Market Research _ The Julian at Creative Village

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04 MARKET ANALYSIS / DATA AND DEMAND DRIVERS TARGET MARKET The Creative Village is an emerging district in Downtown Orlando targeting high-tech, digital media creative companies. Creative Village will also be home to the UCF/Valencia Downtown Campus. Allen Morris and the Ustler Group of Companies are designing an apartment community that will appeal to the Creative Class, which includes students, entrepreneurs, employees and business owners across multiple generations. In addition to existing apartment renters, we've been studying the upcoming Generation Z (post-Millenials) to ensure the Creative Village Apartments appeal to students entering college over the next several years. UNIQUE UNIT SIZE The average unit size is 746 square feet. The smaller studio units are under supplied in the Downtown Orlando market, but proven in other dense urban settings and in high demand. We believe the smaller units will provide a unique opportunity for renters to live in a well-amenitized private apartment and still afford an "A+" location. Most Orlando apartment developers are building typical multi-family boxes with average unit sizes of 900 SQ FT and standard unit mixes (50% 1 bedroom, 40% 2-bedroom, 10% 3 bedroom). No downtown product has been built with focus on efficiently designed apartments that maximize com- mon areas and authentic shared experiences. The smaller footprint also drives a higher per square foot rate, boosting project economics. COMPETITIVE OFFERING AND PRICING Allen Morris Company and Ustler Group of Companies, Inc. are building a different, strategically positioned project with a carefully selected target market given the site location with the UCF/Valencia Downtown Campus as the anchor. Additionally, we are delivering a unique unit mix for Downtown Orlando. Market data supports actionable demand and robust absorption of Class-A amenitized apartments with a current approximate range of ($1,200-$4,000). 1) WHAT IS THE GENERAL, LOW-HIGH RANGE OF CLASS A APARTMENT RENTALS IN ORLANDO? This varies significantly based on the deal and unit type. In general, the current low-high range of Class A studios - 3 bedroom units is $1,150 - $4,500. 2) HOW DO OUR RENTS COMPARE TO THE MARKET ON A PER UNIT BASIS? Proposed rents for the Creative Village Aparments were underwritten not only with a with a focus on the monthly check amount, but with deep local in- sight into the amenity package in greatest demand. While the average monthly rent of $1,950 is approximately $200 higher than the comp average of $1,733, this spread will decrease as new prod- uct, namely CitiTower and Modera, increases rents during their lease up. Also, rents for the Creative Village Apartments are in line with 420 East, Jefferson Apartment Group’s stabilized deal in Downtown Orlando and $150 less than Summa Development’s CitiTower. The unique amenities, vibrant pedestrian location and tech focused employment will drive young business professionals and students to Creative Village. 3) WHY IS ORLANDO RENT GROWTH STRONG? While job growth in the tourism industry continues to be robust, Orlando is a diversified economy that has seen significant employment gains in health care, finance, accounting and the technology sector. The growth of UCF and Valencia College has created a pipeline of young millennials that are obtaining high-paying jobs. Orlando is adding over 1,000 jobs per week across a broad base of industries. Job growth is expelted to grow continue to by 3.3% annually, making it the fastest growing metro in the U.S.. The strength of the labor market has a direct correlation to the rental market, where occupancy has remained steady at over 96% and rental rates have increased an average of 6% in Orlando in the past year. Source: ZRS Market Survey; ZRS Management; MPF Report; Noell Consulting Group, Florida Dept. of Economic Opportunity; Axiometrics 25