Date Property Name Address City Units Year Built Price in $ $/Units Tarleton Crossing Apartments

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Research & Forecast Report LEXINGTON Q1 2017 Multifamily Accelerating success. Source: AXIOMetrics.

$830 $851 $876 $910 $936 Per Sq. Ft $0.90 $0.90 $0.89 $0.89 $0.89 $0.86 $0.89 $0.90 $0.93 $0.95 $0.99 $1.02 Effective Rent Growth - Annually 3.1% 2.8% 2.7% 2.0% 2.4% 3.8% 3.3% 1.4% 2.5% 3.0% 3.8% 2.9% Effective Rent Growth - Quarterly 2.

4% Occupancy Change - Quarterly 0.8% 0.3% -0.2% -0.8% Economic Concessions Concession Value $-11.52 $-12.35 $-15.10 $-21.32 $-19.97 $-9.09 $-11.95 As a % of Asking Rent -1.4% -1.5% -1.8% -2.5% -2.

1 Research & Forecast Report LEXINGTON Q Multifamily Accelerating success. Source: AXIOMetrics. RCA, CoStar Market Survey Results and Forecasts Sequential Month Annual 2Q16 3Q16 4Q16 1Q17 Mar F 2018F 2019F 2020F 2021F Effective Rent Per Unit $824 $829 $821 $818 $818 $793 $819 $830 $851 $876 $910 $936 Per Sq. Ft $0.90 $0.90 $0.89 $0.89 $0.89 $0.86 $0.89 $0.90 $0.93 $0.95 $0.99 $1.02 Effective Rent Growth - Annually 3.1% 2.8% 2.7% 2.0% 2.4% 3.8% 3.3% 1.4% 2.5% 3.0% 3.8% 2.9% Effective Rent Growth - Quarterly 2.8% 0.7% -0.9% -0.5% Occupancy Rate 94.3% 94.5% 94.3% 93.5% 93.4% 92.8% 94.1% 94.1% 93.8% 94.1% 94.5% 94.1% Occupancy Change - Annually 1.6% 0.9% 1.0% 0.1% 0.0% 0.6% 1.4% 0.0% -0.4% 0.3% 0.4% -0.4% Occupancy Change - Quarterly 0.8% 0.3% -0.2% -0.8% Economic Concessions Concession Value $ $ $ $ $ $-9.09 $ As a % of Asking Rent -1.4% -1.5% -1.8% -2.5% -2.4% -1.1% -1.4% RECENT SALES Date Property Name Address City Units Year Built Price in $ $/Units Apr-17 Tarleton Crossing Apartments 3640 Bold Bidder Lexington-Fayette / ,165, ,782 Mar-17 The Creeks on Tates Creek 3565 Tates Creek Rd Lexington-Fayette / ,650, ,385 Mar-17 Downing Place Townhouses 3395 Spangler Dr Lexington-Fayette ,900, ,114 Feb-17 Wyndamere Apts Collins Path Georgetown ,500, ,143 Jan-17 Hollow Creek 500 Hollow Creek Rd Lexington-Fayette ,191, ,569

SUPPLY AND DEMAND According to the Bureau of Labor Statistics, job growth in Lexington-Fayette, KY Metro Area was 2.3% in February 2017, reflecting 6,200 jobs added during a 12-month period.

Job growth is expected to average 1.5% from 2019 to 2021, with an average of 4,282 jobs added each year.

2 SUPPLY AND DEMAND According to the Bureau of Labor Statistics, job growth in Lexington-Fayette, KY Metro Area was 2.3% in February 2017, reflecting 6,200 jobs added during a 12-month period. The metro job growth figure was above the national number of 1.7%. Axiometrics forecasts Lexington-Fayette, KY Metro Area s job growth to be 1.4% in 2018, with 3,828 jobs added. Job growth is expected to average 1.5% from 2019 to 2021, with an average of 4,282 jobs added each year. On the supply side, permits for 1,031 multifamily units were issued in the 12 months ending in February 2017, down -169 units from the prior year s sum. In terms of total residential housing, 2,601 units were permitted in the 12 months ending February 2017, a decrease of -131 units from the prior year s total. Market Employment and Permitting Annual February-17 Annual Forecast Market National 2017F 2018F 2019F 2020F 2021F Employment (000s) , Job Gain (000s) , Job Growth (%) 2.9% 2.7% 1.9% 2.3% 1.7% 1.4% 1.4% 1.5% 1.7% 1.3% Total Residential Permitting 1,580 2,206 2,732 2,438 1,101,437 3,222 4,343 3,208 2,701 3,020 Relative Change -2.0% 39.6% 23.8% 9.2% 0.3% 17.9% 34.8% -26.1% -15.8% 11.8% Single Family Units Permitted 1,317 1,381 1,480 1, ,275 Relative Change 0.2% 4.9% 7.2% 9.0% 9.0% Multifamily Units Permitted , ,649 Relative Change -15.7% 300.5% 54.4% 9.0% -12.8% Multifamily as a % of Total 12.3% 35.2% 43.9% 40.6% 33.5% 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 1Q16 Annual Forecast Market National 2017F 2018F 2019F 2020F 2021F Total Units Absorbed , , New Supply , Inventory Growth 0.5% 0.9% 1.8% 1.8% 1.4% 2.0% 2.1% 1.6% 1.1% 1.4% MULTIFAMILY ADVISORY GROUP P. 2

