Research & Forecast Report

TAMPA Accelerating success. Q3 2017 | Multifamily

Source: AXIOMetrics. RCA, CoStar

Market Survey Results and Forecasts Sequential Month Annual 4Q16 1Q17 2Q17 3Q17 Sep-17 2015 2016 2017F 2018F 2019F 2020F 2021F Effective Rent Per Unit $1,110 $1,112 $1,129 $1,144 $1,147 $1,043 $1,101 $1,131 $1,158 $1,193 $1,240 $1,279 Per Sq. Ft $1.18 $1.18 $1.20 $1.21 $1.21 $1.10 $1.17 $1.20 $1.23 $1.26 $1.31 $1.35 Effective Rent Growth - Annually 4.0% 3.4% 2.5% 2.4% 2.3% 6.0% 5.6% 2.7% 2.4% 3.1% 3.9% 3.1%

Effective Rent Growth - Quarterly -0.6% 0.2% 1.5% 1.3% Occupancy Rate 94.7% 94.9% 95.0% 95.2% 95.1% 95.5% 95.3% 95.0% 94.6% 95.0% 95.3% 94.9% Occupancy Change - Annually -0.9% -0.7% -0.6% -0.2% -0.1% 0.7% -0.2% -0.3% -0.4% 0.4% 0.3% -0.4% Occupancy Change - Quarterly -0.7% 0.1% 0.2% 0.2% Economic Concessions Concession Value $-6.40 $-7.11 $-5.48 $-4.02 $-3.73 $-3.74 $-4.46 As a % of Asking Rent -0.6% -0.6% -0.5% -0.4% -0.3% -0.4% -0.4% RECENT SALES

Date Property Name Address City Units Year Built Price in $ $/Units Oct-17 The Commons 3408 Lancaster Ct Egypt Lake- 200 1972 24,050,000.00 120,250 Leto Oct-17 Seneca at Cypress Creek 1810 Sweetbroom Cir Wesley Chapel 451 2010 78,865,000.00 174,867 Sep-17 The Preserve at Mobbly 8210 Solano Bay Loop Tampa 316 2000 / 2008 47,000,000.00 148,734 Bay Aug-17 Sanctuary at Highland 10246 Douglas Oak Cir Brandon 456 2002 70,000,000.00 153,509 Oaks Aug-17 Northgreen at Carrollwood 3831 Northgreen Ave Tampa 438 1986 / 2017 63,688,262.00 145,407 Aug-17 Boardwalk at Morris 8800 Boardwalk Dr Tampa 146 2001 / 2006 27,400,000.00 187,671 Bridge Apts Jul-17 Element 812 N Franklin St Tampa 395 2008 118,500,000.00 300,000 Jul-17 Fountainwood Manor 2810 University Sq Tampa 79 1980 / 1998 4,800,000.00 60,759 Jul-17 Gateway on 4th 501 116th Ave N Saint 304 1975 / 2013 32,882,000.00 108,164 Apartments Petersburg Jul-17 Oaks at Temple Terrace 5518 Terrace Ct Temple Terrace 128 1970 / 2005 8,850,000.00 69,141 Jul-17 Columns at East Bay 3660 E Bay Dr Largo 196 1986 20,300,000.00 103,571 Jul-17 Hamlin at Lake Brandon 1508 Ladora Dr Brandon 360 2003 60,000,000.00 166,667 Apartments Jun-17 Venue at North Campus 13702 N 42nd St Tampa 148 2012 33,654,110.40 227,393 Jun-17 Sunstone Palms 2225 E 131st Ave Tampa 536 1975 . 1995 41,700,000.00 77,799 Jun-17 Wind Tree 8540 Congress St Port Richey 324 1978 8,250,000.00 25,463 Jun-17 The Lakes at Port Richey 8228 Chasco Woods Blvd New Port 288 1986 / 2016 29,001,600.00 100,700 Richey Jun-17 Pearce at Pavilion 3603 Pavilion Palms Cir Riverview 250 2016 49,927,791.70 199,711 May-17 Aarans Walk 13101 Aarans Pond Dr Tampa 109 1972 5,362,650.00 49,199 Condominiums (bulk cond) May-17 St Charles Row 1175 Pinellas Point Dr S Saint 368 1972 / 1997 37,465,000.00 101,807 Petersburg May-17 Enclave At Wesley Chapel 1930 Devonwood Dr Wesley Chapel 312 2005 / 2016 52,500,000.00 168,269 May-17 The Park At Aberdeen 2902 Sycamore Ct Tampa 320 1972 / 2008 24,100,000.00 75,313

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 2 SUPPLY AND DEMAND According to the Bureau of Labor Statistics, job growth in Tampa-St. Petersburg-Clearwater, FL Metro Area was 3.1% in August 2017, reflecting 39,600 jobs added during a 12-month period. The metro job growth figure was above the national number of 1.5%.

