RECENT SALES DES MOINES. Research & Forecast Report. Q Multifamily. Accelerating success. Market Survey Results and Forecasts

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Bennett Allison
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Research & Forecast Report DES MOINES Accelerating success. Q4 2016 Multifamily Source: AXIOMetrics. RCA, CoStar Market Survey Results and Forecasts Sequential Effective Rent Per Unit Per Sq.

$987 $1,014 $0.98 $1.00 $1.01 $1.00 $0.99 $0.97 $0.97 $1.00 $1.02 $1.05 $1.08 $1.11 1.0% 2.9% 4.1% 2.0% 1.9% 1.6% 0.3% 2.5% 1.8% 2.9% 3.4% 2.7% 0.2% 2.1% 1.2% -1.4% 95.1% 96.4% 96.1% 94.6% 94.3% 95.

77 $-5.62 $-16.59 $-22.38 $-12.61 $-13.11-1.1% -0.4% -0.6% -1.8% -2.4% -1.

1 Research & Forecast Report DES MOINES Accelerating success. Q Multifamily Source: AXIOMetrics. RCA, CoStar Market Survey Results and Forecasts Sequential Effective Rent Per Unit Per Sq. Ft Effective Rent Growth - Annually Effective Rent Growth - Quarterly Month Annual 1Q16 2Q16 3Q16 4Q16 Dec F 2018F 2019F 2020F $895 $914 $925 $912 $907 $886 $889 $912 $928 $955 $987 $1,014 $0.98 $1.00 $1.01 $1.00 $0.99 $0.97 $0.97 $1.00 $1.02 $1.05 $1.08 $ % 2.9% 4.1% 2.0% 1.9% 1.6% 0.3% 2.5% 1.8% 2.9% 3.4% 2.7% 0.2% 2.1% 1.2% -1.4% 95.1% 96.4% 96.1% 94.6% 94.3% 95.3% 95.0% 95.6% 95.3% 95.7% 95.9% 95.2% Occupancy Change - Annually 0.5% 0.9% 0.6% 0.2% 0.2% -0.1% -0.3% 0.6% -0.2% 0.4% 0.1% -0.7% Occupancy Change - Quarterly 0.8% 1.3% -0.2% -1.6% $ $-3.77 $-5.62 $ $ $ $ % -0.4% -0.6% -1.8% -2.4% -1.4% -1.5% Occupancy Rate Economic Concessions Concession Value As a % of Asking Rent RECENT SALES Date Property Name Address City Units Year Built Price in $ $/Units Oct-16 Riverview Oaks 1420 Pennsylvania Ave Des Moines ,940,000 37,692 Sep-16 Park Forest 2101 E Virginia Des Moines ,550,000 45,486 Sep-16 Watermark at Jordan Creek 6455 Galleria Dr West Des Moines ,500, ,568 Aug-16 University Mills 2124 W 27th St Cedar Falls ,400, ,537 Apr-16 The Flats 3000 University Ave West Des Moines / ,985,000 30,166 Mar-16 The Grove Ames/Copper Beech Ames 1407 S Grand Ave Ames ,934, ,141 Mar-16 Hillcrest Park 9614 University Ave Cedar Falls ,250, ,258

SUPPLY AND DEMAND According to the Bureau of Labor Statistics, job growth in Des Moines-West Des Moines, IA Metro Area was 1.1% in November 2016, reflecting 3,900 jobs added during a 12-month period.

6% from 2018 to 2020, with an average of 5,988 jobs added each year.

