.0% $1,027 $1.36 $1.47 1.0 Bath 814 $1,285 $1.58 $1,285 $1.58 Prairie Point - Reserve One Bedroom 20 4.5% 948 $1,347 $1.42 $1.42 0.0% $1,347 $1.42 $1.42 1.0 Bath 948 $1,347 $1.42 $1,347 $1.42 Prairie Square One Bedroom 68 38.6% 592 $965 $1.63 $1.57 0.0% $965 $1.63 $1.57 1.0 Bath 665 $1,005 $1.51 $1,005 $1.51 Traditions at the Village One Bedroom 25 20.0% 732 $839 $1.15 $1.11 0.0% $839 $1.15 $1.11 1.0 Bath 835 $899 $1.08 $899 $1.08 Total # of Units 353

Weighted Averages 749 $992 $1.33 $992 $1.33

One Bedroom + Den Units

Quoted Rent Net Effective Rent Unit Description Units Pct Sq Ft Rent PSF Avg Concession Rent PSF Avg Enclave at Coffee Creek Center One Bedroom + Den 8 9.1% 1,032 $995 $0.96 $0.96 0.0% $995 $0.96 $0.96 1.0 Bath 1,032 $996 $0.97 $996 $0.97 Prairie Point One Bedroom + Den 60 13.6% 906 $1,122 $1.24 $1.19 0.0% $1,122 $1.24 $1.19 1.0 Bath 1,048 $1,186 $1.13 $1,186 $1.13 Prairie Point One Bedroom + Den 60 13.6% 998 $1,194 $1.20 $1.14 0.0% $1,194 $1.20 $1.14 1.5 Bath 1,118 $1,219 $1.09 $1,219 $1.09

Total 128 Weighted Averages 1,018 $1,169 $1.15 $1,169 $1.15

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Two Bedroom Units

Quoted Rent Net Effective Rent Unit Description U nits Pct Sq Ft Rent PSF Avg Concession Rent PSF Avg Brickshire Two Bedroom 148 50.0% 863 $1,114 $1.29 $1.18 0.0% $1,114 $1.29 $1.18 1.0-2.0 Bath 1,205 $1,294 $1.07 $1,294 $1.07 City Place Two Bedroom 24 100.0% 904 $1,025 $1.13 $1.29 0.0% $1,025 $1.13 $1.29 2.0 Bath 938 $1,350 $1.44 $1,350 $1.44 Embassy Place Two Bedroom 60 46.9% 1,210 $1,445 $1.19 $1.19 0.0% $1,445 $1.19 $1.19 2.0 Bath 1,210 $1,445 $1.19 $1,445 $1.19 Embassy Place Two Bedroom 68 53.1% 1,300 $1,475 $1.13 $1.13 0.0% $1,475 $1.13 $1.13 2.0 Bath 1,300 $1,475 $1.13 $1,475 $1.13 Enclave at Coffee Creek Center Two Bedroom 72 81.8% 1,316 $1,250 $0.95 $0.95 0.0% $1,250 $0.95 $0.95 2.0 Bath 1,316 $1,250 $0.95 $1,250 $0.95 Mallard Bay Two Bedroom 78 31.7% 962 $1,014 $1.05 $1.10 0.0% $1,014 $1.05 $1.10 2.0 Bath 1,065 $1,214 $1.14 $1,214 $1.14 Mallard Bay Two Bedroom 78 31.7% 971 $1,054 $1.09 $1.10 0.0% $1,054 $1.09 $1.10 1.0 Bath 971 $1,074 $1.11 $1,074 $1.11 Prairie Point Two Bedroom 40 9.1% 978 $1,180 $1.21 $1.16 0.0% $1,180 $1.21 $1.16 1.0 Bath 1,164 $1,302 $1.12 $1,302 $1.12 Prairie Point - Reserve Two Bedroom 120 27.3% 1,025 $1,138 $1.11 $1.11 0.0% $1,138 $1.11 $1.11 2.0 Bath 1,276 $1,409 $1.10 $1,409 $1.10 Prairie Point Two Bedroom 80 18.2% 1,025 $1,409 $1.37 $1.40 0.0% $1,409 $1.37 $1.40 2.0 Bath 1,276 $1,827 $1.43 $1,827 $1.43 Prairie Square Two Bedroom 108 61.4% 852 $1,200 $1.41 $1.41 0.0% $1,200 $1.41 $1.41 2.0 Bath 925 $1,305 $1.41 $1,305 $1.41 Traditions at the Village Two Bedroom 88 70.4% 916 $1,029 $1.12 $1.09 0.0% $1,029 $1.12 $1.09 1.0-2.0 Bath 1,030 $1,089 $1.06 $1,089 $1.06

