market study · 2014 appraisal research counselors certification we certify that, to the best of...

2014 Appraisal Research Counselors www.AppraisalResearch.com

Market Study

For

Proposed Rental Apartment Development at

York and Hahn Elmhurst, DuPage County, IL

As of

June 2014

For

Ms. Mary Ellen Martin Morningside Group

223 West Erie Street, 3rd Floor Chicago, IL 60654

Prepared By

Appraisal Research Counselors 400 East Randolph Street, Suite 715

Chicago, Illinois 60601

400 EAST RANDOLPH STREET, SUITE 715 CHICAGO, ILLINOIS 60601-7388

312-565-0977

FAX 312-565-3436

www.appraisalresearch.com

Eugene W. Stunard, MAI Joan A. Stunard James K. Kutill Gail L. Lissner, CRE, SRA Ron DeVries, MAI, FRICS Jacoub M. Hussien, SRA Ronald W. Casper, MAI Peter H. Gloodt, MAI Erwin C. Wirth, SRA Daniel R. Graver _________________________________ William H. Miller Albany, New York Cary A. Lannin Northwest Indiana Denise R. Navetta Central Illinois _________________________________ Betty Bogie Long (1932-2005)

Julie A. Kluczynski Joyce A. Marquez Margarita Lopez David Dunne Mary D. Washington Michael W. Wingader Helen Liang-Gee Jennifer A. Ochab Gary J. Wager Stephanie L. Doyle Timothy J. Bailey Mark A. Brenner Rebecca Franklin Anne F. Gompel James T. O’Leary Kelly S. Jones Jeanne M. Ninchich Virginia C. Evely Mark D. Lindsay David G. Ibarra Scott B. Rogers Alexander Jaunius Brian J. Germanowski Patrick J. McCauley

OFFICE • RETAIL • INDUSTRIAL • MULTI-FAMILY • SENIOR CARE • HOSPITALITY • LAND • SPECIAL-USE CONDOMINIUMS • SINGLE FAMILY • COOPERATIVES • NEIGHBORHOOD PROPERTIES

APPRAISALS ~ MARKET RESEARCH ~ FEASIBILITY STUDIES ~ COUNSELING

PROFESSIONAL SERVICE SINCE 1968

July 9, 2014 Ms. Mary Ellen Martin Morningside Group 223 West Erie Street, 3rd Floor Chicago, IL 60654

RE: The proposed rental apartment development at York and Hahn, Elmhurst, DuPage County, IL

Dear Ms. Martin:

In accordance with your request, we have prepared a market study regarding the proposed rental apartment property.

Information for this report was researched with property inspections and conversations with brokers, developers, lenders, investors, managers, and leasing agents involved in the Suburban Chicago apartment market.

As you are aware, on a quarterly basis since 2005, we have also researched and authored the Appraisal Research Counselors Suburban Chicago Apartment Benchmark Report, a comprehensive report covering the rental markets for Suburban Chicago. This ongoing work, with our database going back 40+ years, well positions us to analyze and understand market trends specific to the proposed project.

Ms. Mary Ellen Martin RE: York and Hahn (proposed rental apartments), Elmhurst, IL July 9, 2014 – Page 2

2014 Appraisal Research Counselors

www.AppraisalResearch.com

Should you have any questions about this report or desire further consultations as you decide to move forward, please do not hesitate to call us directly.

Sincerely,

Appraisal Research Counselors Ron DeVries, MAI, FRICS, Vice President Gail L. Lissner, CRE, SRA, Vice President 3-15253B


CERTIFICATION

We certify that, to the best of our knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions (see following page), and are our personal, unbiased professional analyses, opinions and conclusions. We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved.

Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. We are experienced and competent in appraising this property type.

To the best of our knowledge and belief, the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of (1) the minimum appraisal standards effective June 7, 1994 under Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989, (2) the Uniform Standards of Professional Appraisal Practice (USPAP), and (3) the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to its review by duly authorized representatives. As of the date of this report, Eugene W. Stunard, MAI, Ron DeVries, MAI, FRICS, Gail Lissner, CRE, SRA, Ronald W. Casper, MAI, Jacoub M. Hussien, SRA, Peter H. Gloodt, MAI, and Erwin C. Worth, SRA have completed the requirements of the continuing education program of the Appraisal Institute. No one provided significant real property appraisal assistance to the person(s) signing this certification.

Gail Lissner, CRE, SRA inspected the site. Ron DeVries, MAI, FRICS inspected the site for a prior assignment. We have provided appraisal services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.

The professional contribution to the analyses, opinions and conclusions contained in this report is hereby acknowledged.

Ron De Vries, MAI, FRICS Vice President Gail Lissner, CRE, SRA, Vice President Illinois Certified General Real Estate Appraiser No. 553.000145 Illinois Certified General Real Estate Appraiser No. 553.001842 Expires 09/30/15 Expires 09/30/15


ASSUMPTIONS AND LIMITING CONDITIONS

The following assumptions and limiting conditions apply to our market study:

Extraordinary Assumptions/Hypothetical Conditions Our market study is subject to the following which may have affected the assignment results: • None.

General

The Certification, and all analyses, opinions and conclusions are expressly subject to the following stipulations: • No responsibility is assumed for matters of a legal nature. • It is assumed that title is marketable and that the descriptive legal information furnished is correct. • Except as noted, the property is assumed in accordance with applicable local, state and federal ordinances, regulations and laws. • The physical condition of the real estate described herein was based on visual inspection, except as noted. • It is assumed that there are no hidden or unapparent conditions that would render the property more or less valuable. Hidden or unapparent conditions include

but are not limited to soundness of members, equipment, soil conditions or environmental contamination. No responsibility is assumed for such conditions, their effects or for arranging engineering studies that may be required to discover them.

• Any plots, diagrams or drawings presented are only to facilitate and aid the reader and are not meant to be used in matters of survey or for any other purpose. • Any distribution of value applies only as presented or discussed. Value distributions include but are not limited to leased fee and leasehold and land and

building allocations. • Portions of this report should not be relied upon except in the context of the whole. • All analyses, opinions and conclusions assume responsible ownership and competent management. • No persons signing or identified as contributing to this report shall be required to give testimony or appear in court by reason of this report with reference to the

property herein described, unless prior arrangements have been made. • As used herein, report is defined to include both the written version and information contained in our files. • Neither all nor any part of the contents of this report (especially any conclusions, the identity of persons signing or contributing to this report or the firm with

which they are connected, or any reference to the Appraisal Institute or to the MAI or SRA designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without prior written consent and approval.

• We, however, hereby consent to your referencing this report in your company's financial statements or other required statements, provided that: 1) prior to making such reference in any publication, including any filings with the Securities and Exchange Commission or other governmental agency, we are allowed to review the same so as to insure the accuracy and adequacy of such reference to our report; 2) in our sole discretion such reference is not untrue or misleading and is accurate and adequate for the purposes intended and in light of the circumstances under which it is made; and 3) any reference to such report include the following language:

"In addition to setting forth our analyses, opinions and conclusions, the report contains a description of the property that is the subject of this assignment; a statement of the various facts, assumptions and conditions upon which the analyses and opinions were based; the conclusions and certain limiting conditions which relate to the report. The portions of the report referred to herein are qualified in their entireties by reference to the complete report, which will be made available upon written request, to any person who has a proper purpose in reviewing the same. The report or portions of the report should not be relied upon except in the context of the whole. The terms of our engagement are such that we have no obligation to update or revise the report or our analyses, opinions and conclusions in any manner because of events or transactions occurring subsequent to the date of the report."

• The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the require-ments of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider non-compliance with the requirements of the ADA in estimating the value of the property, unless otherwise stated in the scope of this report.


SCOPE OF WORK

Client/Intended User(s) The client identified on the certification page is the intended user of this report. Use of the Consulting Report This report is prepared for exclusive use by the addressee for internal analysis and planning purposes. Purpose of the Consulting Assignment The purpose of this report is to:

• Inspect the site and the neighborhood

• Review and critique the proposed development plans

• Survey the competitive rental apartment developments, including both existing inventory and proposed inventory

• Provide conclusions regarding the market rent levels for the proposed units and project the lease-up pace

Effective Date The effective date of the analysis and conclusions is June 2014. Sources of Data / Extent of Research The following data sources were researched: • Inspection of the site • Visual inspection of the immediate neighborhood • Ongoing discussions with brokers, developers, lenders and investors active in the suburban Chicago rental

market • Inspection of competing rental buildings in the market and discussions with management and leasing agents • Previous assignments where information was not confidential • Our 1Q 2014 Appraisal Research Counselors Suburban Chicago Apartment Benchmark Report


TABLE OF CONTENTS

Certification ...................................................................................................................................................................................... 3 Assumptions And Limiting Conditions ............................................................................................................................................ 4 Scope of Work .................................................................................................................................................................................. 5 Table Of Contents ............................................................................................................................................................................. 6 Executive Summary and Conclusions ............................................................................................................................................... 7 Preliminary Plan for the Subject Property....................................................................................................................................... 13 Primary Market Area Demographics .............................................................................................................................................. 19 Suburban Apartment Market Overview .......................................................................................................................................... 26 Suburban Multi-Family Housing Development: 1996-2013 & 2014-2015 projected ..................................................................... 38 Du Page County Apartment Submarket Overview ......................................................................................................................... 44 Rental Competition Survey ............................................................................................................................................................. 47 Lease-Up Absorption Survey: 2004-2014 ...................................................................................................................................... 72

Addenda

Qualifications ................................................................................................................................................................................... A


EXECUTIVE SUMMARY AND CONCLUSIONS

Rendering of the Subject Property Location: York and Hahn, Elmhurst, IL

Concept: The subject property is proposed for development as an188-unit rental apartment development with approximately 12,000 sf of retail space, 323 resident parking spaces, and 153 public parking spaces. The unit mix is planned to include 2.1% studio units, 50% one bedrooms, 43.1% two bedroom units, 4.3% two bedroom plus den units and .5% three bedroom units, with an average unit size of approximately 910 sf.

Conclusion: Based upon our review of the market, the unit mix and sizes appear well suited for the rental apartment market in the Elmhurst area. Market rents on a per unit basis in current dollars have been projected to average approximately $2.07 psf with projections of rent increases of 3% annually, resulting in rent projections of $2.20 psf in two years (2016) at time of projected occupancy. We have also projected the lease-up of the property in approximately 12 to 15 months from first occupancies.

Appraisal Research Counselors’ Conclusions:

Property Location: The subject property is located in the northeast section of the DuPage County submarket. It has a high visibility location off York Road, a well-traveled local thoroughfare, just west of I-290 access. The subject is surrounded by a mix of commercial uses along York Road, with residential uses to the east with a mix of newer townhouses and older detached single-family housing to the west. The subject’s location in close proximity of I-290, I-294, I-355, and I-88 is seen as a positive attribute as these routes provide access to many employment centers.

The subject’s specific location is within the north section of the downtown area of Elmhurst in close proximity of a variety of local restaurant and retail uses. It is considered to be a “transit-oriented” project; however, the Metra commuter train is approximately four blocks to the south. We considered this location to be good, but average in terms of transit-oriented development access.

Rental Apartment Housing Inventory and Trends: Appraisal Research Counselors has been tracking apartment development in the Chicago suburbs for over 40 years. Since 1996, in the suburban market encompassing seven counties, 17,492 rental apartment units have been constructed, equating to an average of 972 new rental apartment units per year. However, there was very little


development activity from 2003 through 2012. With zoning for rental developments difficult to obtain in many suburban communities, the overall size of the suburban rental market grew very little until recently. Nine new suburban rental apartment developments with a total of 2,086 units were completed in the seven county area during 2013. Two of the recent developments are considered competitive with the subject property, with one located in downtown Wheaton and the other along I-88 in Lisle.

Based upon our 1Q 2014 survey of over 90,000 units in the suburban Chicago market, rents increased 2.6% market-wide from one year ago and 5.6% over two years ago. Physical occupancy is at 95.4%. At occupancy levels over 95%, the suburban market overall is considered to be at full occupancy indicating that rents will continue to escalate in spite of the new supply that is being added. We anticipate that occupancy overall will increase in the near term with owners continuing to increase rents.

Renter Profile: Rental apartment demand in the DuPage County submarket is heavily influenced by professional offices and medical users / employers. The close proximity to four interstate routes will also appeal to those working in downtown Chicago or the north, northwest, west, and southwest suburbs. The property is also located about 4 blocks north of the Metra commuter line and is considered to have a good location for both commuters and older persons who desire a location where they can be less dependent upon a car, with restaurants and retail amenities located within a short walk. The tenant profile will likely include a variety of people – empty nesters, young professionals, college students, and seniors.

Competition Overview: The competition was identified to include properties located within Elmhurst, but extending east, west, and south to include other Class A apartment developments which could provide alternatives to the subject units. In particular, our focus was on other transit-oriented locations, including properties in both Oak Park and Wheaton which provided similar proximity to the Metra station along with other west suburban communities with similar demographics or higher-end rental apartment developments but lacking transit-oriented locations.

For renters desiring a transit-oriented location, the subject property will provide the only new construction rental option in downtown Elmhurst, with the only other rental building located in the downtown area now over 20 years old. Wheaton 121, a transit-oriented development in downtown Wheaton, was developed in 2013, offering similar amenities to the proposed development, but situated further from downtown Chicago. Other TOD developments are located in Oak Park, providing a more urban alternative to the subject location and generating higher rent levels reflecting their close proximity to Downtown Chicago, the Illinois Medical District, and Loyola Medical Center.

Critique of the Size of the Development: The subject property comprises 188 units which are planned for development in downtown Elmhurst. The size of this development is consistent with other projects which are located in downtown suburban locations, close to the Metra and well suited to lease-up within a timely period. With 188 units, the subject property is sufficiently large so that it is able to incorporate an extensive amenity package which will attract renters.

Critique of the Unit Mix & Layouts: At the present time, the interior unit layouts were not available, although the overall development scheme is in place. The mix of unit types appears to be reasonable and in line with the projected residential profile for the building. The 4 studio units will


be 566 sf, which is frequently sufficient to have a semi-separate bedroom alcove. The one bedroom units will range in size from 683 to 1,025 sf, with an average unit size of 733 sf. The most common one bedroom layout will be 690 sf, offering a compact size which will appeal to renters who are attracted to the building due to its location, amenities, and new construction features, but still concerned with the overall monthly rent. The two bedroom units will range in size from 997 to 1,216 sf, with an average unit size of 1,087 sf. Similar to the one bedroom units, this size range is considered to be reasonable for the market. The two bedroom plus den and three bedroom units will range between 1,300 and 1,494 sf, and should be very well received by the empty nester segment of the market that wants to remain in downtown Elmhurst and desires a larger residence.

Critique of the Unit Finishes: The building will include unit finishes which are comparable to Morningside’s new development in Wheaton, Wheaton 121. This development has been generating strong rents and a strong lease-up pace, reflecting good overall market acceptance of its design, finishes, and amenities. Units will have open floor plans with 9 foot ceiling heights, in-unit washers and dryers, outdoor terraces or balconies, central, individually controlled HVAC, high-end kitchens with 42” upper cabinetry, stainless steel appliances, built-in microwave ovens, and eat-in islands, granite countertops in the kitchens and baths, faux wood flooring in the living areas, ceramic tile in the baths (floor and tub surround), and energy-efficient windows. Overall, the finishes listed above will meet the expectations of renters in this market. Critique of the Common Area Amenities: The development has been designed with an excellent amenity package. The residential lobby for the development is located along the west side of the building, with an open café/lounge adjacent to the lobby area, along with a separate business center and conference room. The leasing office will also be located adjacent to these areas. The second floor of the building will contain the fitness center and the third floor will contain a clubroom which overlooks the sun deck, outdoor swimming pool, bocce court, and cabana area. This outdoor deck will be the focal point of the community, as many of the upper floor units will also overlook this recreational area. Resident storage lockers will be located on the lower level of the garage. The building will also include a parking garage with 323 parking spaces for the residential units along with 153 public parking spaces. Based upon a unit mix with 52% of the units being one bedroom units or smaller and a parking ratio of 1.72 spaces per residential unit, we expect that there may even be excess capacity in the residential portion of the parking garage. Recommended Units and Rents (average): Based upon our survey of rental properties which provide alternatives to the subject units, we have recommended average rental rates on a per unit per month basis which equate to approximately $2.07 psf in current dollars. The actual rents on a chunk (per unit) basis is really what is focused on by renters in the market, and the monthly per unit rents which are projected below reflect the amenities, finishes, and new construction features of the proposed units. We are projecting rent annual increases of 3% over the next two years, or rents of approximately $2.20 psf at the time of projected occupancy in 2016. This is consistent with the past two year history for the DuPage County market which experienced a 4.1% year over year increase and a total 5.4% increase over the past two year period.


