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Multi-Family Market Report

Boston Market

PREPARED BY

Richard Cawley President


Boston Multi-Family

MULTI-FAMILY MARKET REPORT

Market Key Statistics

2

Vacancy

3

Rent

6

Construction

12

Under Construction Properties

14

Sales

16

Sales Past 12 Months

17

Economy

19

Market Submarkets

22

Supply & Demand Trends

26

Vacancy & Rent

28

Sale Trends

30

Deliveries & Under Construction

32

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Overview Boston Multi-Family 12 Mo. Delivered Units

12 Mo. Absorption Units

Vacancy Rate

12 Mo. Asking Rent Growth

6,887

6,864

5.0%

3.1%

The supply pipeline has been tremendously full in Boston, with inventory growth more akin to that of a metro like Austin or Nashville than a mature, densely populated, coastal metro. As a result, vacancies will head modestly north over much of the forecast. Construction is focused on the urban cores of Boston and Cambridge, with neighborhoods such as Seaport, and North Cambridge leading the charge. The metro has not seen this many units coming on line since the 1980s. With so many projects hitting the market simultaneously, rent growth reached a peak in 2015 and will likely

decelerate over the forecast. But Boston’s strong base of renters—driven by the area’s top-notch colleges and universities, well-paid Millennials who want the urban lifestyle, and a handful of empty nesters—will help keep demand humming. However, as in many heavy-building metros, the question of “How much is too much?” is on the minds of most market players, given the unprecedented construction of high-end inventory. Will there be enough renters at the top end of the market willing to pay the rents in these new buildings?

KEY INDICATORS Units

Vacancy Rate

Asking Rent

Effective Rent

Absorption Units

Delivered Units

Under Constr Units

4 & 5 Star

68,521

8.7%

$2,724

$2,669

1,979

1,228

14,976

3 Star

72,017

3.3%

$1,998

$1,980

371

0

3,462

1 & 2 Star

56,713

2.7%

$1,602

$1,595

87

0

0

Market

197,251

5.0%

$2,229

$2,197

2,437

1,228

18,438

Annual Trends

12 Month

Historical Average

Forecast Average

Peak

When

Trough

When

Current Quarter

Vacancy Change (YOY)

-0.3%

4.6%

6.2%

5.8%

2018 Q1

1.7%

2000 Q1

Absorption Units

6,864

3,199

6,625

6,925

2016 Q4

(398)

2003 Q2

Delivered Units

6,887

3,702

7,395

8,782

2015 Q3

37

2011 Q3

Demolished Units Asking Rent Growth (YOY) Effective Rent Growth (YOY) Sales Volume

272

37

53

145

2011 Q4

0

2016 Q3

3.1%

2.0%

1.8%

13.0%

2001 Q2

-4.0%

2009 Q4

3.1%

2.0%

1.9%

13.0%

2001 Q2

-4.1%

2009 Q4

$3.5 B

$1.2 B

N/A

$3.7 B

2018 Q1

$154.9 M

2002 Q1

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Vacancy Boston Multi-Family As in many core coastal metros, apartment development hit Boston earlier than it did most markets, and the metro is now in the late-expansion phase. Developers have expanded beyond the urban core and are bringing new luxury product to the suburbs as well, raising vacancies. Fundamentals are beginning to soften, but the market isn’t expected to collapse. Vacancies will continue to creep up, which will cause rent growth to slow. While modest rent increases will be possible for the vast majority of metro properties over the next several years, rates for some of the newer buildings, particularly those in submarkets with heavy construction such as Downtown and Seaport/South Boston, may fall slightly, and concessions could extend beyond the lease-up period. Boston is blessed with built-in rental demand, thanks to an abundance of universities, a desirable urban core, and home prices out of reach for those under 30. Greater Boston contains more than 50 accredited universities, including premier institutions such as Harvard and MIT. In fact, Boston has the highest percentage of college students of any major city in the United States. Aside from a few rich, generally foreign students, most of these college kids live in Class C buildings, or in the shadow market of condo and single-family home rentals. R International migrants represent another source of rental demand. Boston, like other large, mature metros such as New York and D.C., has negative net domestic migration, perhaps because families are moving to more affordable areas of the country. Therefore, Boston relies heavily on international migrants to close the gap. The international migrants who arrive here are typically better educated and paid than those in other major metros and are also more likely to rent. A full 50% of all international immigrants over 25 who have arrived in Boston since

2010 have a bachelor's degree, the highest rate on the East Coast and surpassed only by the tech-heavy West Coast markets. Eighty-eight percent of this group rents, again one of the highest rates in the country. These educated renters aren't exclusively underpaid PhD candidates and indebted medical students—27% of working migrants who move here earn more than $75,000 a year. Rents keep reaching new highs, and over 100 buildings in the metro now have at least one unit advertised at $5/SF or higher. Most of these buildings are in Boston or Cambridge, but a handful are outside the urban core, in areas such as Waltham. While the top end of the market is feeling some headwinds, particularly Downtown and in Cambridge, occupancies in most properties have not been affected. But as the ultra-luxury product keeps rolling in, the question for many in the metro is, How many more deep-pocketed renters are out there? The good news for apartment owners is that the peak age for a Millennial is 27–28 years old, so they still have several years of apartment renting ahead of them. However, warning signs lurk further on the horizon. Growth in the 20–34-year-old cohort began to sharply decelerate in 2013, and in 2023 the cohort will begin to shrink for a decade, similar to in much of the '90s. And not only will the population in this cohort begin to shrink as the bulk of Millennials ages past 30, many will be getting married and starting families. That will inspire many to stop renting in the cool urban area and buy a home where the schools are good (the average age of a first-time homeowner in the U.S. is 33, though probably a little higher in Boston). Consequently, over the long term, apartment demand in Boston may hit from two directions at the same time, which would have adversely affect rents.

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Vacancy Boston Multi-Family ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE

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Vacancy Boston Multi-Family VACANCY BY BEDROOM

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Rent Boston Multi-Family The most interesting trend is that after many years of fantastic rent growth, downtown luxury product is having problems finding tenants, leading to stagnant rents or declines in a few cases, plus an increase in concessions. This goes not only for the brand-new buildings delivered in this cycle, but also for the other buildings that compete with them. And it is true for buildings that lie outside the submarkets with a tremendous amount of building. Take the Back Bay, for example. It only had two buildings complete in this cycle, compared to South Boston and the Seaport, which have had a combined 12 buildings deliver. And yet rent growth in the Back Bay has dropped off dramatically since the end of 2015 , worse than the roughly 3% growth in South Boston/Seaport. This is not to imply that the entire metro is having problems, some submarkets such as Allston/Brighton and North Shore are doing quite well, but there has been little construction in these submarkets, nor do they compete with the submarket that have been building. The reason is simple: competition. While this may not be true at the non-institutional end of the market, such as the small three-to-five-floor walkups, larger buildings are competing head-to-head for tenants and have not been able push rents the way they did from 2010 through the end of 2015, when rent growth in the Back Bay was 3% annually. In fact, the median rent growth for Boston area submarkets over that period was an astonishing 4% per year, and in a few cases, such as the Waltham/Arlington/Belmont Submarket, over 5%. If we look at the cities of Boston and Cambridge, where most construction has been focused, there is a clear increase in concessions. During the beginning of the

recovery, for example, these areas had an average concession of roughly zero, but now it’s up to about 8%, which equates to one month’s free rent. This share of concessions is also clearly biased to the newer buildings, as only 2% of all buildings in these cities are offering concessions, but 25% of buildings built since 2010 are offering them. Additionally, we try to get a truer picture of concessions through our 200 secret shoppers, who call apartments posing as potential renters, but even then we may not be getting the complete scope of the trend. We hear from our clients of some buildings offering two months of free rents in concessions, or paying tenants’ moving costs or giving them gift cards. We have also heard that many buildings are paying a full month’s broker’s fee, which traditionally would have been paid by the tenant. In fact, we’ve heard of a few managers who are paying double fees (two months of free rent) to brokers to get people in the door. Depending which side of the coin you’re on, the good news for owners (bad news for tenants) is that deliveries will drop dramatically after 2018, due to rising construction costs and fewer available/profitable sites, but mostly because of a dearth of credit, as many banks have loaded up on apartment construction loans and don’t have room on the balance sheet for any more. Once construction wanes, landlords will find themselves in a more normal rental environment, but they’ll be presented with a new problem on the horizon: fewer potential tenants, as the last of the Millennials age into the prime renting cohort, those 20–34 years old. The generation behind Millennials, Generation Z, (born after 2000) is a smaller one and can’t pick up the slack.

