MULTIFAMILY INVESTMENT OPPORTUNITY

Presented Exclusively By: Multifamily Advisory Group | Southeast

REV 2016/02

NEW CONSTRUCTION IN THE HEART OF RICHMOND

MULTIFAMILY INVESTMENT OPPORTUNITY2017 Brook Rd, Richmond, VA 23220

> EXECUTIVE SUMMARY

Offering Summary �� 4

Investment Rationale �� 5

> PROPERTY PROFILE

Property Overview �� 12

Property Detail & Photos �� 13

Aerial Map �� 16

> FINANCIAL OVERVIEW

Proforma �� 18

Income & Expense Notes �� 19

> MARKET ANALYSIS

Rent Comparables �� 21

Sales Comparables �� 24

> AREA INFORMATION

Demographics �� 26

Richmond, Virginia Overview �� 27

Southeast Multifamily Advisory Group �� 29

Table of Contents

EXECUTIVE SUMMARY

COLLIERS INTERNATIONAL P. 4EXECUTIVE SUMMARY

Offering Summary

WILL MATHEWS, LEADVice President | Atlantawill�mathews@colliers�com+1 404 877 9285

BRUCE MILAMSenior Vice President | Richmond & Norfolkbruce�milam@colliers�com+1 804 591 2412

JACKIE NOEL, CCIM CPMSenior Broker | Richmond & Norfolk jackie�noel@colliers�com+1 804 591 2423

RON CAMERONSenior Vice President | Atlanta ron�cameron@colliers�com+1 404 877 9287

COMMUNICATION

All communication, inquiries and requests should be addressed to the Colliers International team, as representatives of the Seller� Management at the property should not be contacted directly�

PROPERTY VISITS

Interested investors are required to schedule a time to meet with the Colliers International team to tour the asset and discuss the merits of the offering�

Please contact a member of the marketing team below with any questions�

DISCLAIMER

This Offering Memorandum is provided for the sole purpose of allowing a potential investor to evaluate whether there is interest in proceeding with further discussions regarding a possible purchase of or investment in the subject property (the “Property”)�

The potential investor is urged to perform its own examination and inspection of the Property and information relating to same, and shall rely solely on such examination and investigation and not on this Brochure or any materials, statements or information contained herein or otherwise provided� Neither Colliers International, nor any of its partners, directors, officers, employees and brokers (“Brokers”), make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to this Offering Memorandum or the Property or any materials, statements (including financial statements and projections) or information contained herein or relating thereto, or as to the accuracy or completeness of such materials, statements or information, or as to the condition, quality or fitness of the Property, or assumes any responsibility with respect thereto� Such materials, statements and information have in many circumstances been obtained from outside sources, and have not been tested or verified� Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given�

Without limiting the foregoing, in the event this Offering Memorandum contains information relating to asbestos or any other hazardous, toxic or dangerous chemical, item, waste or substance (“Hazardous Materials”) in relation to the Property, such information shall in no way be construed as creating any warranties or representations, expressed or implied, by operation of law or otherwise, by Brokers or the owner, as to the existence or nonexistence or nature of Hazardous Materials in, under, on or around the Property�

This Offering Memorandum is provided subject to errors, omissions, prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Property, and is subject to withdrawal, all without notice� The contents hereof are confidential and are not to be reproduced or distributed to any person or entity without the prior written consent of Brokers or used for any purpose other than initial evaluation as indicated above�

JAIME SLOCUMB, CPMCPROJECT ADMINISTRATOR | ATLANTAjaime�slocumb@colliers�com+1 404 892 5254

HEATHER FRANCIS, CPMC, CPRCMARKETING DIRECTOR | ATLANTAheather�francis@colliers�com+1 404 877 9291

SCOTT AMOSONDIRECTOR OF RESEARCH | ATLANTAscott�amoson@colliers�com+1 404 877 9286

MICHAEL HENRYFINANCIAL ANALYST | ATLANTAmichael�henry@colliers�com+1 404 877 9222

Support Team

DATES OF IMPORTANCE

PROPERTY TOUR DATES: TUESDAY thru THURSDAY 10:00 AM thru 4:00 PM BY APPOINTMENT ONLY

OFFER DUE DATE: FRIDAY, APRIL 15, 2016


Investment Rationale

Tax Abatement Offers Huge Competitive AdvantageThe Spectrum offers potential investors a huge competitive advantage in possessing a transferable tax abatement incentive� The City of Richmond has a tax abatement program that abates the full value of the building improvements for 7 years then phases in the taxable value of the building improvements in years 8-10 (25% in Year 8, 50% in Year 9, 75% in Year 10)�

The Spectrum’s abatement period began in September 2015 and runs until 2025� Real Estate taxes for 2015 are estimated at $18,200� With this tax abatement, investors are able to capitalize on a very low operating expense margin and increased NOI yield and cash flow�


The Spectrum provides the ultimate combination in modern luxuries and conveniences in urban living� The Spectrum, built in 2015, offers best in class asset features with hardwood flooring throughout the living room and kitchen areas� Other features include designer cabinetry with sleek finishes, stainless steel appliances, full washer/dryers, and contemporary fixtures�

Community amenities include a state-of-the-art fitness center, clubroom with TVs and gaming, private study rooms, lounge areas, fire pit, grill, and 24-hour onsite emergency maintenance service�

These qualities and features have allowed The Spectrum to remain over 95% occupied and command rents near the top of the market with very little loss to lease and concessions�


Modern Urban Living in the Heart of Richmond



Almost 20,000 Companies Employing over 350,000 People within 5 milesTop 25 Employers

# Business Name Emp�1 Westrock Company 41,6002 Dominion Resources Svcs Inc 17,0003 Estes Express Lines Inc 14,0004 UPS Ground Freight Inc 14,0005 Virginia Commonwealth University 11,0006 Altria Group Inc 9,0007 Virginia Department Trnsp 9,0008 Wachovia Securities Financial 8,0009 VCU Health System Authority 7,39910 Philip Morris USA Inc 7,30011 Henrico County School District 5,60012 Ukrops Super Markets Inc 5,60013 Canal Corporation 5,42714 Media General Inc 5,30015 Mgoc Inc 5,30016 Genworth Financial Inc 5,00017 Consolidated Natural Gas Co 4,70018 Inter Missi Board of The South 4,68619 Richmond City Public Schools 4,20020 Southeast Services Inc 4,12221 Carpenter Holdings Inc 4,00022 Southern States Coop Inc 4,00023 Anthem Health Plans VA Inc 3,11224 Southern States Holdings Inc 3,00025 UPS Freight Services Inc 3,000



Excellent Universities Nearby Provide Sustained Renter DemandThe Spectrum is located near many major colleges and universities which provide a sizable rental pool to pull from� The property is adjacent to Virginia Union University (VUU) and within minutes of Virginia Commonwealth University (VCU)�

Virginia Union University features a student body population of approximately 1,700 students while VCU boasts a total enrollment figure of approximately 32,000�

Virginia Commonwealth University at a Glance:

> Established in 1838 > Over 21,000 total employees at VCU and VCU Health (Largest employer in Richmond) > Total Student Enrollment of 31,242 (24,051 undergraduates, 7,191 postgraduates) > Full-time faculty members: 2,264 > Total Alumni: 174,573 (Over 64% live in Virginia and 38% in Richmond) > 2015 Endowment of $1�64 billion (National Association of College and University Business

Officers) > Top 50 public research university in US with over $270 million in sponsored research in

FY15 > VCU Medical Center ranked as #1 hospital in Virginia (U�S� News & World Report) > VCU School of the Arts ranked as the #1 public graduate arts school (U�S� News & World

Report) > Top Graduate advertising program in the US (VCU Brandcenter)

Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015VCU Undergraduate EnrollmentStudents 19,497 20,232 20,993 21,500 21,835 22,202 22,178 22,080 22,335 22,516

VCU Employee CountFull-time 11,088 11,493 11,986 12,146 12,553 12,912 13,251 13,609 14,738 15,015 Part-time 5,467 5,925 5,914 5,918 6,104 5,918 6,704 6,632 6,966 6,664 Total 16,555 17,418 17,900 18,064 18,657 18,830 19,955 20,241 21,704 21,679

HIGHEST IN THE PAST 10 YEARS!



Walking Distance to America’s Most Elite High SchoolThe Spectrum is less than 0�5 miles away from the prestigious Maggie L� Walker Governor School for Government and International Studies (MLWGSGIS)� This is a public regional magnet high school that pulls from 13 counties in Virginia� Every

year since 2006 the school has been recognized by Newsweek as one of the twenty-one most elite public schools in America. In 2013, Maggie Walker was ranked 14th in Newsweek’s “Best Public High Schools�” In 2014, Maggie Walker was ranked 10th in The Daily Beast’s “Best High Schools” and 7th in their “25 Best High Schools in the South�”

Applicants must undergo a rigorous application process in which four tests (three tests with three subsections each, one large test) and an essay are administered� A combination of grades, recommendations, and test results determine the applicants’ overall score� About 9% of applicants actually get into MLWGSGIS out of an average of 2,000 applicants from all the participating localities, making the freshmen class usually around 180�

MLWGSGIS is in a partnership with Virginia Commonwealth University (VCU), meaning that students can earn college credit for certain “dual enrollment” high school classes� This also allows MLWGSGIS students access to VCU’s extensive library system�

Maggie L� Walker Governor’s School



Easily Accessible Location to Numerous Richmond Attractions (In the Heart of It All)Situated just outside Downtown Richmond, The Spectrum has great connectivity to numerous restaurants, retail, universities, and other points of interest in the Downtown Richmond area� The property is adjacent to Virginia Union University and within 1 miles of Virginia Commonwealth University, one of the largest and most prestigious universities in Virginia�

Some Nearby Attractions Include:

