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

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Scarlett Shaw
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Research & Forecast Report DES MOINES Accelerating success. Q3 2016 Multifamily Source: AXIOMetrics.

$1,078 Per Sq. Ft $1.01 $1.01 $1.03 $1.04 $1.01 $1.00 $1.00 $1.03 $1.06 $1.10 $1.13 $1.16 Effective Rent Growth - Annually 0.1% 1.0% 2.9% 4.1% 3.5% 1.6% 0.3% 2.

1% -0.3% 0.9% 0.4% 0.1% -0.3% -0.7% Occupancy Change - Annually -1.1% 0.5% 0.9% 0.6% Occupancy Change - Quarterly -1.2% 0.8% 1.3% -0.2% $-14.51 $-10.56 $-3.77 $-5.62 $-9.39 $-12.61 $-13.11-1.6% -1.

1 Research & Forecast Report DES MOINES Accelerating success. Q Multifamily Source: AXIOMetrics. RCA, CoStar Market Survey Results and Forecasts Sequential Month Annual 4Q15 1Q16 2Q16 3Q16 Sep F 2017F 2018F 2019F 2020F $930 $932 $951 $963 $934 $922 $925 $951 $982 $1,017 $1,050 $1,078 Per Sq. Ft $1.01 $1.01 $1.03 $1.04 $1.01 $1.00 $1.00 $1.03 $1.06 $1.10 $1.13 $1.16 Effective Rent Growth - Annually 0.1% 1.0% 2.9% 4.1% 3.5% 1.6% 0.3% 2.8% 3.3% 3.5% 3.3% 2.6% Effective Rent Per Unit Effective Rent Growth - Quarterly Occupancy Rate 0.6% 0.2% 2.1% 1.2% 94.2% 94.9% 96.2% 95.9% 95.6% 95.1% 94.8% 95.7% 96.0% 96.2% 95.9% 95.2% 0.2% -0.1% -0.3% 0.9% 0.4% 0.1% -0.3% -0.7% Occupancy Change - Annually -1.1% 0.5% 0.9% 0.6% Occupancy Change - Quarterly -1.2% 0.8% 1.3% -0.2% $ $ $-3.77 $-5.62 $-9.39 $ $ % -1.1% -0.4% -0.6% -1.0% -1.4% -1.5% Economic Concessions Concession Value As a % of Asking Rent RECENT SALES Date Property Name Address City Units Year Built Price in $ Sep-16 Park Forest 2101 E Virginia Des Moines ,550,000 $/Units 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 Nov-15 Metro Lofts 100 2nd Ave Des Moines ,500,000 31,532 Nov-15 South Duff Community Park Billy Sunday Rd Ames ,300, ,914 Nov-15 Ashbrooke Apts 317 NE Delaware Ave Ankeny ,400,000 63,265 Oct-15 Triple Crown 1103 Greenway Ct Altoona ,109,000 54,066 Oct-15 Hillcrest 7201 SE 5th St Des Moines ,250,000 47,222

SUPPLY AND DEMAND According to the Bureau of Labor Statistics, job growth in Des Moines-West Des Moines, IA Metro Area was 1.7% in August 2016, reflecting 6,100 jobs added during a 12-month period.

Job growth is expected to average 1.6% 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 1.7% in August 2016, reflecting 6,100 jobs added during a 12-month period. The metro job growth figure was at the national number. 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 3,161 multifamily units were issued in the 12 months ending in August 2016, up 1,351 units from the prior year s sum. In terms of total residential housing, 6,675 units were permitted in the 12 months ending August 2016, an increase of 1,231 units from the prior year s total. Market Employment and Permitting Annual August-16 Annual Forecast Market National 2016F 2017F 2018F 2019F 2020F Employment (000s) , Job Gain (000s) , Job Growth (%) 2.6% 2.4% 1.5% 1.7% 1.7% 1.6% 1.2% 1.3% 1.8% 1.8% Total Residential Permitting 4,926 4,414 5,444 5,717 1,056,185 6,242 4,451 3,574 3,819 4,228 Relative Change 18.3% -10.4% 23.3% 34.5% 2.3% 14.7% -28.7% -19.7% 6.9% 10.7% Single Family Units Permitted 3,336 2,955 3,495 3, ,713 Relative Change 18.8% -11.4% 18.3% -4.2% 9.1% Multifamily Units Permitted 1,480 1,398 1,810 2, ,231 Relative Change 10.3% -5.5% 29.5% 155.8% -8.2% Multifamily as a % of Total 30.0% 31.7% 33.2% 44.2% 34.9% 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 3Q16 Annual Forecast Market National 2016F 2017F 2018F 2019F 2020F Total Units Absorbed 454 1,730 1,242 1, ,353 2,556 1, New Supply 1,206 1,330 1,843 1, ,859 2,075 1, Inventory Growth 1.8% 2.3% 4.1% 2.7% 1.4% 2.8% 4.9% 1.7% 1.3% 1.4% MULTIFAMILY ADVISORY GROUP P. 2