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Rent Boston Multi-Family DAILY ASKING RENT PER SF

ASKING RENT PER UNIT & RENT GROWTH

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Rent Boston Multi-Family ASKING RENT PER UNIT BY BEDROOM

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Rent Boston 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

$1.10

$1.80

$1.20

$0.83

$2.17

$2.18

$0.56

$2.64

$0.10

$0.45

$0.79

$13.82

495-North

$0.81

$1.15

$0.67

$1.05

$1.89

$1.34

$0.38

$2.25

$0.10

$0.47

$0.81

$10.92

495-South

$1.05

$1.98

$1.81

$1.18

$2.46

$1.81

$0.41

$2.03

$0.12

$0.47

$0.81

$14.13

95-North

$0.90

$1.20

$0.79

$1.05

$1.92

$1.34

$0.49

$2.25

$0.10

$0.47

$0.81

$11.32

Allston/Brighton

$1.27

$1.84

$1.30

$0.51

$2.08

$2.19

$0.86

$3.46

$0.10

$0.47

$0.81

$14.89

Back Bay/South End

$1.21

$1.75

$1.30

$0.51

$2.03

$2.04

$0.77

$3.07

$0.10

$0.40

$0.75

$13.93

Brookline/Newton…

$1.02

$1.99

$1.60

$1.10

$2.33

$1.88

$0.69

$2.08

$0.11

$0.41

$0.76

$13.97

Charlestown

$1.27

$1.84

$1.30

$0.51

$2.08

$2.19

$0.86

$3.46

$0.10

$0.47

$0.81

$14.89

Downtown Boston

$1.25

$1.79

$1.30

$0.51

$2.05

$2.13

$0.82

$3.26

$0.10

$0.43

$0.78

$14.42

Everett/Malden/Med… $0.98

$1.51

$0.67

$1.05

$2.16

$2.26

$0.38

$2.90

$0.10

$0.47

$0.81

$13.29

Fenway/Mission Hill

$1.22

$1.76

$1.30

$0.51

$2.04

$2.06

$0.79

$3.13

$0.10

$0.41

$0.76

$14.08

Greater Merrimack…

$0.96

$1.95

$1.26

$0.57

$2.00

$1.52

$0.36

$1.64

$0.10

$0.46

$0.80

$11.62

Harvard/Central/Ke…

$1.36

$2.57

$0.67

$1.05

$2.61

$5.37

$0.42

$3.18

$0.10

$0.47

$0.81

$18.61

Metro West

$1.03

$1.65

$0.98

$1.06

$2.08

$2.64

$0.41

$2.57

$0.10

$0.47

$0.81

$13.80

New Hampshire Be…

$1.02

$1.84

$1.30

$0.92

$2.08

$2.05

$0.44

$2.63

$0.10

$0.47

$0.81

$13.66

North Cambridge-S…

$1.03

$1.66

$0.76

$0.98

$2.12

$2.61

$0.46

$2.69

$0.10

$0.47

$0.81

$13.69

North Shore

$0.96

$1.85

$1.26

$0.57

$2.01

$1.53

$0.30

$1.64

$0.10

$0.47

$0.81

$11.50

Quincy/Milton/Rand…

$1.03

$2.51

$1.37

$1.08

$2.39

$1.41

$0.44

$2.29

$0.12

$0.47

$0.81

$13.92

Route 1 North

$1.25

$1.81

$1.26

$0.55

$2.08

$2.19

$0.83

$3.42

$0.10

$0.47

$0.81

$14.77

Route 1 South

$1.05

$1.98

$1.81

$1.18

$2.46

$1.81

$0.41

$2.03

$0.12

$0.47

$0.81

$14.13

South Boston/Seaport

$1.21

$1.72

$1.30

$0.51

$1.93

$2.13

$0.80

$3.06

$0.10

$0.39

$0.75

$13.90

South Plymouth Co…

$1.02

$1.84

$1.30

$0.92

$2.08

$1.71

$0.44

$2.20

$0.10

$0.47

$0.81

$12.89

South Shore

$1.26

$1.98

$2.47

$1.18

$3.10

$2.51

$0.41

$2.03

$0.12

$0.47

$0.81

$16.34

South Suffolk County

$1.27

$1.84

$1.53

$0.51

$2.08

$2.63

$0.86

$3.46

$0.10

$0.47

$0.81

$15.56

Strafford County

$0.87

$1.65

$1.16

$0.79

$1.80

$1.67

$0.41

$2.35

$0.08

$0.34

$0.71

$11.83

Suburban Rockingh…

$1.02

$1.84

$1.30

$0.92

$2.08

$2.05

$0.44

$2.63

$0.10

$0.47

$0.81

$13.66

Waltham/Arlington…

$0.81

$1.15

$0.67

$1.05

$1.89

$1.34

$0.38

$2.25

$0.10

$0.47

$0.81

$10.92

Boston

Appliance Structural

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

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Rent Boston Multi-Family 3 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster

Capital Expenditures

Mgmt.

Admin.

Payroll

Water

Utilities

Maint.

Insurance

Taxes

Other

Total

$0.88

$1.34

$0.87

$0.59

$1.68

$1.65

$0.40

$1.72

$0.09

$0.10

$0.54

$9.86

495-North

$0.77

$1.03

$0.63

$0.63

$1.74

$1.23

$0.35

$2.04

$0.09

$0.10

$0.54

$9.15

495-South

$0.95

$0.92

$0.37

$0.79

$1.53

$1.69

$0.39

$1.64

$0.11

$0.10

$0.54

$9.03

95-North

$0.88

$1.05

$0.75

$0.61

$1.74

$1.18

$0.49

$1.48

$0.09

$0.10

$0.54

$8.91

Allston/Brighton

$0.94

$1.39

$1.28

$0.49

$1.84

$1.46

$0.42

$1.47

$0.10

$0.10

$0.54

$10.03

Back Bay/South End

$0.93

$1.39

$1.28

$0.49

$1.83

$1.45

$0.41

$1.45

$0.09

$0.10

$0.54

$9.96

Brookline/Newton…

$0.96

$0.92

$0.37

$0.77

$1.54

$1.88

$0.71

$1.65

$0.11

$0.10

$0.54

$9.55

Charlestown

$0.94

$1.39

$1.28

$0.49

$1.85

$1.46

$0.41

$1.47

$0.09

$0.10

$0.54

$10.02

Downtown Boston

$0.94

$1.39

$1.28

$0.49

$1.84

$1.45

$0.41

$1.46

$0.09

$0.10

$0.54

$9.99

Everett/Malden/Med… $0.93

$1.42

$0.63

$0.64

$2.04

$2.13

$0.35

$2.74

$0.09

$0.10

$0.54

$11.61

Fenway/Mission Hill

$0.94

$1.34

$1.14

$0.52

$1.79

$1.52

$0.48

$1.57

$0.09

$0.11

$0.55

$10.05

Greater Merrimack…

$0.57

$1.89

$0.93

$0.32

$0.76

$0.94

$0.30

$1.14

$0.09

$0.10

$0.54

$7.58

Harvard/Central/Ke…

$1.30

$2.45

$0.64

$0.72

$2.49

$5.11

$0.40

$3.03

$0.09

$0.10

$0.54

$16.87

Metro West

$0.98

$1.57

$0.93

$0.64

$1.99

$2.51

$0.39

$2.44

$0.09

$0.10

$0.54

$12.18

New Hampshire Be…

$0.87

$1.38

$0.91

$0.65

$1.63

$1.96

$0.42

$1.88

$0.09

$0.10

$0.54

$10.43

North Cambridge-S…

$0.81

$1.18

$0.63

$0.64

$1.82

$1.59

$0.36

$2.15

$0.09

$0.10

$0.54

$9.91

North Shore

$0.51

$0.75

$0.93

$0.40

$1.07

$0.77

$0.23

$1.30

$0.09

$0.10

$0.54

$6.69

Quincy/Milton/Rand…

$0.93

$0.91

$0.36

$0.78

$1.52

$1.32

$0.41

$1.63

$0.10

$0.10

$0.53

$8.59

Route 1 North

$0.94

$1.39

$1.28

$0.49

$1.84

$1.45

$0.41

$1.46

$0.09

$0.10

$0.54

$9.99

Route 1 South

$0.96

$0.92

$0.37

$0.79

$1.54

$1.71

$0.39

$1.65

$0.11

$0.10

$0.54

$9.08

South Boston/Seaport

$0.72

$1.24

$1.28

$0.49

$1.33

$1.45

$0.54

$1.42

$0.09

$0.10

$0.54

$9.20

South Plymouth Co…

$0.86

$1.38

$0.91

$0.65

$1.62

$1.62

$0.42

$1.87

$0.09

$0.10

$0.54

$10.06

South Shore

$0.95

$1.15

$0.46

$1.10

$1.71

$1.31

$0.38

$1.30

$0.11

$0.10

$0.54

$9.11

South Suffolk County

$0.92

$1.38

$1.28

$0.49

$1.80

$1.45

$0.41

$1.43

$0.09

$0.10

$0.54

$9.89

Strafford County

$0.80

$1.33

$0.89

$0.62

$1.52

$1.71

$0.40

$1.88

$0.09

$0.11

$0.54

$9.89

Suburban Rockingh…

$0.85

$1.41

$0.94

$0.66

$1.63

$1.87

$0.42

$1.94

$0.09

$0.13

$0.56

$10.50

Waltham/Arlington…

$0.77

$1.04

$0.63

$0.63

$1.74

$1.23

$0.35

$2.04

$0.09

$0.10

$0.54

$9.16

Boston

Appliance Structural

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

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Rent Boston 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

