2Q13 Absorption and Occupancy Rate Trends

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1 RED CAPITAL GROUP MARKET OVERVIEW Tampa, Florida Multifamily Housing Update 13 August 2013 Payroll Job Summary Total Payrolls 1,189.5m Annual Change 34.0m(2.9%) 2013 Forecast 33.0m 2014 Forecast 32.5m 2015 Forecast 30.7m 2016 Forecast 30.8m Unemployment 7. (June) Occupancy Rate Summary Occupancy Rate (Reis) 95.3% RED 50 Rank 35 th Annual Chg. (Reis) +1. RCR YE13 Forecast 95.5% RCR YE14 Forecast 95. RCR YE15 Forecast 95. RCR YE16 Forecast Payroll Trends and Forecast Payroll job creation expressed on a year-over-year comparison basis continued at a brisk clip during the second quarter, rising at a 34,000-job, 2.9% annual rate, the largest 12-month add recorded since. Service industries remained the principal motivating forces as business, health care, education and leisure service concerns added workers at a 21,800-job, 4.3% rate, up from 21,400 during. Retailers also expanded aggressively, growing headcount by 6. y-o-y. Seasonally-adjusted data were less encouraging. This series indicates that Tampa employers hired 13 Absorption and Occupancy Rate Trends Tampa apartment occupancy continued its rapid ascent as tenants absorbed 634 units during the quarter, comparable to the 637 occupied during the comparable period of As no new supply was delivered, average occupancy soared 40 basis points sequentially and 120 bps year-on-year, according to Reis, reaching a 13-year high 95.3%. Axiometrics surveys of larger properties found an average 13 occupancy rate of 93.9%, up 50 bps sequentially and 110 bps year-over-year. only 2,400 workers in, down from 16,900- and 12,300-job adds in 12 and 13. Indeed, attrition of -3,900 positions was observed in June. RCR s payroll model indicates that the most likely outcome for Tampa employment trends is steady, to 3% annual net headcount growth for the duration of the five-year forecast period. Gains are expected to range from about 30,000 to 35,000 jobs per year. Net payroll growth in 2014 should total about 33,000, with an indicated 30. probability of a 50,000-job or greater net increase and 17.1% probability of a net job loss. Fourteen of 17 metro submarkets recorded sequential quarter occupancy gains, the exceptions being North Pinellas (-0.1%) and University South and Brandon (unch d). Central St. Pete (2.1%) and Temple Terrace (1.5%) posted the largest gains. The pace of supply is expected to accelerate but our models do not foresee that it will overtake demand before Until that time, occupancy is likely to improve, reaching a peak of about 95. in mid Solid rent fundamentals will encourage new development, however, resulting in moderate occupancy decreases in Effective Rent Summary Mean Rent (Reis) $842 Annual Change 2.9% RED 50 Rank 20 th RCR YE13 Forecast 2. RCR YE14 Forecast 2.7% RCR YE15 Forecast 2.9% RCR YE16 Forecast 2.9% 13 Effective Rent Trends Reis report that effective rent growth was sluggish for the second consecutive quarter, rising $5 (0.) sequentially to $842. This follows s fivequarter low $4 (0.) advance. As a result, the year-on-year rent comparison fell from 3. in 13 to 2.9%, causing Tampa to slip to 20th rank among the RED 50 from #11. Axiometrics surveys of larger properties found greater vigor. The service reported same-store y-o-y rent growth averaging 4.5% during 13, matching 13 results. Effective rents increased sequentially in every Tampa submarket with the three exceptions: Pinellas Park (-0.1%) and Clearwater and Pinellas Beaches (unch d). North St. Petersburg, Temple Terrace and Westshore recorded the fastest growth, each posting a 1. advance. The RCR payroll model anticipates moderate, 2. to 3. rent growth for the duration of the five-year forecast period producing a 2.9% compound annual growth rate. Reis foresee a 2. CAGR, while Axiometrics expect annual compound growth of 3.1% for the five years ended 17. Trade & Return Summary $3mm+ Sales 17 Approx. Proceeds $375mm Avg. Cap Rate (FNM) 6.5% Avg. Price/Unit $81,944 Expected Total Return 7.7% RED 46 ETR Rank RED RAI Rank 24 Th Risk-adjusted Index rd 13 Property Markets and Total Returns Sales of properties of 80 units or more surged during the second quarter as 17 assets exchanged hands, up from 11 during the first quarter. Proceeds totaled approximately $374 million and the average unit priced at $81,944. These metrics compare to $183mm and $62,148/unit recorded during the first quarter. Cap rates ranged from the mid- area for class-a infill mid-rise trophies to the high- to low-7% area for 1980s vintage class-b garden projects. Class-B+ and A suburban garden properties of late-nineties or later vintage or traded to going-in yields in the high-5% to-mid- range. RCR believe that 5.75% is a good proxy for Tampa institutional quality apartment properties, although higher yields may be available in secondary locations. Using this level, a 6. terminal cap rate and our model-derived occupancy and rent forecasts we estimate that an investor would expect to earn a 7.7% annual total return in Tampa, 24 th highest among the RED 46. Risk-adjusted returns are comparable, ranking peer group 23 rd.

2 MARKET OVERVIEW 13 TAMPA, FLORIDA Average Occupancy Rate 9 95% 9 93% 9 91% 9 89% 8 RED 46 AVERAGE Metro Occupancy Rate Trends Source: Reis History, RCR Forecasts TAMPA Average Cap Rate 7.5% % % % 6.1% 7.1% Metro Cap Rate Trends Source: efannie.com, RCR Calculations % TAMPA SOUTH ATL REGION Annual Chg (000) Metro Payroll History and Forecast Source: BLS History, RCR Forecasts f 2014f 2015f 2016f 2017f TAMPA (41. 6) (69. 9) (11. 0) NOTABLE TRANSACTIONS NOTABLE TRANSACTIONS Property Name (Submarket) Property Class/ Type (Constr.) Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate Lofton Place (North Hillsborough) B+/GLR (1988) 29-Apr-2013 $26.0 $92, % Broadstone Citrus Vill. (No Hillsborough) A-/GLR (2012) 6-May-2013 $42.0 $141, % Mosaic Westshore (Central Tampa) A+/MR (2010) 29-May-2013 $43.0 $204, % Abby at Forest Lakes (North Pinellas) B/GLR (1988) 30-May-2013 $33.0 $80, Westbury at Lake Brandon (Brandon/PC) B+/GLR (2002) 21-Jun-2013 $38.8 $1, RED CAPITAL Research August 2013

