1Q13 Absorption and Occupancy Rate Trends

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1 RED CAPITAL GROUP MARKET OVERVIEW Kansas City, MO-KS Multifamily Housing Update 13 June 2013 Payroll Job Summary Total Payrolls 986.3m Annual Change 5.7m(0.) 2013 Forecast 5.0m 2014 Forecast 6.4m 2015 Forecast 11.3m 2016 Forecast 13.5m Unemployment 6.1% (Apr) 13 Payroll Trends and Forecast After posting solid payroll job growth figures in the fall job creation decelerated significantly over the winter. Kansas City establishments added workers to payrolls at a 5,700-job, 0. year-on-year rate during 13, down from 18,800 and 11,200 in 12 and 12, respectively. Hiring was slower across sectors with the most notable declines observed in financial, education and business services and government. On a brighter note, preliminary April data were more robust as job counts increased by 6,900 over the trailing 12 months and the unemployment rate fell to 6.1%. Seasonally-adjusted data were consistent with y-oy comparisons. Expressed on this basis, K.C. payroll job counts fell -1,400 during 12 and by another -2,100 in 13. By contrast, April payroll totals advanced 1,700 jobs month-to-month. The RCR Kansas City payroll model is primarily influenced by lags U.S. payrolls and a measure of price inflation. Both promise to be subdued for the near term. Consequently, we foresee relatively sluggish job formation persisting through 2014, followed by growth in 2015 and Occupancy Rate Summary Occupancy Rate (Reis) 95.3% RED 50 Rank 35 th Annual Chg. (Reis) +1.1% RCR YE13 Forecast 95. RCR YE14 Forecast 95. RCR YE15 Forecast 95. RCR YE16 Forecast 95.1% 13 Absorption and Occupancy Rate Trends Weaker job creation trends gave rise to slower apartment absorption. According to Reis, renters occupied a net of 397 vacant units during 13, down from 622 and 570 in the prior and year earlier quarters, respectively. Indeed, it was the fewest units absorbed in a quarter in three years. Supply remained light (78 units), however, allowing average occupancy to improve 30 basis points sequentially and 90 bps year-on-year to 95.3%. This represents the highest occupancy level in 12 years and a 550 bps increase over 36 months. Twelve of K.C. s 17 submarkets recorded sequential quarter gains led by Wyandotte (0.8%) and Overland Park North (0.7%). Urban core submarkets were weaker: occupancy fell 80 and 60 bps, respectively, in Downtown and North Kansas City. Our models indicate that absorption is likely to outpace supply through early 2015, boosting metro occupancy by another 40 bps. The market should remain near equilibrium for the remainder of the 5-year forecast period as occupancy levels range in the 9 to 9 area. Effective Rent Summary Mean Rent (Reis) $695 Annual Change 2.8% RED 50 Rank 40 th RCR YE13 Forecast 2.8% RCR YE14 Forecast 2.9% RCR YE15 Forecast 2.9% RCR YE16 Forecast Effective Rent Trends Effective rents increased $2 (0.3%) sequentially during 13, down from 12 s $4 (0.7%) advance. Expressed on a year-on-year basis, rents were $19 (2.8%) higher, down from the prior quarter s 3.1% metric. Nevertheless, the performance marked the second strongest y-o-y advance recorded during the past five years. Submarket trends were broadly mixed as six posted sequential quarter declines and eleven chalked down gains. Growth in one submarket topped 1% (Shawnee/Lenexa) and three notched 0.7%-0.9% hikes (Plaza, Southwest and Wyandotte). Conversely, Midtown suffered the largest net decline (-0.) followed by Olathe and Raytown (-0.3%). Payroll, personal income, absorption and inflation are the principal independent variables influencing our K.C. rent model. Little change is anticipated in these variables through 2015 and therefore in metro rent trends as well. Income and payroll growth is projected to gain momentum in 2015, however, setting the stage for moderately faster rent growth in that year. 4Trade & Return Summary $3mm+ Sales 6 Approx. Proceeds $23.2mm Median Cap Rate (FNM) 6.3% Avg. Price/Unit $42,477 Expected Total Return 8. RED 46 ETR Rank RED RAI Rank 17 Th Risk-adjusted Index th 13 Property Markets and Total Returns Investors were active accumulators of Kansas City properties during 12, closing on 11 assets of 80 units or more. Pricing data were available for nine transactions totaling $246 million in proceeds. The average value per unit was $95,108. Trade was slower during the winter quarter as six larger properties exchanged hands. Price information was available for three sales. Proceeds aggregated $23.2mm or $42,477 per unit. Cap rates for institutional quality properties fell in the 5. to 7. range. Older class-b-/c assets were priced to yield 8% to 9%. In recent years, Kansas City properties have traded to a premium relative to other Midwest secondary markets. But the spread now appears to be compressed, leading RCR to raise the generic cap rate from 6.2 to 6.5. With a derived exit cap rate of 7.1% and our model rent and occupancy forecasts we estimate that a typical K.C. asset would produce an 8. unlevered rate of return over five years, ranking RED 46 seventeenth.

2 MARKET OVERVIEW 13 KANSAS CITY, MISSOURI-KANSAS Metro Occupancy Rate % 9 91% 9 89% RED 46 AVERAGE Metro Occupancy Rate Trends Source: Reis History, RCR Forecasts KANSAS CITY Metro Cap Rate Trends Source: efannie.com, RCR Calculations KANSAS CITY WEST NO CENT REGION Average Cap Rate % % 6.1% % 6.3% Q Q Q13 Annual Chg (000) Metro Payroll History and Forecast Source: BLS History, RCR Forecasts Metro Cap Rate Trends Source: efannie.com, RCR Calculations f 2014f 2015f 2016f 2017f K.C. 2.6 (36.5) (9.9) NOTABLE TRANSACTIONS NOTABLE TRANSACTIONS Property Name (Submarket) Property Class/ Type (Constr.) Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate New Longview (Lee s Summit) B+/GLR (2007) 18-Dec-2012 $24.0 $116, Park Edge (Shawnee/Lenexa) B+/GLR (1999) 21-Dec-2012 $24.0 $92, Library Lofts East (Downtown) B+/HR (1904) 26-Feb-2013 $12.8 $95, % Legend Oaks (Wyandotte) C+/GLR (1972) 28-Feb-2013 $3.1 $14, Arbor Square Apts. (Shawnee/Lenexa) B-/GRL (1971) 4-Mar-2013 $7.3 $37, RED CAPITAL Research June 2013