York and Hahn – Projected Rents (Current Dollars)

Unit Type Units % Avg SF Rent Rent/SF RentStudio 4 2.1% 566 $1,300 $2.30 $5,2001BR/1 94 50.0% 733 $1,550 $2.11 $145,7002BR/2 81 43.1% 1,088 $2,200 $2.02 $178,2002+den/2.5 8 4.3% 1,300 $2,700 $2.08 $21,6003BR 1 0.5% 1,494 $3,000 $2.01 $3,000Total 188 100.0% 910 $1,881 $2.07 $353,700

It is also assumed that the utility charges will be paid by the residents, as is typical of newer properties in the overall market. Parking has also been estimated at $100 per month.

Estimated Absorption: While the suburban market has undergone very little new development during the past 10 years, nine new properties were constructed recently and began lease-up in 2013. These projects are scattered throughout the overall metropolitan area, and none are directly competitive with the subject units. The lease-up pace in these developments has varied depending upon a number of factors including the strength of the location, product type, price point, competing rental alternatives, etc. Morningside’s Wheaton 121 project, the most comparable project currently engaged in lease-up, has already leased 60% of its 306 units (180+ units) within less than a one year time period. Given the similarities between this project and the subject project, its lease-up experience to date is very reflective of the pace which can be expected for the subject property.

With 188 units, a lease-up pace of approximately 12 to 15 units per month is projected, indicating a lease-up period of approximately 12 to 15 months, with the stronger absorption occurring in the spring/summer leasing seasons.


Aerial Map with Subject Site Outlined in Red


Location Map


PRELIMINARY PLAN FOR THE SUBJECT PROPERTY

Parking – Lower Level


First Floor (Parking, retail, lobby, and residential units)


Second Floor – Parking, residential units, Fitness Center


Third Floor – Residential Units, Amenity Space (Indoor and Outdoor)


Floors 4-6 (Residential units)


Site Plan


PRIMARY MARKET AREA DEMOGRAPHICS

On the following pages are demographic surveys of the subject Primary Market Area. All of this demographic information was provided by Nielsen Claritas. The data includes owner and renter households. The map for the datasets is shown below.

Claritas PMA Map


2014 Demographic Snapshot

One to Five Mile Radius

Description Radius 1 % Radius 2 % Radius 3 %Population 2019 Projection 16,616 121,497 308,808 2014 Estimate 16,286 120,034 306,034 2010 Census 15,969 118,624 303,376 2000 Census 15,333 115,760 304,478 Growth 2014-2019 2.02% 1.22% 0.91% Growth 2010-2014 1.99% 1.19% 0.88% Growth 2000-2010 4.14% 2.47% -0.36% 2014 Est. Median Age 37.9 37.6 37.7 2014 Est. Average Age 38.20 38.00 38.20 Households 2019 Projection 5,899 42,305 108,133 2014 Estimate 5,716 41,570 106,576 2010 Census 5,529 40,808 104,918 2000 Census 5,488 40,841 106,095 Growth 2014-2019 3.20% 1.77% 1.46% Growth 2010-2014 3.38% 1.87% 1.58% Growth 2000-2010 0.75% -0.08% -1.11% 2014 Est. Households by Household Type 5,716 41,570 106,576 Family Households 4,022 70.36 29,928 71.99 76,535 71.81 Nonfamily Households 1,694 29.64 11,642 28.01 30,042 28.19 2014 Est. HHs by HH Income 5,716 41,570 106,576 CY HHs, Inc < $15,000 387 6.77 2,940 7.07 8,196 7.69 CY HHs, Inc $15,000 - $24,999 401 7.02 4,491 10.80 11,661 10.94 CY HHs, Inc $25,000 - $34,999 547 9.57 3,979 9.57 11,087 10.40 CY HHs, Inc $35,000 - $49,999 676 11.83 5,215 12.55 14,660 13.76 CY HHs, Inc $50,000 - $74,999 704 12.32 7,703 18.53 21,082 19.78 CY HHs, Inc $75,000 - $99,999 747 13.07 5,742 13.81 14,968 14.04 CY HHs, Inc $100,000 - $124,999 594 10.39 3,825 9.20 9,296 8.72 CY HHs, Inc $125,000 - $149,999 436 7.63 2,574 6.19 5,787 5.43 CY HHs, Inc $150,000 - $199,999 505 8.83 2,619 6.30 5,452 5.12 CY HHs, Inc $200,000 - $249,999 192 3.36 814 1.96 1,575 1.48 CY HHs, Inc $250,000 - $499,999 372 6.51 1,226 2.95 2,141 2.01 CY HHs, Inc $500,000+ 155 2.71 441 1.06 673 0.63 2014 Est. Average Household Income $109,585 $84,088 $75,806 2014 Est. Median Household Income $79,774 $63,500 $59,113 2014 Est. Households by Household Size 5,716 41,570 106,576 1-person household 1,447 25.31 9,782 23.53 25,378 23.81 2-person household 1,698 29.71 11,681 28.10 30,077 28.22 3-person household 879 15.38 6,793 16.34 17,645 16.56 4-person household 1,007 17.62 6,736 16.20 16,620 15.59 5-person household 479 8.38 3,827 9.21 9,328 8.75 6-person household 154 2.69 1,597 3.84 4,177 3.92 7 or more person household 52 0.91 1,154 2.78 3,351 3.14 2014 Est. Average Household Size 2.66 2.85 2.85

0.00 - 1.00 miles 0.00 - 3.00 miles 0.00 - 5.00 miles


Description Radius 1 % Radius 2 % Radius 3 %2014 Est. Households by Number of Vehicles 5,716 41,570 106,576 No Vehicles 320 5.60 2,502 6.02 6,304 5.92 1 Vehicle 1,807 31.61 12,893 31.02 35,325 33.15 2 Vehicles 2,624 45.91 17,404 41.87 42,984 40.33 3 Vehicles 699 12.23 6,222 14.97 15,290 14.35 4 Vehicles 230 4.02 1,894 4.56 4,841 4.54 5 or more Vehicles 36 0.63 655 1.58 1,832 1.72 2014 Est. Average Number of Vehicles 1.80 1.87 1.85Family Households 2019 Projection 4,140 30,398 77,565 2014 Estimate 4,022 29,928 76,535 2010 Census 3,903 29,432 75,439 2000 Census 3,826 29,584 77,217 Growth 2014-2019 2.93% 1.57% 1.35% Growth 2010-2014 3.05% 1.68% 1.45% Growth 2000-2010 2.01% -0.51% -2.30% 2014 Est. Pop 16+ by Occupation Classification 8,046 60,080 150,232 Blue Collar 1,041 12.94 14,102 23.47 38,897 25.89 White Collar 6,027 74.91 37,174 61.87 88,094 58.64 Service and Farm 978 12.16 8,805 14.66 23,240 15.47 2014 Est. Workers Age 16+, Transp. To Work 7,873 58,710 146,529 Drove Alone 5,650 71.76 46,983 80.03 116,695 79.64 Car Pooled 459 5.83 4,375 7.45 12,109 8.26 Public Transportation 861 10.94 3,468 5.91 8,554 5.84 Walked 231 2.93 1,380 2.35 3,254 2.22 Bicycle 10 0.13 209 0.36 514 0.35 Other Means 37 0.47 392 0.67 1,117 0.76 Worked at Home 626 7.95 1,902 3.24 4,287 2.93 2014 Est. Workers Age 16+ by Travel Time to Work * Less than 15 Minutes 1,932 14,430 35,271 15 - 29 Minutes 2,083 19,281 48,714 30 - 44 Minutes 1,533 13,260 34,114 45 - 59 Minutes 862 4,990 12,272 60 or more Minutes 899 4,911 12,140 2014 Est. Avg Travel Time to Work in Minutes 31.50 29.26 29.36 2014 Est. Tenure of Occupied Housing Units 5,716 41,570 106,576 Owner Occupied 4,304 75.30 30,832 74.17 78,177 73.35 Renter Occupied 1,412 24.70 10,738 25.83 28,399 26.652014 Owner Occ. HUs: Avg. Length of Residence 20.5 21.3 20.9 2014 Renter Occ. HUs: Avg. Length of Residence 7.3 7.6 7.5

0.00 - 1.00 miles 0.00 - 3.00 miles 0.00 - 5.00 miles


Households – One Mile Radius

2000/2014/2019 proj

2000 2014 2019Description Census % Estimate % Projection %Households by Age of Householder 5,529 5,716 5,899 Householder Under 25 Years 135 2.44% 148 2.59% 164 2.78% Householder 25 to 34 Years 524 9.48% 583 10.20% 661 11.21% Householder 35 to 44 Years 1,112 20.11% 941 16.46% 770 13.05% Householder 45 to 54 Years 1,395 25.23% 1,402 24.53% 1,282 21.73% Householder 55 to 64 Years 1,020 18.45% 1,187 20.77% 1,352 22.92% Householder 65 to 74 Years 642 11.61% 754 13.19% 925 15.68% Householder 75 to 84 Years 468 8.46% 466 8.15% 526 8.92% Householder 85 Years and over 233 4.21% 236 4.13% 218 3.70% Median Age of Householder 52.1 53.5 55.5 Households by Household Income 5,518 5,716 5,899 Income Less than $15,000 336 6.09% 387 6.77% 368 6.24% Income $15,000 - $24,999 406 7.36% 401 7.02% 386 6.54% Income $25,000 - $34,999 370 6.71% 547 9.57% 523 8.87% Income $35,000 - $49,999 698 12.65% 676 11.83% 672 11.39% Income $50,000 - $74,999 1,121 20.32% 704 12.32% 702 11.90% Income $75,000 - $99,999 938 17.00% 747 13.07% 750 12.71% Income $100,000 - $124,999 587 10.64% 594 10.39% 618 10.48% Income $125,000 - $149,999 378 6.85% 436 7.63% 470 7.97% Income $150,000 - $199,999 334 6.05% 505 8.83% 560 9.49% Income $200,000 - $249,999 144 2.61% 192 3.36% 255 4.32% Income $250,000 - $499,999 138 2.50% 372 6.51% 394 6.68% Income $500,000 or more 67 1.21% 155 2.71% 202 3.42% Average Household Income $90,530 $109,585 $116,627 Median Household Income $71,166 $79,774 $84,965

One Mile Radius


Households – Three Mile Radius

2000/2014/2019 proj

2010 2014 2019Description Census % Estimate % Projection %Households by Age of Householder 40,808 41,570 42,305 Householder Under 25 Years 1,020 2.50% 1,008 2.42% 1,013 2.39% Householder 25 to 34 Years 4,929 12.08% 4,957 11.92% 4,837 11.43% Householder 35 to 44 Years 7,974 19.54% 7,429 17.87% 7,006 16.56% Householder 45 to 54 Years 10,139 24.85% 9,684 23.30% 8,791 20.78% Householder 55 to 64 Years 7,607 18.64% 8,667 20.85% 9,419 22.26% Householder 65 to 74 Years 4,369 10.71% 5,149 12.39% 6,435 15.21% Householder 75 to 84 Years 3,159 7.74% 3,020 7.26% 3,262 7.71% Householder 85 Years and over 1,611 3.95% 1,655 3.98% 1,543 3.65% Median Age of Householder 51.4 52.6 54.4 Households by Household Income 40,898 41,570 42,305 Income Less than $15,000 3,163 7.73% 2,940 7.07% 2,811 6.64% Income $15,000 - $24,999 3,393 8.30% 4,491 10.80% 4,174 9.87% Income $25,000 - $34,999 3,911 9.56% 3,979 9.57% 3,929 9.29% Income $35,000 - $49,999 6,529 15.96% 5,215 12.55% 5,174 12.23% Income $50,000 - $74,999 9,628 23.54% 7,703 18.53% 7,577 17.91% Income $75,000 - $99,999 6,615 16.17% 5,742 13.81% 5,810 13.73% Income $100,000 - $124,999 3,222 7.88% 3,825 9.20% 4,034 9.54% Income $125,000 - $149,999 1,672 4.09% 2,574 6.19% 2,821 6.67% Income $150,000 - $199,999 1,565 3.83% 2,619 6.30% 2,908 6.87% Income $200,000 - $249,999 599 1.46% 814 1.96% 1,153 2.73% Income $250,000 - $499,999 446 1.09% 1,226 2.95% 1,323 3.13% Income $500,000 or more 154 0.38% 441 1.06% 591 1.40% Average Household Income $71,390 $84,088 $89,285 Median Household Income $58,966 $63,500 $66,711

Three Mile Radius


Households – Five Mile Radius

2000/2014/2019 proj

2000 2014 2019Description Census % Estimate % Projection %

Households by Age of Householder 104,918 106,576 108,133 Householder Under 25 Years 2,418 2.30% 2,382 2.24% 2,369 2.19% Householder 25 to 34 Years 13,929 13.28% 13,501 12.67% 12,340 11.41% Householder 35 to 44 Years 20,207 19.26% 19,655 18.44% 19,430 17.97% Householder 45 to 54 Years 24,411 23.27% 23,213 21.78% 21,561 19.94% Householder 55 to 64 Years 19,604 18.69% 21,695 20.36% 22,871 21.15% Householder 65 to 74 Years 11,855 11.30% 13,772 12.92% 16,902 15.63% Householder 75 to 84 Years 8,536 8.14% 8,256 7.75% 8,768 8.11% Householder 85 Years and over 3,959 3.77% 4,102 3.85% 3,891 3.60% Median Age of Householder 51.5 52.6 54.2 Households by Household Income 106,198 106,576 108,133 Income Less than $15,000 8,983 8.46% 8,196 7.69% 7,774 7.19% Income $15,000 - $24,999 9,446 8.89% 11,661 10.94% 10,899 10.08% Income $25,000 - $34,999 10,988 10.35% 11,087 10.40% 10,787 9.98% Income $35,000 - $49,999 17,432 16.41% 14,660 13.76% 14,533 13.44% Income $50,000 - $74,999 25,937 24.42% 21,082 19.78% 20,752 19.19% Income $75,000 - $99,999 15,862 14.94% 14,968 14.04% 15,242 14.10% Income $100,000 - $124,999 7,863 7.40% 9,296 8.72% 9,997 9.25% Income $125,000 - $149,999 3,920 3.69% 5,787 5.43% 6,521 6.03% Income $150,000 - $199,999 3,114 2.93% 5,452 5.12% 6,127 5.67% Income $200,000 - $249,999 1,262 1.19% 1,575 1.48% 2,252 2.08% Income $250,000 - $499,999 963 0.91% 2,141 2.01% 2,346 2.17% Income $500,000 or more 425 0.40% 673 0.63% 905 0.84% Average Household Income $67,564 $75,806 $80,351 Median Household Income $56,023 $59,113 $62,136

Five Mile Radius

As shown in the foregoing tables, the population of this market area has seen little growth, increasing by .88% to 1.99% between 2010 and 2014 for the 1 to 5 mile radius, and projected to increase .91% to 2.02% between 2014 and 2019. It should be noted that the area with the highest growth during both the 2010-2014 and 2014-2019 periods is the one mile radius, with lesser growth in the three and five mile radius rings. This is typical of an inner-ring suburban market that is fully developed. Also, the foregoing information shows this market has an average estimated 2014 household income of $109,585 within one mile of the subject property, with a median income of $79,774. By 2019, the


average household income is projected to increase to $116,627 with the median household income increasing to $84,965. Fifty-five percent of the households within a one mile radius of the subject property are comprised of one and two person households, with 25% of the housing units being rental.