$0.70

$0.95

$0.77

$0.56

$1.26

$1.14

$0.36

$1.18

$0.04

$0.09

$0.51

$7.56

495-North

$0.76

$0.66

$0.60

$0.61

$1.44

$0.98

$0.29

$1.44

$0.04

$0.09

$0.51

$7.42

495-South

$0.83

$0.88

$0.35

$0.75

$1.47

$1.53

$0.37

$1.57

$0.04

$0.09

$0.51

$8.39

95-North

$0.77

$0.66

$0.72

$0.58

$1.44

$0.98

$0.29

$1.37

$0.04

$0.09

$0.51

$7.45

Allston/Brighton

$0.68

$1.33

$1.22

$0.46

$1.22

$1.39

$0.39

$0.83

$0.04

$0.09

$0.52

$8.17

Back Bay/South End

$0.67

$1.32

$1.22

$0.46

$1.19

$1.38

$0.39

$0.80

$0.04

$0.09

$0.51

$8.07

Brookline/Newton…

$0.82

$0.88

$0.35

$0.57

$1.53

$1.12

$0.65

$1.57

$0.04

$0.09

$0.51

$8.13

Charlestown

$0.66

$1.32

$1.22

$0.46

$1.18

$1.38

$0.39

$0.80

$0.04

$0.09

$0.51

$8.05

Downtown Boston

$0.68

$1.32

$1.22

$0.46

$1.21

$1.39

$0.39

$0.82

$0.04

$0.09

$0.52

$8.14

Everett/Malden/Med… $0.77

$0.68

$0.60

$0.61

$1.45

$1.00

$0.30

$1.47

$0.04

$0.09

$0.52

$7.53

Fenway/Mission Hill

$0.73

$1.21

$1.01

$0.50

$1.31

$1.36

$0.46

$1.03

$0.04

$0.09

$0.52

$8.26

Greater Merrimack…

$0.57

$1.13

$0.75

$0.30

$0.72

$0.89

$0.29

$1.02

$0.04

$0.09

$0.51

$6.31

Harvard/Central/Ke…

$0.77

$0.68

$0.61

$0.68

$1.45

$1.02

$0.30

$1.46

$0.04

$0.09

$0.51

$7.61

Metro West

$0.77

$0.38

$0.70

$0.61

$1.54

$0.53

$0.27

$1.56

$0.04

$0.09

$0.51

$7.00

New Hampshire Be…

$0.57

$1.28

$0.87

$0.52

$1.24

$0.90

$0.36

$1.79

$0.04

$0.09

$0.51

$8.17

North Cambridge-S…

$0.76

$0.68

$0.62

$0.62

$1.43

$0.99

$0.30

$1.42

$0.04

$0.09

$0.51

$7.46

North Shore

$0.48

$0.71

$0.71

$0.38

$1.02

$0.73

$0.22

$1.00

$0.04

$0.09

$0.52

$5.90

Quincy/Milton/Rand…

$0.82

$0.88

$0.35

$0.75

$1.46

$1.27

$0.39

$1.57

$0.04

$0.09

$0.51

$8.13

Route 1 North

$0.67

$1.32

$1.22

$0.46

$1.18

$1.38

$0.39

$0.80

$0.04

$0.09

$0.51

$8.06

Route 1 South

$0.82

$0.88

$0.35

$0.75

$1.46

$1.53

$0.37

$1.57

$0.04

$0.09

$0.51

$8.37

South Boston/Seaport

$0.67

$1.19

$1.22

$0.46

$1.19

$1.39

$0.48

$0.82

$0.04

$0.09

$0.52

$8.07

South Plymouth Co…

$0.67

$1.28

$0.87

$0.62

$1.42

$1.33

$0.41

$1.37

$0.04

$0.09

$0.51

$8.61

South Shore

$0.82

$1.10

$0.42

$1.05

$1.63

$1.25

$0.29

$1.24

$0.04

$0.09

$0.51

$8.44

South Suffolk County

$0.58

$1.16

$1.22

$0.46

$0.87

$1.38

$0.39

$0.55

$0.04

$0.09

$0.51

$7.25

Strafford County

$0.57

$1.28

$0.87

$0.52

$1.24

$0.90

$0.36

$1.79

$0.04

$0.09

$0.51

$8.17

Suburban Rockingh…

$0.57

$1.28

$0.87

$0.52

$1.24

$0.90

$0.36

$1.79

$0.04

$0.09

$0.51

$8.17

Waltham/Arlington…

$0.76

$0.67

$0.60

$0.61

$1.45

$0.98

$0.30

$1.46

$0.04

$0.09

$0.52

$7.48

Boston

Appliance Structural

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

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Page 11


Construction Boston Multi-Family Supposedly, Boston is hard to build in, but not for multifamily in this cycle. We'd have to go back to the 1920s to find apartment inventory growth like this in Beantown. This new product has a chance to redefine neighborhoods and bring Boston’s housing stock up to par with that of other major cities. Supply has been heavy in Downtown Boston and early in the cycle in Chinatown, with the AVA Theater District and One Greenway projects delivering more than 600 units in 2015. Significant development has since shifted to the area around North Station/Government Center. In 2017, Avalon Bay delivered its 503-unit North Station tower, which will be followed by three more 400-unit-plus developments from the likes of Boston Properties, Equity Residential, and HYM Investments. The Fenway/Mission Hill Submarket is seeing a multitude of units move through the pipeline from developments along Boylston Street (Pierce Boston and the Harlo) to plans for redevelopment of underutilized sites as well as for the air rights over the Mass Pike. The South Boston/Seaport Submarket is teeming with development as that neighborhood continues to rapidly emerge. With so much construction in the area, renters will have an entirely new stock of apartments to look at, and lifestyle/neighborhood decisions will be paramount when shelling out $3,000/month for a one-bedroom unit.

metro. In exchange for transportation funding, the MBTA has allowed developers to construct housing units over a variety of state-owned properties, ranging from Back Bay Station to Quincy Center. TH Real Estate and Gerdling Edlen recently broke ground on their longawaited Fenway Center project, the first air rights development over the Mass Pike since the 1980s. Local government may soon open up further sites for residential development, some of which diverge from the typical apartment site. The Walsh administration recently put out a “request for interest” to residential developers for 83 city-owned buildings ranging from aging libraries, community centers, and firehouses.

Cambridge and the ’burbs are seeing their share of new development, too, with the area around Alewife (along the Red Line) as well as the East Cambridge neighborhood lately the focal points of construction. These areas, which once lacked institutional product, delivered a combined 1,700 units over the past two years. Catering to an audience that differs from urban dwellers, developers are active across suburban Boston as well. Overall, the pipeline is at full bore with more than 18,000 units underway across the metro.

The housing market in Boston and a number of metros is extremely strong right now and the question among many is why haven’t we seen more condo construction? The lack of construction may be the result of the banks, who view the condo market as a lot more risky than the apartment market and because of this their equity requirement is much higher. For many developers thinking condos this often a deal breaker and they build apartments instead. However, there have been a few developers that recently switched from apartments to condos, but only a piece of the project, likely as way to get around the hefty equity requirement. For example, HYM Investments recently decided to convert 118 units out of 486 into 55 condos, in its giant project downtown at the perimeter of the Financial District. Additionally, National Development, converted a portion of its Ink Block project from rentals to condos and Related Beal did the same with Lovejoy Wharf.

As many of the best urban infill sites have been picked over, demand has been strong enough to justify construction in ever more creative locations. Parking garages have become increasingly popular targets for development, and in Downtown Boston alone more than six garages are being converted or will be converted to residential uses. Projects over existing transportation hubs and thoroughfares have also appeared across the

The immense amount of apartment construction is causing projects to take longer and longer to complete, because construction companies have to focus on multiple projects simultaneously and fight for labor. For example, according to CoStar’s construction pipeline, in 2013 a mid-rise project took 406 days from first steel to certificate of occupancy. In 2015 that number jumped to 494 days, in 2017 projects averaged 545 days. It’s the same story for other construction styles in Boston, as low-rise projects have moved from 372 days in 2013 to 534 in 2017 and high-rise projects have moved from 566 days to 800.

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Construction Boston Multi-Family DELIVERIES & DEMOLITIONS

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Page 13


Under Construction Properties Boston Multi-Family Properties

Units

Percent of Inventory

Avg. No. Units

116

19,020

9.6%

164

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION Property Name/Address

Rating

Units

Stories

Start

Complete

1

Echelon Seaport 152 Seaport Blvd

717

21

Mar-2017

Jan-2020

2

Washington Village 235 Old Colony Ave

656

21

Sep-2017

May-2019

3

Harrison Albany Block 123 E Dedham St

650

11

May-2018

Jun-2020

4

Clippership Wharf 25-65 Lewis St

478

6

Jan-2017

Sep-2018

5

South Bay Town Center 101 Allstate Rd

475

6

Oct-2017

Aug-2018

6

The Hub on Causeway W… 80 Causeway St

440

38

Mar-2018

Oct-2020

7

Bulfinch Crossing 100 Sudbury St

423

45

Mar-2018

Jun-2020

Developer/Owner

Cottonwood Management, LLC Core Investments, Inc. The City of Boston The Bozzuto Group Leggat McCall Properties LLC LendLease US Services Inc. LendLease US Services Inc. EDENS EDENS Boston Properties Limited Partne… Boston Properties Limited Partne… HYM Investment Group HYM Investment Group

