Investors: Make Your Most Profitable Decisions Now!

Winter 2008/ Spring 2009 Creating Value in Investment Real Estate Brokerage and Management for Apartment Investments Portland, Oregon Investors: Make Your Most Profitable Decisions Now! Real estate investors throughout the US and the Pacific NW have been faced with so many changing conditions, it is a wonder anyone can stay focused. Let s see...anyone listen to the nightly news or the daily business report? So much negative news about the economy, unavailability of lending due to the banking problems, subprime mortgages, derivatives, AIG, the government stimulus plan, the lack of consumer demand, job layoffs, downsizing of many companies and whole industries (GM, Chrysler and the auto industry as a whole), China wondering if our bonds are safe, and finally, the potential future burden of debt this generation is leaving our children and grandchildren. Where does it all end? We all know the stock market is 50% of it s high of about a year ago. But remember gas prices are down 50% from a year ago, and airline travel is a bargain! It s all about by Brian Bjornson, Managing Director supply and demand! What to do? It seems it would be a great time to buy, if there were only financing available at good rates and 75% LTV! No one can make effective decisions in isolation. We are bombarded by exterior ideas and forces. One of those forces could be that you want to restructure your investment property portfolio. But fear of paying too much, or not getting what you want stops you in a gridlock of indecision. In spite of all the economic conditions, apartment investment remain the least risky, best preforming real estate investment. Oregon and SW Washington prices are not at rock bottom as investors may find in other markets such as Las Vegas, Phoenix or areas of Southern California. Those markets present a much different dynamic, one in which existing condominium and single family home rents have been pressed downward so severe- ly that they have begun to effect apartment occupancies and rental levels in a negative way. Our region is different, partly due to our land use regulations and urban growth boundaries, as well as lower price structures which didn t provide feasibility to any and all new developments. Thus, although we are not in perfect economic shape (with about 11% unemployment according to the Oregon Labor Trends), most properties with good management are still able to provide adequate returns to meet operating expenses and regular cash flow. Rental incentives exist, but not to the same degree they did during the rush to buy home a few years ago. If you are waiting for that deal of deals, the one you talk about with your friends, you may have already missed it. There is a better selection of properties [continued on page nine] The Vancouver Market by Brian Pelky p. 2 Liquidity Crisis Continues by Kirk Ward p. 3 Return of the 1st Time Homebuyer by Charles Conrow p. 4 Financing Complicates Sales by Tom Davies p. 5 The State of the Apartment Market by Brian Tracy p. 6 Leveraging into Smaller Properties by Jeff Gibbs p. 7 Advantages of Apt Investment by Chase Brand p. 8 Charts & Graphs p. 16-20 Understanding a Proforma by Todd VanDomelen p. 10 Increasing Your Apts Value by Nancy McNeill p. 11 Summer 2008 Rent Survey p. 12-15 Leaders in creating effective investment and management strategies for apartment investors.

Vancouver Luxury Apartments Showing Some Stress 2008 was an interesting year for the Vancouver apartment market. We started seeing cap rates rise a bit, while growth in rental rates tapered off and remained flat in the last quarter 08. And, of course, lenders started requiring lower Loan-to- Values and higher Debt Coverage Ratios on loans in all commercial sectors-a trend that has continued into 2009. The apartment market seems to still be the safe harbor in commercial real estate. However, Vancouver Class A apartments are showing more stress than the B and C apartments. While vacancy rates have inched up in all class types, a January 09 rental survey of the Vancouver apartment market showed that Class A apartment vacancies are higher, rental rates are dropping, and concessions are being offered. Examples of these concessions include one month free rent, a reduced or eliminated move-in fee, and free garages for up to one year. For eample, a 190-unit luxury apartment building in the Westfield Mall area reported 5 units vacant, and 13 notices to vacate in January 09. This would translate to greater pressure on occupancy. According to our recent survey, the average vacancy rate for the entire Vancouver apartment market is now over 6.5%. Page Two by Brian Pelky, CCIM Multifamily Investment Associate Broker The recession and rising unemployment are contributing factors to the increased vacancy rates. Some apartment dwellers are moving back home or with other family members to consolidate and save money although, this is more of a trend in the B and C market. Others are moving down to less expensive housing. The A s are going the B s, and the B s are going C s. With no apartment movers coming to the A s, this segment is suffering the most. Also, Class A apartment dwellers now have the choice of the shadow market created by the vast amount of condos and homes that are now for rent. T wo other factors are affecting the luxury apartment market: First, some homeowners who have recently lost their homes to foreclosure are moving into apartments. This trend should continue in 2009, and should relieve some of the stress on vacancies. Second, luxury apartment dwellers with great credit who have been on the fence about purchasing homes are now taking advantage of the bad housing market, and choosing to buy now. As in many other parts of the country, there has been an increase in either short sales or bank owned homes, and these homes are selling for good prices. It s hard to say if these two factors cancel each other out. But, since A apartments have the higher rents, the moving down factor and loss of apartment dwellers to home purchases seem to explain the higher vacancy rates. This should bode well for B and C apartment investing. With an economic recovery forecasted by the end of 2009/ beginning of 2010, these trends should ease. The good news is that multifamily housing is still the safe haven for commercial real estate investors in today s economic climate. The luxury apartment market will have its challenges. But, with aggressive and smart property management, these challenges can be minimized. Norris & Stevens is acknowledged as one of the largest property management companies on the west coast, managing approximately 8,000 multifamily units. And, in any market, at the right purchase price, multifamily investing is, and will always be, a great way to build wealth. Brian can be reached at 503-225-8479 or brianp@norris-stevens.com