3 MARKET OVERVIEW 13 TAMPA, FLORIDA Metro Effective Rent Trends Sources: Reis, Inc., Axiometrics, RCR Forecast YoY Rent Trend % 2. RED 46 AVERAGE TAMPA AXIOMETRICS SAME-STORE TAMPA (REIS/RCR) 2.9% Y-o-Y % Change Metro Home Price Trends Source: FHFA Home Price Indices and RCR Forecasts U.S.A. TAMP A SO ATL REGION f 2014f 2015f 2016f 2017f 3. Metro Payroll Employment Trends Source: BLS, Institute for Economic Competitiveness at UCF & RCR 2.5% Y-o-Y % Change % 1. U.S.A. TAMPA-ST. PETE 0.5% f 2014f 2015f 2016f 2017f 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 August 2013

4 SUBMARKET TRENDS Effective Rent Physical Vacancy Submarket Change Change Brandon / Plant City $910 $ % bps Central Saint Petersburg $733 $ % bps Central Tampa $1,129 $1, % % -170 bps Clearwater $814 $ % bps Largo $732 $ % bps MacDill AFB $940 $ % 3.5% -120 bps North Hillsborough $873 $ % 3.9% 5.3% 140 bps North Pinellas $838 $ % % -90 bps North Saint Petersburg $831 $ bps Pasco County $693 $ % 8.3% 6.5% -180 bps Pinellas Beaches $734 $ % 9.9% bps Pinellas Park $759 $ bps Sulphur Springs $761 $ % bps Temple Terrace $711 $ % 9.3% -200 bps University North $691 $ % 6.5% 4.5% -200 bps University South $688 $ % % -50 bps Westshore $858 $ % bps Metro $818 $ % 5.9% 4.7% -120 bps Total Return TAMPA (RAI=3. 76) RED 46 AVG. (RAI=3.89) Total Return Distributions Source: RED CAPITAL Research 7.3% % 9.3% Proba bility of Ac hie ving Sta te d Re turn or Grea te r 9. 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 Tampa, Florida Multifamily Housing Update 11 October 2011 Payroll Job Summary Total Payrolls: 1,125.6m Annual Change: + 5.8m 2011 Forecast + 9.5m 2012 Forecast +17.8m 2013 Forecast +24.1m Unemployment 11. (Aug) 11 Payroll Trends and Forecast Payroll job growth was sluggish in the second quarter, proceeding at a 5,800-job, 0.5% year-onyear pace, up from s 2,700-job, 0. performance. Faster hiring was observed in the business, financial and hospitality service and retail trade sectors, which collectively expanded at a 11,400-job rate, up from 4,100 jobs in. These gains were partially offset by weaker trends in the construction, government and health care sectors. Preliminary data suggest that the labor market gained momentum in July and August when y-o-y advances accelerated to 10,500- and 14,800-job rates, fueled largely by hospitality sector growth. Seasonally-adjusted data also were constructive, showing a net 7,700-job July and August increase. RCR models suggest that trends will continue to improve over the next 10 quarters. We expect 12- month payroll gains to average about 16,000 jobs through YE11, setting the stage for creation of nearly 18,000 jobs in 2012; 25,000 jobs in Vacancy Rate Summary Vacancy Rate (Reis) 6.9% RED 50 Rank 35th Annual Chg (Reis) -2.9% RCR YE11 Forecast 6. RCR YE12 Forecast 6.3% RCR YE13 Forecast 5.9% Absorption (11) 683 units 11 Absorption and Vacancy Rate Trends The pace of unit absorption slowed for the third consecutive quarter as property owners leased a net of 683 units, down from 890 in, 1,441 in 10 and 843 in 10. No new supply was added to stock, however, allowing occupancy to increase 40 basis points sequentially to 93.1%, the highest level recorded in more than two years. Fourteen of Tampa s 17 submarkets recorded sequential occupancy gains, excluding only Central St. Pete, University North and MacDill. The largest gains were recorded in submarkets immediately north of Downtown (University South, Temple Terrace and Sulphur Springs), where occupancy rates rose 80 to 90 bps from March to June. Reis expect tenants to absorb another 1,354 units in 2H11 and 1,635 in 2012, raising occupancy 120 bps by YE12 to 94.. RCR models generate more conservative results, projecting gains closer to 60 bps over the same time frame. Reis and RED models converge over the longer-term, however, as both foresee metro occupancy gravitating toward the low 9 area by Effective Rent Summary Mean Rent (Reis) $797 Annual Change 1.9% RED 50 Rank 32nd RCR 2011 Forecast 4.1% RCR 2012 Forecast 3.7% RCR 2013 Forecast 4. CAGR % 11 Rent Trends The pace of rent growth also appears to have decelerated in the spring. After surging $6/0. sequentially in 10 and $5/0. in 11 effective rents advanced only $1/0.13% to $797 in. As a result, rent growth measured on a year-overyear basis declined from 2. in 11 to 1.9%. Effective rents tumbled sequentially in four submarkets, including North St. Pete, University North, Pinellas Park and Westshore. Rent trends were comparatively robust in East Hillsborough County, especially in Brandon/Plant City, where a $14 / 1. sequential rent gain was recorded. Reis expect rents to rise 2.7% in 2011, followed by 3. advances in both 2012 and The RCR model foresees faster growth in keeping with our projection of faster payroll job growth. Our model forecasts a stout 4.1% y-o-y advance in 11 (implying a net gain of about $20 in 2H), followed by useful annual gains in 2012 and 2013 in the high-3% to low- range. Trade & Return Summary $5mm+ Sales 32 Approx. Proceeds $495.5mm Cap Rate (T-12 Median) 6.5% Avg. Price/Unit $59,422 Expected Total Return 7. RED 46 TR Rank 9th R.A.I / R.A.I. Rank 19th 11 Property Markets and Total Returns Real Capital Analytics report that investors consummated 32 purchases valued at $2.5mm or more during the first half 2011 for total proceeds of $495mm. Apartment units were valued at an average price of $59,422. Initial yields averaged 6.. Trophies traded in the mid to high-5s, while standard assets generated mid- yields. REITs were net sellers of Tampa assets in recent months. A large public trust took advantage of a strong bid from local management companies and national fund managers to divest three metro assets at cap rates in the mid- range. Employing a 5.1% acquisition cap rate, RCR estimate that the expected five-year un-levered total return for NYC assets is 7., the 9th highest among the RED 46 and the highest among Florida metros. Risk-adjusted returns also were useful, ranking 19th among the peer group. Tampa assets generate above group average yields in every probability bucket, with upside potential to 9.7%.

