METRO DENVER. Apartment Market Report Q DENVER MULTIFAMILY Capital Markets Investment Sales

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1 METRO DENVER Apartment Market Report Q DENVER MULTIFAMILY Capital Markets Investment Sales

2 DENVER METRO MARKET OVERVIEW There are a total of 223,000+ units currently in the metro area with another 24,000+ under construction and 25,000+ planned. The highest concentration of new construction is in the Central Business District, Denver Northwest, and Denver Tech Center submarkets. Rent growth continues, but has slowed to 3.5%. Absorption rates continue to outpace historic trends with 2,449 units absorbed this quarter, making it the second best quarter for absorption in 12 years. Overall vacancy decreased this quarter, however vacancy in the Central Business District increased to 6.88% and is the highest in the metro area. Wheat Ridge currently has the lowest vacancy rate at 2.66%. Rent growth continues throughout the metro area but has slowed to 3.5%, still higher than the 20 year average of 3.0% but lower than the 10 year average of 4.52%. Overall trends have remained strong with rent growth, decreased vacancy and increased absorption rates this quarter. Whether you re looking to buy, sell or finance, our multifamily capital professionals understand commercial real estate, capital markets, and the multifamily investor. Please contact JLL for any of your capital markets needs. PAT STUCKER Managing Director pat.stucker@am.jll.com TRAVIS HODGE Associate travis.hodge@am.jll.com RAY WHITE Vice President ray.white@am.jll.com CLAIRE BOSTICK Analyst claire.bostick@am.jll.com FOR MULTIFAMILY FINANCE, PLEASE CONTACT: TABLE OF CONTENTS METRO DENVER Gross Rents Vacancy...5 Supply and Absorption Submarket Gross Rents Submarket Vacancy...8 Submarket Supply...9 Home Ownership Rate Annual Housing Permits Population...12 Employment ALEX BUECKING Managing Director alex.buecking@am.jll.com JLL A Team You Can Trust...14 Unique Set of Skills...15 JLL Multifamily Team...18 JLL Multifamily Real Estate Investment Banking Team...20 JLL PanAm Multifamily Team Global Leader Our Culture and Core Values Why Choose JLL Capital Markets...24 Unmatched Global Reach...26 Multifamily Expertise...28 A Multifamily Powerhouse...29 Multifamily Lending Expertise Multifamily Lending Experience...31 Proven Transaction Record and Expertise

3 Denver s coolness factor has made it a top destination and magnet for Millennials. - The New York Times 3

4 METRO DENVER GROSS RENTS Gross Rents $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Gross Rents Annual Rent Increase % 20 Yr Avg Gross Rent =3.00% 15.00% 13.00% 11.00% 9.00% 7.00% 5.00% 3.00% 1.00% -1.00% -3.00% -5.00% Annual Growth % Note: Figures are for stabilized conventional properties with 50+ units (does not include affordable housing / rent restricted units) Source: Apartment Insights, Axiometrics OVERALL CLASS A CLASS B CLASS C $1,360 $1,959 $1,374 $1, Q3 Gross Rents 2016 Q3 Gross Rents 2016 Q3 Gross Rents 2016 Q3 Gross Rents 3.58% 6.12% 2.69% 6.19% (y-o-y change) (y-o-y change) (y-o-y change) (y-o-y change) 1.12% 0.05% 0.59% 1.91% (last qtr change) (last qtr change) (last qtr change) (last qtr change) 3.58% ANNUAL RENT GROWTH Rent growth continues to remain above the 20 year average but has slowed to 3.58%, which is the lowest annual rent growth pace seen since 3rd quarter of % CLASS C ANNUAL RENT GROWTH Class C product leads the market for annual rent growth with class A product trailing closely behind at 6.12%. 4

5 METRO DENVER VACANCY Vacancy 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Vacancy (%) Annual Change (bps) Base Line for bps = Annual Change (bps) Note: Figures are for stabilized conventional properties with 50+ units (does not include affordable housing / rent restricted units) Source: Apartment Insights OVERALL CLASS A CLASS B CLASS C 5.02% 6.02% 5.16% 3.91% 2016 Q3 Vacancy 2016 Q3 Vacancy 2016 Q3 Vacancy 2016 Q3 Vacancy 84 bps 80 bps 86 bps 43 bps (y-o-y change) (y-o-y change) (y-o-y change) (y-o-y change) 2 bps 44 bps 29 bps 38 bps (last qtr change) (last qtr change) (last qtr change) (last qtr change) 5.02% VACANCY Vacancy rates remain steady with a 4 quarter average of 5.02%, matching vacancy this quarter. Class C vacancy remains lowest at 3.91% demonstrating the continued flight to affordability. WHEAT RIDGE 2.66% VACANCY Wheat Ridge currently has the lowest vacancy of all submarkets in the metro area at 2.66%. There have been only 50 units delivered in Wheat Ridge in the last 4 quarters. 5