IDENTIFIED SUPPLY As of April 16, 2017, Axiometrics has identified 819 apartment units scheduled for delivery in 2017, of which, 206 have been delivered.

96 per square foot. Effective rent has averaged $927, or $0.93 per square foot, resulting in an average concession value of $-33.50.

89 per square foot, in 1Q17. Concessions for existing properties averaged $-21.32.

3 IDENTIFIED SUPPLY As of April 16, 2017, Axiometrics has identified 819 apartment units scheduled for delivery in 2017, of which, 206 have been delivered. As a comparison, there were 476 apartment units delivered in Properties delivered to the market in the last 12 months have achieved an average asking rent of $961 per unit, or $0.96 per square foot. Effective rent has averaged $927, or $0.93 per square foot, resulting in an average concession value of $ As a comparison, existing properties in the market had an average asking rent of $839 per unit ($0.91 per square foot) and an average effective rent of $818 per unit, or $0.89 per square foot, in 1Q17. Concessions for existing properties averaged $ Submarket Delivery Schedule Pipeline Delivery Schedule Pipeline Lease Up Trend Units Absorbed Asking Rent Effective Rent Top Submarkets Total Totals PPM Per Unit PSF Per Unit PSF East Fayette County $1,176 $1.18 $1,078 $1.08 Scott County $932 $0.95 $922 $0.94 West Fayette County $1,043 $1.02 $1,017 $0.99 Other $910 $0.94 $874 $0.91 Lexington-Fayette, KY , $976 $0.98 $942 $0.95 *Based on 2016 deliveries *Trend based on a trailing 12 month period MULTIFAMILY ADVISORY GROUP P. 3

PIPELINE # Name Status Owner Address Market Units 1 The Avenue Lease Up VITA Property Management Group 801 W Brannon Rd Jessamine County 240 2 WaterStone at Hamburg Lease Up Miller-Valentine Group

4 PIPELINE # Name Status Owner Address Market Units 1 The Avenue Lease Up VITA Property Management Group 801 W Brannon Rd Jessamine County WaterStone at Hamburg Lease Up Miller-Valentine Group 2785 Polo Club Blvd East Fayette County 52 3 The Henry at Fritz Farm Lease Up Bayer Properties 4100 Nicholasville Rd Outer Southeast Lexington Blackburn Ave Proposed Cowgill Properties, Inc. 341 Blackburn Ave North Upper Street MF Emerald Twenty Four Phase II Under Construction Ball Homes 1024 Greendale Rd Outer Northeast Fayette The BLVD at Hays - Phase II Under Construction Ball Homes 842 Hays Blvd Outer Southeast Fayette The Henry at Fritz Farm- P II Under Construction Bayer Properties 4100 Nicholasville Rd Outer Southeast Lexington University Flats Under Construction Commonwealth Of Kentucky - University Of Kentucky Source: CoStar 1160 University Dr Kenwick 139 Total Units 1, Key Lease-Up Under Construction Proposed MULTIFAMILY ADVISORY GROUP P. 4

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5 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 STATES 20 Expansive geographic footprint MORE THAN 33,500 Units sold since 2011 WE CAN HELP 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.

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RECENT SALES. HARTFORD Q Multifamily. Research & Forecast Report. Accelerating success.

RECENT SALES. HARTFORD Q Multifamily. Research & Forecast Report. Accelerating success. Research & Forecast Report HARTFORD Q1 2017 Multifamily Accelerating success. Source: AXIOMetrics. RCA, CoStar Market Survey Results and Forecasts Sequential Month Annual 2Q16 3Q16 4Q16 1Q17 Mar-17 2015