PIPELINE MAP 32 30 20 24 10 23 28 8 27 9 14 25 12 3 17 11 13 22 15 4 21 19 16 31 18 7 6 2 1 29 5 26 We were extremely pleased with the

The number of offers received and the end results exceeded our expectations.

3 PIPELINE MAP 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 Aspire Apartments Phase II Under Construction Signature Commercial RE Ghroup 6950 Stagecoach Dr Dallas County BelleMeade Apartments Phase II Under Construction The Richdale Group 204 S 64th St Dallas County Bici Flats Under Construction Ralph Gilotti 1405 SE 1st St McKinley School-Columbus Cadence Apartments Under Construction Hubbell Realty Company 6320 Merle Hay Rd Outer West Des Moines/ Urbandale 5 Carman Estates Under Construction Jerry's Homes Inc 2314 E Porter Ave Easter Lake Area 96 6 Cascades at Jordan Creek - Phase II Under Construction Perry Reid Properties 8350 Cascade Ave Dallas County The Cove at Kettlestone Under Construction Caliber 1272 SE Bishop Dr Dallas County Cityville on 9th Street - Phase II Under Construction Hubbell Realty Company 520 SW 9th St Downtown Des Moines Confluence On 3rd Under Construction Roers Investments 103 SW 3rd St Downtown Des Moines Fourth and Court Apartments Under Construction Vine Ronald 420 Court Ave Downtown Des Moines Eagle View Lofts Under Construction Hansen Real Estate Services 511 Shaw St East Village East Village Apartments Under Construction Tim Rypma 219 E Grand Ave East Village Fieldstream Apartments Phase II Under Construction Edward Rose & Sons NW Brookstone Ln 195 Outer Ankeny/Saylorville Harbach Lofts Under Construction Harbach Building Llc 300 SW 5th St Downtown Des Moines Havenwood Under Construction Redwood Living 1250 SW State St Outer Ankeny/Saylorville Ironwood - Phase II Under Construction Haverkamp Properties st Ave S Outer SE Des Moines N Jackson Crossing Under Construction Neighborhood Development Corporation 18 Jordan West Apartments Under Construction Commercial Investment Properties Jackson Ave McKinley School-Columbus Bridgewood Dr Dallas County Linden Oaks Under Construction Redwood Living 400 Adventureland Dr Outer SE Des Moines N R&T Lofts Under Construction TWG Development 715 Locust St Downtown Des Moines Residences at 62W Under Construction R&R Realty Marketing Group 6000 NW 62nd Ave Outer West Des Moines/ Urbandale 22 The Cove at Prairie Trail Phase II Under Construction Caliber 1918 SE Lesina Ln Outer Ankeny/Saylorville The Edge at Gray's Landing Under Construction Sherman Associates, Inc. 406 SW 9th St Downtown Des Moines The Equitable Lofts Under Construction Foutch Brothers 604 Locust St Downtown Des Moines The Verve Under Construction Principal Mutl Life Ins Co 700 E 4th St East Village Fort Des Moines Under Construction Blackbird Investments 6700 Chaffee Rd Outer SE Des Moines S Fourth and Court Proposed City of Des Moines 4th And Court Avenues Downtown Des Moines The Nexus at Gray's Landing Proposed Sherman Associates, Inc. 415 SW 11th St Downtown Des Moines Village of Ponderosa Proposed Evercore Companies LLC Bluestem Circle & Crescen Outer West Des Moines/ Urbandale Source: CoStar Grand Ave Proposed Nelson Construction Services 619 Grand Ave Downtown Des Moines Waveland Park Proposed Hubbell Realty Company th St Waveland Park Ingersoll Ave Proposed Roers Investments 2301 Ingersoll Ave Woodland Heights Total Units 4,834 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 30,000 Units sold since 2011 $2.0 B Group gross transaction value in since 2011 MULTIFAMILY ADVISORY GROUP P. 5

com DIR +1 404 978 2336 AT YOUR SERVICE To

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 Brooks Colquitt ASSOCIATE EAST REGION 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