6 METRO DENVER SUPPLY AND ABSORPTION Supply Change (y-o-y) Absorption (annual) Units Note: Figures are for conventional properties with 50+ units (does not include affordable housing / rent restricted units) Source: Apartment Insights QUARTERLY 1,359 SUPPLY YEAR OVER YEAR 6,849 (last qtr change) (y-o-y change) QUARTERLY 2,449 ABSORPTION YEAR OVER YEAR 7,820 (quarterly) (annual) 0.71% 3.58% 3.77% 25.08% (% of existing inventory) (% of existing inventory) (compared to Q3 2015) (compared to Q3 2015) ANNUAL ABSORPTION OUTPACING SUPPLY Annual absorption reached 7,820 units this quarter, with only 6,849 units delivered in the last 4 quarters. This means that absorption is still outpacing supply by 971 units. CBD ANNUAL ABSORPTION Central Business District has absorbed 1,028 units in the last 4 quarters while it has delivered 1,097 which has resulted in higher vacancy. 6

7 METRO DENVER SUBMARKET GROSS RENTS $1,850 Gross Rent/Unit Gross Rent/SF $2.20 $2.10 $1,650 $2.00 $1.90 $1,450 $1.80 $1.70 $1,250 $1.60 $1.50 $1,050 $1.40 $1.30 $850 Boulder North Central Business District Washington Park Golden Highlands Ranch / Lone Tree Denver Northwest Denver Tech Center Cherry Creek Capitol Hill Interlocken Boulder South Aurora South Jefferson County Denver South Central Denver International Airport Parker Lakewood Longmont Thornton / Northglenn Castle Rock Brighton Lowry Denver Northeast Aurora Southwest Westminster Arvada Aurora East Denver Southeast Commerce City Denver Southwest Wheat Ridge Aurora Northeast $1.20 Note: Figures are for conventional properties with 50+ units (does not include affordable housing / rent restricted units) Source: Apartment Insights RENT GROWTH (y-o-y change) HIGH 8.98% Denver Southwest LOW 5.00% Denver International Airport RENT GROWTH (last qtr change) HIGH 4.28% Washington Park LOW 1.25% Denver International Airport 8.71% Wheat Ridge 0.00% Westminster 4.13% Denver Northwest 1.11% Lowry 7.71% Cherry Creek 0.53% Highlands Ranch/ 3.84% Aurora Northeast 0.78% Aurora East 7

8 METRO DENVER SUBMARKET VACANCY Vacancy 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Vacancy (%) Annual Change (bps) Base Line for bps = 0 Central Business District Commerce City Boulder North Denver South Central Highlands Ranch / Lone Tree Brighton Denver International Airport Interlocken Lowry Parker Aurora East Thornton / Northglenn Denver Tech Center Cherry Creek Westminster Lakewood Denver Southeast Denver Northeast Aurora South Boulder South Castle Rock Aurora Southwest Aurora Northeast Washington Park Jefferson County Denver Northwest Arvada Longmont Capitol Hill Golden Denver Southwest Wheat Ridge Annual Change (bps) Note: Figures are for stabilized conventional properties with 50+ units (does not include affordable housing / rent restricted units) Source: Apartment Insights INCREASE VACANCY (y-o-y change) DECREASE INCREASE VACANCY (last qtr change) DECREASE 235 bps Interlocken 247 bps Denver Northwest 163 bps Denver South 144 bps Denver Northwest 210 bps Denver South 127 bps Washington Park 145 bps Denver International Airport 106 bps Washington Park 175 bps Parker 62 bps Longmont 106 bps Interlocken 90 bps Wheat Ridge 8

