Rhode Island Multi Family Report

Multi-Family Market Report

Providence Market

PREPARED BY

Richard Cawley President

Providence Multi-Family

MULTI-FAMILY MARKET REPORT

Market Key Statistics

2

Vacancy

3

Rent

6

Construction

10

Under Construction Properties

11

Sales

13

Sales Past 12 Months

14

Economy

16

Market Submarkets

19

Supply & Demand Trends

22

Vacancy & Rent

24

Sale Trends

26

Deliveries & Under Construction

28

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Overview Providence Multi-Family 12 Mo. Delivered Units

12 Mo. Absorption Units

Vacancy Rate

12 Mo. Asking Rent Growth

688

757

3.6%

3.3%

After decades of enduring second-city status to neighboring Boston, Providence's economy is improving, as is its multifamily environment. Providence's economy was particularly slow to recover from the recession. From 2011–13, Rhode Island had one of the highest unemployment rates in the country. Through large-scale efforts by public and private groups, Rhode Island's employment rate now aligns with the U.S. average. The

area's economy is still very reliant on a slow-growing education and health sector, but job creation has been strong enough to generate solid apartment demand.

Supply has responded to the metro's improving health, and close to 1,300 units are under construction—a record for the metro. Investments in the market have jumped, and while nationwide multifamily sales volume has slowed, 2017 was a peak year for Providence.

KEY INDICATORS Current Quarter

Absorption Units

Delivered Units

Under Constr Units

83

0

853

128

102

468

Units

Vacancy Rate

Asking Rent

Effective Rent

4 & 5 Star

7,565

6.4%

$1,694

$1,680

3 Star

17,976

3.1%

$1,364

$1,356

1 & 2 Star

22,646

3.1%

$1,076

$1,072

16

0

0

Market

48,187

3.6%

$1,373

$1,364

227

102

1,321

12 Month

Historical Average

Forecast Average

Peak

When

Trough

When

-0.2%

5.7%

4.5%

7.0%

2005 Q2

3.5%

2017 Q3

Absorption Units

757

463

504

1,121

2016 Q3

9

2002 Q1

Delivered Units

688

425

648

1,288

2016 Q3

0

2001 Q4

0

5

17

38

2013 Q1

0

2018 Q1

Asking Rent Growth (YOY)

3.3%

1.9%

1.3%

5.9%

2015 Q3

-3.0%

2009 Q4

Effective Rent Growth (YOY)

3.8%

1.9%

1.3%

5.8%

2015 Q3

-3.0%

2009 Q4

$236 M

$78.1 M

N/A

$295.0 M

2017 Q3

$5.6 M

2003 Q3

Annual Trends

Vacancy Change (YOY)

Demolished Units

Sales Volume

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 2

Vacancy Providence Multi-Family The Providence metro area covers all of Rhode Island and parts of Massachusetts and is home to about 1.6 million people. This market is dominated by eds and meds: Seven of the top 10 employers in the metro belong to healthcare and education. Providence is also home to several colleges and universities, including Brown University, Johnson & Wales University, Providence College, and the Rhode Island School of Design. Together, these institutions draw nearly 30,000 students to the city each year and attract millions of dollars in research funding. This money plays an important role in supporting medical and technical research, which lays the foundation for Rhode Island’s organic business growth. Despite the presence of these large universities, educational attainment and median income ($60,000) is on average lower than in nearby metros like Hartford, Worcester, and Boston. Renting is typically cheaper than owning in this metro, as a 30year, 4% fixed mortgage on a typical $270,000 home, with taxes, insurance and 20% down, requires about 30% of income, while rent commands closer to 25% of income.

Providence was slow to recover from the great recession. As the nation recuperated, Providence was held back by high taxes, poor infrastructure, and high cost of living, to name a few factors. This ultimately sparked a statewide call to action that resulted in the establishment of several programs aimed at developing and improving aspects of Rhode Island’s economic and business climate. Although employment growth was negligible over the past decade, hiring in the past year outpaced the 10-year average, due to increased resources for entrepreneurs and the unemployed. For

example, Goldman Sachs’s 10,000 Small Businesses education program runs a chapter at the Community College of Rhode Island and provides free education services to small business owners. Its not just entrepreneurs who have helped improve Providence's economy. Several large corporations have set up shop here in the past several years with the help of state and local tax credits. Johnson & Johnson, GE Digital and Indian IT firm Infosys have all announced commitments to Rhode Island after receiving public incentives. Biotech firm Amgen became the most recent large group to announce a move to the state, confirming that they will hire more than 150 at a $165 million biomanufacturing facility in West Greenwich.

Relatively light construction early in the cycle left plenty of room for the market to absorb 2016’s big supply wave.

Vacancies have fallen steadily over the past several years but may have reached their nadir for the cycle in the mid-3% range. Occupancies have been buoyed by strong lease-up. For example, Greenbrier Village delivered 216 units to the metro early in 2016 and reported no availability just six months after opening, averaging a physical absorption rate of 36 units per month. In another more recent example, Paolino Properties' Case-Mead Lofts downtown has experienced strong lease up after its March 2018 delivery. The 44unit converted historic office building features microunits, popular among younger renters, and reportedly had 40% of its units reserved before opening. With a record supply wave continuing into 2018, such strong lease up will have to continue to keep vacancies near their historic lows.

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 3

Vacancy Providence Multi-Family ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 4

Vacancy Providence Multi-Family VACANCY BY BEDROOM

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 5

Rent Providence Multi-Family Strong demand from an improving economy and little apartment building lead to record-low vacancies and annual rent growth that peaked at close to 6% in 2015.

Even as supply has begun to pick up gains over the past 12 months were roughly twice the historical average.

With a record number of units underway, such strong demand will have to continue to keep rent growth healthy.

Assets rated 4 & 5 Star typically drive rent gains in this metro, although rents in 3 Star properties have been growing faster of late. Historically, the premium for 4 & 5

Star assets is less than $0.15/SF compared with the metro average. However, deliveries in the past two years command $0.35/SF or more and are leasing well, as evidenced by Greenbrier Village apartments, which stabilized in six months. Furthermore, dated properties have become ripe targets for conversion projects. Some of the metro’s highest rents per SF is in converted office and industrial spaces like the Promenade in the South Hill Submarket. Renovated in 2005, the community charges almost $0.60/SF more than the metro average, and almost $0.20/SF more than the average for new deliveries.

DAILY ASKING RENT PER SF

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 6

Rent Providence Multi-Family ASKING RENT PER UNIT & RENT GROWTH

ASKING RENT PER UNIT BY BEDROOM

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 7

Rent Providence Multi-Family 4 & 5 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster

Capital Expenditures

Mgmt.

Admin.

Payroll

Water

Utilities

Maint.