> Richmond CenterStage: A major performing arts center in Richmond, which opened in 1928� The center contains five venues: The Carpenter Theatre, Libby S� Gottwald Playhouse, Rhythm Hall, Showcase Gallery, and the Altria Theater� The center is listed on the U�S� National Register of Historic Places and is a major attraction in the region�

> Altria Theater: The largest venue in the CenterStage performing arts complex� The theater was constructed in 1926 and contains a 3,565 seat theater and 18,000 square feet ballroom�

> Monroe Park: The oldest park in Richmond, VA� The park is managed in-part by Virginia Commonwealth University and contains monuments to William Carter Wickham as well as World War I & II serviceman�

> Monument Avenue: One of the most prestigious streets in Richmond� Contains a historic district on the U�S� National Register of Historic Places� The street has numerous statues memorializing Civil War participants and famed Richmond natives� The avenue plays host to several annual events including an annual 10K race� In 2007, Monument Avenue was named as one of the 10 Great Streets in America by the American Planning Association (APA)�

> Branch House: Historic landmark on the U�S� National Register of Historic Places� The Branch House is the home of the Virginia Center for Architecture (VCA), and contains offices for the Virginia Society of the American Institute of Architects (VSAIA)�


Monroe ParkAltria Theater

Monument AvenueBranch House

Virginia Commonwealth

University

Virginia Union University

PROPERTY OVERVIEW

COLLIERS INTERNATIONAL P. 12PROPERTY PROFILE

Property Overview

APARTMENT HOME FEATURES

> Air Conditioner > Dishwasher > Free Cable & Internet > Full-Size, Stackable Washer/Dryer > Hardwood Floors > Stainless Steel Appliances

Address 2017 Brook RdRichmond, VA 23220

Year Built 2015

Number Buildings 1

Number of Floors 4

Number of Units 103

Gross Building Square Feet

106,800

Acres ± 2�34

Unit Mix

The Spectrum is a 103-unit apartment community completed in 2015� The Property is situated on ±2�34 acres and features one, two, and three bedroom floor plans� The Spectrum offers a community clubroom, fitness center, data center and community room� There are also many amenities for your convenience including washers and dryers, in each apartment, hardwood floors and stainless steel appliances�

The Property is situated off of Brook Road and is convenient to interstate I-95/1-64 and Chamberlayne Avenue, a major corridor into the City� Across from Virginia Union University and one mile from Virginia Commonwealth University�

COMMUNITY AMENITIES

> 24 Hour Fitness Gym > Business Center > Clubroom > Game Room > Controlled Access > Courtyard > Grilling Area > Community Lounge > On-Site Maintenance > TV Lounge

Type Units Unit SF Total

NRA

Rent Rent

PSF

1 BR / 1 BA 1 492 492 $825 $1�68

1 BR / 1 BA 22 742 16,324 $930 $1�25

1 BR / 1 BA 3 840 2,520 $1,125 $1�34

1 BR / 1 BA 1 860 860 $955 $1�11

2 BR / 2 BA 43 833 35,819 $1,300 $1�56

2 BR / 2 BA 1 837 837 $1,295 $1�55

2 BR / 2 BA 4 860 3,440 $1,295 $1�51

2 BR / 2 BA 3 1,054 3,162 $1,295 $1�23

3 BR / 3 BA 7 998 6,986 $1,357 $1�36

3 BR / 3 BA 3 1,185 3,555 $1,600 $1�35

3 BR / 3 BA 11 1,211 13,321 $1,611 $1�33

3 BR / 3 BA 4 1,232 4,928 $1,600 $1�30

Total/Average 103 896 92,244 $1,265 $1�41


Property DetailSITE DESCRIPTIONProperty Name The Spectrum Apartments

Address 2017 Brook RdRichmond, VA 23234

Tax Parcel ID N0000627010

County Richmond City

Schools Carver Elementary SchoolHenderson Middle SchoolJefferson High School

Year Built 2015

Site Acreage 2�34

Development Density 47�03 units per acre

Number of Buildings 1

Number of Stories 4

Net Rentable Area 92,244106,800 (Gross SF of entire building)

Number of Units 103

Average Unit Size 896

Parking Surface Parking Only

Ingress/Egress Ingress and egress is available via Brook Rd & Robert Street

Sidewalks Concrete sidewalk around exterior

Landscaping Combination of grass, planted beds, shrubs and trees

Mail Service One centralized mail station

Pool N/A

Fitness Center Fitness Center with Cardio & Strength Equipment

Clubhouse / Business Center

Fully furnished leasing office is accessible to residents, business center, game room, and lounge

Additional Features Courtyard with grilling area


Property DetailUNIT DESCRIPTIONLighting Can and mounted fixture lighting

Ceiling Heights 9’, smooth

Balconies/Porches N/A

Kitchen Appliances Stainless steel refrigerators with ice makers, self cleaning ovens, garbage disposals, microwave, and dishwashers�

Closet Space All units have walk-in closets

Cabinets Espresso cabinetry with brushed nickel hardware�

Washer & Dryer Full-Size, Stacked Washer/Dryer in all units

Flooring Apartment grade carpet� Hardwood floors in all kitchens and bath�

Doors Metal exterior doors, and raised panel hollow-core interior doors

Additional Features Granite counters

STRUCTURAL DESCRIPTION & BUILDING SYSTEMSFoundation/Footing The foundation consists of poured reinforced concrete slabs�

Construction Components The construction components include a wood frame

Floor Structure Ground Floor: Concrete slab on impact gravelOther Floors: Plywood deck with lightweight concrete on upper floors

Walls Interior: Painted gypsum board Exterior: Hardi Plank

Roof Cover Flat rubber membrane

Elevator 1 elevator located centrally in the building

Stairways 2 Interior stairwells

HVAC Electric heat systems; air conditioning is forced air�

Plumbing Individual Water Heaters

Windows Apartments have double hung, aluminum framed plate glass windows�

Utilities Water: Building has one house meter; provided by The City of Richmond Department of Public Utilities�Electricity: Individually metered; provided by Dominion Virginia Power�

Fire Protection Smoke detectors with battery backup in each apartment�


Interior Photos


Aerial MapAerial Map

143,228 VPD

8,284 VPD

6,910 VPD

8,097 VPD

19,832 VPD

Hovey Field

Albert V Norrell Elementary School

Virginia Union University

Virginia Commonwealth University


First Tee Richmond

Seven Hills High School

FINANCIAL OVERVIEW

COLLIERS INTERNATIONAL P. 18FINANCIAL OVERVIEW

*The information contained herein has been given to Colliers International, either by the owner or obtained from sources that we deem reliable� We have no reason to doubt its accuracy, but we do not guarantee it� The prospective buyer should carefully verify each item of income, expense and all other information contained herein and should also perform a detailed inspection of the property�

Income & Expense Proforma

PROPERTY INFORMATION

Units 103

Year Completed 2015

Total NRA 92,244

Avg� SF 896

Leased 95%

Total Acreage 2�34

Units/Acre 47

TAX INFORMATION

Land Value $1,030,000

Tax ID # N0000627010

CURRENT UNIT MIX (Consolidated)

Type Units SQ FT Total NRA Avg� Rent / MO Avg� Rent / SF

1 BR 27 748 20,196 $948 $1�27

2 BR 51 848 43,258 $1,299 $1�53

3 BR 25 1152 28,790 $1,537 $1�33

Total/Avg 103 896 92,244 $1,265 $1�41

STABILIZED PROFORMA% of GPR Totals Per Unit Per SF Per Month

REVENUE

Gross Potential Rent: 100�0% $1,624,938 $15,776 $17�62 $135,411

Less: Vacancy -5�0% -$81,247 -$789 -$0�88 -$6,771

Less: Concessions -0�8% -$12,187 -$118 -$0�13 -$1,016

Less: Collection Loss/Bad Debt -2�0% -$32,499 -$316 -$0�35 -$2,708

Total Rental Income: 92�3% $1,499,005 $14,553 $16�25 $124,917

Plus: Other Income: 5�2% $84,435 $820 $0�92 $7,036

Effective Gross Income 97�4% $1,583,440 $15,373 $17�17 $131,953

EXPENSES

Repair & Maintenance 1�1% $17,676 $172 $0�19 $1,473

Contract Services 2�1% $33,360 $324 $0�36 $2,780

Personnel 7�0% $113,300 $1,100 $1�23 $9,442

Marketing / Advertising 2�6% $43,029 $418 $0�47 $3,586

Administrative Expenses 5�6% $90,781 $881 $0�98 $7,565

Turnover / Make-Ready 1�6% $25,349 $246 $0�27 $2,112

Other Utilities 4�3% $69,862 $678 $0�76 $5,822

Insurance 1�1% $18,025 $175 $0�20 $1,502

Real Estate Taxes 1�1% $18,200 $177 $0�20 $1,517

Property Management Fee 2�9% $47,503 $461 $0�51 $3,959

Capital Reserves 1�3% $20,600 $200 $0�22 $1,717

Total Expenses 30�6% $497,685 $4,832 $5�40 $41,474

Net Operating Income $1,085,755 $10,541 $11�77 $90,480

DEBT ASSUMPTIONOriginal Debt: $10,700,000 Interest Rate: 6�42%Annual Debt Pmt: $(804,832)Monthly Pmt: $(67,069)Constant: 7�5%Amortization 30Loan Origination Date 9/26/2013Lockout Period Ends:* 9/25/2023

*After lockout period the loan can be prepaid off with a 5% penalty of the remaining loan balance� The prepayment penalty decreases by 1% each year thereafter�

COLLIERS INTERNATIONAL P. 19FINANCIAL OVERVIEW

Income & Expense Notes

EXPENSEINCOME > Repairs & Maintenance: R&M is a consolidation of the cost of all repairs and supplies

necessary to maintain the property and its systems� Pro forma R&M is projected at 3% higher than trailing-12 month historical or $17,676�

> Contract Services: Contract Services included janitorial, trash collection, landscaping, and other contracted expenses� Contract Services is projected at $324/unit or $33,360 annually in Year 1 of the Pro Forma�

> Personnel: Personnel expenses are the consolidation of leasing, administrative, and maintenance salaries, as well as the associated employee benefits� Pro forma personnel expense is projected at $1,110/unit or $113,300 annually�

> Marketing/Advertising: Marketing & Advertising expense includes all advertising and promotion including internet ads, apartment guides and print ads� Marketing & Advertising is projected at $418/unit or $43,029 annually�

> Administrative: Administrative expenses cable expenses, internet services, data processing, bank charges, billing charges, and other miscellaneous costs� Administrative expenses are projected in Year 1 at $90,781 annually�

> Turnover/Make-Ready: Turnover/Make-Ready expenses include carpet cleaning, painting, and other costs associated with making unit rent-ready� Turnover/Make-Ready expenses are projected at $246/unit and $25,349 annually�

> Utilities: Utilities include the cost of electricity, water & sewer, and utility processing fees� The pro forma utilities expense is assumed to be $678/ Unit, or $69,862 annually

> Insurance: Year 1 Insurance Expense is projected at $175/unit or $18,025 annually�

> Real Estate Taxes: The Spectrum is currently under a tax abatement program with the City of Richmond� Real Estate taxes on the building improvements are abated and only assessed on the land� Pro forma real estate taxes are based on historical and are projected at $18,200 annually�

> Management Fee: Pro forma management fee is projected to be 3�00% of the effective gross revenue, which is historically competitive with third party management firms�

> Capital Reserves: Pro forma capital reserves are assumed to be $200 / Unit, or $20,600 annually� This figure is considered to be market for assets of this vintage and location�

> Potential Market Rent (GPR): The pro forma potential market rent represents a 4% increase on the trailing 3-month market rent and is projected at $1,624,938 annually�

> Vacancy: Vacancy is projected at 5% of GPR in Year 1 of the Pro Forma� This is considered market for assets in this location�

> Concessions: Concessions consolidates both recurring and non-recurring concessions� Concessions are projected in year 1 pro forma to be 0�75% of GPR�

> Bad Debt: Bad debt is projected to be 2�00% of GPR in Year 1 of the Pro Forma� This is considered market for assets in this location�

> Other Income: Other Income encompasses various fees and additional rental income items, including but not limited to: move-in fees, application fees, parking income, late fees, and other miscellaneous income� Pro Forma Other Income is projected at $820/unit or $84,435 annually in Year 1�

MARKET ANALYSIS

COLLIERS INTERNATIONAL P. 21MARKET ANALYSIS

Rent Comparables

THE SPECTRUM

2017 Brook Road

Richmond, VA 23220

Year Built: 2015

Occupancy: 100%

# of Units

Size (SF) Effective RateUnit Type Unit Total Total PSF 1 BR / 1 BA 1 492 492 $825 $1�68

1 BR / 1 BA 22 742 16,324 $930 $1�25

1 BR / 1 BA 3 840 2,520 $1,125 $1�34

1 BR / 1 BA 1 860 860 $955 $1�11

2 BR / 2 BA 43 833 35,819 $1,300 $1�56

2 BR / 2 BA 1 837 837 $1,295 $1�55

2 BR / 2 BA 4 860 3,440 $1,295 $1�51

2 BR / 2 BA 3 1,054 3,162 $1,295 $1�23

3 BR / 3 BA 7 998 6,986 $1,357 $1�36

3 BR / 3 BA 3 1,185 3,555 $1,600 $1�35

3 BR / 3 BA 11 1,211 13,321 $1,611 $1�33

3 BR / 3 BA 4 1,232 4,928 $1,600 $1�30

Total/Average 103 896 92,244 $1,265 $1�41

1 BR26%

2 BR50%

3 BR24%

2

3

5

6

4

1


Rent Comparables

THE PRESERVE AT SCOTT’S ADDITION

1310 Roseneath Road

Richmond, VA 23230

Year Built: 2015

Occupancy: 93�8%

# of Units

Size (SF) Effective RateUnit Type Unit Total Total PSFStudio / 1 BA 9 557 5,013 $869 $1�56

1 BR / 1 BA 103 735 75,705 $1,058 $1�44

2 BR / 2 BA 83 1,061 88,063 $1,459 $1�38

Total/Average 195 866 168,781 $1,220 $1�41

THE LOCKS BUILDING 5

1300 E Byrd Street

Richmond, VA 23219

Year Built: 2015

Occupancy: 77�0%

# of Units

Size (SF) Effective RateUnit Type Unit Total Total PSF1 BR / 1 BA 18 684 12,312 $873 $1�28