The fundamental changes taking place in financing for all types of real estate continue in 2009. The liquidity crisis that began in 2007-2008 has essentially reduced the funds available to finance real estate by approximately 50%. The $250 billion dollars funded in 2007 by Wall Street through commercial mortgaged-backed securities, i.e. conduits, are gone. The present rate of sales of commercial mortgaged-backed securities is less than 10 billion dollars a year. (See CMBS chart below.) Creating Value in Investment Real Estate Liquidity Crisis Continues Balance Sheet Recession by Kirk Ward Multifamily Investment Broker 6.5% 6% 5.5% 5% market will help make new funds available, and increase investor confidence in the market. The old adage, Financing makes your investment, is certainly true today. Norris and Stevens brokers offer 161 years of experience working with numerous lending sources. We can be an invaluable aid to investors, helping to maximize the return on their apartment investment. Kirk can be reached at 503-225-8448 or kirkw@norris-stevens.com PRIME INTEREST RATES, LIBOR AND TREASURY RATES March 2008 to March 2009 6.5% 6% 5.5% 5% 4.5% 4.5% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 With half of the available funds out of the market, the remaining lenders (commercial banks, Freddie and Fannie, and life insurance companies) have drastically increased their lending requirements, and restricted financing: Minimum debt coverage ratios of 1.25 and up; Maximum leverage decreasing to 65-70% for apartments; (50-60% for all other types of commercial property); Less non-recourse financing; Lenders underwriting at higher Cap rates and higher projected vacancies than the market is currently experiencing. At present, approximately 70% of all apartment financing is accomplished through Freddie or Fannie Mae, which have some federal guarantees, followed by commercial banks, and lastly, life insurance companies. The initial surge in TARP money given to commercial banks t o inc r e a s e l e n d i n g, has merely led to banks rebalancing their reserves, and not to increasing funds available for lending. Hopefully, the latest series of stimulus and moves by the Fed to help revive the CMBS 4% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 0.0% 4% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% Page Three

The Return of the First Time Homebuyer by Charles Conrow, CPM Multifamily Investment Broker With the change of the year came a change in home buyer attitude. After months of fence sitting, the first time home buyer returned to the market. State Bond and other financing programs allow for zero down financing for qualified first time buyers buyers that have not owned a home in the last three years also a tax credit or a check for $8,000 dollars for those who cannot use the credit is now available from the Federal Government. Interest rates are also very attractive, below 5% With new and existing houses more affordable than any time in the recent past, the buyers are finding it hard to wait any longer. What does this mean for the apartment owner? If the trend holds, some of the rental houses that compete with apartments will start to leave the market, cutting down on the shadow market. Condo s, however, have not returned to favor with either the buyer or lender. On the other hand, in the near term, the first time home buyer will usually be a current renter. While this is good news for the economy, and will in turn be good for multifamily investors in the long-term, in the short-term it will create another challenge by removing some of the stable, middle-income renters. For the investor, this market will present opportunities to buy distressed, poorly managed properties that will turn around in the next few years. The number of new properties coming into the rental pool will be limited, and the shadow market will be decreasing. It will also be important for owners to protect their present investment by making sure their property is attractive and well-run. This way, they will achieve the largest share of the market possible, while operating as efficiently as possible. Tenant retention and screening will also, of necessity, be a high priority. Distressed renters will live in distressed properties, and the fewer stable and responsible renters will choose from among the well-managed properties. Now is a time of both risk and opportunity a time to assess your position and protect your current investment, while looking for your next opportunity. At Norris & Stevens we know both management and investments, and can guide you through this time of change. Charles can be reached at 503-225- 8439 or charlesc@norris-stevens.com Investors know their multifamily investment property is in good hands with an Institute of Real Estate M a n a g m e n t A c c r e d i t e d M a n a g e m e n t Or ganization. Norris & Stevens is not only AMO accredited we have more Certified Property Managers than any other firm in Portland. Call Brian Bjornson to discuss your properties! Page Four

Financing continues to be the name of the game when it comes to apartment sales. The financial market conditions causing the sales slowdown in 2008 have persisted into 2009. Efforts by the Treasury Department to support lenders and improve liquidity give some cause for optimism as we move through the new year. The challenge for buyers and sellers has come from several directions. With fewer lenders available, choices for financing have become limited. For those active lenders, conservative underwriting practices have impacted returns on investment. Higher debt cover- Financing Issues Complicate Sales by Tom Davies CPM, CCIM Multifamily Investment Broker age ratios, smaller loan to value ratios, and personal liquidity requirements have kept some buyers out of the market, and have narrowed qualifying properties for others. With the recent history of poor lending decisions by some institutions, there has been a severe shift to scrutinizing borrower credit, and requiring very restrictive cash reserves. The field of players for new apartment loans has changed. While some of the dominant apartment lenders such as Washington Mutual have stepped back from the market, others have stepped in. Commercial banks and com- munity banks have filled part of the void. Government Sponsored Entities such as FNMA and Freddie Mac continue to offer viable sources for apartment lending through their network of lender partners. US Department of Housing and Urban Development programs such as 223(f) offer hope as well for favorable terms including longer amortization periods and lower debt coverage ratios. Apartment fundamentals remain strong, although apartment occupancy has slipped approximately 2.2% since our Summer continued on page nine Average 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Increase New Construction **$232,902 $108,157 $72,302 $78,518 $76,286 $66,899 $65,826 $77,574 $65,103 $62,048 $66,099 25.2% Pre-1990 Construction $90,765 $85,335 $69,810 $66,931 $55,293 $47,709 $56,628 $54,689 $47,642 $51,418 $42,212 11.5% 5 to 10 Units $80,099 $88,774 $79,411 $87,365 $64,676 $64,442 $58,472 $55,052 $48,688 $52,183 $51,716 5.5% 4-plexes $105,013 $113,813 $107,808 $100,131 $84,431 $80,772 $74,039 $66,097 $61,681 $66,234 $70,759 4.8% Single Family $330,300 $342,800 $322,500 $282,900 $246,000 $222,500 $210,700 $201,000 $198,600 $188,600 $181,000 8.2% ** Includes the Ardea and The Wyatt sales for 2008 condo prospects that sold as apartments Page Five

