Real Capital Analytic's 2012 Q3 Multifamily Trends Report

1. ®
third quarter 2012 Published oct ober 2012
Apartment Quarter in Review All Apartment
Quarterly Volume & Pricing Trends
• With $25.3b of transaction volume, the apartment
cap rate
sector recorded the highest quarterly volume since
Q4’07 when the Archstone privatization closed. 7.5%
Archstone was also responsible for this period’s
high volume as Lehman completed the buyout of
its partners in the deal. Adding $9.4b of volume
6.5%
to Q3 results, the transaction is significant in that 6.2%
Lehman was able to fend off rival bidders such as
EQR and symbolizes the dramatic rebound in
apartment prices that enabled them to do so.
5.5%
• Exempting this entity-level transaction, sales of Moody’s/RCA CPPI
significant apartment properties totaled $16.5b in 200
Q3, slightly below Q2 results and just above year
ago levels. For the year through Q3, transaction
volume totals $47.0b, up 21% yoy (up 44% inclu-
150
sive of the Archstone transaction). Price apprecia-
tion also slowed and a shift in activity to smaller,
higher yielding markets caused cap rate averages to
increase. 100
'06 '07 '08 '09 '10 '11 '12
• Trends are more dynamic between the garden and
transaction volume
mid/high-rise sectors. Sales of garden properties billions
totaled $10.9 in Q3, up 18% yoy compared to a 9% $40
Entity
yoy decline recorded for mid/high-rise properties.
$30 Portfolio
Year-to-date, the trend is reinforced with garden
Individual
sales up 24% and mid/high-rise volume up only $20 $25.3
10%, (all exclusive of the Archstone deal).
$10
• Rapid price appreciation which had been sustained
throughout 2010 and 2011 has slowed dramati- $0
'06 '07 '08 '09 '10 '11 '12
year-over-year change
Quarter in Review
• Quarter in Review�����������1 • Market Table: Distress �����6 64%
100%
• Market Table: Q3’12 • Top Transactions ��������������7
Summary����������������������������3 • Top Brokers��������������������������8
• Lender Composition����������4 • Selected Transactions����������9
• Distress Update �����������������5 -100%
• Notes Methodology�����11
'06 '07 '08 '09 '10 '11 '12
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
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2. ®
third quarter 2012
Quarterly Volume Pricing Trends
cally in 2012. Many REIT and institutional buyers
are opting to develop rather than buy at premium Garden Mid/high-rise
prices. Other investors are being drawn to the rela- cap rate
tively higher cap rates available in secondary and 7.5%
tertiary markets. Apartment sales in the six major 7.0%
metros fell 23% yoy in Q3 while secondary market 6.5%
activity rose 21% and tertiary sales surged 54%. The 6.0%
trend is apparent across both the garden and mid/ 5.5% Major Metro Avg. Cap
high-rise sectors. Avg. Cap Rate
5.0%
'08 '09 '10 '11 '12 '08 '09 '10 '11 '12
• With investors opting to build rather than buy price per unit in thousands
prime properties combined with the significant $300
shift in sales to higher-yielding markets, cap rate $250
averages took a turn upward in Q3, rising roughly $200
20 bps to 6.3%. While there are plenty of deals trans-
$150
acted at 4.0% or lower yields, far more transactions
$100
are happening in secondary and tertiary markets
$50
where cap rates have average 70 to 140 bps higher '08 '09 '10 '11 '12 '08 '09 '10 '11 '12
than in major metros. Thus, the uptick in average transaction volume
cap rates does not indicate a re-pricing throughout $20 billions
the apartment sector. In fact, due to recent declines
$15
in mortgage interest rates and a more competitive
environment among lenders (see page 4), cap rates $10
remain under downward pressure. $5
• Student housing properties remain in high demand $0
'08 '09 '10 '11 '12 '08 '09 '10 '11 '12
by investors and volume for that niche topped $1.8b
year-over-year change
through Q3, up 23% yoy. Senior housing transac- 300%
tions, not included in the apartment sector totals,
100%
are off significantly this year chiefly due to few large
entity or portfolio deals. Sales of individual senior -100%
housing properties were actually up a robust 43% in '08 '09 '10 '11 '12 '08 '09 '10 '11 '12
Q3 and are up 23% year-to-date.