1 BR / 1 BA 17 707 12,019 $1,025 $1�45

2 BR / 2 BA 17 1,099 18,683 $1,599 $1�45

Total/Average 52 827 43,014 $1,160 $1�40

COOKIE FACTORY LOFTS

900 Terminal Place

Richmond, VA 23220

Year Built: 2015

Occupancy: 69�1%

# of Units

Size (SF) Effective RateUnit Type Unit Total Total PSFStudio / 1 BA 44 706 31,064 $981 $1�39

1 BR / 1 BA 43 730 31,390 $1,006 $1�38

2 BR / 2 BA 64 970 62,080 $1,375 $1�42

3 BR / 2 BA 27 1,338 36,126 $1,988 $1�49

Total/Average 178 903 160,660 $1,282 $1�42

UNIT FEATURES > Loft Style Living > Stainless Appliances > Wood Floors > High Ceilings

COMMUNITY AMENITIES > Swimming Pool > Clubhouse > Fitness Center > Surface Parking

1 BR49%

3 BR15%

2 BR36%

UNIT FEATURES > Granite Counters > Stainless Steel

Appliances > Subway Tile > Washer/Dryer

COMMUNITY AMENITIES > Swimming Pool > Fitness Center > Clubhouse > WiFi in all Common Areas

1 BR67%

2 BR33%

UNIT FEATURES > Stainless Appliances > Washer/Dryer > Ceiling Fans > Patio

COMMUNITY AMENITIES > Swimming Pool > Fitness Room > Clubroom > Rooftop Deck

2 BR43%

31 2

1 BR57%


Rent Comparables

THE LOCKS

311 S 11th Street

Richmond, VA 23219

Year Built: 2012

Occupancy: 93�7%

# of Units


1 BR / 1 BA 15 666 9,990 $985 $1�48

1 BR / 1 BA 30 671 20,130 $1,148 $1�71

1 BR / 1 BA 15 764 11,460 $1,300 $1�70

1 BR / 1 BA 14 856 11,984 $1,368 $1�60

1 BR / 1 BA 17 1,361 23,137 $1,774 $1�30

2 BR / 2 BA 15 817 12,255 $1,470 $1�80

2 BR / 2 BA 15 881 13,215 $1,567 $1�78

2 BR / 2 BA 15 919 13,785 $1,651 $1�80

2 BR / 2 BA 15 1,183 17,745 $1,568 $1�33

2 BR / 2 BA 8 1,378 11,024 $1,577 $1�14

Total/Average 174 889 154,700 $1,376 $1�55

LINK APARTMENTS MANCHESTER

901 McDonough Street

Richmond, VA 23224

Year Built: 2012

Occupancy: 98�4%

# of Units


1 BR / 1 BA 30 661 19,830 $939 $1�42

1 BR / 1 BA 61 683 41,663 $949 $1�39

1 BR / 1 BA 14 699 9,786 $972 $1�39

1 BR / 1 BA 9 709 6,381 $1,028 $1�45

1 BR / 1 BA 9 717 6,453 $968 $1�35

1 BR / 1 BA 1 738 738 $1,077 $1�46

1 BR / 1 BA 9 739 6,651 $1,027 $1�39

2 BR / 2 BA 16 953 15,248 $1,521 $1�60

2 BR / 2 BA 10 1,023 10,230 $1,505 $1�47

2 BR / 2 BA 19 1,111 21,109 $1,343 $1�21

Total/Average 187 769 143,894 $1,074 $1�40

CEDAR BROAD APARTMENTS

305 N 18th Street

Richmond, VA 23223

Year Built: 2011

Occupancy: 91�7%

# of Units


1 BR / 1 BA 1 542 542 $759 $1�40

1 BR / 1 BA 1 547 547 $879 $1�61

1 BR / 1 BA 50 549 27,450 $814 $1�48

1 BR / 1 BA 1 567 567 $1,063 $1�87

1 BR / 1 BA 49 574 28,126 $900 $1�57

2 BR / 2 BA 15 756 11,340 $1,144 $1�51

2 BR / 2 BA 1 763 763 $1,068 $1�40

2 BR / 2 BA 8 792 6,336 $1,364 $1�72

2 BR / 2 BA 16 835 13,360 $1,373 $1�64

3 BR / 2 BA 5 1,064 5,320 $1,559 $1�47

3 BR / 2 BA 6 1,073 6,438 $1,509 $1�41

Total/Average 204 629 128,227 $968 $1�54

UNIT FEATURES > City Views > Granite Counters > Hardwood Floors > Washer/Dryer

COMMUNITY AMENITIES > Rooftop Tanning Ledge > Fitness Center > Clubhouse > Cyber Cafe

1 BR75%

2 BR20%

3 BR5%

UNIT FEATURES > Designer Cabinets > Green Living > Granite Counters > Walk-In Closets

COMMUNITY AMENITIES > Swimming Pool > State-of-the-Art Fitness

Center > Clubroom > Community Herb Garden

2 BR39%

2 BR24%

5 64

1 BR61%

1 BR76%

UNIT FEATURES > Granite Counters > Stainless Steel

Appliances > Subway Tile > Washer/Dryer

COMMUNITY AMENITIES > Swimming Pool > Fitness Center > Clubhouse > WiFi in all Common Areas


