Apartment Insider AMENITIES ISSUE! South Beach Apartments Grand Opening & a survey of new multifamily property amenities around town.

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1 Apartment Insider LAS VEGAS MULTIFAMILY MARKET REPORT JULY 2017 ISSUE AMENITIES ISSUE! South Beach Apartments Grand Opening & a survey of new multifamily property amenities around town.

2 JULY Apartment Market Performance Market Indicators / 5.52% MONTHLY CAP RATE / / 6 Major Sales OVER THE PAST MONTH 43 Major Sales YEAR TO DATE / $917 AVERAGE RENT / $161,860 AVG PRICE/UNIT Notable July Multifamily Sales Property Name Units Built Class Price Elysian West A+ $106,500,000 Mountain Gate & Trails A $82,500,000 Palms at Peccole Ranch B+ $62,000,000 Sterling Court B $24,000,000 Sunrise Springs B $15,600,000 Veritas A $76,500,000 Total/Averages 2268 $367,100,000 CAP RATES RENT GROWTH LOAN RATE A 5.17% 10-YR 30 AMORT 80%LTV up.42% from last month FREDDIE MAC 4.16%- 4.36% B 5.69% FANNIE MAY 4.38%- 4.58% C 6.1% OCCUPANCY RATE LIFE COMPANIES 3.79%- 4.49% D 7.4% down.04% percentage points vs. last month 221 (d)4 Construction 4.20% New Listing 145 Units Huge Rental Upside Offered Below Replacement Cost Make an offer today! Call Download Operating Statements at SantaFe.apartmentsales.vegas Call for additional details

3 Millennial Draw TRENDING AMENITIES In a recent survey of newly constructed communities, these are the most common amenities being offered across the valley. PET-CENTRIC FREE WI-FI AERIAL PHOTOS 4K VIDEO 3-D MODELING Free to apartment owners! or info@apartmentsales.vegas History tends to repeats itself, and Las Vegas has gone through several stages in the past years. Back in the early 70 s, Vegas catered to the high-rollers who gambled for free diners, free shows, free drinks, and free parking. Then in the 80 s Vegas tempted families with big buffets and kid-friendly attractions. The 90 s brought a rekindled interest in drawing the whales (big spenders) back to the tables, and the 2000 s were focused on family-centric shows and shopping. So, what happens when a cycle DOESN T repeat? Today s Vegas is now poised to cater to Millennial; born between the late 1980s and the early 2000s, the Millennials are turning 21 and Las Vegas is happy to help them celebrate. Even though the average age of a Las Vegas visitor is 44, the Millennials now account for over 1/3 of visitor traffic, and for 27% of visitors, this is their first time in Las Vegas. This new demographic has different demands too, and this is affecting the landscape and offerings of the strip. They are influencing apartment builders here also. The idea of resort-style living is not new, but the way amenities are being used to cajole Millennials into the rental life, might be. With offerings like dog parks, sand volleyball courts, yoga and fitness studios, tanning-beds and arcades, apartment developers are adding new attractions that hope to appeal to the mindset of the next generation of renters. E V AMENITIES CAN BRING IN RETURNS OF 20%+ PER YEAR 68% have dog parks with agility equipment, dog spa s, and/or wash stations. GOING GREEN 36% provide EV charging stations, energy efficient appliances, solar-roofing, and recycling programs. 93% some stream wi-fi throughout the community, while others boast swanky e-lounges, clubhouses or cafe s with complementary wi-fi. RESORT-STYLE POOL & SPA 100% refresh residents with luxury pools and spa s; some even offering sauna s, tanning beds, pool-side cabanas, wet-bars, and recreation decks. LIBRARY 42% have libraries on-site.

4 AMENITY LIFESTYLE The South Beach Resort Apartments are now open. Located at I-215 and Russell Road in Las Vegas. South Beach is owned by a Schulman/Watt entity, and with this project, they look to redefine the newly formed lifestyle class of apartments that have come to Las Vegas. The major selling point of the South Beach is also the name of the class it belongs to. The 220-unit property draws its tenants in with a tropical appeal and contemporary exterior design, while catering to a new tenant base by offering luxurious interiors and unique floor plans.

5 While the curb appeal draws the tenants in, the lifestyle amenities are sure to make them stay. With over 150 activities (indoor & outdoor), the South Beach has it all. Exterior amenities include a resort style pool, cooling misters, 16-foot pool-side television, 20-foot long stone fire pit, a meditation garden, community vegetable gardens, basketball courts, soccer fields, a volley ball court, a dog park & agility course, and even an outdoor gym. Renters also enjoy private refrigerated food lockers with delivery from Amazon, and let s not forget the private Mercedes Sprinter Bus for excursions and fun. The main floor of the luxurious resort hall is the feature of the interior common amenities as it features a lounge, attached veranda, pool tables, ping-pong tables, and a boutique salon. The second floor is dedicated to health, fitness, and fun, as it features a fitness center with a fullsize matrix gym with cardio machines, free weights, steam and sauna rooms. Weight rooms aren t the only work outs available as they offer spin, yoga, Pilates, circuit training, and classes with virtual instructors. In a recent interview with Robert Schulman, he said his philosophy is to create something that does not exist. Schulman wants to sell the experience not just rent an apartment unit. He is working with imagination, insight, and a vision, and he has certainly accomplished this in the South Beach. Year to date, Las Vegas ranked #13 in work force housing rent growth, while ranking #4 in luxury / lifestyle asset rent growth; there s no doubt that a property like this will do well in the market. Photos courtesy of Chris Wessling and South Beach

6 RENT AND VACANCY TRENDS Q2 Market Trends Average Rent $880 $ % $877 $ % RENTS KEEP PEAKING VACANCY STILL DROPPING $ % $741 The Lied Institute Apartment Market Trends Report for the second quarter of 2017 is out. Here s what you need to know... trend AVERAGE MONTHLY RENT BY ZIPCODE recorded strong rent growth 2016 for the valley at 6.4% through the year, but analysts expected to see a decline in Rent growth was projected to reach 4.5% for the year, and vacancy was expected to rise as approximately 4,500 deliveries come to market but that s not what is happening. Q2 saw a 2.5% quarterly increase in asking rents, growth that is on pace to exceed 6% for the second year in a row all while single family & multifamily leasing rates increased over the previous quarter. In fact, rents are now nearly 7% higher than they were during the peak of the market in 2008, and this begs the question Just how deep is the top end of the Vegas rental market?. According to the recent rental trends, it s deeper than expected. Class A deals are leading the market with luxurious floor plans, new construction projects, and over-the-top amenity packages attracting a new type of tenant in Vegas. It s proving that there are enough tenants to go around as vacancy rates have seen a 10-basis point drop year-todate, and job growth is the reason. In fact, Nevada received a top score of 40 on the Gallup 2016 Job Creation Index last year. As the multifamily market grows, our completions as a percentage of total stock is less than half of other markets, at just 2% annually. We expect the current market growth to be sustainable, and we look forward to seeing what the next latest and greatest amenity package includes. NO DATA $1 - $800 $801 - $1000 $ $1200 GREATER THAN $1200

7 LAS VEGAS MULTIFAMILY SALES TEAM CARL SIMS TAYLOR SIMS BRANDY PAPPAS STACEY PARKER Via Austi Pky. Ste. 275 / Las Vegas, Nevada / Fax Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance Cushman & Wakefield Commerce Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, or omissions. As applicable, we make no representation as to the condition of the property (or properties) in question.