RubinBrown Apartment Stats 2020

’20

APARTMENT STATS

A publication by RubinBrown LLP

Contents

RubinBrown is pleased to present the 2020 Apartment Statistical Analysis, an annual survey compiled by the Real Estate Services Group.

1 Executive Summary 3 Comparison of Operations 4 Government Assisted 8 Government Assisted by Region 10 Government Assisted by Project Size 12 Low Income Tax Credit Projects 14 Market Rate 16 RubinBrown Real Estate Services Group

Each year, data is collected from our clients, as well as other contacts and referrals within the industry, to comprise averages in a variety of markets within the United States. The accompanying statistical information includes operational data for 2019 and represents approximately 800 apartment projects in roughly 40 states. While these averages are representative of a smaller pool of projects, the trends are usually consistent with those experienced at the national level. If you have questions about the content of this publication, please contact us (see page 17 for contact information).

Disclaimer: Apartment Stats, a publication of RubinBrown LLP, is designed to provide general information regarding the subject matter covered. Although prepared by professionals, its content should not be construed as the rendering of advice regarding specific situations. If accounting, legal, or other expert assistance is needed, consult with your professional business advisor. Please call RubinBrown with any questions.

www.RubinBrown.com

RubinBrown Apartment Stats 2017

ii

EXECUTIVE SUMMARY

The Outlook for Affordable Housing by Emily Cadik, guest writer from Affordable Housing Tax Credit Coalition

The Road Ahead: What We Know There is already a slate of broadly supported, well-vetted proposals to strengthen our nation’s affordable housing poised for advancement in any political climate. Even in this period of hyper-partisanship, the Affordable Housing Credit Improvement Act, legislation to expand and strengthen the Housing Credit, has the support of more than half of the House of Representatives and more than one-third of the Senate – ranging from members of the Freedom Caucus to Democratic Socialists. Advocacy from the affordable housing community over many years (taking members of Congress to see developments and meet with residents firsthand, meeting with members of Congress and staff on Capitol Hill, and now virtually) has paid dividends in terms of the depth and breadth of support we have built. The question is not if there is support for the Housing Credit, but rather when we will get some of our top priorities across the finish line. With Democrats retaining control of the House, we know that House Democratic leadership, including Speaker Nancy Pelosi (D-CA) and House Ways and Means Chairman Richie Neal (DMA), have been committed to expanding and strengthening the Housing Credit. There also are tenacious champions for the program on both sides of the aisle in Representatives Suzan DelBene (D-WA) and Jackie Walorski (R-IN). The House has passed sweeping legislation, which has stalled in the Senate, that would make nearly a dozen changes to significantly expand and strengthen the Housing Credit while also providing $100 billion in rental assistance, which we expect to remain a priority in 2021. We also know that, regardless of which party controls the Senate, the leaders of the Senate Finance Committee that oversees the Housing Credit, current Ranking Member Sen. Ron Wyden (D-OR) and upcoming leader Sen. Mike Crapo (R-ID), are strong supporters of the Housing Credit and affordable housing generally. Whereas outgoing Senate Finance Committee Chairman Chuck Grassley (R-IA) was largely focused on oversight, there are more potential areas of overlap between Sen. Crapo and Sen. Wyden’s agendas, including housing.

The COVID-19 crisis has provided a powerful reminder of the need for a safe home, and since it began, we have seen growing political awareness of the now staggering need for affordable housing. But, the past few months have also seen excruciating legislative gridlock that has prevented even modest bipartisan solutions from advancing. Congress had initially planned for five phases of COVID-19 relief legislation, but has yet to come to an agreement on anything past the CARES Act, which was signed into law in March, meaning there are still two phases left to go. Ever since the passing of Supreme Court Justice Ruth Bader Ginsburg, the prospect for bipartisan compromise on additional relief has waned further. But, the climate in Washington changes by the hour, and there could be any of a number of events forcing parties back to the negotiating table over the coming weeks and months. Most immediately, the Affordable Housing Tax Credit Coalition and their partners are urging Congress to keep affordable housing production moving forward by enacting measures related to the Low-Income Housing Tax Credit (Housing Credit), while also providing sorely needed rental assistance to help keep renters housed. The most immediate issue facing the Housing Credit is that the so-called “4 percent” Housing Credit rate has fallen to an all-time low of 3.07% as a result of the cuts to federal borrowing rates. A minimum 4% rate is needed to allow developments to move forward. But longer term, additional resources — including an expansion and strengthening of the Housing Credit — will be needed to build more affordable housing that can stabilize the growing number of households in need and stimulate the economy. In addition to affordable housing production, there is a need for a substantial infusion of rental assistance. Though recent eviction moratoria provide a temporary reprieve for some renters, rental assistance is imperative to ensure overdue rent payments can be paid back.