Axiometrics forecasts Tampa-St. Petersburg-Clearwater, FL Metro Area’s job growth to be 2.0% in 2018, with 26,405 jobs added. Job growth is expected to average 1.9% from 2019 to 2021, with an average of 25,804 jobs added each year.

On the supply side, permits for 5,568 multifamily units were issued in the 12 months ending in August 2017, down -764 units from the prior year’s sum. In terms of total residential housing, 18,046 units were permitted in the 12 months ending August 2017, an increase of 866 units from the prior year’s total.

Market Employment and Permitting Annual August-17 Annual Forecast 2014 2015 2016 Market National 2017F 2018F 2019F 2020F 2021F Employment (000s) 1,208.4 1,250.9 1,296.8 1,336.5 146,541.0 1,333.0 1,359.4 1,383.9 1,411.7 1,436.8 Job Gain (000s) 32.0 42.5 45.9 39.6 2,100.0 36.2 26.4 24.6 27.8 25.1 Job Growth (%) 2.7% 3.5% 3.7% 3.1% 1.5% 2.8% 2.0% 1.8% 2.0% 1.8% Total Residential Permitting 12,427 15,283 17,180 16,581 1,120,198 20,109 21,102 19,061 18,147 20,447 Relative Change 3.4% 23.0% 12.4% 10.7% 6.1% 17.0% 4.9% -9.7% -4.8% 12.7% Single Family Units Permitted 7,269 9,046 10,683 11,209 723,217 Relative Change -0.8% 24.4% 18.1% 19.2% 9.8% Multifamily Units Permitted 4,896 6,044 6,332 5,286 364,705 Relative Change 9.8% 23.4% 4.8% -2.6% -1.0% Multifamily as a % of Total 39.4% 39.5% 36.9% 31.9% 32.6% Demand/Supply Ratio Job Gain / Total Residential Units Permitted 2.7 3.4 3.0 2.6 2.0 2.1 1.3 1.2 1.5 1.4 Job Gain / Single Family Units Permitted 4.4 5.8 5.1 4.2 3.2 Job Gain / Multifamily Units Permitted 7.2 8.7 7.6 7.3 5.7

Multifamily Absorption and Supply Annual 3Q17 Annual Forecast 2014 2015 2016 Market National 2017F 2018F 2019F 2020F 2021F Total Units Absorbed 6,710 5,626 1,731 3,996 350,478 5,371 3,517 5,461 4,047 1,657 New Supply 4,012 3,987 4,704 5,325 387,002 5,416 4,746 4,026 3,204 3,869 Inventory Growth 1.3% 1.3% 1.5% 1.6% 1.5% 1.7% 1.5% 1.2% 1.0% 1.2%

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 3 IDENTIFIED SUPPLY As of October 15, 2017, Axiometrics has identified 4,770 apartment units scheduled for delivery in 2017, of which, 3,538 have been delivered. As a comparison, there were 3,231 apartment units delivered in 2016. Properties delivered to the market in the last 12 months have achieved an average asking rent of $1,686 per unit, or $1.71 per square foot. Effective rent has averaged $1,604, or $1.63 per square foot, resulting in an average concession value of $-82.40. As a comparison, existing properties in the market had an average asking rent of $1,148 per unit ($1.22 per square foot) and an average effective rent of $1,144 per unit, or $1.21 per square foot, in 3Q17. Concessions for existing properties averaged $-4.02.

