1. 1 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A ROCK APARTMENT ADVISORS Rock is the preeminent Apartment brokerage firm in the mid-south with over $1.5 billion in sales I N T R O D U C T I O N 1

2. 2 T U S C A L O O S A A P A R T M E N T M A R K E T R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 2 Why invest in Apartments?

3. 3 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 3 Three Measures INFLUENCERS FUNDAMENTALS TRANSACTIONS T U S C A L O O S A A P A R T M E N T M A R K E T

4. 4 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 4 Economic Influencers for Apartment Investors Focus University Demographics Housing Shortage T U S C A L O O S A A P A R T M E N T M A R K E T

5. 5 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 5 T U S C A L O O S A A P A R T M E N T M A R K E T

6. 6 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 6 T U S C A L O O S A A P A R T M E N T M A R K E T Enrollment and On-Campus Housing School Year Total Enrollment Number Change Percent Change Undergraduate Enrollment UG % Change Graduate Enrollment Grad % Change Freshman Living on Campus UG Living on Campus 2003 20,29015888440270.40%23.70% 2004 20,9296393.15%165684.28%4361-0.93%72.00%25.00% 2005 21,7938644.13%175505.93%4243-2.71%70.00%26.00% 2006 23,83820459.38%1947110.95%43672.92%91.00%29.00% 2007 25,54417067.16%210818.27%44632.20%91.00%29.00% 2008 27,01414705.75%223415.98%46734.71%88.80%29.80% 2009 28,69916856.24%237006.08%49996.98%90.70%29.40% 2010 30,23215335.34%248845.00%53486.98% N/A 29.70% 2011 31,74715155.01%262345.43%55133.09% N/A

7. 7 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 7 T U S C A L O O S A A P A R T M E N T M A R K E T 90% occupancy for total rental market prior to storm (of approximately 25,000 units)

8. 8 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 8 T U S C A L O O S A A P A R T M E N T M A R K E T

9. 9 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 9 Alabama Demographics of 20-34 year olds per MSA - 2011 City 20-34 year olds Total PopulationPercentage Tuscaloosa23,90677,90630.69% Birmingham228,0251,135,20320.09% Huntsville85,348430,97019.8% Montgomery80,747397,66321.27% Mobile86,029416,46220.66% T U S C A L O O S A A P A R T M E N T M A R K E T

10. 10 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 10 T U S C A L O O S A A P A R T M E N T M A R K E T

11. 11 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 11 T U S C A L O O S A A P A R T M E N T M A R K E T FUNDAMENTALS MATTER

12. 12 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 12 T U S C A L O O S A A P A R T M E N T M A R K E T T-TOWN SNAPSHOT Tight supply Growth in Income Supply Coming

13. 13 SubmarketOccupancy Rate Birmingham92.3% Huntsville92.1% Mobile91.4% Montgomery89.7% R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 13 Occupancy Rates Mid Year 2012 T U S C A L O O S A A P A R T M E N T M A R K E T 96.95% 96.6% 96.9%

14. 14 Source: David Wilson; Rock Apartment Advisors New Apartment Unit Deliveries R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A T U S C A L O O S A A P A R T M E N T M A R K E T

15. 15 Tuscaloosa New Construction/Pipeline Bluffs at Waterworks 115 Greensboro East Edge Standard at Tuscaloosa Townhomes at Metalworks Boulevard Lofts Riverwalk Place Under Construction Future Starts/ Speculative Future Starts/ Planned T U S C A L O O S A A P A R T M E N T M A R K E T DENIED Lofts at City Center Rock Point

16. 16 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 16 Recent Sales T U S C A L O O S A A P A R T M E N T M A R K E T Name: Inverness Price (2011): $12,500,000 Note Sale 208 units $60,100 per unit *Sold in December 2005 for $22,750,000/ $109,375 per unit* Name: Sterling Crimson Price: $49,850,000 $71,214 per bed 700 beds 6.5 Cap

17. 17 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A 17 Capital and Cap Rates T U S C A L O O S A A P A R T M E N T M A R K E T Cap rates have followed debt rates Class A Low to Mid 6 Class B Mid 6 to Low 7 Class C 9 up New capital formations on 50% of deals today Debt Standards higher but still available for development and acquisition

18. 18 R O C K A P A R T M E N T A D V I S O R S 18 R O C K A P A R T M E N T A D V I S O R S B I R M I N G H A M, A L A B A M A Questions? T h a n k y o u