Are We There Yet? by Brian Tracy Multifamily Investment Associate Broker Each year my family and I enjoy a nice road trip to the Wallowa Mountains of Eastern Oregon. On the long six hour drive the one question that arises more often than any other from my kids is: Are we there yet? As one would expect, kids have limited patience and are anxious. But this feeling is all too familiar as I contemplate our current real estate market and economy. Just where is the bottom? In trying to figure the answer to that question, I can t help but ask myself Are we there yet. One thing is for sure in the market: change is occurring. For better or worse, there is pressure mounting that is causing change in the apartment market. These changes affect all aspects of apartment business such as sales, rents, vacancies, income, values, and cash flow just to name a few. In our declining economy, apartment values have come into question. Operationally, apar tment properties are running fine for most investors with only some recent decline in occupancies. Rents, too, have taken a little bit of a hit as renter demand has retracted in the light of jobs losses. This trend is expected to continue through 2009 until we find the bottom of this cycle. On the other hand apartment sales have slowed significantly as Buyers now struggle with tough lending criteria and a growing concern of increasing cap rates. In addition, buyers are increasingly more interested in the bargains of a down market than a market rate apartment investment. This has lead to a decline in closed apartment transactions of 40% from January 2008 to January 2009. With all these changes occurring, there is always an opening of opportunity. This opportunity may not present itself in the same way we have seen in recent years. However, the savviest investors find down markets to be the most productive time to reposition. The time is now to evaluate your investment strategy and look for the opportunities. At Norris & Stevens we create maximum value for investors through apartment sales and consulting. We also provide exceptional property management services which help owners remain competitive in all market conditions. Take time to meet with one of our full time brokers who can explain the positive difference Norris & Stevens can make in your investment. Brian can be reached at 503-225-8456 or briant@norris-stevens.com CAP Rate Ranges Representative capitalization of net income [CAP] for larger apartments communities [20 or more units] sold 01/08-01/09 MULTNOMAH COUNTY BUILT 1990 - PRESENT 3.30 6.58% BUILT PRIOR TO 1990 5.00 8.29% WASHINGTON COUNTY BUILT 1990 - PRESENT 5.89 7.65% BUILT PRIOR TO 1990 3.35 7.63% CLACKAMAS COUNTY BUILT 1990 - PRESENT 5.70 5.70%* BUILT PRIOR TO 1990 3.96 7.32% CLARK COUNTY BUILT 1990 - PRESENT 5.71 6.40% BUILT PRIOR TO 1990 6.20 7.00% MARION COUNTY BUILT 1990 - PRESENT 6.1 6.98% BUILT PRIOR TO 1990 Info not available* * One Sale Only Smaller-sized apartment communities may have values that vary from these findings. Please refer to a Licensed Appraiser or MAI for specific values. Information courtesy of Paula Greer of Paulsen Black, Inc and CoStar Page Six

Leveraging into Smaller Properties by Jeff Gibbs Multifamily Associate Investment Broker Most investors don t have the ability, or the need, t o purchase properties completely with cash. Leverage solves this problem. Leverage enables investors to purchase properties that they may not have otherwise been able to purchase. This allows a wide range of investors the opportunity to s u c c e s s f u l ly c o mp et e fo r a property in the market. T h e r e a r e t w o t y p e s o f leverage positive and negat i ve. I f l eve raged p r o p e r t y generates higher returns than it cost to borrow the funds, it is called positive leverage. If the leveraged property generates returns that are less than the cost of the borrowed funds, then negative leverage occurs. There are many pros and cons that come with leveraging into a property here is a list of a few: A List of the Pros 1. An investor can purchase a property they could not otherwise afford. 2. It takes the risk of the investment and spreads it over multiple investments. 3. When leverage is positive the owners yield increases. 4. It can preserve capital for other investments. Some of the Cons 1. A heavy debt load means the property will produce less cash f low. 2. The more the investor is leveraged, typically, the g reater the risk. 3. As the interest rates in the market increase, investment values typically decrease. In our current market more money is being required as initial investments. As a result, investors are not able to leverage the way they have become accustomed to do.an example of this in action is a buyer looking to purchase a $1,500,000 property. In the past this buyer was able to get a 75% and sometimes even 80% Loan to Value, d e p e n d i n g o n t h e p r o p e r t y. This would equate to an initial investment of around $350,000. In today s market that same property would have a Loan to Value of 60% - 65%. This would require an initial investment of about $550,000, or a$200,000 difference. This is creating a greater demand for the smaller properties in a market. More and more investors are looking to the 10-35 unit properties to satisfy their returns. The combination of more p r o d u c t o n t h e m a r k e t, a s well as banks tightening their lending belts is contributing to the revival of these smaller properties, and this in turn is creating more and more demand. There are great deals to be had in today s market. A t No r r i s & S tevens, o u r m u l t i f a m i ly b r o k e r s a r e knowledgeable and extremely service-oriented. Feel free to call and ask for an evalua t i o n o f y o u r i nv e s t m e n t today. Jeff can be reached at 503-225-8487 or jeffg@norris-stevens.com Page Seven

Advantages of Apartment Investment by Chase Brand Multifamily Investment Broker In good times and bad apartments have always represented a unique type of investment for those who invest their money in commercial real estate. For some it is the only type of commercial real estate they will own. For others it is a balance and an anchor to a portfolio of income-producing properties. Apartments represent a different kind of relationship between the owner and the tenants. Because of this, property management issues are different than those for commercial property, and banks treat the underwriting differently. Whether it s a booming economy or a downturn, apartments have fared better than other types of investment property. The first thing most apartment investors will tell you that they like about apartments is flexibility. When rents are rising you can adjust to the market usually within a month, six months or a year. This allows the investor to maximize his value when we are in an up market. When rents are in decline or vacancy becomes an issue, the landlord can control the rate of drop through longer leases, incentives and by reducing fees. To combat high vacancy any owner can adjust his rent to compete better in the market, or can make adjustment qualifying standards (such as allowing tenants to have pets, accepting tenants with damaged credit, or marketing to a lower socio-economic class.) Compare this to other types of real estate where a single vacancy can represents 20%, 30% or even 100% of the property s Page Eight income, and it can take months or years to find a new tenant. By being flexible, apartment investments allow the property owner to capitalize more quickly when the market is on the upswing, and to minimize the loss when the market is heading downward. The key element to taking advantage of market swings is management. In an up market you want to keep pushing rents to get maximum value. In a down market it will take additional attention to keep the property full and to monitor the tenants. Those who do not proactively manage their buildings will miss out on the good times and lose more in the bad. With every other type of property, the relationship is a business-to-business relationship. Rents are often a function of how much success the tenant business enjoys. For apartment owners, the relationship is far more personal. You are renting someone their home, to which they have the right of private enjoyment. On the other hand, the tenant is taking on responsibility to not only live in, but to take care of a portion of someone else s building.the opportunities for conflict arise easily when one party or the other does not uphold their responsibility. Because it is such personal relationship between the tenant and the landlord, they are regulated by a completely different set of laws than other commercial property. Again, it falls to competent professional management to keep an apartment running smoothly, and getting conflicts resolved quickly and economically. When it comes to financing, banks have always given apartments preferential treatment. Because of the flexibility that apartments have adjusting to the market, banks have generally allowed higher loan-to-value ratios. Where the maximum for a commercial property might be 60%, an apartment could be financed up to 75%. This is directly a result of being able to manage vacancy. Interest rates are another way that lenders favor apartments. You can usually get about 1% to 1.5% better interest rate on your apartment investment than any other type of commercial property. Finally, a bad economy is not necessarily bad for apartment owners. Housing is a basic need, like food and water. There is always a demand. In a time when home ownership may be waning, apartment owners are reaping the benefit from the influx of new renters. Of course every market and submarket has their intricacies, and right now A class properties are feeling the pinch. Values for apartment properties will be determined by the financing available, while other types of property are failing, falling into foreclosure, and may even be un-financeable. Overall apartments continue to perform well in an otherwise challenging environment for commercial real estate. Chase can be reached at 503-225-8491 or chaseb@norris-stevens.com