Sales Comparables

PROPERTY YEAR BUILT UNITS CLOSED PRICE PER UNITTHE SPECTRUM 2015 103 - - - 2017 Brook RoadRichmond, VA 23220

LEE SCHOOL LOFTS 1917/2002 40 January 2016 $7,600,000 $190,000 3101 Kesington AveRichmond, VA 23221

CARRIAGE HOUSE 2001/2010 41 December 2015 $7,400,000 $180,488 728 W Marshall Street Richmond, VA 23220

RETREAT AT WEST CREEK 2014 254 June 2015 $43,550,000 $171,457 1000 Wilkers Ridge PlaceHenrico, VA 23233

THE FLATS AT WEST BROAD VILLAGE 2009 339 July 2015 $56,015,389 $165,237 3930 Wild Goose LaneGlen Allen, VA 23060

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AREA INFORMATION

COLLIERS INTERNATIONAL P. 26AREA INFORMATION

Demographics

5 Mile 10 Miles 20 MilesPopulation: 2014B Total Population 248,777 629,898 998,749 Female Population 52�84% 52�53% 51�98% Male Population 47�16% 47�47% 48�02%Population Density 3,165 2,003 794Population Median Age 34�0 36�1 37�7Employed Civilian Population 16+ 118,783 322,938 521,481 % White Collar 62�4% 65�9% 68�3% % Blue Collar 37�6% 34�1% 31�7%Total Employees 208,251 391,958 527,455Total Establishments* 12,172 27,175 40,056 Population Growth 2000-2010 4�64% 9�41% 15�21% Population Growth 2014B-2019 2�29% 3�38% 5�14%

Income: 2014BAverage Household Income $62,529 $74,690 $85,552Median Household Income $40,125 $51,698 $60,401Per Capita Income $27,996 $30,934 $33,975 Avg Income Growth 2000-2010 30�29% 29�97% 32�96% Avg Income Growth 2014B-2019 15�93% 15�72% 15�58%

Households: 2014BHouseholds 108,493 257,598 392,362Average Household Size 2�19 2�38 2�48 Hhld Growth 2000-2010 5�02% 8�44% 14�52% Hhld Growth 2014B-2019 3�39% 4�09% 5�71%

5 Mile 10 Miles 20 MilesHousing Units: 2014BOccupied Units 108,493 257,598 392,362 % Occupied Units 93�65% 94�98% 95�30% % Vacant Housing Units 6�35% 5�02% 4�70% Owner Occ Housing Growth 2000-2010 -0�24% 5�37% 11�89% Owner Occ Housing Growth 2000-2019 4�35% 12�42% 22�85% Owner Occ Housing Growth 2014B-2019 1�96% 3�75% 5�72%Occ Housing Growth 2000-2010 5�02% 8�44% 14�52%Occ Housing Growth 2010-2019 10�18% 9�93% 11�91%Occ Housing Growth 2014B-2019 3�39% 4�09% 5�71%

Race and Ethnicity: 2014B% American Indian or Alaska Native Population

0�30% 0�37% 0�38%

% Asian Population 2�67% 3�99% 4�32%% Black Population 50�01% 36�94% 28�90%% Hawaiian or Pacific Islander Population 0�07% 0�07% 0�07%% Multirace Population 2�51% 2�67% 2�61%% Other Race Population 2�09% 3�50% 2�85%% White Population 42�37% 52�46% 60�86%% Hispanic Population 4�55% 7�13% 6�20%% Non Hispanic Population 95�45% 92�87% 93�80%

*Geography: 5, 10, and 20 Miles from the Subject Property


Richmond, Virginia Overview

Miami

Atlanta

Chicago

St. Louis

New York

Boston

Washington

C A N A D A

Richmond, VA

REGIONAL OVERVIEW

Greater Richmond, Virginia is a dynamic hub of national and international business� Ten Fortune 1000 companies have their corporate headquarters here� Other internationally acclaimed companies such as Capital One, DuPont, and Shandong Tranlin represent the diversity of industries that thrive here� From biotechnology research to finance & insurance, the Richmond Region is host and home to some of the world’s most successful businesses�

For four years in a row, Virginia has led the nation in the Forbes�com and CNBC�com Best State for Business study� The review examines multiple objective measurements, including business cost, regulatory climate, quality of the workforce, and economic growth�

GEOGRAPHIC

Greater Richmond, Virginia, USA is located at the midpoint on the East Coast, halfway between New England and Florida�

Virginia is strategically located at the center of the East Coast economic corridor� Road and rail links are excellent with New York (288 miles), Atlanta (469 miles) and Boston (477 miles)� The nation’s capital, Washington DC, is adjacent to Virginia’s north east corner� Richmond, Virginia’s state capital is only 98 miles due south of DC (two hours drive)�

The Greater Richmond region includes Virginia’s capital city, Richmond, and the vibrant counties of Chesterfield, Hanover, and Henrico� Greater Richmond is part of the Richmond Metropolitan Statistical Area (MSA) that consists of 16 counties and four cities and covers approximately 5,700 square miles (14,800 km)�

The growing Richmond metropolitan area has a population of 1�3 million and Virginia has a population of 7�8 million�

WORK

Virginia is frequently named the best state for business — and certainly the state capital, Richmond, has the same great qualities� Strong, diverse and reliant — the regional economy offers some exciting career opportunities and a lifestyle you’ll love� The area’s top employers represent a wide range industries, including emerging health life sciences and biotechnology, innovative finance and insurance, advanced manufacturing, logistics, professional and creative services, and the government sector�

A diverse, business-friendly environment is not the only feature fostering Richmond’s booming economy — a workforce committed to driving innovation, collaboration and growth also plays an integral role� New residents are often surprised by the warm welcome they receive from fellow professionals, as the quality of individuals embody Virginia’s standing as the #1 State to do business�

Plus, our average commute time is only 24 minutes — which means many new residents are liberated from the hassles and sacrifices accompanying commutes and serious traffic — thus freeing up to 20 hours of their lives each week�

TOP 5 PUBLIC EMPLOYERS IN THE AREA

1� Chesterfield County 20,923 Em2� Henrico County 18,946 Em3� City of Richmond 39,642 Em4� Hanover County 5,015 Em5� Petersburg County 2,610 Em

TOP 10 PRIVATE EMPLOYERS IN THE AREA

1� Capital One Financial Corp, 11,309 Em2� VCU Health System 8,491 Em3� HCA Inc� 7,051 Em4� Bon Secours Richmond Health Statem 6,646 EM5� Walmart 5,351 Em6� Dominion Resources Inc� 5,220 Em7� SunTrust Banks Inc� 4,432 Em8� Food Lion 3,986 Em9� Altria Group Inc� 3,900 Em10� Amazon 3,127 Em

FORTUNE 1,000 COMPANIES IN GREATER RICHMONDCompany Business Fortune Rank

Altria Group Tobacco and wine products 161

Dominion Resources Electric and gas utility 212

Genworth Financial Insurance 291

CarMax Automotive retailer 240

Owens & Minor Health care wholesaler 303

MeadWestvaco Packaging 457

Brink’s Security services 596

Markel Insurance 570

Universal Tobacco wholesaler 853

NewMarket Chemicals 894


Richmond, Virginia Overview

LIVE

With a cost of living right around the national average, you’ll probably discover your housing dollars go much farther in Richmond than in other communities — without sacrificing the amenities and options you expect� And, because our average commute times are only 24 minutes, you can choose your new home based on what you really want, rather than feeling forced to worry about proximity to work

LEARN

With more than 150,000 public school students; 18,000 private school students; 68,000 college students and countless lifelong learners, education anchors our community in Richmond, Va� In fact, Forbes�com named Richmond the #12 place to educate your child� And, if you are looking to enrich your free time with new knowledge, Richmond offers everything from stained glass and printmaking classes at The Visual Arts Center of Richmond to continuing education at universities and the public libraries� No matter your passion or interest, Richmond offers the education you need�

PLAY

Richmond is home to several professional sports organizations, including NASCAR and AA baseball� But, travel the region on one of our many beautiful days, and you’ll see proof that many Richmonders would rather play than watch�

Truly, our residents love to get out and play� And opportunities abound in every corner of our region�

But, play in Richmond extends far beyond physical activity� Thanks in part to Virginia Commonwealth University’s top-ranked art and advertising schools, creative culture pervades the region� We are home to the Virginia Museum of Fine Arts, galleries and monthly art walks in several city neighborhoods�

On any night of the week, you can find live music at numerous local venues, from music clubs and restaurants to revived historic performance halls, including The National, Alria Theatre and Richmond CenterStage, which regularly draw national acts� And if ballet or theater is more your taste, the Richmond Ballet and our many local acting troupes, such as Richmond Shakespeare, are always ready to bring the stage to life�

LOCAL

A creative, enterprising spirit shapes every aspect of life within the Richmond city limits� Festivals, art galleries and live music abound� Local dining destinations pepper the landscape� Downtown boardrooms boast stellar river views�

From entrepreneurs to executives to artists, Richmonders are inspired by collaboration and connectivity� In fact, spend some time here,and you’ll inevitably hear someone say “that’s so Richmond” upon realizing how people in

their lives intersect in ways they never imagined� We work, live and play in many spheres, yet invite each other to join� Like the James River churning through shifting areas of rapids and calm, life in Richmond is ever-evolving, exciting, fulfilling — and open to everyone� In fact, Richmond was even named the Best Small City of the Future�

Richmond Washington Monument

Richmond Skyline


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*Disclaimer: This document has been prepared by Colliers International for advertising and general information only� Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability� Any interested party should undertake their own inquiries as to the accuracy of the information� Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from� This publication is the copyrighted property of Colliers International and/or its licensor(s)� ©2016� All rights reserved�

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