6 MARKET OVERVIEW 11 TAMPA, FLORIDA Apartment Vacancy Trends 11%, RCR Forecasts Metro Vacancy Rate 1 9% 7% 5% TAMPA TAMPA FORECAST RED % 6.9% 6.3% 5.9% 5.9% 5.7% Average Cap Rate 8.5% % % % % 4. Metro Multifamily Cap Rate Trends Sources: Fannie, Freddie, RCR, Reis & RCA F NM / FMC US F NM / FMC MID-ATL REGION REIS TAMPA (T12 AVG) % Annual Chg (000) Payroll Employment Growth Source: BLS Data & RCG Research Forecast f 12f 13f NOTABLE TRANSACTIONS Property Name (Submarket) Property Class Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate Marbrisa (North Hillsborough) B 7-Sep-2011 $15.5 $69, % Citrus Falls (North Hillsborough) A 16-Aug-2011 $30.3 $110, Sable Palm Carrollwood (N. Hllsbgh) B+ 15-Jul-2011 $39.0 $90, % Tuscany Ridge (Brandon) A 26-May-2011 $56.0 $90, % RED CAPITAL Research October 2011

7 MARKET OVERVIEW 11 TAMPA, FLORIDA Apartment Effective Rent Trends, RCG Forecasts 4.1% 3.7% 4. YoY Rent Trend - - RED 46 RED 46 FORECAST TAMPA TAMPA FORECAST % Metro Median Single Family Home Prices Source: S&P Case-Shiller Index 5% TAMPA SPX20 Y-o-Y % Change -5% -1-15% -2-25% Rate 1% -1% - -3% - -5% - Year-over-year Payroll Growth Rate Source: BLS, RCG Research Forecasts TAMPA -7% f 2012f 2013f 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 October 2011

8 SUBMARKET TRENDS Submarket Effective Rent Physical Vacancy Change Change Pinellas Beaches $710 $ % % -90 bps Central St. Petersburg $696 $ % 7.9% bps North St. Petersburg $809 $ % % -190 bps Largo $730 $ % bps Pinellas Park $717 $ % -290 bps Clearwater $786 $ % 8.5% 5.9% -260 bps North Pinellas $792 $ % -370 bps North Hillsborough $835 $ % % -250 bps University North $657 $ % -270 bps Westshore $841 $ % bps Sulphur Springs $718 $ % -450 bps University South $659 $ % bps Temple Terrace $671 $ % 13.7% bps Central Tampa $1,045 $1, % % -950 bps Brandon / Plant City $865 $ % % -270 bps MacDill AFB $895 $ % bps Pasco County $634 $ % bps Metro $782 $ % % -290 bps RED CAPITAL GROUP For more information about RED s research capabilities contact: Daniel J. Hogan Director of Research djhogan@redcapitalgroup.com William T. Hinga Business Development wthinga@redcapitalgroup.com

9 RED CAPITAL GROUP Market Overview Tampa, Florida Multifamily Housing Update June 2011 EXECUTIVE SUMMARY The Great Recession and subsequent recovery proved damaging to the Tampa Bay economy. During the 18-month recession, year-over-year employment losses averaged 52,400 jobs per month. Furthermore, the first 18-months of recovery were only moderately better as annual job attrition only slowed to 33,200 jobs per month. Fortunately, job growth turned positive in the new year. Through April, average monthly y-o-y job growth totaled 4,000 (0.); metro headcounts were falling at a 37,200 (-3.) job clip in the same period of The renaissance was aided by faster hiring among retailers, leisure service and government establishments. Moreover, positive over-theyear growth was observed in the manufacturing and financial service sectors in April, the sectors first gains in more than four years. The recovery was finally evident in the Tampa job market early this year, but the journey ahead to pre-recession employment levels is long. Both Economy.com and the Institute for Economic Competitiveness (IEC) at the University of Central Florida project pre-recession employment parity to occur in With regard to the near-term employment outlook, the RED CAPITAL Research (RCR) econometric model predicts annual gains of 14,100 (1.3%) in 2011 and 34,700 (3.1%) jobs in Economy.com project gains of 32,700 and 31,300 jobs, while IEC economists foresee slower growth of 3,900 and 26,900 jobs in 2011 and 2012, respectively. Despite modest employment growth, conditions in the for-sale housing market continued to deteriorate in the first quarter. The median singlefamily MSA home price calculated by the National Association of Realtors fell 15. y-o-y to $113,600. And, the two repeat sales price indices also revealed tumbling prices. The first quarter FHFA purchase-only price index fell 11.9% and the March Case-Shiller home price index decreased 6.9%. Rental market conditions strengthened, however. The metro occupancy rate increased 60 basis points sequentially and 290 basis points y-o-y to 92. in 11. Robust apartment demand contributed to the improvement. Managers of Class-A assets net leased 2,638 units and positive net absorption totaled 2,816 Class B/C units in the year-ended in March. By comparison, only 1,257 units were added to the metro rental stock during the year. Reis foresee continued occupancy improvement through the end of the year. Property managers pushed rents less aggressively in the first quarter, but Reis foresee robust growth in the balance of the year. After rising 0.9% in the fourth quarter, the pace of sequential quarter effective rent growth slowed to 0.5% in 11. As a result, the rate of annual effective rent growth also decelerated from 2.3% to 2.. On the other hand, Reis expect effective rent to advance at a 5.1% y- o-y pace by year-end, reminiscent of pre-recession rent trends. Real Capital Analytics note that investors purchased 38 multifamily properties in the six-month period ended in April. Sales volume totaled $582.8 million and the average price per unit was $68,938. According to CB Richard Ellis cap rates for stabilized Class-A assets ranged from 5.25% to 6. in February. Based on a 5.1% assumed cap rate, RCR calculate an 8. expected rate of total return, ranking 41 st among the RED 50, and a 3.54 risk-adjusted return index, 33 rd highest in the group. SNAP SHOT Vacancy ( ) Effective Rents ($796-11) Cap Rate (N/A - 11) Employment (1,117.2m - 11) K EY POINTS Y-o-y Projected change bps 70bps % N/A 2.7m 14.1m The metro vacancy rate fell 60 basis points sequentially owing to strong apartment demand and limited supply. Positive net absorption totaled 395 units for Class-A and 464 units for Class B/C assets during the first quarter. By comparison, no units were completed during the quarter. The average effective rent increased 0.5% sequentially and 2. year-over-year to $796 in 11. Effective rent growth was partially fueled by falling concessions. The size of the average concession package fell to 5.7% of asking rent in 11, down from 6.3% in the same period of According to the National Association of Realtors, the median price of a single-family MSA home decreased 15. year-overyear from $133,900 in 10 to $113,600 in 11. Likewise, metro home values decreased 11.9%, based on the FHFA purchase-only home price index. Real Capital Analytics were aware of 38 transactions involving properties priced at or above $5 million in the six-month period ended in April. Asset sales volume totaled $582.8 million and the average price per unit was $68,938.

