Multifamily Advisory Group East Region WE KNOW LITTLE

Multifamily Advisory Group East RegionWE KNOWLITTLE ROCKSpecialized Real Estate Investment ServicesCOLLIERS familyEast.comMULTIFAMILY ADVISORY GROUPP. 1

WE KNOW WHO YOU AREDillard’s Department Stores, Windstream Communications and Acxiom,Simmons Bank, Bank of the Ozarks, Rose Law Firm, Central Flying Serviceand large brokerage Stephens Inc. are headquartered in Little Rock.Large companies headquartered in other cities but with a large presence inLittle Rock are Dassault Falcon Jet near Little Rock National Airport in theeastern part of the city, Fidelity National Information Services in northwesternLittle Rock, and Welspun Corp in Southeast Little Rock.Little Rock and its surroundings are the headquarters for some of the largestnon-profit organizations in the world, such as Winrock International, HeiferInternational, the Association of Community Organizations for Reform Now,Clinton Foundation, Lions World Services for the Blind, Clinton PresidentialCenter, Winthrop Rockefeller Foundation, FamilyLife, Audubon Arkansas, andThe Nature Conservancy.Associations, such as the American Taekwondo Association, ArkansasHospital Association, and the Quapaw Quarter Association.Arkansas Blue Cross and Blue Shield, Baptist Health Medical Center, Entergy,Dassault Falcon Jet, Siemens, AT&T Mobility, Kroger, Euronet Worldwide,L’Oréal Paris, Timex, and UAMS are employers throughout Little Rock.One of the largest public employers in the state with over 10,552 employees,the University of Arkansas for Medical Sciences (UAMS) and its healthcarepartners — Arkansas Children’s Hospital and the Central Arkansas VeteransHealthcare System—have a total economic impact in Arkansas of about 5billion per year. UAMS receives less than 11% of its funding from the state.Its operation is funded by payments for clinical services (64%), grants andcontracts (18%), philanthropy and other (5%), and tuition and fees (2%).The Little Rock port is an intermodal river port with a large industrial businesscomplex. It is designated as Foreign Trade Zone 14. International corporationssuch as Danish manufacturer LM Glasfiber have established new facilitiesadjacent to the port.P. 2MULTIFAMILY ADVISORY GROUP*Source: https://en.wikipedia.org/wiki/Little Rock, Arkansaswww.ColliersMultifamilyEast.comCOLLIERS INTERNATIONALCOLLIERS AMILY ADVISORY GROUPP. 3

SUPPLY AND DEMANDWE KNOW YOUR MARKETAccording to the Bureau of Labor Statistics, job growth in Little Rock-North Little Rock-Conway, AR Metro Area was 1.7% in July2016, reflecting 5,900 jobs added during a 12-month period. The metro job growth figure was at the national number.Market Survey Results and ForecastsSequentialEffective Rent Per UnitPer Sq. FtEffective Rent Growth - AnnuallyEffective Rent Growth - 2016F2017F2018F2019F2020F 746 742 748 755 760 737 742 756 774 798 818 842 0.83 0.82 0.83 0.84 0.84 0.82 0.82 0.84 0.86 0.89 0.91 92.9%93.4%93.8%94.2%93.8%94.2%Occupancy Change - 5%-0.4%0.5%Occupancy Change - Quarterly0.5%-0.8%-0.1%1.4%Occupancy RateAxiometrics forecasts Little Rock-North Little Rock-Conway, AR Metro Area’s job growth to be 1.4% in 2017, with 4,839 jobs added.Job growth is expected to average 1.2% from 2018 to 2020, with an average of 4,209 jobs added each year.On the supply side, permits for 1,006 multifamily units were issued in the 12 months ending in July 2016, down -136 units from theprior year’s sum. In terms of total residential housing, 2,635 units were permitted in the 12 months ending July 2016, a decrease of-64 units from the prior year’s total.Market Employment and PermittingAnnualEconomic ConcessionsConcession Value -10.59 -13.59 -17.04 -13.10 -12.05 -10.81 -13.12-1.4%-1.8%-2.2%-1.7%-1.6%-1.4%-1.7%As a % of Asking RentJune-16Annual 019F2020FEmployment 368.3373.3Job Gain (000s)2.11.14.75.92,411.05.54.83.54.15.0Job Growth (%)Total Residential PermittingRelative ChangeSingle Family Units PermittedRelative ChangeMultifamily Units 0.52.52.82.4Job Gain / Single Family Units Permitted1.30.83.64.34.1Job Gain / Multifamily Units Permitted1.61.59.69.36.1Relative ChangeMultifamily as a % of TotalDemand/Supply RatioJob Gain / Total Residential Units PermittedRECENT SALESDateProperty NameAddressCityJul-16Oakwood1310 Smithwick DrJun-16Towne Oaks ApartmentsApr-16Colony West ApartmentsMar-16Multifamily Absorption and SupplyAnnualUnitsYear BuiltPrice in /UnitsJacksonville24019716,550,00027,2929300 Treasure Hill RdLittle Rock216197510,080,00046,6671420 Breckenridge DrLittle Rock12619726,300,00050,000Metropolitan75 Riverfront DrNorth LittleRock260200832,015,000123,135Feb-16St Johns Apartments5501 W 65th StLittle Rock22419723,200,00014,286Dec-15Shorter College Garden800 Beech StNorth 0 Marshall se Apartments1200 Brookwood DrLittle Rock261201540,222,576154,109Nov-15Crestwood ManorApartments3802 Kavanaugh BlvdLittle Rock21819669,075,00041,628Oct-15Reserve at Greenwood1602 Green Mountain DrLittle Rock4501975 / 19999,000,00020,000Oct-15Fairfield Apartments1912 Green Mountain DrLittle Rock3371974 / 199919,000,00056,380Oct-15The Berkley Apartments1601 N Shackleford RdLittle Rock2521974 / 199912,600,00050,000Oct-15Warren House/Terrace IIApts.1900-2000 Reservoir RdLittle Rock22319753,600,00016,143Oct-15Valley Crossing Apartments1502 Green Mountain DrLittle Rock21119749,000,00042,654Oct-15Castle Hills3200 Congo RdBenton9619863,000,00031,250Total UnitsAbsorbed2Q16Annual 019F2020F6211,036105917322,4029936679056291,093New y ce: AXIOMetrics. RCAP. 4MULTIFAMILY ADVISORY GROUPwww.ColliersMultifamilyEast.comCOLLIERS INTERNATIONALCOLLIERS AMILY ADVISORY GROUPP. 5

PIPELINEIDENTIFIED SUPPLYAs of September 6, 2016, Axiometrics has identified 646 apartment units scheduled for delivery in 2016, of which, 165 have beendelivered. As a comparison, there were 389 apartment units delivered in 2015. Properties delivered to the market in the last 12 monthshave achieved an average asking rent of 1,112 per unit, or 1.20 per square foot. Effective rent has averaged 1,104, or 1.19 persquare foot, resulting in an average concession value of -7.72. As a comparison, existing properties in the market had an averageasking rent of 768 per unit ( 0.85 per square foot) and an average effective rent of 755 per unit, or 0.84 per square foot, in 2Q16.Concessions for existing properties averaged -13.10.#123NameFountaine Bleau WestBowman PointeVillage at the GatewayStatusUnder ConstructionUnder ConstructionProposedOwnerBurkhalter Technologies Inc.Garth Development LLCFirst Community BankAddress4216 Bowman Rd3321 S Bowman Rd12500 Vimy Ridge RdMarketOuter Southwest/UniversityOutlying WestChicot West I-30 SouthTotal UnitsSource: CoStarUnits100100200400Submarket Delivery SchedulePipeline Delivery SchedulePipeline Lease Up TrendUnits AbsorbedTop SubmarketsNorth Little Rock20142015301Pulaski County/OtherSaline CountyWest84Other78305Little Rock-North Little RockConway, AR3793892016Total108PPMAsking RentEffective RentPer UnitPSFPer UnitPSF409 954 1.05 954 1.05174174 1,091 1.24 1,091 1.2428028010417 1,041 1.10 1,037 1.10841688310 1,155 1.25 1,151 1.2538318712 1,100 1.19 1,096 1.18646Totals1,414*Based on 2016 deliveries*Trend based on a trailing 12 month period213P. 6MULTIFAMILY ADVISORY GROUPwww.ColliersMultifamilyEast.comCOLLIERS INTERNATIONALCOLLIERS AMILY ADVISORY GROUPP. 7

WE CAN HELPAs an investor in multifamily properties, you need afirm that provides experience, broad reach and theability to market an asset no matter how challengingthe economic environment. You need a team thatspecializes in your market you need The East RegionMultifamily Advisory Group.WHO WE AREOne of the largest and mostexperienced teams of multifamilyColliers International has one of the largest andmost experienced teams in the industry, strategicallylocated in key markets throughout North America.Our combination of market dominance, expertise, andsingular focus, make us uniquely successful in helpingour clients achieve their disposition objectives.specialists in the industryHow are we able to bring together the skillsand tools necessary to complete challengingassignments? Our East Region MultifamilyAdvisory Group is connected by purposeand focus. Our team is dedicated to sharinginformation on market opportunities, capitalsources and buyers/sellers to achieve the bestresults for our clients.Dedicated MultifamilyProfessionals & Advisors50MORE THAN20COVERING OVERSTATESExpansive geographic footprint30,000MORE THANUnits sold since 2011 2.0BGroup gross transaction value insince 2011“We were extremely pleased with the East Region team and its ability to attract an incredibleamount of interest in our 3 assets. The number of offers received and the end results exceededour expectations. They have a talented group who was a pleasure to work with. Theirperformance stands out against any of the groups we work with nationally.”Nels Billsten, Vice President CORE Realty Holding ManagementP. 8MULTIFAMILY ADVISORY GROUPwww.ColliersMultifamilyEast.comCOLLIERS INTERNATIONALCOLLIERS AMILY ADVISORY GROUPP. 9

Bob Galamba, CCIM, SIORWill MathewsBrooks ColquittCraig BrownSENIOR VICE PRESIDENT EAST ASSOCIATE EAST REGIONREGIONGabe TovarPRINCIPAL EAST REGIONASSOCIATE EAST REGIONASSOCIATE EAST REGIONINSTITUTIONAL CLIENT GROUPbob.galamba@colliers.comDIR 1 816 556 1152will.mathews@colliers.comDIR 1 404 877 9285brooks.colquitt@colliers.comDIR 1 404 978 2337craig.brown@colliers.comDIR 1 404 978 2336gabe.tovar@colliers.comDIR 1 816 556 1161AT YOUR SERVICETo learn more, scan this with a QR code reader or visit:www.ColliersMultifamilyEast.comP. 10MULTIFAMILY ADVISORY GROUPwww.ColliersMultifamilyEast.comCOLLIERS INTERNATIONAL

Jun-16 Towne Oaks Apartments 9300 Treasure Hill Rd Little Rock 216 1975 10,080,000 46,667 Apr-16 Colony West Apartments 1420 Breckenridge Dr Little Rock 126 1972 6,300,000 50,000 Mar-16 Metropolitan 75 Riverfront Dr North Little Rock 260 2008 32,015,000 123,135 Feb-16 St Johns Apartments 5501 W 65th St Little Rock 224 1972 3,200,000 14,286