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

Rating

Units

Stories

Start

Complete

8

399 Congress 399 Congress St

414

22

Apr-2018

Oct-2019

9

The Kendrick 275 2nd Ave

390

4

May-2017

Jun-2019

10

Second Avenue Residen… 156 B St

390

5

Jun-2017

Jun-2019

11

Whittier Choice 1 Whittier St

387

15

Mar-2018

Oct-2019

12

345 Harrison Phase II 345 Harrison Ave

384

14

Dec-2016

Jul-2018

13

Aspen Regency 147 Rangeway Rd

384

-

Dec-2016

Sep-2018

14

Jefferson at Malden Center 200 Pleasant St

320

6

Mar-2017

Dec-2018

15

Fenway Center - Phase I Brookline Ave

312

13

Jan-2018

Oct-2019

16

Mass+Main 425 Massachusetts Ave

308

19

Nov-2017

Jan-2019

17

Gables Seaport 501 Congress St

307

23

Apr-2018

Oct-2019

305

25

Apr-2017

Nov-2019

18

400 Ocean Ave

19

Parcel K 315 Northern Ave

304

12

Mar-2018

Jul-2019

20

Kendall Square 290-292 Main St

290

28

Oct-2017

Mar-2019

21

Residences at MacGrego… 6 MacGregor Ct

288

3

May-2017

Sep-2018

22

The Pioneer 1760 Revere Beach Pky

286

6

Jun-2017

Sep-2018

23

Elan Watertown 56 Irving St

282

4

Dec-2016

Aug-2018

24

Weston Woods 1330-1342 W Central St

280

4

Aug-2016

Dec-2018

25

Proto 88 Ames St

280

22

Dec-2016

Aug-2018

26

Pac 10 Lofts 5 Franklin St

276

6

Oct-2017

Apr-2019

27

Quarry Hills II 200 Ricciuti Dr

269

5

Dec-2017

Jul-2019

28

Cooper Street Apartments 20 Cooper St

264

5

Jun-2016

Oct-2018

Developer/Owner

Crescent Heights Crescent Heights Toll Brothers. Inc. Toll Brothers Apartment Living Toll Brothers. Inc. Boston Housing Authority Preservation of Affordable Housin… Nordblom Company UDR, Inc. Garden Communities Garden Homes Jefferson Apartment Group Jefferson Apartment Group Meredith Management Corporation Meredith Management Twining Properties Twining Properties The Drew Co. The Drew Co. Gate Residential Properties LLC Gate Residential Properties LLC Lincoln Property Company Massachusetts Port Authority Massachusetts Institute of Techn… Massachusetts Institute of Techn… First Londonderry Assoc Post Road Residential Inc. Post Road Residential Inc. Greystar Real Estate Partners Greystar Real Estate Partners Acme Jazz Llc Wood Partners Boston Properties Limited Partne… Boston Properties Limited Partne… Reed Realty Group Reed Realty Group Quarry Hills Development, LLC Quarry Hills Development, LLC Daiwa House Industry Co., Inc. Lincoln Property Company

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Page 15


Sales Boston Multi-Family In comparison to the other seven prime metros, Boston ranks dead last in terms of total sales volume from 2011 to 2017, though not too far behind San Francisco. Much of this is because much Boston’s rental housing is not in large buildings, but in small ones with less than five units which are not included in our inventory. However, the trend in Boston is similar to most metros, in that volume peaked here in 2015 and has been down marginally each year since then. Unlike most prior times there has been a decline, this not viewed by investors as weakness in the market, or a drop in interest from buyers. Instead, what's happening is that we are almost nine years into this cycle and many assets have been purchased by long term holders of investments such as REITs and pension funds, rather than private equity with finite hold periods. Add in the fact that prices are at alltime highs and it creates a situation where few owners want to sell because they're worried about reinvestment risk, it's hard to find another investment with the same return. In terms of inventory turnover for the prime metros,

Boston ranks sixth out, just a hair above San Francisco. However, all these metros are extremely liquid and Boston’s turnover ratio of 135%, is far above the typical U.S. metro which averages 16%. These ratios are calculated by taking the units traded from 2011 to 2017 and dividing them by the average inventory over that period. The submarket with the most investment volume over this period was North Cambridge-Somerville with $1.1 billion in trades, or 8% of metro deal volume This submarket is a slightly smaller than average submarket accounting for 2% of metro inventory, compared to the typical submarket in the metro with 4% of metro inventory, so it’s really punching above its weight. This submarket is also far more expensive with an average price of $373 compared to $207 for the entire metro from 2011 to 2017. Other submarkets with heavy volume were Quincy/Milton/Randolph, Harvard/Central/Kendall/Cambridge, and Greater Merrimack Valley which is the largest submarket with 10% of inventory

SALES VOLUME & MARKET SALE PRICE PER UNIT

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Sales Past 12 Months Boston Multi-Family Sale Comparables

Avg. Price/Unit (thous.)

Average Price (mil.)

Average Vacancy at Sale

264

$321

$14.0

5.9%

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS Sales Attributes

Low

Average

Median

High

Sale Price

$457,000

$13,972,451

$2,200,000

$359,488,874

Price Per Unit

$13,796

$320,644

$200,000

$1,571,428

3.0%

5.7%

5.4%

10.6%

Vacancy Rate at Sale

0%

5.9%

0%

83.3%

Time Since Sale in Months

0.3

6.1

5.7

11.9

Property Attributes

Low

Average

Median

High

Property Size in Units

5

41

8

696

Number of Floors

1

3

3

21

Average Unit SF

0

816

871

1,338

1790

1927

1918

2019

Cap Rate

Year Built Star Rating

2.5

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Page 17


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

1

The Zinc 22-24 Water St

2

Watermark Seaport 85 Seaport Blvd

3

Gardencrest Apartments 20 Middlesex Cir

4

Cambridge Park Apartments 30 Cambridge Park Dr

5

Harborview at the Navy Yard 250 1st Ave

6

Tower at One Greenway 99 Kneeland St

7

Stone Gate 65 Silver Leaf Way

8

Prynne Hills 1 Avalon Dr

9

Fuse Cambridge 165 Cambridgepark Dr

10

Girard 50 Malden St

11

Bell Olmsted Park 161 S Huntington Ave

12

One Upland 1 Upland Woods Cir

13

Everly 14 Audubon Rd

14

The Washingtons 2 Washington St

15

Hanover at The Pinehills 40 Pinehills Dr

16

Cliffside Commons 500 Broadway

14

The Washingtons 2 Washington St

17

The Point at North Quincy 95 W Squantum St

18

Vanguard Waterfront Square 660 Ocean Ave

19

The Estates 1 Avalon Dr

Sale Information

Rating

Yr Built

Units

Vacancy

Sale Date

Price

Price/Unit

Price/SF

-

2015

392

3.3%

9/19/2017

$359,488,874

$917,063

$899

-

2016

346

7.8%

1/1/2018

$238,750,000

$690,028

$543

-

1948

696

6.0%

11/30/2017

$194,543,761

$279,516

$296

-

2003

312

4.2%

6/30/2017

$168,000,000

$538,461

$485

-

2007

224

4.0%

8/10/2017

$149,250,000

$666,294

$352

-

2015

217

3.2%

11/17/2017

$144,500,000

$665,898

$796

-

2007

332

2.1%

9/19/2017

$138,617,917

$417,523

$219

-

2013

472

2.5%

5/29/2018

$131,250,000

$278,072

$277

-

2016

244

3.3%

3/22/2018

$127,500,000

$522,540

$623

-

2016

160

14.8%

8/21/2017

$116,400,000

$727,500

$485

-

2015

196

24.4%

7/19/2017

$103,250,000

$526,785

$401

-

2016

262

14.1%

10/20/2017

$93,000,000

$354,961

$369

-

2014

186

5.9%

9/19/2017

$89,022,677

$478,616

$462

-

2015

182

12.9%

8/3/2017

$75,000,000

$412,087

$577

-

2016

220

7.7%

11/6/2017

$71,800,000

$326,363

$671

-

2000

295

10.5%

10/3/2017

$71,000,000

$240,677

$196

-

2015

182

12.9%

9/19/2017

$70,945,938

$389,812

$546

-

1976

224

2.2%

5/31/2018

$64,250,000

$286,830

$275

-

2016

194

31.4%

10/6/2017

$59,850,000

$308,505

$386

-

2000

162

6.8%

7/27/2017

$47,150,000

$291,049

$208

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Page 18


Economy Boston Multi-Family It may not feel like the late 1990s, when job growth in Boston was at it's peak, but the economy here is humming along pretty well. Annual growth in Boston has been hovering around 2% since the end of 2011, above the metro’s expansion during the last growth cycle (2004–07) of about 1.4%. In fact, job growth during the tech boom wasn’t that much better over its best fouryear (1997–2001) stretch than what Boston has experienced over the past four years. Unemployment in the metro is coming off its lowest rate in 15 years, and is almost 150 basis points below that of the national average. As a result of Boston’s economic vigor, the total number of people employed reached a new high in 2013, finally topping the previous high achieved in 2001. This level now stands 10% higher than it did in 2013 and is a strong driver of demand across multiple property types. The largest employment sector in Boston is education and health services. This is not uncommon in an old and large metro, but Boston takes the cake with the highest concentration in this sector in the 50 largest U.S. metros, if not more. Health services is the larger of the two subsectors, accounting for 80% of the sector’s jobs, driven in large part by the metro’s hospitals. While this sector is the largest employer in the metro, it’s not the most dynamic. Growth rarely gets above 4% but, on the flipside, has not seen two consecutive quarters of losses since the mid-1970s. So while this sector 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. That honor goes to professional business services, which in Boston means high tech. If education and healthcare is the yin, then high tech is the yang. Employment in high-tech has seen annual changes of more than 10% on more than one occasion. Over the past five years, growth has been unusually steady, averaging almost 3% annually, or—to put it in perspective—a little over 100 basis points above growth in total employment for the U.S. average. Over the years, companies have moved to Boston to take advantage of its rich pool of tech talent, and in one of the more prominent examples, GE announced in early 2016 that it was moving here from Fairfield, CT. GE had other suitors, including New York, which, per the Wall Street Journal, made an aggressive effort led by Governor Andrew Cuomo, but GE chose Boston because of its plethora of highly educated and skilled workers. Undoubtedly, this choice was made easier by tax incentives offered by both the city of Boston and the state of Massachusetts. In fact, according to Reuters, “even though Massachusetts is called ‘Taxachusetts’ it