Total # Units 964 Weighted Averages 1,079 $1,258 $1.17 $1,258 $1.17

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Three Bedroom Units Quoted Rent Net Effective Rent Unit Description Units Pct Sq Ft Rent PSF Avg Concession Rent PSF Avg Brickshire Three Bedroom 48 16.2% 1,218 $1,354 $1.11 $1.07 0.0% $1,354 $1.11 $1.07 2.0 Bath 1,331 $1,371 $1.03 $1,371 $1.03 Mallard Bay Three Bedroom 18 7.3% 1,370 $1,344 $0.98 $1.01 0.0% $1,344 $0.98 $1.01 2.0 Bath 1,370 $1,414 $1.03 $1,414 $1.03 Traditions at the Village Three Bedroom 12 9.6% 1,366 $1,339 $0.98 $0.98 0.0% $1,339 $0.98 $0.98 2.0 Bath 1,366 $1,339 $0.98 $1,339 $0.98

Total # Units: 78

Weigthed Averages 1,311 $1,363 $1.04 $1,363 $1.04

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Brickshire Lake County IN 9000 Lincoln St Class: A, Market Rate Merrillville, Lake County, IN ID: 1011; YrQtr: 20171

Utility Description_____ L_ _T Service__ L_ _T Physical Profile______Economic Profile______Lights  Trash  Units: 296 Occupancy: 91.9% Gas Forced Air Heat  Water  Avg Unit SF: 971 Quoted Rent: $1.17 Unit Central AC  Cable TV  Built: 2008 Concessions: 0.0% L=Landlord pays, T=Tenant pays Internet  Renovated: na Effective Rent: $1.17 ______Quoted Rent______Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 100 33.8% 707 $860 $1.22 $1.26 0.0% $860 $1.22 $1.26 1.0 Bath 756 $984 $1.30 $984 $1.30 Two Bedroom 148 50.0% 863 $1,114 $1.29 $1.18 0.0% $1,114 $1.29 $1.18 1.0-2.0 Bath 1,205 $1,294 $1.07 $1,294 $1.07 Three Bedroom 48 16.2% 1,218 $1,354 $1.11 $1.07 0.0% $1,354 $1.11 $1.07 2.0 Bath 1,331 $1,371 $1.03 $1,371 $1.03

Paid Parking: $125 (Attached Garage) per month. Free parking available.

Amenities______Trends______Unit Appliance Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Carpeting Dishwasher Laundry Room 20171 $1.17 0.0% 91.9% $1.17 9' Ceiling Microwave Business Center Popcorn Ceiling Range - Electric Clubhouse Window Blinds Refrigerator Conference Room Laminate Counters WasherDryer Incl Library Patio/Balcony/Deck Wash/Dry Hookup Party/Social Room Fitness Pets Allowed Fitness Center Dog Run Outdoor Pool Parking Surface Parking Attached Garage

Notes: Brickshire was constructed in two phases, with Phase I (132 units) completed in Edward Rose & Sons 2008, and Phase II (164 units) completed in 2013.

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City Place Lake County IN 1518 119th St Class: A, Market Rate Whiting, Lake County, IN 46394 ID: 1640; YrQtr: 20171

Utility Description_____ L_ _T Service__ L_ _T Physical Profile______Economic Profile______Lights  Trash  Units: 24 Occupancy: 100.0% Gas Forced Air Heat  Water  Avg Unit SF: 921 Quoted Rent: $1.29 Unit Central AC  Cable TV  Built: 2015 Concessions: 0.0% L=Landlord pays, T=Tenant pays Internet  Renovated: na Effective Rent: $1.29 ______Quoted Rent______Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg Two Bedroom 24 100.0% 904 $1,025 $1.13 $1.29 0.0% $1,025 $1.13 $1.29 2.0 Bath 938 $1,350 $1.44 $1,350 $1.44

Amenities______Trends______Unit Appliance Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Wood Floors Dishwasher Party/Social Room 20171 $1.29 0.0% 100.0% $1.29 Smooth Ceiling Microwave Extra Storage Window Blinds Range - Gas Pets Allowed Granite Counters Refrigerator Undermount Sinks WasherDryer Incl Intercom Fitness Rooftop Sundeck

Notes: Occupancy began 07/2015.