Insurance

Taxes

Other

Total

$0.89

$1.90

$1.07

$0.92

$2.08

$1.92

$0.46

$2.65

$0.13

$0.47

$0.81

$13.30

Downcity/East Side

$0.83

$1.92

$0.98

$0.91

$2.08

$2.00

$0.47

$2.83

$0.14

$0.47

$0.81

$13.44

Fall River

$1.02

$1.84

$1.30

$0.92

$2.08

$1.71

$0.44

$2.20

$0.10

$0.47

$0.81

$12.89

Kent County

$0.83

$1.92

$0.98

$0.91

$2.08

$2.00

$0.47

$2.83

$0.14

$0.47

$0.81

$13.44

New Bedford

$1.02

$1.84

$1.30

$0.92

$2.08

$1.71

$0.44

$2.20

$0.10

$0.47

$0.81

$12.89

Northeastern Provid…

$0.83

$1.92

$0.98

$0.96

$2.06

$2.00

$0.49

$2.83

$0.13

$0.47

$0.81

$13.48

Outlying Bristol Cou…

$1.02

$1.84

$1.30

$0.92

$2.08

$1.71

$0.44

$2.20

$0.10

$0.47

$0.81

$12.89

Outlying Providence… $0.83

$1.92

$0.98

$0.91

$2.08

$2.00

$0.47

$2.83

$0.14

$0.47

$0.81

$13.44

Southeastern Provi…

$0.83

$1.92

$0.98

$0.91

$2.08

$2.00

$0.47

$2.83

$0.14

$0.47

$0.81

$13.44

Taunton

$1.02

$1.84

$1.30

$0.92

$2.08

$1.71

$0.44

$2.20

$0.10

$0.47

$0.81

$12.89

Warwick/West War…

$0.83

$1.92

$0.98

$0.91

$2.08

$2.00

$0.47

$2.83

$0.14

$0.47

$0.81

$13.44

Washington County

$0.83

$1.92

$0.98

$0.91

$2.08

$2.00

$0.47

$2.83

$0.14

$0.47

$0.81

$13.44

Providence

Appliance Structural

Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

3 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster

Capital Expenditures

Mgmt.

Admin.

Payroll

Water

Utilities

Maint.

Insurance

Taxes

Other

Total

$0.60

$0.66

$0.77

$0.84

$1.93

$1.36

$0.44

$1.78

$0.13

$0.37

$0.74

$9.62

Downcity/East Side

$0.57

$0.56

$0.75

$0.87

$1.98

$1.32

$0.45

$1.78

$0.13

$0.41

$0.77

$9.59

East Bay

$0.57

$0.56

$0.75

$0.85

$1.92

$1.31

$0.44

$1.74

$0.13

$0.40

$0.76

$9.43

Fall River

$0.88

$1.39

$0.88

$0.64

$1.65

$1.62

$0.42

$1.82

$0.09

$0.10

$0.54

$10.03

Kent County

$0.57

$0.56

$0.75

$0.87

$1.98

$1.32

$0.45

$1.78

$0.13

$0.41

$0.77

$9.59

Middletown

$0.57

$0.56

$0.75

$0.87

$1.98

$1.32

$0.45

$1.78

$0.13

$0.41

$0.77

$9.59

New Bedford

$0.88

$1.39

$0.88

$0.64

$1.65

$1.62

$0.42

$1.82

$0.09

$0.10

$0.54

$10.03

Newport

$0.57

$0.56

$0.75

$0.87

$1.98

$1.32

$0.45

$1.78

$0.13

$0.41

$0.77

$9.59

Northeastern Provid…

$0.57

$0.60

$0.75

$0.88

$1.98

$1.34

$0.45

$1.79

$0.13

$0.41

$0.77

$9.67

Outlying Bristol Cou…

$0.87

$1.39

$0.88

$0.64

$1.65

$1.61

$0.42

$1.80

$0.09

$0.10

$0.54

$9.99

Outlying Newport C…

$0.57

$0.56

$0.75

$0.87

$1.98

$1.32

$0.45

$1.78

$0.13

$0.41

$0.77

$9.59

Outlying Providence… $0.57

$0.56

$0.75

$0.87

$1.98

$1.32

$0.45

$1.78

$0.13

$0.41

$0.77

$9.59

Southeastern Provi…

$0.57

$0.56

$0.75

$0.87

$1.98

$1.32

$0.45

$1.78

$0.13

$0.41

$0.77

$9.59

Taunton

$0.84

$1.36

$0.87

$0.64

$1.62

$1.55

$0.42

$1.68

$0.09

$0.10

$0.53

$9.70

Warwick/West War…

$0.56

$0.56

$0.75

$0.83

$1.86

$1.30

$0.43

$1.70

$0.13

$0.39

$0.75

$9.26

Washington County

$0.57

$0.56

$0.75

$0.87

$1.98

$1.32

$0.45

$1.78

$0.13

$0.41

$0.77

$9.59

Providence

Appliance Structural

Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 8

Rent Providence Multi-Family 1 & 2 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster

Capital Expenditures

Mgmt.

Admin.

Payroll

Water

Utilities

Maint.

Insurance

Taxes

Other

Total

$0.57

$0.64

$0.73

$0.57

$1.10

$1.17

$0.32

$1.18

$0.11

$0.23

$0.61

$7.23

Downcity/East Side

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

East Bay

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

Fall River

$0.72

$1.28

$0.84

$0.61

$1.51

$1.33

$0.39

$1.26

$0.09

$0.09

$0.51

$8.63

Kent County

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

Middletown

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

New Bedford

$0.72

$1.28

$0.84

$0.61

$1.51

$1.33

$0.39

$1.26

$0.09

$0.09

$0.51

$8.63

Newport

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

Northeastern Provid…

$0.54

$0.54

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$7.00

Outlying Bristol Cou…

$0.72

$1.28

$0.84

$0.61

$1.51

$1.33

$0.39

$1.26

$0.09

$0.09

$0.51

$8.63

Outlying Newport C…

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

Outlying Providence… $0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

Southeastern Provi…

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

Taunton

$0.72

$1.28

$0.84

$0.61

$1.51

$1.33

$0.39

$1.26

$0.09

$0.09

$0.51

$8.63

Warwick/West War…

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

Washington County

$0.54

$0.53

$0.71

$0.56

$1.03

$1.14

$0.31

$1.17

$0.12

$0.25

$0.63

$6.99

Providence

Appliance Structural

Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 9

Construction Providence Multi-Family A large supply wave could hit Providence in the coming quarters as close to 1,300 units are underway across the metro, one of the largest amounts in decades. Such a wave of new supply represents approximately 3% of total inventory. While this pales in comparison to supplyheavy Boston, where properties underway represent 9% of inventory, it is proportionally higher than the share in many other New England markets. New Haven, for example, under construction properties represent less than 2% of total inventory. .