3 MARKET OVERVIEW 13 KANSAS CITY, MISSOURI-KANSAS YoY Rent Trend 3% 1% -1% - -3% - - Metro Effective Rent Trends Sources: Reis, Inc., Axiometrics, RCR Forecast RED 46 AVERAGE KANSAS CITY (AXIOM) KANSAS CITY (REIS/RCR) Metro Home Price Trends Source: FHFA Home Price Index Y-o-Y % Change U.S.A. KANSAS CITY % Metro Payroll Employment Trends Source: BLS, INSITUTE FOR ECONOMIC COMPETITIVENESS & RCR Y-o-Y % Change 1% -1% - U.S.A. KANSAS CITY -3% f 2014f 2015f 2016f The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED CAPITAL GROUP. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors. RED CAPITAL Research June 2013

4 SUBMARKET TRENDS Effective Rent Physical Vacancy Submarket Change Change Downtown/East Kansas City $685 $ % % Gladstone / Liberty $572 $ % % -1.9% Grandview / Far South $637 $ % -1. Independence $618 $ % 6.1% 4.8% -1.3% Lee's Summit $675 $ % 2.9% 2.3% -0. Merriam / Mission $677 $ % -0. Midtown $492 $ % 7.9% North Kansas City $570 $ % % -0.9% Olathe / Gardner $655 $ % 0.7% Overland Park North $767 $ % Overland Park South $917 $ % 4.1% 0. Platte $658 $ % -1.1% Raytown $590 $ % % Shawnee / Lenexa $706 $ % 4.3% % Southwest Kansas City $503 $ % University / Plaza $760 $ % Wyandotte $557 $ % -1. Metro $676 $ % % -0.9% Total Return 1 1 8% 5.9% K.C. (RAI=4.69) RED 46 AVG. (RAI=4.07) Total Return Distributions Source: RED CAPITAL Research 8.1% 7.8% 9.1% Proba bility of Ac hie ving Sta te d Re turn or Grea te r 10.7% RED CAPITAL GROUP For more information about RED s research capabilities contact: Daniel J. Hogan, Director of Research Kenneth H. Bowen, President, Red Mortgage Capital, LLC djhogan@redcapitalgroup.com khbowen@redcapitalgroup.com

5 RED CAPITAL GROUP MARKET OVERVIEW Kansas City, MO-KS Multifamily Housing Update 12 May 2012 Payroll Job Summary Total Payrolls 973.5m Annual Change +11.1m 2012 Forecast +11.2m 2013 Forecast +9.5m 2014 Forecast +10.1m 2015 Forecast +11.4m Unemployment 7. (Mar) 12 Payroll Trends and Forecast Metro payroll trends regained some of the momentum lost during the fourth quarter, rising at a 11,100-job, 1. year-on-year rate, up from the prior quarter s 8,200-job, 0.8% add. Seasonallyadjusted data were consistent, showing an 8,700 job net pick-up January to March, comparing favorably to s -8,600-job net payroll setback. Labor market trends benefited from improved conditions in the construction sector. The mild winter helped slow attrition from s -3,100-job pace to 300 in 12. By the same token, hiring in the business and hospitality services sectors continued at a robust pace as sector employers brought on workers at a 10,000-job annual rate, on par with s useful 10,200-job advance. RCR models project relatively stable growth conditions over the course of the next several years, consistent with recent history wherein KC has been less volatile than the nation in good times as well as bad. The model forecasts annual gains ranging from about 9,000 to 12,000 jobs, equating to 1. to 1.3% annual growth rates. Vacancy Rate Summary Vacancy Rate (Reis) 5. RED 50 Rank 36th Annual Chg (Reis) <1.9%> RCR YE12 Forecast 5. RCR YE13 Forecast 4.7% RCR YE14 Forecast 4.9% RCR YE15 Forecast Absorption and Vacancy Rate Trends Improving employment conditions spurred stronger space demand as tenants absorbed 592 units during the first quarter, up from 468 during the seasonally-stronger fall quarter. Although absorption fell 31% from the comparable period of 2011, the 12 s haul easily eclipsed the first quarter average of net move-outs. No new properties were completed in the first quarter, allowing average metro occupancy to rise 50 basis points sequentially and 190 bps year-onyear. Both statistics ranked in the top 10 outcomes recorded among the RED 50 markets. Only two submarkets suffered net tenant losses in : Independence and Wyandotte. Gladstone and Platte were the strongest Missouri submarkets, each welcoming roughly 85 net tenants, while Shawnee/Lenexa led Kansas areas, gaining 91. RCR models project further solid occupancy growth in 2012 and 2013, raising metro occupancy to about 95.3%. Supply pressures in 2014 are forecast to blunt further rate progress, however. Effective Rent Summary Mean Rent (Reis) $697 Annual Change 1.8% RED 50 Rank 46th RCR YE12 Forecast 2.1% RCR YE13 Forecast 1.9% RCR YE14 Forecast 2. RCR YE15 Forecast Rent Trends Leasing agents experienced resistance to face rent hikes despite constructive demand trends. Asking rents increased an average of only $1 (0.) sequentially and $9 (1.3%) year-on-over to $723, ranking 48th and 44th respectively among the RED 50. But concession levels declined materially in the first quarter, falling from the monthly equivalent of $59 in 11 to $57, thereby boosting sequential and y-o-y effective rent growth to a more robust 0. and 1.8%, respectively. Fourteen metro submarkets chalked down sequential effective rent increases, while Downtown (-0.); North K.C. (-0.) and Platte (-0.1%) recorded declines. By contrast, Lee s Summit registered a $14 (2.) sequential rent increase even as vacancy plunged 50 bps to 2.9%. Three other submarkets recorded 1% or greater quarterly gains, including Grandview (1.); Raytown (1.7%); and University Plaza. (1.9%). RCR models hold a cautious view of the future. Rents are likely to rise at a measured ( per year) pace through Trade & Return Summary $4mm+ Sales 3 Approx. Proceeds $44.0mm Median Cap Rate 7. Avg. Price/Unit $61,555 Expected Total Return 5.1% RED 46 ETR Rank 45th Risk-adjusted Index 1.54 RED RAI Rank 39th 12 Property Markets and Total Returns Sales velocity continued at a moderate pace over the winter as three multifamily properties valued at $4 million or more were known to close. Proceeds totaled $44mm and the average price per unit was $61,555. These data compare to 13 sales totaling $201mm consummated during CY11 at an average price per unit of $70,972. Cap rates applicable to high quality assets gravitated toward the 5. to 6. range. By contrast, agency refinances (on which the median rate in the sidebar is based) were sized employing considerably higher cap rates in most cases. The median cap rate applying to this group was 7. in 12. The marquis trade involved a 24-year old mid-rise located in the famed Country Club Plaza shopping district. The 97%+ occupied property was priced to the equivalent of $114,583/unit to yield an RCRestimated 6.. Employing a generic cap rate, RCR estimate expected total returns from K.C. assets of 5.1%, ranking 45th among the R46. Low volatility improves risk-adjusted returns, producing a 39th ranked 1.54 risk-adjusted index.

