404 Units 5.0% $3.62 $84.7M

SPOTLIGHT ON DUPONT CIRCLE MULTIFAMILY AUGUST 2017

Dupont Circle Fountain

Market Overview Rental Overview

7% Three Bedroom 404 units 42% Expected to deliver through July 2018, Two Bedroom equivalent to 6.0% of current existing 7% inventory Studio % 5.0 Inventory Current vacancy rate in Dupont Circle, Composition 1.5% below the five-year historical average

$ 44% 3.62 One Bedroom Average effective rent per square foot in the Dupont Circle submarket, up 2.9% year-over-year $84.7M Studio $1,650 Total multifamily sales volume since 1 BDR $2,205 2012, averaging $217,000 per unit

during the period 2 BDR Unit Type $3,106

Data courtesy of Greysteel Research, CoStar Realty Information, Inc. 3 BDR $3,924 Survey includes multifamily properties greater than 10 units. Affordable properties are excluded from the analysis. In an effort to identify and eliminate out-of-date data, properties with rents one standard deviation below the mean (for any $500 $1,500 $2,500 $3,500 $4,500 respective floor plan) were removed from the analysis. Average Asking Rent Per Month

The report below features a sampling of properties located in the Dupont Circle submarket. Please note the different locations and adjust comparisons accordingly.

Gables Dupont Circle | 1750-1754 P Street, NW The Regent | 1640 16th Street, NW

Unit Type Asking Rent $/PSF Unit Type Asking Rent $/PSF

One Bedroom $3,121 $3.85 One Bedroom $2,894 $3.90

Two Bedroom $4,167 $3.65 Two Bedroom $3,675 $3.50

The Preston | 1743 P Street, NW The Shelby | 1706 T Street, NW

Unit Type Asking Rent $/PSF Unit Type Asking Rent $/PSF

Studio $1,630 $4.29 One Bedroom $2,286 $4.28

One Bedroom $2,426 $4.81 Two Bedroom $2,807 $4.23

Two Bedroom $2,839 $3.70

Rocksboro | 1717 R Street, NW 1715 P | 1715 P Street, NW

Unit Type Asking Rent $/PSF Unit Type Asking Rent $/PSF

Studio $1,550 $4.77 Studio $1,367 $2.28

One Bedroom $1,728 $3.09 One Bedroom $1,799 $2.40

Two Bedroom $2,431 $2.70

Unit & Common Area Amenities

Gables Dupont Property The Regent The Preston The Shelby Rocksboro 1715 P Circle

Year Built | Occupancy 1998, r. 2015 | 98% 2000 | 98% 1917, r. 1990 | 82% 1916, r. 2009 | 92% 1945 | 95% 1921 | 100%

Balcony/Patio • • Controlled Access • • • • • • Fitness Center • Granite Countertops • • • • Hardwood Flooring • • • • • • In-Unit Washer/Dryer • • • • Parking • • • Pet-Friendly • • Stainless Steel Appliances • • • • Walk-In Closets • • •

Listed properties represent a small cross-sampling of the overall market. Data courtesy of Greysteel Research, CoStar Realty Information, Inc. CONTINUE TO SALES COMPARABLES

The report below features a sampling of properties sold in the past 30 months in the Dupont Circle area. Please note that different locations, amenity base, asset vintage, unit sizes and mixes, and other variables contribute to variances in sales metrics, and adjustments to comparisons should be made accordingly. Also note that sales comparables provide a snapshot of recent transactions and are not a perfect predictor of future market movement and behavior.

The Envoy 1524 18th 1803 19th 2125 N 2108 R Kalorama Dupont Circle Dupont Circle Dupont Circle Dupont Circle

Property

Close Date April 2015 April 2017 October 2015 November 2015 February 2017

No. of Units 124 4 10 4 3

Year Built 1959, r. 2017 1900 1900, r. 2009 1900 1900, r. 1986

Price $26,750,000 $2,279,000 $2,150,000 $1,700,000 $2,700,000

Price/Unit $215,725 $569,750 $215,000 $425,000 $900,000

Price/SF $304.13 $457.08 $346.77 $725.26 $888.45

Cap Rate — — 7.00% 5.90% 5.65%

Listed properties represent a small cross-sampling of the overall market. Data courtesy of Greysteel Research, CoStar Realty Information, Inc. CONTINUE TO EXCLUSIVE OFFERING

ST. CHARLES TOWNHOMES St. Charles, Maryland

Investment with Multiple Exit Strategies Home ownership in the area is expected to rise from 2017–2022 by 8.4% (1.68% annually) which is over twice the national average. Home inventory is rapidly declining within the county, as Charles County has gone from 4.3 months of listing inventory to 3.0 months YoY, the largest decrease in Maryland. With continually declining inventory, pricing momentum will continue to improve. While the Property is expected to trade to a portfolio owner/operator of single family home rentals, this rise in homeownership grants new ownership the flexibility to operate the Property on a cash-flow basis while preserving a potential future sale opportunity. Such plasticity is desirable for new ownership as it allows for multiple exit strategies.

Surrounded by Amenities The Property is well-located close to the center of Waldorf which has an abundance of consumer and lifestyle amenities. Popular amenities include Target, Costco, Lowe’s, Giant, TGI Fridays, Macy’s, Walgreen’s, Walmart, and many others. Additionally, several entertainment amenities are adjacent to the Property including the Southern Maryland Blue Crabs baseball team stadium and White Plains Golf Course. The existence of strong shopping, retail, dining, and entertainment options draws residents from a wide radius of Waldorf itself, and the Property’s location convenient to the town center will command strong rental demand from renter’s determined to live in close proximity to amenities.

Growing in Prosperity The economic state of the Waldorf area continues to flourish with Charles County having an anticipated income growth rate that is substantially higher than the national and state averages over the next five years. The per capita income for the county is projected to rise nearly $4,900 in that time. As disposable income rises, strong rent growth should be anticipated at the Property as competition for high-quality housing intensifies.

Convenient to Major Employment Hubs The Property’s location in St. Charles, MD draws residents who wish to live in suburban settings with immediate access to amenities and employment centers. St. Charles preserves the attractiveness of a quiet, suburban setting but is easily accessible to major employment hubs via Rt.-301 and I-495 including Joint Bases Andrews and Anacostia-Bolling, Suitland Federal Center, Alexandria, VA, and Downtown Washington, D.C.

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SALES: FINANCE:

W. KYLE TANGNEY HERBERT SCHWAT BRENDAN SCANLON Managing Director Investment Associate Senior Director 202.280.8730 202.618.3419 202.803.5810 [email protected] [email protected] [email protected]

INVESTMENT SALES DEBT & STRUCTURED FINANCE TRANSACTION SERVICES Herbert Schwat Mark Bittenbender Ari Firoozabadi** Duerk Brewer Yassi Farzaneh Rebecca Wiley Investment Associate Director President & CEO Chief Operating Officer Director of Corporate Services Director of Marketing

Max Freedman Brittany Wismer Jared Emery Carl Brown Kelsey Brendel Investment Associate Senior Finance Associate Lead Research Analyst Corporate Financial Analyst Senior Designer

* Corporate Headquarters and Transaction Services Center ** For more information or to inquire about Greysteel, please contact Ari Firoozabadi, CEO & President ([email protected] | 202.417.3873)

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