Submarket Delivery Schedule Pipeline Delivery Schedule Pipeline Lease Up Trend Units Absorbed Asking Rent Effective Rent Top Submarkets 2015 2016 2017 Total Totals PPM Per Unit PSF Per Unit PSF Central Tampa 768 799 2,397 3,964 1,192 15 $2,018 $2.03 $1,876 $1.89 Clearwater 379 47 360 786 101 9 $1,393 $1.67 $1,330 $1.60 North St. Petersburg 278 253 531 301 18 $1,621 $1.58 $1,532 $1.50 South Hillsborough County 260 250 366 876 197 15 $1,411 $1.43 $1,364 $1.38 University North 144 418 562 372 18 $1,388 $1.36 $1,287 $1.26 Other 2,136 1,713 976 4,825 989 12 $1,545 $1.57 $1,505 $1.53 Tampa-St. Petersburg-Clearwater, FL 3,543 3,231 4,770 11,544 3,152 14 $1,697 $1.72 $1,606 $1.63 *Based on 2017 deliveries *Trend based on a trailing 12 month period

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 4 PIPELINE MAP GREATER TAMPA

59 37 14 38 54 35 33 11 77

75 60

4 61 20

32 30 13 53 69 Downtown 18 78 34 Tampa 15 46 25 50 74 12 36 24 40 51 73 71 39 72 19 1 70 49 48

68 27 6 67 63 26 7 65 55 Key 6629 Lease-Up

Under Construction

Proposed SARASOTA

64 2 31 52 21

58 47 57 28 56 3 10 76 5 22 23 43 45 17 44 9 8 41

16

62

42

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 5 PIPELINE DETAIL # Name Status Owner Address Market Units Lease Up 1 Peridot Palms Lease Up Parkland Development Corporation 10601 Gandy Blvd N Brighton Bay 381 2 Grady Square Lease Up Wisdom Development Group, Inc. 2615 N Grady Ave Carver City-Lincoln Garde 300 3 The Fitzgerald Lease Up Crystals Corporation 1211 E Kennedy Blvd 300 4 Aida Palms Lease Up Green Mills 140 Aida Sr City of Lakeland 96 5 Aurora Lease Up The Richman Group 124 S Morgan St Downtown 351 6 Aer Lease Up American Land Ventures 330 3rd Ave Downtown St Petersburg 358 7 The Hermitage Apartment Lease Up The Allen Morris Company 151 7th St S Downtown St Petersburg 348 Homes 8 500 Lease Up Forge Capital Partners 500 Knights Run Ave Harbour Island 235 9 Icon Harbour Island Lease Up The Related Companies 301 Harbour Place Dr Harbour Island 340 10 Havana Square Lease Up Southern Roofing 400 N Rome Ave North 274 11 Integra Junction Lease Up Hines Interests Limited 15175 Integra Junction Outer Pasco County 322 Partnership 12 Alta at Magnolia Park Lease Up Wood Partners 9155 Canopy Oak Ln Outer Southeast Tampa 292 13 Ariva Luxury Apartments Lease Up Daniel Reiter 4100 Clubhouse Rd Outlying Polk County 312 14 Legacy Union Square Lease Up Goldberg Companies, Inc. 8300 Osceola Polk Line Rd Outlying Polk County 152 15 The Avenue Apartments Lease Up Village Partners 6720 S Florida Ave Outlying Polk County 264 16 Springs at Bee Ridge Lease Up Continental Properties Company, 5900 Wilkinson Rd Sarasota 360 Inc. 17 The Desota Lease Up Carter USA 1415 2nd St Sarasota 180 18 The Nolen Lease Up Forge Capital Partners 949 Cleveland St South Clearwater 250 19 M South Lease Up Pollack Shores Real Estate Group 5110 S Manhattan Ave Sun Bay South 108 20 The Lodge at Hidden River Lease Up Oxford Properties 14059 Riveredge Dr Temple Terrace 300 21 The Point at Bella Grove Lease Up Waypoint Residential LLC 8310 Bella Grove Cir Whitfield 180 Units 5,703