6 MARKET OVERVIEW 12 KANSAS CITY, MO-KS Metro Vacancy Rate Trends History, RCR Forecasts 11% Metro Vacancy Rate 9% 7% KANSAS CITY RED % % 4.9% 3% Metro Cap Rate Trends Source: efannie.com, RCR Calculations Average Cap Rate KANSAS CITY WST NO CENT REGION 7.9% % Q Q Metro Payroll History and Forecast Source: BLS Data, RCR Forecasts. Annual Chg (000) f 13f 14f 15f KANSAS CITY (36.7) (7.5) NOTABLE TRANSACTIONS Property Name (Submarket) Property Class/ Type (Constr) Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate The Neptune (University / The Plaza) A-/MR (1988) 9-Mar-2012 $11.00 $114, Rosehill Pointe Apts. (Lenexa) B/GLR (1983) 20-Mar-2012 $28.75 $57, % Fairways at Lakewood (Lee s Summit) A/GLR (2008) 2-May-2012 $29.30(est.) $107,056(est.) RED CAPITAL Research May 2012

7 MARKET OVERVIEW 12 KANSAS CITY, MO-KS YoY Rent Trend 3% 1% -1% - -3% Metro Effective Rent Trends, RCR Forecasts 2.1% RED 46 AVG 1.9% 2. KANSAS CITY Y-o-Y % Change Metro Median Home Sales Price Trends Source: N.A.R. Data, RCR Calculations KANSAS CITY 10 2Q Q U.S. Y-o-y Growth Rate 3% 1% -1% - -3% Metro Payroll Employment Trends Source: BLS Data, RCR Forecasts KANSAS CITY f 2013f 2014f USA The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED CAPITAL GROUP. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors. RED CAPITAL Research May 2012

8 SUBMARKET TRENDS Submarket Effective Rent Physical Vacancy Change Change Downtown / E. Kansas City $669 $ % 4.9% -4.9% Gladstone / Liberty $563 $ Grandview / Far South $625 $ % 7.3% % Independence $612 $ % % 0. Lee's Summit $653 $ % -1.1% Merriam / Mission $669 $ % % Midtown $476 $ % % -4. North Kansas City $561 $ % 6.7% Olathe / Gardner $646 $ % % Overland Park North $754 $ % 5.1% Overland Park South $899 $ % -1. Platte $656 $ % 8.1% % Raytown $573 $ % 11.9% 10.1% -1.8% Shawnee / Lenexa $693 $ % % -2. Southwest Kansas City $488 $ % % University / Plaza $747 $ % % Wyandotte $545 $ % 10.8% Metro $664 $ % % Total Return Total Return MetroProbability Cap Rate Trends Distribution Source: Source: efannie.com, RED CAPITAL RCR Research Calculations K.C. (RAI=1.54) 9. RED 46 Avg. (RAI=3.17) % 7.1% 7.1% 5.8% P roba bility of Ac hie ving S ta te d Re turn or Highe r RED CAPITAL GROUP For more information about RED s research and mortgage origination capabilities contact: Daniel J. Hogan, Director of Research Kenneth H. Bowen, President, Red Mortgage Capital, LLC djhogan@redcapitalgroup.com khbowen@redcapitalgroup.com