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Embassy Place Lake County IN 2319 Teakwood Circle Class: A, Market Rate Highland, Lake County, IN ID: 1013; YrQtr: 20171

Utility Description_____ L_ _T Service__ L_ _T Physical Profile______Economic Profile______Lights  Trash  Units: 128 Occupancy: 92.2% Gas Forced Air Heat  Water  Avg Unit SF: 1,258 Quoted Rent: $1.16 Unit Central AC  Cable TV  Built: 1998 Concessions: 0.0% L=Landlord pays, T=Tenant pays Internet  Renovated: na Effective Rent: $1.16 ______Quoted Rent______Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg Two Bedroom 60 46.9% 1,210 $1,445 $1.19 $1.19 0.0% $1,445 $1.19 $1.19 2.0 Bath 1,210 $1,445 $1.19 $1,445 $1.19 ● 1st Floor units Two Bedroom 68 53.1% 1,300 $1,475 $1.13 $1.13 0.0% $1,475 $1.13 $1.13 2.0 Bath 1,300 $1,475 $1.13 $1,475 $1.13 ● 2nd Floor units

Amenities______Trends______Unit Appliance Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Carpeting Disposal Smoke Free 20171 $1.16 0.0% 92.2% $1.16 Smooth Ceiling Dishwasher Pets Allowed Window Blinds Microwave Parking Granite Counters Range - Gas Surface Parking Laminate Counters Refrigerator Attached Garage Patio/Balcony/Deck WasherDryer Incl Fireplace

Notes: Each apartment at Embassy Place has an attached one-car garage that is included, ATG Development in-unit washer/dryer, fireplace, and gas-fired forced air furnace and central air.

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Enclave at Coffee Creek Center Porter County 2135 Dickinson Rd Class: A, Market Rate Chesterton, Porter County, IN 46304 ID: 1334; YrQtr: 20171

Utility Description_____ L_ _T Service__ L_ _T Physical Profile______Economic Profile______Lights  Trash  Units: 88 Occupancy: 100.0% Gas Forced Air Heat  Water  Avg Unit SF: 1,248 Quoted Rent: $0.95 Unit Central AC  Cable TV  Built: 2004 Concessions: 0.0% L=Landlord pays, T=Tenant pays Internet  Renovated: na Effective Rent: $0.95 ______Quoted Rent______Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 8 9.1% 856 $850 $0.99 $0.99 0.0% $850 $0.99 $0.99 1.0 Bath 856 $850 $0.99 $850 $0.99 One Bedroom + Den 8 9.1% 1,032 $995 $0.96 $0.96 0.0% $995 $0.96 $0.96 1.0 Bath 1,032 $996 $0.97 $996 $0.97 Two Bedroom 72 81.8% 1,316 $1,250 $0.95 $0.95 0.0% $1,250 $0.95 $0.95 2.0 Bath 1,316 $1,250 $0.95 $1,250 $0.95 ● Incl. garage

Free parking available.

Amenities______Trends______Unit Appliance Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Carpeting Disposal Smoke Free 20171 $0.95 0.0% 100.0% $0.95 Smooth Ceiling Dishwasher Pets Allowed Cathedral Ceiling Microwave Parking Laminate Counters Range - Gas Surface Parking Patio/Balcony/Deck Refrigerator Attached Garage Fireplace WasherDryer Incl Fitness Fitness Trails

Notes: Two bedroom units have attached garages included. IGC Residential Property Management

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Mallard Bay Lake County IN 9310 Monroe St Class: A, Market Rate Crown Point, Lake County, IN 46307 ID: 1012; YrQtr: 20171