Under Construction 22 Altis Grand Central Under Construction The Altman Companies 548 W Grand Central Ave Alice Kelly's 314 23 Tampa Tribune Building Under Construction The Related Companies 202 S Parker St Alice Kelly's 400 24 Lenox of Bloomingdale Under Construction The Richman Group of Florida, Inc. 5910 Robert Tolle Dr Brandon 240 25 Tessera of Brandon Under Construction Srh Dev Llc 1320 Oakfield Dr Brandon 138 26 Burlington Post Under Construction Green Mills 3201 Burlington Ave Central Plaza 86 27 Skyline Fifth - Phase II Under Construction Latitude One Partners LLC 3151 3rd Ave N Central Plaza 123 28 The Channel Club Under Construction ECI Group 1115 E Twiggs St Channel District 323 29 Avanti Under Construction The NRP Group, LLC 201 4th Ave S Downtown St Petersburg 366 30 Dunedin Commons Under Construction Dunedin Commons Llc 375 Patricia Ave Dunedin 280 31 Bainbridge Under Construction The Bainbridge Companies 1512 E 12th Ave Historic Ybor 240 32 The Alexander at Countryside Under Construction Alexander Investments 2524 Alexander Pl North Clearwater 330 International, Inc 33 Park at Wellington - Phase II Under Construction Rieger, Matthew 4311 Jordana Way Northwest Holiday 110 34 Seazen Under Construction ZOM, Inc. 7616 W Courtney Campbell Outer Central Tampa 323 Cswy 35 Mystic Pointe Under Construction Rane Property Management, LLC 17053 State Road 54 Outer Pasco County 252 36 Azola Magnolia Park Under Construction The Bainbridge Companies 9374 Progress Blvd Outer Southeast Tampa 366 37 Champions Vue Apartments Under Construction Srvp Llc 7396 State Route 25 Outlying Polk County 326 38 Legacy Union Square Under Construction Goldberg Companies, Inc. Osceola Polk Line Rd Outlying Polk County 190 39 Charleston on 66 Under Construction Theodore F Bertuca 12700 66th St Pinellas Park 258 40 Palms of Pinellas Under Construction Pinellas County Housing Authority 13101 S Belcher Rd Pinellas Park 102 41 50 Paramount Under Construction Renovatio Realty Group 50 Paramount Dr Sarasota 284 42 Anson at Palmer Ranch Under Construction A.G. Spanos Companies 6201 Sawyer Loop Rd Sarasota 239 43 Arcos Under Construction Forge Capital Partners 1401 Fruitville Rd Sarasota 228 44 Bold Lofts Under Construction Hub2pointo Llc 1659 2nd St Sarasota 97 45 Elan Rosemary Under Construction PGIM Real Estate 710 N Lemon Ave Sarasota 286 46 Vue at Belleair Under Construction Flournoy Companies 2517 Belleair Rd South Clearwater 339 47 The Tempo at Encore Under Construction JMG Realty, Inc. 1102 Ray Charles Blvd South Nebraska 204 48 The Addison on Long Bayou Under Construction ContraVest 10260 Bayou Grande Ave South Seminole 247

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 6 PIPELINE DETAIL, cont. # Name Status Owner Address Market Units 49 M South - Phase II Under Construction Pollack Shores Real Estate Group 5110 S Manhattan Ave Sun Bay South 180 50 Ave Under Construction BTI Partners Westshore Ave Sun Bay South 476 51 Westshore Marina District Under Construction The Related Group of Florida 5000-5098 W Gandy St Sun Bay South 396 52 The Pearl Under Construction Capital 350 W Palm Ave 300 53 Parker's Landing Under Construction Cortland Partners 6348 Longboat Blvd Tampa Shores 350 54 Main Street Landing Under Construction Onicx 5500 Main St Town of New Port Richey 80 55 930 Central Flats Under Construction The Bainbridge Companies 930 Central Ave University Park 218 56 AER in the Arts District Under Construction Crescent Communities, LLC 259 W Tyler St Uptown Tampa 344 57 Nine15 Under Construction H. J. Russell & Company 915 N Franklin St Uptown Tampa 362 58 Novel Riverwalk Under Construction Crescent Communities, LLC 109 W Fortune Dr Uptown Tampa 395 59 Altis Wiregrass Ranch Under Construction The Altman Companies 28878 Golden Vista Blvd Wesley Chapel 375 60 Oasis at Highwoods Preserve Under Construction Picerne Real Estate Group 18300 Highwoods Preserve 295 Pky 61 11363 Countryway Blvd Under Construction Pleasants Corp 11363 Countryway Blvd Westchase 113 Units 10,575

