1. THE DEVELOPMENT ADVISOR 2009 ANNUAL ATLANTA MARKET REVIEW

2. ABSORPTION All Sales Condominium / Townhome Single Family Combined 4Q08 2,866 12,586 15,452 change +36.6% +11.4% +16.1% 4Q09 3,915 14,018 17,933 3Q09 4,006 15,659 19,665 2Q09 3,515 15,466 18,981 1Q09 2,493 11,684 14,177

3. ABSORPTION New Construction Condominium / Townhome Single Family Combined YTD - 2008 3,283 10,021 13,304 change -17.3% -22.6% -21.3% YTD - 2009 2,714 7,755 10,469 Resale Only YTD - 2008 11,255 48,960 60,215 change -0.3% +0.2% +0.1% YTD - 2009 11,215 49,072 60,287

4. SALES PRICE

6. New Construction Condominium / Townhome Single Family YTD - 2008 $215,618 $319,518 change -9.8% -11.2% YTD - 2009 $194,576 $283,887 Resale Only YTD - 2008 $151,101 $196,397 change -17.4% -16.0% YTD - 2009 $124,765 $165,099

7. FORECLOSURES – NEW CONSTRUCTION Single Family Absorption (Closed Units) % of Total New Construction Sales Sales Price YTD - 2008 997 9.9% $226,256 change +130.3% +199.0% +8.7% YTD - 2009 2,296 29.6% $245,840 Condominium / Townhome YTD - 2008 184 5.6% $115,416 change +223.9% +292.9% +24.8% YTD - 2009 596 22.0% $144,000

8. FORECLOSURES – RESALE Single Family Absorption (Closed Units) % of Total Resale Sales Sales Price YTD - 2008 15,779 32.2% $119,422 change +15.4% +15.2% -11.7% YTD - 2009 18,205 37.1% $105,457 Condominium / Townhome YTD - 2008 3,091 27.5% $105,370 change +36.0% +36.4% -19.8% YTD - 2009 4,203 37.5% $84,550

9. CURRENT INVENTORY ALL ACTIVE LISTINGS: Condominium / Townhome Single Family Combined As of end 4Q08 18,191 57,305 75,496 change -18.3% -27.1% -25.0% As of end 4Q09 14,858 41,755 56,613 As of end 3Q09 16,429 50,721 67,150 As of end 2Q09 16,872 48,890 67,762 As of end 1Q09 18,327 53,537 71,864

10. CURRENT INVENTORY New Construction Condominium / Townhome Single Family Combined As of end 4Q08 5,248 11,275 16,523 change -41.5% -53.2% -49.5% As of end 4Q09 3,069 5,274 8,343 As of end 3Q09 3,848 6,775 10,623 As of end 2Q09 4,064 7,470 11,534 As of end 1Q09 4,933 9,837 14,770 Resale Only As of end 4Q08 12,943 46,030 58,973 change -8.9% -20.7% -18.1% As of end 4Q09 11,789 36,481 48,270 As of end 3Q09 12,581 43,946 56,527 As of end 2Q09 12,808 41,420 54,228 As of end 1Q09 13,394 43,700 57,094

11. PERMITS – SINGLE FAMILY SINGLE FAMILY PERMITS – 2006 – 4Q09

12. PERMITS – MULTI-FAMILY MULTI-FAMILY PERMITS – 2006 – 4Q09

13. THE DEVELOPMENT ADVISOR 2009 ANNUAL ATLANTA MARKET REVIEW

14. Condominium Approval and Consumer Financing in a Changing Environment Dave Nielsen National Condominium Sales Manager City Club Buckhead February 25, 2010

15. 15 Condominium Project Approval Standards  Governing Factors  GSE Policy  MI Policy  Lender Policy  Government Sponsored Enterprises  FNMA  FHLMC  FHA  VA Mortgage Insurance Companies

16. 16 Fannie Mae  Policy - Highlights  Presale  Budget Review  HOA delinquency & 10% reserves  Owner occupancy  Single Entity Ownership  Exceptions/Variances  Sub phasing & presale  Budget & Reserves  Commercial space allowance  Developer rentals – 10% entity & owner occupancy

17. 17 FHA  New Policy – Effective 12/7/09  All projects “Existing & New Construction” require approval  For 2010 – 30% presale  For 2010 – 50% exposure with some allowance to 60%  10 year structural warranty not required  2+ unit projects allowed  Detached no longer requires approval  Right of refusal can be allowed  25% commercial space allowance  10% line item required for reserves  10% single entity ownership  15% maximum HOA delinquency  Few if any exceptions allowed

18. 18 FHA  Approval Processes  DELRAP  Lender Delegated Review & Approval Process  HRAP  HUD Review & Approval Process

19. 19 VA  Policy  70% Presale Requirement  Will allow new construction project in Flood Zone  Will NOT accept any Right of Refusal language  Will not reciprocate with FHA approvals unless the FHA approval was approved prior to 12/7/09

20. 20 Reciprocity FNMA will no longer accept FHA approvals FHA never did accept FNMA VA will not accept FHA Three separate and distinct “GSE” approvals may now be required for single project.

21. 21 MI Companies  Starting to see some enhancements – slowly  Probably lender/portfolio specific?  95% LTV availability  Credit overlays  Agency project approval requirements

22. 22 What does it all mean?  Maintain an understanding of requirements  Understand your local market  Variances require careful analysis and a plan  Be ready & willing to make amendments/changes  Be very proactive and pre-emptive

23. 23 Questions? Contact: Dave Nielson David.Nielsen@wellsfargo.com Joe Reynolds Joe.Reynolds@wellsfargo.com Shane Spink Shane.Spink@wellsfargo.com

24. THE DEVELOPMENT ADVISOR 2009 ANNUAL ATLANTA MARKET REVIEW For more information, visit www.NRTDevelopmentAdvisors.com and www.CBVirtualViews.com.www.NRTDevelopmentAdvisors.comwww.CBVirtualViews.com