Qualifying Income Our recommendations for the rents for the subject units result in average monthly rents as shown below, along with the minimum income to qualify, utilizing both 30% and 35% rent/income ratios:

1BR 2BRMonthly Rent $1,550 $2,20012 months 12 12Annual Rent $18,600 $26,400Rent/Income Ratio 30% 30%Minimum Income $62,000 $88,000

1BR 2BRMonthly Rent $1,550 $2,20012 months 12 12Annual Rent $18,600 $26,400Rent/Income Ratio 35% 35%Minimum Income $53,143 $75,429

Thus, the income levels in the area are in line and exceed the income needed to support the subject rents.


SUBURBAN APARTMENT MARKET OVERVIEW

Market area defined. The Suburban Chicago market is defined as including Cook, Lake, McHenry, Kane, Kendall, DuPage and Will counties. Properties located within the city of Chicago are of course excluded from the survey. Details regarding the downtown Chicago market are available in our quarterly Downtown Chicago Residential Benchmark Report.

Cook County-NorthwestCook County-SouthDuPage CountyKane-Kendall CountiesLake CountyMcHenry CountyNaperville-AuroraNorth ShoreWaukegan-GurneeWill County

Submarkets


Survey property profile. The database for the Suburban Chicago survey includes 290 complexes with a total of over 90,000 dwelling units indicating an average development size of just over 300 units. Our survey includes virtually every major apartment community developed since 1995 plus older developments throughout the MSA.

Demand drivers. As the economy rallied in 2004-2007, demand for apartments increased. Recessionary pressures caused a market decline in 4q07 through 2q09; however, performance improved dramatically thereafter. Demand is being driven by instability in the for sale housing market, the inability to obtain a mortgage (due lack of down payment and/or credit issues) and the desire of the 25-34 year old age cohort to maintain flexibility for relocation. Homeownership rates throughout the region had been on a decline while there is a more recent upward trend since 2012. The desire to own a home is clearly increasing. Each percentage point equates to roughly 30,000 households.

Homeownership Rate – Chicago MSA

65.0

66.0

67.0

68.0

69.0

70.0

71.0

72.0

1Q06

3Q06

1Q07

3Q07

1Q08

3Q08

1Q09

3Q09

1Q10

3Q10

1Q11

3Q11

1Q12

3Q12

1Q13

3Q13

1Q14


Below we show the rates by quarter, reflecting seasonality:

Homeownership Rate – Chicago MSA by Quarter

63.0

64.0

65.0

66.0

67.0

68.0

69.0

70.0

71.0

72.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

1Q 2Q 3Q 4Q

After rising through 2012, followed by a spike in 1Q13, the 2Q13 results were surprisingly low given the historical patterns of 2q results exceeding 1q numbers. With rising interest rates and a perception of rising values, there has been a push for buyers to “get off the fence” and ownership is certainly increasing.

Total employment in the MSA was up 64,100 in 2013 over the 2012 level. The national unemployment rate for 25+ year olds with a bachelor’s degree is 3.3 percent as of April 2014. This sector of the job market remains stable. Employment projections by economy.com show growth of just under 50,000 jobs in 2014.

Rent Trends & Concessions. Median net rent per square foot is at $1.24 which is up 2.6 percent from a year ago and accompanied by stability in occupancy. One bedroom units have a median net rent of $998 per month while two bedrooms are at $1,225. Compared to two years ago, net rent growth has amounted to a positive 5.6 percent. We expect rent growth to continue trending upward in the near term due to demand fundamentals, occupancy levels and limited new supply.

Concessions are a marketing tool used to react to current demand without the need for continually adjusting “market” rents. The percent of complexes offering concessions is under 18 – down from 25.4 percent a year ago. The amount of the concession, currently offered at just less than one month per lease year, has been relatively flat over the past two years. Concessions are expected to remain in the market over the next year.

Occupancy. Physical occupancy is at 95.4 percent for the entire market – up 3 bps over the 1q13 level. At over 95 percent, the suburban market overall is considered “full” indicating pricing will


continue to escalate in spite of the modest amount of new supply being added. We expect occupancy overall to remain steady in the near term with owners continuing to push rents.

Market Revenue Performance. Market revenue performance is a function of the product of net rent and occupancy.

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1q07

2q07

3q07

4q07

1q08

2q08

3q08

4q08

1q09

2q09

3q09

4q09

1q10

2q10

3q10

4q10

1q11

2q11

3q11

4q11

1q12

2q12

3q12

4q12

1q13

2q13

3q13

4q13

1q14

MRP

Inde

x

Market Revenue Performance Net Rent PSF x Occupancy

(c) 2013 Appraisal Research Counselors

Market revenue performance for the overall suburban market remains strong with the current quarter continuing at a high level.


Complexes

Units

SF/unit

Yr Built

Net PSF Occupancy Pct W/concessions Concession Amt One Bdrm/Mo Two Bdrm/Mo

Median $ 1.17 1.17 1.18 1.19 1.21 1.22 1.23 1.23 1.24

Median % 94.7 95.2 95.1 94.9 95.1 95.6 95.2 95.1 95.4 Median $ 925 929 958 950 958 984 991 998 998

Median % 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 Median $ 1,125 1,144 1,152 1,157 1,188 1,200 1,214 1,221 1,225

29090,135

$1.2495.4%

Concessions - 7.7% when offered Net Two Bdrm - $1,225/mo

7.7%$998

17.6%

All Suburban Apartments - 1q14Showing median trend lines

Net Rent PSF - $1.24

Occupancy - 95.4% Net One Bdrm - $998/mo

$1,225

8981981

Snapshot & Trends

Suburban Metro

$1.10

$1.12

$1.14

$1.16

$1.18

$1.20

$1.22

$1.24

$1.26

1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14

91%

92%

93%

94%

95%

96%

97%

1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14$880

$900

$920

$940

$960

$980

$1,000

$1,020

1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14

5%

15%

25%

35%

45%

55%

65%

3%

4%

5%

6%

7%

8%

9%

10%

11%

1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14$1,100

$1,120

$1,140

$1,160

$1,180

$1,200

$1,220

$1,240

1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14

Complexes offering concessions


Performance by Property Class

The suburban survey dataset includes has the following characteristics:

Class A Class B Class C

Distribution 19% 37% 44%

Median Year Built 2001 1987 1972

Median Unit Size (sf) 983 889 840

Average Complex Size 268 335 314

Property Classes are generally defined as follow:

Class A - Newer properties that have generally been constructed since the early 1990s. Amenities often include open layout floor plans, 9 foot ceilings, in-unit washer and dryer, high quality cabinetry and potentially granite counters and stainless steel appliances. Some communities have direct entry garages. The complex typically has a clubhouse, fitness center and swimming pool.

Class B - Typically constructed in the 1980s but may include older product that has been significantly renovated. Amenities often include open layout floor plans, 8 foot ceilings, in-unit washer and dryer, good quality cabinetry and laminate counters. The complex typically has a clubhouse, fitness center and swimming pool.

Class C - Typically constructed in the 1970s with limited renovations, if any. Units typically have older style floor plans (such as galley style, closed kitchens), average quality cabinetry and laminate counters. The complex may have a clubhouse and swimming pool but the quality is generally average. Laundry facilities are typically limited to a laundry room in the complex.


Net Rent PSF by Property Class

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

2004

.4

2005

.2

2005

.4

2006

.2

2006

.4

2007

.2

2007

.4

2008

.2

2008

.4

2009

.2

2009

.4

2010

.2

2010

.4

2011

.2

2011

.4

2012

.2

2012

.4

2013

.2

2013

.4


There was a clear bifurcation in performance by property class in 2010 with gains in net rent achieved primarily in the Class A and B markets while Class C properties lagged. The Class C market turned in 1Q11 with product gaining momentum primarily due to the rising cost of A and B product. On a year over year basis, rents increased 1.3%, 1.3% and 3.2% for A, B and C product respectively. The monthly “chunk” rent spread is shown below.

Monthly Rent by Property Class

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

2004

.4

2005

.2

2005

.4

2006

.2

2006

.4

2007

.2

2007

.4

2008

.2

2008

.4

2009

.2

2009

.4

2010

.2

2010

.4

2011

.2

2011

.4

2012

.2

2012

.4

2013

.2

2013

.4



After tracking fairly consistent for years, a 100 basis point spread in occupancy between A/B versus C product emerged in 2010 and continued through 2q13. Starting in 3q13 the spread has narrowed considerably.

Occupancy by Property Class

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

2004

.4

2005

.2

2005

.4

2006

.2

2006

.4

2007

.2

2007

.4

2008

.2

2008

.4

2009

.2

2009

.4

2010

.2

2010

.4

2011

.2

2011

.4

2012

.2

2012

.4

2013

.2

2013

.4


Occupancy for all classes remains strong.


Summary of Rent, Occupancy & Concession Trends by Submarket

The following trends by submarket are based on our survey of 290 buildings containing roughly 90,000 units on a quarterly basis. Detailed analysis of the data is contained within the submarket reports.

Submarket 1q11 2q11 3q11 4q11 1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14 Y/Y Chng 2 Yr ChngCook NW $1.18 $1.20 $1.20 $1.18 $1.26 $1.25 $1.25 $1.27 $1.26 $1.29 $1.30 $1.31 $1.32 5.0% 5.3%Cook South $1.04 $1.07 $1.07 $1.07 $1.13 $1.13 $1.13 $1.13 $1.13 $1.14 $1.17 $1.17 $1.17 3.7% 3.8%DuPage $1.16 $1.15 $1.16 $1.16 $1.17 $1.17 $1.16 $1.18 $1.19 $1.22 $1.23 $1.23 $1.24 4.1% 5.4%Kane/Kendall $1.07 $1.08 $1.08 $1.08 $1.08 $1.12 $1.12 $1.12 $1.12 $1.14 $1.16 $1.16 $1.15 3.0% 6.7%Lake $1.26 $1.29 $1.21 $1.16 $1.24 $1.23 $1.15 $1.17 $1.25 $1.24 $1.30 $1.32 $1.31 4.3% 5.5%McHenry $0.99 $1.00 $0.99 $0.93 $1.01 $1.00 $1.01 $0.99 $1.04 $1.01 $1.07 $1.01 $1.01 -2.5% 0.6%Naperville/Aurora $1.19 $1.22 $1.20 $1.17 $1.19 $1.23 $1.23 $1.24 $1.24 $1.27 $1.26 $1.26 $1.26 1.9% 5.8%North Shore $1.93 $2.00 $1.98 $1.98 $2.17 $2.25 $2.25 $2.13 $2.13 $2.07 $2.22 $2.11 $2.06 -3.3% -5.1%Waukegan/Gurnee $0.96 $1.00 $0.99 $0.97 $0.97 $0.97 $1.00 $1.00 $0.98 $1.01 $1.05 $1.06 $1.08 10.5% 11.3%Will $1.07 $1.12 $1.05 $1.06 $1.04 $1.03 $1.09 $1.09 $1.10 $1.14 $1.16 $1.15 $1.14 3.6% 9.8%All Suburban $1.14 $1.15 $1.15 $1.14 $1.17 $1.17 $1.18 $1.19 $1.21 $1.22 $1.23 $1.23 $1.24 2.6% 5.6%Note: Quarterly net rent values are rounded for display purposes but not for Yr/Yr Change calculations.

Submarket 1q11 2q11 3q11 4q11 1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14 Y/Y Chng 2 Yr ChngCook NW $931 $945 $918 $950 $960 $938 $974 $983 $987 $1,007 $1,016 $1,052 $1,035 4.9% 7.8%Cook South $775 $788 $780 $780 $805 $805 $805 $810 $810 $810 $810 $830 $843 4.0% 4.7%DuPage $908 $930 $915 $925 $925 $925 $947 $913 $954 $980 $975 $975 $972 1.9% 5.1%Kane/Kendall $745 $795 $778 $819 $814 $829 $829 $833 $851 $838 $863 $875 $879 3.2% 8.0%Lake $983 $1,001 $1,047 $997 $1,045 $1,050 $1,038 $1,045 $1,077 $1,086 $1,020 $1,043 $1,138 5.6% 8.9%McHenry $761 $790 $738 $725 $790 $781 $790 $790 $790 $790 $829 $793 $813 2.8% 2.8%Naperville/Aurora $989 $1,012 $1,020 $987 $990 $1,025 $1,064 $1,039 $1,056 $1,082 $1,081 $1,077 $1,094 3.6% 10.5%North Shore $1,556 $1,700 $1,717 $1,764 $1,835 $1,782 $1,839 $1,812 $1,813 $1,799 $1,750 $1,739 $1,754 -3.3% -4.4%Waukegan/Gurnee $710 $798 $719 $725 $767 $690 $785 $733 $702 $790 $763 $795 $840 19.6% 9.5%Will $789 $729 $730 $771 $773 $766 $799 $799 $834 $900 $900 $795 $803 -3.8% 3.8%

All Suburban $908 $926 $915 $925 $925 $929 $958 $950 $958 $984 $991 $998 $998 4.2% 7.8%

Note: Quarterly net rent values are rounded for display purposes but not for Yr/Yr Change calculations.

Submarket 1q11 2q11 3q11 4q11 1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14 Y/Y Chng 2 Yr ChngCook NW $1,130 $1,134 $1,125 $1,145 $1,151 $1,187 $1,193 $1,212 $1,231 $1,255 $1,255 $1,280 $1,271 3.3% 10.4%Cook South $959 $962 $983 $1,000 $1,019 $1,053 $1,067 $1,067 $1,050 $1,060 $1,148 $1,148 $1,143 8.8% 12.1%DuPage $1,145 $1,183 $1,192 $1,145 $1,129 $1,210 $1,183 $1,208 $1,220 $1,263 $1,260 $1,245 $1,228 0.7% 8.8%Kane/Kendall $995 $993 $993 $994 $960 $995 $995 $995 $1,017 $1,058 $1,096 $1,075 $1,102 8.4% 14.8%Lake $1,124 $1,156 $1,198 $1,154 $1,276 $1,310 $1,285 $1,256 $1,206 $1,186 $1,184 $1,206 $1,298 7.6% 1.8%McHenry $902 $902 $902 $902 $913 $922 $921 $902 $926 $946 $956 $933 $963 4.0% 5.4%Naperville/Aurora $1,193 $1,224 $1,235 $1,210 $1,238 $1,260 $1,233 $1,251 $1,278 $1,310 $1,286 $1,281 $1,325 3.7% 7.1%North Shore $2,215 $2,495 $2,307 $2,205 $2,455 $2,310 $2,586 $2,480 $2,500 $2,419 $2,529 $2,466 $2,550 2.0% 3.9%Waukegan/Gurnee $903 $913 $905 $881 $900 $901 $948 $926 $918 $930 $918 $938 $968 5.4% 7.5%Will $925 $975 $1,020 $903 $921 $928 $949 $981 $953 $1,027 $1,029 $1,001 $1,051 10.2% 14.1%All Suburban $1,099 $1,120 $1,118 $1,118 $1,125 $1,144 $1,152 $1,157 $1,188 $1,200 $1,214 $1,221 $1,225 3.2% 8.9%Note: Quarterly net rent values are rounded for display purposes but not for Yr/Yr Change calculations.

