Each office is independently owned and operated. Sponsored By: Each office independently owned and operated North Miami Multi-Family 14500 & 14560 NE 6 Ave | North Miami, FL 33160 JOHN DEMARCO, ACP 954-678-8733 [email protected]Priced under market value based on current comparable sales ➢ 82 residential units and 2 commercial NNN tenants ➢ Actual Gross Income $1,213,596 annually, Net Income $881,254 ➢ Actual Capitalization Rate 6.83% ➢ Great Rental Area property maintains 100% occupancy ➢ RE/MAX 5 STAR REALTY 4151 Hollywood Blvd Hollywood, FL 33020 (954) 361-0000
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North Miami Multi-Family - [email protected] Priced under market value based on current comparable sales 82 residential units and 2 commercial NNN tenants Actual Gross
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Each office is independently owned and operated.
Sponsored By:
Each office independently owned and operated
North Miami Multi-Family14500 & 14560 NE 6 Ave | North Miami, FL 33160
Priced under market value based on current comparable sales➢
82 residential units and 2 commercial NNN tenants➢
Actual Gross Income $1,213,596 annually, Net Income $881,254➢
Actual Capitalization Rate 6.83%➢
Great Rental Area property maintains 100% occupancy➢
RE/MAX 5 STAR REALTY4151 Hollywood BlvdHollywood, FL 33020(954) 361-0000
REAL ESTATE INVESTMENT DETAILS14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
EXECUTIVE SUMMARY14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
ACQUISITION COSTS
Purchase Price, Points and Closing Costs $12,900,000
Investment - Cash $0
INVESTMENT INFORMATION
Purchase Price $12,900,000
Price per Unit $108,537
Price per Sq. Ft. $165.67
Income per Unit $14,448
Expenses per Unit ($3,956)
INCOME, EXPENSES & CASH FLOW
Gross Scheduled Income $1,213,596
Total Vacancy and Credits $0
Operating Expenses ($332,342)
Net Operating Income $881,254
Debt Service $0
Cash Flow Before Taxes $881,254
FINANCIAL INDICATORS
Debt Coverage Ratio N/A
Capitalization Rate 6.83%
Gross Rent Multiplier 10.63
Gross Income / Square Feet $15.59
Gross Expenses / Square Feet ($4.27)
Operating Expense Ratio 27.38%
P. 3
PROPERTY DESCRIPTION14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
John DeMarco with Re/Max 5 Star Realty isplease to present the sale of North Miami Multi-Family Complex and Charter School complex. Thisonce-in-a-lifetime investment opportunity consists of116,912 leasable square feet, with 82 largeapartments, and a 15,000 square foot net leasedcommercial Charter school. The retail Charter schoolbuilding is leased to the same operator for the last 12years and has a new 5 year lease in place. They arewell funded and is currently on a 200-child waitinglist. The 82 apartments are 100% leased and also ona waiting list. The average apartment in this buildingrents in days when a vacancy comes up. Theapartment mix consists of 64, 1 bedroom 1 bathapartments, and 18, 2 bedroom 2 bath apartments. All units are in good condition and have very largespacious floorplans.
Excellent multifamily rental area of North Miami. A+ full management services in place,and will stay on after closing. The apartment building is grossing $938,364 per year, and the School isgrossing $257,232. There is additional income of $18,000 from on site laundry facilities. The total grosscombined annual income is $1,1213,596. The total net operating income is $881,254 per year. This propertymaintains 99-100% occupancy rates consistently over the last 20 years. This actual net operating incomeprovides a 6.83% capitalization rate at full asking price.The financial study completed on this propertyallocates $8.9mil for the apartments or $108,536 per residential unit and $4mil for the charter schoolbuilding. This property is being sold for below current market value. Included in this package are comparablesales in the same area showing the average price per unit is $118,425.
There is no major deferred maintenance upcoming. All elevators have just been replaced and are brandnew. Property has ample parking with 153 spaces. Included in this package are comparable rentalcommunities near-by where apartments are leasing for much higher than this property. Managementcontinues to increase rents every turnover and rent increases are averaging 3%-5% per year. When all therents are increased, this will provide an investor with a 8.52% capitalization rate on a pro-forma basis. ThePro-Forma figures included in this package reflect re-assested tax amount.
Please remember to not disturb existing tenants, for additional information contact listing broker.