10 Tampa-St. Petersburg-Clearwater, Florida MSA - Q VACANCY TRENDS Property managers net leased 863 units during the first quarter, producing a 60 basis point decrease in vacancy from 7. in 10 to 7.. Additionally, vacancy plunged 290 basis points as apartment demand (5,451 units) outpaced supply (1,257 units) in the year-ended in March. Vacancy in the Temple Terrace submarket rose 10 basis points yearover-year to 13.7%, owing to sluggish tenant demand. By comparison, vacancy rates in the each of the 16 remaining submarket declined overthe-year. Same-store occupancy among the 14,658-unit public REIT inventory rose 40 basis points sequentially and 50 basis points year-over-year to 95.. Reis expect metro vacancy to fall to 6.5% by year-end. RANK: 35 th out of 50 RENT TRENDS After rising at a 0.9% sequential pace in the fourth quarter, the average effective rent advanced at a moderately slower 0.5% rate in 11. Likewise, year-over-year effective rent growth was a tepid 2., inhibited by declining effective rent in the Central St. Petersburg, Largo, University North and Westshore submarkets. Mangers of Class-A assets were more aggressive as upper tier asking rent advanced 2. year-over-year, whereas Class B/C asking rent rose only 0.. Public REITs pushed same-store average rents up 2. year-over-year to $881. Reis foresee rapid effective rent growth (5.1%) this year. RANK: 30 th out of 50 Metro Vacancy Rate YoY Rent Trend Apartment Vacancy Trends 10.1% Tampa U.S.A. Metro Rent Trends Asking Effective PROPERTY MARKET & CAP RATE TRENDS Real Capital Analytics were aware of 38 investor-grade transactions totaling $582.8 million in sales proceeds in the six-months ended in April. The source calculates an average price per unit of $68,938. Loopnet.com count 11 trades involving properties priced at or above $5 million and five trades involving properties priced above $30 million in the first five months of The CB Richard Ellis cap rate survey, shows that cap rates for stabilized Class-A assets ranged from 5.25% to 6. in February. Cap Rate 1 9% 7% 5% Metro Multifamily Cap Rate Trend Based on a 5.1% assumed cap rate, RCR calculate an 8. expected rate of total return, shy of the 9. RED 50 average. Similarly, Tampa registered the 33 rd highest measure of risk-adjusted return in the group NOTABLE TRANSACTIONS Property Name Property Class Date of Total Price Estimated Cap Price per unit Transaction (in millions) Rate Estates at Tuscany Ridge A May 2011 $56.0 $124, % Westbury at Lake Brandon A April 2011 $33.1 $90, % Sabal Palms at Boot Ranch A February 2011 $44.2 $102, % Promenade at Carillon Center A February 2011 $34.2 $102, RED CAPITAL Research

11 Tampa-St. Petersburg-Clearwater, Florida MSA - Q Prices (000) Annual Chg (000) Rate Metro Median Single Family Home Prices Source: National Association of Realtors $220 MSA US $200 $180 $160 $140 $120 $ Y Y Y Payroll Employment Growth Source: BLS Data & RCG Research Forecast f 12f Year-over-year Payroll Growth Rate Source: BLS - - Tampa USA DEMOGRAPHICS & HOUSING MARKET Data from the 2010 Census shows that the metro population increased at a 1.5% compound average annual rate from 2000 to 2010, despite declining population in Pinellas County. Tactician Corporation project slower (0.) annual population growth through According to the National Association of Realtors, the median price of a single-family home in the Tampa-St. Petersburg-Clearwater MSA plunged 15. year-over-year from $133,900 in 10 to $113,600 in 11. Repeat-sales indices reveal similar price declines in Tampa: the FHFA purchase only home price index fell 11.9% and the Case- Shiller home price index decreased 6.9% in the twelve-month period ended in March. Falling prices contributed to increased sales activity. The Greater Tampa Association of Realtors count 5,312 sales of single-family homes and villas, up 9. from the same period of EMPLOYMENT TRENDS Non-Seasonally Adjusted Employers in the Tampa metro area created 2,700 (0.) net jobs year-over-year in the first quarter, the first over-the-year gain observed since. Moreover, preliminary data show that payroll headcounts rose 7,800 (0.7%) in the year-ended in April. Hiring among skilled service professions contributed to the improvement. Business service firms added a monthly year-over-year average of 2,500 jobs in the first four months of Likewise, education and health service providers created a combined 3,100 jobs year-overyear in 11. The metro unemployment rate fell to 10.5% in April, down from an 11. rate recorded in the same month of Strong job growth (total employment rose 0.9% year-over-year) and a shrinking labor force (-0.) were responsible for the improvement Seasonally-Adjusted On a seasonally-adjusted basis, payroll employment headcounts rose 7,900 in the first four months of By contrast, area employers created only 500 jobs in the comparable period of Forecast The RCR econometric payroll model predicts that MSA employment will rise 14,100 (1.3%) in 2011 and 34,700 (3.1%) in Economists at the University of Central Florida s Center for Economic Competitiveness are less optimistic, projecting annual payroll gains of 3,900 (0.) and 26,900 (2.) jobs in 2011 and 2012, respectively. RANK: 41 st out of 50 15% 1 5% RED Estimated Generic Unlevered Asset Total Return Probabilities Tampa Orlando 9.1% % 8.1% % 10.7% 9.9% RED CAPITAL Research

