BOWMANVILLE. East. Gwillimbury. Whitchurch- Stouffville. Markham

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1 Ajax BOWMANVILLE THE DRIVE TO AFFORDABILITY Bradford West Gwillimbury East Gwillimbury Georgina Brock N Caledon Brampton Mississauga King Vaughan Newmarket Aurora Richmond Hill Whitchurch- Stouffville Markham CITY OF TORONTO Uxbridge Pickering LAKE ONTARIO Whitby Scugog Oshawa Clarington Bowmanville lle CLARINGTON IS EXPERIENCING A NEW HOME SALES BOOM There is less than six months of supply in the market with recent transaction activity nearly twice the long-run average. Prices continue to rise and are currently approaching $500,000 for a new single-detached house for the first time.

2 CLARINGTON LOW-RISE NEW HOME MARKET CLARINGTON SALES PRICES & TRANSACTIONS UP. SUPPLY DOWN. SALES VOLUMES RISING Over the past 12 months, there have been 1,078 new low-rise home sales (period ending June ). The area continues to experience elevated residential housing demand. UNSOLD INVENTORY DECLINING Builder/developer unsold supply is down 17% from year-end (JUNE 30, 2016) Source: Altus Data Solutions

3 THE PROJECT King St W Nash Road Walmart Supercentre Knox Christian School Regional 57 Rd Future Bowmanville GO Station Longworth Ave Garnet B. Rickard Recreation Complex Cineplex Odeon Clarington Place St. Stephen s Secondary School Bowmanville High School King St E Liberty St N Consession St E Bowmanville Zoo THE PROJECT A single-family housing development located in the Bowmanville area within the Municipality of Clarington. The community will be comprised Bloor St of approximately 190 homes, split between townhouses and single-detached homes. Baseline Rd W Bowmanville Harbour Convervation Area Lake Ontario THE PLAN The plan for this proposed subdivision is to build 106 single-detached homes on 40 lots with an average size of 2,400 sf, priced from the high $500s. The remainder of the project plan is to build 84 townhouses with lots offering 20 to 23 of frontage. The majority of these homes will range in size from 1,500 to 1,800 sf. Prices are expected to start from about $365,000. THE SITE The approximately 27-acre site is an assembly of three properties, situated on the west side of Regional Road 57, south of Nash Road, in the Brookhill neighbourhood north of Highway 401 in Durham Region. ENTITLEMENT The provincial and regional plans for this land call for residential uses. The current municipal official plan calls for future residential. There is currently a secondary plan process taking place that, with the right approvals, will allow for further development applications such as a Plan of Subdivision. PROVINCIAL GROWTH PLAN DURHAM REGION OFFICIAL PLAN CLARINGTON OFFICIAL PLAN ZONING DRAFT PLAN APPROVAL BUILDING PERMIT Residential Uses Permitted Residential Uses Permitted Residential Uses Permitted Agricultural Residential To Be Acquired To Be Acquired

4 THE MARKET PROJECT OUTLOOK As the communities to the west of Clarington continue to be built-up and experience price growth, it is expected that Clarington will see an increase in new home sales. The product type and pricing planned by Tercot, Cityzen and Fortress is in line with the current market. With these assumptions in place, it is expected that this community will be sold out in less than 2.5 years post-launch under current market conditions. THE CLARINGTON HOUSING MARKET The Clarington market has completed approximately 600 new homes per year on average, for the last 5 years is on track to complete a similar number of homes. Typically 80% of completions in the municipality are single-detached homes. AVERAGE NEW HOUSE PRICES IN CLARINGTON SINGLE-DETACHED HOUSES TOWNHOUSES Avg price $635, lot frontage 2,500 sf / $255 psf Avg price $480, to 22 lot frontage 1,700 sf / $280 psf PRICE Average prices for newly completed and sold singles increased 7%, 4%, and 9% respectively between 2013 and 2015, and 2016 prices year-to-date are up 10% over the 2015 average value. The average and median single-detached new home price was approximately $495,000 during the first seven months of $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 Average & Median Price of Absorbed Single & Semi-Detached Houses Municipality of Clarington: 2010 to 2015 (Annual), 2016 YTD MEDIAN AVERAGE $360,214 $355,118 $370,093 $396, YTD Source: CMHC $410,810 $449,441 $494,543

5 THE DEVELOPERS The development team currently has three similar projects under development, two in Nobleton and one in East Gwillimbury. Similar to Bowmanville, the projects are located in suburban areas with plans for future growth where the municipality is working to update its secondary plan to match the land use designated in senior plans. Tercot Group is a multi-disciplined real estate development company with over 30 years of experience in Toronto and GTA residential, commercial and industrial markets. Dedicated to building progressive neighbourhoods and connecting communities, Tercot puts quality first with a goal to design modern, innovative and superior structures that add lasting value to the community. Tercot.com Cityzen Development Group is a leader in the real estate development industry in the GTA. With deep knowledge and experience in construction and development management, Cityzen has managed to develop some very prestigious projects. These landmarks include L Tower, Pier 27 and London on the Esplanade in downtown Toronto, Aria Condominiums in North York, Absolute Condominiums in Mississauga, The Essence on Kingsway, The Hemingway at Edwards Gardens, The Shores in Oakville and many more. Cityzen.typepad.com Fortress is a diversified development company that focuses on residential housing, ownership commercial, mixed-use retail, and the strategic repositioning of real estate projects. Fortress has been involved in over 70 projects, including rental apartments, high-rise condominiums, hotel, office space, big box retail, residential conversions, estate lot single-detached communities, infill developments, stacked townhouses, ground-floor retail and more. Fortressrealdevelopments.com

6 @FortressRDI FortressRDI Issued: October 13, 2016