ranked 25th in 2016 Tax Foundation survey,” while Connecticut ranked near the bottom at 44th. GE and 800 of its employees will put their imagination to work in the Seaport, home to Boston’s Innovation District, which is finally coming into its own. According the Boston Globe "several smaller companies have moved their headquarters to the area in recent months" and it would not be surprising if other companies tied to GE make the move. In yet another big story for the Seaport, in December 2016, Reebok announced that it will be moving from Canton (15 miles south of Boston) to the Seaport, taking down 220,000 SF and bringing 700 more jobs to this red-hot submarket. The reason for the move was simple: Reebok could not attract enough talented people to a sleepy suburb of Boston. What is truly interesting is that this location is at the far end of the Seaport, about three quarters of a mile from where all the other building in the submarket is taking place. Reebok’s new location is a good 20-minute walk from South Station, the closet true subway stop and their relocation sends the message that all of the Seaport is in play and able to land first-rate tenants 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 Boston’s super sectors. At the end of 2015, construction employment growth reached a whopping 10% annually, though it has since come down to about 4% which is still double the rate of growth of metrowide employment. The tremendous expansion of construction jobs has been driven by an extremely strong housing market within Route 128 and a staggering amount of apartment construction. However, construction employment is a smaller component of Boston’s total employment than it is in 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 and one of the region's largest construction companies has started advising clients to expect costs to rise by 1% per month, through the end of 2017, due to the cost of labor. Despite the cheery story that is the Boston economy right now, not every sector is enjoying robust growth. Financial activities is a good example of that, as the number of jobs in that sector finally back to the high it achieved in 2007 in the beginning of 2017, and both totals are still a little below the high achieved in 2001. Many of these jobs are in mutual fund custodial firms such as JPM, BBH, MFS, and State Street. Boston was home to the first mutual fund, and while many of the portfolio management jobs are in New York, the 1940

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Page 19


Economy Boston Multi-Family Act, which regulates modern mutual funds, requires that securities are held by an outside custodian (because many funds cooked their books in the 1920s) and Boston is home to many of these and to the additional services

they offer. Over the years, due to automation and outsourcing of low-end tasks to India, this sector in Boston hasn’t enjoyed the growth seen by financial activities in other U.S. metros.

BOSTON 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

177

0.8

1.41%

-0.41%

-1.21%

-1.06%

-1.06%

-1.24%

Trade, Transportation and Utilities

424

0.8

0.09%

1.28%

0.23%

0.45%

0.36%

0.26%

255

0.9

-1.07%

0.48%

0.32%

0.34%

0.48%

0.27%

Financial Activities

196

1.2

0.02%

0.64%

0.11%

0.27%

0.27%

0.76%

Government

313

0.7

-0.86%

0.10%

0.28%

-0.06%

0.39%

0.52%

Natural Resources, Mining and Construction

120

0.8

7.77%

3.93%

1.95%

-0.27%

1.36%

1.60%

Education and Health Services

581

1.3

0.97%

1.56%

2.08%

2.03%

0.75%

1.27%

Professional and Business Services

500

1.3

2.56%

2.49%

1.68%

1.55%

1.34%

1.48%

Information

79

1.5

-1.98%

0.54%

0.20%

-0.94%

0.01%

0.29%

Leisure and Hospitality

275

0.9

2.29%

1.77%

2.24%

1.80%

0.77%

1.29%

Other Services

105

1.0

1.94%

0.73%

1.44%

0.44%

-0.04%

0.41%

Total Employment

2,768

1.0

1.22%

1.28%

1.04%

0.70%

0.59%

0.79%

Retail Trade

Source: Moody's Analytics LQ = Location Quotient

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Page 20


Economy Boston Multi-Family YEAR OVER YEAR JOB GROWTH

Source: Moody’s Analytics

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

4,857,975

327,863,342

0.6%

0.7%

0.8%

0.8%

0.5%

0.7%

Households

1,893,920

126,048,680

0.7%

1.0%

0.8%

0.8%

0.9%

1.1%

$88,585

$60,656

3.7%

3.5%

2.3%

1.6%

3.1%

3.0%

2,654,516

161,638,901

-0.3%

1.0%

0.9%

0.5%

0.6%

0.8%

3.3%

4.1%

-0.3%

-0.3%

-0.1%

-0.1%

-

-

Median Household Income Labor Force Unemployment

Source: Moody’s Analytics

POPULATION GROWTH

LABOR FORCE GROWTH

INCOME GROWTH

Source: Moody's Analytics

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Page 21


Submarkets Boston Multi-Family BOSTON SUBMARKETS

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Submarkets Boston Multi-Family SUBMARKET INVENTORY Inventory

12 Month Deliveries

Under Construction

No.

Submarket

Bldgs

Units

% Market

Rank

Bldgs

Units

Percent

Rank

Bldgs

Units

Percent

Rank

1

495-North

49

3,649

1.8%

24

1

244

6.7%

11

0

0

0%

-

2

495-South

44

3,934

2.0%

22

3

841

21.4%

1

3

604

15.4%

13

3

95-North

116

9,597

4.9%

6

3

197

2.1%

13

1

199

2.1%

22

4

Allston/Brighton

232

8,068

4.1%

14

4

498

6.2%

6

3

240

3.0%

20

5

Back Bay/South End

313

8,472

4.3%

10

0

200

2.4%

12

5

1,133

13.4%

7

6

Brookline/Newton/Watert…

210

8,330

4.2%

12

1

88

1.1%

19

3

565

6.8%

14

7

Charlestown

14

764

0.4%

26

0

0

0%

-

3

348

45.5%

17

8

Downtown Boston

249

8,493

4.3%

9

(1)

0

0%

-

2

808

9.5%

10

9

Everett/Malden/Medford…

181

9,131

4.6%

7

4

464

5.1%

7

4

715

7.8%

11

10

Fenway/Mission Hill

173

8,960

4.5%

8

4

594

6.6%

3

3

390

4.4%

16

11

Greater Merrimack Valley

476

19,093

9.7%

1

3

353

1.8%

8

9

1,530

8.0%

3

12

Harvard/Central/Kendall…

288

8,085

4.1%

13

1

194

2.4%

14

6

1,145

14.2%

6

13

Metro West

152

11,068

5.6%

3

2

55

0.5%

22

5

1,315

11.9%

4

14

New Hampshire Beaches

61

3,167

1.6%

25

1

95

3.0%

18

0

0

0%

-

15

North Cambridge-Somerv…

121

5,576

2.8%

19

2

276

4.9%

9

8

939

16.8%

8

16

North Shore

284

8,428

4.3%

11

1

72

0.9%

20

3

211

2.5%

21

17

Quincy/Milton/Randolph

176

9,647

4.9%

5

4

558

5.8%

5

6

928

9.6%

9

18

Route 1 North

322

11,268

5.7%

2

5

773

6.9%

2

8

1,220

10.8%

5

19

Route 1 South

103

7,764

3.9%

16

1

124

1.6%

17

2

269

3.5%

19

20

South Boston/Seaport

62

4,139

2.1%

20

3

566

13.7%

4

12

2,158

52.1%

1

21

South Plymouth County

177

5,991

3.0%

18

3

166

2.8%

15

2

186

3.1%

23

22

South Shore

119

8,032

4.1%

15

3

259

3.2%

10

4

657

8.2%

12

23

South Suffolk County

414

10,567

5.4%

4

4

69

0.7%

21

18

1,876

17.8%

2

24

Strafford County

106

3,723

1.9%

23

1

144

3.9%

16

1

130

3.5%

24

25

Suburban Rockingham C…

95

3,977

2.0%

21

1

18

0.5%

24

2

544

13.7%

15

26

Waltham/Arlington/Belmont

216

7,328

3.7%

17

1

44

0.6%

23

2

328

4.5%

18

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

Page 23


Submarkets Boston Multi-Family SUBMARKET RENT Asking Rents

Effective Rents

No.