Summary Table
volume YTD Through Q3'12 vs YOY average pricing YTD Through Q3'12 vs YOY
$ bil yoy # props yoy $/unit % chng cap bps
Apartment Total $55.8 44% 3,525 37% $104,418 4% 6.2% -25
Garden $35.0 44% 2,466 33% $82,121 12% 6.3% -29
Mid/High-rise $20.8 43% 1,059 48% $190,311 -13% 5.8% -5
Major Metros $25.1 38% 1,493 39% $195,323 2% 5.6% -20
Secondary Mkts $24.5 49% 1,455 33% $80,623 16% 6.4% -21
Tertiary Mkts $5.9 45% 484 22% $68,398 13% 7.1% -46
Student Housing $1.8 26% 92 6% $113,531 -3% 7.0% -40
Senior Housing* $5.2 -79% 423 -73% $107,140 -3% 8.7% -86
* not included in apartment volume or pricing statistics
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
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third quarter 2012
Market table: Q3’12 Apartment Summary
Volume Pricing
Transactions Reported YOY YOY PPU Cap Rate
Closed Through Q3’12 Vol ($M) # Props Low High Low High
Change Change Avg Avg
Baltimore $726.7 74% 26 100% $40,313 $127,535 $253,725 5.4% 6.9% 9.0%
Mid- DC 1,203.9 239% 35 169% 51,790 284,059 453,774
DC MD burbs 1,214.6 19% 24 -17% 62,366 142,899 418,650 4.6% 6.3% 7.2%
Atlantic DC VA burbs 2,478.6 22% 38 12% 98,780 199,936 395,928 5.7% 6.4% 7.0%
Philadelphia 304.1 -26% 22 -27% 15,741 89,397 925,625 4.2% 5.9% 7.0%
Pittsburgh 13.3 -72% 2 -60% 48,408 53,414 61,957 6.7% 7.0% 7.3%
Richmond/Norfolk 313.8 -32% 18 -25% 31,776 104,560 154,167 5.2% 6.1% 7.0%
Tertiary Mid-Atlantic 437.6 38% 25 -7% 38,580 82,410 140,899 6.0% 7.5% 9.0%
Total $6,692.6 32% 190 9% $15,741 $137,121 $925,625 4.0% 6.5% 9.0%
Chicago 1,005.8 -21% 59 -2% 25,417 148,858 497,738 5.8% 7.5% 8.5%
Midwest Cincinnati 146.2 -3% 11 -35% 33,333 56,619 162,295
Cleveland 106.6 65% 12 71% 21,739 41,895 122,321 7.8% 8.6% 10.1%
Columbus 136.0 9% 16 78% 8,125 35,126 152,174
Detroit 300.2 126% 23 53% 9,390 57,300 122,137
Indianapolis 110.6 -25% 10 -38% 32,474 51,842 70,330 6.7% 8.1% 9.5%
Kansas City 237.5 44% 13 -19% 11,333 61,204 114,583 5.8% 7.1% 9.0%
Minneapolis 273.2 37% 23 77% 22,404 93,843 358,333
St Louis 120.7 45% 13 160% 24,630 54,014 86,705 4.2% 6.5% 9.0%
Tertiary Midwest 945.3 162% 82 39% 15,152 60,704 153,125 4.7% 7.3% 8.7%
Total $3,382.1 25% 262 21% $8,125 $73,236 $497,738 4.2% 7.5% 10.1%
Boston 1,516.6 57% 76 130% 57,157 201,740 800,000 4.5% 5.5% 6.0%
Northeast Hartford 52.6 190% 19 280% 23,435 44,570 122,500
Long Island 228.6 277% 7 0% 83,784 230,190 261,111
Manhattan 5,765.8 49% 299 99% 35,762 329,803 2,666,667 3.0% 5.1% 6.9%
No NJ 582.8 -47% 59 -3% 33,333 111,764 325,153 5.0% 6.0% 8.0%
NYC Boroughs 1,394.6 22% 215 39% 49,123 134,893 903,226 4.5% 7.0% 9.9%
Stamford 303.3 237% 10 100% 47,656 164,525 1,058,824 4.0% 5.9% 7.8%
Westchester 90.4 16% 9 0% 64,286 113,053 150,000 7.2% 7.2% 7.3%
Tertiary Northeast 156.7 2% 28 75% 11,416 55,022 180,198 6.2% 7.4% 9.5%
Total $10,091.5 35% 722 64% $11,416 $205,268 $2,666,667 3.0% 6.1% 9.9%
Atlanta 2,361.3 51% 132 25% 5,627 66,171 276,483 4.8% 7.6% 9.9%
Southeast Broward 667.7 88% 30 88% 22,159 97,338 454,688 4.5% 6.4% 7.5%
Charlotte 486.9 8% 23 15% 14,527 89,838 208,333 5.0% 6.0% 7.8%
Jacksonville 372.8 32% 26 30% 17,630 55,804 150,195
Memphis 271.6 30% 20 0% 6,641 49,083 102,586 6.3% 7.8% 9.2%
Miami 310.9 86% 40 60% 25,000 92,936 436,042 4.1% 5.8% 7.3%
Nashville 503.9 82% 30 150% 12,017 67,874 170,455 7.0% 7.5% 7.9%
Orlando 701.3 54% 35 21% 15,076 71,726 245,833 5.8% 6.5% 7.5%
Palm Beach 445.5 140% 19 46% 18,750 89,067 180,282
Raleigh/Durham 941.3 58% 41 37% 28,175 97,515 346,721 4.6% 6.0% 7.8%
Tampa 790.8 0% 50 4% 14,946 69,411 156,896 3.7% 6.7% 9.5%
Tertiary Southeast 2,451.8 12% 187 1% 9,368 59,989 210,301 5.0% 7.1% 10.8%
Total $10,305.8 37% 633 21% $5,627 $69,754 $454,688 3.7% 6.7% 10.8%
Austin 1,575.4 287% 64 121% 27,721 108,485 278,075 4.7% 6.1% 7.1%
Southwest Dallas 2,119.1 16% 148 22% 11,407 54,991 269,266 6.0% 7.3% 9.1%
Denver 1,569.2 88% 71 27% 30,303 100,951 251,563 5.3% 6.3% 7.6%
Houston 1,642.7 17% 111 17% 11,656 76,361 159,033 5.4% 6.0% 6.6%
Phoenix 2,076.9 57% 109 14% 16,185 74,197 366,667 3.6% 6.3% 8.6%