Executive Summary

1

EXECUTIVE SUMMARY

And, strong Senate champions on both sides of the aisle in Sen. Maria Cantwell (D-WA) and Sen. Todd Young (R-IN). The Congressional Landscape Legislation that has already passed the Democratic House, and has the support of the Senate Democrats and the Biden team, is ready for advancement at the beginning of the next Congress. This includes House-passed COVID-19 relief legislation and infrastructure legislation, which taken together would authorize well over $200 billion in additional housing resources, including an expansion of the Housing Credit. Few facts remain clear, there is growing awareness of the need to take meaningful action on affordable housing, thoughtful legislative solutions are at the ready, and sustained advocacy and education from the affordable housing community has laid a strong foundation to make housing a key part of our nation’s recovery.

While we usually look at historical perspectives in our annual Apartment Statistics publication Executive Summary, this year, we thought it more valuable to look ahead. With COVID-19 changing all aspects of the affordable housing industry, it’s important to take a deeper look at where we go from here and how the landscape in Washington could alter the industry in the future.

Real Estate Services Blog The RubinBrown Real Estate Services Blog is a value-added approach keeping clients and contacts informed about current, relevant topics affecting the real estate industry. www.RubinBrown.com/RealEstateBlog

RubinBrown Apartment Stats 2020

2

COMPARISON OF OPERATIONS

Government Assisted

Market Rate

Total Number of Projects

787

12

Average Project Age In Years Average Number of Units

11.39

12.45

108

164

Averages Per Unit: Monthly Rent

865 910 4.47

1,092 1,087

Square Feet

Rooms

4.19

Economic Occupancy

92.1%

98.7%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

38.8%

45.9%

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

10,354

11.38

100.0%

13,101

12.05

100.0%

(822) (126)

(0.90) (0.14) (0.06)

-7.9% -1.2% -0.5% 90.4%

(172)

(0.16) (0.02) (0.04)

-1.3% -0.2% -0.3% 98.2%

Collection Loss

(24) (42)

(55)

Concession Loss

Rent Collected Other Income Total Income

9,351

10.28

12,863

11.83

611

0.67

5.9%

198

0.18

1.5%

$9,962

$ 10.95

96.3%

$13,061

$12.01

99.7%

Expenses Salaries and Personnel

1,143

1.26 0.69 0.07 0.54 1.01 0.09 0.07 0.12 0.08 0.04 0.05 0.04 1.20 0.44 0.66 0.34

11.0% 6.0% 0.6% 4.7% 8.8% 0.8% 0.6% 1.0% 0.7% 0.4% 0.5% 0.4% 3.9% 5.8% 3.0% 10.5% 58.7%

1,319

1.21 0.29 0.24 0.50 0.96 0.09 0.06 0.13 0.08 0.30 0.02 0.02 1.13 0.36 1.06 0.05

10.1%

Administrative

624

318 266 549

2.4% 2.0% 4.2% 8.0% 0.7% 0.5% 1.1% 0.6% 2.5% 0.1% 0.2% 9.4% 3.0% 8.8% 0.4%

Marketing

66

Management Fees

487 915

Utilities

1,046

Carpeting

86 62

94 65

Painting

Landscaping

108

141

HVAC

75 39 49 38

85

Appliances

322

Plumbing Electrical

19 25

Other Repairs and Services

1,088

1,228

Insurance

403 599 313

392

Real Estate Taxes

1,152

51

Other Taxes

Total Expenses

$6,095

$6.70

$7,072

$6.50

54.0%

Net Operating Income Before Debt Service and Depreciation

$3,867

$4.25

37.6%

$5,989

$5.51

45.7%

Capital Expenditures

$(142)

$(0.16)

-1.4%

$293

$0.27

2.2%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

Comparison of Operations

3

GOVERNMENT ASSISTED

2019

2018

2017

Total Number of Projects

787

736

701

Average Number of Units

108

107

105

Averages Per Unit: Monthly Rent

$865

$834

$ 767

Square Feet

910

908

923

Rooms

4.47

4.48

4.50

Economic Occupancy

92.1%

92.0%

92.3%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

38.8%

34.9%

34.5%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

10,354

11.38

100.0%

$10,010

$11.02 (0.88) (0.15) (0.07)