Submarket

Per Unit

Per SF

Rank

Yr. Growth

Per Unit

Per SF

Rank

Yr. Growth

Concession

Rank

1

495-North

$2,058

$2.10

17

3.9%

$2,025

$2.07

17

3.1%

1.6%

9

2

495-South

$1,742

$1.95

21

3.1%

$1,695

$1.90

22

0.8%

2.7%

3

3

95-North

$2,194

$2.26

15

3.1%

$2,181

$2.24

15

3.4%

0.6%

20

4

Allston/Brighton

$2,302

$3.02

8

2.0%

$2,289

$3.00

8

3.0%

0.5%

23

5

Back Bay/South End

$3,750

$4.41

1

6.7%

$3,709

$4.37

1

7.1%

1.1%

15

6

Brookline/Newton/Watert…

$2,689

$2.86

9

0.7%

$2,609

$2.77

9

-0.4%

3.0%

2

7

Charlestown

$3,130

$3.42

6

3.5%

$3,073

$3.36

6

2.9%

1.8%

7

8

Downtown Boston

$3,478

$3.99

3

3.8%

$3,405

$3.90

3

4.9%

2.1%

6

9

Everett/Malden/Medford…

$2,242

$2.49

10

4.3%

$2,189

$2.44

12

3.4%

2.4%

4

10

Fenway/Mission Hill

$2,948

$3.84

5

2.5%

$2,901

$3.77

5

2.1%

1.6%

10

11

Greater Merrimack Valley

$1,625

$1.81

23

3.3%

$1,616

$1.80

23

4.0%

0.6%

22

12

Harvard/Central/Kendall…

$3,104

$3.88

4

1.2%

$3,085

$3.85

4

1.9%

0.6%

19

13

Metro West

$1,847

$2.07

18

3.0%

$1,833

$2.06

18

3.1%

0.8%

16

14

New Hampshire Beaches

$1,429

$1.69

24

6.7%

$1,422

$1.68

24

6.4%

0.5%

24

15

North Cambridge-Somerv…

$2,643

$3.13

7

3.2%

$2,598

$3.08

7

4.5%

1.7%

8

16

North Shore

$1,872

$2.03

19

4.8%

$1,862

$2.02

19

5.6%

0.5%

25

17

Quincy/Milton/Randolph

$2,037

$2.32

14

1.6%

$2,007

$2.29

13

1.3%

1.5%

11

18

Route 1 North

$1,944

$2.33

13

2.2%

$1,900

$2.28

14

3.0%

2.3%

5

19

Route 1 South

$2,042

$2.16

16

4.3%

$2,014

$2.13

16

4.8%

1.3%

12

20

South Boston/Seaport

$3,584

$4.33

2

3.4%

$3,393

$4.10

2

0.4%

5.3%

1

21

South Plymouth County

$1,688

$1.93

22

6.1%

$1,678

$1.92

21

6.2%

0.6%

18

22

South Shore

$1,941

$2.03

20

2.0%

$1,930

$2.01

20

1.9%

0.6%

21

23

South Suffolk County

$2,029

$2.49

11

0.3%

$2,004

$2.46

11

1.1%

1.2%

13

24

Strafford County

$1,134

$1.36

26

2.9%

$1,121

$1.34

26

2.6%

1.1%

14

25

Suburban Rockingham C…

$1,320

$1.57

25

3.5%

$1,318

$1.57

25

3.7%

0.1%

26

26

Waltham/Arlington/Belmont

$2,394

$2.48

12

1.7%

$2,378

$2.46

10

2.0%

0.7%

17

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

Page 24


Submarkets Boston Multi-Family SUBMARKET VACANCY & ABSORPTION Vacancy

12 Month Absorption

No.

Submarket

Units

Percent

Rank

Units

% of Inv

Rank

Construct. Ratio

1

495-North

152

4.2%

9

320

8.8%

8

0.8

2

495-South

592

15.0%

26

586

14.9%

3

1.4

3

95-North

447

4.7%

14

256

2.7%

11

0.6

4

Allston/Brighton

480

5.9%

21

259

3.2%

10

1.9

5

Back Bay/South End

359

4.2%

10

128

1.5%

17

1.1

6

Brookline/Newton/Watert…

485

5.8%

19

123

1.5%

19

0.7

7

Charlestown

37

4.9%

15

(3)

-0.4%

26

-

8

Downtown Boston

318

3.7%

8

73

0.9%

23

-

9

Everett/Malden/Medford…

500

5.5%

16

709

7.8%

2

0.6

10

Fenway/Mission Hill

510

5.7%

18

354

4.0%

7

1.7

11

Greater Merrimack Valley

713

3.7%

7

467

2.4%

6

0.6

12

Harvard/Central/Kendall…

457

5.7%

17

211

2.6%

12

0.9

13

Metro West

393

3.5%

6

188

1.7%

13

0.3

14

New Hampshire Beaches

64

2.0%

2

108

3.4%

20

0.9

15

North Cambridge-Somerv…

401

7.2%

23

301

5.4%

9

0.8

16

North Shore

268

3.2%

5

99

1.2%

21

0.7

17

Quincy/Milton/Randolph

701

7.3%

24

497

5.2%

5

1.0

18

Route 1 North

728

6.5%

22

843

7.5%

1

0.9

19

Route 1 South

339

4.4%

11

73

0.9%

22

-

20

South Boston/Seaport

350

8.4%

25

560

13.5%

4

0.9

21

South Plymouth County

150

2.5%

3

173

2.9%

14

1.0

22

South Shore

468

5.8%

20

72

0.9%

24

3.4

23

South Suffolk County

491

4.6%

12

171

1.6%

15

0.2

24

Strafford County

113

3.0%

4

126

3.4%

18

1.1

25

Suburban Rockingham C…

75

1.9%

1

33

0.8%

25

-

26

Waltham/Arlington/Belmont

341

4.7%

13

139

1.9%

16

-

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

Page 25


Appendix Boston Multi-Family OVERALL SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2022

231,361

5,960

2.6%

5,700

2.5%

1.0

2021

225,401

5,883

2.7%

5,567

2.5%

1.1

2020

219,518

7,189

3.4%

6,797

3.1%

1.1

2019

212,329

9,446

4.7%

7,224

3.4%

1.3

2018

202,883

8,085

4.2%

7,924

3.9%

1.0

YTD

197,251

2,453

1.3%

3,550

1.8%

0.7

2017

194,798

7,199

3.8%

5,892

3.0%

1.2

2016

187,599

6,782

3.8%

6,925

3.7%

1.0

2015

180,817

7,996

4.6%

6,103

3.4%

1.3

2014

172,821

5,579

3.3%

6,246

3.6%

0.9

2013

167,242

4,117

2.5%

3,336

2.0%

1.2

2012

163,125

2,013

1.2%

1,756

1.1%

1.1

2011

161,112

60

0%

(106)

-0.1%

-

2010

161,052

734

0.5%

1,706

1.1%

0.4

2009

160,318

3,901

2.5%

3,965

2.5%

1.0

2008

156,417

2,655

1.7%

2,631

1.7%

1.0

2007

153,762

5,219

3.5%

4,711

3.1%

1.1

2006

148,543

5,662

4.0%

5,413

3.6%

1.0

4 & 5 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2022

99,370

6,018

6.4%

5,688

5.7%

1.1

2021

93,352

5,940

6.8%

5,759

6.2%

1.0

2020

87,412

6,686

8.3%

6,733

7.7%

1.0

2019

80,726

8,206

11.3%

6,687

8.3%

1.2

2018

72,520

6,371

9.6%

6,038

8.3%

1.1

YTD

68,521

2,372

3.6%

2,808

4.1%

0.8

2017

66,149

6,531

11.0%

5,346

8.1%

1.2

2016

59,618

6,265

11.7%

6,437

10.8%

1.0

2015

53,353

7,654

16.7%

5,283

9.9%

1.4

2014

45,699

5,481

13.6%

5,722

12.5%

1.0

2013

40,218

3,846

10.6%

2,851

7.1%

1.3

2012

36,372

1,818

5.3%

1,420

3.9%

1.3

2011

34,554

53

0.2%

29

0.1%

1.8

2010

34,501

627

1.9%

941

2.7%

0.7

2009

33,874

3,042

9.9%

2,955

8.7%

1.0

2008

30,832

2,354

8.3%

2,669

8.7%

0.9

2007

28,478

4,943

21.0%

4,526

15.9%

1.1

2006

23,535

5,295

29.0%

5,006

21.3%

1.1

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

Page 26


Appendix Boston Multi-Family 3 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2022

75,479

0

0%

42

0.1%

0

2021

75,479

0

0%

(44)

-0.1%

0

2020

75,479

563

0.8%

410

0.5%

1.4

2019

74,916

1,289

1.8%

842

1.1%

1.5

2018

73,627

1,691

2.4%

1,803

2.4%

0.9

YTD

72,017

81

0.1%

590

0.8%

0.1

2017

71,936

668

0.9%

393

0.5%

1.7

2016

71,268

517

0.7%

431

0.6%

1.2

2015

70,751

342

0.5%

590

0.8%

0.6

2014

70,409

203

0.3%

452

0.6%

0.4

2013

70,206

276

0.4%

252

0.4%

1.1

2012

69,930

162

0.2%

265

0.4%

0.6

2011

69,768

22

0%

(68)