San Antonio 481.4 16% 37 95% 44,401 75,889 115,702 4.4% 5.7% 7.0%
Tertiary Southwest 1,268.6 101% 104 68% 16,129 74,398 143,049 4.7% 7.4% 10.3%
Total $10,733.4 57% 644 35% $11,407 $79,470 $366,667 3.6% 6.7% 10.3%
East Bay 786.7 -8% 50 22% 40,476 154,224 277,083 4.8% 5.8% 7.2%
West Inland Empire 572.8 2% 32 -6% 28,527 105,540 243,243 5.0% 5.8% 6.6%
Las Vegas 328.7 -1% 29 32% 12,153 42,207 96,739 6.5% 7.7% 9.3%
Los Angeles 4,286.0 60% 350 48% 31,600 169,469 802,857 3.0% 5.4% 9.5%
Orange Co 1,024.0 170% 43 72% 105,269 242,745 487,106 4.5% 5.5% 6.6%
Portland 489.3 10% 32 39% 38,362 117,123 240,718 4.5% 6.5% 8.9%
Sacramento 424.0 100% 28 100% 24,600 89,792 310,714 5.3% 6.1% 8.5%
Salt Lake City 52.6 5% 7 17%
San Diego 1,147.4 171% 71 78% 65,789 139,795 466,667 4.1% 5.8% 7.7%
San Francisco 1,236.7 10% 122 -22% 86,111 217,957 664,000 3.3% 5.2% 7.1%
San Jose 1,109.7 227% 47 213% 113,571 251,029 553,991 3.7% 5.1% 9.0%
Seattle 1,725.2 63% 93 58% 32,461 151,307 417,550 4.0% 5.2% 6.5%
Tertiary West 1,046.6 92% 77 35% 23,810 133,952 540,323 3.3% 6.0% 9.3%
Total $14,229.5 58% 981 34% $12,153 $146,413 $802,857 3.0% 5.6% 9.5%
US Other 350.3 50% 93 675%
Total US $55,785.1 44% 3,525 37% $5,627 $104,418 $2,666,667 3.0% 6.2% 10.8%
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
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third quarter 2012
Apartment Lender Composition
• With interest rates on long term, fixed rate deals now
Apartment Lender Composition H1’12
averaging below 4.0% and better rates to be had for
CMBS Financial
shorter term and floaters, positive leverage is achievable
Gov't Agency Insurance
for all but the lowest cap rate deals. The agencies continue
Int'l Bank Nat'l Bank
to dominate originations, but their market share is slowly Reg'l/Local Bank Pvt/Other
declining as other lenders ramp up activity.
All Apartment Past 5 Years
• The government agencies accounted for 64% of all mul-
H1'12 64% 8% 8% 10%
tifamily mortgage originations in the first half of 2012,
down from 68% in 2011. The agencies remain very aggres-
2011 68% 8% 10%
sive and are increasingly packaging their multifamily
loans into securitizations. To date this year, Freddie and 2010 76% 4% 9%
Fannie have securitized $23b of multi-family loans, well
ahead of the $17b of issuance for all of 2011. Freddie has 2009 87% 6%
been most active and recently completed its 14th issue
this year. 2008 8% 61% 10% 13%
• There are few areas where the agencies do not have a
By Apartment Subtypes
majority market share such as for mid/high-rise prop-
erties, where insurance companies and banks are more Garden 76% 7% 6% 5%
active. Agen-
Commercial Mortgage Rates cies are also less Mid/high-
8% 48% 13% 8% 17%
Commercial rise
Multifamily dominant in the
Student
7.0% Northeast, where Hsg
13% 70% 5%
6.5%
regional and local
6.0%
5.5%
banks have a 27% By Major, Secondary and Tertiary Markets
5.0% share of multi-
Major
4.5% family lending. Metro
5% 59% 8% 9% 16%
4.0%
3.5% • Private label Secondary 71% 11%
2009 2010 2011 2012
CMBS has not
Fixed rate loans with 7-10 year terms
Tixed rate loans with 7-10 year terms been very impact- Tertiary 80%
ful on the multifamily lending landscape, so far account-
3-month average
ing for just 3% of originations this year and last. The
By Region
CMBS conduits have a greater penetration in lending
for student housing properties and also in the Midwest Northeast 9% 47% 7% 7% 27%
region.
Mid-Atlantic 81% 6%
• Many banks have returned to commercial property lend-
ing again and their share of multifamily originations Southeast 76% 9%
increased to 19% in the first half of 2012 compared to 16%
in 2011. Much of that activity has been in the major met- Midwest 8% 70% 6%
ros as well as a concentration in the Northeast and West.
Banks are also active in construction financing which is
Southwest 75% 9% 5%
not included in this analysis.
West 67% 12% 11% 6%
• In tertiary markets, the agencies remain the primary
lender and account for 80% of all apartment property
loans.