100.0%

$9,208

$9.98

100.0%

(822) (126)

(0.90) (0.14) (0.06)

-7.9% -1.2% -0.5% 90.4%

(801) (137)

-8.0% -1.4% -0.7% 89.9%

(708) (130)

(0.77) (0.14) (0.05)

-7.7% -1.4% -0.5% 90.4%

Collection Loss

Concession Loss

(55)

(68)

(46)

Rent Collected

9,351

10.28

9,004

9.92 0.73

8,324

9.02 0.80

Other Income

611

0.67

5.9%

667

6.7%

742

8.1%

Total Income

$9,962

$10.95

96.3%

$9,671

$10.65

96.6%

$9,066

$9.82

98.5%

Expenses Salaries and Personnel

$1,143

$1.26

11.0%

$1,117

$1.23

11.2%

$1,087

$1.18

11.8%

Administrative

624

0.69 0.07 0.54 1.01

6.0% 0.6% 4.7% 8.8%

735

0.81 0.09 0.54 1.02

7.3% 0.8% 4.9% 9.3%

735

0.80 0.08 0.50 0.96

8.0% 0.8% 5.0% 9.7%

Marketing

66

82

78

Management Fees

487 915

494 928

461 890

Utilities

All Repair, Maintenance and Contract Services

1,545

1.70

14.9%

1,595

1.75

15.9%

1,477

1.61

16.1%

Insurance

403 599 313

0.44 0.66 0.34

3.9% 5.8% 3.0%

360 703 283

0.40 0.77 0.31

3.6% 7.0% 2.8%

333 577 302

0.36 0.63 0.33

3.6% 6.3% 3.3%

Real Estate Taxes

Other Taxes

Total Expenses

$6,095

$6.70

58.7%

$6,297

$6.93

62.9%

$5,940

$6.45

64.6%

Net Operating Income Before Debt Service and Depreciation

$3,867

$4.25

37.6%

$3,374

$3.72

33.7%

$3,126

$3.37

33.9%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2020

4

AVERAGE MONTHLY RENT PER UNIT

2016

2015

$1,000

562

425

$865

$900

$834

$802

$750

$767

106

109

$800

$700

$802

$750

$600

899

951

4.50

4.41

$500

2019

2018

2017

2016

2015

92.1%

90.0%

35.4%

31.0%

ECONOMIC OCCUPANCY

100%

A

B

C

A

B

C

90%

80%

$9,514

$10.58 (0.83) (0.15) (0.10)

100.0%

$9,004

$9.47

100.0%

70%

(749) (134)

-7.9% -1.4% -0.9% 89.8%

(617) (167) (104) 8,116

(0.65) (0.18) (0.11)

-6.9% -1.9% -1.2% 90.0%

60%

(88)