One Bedroom Median Rent by Submarket

© 2014 Appraisal Research Counselors

Two Bedroom Median Rent by Submarket


Net Rent PSF by Submarket



Submarket 1q11 2q11 3q11 4q11 1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14 Y/Y Chng 2 Yr ChngCook NW 93.7 94.3 94.0 94.3 95.4 96.3 96.0 95.5 95.6 96.4 96.1 95.5 95.8 0.2% 0.4%Cook South 93.2 93.3 93.3 93.3 93.9 94.7 94.3 95.1 93.9 94.3 93.0 93.8 94.5 0.7% 0.7%DuPage 93.0 93.4 93.6 93.3 94.2 94.5 94.6 94.2 95.0 95.7 95.5 95.0 94.8 -0.3% 0.6%Kane/Kendalll 92.4 92.6 92.8 93.3 94.4 94.6 94.7 94.0 94.8 94.6 93.9 93.8 95.0 0.2% 0.6%Lake 94.0 93.9 95.3 95.1 96.9 95.9 95.7 96.9 96.9 96.1 95.1 97.6 97.7 0.8% 0.8%McHenry 91.4 92.0 92.8 92.8 93.8 93.7 94.7 94.0 93.8 92.1 96.6 95.4 95.4 1.8% 1.8%Naperville/Aurora 95.1 95.5 96.8 95.6 96.6 96.9 96.2 95.7 96.9 97.3 94.6 96.0 95.5 -1.4% -1.2%North Shore 93.0 95.4 92.1 92.1 95.5 94.6 92.8 94.8 95.4 94.7 96.4 94.1 94.6 -0.8% -0.9%Waukegan/Gurnee 92.7 93.2 93.1 93.1 93.5 94.3 94.2 94.5 93.9 94.0 96.5 95.5 96.4 2.6% 3.1%Will 93.0 93.2 93.3 93.8 95.4 95.6 95.1 94.5 93.1 94.4 94.9 93.5 94.2 1.2% -1.3%All Suburban 93.3 93.6 93.9 93.8 94.7 95.2 95.1 94.9 95.1 95.6 95.2 95.1 95.4 0.3% 0.7%Note: Quarterly occupancy values are rounded for display purposes but not for Yr/Yr Change calculations.

Submarket 1q11 2q11 3q11 4q11 1q12 2q12 3q12 4q12 1q13 2q13 3q13 4q13 1q14 Y/Y ChngCook NW 8.3 8.3 7.3 8.3 7.7 7.7 7.7 7.7 7.7 8.0 5.5 5.5 5.5 -29.0%Cook South 6.8 6.7 6.3 7.7 6.4 3.7 8.3 8.3 8.3 8.3 4.2 8.3 8.0 -3.8%DuPage 8.3 8.3 8.3 8.3 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 0.0%Kane/Kendalll 8.3 8.3 8.3 8.3 7.7 7.7 7.7 7.7 7.7 7.7 5.0 7.7 7.7 0.0%Lake 8.3 8.3 8.3 8.3 8.3 6.3 6.8 8.3 8.3 8.3 8.3 8.3 8.3 0.0%McHenry 8.3 8.3 8.3 8.3 8.3 8.3 5.9 7.9 8.0 8.1 7.7 5.7 8.5 6.5%Naperville/Aurora 7.1 8.1 8.0 8.3 7.7 7.7 5.1 4.5 8.7 6.7 4.2 8.7 7.8 -10.7%North Shore 8.3 15.1 6.0 8.3 3.7 0.0 0.0 0.0 4.4 5.2 4.5 6.4 4.8 9.1%Waukegan/Gurnee 8.3 8.3 8.3 8.3 7.7 8.0 6.7 8.3 7.7 8.3 4.3 8.3 8.3 8.3%Will 8.3 8.3 7.2 6.8 4.2 7.7 5.9 4.2 4.2 4.2 8.3 8.3 6.3 50.0%All Suburban 8.3 8.3 8.3 8.3 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 0.0%Note: Numbers shown are percentages - 1 month free rent on 12 month lease equals 8.3%.

Occupancy by Submarket


Concessions by Submarket



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Chicago MSA Non Farm EmploymentBLS Data - based on '05 revisions

Demand Generators

The apartment market is influence by a number of factors including employment, homeownership trends and a desire to maintain flexibility.

Employment

The unemployment rate for the Chicago MSA is 8.1 percent (National, 6.7 percent) as of March 2014. We note that the national unemployment rate for 25+ year olds with a bachelor’s degree is 3.3 percent as of April 2014. The MSA unemployment rate has declined steadily since the beginning of 2013 by roughly 200 basis points though it has not kept pace with the reductions at the national level.

Chicago vs. National Unemployment Rate – BLS Data

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The following summarizes the MSA employment growth (and losses) from 1990 through 2011 with projections by Economy.com (adjusted for revised definitions of the MSA) through 201. The Chicago market generated an annual average of 75,000 new jobs from 1992-2000 – a trough to peak period. Employment declined from 2000-2003 with peak post-recession employment achieved in


Total # Change from % Change # Change Month Employment Prior Year from from Prior(Year) (000s) (000s) Prior Year Month

2014Mar 4,392.5 29.3 0.7% 22.6Feb 4,369.9 35.5 0.8% 0.9Jan 4,369.0 55.3 1.3% -128.7

AVG - 14 4,377.1 -61.9 0.0 2013

Dec 4,497.7 55.7 1.3% -11.7Nov 4,509.4 62.9 1.4% 10.7Oct 4,498.7 70.6 1.6% 25.1Sept 4,473.6 54.2 1.2% 1.3Aug 4,472.3 62.5 1.4% 16.3Jul 4,456.0 61.9 1.4% -35.0Jun 4,491.0 69.9 1.6% 33.3May 4,457.7 70.6 1.6% 56.6Apr 4,401.1 57.6 1.3% 37.9Mar 4,363.2 68.0 1.6% 28.8Feb 4,334.4 73.2 1.7% 20.7Jan 4,313.7 61.7 1.5% -128.3

AVG - 13 4,439.1 64.1 1.5%

CHICAGO MSA EMPLOYMENT GROWTH© 2014 Appraisal Research Counselors

2007 which did not even match the 2000 employment level. Economy.com forecasts indicate a return to 2000 employment levels will not occur through 2015 - 15 years later. By looking at the month over month comparisons to prior year employment, the trends in employment become more evident. The following graph exemplifies.

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Revised BLS numbers indicate employment growth of 57,800 jobs in 2011 followed by 70,000 jobs in 2012 and then 64,100 jobs in 2013. The employment market is certainly improved though the MSA remains roughly 150,000 below the peak employment level in 2007. Employment projections by economy.com show growth of roughly 50,000 jobs in 2014.


SUBURBAN MULTI-FAMILY HOUSING DEVELOPMENT: 1996-2013 & 2014-2015 PROJECTED

Appraisal Research Counselors has been tracking apartment development in the suburbs for over 40 years. Since 1996, 17,492 units have been developed in the suburbs of the Chicago metropolitan area, with an average of 972 units per year over this period.

Many of the larger suburban developments were constructed in phases with additional units being added as buildings were leased up. Thus, construction and deliveries often occur over a two and sometimes three year period. The delivery dates shown below reflect when the first phase of the project was delivered.

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Suburban Chicago Apartment Deliveries

Peak years of deliveries were back in the late 1990s and then climbing again through the early 2000s. Over the past ten years however, incredibly little product had been added to the market. This was driven by a few factors including:

• Poor economics due to job losses in the region creating vacancies and concessions, though performance has improved since late 2009

• Lower interest rate and low down payment environment driving demand for new condo unit construction which generated more immediate returns; however, the new construction condo market is now stalled.

• Resistance of communities to allow for new rental developments • Few well located sites left in the region suitable for large scale development • Rent levels not high enough to support construction costs at locations where sites can be acquired

Basically, there was a nearly 10 year period with an absence of new rental development, extending from 2004 until 2013. With many communities welcoming rental development, combined with feasible rent levels supporting construction, development is once again occurring throughout the region.


Deliveries by Submarket

Most of the construction that has occurred since 1996 has been in the DuPage County market – specifically, the Aurora- Naperville submarket. Following is a delivery distribution by submarket.

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Deliveries by Submarket1996 - current

The Naperville – Aurora market (a separate submarket within DuPage County) was followed by the DuPage market. These submarkets, while initially hurt by the amount of supply coming online over a relatively short period of time, are poised to remain in a strong long term position given the proximity to the suburban employment centers along the I-88 corridor.

The remaining submarkets have added relatively few units. Of particular note is the fact that only 60 units were added to the Northwest Cook submarket. This market has a high concentration of Class B and C buildings with pent up demand for Class A product.


New Projects Which Began Offering Occupancy in 2013 and 2014 ytd

The following is the nine developments which are currently engaged in lease-up. Eight of these properties began unit deliveries in 2013 while the Tapestry Naperville began leasing in March 2014.

Property Submarket City Developer Status Units DeliveredAMLI Evanston North Shore Evanston AMLI Leasing 214 2013Randall Highlands Kane North Aurora Next Gen/Marquette Leasing 146 2013The Springs at 127th Will Plainfield Continental Properties Leasing 340 2013Algonquin Square McHenry Algonquin Plesko/Marquette Leasing 220 2013Central Station Apts North Shore Evanston Dodge/M&R Leasing 80 2013Ninety7Fifty on the Park South Cook Orland Park Flaherty Leasing 295 2013Wheaton 121 DuPage Wheaton Morningside Leasing 306 2013Avant at the Arboretum DuPage Lisle Opus/TA Leasing 310 2013Tapestry Naperville Aurora - Naperville Naperville Lennar Leasing 298 2014


Multi-Family Development in Lease Up - Suburban Chicago

Projects Engaged in Lease Up


New Projects Currently Under Construction for Delivery in 2014 and 2015

The following projects are currently under construction, with occupancy expected in 2014/2015.


Property Submarket City Developer Status Units1890 Maple/1881 Oak North Shore Evanston Fifield/King Construction 356Tapestry/I-294 @ Willow Rd North Shore Glenview Lennar Construction 290Reserve at Glenview/NEQ Golf & Waukegan North Shore Glenview Focus/Atlantic Construction 238Midtown Sq/SWC Glnvw/Church North Shore Glenview Trammel Crow Construction 138AMLI Deerfield/SEC Lake/Cook & Wilmot North Shore Deerfield AMLI Construction 240Woodview/SWC 94 & Deerfield Rd North Shore Deerfield Ravine Park/Conor Commer Construction 260The Oaks of Vernon Hills Lake Vernon Hills Reva Construction 304One Arlington Cook NW Arlington Heights Stoneleigh Construction 214Station Boulevard Aurora - Naperville Aurora Station I Construction 327Total 2,367

Multi-Family Development Under Construction - Suburban Chicago

Under Construction Map


Pipeline of Proposed Projects

In addition, we are tracking developments where new product is being proposed but have not yet obtained construction loans nor started construction. Locations range from the North Shore markets out to Kane and Will counties. A few sites have been approved for development by the local municipalities; however, several projects have not moved forward either due to rents not being high enough to support construction costs or the inability to obtain either the equity or a construction loan in the current economic environment.

The proposed projects are typically 200 to 300 units and are fairly widely distributed throughout the region.

Proposed Pipeline of Multi-Family - Suburban ChicagoProperty Submarket City Developer Status Units

Aurora/NapervilleMetro 59 Aurora - Naperville Aurora Next Generation Planning 455

Cook NWWheeling Town Center Cook NW Wheeling Urban R2 Planning 288Northgate Crossings Cook NW Wheeling Reva Planning 288SEC Northwest Hwy/Greenwood Cook NW Park Ridge Orchard Development Planning 46205 W Touhy Cook NW Park Ridge Trammel Crow Planning 121Confidential Cook NW Confidential Confidential Planning 200

DuPage CountyHahn site DuPage Elmhurst Morningside Planning 188McChesney & Miller site DuPage Glen Ellyn Next Gen Planning 185Main St/Burlington DuPage Lisle Marquette Planning 200Garden Station DuPage Villa Park Golden Spike Planning 232

Kane CountyVistas of Mill Creek Kane Geneva Shodeen Planning 268Mill Creek Village Center Kane Geneva Shodeen Planning 123

North ShoreNorthshore 770NWC Skokie & Dundee North Shore Northbrook Morningside Planning 347S of Willow at Sanders North Shore Prospect Heights Finger Planning 350SEC Main and Chicago North Shore Evanston O'Donnell Planning 112

South Cook CountyNWC Lake & Forest South Cook Oak Park LSI/Golub/Wood Planning 270Colt Site - Lake/North South Cook Oak Park Clark Street Planning 248The Boulevard at Central Station South Cook Tinley Park South Street Development Planning 167YMCA site/Ogden&LaGrange South Cook LaGrange Opus Planning 300Residences of Orland Park Crossing South Cook Orland Park Reva Planning 231Harlem & South Blvd South Cook Oak Park 4 developers competing Planning 204-300


Conclusions

We are aware of several additional projects being planned throughout the metro area, focused on transit oriented development in downtown markets. With an average delivery of just under 1,000 units per year in the suburban market since 1996, the addition to overall supply has been minimal,


particularly over the past 10 years. Combined with the number of condo conversions that occurred in the market, the supply of rental units has actually seen a notable decline. While certain submarkets are adequately supplied with rental units at this time, we believe opportunities exist to create additional rental product in the overall suburban market. The diverse employment base for the MSA and our direct surveys of buildings in the market indicates a strong long term picture for multi-family rental product.

Difficulties remain however in securing large enough sites suitable for development and obtaining the necessary zoning approvals in light of general community opposition to rental development. As shown, these factors are contributing to a shift in development to more high density sites – potentially in redeveloping downtown markets as transit oriented developments. The costs of construction remain high ($200+ psf) for these mid-rise structures and while demand may certainly exist, the feasible rent levels will be catering to the upper end of the market. While adding supply of substance appears improbable at this point in the MSA overall, we note a significant increase in activity and a particular focus on the North Shore market due to the strong rent levels which have been achieved in that submarket.


DU PAGE COUNTY APARTMENT SUBMARKET OVERVIEW

Market area defined. The DuPage County sub market is defined as roughly 294 to the east, Interstate 290 on the north, Route 59 on the west Will County to the south. Developments located in the Aurora / Naperville corridor in the southwest quadrant of the county are specifically excluded from the DuPage County submarket as they are a submarket unto themselves.

Survey property profile. The database for the DuPage County survey consisted of 26,128 dwelling units. Median unit size for the submarket is 884 square feet which is in-line with the overall suburban market. The median year built was 1977 compared to the overall suburban market having a median of 1981. The DuPage County submarket was developed after much of the Cook County area, as an employment base outside Chicago began to develop.

Demand drivers. Significant housing demand is driven by proximity to trains providing access to Chicago’s CBD, proximity to the Interstate 88 office corridor including the Oak Brook office/retail market, and finally the distribution market located southwest along Interstate 55. Like the Northwest Cook submarket, DuPage County is positioned to provide relatively modest commute times to a number of employment centers.

Rent Trends & Concessions. Median net rent per square foot currently stands at $1.24. Net rent is up 4.1 percent compared to a year ago. Over the past two years rents have increased by 5.4 percent. Some of the highest net rents being achieved in the submarket on a per square foot basis include:

Complex Location Rent PSF AMLI at Danada Wheaton $1.62 Avant at the Arboretum Lisle $1.77 City View at Highlands Lombard $1.64 Elm Creek Apartments Elmhurst $1.66 Legacy at Martin’s Point Lombard $1.78 Regency Place Oakbrook Terrace $2.07 Residences at The Grove Downers Grove $1.87 Versailles on the Lakes Oakbrook Terrace $1.78 Wheaton 121 Wheaton $2.08 One-bedrooms have a median rent of $972 while two bedrooms have a median net rent of $1,228. This market is fairly unique in that the range of rents on both a per square foot and per bedroom basis is narrower than most submarkets, reflecting the more consistent product being offered and more


limited variance in locations within the submarket. We project rents to increase modestly in 2014. Concessions are at just under one month per lease year. They will remain as a marketing tool.

Occupancy. Occupancy is at 94.8 percent compared to 95.0 percent a year ago. Tight market conditions will push rents up further.

Market Revenue Performance. Market performance is a function of the product of net rent and occupancy.

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Suburban Overall DuPage Cty

(c) 2013 Appraisal Research Counselors

The DuPage submarket has performed in line with the overall suburban market. The 1q12 gain mirrored the market and weakened slightly in 3q12. Performance is back on track since 3q12 with the more recent quarters reflecting a flattening in performance.

All Suburban Apts DuPage SubmarketMedian Rents Per Square Foot1Q 2014 $1.24 $1.241Q 2013 $1.21 $1.19

Year/Year Increase in Median Rents1 Year 2.60% 4.10%2 Year 5.60% 5.40%

Occupancy1Q 2014 95.40% 94.80%1Q 2013 95.10% 95.00%

New construction / Pipeline development. During the past 10 years, there have only been four rental apartment buildings with a total of 1,022 units constructed in the DuPage market. Regency Place (Oakbrook Terrace) and the Residences at the Grove (Downers Grove) opened for occupancy in 2007 and 2008, while Avant at the Arboretum (Lisle) and Wheaton 121 (Wheaton) opened for occupancy in 2013. No other rental apartment buildings were constructed during this 10 year period.


Median $ 1.17 1.17 1.16 1.18 1.19 1.22 1.23 1.23 1.24

Median % 94.2 94.5 94.6 94.2 95.0 95.7 95.5 95.0 94.8 Median $ 925 925 947 913 954 980 975 975 972

Median % 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 Median $ 1,129 1,210 1,183 1,208 1,220 1,263 1,260 1,245 1,228

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DuPage Cnty Suburban Metro

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DuPage County Apartments - 1q14Showing (a) median trend line and (b) middle 2/3rds surveyed (thick bars).

Complexes

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Net Rent PSF - $1.24 Snapshot & Trends

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Occupancy - 94.8% Net One Bdrm - $972/mo

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RENTAL COMPETITION SURVEY

In this section of the report, we have included a survey of the competitive rental apartment units located in the market area.

The competition was identified to include properties located within Elmhurst, but extending east, west, and south to include other Class A apartment developments which could provide alternatives to the subject units. In particular, our focus was on other transit-oriented locations, including properties in both Oak Park and Wheaton which provided similar proximity to the Metra station along with other west suburban communities with similar demographics or higher-end rental apartment developments.


Existing Competition Overview

© 2014 Appraisal Research Counselors, All Rights Reserved

Total Date Avg Size Gross Net MonthlyName Address Suburb Units Class Built (SF) Rent PSF Rent PSF Garage Fee Occup.Subject Property Hahn & York Elmhurst 188 A prop. 910

Elmhurst Place 150 Schiller Elmhurst 90 B 1991 1,221 $1.17 $1.17 $100 95.6%Elm Creek Apts & Townhomes One Elm Creek Drive Elmhurst 400 B 1987 1,035 $1.66 $1.66 $100 n/aOvaltime Court 1 Ovaltine Court Villa Park 344 A 2001 951 $1.46 $1.41 $175 95.1%100 Forest Place 100 Forest Place Oak Park 234 B 1986 920 $1.95 $1.95 $100-$120 n/aOak Park City Apartments 675 West Lake St. Oak Park 125 B 1987 889 $1.96 $1.96 $110 90.4%Oak Park Place 479 N. Harlem Oak Park 204 A 2009 862 $2.26 $2.26 $80 97.1%Regency Place 1915 S. Meyers Oakbrook Terrace 112 A 2007 1,213 $2.15 $2.07 Included 91.1%City View at the Highlands 2720 South Highland Lombard 403 A 2003 969 $1.64 $1.64 $60 94.0%Wheaton Center 2 Wheaton Center Wheaton 758 C 1975 938 $1.38 $1.38 $65 94.7%Wheaton 121 121 N. Cross Wheaton 306 A 2013 914 $2.08 $2.08 $125 n/a*Residences at the Grove 2845 Easton Downers Grove 204 A 2008 983 $1.89 $1.87 $150 88.1%Avant at the Arboretum 450 Warrenville Rd Lisle 310 A 2013 946 $1.92 $1.77 Included n/a*Amli at Seven Bridges 6466 Double Eagle Drive Woodridge 520 A 2002 957 $1.48 $1.48 $65-$85 93.3%

Total/Average 4,010 984 $1.77 $1.75

*In lease-up


Unit Mix Total Date

Name Address Suburb Units Class Built Studio 1BR 1BR+den 2BR 2BR+den 3BRSubject Property Hahn & York Elmhurst 188 A prop. 2.10% 50.00% 43.10% 4.30% 0.50%

Elmhurst Place 150 Schiller Elmhurst 90 B 1991 28.90% 13.30% 31.10% 26.60%Elm Creek Apts & Townhomes One Elm Creek Drive Elmhurst 400 B 1987 55.00% 4.50% 35.50% 2.50% 2.50%Ovaltime Court 1 Ovaltine Court Villa Park 344 A 2001 65.40% 34.60%100 Forest Place 100 Forest Place Oak Park 234 B 1986 1.70% 35.90% 12.00% 44.50% 6.00%Oak Park City Apartments 675 West Lake St. Oak Park 125 B 1987 6.40% 48.80% 44.80%Oak Park Place 479 N. Harlem Oak Park 204 A 2009 17.20% 35.80% 16.20% 28.90% 2.00%Regency Place 1915 S. Meyers Oakbrook Terrace 112 A 2007 28.60% 7.10% 35.70% 14.30% 14.30%City View at the Highlands 2720 South Highland Lombard 403 A 2003 55.10% 40.50% 4.50%Wheaton Center 2 Wheaton Center Wheaton 758 C 1975 5.50% 48.20% 46.30%Wheaton 121 121 N. Cross Wheaton 306 A 2013 1.60% 70.90% 26.14% 1.30%Residences at the Grove 2845 Easton Downers Grove 204 A 2008 7.10% 49.00% 35.70% 8.20%Avant at the Arboretum 450 Warrenville Rd Lisle 310 A 2013 71.90% 25.50% 2.60%Amli at Seven Bridges 6466 Double Eagle Drive Woodridge 520 A 2002 46.20% 46.20% 7.70%

Unit Mix


Unit Sizes (Square Footage)

Total DateName Address Suburb Units Class Built Studio 1BR 1BR+den 2BR 2BR+den 3BRSubject Property Hahn & York Elmhurst 188 A prop. 566 683-1,025 997-1,216 1,300 1,494

Elmhurst Place 150 Schiller Elmhurst 90 B 1991 800-1,370 1,025 1,050-1,270 1,470-1,900Elm Creek Apts & Townhomes One Elm Creek Drive Elmhurst 400 B 1987 805-927 869-1,013 1,055-1,539 1,436 2,360Ovaltime Court 1 Ovaltine Court Villa Park 344 A 2001 665-1,150 1,045-1,318100 Forest Place 100 Forest Place Oak Park 234 B 1986 600 698-858 838-924 955-1,107 1,192Oak Park City Apartments 675 West Lake St. Oak Park 125 B 1987 605-615 670-830 910-1,300Oak Park Place 479 N. Harlem Oak Park 204 A 2009 478-531 626-795 853-885 920-1,267 2,700Regency Place 1915 S. Meyers Oakbrook Terrace 112 A 2007 856-998 1,134 1,182 1,319-1,569 1,598-1,749City View at the Highlands 2720 South Highland Lombard 403 A 2003 598-948 1,035-1,523 1,363Wheaton Center 2 Wheaton Center Wheaton 758 C 1975 479-615 692-885 1,081-1,200Wheaton 121 121 N. Cross Wheaton 306 A 2013 558 762-897 1,032-1,186 1,496-1,516Residences at the Grove 2845 Easton Downers Grove 204 A 2008 507 772-820 1,101-1,226 1,735Avant at the Arboretum 450 Warrenville Rd Lisle 310 A 2013 692-953 1,152-1,321 1,517Amli at Seven Bridges 6466 Double Eagle Drive Woodridge 520 A 2002 684-847 921-1,295 1,195

Unit Sizes (SF)


Rental Comparable Map


Rent Summary On the following pages is a summary of the current rents at these projects followed by the individual project summary pages.

Studio Units

Units Pct Sq Ft Rent PSF Avg Concession Rent PSF Avg

4 1.7% 600 $1,339 $2.23 0.0% $1,339 $2.23600 $1,339 $1,339

8 6.4% 605 $1,365 $2.25 0.0% $1,365 $2.25615 $1,375 $1,375

35 17.2% 478 $1,292 $2.67 0.0% $1,292 $2.67531 $1,395 $1,395

21 7.1% 507 $1,065 $2.17 0.0% $1,065 $2.17507 $1,140 $1,140

42 5.5% 479 $945 $1.88 0.0% $945 $1.88615 $1,103 $1,103

5 1.6% 558 $1,260 $2.37 0.0% $1,260 $2.37558 $1,384 $1,384

115 554 $1,250 $2.26 $1,250 $2.26Total/Unweighted Avg

Quoted Rent Net Effective RentUnit Description

100 Forest PlaceStudio $2.23 $2.231.0 Bath $2.23 $2.23

Oak Park City ApartmentsStudio $2.26 $2.261.0 Bath $2.24 $2.24

Oak Park PlaceStudio $2.70 $2.701.0 Bath $2.63 $2.63

Residences at the GroveStudio $2.10 $2.101.0 Bath $2.25 $2.25

The Apartments of Wheaton CenterStudio $1.97 $1.97

1.0 Bath $2.48 $2.48

1.0 Bath $1.79 $1.79

Wheaton 121Studio $2.26 $2.26


One Bedroom Units


84 35.9% 698 $1,289 $1.95 0.0% $1,289 $1.95858 $1,755 $1,755

240 46.2% 684 $1,196 $1.70 0.0% $1,196 $1.70847 $1,397 $1,397

223 71.9% 692 $1,455 $1.98 7.7% $1,343 $1.83953 $1,765 $1,629

222 55.1% 598 $1,150 $1.76 0.0% $1,150 $1.76948 $1,520 $1,520

220 55.0% 805 $1,269 $1.58 0.0% $1,269 $1.58927 $1,474 $1,474

24 26.7% 800 $1,225 $1.42 0.0% $1,225 $1.421,025 $1,350 $1,350

2 2.2% 1,370 $1,425 $1.04 0.0% $1,425 $1.041,370 $1,425 $1,425

61 48.8% 670 $1,298 $1.95 0.0% $1,298 $1.95830 $1,630 $1,630

73 35.8% 626 $1,475 $2.38 0.0% $1,475 $2.38795 $1,904 $1,904

97 28.2% 665 $1,150 $1.41 3.5% $1,110 $1.361,150 $1,245 $1,202

128 37.2% 673 $1,115 $1.59 3.3% $1,078 $1.53908 $1,375 $1,329

32 28.6% 856 $1,865 $2.16 5.9% $1,754 $2.03998 $2,140 $2,013

144 49.0% 772 $1,525 $1.99 0.0% $1,525 $1.99820 $1,650 $1,650

365 48.2% 692 $1,009 $1.47 0.0% $1,009 $1.47885 $1,303 $1,303

217 70.9% 762 $1,478 $2.10 0.0% $1,478 $2.10897 $2,031 $2,031

2,132 852 $1,463 $1.76 $1,441 $1.74


100 Forest PlaceOne Bedroom $1.85 $1.851.0 Bath $2.05 $2.05

Total/Unweighted Avg

AMLI at Seven BridgesOne Bedroom $1.75 $1.751.0 Bath $1.65 $1.65

Avant at the ArboretumOne Bedroom $2.10 $1.941.0 Bath $1.85 $1.71

City View at HighlandsOne Bedroom $1.92 $1.921.0 Bath $1.60 $1.60

Elm Creek Apartments and TownhomesOne Bedroom $1.58 $1.581.0 Bath $1.59 $1.59

Elmhurst PlaceOne Bedroom $1.53 $1.531.0 Bath $1.32 $1.32

Elmhurst PlaceOne Bedroom $1.04 $1.041.5 Bath $1.04 $1.04

Oak Park City ApartmentsOne Bedroom $1.94 $1.941.0 Bath $1.96 $1.96

Oak Park PlaceOne Bedroom $2.36 $2.361.0 Bath $2.40 $2.40

Ovaltine CourtOne Bedroom $1.73 $1.671.0 Bath $1.08 $1.04

Ovaltine CourtOne Bedroom $1.66 $1.601.0 Bath $1.51 $1.46

Regency PlaceOne Bedroom $2.18 $2.051.0 Bath $2.14 $2.02

Residences at the GroveOne Bedroom $1.98 $1.981.0 Bath $2.01 $2.01

The Apartments of Wheaton CenterOne Bedroom $1.46 $1.46

1.0 Bath $2.26 $2.26

1.0 Bath $1.47 $1.47

Wheaton 121One Bedroom $1.94 $1.94


One Bedroom Plus Den Units


28 12.0% 838 $1,629 $2.05 0.0% $1,629 $2.05924 $1,995 $1,995

18 4.5% 869 $1,479 $1.65 0.0% $1,479 $1.651,013 $1,613 $1,613

12 13.3% 1,025 $1,350 $1.32 0.0% $1,350 $1.321,025 $1,350 $1,350

33 16.2% 853 $1,882 $2.17 0.0% $1,882 $2.17885 $1,882 $1,882

8 7.1% 1,134 $2,375 $2.12 13.8% $2,047 $1.831,134 $2,430 $2,094

99 970 $1,799 $1.86 $1,732 $1.80Total/Unweighted Avg

1.0 Bath $2.14 $1.85

Regency PlaceOne Bedroom + Den $2.09 $1.80

1.0-1.5 Bath $2.13 $2.13

Oak Park PlaceOne Bedroom + Den $2.21 $2.21

1.0 Bath $1.32 $1.32

Elmhurst PlaceOne Bedroom + Den $1.32 $1.32

1.0 Bath $1.59 $1.59

Elm Creek Apartments and TownhomesOne Bedroom + Den $1.70 $1.70

1.0 Bath $2.16 $2.16

100 Forest PlaceOne Bedroom + Den $1.94 $1.94



Two Bedroom Units


90 38.5% 955 $1,810 $1.92 0.0% $1,810 $1.921,107 $2,159 $2,159

14 6.0% 963 $1,799 $1.94 0.0% $1,799 $1.94963 $1,946 $1,946

80 15.4% 921 $1,305 $1.55 0.0% $1,305 $1.55921 $1,555 $1,555

160 30.8% 1,110 $1,381 $1.28 0.0% $1,381 $1.281,295 $1,691 $1,691

79 25.5% 1,152 $2,075 $1.84 7.7% $1,915 $1.701,321 $2,490 $2,298

125 31.0% 1,035 $1,650 $1.62 0.0% $1,650 $1.621,279 $2,115 $2,115

24 6.0% 1,191 $1,735 $1.47 0.0% $1,735 $1.471,191 $1,770 $1,770

14 3.5% 1,523 $2,035 $1.35 0.0% $2,035 $1.351,523 $2,065 $2,065

120 30.0% 1,055 $1,685 $1.69 0.0% $1,685 $1.691,190 $2,132 $2,132

18 4.5% 1,535 $2,959 $1.93 0.0% $2,959 $1.931,535 $2,959 $2,959

4 1.0% 1,539 $2,379 $1.55 0.0% $2,379 $1.551,539 $2,379 $2,379

28 31.1% 1,050 $1,375 $1.24 0.0% $1,375 $1.241,270 $1,475 $1,475

38 30.4% 910 $1,811 $2.04 0.0% $1,811 $2.041,130 $2,370 $2,370

18 14.4% 1,112 $1,884 $1.77 0.0% $1,884 $1.771,300 $2,400 $2,400

2 1.0% 920 $2,126 $2.31 0.0% $2,126 $2.31920 $2,126 $2,126

57 27.9% 1,014 $2,241 $2.22 0.0% $2,241 $2.221,267 $2,819 $2,8192.0 Bath $2.22 $2.22

1.0 Bath $2.31 $2.31Oak Park Place

Two Bedroom $2.21 $2.21

2.0 Bath $1.85 $1.85

Oak Park PlaceTwo Bedroom $2.31 $2.31

2.0 Bath $2.10 $2.10Oak Park City Apartments


Oak Park City ApartmentsTwo Bedroom $1.99 $1.99

2.0 Bath $1.16 $1.16

2.5 Bath $1.55 $1.55

Elmhurst PlaceTwo Bedroom $1.31 $1.31

2.5 Bath $1.93 $1.93Elm Creek Apartments and Townhomes


Elm Creek Apartments and TownhomesTwo Bedroom $1.93 $1.93

2.0 Bath $1.79 $1.79

2.0 Bath $1.36 $1.36

Elm Creek Apartments and TownhomesTwo Bedroom $1.60 $1.60

2.0 Bath $1.49 $1.49City View at Highlands


2.0 Bath $1.65 $1.65City View at Highlands


City View at HighlandsTwo Bedroom $1.59 $1.59

2.0 Bath $1.88 $1.74

Avant at the ArboretumTwo Bedroom $1.80 $1.66

2.0 Bath $1.31 $1.31

1.0 Bath $1.69 $1.69AMLI at Seven Bridges


AMLI at Seven BridgesTwo Bedroom $1.42 $1.42

2.0 Bath $2.02 $2.02

1.5-2.5 Bath $1.95 $1.95100 Forest Place



100 Forest PlaceTwo Bedroom $1.90 $1.90


Two Bedroom Units Continued


95 27.6% 1,045 $1,505 $1.50 2.4% $1,469 $1.461,260 $1,955 $1,908

24 7.0% 1,062 $1,435 $1.31 2.7% $1,397 $1.281,318 $1,675 $1,630

40 35.7% 1,182 $2,540 $2.17 0.0% $2,540 $2.171,182 $2,590 $2,590

105 35.7% 1,101 $1,930 $1.80 0.0% $1,930 $1.801,226 $2,275 $2,275

351 46.3% 1,081 $1,215 $1.29 0.0% $1,215 $1.291,200 $1,741 $1,741

14 4.6% 1,032 $2,007 $2.00 0.0% $2,007 $2.001,175 $2,421 $2,421

66 21.6% 1,102 $1,903 $1.96 0.0% $1,903 $1.961,186 $2,601 $2,601

1,566 1,171 $2,011 $1.73 $1,999 $1.72

2.0 Bath $2.19 $2.19


1.0 Bath $2.06 $2.06Wheaton 121


2.0 Bath $1.45 $1.45

Wheaton 121Two Bedroom $1.94 $1.94

The Apartments of Wheaton CenterTwo Bedroom $1.12 $1.12

2.0 Bath $1.86 $1.86

Residences at the GroveTwo Bedroom $1.75 $1.75

2.0 Bath $2.19 $2.19

2.0 Bath $1.27 $1.24

Regency PlaceTwo Bedroom $2.15 $2.15

2.0 Bath $1.55 $1.51Ovaltine Court


Ovaltine CourtTwo Bedroom $1.44 $1.41



Two Bedroom Plus Den Units


14 6.0% 1,192 $2,207 $1.85 0.0% $2,207 $1.851,192 $2,207 $2,207

40 7.7% 1,195 $1,472 $1.33 0.0% $1,472 $1.331,195 $1,698 $1,698

8 2.6% 1,517 $2,800 $1.86 7.7% $2,585 $1.721,517 $2,840 $2,622

10 2.5% 1,436 $2,435 $1.70 0.0% $2,435 $1.701,436 $2,435 $2,435

12 13.3% 1,470 $1,525 $1.04 0.0% $1,525 $1.041,470 $1,525 $1,525

12 13.3% 1,900 $1,735 $0.91 0.0% $1,735 $0.911,900 $1,735 $1,735

16 14.3% 1,319 $2,860 $2.14 9.2% $2,597 $1.951,569 $3,320 $3,015

24 8.2% 1,735 $3,050 $1.79 8.3% $2,796 $1.641,735 $3,150 $2,888

136 1,486 $2,312 $1.58 $2,217 $1.52



100 Forest PlaceTwo Bedroom + Den $1.85 $1.852.0 Bath $1.85 $1.85

AMLI at Seven BridgesTwo Bedroom + Den $1.23 $1.232.0 Bath $1.42 $1.42

Avant at the ArboretumTwo Bedroom + Den $1.85 $1.702.0 Bath $1.87 $1.73

Elm Creek Apartments and TownhomesTwo Bedroom + Den $1.70 $1.702.0 Bath $1.70 $1.70

Elmhurst PlaceTwo Bedroom + Den $1.04 $1.042.0 Bath $1.04 $1.04

Elmhurst PlaceTwo Bedroom + Den $0.91 $0.912.5 Bath $0.91 $0.91

Regency PlaceTwo Bedroom + Den $2.17 $1.972.0 Bath $2.12 $1.92

Residences at the GroveTwo Bedroom + Den $1.76 $1.612.5 Bath $1.82 $1.66


Three Bedroom Units


18 4.5% 1,363 $2,155 $1.58 0.0% $2,155 $1.581,363 $2,155 $2,155

10 2.5% 2,360 $3,999 $1.69 0.0% $3,999 $1.692,360 $3,999 $3,999

4 2.0% 2,700 $4,045 $1.50 0.0% $4,045 $1.502,700 $4,045 $4,045

16 14.3% 1,598 $3,310 $2.12 0.0% $3,310 $2.121,749 $3,785 $3,785

4 1.3% 1,496 $3,351 $2.34 0.0% $3,351 $2.341,516 $3,699 $3,699

52 1,921 $3,454 $1.85 $3,454 $1.85Total/Unweighted Avg

2.0 Bath $2.44 $2.44

2.0 Bath $2.16 $2.16

Wheaton 121Three Bedroom $2.24 $2.24

2.0 Bath $1.50 $1.50

Regency PlaceThree Bedroom $2.07 $2.07

3.0 Bath & up $1.69 $1.69

Oak Park PlaceThree Bedroom $1.50 $1.50

2.0 Bath $1.58 $1.58

Elm Creek Apartments and TownhomesThree Bedroom $1.69 $1.69


City View at HighlandsThree Bedroom $1.58 $1.58


100 Forest Place Cook County-South 100 Forest Place (N of 290, E of Rt 43) Class: B, Market Rate Oak Park, Cook County, IL 60301 ID: 380; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 234 Occupancy: Gas Forced Air Heat Water Avg Unit SF: 920 Quoted Rent: $1.95 Unit Central AC Cable TV Built: 1986 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: 2002 Effective Rent: $1.95 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg Studio 4 1.7% 600 $1,339 $2.23 $2.23 0.0% $1,339 $2.23 $2.23 1.0 Bath 600 $1,339 $2.23 $1,339 $2.23 One Bedroom 84 35.9% 698 $1,289 $1.85 $1.95 0.0% $1,289 $1.85 $1.95 1.0 Bath 858 $1,755 $2.05 $1,755 $2.05 One Bedroom + Den 28 12.0% 838 $1,629 $1.94 $2.05 0.0% $1,629 $1.94 $2.05 1.0 Bath 924 $1,995 $2.16 $1,995 $2.16 Two Bedroom 90 38.5% 955 $1,810 $1.90 $1.92 0.0% $1,810 $1.90 $1.92 1.5-2.5 Bath 1,107 $2,159 $1.95 $2,159 $1.95 ● Townhouse Two Bedroom 14 6.0% 963 $1,799 $1.87 $1.94 0.0% $1,799 $1.87 $1.94 2.0 Bath 963 $1,946 $2.02 $1,946 $2.02 Two Bedroom + Den 14 6.0% 1,192 $2,207 $1.85 $1.85 0.0% $2,207 $1.85 $1.85 2.0 Bath 1,192 $2,207 $1.85 $2,207 $1.85

Paid Parking: $100 (Detached Garage) to $120 (Detached Garage) per month. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Separate Dining Laundry Room 20141 $1.95 0.0% $1.95 Disposal Garage/Enclosed Fitness 20134 $2.03 4.2% $1.94 Dishwasher Window Coverings Fitness Center 20133 $2.01 0.0% $2.01 Patio/Balcony/Deck Extra Storage Rooftop Sundeck 20132 $1.91 0.0% $1.91 Wash/Dry Hookup Pets 20131 $1.79 0.0% $1.79 Range - Gas Parking 20124 $1.78 0.0% $1.78 Range Detached Garage 20123 $1.76 6.3% $1.65 Carpeting 20122 $1.62 0.0% $1.62 20121 $1.64 4.2% $1.57 Notes: Washer/Dryer in the TH units only. Tower units have common area laundry on each AIMCO floor. Parking garage has 3 levels: 2 covered and 1 uncovered. Renovations include wood laminate floors and white appliances.


AMLI at Seven Bridges DuPage County 6466 Double Eagle Drive (N of Hobson, W of Rt 53) Class: A, Market Rate Woodridge, DuPage County, IL 60517 ID: 329; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 520 Occupancy: 93.3% Gas Forced Air Heat Water Avg Unit SF: 957 Quoted Rent: $1.48 Unit Central AC Cable TV Built: 2002 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $1.48 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 240 46.2% 684 $1,196 $1.75 $1.70 0.0% $1,196 $1.75 $1.70 1.0 Bath 847 $1,397 $1.65 $1,397 $1.65 Two Bedroom 80 15.4% 921 $1,305 $1.42 $1.55 0.0% $1,305 $1.42 $1.55 1.0 Bath 921 $1,555 $1.69 $1,555 $1.69 Two Bedroom 160 30.8% 1,110 $1,381 $1.24 $1.28 0.0% $1,381 $1.24 $1.28 2.0 Bath 1,295 $1,691 $1.31 $1,691 $1.31 Two Bedroom + Den 40 7.7% 1,195 $1,472 $1.23 $1.33 0.0% $1,472 $1.23 $1.33 2.0 Bath 1,195 $1,698 $1.42 $1,698 $1.42

Paid Parking: $65 (Self-park Garage) to $85 (Self-park Garage) per month. Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Separate Dining Laundry Room 20141 $1.48 0.0% 93.3% $1.48 Disposal Garage/Enclosed Clubhouse 20134 $1.43 0.0% 95.2% $1.43 Dishwasher Window Coverings Business Center 20133 $1.48 0.0% 94.2% $1.48 Microwave Doorman Meeting Rooms 20132 $1.56 0.0% 98.7% $1.56 Patio/Balcony/Deck Extra Storage Fitness 20131 $1.49 0.0% 97.9% $1.49 WasherDryer Incl Pets Fitness Center 20124 $1.41 0.0% 97.7% $1.41 Range - Electric Parking Outdoor Pool 20123 $1.41 0.0% 93.1% $1.41 Range Surface Parking Tennis Court 20122 $1.60 0.0% 98.5% $1.60 Carpeting Self-park Garage Playground 20121 $1.53 0.0% 98.3% $1.53 Notes: Property does not offer concessions or utilities AMLI Residential


Avant at the Arboretum DuPage County 450 Warrenville Rd Class: A, Market Rate Lisle, DuPage County, IL 60532 ID: 1224; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 310 Occupancy: 42.9% Gas Forced Air Heat Water Avg Unit SF: 946 Quoted Rent: $1.92 Unit Central AC Cable TV Built: 2013 Concessions: 7.7% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $1.77 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 223 71.9% 692 $1,455 $2.10 $1.98 7.7% $1,343 $1.94 $1.83 1.0 Bath 953 $1,765 $1.85 $1,629 $1.71 Two Bedroom 79 25.5% 1,152 $2,075 $1.80 $1.84 7.7% $1,915 $1.66 $1.70 2.0 Bath 1,321 $2,490 $1.88 $2,298 $1.74 Two Bedroom + Den 8 2.6% 1,517 $2,800 $1.85 $1.86 7.7% $2,585 $1.70 $1.72 2.0 Bath 1,517 $2,840 $1.87 $2,622 $1.73

Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Balconies Hardwood Floors Clubhouse 20141 $1.92 7.7% 42.9% $1.77 Granite Counters Pets Business Center 20134 $1.70 8.3% 21.6% $1.56 Refrigerator Parking Meeting Rooms 20133 $1.91 20.0% 10.0% $1.53 Disposal Attached Garage Party/Social Room Dishwasher Picnic Tables Microwave Fitness WasherDryer Incl Fitness Center Range - Electric Outdoor Pool Notes: 1Q14- Occupancy is leased occupancy. Property opened in Sept. 2013. Lincoln Property


City View at Highlands DuPage County 2720 South Highland Avenue (Highland Ave, N of 88) Class: A, Market Rate Lombard, DuPage County, IL 60148 ID: 90; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 403 Occupancy: 94.0% Gas Forced Air Heat Water Avg Unit SF: 969 Quoted Rent: $1.64 Unit Central AC Cable TV Built: 2003 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $1.64 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 222 55.1% 598 $1,150 $1.92 $1.76 0.0% $1,150 $1.92 $1.76 1.0 Bath 948 $1,520 $1.60 $1,520 $1.60 Two Bedroom 125 31.0% 1,035 $1,650 $1.59 $1.62 0.0% $1,650 $1.59 $1.62 2.0 Bath 1,279 $2,115 $1.65 $2,115 $1.65 Two Bedroom 24 6.0% 1,191 $1,735 $1.46 $1.47 0.0% $1,735 $1.46 $1.47 2.0 Bath 1,191 $1,770 $1.49 $1,770 $1.49 ● Duplex Two Bedroom 14 3.5% 1,523 $2,035 $1.34 $1.35 0.0% $2,035 $1.34 $1.35 2.0 Bath 1,523 $2,065 $1.36 $2,065 $1.36 Three Bedroom 18 4.5% 1,363 $2,155 $1.58 $1.58 0.0% $2,155 $1.58 $1.58 2.0 Bath 1,363 $2,155 $1.58 $2,155 $1.58

Paid Parking: $60 (Self-park Garage) per month. Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Separate Dining Clubhouse 20141 $1.64 0.0% 94.0% $1.64 Disposal Garage/Enclosed Business Center 20134 $1.64 3.9% 96.3% $1.58 Dishwasher Window Coverings Fitness 20133 $1.64 0.0% 98.5% $1.64 Microwave Doorman Fitness Center 20132 $1.65 6.1% 98.0% $1.55 Patio/Balcony/Deck Extra Storage Outdoor Pool 20131 $1.62 7.6% 87.6% $1.50 WasherDryer Incl Pets 20124 $1.60 0.0% 95.0% $1.60 Range - Electric Parking 20123 $1.59 0.0% 92.8% $1.59 Range Self-park Garage 20122 $1.58 1.8% 92.1% $1.55 Carpeting 20121 $1.60 0.0% 87.8% $1.60 Notes: 1Q14- Very select units have a one month free concession. Renovated units have a Sentinel Real Estate Corporation $90-$130 premium. One garage parking space is included.


Elm Creek Apartments and Townhomes DuPage County One Elm Creek Drive (N of Rt 38, W of 88) Class: B, Market Rate Elmhurst, DuPage County, IL 60126 ID: 92; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 400 Occupancy: Gas Forced Air Heat Water Avg Unit SF: 1,035 Quoted Rent: $1.66 Unit Central AC Cable TV Built: 1987 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: 2008 Effective Rent: $1.66 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 220 55.0% 805 $1,269 $1.58 $1.58 0.0% $1,269 $1.58 $1.58 1.0 Bath 927 $1,474 $1.59 $1,474 $1.59 One Bedroom + Den 18 4.5% 869 $1,479 $1.70 $1.65 0.0% $1,479 $1.70 $1.65 1.0 Bath 1,013 $1,613 $1.59 $1,613 $1.59 Two Bedroom 120 30.0% 1,055 $1,685 $1.60 $1.69 0.0% $1,685 $1.60 $1.69 2.0 Bath 1,190 $2,132 $1.79 $2,132 $1.79 Two Bedroom 18 4.5% 1,535 $2,959 $1.93 $1.93 0.0% $2,959 $1.93 $1.93 2.5 Bath 1,535 $2,959 $1.93 $2,959 $1.93 ● Townhouse plus 1 car garage Two Bedroom 4 1.0% 1,539 $2,379 $1.55 $1.55 0.0% $2,379 $1.55 $1.55 2.5 Bath 1,539 $2,379 $1.55 $2,379 $1.55 Two Bedroom + Den 10 2.5% 1,436 $2,435 $1.70 $1.70 0.0% $2,435 $1.70 $1.70 2.0 Bath 1,436 $2,435 $1.70 $2,435 $1.70 Three Bedroom 10 2.5% 2,360 $3,999 $1.69 $1.69 0.0% $3,999 $1.69 $1.69 3.0 Bath & up 2,360 $3,999 $1.69 $3,999 $1.69 ● Townhouse plus 2 car garage Paid Parking: $10 (Surface Parking) to $100 (Self-park Garage) per month. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Garage/Enclosed Clubhouse 20141 $1.66 0.0% $1.66 Disposal Window Coverings Business Center 20134 $1.59 0.0% $1.59 Dishwasher Doorman Fitness 20133 $1.71 0.0% $1.71 Microwave Extra Storage Fitness Center 20132 $1.64 0.0% $1.64 Patio/Balcony/Deck Pets Indoor Pool 20131 $1.60 0.0% $1.60 WasherDryer Incl Parking Sauna 20124 $1.55 0.0% $1.55 Range - Electric Surface Parking Whirlpool 20123 $1.60 6.3% $1.50 Carpeting Self-park Garage Tennis Court 20122 $1.65 0.0% $1.65 20121 $1.75 0.0% $1.75 Notes: AIMCO


Elmhurst Place DuPage County 150 Schiller Ave Class: B, Market Rate Elmhurst, DuPage County, IL 60126 ID: 1029; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 90 Occupancy: 95.6% Gas Forced Air Heat Water Avg Unit SF: 1,221 Quoted Rent: $1.17 Unit Central AC Cable TV Built: 1991 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $1.17 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 24 26.7% 800 $1,225 $1.53 $1.42 0.0% $1,225 $1.53 $1.42 1.0 Bath 1,025 $1,350 $1.32 $1,350 $1.32 One Bedroom 2 2.2% 1,370 $1,425 $1.04 $1.04 0.0% $1,425 $1.04 $1.04 1.5 Bath 1,370 $1,425 $1.04 $1,425 $1.04 ● Duplex One Bedroom + Den 12 13.3% 1,025 $1,350 $1.32 $1.32 0.0% $1,350 $1.32 $1.32 1.0 Bath 1,025 $1,350 $1.32 $1,350 $1.32 Two Bedroom 28 31.1% 1,050 $1,375 $1.31 $1.24 0.0% $1,375 $1.31 $1.24 2.0 Bath 1,270 $1,475 $1.16 $1,475 $1.16 Two Bedroom + Den 12 13.3% 1,470 $1,525 $1.04 $1.04 0.0% $1,525 $1.04 $1.04 2.0 Bath 1,470 $1,525 $1.04 $1,525 $1.04 Two Bedroom + Den 12 13.3% 1,900 $1,735 $0.91 $0.91 0.0% $1,735 $0.91 $0.91 2.5 Bath 1,900 $1,735 $0.91 $1,735 $0.91 ● Penthouse Duplex

Paid Parking: $100 (Self-park Garage) per month. Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Fireplace Clubhouse 20141 $1.17 0.0% 95.6% $1.17 Dishwasher Window Coverings Fitness 20134 $1.17 0.0% 97.8% $1.17 Microwave Extra Storage Fitness Center 20133 $1.17 0.0% 97.8% $1.17 Patio/Balcony/Deck Parking 20132 $1.16 0.0% 96.7% $1.16 WasherDryer Incl Surface Parking 20131 $1.16 0.0% 97.8% $1.16 Range Self-park Garage 20124 $1.14 0.0% 97.8% $1.14 Carpeting 20123 $1.14 0.0% 96.7% $1.14 20122 $1.14 0.0% 97.8% $1.14 20121 $1.14 0.0% 98.9% $1.14 Notes: Walsh Partners


Oak Park City Apartments Cook County-South 675 West Lake Street (Lake St, E of Rt 43) Class: B, Market Rate Oak Park, Cook County, IL 60302 ID: 381; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 125 Occupancy: 90.4% Electric Forced Air Heat Water Avg Unit SF: 889 Quoted Rent: $1.96 Bldg Central AC Cable TV Built: 1987 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: 2007 Effective Rent: $1.96 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg Studio 8 6.4% 605 $1,365 $2.26 $2.25 0.0% $1,365 $2.26 $2.25 1.0 Bath 615 $1,375 $2.24 $1,375 $2.24 One Bedroom 61 48.8% 670 $1,298 $1.94 $1.95 0.0% $1,298 $1.94 $1.95 1.0 Bath 830 $1,630 $1.96 $1,630 $1.96 Two Bedroom 38 30.4% 910 $1,811 $1.99 $2.04 0.0% $1,811 $1.99 $2.04 2.0 Bath 1,130 $2,370 $2.10 $2,370 $2.10 ● Duplex Two Bedroom 18 14.4% 1,112 $1,884 $1.69 $1.77 0.0% $1,884 $1.69 $1.77 2.0 Bath 1,300 $2,400 $1.85 $2,400 $1.85 ● Duplex

Paid Parking: $110 (Self-park Garage) per month. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Separate Dining Laundry Room 20141 $1.96 0.0% 90.4% $1.96 Disposal Garage/Enclosed Business Center 20134 $2.05 12.5% 83.2% $1.79 Dishwasher Window Coverings Fitness 20133 $1.89 0.0% 89.6% $1.89 Patio/Balcony/Deck Extra Storage Fitness Center 20132 $2.03 7.9% 91.2% $1.87 Range - Electric Pets 20131 $1.96 0.0% 96.8% $1.96 Range Parking 20124 $1.99 0.0% 96.0% $1.99 Carpeting Attached Garage 20123 $1.94 0.0% 96.8% $1.94 20122 $1.97 4.2% 94.4% $1.88 20121 $1.89 0.0% 93.6% $1.89 Notes: Common laundry on each floor. Renovations included wood look vinyl flooring, black Village Green Properties appliances, and granite countertops.


Oak Park Place Cook County-South 479 N Harlem Class: A, Market Rate Oak Park, Cook County, IL 60301 ID: 784; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 204 Occupancy: 97.1% Electric Baseboard Heat Water Avg Unit SF: 862 Quoted Rent: $2.26 Unit Central AC Cable TV Built: 2009 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $2.26 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg Studio 35 17.2% 478 $1,292 $2.70 $2.67 0.0% $1,292 $2.70 $2.67 1.0 Bath 531 $1,395 $2.63 $1,395 $2.63 One Bedroom 73 35.8% 626 $1,475 $2.36 $2.38 0.0% $1,475 $2.36 $2.38 1.0 Bath 795 $1,904 $2.40 $1,904 $2.40 One Bedroom + Den 33 16.2% 853 $1,882 $2.21 $2.17 0.0% $1,882 $2.21 $2.17 1.0-1.5 Bath 885 $1,882 $2.13 $1,882 $2.13 Two Bedroom 2 1.0% 920 $2,126 $2.31 $2.31 0.0% $2,126 $2.31 $2.31 1.0 Bath 920 $2,126 $2.31 $2,126 $2.31 Two Bedroom 57 27.9% 1,014 $2,241 $2.21 $2.22 0.0% $2,241 $2.21 $2.22 2.0 Bath 1,267 $2,819 $2.22 $2,819 $2.22 Three Bedroom 4 2.0% 2,700 $4,045 $1.50 $1.50 0.0% $4,045 $1.50 $1.50 2.0 Bath 2,700 $4,045 $1.50 $4,045 $1.50 ● Townhomes

Paid Parking: $80 (Self-park Garage) per month. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Extra Storage Business Center 20141 $2.26 0.0% 97.1% $2.26 Disposal 9' Ceiling Fitness 20134 $2.20 0.0% 97.1% $2.20 Dishwasher Parking Fitness Center 20133 $2.21 0.0% 95.1% $2.21 Microwave Self-park Garage Rooftop Sundeck 20132 $2.39 0.0% 99.5% $2.39 Patio/Balcony/Deck 20131 $2.29 0.0% 91.1% $2.29 WasherDryer Incl 20124 $2.40 0.0% 100.0% $2.40 Range - Electric 20123 $2.31 0.0% 92.6% $2.31 Carpeting 20122 $2.29 0.0% 96.3% $2.29 20121 $2.31 7.7% 99.5% $2.14 Notes: Building opened 2/10/09. Units feature loft finishes (exposed concrete), soaking tubs, Lincoln Property Company stainless appliances, granite countertops. A Trader Joes is located on the first floor.


Ovaltine Court DuPage County 1 Ovaltine Court (N of St. Charles Rd, W of Rt 83) Class: A, Market Rate Villa Park, DuPage County, IL 60181 ID: 28; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 344 Occupancy: 95.1% Gas Forced Air Heat Water Avg Unit SF: 951 Quoted Rent: $1.46 Unit Central AC Cable TV Built: 2001 Concessions: 3.0% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $1.41 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 97 28.2% 665 $1,150 $1.73 $1.41 3.5% $1,110 $1.67 $1.36 1.0 Bath 1,150 $1,245 $1.08 $1,202 $1.04 ● Loft Units One Bedroom 128 37.2% 673 $1,115 $1.66 $1.59 3.3% $1,078 $1.60 $1.53 1.0 Bath 908 $1,375 $1.51 $1,329 $1.46 Two Bedroom 95 27.6% 1,045 $1,505 $1.44 $1.50 2.4% $1,469 $1.41 $1.46 2.0 Bath 1,260 $1,955 $1.55 $1,908 $1.51 Two Bedroom 24 7.0% 1,062 $1,435 $1.35 $1.31 2.7% $1,397 $1.31 $1.28 2.0 Bath 1,318 $1,675 $1.27 $1,630 $1.24 ● Loft Units

Paid Parking: $175 (Attached Garage) per month. Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Fireplace Clubhouse 20141 $1.46 3.0% 95.1% $1.41 Disposal Separate Dining Business Center 20134 $1.47 0.0% 91.0% $1.47 Dishwasher Garage/Enclosed Meeting Rooms 20133 $1.46 0.0% 93.0% $1.46 Patio/Balcony/Deck Window Coverings Fitness 20132 $1.37 0.0% 96.2% $1.37 WasherDryer Incl Extra Storage Fitness Center 20131 $1.41 0.0% 96.2% $1.41 Range - Electric Pets Outdoor Pool 20124 $1.32 0.0% 94.2% $1.32 Carpeting Parking Playground 20123 $1.31 0.0% 95.9% $1.31 Surface Parking Fitness Trails 20122 $1.31 0.0% 95.6% $1.31 Attached Garage 20121 $1.31 0.0% 95.6% $1.31 Notes: Eleven buildings are three-story frame walkups containing a total of 223 units. One McCaffery Interests building is a vintage four-story brick loft containing 121 units. The development also includes six retail spaces containing a total of 6,000 square feet.


Regency Place DuPage County 1915 S Meyers Rd Class: A, Market Rate Oakbrook Terrace, DuPage County, IL 60148 ID: 744; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 112 Occupancy: 91.1% Gas Forced Air Heat Water Avg Unit SF: 1,213 Quoted Rent: $2.15 Unit Central AC Cable TV Built: 2007 Concessions: 3.8% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $2.07 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg One Bedroom 32 28.6% 856 $1,865 $2.18 $2.16 5.9% $1,754 $2.05 $2.03 1.0 Bath 998 $2,140 $2.14 $2,013 $2.02 One Bedroom + Den 8 7.1% 1,134 $2,375 $2.09 $2.12 13.8% $2,047 $1.80 $1.83 1.0 Bath 1,134 $2,430 $2.14 $2,094 $1.85 Two Bedroom 40 35.7% 1,182 $2,540 $2.15 $2.17 0.0% $2,540 $2.15 $2.17 2.0 Bath 1,182 $2,590 $2.19 $2,590 $2.19 Two Bedroom + Den 16 14.3% 1,319 $2,860 $2.17 $2.14 9.2% $2,597 $1.97 $1.95 2.0 Bath 1,569 $3,320 $2.12 $3,015 $1.92 Three Bedroom 16 14.3% 1,598 $3,310 $2.07 $2.12 0.0% $3,310 $2.07 $2.12 2.0 Bath 1,749 $3,785 $2.16 $3,785 $2.16

Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Window Coverings Clubhouse 20141 $2.15 3.8% 91.1% $2.07 Disposal Parking Business Center 20134 $2.15 8.3% 92.0% $1.97 Dishwasher Self-park Garage Meeting Rooms 20133 $2.15 8.3% 93.8% $1.97 Microwave Party/Social Room 20132 $2.15 0.0% 98.2% $2.15 Patio/Balcony/Deck Fitness 20131 $2.11 6.3% 93.8% $1.98 WasherDryer Incl Fitness Center 20124 $2.11 3.4% 92.0% $2.04 Range Indoor Pool 20123 $2.11 8.3% 92.9% $1.93 Carpeting Sauna 20122 $2.11 1.8% 89.3% $2.07 Whirlpool 20121 $2.10 10.6% 85.7% $1.87 Notes: Opened September 2007. Property signage added in Jan 2008. One parking space RMK is included with 1BD rentals and two spaces are included for the 2BD and 3BD rentals.


Residences at the Grove DuPage County 2845 Easton St (N of Butterfield, W of I-355, behind Home Depot) Class: A, Market Rate Downers Grove, DuPage County, IL 60515 ID: 772; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 294 Occupancy: 88.1% Gas Forced Air Heat Water Avg Unit SF: 983 Quoted Rent: $1.89 Unit Central AC Cable TV Built: 2008 Concessions: 1.1% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $1.87 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg Studio 21 7.1% 507 $1,065 $2.10 $2.17 0.0% $1,065 $2.10 $2.17 1.0 Bath 507 $1,140 $2.25 $1,140 $2.25 One Bedroom 144 49.0% 772 $1,525 $1.98 $1.99 0.0% $1,525 $1.98 $1.99 1.0 Bath 820 $1,650 $2.01 $1,650 $2.01 Two Bedroom 105 35.7% 1,101 $1,930 $1.75 $1.80 0.0% $1,930 $1.75 $1.80 2.0 Bath 1,226 $2,275 $1.86 $2,275 $1.86 Two Bedroom + Den 24 8.2% 1,735 $3,050 $1.76 $1.79 8.3% $2,796 $1.61 $1.64 2.5 Bath 1,735 $3,150 $1.82 $2,888 $1.66 ● townhouse

Paid Parking: $150 (Self-park Garage) per month. Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Separate Dining Clubhouse 20141 $1.89 1.1% 88.1% $1.87 Disposal Window Coverings Business Center 20134 $1.78 1.2% 92.5% $1.76 Dishwasher Extra Storage Meeting Rooms 20133 $1.85 5.3% 94.2% $1.75 Microwave 9' Ceiling Party/Social Room 20132 $1.85 6.8% 94.9% $1.72 Patio/Balcony/Deck Parking Fitness 20131 $1.85 4.3% 93.2% $1.77 WasherDryer Incl Self-park Garage Fitness Center 20124 $1.83 7.2% 94.2% $1.69 Range - Gas Outdoor Pool 20123 $1.83 7.2% 94.6% $1.69 Carpeting 20122 $1.83 3.7% 94.2% $1.76 20121 $1.83 8.3% 96.3% $1.67 Notes: Open in 10/08. RMK


The Apartments of Wheaton Center DuPage County 2 Wheaton Center (W of West St, N of Rt 38) Class: C, Market Rate Wheaton, DuPage County, IL 60189 ID: 94; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 758 Occupancy: 94.7% Gas Forced Air Heat Water Avg Unit SF: 938 Quoted Rent: $1.38 Unit Central AC Cable TV Built: 1975 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: 2007 Effective Rent: $1.38 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg Studio 42 5.5% 479 $945 $1.97 $1.88 0.0% $945 $1.97 $1.88 1.0 Bath 615 $1,103 $1.79 $1,103 $1.79 One Bedroom 365 48.2% 692 $1,009 $1.46 $1.47 0.0% $1,009 $1.46 $1.47 1.0 Bath 885 $1,303 $1.47 $1,303 $1.47 Two Bedroom 351 46.3% 1,081 $1,215 $1.12 $1.29 0.0% $1,215 $1.12 $1.29 2.0 Bath 1,200 $1,741 $1.45 $1,741 $1.45