9 METRO DENVER SUBMARKET SUPPLY 6800 Supply Change (y-o-y) Under Construction Absorption (annual) Units Central Business District Denver Northwest Denver Tech Center Denver South Central Interlocken Highlands Ranch / Lone Tree Washington Park Lakewood Parker Denver Northeast Thornton / Northglenn Jefferson County Capitol Hill Cherry Creek Erie / Firestone / Frederick Castle Rock Arvada Aurora South Denver International Airport Westminster Brighton Longmont Wheat Ridge Aurora Southwest Boulder North Boulder South Golden Commerce City Aurora Northeast Denver Southwest Lowry Aurora East Denver Southeast Note: Figures are for conventional properties with 50+ units (does not include affordable housing / rent restricted units). Source: Apartment Insights MOST SUPPLY 1,097 CBD MOST UNDER CONSTRUCTION 5,753 CBD ABSORPTION HIGH 1,028 CBD ABSORPTION LOW 98 Denver Southeast 842 Highlands Ranch / Lone Tree 1,878 Denver Northwest 875 Highlands Ranch/ 43 Aurora East 745 Thornton / 1,804 Denver Tech 359 Cherry Creek 25 Lowry 9

10 METRO DENVER HOME OWNERSHIP RATE 75% Denver CO US Average Annual Homeownership Rate 70% 65% 60% 55% Source: U.S. Census, Q % U.S. Avg. Annual Homeownership Rate 64.2% Colorado Avg. Annual Homeownership Rate 62.9% Denver Avg. Annual Homeownership Rate HOME OWNERSHIP LACK OF STARTER HOMES With a 62.9% annual average homeownership rate, Denver continues to lag behind Colorado and national averages. In July 2016 the median home price in the 11-county Denver Metro Area was $354,000, while the average home price sold was $412,312. This is compared to the U.S. median home price of $284,000 and average U.S. home price of $353,600. (DMAR, 2016 and U.S. Census) 10

11 METRO DENVER ANNUAL HOUSING PERMITS 30,000 Multifamily SF - Attached SF - Detached 30 YR Average = 16,000 25,000 Residential Permits (units) 20,000 15,000 10,000 51,000 unit deficit 5,000 0 Source: U.S. Census, Metro Denver EDC 9, Multifamily Permits Single Family Attached Permits 8, Single Family Detached Permits 16, year Annual Avg. for Total Units Permitted LACK OF HOUSING STILL NOT ENOUGH From 2007 to 2013, permitting in the Metro Denver area saw a substantial decrease, creating a 51,000 housing unit deficit when compared to the 30 year historical average. In 2014 and 2015, permitting rose above the historical average by a combined 5,000 units, only 10% of the deficit that was created in prior years. 11

12 METRO DENVER POPULATION 2.8% Denver CO US Population Growth Rate 2.3% 1.8% 1.3% 0.8% 0.3% Metro Denver Population (000's) 3,300 3,100 2,900 2,700 2,500 2,300 2,100 1,900 1,700 1,500 Source: U.S. Census, Colorado Department of Local Affairs 1.7% 2015 Metro Denver Population Growth 1.7% 2015 Colorado Population Growth 0.8% 2015 U.S. Population Growth Rate 3,062, Metro Denver Population POPULATION GROWTH Over the last 3 decades, Metro Denver has experienced some of the most consistent annual population growth of any metro area. MILLENNIALS In 2015, Metro Denver was home to nearly 860,000 Millennials, which accounts for 28.1% of the total population. 12