Utility Description_____ L_ _T Service__ L_ _T Physical Profile______Economic Profile______Lights  Trash  Units: 246 Occupancy: 95.9% Gas Forced Air Heat  Water  Avg Unit SF: 957 Quoted Rent: $1.11 Unit Central AC  Cable TV  Built: 1996 Concessions: 0.0% L=Landlord pays, T=Tenant pays Internet  Renovated: na Effective Rent: $1.11 ______Quoted Rent______Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 72 29.3% 777 $904 $1.16 $1.18 0.0% $904 $1.16 $1.18 1.0 Bath 777 $934 $1.20 $934 $1.20 ● Reduced Move in Fees Two Bedroom 78 31.7% 962 $1,014 $1.05 $1.10 0.0% $1,014 $1.05 $1.10 2.0 Bath 1,065 $1,214 $1.14 $1,214 $1.14 ● Reduced Move in Fees Two Bedroom 78 31.7% 971 $1,054 $1.09 $1.10 0.0% $1,054 $1.09 $1.10 1.0 Bath 971 $1,074 $1.11 $1,074 $1.11 ● Reduced Move in Fees Three Bedroom 18 7.3% 1,370 $1,344 $0.98 $1.01 0.0% $1,344 $0.98 $1.01 2.0 Bath 1,370 $1,414 $1.03 $1,414 $1.03 ● Reduced Move in Fees

Paid Parking: $125 (Detached Garage) per month. Free parking available.

Amenities______Trends______Unit Appliance Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Carpeting Microwave Laundry Room 20171 $1.11 0.0% 95.9% $1.11 Patio/Balcony/Deck Range - Gas Business Center Fireplace Refrigerator Clubhouse WasherDryer Incl Party/Social Room Fitness Extra Storage Fitness Center Pets Allowed Outdoor Pool Grilling Area Whirlpool Picnic Tables Indoor Sport Court Parking Tennis Court Surface Parking Detached Garage

Notes: Edward Rose & Sons

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Prairie Point Lake County IN 9123 Cleveland St Class: A, Market Rate Merrillville, Lake County, IN ID: 1010; YrQtr: 20171

Utility Description_____ L_ _T Service__ L_ _T Physical Profile______Economic Profile______Lights  Trash  Units: 440 Occupancy: 97.3% Gas Forced Air Heat  Water  Avg Unit SF: 1,048 Quoted Rent: $1.24 Unit Central AC  Cable TV  Built: 2002 Concessions: 0.0% L=Landlord pays, T=Tenant pays Internet  Renovated: na Effective Rent: $1.24 ______Quoted Rent______Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 60 13.6% 753 $1,027 $1.36 $1.47 0.0% $1,027 $1.36 $1.47 1.0 Bath 814 $1,285 $1.58 $1,285 $1.58 ● Prairie Point One Bedroom 20 4.5% 948 $1,347 $1.42 $1.42 0.0% $1,347 $1.42 $1.42 1.0 Bath 948 $1,347 $1.42 $1,347 $1.42 ● Reserve One Bedroom + Den 60 13.6% 906 $1,122 $1.24 $1.19 0.0% $1,122 $1.24 $1.19 1.0 Bath 1,048 $1,186 $1.13 $1,186 $1.13 ● Prairie Point One Bedroom + Den 60 13.6% 998 $1,194 $1.20 $1.14 0.0% $1,194 $1.20 $1.14 1.5 Bath 1,118 $1,219 $1.09 $1,219 $1.09 ● Prairie Point Two Bedroom 40 9.1% 978 $1,180 $1.21 $1.16 0.0% $1,180 $1.21 $1.16 1.0 Bath 1,164 $1,302 $1.12 $1,302 $1.12 ● Reserve Two Bedroom 80 18.2% 1,025 $1,409 $1.37 $1.40 0.0% $1,409 $1.37 $1.40 2.0 Bath 1,276 $1,827 $1.43 $1,827 $1.43 ● Reserve Two Bedroom 120 27.3% 1,025 $1,138 $1.11 $1.11 0.0% $1,138 $1.11 $1.11 2.0 Bath 1,276 $1,409 $1.10 $1,409 $1.10 ● Prairie Point

Paid Parking: $75 (Detached Garage) to $125 (Detached Garage) per month.