9 RED CAPITAL GROUP MARKET OVERVIEW Kansas City, MO-KS Multifamily Housing Update 11 April 2012 Payroll Job Summary Total Payrolls 973.5m 12 Y-o-y Chg. 11.1m FY m 2012 Forecast 7.7m 2013 Forecast 7.9m 2014 Forecast 18.1m Unemployment 7.7% (Feb) 11 Payroll Trends and Forecast Few metro labor market benefited more from the annual payroll revisions published by the BLS in March than Kansas City. Initial estimates of job growth released in the Current Employment Survey painted a fairly grim picture of the metro jobs scene, with persistent year-on-year losses continuing through the end of By contrast, revised figures revealed a fairly buoyant economy, characterized by moderate to strong job gains emerging mid-year 2010 and proceeding without fail through the first quarter By the numbers, KC added 9,800 payroll employees in 2011, a 1. advance, up from a 7,800-job loss in Hiring decelerated to some degree in 11, as y-o -y comparisons slowed to an 8,200-job pace and seasonally-adjusted tabulations showed sequential declines. But the 12 data suggest that the economy rebounded over the winter, expanding at a 11,100-job, 1. rate from January to March. RCR maintain a cautious outlook for 2012 and 2013, but the longer-term outlook is constructive. Vacancy Rate Summary Vacancy Rate 6.1% RED 50 Rank 37th Annual Change <1.9%> YE12 Forecast 5.7% YE13 Forecast 5. YE14 Forecast 5. YE15 Forecast 5.7% 11 Absorption and Vacancy Rate Trends Metro tenants expressed strong demand for apartment space in late 2011 and early Renters leased a net of 496 units in 11, down from 644 in and 930 in the year earlier period, but it was enough to lower the metro vacancy rate 40 basis points sequentially to 6.1%. Space absorption apparently accelerated in the seasonally weak winter quarter as occupancy improved another 50 bps in 12 to the 94. level, according to preliminary Reis data, a 10-year high. Thirteen of KC s 17 submarkets recorded positive absorption during 11, led by three state of Kansas submarkets: Overland Park North (93); Platte (82) and Wyandotte (73). Respective occupancy rates increase 40; 100 and 160 bps sequentially as a result. Conversely, demand was relatively soft in Raytown and Independence, where a total of nearly 60 net move-outs gave rise to -40 and -50 bps sequential occupancy rate declines. RCR models project slow occupancy gains over the next five years. But signs of strong payroll growth and occupancy gains point to a better outcome. Effective Rent Summary Mean Rent $673 Annual Change 1.7% RED 50 Rank 39th 2012 Forecast 1.8% 2013 Forecast 1.7% 2014 Forecast Forecast Rent Trends Robust tenant space demand notwithstanding, rent trends were tepid during 11 and the lackluster momentum carried over into the first quarter Asking and effective rents increased $1 (0.) and $2 (0.3%), respectively, in each case the smallest advanced observed since 10. Expressed on a year-on-year comparison basis, sequential rents were up only 1.7%, ranking 39th among the RED 50 markets and down from 2.3% in each of the prior quarters. Preliminary Reis data show another $1 (0.) asking rent gain in 12. The small increase left face rents just 1.3% above the year-earlier level, ranking among the bottom six of the RED 50 peer group for the 12 months ended in March. Downtown Kansas City and Olathe bucked the trend as Reis report 2. and 1. sequential effective rent gains in. On the other hand, conditions were soft in Midtown, Wyandotte and Platte, where effective rents tumbled 110, 160 and 100 bps, respectively, quarter-to-quarter. Trade & Return Summary 11 $2mm+ Sales 5 Approx. Proceeds $49.0mm Average Cap Rate 7. Avg. Price / Unit $58,783 Expected Total Ret 5.8% RED 45 ETR Rank 32nd Risk-adjusted Index 1.78/32nd Recent Property Market Review and Total Return Estimates Properties exchanged hands at a moderate pace over the ten months ended in April. Loopnet recorded only eight arms length transactions valued at $2 million or more during the period. Total proceeds amounted to $78.3mm. The average price of 834 units traded in 11 transactions valued at $2mm or more was $58,783. Trade activity slowed again in 12. Loopnet report only three closed transactions for total proceeds of $29.3mm. The average price of a unit was $56,466. Cap rates for class-a properties gravitated toward the mid- to high- range. Older properties traded at 7. or higher levels. The bellwether trade was a 2003-construction garden project located in Grandview. We estimate the cap rate on in-place NOI at 6.. Employing a generic purchase and terminal cap rate assumptions of 6. and 7., respectively, RCR estimate that a standard KC investment will generate a 5.8% annual total rate of return over a five-year holding period, ranking 32nd among the RED 45.

10 MARKET OVERVIEW 11 KANSAS CITY, MISSOURI KANSAS Metro Vacancy Rate 11% 1 9% 8% 7% 3% KANSAS CITY RED 45 AVERAGE Metro Vacancy Rate Trends History, RCR Forecasts % 5.7% 4.9% Average Cap Rate % 6. Metro and Region Cap Rate Trends Sources: Fannie Mae MBS & RCR KANSAS CITY 6.9% 6. WEST NO CENT REG % Q Q Metro Payroll Employment Trends Sources: BLS & RCR Forecast Annual Chg (000) f 2013f 2014f METRO NOTABLE TRANSACTIONS Property Name (Submarket) Property Class/Type (Construction Year) Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate Timberlakes Redbridge (Grandview) A/GLR (2002) 14-Nov-11 $26.7 $82, Soho South Lofts (DT/East KC) A-/MR (1899) 21-Dec-11 $8.6 $84, The Neptune (University/Plaza) B+/MR (1987) 12-Mar-12 $11.0 $114, Rosehill Pointe (Lenexa) B/GLR (1985) 5-Apr-12 $28.8 $57, % RED CAPITAL Research April 2012

11 MARKET OVERVIEW 11 KANSAS CITY, MISSOURI KANSAS Metro Effective Rent Trends, RCR Forecasts YoY Rent Trend RED 45 AVG KANSAS CITY % 2. Y-o-Y % Change 1 1 8% % -1 Metro Home Price Trends Source: FHFA All Transaction Home Price Index Metro Home Price Trends Source: FHFA Home Price Index. U.S.A. KANSAS CITY Metro Payroll Employment Growth Trends Sources: BLS data, IEC at UCF and RCR Forecasts Y-o-y Growth Rate - - KANSAS CITY USA f 2012f 2013f 2014f The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED CAPITAL GROUP. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors. RED CAPITAL Research April 2012

12 SUBMARKET TRENDS Submarket Effective Rent Physical Vacancy Change Change Downtown / East Kansas City $670 $ % 6.9% 5.1% -180 bps Gladstone / Liberty $564 $ % % -210 bps Grandview / Far South $623 $ % -230 bps Independence $605 $ % bps Lee's Summit $648 $ bps Merriam / Mission $664 $ % bps Midtown $469 $ bps North Kansas City $565 $ % 20 bps Olathe / Gardner $639 $ % bps Overland Park North $748 $ % 5.7% bps Overland Park South $894 $ % 5.3% bps Platte $652 $ bps Raytown $578 $ bps Shawnee / Lenexa $692 $ % 7.1% 5.1% -200 bps Southwest Kansas City $500 $ % 16.1% -180 bps University / Plaza $742 $ % -180 bps Wyandotte $548 $ % % -270 bps Metro $662 $ % % -190 bps RED CAPITAL GROUP For more information about RED s research and origination capabilities contact: Kenneth H. Bowen Daniel J. Hogan President, Red Mortgage Capital, LLC. Director, Research khbowen@redcapitalgroup.com djhogan@redcapitalgroup.com