Paid Parking: $65 (Self-park Garage) per month. Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Refrigerator Fireplace Laundry Room 20141 $1.38 0.0% 94.7% $1.38 Dishwasher Separate Dining Clubhouse 20134 $1.39 0.0% 92.0% $1.39 Patio/Balcony/Deck Garage/Enclosed Business Center 20133 $1.40 0.0% 97.9% $1.40 WasherDryer Incl Extra Storage Fitness 20132 $1.42 0.0% 97.4% $1.42 Range - Gas Pets Fitness Center 20131 $1.43 0.0% 92.5% $1.43 Range Parking Outdoor Pool 20124 $1.37 0.0% 86.0% $1.37 Carpeting Self-park Garage Tennis Court 20123 $1.33 0.0% 93.5% $1.33 Playground 20122 $1.33 0.0% 92.7% $1.33 20121 $1.25 0.0% 89.4% $1.25 Notes: Owner bills for utilities $60 for studio to $95 for 2 BD per month. D & K Living Corp


Wheaton 121 DuPage County 121 N Cross St Class: A, Market Rate Wheaton, DuPage County, IL 60187 ID: 1206; YrQtr: 20141

Utility Description_____ L_ _T Service__ L_ _T Physical Profile_____ Economic Profile_______ Lights Trash Units: 306 Occupancy: Gas Forced Air Heat Water Avg Unit SF: 914 Quoted Rent: $2.08 Unit Central AC Cable TV Built: 2013 Concessions: 0.0% L=Landlord pays, T=Tenant pays Broadband Renovated: na Effective Rent: $2.08 ______Quoted Rent_______ ___Net Effective Rent_____ Unit Description___ Units _Pct_ Sq Ft _Rent_ _PSF_ PSF Avg Concession _Rent_ _PSF_ PSF Avg Studio 5 1.6% 558 $1,260 $2.26 $2.37 0.0% $1,260 $2.26 $2.37 1.0 Bath 558 $1,384 $2.48 $1,384 $2.48 One Bedroom 217 70.9% 762 $1,478 $1.94 $2.10 0.0% $1,478 $1.94 $2.10 1.0 Bath 897 $2,031 $2.26 $2,031 $2.26 Two Bedroom 14 4.6% 1,032 $2,007 $1.94 $2.00 0.0% $2,007 $1.94 $2.00 1.0 Bath 1,175 $2,421 $2.06 $2,421 $2.06 Two Bedroom 66 21.6% 1,102 $1,903 $1.73 $1.96 0.0% $1,903 $1.73 $1.96 2.0 Bath 1,186 $2,601 $2.19 $2,601 $2.19 Three Bedroom 4 1.3% 1,496 $3,351 $2.24 $2.34 0.0% $3,351 $2.24 $2.34 2.0 Bath 1,516 $3,699 $2.44 $3,699 $2.44

Paid Parking: $125 (Reserved Pkng Space) to $190 (Tandem Space) per month. Free parking available. Amenities________________________________ Trends_____________________________ Typical Additional Common Yr-Qtr Quoted PSF Concession Occup % Net PSF Granite Islands Separate Dining Business Center 20141 $2.08 0.0% $2.08 Granite Counters Window Coverings Meeting Rooms 20134 $2.08 0.0% $2.08 Refrigerator Hardwood Floors Party/Social Room 20133 $2.08 7.7% $1.92 Disposal Extra Storage Picnic Tables 20132 $2.18 7.7% $2.01 Dishwasher Pets Fitness Microwave 9' Ceiling Fitness Center Patio/Balcony/Deck Parking Outdoor Pool WasherDryer Incl Self-park Garage Range - Gas Carpeting Notes: Leasing began in July 2013 with occupancy in the fall of 2013. Morningside Wheaton, LLC As of June 2014, the property is 60% leased.


LEASE-UP ABSORPTION SURVEY: 2004-2014

Suburban Apartment Lease-up Survey © 2014 Appraisal Research Counselors, All Rights Reserved

Total Leasing AverageName Suburb Submarket Units Began Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Leased/MonthAmli at Museum Gardens Vernon Hills Lake 298 3Q 2004 18 month lease up to stabilized 17Coventry Glen Round Lake Lake 225 2Q 2005 12 month lease-up to stabilized 19301 Riverwalk Place Buffalo Grove Lake 90 4Q 2006 27 49 70 79 78 5Regency Place Oakbrook Terrace DuPage 112 3Q 2007 17 30 49 62 72 90 86 86 104 4415 Premier Evanston North Shore 221 3Q 2008 35 60 66 146 177 150 177 170 172 176 206 6Residences at the Grove Downers Grove DuPage 294 3Q 2008 4 47 84 141 132 174 211 236 258 10Oak Park Place Oak Park Cook Cty S 190 1Q 2009 42 49 61 76 141 152 170 8Commons at Town Center Vernon Hills Lake 85 4Q 2009 12 month lease-up to stabilized 7River 595 Des Plaines Cook Cty NW 60 1Q 2011 18 60 (4 month lease-up to stabilized) 15AMLI Evanston Evanston North Shore 195 1Q 2013 22 51 87 117 151 121717 Evanston North Shore 175 1Q 2013 5 106 139 147 170 13Ninety7Fifty on the Park Orland Park South Cook 295 2Q 2013 97 183 207 245 20The Springs at 127th Plainfield Will 340 1Q 2013 102 181 199 255 299 21Randall Highlands North Aurora Kane 146 2Q 2013 11 45 77 102 9Central Station Evanston North Shore 80 2Q 2013 6 28 39 56 7Algonquin Square Algonquin Kane 220 2Q 2013 15 36 106 167 17Avant at the Arboretum Lisle DuPage 310 3Q 2013 31 67 133 17

Condominium Developments with Large-Scale Rental Programs for their Unsold InventoryPort Clinton Vernon Hills Lake 60 2Q 2009 6 month lease-up to stabilized 10Optima Old Orchard Woods Skokie North Shore 169 1Q 2011 6 month lease-up to stabilized 28Kingston Pointe Des Plaines Cook Cty NW 144 2Q 2011 43 49 61 86 102 126 128 135 7

Total Units Leased

The survey is showing average monthly absorption rates ranging from 4 to 28 units per month. Some of the slower leasing properties had issues particularly pertaining to that property, such as challenging locations with poor visibility or issues of timing (opening during the recession).

From 2Q 2009 until 2013, the projects which leased up were originally designed or intended to be condominiums, as new construction rental apartment development in the suburbs had been on hiatus since 2009. However, nine new properties were constructed recently and began lease-up in 2013. The lease-up pace in these developments has varied depending upon a number of factors including the strength of the location, product type, price point, competing rental alternatives, etc.

In addition, Morningside’s Wheaton 121 project, the most comparable project currently engaged in lease-up, has already leased 60% of its 306 units (180+ units) within less than a one year time period. Given the similarities between this project and the subject project, its lease-up experience to date is very reflective of the pace which can be expected for the subject property.


Affordable Housing Historic/Landmark Religious InstitutionsAir Pollution Control Facility Land/Acreage RestaurantsApartments Industrial Rights-of-WayAssisted Living Facilities Residential Senior HousingAutomobile Showrooms Loft Buildings Service Station SitesCommercial Medical Centers Shopping Centers/MallsCondominiums Mobile Home Parks Special Purpose PropertyCooperative Apts. Motels/Hotels SubdivisionsCorporate Headquarters Nursing Homes SupermarketsEleemosynary Prop. Office Buildings WarehousesGarages Recreational Properties

FEASIBILITY STUDIES MARKET RESEARCH HIGHEST AND BEST USE

INVESTMENT AND MORTGAGE BANKERS/ BANKS GOVERNMENT BODIES/ORGANIZATIONSPENSION FUND ADVISORS American Chartered Bank American Medical Association Boy Scouts of AmericaAmerican Realty Advisors Associated Bank Federal Deposit Ins. CorporationAmerisphere Bank Financial Illinois Housing Development AuthorityBerkadia Commercial Mortgage Bank of America Internal Revenue ServiceCambridge Realty Capital of Illinois Cole Taylor Bank Mercy HousingColumbia National Real Estate Finance Community Investment Corp. National Association of RealtorsCornerstone Real Estate Advisors Bank Leumi Northwestern UniversityGoldman Sachs Deutsche Bank Office of the Comptroller of the CurrencyGreystone Fifth Third U.S. Air Force

Heitman First Bank U.S. Army Corps of EngineersHolliday Fenoglio Fowler First Midwest U.S. Department of Housing & Urban DevelopmentInland Mortgage Corp. Great Bank U.S. General Services AdministrationJP Morgan BMO Harris Bank U.S. NavyKensington Realty Advisors JP Morgan Chase Bank University of ChicagoLove Funding Key BankNorthMarq Capital Lakeside Bank REAL ESTATE ORGANIZATIONSPNC Multifamily Mortgage MB Financial AIMCOPrairie Mortgage Company Northern Trust AMLIPrincipal Capital Real Estate Investors PNC Bank Avalon BayRREEF Popular Community Bank Draper & Kramer

The Private Bank Golub & CompanyINSURANCE COMPANIES US Bank HinesAllstate Wells Fargo Jones Lang LaSalleJohn Hancock Wintrust Financial Corp. Jupiter Realty Corp.Manulife LennarMetLife ATTORNEYS Lincoln PropertyNationwide Life Arnstein & Lehr Magellan Development GroupNew York Life DLA Piper Moran & CoPacific Life Freeborn & Peters MorningsidePrudential Mayer Brown Marquette CompaniesState Farm McDermott Will & Emery Newcastle LimitedUnion Labor Life Neal & Leroy Opus Development

Rinella & Rinella Related MidwestShefsky & Froelich/Taft The Fifield CompaniesStafford Rosenbaum LLP The Habitat Company

The John Buck CompanyTrammel CrowVillage Green CompaniesWaterton ResidentialWestfield Corporation

Representative List of Clients

Representative List of Property Types Appraised


QUALIFICATIONS OF RON DE VRIES, MAI, FRICS PROFESSIONAL EXPERIENCE: Vice President for Appraisal Research Counselors, 1988. Former Assistant Manager, Norwest Financial Inc. 1985-1987. EDUCATION: Bachelor of Science Degree in Economics, May 1985. Western Illinois University TEACHING/APPRAISAL EDUCATION: Appraisal Institute: Current Instructor for the Appraisal Institute. At the National level, served on the curriculum development teams for appraisal Principles, Procedures, Residential Market Analysis and Highest and Best Use, General Income Capitalization Courses Part 1 and 2, Advanced Income Capitalization, General Highest & Best Use, Advanced Highest and Best Use and Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets. Authored Successful Teaching Strategies for the Classroom and frequent speaker at Instructor training events for the Appraisal Institute. University: A guest lecturer at De Paul, IIT and Roosevelt universities. Authored and teach Commercial Real Estate Valuation course for De Paul University as part of the Real Estate Certificate program. Regulatory agency and financial institutions: Authored and teach Commercial Real Estate Valuation – A Guide for Reviewers. Program presented to each of the Western Division offices of the Office of the Comptroller of the Currency (OCC). Authored and teach Appraising the Appraisal to lenders and credit analysts of various lending institutions. Co-Author of the Downtown Chicago Residential Benchmark Report and the Suburban Chicago Apartment & Condo Conversion Benchmark Report. The Downtown report tracks condo development, conversions and apartment rentals in the downtown market. The Suburban report tracks roughly 80,000 apartment units in the suburban MSA along with condo conversion projects. Frequent speaker (CAA, CREC, REIA) on Chicago’s residential markets and quoted regularly in Chicago and national media APPRAISAL INSTITUTE & INDUSTRY PARTICIPATION: Currently serving on the Education Committee and member of the Body of Knowledge Panel for the Appraisal Institute nationally and Chair of Education for the Chicago Chapter. Board Member, Chicagoland Apartment Association. Past involvement with AI at the national level includes Board of Directors, Audit Committee, Chair of Region, Vice Chair of Region, Chair of Publications Panel, Vice Chair & Appointed Trustee of AIET, Chair of Education, Chair of Education Strategy Panel, Chair of Instructor Subcommittee, Chair of Qualifying Education 717 Project and a member of the Seminars and Communications committees. At the local level, past service includes President of the Chicago Chapter, President Elect, Vice President, Treasurer and Secretary offices. Served as a chapter board member for several years. CERTIFICATIONS Certified General Appraiser in Illinois, Indiana and Michigan. PROFESSIONAL AFFILIATIONS: MAI Member #11671, Currently Certified SRA Certificate #2593, Currently Certified. Member, Real Estate Investment Association (REIA) Member, Main Street Association of Realtors Fellow (FRICS), Royal Institution Chartered Surveyors EXPERIENCE: Appraised multi-family, office, retail, hospitality, and various other commercial and industrial properties throughout the Chicago Metropolitan Area and the United States. Experienced with new condo development and condo conversions along with market studies, leased fee and leasehold interests and subdivision analysis. Completed numerous multi-family assignments involving Fannie, Freddie and HUD programs, Low Income Housing Tax Credits, bonds and Section 8 HAP and voucher programs. Qualified as expert witness in Bankruptcy Court as well as for Chicago Zoning Board of Appeals.


QUALIFICATIONS OF GAIL LISSNER, CRE, SRA PROFESSIONAL EXPERIENCE: Vice President and Appraiser for Appraisal Research Counselors. EDUCATION: Bachelor of Arts from Washington University, 1972. Phi Beta Kappa, 1972. STATE OF ILLINOIS: Certified General Real Estate Appraiser Licensed Real Estate Managing Broker THE COUNSELORS OF REAL ESTATE: CRE Designation APPRAISAL INSTITUTE: SRA Certificate #2049, Currently Certified. LAMBDA ALPHA INTERNATIONAL: Member of the Honorary Land Economics Society. Ely Chapter.

Initiated in 2000. PUBLICATIONS: Co-Author of “Residential Resurgence” in the ULI-The Urban Land Institute’s Urban Land Magazine, September 2000 issue, author of numerous articles on the Downtown Chicago housing market in the following publications: Chicago Agent Magazine (August 2009 & 2010), Apt.itudes Magazine (2006-2008), New Homes Magazine (2005-2007), Condo Lifestyles Magazine (2005), Today’s Chicago Woman (March 2002), Illinois Mortgage Bankers Association Magazine (June 2001), Chicago Realtor Magazine (May 2001), CREW Newsletter (Nov. 2001), Northern Illinois Real Estate Magazine (Oct. 2001). Co-Author of two reports which are written on a quarterly basis: The Downtown Chicago Residential Benchmark Report and the Suburban Chicago Apartment Benchmark Report. The Downtown report tracks new condo development, conversions and apartment rentals in the greater downtown market which is published quarterly. The Suburban report tracks roughly 80,000 apartment units in the suburban MSA with prior issues also tracking condo conversion projects. FEATURED SPEAKER: Many speaking engagements pertaining to the housing market, with multiple appearances before organizations such as the Realty Club, Chicago Real Estate Council (CREC), Chicago Association of Realtors, City of Chicago Chapter of the Home Builders Association of Greater Chicago, the Appraisal Institute Chicago Chapter, Chicago Mortgage Attorneys Association, Jewish United Fund Real Estate Division, the Illinois CPA Society, National Real Estate Investment Association (REIA), National Association of Real Estate Investment Managers (NAREIM), the Lincoln Park Builders of Chicago, the Counselors of Real Estate, Chicagoland Apartment Association, Private Bank, Citigroup, the Midwest Builders Conference, Roosevelt University, and University of Illinois at Chicago (UIC). PROFESSIONAL AFFILIATIONS: Appraisal Institute (AI), Counselors of Real Estate (Secretary/Treasurer of the Midwest Chapter: 2009-present), Lambda Alpha International, Realty Club, Chicago Real Estate Council (CREC), Commercial Real Estate Women (CREW), Real Estate Investment Association (REIA), North Shore Barrington Board of Realtors. Mentor for the Goldie B. Wolfe Miller Women Leaders in Real Estate Program at Roosevelt University 2008-2010. Named by Crains Chicago Business as one of the Crains 20 Women to Watch 2008. EXPERIENCE: Overall experience includes appraisals and analytical studies of commercial, apartment, condominium and residential properties in addition to marketability and feasibility studies in a variety of new developments and existing projects. Experience includes appraisals of various types of real estate in the Chicago metropolitan area and many other cities in the United States.

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