TIER 1 STUDENT HOUSING MARKETSCOLLIERS INTERNATIONAL | STUDENT HOUSING GROUP

There were 77 recorded student housing transactions in Tier 1 markets during the first half of 2015 totaling $1,370,725,186B in transaction volume. This was a 176.00% increase from 2014 with a total sales volume of $495,416,794M. The average sales price of the 2015 transactions was $24,477,235. A total of 12,629 units/29,954 beds sold with an average price per unit of $214,565 and average price per bed of $77,587. Markets with 20,000 + students accounted for approximately 78.00% of total sales dollars for the first half of 2015.

The Tier 1 Student Housing markets saw a significant increase in total number of transactions in the first two quarters from 38 to 77 transactions in 2015. The average sales price increased by 53.20%, from $15,981,187 in 2014 to $24,477,235 in 2015.

12,6292014:5,095

29,9542014: 12,366

$214,5652014: $162,793

$77,5872014: $60,396

5.82%2014: 7.32%

94.5%2014: 96.6%

Source: Real Capital Analytics

P. 1 | COLLIERS INTERNATIONAL | NATIONAL STUDENT HOUSING GROUP DOROTHY JACKMAN | TRAVIS PRINCE | SEAN BAIRD

Units Sold

Beds Sold

Average Price per Unit

Average Price per Bed

Average Cap Rate

Average Occupancy

25

315

14

20

2015 Q1 & Q2 Sales By Region

Southeast

Northeast

Midwest

Southwest

Western

$0 $100,000,000 $200,000,000 $300,000,000

Southeast

Western

Midwest

Southwest

Northeast

Q1 & Q2 Total Sales Price2014 Q1 & Q2 Total Sales 2015 Q1 & Q2 Total Sales

TIER 1 | Q1 & Q2 2015 SNAPSHOTTier 1 (20K+ Enrollment)

TIER 1 IN REVIEW

Source: Real Capital Analytics

P. 2 | COLLIERS INTERNATIONAL | NATIONAL STUDENT HOUSING GROUP DOROTHY JACKMAN | TRAVIS PRINCE | SEAN BAIRD

$- $15,000,000 $30,000,000

Midwest

Southeast

Western

Southwest

Northeast

Average Sales Price2014 Q1 & Q2 Total Sales 2015 Q1 & Q2 Total Sales

$- $100,000 $200,000 $300,000 $400,000 $500,000

Western

Northeast

Midwest

Southwest

Southeast

Average Price Per Unit2014 Q1 & Q2 Average Price Per Unit 2015 Q1 & Q2 Average Price Per Unit

$- $50,000 $100,000 $150,000

Western

Northeast

Midwest

Southwest

Southeast

Average Price Per Bed2014 Q1 & Q2 Average Price Per Bed 2015 Q1 & Q2 Average Price Per Bed

COLLIERS INTERNATIONAL STUDENT HOUSING GROUP | TIER 1

2015

vs

2014

| Ti

er 1

Tra

nsac

tions

SOUTHEAST REGION

Source: Real Capital Analytics

P. 3 | COLLIERS INTERNATIONAL | NATIONAL STUDENT HOUSING GROUP DOROTHY JACKMAN | TRAVIS PRINCE | SEAN BAIRD

COLLIERS INTERNATIONAL STUDENT HOUSING GROUP | TIER 1

Of the Tier 1 markets, the southeast region has shown the largest number of transactions, as well as reported volume than any other region in the first two quarters of 2015. The southeast recorded a total of 25 sales in 2015 compared to 17 in 2014. Sales volume was $534,548,815, an increase of 138% from $224,453,232 in 2014. With a 58.80% increase, the average sales price in 2015 was $25,454,705 compared to 2014 of $16,032,374. In 2015, the average number of units and beds for each transaction were 5,315 units/13,120 beds increasing from 2,321 units/5,792 beds in 2014. Similarly we see this rise reflected in price per unit and price per bed which increased by 10.70% and 14.70%, respectively. Florida, Georgia and Virginia were three (3) of the states that had the most transactions totaling five (5) each in 2015. Scion and Starwood stood out as two (2) of the largest buyers in those markets, accounting for 54.00% of total transactions in the region with multiple property portfolio acquisitions.

