Apartment Fundamentals

APARTMENT FUNDAMENTALS

Q4 2020 CLICK HERE TO CHICAGO DEVELOPMENT PIPELINE DOWNLOAD THE FULL REPORT

UNDER LEASE-UP STABILIZED TOTAL AVG PER YEAR CONSTRUCTION

5,130 8,538 25,212 38,880 3,888 UNITS UNITS UNITS UNITS UNITS 22 31 111 164 16 PROPERTIES PROPERTIES PROPERTIES PROPERTIES PROPERTIES

Downtown Chicago - Annual New Supply

Downtown Chicago - Annual New Supply 6,000 5,382 5,404 5,271

5,000 4,727 4,733

4,007 4,000

2,865 3,000 2,695 2,466 Units Delivered 2,000

1,330

1,000

UNDER CONSTRUCTION

0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LEASING

STABILIZED CBRE CHICAGO MULTIFAMILY I 2 CHICAGO APARTMENT FUNDAMENTALS

Chicago Year-Over-Year % Rent Growth ChicagoChicago Year-Over-Year 4Q2020 % Occupancy Change 4Q YoY Rent Growth YoY Occupancy Change

UPTOWN / EDGEWATER / ROGERS PARK 6% OLD TOWN 5.3%

SOUTH SHORE 1% FAR WEST SIDE -0.3%

FAR WEST SIDE 1% LAKESHORE EAST -0.4%

CHICAGO MSA 0% CHICAGO MSA -1.1%

RIVER WEST / WEST TOWN -1% LINCOLN PARK/LAKEVIEW -1.6%

STREETERVILLE -2% RIVER NORTH -2.4%

WICKER PARK -4% STREETERVILLE -2.5%

NEAR NORTH -6% WICKER PARK -2.6%

OLD TOWN -7% SOUTH LOOP -2.7%

LOGAN SQUARE / BUCKTOWN -7% UPTOWN / EDGEWATER / ROGERS PARK -2.7%

GOLD COAST -7% SOUTH SHORE -3.2%

LINCOLN PARK/LAKEVIEW -7% WEST LOOP -4.3%

SOUTH LOOP -8% LOGAN SQUARE / BUCKTOWN -5.2%

LAKESHORE EAST -9% NEAR NORTH -5.6%

WEST LOOP -10% GOLD COAST -5.7%

RIVER NORTH -10% RIVER WEST / WEST TOWN -6.3%

THE LOOP -13% THE LOOP -9.3%

AxioMetrics, CoStar, CBRE Inc.

CBRE CHICAGO MULTIFAMILY I 3 CHICAGO CBD SUBMARKET OVERVIEWS

4Q2020 Rents & Occupancy $2,345/mo, $2.78 PSF $2,926/mo, $3.39 PSF $2,334/mo, $2.74 PSF $2,029/mo, $2.46 PSF -5.4% QoQ , -8.6% YoY -3.2% QoQ, -8.4% YoY -6.7% QoQ, -10.4% YoY -4.6% QoQ, -7. 4% YoY 90.1% occupancy 91.2% occupancy 90.4% occupancy 88.8% occupancy -1.9% QoQ, -3.6% YoY -0.9 QoQ, -1.8% YoY -1.7% QoQ, -3.0% YoY -3.0% QoQ, -5.9% YoY

Chicago CBD Deliveries Chicago CBDSince - New 2013 Supply Since 2013

SOUTH LOOP 6,455

RIVER NORTH 6,291 River North Streeterville $2,496/mo, $2.90 PSF I 90.8% $2,793/mo, $2.88 PSF I 90.4% WEST LOOP 6,107

West Loop The Loop STREETERVILLE 3,459 $2,270/mo, $2.84 PSF I 90.9% $2,125/mo, $2.58 PSF I 85.4%

LOOP South Loop Lakeshore East 2,964 $2,141/mo, $2.62 PSF I 89.4% $2,188/mo, $2.65 PSF I 93.9% LAKESHORE EAST 1,018