50%

8,543

9.50 0.73

8.53 0.37

40%

661

6.9%

353

3.9%

30%

$9,204

$10.23

96.7%

$8,469

$8.90

93.9%

20%

10%

0%

92.0%

92.3%

92.1%

92.1%

90.0%

$1,079

$1.20

11.3%

$1,211

$1.27

13.5%

560

0.62 0.08 0.53 0.98

5.9% 0.7% 5.0% 9.2%

487

0.51 0.07 0.50 0.97

5.4% 0.7% 5.2%

2019

2018

2017

2016

2015

71

62

476 879

471 925

10.3%

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,645

1.83

17.3%

1,680

1.76

18.6%

367 578 288

0.41 0.64 0.32

3.9% 6.1% 3.0%

369 510 129

0.39 0.54 0.14

4.1% 5.7% 1.4%

$4.25 $11.38

2019

$3.72 $11.02

2018

$3.37 $9.98

$5,943

$6.61

62.4%

$5,884

$6.15

64.9%

2017

$3.63 $10.58

2016

$3,261

$3.63

34.3%

$2,625

$2.75

29.0%

$2.75 $9.47

2015

GROSS POTENTIAL RENT

NET OPERATING INCOME

Government Assisted

5

GOVERNMENT ASSISTED

EXPENSE TRENDS PER UNIT

2019

$1,143

$1,117

2018

Salaries and Personnel

$1,087

2017

2016

$1,079

2015

$1,211

$690

$817

Administrative and Marketing

$813

$631

$549

$1,545

$1,595

Contract Services and Repairs & Maintenance

$1,477

$1,645

$1,680

$1,315

$1,346

Taxes and Insurance

$876

1,212

$1,233

$1,008

$0

$250

$500

$750

$1,000 $1,250 $1,500

$1,750

RubinBrown Apartment Stats 2020

6

GOVERNMENT ASSISTED BY REGION

North

East/Northeast

Midwest

South/Southeast

Total Number of Projects

28

71

512

102

Average Project Age In Years Average Number of Units

17.26

14.62

10.93

10.68

110

121

105

95

Averages Per Unit: Monthly Rent

905 976 4.44

983 947 4.77

820 843 4.33

844 890 4.85

Square Feet

Rooms

Economic Occupancy

92.0%

92.1%

92.6%

89.3%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

35.1%

40.1%

40.0%

30.9%

A

B

C

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

10,632

10.90 100.0%

11,796

12.46 100.0%

9,799

11.63 100.0%

10,132

11.39 100.0%

(854) (0.88) (105) (0.11) (45) (0.05)

-8.0% -1.0% -0.4% 90.6%

(937) (0.99) (126) (0.13) (21) (0.02)

-8.0% -1.0% -0.4% 90.6%

(725) (0.86) (114) (0.14) (46) (0.05)

-7.4% -1.2% -0.5% 90.9%

(1,082) (1.22) -10.7%

Collection Loss

(163) (0.18) (93) (0.10)

-1.6% -0.9% 86.8%

Concession Loss

Rent Collected

9,628

9.85 0.78

10,712

11.32

8,914

10.58

8,794

9.89 0.54

760

7.1%

674

0.71

5.7%

572

0.68

5.8%

483

4.8%

Other Income

$9,486 $11.26

96.7%

$9,277 $10.43

91.6%

$10,388 $10.63

97.7% $11,386 $12.03

96.3%

Total Income

Expenses Salaries and Personnel

$1,104

$1.13

10.4% 5.9% 0.6% 4.6% 2.2% 1.5% 1.0% 0.8% 0.3% 0.6% 0.5% 3.5% 6.9% 3.3% 10.7% 10.7%

$1,148

$1.21

9.7% 5.7% 0.6% 4.6% 9.2% 1.6% 0.4% 1.1% 0.7% 0.5% 0.7% 0.5% 3.4% 6.6% 2.3%

$ 1,106

$1.31

11.3% 5.7% 0.6% 4.6% 8.5% 0.5% 0.6% 0.8% 0.8% 0.4% 0.4% 0.3% 3.7% 6.3% 3.1% 10.6%

$1,253

$1.41

12.4%

Administrative

626

0.64 0.07 0.50 1.16 0.24 0.17 0.11 0.08 0.04 0.06 0.06 1.17 0.38 0.75 0.35

667

0.70 0.07 0.58 1.15 0.20 0.05 0.14 0.09 0.06 0.09 0.06 1.26 0.42 0.83 0.28

560

0.66 0.07 0.53 0.99 0.06 0.07 0.09 0.09 0.04 0.04 0.03 1.23 0.43 0.73 0.36

808

0.91 0.07 0.60 0.97 0.12 0.09 0.20 0.10 0.05 0.07 0.06 1.12 0.50 0.48 0.45

8.0% 0.6% 5.2% 8.5% 1.1% 0.8% 1.8% 0.9% 0.5% 0.6% 0.5% 9.8% 4.4% 4.3% 3.9%

Marketing

64

70

63

62

Management Fees

486

548

449 834

531 862 108

Utilities

1,133

1,087

Carpeting

233 164 104

192

53 56 78 75 34 38 27

Painting

50

82

Landscaping

135

181

HVAC

81 37 63 57

82 61 86 59

93 48 62 50

Appliances

Plumbing Electrical

Other Repairs and Services

1,141

1,193

10.1%

1,040

996 447 431 397

Insurance

372 736 346

397 783 267

363 613 302

Real Estate Taxes

Other Taxes

Total Expenses

$6,747

$6.91 63.5%

$6,825

$7.19 57.9%

$5,691

$6.73 58.2%

$6,411

$7.20 63.3%

Net Operating Income Before Debt Service & Depreciation

$3,641

$3.72 34.2%

$4,561

$4.84 38.6%

$3,795

$4.53 38.5%

$2,866 $3.23 28.3%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2020

8

MONTHLY RENT PER UNIT

South/Southwest

West/Northwest

20

38

$905

$983

12.75

11.21

118

117

$1,283

$820

1,179 1,061

1,283

$1,179

$844

839

4.06

3.01

88.3%

94.4%

32.3%

46.3%

A

B

C

A

B

C

NET OPERATING INCOME PER SQUARE FOOT

14,151

13.33 100.0%

15,401

18.35 100.0%

$3.72

$4.84

(1,661) (1.56) -11.7%

(862) (1.03) (132) (0.16) (48) (0.06)