12 SUBMARKET TRENDS Submarket Effective Rent Physical Vacancy Change Change Pinellas Beaches $710 $ % 10.5% -120 bps Central St. Petersburg $699 $ % 6.9% bps North St. Petersburg $791 $ % bps Largo $730 $ % 10.5% bps Pinellas Park $714 $ % bps Clearwater $783 $ % % -230 bps North Pinellas $787 $ bps North Hillsborough $841 $ % bps University North $668 $ % bps Westshore $843 $ % -310 bps Sulphur Springs $711 $ % 7.1% -440 bps University South $654 $ % bps Temple Terrace $656 $ % 10 bps Central Tampa $1,028 $1, ,000 bps Brandon / Plant City $848 $ % -330 bps MacDill AFB $913 $ % bps Pasco County $637 $ % % -10 bps Metro $779 $ % bps SUPPLY TRENDS Developers complete eight apartment projects totaling 2,246 units last year. But no units were delivered in the first five months of Moreover, Reis were aware of only one metro apartment asset under construction in June. The 296-unit North Hillsborough submarket property is scheduled to debut in March of next year. As market conditions improve and construction financing becomes more readily available, the metro rental stock will grow. Reis identify 13 apartment projects in the planning phase, that would add 3,671 units to the apartment inventory. The properties are located in the North Hillsboro (1,209 units), Central Tampa (1,048 units), Pasco County (600 units), North St. Petersburg (401 units), Westshore (254 units) and Central St. Petersburg (159 units) submarkets. Only one condo property was under construction in June. The 71-unit Clearwater submarket property is scheduled to open next April. Units 7,000 6,000 5,000 4,000 3,000 2,000 1, ,000-2,000-3,000 Completions and Absorption Source: Reis, Inc Completions Absorption f 12f 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.

13 RED CAPITAL GROUP Market Overview Tampa, Florida Multifamily Housing Update July 2010 EXECUTIVE SUMMARY T he Tampa Bay labor and commercial real estate markets exhibited improved performance in the first half 2010, but economic momentum remained weak and the recovery fragile. BLS seasonallyadjusted payroll data show that Bay Area establishments added to payrolls for the first time in 26 months in January, and created net jobs in three of the next five months. But first half gains amounted to only 6,600 jobs, offsetting less than 5% of the losses recorded since 20. By the same token, office and industrial space absorption turned positive in 10 for the first time in over two years, according to Cushman & Wakefield, but market vacancy rates remained elevated (20.3% and 8.9%) and new leases were written at rent levels observed 10 or 12 years ago. Not-seasonally-adjusted payroll data suggest that faster hiring in the business and hospitality services, retail trade and government sectors catalyzed recent employment gains. Establishment in these industries added 2,000 workers in 10 (expressed on a year-on-year comparison basis), up from net attrition at an 11,400-job pace in. As result, total metro payrolls declined at a 30-month best 16,000-job, -1. pace, up from s 36,000 (-3.1%) job retreat. Conditions in the housing market also progressed. A total of 2,9 metro area homes were sold in June, the most since August 20. The average price was up year-on-year for the third consecutive month and the forsale inventory declined to 6.5 months of sales, a 4-year low. Moreover, general levels of mortgage distress appeared to crest, giving rise to hope that bank REO sales may begin to subside in relatively short order. The RCR econometric payroll model indicates Tampa y-o-y payroll comparisons should exceed parity by late summer and accelerate to five-digit growth rates by early Therefore, after chalking down a fourth consecutive down year in 2010 (- 11,100 jobs), Tampa should add 34,300 jobs in 2011; 44,600 in After seeing net occupied stock fall in 5 of the previous 6 quarters, apartment demand soared in 10, and preliminary 10 reports suggest that the rally was sustained in the spring. Tenants absorbed a net 1,182 units from January to March, the largest three-month haul recorded in 4 years. Consequently, average occupancy advanced 60 basis points sequentially to 89.9%, the fourth largest move among the RED 50. Metro occupancy climbed another 30 bps in, implying absorption of 775 units, after accounting for 418 units of new supply. Average effective rents increased $6 (0.) in, the 8th fastest up move among the R50. Asking rents also advanced $4 (0.5%), but preliminary data suggest that face rent levels retreated $1 April to June to $830. Neighborhoods where rents fall below the metro average posted the largest gains, especially the USF area and Central St. Pete, where gains ranged from December to March. Reis expect occupancy to improve steadily over the next several years, rising to about 91. by But the service is less sanguine regarding rents, projecting a 2. annual growth rate from 2011 to 2014, falling short of the 2. RED 50 mean. Cap rates for recently acquired metro assets fall in a wide 5.5% to 8.5% range, but RCR are of the mind that 6.5% represents a good generic average. Using this level, we estimate expected unlevered total returns of 7., equal to the R50 mean; however at 2.65, the Cigar City s riskadjusted index ranks 23 rd in the group. SNAP SHOT Vacancy (10.1% - 10) Effective Rents ($779-10) Cap Rate (6.7% - 10) Employment (1,120.3m - 10) KEY POINTS Y-o-y Projected change YE bps 30 bps bps 0.9% Neutral 36.0m 11.1m After posting negative net absorption in 5 of the previous 6 quarters, apartment demand soared in 10. Tenants leased a net of 1,182 units, raising average occupancy 60 basis points sequentially to 88.9%. Reis report that occupancy rose 30 bps in 10. First quarter rents increased by an average of 0., the sixth strongest gain recorded among the RED 50 markets. Unfortunately, second quarter results were less robust. Metro payrolls increased in 4 of the first 6 months of 2010, adding 6,600 jobs in all. But the metro labor market entered the second half lacking strong momentum, having added only 2,400 jobs in, the majority in the form of temporary Census workers. RCR expect the labor market to find its footing by 11, when the job creation rate should exceed 10,000 positions year-on-year. Bulk condo purchases and distressed asset resolutions dominated the property markets, but investors shopped for performing assets as well. Of note, a national multifamily developer acquired in March a 400-unit, class-a North Hillsborough trophy for $1,250 a unit to yield about 5.5%.

14 Tampa - Saint Petersburg - Clearwater, FL MSA - Q VACANCY TRENDS Pent-up demand for apartments was unleashed in 10 as tenants leased a net of 1,182 units, sending average metro occupancy 60 basis points higher to 89.9%. Preliminary data suggest that about 775 units were absorbed from April to June, raising occupancy to 90.. MPF Research reported a 91.1% average March occupancy rate. Five publicly traded real estate trusts with substantial Tampa holdings (14,292 units) reported a 50 bps sequential same store occupancy gain to 95.1% during 10. Occupancy was 110 bps higher year-over-year. Properties in the Central Tampa submarket struggled to overcome the effects of rapid inventory growth. After expanding the stock by 2 in two years, the submarket vacancy rate hovered near 2 in March. RANK: 38 th out of 50 Reis expect occupancy to rise 200 basis points (to 91.) from YE10 to YE14 Metro Vacancy Rate 1 1 Apartment Vacancy Trends TAMPA U.S.A. 10.1% RENT TRENDS Reis report that average Tampa asking rents increased 0. quarter-onquarter. In addition, moderate concessions burn-off allowed effective rents to climb further, rising by an average of $6 (0.) to $779. Metro Rent Trends By contrast, five public real estate trusts posted a $4 (-0.5%) sequential quarter weighted average effective rent decrease to $856. MPF Research recorded a 0.3% effective rent advance in 10, but opined that a reversal of recent aggressive hikes may be in the offing. Preliminary 10 data published by Reis suggest that owners did encounter price resistance: asking rents fell $1 (-0.1%) March to June. Reis target a $780 average effective rent metric for year-end RANK: 35 th out of 50 YoY Rent Trend - - ASKING EFFECTIVE PROPERTY MARKET & CAP RATE TRENDS Metro Multifamily Cap Rate Trend Bulk condo and distressed asset trades formed the majority of 1H10 apartment property trade. Real Capital Analytics identified 20 multihousing trades valued at $1.5mm or more closed from January to June. Seven were bulk condo unit sales, and eight were bank or special servicer REO liquidations. A life company divested a 400-unit class-a garden project in North Hillsborough submarket for an average price of $1,250 per door. RCR estimate that the buyer a national partnership specializing in up-managing luxury apartment complexes and hotels will earn an initial yield of about 5.5% from the investment. A public REIT sold a 1985-vintage, class-b project for $61,1 per unit, yielding a quoted 8. yield. RCR estimate an initial yield in the high-7% area. Cap Rate % % % % NOTABLE TRANSACTIONS Property Name Property Class Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate Lexington Park (No. Hillsbrgh) A 15-Mar-2010 $42.5 $1, % Sienna Bay (No. St. Petersburg) B -Mar-2010 $16.9 $61,1 8. Tuscany (Brandon) A 08-Apr-2010 $50.1 $111, Lincoln Shores (No. St. Petrsbrg) B 11-Jan-2010 $24.2 $38, RED CAPITAL Research

15 Tampa - Saint Petersburg - Clearwater, FL MSA - Q Appreciation Annual Chg (000) Rate 5% -5% -1-15% -2-25% -3-35% Year-over-year Home Value Change Source: S&P Case-Shiller Index, RCR TAMPA Payroll Employment Growth Source: BLS Data & RCG Research Forecast Year-over-year Payroll Growth Rate Source: BLS, Woodley Park Research, RCR TAMPA ACT TAMPA FORECAST USA ACTUAL USA FORECAST CSX f11f12f f 12f Apr- 08 Aug- 08 Dec- 08 Apr- 09 Aug- 09 Dec- 09 Apr- 10 DEMOGRAPHICS & HOUSING MARKET Tampa metro population growth slowed for the fourth consecutive year in 2009, falling to a decade-low 17,265 (0.63%) persons. The principal cause was the decline of domestic in-migration flows to a modern-era low of 4,663 individuals. International migration was steady. The Tampa Case-Shiller property resale index was negative on a yearover-year basis for the 40th consecutive month in April, declining 2.. The decrease was the smallest recorded since February 20, however, and bested the Detroit, Las Vegas and Seattle indices among the twenty markets making up the Case-Shiller CSX20 index. The N.A.R. report that the median price of a home sold during 10 was $133,900, a decline of -1. from the comparable period of Tampa area realtors registered a third consecutive year-on-year home price increase in June. Moreover, home sales reached a four-year high. EMPLOYMENT TRENDS Non-Seasonally Adjusted Payroll comparisons remained in the red through June After posting a 36,000-job, -3.1% year-on-year payroll loss for 10, the pace of job attrition slowed in, falling to a 16,000-job, -1. rate. June payrolls were 11,700 jobs below the 2009 comparison, representing the smallest y-o-y decline since August 20. Improvement in annual comparisons was largely attributable to firmer conditions in the retail trade, hospitality services and business services sectors. Retailers trimmed 800 positions y-o-y in 10, the best metric registered since. Buoyed by surging usage of contract laborers, business service headcounts actually increased by 1,500 workers and increased tourism activity gave rise to stronger accommodations sector trends. The metro unemployment rate stood at 11.7% in May, the lowest level observed since August Seasonally-Adjusted Seasonally-adjusted payrolls increased in January after 25 consecutive monthly declines. Job counts increased in three of the next five months, producing a cumulative year-to-date increase of 6,600 jobs. Temporary Census hires distorted the data series to some degree. The Census Bureau hired about 5,000 workers in May and terminated most of the positions in June. Consequently, payrolls advanced by 9,000 jobs in May and subsequently declined by 5,000 jobs in June. Forecast RCR models project that Tampa will post its first positive year-overyear payroll comparison in 39 months during September, leading to an 8,600-job, 0.7% y-o-y advance in 10. Growth should continue to accelerate throughout 2011, generating a 34,300-job gain next year and a 44,600-job add in % 1 5% RED Estimated Generic Unlevered Asset Total Return Probabilities TAMPA (RAI=2.65) HOU (RAI=2.23) 7.5% 8.3% % 5.5% 5.7% % 11.7% Probability of Achieving Stated Return or Greater RED CAPITAL Research

16 SUBMARKET TRENDS Submarket Effective Rent Physical Vacancy Change Change Brandon / Plant City $838 $ bps Central St. Petersburg $709 $ % 7.1% 6.9% -20 bps Central Tampa $1,022 $1, % 21.9% bps Clearwater $783 $ % bps Largo $727 $ % 10.5% 80 bps MacDill Air Force Base $934 $ % % 50 bps North Hillsborough $879 $ % bps North Pinellas $8 $ % 6.3% bps North St. Petersburg $821 $ % -70 bps Pasco County $660 $ % 9.3% bps Pinellas Beaches $760 $ % 11.7% 60 bps Pinellas Park $741 $ % bps Sulphur Springs $725 $ % % 270 bps Temple Terrace $671 $ % 10.9% bps University North $677 $ % 9.9% -20 bps University South $687 $ % bps Westshore $842 $ bps Metro $793 $ % 10.1% 40 bps SUPPLY TRENDS After delivering nearly 5,000 investor grade apartment units in 2008 and 2009, developers assumed a more cautious posture. Reis identify only two projects encompassing a total of 651 units currently under construction in the service s coverage area. In addition, a 351-unit project is underway in Riverview, outside the boundaries of Reis s Tampa footprint. There is no shortage of product on the shelf, however; Reis count twenty large projects in the planning phase, incorporating a total of 5,538 units. Seven (2,141 units) are located in the Central Tampa submarket where the average vacancy rate was 18. in March. A 395-unit, 30-story Downtown tower was about 7 occupied in March at rents averaging $2,143 following a 15-month lease-up. A quasi-loft property in the Hyde Park North neighborhood was 93% occupied in March at rents averaging about $1,530. The property began welcoming tenants during the first quarter Units 6,000 5,000 4,000 3,000 2,000 1, ,000-2,000-3,000 Completions and Absorption Source: Reis, Inc 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.

17 RED CAPITAL GROUP Market Overview Tampa, Florida Multifamily Housing Update December 2009 EXECUTIVE SUMMARY C onditions in the Tampa job market continued to deteriorate in 09. On an annual basis, the pace of payroll job attrition accelerated from -53,500 (-4.3%) in 09 to -57,000 (-4.7%). Likewise, total employment, as measured by the BLS s household survey, declined -71,394 (-5.7%) year-over-year in 09, following a -60,082-job annual decrease in the previous period. The business service super-sector posted the largest absolute job decline as firms trimmed -15,900 positions from payrolls y-o-y in 09. But the composition of job loss changed. In the first half of the year, administrative support service firms eliminated a monthly y-o-y average of -7,900 jobs, larger than the -6,700-job average among professional, scientific and technical service firms. But the roles were reversed in 09 as professional service employment fell -8,700 y- o-y and administrative support headcounts declined -6,500 y-o-y. Construction employment declined for the 33 rd consecutive month in October (measured on a y-o-y basis) but the pace of job loss moderated in recent months. An uptick in singlefamily home development was partially responsible. The number of single-family housing starts rose from 708 in 09 to 915 in 09. Consequently, a net of -14,200 construction jobs were lost y-o-y in 09 and -11,800 were eliminated in 09. RED CAPITAL Research (RCR) have an optimistic for future payroll trends. Our econometric model predicts that after a dismal 50,700-job loss in 2009, employers will add 7,200 (0.) positions to payrolls in 2010 and another 39,600 (3.3%) jobs in The Institute for Economic Competitiveness at the University of Central Florida are less optimistic, forecasting a small -4,600 (-0.) job decrease next year, followed by robust hiring (+20,100 jobs) in Home price trends remained weak. According to the National Association of Realtors, the median single-family home price decreased -20. y-o-y from $173,400 in 08 to $137,400 in 09. Data from the Case-Shiller home price index revealed that home values declined -16.7% in the twelvemonth period ended in September. Apartment occupancy continued to erode in 09 due to weak demand. The average occupancy rate decreased 50 basis points sequentially and 220 bps y-o-y to 90.1%. Tenants vacated a net of 809 units in 09 and 1,483 units in the twelve-month period ended in September. Developers compound the problem by delivering 2,2 new units from 08 to 09. Reis believe that occupancy will continue to fall through The service forecasts negative net absorption to contribute to a 10 basis point decrease in occupancy to 90. by year-end 2009; and in 2010 Reis forecast occupancy to fall another 40 bps to 89.. Apartment owners cut average asking rents $12 (-1.) sequentially to stem the tenant exodus. Effective rents declined by a smaller amount, falling $9 (-1.1%) to $776, marking the second consecutive quarterly sequential effective rent fade. In respect to class performance, Marcus & Millichap suggest that Class-A asking rent trends outperformed the class-b/c segment, gaining 0.1% y-o-y compared to a 3.9% dip in B/C rents. Metro asset trade activity was relatively thin year-to-date. According to Real Capital Analytics sales volume fell -41.1% y-o-y to $282 million in the first 11 months of At an assumed 7.5% cap rate, RCR calculate a 6. expected rate of total return, ranking 12 th among the RED 50. SNAP SHOT Vacancy (9.9% - 09) Effective Rents ($776-09) Cap Rate (7.9% - 09) Employment (1,157.3m - 09) KEY POINTS Y-o-y Projected change bps 2.3% 3.3% 130bps 10bps 57m 50.7m Weak tenant demand was to blame for rising vacancy in the third quarter. Negative net absorption totaled 809 units in 09 and 1,483 units in the twelve-month period ended in September. As a result, the metro vacancy rate rose 50 basis points sequentially and 220 basis points year-overyear to 9.9%. Asking and effective rent trends were also negative in the third quarter. The average effective rent fell -1.1% from $785 in 09 to $776 in 09. Additionally, the third quarter figure was -2.3% below the metric from the comparable period of The National Association of Realtors report that the median price of a single-family MSA home fell -20. year-over-year to $137,400 in 09. By comparison, the source calculates an -11. annual decline in the US median single-family home price. Real Capital Analytics count 22 trades involving properties priced at or above $5 million in the first 11 months of The average price per unit was $52,375, down -26. from the same period last year. RCR calculate a 6. expected rate of total return, better than the 5. RED 50 average.

18 Tampa - St. Petersburg - Clearwater, Florida MSA VACANCY TRENDS Tenants vacated 809 units during the third quarter, resulting in a 50 basis point increase in vacancy from 9. in 09 to 9.9%. Similarly, the vacancy rate rose 220 basis points year-over-year as developers added 2,2 units to the rental inventory and negative net absorption totaled -1,483 units in the twelve-month period ended in September. According to Marcus & Millichap, vacancy among Class-A properties in Tampa surged 310 basis points year-over-year to 9.3% in 09. At 10., Class B/C assets reported a higher vacancy rate in the third quarter, although the rate increased by a comparatively modest 150 basis points from the comparable period of Reis predict that vacancy will rise 10 basis points in 09 and another 40 basis points to 10. in RANK: 40 th out of 50 Metro Vacancy Rate Apartment Vacancy Trends Tampa U.S.A. 7.7% 9.9% RENT TRENDS The average effective rent decreased -1.1% sequentially and -2.3% year-over-year to $776 in 09. The sharpest declines were observed in peripheral suburban submarkets. For example, effective rent in the Pinellas Beaches submarket fell -7.5% and the average effective rent in the Pasco County submarket decreased -6.. Increased development of high-end properties resulted in positive rent growth among luxury properties as the average asking rent among Class-A properties rose 0.1% year-over-year to $1,010. Conversely, Class B/C assets experienced a -3.9% over-the-year drop in asking rent. Reis predict that effective rent will fall -$9 to $767 in the fourth quarter. But the service forecasts a rebound next year as the average effective rent advances 0.3% to $769. RANK: 33 rd out of 50 YoY Rent Trend Metro Rent Trends Asking Effective % -2.1% PROPERTY MARKET & CAP RATE TRENDS Metro Multifamily Cap Rate Trend Real Capital Analytics identified 22 transactions involving properties priced at or above $5 million in the first eleven months of Sales volume totaled $282 million, down -41.1% from the same period of The average price per unit slid -26. from $70,998 last year to $52,375 this year. Marcus & Millichap calculate a median price per unit of $52,800 in the twelve-month period ended in September, down -1 from the comparable period 20 and In respect to valuation cap rates, this source notes that initial yields were in the 7% area for Class-A properties, and ranged from to 9% for stabilized Class B/C assets. At an assumed 7.5% cap rate, RCR calculate a 6. expected rate of total return, ranking 12 th highest among the RED 50. Cap Rate 8.5% % % % % NOTABLE TRANSACTIONS Property Name Property Class Date of Transaction Total Price (in millions) Price per unit Estimated Cap Rate Bridgeview A November 2009 $20.9 $59, Fisherman's Landing A November 2009 $15.0 $58, % ParkCrest at Innisbrook A October 2009 $31.0 $71, Lofton Place A September 2009 $16.0 $57, RED CAPITAL Research

19 Tampa - St. Petersburg - Clearwater, Florida MSA Prices (000) Annual Chg (000) Rate Metro Median Single Family Home Prices Source: National Association of Realtors $240 $220 $200 $180 $160 $140 $120 $100 Y Y Y TAMPA US Payroll Employment Growth Source: BLS Data & RCG Research Forecast f 10f 11f Year-over-year Payroll Growth Rate Source: BLS Tampa USA DEMOGRAPHICS & HOUSING MARKET The Census Bureau report that the metro homeownership rate fell from 69. in 08 to 67.5% in 09. According to the National Association of Realtors, the median price of a single-family MSA home fell -20. year-over-year to $137,400 in 09. Moreover, the source calculates a -27. decrease in the median condo price from $142,700 in 08 to $104,200 in 09. Same-store home price indices revealed that home depreciation slowed in the third quarter. The FHFA purchase-only home price index declined -13.1% year-over-year in 09 and -11. year-over-year in 09. Likewise, the metro registered annual declines in the S&P Case-Shiller Index of -19.5% in 09 and -16.7% in 09. RealtyTrac.com estimate a 1.29% foreclosure rate in 09, ranking 34 th highest among the 203 markets tracked by the source. EMPLOYMENT TRENDS Non-Seasonally Adjusted Payroll job trends remained remarkably weak in the third quarter. Establishment headcounts fell -53,500 (-4.3%) year-over-year in 09 and -57,000 (-4.7%) year-over-year in 09. Faster headline attrition was partially attributable to deteriorating conditions among retailers. Store employment fell -6,800 year-overyear in 09, following a -3,700-job annual decrease in 09. Additionally, financial and business service firms posted a combined -15,400 job year-over-year decrease in 09 and a -18,400 net job reduction in 09. Conversely, the construction job market declined at a slower pace (-11,800) in the third quarter. Data from the BLS s household survey revealed still weaker job trends in the third quarter. According to the source, total employment fell at a -60,082 (-4.) year-over-year rate in 09, and deteriorated to a -71,394 (-5.7%) year-over-year pace in 09. Seasonally-Adjusted The pace of job attrition accelerated on seasonally-adjusted sequential basis, bucking the national trend. Indeed, a net of -9,800 jobs were lost in 09 and -11,900 positions were eliminated from payrolls in 09. By comparison, US payroll attrition moderated from a threemonth aggregate of -1,285,000 jobs in 09 to -597,000 in 09. Forecast RCR are optimistic about Tampa payroll trends in the coming years. After an estimated loss of -50,700 (-4.) jobs this year, our econometric model predicts gains of 7,200 (0.) jobs and 39,600 (3.3%) jobs in 2010 and 2011, respectively. RANK: 36 th out of % RED Estimated Generic Unlevered Asset Total Return Probabilities 7. Tampa Orlando % % % RED CAPITAL Research

20 SUBMARKET TRENDS Submarket Effective Rent Physical Vacancy Change Change Pinellas Beaches $765 $ % 9.3% bps Central St. Pete $732 $ bps North St. Pete $837 $ % 7.5% 7.7% 20 bps Largo $738 $ % 170 bps Pinellas Park $750 $ % % 110 bps Clearwater $792 $ bps North Pinellas $810 $ % 250 bps North Hillsborough $888 $ % 6.3% bps University North $694 $ % 10.5% 180 bps Westshore $859 $ % bps Sulphur Springs $727 $ % % 330 bps University South $652 $ % bps Temple Terrace $683 $ bps Central Tampa $935 $1, ,420 bps Brandon / Plant City $831 $ % 8.3% bps MacDill AFB $936 $ % 8.7% 240 bps Pasco County $664 $ % bps Metro $794 $ % 7.7% 9.9% 220 bps SUPPLY TRENDS Developers completed 1,814 apartment units in the first 11 months of Most of the units (1,345) are located in the Central Tampa submarket. As a result, the submarket inventory advanced 2 yearover-year. As of December, Reis were aware seven properties totaling 2,102 apartment units under construction. Another 5,378 apartment units were in the planning stage. The pipeline of the Central Tampa submarket (2,625 units), was more than 1,000 units larger than the two next highest submarkets: North Hillsborough (1,235 units) and Pasco County (1,217 units) combined. Condo construction activity was comparatively subdued as only three properties containing 237 units were under construction in December. Two of the properties are located in the Clearwater submarket. Units 6,000 5,000 4,000 3,000 2,000 1, ,000-2,000-3,000 Completions and Absorption Source: Reis, Inc Completions Absorption f 10f 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.