13 RED CAPITAL GROUP Market Overview Kansas City, MO Multifamily Housing Update December 2010 EXECUTIVE SUMMARY A ccording to a new ranking system devised by the Brookings Institution, Kansas City posted above average economic performance during the tumultuous 2007 to 2010 period when compared to 149 global peers. The Jazz Capital ranked 59th overall in the rankings based on payroll and income trends and 7th among the 51 U.S. metro areas included in the study. But recent performance doesn t rate as highly. Indeed, K.C. figured 122nd overall with regard to the 2009 to 2010 period, surpassing only 7 U.S. peers. Employment data illustrate the problem. Metro payrolls fell at a 14,500-job, -1. pace in 10, making no progress relative to 2Q s -14,600-job rate of decline and comprehensively trailing the nation s 0. advance. On a seasonallyadjusted basis, metro establishments trimmed -7,900 positions from July to September, while total payrolls in October stood -10,100 jobs below the level recorded in December Across the board weakness among service producing industries was largely responsible. Metro core competencies like professional business, health care, telecom and hospitality services continued to hemorrhage jobs in, suffering collective attrition at a 5,400-job, -2. y-o-y pace. And, while some Midwest and Great Lake region metros received a timely boost from resurgent auto and export sales, K.C. s relatively small factory sector didn t have the heft needed to make a material contribution to payrolls. By way of forecast, RCR expect fullyear 2010 job losses to total 16,200 (-1.7%), beating the results from only a handful of Western Region metros and Detroit among the RED 50. But the future promises to be brighter. Our econometric model forecasts a return to net gains by next spring or so, with full-year gains of about 7,700 jobs in Hiring should accelerate in 2012 and 2013, generating l7,200 and 22,700 jobs, respectively. Apartment demand, by contrast, was exceptionally strong. Tenants absorbed 895 units from July to September, representing the largest onequarter harvest in five years. From March to September, tenants net leased 1,720 units, standing as the largest haul ever recorded in this market over a six-month period. Metro occupancy increased 70 basis points sequentially and 160 bps from March to September (to 91.3%) as a result, the latter metric ranking 9th best among the RED 50 for the period. Owners also exhibited stronger pricing power. Average metro face rents increased $3 (0.) quarter-to-quarter to $704. Moreover, concession costs receded, falling to 7. of gross rent revenue from 7. in 2Q, allowing effective rents to ascend 0. sequentially to $656. Effective rents advanced sequentially in 10 of 17 metro submarkets, with the largest gains (1.1% to 2.) recorded in suburban towns in Johnson County, including Lenexa, Olathe and Overland Park. Reis models forecast very advantageous trends in the K.C. market, boding well for investors. The service expects effective rent to rise at a 2.9% annual rate from , 20 bps faster than the U.S. metro average. With respect to occupancy, Reis project a 140 bps gain over the period, 10 bps greater than top 80 metro average. Cap rates for institutional quality assets are on the low side for the Midwest region at about 6.7. Using this rate, RCR estimate that a buyer of a generic asset would expect to realize a useful 8.7% 5-year unlevered return; 16th highest among the R50. Risk-adjusted returns also are above average, ranking 18th in the group. SNAP SHOT Vacancy (8.7% - 10) Effective Rents ($656-10) Cap Rate ( ) Employment (962.3m - 10) Y-o-y Projected change YE bps Unchd 0.8% bps 14.5m 16.2m KEY POINTS Metro apartment owners enjoyed a second consecutive quarter of near record tenant demand. Agents net leased 895 units in 10 after absorbing 825 in 2Q. The six month haul (1,720 units) was the largest ever recorded in any similar period since Occupancy rose 60 basis points sequentially and 10 bps year-over-year to 91.3%. Owners also found a bit of pricing traction. Effective rent increased $4 (0.) to $656 quarter-to-quarter, representing the fastest growth recorded in more than two years. The metro employment market continued to significantly under-perform the national average. Metro payrolls declined at a 14,500- job, -1. year-on-year pace in, comparing unfavorably to the nation s 0. gain. Little improvement was observed in October when a 14,800-job loss was reported over the previous 12-month period. Property market activity remained thin. Only one institutional-quality apartment exchanged hands from July to November: a 10-year old Lenexa garden complex. RCR estimate that the investment will yield 6. to the buyer, based on current operations.

14 Kansas City, Missouri-Kansas MSA Q VACANCY TRENDS Kansas City apartment owners experienced some of the strongest sustained apartment demand in the past 20 years and perhaps the history of this market. After leasing a net of 825 units in 2Q10, tenants moved into a net of 895 in 10. The third quarter performance was the strongest in five years, and the six-month haul appears to be the greatest ever recorded in this metropolitan area. Occupancy increased 60 basis points sequentially and 130 bps from March to September, settling at 91.3%. MP/F Research report a 92.7% September occupancy rate, up 290 bps from December. The service avers that 9 or higher occupancy rates are ubiquitous in upscale Johnson County suburban communities. RANK: 39 th out of 50 Reis expect metro vacancy to fall further to 7.9% by year-end Metro Vacancy Rate 11% 1 9% 8% 7% Apartment Vacancy Trends KANSAS CITY U.S.A. 8.7% RENT TRENDS Pricing power reemerged over the summer. Reis report that average asking rents increased $3 (0.) sequentially to $707, while the cost of the typical lease concession declined. As a result, effective rents advance $4 (0.) sequentially to $656, highest in over two years. Rent gains were strongest in upscale Johnson County submarkets. Lenexa posted an impressive $17 (2.) sequential quarter surge, while Overland Park and Olathe chalked down 1.1% to 1.3% gains. M/PF report a 1. effective December to September rent advance. Reis expect metro effective rents to increase at a 2.9% average annual rate from 2011 to 2014, 10 bps faster than the RED 50 average. RANK: 27 th out of 50 Reis forecast a $4 (0.) effective rent hike during the fourth quarter. YoY Rent Trend 3% 1% -1% Metro Rent Trends ASKING EFFECTIVE 0.9% 0.8% PROPERTY MARKET & CAP RATE TRENDS Real Capital Analytics observed only three consummated apartment sales transactions in the Greater Kansas City area during the first ten months of Gross proceeds totaled $21 million. The service counted 21 listed properties offered for sale. The aggregate listed prices of the offered properties was $181 million in October. The bellwether trade was closed in July. A 10-year old, 160-unit, class-a garden project in Lenexa sold for $12,433,000 or $77,706 per unit. RCR estimate that the property will yield the purchaser about 6. on current income. The estimated cap rate was well below average for the region and suggests that investors are willing to bid aggressively for high-quality, Kansas City suburban properties. Employing a 6.7 purchase cap rate assumption, RCR estimate that a buyer of a generic Kansas City MFH property would expect to earn an 8.7% un-levered return over five years, 16th highest in the RED 50. Cap Rate Metro Multifamily Cap Rate Trend Trade Composite NOTABLE TRANSACTIONS Property Name (Submarket) Property Class Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate Pinnacle Pointe (Lenaxa) A- 27-Jul-2010 $12.43 $77, Tiffany Manor (Platte) B- 14-Aug-2010 $7.41 $33, RED CAPITAL Research