-5.6% -0.9% -0.3% 93.2%

(292) (0.27) (290) (0.27)

-2.1% -2.1% 84.1%

$8.59

$4.53

11,908

11.23

14,359

17.10

$3.88

$3.23

773

0.73

5.5%

1,209

1.44

7.8%

$12,681 $11.96

89.6%

$15,568 $18.54 101.0%

$1,491

$1.41

10.5%

$1,491

$1.78

9.7% 5.9% 0.3% 5.2% 0.6% 0.2% 0.9% 0.3% 0.3% 0.5% 0.3% 3.8% 1.9% 3.0%

893 206 604

0.84 0.19 0.57 1.21 0.15 0.08 0.25 0.10 0.04 0.07 0.14 1.33 0.51 0.93 0.26

6.3% 1.5% 4.3% 9.1% 1.2% 0.6% 1.8% 0.8% 0.3% 0.5% 1.1% 9.9% 3.8% 7.0% 2.0%

901

1.07 0.05 0.96 1.93 0.11 0.03 0.16 0.05 0.05 0.10 0.05 2.03 0.69 0.34 0.55

44

803

ECONOMIC OCCUPANCY

1,283

1,619

10.5%

163

93 24

92.0%

88

92.1%

261 110

133

94.4%

40 40 81 44

92.6%

44 72

88.3%

89.3%

150

1,408

1,707

11.1%

540 984 281

581 288 464

$8,578

$8.08 60.7%

$8,353

$9.95 54.5%

North

West/Northwest

South/Southeast East/Northeast

$4,103

$3.88 28.9%

$7,215

$8.59 46.5%

South/Southwest

Midwest

Government Assisted

9

GOVERNMENT ASSISTED BY PROJECT SIZE

0-50 Units

51-100 Units

101-150 Units

151-200 Units

Over 200 Units

Total Number of Projects

102

154

119

44

44

Average Project Age In Years Average Number of Units

10.86

12.46

15.24

14.61

15.25

36

77

121

176

280

Averages Per Unit: Monthly Rent

793

866 878 4.15

957 919 4.30

804 926 4.44

887 896 4.64

Square Feet

1,013

Rooms

5.08

Economic Occupancy

94.4%

93.7%

91.7%

93.6%

89.9%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

24.8%

34.0%

39.1%

34.7%

38.7%

A

B

A

B

A

B

A

B

A

B

Revenues Gross Potential Rent Less: Vacancy Loss

$9,520

$9.40

$10,398 $11.84 (651) (0.74) (153) (0.17)

$11,481 $12.49 (947) (1.03) (117) (0.13)

$9,644 $10.41 (618) (0.67) (147) (0.16)

$10,648 $11.88 (1,078) (1.20)

(534) (0.53) (200) (0.20)

Collection Loss

(188) (0.21)

(99) (0.10)

(77) (0.09)

(35) (0.04)

(21) (0.02)

(75) (0.08)