The Midwest region experienced the second largest jump in total number of sales with a 275.00% increase from four (4) transactions in 2014 to 15 transactions in 2015. This greatly affected total reported volume for 2015, increasing by 282.50% from $52,203,925 to $199,659,371 in sales. In 2015, 2,097 units and 5,114 beds transacted, which was an increase of 296.40% and 286.30% respectively, from 2014. Average sales price in 2015 was $28,522,767 while average price unit and average price per bed were $210,351 and $93,519. Minneapolis saw the most activity with a four (4) property portfolio acquired by University Communities LLC accounting for 14.00% and 10.00% of total units and beds transacted in this region.

MIDWEST REGION

The northeast region was the only region that saw a decrease in both number of transactions and total sales volume. The region experienced a decrease from seven (7) transactions in 2014 to three (3) in 2015 and a -86.20% decrease in total sales volume to $12,250,000 in 2015. Because of the 75.10% decrease in total number of units and 71.30% decrease in total number of beds, the northeast saw a 7.10% increase in price per units and a 32.70% increase in price per beds. Average price per unit increased from $199,101 in 2014 to $213,170 in 2015 and average price per bed increased from $85,663 in 2014 to $113,708 in 2014.

NORTHEAST REGION

www.colliers.com/studenthousing

502 offices in 67 countries

•US $2.3 billion in revenue•16,300+ employees•1.7 billion sqft. under mgmt.•US $97 billion transaction value

Sean BairdAssociateStudent Housing GroupTEL +1 727 450 6158sean.baird@colliers.com

For Tier 1 Markets Contact:

Travis PrinceManaging Director TEL +1 813 767 9960travis.prince@colliers.com

Dorothy JackmanManaging Director TEL +1 813 928 0020dorothy.jackman@colliers.com

Victoria MarksFinancial Analyst Student Housing GroupTEL +1 727 450 6158victoria.marks@colliers.com

Kirsten TofteMarketing CoordinatorStudent Housing GroupTEL +1 727 293 5339kirsten.tofte@colliers.com

The southwest region had a total of 14 transactions in 2015, more than double the number of transactions in 2014, which had six (6) transactions. Total sales volume increased by 44.60% from $84,810,000 to $122,600,000 in 2015. Total number of beds and units increased by 181.40% and 242.10%, which directly caused an increase in average price per unit and average price per bed per transaction of $145,815 and $51,341. Average sales price in 2015 for the southwest region was $20,433,333. Texas largely dominated sales activity with 10 transactions accounting for 71.40% of total transactions in the southwest region. Of those transactions, Nimes Capital bought a three (3) property portfolio in Austin, TX catering to the University of Texas at Austin market.

Of the Tier 1 markets, the western region had the largest increase in transactions as well as total reported volume in 2015. Total transactions went from four (4) in 2014 to 20 in 2015, an increase of 400.00%. Total reported sales increased by 1002.60% in 2015 with a total volume of $501,667,000. The western region transacted 2,309 units and 3,765 beds. The average transaction price saw an increase of 10.30% from $22,750,000 in 2014 to $25,083,350 in 2015. Because of the significant increase in total number of units and beds, the price per unit and price per bed decreased by -35.90% and 14.20% respectively. California, making up 65% of 2015 sales, saw the most activity accounting for $250,945,500 total reported transaction volume.

P. 4 | COLLIERS INTERNATIONAL | NATIONAL STUDENT HOUSING GROUP DOROTHY JACKMAN | TRAVIS PRINCE | SEAN BAIRD

SOUTHWEST REGION

WEST REGION

COLLIERS INTERNATIONAL STUDENT HOUSING GROUP | TIER 1