2 SUPPLY AND DEMAND According to the Bureau of Labor Statistics, job growth in Des Moines-West Des Moines, IA Metro Area was 1.1% in November 2016, reflecting 3,900 jobs added during a 12-month period. Axiometrics forecasts Des Moines-West Des Moines, IA Metro Area s job growth to be 1.3% in 2017, with 4,425 jobs added. Job growth is expected to average 1.6% from 2018 to 2020, with an average of 5,988 jobs added each year. On the supply side, permits for 2,876 multifamily units were issued in the 12 months ending in November 2016, up 1,066 units from the prior year s sum. In terms of total residential housing, 6,658 units were permitted in the 12 months ending November 2016, an increase of 1,214 units from the prior year s total. Market Employment and Permitting Annual November-16 Annual Forecast Market National F 2018F 2019F 2020F Employment (000s) , Job Gain (000s) , Job Growth (%) 2.6% 2.4% 1.5% 1.1% 1.6% 1.4% 1.3% 1.3% 1.8% 1.8% Total Residential Permitting 4,926 4,414 5,444 6,191 1,087,532 6,952 4,940 3,574 3,819 4,228 Relative Change 18.3% -10.4% 23.3% 26.3% 1.9% 27.7% -28.9% -27.7% 6.9% 10.7% Single Family Units Permitted 3,336 2,955 3,495 3, ,576 Relative Change 18.8% -11.4% 18.3% 4.1% 8.7% Multifamily Units Permitted 1,480 1,398 1,810 2, ,009 Relative Change 10.3% -5.5% 29.5% 84.4% -8.6% Multifamily as a % of Total 30.0% 31.7% 33.2% 44.2% 34.1% Demand/Supply Ratio Job Gain / Total Residential Units Permitted Job Gain / Single Family Units Permitted Job Gain / Multifamily Units Permitted Multifamily Absorption and Supply Annual 4Q16 Annual Forecast Market National F 2018F 2019F 2020F Total Units Absorbed 454 1,730 1,036 2, ,518 2,225 1,596 1, New Supply 1,206 1,330 1,843 1, ,032 1,514 2,014 1, Inventory Growth 1.8% 2.3% 4.1% 2.5% 1.5% 2.5% 4.1% 2.5% 1.2% 1.4% MULTIFAMILY ADVISORY GROUP P. 2

PIPELINE MAP 8 4 33 10 35 26 2536 6 21 22 24 31 11 12 7 2 32 23 9 29 5 14 13 16 3 17 1 18 15 34 19 30 28 20 Key Lease-Up Under Construction

The number of offers received and the end results exceeded our expectations. They have a talented group who was a pleasure to work with.

3 PIPELINE MAP Key Lease-Up Under Construction Proposed We were extremely pleased with the East Region team and its ability to attract an incredible amount of interest in our 3 assets. The number of offers received and the end results exceeded our expectations. They have a talented group who was a pleasure to work with. Their performance stands out against any of the groups we work with nationally. Nels Billsten, Vice President CORE Realty Holding Management MULTIFAMILY ADVISORY GROUP P. 3