Concession Loss

Rent Collected

8,687

8.57 0.62

9,517

10.84

10,382

11.29

8,858

9.56 0.59

9,307

10.39

Other Income

626

763

0.87

544

0.59

549

939

1.05

Total Income

$9,313

$9.19

$10,280 $11.71

$10,926 $11.88

$9,407 $10.15

$10,246 $11.44

Expenses Salaries and Personnel

$1,226

$1.21

$1,307

$1.49

$1,183

$1.29

1,179

$1.27

1,209

$1.35

Administrative

826

0.82 0.03 0.53 0.89 0.08 0.08 0.19 0.11 0.06 0.05 0.05 1.28 0.55 0.70 0.30

752

0.86 0.07 0.63 1.15 0.13 0.06 0.16 0.10 0.05 0.07 0.08 1.26 0.59 0.67 0.36

645

0.70 0.07 0.61 1.19 0.19 0.09 0.15 0.09 0.06 0.07 0.05 1.25 0.43 0.65 0.34

606

0.65 0.04 0.52 1.04 0.12 0.08 0.08 0.08 0.04 0.05 0.05 1.26 0.44 0.63 0.28

477

0.53 0.10 0.54 1.02 0.12 0.08 0.12 0.09 0.04 0.07 0.04 1.18 0.49 0.97 0.27

Marketing

26

62

66

35

93

Management Fees

537 906

557

562

484 967 107

487 917 105

Utilities

1,010

1,092

Carpeting

80 81

112

176

Painting

54

81

71 71 78 38 48 42

68

Landscaping

191 108

142

141

107

HVAC

88 47 63 70

82 56 66 42

79 37 65 33

Appliances

61 54 46

Plumbing Electrical

Other Repairs and Services

1,295

1,103

1,152

1,171

1,059

Insurance

561 704 299

518 592 313

400 595 314

411 580 255

437 865 243

Real Estate Taxes

Other Taxes

Total Expenses

$7,001

$6.93

$6,790

$7.73

$6,653

$7.23

$6,143

$6.63

$6,281

$7.01

Net Operating Income Before Debt Service and Depreciation

$2,312

$2.26

$3,490

$3.97

$4,273

$4.65

$3,264

$3.52

$3,965

$4.43

Capital Expenditures

$236

$0.23

$284

$0.32

$315

$0.34

$456

$0.49

$252

$0.28

A = Dollars per unit, per year

B = Dollars per square foot, per year

RubinBrown Apartment Stats 2020

10

LOW INCOME TAX CREDIT PROJECTS

2019

2018

2017

Total Number of Projects Average Number of Units

666

595

597

107

109

107

Averages Per Unit: Monthly Rent

858 908 4.49

$833

$771

Square Feet

913

929

Rooms

4.47

4.48

Economic Occupancy

92.2%

92.7%

93.2%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

38.6$

35.0%

34.8%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$10,483

$11.55 (0.90) (0.14) (0.07)

100.0%

$9,996

$10.95 (0.80) (0.15) (0.08)

100.0%

$9,253

$9.96

100.0%

(819) (125)

-7.8% -1.2% -0.6% 90.4%

(732) (134)

-7.3% -1.3% -0.7% 90.6%

(633) (117)

(0.68) (0.13) (0.04)

-6.8% -1.3% -0.4% 91.5%

Collection Loss

(62)

(74)

(41)

Concession Loss

Rent Collected

9,477

10.44

9,056

9.92 0.72

8,462

9.11 0.78

593

0.65

5.7%

655

6.6%

723

7.8%

Other Income

$10,070

$11.09

96.1%

$9,711

$10.64

97.2%

$9,185

$9.89

99.3%

Total Income

Expenses Salaries and Personnel

$1,148

$1.26

11.0%

$1,104

$1.21

11.0%

$1,084

$1.17

11.7%

Administrative

622

0.69 0.08 0.54 1.02

5.9% 0.7% 4.7% 8.8%

700

0.77 0.10 0.55 1.01

7.0% 0.9% 5.0% 9.2%

750

0.81 0.09 0.50 0.95

8.1% 0.9% 5.0% 9.6%

Marketing

72

89

80

Management Fees

493 921

499 924

466 885

Utilities

All Repair, Maintenance and Contract Services

1,563

1.72

14.9%

1,591

1.74

15.9%

1,467

1.58

15.9%

Insurance

411 630 322

0.45 0.69 0.35

3.9% 6.0% 3.1%

364 756 286

0.40 0.83 0.31

3.6% 7.6% 2.9%

329 621 311

0.35 0.67 0.33

3.6% 6.7% 3.4%

Real Estate Taxes

Other Taxes

Total Expenses

$6,182

$6.80

59.0%

$6,313

$6.91

63.2%

$5,993

$6.45

64.9%

Net Operating Income Before Debt Service and Depreciation

$3,888

$4.29

37.1%

$3,398

$3.73

34.0%

$3,192

$3.44

34.4%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2020

12

AVERAGE MONTHLY RENT PER UNIT

2016

2015

$1,000

466 111

386

99

$858

$900

$833

$812

$771

$800

$709

$812

$709

$700

885

952

4.48

4.42

$600

$500

92.6%

90.6%

2019

2018

2017

2016

2015

36.6%

30.6%

ECONOMIC OCCUPANCY

A

B

C

A

B

C

100%

90%

$9,748

$11.01 (0.81) (0.14) (0.10)

100.0%

$8,513

$8.94

100.0%

80%

(717) (128)

-7.4% -1.3% -0.9% 90.4%

(580) (160)

(0.61) (0.17) (0.07)

-6.8% -1.9% -0.7% 90.6%

70%

(87)

(63)

60%

8,816

9.96 0.80

7,710

8.09 0.29

50%

707

7.2%

275

3.2%

40%

$9,523

$10.76

97.7%

$7,985

$8.38

93.8%

30%

20%

10%

$1,086

$1.23

11.1%

$1,172

$1.23

13.8%

0%

92.2%

92.6%

90.6%

92.7%

93.2%

570

0.64 0.09 0.55 1.01

5.9% 0.8% 5.0% 9.1%

452

0.47 0.06 0.47 0.91

5.3% 0.7% 5.3%

2019

2018

2017

2016

2015

77

57

490 892

448 862

10.1%

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,637

1.85

16.8%

1,631

1.71

19.2%

362 624 296

0.41 0.71 0.33

3.7% 6.4% 3.0%

352 451

0.37 0.47 0.13

4.1% 5.3% 1.4%

$4.29 $11.55

2018

96

$3.73 $10.95

2017

$6,034

$6.82

61.9%

$5,546

$5.82

65.2%

$3.44 $9.96

2016

$3,489

$3.94

35.8%

$2,439

$2.56

28.6%

$3.94 $11.01

2015

$2.56 $8.94

2014

NET OPERATING INCOME

GROSS POTENTIAL RENT

Low Income Tax Credit Projects

13

MARKET RATE

2019

2018

2017

Total Number of Projects Average Number of Units

12

33

18

164

198

296

Averages Per Unit: Monthly Rent

1,092 1,087

$1,383

$1,246

Square Feet

835

929

Rooms

4.19

4.03

4.38

Economic Occupancy

98.7%

89.5%

93.7%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

45.9%

50.3%

53.3%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$13,101

$12.05 (0.16) (0.02) (0.04)

100.0%

$16,598

$19.88 (2.09) (0.24) (0.10)

100.0% -10.5% -1.2% -0.5% 87.8%

$14,946

$16.09 (1.01) (0.15) (0.04)

100.0%

(172)

-1.3% -0.2% -0.3% 98.2%

(1,746)

(938) (138)

-6.3% -0.9% -0.2% 92.6%

Collection Loss

(24) (42)

(201)

(81)

(35)

Concession Loss

Rent Collected

12,863

11.83

14,570

17.45

13,835

14.89

198

0.18

1.5%

1,123

1.34

6.8%

245

0.26

1.6%

Other Income

$13,061

$12.01

99.7%

$15,693

$18.79

94.5%

$14,080

$15.15

94.2%

Total Income

Expenses Salaries and Personnel

$1,319

$1.21

10.1%

$934

$1.12

5.6% 4.7% 1.8% 3.9% 5.3%

$763

$0.82

5.1% 5.8% 1.0% 3.0% 5.0%

Administrative

318 266 549

0.29 0.24 0.50 0.96

2.4% 2.0% 4.2% 8.0%

788 301 648 883

0.94 0.36 0.78 1.06

870 151 452 745

0.94 0.16 0.49 0.80

Marketing

Management Fees

Utilities

1,046

All Repairs and Maintenance and Contract Services

1,979

1.82

15.1%

1,791

2.15

10.8%

1,813

1.95

12.1%

Insurance

392

0.36 1.06 0.05

3.0% 8.8% 0.4%

325

0.39 2.24 0.30

2.0%

232 996 547

0.25 1.07 0.59

1.6% 6.7% 3.7%

Real Estate Taxes

1,152

1,871

11.3%

51

254

1.5%

Other Taxes

Total Expenses

$7,072

$6.49

54.0%

$7,795

$9.34

47.0%

$6,569

$7.07

44.0%

Net Operating Income Before Debt Service and Depreciation

$5,989

$5.52

45.7%

$7,898

$9.45

47.6%

$7,511

$8.08

50.2%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2020

14

AVERAGE MONTHLY RENT PER UNIT

2016

2015

$2,000

28

31

288

266

$1,383, ,

$1,600

$1,246

$1,092

$949

$1,200

$897

$949

$897

$800

943

926

4.24

3.60

$400

$0

90.7%

87.3%

2019

2018

2017

2016

2015

50.0%

50.3%

ECONOMIC OCCUPANCY

A

B

C

A

B

C

100%

90%

$11,383

$12.07 (1.12) (0.13) (0.22)

100.0%

$10,763 $11.62 100.0%

80%

(1,057)

-9.3% -1.1% -1.8% 87.9% 11.4%

(929) (101) (334)

(1.00) (0.11) (0.36)

-8.6% -0.9% -3.1% 87.4%

70%

(121) (203)

60%

10,002

10.61

9,399 $10.15

50%

1,294

1.37

945

1.02

8.8%

40%

$11,296

$11.97

99.2%

$10,345 $11.17

96.2%

30%

20%

10%

$649

$0.69

5.7% 5.1% 1.4% 4.0% 6.1%

$1,044

$1.13

9.7% 4.5% 1.6% 4.4% 6.0%

88.6% 7 3

0%

92.1% 98.7%

90.0% 89.5%

89.1% 93.7%

90.8% 90.7%

580 164 459 695

0.62 0.17 0.49 0.74

480 168 476 648

.52 .18 .51 .70

2019

2018

2017

2016

2015

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,591

1.69

14.0%

939

1.01

8.7%

224

0.24 1.12 0.24

2.0% 9.3% 2.0%

279

.30

2.6% 9.3% 0.9%

$5.52 $12.05

1,053

1,005

1.09 0.10

2018

231

96

$9.45 $19.88

2017

$5,646

$5.98

49.6%

$5,135

$5.54

47.7%

$8.08 $16.09

2016

$5,650

$5.99

49.6%

$5,208

$5.62

48.4%

$5.99 $12.07

2015

$5.62 $11.62

2014

NET OPERATING INCOME

GROSS POTENTIAL RENT

Market Rate

15

RUBINBROWN REAL ESTATE SERVICES GROUP

Affordable Housing This complex and highly regulated industry has been one that we have focused on since the early days of HUD and the advent of the federal low-income housing tax credit program. Historic Tax Credit Services Our team has extensive experience with consulting on historic rehabilitation projects across the country. New Markets Tax Credit Services In addition to initial program guidance and consulting, our experts can help you with NMTC application assistance. Opportunity Zones This incentive program was created by the Tax Cuts & Jobs Act of 2017 and is designed to bring growth to communities across the country. Our team of opportunity zone experts can help guide you through the complexities of the program by helping with transaction structuring, compliance, tax and accounting. Renewable Energy There are many new financial incentives for companies in the renewable energy sector. We can help you sort through the opportunities and provide financial guidance to move your businesses forward.

For more than 30 years, RubinBrown’s Real Estate Services Group has developed a strong reputation nationally as a leader in accounting and advisory services. Today, the group provides specialized services to real estate entities from coast to coast. RubinBrown’s Real Estate Services Group provides a full range of assurance, tax, business planning and consulting services to:

· Investment funds · Real estate partnerships · Developers

· Management companies · Governmental agencies · Syndicators and investors · Financial institutions · Construction-related companies

Through the years, our clients have grown to depend on our expertise in five key areas of the real estate sector including affordable housing, historic tax credit services, new markets tax credit services, opportunity zones and renewable energy.

RubinBrown Apartment Stats 2020

16

RubinBrown Real Estate Services Group’s services include:

Tim Anderson, CPA Partner | St. Louis 314.678.3545 tim.anderson@rubinbrown.com Dave Herdlick, CPA Partner & Vice Chair | St. Louis 314.290.3383 dave.herdlick@rubinbrown.com Bryan Keller, CPA, CGMA Partner-In Charge |St. Louis 314.290.3341 bryan.keller@rubinbrown.com Jeff Cunningham, CPA Partner | Denver 303.952.1257 jeffrey.cunningham@rubinbrown.com Chris Langley, CPA Partner | Chicago 847.972.5964 chris.langley@rubinbrown.com

· Transaction and tax consulting services · Assurance and accounting services · Financial projections · Complex deal structuring · Capital adjuster calculations · Cost certifications

· Affordable Housing consulting and compliance · Historic Tax Credit consulting and compliance · New Markets Tax Credit consulting and compliance · Renewable Energy consulting and compliance · Opportunity Zone consulting and compliance · HUD audit and consulting services · Deal exit consulting and troubled project workouts · Nonprofit consulting and compliance · Capital asset segregation analysis · Sales and Use tax consulting · Business valuations and appraisals · Design and evaluation of financial reporting and internal control systems

RubinBrown Real Estate Services Group

17

1.800.678.3134 www.RubinBrown.com

@RubinBrown RubinBrown LLP

Founded in 1952, RubinBrown is one of the nation’s leading accounting and professional consulting firms with a commitment to building personal relationships with clients. The RubinBrown name and reputation are synonymous with experience, integrity and value. RubinBrown helps clients build and protect value, while at all times honoring the responsibility to serve the public interest.

RubinBrown is an independent member of Baker Tilly International, a high-quality, dedicated network of 125 independent firms in 147 countries.