1. 2012 PRESENTED BY JEREMY HARSON Beau Box Commercial Real Estate

2. Total of 13,081 units surveyed 11,689 units in Lafayette 1,392 units represented within Lafayette Parish 80 complexes surveyed Approximately 5,000 units that were not surveyed There are an estimated total or approximately 16,000 apartment units in Lafayette SCOPE OF RESEARCH 2012

3. ECONOMIC INDICATORS Problems in Housing Market Sales Supply of New Construction Multi-Family Complexes Perceived Economic Environment Improvements Unemployment Rate (Local & National) 2012

4. UNEMPLOYMENT TRENDS Low Unemployment = Low Vacancy 12.0 2005200620092008200720102011 242 563 412 1262 154 310 10.0 8.0 6.0 0.0 2.0 4.0 Lafayette Unemployment National Unemployment State Unemployment Vacancy Rates 2012

5. OCCUPANCY RATES – ENTIRE MARKET 20042005200620072008200920102011 95 % 90 % 85 % 80 % 75 % 100 % 2012

6. SUPPLY TRENDS 1,000 1,200 1,400 0 200 400 800 600 2005200620072008200920102011 242 563 412 1262 154 310 New Units by Year* *according to permits issued 2012

7. SUPPLY TRENDS $ 50 $ 60 $ 70 $ 0 $ 10 $ 20 $ 40 $ 30 $5$5 200520062007 2008 2009 20102011 $ 13.4 $ 47.9 $ 20.5 $ 73.8 $ 14.8 $ 29.6 Construction Permit Dollars by Year (Millions) $ 80 2012

8. MULTIFAMILY – CLASS A Distinguishing Factors: Age – typically less than 10 years old Designed with a community focus Gated for security Resort-style amenities: Business centers Washer/dryer hook-ups Upgraded appliances Enhanced fitness centers – gymnasiums Garages

9. RENTAL RATES – CLASS A $ 0 $ 200 $ 400 $ 800 $ 600 $ 1,000 $ 1,200 $ 1,400 $ 1,600 1 Bedroom2 Bedroom3 Bedroom $ 1,063 $ 943 $ 1,314 $ 1,208 $ 1,344 $ 1,445 20102011 2012

10. OCCUPANCY – CLASS A 2010 91% 9% 2011 92% 8% VacantOccupied 2012

11. MULTIFAMILY – CLASS B Distinguishing Factors: Age – typically older than 10 years old Older facilities with better locations General parking areas for tenants Laundry facilities in common areas Smaller recreational areas Amenities: Covered parking Fitness centers Multiple pools Multiple laundry facilities 2012

12. $686$696 $ 500 $ 600 $ 700 $ 800 $ 0 $ 100 $ 200 $ 400 $ 300 1 Bedroom2 Bedroom3 Bedroom $ 587 $ 598 $ 686 $ 696 $ 892 20102011 $ 900 $ 1,000 $ 926 RENTAL RATES – CLASS B 2012

13. OCCUPANCY – CLASS B 2010 97% 3% 2011 96% 4% VacantOccupied 2012

14. WHATS MOVING? University Place Apartments = 192 Units = Sold for $44,792/unit. Acadian House Apartments = 261 Units = Sold for $44,828/unit. Moss Gardens Apartments = 114 Units = Sold for $26,754/unit. Willow Park Apartments = 88 Units = Sold for $30,682/unit. Magnolia Apartments = 26 Units = Sold for $41,154/unit. South College Gardens = 60 Units = Sold for $41,667/unit Himbola Manor Apartments = 136 Units = Listed for $33,088/unit. (Under Contract) 2012

15. CONCLUSION Supply Absorption has been the going theme since 2009 with a sharp increase in Class A units. Occupancy levels may actually see an increase for 2012 with the lack of new construction expected to take place. While the Mortgage Industry is recovering, it may be some time before it affects the rental market. With unemployment levels expected to stay low due to the strong state of the oil industry and evolving local economy, the local rental market looks to remain strong for the short and mid- term. 2012