Financing Complicates Sales [continued from page five] 2008 survey, with a total Portland Metro vacancy rate of 6.58%. Portland s average occupancy over the past ten years has been approximately 94%, so current vacancy is roughly in line with the historic trend. Rents at the end of 2008 still show positive growth compared with the Summer of 2008. Apartment managers are starting to utilize more rental incentives, however, which will reduce effective rents in the short term. The supply side of the equation is still favorable for apartment owners. With relatively few multi-family permits in the construction pipeline, oversupply is not a concern. Single family foreclosure rates are relatively low in Portland compared to the national scene, but those unfortunate enough to lose their homes contribute to the strength of the rental housing market. Recorded sales prices per unit have receded somewhat from the high levels of 2007, but are still higher than the 2006 averages. Typical capitalization rates in 2008 were still in the low 6% range. Capitalization rates will move up in 2009 as financing has become less certain, and interest rates rise as well. Sales volume was down in 2008 compared with 2007, although for most brokers active in sales, the volume felt much lower than the numbers reveal. Tom can be reached at 503-225-8449 or tomd@norris-stevens.com Make Investment Profitable Decisions Now! [continued from page one] available now than we have seen in many years. Though some of our traditional sources of leveraged lending have changed, financing is still available. Serious buyers or sellers must arm themselves with an experienced apartment investment broker, no matter what they do. That way, they will receive a fair market price for their property. If they plan on a 1031 trade, they will be able to upgrade their portfolio with a property that may be in a much better location with better long term potential. A Total Win. When it comes to pricing, I know it is hard to forget the highest price you ever heard for your property...but forget it. GET REAL! Then you will move ahead and be positioned well for whatever the future economy throws at us! Brian can be reached at 503-225-8438 or brianb@norris-stevens.com Active Management Can Help Close the Expectation Gap For the past year, apartment buyers and sellers have been waiting for the market chaos to begin to settle. Now many are poised to advance their investment goals but questions linger. First, what impact will the current recession have on the rental market? There can be no doubt that vacancy rates will increase in the shortterm. But the pressure for higher vacancies exerted by job losses and household consolidation will be partially offset by the collapse of the single family home market, with its foreclosures and credit drought. People need shelter, and this will lead to increased reliance on rental housing. How will the shadow market of houses and condos now offered for rent affect apartment vacancies? We have looked at the rents asked for these properties, and concluded that they will offer direct competition to very high end, luxury apartments, but are much less of a threat to middle-income apartment communities. The long-term prognosis for the apartment market recovery is very good. Historically, the apartment market adjusts faster than other investment product after every recession. Additionally, this present recession comes just as the echo boomers, the generation born between 1982 and 1995, are coming of age - all 80 million of them. O r e g o n e n j oy s t h e p o s i t i o n o f b e i n g o n e o f t h e s t a t e s [continued on page eleven] Page Nine

Understanding a Pro Forma by Todd VanDomelen Multifamily Investment Broker $2,130,000 $1,200,000 $71,000 $ 930,000 6.5% $ 746,000 Price/SF 8.6 $86.06 $20,610 ($1,031 ) $247,320 $ 12,370 $234,950 2009 estimated 15 times $300 $200 per unit $21,300 $ 4,500 $ 1,800 $12,600 $ 7,200 $ 650 $48,050 $11,700 $11,700 $ 7,000 $ 4,500 $ 6,000 $ 3,600 $ 4,200 $48,700 Expense Ratio 41.2% Exp/Unit $3,225 $ 96,750 $138,200 A proforma is an estimate of the income and expense on an investment property. Buyers, sellers, appraisers and lenders use proformas as part of their analysis of the value of a property. The purpose of a proforma is to arrive at an accurate Net Operating Income [NOI]. NOI is the projected cash receipts generated annually from all sources during operation of the property minus operating expenses. Items that are not included in Brian can be reached at 503-225-8438 arriving or brianb@norris-stevens.com at Net Operating Income Ten are debt service Page (including interest and principal) and depreciation. These items are not figured as part of the NOI. The NOI divided by the Purchase Price provides the Capitalization Rate, which is an integral element of value analysis. The CAP rate is a reflection of the investment s return at a specific price. To achieve an accurate NOI, and thus an accurate CAP rate, it is essential that estimated expenses reflect real market income and expenses now! It is important to scrutinize all of the numbers that make up a proforma. Often sellers do not include vacancy, management, reserves, and under state repair costs. Not including these expenses gives a seller an unrealistic estimate of the value. On the other hand, if expenses are inordinately high in one category without clarification, this can have the opposite effect, and reduce the estimated value. Brokers at Norris & Stevens can properly analyze your property to give you the range of value a seller can expect to realize from the sale of property.