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
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5. ®
third quarter 2012
Distress update
• Defaults and transfers to special servicing of loans Cumulative DistressDistress
Cumulative for Apartment
for apartment properties totaled $660m in Q3’12, for Apartment Properties
Properties
the lowest since 2007. Most of the newly distressed $90 billions
situations are resulting from maturity defaults $80 Troubled
of CMBS loans. Workout activity fell to $2.4b in REO
$70 Restructured
Q3’12, resulting in a significant decline in outstand-
Resolved
$60
ing distress. Year-to-date outflows have exceeded
$50
inflows by $5.2b.
$40
• At the end of Q3’12, a total of $30.9b of mortgages $30
on apartment property remained distressed with $20
$20.9b in the workout process and $10.0b converted $10
to REO. Throughout the cycle, a total of $81.8b of
$0
apartment property has become distressed, and 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
to date, 63% of that total has been resolved. Banks '08 '09 '10 '11 '12
and other lenders are much farther along at work-
ing out distressed situations while just 51% of dis- Quarterly AdditionsAdditions and to
Quarterly and Reductions
Reductions to Distress
Distress
tressed CMBS loans have been resolved.
billions
$15
Summary by Lender Type Newly Troubled
Outstanding % Chg Worked RR* Worked out
Net Change
Distress ($M) vs Q1'11 Out (%) (%) $10
CMBS $14,820 -14% 51% 74%
Int'l Bank $1,250 2% 75% 72% $5
Domestic Bank $8,201 -19% 66% 68%
Insurance $382 -33% 81% 83%
$0
Gov't Agency $1,120 -31% 67% 64%
Other $5,116 -14% 72% 70%
All Apartments $30,888 -16% 63% 70% -$5
* recovery rate before costs and fees
-$10
• The recovery rate on liquidations of defaulted apart-
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
ment loans was 70% as of Q3, yet greater recoveries '08 '09 '10 '11 '12
have been available for mid/high-rise properties
(85%), especially in the gateway cities (see “Q3’12 % of Sales Associated with Distress
% of Sales Associated with Distress
Recovery Rates”, published October 10). billions
$4 35%
Distress
• Year-to-date, outstanding distress is down in 30%
% of Total
$3 25%
almost every US market. Several large markets Sales
have worked out more than 80% of identified dis-
20%
$2
tress including Washington DC, DC/VA burbs, 15%
San Francisco, San Jose, Broward, and Nashville. $1 10%
Markets resolving the most distress in 2012 include 5%
those that had been among the most illiquid such $0 0%
as Atlanta, Phoenix, Las Vegas, Baltimore and ter- 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
tiary markets in the Southeast. '08 '09 '10 '11 '12
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
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6. ®
third quarter 2012
Market table: Distress and workouts
Current Outstanding Distress Recent Trends
YTD Through Q3’12
Current Known Distress Cumulative in Default/ Total Worked Out % Recovery
Through October 24, 2012 Total Special Serv Held as REO Outstanding Total Worked Out Rate Inflows Workouts
Baltimore 1,045.1 169.3 15.8 185.1 859.9 82% 87% 386.1 416.0
Mid- DC 718.2 51.4 4.0 55.4 662.8 92% 83% - 8.8
DC MD burbs 1,615.4 339.8 - 339.8 1,275.5 79% 77% 20.3 250.7
Atlantic DC VA burbs 1,353.8 - 32.8 32.8 1,321.0 98% 88% 56.0 226.0
Philadelphia 981.8 498.3 34.0 532.3 449.5 46% 74% - 21.6
Pittsburgh 156.4 20.2 1.9 22.1 134.4 86% 96% - 7.8
So NJ 250.2 84.2 - 84.2 166.0 66% 97% - 82.9
All Others 689.1 204.3 72.7 277.1 412.0 60% 84% 104.6 162.0
Mid-Atlantic $6,809.9 $1,367.5 $161.2 $1,528.8 $5,281.2 78% 83% $567.0 $1,175.9
Chicago 2,447.7 734.9 217.3 952.3 1,495.5 61% 68% 56.0 148.5
Midwest Cincinnati 248.3 62.8 14.4 77.3 171.1 69% 74% - 52.5
Cleveland 312.7 56.1 2.6 58.6 254.1 81% 56% 4.1 66.3
Columbus 577.6 222.6 101.8 324.4 253.2 44% 65% 49.4 55.5
Detroit 792.3 97.1 214.2 311.3 481.0 61% 43% 5.3 82.1
Indianapolis 470.7 143.7 83.6 227.3 243.5 52% 65% 14.9 33.3
Kansas City 263.8 78.4 17.3 95.7 168.1 64% 78% 48.3 43.7
