IREM Forecast Breakfast January 15, 2009

Housing Market Forecast Marjean Pountain, CPM ® Pountain Partners LLC CondominiumCondominium Mixed UseMixed Use ApartmentsApartments Market RateMarket Rate StudentStudent Affordable and SeniorAffordable and Senior

Condominiums Opening in 2009 Park Lafayette – Corner of Prospect Ave and Lafayette Ave Renaissance Development Group LLC Park Lafayette – Corner of Prospect Ave and Lafayette Ave Renaissance Development Group LLC The Breakwater - The Breakwater - Knapp and Prospect – Peter Renner and Renner Architects, LLC

Condominiums Opening in 2009 Goll House Condos – 1550 N. Prospect Avenue New Land Enterprises The Moderne – Corner of Juneau Ave. & Old World 3rdStreet The Moderne LLC The Moderne – Corner of Juneau Ave. & Old World 3rd Street The Moderne LLC

Condominiums Opening in 2009 Residences on Water – 1150 North Water Street DOC Corporation The Edge – 1890 Commerce Street Tandem Development LLC and Brewery Works, Inc.

Creativity in Condominium Marketing is Key

Mixed Use Condos/Apartments Landmark on the Lake – 1660 N Prospect Avenue Fiduciary Real Estate Development and Rick Ruvin Lake Bluff at East Towne – 1300 N Prospect Avenue Garrison Partner’s

Mixed Use Condos/Apartments River Renaissance – 105 N Water Street Rivren Group LLC Landing at Park Shore – 4100 South Lake Drive, St. Francis Thompson Corporation

Market Rate Apartments Opening in 2009 Kenilworth Apartment Development - SW corner Kenilworth & Farwell Avenues New Land Enterprises Bridgeport in South Water Works E Pittsburgh Ave Lighthouse Development Company North End – Corner of Pleasant and Water Streets Mandel Group, Inc.

Market Rate Apartments Opening in 2009 Pritzlaff Building – N. Plankinton Avenue Sunset Investors Jackson Square – Jackson Street between Menomonee & Chicago Streets Joseph Property Development Corcoran Lofts – Corcoran Street between Milwaukee and Jefferson Streets Mandel Group, Inc.

Market Rate Apartments - Suburban Georgetown Square West Wisconsin Avenue Brookfield Wimmer Brothers The Lodge at Rolling Ridge Hwy TT, Waukesha Bryce Styza Properties

Student Apartments Kenilworth Square Apartments - Corners of Kenilworth and Prospect Avenues Milwaukee River & East North Avenue – Mandel Group, Inc. RiverView Residence Hall North Commerce Street

Affordable Housing Blue Ribbon Lofts - in the Pabst Brewery complex Gorman Company Bishop’s Creek Apartments – SW corner of N. 32nd and Hampton Avenue Bishop’s Creek Community Development Corp. & CommonBond Communities

Senior Housing – Independent Living (poised to commence) Saint John’s on the Lake Lutheran Homes of Oconomowoc along Lac La Belle Tudor Oaks in Muskego

Top Concerns of Real Estate Investors (from National Real Estate Investor® Survey for 2009) Top Concerns of Real Estate Investors (from National Real Estate Investor® Survey for 2009) 1. Availability of Financing 2. Creditworthiness of Tenants 3. Unforeseen Shocks to the Economy 4. Rising Vacancy Rates 5. Rise in Operating Expenses

Forecast Trends Advantageous to Local Apartment Rental Market 1. Available product will stabilize, moderate, and the playing field will level 2. Construction starts will fall 3. First time homebuyer and low down payment programs have already curtailed 4. Emerging Echo Boom generation are just entering prime renting years 5. Shadow Rentals will not impact as significantly as in southern U.S. states

Suggestions for Savvy Apartment Managers in 2009 Be Creative, Flexible, Proactive, and Think Ahead! 1. Focus on resident retention 2. Adjust credit standards 3. Closely monitor and act on delinquencies 4. Adjust rents based on demand and turnover 5. Conserve; weatherproof; keep utilities in check 6. Utilize technology and the internet to advantage

In Summary: Surveys Prove that Renters Want: Surveys Prove that Renters Want:  Competitive Pricing  Quality Product  Convenience  Immaculate Environment  Prompt, Friendly and Efficient Service  Good Neighbors  Fair and Equal Treatment CAUTIOUS OPTIMISM