Increasing Your Property s Value by Nancy McNeill Multifamily Investment Broker In today s economy, most people are looking for ways to spend less money cut back. However, by not investing in your property s upkeep and management, the value of your property could be negatively impacted. The first step is to hire a competent property management firm. A good management firm will help increase revenues by keeping units filled at market rents, minimizing turn over times, and managing expense items. Sit down with your property management firm and discuss plans for the coming year. What are cost effective projects that can set your property apart from the competition? Focus on curb appeal. If your property doesn t grab the renter s attention, they will never stop to see what you have to offer. Make sure your property is clean sweep sidewalks, pick up litter in the parking lot. Fresh bark dust and new paint in strategic areas impacts a renter s first impression. Make sure your property is getting the most for your money from contractors. At Norris & Stevens, the multifamily property management team utilizes third party contractors. By having contractors compete, the best price is secured for the property. Some multifamily property management firms have their own maintenance crews. The properties are billed at prevailing contractor wages for the work, yet the crews are paid hourly wages that are substantially less. This creates a noncompetitive environment, and the cost to the owner is increased. Case Study Recently I had the opportunity to advise a property owner regarding a self-managed apartment investment. The owner had tried to sell the property numerous times in the past. However, the property could never qualify for market rate financing because the vacancy rate was near 20% and there were issues with deferred maintance. Norris & Stevens developed a management and brokerage plan. The management team fixed the vacancy issue within 90 days with all units being rented at amounts higher than what the owner was achieving. Turnover times were decreased, and several maintenance items were corrected. After a year of management which reflected strong property performance, the property was offered for sale. We received numerous offers, and the property sold for 24% higher than the price the owner had hoped for a few years earlier. The partnership between Norris & Stevens, Inc. Brokerage and Property Management Divisions allowed the owner to maximize his property s value. Norris & Stevens specializes in assisting owners with underperforming assets. Whether you are preparing your property for sale, a refinance or just repositioning your property, give us a call to see how we can partner with you. Nancy can be reached at 503-225-8467 or nancym@norris-stevens.com Close the Gap [continued from page nine] many echo boomers choose to live. So while rents will probably remain flat for some time, the long-term outlook is good. Will financing be available to apartment investors? Apartment investors will find financing more readily than investors in other types of commercial real estate. Freddie Mac and Fannie Mae are sources available for apartment investment, as opposed to other commercial investment. Will the prices pencil out? Admittedly, there is still an expectation gap between buyers and sellers. The run up in prices over the past several years have led sellers to ask for sums that will be difficult to justify in these days of higher vacancies and tighter credit. Quality management can actually increase the value of an apartment investment by increasing the Net Operating Income. NOI is the most important indicator of market value to investors, and impacts the valuation for sales as well as financing. Norris & Stevens is uniquely qualified to provide the quality management investors need to maximize the value of their apartment investment. Page Eleven

OREGON 10 HILLSBORO ALOHA CORNELIUS PASS RD HWY 26 BEAVERTON SCHOLLS FERRY 11 SUNSET CORRIDOR TV HWY SHERWOOD CORNELL RD 6 7 20 HWY 217 TIGARD TUALATIN N PORTLAND NW PORTLAND 19 SW PORTLAND WINTER RENT SURVEY LAKE OSWEGO I-205 VANCOUVER 18 16 15 I-5 NE PORTLAND 12 ML KING BLVD WASHINGTON 21 22 COLUMBIA BLVD NE PORTLAND SE PORTLAND WEST LINN POWELL BLVD MILWAUKIE 13 17a MCGLOUGHLIN I-84 ROCKWOOD 17b I-205 14 CLACKAMAS 8 OREGON CITY 9 GRESHAM HWY 26 HOGAN RD 2 1 4 5 I-5 23 WILSONVILLE 3 Numerical Key to Summer Rent Survey Markets. Norris & Stevens also surveys additional markets not published in this newsletter. Norris & Stevens regularly surveys the market for each managed property in order to determine the range and depth of the rental market in Portland Metro and the Willamette Valley. This survey covers 153,723 units. The overall vacancy rate for the Portland Metro area is 6.67% at the time of this survey. This is a increase of 2.26%. [Norris & Stevens management portfolio shows an occupancy rate of 95.1%.] Rents shown below are an average of the stated asking rents, and do not reflect the impact of specials and concessions on rental income. Under-reporting of vacancies may be concealing additional softness. The lease-up of condo projects recently converted to apartments, such as the Harrison Tower and 2121 Belmont, and new lease-ups, such as The Ardea, are not included in vacancy rates. Only complexes over 20 units are included. The market shows significant softening in some areas, with concessions offered in many of those areas. Most markets are maintaining vacancy rates near 5%, and rents were still rising, offset by concessions, at the time of the survey. (Rents have dropped slightly in the most challenged markets.) Norris & Stevens deems the results reliable. We do not guarantee their accuracy. All information should be verified prior to any real estate transaction use. As we add properties to or drop properties from our survey, any area may show minor data fluctuations. Area Studio 1BD/1BA 2BD/1BA 2BD/2BA 2BD/2BA+ 3BD/1BA 3BD/2BA Albany/Newer Av. Rent/Unit N/A $528 $623 $754 N/A N/A $759 (Vacancy Rate 6.8%) Av. Sq. Ft. N/A 678 849 1001 N/A N/A 1094 1 Rent/Sq. Ft. N/A.78.73.75 N/A N/A.69 Corvallis/Newer Av. Rent/Unit $518 $662 $767 $782 N/A N/A $969 (Vacancy Rate 5.4%) Av. Sq. Ft. 451 668 879 968 N/A N/A 1120 2 Executive Summary Rent/Sq. Ft. 1.15.99.87.81 N/A N/A.87 Page Twelve Vacancy information may not be reprinted without prior written permission from Norris & Stevens.