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Prairie Point continued… Lake County IN 9123 Cleveland St Class: A, Market Rate Merrillville, Lake County, IN ID: 1010; YrQtr: 20171

Amenities______Trends______Unit Appliance Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Carpeting Disposal Business Center 20171 $1.24 0.0% 97.3% $1.24 9' Ceiling Dishwasher Clubhouse 10' Ceiling Microwave Party/Social Room Smooth Ceiling Range - Gas Pets Allowed Patio/Balcony/Deck Refrigerator Parking Fireplace WasherDryer Incl Attached Garage Fitness Detached Garage Fitness Center Outdoor Pool Bike Storage Playground

Notes: Constructed in two phases, Phase I (Prairie Point - 300 units) compl in 2002, and SJBZ Management Phase II (Reserve at Prairie Point - 140 units) compl in 2014. Some 2BD units have att garages that are incl in rent. Det garages available, some with storage space incl.

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Prairie Square Lake County IN 2121 45th St Class: A, Market Rate Highland, Lake County, IN 46322 ID: 1335; YrQtr: 20171

Utility Description_____ L_ _T Service__ L_ _T Physical Profile______Economic Profile______Lights  Trash  Units: 176 Occupancy: 93.2% Gas Forced Air Heat  Water  Avg Unit SF: 788 Quoted Rent: $1.46 Unit Central AC  Cable TV  Built: 2014 Concessions: 0.0% L=Landlord pays, T=Tenant pays Internet  Renovated: na Effective Rent: $1.46 ______Quoted Rent______Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 68 38.6% 592 $965 $1.63 $1.57 0.0% $965 $1.63 $1.57 1.0 Bath 665 $1,005 $1.51 $1,005 $1.51 Two Bedroom 108 61.4% 852 $1,200 $1.41 $1.41 0.0% $1,200 $1.41 $1.41 2.0 Bath 925 $1,305 $1.41 $1,305 $1.41

Free parking available.

Amenities______Trends______Unit Appliance Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Carpeting Disposal Business Center 20171 $1.46 0.0% 93.2% $1.46 Vinyl Plank Floors Dishwasher Clubhouse Smooth Ceiling Microwave Conference Room Cathedral Ceiling Range - Gas Party/Social Room Window Blinds Refrigerator Extra Storage Quartz Counters WasherDryer Incl Parking Undermount Sinks Fitness Surface Parking Patio/Balcony/Deck Fitness Center Attached Garage

Notes: Prairie Square is a gated development, with an on-site fitness center and clubhouse, ATG Development and bike storage.

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Traditions at the Village Porter County 331 S Boo Rd Class: A, Market Rate Burns Harbor, Porter County, IN 46304 ID: 1336; YrQtr: 20171

Utility Description_____ L_ _T Service__ L_ _T Physical Profile______Economic Profile______Lights  Trash  Units: 125 Occupancy: 96.0% Gas Forced Air Heat  Water  Avg Unit SF: 973 Quoted Rent: $1.08 Unit Central AC  Cable TV  Built: 2014 Concessions: 0.0% L=Landlord pays, T=Tenant pays Internet  Renovated: na Effective Rent: $1.08 ______Quoted Rent______Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 25 20.0% 732 $839 $1.15 $1.11 0.0% $839 $1.15 $1.11 1.0 Bath 835 $899 $1.08 $899 $1.08 ● Reduced Move in Fees Two Bedroom 88 70.4% 916 $1,029 $1.12 $1.09 0.0% $1,029 $1.12 $1.09 1.0-2.0 Bath 1,030 $1,089 $1.06 $1,089 $1.06 ● Reduced Move in Fees Three Bedroom 12 9.6% 1,366 $1,339 $0.98 $0.98 0.0% $1,339 $0.98 $0.98 2.0 Bath 1,366 $1,339 $0.98 $1,339 $0.98 ● Reduced Move in Fees

Paid Parking: $125 (Detached Garage) per month. Free parking available.

Amenities______Trends______Unit Appliance Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Carpeting Disposal Clubhouse 20171 $1.08 0.0% 96.0% $1.08 Smooth Ceiling Dishwasher Parking Laminate Counters Microwave Surface Parking Patio/Balcony/Deck Range - Electric Detached Garage Refrigerator WasherDryer Incl Fitness Fitness Center Outdoor Pool

Notes: Traditions is a 125-unit apartment complex, but is permitted for an additional 30 to 40 IGC Residential units.

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Representative List of Property Types Appraised

Affordable Housing Historic/Landmark Religious Institutions Air Pollution Control Facility Land/Acreage Restaurants Apartments Industrial Rights-of-Way Assisted Living Facilities Residential Senior Housing Automobile Showrooms Loft Buildings Service Station Sites Commercial Medical Centers Shopping Centers/Malls Condominiums Mobile Home Parks Special Purpose Property Cooperative Apts. Motels/Hotels Subdivisions Corporate Headquarters Nursing Homes Supermarkets Eleemosynary Prop. Office Buildings Warehouses Garages Recreational Properties

FEASIBILITY STUDIES MARKET RESEARCH HIGHEST AND BEST USE

Representative List of Clients

ATTORNEYS BANKS REAL ESTATE ORGANIZATIONS Arnstein & Lehr Amalgamated Bank AIMCO Baker & McKenzie Associated Bank AMLI Burke, Warren, MacKay & Serritella Bank Financial Avalon Bay DLA Piper Bank of America Focus Development Freeborn & Peters Bank Leumi Golub & Company Mayer Brown BMO Harris Bank Hines McDermott Will & Emery Cathay Bank Jones Lang LaSalle Rinella & Rinella Centier Bank Lend Lease Schiff Hardin Centrue Bank Lennar Schiller, Ducanto & Fleck Community Investment Corp. Lincoln Property Seibel Law Offices Fifth Third Magellan Development Group Stafford Rosenbaum First American Bank McCaffery Interests Taft Stettinius & Hollister First Eagle Bank Mesirow Financial First Midwest Bank Moran & Co INVESTMENT AND MORTGAGE First Bank Highland Park Morningside BANKERS/PENSION FUND ADVISORS JPMorgan Chase Bank Marquette Companies American Realty Advisors KeyBank Newcastle Limited Amerisphere Lakeside Bank Opus Development Berkadia Commercial Mortgage MB Financial Oxford Capital Bellwether Enterprise Real Estate Capital, LLC Oxford Bank & Trust Related Midwest Cambridge Realty Capital of Illinois PNC Bank Sterling Bay Cornerstone Real Estate Advisors Republic Bank The Fifield Companies Draper & Kramer TCF National Bank The Habitat Company Gershman Mortgage The Northern Trust The John Buck Company Goldman Sachs The Private Bank Trammel Crow Greystone Funding US Bank Village Green Companies Heitman Wells Fargo Waterton Residential Holliday Fenoglio Fowler Wintrust Financial Corp. Inland Mortgage Corp. GOVERNMENT BODIES/ORGANIZATIONS JP Morgan INSURANCE COMPANIES American Medical Association Boy Scouts of America Kensington Realty Advisors Allstate Federal Deposit Ins. Corporation Love Funding John Hancock Illinois Housing Development Authority M&T Realty Capital Manulife Internal Revenue Service National Real Estate Advisors MetLife Mercy Housing NorthMarq Capital Nationwide Life National Association of Realtors PNC Multifamily Mortgage New York Life Office of the Comptroller of the Currency Principal Capital Real Estate Investors Pacific Life U.S. Air Force Red Mortgage Capital Principal U.S. Army Corps of Engineers Prudential U.S. Department of Housing & Urban Development State Farm U.S. General Services Administration Union Labor Life U.S. Navy

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QUALIFICATIONS OF GAIL LISSNER, CRE, SRA

PROFESSIONAL EXPERIENCE: Vice President and Appraiser for Appraisal Research Counselors.

EDUCATION: Bachelor of Arts from Washington University, 1972. Phi Beta Kappa, 1972.

STATE OF ILLINOIS: Certified General Real Estate Appraiser Licensed Real Estate Managing Broker

THE COUNSELORS OF REAL ESTATE: CRE Designation

APPRAISAL INSTITUTE: SRA Certificate #2049, Currently Certified.

LAMBDA ALPHA INTERNATIONAL: Member of the Honorary Land Economics Society. Ely Chapter. Initiated in 2000.

