Foley & Puls, Inc. Strategic Multi-Family Research and Advisory Services Outperforming the Market: Research and Advisory Services for the Multi-Family Industry

We Look Beyond the Data Our methodology creates a forward- view of a project’s potential by integrating intense research into market fundamentals such as inventory structure, rent increases, renter incomes and unit absorption data with projections of demographic trends and income-driven demand per unit type Research, together with our experience in residential development over the last 30 years, provides insight into market performance and project potential to real estate investors, developers, owners and lenders Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

Unparalleled Experience across the US Three Decades of Multi-Family Experience on more than 500 Projects Cities - 26 States Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

Michael Puls - President Brings more than 30 years experience in all phases of residential real estate experience Began in construction with US Home in Clearwater and Houston – progressed to Regional President in Chicago Held leadership positions with single and multi-family developers and builders across the southeast Vice President of Commercial Lending and Development with Dallas-based Murray Savings - closed over $120mm in loans across the southeast and mid-west and managed the development of a 1,200 acre, multi-use development in Cary, NC President of a property management company with over 4,000 units across the south and mid-west. Created Foley & Puls in 1989 to provide statistical research and development strategies to real estate investment clients across the US Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

Our Clients: Multi-Family Industry Leaders Alpha-Barnes Associated Estates Behringer Harvard CBL Properties City of Richardson Commonfund Corrigan Residential DR Horton Fairmount Properties Finger Companies Forestar Group Gables Residential GE Capital Realty Group, Inc. Hall Financial Hillwood Multi-Family Intervest JLB Partners Legacy L & B Multifamily Metropolitan Life NRP Group PM Realty Port of San Antonio Trammell Crow ZOM Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

Beyond Market Research As markets add supply and new employers, demand changes, driving market performance Each project is an unique investment; we research and analyze the market performance based on the site, the project concept, market changes and future demand. Every report is designed to address underwriting concerns and provide our clients with strategic information to improve on the project’s potential Our advisory services and development consulting allow clients to leverage our knowledge and experience to design new product concepts and maximize performance Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

Strategic Market Research Analyzing the current market performance by unit type and square footage greatly aids in visualizing market performance. Studying employment growth, new supply, demographic projections, balancing income-driven demand of household incomes being captured by the inventory structure, explains rent and price sensitivity The depth of our analysis defines where a project’s potential can be enhanced. Because the war for the consumer is won at the unit-type level, we examine the market at the unit-type and square footage level Typical strategic research and analysis includes:  Market Performance  Current and Future Supply  Target Markets  Demand Drivers (Macro & Micro)  Project Competitive Advantages  Product Concept  Manager Interviews  Absorption Rates  Mobility Rates  Renter/Buyer Behaviors Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

Advisory Services Our extensive advisory services, including Development Consulting, allows clients to draw on our experience in multi-family real estate to evaluate and deliberate their site and product decisions The insight formed over 30 years in development, construction, lending and property management is combined with our in-depth research and analysis to create product mixes, pricing strategies and project concepts to improve the project’s potential to achieve pricing goals and sales/lease-up projections Our advisory services include:  Product Concept Solutions  Strategy Development for Market, Project or Product Line  Rent Structure Analysis Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX  Target Market compared to Rent Roll  Market Trend Reports and Analysis  Product Supply Analysis

Developing a Strategy The complex multi-family industry requires a different approach to the research and analysis of each type of project The top-line income analysis of rental projects needs different financial models than for-sale projects with sales price and absorption targets Because high-rise, luxury projects have unique attributes and a different target market than a wrap, podium or garden project, we have developed appropriate analytical and financial models for each type The extensive statistical and financial models we develop are continually tested and refined to deliver maximum results Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

For-Rent Projects Research and analysis for rental projects requires looking ahead, not just a rear-view mirror. Mobility rates of the households by income, demographic trends and household formations, projected supply and absorption rates must be researched and analyzed for realistic underwriting Our research on over 400 rental projects across the US provides us with a deep understanding of the fundamentals of project performance. We study each market based on our experience as a builder, developer and lender. The resulting studies are comprehensive, revealing and crucial to determining project potential Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

For-Sale Projects The fundamentals of a For-Sale project are very different than a rental project. The correct pricing and product strategies are critical to achieving sales velocity and ultimately, profit Our approach to For-Sale research focuses on household income and determination of depth of the target market based on age, household incomes, location and product. We then analyze the data to determine appropriate product lines and number of units Since we began studying for-sale markets in 1979, we have worked on more than 50 For-Sale projects across the US, including numerous projects in Texas Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

High-Density Projects For high density projects, we have expanded our market research models, income driven demand and mobility rates to identify the higher income households that can pay the higher rents normally associated with urban living Our product analysis and market inventory structure enables us to develop unit mixes and product lines designed to maximize rent structures and capture higher household incomes Our work on high density projects including high- rise, mid-rise, podium and wrap spans the US including: Austin, Charlotte, Cleveland, Dallas, Denver, Ft. Worth, Houston, Marina Del Rey, Oklahoma City, St. Petersburg and San Antonio Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX

Contact Information Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, Texas phone fax Foley & Puls, Inc McEwen Rd. Suite 174 Dallas, TX