P. 4
PROPERTY PHOTOS14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
P. 5
Residential Units
Commercial Tenants
MAPS AND AERIALS14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
P. 8
MAPS AND AERIALS14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
P. 9
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Total 65600 · Payroll Expenses 6,250.00 75,000.0065800 · Supplies
65820 · Building - Capital Items P. 10
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
65830 · Appliances & Replacements450.00 5,400.0065840 · AC UNITS 472.46 5,669.5265845 · LOCKS & KEYS50.00 600.0065870 · Tiles 164.54 1,974.48
Total 65820 · Building 1,137.00 13,644.00Total 65800 · Supplies 500.00 6,000.0066100 · Taxes
PRO FORMA SUMMARY14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
UNIT MIX & ANNUAL SCHEDULED INCOME
Type Units Actual Total Market Total
TOTALS 84 $1,186,764 $1,444,032
ANNUALIZED INCOMEActual Market
Gross Potential Rent $1,186,764 $1,444,032
Less: Vacancy $0 $0
Misc. Income $26,832 $26,832
Effective Gross Income $1,213,596 $1,470,864
Less: Expenses ($332,342) ($372,342)
Net Operating Income $881,254 $1,098,522
ANNUALIZED EXPENSES
Actual MarketTotal expenses $332,342 $372,342
Total Expenses $332,342 $372,342
Expenses Per RSF $4.27 $4.78
Expenses Per Unit $3,956 $4,433
INVESTMENT SUMMARY
Price: $12,900,000
Year Built: 1970
Units: 84
Price/Unit: $108,537
RSF: 77,867
Price/RSF: $165.67
Lot Size: 87,025 sf
Floors: 4
APN: 06-2219-000-
Cap Rate: 6.83%
Market Cap Rate: 8.52%
GRM: 10.63
Market GRM: 8.77
P. 12
DEMOGRAPHICS14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
POPULATION 1 MILE 3 MILE 5 MILE
Male N/A N/A 1,620 (47.87 %)
Female N/A N/A 1,764 (52.13 %)
Total Population N/A N/A 3,384
AGE BREAKDOWN 1 MILE 3 MILE 5 MILE
Ages 0-4 N/A N/A 152 (4.49 %)
Ages 5-9 N/A N/A 236 (6.97 %)
Ages 10-14 N/A N/A 241 (6.97 %)
Ages 15-19 N/A N/A 253 (7.48 %)
Ages 20-24 N/A N/A 228 (6.74 %)
Ages 25-29 N/A N/A 232 (6.86 %)
Ages 30-34 N/A N/A 202 (5.97 %)
Ages 35-39 N/A N/A 197 (5.82 %)
Ages 40-44 N/A N/A 206 (6.09 %)
Ages 45-49 N/A N/A 225 (6.65 %)
Ages 50-54 N/A N/A 228 (6.74 %)
Ages 55-59 N/A N/A 217 (6.41 %)
Ages 60-64 N/A N/A 191 (5.64 %)
Ages 65-69 N/A N/A 150 (4.43 %)
Ages 70-74 N/A N/A 112 (3.31 %)
Ages 75-79 N/A N/A 84 (2.48 %)
Ages 80-84 N/A N/A 56 (1.65 %)
Ages 85+ N/A N/A 174 (5.14 %)
P. 13
DEMOGRAPHICS14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
Median Income N/A N/A $37,650
Less than $10,000 N/A N/A 137
$10,000 -$14,999 N/A N/A 130
$15,000 - $19,999 N/A N/A 131
$20,000 -$24,999 N/A N/A 79
$25,000 - $29,999 N/A N/A 61
$30,000 - $34,999 N/A N/A 72
$35,000 - $39,999 N/A N/A 45
$40,000 - $44,999 N/A N/A 101
$45,000 - $49,999 N/A N/A 51
$50,000 - $59,999 N/A N/A 88
$60,000 - $74,999 N/A N/A 110
$75,000 - $99,999 N/A N/A 214
$100,000 - $124,999 N/A N/A 93
$125,000 - $149,999 N/A N/A 78
$150,000 - $199,999 N/A N/A 1
Greater than $200,000 N/A N/A 46
HOUSING 1 MILE 3 MILE 5 MILE
Housing Units N/A N/A 1,793
Occupied Units N/A N/A 1,626
Owner Occupied Units N/A N/A 1,104
Renter Occupied Units N/A N/A 522
Vacant Units N/A N/A 167
RACE DEMOGRAPHICS 1 MILE 3 MILE 5 MILE
Population Non Hispanic White N/A N/A 3,355
Population Black N/A N/A 1
Population Am In/Ak Nat N/A N/A N/A
P. 14
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
1 8951 NE 8th Ave - Biscayne Shores (Part of Multi-Property) SOLDMiami Shores, FL 33138 Miami/Dade County
Shores United LLCRecorded Buyer: Recorded Seller: Noden Properties Ltd., Inc.PO Box 219Lawrence, NY 11559
30-2229-113-0010Down payment of $14,026,000 (26.6%); $38,674,000 from CBRE Capital Markets Inc: due in 7 yrs
Confirmed
Class B Multi-FamilyApartmentsBuilt 2013 Age: 2289,710 SF
--
GRM/GIM: -
# of Units: 240Price/Unit: $219,583Price/SF:
3628327Comp ID:
3 1490 NE 123rd St - Avesta Biscayne SOLDNorth Miami, FL 33161 Miami/Dade County
1490 North 123rd LLCRecorded Buyer: Recorded Seller: WRPV XI Watermarke Miami, L.L.C.5118 N 56th StTampa, FL 33610
True Buyer: Avesta Acquisition LLC
30 S Wacker DrChicago, IL 60606Waterton Associates LLCTrue Seller:
Sale Date:
– Research Status:
PrFrma Cap Rate:
Sale Price:
Actual Cap Rate:
$182.58$61,750,000 - Confirmed01/27/2017 (122 days on mkt) Bldg Type:
Zoning:Sale Conditions:
Year Built/Age:GBA:
5.20%5.00%
Parcel No:Financing:
06-2229-083-0012, 06-2229-083-0015, 06-2229-083-0040, 06-2229-083-0050 [Partial List]Down payment of $13,350,000 (21.6%)
Confirmed
Class B Multi-FamilyApartmentsBuilt 1989 Renov 2003 Age: 28338,200 SF
PUD, North Miami-
GRM/GIM: -
# of Units: 402Price/Unit: $153,607Price/SF:
3827366Comp ID:
Map Page: Trakker 24-BB6