15 Kansas City, Missouri-Kansas MSA - Q Median PX (000) Metro Median Single Family Home Prices Source: N.A.R. $240 $220 KC US $200 $180 $160 $140 $120 $100 '06 '07 '08 2Q 2Q DEMOGRAPHICS & HOUSING MARKET The median price of a Kansas City metro home sold in 10 was $141,400, down 3.3% from the comparable period of 2009 and 6.1% from 2Q. By comparison, Midwest prices fell 3. and 2.. Data from the Federal Housing Finance Agency all transaction repeat sale index indicate that the value of Kansas City homes declined only -0. y-o-y in 10, up from 2.9% in the prior quarter. HousingTracker.net report that the median listing price of metro homes declined 0.9% in November and 5. over the previous twelve months to $158,800. According to RealtyTrac.com, 1.2 of metro households received a notice of default or foreclosure during 10, the 70th highest rate recorded among the 206 largest United States metro areas. Annual Chg (000) Rate % 1% -1% - -3% Payroll Employment Growth Source: BLS Data & RCG Research Forecast Year-over-year Payroll Growth Rate Source: BLS, IEC/UCF, RCR KC ACTUAL KC FORECAST USA ACTUAL USA FORECAST f11f12f13f f 12f 13f EMPLOYMENT TRENDS Non-Seasonally Adjusted Labor market conditions remained weak in 10, badly trailing the national average. Metro payrolls declined at a 14,500-job, -1. annual rate, immaterially different than 2Q s 14,600-job, -1. pace. Job losses in the retail trade, professional business and financial services and government sectors were largely responsible. The foregoing experienced collective attrition at a 10,400-job rate during, exhibiting a deteriorating trend from 2Q s 9,100-job y-o-y loss. October data were disappointing. Total metro payrolls declined by -14,800 jobs from the comparable period of Nearly one-half of the cuts (7,300) were attributable to the government sector. The metro unemployment rate stood at 8. in September, down 30 basis points from the same month in By the same token, total employment as indicated in the Household Survey data series, fell -18,223 jobs year-over-year. The decline in the unemployment rate was due entirely to a 23,778-worker reduction in the labor force. Seasonally-Adjusted Seasonally-adjusted data also were soft. On this basis, metro establishments trimmed 7,900 jobs from payrolls during, comparing unfavorably to the 3,200 jobs lost during the same period of Payrolls fell 200 jobs in October, a distinct improvement from the 2,900-job loss recorded during the comparable period of Seasonally-adjusted payrolls fell 13,300 jobs from May to October. Forecast The RED CAPITAL Reasearch payroll employment model is relatively optimistic about the future. After posting a 16,200-job loss in 2010, the model projects gains of 7,700-, 17,200 and 22,700-jobs in 2011, 2012 and 2013, respectively. 1 1 RED Estimated Generic Unlevered Asset Total Return Probabilities KC (RAI=3.75) STL (RAI=4.37) 8.7% 9.9% % 7.8% 8.7% % Probability of Achieving Stated Return or Greater RED CAPITAL Research

16 SUBMARKET TRENDS Submarket Effective Rent Physical Vacancy Change Change Downtown / East Kansas City $643 $ % bps Gladstone/Liberty $579 $ % 70 bps Grandview / Far South $621 $ % 8.1% bps Independence $596 $ bps Lee's Summit $630 $ bps Merriam/Mission/Pr. Village $648 $ % -160 bps Midtown $479 $ % bps North Kansas City $575 $ bps Olathe / Gardner $619 $ % bps Overland Park North $740 $ % % 10 bps Overland Park South $844 $ % -160 bps Platte $630 $ % bps Raytown $570 $ % bps Shawnee / Lenexa $685 $ % bps Southwest Kansas City $500 $ % 17.9% 80 bps University / Plaza $734 $ % 8.3% bps Wyandotte $552 $ % % -40 bps Metro $650 $ % % 10 bps SUPPLY TRENDS Reis added no new units to its metro inventory for the second consecutive quarter. A 201-unit second phase of an Overland Park South garden project with traditional and loft apartments received a final certificate of occupancy in November. Rents range from $629 to $1,335, equating to about $1.05 per square foot. Five apartment projects are currently under construction. Reis report that one will be completed in 2010: a 74-unit phase of a complex in the city of Gardner, Johnson County. Two are expected to be delivered in 2011: a 47-unit infill unit in Downtown Kansas City, Missouri, and a 276-unit garden project in Overland Park. Units 2,500 2,000 1,500 1, ,000 Completions and Absorption Source: Reis, Inc Completions Absorption f 11f Year-to-date through October, building permits for only 331 multifamily units were issued in metro area. This compares to fullyear totals of 1,403 units in 2009 and 2,085 units in There are plenty of deals on the shelf, however. Reis list 28 planned projects incorporating 3,214 market rate rental units. A 376-unit 4-story project in Downtown Kansas City, Missouri was 5 occupied in September, about 10 months after its debut. Rents averaged $1,339. Daniel J. Hogan Director of Research djhogan@redcapitalgroup.com William T. Hinga Business Development wthinga@redcapitalgroup.com RED CAPITAL GROUP Two Miranova Place Columbus, OH RED CAPITAL GROUP The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED CAPITAL GROUP. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors.

17 RED CAPITAL GROUP Market Overview Kansas City, Missouri Multifamily Housing Update May 2010 EXECUTIVE SUMMARY A rea employers continued to shed jobs, albeit at a slower rate in the first four months of A monthly year-over-year average of -34,300 (-3.) jobs were eliminated in 2009 but only -18,400 (-1.9%) jobs were cut in the twelvemonth period ended in April. Improved conditions in three employment super-sectors were largely responsible. The construction, manufacturing and business service sectors accounted for nearly two-thirds (-21,900) of the jobs lost last year. But the pace of attrition decelerated to only -8,400 jobs y-o-y in April. Data from the BLS s household survey also revealed a modest job market improvement in the first quarter. Indeed, total employment fell -20,530 (-2.) y-o-y in 10, following a -23,956 (-2.) y-o-y decrease in the previous quarter. As a result, the metro unemployment rate rose from 8. in March 2009 to 9.3% in the same month this year. Seasonally-adjusted payroll trends remained negative in the first quarter as metro establishments cut -5,200 jobs from January to March, only moderately better than the -7,900-job decline observed in the previous period. Fortunately, the Manpower Employment Outlook Survey suggests that job counts will advance in 2Q10. In March, 1 of surveyed firms expressed plans to hire workers during 2Q10, more than twice the share of firms that plan to contract (7%). RED CAPITAL Research (RCR) believe that the recovery will not take hold in KC until next year. Our econometric payroll model produces point estimates of -11,100 (-1.1%) jobs lost this year, followed by gains of 13,400 (1.) and 23,200 (2.) jobs in 2011 and 2012, respectively. Economy.com forecast gains of 4,260 jobs in 2010 and 23,800 in Housing market indicators for Kansas City were mixed in the first quarter. Median sales price data from both the National Association of Realtors and the Kansas City Regional Realtor Association revealed y-o-y price gains. But the Federal Housing Finance Agency (FHFA) home price index, utilizing a repeat-sales approach, shows that metro home values dipped -4. y-o-y in 10. Apartment development surged, producing a 120 basis point sequential drop in the metro occupancy rate from 90.9% in 09 to 89.7% in 10. Developers completed 988 units from January to March, the largest singlequarter tally in the past twelve years. Weak apartment demand also was to blame as tenants vacated 456 units in 10 and 879 units in the year-ended in March. But Reis are bullish regarding future apartment demand. The source predicts that occupancy will rise to 90.1% by year-end and to 92. by Owners trimmed concessions from 7.1% of asking rent in 09 to 6.9% in 10. As a result, effective rent rose 0. sequentially and was unchanged y-o-y in 10. Reis believe that rent trends will remain sluggish through year-end but improve thereafter. The service forecasts that effective rent will rise $1 to $653 by December and at a 2. average annual rate from 2011 to Apartment trade activity was thin over the past year. Real Capital Analytics estimate that sales volume totaled only $31 million in the yearended in May. Marcus & Millichap report that cap rates for stabilized properties in close-in submarket were around 8.. Cap rates for distressed assets, on the other hand, exceeded 10.. CBRE estimate that cap rates for stabilized Class-A assets ranged from 6.7 to 7. in March. SNAP SHOT Vacancy (10.3% - 10) Effective Rents ($652-10) Cap Rate (N/A - 10) Employment (953.0m - 10) KEY POINTS Y-o-y Projected change YE bps unchg N/A 40bps 0.3% 28.8m 11.1m The apartment vacancy rate increased 120 basis points sequentially and 170 basis points year-over-year to 10.3% in 10. Weak tenant demand was largely to blame. Negative net absorption totaled 879 units and developers completed 1,152 units in the twelve-month period ended in March. Effective rent rose 0. sequentially in 10, marking the second consecutive quarterly increase. As a result, effective rent was unchanged year-over-year, following a -0.8% annual decline in the previous quarter. Metro home prices improved in the first quarter. According to the National Association of Realtors, the median price of a single-family MSA home increased 3. year-over-year from $126,600 in 09 to $130,700 in 10. Real Capital Analytics report that sales volume totaled $31 million in the twelvemonth period ended in May, down sharply from the $109 million sales tally in the previous year. Likewise, the average price per unit decreased -58. year-over-year to $30,984.