Milwaukee 228.7 8.5 121.1 129.6 99.1 43% 68% 5.8 3.5
Minneapolis 91.8 24.2 5.7 29.8 62.0 68% 70% 7.1 2.3
St Louis 255.1 112.4 64.7 177.1 78.0 31% 72% 28.1 18.6
All Others 1,089.6 394.2 100.7 494.9 594.7 55% 63% 53.1 107.6
Midwest $6,778.6 $1,934.8 $943.5 $2,878.3 $3,900.3 58% 64% $272.1 $613.7
Boston 604.4 70.4 155.9 226.3 378.0 63% 77% 11.0 31.7
Northeast Hartford 174.6 39.8 18.1 57.8 116.8 67% 6.0 17.4
Long Island 59.1 - - - 59.1 100% 22.5 22.5
Manhattan 10,005.0 5,198.0 284.3 5,482.4 4,522.7 45% 89% 116.6 1,412.6
No NJ 865.9 160.5 343.6 504.1 361.8 42% 90% 3.9 24.4
NYC Boroughs 1,092.5 387.0 82.5 469.5 623.0 57% 93% 14.4 118.3
Stamford 254.2 24.1 9.3 33.3 220.9 87% 0.4 50.0
Westchester 71.4 5.9 - 5.9 65.5 92% 64% - -
All Others 303.7 100.3 38.2 138.5 165.2 54% 76% 7.4 12.2
Northeast $13,430.9 $5,986.1 $931.9 $6,917.9 $6,513.0 48% 89% $182.2 $1,689.2
Atlanta 4,505.2 589.8 929.7 1,519.6 2,985.6 66% 65% 248.4 615.6
Southeast Broward 1,568.9 197.7 73.4 271.1 1,297.8 83% 57% 2.0 199.2
Charlotte 1,206.0 506.0 88.8 594.8 611.2 51% 78% 462.4 322.4
Jacksonville 1,047.7 303.6 138.9 442.5 605.2 58% 55% 47.6 106.2
Miami 3,329.5 550.5 946.3 1,496.8 1,832.7 55% 62% 85.3 218.5
Nashville 547.7 54.3 13.1 67.4 480.3 88% 59% - 173.5
Orlando 2,415.0 294.3 366.5 660.8 1,754.1 73% 62% 41.2 122.8
Palm Beach 1,660.4 451.6 177.2 628.7 1,031.7 62% 64% 198.2 79.5
SW Florida 1,414.1 256.3 61.9 318.2 1,095.9 77% 52% 33.6 100.9
Tampa 2,116.9 380.1 217.8 597.8 1,519.1 72% 60% 58.4 155.8
All Others 5,839.6 1,465.4 811.0 2,276.4 3,563.2 61% 73% 551.5 608.0
Southeast $25,651.1 $5,049.6 $3,824.6 $8,874.1 $16,776.9 65% 65% $1,728.8 $2,702.6
Austin 967.1 286.7 12.0 298.7 668.3 69% 68% 70.6 95.7
Southwest Dallas 2,816.4 688.2 326.0 1,014.3 1,802.1 64% 74% 369.7 362.7
Denver 722.5 235.8 12.8 248.6 473.9 66% 80% - 58.8
Houston 3,061.2 813.1 625.0 1,438.1 1,623.1 53% 71% 201.1 354.4
Phoenix 4,820.8 1,081.7 586.2 1,668.0 3,152.8 65% 65% 178.5 477.0
San Antonio 578.6 176.8 15.0 191.8 386.9 67% 94% 38.8 89.5
All Others 1,701.3 508.8 109.9 618.7 1,082.7 64% 69% 173.0 263.1
Southwest $14,667.9 $3,791.2 $1,686.9 $5,478.0 $9,189.9 63% 68% $1,031.6 $1,701.2
Central CA 338.2 106.8 36.4 143.2 195.0 58% 65% 6.3 34.6
West East Bay 548.4 52.4 161.0 213.3 335.1 61% 79% - 7.8
Hawaii 57.5 - 29.5 29.5 28.0 49% 100% - -
Inland Empire 835.0 292.3 115.7 408.0 427.0 51% 78% 7.4 26.5
Las Vegas 3,870.8 1,043.2 1,082.5 2,125.7 1,745.1 45% 59% 133.3 514.6
Los Angeles 2,927.2 431.1 275.1 706.3 2,221.0 76% 85% 82.1 331.1
Orange Co 533.1 108.0 - 108.0 425.2 80% 83% 22.9 0.8
Portland 296.8 95.6 13.6 109.2 187.6 63% 93% 1.6 43.7
Reno 440.5 46.1 198.9 245.1 195.4 44% 64% 31.2 112.0
Sacramento 726.0 173.5 28.2 201.7 524.3 72% 73% 47.9 119.8
San Diego 571.3 46.9 14.5 61.4 509.9 89% 86% 1.7 11.3
San Francisco 2,154.6 98.6 67.3 165.9 1,988.7 92% 87% 4.0 230.2
San Jose 453.0 2.2 2.0 4.2 448.7 99% 78% - 3.1
Seattle 1,273.1 150.9 515.7 666.6 606.4 48% 82% 8.3 59.1
All Others 497.8 243.6 26.6 270.2 227.6 46% 76% 27.7 60.9
West $15,523.4 $2,891.2 $2,567.2 $5,458.4 $10,065.0 65% 77% $374.2 $1,555.4
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
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7. ®
third quarter 2012
top Apartment transactions of Q3’12
Top 25 Property Sales by Investment Volume
Transaction Location Inv Vol ($M)* Units PPU Buyer
1 Waterfront at Pu'uloa Ewa Beach, HI $311.0 1,461 212,868 Carmel Partners
2 Apthorp (Bulk Condo) New York, NY 215.1† 110 2,606,773 AREA Property Partners
3 The Beatrice New York, NY 280.0 301 930,233 Equity Residential
4 Savoy Park New York, NY 216.0 1,802 119,867 LM Development Partners JV Citigroup
5 Howard Crossing Ellicott City, MD 186.0 1,350 137,778 Home Properties
6 Oak Grove Village Melrose, MA 175.0 550 318,182 GID
7 Mass Court Washington, DC 168.4 371 453,774 TIAA-CREF
8 Georgian Towers Silver Spring, MD 168.0 890 188,764 Pantzer Properties
9 The Block Austin, TX 165.0 669 246,637 American Campus Communities
10 Sussex at Kingstowne Alexandria, VA 125.5 556 225,719 Praedium Group JV Milestone Group