13 METRO DENVER EMPLOYMENT 3.2% Metro Denver unemployment rate 3.3% Metro Denver 12-month job growth Industry employment stratification Other services, 55,900, 4% Information services, 46,100, 3% Professional & business services, 263,800, 18% 3.8% Colorado unemployment rate 2.8% Colorado 12-month job growth Manufacturing, 71,000, 5% Financial services, 104,400, 7% Trade, transportation, & utilities, 261,900, 18% 5.0% U.S. unemployment rate 1.7% U.S. 12-month job growth Construction & natural resources & mining, 107,700, 7% Leisure & hospitality services, 171,900, 12% Education & health services, 180,900, 13% Government, 191,600, 13% Total jobs vs. unemployment rate (seasonally adjusted) 1,450,000 1,400,000 1,350,000 1,300,000 1,250,000 1,200,000 1,150,000 1,100,000 1,050,000 unemployment rate total jobs All-time unemployment low: 2.3% All-time employment peak: 1,448,300 jobs 1,000, % 10% 8% 6% 4% 2% 0% Employment statistics: Top 10 largest metro area cities by population Metro Denver cities Population Employment Unemployment number number rate Denver 649, ,991 12, % Aurora 347, ,074 6, % Lakewood 147,369 80,455 2, % Thornton 126,280 69,869 2, % Arvada 110,675 62,672 2, % Westminster 110,194 62,685 2, % Centennial 102,764 59,969 1, % Boulder 101,990 59,868 1, % Broomfield 61,824 34,698 1, % Castle Rock 56,389 29, % Employment statistics: Supersector breakdown (not seasonally adjusted) Job growth / loss by sector (12-month change) Aug-14 Aug-15 Aug-16 Total non-farm 1,363,000 1,409,600 1,455,200 Employment 4.0% 3.4% 3.2% Unemployment rate 4.5% 3.6% 3.2% Metro Denver supersectors Aug-14 Aug-15 Aug-16 Trade, transportation, & utilities 251, % 259, % 261, % Professional & business services 248, % 255, % 263, % Government 179, % 185, % 191, % Education & health services 168, % 176, % 180, % Leisure & hospitality services 155, % 162, % 171, % Financial services 99, % 103, % 104, % Construction & natural resources & mining 94, % 96, % 107, % Manufacturing 66, % 68, % 71, % Other services 53, % 54, % 55, % Information services 45, % 46, % 46, % Sources: JLL Research, Bureau of Labor Statistics, Metro Denver EDC Construction & natural resources & mining 11,400 Leisure & hospitality services 9,600 Professional & business services 8,200 Government 5,800 Education & health services 4,100 Trade, transportation, & utilities 2,400 Manufacturing 2,200 Other services 1,500 Financial services 600 Information services , ,500 5,000 7,500 10,000 12,500 Number of Jobs 13

14 JLL IS A TEAM YOU CAN TRUST Connect with people, properties and sources of capital to buy or sell Denver-area multifamily properties. We re passionate about our business. As a tight-knit team of multifamily professionals, we have repeatedly demonstrated market experience in the successful negotiation of deals across the spectrum of multifamily property types and geographies. Collectively, JLL s Denver Multifamily Team has participated in over $8 billion of successful multifamily transactions on over 90,000 multifamily units. Our team comes from the industry, works for the industry and is, above all, committed to the industry. With deep roots in every facet of the multifamily arena, from sales and financing, to property management, ownership and beyond, we are strongly connected to the capital sources that matter. 14

15 WE HAVE A UNIQUE SET OF SKILLS IN MARKETPLACE We ve been principals. We ve been operators. We ve been developers. We ve been lenders. We ve raised money. WE VE BEEN THE CLIENT. When you select JLL s Denver Multifamily Team as your business partner you get a team with substantial understanding of all phases of the multifamily investment life cycle. This experience allows the JLL Denver Multifamily team to add unique value to every assignment, no matter how large or complicated the opportunity. Whether developing, financing, buying, or selling multifamily real estate, JLL can help you complete your transaction. COLLECTIVELY WE HAVE PARTICIPATED IN OVER $8+ BILLION OF SUCCESSFUL TRANSACTIONS. 15

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17 DENVER NAMED # 1 BEST PLACE TO LIVE 17

18 JLL DENVER MULTIFAMILY TEAM PAT STUCKER Managing Director Pat Stucker joined Jones Lang LaSalle in October 2013 following a successful tenure as an Executive Director within Cushman & Wakefield s Multifamily Advisory Group. Pat is consistently recognized as a top producer for multifamily property sales in Colorado and finished among the top multifamily brokers in the Cushman & Wakefield organization in 2011 and Prior to joining Cushman & Wakefield, Pat served as a Senior Vice President at AIMCO and Managing Member of Stucker & Company. Over the course of Pat s real estate career, he has completed transactions on over 50,000 apartment homes and over $4 billion in total sales. Pat earned national designations including: Certified Commercial Investment Member (CCIM) and the Institute Real Estate Management, Certified Property Manager (CPM). Pat earned his BS from the United States Air Force Academy. RAY WHITE Vice President Ray joined Jones Lang LaSalle from Cushman & Wakefield in September Over the course of his career, Ray has managed the marketing, underwriting, due diligence and closing of over $4 billion in successful institutional apartment transactions. Previously, Ray was an Asset Manager at GMAC Commercial Mortgage where he evaluated financial performance and loan compliance for multifamily, healthcare, retail, industrial and office properties held in a $500 million lending portfolio and managed the operation of a $400 million lending facility for one of the nation s largest multifamily tax credit syndicators. Ray earned his BA from DePaul University and his Masters in Real Estate and JD from University of Denver. 18

