apartment 2015 year in review - matthews · cap rates by market tier * cppi year-over-year changes...

OFFICE

Apartment 2015 Year in Review• The boom in apartment investing continued in

2015 with volume up 32% yoy on sales of $150b. In most years, transaction volume for the office sector is ahead of that for the apartment sector but more capital was invested in the apartment sector than any other in 2015.

• In many sectors, strong growth in portfolio sales and entity level deals provided the lift to volume for 2015. For the apartment sector however, growth in the sale of individual assets was still strong, up 28% yoy. Granted, this figure includes the $5.3b Stuyvesant Town transaction, but even taking out this deal, volume would be up 22% yoy. This growth in single asset sales is significant as it indi-cates ongoing confidence in the sector by a broad base of investors.

• Deal volume grew in 2015 even as prices contin-ued to rise. Initial estimates of the Moody’s/RCA CPPITM suggest that prices increased 13% yoy. This growth is not bad, but it is the weakest year of price growth since 2010. With cap rates for the highest quality assets seeming to hit a floor, price growth is beginning to moderate.

• Deal volume was in the high double digits for all apartment subtypes and deal structures in 2015. Garden apartment sales grew 38% yoy on sales of $98b. The sale of individual assets was up 28% yoy on $70b in deal volume. Portfolio and entity level transactions grew at a 69% yoy pace. In the mid/highrise space, deal volume grew 26% yoy for single asset sales and 13% for the mega-deals. Total sales of mid/high-rise assets came in at $52b for the year.

Apartment Annual Sales Volume and Pricing Trends

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*RCA CPPI starts at 100 in December 2000; 2015 RCA CPPI results are preliminary

Apartment Transaction Summary ($B)

Yr Individual Portfolio Entity Total

‘12 $63.6 $14.2 $9.8 $87.7‘13 $64.4 $38.1 $1.1 $103.6‘14 $85.5 $22.9 $4.9 $113.2‘15 $109.2 $27.4 $13.4 $150.0

YEAR IN REVIEW 2015• Year in Review � � � � � � 1• Sector Trends � � � � � � � �2• Market Tiers � � � � � � � �3• Most Active Markets � � � �4• Cross Border Capital � � �5• Top Apartment Transactions �6

• Top Buyers & Sellers � � � �7• Market Table � � � � � � 8-9• Selected Transactions � 10-11• Top Brokers � � � � � � � � 12• Notes & Methodology � � 13

1©2016 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.

2015 YEAR IN REVIEW P U B L I S H E D J A N U A R Y 2 0 1 6

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Quarterly Volume & Pricing Trends

Sector Trends• Deal volume for most property sectors experienced

a pronounced slowdown and even periods of falling growth in volume in H2’15. The apartment sector did experience slowing growth, only 25% yoy growth in H2’15 vs. 43% yoy growth in H1’15, but even with a slowdown volume was still healthy.

• Into December deal volume grew at a 54% yoy pace on sales of $21.6b. This growth came after a disap-pointing 15% yoy slide in deal volume in November. Granted, $5.3b of the deal volume in December came from the Stuyvesant Town transaction. Even without this deal though, volume would have been up 16% yoy in December.

• Cap rates were down 30 bps yoy in Q4’15 for the apartment sector overall. There is still ongoing down-ward pressure on averages but for the highest quality assets, cap rates have hit a floor.

• For the mid/high rise space, cap rates were down 40 bps yoy in Q4’15 to hit 4.8% but this decline is mostly noise. The flat trends for the top 10% of assets in this subtype are more indicative and have traded in a 10 bps band around 3.4% since mid-year 2014.

• Cap rates in the garden apartment subtype are down 20 bps yoy for both the market average and for the top 10% of assets. Despite a bit of period to period noise, cap rates are not quite yet flattening for this subtype as they have for the mid/highrise subtype.

Transaction Volume

Year-over-Year Change

Garden All ApartmentCap Rates

Mid/High-rise

billions billions billions

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'09 '10 '11 '12 '13 '14 '15

Avg Cap RateTop Decile Cap Rate

'09 '10 '11 '12 '13 '14 '153.0%

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'09 '10 '11 '12 '13 '14 '15


2015 YEAR IN REVIEW

Summary of Market Indicators for 2015Volume RCA CPPI Price Averages

Sector/Region $M YOY Change #Props YOY

ChangeYOY*

ChangePeak**to Now $/Unit Cap

RateYOY

Change (bps)

US Apartment $149,990 32% 7,972 16% 13% 38% $136,130 5.9% -18US Garden $98,424 38% 6,052 19% $104,513 6.1% -24US Mid/Highrise $51,566 23% 1,920 6% $269,435 5.1% -2

6-Major-Metro Apartment $57,192 36% 2,886 12% 14% 61% $260,420 4.9% -11

Non-Major-Metro Apartment $92,798 30% 5,086 18% 12% 24% $101,834 6.4% -20

US Garden Apartment $98,424 38% 6,052 19% $104,513 6.1% -246-Major-Metro Garden $22,997 60% 1,537 21% $186,061 5.0% -18Non-Major-Metro Garden $75,427 32% 4,515 19% $91,845 6.5% -20

US Mid/Highrise Apartment $51,566 23% 1,920 6% $269,435 5.1% -2

6 Major Metro Mid/Highrise $34,195 24% 1,349 2% $335,546 4.7% -5Non-Major-Metro Mid/Highrise $17,371 21% 571 15% $184,904 5.7% -16

US Apartment $149,990 32% 7,972 16% 13% 38% $136,130 5.9% -18Northeast/Mid-Atlantic $44,724 61% 1,815 14% $241,745 5.6% 12Southeast $30,684 31% 1,599 22% $94,527 6.5% -27

Midwest $11,214 27% 849 22% $89,920 6.7% -52

Southwest $28,780 11% 1,456 3% $102,338 6.5% -9

West $31,232 15% 2,174 16% $182,758 5.1% -18

US Apartment $149,990 32% 7,972 16% 13% 38% $136,130 5.9% -18US Office $145,849 16% 5,800 13% 14% 18% 6.8% -10US Industrial $76,536 54% 7,397 33% 6% 3% 6.8% -29

US Retail $87,643 1% 7,211 -12% 13% -1% 6.5% -23

US Hotel $49,383 42% 2,341 26% 16% 4% $158,517 8.3% 19

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All Apartment Cap Rate

Major Metro Secondary Tertiary

Cap Rates by Market Tier

* CPPI Year-over-year changes measure price movement between Q4’14 and Q4’15; ** Peak defined as Q4’07. 2015 RCA CPPI results are preliminary.

• Cap rates for apartment assets have generally hit a floor in the 6 Major Metros. The data shows a little bit of a drop into December of 2015, but that move is not yet strong enough to say that it is not just monthly noise. In general, cap rates for the 6 Major Metros hit an average 5% floor in mid-year 2014.

• There does seem to be some ongoing cap rate com-pression in the secondary markets and a narrowing of the spread to cap rates for comparable product in the 6 Major Metros.

• The spread between cap rates for mid/highrise assets in secondary markets and the 6 Major Metros peaked at 140 bps in 2014 but came in as secondary cap rates compressed and was flat in the 75 bps range for 2015. With garden apartments the spread continued to narrow to below the 120 bps range by year end. The spread was in the 60 to 80 bps range as recently as 2011.

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All Apartment Cap Rate

Major Metro Secondary Tertiary


2015 YEAR IN REVIEW

2009 2010 2011 2012 2013 2014 2015 Market 2015 Sales Volume ($M) YOY Change

2 1 1 1 1 1 1 Manhattan 13,829,760,367$ 41%4 3 4 3 3 3 2 Dallas 7,905,109,927$ 28%1 2 2 2 2 2 3 Los Angeles 7,554,363,883$ 7%5 8 7 5 6 4 4 Atlanta 6,295,191,684$ 6%7 6 9 10 7 6 5 NYC Boroughs 5,867,934,362$ 20%8 5 3 6 4 25 6 DC VA burbs 5,182,532,337$ 299%

13 12 12 7 8 7 7 Seattle 4,867,663,144$ 16%16 24 8 8 12 8 8 Denver 4,671,560,854$ 27%3 4 5 4 5 5 9 Houston 4,317,550,709$ -21%9 14 6 12 10 10 10 Chicago 3,913,984,706$ 42%

18 20 11 13 11 20 11 Boston 3,879,735,351$ 155%6 7 10 9 9 9 12 Phoenix 3,797,996,260$ 33%

31 23 27 25 33 29 13 Baltimore 3,134,034,069$ 169%23 25 20 11 17 12 14 Austin 3,095,027,540$ 29%19 11 14 22 23 19 15 No NJ 2,517,055,916$ 53%22 18 22 29 16 15 16 Orlando 2,508,504,964$ 44%20 26 19 20 21 13 17 Raleigh/Durham 2,476,415,812$ 27%15 21 17 18 24 18 18 Tampa 2,468,000,514$ 47%11 16 18 21 15 16 19 San Diego 2,398,102,927$ 38%14 17 15 14 13 11 20 San Francisco 2,231,794,212$ -19%12 9 13 16 18 24 21 DC MD burbs 2,189,988,336$ 58%24 28 24 28 28 21 22 Portland 2,128,191,010$ 45%52 34 31 31 29 31 23 Philadelphia 2,115,978,948$ 98%29 19 30 24 35 37 24 Broward 1,922,061,440$ 143%34 27 21 23 25 30 25 Inland Empire 1,828,753,984$ 68%54 41 28 26 22 28 26 Charlotte 1,731,731,493$ 38%10 10 29 19 30 22 27 Orange Co 1,711,594,723$ 20%28 36 26 30 27 26 28 San Antonio 1,680,228,420$ 30%21 33 23 15 20 17 29 San Jose 1,425,272,189$ -18%30 35 43 37 40 36 30 Sacramento 1,367,997,161$ 68%27 30 16 27 19 14 31 East Bay 1,364,395,718$ -26%38 40 36 34 32 27 32 Nashville 1,317,308,629$ 3%26 15 25 17 14 23 33 DC 1,278,398,830$ -10%60 49 35 36 26 32 34 Las Vegas 1,189,885,119$ 24%17 13 34 35 34 41 35 Miami 1,136,678,455$ 95%42 76 42 46 42 42 36 Kansas City 1,041,590,183$ 80%32 22 40 33 38 39 37 Palm Beach 1,037,390,967$ 73%35 38 39 41 37 33 38 Minneapolis 980,289,956$ 2%74 39 81 56 60 72 39 Long Island 926,908,297$ 403%53 44 50 40 41 45 40 Detroit 891,337,087$ 84%

Rankings

$13,830$7,905$7,554

$6,295$5,868

$5,183$4,868$4,672$4,318

$3,914$3,880$3,798

$3,134$3,095

$2,517$2,509$2,476$2,468$2,398$2,232$2,190$2,128$2,116$1,922$1,829$1,732$1,712$1,680$1,425$1,368$1,364$1,317$1,278$1,190$1,137$1,042$1,037$980$927$891

41%28%

7%6%20%

299%16%27%

-21%42%

155%33%

169%29%53%44%

27%47%38%

-19%58%

45%98%

143%68%

38%20%30%

-18%68%

-26%3%

-10%24%

95%80%73%

2%

84%403%

Top 40 Apartment Markets of 2015

• The top markets for deal volume in 2015 include a mix of the 6 Major Metros and large secondary mar-kets. Dallas and Atlanta both hit the top five list and are usually favorite destinations for garden apart-ment investments. Both of these markets are gaining ground though with Dallas usually at a #3 or #4 slot and Atlanta more of a #5 or #6.

• Big movements down in the rankings were seen in Houston and in the markets of the San Francisco Metro Area. The drivers of these downward moves are

somewhat different. In Houston, growing concerns about the economic fundamentals have led investors to hold product back from sale for fear of not obtain-ing optimal prices at the moment.

• In the San Francisco Metro Area, by contrast, the issue is more one of price resistance. Strong demand is pushing up prices to a degree that is making poten-tial buyers really sharpen their pencils before getting into investments here.

Most Active Markets of 2015

* Percentage gains truncated at 400%


2015 YEAR IN REVIEW

Cross Border Capital Summary Cross Border Capital by Region of Origin:

US Apartment Investment

Top Countries for Cross Border Apartment Investment ($B)

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'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Canada Europe Middle EastAsia Australia Latin America

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Canada

United Kingdom

Israel

China

Bahrain

Sweden

Kuwait

Qatar

Switzerland

Singapore

Top 10 Cross Border Apartment Investors ($B)

Market Acq (in $M)

#Props

% of Total Acq

1 Manhattan $6,311.4 10 46%2 Dallas $1,061.4 31 13%3 Atlanta $694.0 20 11%4 DC VA burbs $614.6 6 12%5 US Other $575.1 11 17%6 Phoenix $508.7 25 13%7 Houston $470.1 14 11%8 Los Angeles $448.1 8 6%9 Raleigh/Durham $388.6 10 16%10 San Francisco $353.2 21 16%11 Seattle $342.0 14 7%12 DC MD burbs $309.3 7 14%13 Boston $281.5 7 7%14 Detroit $229.7 10 26%15 Tertiary Southeast $217.3 10 2%16 NYC Boroughs $217.3 11 4%17 Orlando $213.1 5 8%18 Denver $200.2 8 4%19 DC $196.0 1 15%20 Miami $174.1 7 15%

• Foreign buyers were particularly active in the US property market in 2015 and activity in the apart-ment sector was no exception. Deals where foreign buyers were involved grew 180% in 2015.

• Much of this growth came from Canadian investors and Stuyvesant Town changes the picture here as this deal was a JV between Blackstone and Ivanhoe Cam-bridge. Even without this transaction, Canadian buy-ers would still be in the lead for the year with the $2.5b acquisition of Associated Estates by Brookfield con-tributing to much of the Canadian deal flow.

• Even if one excludes the Canadian buyers, deal vol-ume tied to foreign buyers was up 81% in 2015. Euro-pean investors were involved in deals totaling $1.8b for the year putting these buyers in the #2 slot behind the Canadians. As is true in most years, the United Kingdom leads the list of European buyers. Swedish and Swiss investors come in behind but with no one big portfolio driving all of the volume.

• Despite concerns about waning petro wealth in the Middle East, buyers from this region were the third most active in 2015 with involvement in apartment deals totaling $1.6b. Investors from Qatar and Bah-rain lead this group with a number of portfolio deals boosting this volume.

Top Market Destinations for Cross Border Apartment Investment


2015 YEAR IN REVIEW

Methodology Rankings are based on the pro-rated share of the total property or portfolio value. Transactions $2.5M and greater. See notes page for full methodology.

Top Buyers by Region*

Mid-Atlantic Lone Star

UDRBrookfield AM

Dweck Properties LtdCBRE Global Investors 0

Midwest Lone Star

Brookfield AMHeitman

Weidner Apt HomesSolomon Organization 0 Northeast

BlackstoneCaisse de Depot

Lone StarFairstead CapitalA&E Real Estate 0

Southeast Cortland Partners

Carroll OrganizationBrookfield AM

Blackstone

Independence Realty Trust0 Southwest

BlackstoneStrata Equity Group

Steadfast Apartment REITClarion PartnersJackson Square 0

West TruAmerica Multifamily

Guardian Life Insurance CoBlackstone

AllstateEssex Property Trust

*ranked by investment volume

Top 25 by Investment Volume

Top 15 by Number of Properties

SellersBuyers

SellersBuyers

(in Billions)

$0 $6 $12Dweck Properties LtdMaximus RE Partners

Fairstead CapitalStarwood Capital Group

Essex Property TrustIntercontinental RE

Fowler Property AcquisitionsTIAA-CREF

Greystar RE PartnersAllstate

Rockpoint GroupCarroll Organization

Steadfast Apartment REITCBRE Global Investors

Cortland PartnersUDR

HeitmanStrata Equity Group

Guardian Life Insurance CoTruAmerica Multifamily

Brookfield AMClarion PartnersCaisse de Depot

Lone StarBlackstone

$0 $5 $10Mill Creek Residential

Berkshire Property AdvisorsPrincipal Financial

CapriMcDowell Properties

Harbor Group Int'lFederal Capital

Related CompaniesAngelo Gordon

Invesco REWood Partners

BlackstoneBrookfield AM

Ares ManagementHolland Partners

Fairfield ResidentialPraedium Group

Associated EstatesGreystar RE Partners

Gables ResidentialWachoviaCOBALT

WachoviaML-CFC

Home Properties

0 90 180Campus Crest

A&E Real EstateCortland Partners

Prana InvestmentsStrata Equity Group

Kennedy WilsonGHC Housing Prtrs

Fowler Property AcquisitionsTruAmerica Multifamily

Guardian Life Insurance CoBrookfield AMChetrit Group

Clarion PartnersLone Star

Blackstone

0 60 120AIG

Winthrop Realty TrustCarlyle Group

Westbrook PartnersNormandy RE Partners

Fowler Property AcquisitionsFairfield Residential

Fannie MaeGE Capital

Greystar RE PartnersAssociated Estates

Empire American HoldingsGables Residential

Praedium GroupHome Properties

Top 25 Property SalesTransaction Location Inv Vol ($M)* Units PPU Buyer

1 Peter Cooper Village & Stuyvesant Town New York, NY $5,300.0 11,232 $471,866 Blackstone JV Caisse de Depot

2 The Belnord (2FL-14FL) New York, NY $575.0 215 $2,674,419 HFZ Capital Group

3 Tower Two at One Rincon Hill San Francisco, CA $410.0 298 $1,375,839 Maximus RE Partners JV Rockpoint Group

4 OneEleven Chicago, IL $328.2 504 $651,240 Heitman

5 184 Kent Brooklyn, NY $275.0 338 $813,609 Rockpoint Group JV Kushner Companies

6 1 MiMA Tower (50FL-63FL) New York, NY $260.8 151 $1,727,152 Kuafu Properties JV Shanghai Const Grp

7 The Horizons At Rock Creek Louisville, CO $251.7 1,206 $208,679 Bell Partners

8 Sharon Green Menlo Park, CA $245.0 296 $827,703 Deutsche AWM - US JV Maximus RE Partners

9 Premiere on Pine Seattle, WA $241.7 386 $626,248 Heitman

10 Somerset Park Apartments Troy, MI $216.0 2,226 $97,035 Solomon Organization

11 Trilogy NoMa Washington, DC $213.0 603 $353,234 CBRE Global Investors JV JBG Cos

12 Atmark Apartments Cambridge, MA $207.7 428 $485,322 AEW Capital

13 8th & Hope Los Angeles, CA $200.0 290 $689,655 Essex Property Trust

14 Twenty 20 Northpoint Cambridge, MA $197.0 355 $554,930 Prudential RE Investors

15 Residences at The Avenue Washington, DC $196.0 335 $585,075 Wafra

16 The Gramercy At Metropolitan Park Arlington, VA $190.0 399 $476,190 Dweck Properties Ltd

17 West Village Durham, NC $187.0 453 $412,804 The Connor Group

18 Monterey at Park New York, NY $179.0 238 $752,101 Thor Equities JV Sun Equity Partners

19 The Epic (12FL-58FL) New York, NY $169.6† 458 $740,751 Rockpoint Group

20 250N10 Brooklyn, NY $169.0 234 $722,222 TIAA-CREF

21 The Petersfield New York, NY $167.5 199 $841,709 Akelius Fastigheter AB

22 The Wellington Arlington, VA $167.0 711 $234,880 WRIT

23 future Motif Woodland Hills, CA $163.0 395 $412,658 Intercontinental RE JV TruAmerica Multifamily

24 The Bridge Hayward, CA $158.0 544 $290,441 Phoenix Realty Group

25 2116 Chestnut Philadelphia, PA n/a 321 n/a CBRE Global Investors

Top 10 Portfolio SalesTransaction Location Inv Vol ($M)* Units PPU Buyer

1 Home Properties Buyout 2015 Multiple, United States $7,223.5 n/a n/a Lone Star

2 Gables Buyout 2015 Multiple, United States $2,980.7† n/a n/a Clarion Partners

3 Associated Estates Buyout 2015 Multiple, United States $2,482.0† 12,969 $192,767 Brookfield AM

4 Greystar Real Estate Apartment Portfolio 2015 Multiple, United States $2,000.0 n/a n/a Blackstone

5 Home Properties Apt Portfolio 2015 Mid-Atlantic $900.0 3,246 $277,572 UDR

6 Caiola Family Resi Portfolio 2015 New York, NY $692.5 997 $694,584 Blackstone JV Fairstead Capital

7 Trade Street Residential Buyout Multiple, United States n/a 4,989 n/a Independence Realty Trust

8 Blackstone Apt Portfolio 15 Multiple, United States $614.4 4,600 $141,304 Strata Equity Group

9 JH Real Estate So Cal Apt Portfolio 2015 Multiple, CA $481.9 2,664 $180,649 TruAmerica Multifamily JV Guardian Life Insurance Co

10 Brookfield VA Apartment Portfolio 2015 DC VA burbs $433.5 2,175 $213,218 Redbrick Partners JV David Werner RE

* 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

Top Apartment Transactions of 2015


2015 YEAR IN REVIEW

Methodology Rankings are based on the pro-rated share of the total property or portfolio value. Transactions $2.5M and greater. See notes page for full methodology.

Top Buyers by Region*

Mid-Atlantic Lone Star

UDRBrookfield AM

Dweck Properties LtdCBRE Global Investors 0

Midwest Lone Star

Brookfield AMHeitman

Weidner Apt HomesSolomon Organization 0 Northeast

BlackstoneCaisse de Depot

Lone StarFairstead CapitalA&E Real Estate 0

Southeast Cortland Partners

Carroll OrganizationBrookfield AM

Blackstone

Independence Realty Trust0 Southwest

BlackstoneStrata Equity Group

Steadfast Apartment REITClarion PartnersJackson Square 0

West TruAmerica Multifamily

Guardian Life Insurance CoBlackstone

AllstateEssex Property Trust


Top 25 by Investment Volume


SellersBuyers

SellersBuyers

(in Billions)

$0 $6 $12Dweck Properties LtdMaximus RE Partners

Fairstead CapitalStarwood Capital Group

Essex Property TrustIntercontinental RE

Fowler Property AcquisitionsTIAA-CREF

Greystar RE PartnersAllstate

Rockpoint GroupCarroll Organization

Steadfast Apartment REITCBRE Global Investors

Cortland PartnersUDR

HeitmanStrata Equity Group

Guardian Life Insurance CoTruAmerica Multifamily

Brookfield AMClarion PartnersCaisse de Depot

Lone StarBlackstone

$0 $5 $10Mill Creek Residential

Berkshire Property AdvisorsPrincipal Financial

CapriMcDowell Properties

Harbor Group Int'lFederal Capital

Related CompaniesAngelo Gordon

Invesco REWood Partners

BlackstoneBrookfield AM

Ares ManagementHolland Partners

Fairfield ResidentialPraedium Group

Associated EstatesGreystar RE Partners

Gables ResidentialWachoviaCOBALT

WachoviaML-CFC

Home Properties

0 90 180Campus Crest

A&E Real EstateCortland Partners

Prana InvestmentsStrata Equity Group

Kennedy WilsonGHC Housing Prtrs

Fowler Property AcquisitionsTruAmerica Multifamily

Guardian Life Insurance CoBrookfield AMChetrit Group

Clarion PartnersLone Star

Blackstone

0 60 120AIG

Winthrop Realty TrustCarlyle Group

Westbrook PartnersNormandy RE Partners

Fowler Property AcquisitionsFairfield Residential

Fannie MaeGE Capital

Greystar RE PartnersAssociated Estates

Empire American HoldingsGables Residential

Praedium GroupHome Properties

Top Apartment Buyers & Sellers of 2015


2015 YEAR IN REVIEW

Market Table: 2015 Summary - GardenVolume Pricing

Transactions Reported Closed Full Year 2015 Vol ($M) YOY

Change # Props YOY Change Low PPU High Low Avg Cap

Rate High

Mid-AtlanticBaltimore $2,667.2 206% 49 40% $26,957 $126,495 $227,551 5.2% 6.2% 7.8%DC 72.9 0% 12 9% 49,451 83,893 233,333 DC MD burbs 1,299.5 43% 39 34% 62,799 109,810 196,759 2.0% 6.2% 12.4%DC VA burbs 2,468.8 635% 29 263% 49,797 204,768 295,455 4.4% 5.8% 10.5%Philadelphia 1,277.8 238% 43 65% 47,026 153,935 215,330 4.8% 5.7% 6.7%Pittsburgh 6.6 -89% 4 -20% 5.4% 6.2% 7.3%Richmond/Norfolk 732.1 40% 70 84% 7,818 71,705 199,457 5.9% 6.8% 9.0%Tertiary Mid-Atlantic 998.2 35% 84 27% 24,074 80,652 414,943 3.6% 6.7% 12.1%Total $9,523.2 145% 330 51% $7,818 $119,201 $414,943 2.0% 6.4% 12.4%

MidwestChicago 1,973.0 35% 125 34% 19,038 112,796 398,760 3.0% 6.0% 9.5%Cincinnati 160.2 -34% 17 -29% 15,071 51,167 130,208 6.1% 6.8% 7.6%Cleveland 218.7 133% 23 130% 27,941 46,568 63,209 6.4% 7.5% 9.4%Columbus 500.7 -37% 52 6% 8,268 48,339 170,833 5.8% 7.4% 11.0%Detroit 793.6 76% 48 23% 23,148 78,790 163,125 3.6% 7.0% 10.0%Indianapolis 435.6 55% 35 30% 9,235 64,016 134,091 5.1% 6.6% 8.3%Kansas City 855.8 72% 57 36% 30,147 76,362 164,450 3.7% 6.3% 9.9%Minneapolis 478.5 -24% 44 -24% 38,532 109,407 584,239 5.5% 5.9% 6.5%St Louis 392.1 71% 35 52% 24,232 71,370 313,636 5.7% 7.5% 12.3%Tertiary Midwest 2,065.2 23% 240 26% 7,692 55,670 280,769 3.4% 6.9% 11.4%Total $7,873.3 24% 676 22% $7,692 $72,202 $584,239 3.0% 6.8% 12.3%

NortheastBoston 1,759.4 222% 64 60% 54,167 216,613 619,841 3.9% 5.0% 6.2%Hartford 107.8 -23% 10 -68% 51,316 115,269 220,256 4.7% 6.6% 8.3%Long Island 900.1 2141% 22 267% 107,692 161,262 254,167 4.1% 5.3% 6.3%Manhattan No NJ 1,903.5 288% 77 71% 35,313 166,621 561,083 5.2% 6.4% 7.6%NYC Boroughs 382.7 -7% 50 194% 47,826 179,154 576,923 3.0% 5.5% 8.3%Stamford 112.9 -55% 14 27% 35,938 138,877 843,750 4.5% 5.9% 8.8%Westchester 128.6 -39% 9 -55% 60,058 144,225 300,000 5.0% 5.7% 6.4%Tertiary Northeast 502.9 1% 50 14% 29,750 77,117 265,954 5.0% 6.8% 11.5%Total $5,797.7 124% 296 38% $29,750 $152,180 $843,750 3.0% 6.2% 11.5%

SoutheastAtlanta 4,694.0 18% 227 14% 7,440 83,034 235,000 4.5% 6.5% 10.3%Broward 1,348.6 142% 49 32% 49,412 150,025 462,500 5.0% 6.3% 8.2%Charlotte 1,346.8 15% 61 -3% 25,490 90,903 267,073 3.6% 6.2% 9.2%Jacksonville 685.6 -10% 42 -7% 23,641 70,845 147,280 5.2% 6.8% 12.8%Memphis 308.5 -20% 28 17% 7,359 43,269 123,913 3.8% 6.3% 7.5%Miami 614.6 41% 90 25% 50,000 138,024 975,610 1.7% 5.0% 7.7%Nashville 1,048.6 16% 59 20% 39,029 94,928 500,855 3.2% 6.2% 7.5%Orlando 2,222.0 36% 82 21% 20,213 104,246 328,054 5.1% 6.4% 11.7%Palm Beach 923.4 76% 40 74% 25,000 133,829 380,435 4.7% 6.3% 8.6%Raleigh/Durham 1,946.9 29% 77 22% 43,125 113,922 412,804 5.2% 5.9% 7.2%Tampa 2,166.4 53% 116 51% 18,414 87,023 204,717 3.2% 6.6% 11.3%Tertiary Southeast 7,835.7 38% 576 26% 3,400 72,179 496,324 2.8% 6.8% 12.8%Total $25,141.2 32% 1,447 23% $3,400 $86,019 $975,610 1.7% 6.5% 12.8%

SouthwestAustin 2,417.1 27% 106 18% 51,940 113,982 256,000 3.3% 5.7% 6.6%Dallas 6,392.6 25% 347 8% 16,604 83,180 337,000 1.3% 6.6% 11.7%Denver 3,738.7 44% 164 49% 55,357 153,959 635,167 3.0% 6.1% 12.0%Houston 3,828.8 -17% 211 -23% 9,259 77,087 182,018 4.8% 6.8% 9.8%Phoenix 3,156.5 24% 180 22% 21,074 91,779 510,000 3.0% 6.0% 8.7%San Antonio 1,468.5 54% 72 33% 31,250 94,924 150,694 4.9% 6.0% 8.7%Tertiary Southwest 2,994.0 -24% 263 -16% 19,021 67,599 263,462 2.8% 7.0% 11.7%Total $23,996.2 11% 1,343 3% $9,259 $94,032 $635,167 1.3% 6.5% 12.0%

WestEast Bay 997.9 -20% 92 14% 52,020 207,892 437,500 2.6% 4.7% 6.6%Inland Empire 1,828.8 68% 88 10% 42,628 147,293 281,169 4.3% 6.1% 13.4%Las Vegas 1,133.2 23% 71 29% 21,739 68,027 178,471 5.0% 6.2% 10.1%Los Angeles 4,984.9 34% 630 18% 49,753 211,624 1,500,000 2.5% 4.7% 8.2%Orange Co 1,398.4 32% 81 17% 74,583 222,036 740,741 3.5% 5.0% 6.6%Portland 1,725.5 52% 102 38% 46,875 142,130 425,000 4.6% 5.8% 10.3%Sacramento 1,285.7 57% 100 56% 43,824 113,809 250,000 4.4% 5.9% 8.0%Salt Lake City 520.0 121% 25 92% 70,313 113,288 179,167 5.1% 6.1% 8.3%San Diego 2,072.0 41% 162 56% 95,679 193,836 601,515 2.9% 4.9% 8.3%San Francisco 1,124.8 6% 96 -26% 162,500 427,339 829,167 2.0% 3.6% 5.8%San Jose 1,057.1 -11% 62 -9% 113,542 309,216 697,115 2.0% 4.4% 8.6%Seattle 2,710.3 23% 162 16% 51,060 152,472 493,542 2.7% 5.3% 7.3%Tertiary West 2,296.2 35% 215 17% 26,563 119,794 844,683 3.8% 6.1% 9.1%Total $23,134.7 30% 1,886 18% $21,739 $159,371 $1,500,000 2.0% 5.1% 13.4%US Other 2,958.1 74Total US $98,424.4 38% 6,052 19% $3,400 $104,513 $1,500,000 1.3% 6.1% 13.4%


2015 YEAR IN REVIEW

Market Table: 2015 Summary - Mid/high-riseVolume Pricing

Transactions Reported Closed Full Year 2015 Vol ($M) YOY

Change # Props YOY Change Low PPU High Low Avg Cap

Rate High

Mid-AtlanticBaltimore $466.8 60% 14 17% $45,588 $215,663 $432,384 5.1% 6.7% 8.4%DC 1,205.5 -11% 25 19% 81,845 294,293 836,735 4.1% 4.8% 5.2%DC MD burbs 890.5 87% 19 36% 60,000 226,406 332,454 4.4% 5.4% 5.9%DC VA burbs 2,713.7 182% 34 113% 48,259 246,775 645,714 4.2% 5.2% 6.2%Philadelphia 838.2 21% 25 -17% 48,264 201,661 546,108 4.1% 5.8% 9.2%Pittsburgh 15.0 -87% 3 -25% 48,020 62,120 121,951 7.5% 7.6% 7.8%Richmond/Norfolk 236.8 107% 12 20% 42,523 117,708 166,667 6.1% 6.7% 7.7%Tertiary Mid-Atlantic 131.3 -31% 7 -30% 29,259 108,348 158,688 4.3% 5.6% 6.3%Total $6,497.8 55% 139 19% $29,259 $227,770 $836,735 4.1% 5.7% 9.2%

MidwestChicago 1,941.0 51% 78 16% 37,353 253,474 651,240 3.3% 5.8% 10.0%Cincinnati 3.6 -94% 1 -80% 6.8% 7.5% 8.2%Cleveland 55.3 -42% 7 -30% 21,552 32,855 45,169 5.7% 7.3% 8.6%Columbus 47.6 -17% 2 -33% 6.1% 6.7% 7.7%Detroit 97.7 187% 10 67% 27,586 50,899 206,667 5.9% 7.2% 9.6%Indianapolis 22.7 -87% 10 100% 18,255 32,819 45,436 Kansas City 185.8 133% 8 14% 85,616 179,201 217,391 Minneapolis 501.8 53% 18 38% 51,164 221,934 381,119 3.5% 4.7% 5.8%St Louis 198.2 87% 10 100% 23,000 155,938 332,515 Tertiary Midwest 286.6 29% 29 38% 30,952 80,572 193,416 5.2% 6.1% 6.8%Total $3,340.3 37% 173 22% $18,255 $166,688 $651,240 3.3% 6.2% 10.0%

NortheastBoston 2,120.4 117% 42 5% 112,500 383,686 910,000 4.2% 4.8% 6.1%Hartford 55.0 67% 5 -50% 50,735 85,291 120,192 5.8% 6.5% 7.5%Long Island 26.9 -81% 3 50% Manhattan 13,829.8 41% 439 5% 56,897 515,891 2,674,419 1.0% 3.8% 6.3%No NJ 613.6 -47% 39 -20% 22,402 173,792 407,000 3.3% 5.7% 10.0%NYC Boroughs 5,485.3 22% 480 -4% 51,186 229,223 1,157,500 2.7% 5.0% 8.9%Stamford 219.5 -43% 10 25% 62,500 231,787 357,585 3.0% 5.7% 8.3%Westchester 342.3 519% 12 140% 88,889 182,759 379,630 6.0% 7.3% 7.9%Tertiary Northeast 213.0 103% 20 54% 18,868 71,689 126,394 2.1% 5.7% 7.4%Total $22,905.7 34% 1,050 0% $18,868 $353,719 $2,674,419 1.0% 4.7% 10.0%

SoutheastAtlanta 1,601.2 -17% 38 -12% 33,673 166,332 407,447 4.9% 5.3% 5.8%Broward 573.5 144% 15 275% 57,692 202,210 389,754 4.2% 5.8% 6.8%Charlotte 385.0 341% 9 125% 138,975 201,963 502,333 Jacksonville 30.7 -65% 2 0% 69,231 167,760 206,870 Memphis 32.7 -15% 2 -33% 5.4% 6.1% 6.5%Miami 522.1 260% 19 46% 43,367 239,577 1,399,734 4.1% 4.6% 5.0%Nashville 268.7 -28% 8 -20% 74,194 185,026 250,000 Orlando 286.5 166% 7 250% 23,100 111,678 214,516 5.1% 5.8% 6.4%Palm Beach 114.0 49% 5 0% 64,103 259,658 405,405 Raleigh/Durham 529.5 22% 9 13% 123,438 193,312 265,920 Tampa 301.6 17% 8 33% 38,462 155,959 259,202 Tertiary Southeast 897.7 29% 30 3% 23,810 157,182 377,346 4.6% 6.3% 9.4%Total $5,543.0 24% 152 18% $23,100 $174,440 $1,399,734 3.2% 5.6% 9.4%

SouthwestAustin 677.9 33% 16 60% 76,842 163,673 290,780 4.4% 4.8% 5.2%Dallas 1,512.5 40% 34 36% 124,561 192,148 373,377 4.9% 5.2% 5.6%Denver 932.8 -14% 27 -18% 63,492 167,128 387,324 4.8% 5.8% 7.5%Houston 488.8 -40% 11 -21% 142,599 207,653 273,897 4.7% 5.7% 7.2%Phoenix 641.5 113% 12 71% 103,000 230,151 299,242 San Antonio 211.7 -37% 5 -44% 180,851 195,565 209,727 Tertiary Southwest 319.0 28% 8 14% 44,444 325,202 443,182 5.7% 6.3% 6.9%Total $4,784.3 9% 113 8% $44,444 $191,640 $443,182 4.4% 5.5% 7.5%

WestEast Bay 366.5 -38% 14 17% 136,816 288,840 645,570 3.3% 4.5% 6.2%Inland Empire Las Vegas 56.6 57% 2 0% 282,115 325,519 350,773 Los Angeles 2,569.4 -23% 97 1% 29,617 295,963 1,095,448 2.1% 4.6% 7.0%Orange Co 313.2 -16% 5 -17% 194,318 313,328 414,304 Portland 402.7 21% 16 45% 73,775 245,108 401,786 4.9% 5.0% 5.2%Sacramento 82.3 4 69,512 221,860 313,725 3.6% 4.5% 5.1%Salt Lake City 96.5 62% 5 25% 65,079 138,288 199,580 San Diego 326.1 17% 13 63% 73,665 245,414 566,667 3.0% 5.9% 13.3%San Francisco 1,107.0 -34% 43 -17% 78,431 601,342 1,375,839 2.3% 3.3% 4.5%San Jose 368.2 -32% 6 -25% 62,372 307,833 738,255 4.2% 4.5% 4.8%Seattle 2,157.4 8% 69 0% 43,814 352,280 661,947 3.7% 4.7% 8.0%Tertiary West 251.7 211% 14 75% 54,643 276,870 1,025,479 5.0% 5.8% 7.4%Total $8,097.6 -13% 288 4% $29,617 $322,519 $1,375,839 2.1% 4.7% 13.3%US Other 397.3 5Total US $51,566.0 23% 1,920 6% $18,255 $269,435 $2,674,419 1.0% 5.1% 13.3%


2015 YEAR IN REVIEW

Property Name SF Price OwnerAddress Year Built PPU SellerLocation Notes Quali� er Broker

Reported in the Past 45 DaysSelected Investment Sales Transactions

Mid-Atlantic

Jefferson Marketplace 281 $141,000,000 1510-1518 7th St NW 2014 501,779.36 Washington, DC Mid/Highrise confi rmed

Rittenhouse Station 87 $36,100,000 250 S Main St 2013 414,942.53 Newark, DE Garden confi rmed

University Village 136 $9,452,000 207 Mederia Ave 1972 69,500.00 Newark, DE Garden approximate

Colonial Park West 96 $8,725,000 211 Lazaretto Rd 1972 90,885.42 Prospect Park, PA Garden confi rmed

Midwest

Park Place 500 $77,672,333 14300 34th Ave 1985 155,344.67 Minneapolis, MN Garden approximate

Grand Reserve of Naperville 319 $66,700,000 504 Chamberlain Ln 1997 209,090.91 Naperville, IL Garden confi rmed

The Lodge of Overland Park 548 $48,500,000 7575 W 106th 1986 88,503.65 Overland Park, KS Garden confi rmed

Spicetree 551 $35,000,000 4854 Washtenaw Ave 1966 63,520.87 Ann Arbor, MI Garden confi rmed

River Market West 137 $29,500,000 228 W 4th St 2015 215,328.47 Kansas City, MO Mid/Highrise confi rmed

Northeast

1 MiMA Tower (50F-63F) 151 $260,800,000 460 W 42nd St 2012 1,727,152.32 New York, NY Mid/Highrise confi rmed

Royal Gardens 550 $107,250,000 13 Royal Dr 1969 195,000.00 Piscataway, NJ Garden approximate

Stoneridge 180 $52,940,555 132-25 Maple Ave 1957 294,114.19 Flushing, NY Mid/Highrise approximate

Ashford Crossing 180 $26,250,000 26 Yorkshire Ter 1971 145,833.33 Shrewsbury, MA Garden confi rmed

232 Mott Street 6 $14,730,000 232 Mott St 2006 2,455,000.00 New York, NY Mid/Highrise confi rmed

Invesco RE from Jefferson Apt Group by CBRE

Blue Vista Capital from Bariglio Corp by JLL

AION Partners from AIG Global RE by HFF

Friedman Realty Group from Robert Dagostino by Rittenhouse Realty Advisors

Blackstone from Greystar RE Partners by HFF

Resource REIT II from Heitman by Moran & Co

Mandel Group JV Romspen Investment Grp from Resource Real Estate by CBRE

Apollo Property Mgmt from Hall Financial Grp by Berkadia

GFI Capital Resources from George G Birt by CBRE

Kuafu Properties JV Shanghai Const Grp from Related Companies JV TIAA-CREF by CBRE

KRE Group JV Oxford Realty Group JV Blue Vista Capital from Lone Star by Gebroe-Hammer

TreeTop Development from Algin Management by Eastern Consolidated

Chartwell Holdings from Fairfi eld Residential by JLL

Lyco Investments Corp from Veracity Development by Marcus & Millichap


2015 YEAR IN REVIEW

Property Name SF Price OwnerAddress Year Built PPU SellerLocation Notes Quali� er Broker

Reported in the Past 45 DaysSelected Investment Sales Transactions

Southeast

West Village 453 $187,000,000 605 W Main St 2014 412,803.53 Durham, NC Garden confi rmed

Rockledge 708 $106,527,000 2075 Powers Ferry Rd SE 1978 150,461.86 Marietta, GA Garden approximate

Allister North Hills 434 $93,500,000 430 Allister Dr 2013 215,437.79 Raleigh, NC Mid/Highrise confi rmed

Yacht Club at Heritage Harbour 392 $70,304,000 6510 Anchor Loop 2007 179,346.94 Bradenton, FL Garden confi rmed

The Mile at Coral Gables 120 $48,000,000 3622 SW 22nd St 2016 400,000.00 Miami, FL Mid/Highrise confi rmed

Southwest

Veranda Highpointe 362 $105,000,000 6343 E Girard Pl 2014 290,055.25 Denver, CO Mid/Highrise confi rmed

San Melia 488 $84,000,000 14435 S 48th St 1998 172,131.15 Phoenix, AZ Garden confi rmed

Level 176 $78,000,000 1020 N Tyndall Ave 2012 443,181.82 Tucson, AZ Mid/Highrise confi rmed

Avana 3131 396 $43,236,000 3131 SW 89th 2001 109,181.82 Oklahoma City, OK Garden approximate

West

Sharon Green 296 $245,000,000 350 Sharon Park Dr 1970 827,702.70 Menlo Park, CA Garden confi rmed

future Motif 395 $163,000,000 21021 Erwin St 2015 412,658.23 Woodland Hills, CA Mid/Highrise confi rmed

Avana 522 558 $143,326,950 18101 126th Ave NE 1988 256,858.33 Bothell, WA Garden confi rmed

38 Dolores 81 $91,000,000 38 Dolores St 1,123,456.79 San Francisco, CA Mid/Highrise confi rmed

Oakwood Portland Pearl District 112 $45,000,000 1155 NW Everett St 2012 401,785.71 Portland, OR Mid/Highrise confi rmed

The Connor Group from Federal Capital by CBRE


Heitman from Federal Capital JV Kane Realty by ARA Newmark

Northland from TGM Associates by JBM Institutional Multifamily Advisors

Monogram Residential Trust from Greystone Property Dev JV Alta Developers JV Strategic Properties by HFF

Capri Capital JV TruAmerica Multifamily JV Guardian Life Insurance Co from Forum Real Estate Group by CBRE

GE Asset Management JV ChrisKen Cos from Aimco by Colliers International

GMH Capital Partners JV Principal RE Investors from Kayne Anderson by TSB Capital Advisors


Deutsche AWM - US JV Maximus RE Partners from Essex Property Trust by

IPA, a division of Marcus & Millichap

Intercontinental RE JV TruAmerica Multifamily JV Guardian Life Insurance Co from Dinerstein Cos by Moran & Co


Sarofi m Realty Advisors JV Oregon PERS from Prado Group by Eastdil

Oakwood Worldwide JV Mapletree from Gerding Edlen by Berkadia


2015 YEAR IN REVIEW


Garden Mid/High-rise All ApartmentBy Region*


Methodology Full credit assigned to sellers’ representative. When two brokers represent same seller, both sellers’ representatives assigned full credit. For partial-interest, rankings are based on the pro-rated share of the total property or portfolio value. For more information on rankings please visit www.rcanalytics.com/Misc/Brokers_Ranking_Methodology.pdf

Garden Mid/High-rise All Apartment

$0 $9 $18

ONCORNational Apt Advisors

GreysteelABI Multifamily

Walker & DunlopDTZ

NAI GlobalCapstone Apartment Ptnrs

Engler Financial GroupGebroe-Hammer

JBM Institutional Multifamily Advisors

SVNEastdil

Lee & AssociatesTranswestern

Moran & CoMulti Housing Advisors

Colliers InternationalCushman & Wakefield

JLLBerkadia

HFFNewmark Grubb Knight Frank

Marcus & MillichapCBRE

$0 $5 $10

Madison PartnersTerraCRG

TranswesternFriedman-Roth Realty Corp.

Boston Realty AdvisorsJBM Institutional Multifamily Advisors

Bluegate PartnersVenture Capital Properties

GFI Capital ResourcesTSB Capital AdvisorsColliers InternationalBesen & Associates

Ariel Property AdvisorsWestwood Realty Associates

BerkadiaEastern Consolidated

Moran & CoNewmark Grubb Knight Frank

RosewoodCushman & Wakefield

Marcus & MillichapJLL

HFFEastdilCBRE

$0 $13 $26

NAI GlobalEngler Financial Group

DTZTSB Capital AdvisorsBesen & Associates

Ariel Property AdvisorsGebroe-Hammer

Westwood Realty AssociatesJBM Institutional Multifamily Advisors

SVNLee & Associates

Eastern ConsolidatedTranswestern

Multi Housing AdvisorsRosewood

Colliers InternationalMoran & Co

Cushman & WakefieldBerkadia

JLLEastdil

Newmark Grubb Knight FrankMarcus & Millichap

HFFCBRE

0 450 900

Keller WilliamsNAI Global

Lee & AssociatesMoran & Co

TranswesternSVN

Cushman & WakefieldJLL

Colliers InternationalMulti Housing Advisors

HFFNewmark Grubb Knight Frank

BerkadiaCBRE

Marcus & Millichap

0 80 160

Colliers InternationalGFI Capital Resources

EastdilWestwood Realty Associates

BerkadiaEastern Consolidated

Ariel Property AdvisorsNewmark Grubb Knight Frank

Besen & AssociatesJLL

HFFCushman & Wakefield

RosewoodCBRE

Marcus & Millichap

0 500 1000

Lee & AssociatesBesen & Associates

Moran & CoTranswestern

SVNRosewood

Multi Housing AdvisorsColliers International

JLLCushman & Wakefield

HFFBerkadia

Newmark Grubb Knight FrankCBRE

Marcus & Millichap

*The transaction volume of brokerage firms that have merged are left unconsolidated before the merger date and are attributed to the surviving or newly formed company after the merger date.

Top 25 by Investment Volume(in Billions)

Mid-AtlanticCBRE

HFF

JLL

Eastdil

Marcus & Millichap

MidwestCBRE

Marcus & Millichap

Berkadia

HFF

Newmark Grubb Knight Frank

NortheastEastdil

HFF

CBRE

Rosewood

Marcus & Millichap

SoutheastCBRE


JLL

Multi Housing Advisors

Marcus & Millichap

SouthwestCBRE


HFF

Marcus & Millichap

JLL

WestMarcus & Millichap

CBRE

Berkadia

HFF


Top Apartment Brokers of 2015


2015 YEAR IN REVIEW

ABOUT REAL CAPITAL ANALYTICS

Real Capital Analytics, Inc (RCA) is an indepen-dent data and analytics firm focused exclusively on the capital investment markets for commercial real estate. RCA offers the most in-depth, comprehen-sive and current information of activity in the indus-try. Formed in 2000, RCA has offices in New York City, San Jose, and London. In addition to collecting trans-actional information for property sales and financing, RCA interprets the data including capitalization rates, market trends, pricing and sales volume. The firm pub-lishes a series of Capital Trends reports and offers an online service that provides real-time, global transac-tional market information. For more information, visit: www.rcanalytics.com.

ABOUT US CAPITAL TRENDS®

US Capital Trends is published by Real Capital Ana-lytics, Inc. Copyright ©2015 Real Capital Analytics, Inc. All rights reserved.It is a violation of Federal law to photocopy or repro-duce any part of this publication, or forward it elec-tronically, without first obtaining permission from Real Capital Analytics, Inc. To subscribe as an individual or to purchase a corporate license for your office, please call 1.866.REAL.DATA.Information presented by RCA has been compiled from sources believed to be reliable. While we have no reason to doubt its accuracy, RCA makes no representation or warranty regarding the information. The information is provided as is without warranties of any kind, express or implied, and may be subject to material revisions.

NOTES & METHODOLOGY

The information maintained by RCA and presented in this report encompasses markets nationally and includes only properties or portfolios $2.5M or greater. Readers should note that there is substantial investment activity, largely local in nature, that falls below this threshold and is not captured in this report.Records are maintained for transactions that represent the transfer of a controlling interest in a property or port-folio of properties that are $2.5M or greater. Transactions are assumed to be fee simple; leasehold and commer-cial condominium interests are noted, if known. Trans-actions include both real estate asset sales as well as transactions involving real estate operating and invest-ment entities. Thus, for example, merger and acquisition activity among entire REITs or other real estate entities is included in this report unless noted otherwise. Sales of partial interest transactions will receive credit and be valued at the pro-rated share.

For this report, market classifications are defined as followed:Major Metros: Boston, Chicago, DC Metro, LA Metro, NYC Metro and SF MetroSecondary: Atlanta, Austin, Charlotte, Cincinnati, Cleveland, Columbus, Dallas, Baltimore, Denver, Detroit, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Memphis, Milwaukee, Minneapolis, Nashville, Norfolk, Orlando, Philly Metro, Phoenix, Pittsburg, Port-land, Raleigh/Durham, Sacramento, Salt Lake City, San Antonio, San Diego, Seattle, South Florida, St Louis and Tampa.Tertiary: All other US markets.Commercial Property Price Indices (RCA CPPI™): CPPI use advanced repeat-sale regression (RSR) meth-odology, which uses qualified repeat-sale observations to measure price change in commercial real estate. All CPPI are based on similar index methodology developed by RCA and further information is available on our web-site. The US suite of CPPI includes 23 Moody’s/RCA CPPI national benchmarks and over 200 RCA US CPPI for regions, markets and property niches. The Moody’s /RCA CPPI suite includes national compos-ites for all property types and all commercial. Each of the apartment, hotel, CBD office, suburban office, retail and industrial sector indices are composites with each based on Major Metro and Non-Major Metro indices. The RCA US CPPI were developed and published by Real Capital Analytics to complement the Moody’s/RCA CPPI but are not maintained, reviewed, endorsed, or otherwise affiliated with Moody’s Investors Service or its affiliates.Ranking Methodology: Based on transactions $2.5M and greater. Full dollar value is assigned to each buyer, seller, or broker in joint venture transactions. Partial interest sales are included at the pro-rated share of the total property or portfolio value.Trend analysis may exclude certain transactions that exceed 5% of the data sample or that may otherwise skew results. A complete glossary and methodology can be found at www.rcanalytics.com.Abbreviations:

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ANALYTICS TEAMDoug Murphy Managing Director, AnalyticsYiqun Wang Senior Director, AnalyticsAndrew Pisanelli Director, AnalyticsHermann Lademann Director, Research & AnalyticsSean Kane Senior ManagerAlexis Maltin Senior AnalystElizabeth Szep Senior AnalystRachel Tipermas Senior AnalystWillem Vlaming Senior AnalystYogeeta Chatoredussy AnalystJoseph Kizel Analyst

Notes & Defi nitions

PPSF = Price Per-Square-FootBPS = Basis PointsYOY = Year-Over-Year

YTD = Year-to-DateQ1 = First Quarter of YearH1 = First Half of Year

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2015 YEAR IN REVIEW

apartment 2015 year in review - matthews · cap rates by market tier * cppi year-over-year changes...

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