Copyrighted report licensed to Re/Max 5 Star Realty - 746067. 9/27/2017
Page 1
P. 15
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
4 12 NE 188th St - Cottage Cove SOLDMiami, FL 33179 Miami/Dade County
Marlin Spring Realty LimitedRecorded Buyer: Recorded Seller: ANF Miami Gardens, LLC
True Buyer: Marlin Spring
2665 S Bayshore DrMiami, FL 33133TM Real Estate Group, LLCTrue Seller:
30-2101-037-0570, 30-2101-037-0580, 30-2101-037-0590, 30-2101-037-0600 [Partial List]Down payment of $11,800,000 (23.6%); $38,200,000 from Capital One Multifamily Finance, LLC
Confirmed
Class C Multi-FamilyApartmentsBuilt 1969 Age: 48318,945 SF
06-2221-023-0010$89,960,000 from Wells Fargo Bank: due in 10 yrs
Confirmed
Class A Multi-FamilyApartmentsBuilt 1974 Renov 2003 Age: 42656,013 SF
PUD, North Miami-
GRM/GIM: -
# of Units: 869Price/Unit: $134,948Price/SF:
3653116Comp ID:
6 19680 E Country Club Dr - Promenade at Aventura Apartments (Part of Portfolio) SOLDAventura, FL 33180 Miami/Dade County
Starwood Capital GroupTrue Buyer: True Seller: Equity Residential591 W Putnam AveGreenwich, CT 06830(203) 422-7700
2 N Riverside PlzChicago, IL 60606(312) 474-1300
Sale Date:
– Research Status:
PrFrma Cap Rate:
Sale Price:
Actual Cap Rate:
$180.96$59,485,936 - Allocated01/26/2016 (92 days on mkt) Bldg Type:
Zoning:Sale Conditions:
Year Built/Age:GBA:
--
Parcel No:Financing: -
Allocated
Class B Multi-FamilyApartmentsBuilt 1994 Age: 22328,724 SF
RMF 4Bulk/Portfolio Sale
GRM/GIM: -
# of Units: 296Price/Unit: $200,966Price/SF:
3501162Comp ID:
Copyrighted report licensed to Re/Max 5 Star Realty - 746067. 9/27/2017
Page 2
P. 16
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Copyrighted report licensed to R
e/Max 5 S
tar Realty - 746067.
9/27/2017
Page 3
P. 17
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Dollar Volume
Legend:
Current SurveySold Transactions 6
$351,148,436Number of TransactionsTotal Dollar Volume
2,000,79875.59
Total Bldg Square FeetTotal Land in Acres
3,292,7002,359
Total Land in SFTotal Units
$58,524,739333,466
Average PriceAverage Number of SF
$175.50$179.66
Average Price Per Bldg SFMedian Price Per SF
12.60548,783
Average Number of AcresAverage Number of SF(Land)
$148,855$144,278
Average Price Per UnitMedian Price Per Unit
3935.38%
Average Number of UnitsActual Cap Rate
SoldTransactions
-Average GRM-Average GIM
Time Interval - Quarterly
Report Time Frame: 1/1/2016 - 9/27/2017
Trend Report
Copyrighted report licensed to Re/Max 5 Star Realty - 746067. 9/27/2017
Page 4
P. 18
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Trend Report
Sold Transaction Sold Transaction
1Q16 01/1-3/31/16 3Q16 07/1-9/30/16
Number of TransactionsTotal Dollar VolumeTotal Bldg Square FeetTotal Land in AcresTotal Land in SFTotal UnitsAverage PriceAverage Number of SFAverage Price Per Bldg SFMedian Price Per SFAverage Number of AcresAverage Number of SF(Land)Average Price Per UnitMedian Price Per UnitAverage Number of UnitsActual Cap RateAverage GRMAverage GIM
2Q16 04/1-6/30/16 1Q17 01/1-3/31/17
Sold TransactionSold Transaction
1$59,485,936
328,72410.90
474,804296
$59,485,936328,724$180.96$180.96
10.90474,804
$200,966$200,966
296---
2$62,912,500
358,91611.05
481,338326
$31,456,250179,458$175.28$164.74
5.53240,669
$192,983$169,167
1635.00%
--
1$117,000,000
656,01323.12
1,007,107867
$117,000,000656,013$178.35$178.35
23.121,007,107$134,948$134,948
8675.50%
--
1$61,750,000
338,20010.95
476,982402
$61,750,000338,200$182.58$182.58
10.95476,982
$153,607$153,607
4025.00%
--
2Q17 04/1-6/30/17
Number of TransactionsTotal Dollar VolumeTotal Bldg Square FeetTotal Land in AcresTotal Land in SFTotal UnitsAverage PriceAverage Number of SFAverage Price Per Bldg SFMedian Price Per SFAverage Number of AcresAverage Number of SF(Land)Average Price Per UnitMedian Price Per UnitAverage Number of UnitsActual Cap RateAverage GRMAverage GIM
Sold Transaction
1$50,000,000
318,94519.57
852,469468
$50,000,000318,945$156.77$156.77
19.57852,469
$106,838$106,838
4686.00%
--
Copyrighted report licensed to Re/Max 5 Star Realty - 746067. 9/27/2017
Page 5
P. 19
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Haitian Youth and Community Center
Haitian Youth and Community Center
(HYCCF), Inc. is a not-for-profit 501 (c) 3
membership organization that provides a
variety of services, including after school
care, summer programs, youth services,
child care services, and Family and
Community Partnership
HYCCF operates a nationally accredited
child care center that provides
comprehensive child development
services to children and families in the community.
HYCCF/Early Step Learning Centers are licensed to serve one
hundred and eighty-eight (188) children.
HYCCF uses the same facility and resources that has enabled
its’ Head Start child care program to achieve a great deal of success.
HYCCF is in the community that it has served for the past ten (12)
years.
During this time, HYCCF has successfully engaged over 2000 people
through community outreach and collaboration with other
prominent organizations that serve Haitian children and their
families in Miami.
HYCCF has experience in developing and operating community
enhancement programs that meet the identified needs of the people
it serves. P. 20
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
“For 12 Years, Haitian Youth has provided Childhood services for
children and families including those with disabilities and
community service learning.
We also provide information and referral, advocacy services,
legal referral. We address many concerns such as education
and employment, equal access and community placement.”
Haitian Youth and Community Center of Florida, Inc. Is a
state and federally funded not– for profit corporation.
“Our mission is to strengthen and enhance Haitian Americans
individuals, as well as their family in South Florida by
providing opportunities for Haitian Americans to engage in
charitable, educational, recreational and community activities.”
P. 21
ANNUAL PROPERTY OPERATING DATA14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Description Year 1 Year 2 Year 3 Year 4 Year 5
Rental Income $1,186,764 $1,222,367 $1,259,038 $1,296,809 $1,335,713
Other $26,832 $26,832 $26,832 $26,832 $26,832
GROSS SCHEDULED INCOME $1,213,596 $1,249,199 $1,285,870 $1,323,641 $1,362,545
GROSS OPERATING INCOME $1,213,596 $1,249,199 $1,285,870 $1,323,641 $1,362,545
Expenses
Total expenses ($332,342) ($332,342) ($332,342) ($332,342) ($332,342)
TOTAL OPERATING EXPENSES ($332,342) ($332,342) ($332,342) ($332,342) ($332,342)
NET OPERATING INCOME $881,254 $916,857 $953,528 $991,299 $1,030,204
P. 22
CUMULATIVE WEALTH ANALYSIS14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
LOCATION MAP14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
P. 25
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
State of the U.S. Multifamily Market
Q3 2016 Review and Forecast
P. 26
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Agenda
Macro Overview
Apartment Market Fundamentals
Apartment Rent Trends
Capital Markets
P. 27
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Macro Overview
P. 28
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Real GDP Growth (SAAR)
Sources: BEA; CoStar Portfolio Strategy As of 16Q4
2.9%
(6%)
(4%)
(2%)
0%
2%
4%
6%
11 12 13 14 15 16
GDP Growth
P. 29
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
GDP Growth by Sector
Sources: BEA; CoStar Portfolio Strategy As of 16Q4
(6%)
(4%)
(2%)
0%
2%
4%
6%
11 12 13 14 15 16
Contribution to GDP Growth
P. 30
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
GDP Growth by Sector: Net Exports
Sources: BEA; CoStar Portfolio Strategy As of 16Q4
(6%)
(4%)
(2%)
0%
2%
4%
6%
11 12 13 14 15 16
Contribution to GDP Growth
P. 31
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
GDP Growth by Sector: Business Investment
Sources: BEA; CoStar Portfolio Strategy As of 16Q4
(6%)
(4%)
(2%)
0%
2%
4%
6%
11 12 13 14 15 16
Contribution to GDP Growth
P. 32
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
GDP Growth by Sector: Government
Sources: BEA; CoStar Portfolio Strategy As of 16Q4
(6%)
(4%)
(2%)
0%
2%
4%
6%
11 12 13 14 15 16
Contribution to GDP Growth
P. 33
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
GDP Growth by Sector: Residential Investment
Sources: BEA; CoStar Portfolio Strategy As of 16Q4
(6%)
(4%)
(2%)
0%
2%
4%
6%
11 12 13 14 15 16
Contribution to GDP Growth
P. 34
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Too Much Supply? Or Not Enough…
31-Mar-65
30-Jun-65
30-Sep-65
31-Dec-65
31-Mar-66
30-Jun-66
30-Sep-66
31-Dec-66
31-Mar-67
30-Jun-67
30-Sep-67
31-Dec-67
31-Mar-68
30-Jun-68
30-Sep-68
31-Dec-68
31-Mar-69
30-Jun-69
30-Sep-69
31-Dec-69
31-Mar-70
30-Jun-70
30-Sep-70
31-Dec-70
31-Mar-71
30-Jun-71
30-Sep-71
Source: Census Bureau; CoStar. Current totals are annualized based on prior years. As of November 2016
Total New Housing Construction (000s of Housing Units)
Average: 1,419,000 new units per year
P. 35
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Too Much Supply? Or Not Enough…
31-Mar-65
30-Jun-65
30-Sep-65
31-Dec-65
31-Mar-66
30-Jun-66
30-Sep-66
31-Dec-66
31-Mar-67
30-Jun-67
30-Sep-67
31-Dec-67
31-Mar-68
30-Jun-68
30-Sep-68
31-Dec-68
31-Mar-69
30-Jun-69
30-Sep-69
31-Dec-69
31-Mar-70
30-Jun-70
30-Sep-70
31-Dec-70
31-Mar-71
30-Jun-71
30-Sep-71
Source: Census Bureau; CoStar. Current totals are annualized based on prior years. As of November 2016
Total New Housing Construction (000s of Housing Units) and Change in Households
P. 36
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Too Much Supply? Or Not Enough…
31-Mar-65
30-Jun-65
30-Sep-65
31-Dec-65
31-Mar-66
30-Jun-66
30-Sep-66
31-Dec-66
31-Mar-67
30-Jun-67
30-Sep-67
31-Dec-67
31-Mar-68
30-Jun-68
30-Sep-68
31-Dec-68
31-Mar-69
30-Jun-69
30-Sep-69
31-Dec-69
31-Mar-70
30-Jun-70
30-Sep-70
31-Dec-70
31-Mar-71
30-Jun-71
30-Sep-71
Source: Census Bureau; CoStar. As of November 2016
Trailing 5-Year Housing Construction less Household Formation
Too much housing relative to household formation over previous 5 years
Not enough housing relative to household formation over previous 5 years
P. 37
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Apartment Market Fundamentals
P. 38
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Homeownership Ticked Up In The Third Quarter
60
60
60
60
61
61
61
61
62
62
62
62
63
63
63
63
64
64
64
64
65
65
65
65
66
66
Sources: Moody's Analytics; U.S. Census Bureau (CPS/HVS); CoStar Portfolio Strategy As of 16Q3
Increase in Renter HH's : 10.3MIncrease due to HH Formation: 3.5M
Increase due to Change in H.O. Rate: 6.8M
P. 39
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Today’s Renters Likely To Have Gray Hair
25-34
35-44
45-54
55-64
65-74
75+
Source: Housing Vacancy Survey Census Bureau; CoStar Portfolio Strategy As of 2015
0
2
4
6
8
10
12
25-34 35-44 45-54 55-64 65-74 75+
2006 2015
1.2 mil.Households
Renter Households By Age Cohort (Millions)
2.1 mil.Households
1.4 mil.Households
1.1 mil.Households
2.0 milHouseholds
450 ths.Households
P. 40
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Potential Upside Demand For Institutional Landlords?
Renter-occupied housing units:
41423632
114271804
Renter HouseholdsSingle Family or Non-CRE
2185843055.1%
Sources: U.S. Census ACS Survey; CoStar Portfolio Strategy As of 2015
55.1%
44.9%
20%
30%
40%
50%
60%
70%
0
5
10
15
20
25
Single Family or Non-CRE 5+ Units
Renter Occupied Households (Millions) % Of Renter Occupied
# Of Renter Households By Unit Type % Of All Renter Households By Unit Type
P. 41
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Petula Clark Was Right: “Downtown”….
CBD
Urban
Suburban
Sources: Neustar; CoStar Portfolio Strategy As of 16Q4
**Analysis limited to National Index (54 major metros)
CBDSecondary Core
Urban
Prime Suburban
Suburban
(1.0%)
(0.8%)
(0.6%)
(0.4%)
(0.2%)
0.0%
0.2%
0.4%
0.6%
4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
Change In Share Of Renter Households (2010-16Q4)
Percentage Growth Of Renter Households (2010-16Q4)
Bu
bb
leS
ize
De
no
tes
# O
f R
en
ter
Ho
us
eh
old
s In
1
6Q
4
P. 42
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
National Apartment Supply (54 Largest U.S. Metros)
Tier I Tier II Tiers III & IV Historical Average 2001-16
Supply (000s)
P. 44
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Supply Growth Snapshot (16Q3-17Q4)
Rank1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Source: CoStar Portfolio Strategy As of 16Q3
0%
1%
2%
3%
4%
5%
6%
7%
8%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Ne
w Y
ork
Da
llas
Ho
usto
n
Los A
ngele
s
Washin
gto
n, D
C
Sea
ttle
Atlan
ta
De
nver
Bosto
n
Ch
icago
Austin
Ch
arlotte
Na
shvill
e
Mia
mi
San
An
tonio
Ora
ng
e C
ounty
Tam
pa
Pho
enix
Kan
sas C
ity
Port
land,
OR
San
Jose
Fort
Laud
erd
ale
San
Fra
ncis
co
Orlando
Co
lum
bus
Completions As A % Of InventorySouth East Midwest West
New Supply (As % of Inventory)New Supply (Units)
P. 45
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Does Los Angeles Need More Supply?
1
2
3
4
5
6
7
8
9
10
xx
Source: CoStar Portfolio Strategy As of 16Q3
0%
2%
4%
6%
8%
10%
12%
2012 2013 2014 2015 2016 2017
Cumulative Supply Growth
Memphis
Sacramento
National Index
Inland EmpireLos Angeles
Las Vegas
Detroit
East BayCleveland
P. 46
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Lease Up Takes Time
3/31/20006/30/20009/30/2000
12/31/20003/31/20016/30/20019/30/2001
12/31/20013/31/20026/30/20029/30/2002
12/31/20023/31/20036/30/20039/30/2003
12/31/20033/31/20046/30/20049/30/2004
12/31/20043/31/20056/30/20059/30/2005
12/31/20053/31/20066/30/20069/30/2006
12/31/2006
Source: CoStar Portfolio Strategy As of 16Q3
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
10.0%
08 09 10 11 12 13 14 15 16
Overall Vacancy 4 & 5 Star 3 Star 1 & 2 Star
Vacancy
P. 47
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Market Scorecard: Year-Over-Year Vacancy Change
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Source: CoStar Portfolio Strategy As of 16Q3
*Historical Average Since 2001
(150)
(100)
(50)
0
50
100
150
200
Salt L
ake C
ity
San
An
tonio
Ha
rtfo
rdS
an
Die
go
Long I
sla
nd
Min
nea
polis
Orlando
Sea
ttle
Bosto
nIn
dia
na
polis
San
Jose
De
nver
Da
llas -
FW
No
rthern
NJ
Sacra
mento
Ho
nolu
luR
ichm
ond
Austin
Tam
pa
Co
lum
bus O
HK
an
sas C
ity
Pho
enix
De
troit
Ra
leig
hN
ew
York
Ne
w O
rlean
sC
levela
nd
Mia
mi
Cin
cin
nati
Jacksonvill
eS
tam
ford
Las V
egas
Inla
nd E
mpire
Atlan
taW
ashin
gto
n, D
CE
ast
Bay
No
rfolk
Ora
ng
e C
ounty
Los A
ngele
sC
harlotte
Sain
t Louis
Milw
aukee
Phila
delp
hia
Mem
phis
Ch
icago
San
Fra
ncis
co
Na
shvill
eB
altim
ore
Pitts
burg
hP
ort
land O
RF
ort
Laud
erd
ale
Palm
Be
ach
Okla
hom
a C
ity
Ho
usto
n
Below Historical Avg. Above Historical Avg.
One Year Vacancy Change (BPS)
P. 48
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
High Supply Growth* Submarkets Have More Coming
30
29
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
Source: CoStar Portfolio Strategy As of 16Q3
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
NEWY - Jersey City Waterfront
DALL - Plano
AUST - South
KANS - Johnson County KS
HOUS - Cinco Ranch
DALL - East Dallas
RALE - Central Raleigh
NEWY - Midtown West
HOUS - Northwest Houston
DALL - Farmers Branch/Addison
HOUS - Briar Forest/West Memorial
LOSA - Downtown Los Angeles
SANA - Northwest Side
NASH - West End/CBD
ATLA - Downtown/Midtown
DALL - Uptown/Park Cities
DENV - Downtown/Cherry Creek
ATLA - Buckhead-Brookhaven
HOUS - Neartown/River Oaks
CHIC - Downtown Chicago
Units Delivered Units Under Construction
Units Delivered And Under Construction
*Units Delivered 14Q4-16Q3, Under Construction As of 16Q3
P. 49
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Largest Vacancy Changes By Submarket (Y/O/Y)
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Source: CoStar Portfolio Strategy As of 16Q3
*Includes submarkets with at least 5,000 units.
3.1%
3.2%
3.3%
3.3%
3.4%
3.4%
3.4%
3.4%
3.6%
3.7%
4.0%
4.1%
4.2%
4.5%
5.2%
5.7%
6.5%
6.9%
10.1%
10.1%
0% 5% 10% 15%
BALT - Harford County
PITT - Central Pittsburgh
WASH - Reston-Herndon Corridor
HOUS - Pearland
BOST - Quincy/Milton/Randolph
SEAT - Lake Union
AUST - Southeast
HOUS - Westchase/Woodlake
NEWY - Staten Island
HOUS - Alief
PALM - Boca Raton
CHIC - Downtown Chicago
OKLA - Central Oklahoma City
BALT - North Baltimore City
HOUS - Greenspoint/IAH Airport
CHAR - Southpark/Myers Park
SANF - South Of Market
NASH - West End/CBD
PHIL - Art Museum
WASH - Southwest/Navy Yard
(3.3%)
(3.3%)
(3.4%)
(3.5%)
(3.5%)
(3.7%)
(3.7%)
(3.8%)
(4.0%)
(4.1%)
(4.2%)
(4.6%)
(4.6%)
(4.7%)
(4.8%)
(5.2%)
(6.5%)
(7.9%)
(8.0%)
(9.1%)
(15%) (10%) (5%) 0%
DALL - Allen/McKinney
MIAM - Coral Gables
DENV - Highlands/Lone Tree
COLU - Downtown
AUST - Downtown/University
WASH - Ashburn/Sterling
BOST- Harvard/Cambridge
WASH - Falls Church/Vienna
SEAT - Kirkland
BOST - Everett/Malden
ORLA - Osceola County
NEWO - St Tammany Parish
WASH - H Street/NoMa
ATLA - Buckhead-Brookhaven
DENV - DTC/Southeast Corridor
ATLA - Cherokee County
HOUS - Cinco Ranch
SAND - Downtown
OKLA - Moore
SANJ - North San Jose
Largest Vacancy Increase Largest Vacancy Decrease
P. 50
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Rents
P. 51
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
What’s The Rent in This Building?
1111111111111111111111111111111
Source: CoStar. Property ID 4691943 As of March 2016
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
How To Make A Same-Store Rent Series
— Interpolate between data points
— Assume rents followed building—or market—trend before first datapoint and after last datapoint
— Estimate rents in models that don’t have ANY data
P. 55
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Relationship of Rents at Unit Type to Each Other
55 potential coefficients to estimate(1 bed 1 bath to 1 bed 2 bath, etc.)
Studio1 Bed1 Bath
1 Bed2+ Bath
2 Bed1 Bath
2 Bed2 Bath
2 Bed3+ Bath
3 Bed1 Bath
3 Bed2 Bath
3 Bed3+ Bath
4 Bed2 Bath
4 Bed3+ Bath
Possible Coefficients between all unit types
P. 57
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Model Another Number and Estimate Based on That
11 potential coefficients to estimate
Studio1 Bed1 Bath
1 Bed2+ Bath
2 Bed1 Bath
2 Bed2 Bath
2 Bed3+ Bath
3 Bed1 Bath
3 Bed2 Bath
3 Bed3+ Bath
4 Bed2 Bath
4 Bed3+ Bath
µ
P. 58
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Example: Estimating a Unit Type Which Has No Data
The unit types that we observe are used to predict µ, based on theirobserved coefficients
1 Bed1 Bath
1 Bed2+ Bath
2 Bed1 Bath
2 Bed2 Bath
2 Bed3+ Bath
µ
µ is used to predict the remaining unit type, based on its predicted coefficient, from the submarket-slice
P. 59
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Equations for µ, the Coefficients, and the Estimates
P. 60
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
1111111111111111111111111111111
Source: CoStar. Property ID 4691943 As of March 2016
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Sacramento Rent Data
AR Data
PropertyID
841302
1593865
4062347
4115560
7761475
4411690
7761475
7761475
4411690
4062003
7762534
4106521
4115560
4683162
7761475
7762534
5897524
5897524
4341184
850078
850078
7768831
7761670
7762467
742121
5881201
4494520
1593865
Source: CoStar As of November 2016
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2011 2012 2013 2014 2015 2016
Rents in Outer Carmichael/Citrus Heights Submarket
CoStar Research collects data by actively reaching out to communities
P. 63
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Sacramento Rent Data
AR Data
PropertyID
841302
1593865
4062347
4115560
7761475
4411690
7761475
7761475
4411690
4062003
7762534
4106521
4115560
4683162
7761475
7762534
5897524
5897524
4341184
850078
850078
7768831
7761670
7762467
742121
5881201
4494520
1593865
Source: CoStar As of November 2016
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2011 2012 2013 2014 2015 2016
Rents in Outer Carmichael/Citrus Heights Submarket
Community Callers collect rent information as potential renters
P. 64
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Sacramento Rent Data
AR Data
PropertyID
841302
1593865
4062347
4115560
7761475
4411690
7761475
7761475
4411690
4062003
7762534
4106521
4115560
4683162
7761475
7762534
5897524
5897524
4341184
850078
850078
7768831
7761670
7762467
742121
5881201
4494520
1593865
Source: CoStar As of November 2016
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2011 2012 2013 2014 2015 2016
Rents in Outer Carmichael/Citrus Heights Submarket
Automated Data Collection uses web scraping technology to collect high-frequency rent observations
P. 65
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Sacramento Rent Data
P. 66
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
San Francisco Rent Data
P. 68
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Houston Rent Data
P. 69
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Change in Rent Growth
SANFSANJEASTPORTDENVHOUSPALMBOSTAUSTORLA
ZPPR54
INLANORFMINNDETRLONGORANMILWINDISALTMEMP
Source: CoStar As of November 2016
(4%)
(2%)
0%
2%
4%
6%
8%
10%
12%
14%
San
Fra
ncis
co
San
Jose
East
Bay
Port
land O
R
De
nver
Ho
usto
n
Palm
Be
ach C
ounty
Bosto
n
Austin
Orlando
Na
tional In
dex
Inla
nd E
mpire
No
rfolk
Min
nea
polis
De
troit
Long I
sla
nd
Ora
ng
e C
ounty
Milw
aukee
India
na
polis
Salt L
ake C
ity
Mem
phis
Change in Same-Store Rent Growth, 2014Q3—2015Q3 v. 2015Q3—2016Q3
Markets where rent growth has slowed the most Markets where rent growth has slowed the least
P. 70
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Capital Markets
P. 71
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Sales Volume Last Four Quarters Remains Strong
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
previous
Y/Y Change
Source: CoStar Group As of 16Q3
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Hospitality Industrial Office Multi-Family Retail
Sales Volume (Billions)
Sales Volume Y/Y Change
Y/Y Change In Sales Volume
P. 72
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Investors Continue To Flock To Apartment
Atlanta
Austin
Baltimore
Boston
Charlotte
Chicago
Cincinnati
Cleveland
Columbus OH
Dallas - FW
Denver
Detroit
East Bay
Hartford
Honolulu
Houston
Indianapolis
Inland Empire
Jacksonville
Kansas City
Las Vegas
Long Island
Los Angeles
Memphis
Miami
Milwaukee
Minneapolis
Nashville
Source: CoStar Group As of 16Q3
*Apartment share of commercial property sales including apartment, light industrial/light manufacturing, logistics, office, and retail properties.
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Are Apartment Capital Markets Peaking?
67
66
65
64
63
62
61
60
59
58
57
56
55
54
53
52
51
50
49
48
47
46
45
44
43
42
41
40
Source: CoStar Group As of 16Q3
0
1
2
3
4
5
6
7
8
9
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$10
$20
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05 06 07 08 09 10 11 12 13 14 15 16
Sales Volume (Billions)
Quarterly Sales Volume Number Of Buildings Sold
Number Of Buildings Sold (000s)
P. 74
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Sustained Price Growth Across All Regions
07
07
07
07
08
08
08
08
09
09
09
09
10
10
10
10
11
11
11
11
12
12
12
Source: CoStar Portfolio Strategy As of 16Q3
$0
$50,000
$100,000
$150,000
$200,000
$250,000
07 08 09 10 11 12 13 14 15 16
Price Per Unit (Four-Quarter Rolling Average)
East South Midwest West National Index
P. 75
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Recent Price Appreciation Strongest In West Coast Metros
Cleveland
Long Island
Miami
Palm Beach
Hartford
Denver
Honolulu
Las Vegas
Phoenix
San Jose
East Bay
Richmond
Jacksonville
Raleigh
Austin
Baltimore
San Diego
Charlotte
Portland OR
Columbus OH
Nashville
Northern NJ
Minneapolis
Source: CoStar Portfolio Strategy As of 16Q3
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Y/Y Price Growth
South East Midwest West
DecreaseIncrease
P. 76
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Premium For Newer Assets Varies By Metro
Cleveland
Chicago
Memphis
Saint Louis
Milwaukee
Kansas City
Northern NJ
Boston
Nashville
Jacksonville
Indianapolis
Tampa
Pittsburgh
Cincinnati
Minneapolis
Charlotte
Philadelphia
Houston
San Diego
Palm Beach
Seattle
Phoenix
San Antonio
Hartford
Dallas - FW
Source: CoStar Portfolio Strategy As of 16Q3
$0
$125
$250
$375
$500
$625
$750
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50%
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Premium
Built 2000-16 Built 1970-99 Premium
Average Price Per Unit (000s)
P. 77
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Select Top Multifamily Deals – 3Q 2016
Savoy Park
New York, NY
A joint venture comprised of L&M
Development Partners and Savanna sold
the 1,790-unit apartment community to
Fairstead Capital for $315 Million or
$176K/unit.
LIV Apartments
Bellevue, WA
Goodman Real Estate, Inc. sold the 451-
unit apartment community to Kennedy-
Wilson Properties, Ltd. for $172 Million or
$381K/unit.
Cap Rate: 4.7%
Axion Tustin
Tustin, CA
AvalonBay Communities, Inc. sold
the 628- unit community to Raintree
Partners for $163.55 Million or
$260K/unit.
Cap Rate: 4.94%
The Residence Buckhead Atlanta
Atlanta, GA
Oliver McMillan sold the 370-unit
community to Simpson Housing for
$136.5 Million or $369K/unit.
Pro-Forma Cap Rate: 5.6%
Century Summerfield @ Morgan Metro
Landover, MD
Camden Property Trust sold the 478-unit
community to Centennial Holding
Company, LLC for $110 Million or
$230K/unit.
Cap Rate: 6%
One East Delaware
Chicago, IL
Waterton Associates, LLC sold the 306-
unit community to a joint venture
comprised of Golub & Company and
Alcion Ventures for $146 Million or
$477K/unit.
Cap Rate: 4.75%
P. 78
14500 & 14560 NE 6 Ave | North Miami, FL 33160
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.