19 TRAVIS HODGE Associate Travis Hodge joined JLL in May 2014, and is responsible for the underwriting and analysis of multifamily assets for Denver s Multifamily Team. He is integral to the transactional process including financial analysis and valuation, market analysis, research and due diligence. Prior to joining JLL, Travis spent 5 years as accountant for Specialized Title Services, a boutique commercial real estate firm in Atlanta, GA specializing in title, escrow, closing, legal counsel and tax deferred exchange. In this role, Travis handled the finance, accounting and client investment and relationship duties of the firm. Travis is a participating member of NAIOP s Colorado Chapter, as well as ULI Colorado. He was a recipient of the ULI Etkin Johnson Student Scholarship for the inaugural year of the program where he assisted the leadership of the 2015 Impact Awards Committee. He received his Bachelor of Business Administration in Accounting from the University of Georgia and his Master of Business Administration in Real Estate and Finance from the University of Colorado. CLAIRE BOSTICK Analyst Claire Bostick is an Analyst within JLL s Capital Markets Group. She is responsible for the underwriting and analysis of multifamily assets for Denver s Multifamily Team in Colorado and Utah. Claire is integral to the transactional process and has extensive knowledge of multifamily operations. Prior to joining JLL, Claire spent 7 years with Greystar Real Estate Partners in Atlanta and Denver working on site, and most recently as a Market Analyst for the Client Services group. She has completed over 50 due diligence inspections during her time with Greystar on value add, stabilized and class A product in Colorado and Utah. Her expertise is to assist owners and developers to project income and expenses, as well as, identify opportunities within a market, submarket or specific asset. Claire was recognized for her success at Greystar by receiving the 2012 Above and Beyond Award, 2013 Pillar of Excellence Community Award, 2014 Rainmaker Award, and 2015 Rainmaker Award. During her time at Greystar, Claire formed valuable relationships with industry experts in management, ownership and development. She received her Bachelor of Science in Housing from The University of Georgia. We re all about focus. 19

20 JLL DENVER MULTIFAMILY REIB TEAM BAXTER FAIN Managing Director Baxter Fain is Managing Director of JLL s Capital Markets Real Estate Investment Banking group, working with the team s leadership including Executive Managing Directors Tom Fish, Tom Melody and Mike Melody and partnering with Managing Director George Baker. Baxter secures debt and equity for all property types including office, retail, industrial, hotel, multifamily and self-storage financing. Baxter has been in the commercial real estate finance and development business for over 20 years. Fain comes to JLL from Sunflower Bank where he was a Senior Vice President and Regional President. Prior to that he was a Managing Partner at Trinity One Group. He also spent nearly five years at a global commercial real estate firm. Fain began his career at Goldman Sachs handling loan originations and underwriting for the Midwest region. Baxter graduated from Southern Methodist University in Dallas, Texas with a Bachelor Degree in Finance. ALEX BUECKING Managing Director Alex Buecking is a Managing Director within the JLL Capital Markets Group in Denver. Alex focuses primarily on debt and equity originations for multifamily properties including market rate apartments, affordable housing, student housing, and manufactured housing property types. Alex works closely with the multifamily team s executive management including International Directors Dave Williams, Kevin Filter, and Brian Kelleher. Alex has enjoyed a career in commercial real estate finance for more than 17 years during which time he has originated more than $1.5 billion in commercial real estate loans. Buecking joined JLL from KeyBank Real Estate Capital where he was a Senior Vice President and Multifamily Mortgage Banker. Previously, Alex was a Vice President of Finance for Vantage Companies, a Dallas-based real estate development company. Alex began his career in Dallas, Texas, at Guaranty Federal Bank as a Relationship Manager originating and underwriting commercial real estate loans. Alex graduated from Southern Methodist University in Dallas, Texas, with a Bachelor Degree in Finance and was a member of the SMU Men s Golf Team. CHRISTINA HORAN Production Analyst Christina Horan is a Production Analyst for JLL s Capital Markets Real Estate Investment Banking group, working with Managing Director, Baxter Fain on securing debt and equity for all property types including office, retail, industrial, hotel, multifamily and self-storage financing. Prior to Christina s current role, she worked in the JLL Chicago office on the Americas Corporate Finance team. In this role, she was responsible for the Americas region s monthly and quarterly internal reporting as well as the semi-annual budgeting processes. Christina began her career at Commerce Bank in St. Louis, MO working as a credit analyst in the commercial lending group. Christina graduated cum laude from Miami University in Oxford, Ohio with a Bachelor Degree in Finance. 20