1,000 2,000 3,000 4,000 5,000 6,000 7,000

9 Assets Under Construction Totaling 2,873 Units Construction in the CBD Has Averaged 2,629 Annually Since 2013 Across 85 Projects

CBRE CHICAGO MULTIFAMILY I 4 CHICAGO DOWNTOWN (NON CBD) SUBMARKET OVERVIEWS

4Q2020 Rents & Occupancy $2,046/mo, $2.69 PSF $2,605/mo, $3.15 PSF $2,362/mo, $2.97 PSF $1,788/mo, $2.29 PSF -5.6% QoQ, -5.7% YoY -11. 6% QoQ, -12.8% YoY -7.2% QoQ, -4.6% YoY -10.9% QoQ, -9.5% YoY 89.5% occupancy 88.2% occupancy 88.3% occupancy 91.1% occupancy -3.2% QoQ, -4.9% YoY -6.8% QoQ, -6.7% YoY -3.1% QoQ, -3.2% YoY -2.3% QoQ, -5.4% YoY

Chicago Outer-DT Deliveries

Chicago Downtown Since(non CBD) 2013 - New Supply Since 2013

NEAR NORTH 1,926

GOLD COAST 1,600

Near North Old Town RIVER WEST $2,086/mo, $2.59 PSF I 89.7% $2,473/mo, $2.85 PSF I 88.5% 1,223

River West/West Town Gold Coast OLD TOWN 754 $2,284/mo, $2.80 PSF I 88.2% $1,801/mo, $2.74 PSF I 90.1%

WEST TOWN 172

500 1,000 1,500 2,000 2,500 6 Assets Under Construction Totaling 1,138 Units Construction in the Downtown (non CBD) Has Averaged 568 Annually Since 2013 Across 31 Projects

CBRE CHICAGO MULTIFAMILY I 5 CHICAGO NEIGHBORHOODS SUBMARKET OVERVIEWS

4Q2020 Rents & Occupancy $1,654/mo, $2.28 PSF $2,829/mo, $3.26 PSF $2,256/mo, $2.60 PSF $1,592/mo, $2.25 PSF -1.4% QoQ, -0.1% YoY -10.9% QoQ, -4.7% YoY -5.3% QoQ, -7. 8% YoY -1.4% QoQ, 1.9% YoY 91.6% occupancy 91.4% occupancy 87.9 % occupancy 91.0% occupancy -0.8% QoQ, -2.7% YoY 0.6% QoQ, -3.0% YoY -2.1% QoQ, -6.2% YoY -0.7% QoQ, -2.6% YoY

Chicago Neighborhood Deliveries

Chicago NeighborhoodsSince -2013 New Supply Since 2013

LAKEVIEW 1,207 LOGAN SQUARE 1,188 UPTOWN 1,171 LINCOLN PARK 1,056 Uptown/Edgewater/Rogers Park Lincoln Park/Lakeview HYDE PARK 496 $1,450/mo, $2.12 PSF I 92.2% $1,856/mo, $2.54 PSF I 92.2% PILSEN 394 Bucktown/Logan Square Wicker Park BUCKTOWN 394 $2,288/mo, $2.93 PSF I 89.7% $2,415/mo, $2.97 PSF I 93.5% EDGEWATER 318 WICKER PARK 306 Far West Side South Shore RAVENSWOOD 172 $2,055/mo, $2.83 PSF I 95.2% $1,374/mo, $1.85 PSF I 90.7% ROGERS PARK 161 LINCOLN SQUARE 48

200 400 600 800 1,000 1,200 1,400 7 Assets Under Construction Totaling 1,119 U n i t s Construction in the Chicago Neighborhoods Has Averaged 691 Annually Since 2013 Across 48 Projects

CBRE CHICAGO MULTIFAMILY I 6 CHICAGO SALES COMPARABLES

Ravenswood Essex on the Park Madison Throop 2555 N Clark 244 E Pearson Cityfront Place 21 E Chestnut Terrace Neighborhood South Loop West Loop Ravenswood Lincoln Park Streeterville Streeterville Gold Coast Year Built 2018 2016 2015 1987 192 8 19 91 19 62 Units 479 72 150 162 233 480 168 Avg. Size 817 1,033 861 781 715 769 629 Building Class AA A A B C B B Sale Price $190,000,000 $32,800,000 $46,000,000 $64,000,000 $34,820,000 $155,000,000 $44,000,000 Date Oct-20 Oct-20 Aug-20 Jun-20 May-20 Apr-20 Mar-20 21 East Chestnut Seller Oxford Capital Michigan Ave. RE Carlyle DWS Northwestern DWS Condominium Association Buyer Iconiq Dwelle Properties TLC Horizon BJB Properties SPNA SPNA $/Unit $396,660 $455,556 $306,667 $395,062 $149,442 $322,917 $261,905 $/SF $486 $405 $356 $480 $209 $412 $429 Cap Rate -- 5.65% 4.75% 4.00% -- 5.00% -- Price reported by Crain's CBRE transaction CBRE transaction CBRE transaction CBRE transaction Price reported by RCA Price reported by RE Alert

CBRE CHICAGO MULTIFAMILY I 7 CHICAGO SALES COMPARABLES

Monroe Aberdeen Marquee 1400 N Vesta Lofts Hubbard 221 13thirteen Prairie Shores Place at Block 37 Lake Shore Neighborhood West Loop South Loop River North Loop West Loop Gold Coast Bronzeville Year Built 2 018 1913 / 2 013 2017 2016 1927 / 2012 1927 1960 Units 12 0 59 195 690 74 391 1675 Avg. Size 1 ,118 772 803 855 790 729 607 Building Class A B AA A B C C Sale Price $65,820,000 $27,000,000 $94,000,000 $265,000,000 $40,150,000 $107,000,000 $180,000,000 Date Feb-20 Feb-20 Dec-19 Nov-19 Nov-19 Nov-19 Nov-19 1400 N Lake Shore Seller Michigan Ave. RE JK Equities Hubbard Street / Carlyle CIM JP Morgan Draper & Kramer Condominium Association Buyer Origin Greenstone Property Group Draper & Kramer Morguard Group RDG Funds ESG Kullen Farpoint / Golub $/Unit $548,500 $457,627 $482,051 $384,058 $542,568 $273,657 $107, 4 6 3 $/SF $491 $505 $582 $449 $446 $362 $177 Cap Rate 5.40% 4.50% 4.50% 4.70% 4.75% 6.50% 5.80% Loan assumption CBRE transaction CBRE transaction

CBRE CHICAGO MULTIFAMILY I 8 CLICK HERE TO CHICAGO SUBURBAN DEVELOPMENT PIPELINE DOWNLOAD THE FULL REPORT

UNDER LEASE-UP STABILIZED TOTAL AVG PER YEAR CONSTRUCTION

3,828 4,204 13,572 21,288 2,129 UNITS UNITS UNITS UNITS UNITS 15 21 65 101 10 PROPERTIES PROPERTIES PROPERTIES PROPERTIES PROPERTIES

Suburban Chicago - Annual New Supply

Suburban Chicago - Annual New Supply 4,000

3,513 3,500 3,312

3,000 2,925

2,500 2,303 2,086 2,070

2,000 1,813 1,587 Units Delivered 1,500 1,276

1,000

500 403 UNDER CONSTRUCTION

0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LEASING

STABILIZED CBRE CHICAGO MULTIFAMILY I 9 CHICAGO SUBURBAN APARTMENT FUNDAMENTALS

Chicago Suburban Year-Over-Year % Rent Growth Chicago Suburban Year-Over-Year % Occupancy Change 4Q YoY Rent Growth 4Q YoY Occupancy Change

KANE 8% WILL 1.9%

WILL 7% KENDALL 1.4%

KENDALL 6% AURORA-NAPERVILLE 1.0%

COOK SW 4% DUPAGE 0.8%

SUBURBS 3% KANE 0.5%

SUBURBS 0.3% DUPAGE 3%

LAKE 0.2% LAKE 2%

NORTH SHORE 0.0% AURORA-NAPERVILLE 2% COOK NW -0.3% NORTH SHORE 1% COOK SW -0.3% MCHENRY 0% CHICAGO MSA -1.1% CHICAGO MSA 0% MCHENRY -1.2% COOK NW -1% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5%

AxioMetrics, CoStar, CBRE Inc.

CBRE CHICAGO MULTIFAMILY I 10 CHICAGO SUBURBAN SUBMARKET OVERVIEWS

4Q2020 Rents & Occupancy $1,405/mo, $1.57 PSF $1,919/mo, $1.96 PSF $1,375/mo, $1.52 PSF $1,151/mo, $1.36 PSF 0.6% QoQ, 2.8% YoY -0.8% QoQ, -0.2% YoY 0.3% QoQ, 1.1% YoY 0.7% QoQ, 3.3% YoY 95.3% occupancy 93.7% occupancy 95.2% occupancy 96.1% occupancy 0.0% QoQ, 0.3% YoY -0.7% QoQ, 1.4% YoY 0.5% QoQ, 0.5% YoY -0.1% QoQ change, -0.3% YoY

Suburban Market Deliveries Chicago Suburban - SinceNew Supply 2013 Delivered Since 2013

DUPAGE 4,343 McHenry Lake NORTH SHORE 4,120

$1,212/mo, $1.30 PSF I 95.4% $1,298/mo, $1.44 PSF I 96.4% COOK NW 2,966

Kane Northshore SOUTH COOK 2,158 $1,403/mo, $1.53 PSF I 95.3% $2,126/mo, $2.31 PSF I 93.5% KANE 2,034 WILL 1,920

Aurora/Naperville Cook NW AURORA-NAPERVILLE 1,059 $1,478/mo, $1.57 PSF I 94.9% $1,417/mo, $1.58 PSF I 93.4% LAKE 896 Kendall DuPage MCHENRY 471 $1,256/mo, $1.23 PSF I 97.0 % $1,408/mo, $1.55 PSF I 95.4% KENDALL 456

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Will Cook SW $1,318/mo, $1.51 PSF I 96.9% $1,198/mo, $1.47 PSF I 96.2% 15 Assets Under Construction Totaling 3,828 Units Construction in Suburban Chicago Has Averaged 2,129 Annually Since 2013 Across 101 Projects

CBRE CHICAGO MULTIFAMILY I 11 CHICAGO SUBURBAN SALES COMPARABLES

Aventine at Ashton Farmington Lakes Timber Lake Hunter's Glen Kelmscott Park Elmhurst Terrace Oakhurst North Condominiums Neighborhood Aurora Oswego Arlington Heights West Chicago Aurora Lake Forest Elmhurst Year Built 1999 2002 1989/2015 1973 1991 2018 1947 Units 464 304 185 576 320 111 315 Avg. Size 1, 012 924 813 787 886 1,220 628 Building Class A- A- B+ C B A C Sale Price $86,000,000 $58,500,000 $25,428,750 $50,250,000 $47,950,000 $53,750,000 $41,200,000 Date Jan-21 Dec-20 Dec-20 Dec-20 Oct-20 Jun-20 Jan-20 Seller JVM DRA / Marquette Oak Capital Investments Northridge Holdings L3C Focus Horizon Buyer Hayman New York Life Randolph Street Realty Turner Impact Capital Redwood / Heitman Intercontinental Cohen Esrey $/Unit $185,345 $192,434 $137,453 $87, 24 0 $149,844 $484,234 $130,794 $/SF $183 $208 $169 $111 $169 $397 $208 Cap Rate 4.75% 5.00% 5.40% 4.60% 5.00% 4.85% 5.30%

CBRE transaction CBRE transaction CBRE transaction CBRE transaction

CBRE CHICAGO MULTIFAMILY I 12 CHICAGO SUBURBAN SALES COMPARABLES

Foxboro Atworth Alara at Uptown La Deer Park Railway Plaza Maple & Main Apartments at Mellody Farm Summerfield Grange Crossing Neighborhood Wheeling Naperville Downers Grove Vernon Hills Aurora La Grange Deer Park Year Built 1975 2000 2 018 2 018 2001 2017 2018 Units 402 417 115 260 368 254 236 Avg. Size 775 1,057 867 953 1,163 962 1,252 Building Class C B A A B A A Sale Price $54,000,000 $96,125,000 $44,000,000 $88,000,000 $78,150,000 $91,000,000 $90,500,000 Date Jan-20 Dec-19 Dec-19 Dec-19 Nov-19 Oct-19 Oct-19 High Street Residential / Seller PCRM Clarion Partners Focus / Atlantic / AEW Connor Group Opus / Carlyle REVA Development Carlyle Buyer Marquette Cantor / BH JVM PASSCO BH Equities JVM Redwood / State Street $/Unit $134,328 $230,516 $382,609 $338,462 $212,364 $358,268 $383,475 $/SF $173 $218 $421 $355 $183 $372 $306 Cap Rate 5.50% 4.80% 5.00% 4.85% 5.11% 5.05% 5.10% CBRE transaction CBRE transaction

CBRE CHICAGO MULTIFAMILY I 13 CHICAGO MSA 2020 HIGHLIGHTS

2020 Sales Volume YoY % Growth

Chicago MSA $1,672,185,993 -53.2%

Suburbs $ 5 5 0 , 717, 0 7 7 -69.7% CHICAGO MSA VS. TOP 25 US MARKETS City of Chicago $1,121,468,915 -36.1%

Chicago - CBD $556,148,483 -49.3% CHICAGO US MARKETS Chicago MSA ChicagoSales MSAVolume Sales YoY Through Volume 4Q YoY $3,500

$3,000

$2,500 53.2% YOY 28.1% YOY

$2,000 Total 2020 Sales Volume Total 2020 Sales Volume

MILLIONS $1,500

$1,000

$500 8.0% YOY 27. 4% YOY $- Total Transactions Total Transactions Q2015 Q2016 Q2017 Q2018 Q2019 Q2020

Chicago MSA Chicago - CBD City of Chicago Suburbs

SOURCE - REAL CAPITAL ANALYTICS

CBRE CHICAGO MULTIFAMILY I 14 CHICAGO MARKET REPORTS & UPDATES

CBRE'S NW COOK PROPERTY TAX REPORT REAL ESTATE STRATEGY RESET ASSESSOR’S OFFICE RELEASES COMPREHENSIVE REPORT ON NORTH SUBURBAN COOK COUNTY

In September 2020, the Task Force issued a draft Inclusionary Housing Report, which makes several recommendations on a future rewrite of the ARO to improve its efficacy in creating new units for affordable housing across the city.

CHICAGO INCLUSIONARY HOUSING TASK FORCE STAFF REPORT

CBRE CHICAGO MULTIFAMILY I 15 JOHN JAEGER DAN COHEN JUSTIN PUPPI EXECUTIVE VICE PRESIDENT EXECUTIVE VICE PRESIDENT SENIOR ASSOCIATE +1 312 935 1035 +1 312 935 1427 +1 312 861 7839 [email protected] [email protected] [email protected]

NISHA MISHRA TRICIA CAROLAN AMANDA JOHNSON ASSOCIATE OPERATIONS MANAGER GRAPHIC DESIGNER + CSC +1 312 935 1952 +1 312 935 1419 1+ 312 540 4666 [email protected] [email protected] [email protected]

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