-0.1%

-

2010

69,746

113

0.2%

532

0.8%

0.2

2009

69,633

875

1.3%

918

1.3%

1.0

2008

68,758

252

0.4%

38

0.1%

6.6

2007

68,506

249

0.4%

297

0.4%

0.8

2006

68,257

367

0.5%

306

0.4%

1.2

1 & 2 STAR SUPPLY & DEMAND Inventory

Absorption

Year

Units

Growth

% Growth

Units

% of Inv

Construction Ratio

2022

56,512

(58)

-0.1%

(30)

-0.1%

1.9

2021

56,570

(57)

-0.1%

(148)

-0.3%

0.4

2020

56,627

(60)

-0.1%

(346)

-0.6%

0.2

2019

56,687

(49)

-0.1%

(305)

-0.5%

0.2

2018

56,736

23

0%

83

0.1%

0.3

YTD

56,713

0

0%

152

0.3%

0

2017

56,713

0

0%

153

0.3%

0

2016

56,713

0

0%

57

0.1%

0

2015

56,713

0

0%

230

0.4%

0

2014

56,713

(105)

-0.2%

72

0.1%

-

2013

56,818

(5)

0%

233

0.4%

0

2012

56,823

33

0.1%

71

0.1%

0.5

2011

56,790

(15)

0%

(67)

-0.1%

0.2

2010

56,805

(6)

0%

233

0.4%

0

2009

56,811

(16)

0%

92

0.2%

-

2008

56,827

49

0.1%

(76)

-0.1%

-

2007

56,778

27

0%

(112)

-0.2%

-

2006

56,751

0

0%

101

0.2%

0

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

Page 27


Appendix Boston 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

14,357

6.3%

(0.1)

$2,371

-

1.3%

0.1

$2,339

-

2021

14,098

6.4%

0

$2,341

-

1.2%

0.4

$2,309

-

2020

13,780

6.4%

0

$2,312

-

0.8%

(0.7)

$2,281

-

2019

13,388

6.5%

0.9

$2,293

-

1.6%

(3.9)

$2,262

-

2018

11,166

5.5%

(0.2)

$2,258

-

5.4%

3.0

$2,227

-

YTD

9,932

5.0%

(0.6)

$2,229

$2.53

4.0%

1.6

$2,197

$2.50

2017

11,027

5.7%

0.5

$2,142

$2.43

2.4%

0.6

$2,102

$2.39

2016

9,708

5.2%

(0.3)

$2,092

$2.38

1.8%

(2.9)

$2,057

$2.34

2015

9,844

5.4%

0.8

$2,055

$2.33

4.7%

1.4

$2,036

$2.31

2014

7,951

4.6%

(0.6)

$1,964

$2.23

3.3%

0.1

$1,950

$2.21

2013

8,615

5.2%

0.4

$1,902

$2.16

3.2%

0.9

$1,891

$2.15

2012

7,768

4.8%

0.1

$1,844

$2.09

2.3%

0.5

$1,835

$2.08

2011

7,569

4.7%

0.1

$1,803

$2.05

1.7%

(0.5)

$1,792

$2.03

2010

7,406

4.6%

(0.6)

$1,772

$2.01

2.3%

6.3

$1,761

$2.00

2009

8,375

5.2%

(0.2)

$1,732

$1.97

-4.0%

(5.9)

$1,720

$1.95

2008

8,437

5.4%

(0.1)

$1,805

$2.05

1.8%

(1.1)

$1,793

$2.03

2007

8,409

5.5%

0.2

$1,773

$2.01

2.9%

1.4

$1,760

$2.00

2006

7,901

5.3%

0

$1,723

$1.95

1.5%

-

$1,709

$1.94

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

8,744

8.9%

(0.2)

$2,870

-

1.1%

0.1

$2,813

-

2021

8,415

9.1%

(0.4)

$2,837

-

1.1%

0.5

$2,781

-

2020

8,232

9.5%

(0.8)

$2,808

-

0.6%

(0.6)

$2,751

-

2019

8,279

10.3%

1.0

$2,791

-

1.2%

(5.0)

$2,735

-

2018

6,761

9.3%

(0.4)

$2,757

-

6.2%

4.2

$2,701

-

YTD

5,994

8.7%

(1.0)

$2,724

$2.87

5.0%

3.0

$2,669

$2.81

2017

6,428

9.7%

0.9

$2,596

$2.74

2.0%

1.7

$2,529

$2.67

2016

5,235

8.8%

(1.3)

$2,545

$2.68

0.3%

(3.7)

$2,489

$2.62

2015

5,400

10.1%

3.5

$2,536

$2.67

4.1%

1.2

$2,500

$2.64

2014

3,028

6.6%

(1.5)

$2,437

$2.57

2.9%

(0.3)

$2,412

$2.54

2013

3,267

8.1%

1.9

$2,369

$2.50

3.2%

1.0

$2,353

$2.48

2012

2,267

6.2%

0.8

$2,296

$2.42

2.2%

0.4

$2,284

$2.41

2011

1,867

5.4%

0.1

$2,245

$2.37

1.8%

(0.2)

$2,233

$2.35

2010

1,844

5.3%

(1.0)

$2,205

$2.32

2.0%

6.3

$2,191

$2.31

2009

2,158

6.4%

(0.3)

$2,161

$2.28

-4.3%

(6.2)

$2,144

$2.26

2008

2,072

6.7%

(1.7)

$2,259

$2.38

1.8%

(1.0)

$2,241

$2.36

2007

2,388

8.4%

0

$2,218

$2.34

2.8%

1.3

$2,199

$2.32

2006

1,971

8.4%

(0.8)

$2,157

$2.27

1.5%

-

$2,135

$2.25

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

Page 28


Appendix Boston 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

3,411

4.5%

(0.1)

$2,154

-

1.5%

0

$2,136

-

2021

3,453

4.6%

0.1

$2,122

-

1.4%

0.3

$2,106

-

2020

3,409

4.5%

0.2

$2,092

-

1.1%

(0.9)

$2,076

-

2019

3,256

4.3%

0.5

$2,070

-

2.0%

(3.2)

$2,053

-

2018

2,809

3.8%

(0.2)

$2,030

-

5.1%

2.1

$2,013

-

YTD

2,411

3.3%

(0.7)

$1,998

$2.32

3.5%

0.4

$1,980

$2.30

2017

2,920

4.1%

0.4

$1,930

$2.24

3.1%

0.1

$1,904

$2.21

2016

2,643

3.7%

0.1

$1,872

$2.17

3.0%

(2.4)

$1,851

$2.15

2015

2,557

3.6%

(0.4)

$1,818

$2.11

5.4%

1.4

$1,809

$2.10

2014

2,806

4.0%

(0.4)

$1,725

$2.00

4.0%

0.7

$1,719

$1.99

2013

3,055

4.4%

0

$1,658

$1.92

3.3%

0.6

$1,649

$1.91

2012

3,013

4.3%

(0.2)

$1,604

$1.86

2.7%

1.1

$1,599

$1.85

2011

3,133

4.5%

0.1

$1,561

$1.81

1.7%

(0.8)

$1,552

$1.80

2010

3,044

4.4%

(0.6)

$1,536

$1.78

2.5%

6.3

$1,527

$1.77

2009

3,461

5.0%

(0.1)

$1,498

$1.74

-3.8%

(5.7)

$1,489

$1.72

2008

3,503

5.1%

0.3

$1,557

$1.80

1.9%

(1.2)

$1,548

$1.79

2007

3,284

4.8%

(0.1)

$1,528

$1.77

3.1%

1.4

$1,519

$1.76

2006

3,332

4.9%

0.1

$1,482

$1.72

1.7%

-

$1,473

$1.71

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

2,202

4.2%

(0.1)

$1,718

-

1.4%

0

$1,710

-

2021

2,230

4.3%

0.2

$1,693

-

1.4%

0.4

$1,686

-

2020

2,138

4.1%

0.6

$1,670

-

1.0%

(0.7)

$1,663

-

2019

1,852

3.6%

0.7

$1,654

-

1.7%

(1.7)

$1,646

-

2018

1,596

2.8%

(0.1)

$1,626

-

3.5%

1.1

$1,619

-

YTD

1,527

2.7%

(0.3)

$1,602

$2.07

2.0%

(0.3)

$1,595

$2.06

2017

1,679

3.0%

(0.3)

$1,572

$2.03

2.3%

(1.9)

$1,560

$2.01

2016

1,831

3.2%

(0.1)

$1,536

$1.98

4.2%

(0.9)

$1,523

$1.97

2015

1,887

3.3%

(0.4)

$1,475

$1.90

5.0%

2.2

$1,469

$1.89

2014

2,118

3.7%

(0.3)

$1,404

$1.81

2.8%

0.3

$1,397

$1.80

2013

2,293

4.0%

(0.3)

$1,366

$1.76

2.5%

1.3

$1,360

$1.75

2012

2,488

4.4%

(0.1)

$1,332

$1.71

1.3%

(0.3)

$1,325

$1.70

2011

2,570

4.5%

0.1

$1,315

$1.69

1.6%

(1.2)

$1,308

$1.68

2010

2,518

4.4%

(0.4)

$1,295

$1.66

2.7%

6.3

$1,288

$1.66

2009

2,756

4.9%

(0.2)

$1,260

$1.62

-3.6%

(5.2)

$1,253

$1.61

2008

2,862

5.0%

0.2

$1,308

$1.68

1.6%

(1.1)