Many of the new deliveries, particularly near the urban core, are targeted at students. Vision Properties is underway on 201 units at their Edge College Hill with plans for an additional 227 units next door. The community is specifically marketed to students from Brown, RISD and Johnson & Wales and is within walking distance from each of their campuses. After finishing the conversion of the historic South Street Landing complex for Brown University and Nursing Education Center, Ventas is underway on 174 unit student housing residence for graduate, medical and upper level nursing students.

Others are strategically located near transit stations.

Nearby Vision's Edge on College Hill, Trilogy Development has begun work on 169 units adjacent to

the Providence Amtrak Station. Rents for the community will be around $2,000 and $2,700 for one and two bedrooms respectively, approximately 30% higher than the rate for other 4 & 5 star properties in the market.

Developers noted that the project would not have been possible without a tax credit from the Rebuild RI, a program used to help narrow the gap for how developers face similar building costs in other metro but don't have the rents in Providence to justify construction.

Construction is almost entirely concentrated in Downcity/East Side, East Bay and Northeastern Providence County submarkets. The East Bay Submarket in particular has roughly 600 units under construction or recently delivered, representing a 33% increase from the previous stock. However, this submarket is very small with only 1,800 units and is a wealthier section of the metro dominated by singlefamily homes. This substantial jump in inventory is driven primarily by two projects, American Tourister, which delivered 225 units in 2017, and Kettle Point, which will deliver 345 units by 2019. The Downcity/East Side Submarket, home to the highest rents in the city, has also attracted significant recent development. More than half of all the deliveries in Providence in the past year were in this submarket, which has roughly 400 more units under construction.

DELIVERIES & DEMOLITIONS

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 10

Under Construction Properties Providence Multi-Family Properties

Units

Percent of Inventory

Avg. No. Units

12

1,321

2.7%

110

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION Property Name/Address

1

45 Division St

Rating

Units

Stories

Start

Complete

214

-

Jan-2018

Sep-2019

2

Edge College Hill 169 Canal St

201

15

Oct-2017

Jul-2018

3

The Commons at Provid…

3 Park Row West St

169

-

Dec-2016

Sep-2018

4

Pontiac Mills Apartments 334 Knight St

150

3

Feb-2016

Dec-2018

5

Kettle Point Kettlepoint Ave

130

-

Jun-2017

Jul-2018

6

Lofts at Lyman Mill 184 Woonasquatucket Ave

101

3

Feb-2016

Jul-2018

7

Lofts at Tourister Mill Ph… 91 Main St

100

3

Apr-2015

Jul-2018

Developer/Owner

Peregrine Group, LLC Vision Companies Vision Companies Trilogy Development LLC William Deluca Union Mill Llc Churchill & Banks Companies LLC ARCO Midcon, LLC Robert P & Charlene A Terino Brady Sullivan Properties Brady Sullivan Properties

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 11

Under Construction Properties Providence Multi-Family UNDER CONSTRUCTION Property Name/Address

Rating

Units

Stories

Start

Complete

8

Kettle Point Phase II Kettlepoint Ave

90

-

Mar-2018

Oct-2019

9

Highland Hills Phase II 210 Highland Corporate Dr

65

4

Oct-2015

Jul-2018

10

Riverview Meadows - Ph‌ 1 Meadow Dr

59

-

Dec-2017

Jul-2018

30

6

Dec-2016

Dec-2018

12

2

Jan-2018

Jul-2018

11 12

44 Hospital St 123 Liberty St

Developer/Owner

Economic Development Fndtn Highland Hills Apts II LLC Sophia Cuyegkeng New Bedford Housing Authority

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 12

Sales Providence Multi-Family Multifamily investors have begun to take note of Providence’s improving multifamily fundamentals, and 2017 was a record year for both sales volume and pricing. While many cities across the U.S., including nearby Boston, have seen a comparative dip in multifamily investment, Providence has been surging.

Historically many national investors may have been hesitant to buy here, due to the metro’s slow-growing economy and high real estate taxes. As vacancies have fallen and rent growth has performed well, institutional investors have begun to take notice. Perhaps also contributing to the rise in investment here has been

skyrocketing pricing in Boston. Many investors buy in both markets, and while pricing for the average apartment community in Boston has surged $150,000 over the national average, Providence's tracks $400,000 below the nation's. That is not to say that Providence hasn’t seen recent pricing gains. Some properties even command close to $200,000 per unit, rarely seen before this cycle. One such trade was Jones Street Investment Partners' June 2017 acquisition of Cumberland Crossing in Cumberland. This 288-unit garden-style apartment was built in 2000 and traded for $57.5 million, or $200,000/unit, at a 5.9% cap rate.

SALES VOLUME & MARKET SALE PRICE PER UNIT

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 13

Sales Past 12 Months Providence Multi-Family Sale Comparables

Avg. Price/Unit (thous.)

Average Price (mil.)

Average Vacancy at Sale

109

$157

$3.1

6.1%

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS Sales Attributes

Low

Average

Median

High

Sale Price

$107,500

$3,071,241

$395,764

$57,500,000

Price Per Unit

$17,916

$156,508

$58,333

$285,372

5.5%

7.9%

8.0%

12.4%

Vacancy Rate at Sale

0%

6.1%

0%

66.7%

Time Since Sale in Months

1.0

6.7

7.9

12.0

Property Attributes

Low

Average

Median

High

Property Size in Units

5

16

6

288

Number of Floors

2

2

3

4

Average Unit SF

0

581

675

1,155

1870

1919

1906

2016

Cap Rate

Year Built Star Rating

2.2

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 14

Sales Past 12 Months Providence Multi-Family RECENT SIGNIFICANT SALES Property Information Property Name/Address

1

Cumberland Crossing 100 Crossing Dr

2

East Main 274 E Main St

3

West Village 792 West St

4

Terraces of Western Cranston 100 Elena St

5

County Green Apartments 2050-2100 County St

6 7 8

254 Wayland Ave 395 Purchase St 163 Elmwood Avenue 163 Elmwood Ave

9 10 11

186 Waterman St 402 S Main St 461 Elmwood Avenue 461 Elmwood Ave

12 13 14 15 16 17 18 19 20

515 E School St 111-115 East St 134 Benefit St 33-45 Webster St 48 S Union St 280 Ferris Ave 165 Roosevelt St 2-24 Oakleigh Ave 236-240 S Main St

Sale Information

Rating

Yr Built

Units

Vacancy

Sale Date

Price

Price/Unit

Price/SF

-

2000

288

6.6%

6/28/2017

$57,500,000

$199,652

$165

-

2016

188

13.8%

3/5/2018

$53,650,000

$285,372

$186

-

2008

200

2.1%

9/19/2017

$52,616,163

$263,080

$199

-

1989

216

10.7%

7/21/2017

$31,100,000

$143,981

$183

-

1988

36

2.8%

7/17/2017

$4,300,000

$119,444

$105

-

-

8

0%

6/14/2017

$1,850,000

$231,250

$175

-

1971

12

0%

11/1/2017

$1,650,000

$137,500

$180

-

1887

11

0%

4/9/2018

$1,538,704

$139,882

$183

-

1900

18

5.6%

12/26/2017

$1,300,000

$72,222

$191

-

1923

30

3.3%

6/22/2017

$1,276,000

$42,533

$40

-

1930

18

5.6%

4/9/2018

$1,250,424

$69,468

$110

-

1880

8

0%

4/9/2018

$1,152,266

$144,033

$186

-

1910

8

0%

10/2/2017

$1,029,500

$128,687

$194

-

1900

8

0%

12/11/2017

$972,000

$121,500

$232

-

1970

19

0%

9/20/2017

$950,000

$50,000

$62

-

1900

5

0%

4/9/2018

$924,882

$184,976

$222

-

1965

15

0%

10/3/2017

$875,000

$58,333

$69

-

1988

5

0%

10/16/2017

$840,000

$168,000

$115

-

1905

12

0%

12/15/2017

$775,000

$64,583

$53

-

1900

10

0%

2/1/2018

$760,000

$76,000

$124

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 15

Economy Providence Multi-Family Despite Providence’s proximity to Boston it has no greater correlation to Boston’s economy than it has to U.S. as a whole. This is surprising given the fact that the metro includes all of Bristol County in Massachusetts with towns such as Attleboro and Taunton, where a good portion of the residents commute to Boston for work. The Worcester metro also borders Boston, but its employment trends mirror Boston more closely than Providence, not that employment trends in The Renaissance City are dramatically different from Beantown, it’s just not tied to Boston like other nearby metros are. If you were to plot job growth on a chart for Boston and Providence you’d notice that the two lines are similar, but that some recessions hit one metro more than the other and that during up cycles, Boston’s growth slightly outpaces that of Providence, which while it may not look like much, does add up over time. For example, from 1970 to today, Providence’s employment base has expanded by 44%, while Boston’s has grown by 71%, However, neither are stalwarts of growth, as nationally the total number of jobs has increased by 105% over that period.

Just like Boston, Providence has a large concentration of health services jobs. However, this subsector is not the most dynamic, which cuts both ways: Growth rarely gets above 5%, but on the flipside, it has not seen two consecutive quarters of losses going back to 1970 if not longer. So while this subsector is great to be concentrated in when the economy is in recession, it’s not going to be a bastion of job growth when things are hot. Over the past five years, growth has been poor, averaging only 1% annually.

Growth in construction employment is currently as good as it’s been in the metro since the 1990s, enjoying the best rate of expansion of any of Providence’s super sectors. In the summer of 2017, construction employment growth reached a whopping 12% annually.

The tremendous expansion of construction jobs has been driven by Boston’s extremely strong housing market and that metro’s staggering amount of apartment construction. It is quite easy for workers in this sector in Providence to compete for jobs in the southern suburbs of Boston, or even in the city itself, which is an hour and 20 minutes’ drive from downtown Providence at the time in the morning when people in this sector usually get to work. However, construction employment is a smaller component of Providence’s total employment than it is for the average U.S. metro, so this superb growth will not have a big ripple effect. Lastly, one side effect of this growth is that construction costs have been rising in Boston, and this could be playing out in Providence too, due to the overlap of the labor force.

There are two major drags on employment growth in Providence: the government and manufacturing super sectors, which accounting for a combined 22% of total employment. Both of these sectors are detriments to the metro’s economy because they have been steadily contracting since the early ’70s if not longer. For example, in 1970 about 25% of all jobs across the country were manufacturing jobs, but Providence’s share was much higher at 40%. Today those numbers are both 9%, so the metro has closed the gap quite a bit, but it was a painful process for the local economy.

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 16

Economy Providence Multi-Family PROVIDENCE EMPLOYMENT BY INDUSTRY IN THOUSANDS Current Jobs

Current Growth

10 Yr Historical

5 Yr Forecast

NAICS Industry

Jobs

LQ

Market

US

Market

US

Market

US

Manufacturing

67

1.1

3.03%

-0.41%

-1.63%

-1.06%

-0.87%

-1.24%

Trade, Transportation and Utilities

127

0.9

0.09%

1.28%

-0.38%

0.45%

0.01%

0.26%

80

1.0

-0.91%

0.48%

-0.57%

0.34%

-0.06%

0.27%

Financial Activities

41

1.0

1.67%

0.64%

-0.09%

0.27%

0.59%

0.76%

Government

91

0.8

0.24%

0.10%

-0.17%

-0.06%

0.33%

0.52%

Natural Resources, Mining and Construction

34

0.9

6.69%

3.93%

0.86%

-0.27%

1.82%

1.60%

Education and Health Services

159

1.4

0.97%

1.56%

1.18%

2.03%

0.59%

1.27%

Professional and Business Services

92

0.9

4.04%

2.49%

2.29%

1.55%

1.24%

1.48%

Information

10

0.7

-2.46%

0.54%

-3.54%

-0.94%

0.00%

0.29%

Leisure and Hospitality

84

1.0

0.94%

1.77%

1.33%

1.80%

0.84%

1.29%

Other Services

34

1.2

2.98%

0.73%

0.85%

0.44%

0.11%

0.41%

Total Employment

739

1.0

1.62%

1.28%

0.40%

0.70%

0.47%

0.79%

Retail Trade

Source: Moody's Analytics LQ = Location Quotient

YEAR OVER YEAR JOB GROWTH

Source: Moody’s Analytics

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 17

Economy Providence Multi-Family DEMOGRAPHIC TRENDS Current Level Demographic Category

Current Change

10-Year Change

Forecast Change

Metro

U.S.

Metro

U.S.

Metro

U.S.

Metro

U.S.

Population

1,622,088

327,863,342

0.1%

0.7%

0.1%

0.8%

0.1%

0.7%

Households

653,841

126,048,680

0.3%

1.0%

0.4%

0.8%

0.5%

1.1%

Median Household Income

$64,455

$60,656

1.5%

3.5%

1.7%

1.6%

2.3%

3.0%

Labor Force

851,267

161,638,901

0%

1.0%

-0.1%

0.5%

0.2%

0.8%

4.5%

4.1%

0%

-0.3%

-0.2%

-0.1%

-

-

Unemployment

Source: Moody’s Analytics

POPULATION GROWTH

LABOR FORCE GROWTH

INCOME GROWTH

Source: Moody's Analytics

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 18

Submarkets Providence Multi-Family PROVIDENCE SUBMARKETS

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 19

Submarkets Providence Multi-Family SUBMARKET INVENTORY Inventory No.

Submarket

12 Month Deliveries

Under Construction

Bldgs

Units

% Market

Rank

Bldgs

Units

Percent

Rank

Bldgs

Units

Percent

Rank

1

Downcity/East Side

315

5,727

11.9%

3

1

22

0.4%

6

3

400

7.0%

1

2

East Bay

42

2,031

4.2%

9

1

190

9.4%

2

3

320

15.8%

3

3

Fall River

801

8,137

16.9%

1

1

101

1.2%

4

0

0

0%

-

4

Kent County

15

975

2.0%

11

0

0

0%

-

0

0

0%

-

5

Middletown

6

New Bedford

7

Newport

8 9 10 11

6

1,151

2.4%

10

0

0

0%

-

0

0

0%

-

425

4,092

8.5%

7

0

0

0%

-

1

12

0.3%

6

8

539

1.1%

14

0

0

0%

-

0

0

0%

-

Northeastern Providence…

457

7,291

15.1%

2

2

192

2.6%

1

3

380

5.2%

2

Outlying Bristol County

114

5,148

10.7%

4

1

81

1.6%

5

0

0

0%

-

Outlying Newport County

6

326

0.7%

15

0

0

0%

-

0

0

0%

-

Outlying Providence County

22

955

2.0%

12

0

0

0%

-

0

0

0%

-

12

Southeastern Providence…

311

4,241

8.8%

6

1

102

2.4%

3

0

0

0%

-

13

Taunton

163

2,390

5.0%

8

0

0

0%

-

1

59

2.5%

5

14

Warwick/West Warwick

67

4,438

9.2%

5

0

0

0%

-

1

150

3.4%

4

15

Washington County

22

746

1.5%

13

0

0

0%

-

0

0

0%

-

SUBMARKET RENT Asking Rents No.

Submarket

Per Unit

Per SF

1

Downcity/East Side

$1,691

2

East Bay

$1,338

3

Fall River

4

Kent County

5

Effective Rents

Rank

Yr. Growth

Per Unit

Per SF

Rank

Yr. Growth

Concession

$1.93

1

2.7%

$1,681

$1.45

10

0.3%

$1,336

$1,125

$1.33

13

4.1%

$1,509

$1.29

15

2.9%

Middletown

$1,336

$1.46

8

6

New Bedford

$1,264

$1.30

7

Newport

$1,434

$1.60

8

Northeastern Providence…

$1,213

9

Outlying Bristol County

$1,568

10

Outlying Newport County

11 12

Rank

$1.92

1

4.2%

0.6%

8

$1.44

10

0.5%

0.2%

13

$1,118

$1.32

13

4.2%

0.6%

7

$1,506

$1.29

15

3.9%

0.2%

12

-0.6%

$1,335

$1.46

8

-0.6%

0.1%

15

14

6.7%

$1,260

$1.29

14

6.9%

0.3%

11

4

8.5%

$1,415

$1.58

4

7.0%

1.3%

2

$1.35

12

1.9%

$1,207

$1.34

12

2.1%

0.5%

9

$1.61

2

4.0%

$1,556

$1.60

2

4.1%

0.8%

6

$1,315

$1.55

7

2.3%

$1,299

$1.53

7

5.5%

1.2%

4

Outlying Providence County

$1,463

$1.55

6

5.2%

$1,450

$1.54

6

4.7%

0.9%

5

Southeastern Providence…

$1,250

$1.44

11

3.0%

$1,234

$1.42

11

3.7%

1.3%

3

13

Taunton

$1,351

$1.61

3

5.5%

$1,330

$1.58

3

4.6%

1.6%

1

14

Warwick/West Warwick

$1,291

$1.45

9

4.9%

$1,286

$1.45

9

6.5%

0.4%

10

15

Washington County

$1,504

$1.57

5

1.8%

$1,503

$1.57

5

2.5%

0.1%

14

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 20

Submarkets Providence Multi-Family SUBMARKET VACANCY & ABSORPTION Vacancy No.

12 Month Absorption

Submarket

Units

Percent

Rank

Units

% of Inv

Rank

Construct. Ratio

1

Downcity/East Side

277

4.8%

14

85

1.5%

4

0.3

2

East Bay

197

9.7%

15

73

3.6%

6

2.6

3

Fall River

303

3.7%

11

92

1.1%

3

1.1

4

Kent County

32

3.3%

10

(2)

-0.3%

15

-

5

Middletown

22

1.9%

4

5

0.5%

13

-

6

New Bedford

85

2.1%

5

7

0.2%

11

-

7

Newport

3

0.6%

1

9

1.6%

9

-

8

Northeastern Providence…

296

4.1%

12

269

3.7%

1

0.7

9

Outlying Bristol County

148

2.9%

8

100

1.9%

2

0.8

10

Outlying Newport County

10

3.1%

9

6

1.9%

12

-

11

Outlying Providence County

25

2.7%

7

(1)

-0.2%

14

-

12

Southeastern Providence…

173

4.1%

13

83

2.0%

5

1.2

13

Taunton

43

1.8%

3

7

0.3%

10

-

14

Warwick/West Warwick

107

2.4%

6

12

0.3%

7

-

15

Washington County

12

1.6%

2

10

1.4%

8

-

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 21

Appendix Providence Multi-Family OVERALL SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2022

50,976

636

1.3%

513

1.0%

1.2

2021

50,340

566

1.1%

403

0.8%

1.4

2020

49,774

394

0.8%

347

0.7%

1.1

2019

49,380

765

1.6%

563

1.1%

1.4

2018

48,615

821

1.7%

692

1.4%

1.2

YTD

48,187

393

0.8%

406

0.8%

1.0

2017

47,794

600

1.3%

825

1.7%

0.7

2016

47,194

968

2.1%

1,055

2.2%

0.9

2015

46,226

590

1.3%

688

1.5%

0.9

2014

45,636

197

0.4%

364

0.8%

0.5

2013

45,439

127

0.3%

324

0.7%

0.4

2012

45,312

210

0.5%

288

0.6%

0.7

2011

45,102

18

0%

410

0.9%

0

2010

45,084

246

0.5%

187

0.4%

1.3

2009

44,838

270

0.6%

328

0.7%

0.8

2008

44,568

618

1.4%

418

0.9%

1.5

2007

43,950

586

1.4%

495

1.1%

1.2

2006

43,364

394

0.9%

399

0.9%

1.0

4 & 5 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2022

9,975

657

7.1%

549

5.5%

1.2

2021

9,318

586

6.7%

433

4.6%

1.4

2020

8,732

314

3.7%

281

3.2%

1.1

2019

8,418

684

8.8%

515

6.1%

1.3

2018

7,734

460

6.3%

269

3.5%

1.7

YTD

7,565

291

4.0%

151

2.0%

1.9

2017

7,274

466

6.8%

519

7.1%

0.9

2016

6,808

694

11.4%

753

11.1%

0.9

2015

6,114

512

9.1%

395

6.5%

1.3

2014

5,602

233

4.3%

177

3.2%

1.3

2013

5,369

5

0.1%

(12)

-0.2%

-

2012

5,364

0

0%

16

0.3%

0

2011

5,364

18

0.3%

76

1.4%

0.2

2010

5,346

0

0%

49

0.9%

0

2009

5,346

270

5.3%

341

6.4%

0.8

2008

5,076

564

12.5%

454

8.9%

1.2

2007

4,512

496

12.4%

371

8.2%

1.3

2006

4,016

300

8.1%

279

6.9%

1.1

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 22

Appendix Providence Multi-Family 3 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2022

18,444

0

0%

(11)

-0.1%

0

2021

18,444

0

0%

(3)

0%

0

2020

18,444

101

0.6%

105

0.6%

1.0

2019

18,343

101

0.6%

92

0.5%

1.1

2018

18,242

368

2.1%

424

2.3%

0.9

YTD

17,976

102

0.6%

238

1.3%

0.4

2017

17,874

134

0.8%

224

1.3%

0.6

2016

17,740

279

1.6%

225

1.3%

1.2

2015

17,461

78

0.4%

155

0.9%

0.5

2014

17,383

(20)

-0.1%

107

0.6%

-

2013

17,403

122

0.7%

172

1.0%

0.7

2012

17,281

248

1.5%

288

1.7%

0.9

2011

17,033

0

0%

170

1.0%

0

2010

17,033

251

1.5%

190

1.1%

1.3

2009

16,782

0

0%

(11)

-0.1%

0

2008

16,782

0

0%

(27)

-0.2%

0

2007

16,782

90

0.5%

108

0.6%

0.8

2006

16,692

94

0.6%

135

0.8%

0.7

1 & 2 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2022

22,557

(21)

-0.1%

(25)

-0.1%

0.8

2021

22,578

(20)

-0.1%

(27)

-0.1%

0.7

2020

22,598

(21)

-0.1%

(39)

-0.2%

0.5

2019

22,619

(20)

-0.1%

(44)

-0.2%

0.5

2018

22,639

(7)

0%

(1)

0%

7.0

YTD

22,646

0

0%

17

0.1%

0

2017

22,646

0

0%

82

0.4%

0

2016

22,646

(5)

0%

77

0.3%

-

2015

22,651

0

0%

138

0.6%

0

2014

22,651

(16)

-0.1%

80

0.4%

-

2013

22,667

0

0%

164

0.7%

0

2012

22,667

(38)

-0.2%

(16)

-0.1%

2.4

2011

22,705

0

0%

164

0.7%

0

2010

22,705

(5)

0%

(52)

-0.2%

0.1

2009

22,710

0

0%

(2)

0%

0

2008

22,710

54

0.2%

(9)

0%

-

2007

22,656

0

0%

16

0.1%

0

2006

22,656

0

0%

(15)

-0.1%

0

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 23

Appendix Providence Multi-Family OVERALL VACANCY & RENT Vacancy

Asking Rent

Effective Rent

Year

Units

Percent

Ppts Chg

Per Unit

Per SF

% Growth

Ppts Chg

Per Unit

Per SF

2022

2,413

5.0%

0.2

$1,432

-

1.0%

0.1

$1,423

-

2021

2,290

4.8%

0.3

$1,419

-

0.9%

0.5

$1,410

-

2020

2,126

4.5%

0.1

$1,406

-

0.4%

(0.5)

$1,397

-

2019

2,078

4.4%

0.4

$1,400

-

0.9%

(2.5)

$1,392

-

2018

1,875

4.1%

0.4

$1,388

-

3.4%

(0.2)

$1,379

-

YTD

1,733

3.6%

(0.1)

$1,373

$1.51

2.3%

(1.3)

$1,364

$1.50

2017

1,745

3.7%

(0.5)

$1,342

$1.48

3.6%

0.5

$1,330

$1.46

2016

1,972

4.2%

(0.3)

$1,296

$1.43

3.1%

(2.0)

$1,280

$1.41

2015

2,059

4.5%

(0.3)

$1,257

$1.38

5.1%

2.7

$1,249

$1.37

2014

2,153

4.7%

(0.4)

$1,196

$1.31

2.4%

(0.2)

$1,190

$1.31

2013

2,319

5.1%

(0.4)

$1,168

$1.28

2.6%

1.9

$1,161

$1.28

2012

2,515

5.6%

(0.2)

$1,138

$1.25

0.8%

0.2

$1,129

$1.24

2011

2,592

5.7%

(0.9)

$1,129

$1.24

0.6%

(0.9)

$1,122

$1.23

2010

2,981

6.6%

0.1

$1,123

$1.23

1.5%

4.5

$1,115

$1.23

2009

2,922

6.5%

(0.2)

$1,107

$1.22

-3.0%

(3.7)

$1,099

$1.21

2008

2,979

6.7%

0.4

$1,141

$1.25

0.7%

(2.3)

$1,132

$1.24

2007

2,780

6.3%

0.1

$1,133

$1.24

3.1%

0.3

$1,125

$1.24

2006

2,689

6.2%

(0.1)

$1,099

$1.21

2.8%

-

$1,092

$1.20

4 & 5 STAR VACANCY & RENT Vacancy

Asking Rent

Effective Rent

Year

Units

Percent

Ppts Chg

Per Unit

Per SF

% Growth

Ppts Chg

Per Unit

Per SF

2022

993

10.0%

0.5

$1,773

-

1.1%

0.1

$1,757

-

2021

885

9.6%

1.1

$1,754

-

1.0%

0.5

$1,739

-

2020

732

8.4%

0.1

$1,737

-

0.5%

(0.5)

$1,722

-

2019

699

8.3%

1.4

$1,729

-

1.0%

(2.5)

$1,714

-

2018

530

6.8%

2.2

$1,713

-

3.4%

0.1

$1,697

-

YTD

481

6.4%

1.7

$1,694

$1.62

2.3%

(1.0)

$1,680

$1.61

2017

339

4.7%

(1.1)

$1,656

$1.59

3.3%

1.7

$1,634

$1.57

2016

394

5.8%

(1.6)

$1,603

$1.54

1.6%

(4.5)

$1,573

$1.51

2015

451

7.4%

1.4

$1,577

$1.51

6.2%

3.8

$1,562

$1.50

2014

335

6.0%

0.8

$1,486

$1.43

2.3%

(0.8)

$1,477

$1.42

2013

279

5.2%

0.3

$1,452

$1.39

3.1%

2.3

$1,441

$1.38

2012

263

4.9%

(0.3)

$1,407

$1.35

0.9%

0.3

$1,393

$1.34

2011

278

5.2%

(1.1)

$1,395

$1.34

0.6%

(1.0)

$1,386

$1.33

2010

336

6.3%

(0.9)

$1,386

$1.33

1.6%

4.7

$1,376

$1.32

2009

386

7.2%

(1.8)

$1,364

$1.31

-3.1%

(3.8)

$1,352

$1.30

2008

456

9.0%

1.3

$1,407

$1.35

0.7%

(2.5)

$1,394

$1.34

2007

346

7.7%

2.2

$1,397

$1.34

3.2%

0.2

$1,386

$1.33

2006

219

5.5%

0.1

$1,353

$1.30

3.1%

-

$1,345

$1.29

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 24

Appendix Providence Multi-Family 3 STAR VACANCY & RENT Vacancy

Asking Rent

Effective Rent

Year

Units

Percent

Ppts Chg

Per Unit

Per SF

% Growth

Ppts Chg

Per Unit

Per SF

2022

650

3.5%

0.1

$1,418

-

0.9%

0.1

$1,411

-

2021

639

3.5%

0

$1,406

-

0.8%

0.5

$1,399

-

2020

637

3.5%

0

$1,395

-

0.3%

(0.5)

$1,387

-

2019

641

3.5%

0

$1,391

-

0.9%

(2.6)

$1,383

-

2018

631

3.5%

(0.4)

$1,379

-

3.5%

(0.3)

$1,371

-

YTD

551

3.1%

(0.8)

$1,364

$1.48

2.3%

(1.4)

$1,356

$1.47

2017

688

3.8%

(0.5)

$1,333

$1.45

3.8%

0

$1,321

$1.43

2016

778

4.4%

0.2

$1,284

$1.39

3.7%

(1.0)

$1,271

$1.38

2015

724

4.1%

(0.4)

$1,238

$1.34

4.7%

2.4

$1,232

$1.34

2014

799

4.6%

(0.7)

$1,182

$1.28

2.3%

0.1

$1,178

$1.28

2013

926

5.3%

(0.3)

$1,155

$1.25

2.3%

1.8

$1,149

$1.25

2012

975

5.6%

(0.3)

$1,130

$1.23

0.5%

(0.2)

$1,122

$1.22

2011

1,016

6.0%

(1.0)

$1,124

$1.22

0.7%

(0.6)

$1,117

$1.21

2010

1,185

7.0%

0.3

$1,116

$1.21

1.3%

4.3

$1,109

$1.20

2009

1,123

6.7%

0.1

$1,101

$1.20

-3.0%

(3.7)

$1,094

$1.19

2008

1,113

6.6%

0.2

$1,135

$1.23

0.7%

(1.9)

$1,128

$1.22

2007

1,086

6.5%

(0.1)

$1,127

$1.22

2.6%

(0.2)

$1,120

$1.22

2006

1,105

6.6%

(0.3)

$1,098

$1.19

2.9%

-

$1,091

$1.18

1 & 2 STAR VACANCY & RENT Vacancy

Asking Rent

Effective Rent

Year

Units

Percent

Ppts Chg

Per Unit

Per SF

% Growth

Ppts Chg

Per Unit

Per SF

2022

771

3.9%

0

$1,125

-

1.0%

0.1

$1,121

-

2021

766

3.8%

0

$1,114

-

1.0%

0.5

$1,109

-

2020

758

3.8%

0.1

$1,103

-

0.5%

(0.5)

$1,099

-

2019

739

3.7%

0.1

$1,098

-

1.0%

(2.0)

$1,093

-

2018

714

3.6%

0.4

$1,086

-

3.0%

(0.6)

$1,082

-

YTD

702

3.1%

(0.1)

$1,076

$1.42

2.0%

(1.6)

$1,072

$1.41

2017

719

3.2%

(0.4)

$1,054

$1.39

3.6%

(0.2)

$1,050

$1.39

2016

801

3.5%

(0.4)

$1,018

$1.34

3.8%

(0.8)

$1,013

$1.33

2015

883

3.9%

(0.6)

$981

$1.29

4.6%

1.9

$977

$1.29

2014

1,019

4.5%

(0.4)

$938

$1.23

2.7%

0

$931

$1.22

2013

1,114

4.9%

(0.7)

$913

$1.20

2.7%

1.5

$910

$1.19

2012

1,277

5.6%

(0.1)

$889

$1.16

1.1%

0.9

$885

$1.16

2011

1,297

5.7%

(0.7)

$879

$1.15

0.2%

(1.3)

$874

$1.14

2010

1,460

6.4%

0.2

$878

$1.15

1.5%

4.5

$872

$1.14

2009

1,413

6.2%

0

$865

$1.13

-3.0%

(3.7)

$859

$1.12

2008

1,411

6.2%

0.3

$892

$1.17

0.7%

(3.1)

$886

$1.16

2007

1,348

6.0%

(0.1)

$885

$1.16

3.8%

1.6

$880

$1.15

2006

1,365

6.0%

0.1

$853

$1.12

2.2%

-

$848

$1.11

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 25

Appendix Providence Multi-Family OVERALL SALES Completed Transactions (1)

Market Pricing Trends (2)

Year

Deals

Volume

Turnover

Avg Price

Avg Price/Unit

Avg Cap Rate

Price/Unit

Price Index

2022

-

-

-

-

-

-

$135,410

189

Cap Rate

7.4%

2021

-

-

-

-

-

-

$133,920

187

7.4%

2020

-

-

-

-

-

-

$133,485

187

7.4%

2019

-

-

-

-

-

-

$137,072

192

7.2%

2018

-

-

-

-

-

-

$140,452

196

6.9%

YTD

41

$68.2 M

1.0%

$2,435,927

$178,083

7.7%

$140,768

197

6.9%

2017

132

$254.7 M

4.7%

$2,521,532

$127,274

8.2%

$138,964

194

6.9%

2016

85

$145.2 M

3.2%

$1,962,791

$101,642

9.4%

$126,129

176

7.1%

2015

73

$118.4 M

3.0%

$1,820,977

$90,700

8.4%

$120,132

168

7.1%

2014

77

$72.3 M

2.5%

$963,802

$70,660

10.5%

$109,120

152

7.4%

2013

82

$190.1 M

5.5%

$2,468,286

$76,482

9.0%

$101,189

141

7.6%

2012

63

$38.7 M

1.9%

$773,287

$55,632

11.1%

$99,202

139

7.6%

2011

46

$61.0 M

2.3%

$1,648,366

$77,398

6.6%

$95,364

133

7.6%

2010

38

$18.0 M

0.8%

$600,546

$54,928

9.1%

$86,474

121

7.9%

2009

76

$73.6 M

3.0%

$1,167,809

$59,047

7.5%

$65,529

92

8.8%

2008

38

$35.3 M

1.0%

$1,103,057

$84,647

10.8%

$71,565

100

8.6%

2007

26

$42.5 M

1.6%

$1,701,009

$61,542

9.4%

$89,798

125

7.8%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4 & 5 STAR SALES Completed Transactions (1)

Market Pricing Trends (2)

Year

Deals

Volume

Turnover

Avg Price

Avg Price/Unit

Avg Cap Rate

Price/Unit

Price Index

Cap Rate

2022

-

-

-

-

-

-

$190,678

191

6.2%

2021

-

-

-

-

-

-

$188,442

189

6.2%

2020

-

-

-

-

-

-

$187,871

188

6.2%

2019

-

-

-

-

-

-

$193,811

194

6.0%

2018

-

-

-

-

-

-

$199,688

200

5.7%

YTD

1

$53.6 M

2.5%

$53,650,000

$285,372

6.0%

$206,813

207

5.6%

2017

2

$66.0 M

3.9%

$33,008,082

$231,636

6.0%

$201,541

202

5.6%

2016

1

$59.8 M

4.4%

$59,750,000

$199,167

6.0%

$183,309

184

5.9%

2015

2

$40.2 M

3.9%

$20,122,500

$167,688

-

$175,543

176

5.9%

2014

-

-

-

-

-

-

$159,717

160

6.1%

2013

1

$28.2 M

4.2%

$28,250,000

$126,116

6.3%

$147,094

147

6.3%

2012

-

-

-

-

-

-

$143,823

144

6.2%

2011

2

$36.0 M

7.5%

$36,000,000

$180,000

5.2%

$136,258

136

6.3%

2010

-

-

-

-

-

-

$122,818

123

6.6%

2009

2

$21.2 M

4.7%

$10,600,000

$84,462

-

$92,533

93

7.4%

2008

-

-

-

-

-

-

$99,838

100

7.2%

2007

1

$2.4 M

1.9%

$2,400,000

$28,235

-

$124,675

125

6.6%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 26

Appendix Providence Multi-Family 3 STAR SALES Completed Transactions (1)

Market Pricing Trends (2)

Year

Deals

Volume

Turnover

Avg Price

Avg Price/Unit

Avg Cap Rate

Price/Unit

Price Index

Cap Rate

2022

-

-

-

-

-

-

$151,353

183

7.1%

2021

-

-

-

-

-

-

$149,737

181

7.1%

2020

-

-

-

-

-

-

$149,309

181

7.1%

2019

-

-

-

-

-

-

$153,418

186

6.9%

2018

-

-

-

-

-

-

$157,310

190

6.7%

YTD

7

$2.5 M

0.3%

$409,332

$53,391

8.0%

$156,549

189

6.6%

2017

24

$147.8 M

5.9%

$6,718,818

$143,231

7.1%

$155,879

189

6.6%

2016

16

$12.6 M

1.0%

$967,541

$88,578

8.8%

$137,587

167

6.9%

2015

13

$62.6 M

4.1%

$4,818,776

$88,231

6.6%

$132,661

161

6.9%

2014

16

$41.1 M

3.1%

$2,739,447

$95,120

9.6%

$121,340

147

7.1%

2013

13

$124.3 M

8.5%

$11,296,032

$84,817

7.0%

$113,584

137

7.3%

2012

8

$21.3 M

1.8%

$3,038,143

$69,957

12.3%

$112,068

136

7.2%

2011

3

$9.5 M

0.8%

$4,756,500

$68,935

-

$109,481

133

7.2%

2010

6

$11.7 M

1.0%

$2,916,250

$73,829

8.8%

$99,398

120

7.5%

2009

7

$42.8 M

3.9%

$6,120,714

$65,713

7.4%

$75,853

92

8.4%

2008

6

$22.2 M

1.4%

$4,430,000

$96,304

8.6%

$82,624

100

8.1%

2007

3

$28.3 M

2.3%

$9,425,000

$73,825

7.1%

$103,708

126

7.3%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

1 & 2 STAR SALES Completed Transactions (1)

Market Pricing Trends (2)

Year

Deals

Volume

Turnover

Avg Price

Avg Price/Unit

Avg Cap Rate

Price/Unit

Price Index

Cap Rate

2022

-

-

-

-

-

-

$103,032

195

8.0%

2021

-

-

-

-

-

-

$101,908

193

8.0%

2020

-

-

-

-

-

-

$101,516

192

8.0%

2019

-

-

-

-

-

-

$103,850

196

7.8%

2018

-

-

-

-

-

-

$105,935

200

7.6%

YTD

33

$12.1 M

1.1%

$576,189

$81,208

9.2%

$104,450

198

7.5%

2017

106

$40.8 M

4.0%

$530,449

$59,714

8.9%

$103,524

196

7.5%

2016

68

$72.9 M

4.6%

$1,215,309

$73,879

9.6%

$96,881

183

7.6%

2015

58

$15.5 M

1.8%

$309,489

$43,590

8.7%

$90,669

171

7.7%

2014

61

$31.2 M

2.6%

$519,891

$52,781

10.7%

$81,606

154

8.0%

2013

68

$37.6 M

3.6%

$577,718

$47,175

9.7%

$75,201

142

8.4%

2012

55

$17.4 M

2.4%

$404,590

$44,495

11.0%

$73,300

139

8.3%

2011

41

$15.5 M

2.2%

$455,193

$34,392

8.0%

$69,802

132

8.4%

2010

32

$6.4 M

0.9%

$244,284

$37,361

9.4%

$63,460

120

8.7%

2009

67

$9.5 M

1.9%

$176,425

$27,775

7.8%

$47,863

91

9.8%

2008

32

$13.1 M

1.0%

$486,957

$70,309

11.4%

$52,874

100

9.5%

2007

22

$11.9 M

1.0%

$564,297

$53,140

10.6%

$66,530

126

8.5%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 27

Appendix Providence Multi-Family DELIVERIES & UNDER CONSTRUCTION Inventory

Deliveries

Net Deliveries

Under Construction

Year

Bldgs

Units

Vacancy

Bldgs

Units

Bldgs

Units

Bldgs

Units

2022

-

50,977

4.7%

-

657

-

636

-

-

2021

-

50,341

4.5%

-

586

-

566

-

-

2020

-

49,775

4.3%

-

415

-

395

-

-

2019

-

49,380

4.2%

-

785

-

764

-

-

2018

-

48,616

3.9%

-

828

-

822

-

-

YTD

2,774

48,187

3.6%

3

393

3

393

12

1,321

2017

2,771

47,794

3.7%

5

600

5

600

12

1,398

2016

2,766

47,194

4.2%

8

973

7

968

13

1,507

2015

2,759

46,226

4.5%

7

590

7

590

8

1,213

2014

2,752

45,636

4.7%

3

233

(3)

197

7

590

2013

2,755

45,439

5.1%

2

129

2

129

6

345

2012

2,753

45,312

5.6%

1

248

(4)

210

4

185

2011

2,757

45,102

5.7%

2

18

2

18

1

248

2010

2,755

45,084

6.6%

1

251

0

246

3

266

2009

2,755

44,838

6.5%

3

270

3

270

1

251

2008

2,752

44,568

6.7%

4

618

4

618

3

270

2007

2,748

43,950

6.3%

8

586

8

586

6

748

2006

2,740

43,364

6.2%

5

394

5

394

9

776

6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.

Page 28