4 PIPELINE DETAIL # Name Status Owner Address Market Units 1 Sierra Pointe Apartments Lease Up R&R Realty Marketing Group 7171 Woodland Ave Dallas County Building 2 Lease Up Hubbell Realty Company 550 SW 9th St Downtown Des Moines Autumn Ridge Lease Up Moulton Real Estate 1165 SE Olson Dr Dallas County Windsor Village Condos - Phase I Lease Up Caliber Iowa 1227 NE Windsor Dr Outer Ankeny/Saylorville 96 5 Cadence Apartments - Phase I Lease Up Hubbell Realty Company 6300 Merle Hay Rd Outer West Des Moines/Urb 92 6 City Square Lofts Lease Up Hansen Real Estate Services 210 E Walnut St East Village The Edge at Gray's Landing Lease Up Sherman Associates, Inc. 406 SW 9th St Downtown Des Moines 90 8 Lake Shore Apartments Phase II Under Construction BBK Rentals, Inc. 213 NE Hayes Dr Outer Ankeny/Saylorville Bici Flats Under Construction Ralph Gilotti 1405 SE 1st St McKinley School-Columbus The Verve Under Construction Hubbell Realty Co 700 E 4th St East Village Harbach Lofts Under Construction Encore Iowa Property Management 300 SW 5th St Downtown Des Moines The Nexus at Gray's Landing Under Construction Sherman Associates, Inc. 415 SW 11th St Downtown Des Moines Campus Town Senior Housing Under Construction FBL Financial Group, Inc SW 28th St Outer Ankeny/Saylorville Residences at 62W Under Construction R&R Realty Marketing Group 6000 NW 62nd Ave Outer West Des Moines/Urb BelleMeade Apartments Phase II Under Construction The Richdale Group 204 S 64th St Dallas County Linden Oaks Under Construction Redwood Living 400 Adventureland Dr Outer SE Des Moines N The Cove at Kettlestone Under Construction Caliber Iowa 1272 SE Bishop Dr Dallas County Jordan West Apartments Under Construction Commercial Investment Properties 360 Bridgewood Dr Dallas County Cascades at Jordan Creek - Phase II Under Construction Perry Reid Properties 8350 Cascade Ave Dallas County Fort Des Moines Under Construction Blackbird Investments 6700 Chaffee Rd Outer SE Des Moines S Fourth and Court Under Construction City of Des Moines 420 Court Ave Downtown Des Moines East Village Apartments Under Construction Tim Rypma 219 E Grand Ave East Village Jackson Crossing Under Construction Christensen Development Jackson Ave McKinley School-Columbus The Cove at Prairie Trail Phase II Under Construction Caliber Iowa 1918 SE Lesina Ln Outer Ankeny/Saylorville The Equitable Lofts Under Construction Foutch Brothers 604 Locust St Downtown Des Moines R&T Lofts Under Construction TWG Development 715 Locust St Downtown Des Moines Cadence Apartments - Phase II Under Construction Hubbell Realty Company 6300 Merle Hay Rd Outer West Des Moines/Urb Carman Estates Under Construction Jerry's Homes Inc 2314 E Porter Ave Easter Lake Area Eagle View Lofts Under Construction Hansen Real Estate Services 511 Shaw St East Village Aspire Apartments Phase II Under Construction Signature Commercial Real Estate 6950 Stagecoach Dr Dallas County Havenwood Under Construction One Source Services, LLC SW State St Outer Ankeny/Saylorville Phase II Building 5 Under Construction Hubbell Realty Company 520 SW 9th St Downtown Des Moines Ingersoll Ave Under Construction Roers Investments 2301 Ingersoll Ave Woodland Heights Village of Ponderosa Proposed Evercore Companies LLC Bluestem Circle & Crescen Outer West Des Moines/Urb Grand Ave Proposed Nelson Construction Services 619 Grand Ave Downtown Des Moines The Fifth Proposed Real Estate Division City Of Des Moines Source: CoStar 422 Walnut St Downtown Des Moines 200 Total Units 5,159 MULTIFAMILY ADVISORY GROUP P. 4

WE CAN HELP WHO WE ARE One of the largest and most experienced teams of multifamily specialists in the industry MORE THAN 50 Dedicated Multifamily Professionals & Advisors COVERING OVER 20 STATES

5 WE CAN HELP WHO WE ARE One of the largest and most experienced teams of multifamily specialists in the industry MORE THAN 50 Dedicated Multifamily Professionals & Advisors COVERING OVER 20 STATES Expansive geographic footprint 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. MORE THAN 33,500 Units sold since 2011 $2.3 B Group gross transaction value in since 2011 MULTIFAMILY ADVISORY GROUP P. 5

ASSOCIATE EAST REGION gabe.tovar@colliers.

6 Bob Galamba, CCIM, SIOR SENIOR VICE PRESIDENT EAST REGION DIR Gabe Tovar ASSOCIATE EAST REGION DIR Will Mathews PRINCIPAL EAST REGION INSTITUTIONAL CLIENT GROUP DIR Craig Brown ASSOCIATE EAST REGION DIR AT YOUR SERVICE To learn more, scan this with a QR code reader or visit: MULTIFAMILY ADVISORY GROUP P. 6

2017 Polk County City Election Polling Locations

2017 Polk County City Election Polling Locations City of Des Moines Polling Locations DES MOINES 1/2 DES MOINES 3 DES MOINES 4/22 DES MOINES 5/19 DES MOINES 6 DES MOINES 7 DES MOINES 8/17 DES MOINES 9/12