Area Studio 1BD/1BA 2BD/1BA 2BD/2BA 2BD/2BA+ 3BD/1BA 3BD/2BA Eugene/[Springfield]/Newer Av. Rent/Unit $645 [N/A] $761 [N/A] $859 [$697] $861 [$875] $1016 [N/A] N/A [N/A] $1123 [$975] (Vacancy Rate 3.9% [3.3%]) Av. Sq. Ft. 496 [N/A] 724 [N/A] 877 [910] 1017 [1100] 1196 [N/A] N/A [N/A] 1216 [1200] 3 4 Rent/Sq. Ft. 1.30 [N/A] 1.05 [N/A].98 [.77].85 [.80].85 [N/A] N/A [N/A].92 [.81] Eugene/[Springfield]/Pre-1995Av. Rent/Unit $561 [$490] $673 [$519] $709 [$602] $857 [N/A] $1195 [N/A] N/A [N/A] $1056 [N/A] (Vacancy Rate 3.1% [2.9%]) Av. Sq. Ft. 474 [399] 691 [610] 896 [823] 1017 [N/A] 1260 [N/A] N/A [N/A] 1208 [N/A] 3 4 Salem Vicinity/Newer Av. Rent/Unit $572 $619 $644 $746 $908 N/A $870 (Vacancy Rate 5.8%) Av. Sq. Ft. 493 733 890 999 1069 N/A 1153 5 Rent/Sq. Ft. 1.16.84.72.75.85 N/A.75 Salem Vicinity/Pre-1995 Av. Rent/Unit $461 $514 $601 $676 $1011 $743 $780 (Vacancy Rate 4.9%) Av. Sq. Ft. 402 683 862 983 1168 1132 1182 5 Rent/Sq. Ft. 1.15.75.70.69.87.66.66 Beaverton/[Sunset Corr]/Newer Av. Rent/Unit N/A [N/A[ $727 [$730] $835 [N/A] $845 [$910] $1036 [$1211] N/A [N/A] $1036 [$1282] (Vacancy Rate 7.2%/[6.5%]) Av. Sq. Ft. N/A [N/A] 711 [643] 917 [N/A] 962 [934] 1192 [1074] N/A [N/A] 1192 [1342] 6 7 Rent/Sq. Ft. N/A [N/A] 1.02 [1.14].92 [N/A].88 [.97].87 [1.13] N/A [N/A].87 [.96] Beaverton/[Sunset Corr]/Pre-1995Av. Rent/Unit $530 [$662] $662 [$756] $727 [$788] $829 [$933] $1113 [$1194] $817 [$814] $968 [$1099] (Vacancy Rate 6.3%/[6.1%]) Av. Sq. Ft. 404 [494] 631 [683] 885 [891] 963 [957] 1139 [1073] 992 [963] 1156 [1151] 6 Rent/Sq. Ft. 1.31 [1.34].98 [1.11].82 [.88].86 [.94].98 [1.11].82 [.84].82 [.95] Clackamas/Newer Av. Rent/Unit N/A $748 $740 $877 $1060 N/A $1052 (Vacancy Rate 5.8%) Av. Sq. Ft. N/A 731 844 956 1220 N/A 1167 8 Rent/Sq. Ft. 1.18 [1.23].97 [.85].79 [.73].84 [N/A].95 [N/A] N/A [N/A].87 [N/A] Rent/Sq. Ft. N/A 1.02.88.92.87 N/A.90 Clackamas/Pre-1995 Av. Rent/Unit $567 $682 $796 $835 $985 N/A $994 (Vacancy Rate 5.5%) Av. Sq. Ft. 426 671 883 986 1146 N/A 1118 8 Rent/Sq. Ft. 1.33 1.02.90.85.85 N/A.89 Gresham/Newer Av. Rent/Unit $622 $696 $745 $902 $1305 N/A $964 (Vacancy Rate 7.2%) Av. Sq. Ft. 515 700 904 988 1210 N/A 1180 9 WINTER RENT SURVEY DATA Rent/Sq. Ft. 1.21.99.82.91 1.08 N/A.82 Gresham/Pre-1995 Av. Rent/Unit $550 $614 $705 $759 N/A $813 $906 (Vacancy Rate 6.7%) Av. Sq. Ft. 482 683 873 972 N/A 1032 1157 9 Rent/Sq. Ft. 1.14.90.82.78 N/A.79.78 Hillsboro/[Tanasbourne]/Newer Av. Rent/Unit N/A [N/A] $751 [$830] $895 [$930] $839 [$940] $1063 [$1159] N/A [$1152] $1053 [$1280] (Vacancy Rate 7.1%/[8.3%]) Av. Sq. Ft. N/A [N/A] 730 [757] 945 [990] 999 [995] 1152 [1306] N/A [1300] 1190 [1398] 10 11 Rent/Sq. Ft. N/A [N/A] 1.03 [1.10].95 [.94].84 [.94].92 [.89] N/A [.89].88 [.92] Hillsboro/[Tanasbourne]/Older Av. Rent/Unit $544 [$554] $702 [$711] $707 [$759] $840 [$857] N/A [$1078] $750 [N/A] $939 [$977] (Vacancy Rate 6.3%/[7.5%]) Av. Sq. Ft. 475 [439] 648 [679] 832 [913] 1005 [1049] N/A [1245] 915 [N/A] 1120 [1211] 10 Rent/Sq. Ft. 1.15 [1.26] 1.08 [1.05].85 [.83].84 [.82] N/A [.87].82 [N/A].84 [.81] Lake Oswego & W Linn/Newer Av. Rent/Unit N/A $869 $1000 $1051 $1330 N/A $1244 (Vacancy Rate 6.4%) Av. Sq. Ft. N/A 742 898 1056 1328 N/A 1299 12 7 Rent/Sq. Ft. N/A 1.17 1.11 1.00 1.00 N/A.96 Lake Oswego & W Linn/Pre-1995Av. Rent/Unit $637 $859 $937 $998 $1396 N/A $1252 (Vacancy Rate 7.2%) Av. Sq. Ft. 396 726 885 1065 1298 N/A 1357 12 Rent/Sq. Ft. 1.61 1.18 1.06.94 1.08 N/A.92 continued on page fourteen Page Thirteen

Area Studio 1BD/1BA 2BD/1BA 2BD/2BA 2BD/2BA+ 3BD/1BA 3BD/2BA Milwaukie & Gladstone/Newer Av. Rent/Unit N/A $745 $774 $835 $1396 N/A $1145 (Vacancy Rate 4.8%) Av. Sq. Ft. N/A 726 844 975 1282 N/A 1219 13 Rent/Sq. Ft. N/A 1.03.92.86 1.09 N/A.94 Milwaukie & Gladstone/Pre-1995Av. Rent/Unit $525 $634 $733 $826 N/A $738 $985 (Vacancy Rate 5.2%) Av. Sq. Ft. 472 696 875 1030 N/A 1093 1206 13 Rent/Sq. Ft. 1.11.91.84.80 N/A.68.82 Oregon City/Newer Av. Rent/Unit N/A $666 $713 $760 N/A N/A $831 (Vacancy Rate 6.8%) Av. Sq. Ft. N/A 677 867 921 N/A N/A 1059 14 Rent/Sq. Ft. N/A.98.82.83 N/A N/A.78 Oregon City/Pre-1995 Av. Rent/Unit N/A $657 $734 $806 N/A $802 $973 (Vacancy Rate 4.7%) Av. Sq. Ft. N/A 694 875 969 N/A 962 1180 14 Rent/Sq. Ft. N/A.95.84.83 N/A.83.82 PDX Downtown/Newer Av. Rent/Unit $705 $1075 $1229 $1951 $2285 N/A N/A (Vacancy Rate 8.0%) Av. Sq. Ft. 419 668 904 1092 1216 N/A N/A 15 Rent/Sq. Ft. 1.68 1.61 1.36 1.79 1.88 N/A N/A PDX Downtown/[Vintage DT] Av. Rent/Unit $693 [$675] $1003 [$776] $1679 [$1153] $1414 [$1380] $1958 [N/A] [N/A] [N/A] $31997 [N/A] Pre-1995 (Vacancy Rate 5.6%/[4.9%]) Av. Sq. Ft. 410 [396] 603 [631] 901 [929] 988 [1400] 1466 [N/A] [N/A] [N/A] 1653 [N/A] 15 16 Rent/Sq. Ft. 1.69 [1.70] 1.66 [1.23] 1.86 [1.24] 1.43 [.99] 1.34 [N/A] [N/A] [N/A] 1.83 [N/A] PDX Inner Eastside/Newer Av. Rent/Unit $878 $973 $774 $1158 $1651 N/A $1247 (Vacancy Rate 6.7%) Av. Sq. Ft. 492 700 824 1115 1095 N/A 1348 17a Rent/Sq. Ft. 1.78 1.39.94 1.04 1.51 N/A.93 PDX Inner Eastside/Pre-1995 Av. Rent/Unit $599 $741 $839 $977 $1107 $979 $915 (Vacancy Rate 5.0%) Av. Sq. Ft. 421 620 859 1002 1024 1064 1136 17a Rent/Sq. Ft. 1.42 1.19.98.98.98.92.81 PDX Outer Eastside/Newer Av. Rent/Unit $596 $635 $680 $780 N/A N/A $908 (Vacancy Rate 7.4%) Av. Sq. Ft. 458 677 875 992 N/A N/A 1117 17b Rent/Sq. Ft. 1.30.94.78.79 N/A N/A.81 PDX Outer Eastside/Pre-1995 Av. Rent/Unit $485 $580 $689 $735 N/A $820 $898 (Vacancy Rate 6.5%) Av. Sq. Ft. 450 652 861 977 N/A 1005 1178 17b Rent/Sq. Ft. 1.08.89.80.75 N/A.82.76 PDX Westside/Newer Av. Rent/Unit N/A $886 $996 $1108 $1400 N/A $1281 (Vacancy Rate 6.6%) Av. Sq. Ft. N/A 791 1011 1052 1308 N/A 1295 18 Rent/Sq. Ft. N/A 1.12.99 1.05 1.07 N/A.99 PDX Westside/Pre-1995 Av. Rent/Unit $566 $649 $754 $852 $1239 $896 $1005 (Vacancy Rate 5.4%) Av. Sq. Ft. 453 662 903 1007 1106 1039 1261 18 Rent/Sq. Ft. 1.24.98.83.85 1.12.86.80 Tigard/Newer Av. Rent/Unit N/A $755 $909 $905 $1063 N/A $1116 (Vacancy Rate 6.3%) Av. Sq. Ft. N/A 690 866 955 1030 N/A 1117 19 Rent/Sq. Ft. N/A 1.09 1.05.95.94 N/A 1.00 Tigard /Pre-1995 Av. Rent/Unit $582 $648 $726 $843 $1115 $776 $1003 (Vacancy Rate 5.9%) Av. Sq. Ft. 459 689 856 1003 1250 984 1175 19 WINTER RENT SURVEY DATA Rent/Sq. Ft. 1.27.94.85.84.89.79.85 Page Fourteen Vacancy information may not be reprinted without prior written permission from Norris & Stevens.

Creating Value in Investment Real Estate WINTER RENT SURVEY DATA Area Studio 1BD/1BA 2BD/1BA 2BD/2BA 2BD/2BA+ 3BD/1BA 3BD/2BA Tualatin Vicinity/Newer Av. Rent/Unit $700 $723 $1000 $894 $1140 N/A $1146 (Vacancy Rate 7.9%) Av. Sq. Ft. 452 648 875 976 1142 N/A 1177 20 Rent/Sq. Ft. 1.55 1.12 1.14.92 1.00 N/A.97 Tualatin Vicinity/Pre-1995 Av. Rent/Unit $556 $663 $721 $778 N/A $809 $939 (Vacancy Rate 7.3%) Av. Sq. Ft. 414 615 807 898 N/A 989 1059 20 Rent/Sq. Ft. 1.34 1.08.89.87 N/A.82.87 Vancouver/ [Westfield] /Newer Av. Rent/Unit $622 [N/A] $706 [$845] $771 [$700] $869 [$1008] $1152 [$1200] N/A [N/A] $1094 [$1261 (Vacancy Rate 7.1%/[7.5%]) Av. Sq. Ft. 526 [N/A] 725 [786] 918 [850] 1060 [1108] 1405 [1158] N/A [N/A] 1255 [1507] 21 22 Rent/Sq. Ft. 1.18 [N/A].97 [1.08].84 [.82].82 [.91].82 [1.04] N/A [N/A].87 [.84] Vancouver/ [Westfieldl] /Pre-1995 Av. Rent/Unit $541 [N/A] $621 [$717] $688 [$713] $771 [$827] $1090 [$1076] $729 [N/A] $933 [$965] (Vacancy Rate 6.5%/[8.2%]) Av. Sq. Ft. 457 [N/A] 676 [776] 882 [914] 1003 [999] 1251 [1175] 976 [N/A] 1239 [1259] 21 22 Rent/Sq. Ft. 1.18 [N/A].92 [.92].78 [.78].77 [.83].87 [1.00].75 [N/A].75 [.77] Wilsonville/Newer Av. Rent/Unit $770 $776 $800 $896 $1196 N/A $1065 (Vacancy Rate 7.8%) Av. Sq. Ft. 527 733 901 965 1215 N/A 1207 23 Rent/Sq. Ft. 1.46 1.06.89.93.98 N/A.88 Wilsonville/Pre-1995 Av. Rent/Unit N/A $695 $692 $817 N/A N/A $965 (Vacancy Rate 5.7%) Av. Sq. Ft. N/A 770 836 933 N/A N/A 1136 23 Rent/Sq. Ft. N/A.90.83.88 N/A N/A.85 Vacancy information may not be reprinted without prior written permission from Norris & Stevens. Current Rates Available by Institution Portfolio Lenders & Savings Banks: 5 year = 6.3%; 10 year = 6.3-7.0% Life Insurance Companies: 10 year fixed = 6.75-7.25% Conduits (not active at the present time): 10 year fixed =? Fannie Mae & Freddie Mac: 10 year fixed = 6.2% Page Fifteen