18 Kansas City, MO-KS MSA - Q VACANCY TRENDS Apartment demand was weak in the first quarter, contributing to a 120 basis point increase in vacancy from 9.1% in 09 to 10.3%. Negative net absorption totaled 456 units and developers completed 988 units from January to March. Additionally, supply (1,152 units) outpaced demand (-879 units) in the twelve-month period ended in March, driving vacancy up 170 basis points. According to Marcus & Millichap, supply was to blame for a 110 basis point increase in Class-A vacancy from 7.8% in 09 to 8.9% in 10. By comparison, Class B/C vacancy rose only 40 basis points sequentially to 10.. Reis predict that demand will rebound, resulting in a 40 basis point decrease in vacancy to 9.9% by year-end. RANK: 40 th out of 50 Metro Vacancy Rate 1 1 8% Apartment Vacancy Trends Kansas City U.S.A % RENT TRENDS Metro effective rent rose 0. sequentially, marking the second consecutive quarterly gain. As a result, effective rent was unchanged year-over-year, following a -0.8% annual decrease in the previous period. Marcus & Millichap note that the delivery of luxury apartment assets contributed to a 1.1% sequential increase in the average asking rent among Class-A properties. By contrast, the source estimates that the average Class B/C asking rent decreased -0.8% sequentially to $603. At 5., the fastest pace of annual effective rent growth was recorded in the Lee s Summit / Prairie submarket. YoY Rent Trend 3% 1% -1% - -3% - Metro Rent Trends Asking Effective % Reis expect effective rent to rise $1 to $653 by year-end and at a 2. average annual pace from 2011 to RANK: 10 th out of PROPERTY MARKET & CAP RATE TRENDS Real Capital Analytics identified ten investor-grade transactions involving properties priced at or above $1 million in the twelve-month period ended in May. Sales data were available for six of the trades, totaling $31 million in sales proceeds, down from $109 million in the previous period. Similarly, the average price per unit plunged -58. to $30,984. Marcus & Millichap report that cap rates for stabilized properties in close-in submarkets traded at cap rates around 8.. Data from the March CBRE cap rate survey shows that going-in yields for stabilized Class-A assets ranged from 6.7 to 7.5. At 7.8%, the Kansas City expected rate of total return ranked tenth highest among the RED 50. Moreover, the metro boasted the 14 th highest measure of risk-adjusted return in the group. Cap Rate 1 9% 8% 7% Metro Multifamily Cap Rate Trend 2Q 2Q NOTABLE TRANSACTIONS Property Name Property Class Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate RED CAPITAL Research

19 Kansas City, MO-KS MSA - Q Prices (000) Metro Median Single Family Home Prices Source: National Association of Realtors $240 MSA US $220 $200 $180 $160 $140 $120 $ Q Y Y Y DEMOGRAPHICS & HOUSING MARKET The pace of population growth decelerated from 1.7% in 2008 to 1.1% in 2009, despite an increase positive net domestic migration from 2,311 residents to 3,929. According to the National Association of Realtors, the median price of a single-family MSA home increased 3. year-over-year from $126,600 in 09 to $130,700 in 10. Similarly, the Kansas City Regional Association of Realtors calculate that the average home price was $142,901 in the first four months of 2010, above the $133,527 average price in the same period of the previous year. Conversely, the FHFA home price index declined -4. year-overyear in 10. Likewise, HousingTracker.net estimate a $167,450 median asking price for single-family homes and condos in April, down -6. year-over-year. Annual Chg (000) Rate Payroll Employment Growth Source: BLS Data & RCG Research Forecast f 11f Year-over-year Payroll Growth Rate Source: BLS Kansas City USA EMPLOYMENT TRENDS Non-Seasonally Adjusted The pace of annual payroll attrition decelerated from -35,600 (-3.) in 09 to -28,800 (-2.9%) in 10. Moreover, only -18,400 (-1.9%) jobs were lost in the twelve-month period ended in April. Turnarounds among construction, manufacturing and administrative support service firms contributed to the improvement. Construction firms eliminated -1,800 positions from payrolls year-over-year in April, much better than the -6,500 job year-over-year decrease observed in 09. Likewise, the pace of annual manufacturing job loss moderated from -7,000 in December to -2,700 in April. Administrative support service firms created 1,400 net new jobs year-over-year in April, the first gain since April Financial service providers, on the other hand, shed jobs at a faster rate in recent months. A net of -900 jobs were lost year-over-year in 09 and -2,800 jobs were eliminated year-over-year in April. Seasonally-Adjusted On a seasonally-adjusted basis, the pace of sequential quarter job loss decelerated from -7,900 in 09 to -5,200 in 10. Data from the Manpower Employment Outlook Survey, suggest that headline job trends will improve in 2Q10. In March, 1 of surveyed firms planned to add staffs, comparing favorably to the 7% of companies that expected to trim payrolls. Forecast RCR expect employment conditions to rebound in Our econometric model produce point estimates of -11,100 (-1.1%) payroll jobs lost this year followed by a 13,400 (1.) job gain in RANK: 24 th out of RED Estimated Generic Unlevered Asset Total Return Probabilities Kansas City St. Louis % % 6.3% 7.3% 3.8% 10.8% RED CAPITAL Research

20 SUBMARKET TRENDS Submarket Effective Rent Physical Vacancy Change Change Downtown / East Kansas City $649 $ bps Midtown $490 $ % bps Gladstone / Liberty $580 $ % % 220 bps North Kansas City $585 $ % 5.7% bps University / Plaza $737 $ % bps Raytown $569 $ % % -30 bps Southwest Kansas City $509 $ % 18.8% 17.7% -110 bps Grandview / Far South $614 $ % % 250 bps Merriam / Mission $646 $ % 7.9% 10.8% 290 bps Overland Park North $732 $ % 90 bps Overland Park South $855 $ % 7.8% 100 bps Olathe / Gardner $620 $ % 4.9% bps Independence $602 $ % 80 bps Lee's Summit / Prairie $609 $ % 7.9% 60 bps Wyandotte $554 $ % 10.3% bps Platte $630 $ % bps Shawnee / Lenexa $694 $ % 9.3% 120 bps Metro $652 $ % 170 bps SUPPLY TRENDS Completions and Absorption Source: Reis, Inc Apartment developers completed four apartment properties totaling 988 units in the first quarter. The largest assets were located in the Gladstone / Liberty (324 units), Downtown / East Kansas City (323 units) and Olathe / Gardner (309 units) submarkets. Reis were aware of four apartment assets (211 units) under construction in May. All four of the properties contained fewer than 100 units and three of the four properties (163 units) are scheduled to open later this year. By contrast, the development pipeline was stout, containing 6,383 planned or proposed apartment units. Four condo properties also were under construction (337 units) in May. Two of the properties (219 units) are located in the Overland Park South submarket and the other two assets are in the Shawnee / Lenexa and Lee s Summit / Prairie submarkets. Units 2,500 2,000 1,500 1, Completions Absorption , f 11f Daniel J. Hogan Director of Research djhogan@redcapitalgroup.com William T. Hinga Business Development wthinga@redcapitalgroup.com RED CAPITAL GROUP Two Miranova Place Columbus, OH RED CAPITAL GROUP The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED CAPITAL GROUP. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors.