The Greater Salt Lake Area Multifamily Market

THE GREATER SALT LAKE AREA MULTIFAMILY MARKET

THE MOST COMPREHENSIVE MULTIFAMILY REPORT 2018 REVIEW / 2019 OUTLOOK PREFACE TABLE OF

CBRE is pleased to release the 2019 Greater Salt Lake Area Multifamily Market Report, the most current and comprehensive multifamily data available for the Salt Lake Area/Wasatch Front market. Produced by Patrick Bodnar and Eli Mills of CBRE, this report CONTENTS has been assembled to empower the decision making of multifamily professionals interested in the Utah market.

This report has been prepared with current data sourced from a survey of over half the multifamily market (60,000+ units) along the Wasatch Front Area inclusive of Salt Lake, Utah, Davis and Weber Counties. Minimum reporting requirements were identified for each city and county by class, type and size.

Data contributions and validations to this publication were made by: • CBRE Research • Utah Department of Economics • CBRE Econometric Advisors • University of Utah Bureau of Economics and Business Research • Yardi Matrix • Equimark Properties (2014 Historical Data) • Axiometrics • Construction Monitor • Western States Multifamily • CoStar

Whatever your multifamily needs may be, please reach out to us. CBRE has the most comprehensive data on the market and can provide information on a macro or micro level based on class, city, submarket, zip code, location, age, size, proximity to rail stops, and many other variations.

CBRE consistently leads the market, with multifamily investment sales totaling over $29.5 billion in 2018 (Source: Real Capital Analytics). As the leader in multifamily sales every year since 2001, the exposure of CBRE is second-to-none. With 65 locations and over 300 multifamily professionals, including direct lending services, CBRE’s unparalleled multifamily platform has a competitive presence in Utah and an enhanced investment reach into the multifamily space, providing our clients with the greatest market exposure available.

We welcome your inquiries into the Utah multifamily market and encourage you to contact us with any questions.

Patrick Bodnar Eli Mills Senior Associate Senior Vice President

For a market analysis on your property or Apartment communities are raising the more information contact: bar by providing a more diverse set of amenities including trash valet service, Patrick Bodnar Eli Mills rooftop pools, car-charging stations, yoga Senior Associate Senior Vice President studios, parcel pick-up lockers, and pet +1 801 869 8053 +1 801 869 8029 amenities. This sports bar lounge includes pool, shuffleboard and a golf simulator. [email protected] [email protected] 2019

GREATER SALT LAKE AREA MULTIFAMILY REPORT

EXECUTIVE SUMMARY TRANSACTION VOLUME & CAP RATES Multifamily investment product continues to outperform all other 2018 had an incredible finish in multifamily sales volume at approximately HEADLINES TO KNOW NOTABLE SALES TRANSACTIONS commercial investments in total sales volume, rent growth and new $1.437 billion in total sales. This marks two years in a row well above $1 development. 2018 year-end statistics posted the highest apartment billion in sales volume. Salt Lake multifamily has matured well out of a LARGEST SALE HIGHEST PRICE/UNIT GREATEST # OF UNITS sales volume in the history of Utah; a total of $1.437 billion in apartment transactions occurred, crushing 2017’s previous record-setting year RENT privately traded market, sending a message of scalability to institutional, by 38%. Strong rent growth of 5.9% is being fueled by continued job private equity and high net worth family offices across the nation. Of all growth showing a consistent average of 3.3%; there were 48,500 jobs $1,122/MO. 5.9% YOY the sales in the marketplace, 20 were of institutional quality with a total added in 2018. A total of 7,467 units delivered in 2018, of which 76% of 5,504 units sold at an average project size of 290 units. There were 8 have been absorbed. Supply has barely been keeping up with demand. VACANCY SALES trades greater than $50M. Average unit pricing for individual classes is as Multifamily has a commanding presence in the market. Investment firms follows: Class A, $223,579; Class B, $171,771; and Class C, $131,917. $1.437 BILLION FAIRSTONE AT RIVERVIEW ALTA GATEWAY FAIRSTONE AT RIVERVIEW from across the nation and several international markets were active 4.0% RECORD VOLUME AND ALPINE MEADOWS AND ALPINE MEADOWS bidders in Salt Lake in 2018. A leading institutional firm, Invesco, Cap rates compressed largely due to the incredible amount of liquidity NO CHANGE in the marketplace looking for yield. The Salt Lake market rises straight Taylorsville & Sandy, Utah Salt Lake City, Utah Taylorsville & Sandy, Utah purchased their second asset in Salt Lake City in 2018. The robust YEAR-OVER-YEAR growth story demonstrated in the greater Salt Lake area is fueling investor to the top for achieving better yield than competing western markets, 714 Units 277 Units 714 Units interest searching for yield in untapped, secondary markets. In addition but more importantly, significant future rent growth is still available in to the economic indicators, the transportation infrastructure—including PIPELINE Utah. Comparatively, the Salt Lake market rents average $1.27/SF while high speed commuter rail, light rail and the rebuild of the Salt Lake CAP RATES - YEAR END 2018 comparable markets, such as Denver and Portland are $1.74/SF and International Airport (a $3.6 billion investment)—have also been an 7,467 UNITS 10,281 UNITS important identifier of future growth for active investors. It is an excellent 2018 DELIVERIES UNDER CONSTRUCTION $1.61/SF, respectively. As the market continues to mature, renters will time to be engaged in the greater Salt Lake area multifamily market. recognize they have more expendable dollars to pay toward the cost of CLASS A CLASS B CLASS C living, which will continue to drive rent growth in the Salt Lake market. There is plenty of headroom for rent growth. 4.88% 5.29% 5.7% MARKET TRENDS LOOKING FORWARD

( ) SALES CAP RATES WESTERN MARKETS – CAP RATES & PRICING PER UNIT MULTIFAMILY SALES VOLUME* $, MILLIONS 6.5% $450,000 $1,600 VALUE-ADD CAP RATE PRICE/UNIT 6.0% $1,500 $1,437 & CORE+ RATES TO $400,000 HEALTHY INCREASED 5.4% $1,400 ASSETS REMAIN STABLE 5.5% 5.32% 5.2% 5.2% 5.3% ABSORPTION INSTITUTIONAL $1,300 5.0% 4.7% $350,000 INTEREST $1,200 4.5% 4.3% $1,100 PIPELINE $300,000 $1,038 6,244 UNITS 4.0% $1,000 $250,000 $900 2019 EXPECTED 3.5% $301,273 VALUE-ADD NEW HIGH RISE $800 $703 DELIVERIES 3.0% OPPORTUNITIES RESIDENTIAL $200,000 $700 $644

2.5% $239,042 $600 $230,983 $150,000 $464 RENT VACANCY 2.0% $202,640 $500 $400 1.5% $100,000 $285 $154,126 $150,674 $300 GROWTH SOME 1.0%

TO SLOW INCREASE $122,713 $50,000 $200 0.5% $100 0.0% $0 $0 SALT LAKE CITY PHOENIX LAS VEGAS PORTLAND DENVER SEATTLE LOS ANGELES 2013 2014 2015 2016 2017 2018 Source: CBRE, Inc., Real Capital Analytics. Source: CBRE, Inc., Real Capital Analytics. *Based on properties 50 units and above.

GREATER SALT LAKE AREA MULTIFAMILY REPORT

GREATER SALT LAKE AREA SUPPLY VS. DEMAND AND ABSORPTION The Greater Salt Lake Area, also known as the Wasatch Front, consists Development of multifamily product has continued at a consistent pace. UTAH ACCOLADES NOTABLE NEW DEVELOPMENTS of four counties—Salt Lake, Utah, Davis and Weber. Ogden City is A favorable financing market and aggressive equity investors desiring to located 45 minutes to the north of Salt Lake City, while Provo is located be a part of the incredible growth story in Utah has developers feverishly THE LARGEST SALE HIGHESTTHE LARGEST PRICE/UNIT SALE GREATEST # OF UNITS 45 minutes to the south of Salt Lake City. Approximately 2.4 million ECONOMY competing for sites up and down the Greater Salt Lake Area. Salt Lake County has 7,373 units of the 10,281 units currently under construction. people (80% of Utah’s population) live within this four-county area. NUMBER 2 Approximately 7,467 units were delivered in 2018. By year end, 76% NUMBER 1 STATE FOR STATE FOR of these units were leased. Although new product continues to come on THE WASATCH FRONT ECONOMIC OUTLOOK BUSINESS (ALEC) (FORBES) line and average project absorption has backed off from 19 units per month to 15, a healthy development climate still exists.

Population growth in 2018 totaled 52,664. 2019 is projected to realize HARDWARE VILLAGE THE RITZ CLASSIC MILAGRO 3.05 a net population growth of 67,649, a 2.1% increase. These new move- Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, Utah MILLION NEW ins are coming primarily for employment opportunities and a better PEOPLE AIRPORT NUMBER 1 quality of life. Coupled with the large number of college graduates each 453 Units 287 Units 183 Units U.S. CENSUS $3.6 BILLION STATE FOR FUTURE year of approximately 39,000, housing demands will continue to grow. 30.6 Notably, several out of state developers are actively pursuing sites. They PUBLIC LIVABILITY CONSTRUCTION SUMMARY LOWEST TRANSIT GALLUP WELLBEING are looking forward to competing in a growth market largely untapped MEDIAN REACHES by outside developers. Demand for development is mostly in the COUNTY COMPLETED 2013 - 2018 UNDER CONSTRUCTION POTENTIAL STARTS Salt Lake 17,351 7,373 8,714 AGE IN 6TH LOWEST downtown area, along the light rail transportation lines and the Sugar NATION 75% House Town Center neighborhood. New unit deliveries for 2019 are Utah 5,773 1,938 4,577 NATIONAL OF THE CRIME RATE Davis 2,599 325 1,236 MEDIAN: 37.1 estimated to be lower than 2018, providing a healthy course correction

DEMOGRAPHICS FRAMEWORK POPULATION LIFESTYLE IN AMERICA and strengthening absorption. Weber 1,866 645 1,142 Totals 27,589 10,281 15,669 Source: CBRE, Inc.; Western States Multifamily. 2018 POPULATION GROWTH RATE COMPARISON GREATER SALT LAKE WASATCH FRONT GROWTH PIPELINE (UNITS OF COMPLETED PROJECTS) POPULATION 9,000 GROWTH RATE 1.9% 8,000

U.S. 7,000

POPULATION 7,467 GROWTH RATE 6,000

0.6% 6,244 Source: Kem C. Gardner Policy Institute 2019 Economic Report to the Governor. 5,000 5,148 4,000

3,000 3,572

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

0 2014 2015 2016 2017 2018 2019* Source: CBRE, Inc. * Projected

GREATER SALT LAKE AREA MULTIFAMILY REPORT

GREATER SALT LAKE SUMMARY GREATER SALT LAKE HISTORICAL RENTAL RATES & VACANCY: SUMMARY TABLES BY COUNTY AND CITY

The Greater Salt Lake story continues to be one of high growth across all fronts, from demographics with double the national average including 2016 2017 2018 net migration of 23,248, to strong job growth at 3.3%. Every major industrial sector expanded in 2018 adding over 48,800 new jobs and SALT LAKE COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY continued growth is expected. The convenience of employment opportunities, outdoor recreation and affordability present an unmatched lifestyle Cottonwood Heights $1,135 986 $1.15 3.5% $1,128 928 $1.21 3.1% $1,222 932 $1.31 4.4% highly desired by today’s young professionals. Additionally, Utah is one of the leading states for economic diversity. The state continues to invest in infrastructure, with an unprecedented $3.6 billion airport expansion and construction of the new Utah State Prison which is expected to have a Draper $1,132 976 $1.16 4.7% $1,151 959 $1.20 3.1% $1,288 1,018 $1.26 2.5% positive economic ripple affect throughout the Salt Lake Valley. Herriman ------$1,345 1,178 $1.14 5.8% Midvale $1,025 871 $1.18 2.5% $1,072 903 $1.19 4.0% $1,113 833 $1.34 3.4% RENTAL RATES BY COUNTY Murray $982 906 $1.08 2.5% $1,073 874 $1.23 3.5% $1,087 817 $1.33 5.0% Avg. Monthly Rent/Unit $/SF Riverton $1,028 898 $1.14 2.2% $1,342 1,204 $1.12 2.7% $1,359 1,204 $1.13 2.9% $1,200 $1,153 $1,138 $2.00 $1,097 $1,122 Salt Lake City $1,061 760 $1.40 3.4% $1,249 802 $1.56 4.6% $1,100 $1,087 $1,041 $1,060 $1,059 $1,104 760 $1.45 4.6% $1,027 $1,005 $994 $1,000 $933 $937 $1.75 Sandy $1,073 888 $1.21 3.4% $1,131 844 $1.34 5.1% $1,189 890 $1.34 4.4% $864 $900 $810 South Jordan $1,400 1,212 $1.15 5.5% $1,261 1,050 $1.20 4.7% $1,323 1,044 $1.27 4.7% $800 $1.50 South Salt Lake $912 840 $1.09 2.6% $898 840 $1.07 4.7% $956 841 $1.14 4.0% $700 Taylorsville $956 969 $0.99 2.7% $1,073 847 $1.27 3.2% $600 $1.25 $1,011 979 $1.03 4.4% $1.33 $500 West Jordan $1,068 971 $1.10 2.8% $1,016 801 $1.27 5.3% $1,098 887 $1.24 4.0% $1.27 $1.25 $1.24 $1.20 $1.18 $1.16

$400 $1.15 $1.00 $1.14 West Valley City $975 917 $1.06 5.0% $1,047 845 $1.24 3.8% $1,024 813 $1.26 5.0% $1.11 $1.11 $300 $1.08 $1.01 Downtown $1,166 781 $1.49 2.2% $1,307 781 $1.49 1.6% $1,447 852 $1.70 5.0% $200 $0.75 $0.90 Overall $1,027 890 $1.15 3.2% $1,087 875 $1.24 4.1% $1,153 868 $1.33 4.3%

$100 $0.86 Source: CBRE, Inc. $0 $0.50 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 SALT LAKE COUNTY UTAH COUNTY DAVIS COUNTY WEBER COUNTY WASATCH FRONT UTAH COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Source: CBRE Research, H2 2018. Orem $1,049 901 $1.16 4.1% $1,079 947 $1.14 4.9% $1,148 968 $1.19 4.6% Pleasant Grove $1,063 1,022 $1.04 3.9% $1,099 997 $1.10 4.8% $1,124 978 $1.15 4.9% HISTORICAL RENTAL & VACANCY RATES Provo $715 653 $1.09 1.4% $746 611 $1.22 1.6% $741 611 $1.21 0.6% 2016 2017 2018 Overall $1,041 914 $1.14 4.0% $1,097 943 $1.16 4.1% $1,138 944 $1.20 4.3% GREATER SALT LAKE RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Source: CBRE, Inc. Salt Lake $1,027 890 $1.15 3.2% $1,087 875 $1.24 4.1% $1,153 868 $1.33 4.3% Utah $1,041 914 $1.14 4.0% $1,097 943 $1.16 4.1% $1,138 944 $1.20 4.4% 2016 2017 2018 Davis $933 863 $1.08 3.4% $1,005 906 $1.11 3.5% $1,060 846 $1.25 3.0% DAVIS COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Weber $810 945 $0.86 2.3% $864 960 $0.90 3.2% $937 927 $1.01 2.5% Bountiful $962 930 $1.03 4.8% $979 901 $1.09 3.8% $1,081 958 $1.13 2.3% Greater Salt Lake Averages $994 879 $1.04 4.1% $1,059 896 $1.18 4.0% $1,122 880 $1.27 4.0% Clearfield $796 833 $0.96 3.1% $889 775 $1.15 4.8% $968 783 $1.24 3.6% Source: CBRE, Inc. Layton $889 813 $1.09 3.1% $978 932 $1.05 3.3% $981 787 $1.25 3.8% North Salt Lake $1,062 888 $1.20 3.9% $1,054 914 $1.15 4.7% $1,205 919 $1.31 2.6% GREATER SALT LAKE CURRENT RENTAL & VACANCY RATES GREATER SALT LAKE NEWS HEADLINES Overall $933 863 $1.08 3.4% $1,005 906 $1.11 3.5% $1,060 846 $1.25 3.0% BY CLASS CLASS A CLASS B CLASS C Source: CBRE, Inc. CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 2016 2017 2018 Studio $1,119 $2.08 $804 $2.02 $624 $1.69 WEBER COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY 1 Bed 1 Bath $1,139 $1.51 $944 $1.42 $817 $1.41 2 Bed 1 Bath $1,201 $1.27 $1,071 $1.19 $927 $1.12 Ogden $745 862 $0.86 2.3% $772 870 $0.89 4.2% $846 827 $1.02 2.6% 2 Bed 2 Bath $1,346 $1.30 $1,212 $1.20 $920 $0.89 Roy $908 1,127 $0.81 1.9% $934 1,127 $0.83 3.2% $992 1,081 $0.92 4.2% 3 Bed 2 Bath $1,627 $1.23 $1,360 $1.08 $1,008 $0.77 West Haven $659 922 $0.71 2.9% $707 834 $0.85 3.1% $762 893 $0.85 0.4% Overall $1,293 $1.36 4.4% $1,089 $1.24 3.7% $868 $1.27 4.2% Overall $810 945 $0.86 2.3% $864 960 $0.90 3.2% $937 927 $1.01 2.5% Source: CBRE, Inc. Source: CBRE, Inc.

GREATER SALT LAKE AREA MULTIFAMILY REPORT

SALT LAKE COUNTY DOWNTOWN VS. SUBURBAN MULTIFAMILY STATS

OVERALL VACANCY & RENT Downtown Salt Lake City has gentrified into a very active and lively VACANCY COMPARISON BY LOCATION scene, consistently full of young professionals enjoying the many 10.0% $1,200 2017 2018 VACANCY (%) RENT ($) new eateries, activities and entertainment venues. The energetic vibe 5.2% 9.0% $1,100 is driven from many new apartment communities now occupied by VACANCY RATE VACANCY RATE 8.0% $1,000 professionals employed in the financial and technology sectors. A total 5.0% 4.9% 7.0% $900 of 1,206 units were added to the downtown market increasing the base 6.0% 4.8% 4.1% 4.3% $800 to 8,745 units. New luxury deliveries such as 4th West and Hardware 5.0% $700 Village are examples of adjacent areas that have been redeveloped 4.6% 4.0% $600 and are now fully integrated into the downtown experience. There are 3.0% presently 11 projects totaling 1,712 units being developed downtown. 4.4% RENTAL RATE RENTAL RATE $500 2.0% Additionally, a few sites will be developed into residential towers. The $400 4.2% 4.1% $1,087 $1,153 1.0% first is slated to begin construction in the spring of 2019, called Liberty 0.0% $300 4.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sky (151 South State), developed by Cowboy Partners and The Boyer Company. Another residential high-rise located on the corner of 200 3.8% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 South and State Street is being planned by KIC Boston. These projects Vacancy (%) 4.5% 6.8% 8.6% 6.2% 5.2% 5.0% 5.1% 4.9% 4.1% 3.2% 4.1% 4.3% will be a welcome addition to the multifamily inventory downtown and 3.6% will elevate Salt Lake City’s market. Rent growth has been strong and DOWNTOWN SUBURBAN Rent ($) $733 $771 $739 $755 $791 $810 $850 $892 $960 $1,027 $1,087 $1,153 steady downtown at 6.7% and given the new supply, vacancies have Source: CBRE, Inc. YOY Rent Growth N/A 5.2% -4.2% 2.2% 4.8% 2.4% 4.9% 4.9% 7.6% 7.0% 5.8% 6.1% remained relatively low at 4.9%. DOWNTOWN RENTAL RATE COMPARISON BY CLASS (A & B ONLY) Source: CBRE, Inc. The suburban market has continued to realize very consistent rent growth of 6.6% and a low average vacancy of 4.1%. With many tech RENTAL RATE & VACANCY SUMMARY TABLES DOWNTOWN CLASS A CLASS B companies concentrating in Lehi, the suburban multifamily market has realized solid occupancies. Several renovation projects are underway CATEGORY RENT $/SF RENT $/SF BY UNIT TYPE BY CLASS CLASS A CLASS B CLASS C for assets 15 to 30 years old in properties like the recently traded Studio $1,324 $2.46 $954 $2.30 CATEGORY RENT SF $/SF VACANCY CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY Fairstone at Riverview (492 units). Healthy rent premiums are very 1 Bed 1 Bath $1,404 $1.86 $1,103 $1.58 Studio $891 427 $2.09 Studio $1,140 $2.14 $844 $2.03 $768 $2.22 attainable in these renovated properties. 2 Bed 1 Bath $1,673 $1.98 $1,446 $1.65 1 Bed 1 Bath $1,015 673 $1.51 1 Bed 1 Bath $1,171 $1.57 $955 $1.46 $861 $1.49 2 Bed 2 Bath $1,660 $1.57 $1,471 $1.50 2 Bed 1 Bath $1,065 875 $1.22 2 Bed 1 Bath $1,212 $1.28 $1,104 $1.24 $962 $1.16 3 Bed 2 Bath $2,012 $1.65 $1,605 $1.61 2 Bed 2 Bath $1,313 1,013 $1.30 2 Bed 2 Bath $1,409 $1.36 $1,249 $1.25 $933 $0.91 Overall $1,573 $1.73 $1,200 $1.65 3 Bed 2 Bath $1,469 1,265 $1.16 3 Bed 2 Bath $1,684 $1.28 $1,403 $1.13 $1,123 $0.79 Source: CBRE, Inc. Overall $1,153 868 $1.33 4.3% Overall $1,311 $1.42 4.3% $1,119 $1.29 4.0% $922 $1.26 5.3%

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

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

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

Studio N/A N/A $898 $2.10 Studio N/A N/A $965 $2.04 $1,319 $2.49 Studio $890 $1.69 $788 $1.89 1 Bed 1 Bath $988 $1.46 $1,018 $1.51 1 Bed 1 Bath $1,066 $1.42 $1,094 $1.47 $1,225 $1.64 1 Bed 1 Bath $1,101 $1.48 $944 $1.46 2 Bed 1 Bath $977 $1.08 $1,086 $1.25 2 Bed 1 Bath $1,168 $1.23 $1,168 $1.21 $1,188 $1.28 2 Bed 1 Bath $1,205 $1.26 $1,098 $1.23 2 Bed 2 Bath $1,465 $1.36 $1,307 $1.29 2 Bed 2 Bath $1,351 $1.28 $1,351 $1.33 $1,378 $1.33 2 Bed 2 Bath $1,320 $1.28 $1,232 $1.24 3 Bed 2 Bath $1,335 $0.98 $1,478 $1.18 3 Bed 2 Bath $1,489 $1.19 $1,489 $1.19 $1,582 $1.18 3 Bed 2 Bath $1,619 $1.21 $1,390 $1.13 Overall $1,088 $1.19 4.8% $1,157 $1.34 4.2% Overall $1,261 $1.29 4.4% $1,251 $1.31 4.0% $1,346 $1.41 4.3% Overall $1,255 $1.34 $1,107 $1.27 Source: CBRE, Inc. Source: CBRE, Inc. Source: CBRE, Inc.

GREATER SALT LAKE AREA MULTIFAMILY REPORT

SALT LAKE COUNTY SALT LAKE COUNTY: COMPLETED MULTIFAMILY PROJECTS, 2013 - 2018

HISTORICAL RENTAL RATES BY UNIT TYPE (AVERAGE MONTHLY AND PER SQ. FT. RATES) # NAME UNITS TYPE # NAME UNITS TYPE 1 21 by Urbana 126 M 60 Metro at Fireclay - Phase I 175 M 2016 2017 2018 2 21st and View 29 M 61 Milagro 182 M 3 4th West Apartments 493 M 62 Millcreek 9 27 M $1,800 $2.10 4 600 Lofts 274 A 63 Millcreek Towers 38 M $2.09 $2.00 5 644 City Station 132 M 64 Moda Bonneville 158 M $1,600 $1,469 6 700 South Apartments 16 M 65 Moda Granary Place 134 A $1.99 $1,373 $1.90 7 8th & 8th Apartments 24 M 66 Moda Highland Park 40 M $1,400 $1,313 8 965 Central 50 M 67 Moda Newhouse 61 M $1,242 $1,265 $1.80 $1.80 9 9th East Lofts 68 A 68 Moda Sego 28 M $1,130 $1,153 10 Affinity 56 - Phase 1 192 M 69 Moda S-Line Townhomes 32 M $1,200 $1,065 $1,087 $1.70 $1,015 $1,023 $989 11 Aire Condominiums 30 M 70 North Sixth 115 A $969 $933 12 Alta Gateway 277 M 71 North Temple Flats 168 A $891 $875 $1.60 $1,000 $827 $1.51 13 Artesian Springs - Phase 1,2,3 378 A 72 Novi at Jordan Valley Station 267 M $1.50 14 Artspace Macaroni Flats 13 M 73 Oquirrh Hills 288 M $730 $800 $1.41 15 Axio 8400 332 M 74 Paragon Station Lofts 38 M $1.40 $1.31 $1.33 16 Ball Park Apartments 62 S 75 Parc at Day Dairy 228 M $1.30 17 Beacon Hill 168 A 76 Parc West 249 M $600 $1.24 $1.30 $1.22 $1.21 18 Birkhill 137 A 77 Park at City Center 330 M $1.13 $1.16 $1.15 $1.20 19 Birkhill Phase 2 65 A 78 Park East 70 M $400 $1.12 $1.10 20 Birkhill Seniors 105 S 79 Pinnacle Highbury 290 M $1.06 $1.10 21 Block 44 214 M 80 Prana Townhomes 21 M $1.03 $200 22 Blue Koi 20 M 81 Project Open - Phase 1 112 A $1.00 23 Bodhi Salt Lake City 80 A 82 Promenade at the District 170 M $0 $0.90 24 Brickyard 24 M 83 Residence at Fairbourne Station 225 M STUDIO 1 BED 1 BATH 2 BED 1 BATH 2 BED 2 BATH 3 BED 2 BATH OVERALL 25 Bridges at Citifront - Phase 2 91 M 84 Riverfront 288 M Source: CBRE, Inc. 26 Bud Bailey 136 A 85 Rockledge at Quarry Bend 416 M 27 C9 Flats 97 M 86 Rockwell Village at Independence 60 M Steady and strong rent growth has been the result of a consistently robust 28 Canyon Crossing at Riverwalk 180 A 87 Rosegate in Draper 277 S SALT LAKE COUNTY NEWS HEADLINES 29 Center Court 60 S 88 Sage Gate at Haynes Landing 278 M multifamily market year-over-year for nearly nine years straight in Salt Lake 30 Central Ninth Place 13 M 89 San Tropez - Phase II 84 M County. Fueled by continued economic and demographic growth, most 31 Cityscape 122 M 90 Seasons at Library Square 119 M 32 Diamondpoint 18 M 91 Seasons on the Boulevard (Velo) 99 M interested investors have their sights set on entering the market for the first 33 District North 148 M 92 Sharon Gardens 58 S time or accumulating additional assets for their portfolios. In comparison 34 Downtown 360 Apartments 151 M 93 Solameer at Herriman Towne Center 134 M to neighboring western markets, investors are finding some yield spread 35 Draper Village 181 M 94 South Ridge 145 M 36 Drycreek at East Village 282 M 95 Taylor Gardens 112 A, S over other purchase opportunities. Perhaps more importantly, there is a 37 Element 31 at Brickyard 208 M 96 TenFifteen 54 M clear path to increased rent growth as overall rent is much lower than 38 Enclave at 1400 South 210 A 97 Terrameer 174 M 39 Encore 189 M 98 The Arcadia 211 A neighboring markets while income levels are quite comperable. 40 Greenprint 60 M 99 The East Village 271 M 41 Hardware Station - West Village 265 M 100 The Essex 181 M Vacancy increased 20bps over the year. This is likely due to the upward 42 Haxton Apartments 39 M 101 The Gardens 60 A, S movement of renters from Class C (5.3% vacancy) to Class A or B 43 Herriman Town Center 304 M 102 The Lotus 84 M 44 Hills at Sandy Station 55 M 103 The Residences at the District 258 M products. This is particularly true for new developments delivering 45 Hills at Sandy Station - Ph 2 146 M 104 The Ridge 261 M desirable amenity packages and offering a month’s free rental concession. 46 Incline at Anthem 298 S 105 The Station at Midvale - Ph 1 & 2 186 A 47 Jordan Station 302 M 106 The Vue at Sugar House Crossing 211 M It is anticipated that in some select submarkets where new products have 48 Kimpton Square 97 S 107 The Zeller 292 M emerged, additional concessions may be considered as developers seek 49 Legacy Cottages 186 S 108 Triton Terrace 177 M to maintain high rent levels. 50 Liberty Blvd 266 M 109 Unnamed Townhomes 5 M 51 Liberty Crest 177 M 110 Veranda 239 A 52 Liberty Gateway 160 M 111 Via - Ph 1&2 138 M The communities created in and around the newly developed properties 53 Liberty Village 171 A 112 Victoria Woods - Draper 42 A, S downtown have generated lively neighborhoods with many new eateries 54 Locust Lane 10 M 113 Victoria Woods - Sandy 100 S 55 Lofts at 7800 192 M 114 Villas at Fern Circle 36 S and private clubs. The community in each project also stems from the 56 Lotus Madrona 37 M 115 Washington Street Row Houses 5 M workplace. Developers are finding success in nurturing relationships 57 Lotus Tapestry 42 M 116 West Station 145 M where the majority of the tenant base is employed as is the case with 58 Meadows at Park Avenue - Ph 1 & 2 135 M 117 Wilmington Flats 105 M 59 Meridian 263 M 17,351 Total Units 4th West Apartments and Goldman Sachs. These young professionals MARKET AFFORDABLE SENIOR STUDENT coming from outside markets are enjoying an integrated experience with M 12,862 Units A 3,032 Units S 1,493 Units ST 0 Units their places of work and residence. Source: Western States Multifamily. Maps as of February 2019.

GREATER SALT LAKE AREA MULTIFAMILY REPORT

SALT LAKE COUNTY: MULTIFAMILY DEVELOPMENT UNDER CONSTRUCTION SALT LAKE COUNTY: POTENTIAL MULTIFAMILY STARTS

# NAME UNITS TYPE # NAME UNITS TYPE 1 2nd & 2nd 7 M 1 @ 2100 81 M 2 2100 Lofts 206 M 2 3357 S 900 E 14 M 3 3Forty3 Apartments 48 M 3 Salt Flats 86 M 4 4-Legged Townhomes 11 M 4 9th and 9th 28 A 5 400 South 200 West 133 M 5 Affinity 56 - Phase 2 222 M 6 409 E 400 S 101 M 7 600 South Main 175 M 6 Aspira at Anthem 300 M 8 6-story Rail Car Building 78 M 7 Brixton Flats 93 M 9 Block 67 241 M 8 Calla Homes 43 M 10 Brickcreek 58 A 9 Camelot South Hills - Phase I 360 M 11 Broadway Apartments 256 M 12 Camelot South Hills - Phase 2 240 M 10 Cliffs at Jordan Station 237 M 13 Canyon Centre 113 M 11 Diamond Ridge 57 M 14 Central Station Senior Apartments 84 A&S 12 Draper South Point 120 A 15 Dalton's Edge 67 M 13 Flats at the District 120 M 16 Daybreak Town Center 466 M 17 Dixon 220 M 14 Garden Lofts 272 A 18 Ivory Urban at Fairbourne Station II 201 M 15 Gladstone Place 187 M 19 Ivory Urban at South Temple 116 M 16 Hardison Apartments 138 M 20 Fairmont 59 M 17 Hardware Station East Village 188 M 21 First Step House 75 A 18 HiGrade 100 A 22 Harmony Square 285 M 23 Ice House Apartments 158 M 19 Icon 9700 264 M 24 John Florez Manor 61 A&S 20 Independence 251 M 25 Jordan Bluffs 190 A 21 Ivory Urban and Vista Station 308 M 26 Kimball Apartments 8 M 22 Liberty Crossing 95 A 27 Liberty on Main 99 A 28 Liberty Sky 270 M 23 Liberty Place 69 M 29 Liberty Uptown 109 M 24 Liberty Point 50 M 30 Lotus Klass 18 M 25 Liberty Square 53 M 31 Creekside 232 M 26 Little Diamond 146 A 32 Magnolia 65 A 33 Marmalade Flats 284 M 27 Lotus North Temple 28 M 34 Metropolitan 74 M 28 Maven Townhomes 25 M 35 Moda Main 11 M 29 Midvale Townhouse 33 M 36 Moda Luxe 216 M 30 Millcreek Station 70 A 37 Moda Town Center 24 M 38 Moda Union 206 M 31 Moda Meadowbrook 145 A 39 Murray Depot 93 A 32 Moda Spring Run 48 M 40 Near Transit Stop 49 M 33 Murray Crossing 293 M 41 Novi at Jordan Valley Station-Ph 2 181 M 34 Nexus on 9th 30 M 42 Paperbox Development - Ph 1 & 2 309 M 43 Park 40 208 M 35 Paytons Quarry of Herriman 122 M 44 Paxton 365 121 M 36 Pierpont 87 M 45 Project Open 2 95 A 37 Project Open - Phase 1 109 A 46 Red Skey 174 M 38 Quattro 95 M 47 Ribbon Apartments 100 A 48 River Park Boulevard 40 M 39 Ritz Classic Multifamily 287 M 49 Rockwell Lofts 21 M 40 Salt Lake Costumes Site 19 M 50 TAG 170 42 M 41 Skyhouse 240 M 51 TAG 945 12 M 42 Spring Run Townhomes 48 M 52 TAG 962 18 M 53 The Birdie 70 M 43 Station at Gardner Mill 272 M 54 The Charli 73 M 44 Sugarmont 352 M 55 The East Village -Phase 2 304 M 45 TAG 365 21 M 56 The Exchange A 286 M 57 The Exchange B 117 A 46 The Hub of Opportunity 156 A 58 The Green on Highland 188 M 47 The Metro at Fireclay - Phase II 165 M 59 The Opal 143 M 48 The Morton 137 M 60 Wells Mixed-Use Development 12 M 49 Triton Point of View 324 M 61 West Station - Phase 3 299 M 62 West Valley Apartments 420 M 50 Vista 9 241 M 8,714 Total Potential Units 51 West Temple Townhomes 218 M 7,373 Total Units MARKET SENIOR MARKET SENIOR M 6,132 Units S 0 Units M 7,677 Units S 145 Units AFFORDABLE STUDENT AFFORDABLE STUDENT A 1,241 Units ST 0 Units A 892 Units ST 0 Units

Source: Western States Multifamily. Maps as of February 2019. Source: Western States Multifamily. Maps as of February 2019.

GREATER SALT LAKE AREA MULTIFAMILY REPORT

UTAH COUNTY UTAH COUNTY: MULTIFAMILY COMPLETED/PIPELINE, 2013 - JANUARY 2018

# NAME UNITS STATUS TYPE OVERALL VACANCY & RENT 1 200 City View 139 Completed M 2 63 Center 41 Completed M 8.0% $1,200 2017 2018 VACANCY (%) RENT ($) 3 Alloy at Geneva 324 Completed M $1,100 4 Art City 41 Completed M 7.0% 5 Avalon Senior Living I-II 180 Completed S VACANCY RATE VACANCY RATE 6.0% $1,000 6 Bella Grace 24 Completed M 7 Canyon View Crossing 180 Completed M $900 5.0% 8 Cascade Gardens 42 Completed S 4.1% 4.4% $800 9 Central Park Station 59 Completed A 4.0% 10 Cherry Hill 74 Completed M $700 11 College Place Provo 71 Completed ST 3.0% 12 Concord at Geneva 304 Completed M RENTAL RATE RENTAL RATE $600 13 Cresthaven 344 Completed M 2.0% $500 14 Grove Crest Villas 162 Completed S 15 Lakeview Condos 44 Completed M $1,097 $1,138 1.0% $400 16 Liberty Center 120 Completed A $300 17 Lofts at Ivory Ridge 45 Completed M 0.0% 18 Midtown 360 286 Completed M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 19 Outlook 260 Completed M 20 Parc on Center 168 Completed M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 21 Parkway Lofts 332 Completed M 22 Porter Ranch Townhomes 128 Completed M Vacancy (%) 3.6% 5.7% 7.0% 5.5% 5.0% 3.2% 4.4% 3.6% 4.1% 4.0% 4.1% 4.4% 23 Promenade Place 120 Completed ST 24 Residences at Mayfield 214 Completed M Rent ($) $705 $719 $701 $716 $753 $788 $807 $868 $924 $1,041 $1,097 $1,138 25 Residences at Monteval 131 Completed M 26 Riverview 32 Completed ST YOY Rent Growth 6.8% 2.0% -2.5% 2.1% 5.2% 4.6% 2.4% 7.6% 6.5% 12.7% 5.4% 3.7% 27 Rivulet 252 Completed M 28 Seasons of Traverse Mountain - Phase 1 440 Completed M Source: CBRE, Inc. 29 Springville Seniors on Main 25 Completed AS 30 Startup Crossing 100 Completed A 31 The Aston at University Place - Phase 1 & 2 478 Completed M CURRENT RENTAL & VACANCY RATES UTAH COUNTY NEWS HEADLINES 32 The Boulevard 110 Completed M 33 The Old Chapel 15 Completed M 34 Traverse Towns 92 Completed M BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL 35 Viewpointe 288 Completed M 36 Vine 108 Completed M CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 37 Aston North 120 Under Construction M 38 Eversage 84 Under Construction M Studio N/A N/A N/A N/A $914 $1.61 39 Fields at Timpanogos 192 Under Construction M 40 Lincoln Square 252 Under Construction M 1 Bed 1 Bath $769 $1.32 $989 $1.32 $966 $1.32 41 Meadows at American Fork 270 Under Construction M 42 Midtown Village 248 Under Construction M 2 Bed 1 Bath $790 $1.10 $1,014 $1.16 $960 $1.14 43 Pacific Drive Apartments 26 Under Construction A 44 Riverwoods 218 Under Construction M 45 Sun Canyon Villas 83 Under Construction M 2 Bed 2 Bath $1,158 $1.10 $1,249 $1.18 $1,247 $1.18 46 The Depot 168 Under Construction M 47 Village s at Lakeview 85 Under Construction M 3 Bed 2 Bath $949 $1.12 $1,486 $1.12 $1,491 $1.12 48 Vine (Future Phases) 360 Under Construction M 49 480 North Freedom Blvd. 67 Potential Start M Overall $814 $1.19 3.9% $1,157 $1.21 4.5% $1,138 $1.20 4.4% 50 Arbors on the Avenue 68 Potential Start M 51 Aston Parkside 70 Potential Start M Source: CBRE, Inc. 52 Blue Ox 60 Potential Start M 53 Blue Sky (AKA Red Sky Savoy) 126 Potential Start M 54 East Bay 245 Potential Start M HISTORICAL RENTAL & VACANCY RATES 55 Geneva Road 270 Potential Start ST 56 Holbrook Farms 384 Potential Start M 57 Lehi Roller Mills 330 Potential Start M BY YEAR 2016 2017 2018 58 Lexington Green 252 Potential Start M 59 Meadows 142 Potential Start M CATEGORY RENT $/SF RENT $/SF RENT $/SF 60 Millpond 214 Potential Start M 61 Orem Art Space 213 Potential Start M Studio N/A N/A N/A N/A $914 $1.61 62 Palos Verdes Neighboorhood 461 Potential Start ST 63 River's Edge 246 Potential Start M 64 Rowland Heights 128 Potential Start ST 1 Bed 1 Bath $820 $1.19 $996 $1.34 $966 $1.32 65 Spanish Fork Apartments - Phase I 192 Potential Start M 66 Spring Haven 160 Potential Start M 2 Bed 1 Bath $818 $0.99 $962 $1.17 $960 $1.14 Status/Type M A S ST Total 67 Spring Mountain 204 Potential Start M 68 The Vue at Traverse Mountian - Phase I & II 308 Potential Start M 2 Bed 2 Bath $1,076 $1.04 $1,154 $1.09 $1,247 $1.18 Completed 4,862 279 409 223 5,773 69 University Downs 437 Potential Start ST Under Construction 1,912 26 0 0 1,938 12,288 Total Units 3 Bed 2 Bath $1,158 $1.00 $1,476 $1.12 $1,491 $1.12 Potential Start 3,281 0 0 1,296 4,577 M MARKET A AFFORDABLE S SENIOR ST STUDENT Overall $930 $1.07 $1,097 $1.16 $1,138 $1.20 Total 10,055 305 409 1,519 12,288 10,055 Units 305 Units 409 Units 1,519 Units

Source: CBRE, Inc. Source: Western States Multifamily. Maps as of February 2019.