$1,300

$1.67

2007

2,737

4.8%

0.2

$1,287

$1.65

2.7%

1.3

$1,280

$1.64

2006

2,598

4.6%

(0.2)

$1,254

$1.61

1.4%

-

$1,247

$1.60

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

Page 29


Appendix Boston 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

-

-

-

-

-

-

$316,713

200

Cap Rate

5.4%

2021

-

-

-

-

-

-

$312,660

197

5.4%

2020

-

-

-

-

-

-

$310,852

196

5.4%

2019

-

-

-

-

-

-

$318,929

201

5.2%

2018

-

-

-

-

-

-

$328,163

207

5.1%

YTD

122

$1,031 M

2.4%

$8,588,440

$218,443

6.1%

$327,738

207

5.1%

2017

229

$3,117 M

4.7%

$15,058,875

$354,992

5.7%

$324,082

204

5.1%

2016

291

$2,732 M

5.8%

$9,899,538

$262,618

6.2%

$313,495

198

5.1%

2015

288

$3,162 M

6.9%

$11,251,044

$262,608

6.9%

$296,328

187

5.1%

2014

257

$1,323 M

3.9%

$5,376,809

$207,808

7.4%

$264,465

167

5.3%

2013

221

$1,223 M

5.4%

$5,938,651

$207,984

6.6%

$236,755

149

5.6%

2012

225

$1,292 M

8.6%

$7,023,067

$175,338

6.1%

$229,678

145

5.6%

2011

146

$1,061 M

4.2%

$8,287,597

$188,154

6.1%

$212,571

134

5.7%

2010

91

$634.0 M

2.1%

$8,025,683

$210,152

7.3%

$192,527

121

6.0%

2009

97

$375.9 M

1.7%

$4,528,549

$185,706

7.2%

$146,020

92

6.7%

2008

118

$430.6 M

2.1%

$4,062,721

$141,243

8.1%

$158,632

100

6.5%

2007

217

$2,296 M

8.4%

$12,149,204

$217,567

7.4%

$202,326

128

5.8%

(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

-

-

-

-

-

-

$400,460

193

4.7%

2021

-

-

-

-

-

-

$395,897

190

4.7%

2020

-

-

-

-

-

-

$394,296

190

4.7%

2019

-

-

-

-

-

-

$406,389

196

4.6%

2018

-

-

-

-

-

-

$420,268

202

4.4%

YTD

8

$554.8 M

2.6%

$69,348,750

$306,683

4.8%

$421,258

203

4.4%

2017

23

$2,010 M

6.5%

$87,385,366

$467,954

4.6%

$417,276

201

4.4%

2016

23

$1,245 M

6.8%

$59,269,762

$332,709

5.0%

$409,888

197

4.3%

2015

28

$1,825 M

10.2%

$67,579,612

$356,655

4.8%

$389,068

187

4.4%

2014

11

$540.6 M

4.6%

$54,065,000

$292,243

5.0%

$345,532

166

4.6%

2013

22

$578.9 M

12.8%

$48,242,305

$253,130

4.9%

$312,218

150

4.8%

2012

33

$577.1 M

23.5%

$48,090,883

$226,577

4.3%

$303,992

146

4.8%

2011

10

$561.9 M

8.0%

$70,240,625

$288,463

5.1%

$278,945

134

4.9%

2010

7

$380.6 M

4.5%

$54,367,857

$243,179

5.5%

$253,317

122

5.1%

2009

2

$27.2 M

0.6%

$27,250,000

$159,357

-

$192,409

93

5.7%

2008

5

$174.2 M

3.2%

$34,836,154

$174,880

-

$207,856

100

5.6%

2007

14

$999.4 M

13.1%

$76,878,846

$285,305

5.2%

$265,726

128

5.0%

(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 30


Appendix Boston 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

-

-

-

-

-

-

$282,075

204

5.5%

2021

-

-

-

-

-

-

$278,117

202

5.5%

2020

-

-

-

-

-

-

$276,071

200

5.5%

2019

-

-

-

-

-

-

$282,289

205

5.4%

2018

-

-

-

-

-

-

$289,206

210

5.2%

YTD

39

$323.7 M

2.9%

$8,299,249

$153,471

5.5%

$289,351

210

5.2%

2017

63

$775.1 M

4.7%

$13,840,350

$247,623

5.7%

$286,438

208

5.2%

2016

72

$1,103 M

6.7%

$16,223,474

$234,374

5.6%

$273,673

198

5.2%

2015

55

$1,038 M

7.1%

$19,575,541

$206,017

6.2%

$258,308

187

5.2%

2014

70

$476.7 M

3.2%

$7,222,495

$216,872

6.3%

$232,470

168

5.4%

2013

62

$444.3 M

3.5%

$7,404,192

$203,412

7.0%

$205,302

149

5.8%

2012

41

$331.8 M

3.5%

$10,053,452

$178,464

5.8%

$199,000

144

5.7%

2011

32

$329.4 M

3.5%

$11,763,237

$140,337

5.7%

$185,740

135

5.8%

2010

11

$153.2 M

1.1%

$13,930,577

$209,054

6.7%

$168,073

122

6.1%

2009

13

$243.8 M

2.1%

$24,379,963

$231,529

7.8%

$127,391

92

6.8%

2008

22

$114.0 M

1.4%

$5,701,646

$126,003

6.5%

$137,990

100

6.7%

2007

49

$1,047 M

10.6%

$24,354,106

$195,051

6.2%

$176,214

128

5.9%

(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

-

-

-

-

-

-

$246,038

206

6.1%

2021

-

-

-

-

-

-

$242,570

203

6.1%

2020

-

-

-

-

-

-

$240,788

202

6.1%

2019

-

-

-

-

-

-

$245,739

206

6.0%

2018

-

-

-

-

-

-

$251,576

211

5.8%

YTD

75

$152.2 M

1.4%

$2,084,275

$190,190

6.5%

$251,995

211

5.8%

2017

143

$332.3 M

2.7%

$2,595,814

$245,033

6.1%

$247,820

208

5.8%

2016

196

$384.4 M

3.6%

$2,055,675

$196,529

6.9%

$235,752

198

5.9%

2015

205

$299.4 M

3.4%

$1,489,503

$158,659

7.7%

$221,156

185

5.9%

2014

176

$305.4 M

4.2%

$1,796,238

$131,791

8.0%

$197,160

165

6.2%

2013

137

$200.2 M

2.6%

$1,494,052

$141,887

7.5%

$176,251

148

6.5%

2012

151

$383.4 M

5.5%

$2,758,200

$129,349

7.3%

$169,714

142

6.5%

2011

104

$169.5 M

2.6%

$1,842,574

$126,222

7.1%

$158,282

133

6.7%

2010

73

$100.2 M

1.8%

$1,642,911

$139,385

8.0%

$142,649

120

7.0%

2009

82

$104.8 M

1.8%

$1,455,832

$131,025

7.0%

$107,919

90

7.8%

2008

91

$142.4 M

2.2%

$1,758,454

$124,072

8.6%

$119,328

100

7.6%

2007

154

$249.5 M

3.4%

$1,876,301

$148,364

8.3%

$151,090

127

6.8%

(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.

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

Page 31


Appendix Boston Multi-Family DELIVERIES & UNDER CONSTRUCTION Inventory

Deliveries

Net Deliveries

Under Construction

Year

Bldgs

Units

Vacancy

Bldgs

Units

Bldgs

Units

Bldgs

Units

2022

-

231,363

6.2%

-

6,018

-

5,960

-

-

2021

-

225,403

6.3%

-

5,940

-

5,884

-

-

2020

-

219,519

6.3%

-

7,250

-

7,189

-

-

2019

-

212,330

6.3%

-

9,495

-

9,447

-

-

2018

-

202,883

5.5%

-

8,147

-

8,087

-

-

YTD

4,753

197,251

5.0%

20

2,719

18

2,455

115

18,438

2017

4,735

194,798

5.7%

51

7,309

48

7,210

116

16,488

2016

4,687

187,599

5.2%

42

6,789

41

6,784

88

13,352

2015

4,646

180,817

5.4%

49

7,997

49

7,997

75

12,250

2014

4,597

172,821

4.6%

40

5,684

37

5,579

68

11,429

2013

4,560

167,242

5.2%

32

4,258

31

4,186

56

9,884

2012

4,529

163,125

4.8%

15

1,962

14

1,951

43

6,580

2011

4,515

161,112

4.7%

5

205

3

60

26

4,162

2010

4,512

161,052

4.6%

10

813

8

734

8

1,013

2009

4,504

160,318

5.2%

22

3,917

19

3,901

12

826

2008

4,485

156,417

5.4%

16

2,660

16

2,660

25

4,381

2007

4,469

153,762

5.5%

29

5,224

28

5,219

25

5,366

2006

4,441

148,543

5.3%

24

5,662

24

5,662

35

6,900

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

Page 32

Eastern MA & Southern NH Multi Family Report  

The supply pipeline has been tremendously full in Boston, with inventory growth more akin to that of a metro like Austin or Nashville than a...

Eastern MA & Southern NH Multi Family Report  

The supply pipeline has been tremendously full in Boston, with inventory growth more akin to that of a metro like Austin or Nashville than a...

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