21 JLL PANAM MULTIFAMILY TEAM JLL s most experienced dealmakers, connectors, multifamily capital specialists... DAVID YOUNG Managing Director West JEFF PRICE Managing Director Southwest DAVID WILLIAMS International Director Midwest DAVID GUTTING Managing Director Southeast CHRISTINE ESPENSHADE Managing Director Northeast Specialized team of senior executives with an average of 20 years experience who work directly with local teams to execute your transaction DENVER CAPITAL MARKETS PAT STUCKER Managing Director RAY WHITE Vice President 21

22 A GLOBAL LEADER JLL has become the world s leading integrated real estate and investment management firm by listening and responding to our clients We focus on long-term relationships, not single transactions. Colin Dyer, President and CEO 22

23 OUR CULTURE AND CORE VALUES Serve our clients Support our people Aspire to leadership These values shape our culture. Vision statement To be the chosen expert and advisor for those who own, occupy, use and invest in real estate. Our culture We offer you the culture and work environment where you will have the opportunity to learn, grow and do your best work everyday. Your ability to connect with others will be rewarded, your creativity will be valued and your professional contributions will be recognized. Core services Agency Leasing Capital Markets Construction Corporate Finance and Net Lease Corporate Solutions Debt and Equity Finance Energy and Sustainability Services Integrated Facilities Management Investment Management Investment Sales Lease Administration Mobile Engineering Services Property Management Strategic Consulting Tenant Representation Industry and asset specialties Banking and Financial Services Call Centers Corporate Retail Solutions Data Centers/Mission- Critical Facilities Government Investor Services Project and Development Services Government Occupier Services Healthcare Higher Education Hotels Law Firms Life Sciences Logistics and Industrial Multifamily Nonprofit Office Retail Self Storage 23

24 WHY CHOOSE JLL CAPITAL MARKETS A unified platform focused on results. We re all about focus. We focus on being the best in our business, we focus on our relationships with the world s capital sources, we focus on the trends that make our industry tick but most of all, we focus on our clients. We tailor each service to meet distinct requirements, looking outside the box to the entire lifecycle of assets and tapping into the vast resources we have at our fingertips, seamlessly connecting with our JLL experts and with capital markets worldwide. Using our in-depth local market and global investor knowledge, we focus on your priority capital objectives, delivering best-in-class solutions for clients to maximize the value of their investments. Corporate Finance and Net Lease utilizes a deep knowledge of finance, accounting and legal principles, net lease structuring and markets to help occupiers and net lease property owners optimize transaction economics and realize asset value. Development and Asset Strategy specialists apply creative dispositions to challenging assets to convert them to productive use, and navigate the complexities of land development, including zoning, entitlements and public incentives. Debt and Equity Financing experts devise innovative capitalization strategies and manage debt and equity placements across all asset types. Investment Sales professionals provide geographic and product expertise to facilitate the efficient sale or acquisition of equity interest in investment properties, and to provide property-level value realization strategies and opinions of value. Office Industrial Retail Hotel Multifamily Land Healthcare Self Storage 24

25 COLORADO IS THE 3RD-BEST STATE FOR BUSINESS -CNBC,

26 JLL S INTERNATIONAL CAPITAL GROUP (ICG) OFFERS UNMATCHED GLOBAL REACH THE INTERNATIONAL CAPITAL GROUP JLL established the industry s only group to help globally-oriented clients build international portfolios and relationships over 10 years ago. The ICG is 25+ senior capital markets professionals with C-suite contacts for cross-border opportunities and real estate capital access. The ICG exemplifies how we operate: by leveraging an international reach with a select professional group for a personal experience you won t find elsewhere. These professionals have first-hand knowledge of opportunities and international investor contacts, from institutions and sovereign wealth funds to private ultrahigh net worth families. AMERICAS Steve Collins, WASHINGTON DC Lucy Fletcher, CANADA Rob Hielscher, SAN FRANCISCO Alexandra Bryant, NEW YORK Pat Casey, WASHINGTON DC Roberto Patino, SAO PAOLO GLOBAL Arthur De Haast, CHAIRMAN David Green-Morgan, GLOBAL RESEARCH EMEA Matt Richards, LONDON Caroline Dehe, LONDON 26 CONNECTING CAPITAL EVERYDAY Top real estate advisor to Sovereign Wealth Funds in 2014, independently ranked by Sovereign Wealth Fund Institute SWFI To p globalrealestatebrokerinofficeinvestmentsalesin2014, independently ranked by Real Capital Analytics with $38.8 billion sold,17.3 percent market share and 556 properties sold, the next nearest competitor only sold 268 properties Over$606billionofsales,acquisitionsandfinancetransactions since financial crisis, of which of 40 percent have been cross-border In 2014, $454 million in real estate investment transactions completed every working day around the globe Sold to 2,000+ clients globally since 2010

27 MAKE INTERNATIONAL CONNECTIONS LOCAL TO GLOBAL Connects our clients to unique investment product and capital worldwide Integrated global team supporting local JLL capital markets teams across 53 countries Employ best practices for a coordinated global deal distribution and marketing campaign to local distribution and domestic process Collaborative implementation and consistent service delivery across borders Leverages our proprietary research to provide the most incisive global market intelligence Develops strong buy-side relationships with clients seeking to invest outside their home region MENA Fadi Moussalli, DUBAI ASIA-PACIFIC Alistair Meadows, SINGAPORE Darren Xia, BEIJING Flora Wang, SHANGHAI Kitty Liu, BEIJING Miyeon Lee, SEOUL Simon Storey, SYDNEY 27

28 MULTIFAMILY EXPERTISE Maximize returns on your investment by collaborating with our capital markets experts whether you re looking to buy, sell or finance. Our multifamily capital professionals understand commercial real estate, capital markets, and the multifamily investor. With significant knowledge in investment sales, debt and equity finance and loan servicing, you will find the right opportunities, capital solutions and prompt advice for your multifamily assets. We bring together specialized talent senior executives each with years of direct experience in capital markets, local markets and real estate investment banking. Collectively, we handle multifamily transactions spanning the full spectrum of geographies and property types. Condos Development sites Garden High-rise Land sales Mid-rise Mixed-use Portfolios Seniors housing Student housing Townhomes Capabilities for any stage of the multifamily asset Our team consists of sales and financing professionals who work alongside one another and partner regularly to help you find the right opportunities, capital solutions and prompt advice through one diverse, integrated platform. Tailored strategies for multifamily sales We take on a personal approach to understand a client s disposition and acquisition goals. Understanding the marketable attributes of the asset, we effectively capture a property s unique value and positioning. Founded on industry-leading market analysis, valuation services and investor intelligence, our facilitation of the sale or disposition of investment properties ensures optimum price and certainty of closing. Deep relationships with capital sources As one of the nation s largest providers of debt and equity capital, we partner with a wide array of financial providers, including Fannie Mae, Freddie Mac and HUD/Ginnie Mae to solve your transaction needs. By the numbers $7.5B $5.9B Total U.S. multifamily sales in 2015 Total U.S. multifamily financing in 2015 $16B Loan servicing portfolio $13.4B Total multifamily volume in Multifamily transactions in

29 A MULTIFAMILY POWERHOUSE Committed to your distinct investing and financing requirements, our team consists of sales and financing professionals who partner regularly to provide multi-service delivery to clients. We are highly specialized and deliver solutions through one diverse, integrated platform. Services Acquisition financing Bridge loans Construction financing Equity placement Fannie Mae lending FHA lending Freddie Mac lending International capital sourcing Investment sales Joint venture equity Loan servicing Market analysis and underwriting Mezzanine debt Opinions of value Permanent financing Portfolio structuring support Recapitalization strategies 29

30 MULTIFAMILY LENDING EXPERTISE JLL Capital Markets is one of the nation s largest providers of debt and equity capital. We partner with a wide array of financial providers to connect you to a full range of competitively-priced, reliable mortgage products for the acquisition, refinance or moderate rehabilitation of multifamily communities. In affordable housing we assist developers in structuring transactions through various issuers and local, state and federal government agencies to ensure an optimal structure and smooth closing. In seniors housing we can provide the full spectrum of assets, including age-restricted, independent living, assisted living, memory care, skilled nursing and continuing care retirement communities. In market rate housing we specialize in working within the Fannie Mae, Freddie Mac, and FHA frameworks to quickly design your best financing solution and drive it toward execution with certainty. No matter the complexity of your project, we identify creative financing solutions and can secure the entire capital stack for multifamily assets. Providers CMBS Commercial banks Fannie Mae Freddie Mac HUD/GNMA Life companies Pension funds Specialty finance companies Deep relationships connecting you to capital We have the most experienced financing professionals in the industry who foster and maintain relationships with the full gamut of lending and equity sources. These relationships are longstanding extending three decades with Fannie Mae, Freddie Mac and HUD/Ginnie Mae. Customer-centric loan servicing We offer loan underwriting, asset management and loan servicing capabilities in-house through a group of tenured experts. These functions are maintained in close coordination with your JLL representative, giving you direct access to your loan servicing team and responsiveness in the process. JLL Agency/GSE lending platforms: Agency/GSE Freddie Mac Fannie Mae HUD/Ginnie Mae Total Agency/GSE Freddie Mac Fannie Mae HUD/Ginnie Mae Other Total 2015 loan production $ 1,514 M 957 M 396 M $ 2,867 M Loan servicing portfolio $ 6.9 B 5.3 B 2.3 B 1.5 B $ 16 B $6B U.S. multifamily financing in 2015 $7.5B U.S. multifamily sales 200+ in U.S. multifamily transactions in dedicated multifamily professionals $16B loan servicing portfolio 30

31 MULTIFAMILY LENDING EXPERIENCE JLL Agency/GSE licenses In the fall of 2015, JLL acquired Oak Grove Capital, bringing on board its 120 employees in eight offices. With the Oak Grove Capital acquisition, JLL is now a nationwide lender for all Agency/GSE business, with all disciplines/expertise in-house, and geographic waivers from Freddie Mac are readily available for clients which are active with JLL. Market rate multifamily housing Affordable housing Seniors housing Fannie Mae Fannie Mae Fannie Mae National National National HUD HUD HUD National National National Freddie Mac Freddie Mac Freddie Mac - Florida - Georgia - District of Columbia - Minnesota National National - Maryland - North Dakota - Virginia - South Dakota - Texas - Wisconsin - Geographic waivers available Why use JLL s Agency/GSE lending capabilities The individuals comprising the multifamily lending platform have up to 30 years of experience with HUD and up to 20 years of experience with Freddie Mac and Fannie Mae. This experience, and our significant loan closing volumes, translates into relationships that allow JLL to receive quick attention from the GSEs and HUD, when necessary, regarding underwriting and credit matters. JLL is not simply an Agency/GSE lender, but rather, JLL can fulfill all of your debt and equity capital needs, including construction loans, bridge loans, mezzanine loans. In 2015, JLL closed $2.9 billion of Agency/GSE debt, and another $4.5 billion of other debt and equity placements. JLL services its own Agency/GSE mortgages, with no other domestic, nor offshore, outsourcing entity behind the scene doing the loan servicing. Unlike many competitors, JLL s servicing team is managed within the multifamily and commercial real estate debt team, thus providing ready access for our mortgage bankers and brokers to assist customers with any servicing issues. While a customer will develop relationships inside of our loan servicing team, he may also rely on his direct relationship in JLL to assist. After all, the closing of a loan is not a one-time relationship, but the beginning of a long-term relationship for the life of that loan. JLL Capital Markets prides itself on being a high-touch platform for its clients. Our goal is not be the biggest, but to be the best. 31

32 We are a full-service mortgage banker and equity provider, with loan origination, underwriting, asset management and loan servicing capabilities and specialize in permanent, construction, structured and alternative financing products. 32

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34 PROVEN TRANSACTION RECORD AND EXPERTISE 1 Sold PROMENADE AT HUNTER S GLEN 264 Units in Thornton, CO Sold THE GROVE AT CITY CENTER 420 Units in Aurora, CO Sold RIVERTON ON THE PLATTE 316 Units in Sheridan, CO Sold STERLING UNIVERSITY PEAKS 384 Units in Boulder, CO Sold FALLS AT LAKEWOOD 96 Units in Lakewood, CO

35 6 Sold SANDPIPER 357 Units in Westminster, CO Sold SUNSET PEAK 184 Units in Thornton, CO Sold LEGACY HEIGHTS 418 Units in Denver, CO Sold ONE DARTMOUTH 418 Units in Denver, CO TAMARAC VILLAGE 564 Units in Denver, CO Sold

36 CONTACT: PAT STUCKER Managing Director RAY WHITE Vice President TRAVIS HODGE Associate CLAIRE BOSTICK Analyst FOR MULTIFAMILY FINANCE, PLEASE CONTACT: ALEX BUECKING Managing Director JLL DENVER MULTIFAMILY Visit our website for more information: JLLDENVERMULTIFAMILY.COM Follow us on Twitter for up-to-date market About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit