1. MADISON MARKET 2013 LANDRETTI & COMPANY, LLC DOMINIC LANDRETTI, MAI December 2013

2. Title Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 20132 DANE COUNTY

3. Subdivision Plats Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 20133

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5. New Construction – Major Projects Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 20135 Total of 16 projects Cost and footages were not available for all projects

6. Major New Construction - Proposed Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 20136 Not all footages and costs were available Projects include all uses – Only two were indicated as industrial About 60% of the projects are multifamily or mixed use with a large multifamily component Majority of construction projects are located downtown Madison, about 20%

7. The Constellation Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 20137

8. Spectrum Brands Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 20138

9. The Edgewater Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 20139 227 Hotel Rooms 12,500 Commercial Space Exterior Walking Areas July 2013 September 2013

10. New Construction Summary Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201310 Proposed or under construction to be completed within one to three years Total square feet and cost was not available for all projects Total cost was reported for only 43 of the 74 listed projects, or about ~58% – Extrapolates to about $1.4 billion of new construction

11. Historic New Construction Summary Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201311 $1.4 billion of construction is equivalent to the new construction added from 2008 to 2012 Dane County 2013 Equalized Value for commercial and industrial property is $13.5 billion

12. New Construction Summary Other Notables Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201312 – Judge Doyle Square, Downtown Madison (Source: WSJ October 6, 2013) – 800 Block East Washington Avenue $65 million 13 story mixed use project on 4.5 acres to be purchased from City Phase I - 50,000s square feet for grocery,175 to 240 residential units, and 350 space parking garage Phase II – 22 owner-occupied homes, 65,000 square foot of commercial space, and 173 parking stalls

13. Multifamily Highlights Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201313

14. Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 2013 14 Vacancy declined as construction slowed Permits have not been issued for all proposed construction

15. Multifamily Demand Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201315 LineDetailIn 3 YearsComments 1Forecasted new competition of units 5,0242013 Completed and Proposed 2Percentage of renter occupied units41.6%2010 US Census; includes vacant units 3Implied housing unit demand (total households) 12,077Line 1 / Line 2 4Persons per household 2.332010 US Census 5Population needed to support implied demand 28,139Line 3 * Line 4 6Existing Population 497,021Wisconsin DOA as of 1/1/13 7Annual population increase needed to support additional demand1.9%Growth Rate Factor over three years Impact on Market: Population Growth: 1990 to 2000 – 1.5% 2000 to 2010 – 1.4% Growth may need to increase or percentage of renters may need to increase Millennials are favoring renting versus home ownership – strong Epic influence Existing occupants will likely upgrade to new housing Vacancy will likely increase Rent will experience downward pressure

16. Land Trends Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201316 Multifamily sites – Selling between $8,000 and $30,000 per unit with the average about $10,000 to $15,000 per unit – Location and density driving price Commercial sites – Selling between $5 and $30 per foot – Size and exposure driving price Industrial land sales are minimal

17. Improved Commercial Trends Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201317 Multifamily is dominating the market – Mixed use is predominately multifamily Office demand appears low – Some new development for existing companies Spectrum, Mead & Hunt – Both vacated existing space in Madison to move to Middleton Retail demand is moderate to high – Credit tenants and exposure are necessary – New construction rents are $25-$40 per foot NNN

18. Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201318

19. Questions? Madison Market 2013 - Landretti & Company - Dominic Landretti, MAI - December 201319 Thank you Contact: Dominic Landretti, MAI Landretti & Company, LLC 1818 Parmenter Street, Suite 202 Middleton, Wisconsin 53562 (608) 836-3406 x100 appraisal@landretti.com