Proposed 62 Proposed MF/Office Proposed Skyway Capital Partners 2907 W Bay to Bay Blvd /Palma 125 Center 63 5th Ave Residences Proposed The Richman Group 555 Martin Luther King Jr. St Campbell Park 132 64 MetWest Apartments Proposed MetLife, Inc. 4050 W Boy Scout Blvd Carver City-Lincoln Garde 254 65 211 3rd St S Proposed American Land Ventures 211 3rd St S Downtown St Petersburg 201 66 801 Central Ave Proposed 801 Central-st Pete Llc 801 Central Ave Downtown St Petersburg 354 67 Grand Bohemian Apartments Proposed Greenfield Partners LLC N 2nd St Downtown St Petersburg 306 68 First North Lofts Proposed DevMar Development, LLC 1636 2nd St N Historic Old Northeast 214 69 3015 N Dr Proposed BBC Rocky Point, LLC 3015 N Rocky Point Dr Outer Central Tampa 258 70 Bermuda Bay Apartments Proposed Shamrock Realty Advisors S Westshore Blvd & W Pres Port Tampa City 352 71 5145 S Dale Mabry Hwy Proposed Gries Investments Inc 5145 S Dale Mabry Hwy Sun Bay South 300 72 5220 S West Shore Blvd Proposed The Bainbridge Companies 5220 S West Shore Blvd Sun Bay South 351 73 Waterside West Apartments Proposed IMDC Acquisitions 5320 S West Shore Blvd Sun Bay South 192 74 Westshore Ave Proposed BTI Partners Westshore Ave Sun Bay South 431 75 Meres Crossing Apartments Proposed DDA Development 1250 S Pinellas Ave Tarpon Springs 236 76 200 E Madison St Proposed Urban Core Holdings LLC 200 E Madison St Uptown Tampa 120 77 Wiregrass Apartments Proposed Forest City Realty Trust, Inc. State Road 56 Wesley Chapel 249 78 Serenity at Lake Wales Proposed Equinox Companies Chalet Suzanne Rd Winter Haven/Lake Wales 335 Units 4,410

Total Units 20,688

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 7 OUR PROVEN TRACK RECORD Recent Closings

WHO WE ARE

One of the largest and most experienced teams of multifamily specialists in the industry

Venue at Lakewood Ranch Sarasota, FL MORE THAN Units: 237 50 Dedicated Multifamily VENUE AT LAKEWOOD RANCH | Sarasota, FL Professionals & Advisors CLIENT: Davis Development UNITS: 237

CHALLENGE: COVERING OVER STATES The challenge for this property was to sell prior to stabilization, and upon 65% occupancy in a market that no longer supports San Marin Apartments pre-sales. 20 Tampa, FL Expansive geographic footprint Units: 193 STRATEGY & RESULTS: To sell this community, which was still under construction, our team was able to leverage our years of experience MORE THAN in order to match the seller with a buyer whose tastes in property acquisition met those of the property.

33,500 The East Region Multifamily Advisor Group provided Units sold since 2011 Broker representation to both the buyer and seller. Additionally, We provided the clients with market research, property marketing, and assisted through all negotiations. Grandville on Saxon We were successful in achieving the highest price on Orange City, FL , even prior to stabilization. $2.3B Units: 316 record in the Sarasota market Group gross transaction value in since 2011

Grand Reserve at Park Isle Clearwater, FL Units: 390

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 8 WE CAN HELP As an investor in multifamily properties, you need a firm that provides experience, broad reach and the ability to market an asset no matter how challenging the economic environment. You need a team that specializes in your market you need The East Region Multifamily Advisory Group.

Colliers International has one of the largest and most experienced teams in the industry, strategically located in key markets throughout North America. Our combination of market dominance, expertise, and singular focus, make us uniquely successful in helping our clients achieve their disposition objectives.

How are we able to bring together the skills and tools necessary to complete challenging assignments? Our East Region Multifamily Advisory Group is connected by purpose and focus. Our team is dedicated to sharing information on market opportunities, capital sources and buyers/sellers to achieve the best results for our clients.

COLLIERS INTERNATIONAL www.ColliersMultifamilyEast.com MULTIFAMILY ADVISORY GROUP P. 9 Will Mathews Craig Brown Payton Herschberger SENIOR VICE PRESIDENT | ASSOCIATE | EAST REGION ASSOCIATE | EAST REGION PRINCIPAL | EAST REGION [email protected] [email protected] [email protected] DIR +1 407 312 9349 DIR +1 404 574 1061 DIR +1 404 877 9285

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