11 Club Laguna Laguna Beach, CA 120.8 421 286,936 Invesco RE
12 The Brewster New York, NY 98.0 144 680,556 Cornerstone RE Advisers JV Adelco
13 The Electra New York, NY 95.0 163 582,822 Carmel Partners
14 Archstone Legacy Place Dedham, MA 94.3 285 330,702 Archstone
15 Legacy Apartment Homes San Diego, CA 91.0 412 220,874 RV Management Corp
16 Canyon Creek Bothell, WA 90.7 558 162,616 Greystar RE Partners
17 Landmark at Ontario Towne Center Ontario, CA 90.5 469 192,964 Camden Property Trust
18 Hamptons at Town Center Germantown, MD 90.3 768 117,513 AHC
19 Highpoint Apartments Quincy, MA 88.0 394 223,350 Berkshire Property Advisors
20 Avalon Arlington Heights Arlington Heights, IL 87.3 409 213,325 John Hancock
21 Waterford Hayward, CA 86.5 544 159,007 Kennedy Wilson JV
22 Mantena New York, NY 84.0 98 857,143 Equity Residential
23 Circa Green Lake Seattle, WA 83.1 199 417,550 TIAA-CREF
24 88 Lexington Avenue New York, NY 82.0 180 455,556 Westbrook Partners
25 Preserve at Travis Creek Austin, TX 79.5 608 130,757 Heitman
Top 10 Portfolio Sales
Transaction Location Inv Vol ($M)* Units PPU Buyer
1 Archstone Multiple $8,765.6† 67,962 242,783 Lehman Brothers Holdings Inc
2 Campus Acquisitions Merger Multiple 627.0 2,210 283,710 American Campus Communities
3 Kushner MD APT Portfolio '12 Multiple, MD 125.0† 5,517 90,629 Kushner Companies
4 UDR/DRA Advisors Apt Portfolio 2012 Multiple 431.0 4,454 106,870 DRA Advisors JV Milestone Group
5 Landmark Apt Portfolio 12 Multiple n/a 5,353 n/a Apartment Trust of America
6 35 Building Pinnacle Note Sale New York, NY 139.2 1,029 140,914 Heritage Realty JV Dune Capital Mgmt
7 Lynd JV Florida Value Partners CVI Portfolio Multiple 141.0 2,990 47,157 Lynd JV Florida Value Partners
8 State Street Development Apt Portfolio 2012 Multiple, MA 115.9 849 136,523 Preservation of Affordable Housing
9 Aires Portfolio New York, NY 51.0† 328 310,976 Vornado Realty Trust
10 Laurel Square I II Laurel, MD 102.0 982 103,870 Hampshire Properties
* When prices are not known, estimated prices are used in the ranking but are not shown. In the case of partial interest deals, the pro-rated share of the property was used for the
transaction price and the PPU/PPSF was based on the full 100% price.
† Partial Interest
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
7

8. ®
third quarter 2012
top Apartment Brokers through Q3’12
top 25 By investment volume
By Region* Garden Mid/high-rise All Apartment
Mid-Atlantic CBRE 7,176,568,723 CBRE 2,055,429,604 CBRE 9,231,998,327
CBRE Apartment Realty Advisors 3,083,401,450 HFF 1,220,595,193 Apartment Realty Advisors 3,763,506,862
Apartment Realty Advisors Marcus Millichap 2,941,390,658 Eastdil Secured 987,086,801 Marcus Millichap 3,710,873,661
First Capital Realty Cushman Wakefield 1,690,450,425 Marcus Millichap 769,483,003 HFF 2,649,720,198
Moran Co HFF 1,429,125,005 Apartment Realty Advisors 680,105,412 Cushman Wakefield 2,254,441,767
Marcus Millichap
Hendricks Ptnrs 1,194,421,846 Cushman Wakefield 563,991,342 Moran Co 1,524,728,841
Midwest Moran Co 1,077,826,506 Jones Lang LaSalle 497,975,000 Eastdil Secured 1,522,644,801
CBRE Jones Lang LaSalle 672,705,771 Massey Knakal 495,161,244 Hendricks Ptnrs 1,286,897,343
Marcus Millichap Eastdil Secured 535,558,000 Moran Co 446,902,335 Jones Lang LaSalle 1,170,680,771
HFF
Colliers International 387,710,497 Rosewood Realty Group 444,573,500 Colliers International 584,576,497
Moran Co
Transwestern 348,887,285 Prince Realty Advisors 280,000,000 Massey Knakal 519,661,244
Hendricks Ptnrs
Engler Financial Group 289,425,000 Besen Associates 222,320,000 Engler Financial Group 454,275,000
Northeast First Capital Realty 279,550,500 Colliers International 196,866,000 Rosewood Realty Group 449,573,500
Eastdil Secured
Grubb Ellis 183,749,968 Eastern Consolidated 177,706,876 Transwestern 348,887,285
CBRE
Newmark Grubb Knight Frank 177,241,875 Engler Financial Group 164,850,000 First Capital Realty 341,420,500
Massey Knakal
