Offering Memorandum

SARASOTA VILLAS
Sarasota, FL
NON-ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc.
("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of
Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to
prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information
contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any
investigation, and makes no warranty or representation, with respect to the income or expenses for the subject
property, the future projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with
State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or
business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject
property. The information contained in this Marketing Brochure has been obtained from sources we believe to be
reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor
has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or
representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers
must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark
of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in
this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply
affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or
subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for
the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

SARASOTA VILLAS
Sarasota, FL
ACT ID Y0240177
SARASOTA VILLAS

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01
Offering Summary
Property Photos
Regional Map
Local Map
Aerial Photo

MARKET COMPARABLES 02
Comparables
Rent Comparables

FINANCIAL ANALYSIS 03
Rent Roll Summary
Rent Roll Detail
Operating Statement
Pricing Detail
Acquisition Financing

MARKET OVERVIEW 04
Market Analysis
Demographic Analysis
SARASOTA VILLAS

INVESTMENT
OVERVIEW

4
SARASOTA VILLAS

OFFERING SUMMARY
EXECUTIVE SUMMARY
VITAL DATA
Price $2,800,000 CURRENT YEAR 1
Down Payment 20% / $560,000 CAP Rate 9.75% 10.68%
MAJOR EMPLOYERS
Loan Amount $2,240,000 GRM 6.37 5.50
Net Operating
Loan Type Proposed New $273,042 $299,175 EMPLOYER # OF EMPLOYEES
Income
Net Cash Flow Administrate Concept Inc 7,000
Interest Rate / Amortization 5.00% / 30 Years 22.99% / $128,744 27.66% / $154,878
After Debt Service
Price/Unit $59,574 Total Return 28.89% / $161,792 33.86% / $189,617 Sarasota Memorial Hospital 3,600
Price/SF $80.48 Sun Hydraulics Corporation 1,484
Number of Units 47 Sarasota Herald Tribune 1,400
Rentable Square Feet 34,790
County of Sarasota 1,235
Year Built 1957-1986
Goodyear 1,039
Sarasota County Sheriffs Office 1,000
Nursecore Management Services 749
US Post Office 733
UNIT MIX APAC Customer Services, Inc 563
NUMBER APPROX. Cast 450
UNIT TYPE
OF UNITS SQUARE FEET
Ritzcarlton Sarasota The 450
2 1Bed/1Bath 471
25 2Bed/1Bath 641
20 3Bed/1Bath 892
47 Total 34,790 DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2015 Estimate Pop 11,901 60,359 136,953
2010 Census Pop 11,574 58,370 131,287
2015 Estimate HH 4,080 26,295 62,717
2010 Census HH 3,972 25,426 60,078
Median HH Income $28,918 $39,207 $47,507
Per Capita Income $17,680 $26,849 $33,528
Average HH Income $47,612 $59,643 $72,239

#5
 SARASOTA VILLAS

OFFERING SUMMARY
INVESTMENT OVERVIEW
Marcus & Millichap, as exclusive listing agent, is pleased to bring to market Sarasota Villas, a 47-unit multifamily portfolio located in Sarasota, Florida.

Sarasota Villas is comprised of 15 duplexes, two triplexes, a 10-unit building, and a single family residence. They were constructed between 1957 and 1986 of concrete
block, with the exception of three buildings, which are constructed of wood frame. The portfolio is situated on total of 3.93 acres and is comprised of two one-bedroom
units, 25 two-bedroom and one-bathroom units, and 20 three-bedroom and one-bathroom units. Units are separately metered for all utilities, with the exception of 2700
Palmadelia Avenue, where water is included in the rent. All but one building has wall-unit air-conditioning and units have either ceramic tile or terrazzo flooring.

Nearby schools include Booker High School, Ringling College of Art and Design and Bay Haven School of Basics Plus. In addition North Sarasota Public Library and
Newton Estates Park are in close proximity.

Sarasota Villa is being offered for sale by the original developer at $2,800,000 which equates to $59,574 and $80.48 per square foot.

INVESTMENT HIGHLIGHTS

 Offered For Sale By The Original Developer

 Rare 47-Unit Apartment Portfolio in Sarasota, Florida

 Portfolio of 19 Buildings Within Close Proximity to One Another

 All Utilities Separately Metered (Except for 10 Units)

 Close to Schools, Shopping, and Entertainment Centers

#6
SARASOTA VILLAS

PROPERTY PHOTOS

7
SARASOTA VILLAS

PROPERTY PHOTOS

8
SARASOTA VILLAS

REGIONAL MAP

9
SARASOTA VILLAS

LOCAL MAP

10
SARASOTA VILLAS

AERIAL PHOTO

11
SARASOTA VILLAS

MARKET
COMPARABLES

12
 SARASOTA VILLAS

8 SALES COMPARABLES MAP

SARASOTA VILLAS
(SUBJECT)

1 3030 Old Bradenton Road

2780 Dr. Martin Luther King
2
Way
2041 Dr. Martin Luther King
3
Way
4 1207 Highland Street

SALES COMPARABLES

13
 PROPERTY VILLAS
SARASOTA NAME

SALES COMPARABLES SALES COMPS AVG COMPARABLES

Average Price Per Square Foot Average Price Per Unit

$120 $75,000

$110 $70,000
$65,000
$100
Avg. $88 $60,000 Avg. $55,250
$90 $55,000
$80 $50,000

$70 $45,000
$40,000
$60
$35,000
$50 $30,000
$40 $25,000

$30 $20,000
$15,000
$20
$10,000
$10 $5,000
$0 $0
2700 3030 Old 2780 2041 1207 2700 3030 Old 2780 2041 1207
Palmadelia Bradenton Dr. Martin Dr. Martin Highland Palmadelia Bradenton Dr. Martin Dr. Martin Highland
Avenue Road Luther Luther Street Avenue Road Luther Luther Street
King Way King Way King Way King Way

14
 PROPERTY VILLAS
SARASOTA NAME

COMPARABLES
MARKETING TEAM

SALES COMPARABLES

3030 OLD BRADENTON ROAD 2780 DR. MARTIN LUTHER KING WAY
673 VISTA ISLE
SARASOTA DRIVE
VILLAS 3030 OLD BRADENTON RD, SARASOTA, FL, 34234 2780 DR MARTIN LUTHER KING WY, SARASOTA, FL, 34234
2700
673 PALMADELIA AVE, SARASOTA,
VISTA ISLE DRIVE, FL,
SUNRISE, FL, 34234
33325 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type

Offering Price: $2,800,000 2 1Bed 1Bath Close Of Escrow: 7/22/2016 2 2 Bdr 1 Bath Close Of Escrow: 5/5/2016 2 1 Bdr 1 Bath
Price/Unit: $59,574 25 2Bed 1Bath Sales Price: $135,000 Sales Price: $80,000
Price/SF: $80.48 20 3Bed 1Bath Price/Unit: $67,500 Price/Unit: $40,000
CAP Rate: 9.75% Price/SF: $106.00 Price/SF: $67.00
GRM: 6.37 Total No. of Units: 2 Total No. of Units: 2
Total No. of Units: 47 Year Built: 1937 Year Built: 1985
Year Built: 1957-1986

rentpropertyaddress1
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
Underwriting Criteria
Income $417,810 Expenses $144,768
NOI $273,042 Vacancy ($21,990)

NOTES NOTES
This was a private-party transaction. This was a private-party transaction.

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 PROPERTY VILLAS
SARASOTA NAME

COMPARABLES
MARKETING TEAM

SALES COMPARABLES

2041 DR. MARTIN LUTHER KING WAY 1207 HIGHLAND STREET

2041 DR MARTIN LUTHER KING WY, SARASOTA, FL, 34234 1207 HIGHLAND ST, SARASOTA, FL, 34234
3 4

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type

Close Of Escrow: 3/2/2016 8 2 Bdr 1 Bath Close Of Escrow: 2/22/2016 1 1 Bdr 1 Bath
Sales Price: $372,000 Sales Price: $134,000 1 3 Bdr 2 Bath
Price/Unit: $46,500 Price/Unit: $67,000
Price/SF: $96.00 Price/SF: $81.00
Total No. of Units: 8 Total No. of Units: 2
Year Built: 1948 Year Built: 1940

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

NOTES NOTES
This was a private-party transaction. This was a private-party transaction.

16
 SARASOTA VILLAS

8 RENT COMPARABLES MAP

SARASOTA VILLAS
(SUBJECT)

1 North Washington

2 Cimarron Lake Apartments

3 Indian Beach Apartments

4 University Oaks Apartments

5 Shadowood Apartments

10

11

12

13

14

15

16

17

18

20

17
PROPERTY VILLAS
SARASOTA NAME

COMPARABLES
AVERAGE OCCUPANCY

Avg. 98.00%
100

95

90

85

80

75

70

65

60

55

50

45

40

35

30

25

20

15

10

0
2700 North Cimarron Indian University Shadowood
Palmadelia Washington Lake Beach Oaks Apartments
Avenue Apartments Apartments Apartments

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 PROPERTY VILLAS
SARASOTA NAME

COMPARABLES

AVERAGE RENT - MULTIFAMILY

1 Bedroom

$1,000

$900
Avg. $769
$800

$700

$600

$500

$400

$300

$200

$100

$0
2700 Cimarron Indian Shadowood
Palmadelia Lake Beach Apartments
Avenue Apartments Apartments

2 Bedroom 3 Bedroom

$1,300 $1,000
$1,200 $900
Avg. $830
$1,100
$800
$1,000
$900 Avg. $858 $700

$800 $600
$700
$500
$600
$500 $400

$400 $300
$300
$200
$200
$100
$100
$0 $0
2700 North Cimarron Indian University Shadowood 2700 North Shadowood
Palmadelia Washington Lake Beach Oaks Apartments Palmadelia Washington Apartments
Avenue Apartments Apartments Apartments Avenue

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 PROPERTY VILLAS
SARASOTA NAME

RENT COMPARABLES
MARKETING TEAM

NORTH WASHINGTON CIMARRON LAKE APARTMENTS

SARASOTA VILLAS 1809 19TH ST, SARASOTA, FL, 34234 5479 DESOTO PARKWAY, SARASOTA, FL, 34234
2700 PALMADELIA AVENUE, SARASOTA, FL, 34234
1 2

2700 PALMADELIA AVENUE 2700 PALMADELIA AVENUE 2700 PALMADELIA AVENUE

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF
1Bed 1Bath 2 471 $500.00 $1.06 2 Bdr 1 Bath 117 624-5,670 $750-$825 $0.26 1 Bdr 1 Bath 60 614 $915 $1.50
2Bed 1Bath 25 641 $793.00 $1.24 3 Bdr 2 Bath 2 700-800 $825-$835 $1.11 1 Bdr 1.5 Bath 60 742 $950 $1.29
3Bed 1Bath 20 892 $1,000.00 $1.12 Total/Avg. 119 3,107 $788 $0.26 2 Bdr 2 Bath 27 1,043 $1,125 $1.08
Total/Avg. 47 741 2 Bdr 2.5 Bath 20 1,175 $1,185 $1.01
Total/Avg. 167 797 $994 $1.29

OCCUPANCY: 90% | YEAR BUILT: 1957-1986 OCCUPANCY: 98% | YEAR BUILT: 1970 OCCUPANCY: 90% | YEAR BUILT: 1985
NOTES NOTES
Water, sewer, trash, and electric are separately metered. There is an Water, sewer and electric separately metered, while trash and pest control
2700 PALMADELIA AVENUE, SARASOTA, FL, 34234 2700 PALMADELIA
application AVENUE, SARASOTA,
fee of $50, an administrative fee of $75, and aFL, 34234
security deposit are2700 PALMADELIA
included AVENUE,
in the rent. There SARASOTA,
is an application fee of $50, FL,
an 34234
equivalent to one months rent. Currently offering no concessions. There is administrative fee of $125, and a security deposit of $95. Currently offering
a $15 per month pet rent. no concessions.

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 PROPERTY VILLAS
SARASOTA NAME

RENT COMPARABLES
MARKETING TEAM

INDIAN BEACH APARTMENTS UNIVERSITY OAKS APARTMENTS SHADOWOOD APARTMENTS

1060 INDIAN BEACH DR, SARASOTA, FL, 4913 OLD BRADENTON RD, SARASOTA, FL, 1927 SANFORD CIRCLE, SARASOTA, FL, 34234
34234 34234
3 4 5

INDIAN BEACH APARTMENTS INDIAN BEACH APARTMENTS INDIAN BEACH APARTMENTS

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 6 750 $550-$600 $0.77 2 Bdr 2 Bath 40 650-700 $725-$775 $1.12 Studio 20 300 $700 $2.34
2 Bdr 1 Bath 15 1,000 $700 $0.70 Total/Avg. 40 675 $750 $1.11 1 Bdr 1 Bath 25 600 $800 $1.34
Total/Avg. 21 929 $664 $0.72 2 Bdr 1 Bath 25 900 $900 $1.00
Total/Avg. 70 621 $807 $1.50

OCCUPANCY: 100% | YEAR BUILT: 1971 OCCUPANCY: 100% | YEAR BUILT: 1975 OCCUPANCY: 100% | YEAR BUILT: 1983
NOTES NOTES NOTES
Water and sewer are included in rent, while electric and trash are Water, sewer, and trash are included in the rent. There is an application Water, sewer, and trash are included in rent. Residents are responsible for
separately
1060metered.
INDIAN There is an application
BEACH fee of $25 and
DR, SARASOTA, FL,a security
34234 1060
fee of INDIAN
$25 and BEACH
a security depositDR, SARASOTA,
of $500 FL, 34234
per unit. Currently offering no water1060 INDIAN
and electric. BEACH
There DR, SARASOTA,
is an application fee of $55, anFL, 34234 fee
administration
deposit of $500 per unit. Currently offering no concessions. concessions. of $25, and a security deposit between $250 and $500 depending upon
credit. Currently offering no concessions.

21
SARASOTA VILLAS

FINANCIAL
ANALYSIS

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SARASOTA VILLAS

FINANCIAL ANALYSIS
RENT ROLL SUMMARY

23
SARASOTA VILLAS

FINANCIAL ANALYSIS
RENT ROLL DETAIL

24
SARASOTA VILLAS

FINANCIAL ANALYSIS
RENT ROLL DETAIL

25
SARASOTA VILLAS

FINANCIAL ANALYSIS
OPERATING STATEMENT

NOTES

26
SARASOTA VILLAS

FINANCIAL ANALYSIS
PRICING DETAIL

27
SARASOTA VILLAS

ACQUISITION FINANCING

MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?

CAPABILITIES Optimum financing solutions
to enhance value
MMCC—our fully integrated, dedicated financing arm—is committed to
providing superior capital market expertise, precisely managed execution, and
unparalleled access to capital sources providing the most competitive rates and Our ability to enhance
terms. buyer pool by expanding
finance options
We leverage our prominent capital market relationships with commercial banks,
life insurance companies, CMBS, private and public debt/equity funds, Fannie
Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance
financing options. seller control
• Through buyer
Our dedicated, knowledgeable experts understand the challenges of financing
qualification support
and work tirelessly to resolve all potential issues to the benefit of our clients.
• Our ability to manage buyers
finance expectations
• Ability to monitor and
manage buyer/lender
progress, insuring timely,
predictable closings
• By relying on a world class
Closed 1,601 National platform $4.9 billion Access to
set of debt/equity sources
debt and equity operating total national more capital
financings within the firm’s volume in 2015 sources than and presenting a tightly
in 2015 brokerage any other firm underwritten credit file
offices in the industry

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SARASOTA VILLAS

MARKET
OVERVIEW

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 SARASOTA VILLAS

MARKET OVERVIEW

TAMPA-ST. PETERSBURG

Market Highlights
Favorable business climate
 A low cost of living and economic development bring a thriving business landscape to the Tampa Bay Area.

Ports of Tampa
 One of the largest seaports in the Southeast, the Port of Tampa services passenger cruise ships and
commercial freighters. The Port of St. Petersburg is also in the metro.

Diverse economy
 The high-tech, tourism and seaborne commerce industries drive the local economy.

Geography
The Tampa-St. Petersburg-Clearwater metro spans
four counties along the west coast of Florida, near
the Gulf of Mexico: Hillsborough, Pasco, Hernando
and Pinellas. Tampa Bay refers both to the entire
metropolitan area and to the large bay that extends
inland from the Gulf of Mexico. The city of Tampa is
located northeast of the bay, and the city of St.
Petersburg is located on the peninsula near the
mouth of the bay. The topography of the region is
flat, with the Hillsborough River stretching 56 miles
through the center of Hillsborough County.
Tampa-St. Petersburg-Clearwater Metro

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 SARASOTA VILLAS

MARKET OVERVIEW

TAMPA-ST. PETERSBURG

Metro
The Tampa-St. Petersburg metro contains nearly 2.9 million residents. Tampa is the largest city with a
population of 353,600 and is the Hillsborough County seat. St. Petersburg and Brandon are the next most
populous cities. Higher-density redevelopment projects will spur urban population growth in the next five years.

Infrastructure
Residents of the metro benefit from an extensive freeway network. Interstate 4 and Highway 60 facilitate
eastbound and westbound travel, while Interstates 75 and 275 and Highway 301 accommodate northbound
and southbound travel. Two international airports service the region: St. Petersburg/Clearwater and Tampa
International. There are also three general aviation airports. Construction is progressing on the first phase of a
$2.5 billion expansion to Tampa International Airport. The metro is also home to the Port of Tampa and the Port
of St. Petersburg. Port Manatee is also nearby. In addition to cargo facilities, four cruise lines dock at the Port
Largest Cities in Metro by Population
of Tampa. The port is the largest in terms of cargo tonnage in Florida and is positioned to benefit greatly from
Tampa 353,600
the expansion of the Panama Canal. The port supports nearly 100,000 jobs and brings in $8 billion of economic
St. Petersburg 248,100
activity to the region each year. Tampa Bay Area Regional Transportation Authority coordinates public
Clearwater 108,800
transportation throughout the region, with each county offering public transit. Brandon 103,300
Spring Hill 99,600
Town ‘n’ Country 82,500
The Tampa-St. Petersburg Metro is: Major Roadways
 85 miles from Orlando  Interstates 4, 75, 175 and 275 * Forecast
 Highways 19, 41, 60 and 301; 618 tollway Sources: Marcus & Millichap Research Services; U.S. Census
 130 miles from Fort Myers Bureau; Experian
 280 miles from Miami
Rail
 450 miles from Atlanta
 Freight – CSX
Airports  Passenger – Amtrak
 Tampa International Airport
Ports
 St. Petersburg/Clearwater International Airport
 Port of Tampa
 Three general aviation airports
 Port of St. Petersburg

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 SARASOTA VILLAS

MARKET OVERVIEW

TAMPA-ST. PETERSBURG

Economy
The metro economy is expanding, with gross metropolitan product (GMP) hotels and resorts. The Seminole Hard Rock Hotel & Casino in the metro is
expected to grow by 4.6 percent this year. Retail sales are expected to expand among the largest casinos in the world.
6.2 percent this year compared with the U.S. level of 5.4 percent. Ongoing job
gains in the metro through 2020 bode well for the region’s economy. Local ports contribute to a major presence in the shipping, distribution and
logistics industry. The nearby CSX Intermodal facility in Polk County provides
Bioscience and other high-tech industries are expanding, due in part to research quick access to markets nationwide. Amazon is another major player in the
at the metro’s nearly 80 institutions of higher learning. Growth in these industries logistics industry. The company has a 1 million-square-foot fulfillment center in
further bolsters the region’s reputation as a high-tech corridor, often referred to Ruskin.
as “Technology Bay.” The area is home to many large businesses, including
WellCare Health Plans, Tech Data and Jabil Circuit, all of which are Fortune 500
companies. Tourism also plays a significant role in the local economy, injecting
more than $3.5 billion each year. A large portion of the revenue comes from area

Port of Tampa Quick Facts: FY 2014

Dry Bulk Cargo (net tons) 14,435,291

Liquid Bulk Cargo (net
20,605,818
tons)
General Cargo (net tons) 1,176,334

Passengers 888,343

Cruise Lines 4

Number of Sailings 198

* Forecast
Sources: Marcus & Millichap Research Services;
Tampa Port Authority; BLS; Moody’s Analytics; U.S. Census Bureau

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 SARASOTA VILLAS

MARKET OVERVIEW

TAMPA-ST. PETERSBURG

Labor
Containing nearly 1.3 million people, the Tampa-St. Petersburg employment base is stable and diverse. After
expanding an average of 2.4 percent annually over the previous five years, employment growth in the metro is
now forecast to average 1.9 percent annually through 2020, above the U.S. average of 1.3 percent per year. In
the coming five years, job creation is expected in nearly all employment sectors, except manufacturing, which
is expected to contract by 0.5 percent annually through 2020. These job losses will be outpaced by growth in
the service sectors.

Representing 19 percent of regional jobs, the trade, transportation and utilities sector is the metro’s largest
employer, offering more than 237,500 positions. Employment in this industry will grow by 0.5 percent annually
through 2020, as the local economy expands. Professional and business services, and education and health
services make up the next largest shares of metro employment. These sectors comprise 17 percent and 16
percent of all area jobs, respectively. Payroll expansion in both of these sectors is expected through the coming
five years, with professional and business services forecast to increase 4.7 percent annually during this period,
the largest gain among all sectors.

* Forecast
Sources: Marcus & Millichap Research Services; BLS; Moody’s
Analytics

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 SARASOTA VILLAS

MARKET OVERVIEW

TAMPA-ST. PETERSBURG

Employers
As part of Florida’s high-tech corridor, research facilities at area education institutions present an abundance of opportunities for emerging companies. Additional
organizations in the region offer education, training and grant programs to help businesses succeed.

MacDill Air Force Base has been in operation since 1939 and is a major employer in the area, with approximately 15,000 military and civilian personnel. The local economic
impact of the base is estimated at more than $2 billion annually. In addition, many military retirees remain in the region, indirectly adding to the base’s impact on the local
economy.

Finance, insurance and real estate firms, including Raymond James Financial Inc. and JPMorgan Chase, employ close to 100,000 people. Medical technology companies
such as Bausch & Lomb, Baxter Healthcare Corp. and Transitions Optical Inc. hire more than 10,000 people locally. The medical field in Tampa benefits from CAMLS, one
of the most cutting-edge medical simulation training centers in the world. Also, the University of South Florida is planning to build a new medical school downtown.

Additionally, many large companies, including FedEx, Humana, Mortgage Investors Corp. and USAA, have relocated to or expanded in the region in recent years. Other
nationally recognized brands, such as Checkers Drive-Ins and the Home Shopping Network (HSN) are based out of Tampa.

Major Employers
BayCare Health Care System
Publix Supermarkets, Inc.
HCA West Florida
Wal-Mart
Verizon Communications, Inc.
MacDill Air Force Base
University of South Florida
JPMorgan Chase
Citibank
TECO Energy Inc.

* Forecast
Sources: Marcus & Millichap Research Services; BLS; Moody’s
Analytics

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 SARASOTA VILLAS

MARKET OVERVIEW

TAMPA-ST. PETERSBURG

Demographics
The population of the metro is nearly 2.9 million people, and will grow by 176,000 residents through 2020; the majority will come from in-migration.

The metro’s population is becoming more educated. More than 26 percent of the area’s population age 25 and older holds at least a bachelor’s degree, up from 22 percent
in 2000. The uptick is due in part to an increased number of higher-paying technology jobs and improved retention of graduates from local colleges. These employment
opportunities are helping to raise the median household income in the metro, which is roughly $49,900 per year.

Compared with the other Florida metros, houses in the metro are relatively affordable. The median home price, at $177,600, is less than the national median of $225,800.
Nevertheless, rental housing remains the most logical option for many households employed in lower-paying service sectors. Currently 66 percent of the metro’s
households own their homes, which is slightly above the national rate.

With a median age of 41.9 years, Tampa-St. Petersburg residents are much older than the U.S. as a whole. In addition, 18 percent of the population is age 65 or older, well
above the U.S. average.

* Forecast
Sources: Marcus & Millichap Research Services; Moody’s Analytics;
U.S. Census Bureau; Experian; AGS

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 SARASOTA VILLAS

MARKET OVERVIEW

TAMPA-ST. PETERSBURG

Quality of Life
Tampa Bay boasts a mild climate and a beautiful waterfront that attracts many residents and visitors. The metro ranks high in terms of transportation, job creation, quality of
life, cultural activities and educational opportunities. Recreational and cultural amenities in the region include the NFL’s Tampa Bay Buccaneers, NHL’s Tampa Bay
Lightning and MLB’s Tampa Bay Rays. The metro has more than 200 golf courses and abundant water-related activities, with Tampa Bay and the Gulf Coast nearby. The
world-famous Busch Gardens theme park draws visitors, as do the major festivals that reflect the area’s diverse cultural heritage. Ybor City, once a cigar-manufacturing
center, is now a shopping, entertainment and nightlife destination near downtown Tampa.

Educational advancement is available at nearly 80 institutions of higher learning located in the Tampa Bay area. The University of South Florida, located in Tampa, is the
third-largest university in the state, with an enrollment more than 48,000 undergraduate and graduate students and a staff of 15,000 people.

There are more than 11,000 acres of parkland and 100 trail acres within a 60-mile radius. The metro is also surrounded by numerous state parks, historic sites, museums,
theaters and retail centers. Other popular destinations include the Lowry Park Zoo and Bok Tower Gardens.

* Forecast
Sources: Marcus & Millichap Research Services; Moody’s
Analytics; U.S. Census Bureau; National Association of Realtors®

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SARASOTA VILLAS

MARKET OVERVIEW

ST. LOUIS METRO AREA

Strong Rent Growth Fans Interest

In Tampa-St. Petersburg Assets

Apartment demand increases, softening conditions in select neighborhoods as deliveries rise.

Employment and household growth above the national level underpin demand for rentals throughout Tampa
Bay. As a result, vacancy will remain below the long-term equilibrium for the third consecutive year, keeping
developers active. Deliveries will reach the highest pace since 2002 and expanding demand will absorb the
new supply, tightening marketwide vacancy further. New inventory in concentrated areas of the region will
temporarily push vacancy up in confined pockets of the metro during 2017. The trend will be mainly limited
to specific areas in the downtown cores as multiple buildings begin leasing. Additional competition in these
areas will come from condos as new projects break ground. Marketwide, tightening vacancy will contribute
to average rents setting a new high and improving NOI.

Bidding intensifies as buyer pool grows, lenders remain selective. Investors are active in Tampa Bay,
lured by strong demographics, improving apartment fundamentals, lower entry costs and the potential for
higher yields. Demand from an influx of buyers will surpass the availability of marketed properties, creating
an energetic bidding environment. Even though competition remains stiff, lenders and investors are being
more selective and will take longer to scrutinize deals. Buyers, however, will respond quickly and pay a
premium for the well-located older Class B/C assets in need of cosmetic changes that will improve the
properties’ competitive standing. Cap rates for these complexes begin near 7 percent. Higher valuations
and eager investors are prompting more long-term owners to re-evaluate their holdings. Improving cash
flows will motivate some to re-invest capital to attract and retain tenants. It may be necessary in some
pockets of the region where a surge in new inventory will increase competition for renters. Other owners will
find this a good time to divest.

*Estimate ** Forecast
Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

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SARASOTA VILLAS

MARKET OVERVIEW

ST. LOUIS METRO AREA

2017 Market Forecast

NMI Rank Substantial rent growth and a tightening in the vacancy rate fuel the
19, up 8 places market’s ascent into the top 20 this year.

Employment Employers will add 30,000 new workers to staffs during 2017, a 2.3 percent
up 2.3% increase. Last year, a 2.8 percent gain was registered.

Construction Strong demand for apartments is keeping construction elevated. Following

4,900 units the delivery of 3,200 units last year, 4,900 rentals are on tap in 2017.

Vacancy After a 60-basis-point rise in the vacancy rate was recorded last year, the
down 20 bps rate declines to 3.8 percent during 2017 on net absorption of 5,100 units.

Rent Still-tight vacancy encourages rent growth. The average effective rent
up 6.0% climbs to $1,143 per month in 2017, after a 6.4 percent jump last year.

Investment Jobs and residents are moving back into the city cores. Apartment
buildings in redeveloping trendy neighborhoods including the Harbor
District in Tampa are attracting investors.

* Estimate ** Forecast
Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;
Real Capital Analytics

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 PROPERTY VILLAS
SARASOTA NAME

DEMOGRAPHICS
MARKETING TEAM
Created on March 2017
POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
 2020 Projection  2015 Estimate
Total Population 12,189 61,649 140,119 $200,000 or More 2.36% 3.20% 4.50%
 2015 Estimate $150,000 - $199,000 1.46% 2.44% 3.66%
Total Population 11,901 60,359 136,953 $100,000 - $149,000 4.61% 6.96% 10.15%
 2010 Census $75,000 - $99,999 5.56% 9.15% 11.39%
Total Population 11,574 58,370 131,287 $50,000 - $74,999 13.76% 16.62% 18.32%
 2000 Census $35,000 - $49,999 13.83% 16.23% 14.82%
Total Population 10,989 56,150 127,772 $25,000 - $34,999 13.57% 13.27% 11.70%
 Daytime Population $15,000 - $24,999 17.97% 15.44% 12.61%
2015 Estimate 16,348 97,156 170,632 Under $15,000 26.88% 16.71% 12.84%
HOUSEHOLDS 1 Miles 3 Miles 5 Miles Average Household Income $47,612 $59,643 $72,239
 2020 Projection Median Household Income $28,918 $39,207 $47,507
Total Households 4,224 27,174 64,856 Per Capita Income $17,680 $26,849 $33,528
 2015 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Total Households 4,080 26,295 62,717  Population By Age
Average (Mean) Household Size 2.43 2.15 2.12 2015 Estimate Total Population 11,901 60,359 136,953
 2010 Census Under 20 27.51% 20.22% 17.97%
Total Households 3,972 25,426 60,078 20 to 34 Years 23.25% 20.07% 16.69%
 2000 Census 35 to 39 Years 4.54% 5.18% 4.80%
Total Households 3,813 24,382 57,744 40 to 49 Years 10.16% 11.58% 11.62%
Growth 2015-2020 3.53% 3.34% 3.41% 50 to 64 Years 17.19% 19.99% 21.77%
HOUSING UNITS 1 Miles 3 Miles 5 Miles Age 65+ 17.36% 22.97% 27.16%
 Occupied Units Median Age 34.24 43.99 49.16
2020 Projection 4,224 27,174 64,856  Population 25+ by Education Level
2015 Estimate 4,744 31,048 76,078 2015 Estimate Population Age 25+ 7,237 43,491 104,496
Owner Occupied 1,926 14,897 41,135 Elementary (0-8) 4.54% 2.86% 2.39%
Renter Occupied 2,154 11,398 21,582 Some High School (9-11) 15.52% 8.99% 6.72%
Vacant 664 4,752 13,361 High School Graduate (12) 40.28% 35.44% 31.19%
 Persons In Units Some College (13-15) 15.82% 19.69% 20.69%
2015 Estimate Total Occupied Units 4,080 26,295 62,717 Associate Degree Only 5.18% 7.50% 7.99%
1 Person Units 33.24% 38.67% 35.60% Bachelors Degree Only 8.70% 14.40% 17.72%
2 Person Units 30.69% 34.88% 39.72% Graduate Degree 6.54% 9.81% 12.15%
3 Person Units 14.85% 11.82% 11.66%  Population by Gender
4 Person Units 10.78% 7.76% 7.50% 2015 Estimate Total Population 11,901 60,359 136,953
5 Person Units 5.74% 3.92% 3.33% Male Population 46.65% 48.31% 47.94%
6+ Person Units 4.73% 2.95% 2.18% Female Population 53.35% 51.69% 52.06%

Source: © 2016 Experian

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 PROPERTY VILLAS
SARASOTA NAME
Population
In 2016, the population in your selected geography is 11,901. The
population has changed by 8.30% since 2000. It is estimated that the
population in your area will be 12,189.00 five years from now, which
represents a change of 2.42% from the current year. The current
population is 46.65% male and 53.35% female. The median age of
the population in your area is 34.24, compare this to the US average
which is 37.55. The population density in your area is 3,792.85 people
per square mile.
Households
There are currently 4,080 households in your selected geography. The
number of households has changed by 7.00% since 2000. It is
estimated that the number of households in your area will be 4,224
five years from now, which represents a change of 3.53% from the
current year. The average household size in your area is 2.43 persons.
Income
In 2016, the median household income for your selected geography is
$28,918, compare this to the US average which is currently $54,148.
The median household income for your area has changed by 28.94%
since 2000. It is estimated that the median household income in your
area will be $32,299 five years from now, which represents a change
of 11.69% from the current year.
The current year per capita income in your area is $17,680, compare
this to the US average, which is $29,638. The current year average
household income in your area is $47,612, compare this to the US
average which is $77,468.
Source: © 2016 Experian
DEMOGRAPHICS
MARKETING TEAM
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
37.49% White, 52.49% Black, 0.03% Native American and 1.20%
Asian/Pacific Islander. Compare these to US averages which are:
70.98% White, 12.77% Black, 0.19% Native American and 5.25%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 14.77% of the current year
population in your selected area. Compare this to the US average of
17.53%.
Housing
The median housing value in your area was $116,529 in 2016,
compare this to the US average of $185,104. In 2000, there were
1,909 owner occupied housing units in your area and there were
1,904 renter occupied housing units in your area. The median rent at
the time was $428.
Employment
In 2016, there are 6,364 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
41.92% of employees are employed in white-collar occupations in
this geography, and 60.19% are employed in blue-collar occupations.
In 2016, unemployment in this area is 9.87%. In 2000, the average
time traveled to work was 22.00 minutes.
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 Offering Memorandum

SARASOTA VILLAS
Sarasota, FL