GREATER SALT LAKE AREA MULTIFAMILY REPORT

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

OVERALL VACANCY & RENT # NAME UNITS STATUS TYPE 9.0% $1,100 1 Angels Landing Townhomes 24 Completed M 2017 2018 VACANCY (%) RENT ($) 8.0% $1,000 2 Avanti at Farmington Station 140 Completed M VACANCY RATE VACANCY RATE 7.0% $900 3 Boardwalk Townhomes 15 Completed M 6.0% $800 4 City Centre 123 Completed M 3.5% 3.0% 5.0% $700 5 Creekside Oaks 24 Completed M 4.0% 6 Eaglewood Lofts 410 Completed M $600 3.0% 7 Farmington Station 93 Completed M RENTAL RATE RENTAL RATE $500 2.0% 8 Fernwood Place 74 Completed M $400 $1,005 $1,060 1.0% 9 Greyhawk Townhomes 108 Completed M 0.0% $300 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10 Hampton Place 210 Completed M 11 Hills at Renaissance 107 Completed M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 12 Kays Crossing 156 Completed M Vacancy (%) 4.5% 5.9% 8.0% 5.1% 5.8% 6.6% 4.6% 4.6% 4.0% 3.4% 3.5% 3.0% 13 Legacy Cottages 150 Completed S Rent ($) $670 $715 $701 $711 $701 $720 $756 $796 $839 $933 $1,005 $1,060 14 Legacy Crossing 206 Completed M 15 Odell Crossing 44 Completed M YOY Rent Growth - 6.7% -2.0% 1.4% -1.4% 2.7% 5.0% 5.3% 5.4% 11.2% 7.7% 5.5% 16 Parkview Townhomes 24 Completed M Source: CBRE, Inc. 17 Seasons of Layton 164 Completed M CURRENT RENTAL & VACANCY RATES DAVIS COUNTY NEWS HEADLINES 18 Sessions Settlement 19 Completed M 19 The Park at Legacy Trails 162 Completed M BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL 20 University Ridge 32 Completed M CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 21 Village at Church & Main 56 Completed M 22 Villas on Main 144 Completed M Studio $523 $1.45 $695 $2.04 $665 $1.93 23 101 Main Street 128 Potential Start M 1 Bed 1 Bath $848 $1.22 $966 $1.50 $959 $1.48 24 7th West Townhomes 60 Potential Start M 2 Bed 1 Bath $954 $1.00 $1,078 $1.20 $1,055 $1.16 25 Clearfield Townhomes 42 Potential Start M 2 Bed 2 Bath $1,065 $1.08 $1,178 $1.22 $1,157 $1.19 26 Cimarron at Foxboro 102 Potential Start M 27 Layton 193 134 Potential Start M 3 Bed 2 Bath $1,271 $0.99 $1,401 $1.15 $1,382 $1.12 28 Layton Hills 190 Potential Start M Overall $947 $1.07 2.4% $1,072 $1.31 3.1% $1,060 $1.25 3.0% 29 Phoenix Services 6 Potential Start M Source: CBRE, Inc. 30 ICO Station Parkway 267 Potential Start M 31 Renaissance Place 40 Potential Start M HISTORICAL RENTAL RATES 32 Syracuse Apartments 200 Potential Start M 33 The Cove 55 Potential Start M BY YEAR 2016 2017 2018 34 Jaybird Apartments 12 Potential Start M CATEGORY RENT $/SF RENT $/SF RENT $/SF 35 Aero Townhomes 49 Under Construction M 36 Carrington Place - Ph II 60 Under Construction M Studio $512 $1.39 $586 $1.43 $665 $1.93 37 Clearfield Station 216 Under Construction M 1 Bed 1 Bath $839 $1.27 $906 $1.29 $959 $1.48 4,160 Total Units 2 Bed 1 Bath $911 $1.04 $987 $1.10 $1,055 $1.16 Status/Type M A S ST Total 2 Bed 2 Bath $1,051 $1.09 $1,071 $1.06 $1,157 $1.19 Completed 2,449 0 150 0 2,599 MARKET SENIOR Under Construction 325 0 0 0 325 M 4,010 Units S 150 Units 3 Bed 2 Bath $1,158 $1.00 $1,221 $0.97 $1,382 $1.12 Potential Start 1,236 0 0 0 1,236 A AFFORDABLE ST STUDENT Overall $864 $1.08 $1,005 $1.11 $1,060 $1.25 Total 4,010 0 150 0 4,160 0 Units 0 Units Source: CBRE, Inc. Source: Western States Multifamily. Maps as of February 2019.

GREATER SALT LAKE AREA MULTIFAMILY REPORT

WEBER COUNTY WEBER COUNTY: MULTIFAMILY COMPLETED/PIPELINE, 2013 - JANUARY 2019

OVERALL VACANCY & RENT # NAME UNITS STATUS TYPE 10.0% $900 1 Aderra 114 Completed M 2017 2018 VACANCY (%) RENT ($) 9.0% 2 City Garden 61 Completed M $800 VACANCY RATE VACANCY RATE 8.0% 3 Claradon Village - Phase I-II 300 Completed M 7.0% $700 4 Colonial Court - Phase 2 73 Completed M 3.2% 2.5% 6.0% 5.0% $600 5 Imagine Jefferson - Phase I-II 172 Completed A 4.0% 6 Lomond View 38 Completed A&S $500 RENTAL RATE RENTAL RATE 3.0% 7 Mountain View Townhomes- Phase 3 145 Completed M 2.0% $400 8 Oak Ridge - Phase 2 12 Completed M $864 $937 1.0% 0.0% $300 9 One West 216 Completed M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10 Parkview at Hooper 12 Completed M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 11 Station at Pleasant View 144 Completed A Vacancy (%) 6.3% 7.2% 9.0% 6.8% 6.5% 6.1% 6.9% 4.7% 4.2% 2.3% 3.2% 2.5% 12 Station at Pleasant View - Phase 3 128 Completed A Rent ($) $623 $651 $639 $640 $655 $684 $678 $698 $754 $810 $864 $937 13 Station Square 31 Completed A 14 The Cove at Pleasant View 88 Completed M YOY Rent Growth 4.5% 4.5% -1.8% 0.2% 2.3% 4.4% -0.9% 2.9% 8.0% 7.4% 6.6% 8.5% 15 The View on 20th 148 Completed M Source: CBRE, Inc. 16 Tower View Apartments 144 Completed M CURRENT RENTAL & VACANCY RATES WEBER COUNTY NEWS HEADLINES 17 View at the Junction 40 Completed M

BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL 18 11 West Apartments 303 Potential Start M 19 3801 South Haarrison Boulevard 41 Potential Start ST CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 20 644 28th Street 6 Potential Start M Studio $662 $1.18 $586 $1.53 $591 $1.49 21 Greenhill at Riverdale - Phase 2 30 Potential Start M 1 Bed 1 Bath $687 $0.99 $897 $1.21 $850 $1.16 22 Haven Cove Townhomes - Phase 2 43 Potential Start M 2 Bed 1 Bath $800 $0.90 $877 $0.98 $854 $0.95 20 Lewis Peak Apartments 86 Potential Start M 2 Bed 2 Bath $1,053 $1.02 $1,140 $1.06 $1,129 $1.05 21 Sunrise Point Townhomes 17 Potential Start M 22 The Landing at Five Points 68 Potential Start A 3 Bed 2 Bath $1,296 $0.92 $1,210 $0.92 $1,237 $0.92 23 The Ranches - Phase 3 154 Potential Start M Overall $878 $0.94 3.6% $965 $1.06 2.3% $937 $1.01 2.5% 24 The View on 20th - Phase 2 145 Potential Start M Source: CBRE, Inc. 25 Village at Prominence Point 249 Potential Start M HISTORICAL RENTAL RATES 26 Haven Cove Townhomes 113 Under Construction M 27 Moda Vista 79 Under Construction M BY YEAR 2016 2017 2018 28 Orchards on 19th 75 Under Construction M 29 Parkside 7 32 Under Construction M CATEGORY RENT $/SF RENT $/SF RENT $/SF 30 Roy Regency Apartments 11 Under Construction M Studio $496 $1.30 $510 $1.28 $591 $1.49 31 Seasons on Skyline 256 Under Construction M 1 Bed 1 Bath $726 $0.99 $756 $1.00 $850 $1.16 32 The Ranches 79 Under Construction M 2 Bed 1 Bath $748 $0.81 $820 $0.89 $854 $0.95 Status/Type M A S ST Total 3,653 Total Units 2 Bed 2 Bath $970 $0.88 $992 $0.92 $1,129 $1.05 Completed 1,353 475 38 0 1,886 MARKET SENIOR Under Construction 645 0 0 0 645 M 3,031 Units S 38 Units 3 Bed 2 Bath $1,048 $0.78 $1,175 $0.86 $1,237 $0.92 Potential Start 1,033 68 0 41 1,142 A AFFORDABLE ST STUDENT Overall $810 $0.86 $864 $0.90 $937 $1.01 Total 3,031 543 38 41 3,653 543 Units 41 Units Source: CBRE, Inc. Source: Western States Multifamily. Maps as of February 2019.

GREATER SALT LAKE AREA MULTIFAMILY REPORT

MARKET ECONOMIC SUMMARY THE CBRE DIFFERENCE The economic landscape for the Greater Salt Lake market will be a Nationally, CBRE’s multifamily investment sales totaled over $27 billion in 2018, maintaining a commanding lead in total sales volume next to LARGEST EMPLOYMENT SECTORS IN THE GREATER SALT LAKE AREA dynamic story of headwinds and tailwinds. Unemployment continues to any competitor. With 65 locations and over 300 multifamily professionals, including direct lending services, CBRE has an unparalleled multifamily platform, providing clients with the greatest market exposure available. Coupled with a proven marketing process, CBRE yields the highest values hover around 3.2%, and while healthy for job-seekers, employers are TRADE, TRANS, UTILITIES 19.0% for its clients. With the powerful resources of CBRE’s national multifamily platform, along with the most comprehensive local market research, CBRE concerned about a tight labor market. Some concern is alleviated by GOVERNMENT 16.4% PROFESSIONAL & Multifamily in Salt Lake City is poised to maximize multifamily values and achieve superior outcomes. a growing workforce, as Utah has been a leading state for population BUSINESS SERVICES 14.1% growth for the past several years. This demographic strength has in turn EDUCATION & HEALTH 13.6% 2015 - 2018 U.S. MULTIFAMILY INVESTMENT SALES VOLUME (BILLIONS) fueled single and multifamily demand. HOSPITALITY & LEISURE 9.7% TOTAL SALES VOLUME (BILLIONS) MANUFACTURING 8.7% $35.0 Nationally, trends in capital investment have shifted to smaller CONSTRUCTION 6.8% $30.0 secondary markets. This trend is especially true for Utah as sales volume FINANCIAL ACTIVITIES 5.7% $32.3 reached $1.437 billion dollars in 2018—a new record. In the coming $25.0

INFORMATION $27.0

2.7% $20.0 $25.9 year, we expect positive fundaments amid some softening. Building on $24.5 OTHER SERVICES 2.7% momentum from a year of strong growth, Utah’s economy is uniquely $15.0 MINING 0.6% positioned to weather late-cycle corrections. $10.0 Source: 2018 Economic Report to the Governor Highlights 2019. $5.0 $0.0

ECONOMIC DRIVERS OF DEMAND TOP 5 STATE EMPLOYMENT EXPANSION (POST RECESSION) 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 CBRE MARCUS & MILLICHAP NEWMARK GRUBB HFF BERKADIA JLL CUSHMAN & WAKEFIELD EASTDIL SECURED KNIGHT FRANK Source: RCA Data Integration, February 2019. *Volume includes all properties that are 10 units and up or valued at over $1 million. 3.3% 1.9% $45,174 1 2 3 4 5 UTAH JOB GROWTH UTAH POPULATION ANNUAL INCOME GROWTH PER CAPITA Utah Texas North Dakota Colorado California DEBT MARKETS 18.5% 16.8% 15.2% 14.3% 12.4% 2018 set a record for multifamily finance volume, surpassing the $300 billion threshold for the first time, a 10% increase over the record set in 2017. Source: Kem C. Gardner Policy Institute 2019 Economic Report to the Governor. Source: Kem C. Gardner Policy Institute, January 2019 Economic Summary. Longer initial interest-only periods have helped keep cap rates very low; almost all deals are currently pricing in the 4%’s. 2019 volume is projected to be in line with 2018 levels, with Freddie Mac and Fannie Mae maintaining the largest overall market share. COMPONENTS OF POPULATION GROWTH – UTAH (THOUSANDS) HIGH-GROWTH COMPANY DENSITY Number of private businesses with at least $2 million in annual revenue 100 ESTIMATED MULTIFAMILY FINANCE VOLUME BY LENDER TYPE (BILLIONS) reaching three years of 20 percent annual revenue growth, normalized NATURAL INCREASE NET MIGRATION ABSOLUTE GROWTH $400 by total business population. Other CMBS Fannie Mae Freddie Mac Life Insurers 80 $350 WA ND MT $315 87.9 15.2 MN $313 26.2 73.7 ME $300 $285 SD WI 28.7 $269 OR ID 42.0 39.9 60 70.0 WY MI NY $250 38.3 12.9 IA 57.3 67.1 NE $250 32.7 42.6 PA IL IN OH 64.2 NV VT 12.6 UT CO 76.6 55.1 85.1 $200 45.3 174.8 KS MO WV NH 67.2 96.9 MA 100.0 40 61.9 47.4 KY 31.7 VA CA 30.8 208.3 RI 19.2 CT 37.9 OK TN NC 88.9 NJ 73.4 $150 30.7 AR 71.2 69.9 AZ NM 17.9 MD 102.8 101.6 16.2 SC DE 76.2 MS AL GA 67.7 19.7 66.0 $100 20 TX 124.5 82.8 LA <50.0 40.9 $50 AK 50.0 - 74.9 7.3 FL 75.0 - 99.9 0 77.0 $0 2015 2016 2017 2018 2019* 2020* 2021* HI 100+ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ESTIMATE* 2019 PROJECTED* 26.8 *Projected *2018 and 2019 results are projections as of Dec 2018. Source: CBRE EA. Source: Kem C. Gardner Policy Institute, January 2019. Source: Freddie Mac 10-Ks, 10-Qs, FHFA Report to Congress, and Freddie Mac’s internal reports, Fannie Mae 10-Ks, 10-Qs, FHFA Report to Congress, and Fannie Mae’s Multifamily Monthly New Business Volumes, ACLI, Wells Fargo Securities LLC, Intex Solutions Inc., Mortgage Bankers Association and Freddie Mac internal research.

PATRICK BODNAR ELI MILLS DOUG BIRRELL Senior Associate Senior Vice President First Vice President Capital Markets Capital Markets Debt & Structured Finance +1 801 869 8053 +1 801 869 8029 +1 801 869 8041 [email protected] [email protected] [email protected]

TOP FIRM SINCE 2001 $29.5B+ 300+ PROFESSIONALS #1 FREDDIE MAC $29.6B U.S. MULTIFAMILY MULTIFAMILY SALES U.S. MULTIFAMILY SELLER/SERVICER MULTIFAMILY (PER RCA) TRANSACTIONS IN 2018 2018 FINANCING 2018

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

© Copyright 2019 CBRE Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.