Lee Associates 121,600,000 Ariel Property Advisors 95,082,545 Prince Realty Advisors 280,000,000
HFF
Rosewood Realty Group
Friedman Integrated #REF! Portman Realty 95,000,000 Grubb Ellis 227,150,968
NAI Global 113,448,979 Hendricks Ptnrs 92,475,497 Besen Associates 222,320,000
Southeast
Southeast Apartment Partners 101,181,000 Multi Investment Group 79,150,000 Newmark Grubb Knight Frank 194,291,875
CBRE
Cassidy Turley 90,383,883 Arroyo Coates 75,801,750 Eastern Consolidated 177,706,876
Apartment Realty Advisors
Cushman Wakefield
Kidder Mathews 87,145,743 GFI Capital Resources 70,244,774 NAI Global 137,283,979
Jones Lang LaSalle Houston Income Properties 85,170,396 Alain Pinel 67,838,304 Rockwood RE Advisors 130,161,688
Engler Financial Group Kislak 83,520,420 First Capital Realty 61,870,000 Kidder Mathews 122,900,743
Sperry Van Ness 80,708,000 Studley 56,000,000 Lee Associates 121,600,000
Southwest
CBRE Rockwood RE Advisors 76,850,000 Rockwood RE Advisors 53,311,688 Friedman Integrated #REF!
Apartment Realty Advisors $0.0 $4.0 $8.0 $0.0 $1.0 $2.0 $0.0 $5.0 $10.0
HFF Billions Billions Billions
Marcus Millichap
Moran Co top 15 By number of Properties
West Garden Mid/high-rise All Apartment
Marcus Millichap
CBRE
CBRE 350 Marcus Millichap 71 CBRE 397
Cushman Wakefield Marcus Millichap 260 Massey Knakal 65 Marcus Millichap 331
Moran Co Apartment Realty Advisors 129 HFF 59 Apartment Realty Advisors 151
Hendricks Ptnrs Hendricks Ptnrs 108 CBRE 47 Hendricks Ptnrs 113
Cushman Wakefield 81 Rosewood Realty Group 47 HFF 109
*ranked by investment volume
HFF 50 Besen Associates 28 Cushman Wakefield 101
Colliers International 33 Apartment Realty Advisors 22 Massey Knakal 66
Methodology Moran Co 33 Cushman Wakefield 20 Rosewood Realty Group 48
 Full credit assigned to sellers’ Transwestern 30 Eastdil Secured 19 Jones Lang LaSalle 42
representative. When two brokers
Jones Lang LaSalle 29 Eastern Consolidated 19 Colliers International 40
represent same seller, both sellers’
representatives assigned full NAI Global 26 Jones Lang LaSalle 13 Moran Co 40
credit. For partial-interest, rankings Grubb Ellis 24 HPNY 11 NAI Global 30
are based on the pro-rated share Newmark Grubb Knight Frank 18 Alain Pinel 10 Transwestern 30
of the total property or portfolio
value. For more information Keller Williams 14 GFI Capital Resources 9 Eastdil Secured 29
on rankings please visit www. Brown Realty Advisors 10 Ariel Property Advisors 8 Besen Associates 28
rcanalytics.com/Misc/Brokers_
Ranking_Methodology.pdf 0 200 400 0 50 100 0 250 500
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
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9. ®
third quarter 2012
Selected investment Sales transactions
Reported in the Past 45 Days
Property Name Units Price Owner
Address Year Built PPU Seller
Location Notes Qualifier Broker
Mid-Atlantic
Mass Court 371 $168,383,333 TIAA-CREF from CBRE Global Investors
300 Massachusetts Ave Nw 2004 $453,863 by CBRE
Washington, DC Mid/high-rise approximate
Hamptons at Town Center 768 $90,250,000 AHC from Harbor Group Int'l by CBRE
19775 Crystal Rock 1982 $117,513
Germantown, MD Garden confirmed
Chase Heritage 236 $42,500,000 Continental Realty by Cushman
1212 Chase Heritage Cir 1986 $180,085 Wakefield from Henderson Global
Sterling, VA Garden approximate Investors by Cushman Wakefield
Curren Terrace 318 $29,800,000 BET Investments from
1011 New Hope St 1970 $93,711 Home Properties by CBRE
Norristown, PA Mid/high-rise approximate
Midwest
1401 South State 278 $70,500,000 Marquette Cos JV American Realty
1401 S State St 2008 $253,597 Advisors JV Hunt from Lincoln Property
Chicago, IL Mid/high-rise confirmed Co JV Equity Residential by HFF
The Crossing at Barry Road 624 $54,775,000 GoldOller RE Invts from
7831 Nw Roanridge Rd 1997 $87,780 Creekstone Partners JV Wafra Investment
Kansas City, MO Garden confirmed Advisory Group by CBRE
Stadium Village Flats 120 $43,000,000 Harrison Street Real Estate
818 Washington Ave Se 2012 $358,333 Capital from Opus