Norris & Stevens is uniquely qualified to offer comprehensive property management as well as commercial sales and leasing services, with extensive experience serving the special requirements of new and under-achieving or distressed properties. Our specialists have the hands-on knowledge that is needed to assess client requirements and devise an effective plan of action. Across all property types and service groups, Norris & Stevens Brokers and Asset Managers work together in cooperative problem-solving for every market in Oregon and Southwest Washington. As one of the largest local commercial real estate firms in Oregon, Norris & Stevens property professionals possess specialized backgrounds in sales, leasing and property management which allow us to: Define value and identify opportunities; Provide extensive marketing support; Identify alternative uses for the property; Stabilize the performance of a distressed asset; Enhance the overall appearance of your property; Offer a defined exit strategy that is achievable maximizing the realized return on your property! Page Sixteen Solutions for Under-Performing and Distressed Properties Since 1967, Norris & Stevens Integrated Services, two teams working together synergistically, has achieved an impact greater than the sum of its parts. Top property management professionals and top apartment brokers work together to insure the success of an apartment investment. At Norris & Stevens our brokerage is built on over 42 years experience in property management, and our property management is enhanced by the collaboration of our asset managers with our veteran apartment brokers. Our services include total marketing, redevelopment and planning: We have been professional apartment managers since 1967; We have completed 72 new construction lease-ups since 1973; We have managed and sold mixed-use, historic buildings and low income housing, as well as conventional apartment properties. We provide: Training for resident staff; Advertising and marketing services; Preventive maintenance programs; Coordination and supervision of capital improvements. Investors can count on our 161 years of sales experience for: Valuation; Effective marketing: local, regional and national; 1031 exchanges; Site selection; New development consulting We know apartment financing! Norris and Stevens has established relations with over 40 local and national lenders. We work together to solve investment property problems. At Norris and Stevens we offer an integrated property management and brokerage package, utilizing two teams of real estate professionals cooperating to maximize your return. Call us today, and let us help you address your current investment real estate challenges! Call Brian Bjornson at 503.225.8493 and take the first step towards achieving your apartment investment goals.

AVERAGE RENTS SEASONED CONSTRUCTION $570 - Fall/Winter 1996/97 $589 - Fall/Winter 1997/98 $595 - Fall/Winter 1998/99 $635 - Fall/Winter 1999/00 $647 - Fall/Winter 2000/01 $641 - Fall/Winter 2001/02 $637 - Fall Winter 2002/03 $621 - Fall/Winter 2003/04 $609 - Fall/Winter 2004/05 $592 - Spring/Summer 2005 Spring/Summer 2007 - $644 $632 - Fall/Winter 2005/06 Spring/Summer 2007 - $682 Fall/Winter 2007/08 -$715 Summer/Fall 2008 -$722 Fall/Winter 2008/09 -$733 A History of Average Rents for Seasoned 2 Bedroom/1 Bath Apartments in the Portland Metro Area AVERAGE RENTS NEWER CONSTRUCTION Page Twelve $717 - Fall/Winter 1996/97 $735 - Fall/Winter 1996/97 $726 - Fall/Winter 1998/99 $739 - Fall/Winter 1999/00 $747 - Fall/Winter 2000/01 $761 - Fall/Winter 2001/02 $774 - Fall/Winter 2002/03 $738 - Fall/Winter 2003/04 $740 - Fall/Winter 2004/05 $723 - Spring/Summer 2005 Spring/Summer 2006 -$785 $756 - Fall/Winter 2005/06 Spring/Summer 2007 -$829 Fall/Winter 2007/08 -$865 Summer/Fall 2008 -$874 Fall/Winter 2008/09 -$920 A History of Average Rents for Newer 2 Bedroom/2 Bath Apartments in the Portland Metro Area Page Seventeen

Page Eighteen Recent Apartment Sales in Oregon & SW Washington Price Sale Property City Price Units CAP /Unit Built Date Riverside Apts Camas $2,030,000 28 5.4% $72,500 N/A 07/15/2008 Shoreline Pointe Salem $1,560,000 24 7.0% $65,000 1996 07/21/2008 Heritage Village Eugene $12,600,000 176 8.0% $71,591 1996/97 07/30/2008 7120 SW Ivy Lane Portland $5,300,000 85 N/A $62,353 N/A 07/30/2008 The Ardea Portland $145,000,000 323 N/A $448,916 2008 08/07/2008 Laurel Gate Apts Salem $1,775,000 35 6.6% $50,714 1972 08/08/2008 Monterey Springs Portland $41,000,000 390 5.7% $105,128 1990 08/14/2008 Waterhouse Place Beaverton $30,000,000 279 5.9% $107,527 1990 08/19/2008 Westbrook Apts Beaverton $4,650,000 48 6.3% $96,875 1969 08/27/2008 Bendemeer Court Hillsboro $1,470,000 28 6.7% $52,500 1984 08/27/2008 Tahitian Terrace Portland $3.450,000 41 N/A $84,148 1958 08/29/2008 Stark Street Station Portland $1,750,000 28 5.8% $62,500 1995 08/29/2008 9345 NE Prescott Portland $1,350,000 25 6.0% $54,000 1942 08/29/2008 Tabor View Terrace Portland $2,550,000 25 N/A $102,000 1948 09/03/2008 11240 SW Barbur Blvd Portland $1,750,000 26 5.1% $67,308 1938 09/10/2008 Carrington Square Portland $2,700,000 54 6.5% $50,000 1971 09/12/2008 Parkview Apartments Vancouver $7,200,000 104 5.8% $69,321 1954 09/18/2008 Barclay Village Oregon City $12,300,000 146 6.4% $84,247 1987 09/18/2008 Village Park Vancouver $6,300,000 91 6.2% $69,231 1988 09/19/2008 Wescott Court Portland $4,300,000 43 5.8% $104,878 1926 09/25/2008 Crofton Apts Portland $2,018,000 43 8.3% $48,048 1970 11/06/2008 Overlook Pointe Salem $7,780,000 98 7.0% $79,387 1996 11/12/2008 Patrician Square Milwaukie $4,350,000 74 7.3% $58,784 1974 11/18/2008 Brittany Place Portland $3,750,000 45 6.6% $83,333 2003 11/25/2008 Wellington Estates Tigard $7,400,000 80 7.6% $92,500 1985 12/08/2008 Stonehenge Portland $4,400,000 90 7.3% $48,889 1973 12/16/2008 Powell Court Portland $6,200,000 72 6.3% $86,111 1998 12/23/2008 NOTE: CAP rates reported by CoStar may not represent actual operation of the property, since the assumptions made by the information source to calculate CAP rate may differ from the actual operating data. Sources: CoStar Comps.com and Norris & Stevens Sales