TAMPA - ST PETERSBURGMULTIFAMILY

RENTAL TRENDSSUPPLY/DEMANDEMPLOYMENT ANALYTICS

NOVEMBER 2018

SUPPLY

RENTAL TRENDS

DEMAND

Employment Sector Current Share YOY Change

Education and Health Services 15.7% 11,600 4.9%

Leisure and Hospitality 11.7% 7,200 4.0%

Trade, Transportation, and Utilities 19.4% 5,600 1.8%

Mining, Logging and Construction 5.8% 5,500 6.3%

Professional and Business Services 17.2% 5,000 1.9%

Financial Activities 8.1% 3,300 2.6%

Manufacturing 5.5% 3,300 3.9%

Other Services 3.4% 1,800 3.5%

Information 1.6% -200 -0.8%

Government 11.5% -4,200 -2.2%

National RankingOut of 98 Markets 26Rent

Growth 23 EmploymentGrowth [-14] 53 Completions

[-2]

Inventory by Property Status# of Properties

926Completed

208,107 Units

32Under Construction

7,472 Units

24Planned

7,468 Units

125Prospective

26,460 Units

TAMPA - ST PETERSBURG MULTIFAMILY NOVEMBER 2018

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HIGHEST OVERALL PERFORMING SUBMARKETS LOWEST OVERALL PERFORMING SUBMARKETS

Submarket Rent Occupancy YOY Change

Bartow $1,064 95.3% 16.3%

Sulphur Springs $835 96.9% 9.4%

Wellswood $1,046 93.5% 8.2%

Mullis City $1,064 95.9% 7.8%

Gandy/Ballast Point $1,339 93.3% 7.0%

Submarket Rent Occupancy YOY Change

Hyde Park/Davis Island $1,953 94.6% 0.9%

Tampa Heights $1,346 99.5% 0.8%

Downtown St Petersburg $1,367 95.8% 0.8%

Brooksville $700 98.4% -0.7%

Upper St Petersburg $1,077 95.2% -1.6%

HIGHEST PERFORMING SUBMARKET - BARTOW

SUBMARKETS YEAR-OVER-YEAR RENT GROWTH

Properties 4

Units 362

Average Rent/Unit $1,064

Effective YOY Chg 16.3%

RENTAL RATE CHANGE BY SUBMARKET NOVEMBER 2018

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LIFESTYLE APARTMENTS - YEAR-OVER-YEAR RENT GROWTH RENTERS-BY-NECESSITY APARTMENTS - YEAR-OVER-YEAR RENT GROWTH

HIGHEST PERFORMING SUBMARKETS - LIFESTYLE HIGHEST PERFORMING SUBMARKETS - RBN

Submarket Rent Occupancy YOY Change

Feather Sound/High Point $1,259 92.4% 8.6%

Lakeland Highlands $1,172 94.7% 8.1%

Garver City $1,754 94.7% 7.4%

Oakford Park $1,767 96.7% 6.7%

Gandy/Ballast Point $1,641 94% 5.9%

Submarket Rent Occupancy YOY Change

Sulphur Springs $835 96.9% 9.4%

Carrollwood Village $1,096 94.9% 8.4%

Bartow $856 97.1% 8.4%

Wellswood $1,046 93.5% 8.2%

Spring Hill $962 96.9% 8.1%

LOWEST PERFORMING SUBMARKETS - LIFESTYLE LOWEST PERFORMING SUBMARKETS - RBN

Submarket Rent Occupancy YOY Change

Tampa Heights $1,839 98.1% -0.3%

Downtown St Petersburg $1,752 97.1% -0.3%

New Port Richey $1,101 97.5% -0.5%

Pinellas Park $1,420 96.6% -0.9%

Winter Haven $1,061 97.7% -0.9%

Submarket Rent Occupancy YOY Change

Riverview/Valrico $1,109 96.1% 2.0%

Harney $989 95.3% 2.0%

Tampa Heights $1,072 100% 1.9%

Brooksville $700 98.4% -0.7%

Upper St Petersburg $1,001 94.8% -1.0%

FEATHER SOUND/HIGH POINT SULPHUR SPRINGS

Lifestyle RBN Overall

Properties 4 5 9

Units 1,154 1,395 2,549

Avg Rent/Unit $1,259 $1,049 $1,144

Effective YOY Chg 8.6% 3.5% 5.9%

RBN Lifestyle Overall

Properties 6 N/A 6

Units 1,290 N/A 1,290

Avg Rent/Unit $835 N/A $835

Effective YOY Chg 9.4% N/A 9.4%

RENTAL RATE CHANGE BY SUBMARKET AND ASSET QUALITY NOVEMBER 2018

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OVERALL DEVELOPMENT ACTIVITY

PROJECTED COMPLETIONS AS % OF PRIOR INVENTORY - 12 MONTHS ENDING OCTOBER 2019Submarket Growth # Units

Downtown Tampa / Ybor City 33.7% 1,311

Land O'Lakes/Odessa 20.4% 740

Tampa Heights 19.0% 366

Brooksville 14.9% 94

Downtown St Petersburg 13.2% 1,163

Davenport/Haines City 13.1% 326

Gandy/Ballast Point 12.9% 492

Dunedin 9.2% 227

Clearwater 7.9% 214

Gulfport/Lealman 7.2% 126

Hyde Park/Davis Island 6.5% 324

+ 6 More Submarkets 1,346

Market Overall 3.1%6,729 Units

National RankingOut of 98 Markets

7,472 Units

29Lifestyle [+1]

6,639 Units

32Renters-by-Necessity [+1]

833 Units

28Overall

SUPPLY NOVEMBER 2018

TOP DEVELOPERS BY UNITS UNDER CONSTRUCTIONLARGEST COMMUNITIES UNDER CONSTRUCTIONDeveloper # Units # Props

Related Group 768 2

Crescent Communities 394 1

Wheelock Street Capital 384 1

Arlington Properties 348 1

Sun Park Companny 326 1

ECI Group 324 1

ZOM 323 1

Primerica Group One 319 2

Altman Companies 314 1

RIDA Development 307 1

Project Address # Units Developer

Manor Riverwalk 202 South Parker Street Tampa, FL 33606

400 Related Group

Novel Riverwalk 109 West Fortune Street Tampa, FL 33602

394 Crescent Communities

Altis Wiregrass Ranch 28878 Golden Vista Blvd Wesley Chapel, FL 33543

392 Altman Companies

Point at Starkey Ranch, The Gunn Hwy & State Road 54 Odessa, FL 33556

384 Wheelock Street Capital

Icon Central 801 Central Avenue St. Petersburg, FL 33701

368 Related Group

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LIFESTYLE DEVELOPMENT ACTIVITY RENTERS-BY-NECESSITY DEVELOPMENT ACTIVITY

PROJECTED RBN COMPLETIONS AS % OF INVENTORYPROJECTED LIFESTYLE COMPLETIONS AS % OF INVENTORY

Submarket Growth # Units

Downtown Tampa / Ybor City 47.0% 1,108

Gandy/Ballast Point 46.4% 492

Gulfport/Lealman 37.7% 126

Downtown St Petersburg 33.6% 1,163

Clearwater 29.3% 134

Davenport/Haines City 25.2% 326

Land O'Lakes/Odessa 23.9% 740

Dunedin 17.3% 227

Rocky Creek 9.5% 505

New Port Richey 8.9% 223

Hyde Park/Davis Island 8.1% 324

+ 2 More Submarkets 580

Market Overall 6.8%5,948 Units

Submarket Growth # Units

Brooksville 14.9% 94

Downtown Tampa / Ybor City 13.3% 203

Spring Hill 6.7% 92

Brandon/Seffner 4.9% 220

Clearwater 3.5% 80

Largo 2.8% 92

Market Overall 0.6%781 Units

SUPPLY NOVEMBER 2018

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EMPLOYMENT COMPOSITION BY INDUSTRY SECTOR

EMPLOYMENT GROWTH TREND FOR TOTAL NON-FARM AND TWO LARGEST INDUSTRY SECTORS

EARNINGS GROWTH TREND VS NATIONAL

Employment National YOY Change 5-Year ChangeEmployment Sector Jobs % Share Rank Jobs Pct. Jobs Pct.

Trade, Transportation, and Utilities 308K 19.4% 25 5.6K 1.8% 36.6K 13.5%

Professional and Business Services 274K 17.2% 23 5.0K 1.9% 48.7K 21.6%

Education and Health Services 250K 15.7% 26 11.6K 4.9% 32.7K 15.0%

Leisure and Hospitality 186K 11.7% 26 7.2K 4.0% 33.3K 21.9%

Government 183K 11.5% 32 -4.2K -2.2% 0.2K 0.1%

Financial Activities 130K 8.1% 19 3.3K 2.6% 17.5K 15.6%

Mining, Logging and Construction 93K 5.8% 25 5.5K 6.3% 23.2K 33.3%

Manufacturing 87K 5.5% 41 3.3K 3.9% 10.3K 13.4%

Other Services 54K 3.4% 28 1.8K 3.5% 5.5K 11.4%

Information 26K 1.6% 31 -0.2K -0.8% -1.3K -4.7%

Total Non-Farm 1590K 100.0% 25 38.9K 2.5% 206.7K 14.9%

EMPLOYMENT AND EARNINGS NOVEMBER 2018

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Prior 12 Months

35Sale Price [+2]

$141,454Average Price/Unit

10Sale Velocity [-2]

75Properties Sold

12Sale Volume [+1]

$2,512MMTotal Sales

National RankingOut of 98 Markets

MOST ACTIVE SUBMARKETS BY TRANSACTION VOLUME

SALE TRENDS

MOST ACTIVE BUYERS BY # PROPERTIES PURCHASED MOST ACTIVE SELLERS BY # PROPERTIES SOLD

Lifestyle RBN

# Properties 27 48

Total $MM $1,488 $1,024

Avg $/Unit $196,554 $100,494

Company # Units $MM

Hirsh, Douglas A. 3 466 $50.5

Lantower Residential 2 772 $151.7

Greider, David K. 2 727 $69.6

Starlight Investments 2 670 $116.9

LCN Management 2 496 $48.6

Latitude Management Real Estate Investors

2 476 $54.3

White Oak Partners 2 455 $74.3

Blue Roc Premier Properties 2 428 $31.7

Company # Units $MM

Harbor Group International 4 1,273 $136.0

Pollack Shores 3 962 $203.1

Equity Management Partners 3 539 $43.5

Axonic Properties 2 696 $73.2

IMT Capital 2 670 $116.9

Mercury Investments 2 568 $59.7

Greider, David K. 2 284 $32.7

Insula Properties 2 272 $30.7

Submarket # Units $MM

Downtown St Petersburg 8 2,464 $516.4

Westchase 8 2,686 $503.3

Riverview/Valrico 12 2,822 $416.3

Rocky Creek 6 2,166 $288.5

Gandy/Ballast Point 6 1,564 $233.4

Safety Harbor 4 1,524 $226.0

University of South Florida 8 964 $204.8

Sunset Park/Bayside 2 1,378 $193.0

Clair-Mel City 2 900 $188.0

Upper St Petersburg 6 1,870 $184.5

+ 27 More Submarkets 88 17,178 $2,069.8

Total 150 35,516 $5,023.9

$90,000,000320 UnitsBuyer: WRDC

Sale Date: 11/20/2018

SkyHouse Channelside

HIGHEST PRICED PREV. 3 MONTHS

TRANSACTION ACTIVITY NOVEMBER 2018

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COVERAGE

Yardi® Matrix reports on multi-family properties of 50+ units in size.

This report for the Tampa - St Petersburg metro area covers Counties: Hernando, Hillsborough, Pasco, Pinellas and Polk

Rental rate coverage is for Market Rate properties only. Fully Affordable properties are not included in our rental surveys and are not reported in rental rate averages.

GENERAL DEFINITIONS

Asset Class – refers to a generalized category of properties grouped by their Yardi® Matrix improvements rating

Lifestyle Asset Class – a grouping of all of the highest rated market rate properties A+, A, A- and B+

Renters-by-Necessity (RBN) Asset Class – a grouping of all of the lowest rated properties B, B-, C+, C, C- and D

Year-over-Year Change – percentage growth from last year, for several months or quarters in a time-series. This analysis will highlight an overall direction of movement for a metro.

An upward slope means an accelerating growth. A downward slope means a slowing growth. Above the line (zero) for increases, below the line for loss.

Rankings – this metro is ranked nationally among other Yardi Matrix reported metros based on a single measure. For details on any specific ranking, see section descriptions below

COMMONLY USED CALCULATIONS

DATA SOURCES

Rental Rates – are collected by Yardi® Matrix phone surveyors three times annually for 95%+ of property and unit configurations. Additionally, a representative sample of the market (between 10% and 20%) are surveyed monthly.

Occupancy Rates – are derived from U.S. Postal Service data and Yardi® Matrix phone surveys

Development Activity – information is tracked by Yardi® Matrix researchers. Construction projects are discovered through various publications and local government sources. Projects are tracked on a monthly basis. Completion dates and lease-up information are confirmed by phone calls to properties under construction.

Employment – data is sourced from the U.S. Bureau of Labor Statistics. Reported employment is generally two months behind the current date for this report.

Transaction Activity – information is tracked by Yardi® Matrix researchers. Sales are discovered through various publications and local government sources, and updates are made continuously.

Rent Growth Ranking – based on rent growth over the past year, current month.

Employment Growth Ranking – based on employment growth over the past year, latest employment month.

Completions Ranking – based on inventory growth over the past year, current month.

MARKET OVERVIEW

Calculations – total employment size (jobs) is expressed as a sum of employment in areas overlapping the reported market: Lakeland-Winter Haven, FL | Tampa-St. Petersburg-Clearwater, FL

EMPLOYMENT AND EARNINGS

Industry Sectors – are defined by the NAICS Supersector designations. For more information visit: http://www.bls.gov/sae/saesuper.htm

Sector National Ranking – is based on the absolute size of the industry sector within this metro, when compared to the same industry in other metro areas nationally.

Earnings weekly vs hourly – differentiates hourly wage workers, from weekly salaried workers.

DEVELOPMENT ACTIVITY

Prospective Properties – announced construction projects, with no specific documents or government filings

Planned Properties – are in the planning stages of construction, with documents having been filed with the county or city

Under Construction Properties – have received permits for construction and broken ground.

Rankings – are based on the number of units currently under construction: Overall, Lifestyle and Renters-by-Necessity Asset Classifications

Projected Completions – Projected completions reported by Yardi® Matrix are limited to a year out and are based on properties currently under construction and their expected completion date.

Projected Completions as a % of Prior Inventory – This forward-looking metric uses projected unit completions to calculate a relative growth over the next year for a particular area. Submarkets with a total share of market inventory below 1% are assigned an N/A value, to avoid over-stating their significance in rankings and color-coded map displays.

Construction and Completion Counts – are reported based on property status as of the start of the month.

TRANSACTION ACTIVITY

Price – is expressed as Price/Unit as a standard measure. This is also used for national ranking

Velocity – is measured by the number of properties sold per year. This is also used for national ranking

Volume – measures the total amount of money spent in multi-family sale transactions in the prior year, expressed as millions of U.S. Dollars ($MM). This is also used for national ranking

METHODS AND DEFINITIONS NOVEMBER 2018

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