FEATURED SPEAKER: Many speaking engagements pertaining to the housing market, with multiple appearances before organizations such as the Realty Club, Chicago Real Estate Council (CREC), Chicago Association of Realtors, City of Chicago Chapter of the Home Builders Association of Greater Chicago, the Appraisal Institute Chicago Chapter, Chicago Mortgage Attorneys Association, Jewish United Fund Real Estate Division, the Illinois CPA Society, National Real Estate Investment Association (REIA), National Association of Real Estate Investment Managers (NAREIM), the Lincoln Park Builders of Chicago, the Counselors of Real Estate, Chicagoland Apartment Association, Private Bank, Citigroup, the Midwest Builders Conference, Roosevelt University, and University of Illinois at Chicago (UIC). Frequently quoted in both local and national media.

PROFESSIONAL AFFILIATIONS: Appraisal Institute (AI), Counselors of Real Estate (Secretary/Treasurer of the Midwest Chapter: 2009-2014), Realty Club of Chicago (Vice President: 2015/ President: 2016 Term), Lambda Alpha International, Chicago Real Estate Council (CREC), Commercial Real Estate Women (CREW), Real Estate Investment Association (REIA), North Shore Barrington Board of Realtors. Mentor for the Goldie B. Wolfe Miller Women Leaders in Real Estate Program at Roosevelt University 2008-2010. Named by Crains Chicago Business as one of the Crains 20 Women to Watch 2008.

EXPERIENCE: Overall experience includes appraisals and analytical studies of commercial, mixed-use, apartment, condominium, townhome and residential developments in addition to marketability and feasibility studies in a variety of new developments and existing projects.

Experience includes appraisals of various types of real estate with a primary focus on the Chicago metropolitan area but experience in other cities in the United States.

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QUALIFICATIONS OF CARY A. LANNIN

PROFESSIONAL EXPERIENCE:

Appraiser – Appraisal Research Counselors, Chicago, IL: 2011 Owner – Cary A. Lannin Golf Valuation & Consulting, Inc., Griffith, IN. 2007 – 2011 Contract Underwriter – Capmark Finance Inc., Chicago, IL: 2007 - 2009 Practice Leader – Integra Realty Resources, Chicago, IL. 2006-2007 Manager – PricewaterhouseCoopers, Chicago, IL: 2001-2006 Senior Analyst – GVI Consulting, Chicago, IL. 1995 – 2001 Owner – Lannin, Martinez Appraisal Associates, Hazel Crest, IL. 1992-1995 Staff Appraiser – LaSalle Talman Bank, FSB, Melrose Park, IL. 1988-1992 Appraiser – Metro Appraisal, Lansing, IL. 1986-1988 Assistant Manager – Beneficial Finance, Munster, IN. 1984-1986

EDUCATION:

Bachelor of Science Degree, Finance, Indiana University - Bloomington, 1982.

COURSES IS REAL ESTATE:

Appraisal Institute

An Introduction to Appraising Real Property Applied Residential Property Valuation Basic Income Capitalization Advanced Income Capitalization Advanced Sales Comparison and Cost Approaches Highest & Best Use & Market Analysis Advanced Applications Standards of Professional Appraisal Practice, Part A & B Separating Real & Personal Property from Intangible Business Assets

CERTIFICATIONS:

Illinois State Certified General Real Estate Appraiser Indiana State Certified General Real Estate Appraiser

PROFESSIONAL AFFILIATIONS:

Appraisal Institute; General Associate member

EXPERIENCE:

General and special purpose real estate consultation and valuation, market analysis and feasibility studies, due diligence investigations and highest and best use analyses. Property types include recreational, retail, apartment, office, industrial, subdivision, vacant land, and residential. Significant consulting and valuation experience in golf course and related real estate properties located throughout the United States. Other related experience includes commercial mortgage underwriting, portfolio valuation, operational performance analysis, and financial benchmarking. Clients include institutional and private investors, national and multi- national lenders, federal and local governmental agencies, and property owners/managers.

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Gail Lissner, CRE, SRA Indiana

Cary A. Lannin Indiana

 2017 Appraisal Research Counselors www.AppraisalResearch.com