Minneapolis, MN Mid/high-rise approximate
Northeast
Mantena 98 $84,000,000 Equity Residential from Joy
433-439 W 37th St 2011 $857,143 Construction Corp by HFF
New York, NY Mid/high-rise confirmed
425 Third Avenue 102 $44,000,000 Benchmark RE Group JV Western Heritable
425 3rd Ave 1967 $431,373 Investment from Midas Management
New York, NY Mid/high-rise approximate
Wellington Place 137 $40,058,750 McMorgan Co by CBRE from
34 Brainard Ave 2005 $292,400 Northwestern Mutual by CBRE
Medford, MA Mid/high-rise confirmed
Eagle Rock Advisors by Institutional
Wintergreen of Westville 294 $39,500,000 Property Advisors - Marcus Millichap Company
400 Blake St 2008 $134,354 from US Bank NA by Institutional Property
New Haven, CT Mid/high-rise confirmed Advisors - Marcus Millichap Company
The 163 Washington Condominiums 49 $31,500,000 ARC NYRR from AE
163-171 Washington Ave 2010 $642,857 Real Estate Holdings
Brooklyn, NY Mid/high-rise confirmed
Southeast
Windsor at Tryon Village 393 $54,000,000 Guardian Life Insurance Co from JP
2000 Crossroads Manor Ct 2007 $137,405 Morgan Asset Management by Engler
Cary, NC Garden confirmed Financial Group
The Province 235 $49,420,750 EdR from Edwards Companies
504 Boxelder Way 2010 $210,301
Greenville, NC Garden confirmed
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
9

10. ®
third quarter 2012
Selected investment Sales transactions
Reported in the Past 45 Days
Property Name Units Price Owner
Address Year Built PPU Seller
Location Notes Qualifier Broker
Lost Creek Resort at Lakewood Ranch 272 $39,250,700 Inland Real Estate Corp from PAC Land
11140 Lost Creek Ter 2011 $144,304 Development Corp by HFF
Bradenton, FL Garden confirmed
Colonial Grand@Research Park 370 $38,000,000 Colonial Properties Trust from
400 Stone Lion Dr 2002 $102,703 Tuckerman Group
Durham, NC Garden approximate
Links at Windsor Park 280 $33,600,000 Catalyst Dev Ptnrs from TA Realty by
13700 Sutton Park Dr N 1994 $120,000 CBRE
Jacksonville, FL Garden approximate
Stoneridge Farms at the Hunt Club 364 $28,969,600 CRES Management from Flournoy
2325 Nashville Pike 2002 $79,587 Companies by Apartment Realty Advisors
Gallatin, TN Garden approximate
Southwest
District on 5th 208 $67,000,000 EdR from Campus Apartments
550 N 5th Ave 2012 $322,115
Tucson, AZ Mid/high-rise approximate
Prairie Creek 464 $52,500,000 Pure Multi-Family REIT from MA Real
3560 Alma Rd 1996 $113,147 Estate
Richardson, TX Garden confirmed
Calvera Point 276 $37,750,000 Waterton Associates from BRE
9100 Vance St 1994 $136,775 Properties by Cushman Wakefield
Broomfield, CO Garden approximate
Alexan Star Ranch 396 $36,630,000 Lincoln Property Co from Trammell
150 Klattenhoff Ln 2009 $92,500 Crow Residential (TCR) by CBRE
Hutto, TX Garden confirmed
Brookstone 528 $35,570,000 Bascom Group from Variable Annuity
4424 E Baseline Rd 1988 $67,367 Life Insurance Co. by Cushman Wakefield
Phoenix, AZ Garden approximate
West
Waterfront at Pu'uloa 1,461 $311,000,000 Carmel Partners from Cirrus Asset
5105 Iroquois Ave 1965 $212,868 Managment Inc OBO Hunt by Eastdil
Ewa Beach, HI Garden confirmed Secured
Club Laguna 421 $120,800,000 Invesco RE from Shea Homes by HFF
350 The Club Dr 1988 $286,936
Laguna Beach, CA Garden approximate
Circa Green Lake 199 $83,013,776 TIAA-CREF from Prudential RE
6900 E Green Lake Way N 2009 $417,155 Investors (PREI) JV Trammell Crow
Seattle, WA Mid/high-rise confirmed by Cushman Wakefield
Waterford Place 360 $58,410,000 Grosvenor from Archstone by
13305 NE 171st St 1989 $162,250 Cushman Wakefield
Woodinville, WA Garden confirmed
Archstone Venice on Rose 70 $56,200,000 Archstone by Institutional Property
512 Rose Avenue 2011 $802,857 Advisors - Marcus Millichap Company from
Venice, CA Garden confirmed Gerding Edlen by Marcus Millichap
Granite Point 384 $45,500,000 Matteson Cos from Northwestern
4500 Truxel Rd 2003 $118,490 Mutual by Colliers International
Sacramento, CA Garden confirmed
©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties portfolios $2.5m and greater.
10