Docstoc

1st Quarter 2008 DFW Report

Document Sample
1st Quarter 2008 DFW Report Powered By Docstoc
					                                                                                                Dallas/Fort Worth
                                                                                               Apartment Report
                                                                                                                   M/PF YieldStar
                                                                                                                 1st Quarter 2008
                                                                                                                      April 8, 2008

Dallas/Fort Worth Apartment Occupancy Loses a Little Momentum on a
Quarterly Basis in Early 2008, But Annual Rent Growth Remains Solid
Reflecting seasonal leasing
patterns, apartment occupancy in                                D/FW's Occupancy Decline is Focused at
North Texas normally edges up a                                  the Two Extreme Ends of the Spectrum
bit in 1st quarter. That wasn’t the
case during early 2008, however.                     100%
                                                                      Quarterly Occupancy Change           4Q 07        1Q 08
Instead, occupancy cooled by 0.6
points from the late 2007 level,                                                   0.1
                                                       95%          1.8                         0.2
landing at 93.5 percent.                                                                                                    1.6
                                                                                                                0.6
The modest quarterly slide in
occupancy was focused on the              90%
two ends of the product spectrum.




                                                                                                                          Pre-1970
Properties built since 2000 saw
occupancy drop by 1.8 points              85%
                                                                     2000+




                                                                                                1980s
                                                                                   1990s




                                                                                                                1970s
between December 2007 and
March 2008. Decent demand
actually was recorded for that            80%
product niche during the initial
three months of the year, but it just didn’t keep pace with new apartment deliveries. Perhaps
more surprising was the 1.6 point quarterly decline in occupancy for communities built prior to
1970. There were sizable net move-outs from that product sector, with most of the loss
centered in submarkets where Hispanic households form most of the renter base in older
developments.

Those shifts left Dallas/Fort Worth’s 1990s-era properties as the only essentially full product
segment as of March 2008: occupancy in those units stood at 95.2 percent. Occupancy was
at 93.9 percent in the 1980s-generation communities and at 92.3 percent to 92.7 percent in
the other product age categories.

The downturn in occupancy that registered between December 2007 and March 2008 didn’t
completely wipe out the solid performance progress seen during 2007’s last half. The 1st
quarter occupancy rate of 93.5 percent still topped early 2007’s figure by 0.4 points.

Occupancy performance differences between metro Dallas and metro Fort Worth now are
negligible, with the rate at 93.5 percent for Dallas and 93.4 percent for Fort Worth.



M/PF YieldStar       4000 International Parkway         Carrollton, TX 75007         (972) 820-3100       www.mpfyieldstar.com

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report



The North Texas apartment market suffered
1,200 net move-outs during the initial three                         D/FW Demand Registers Ahead of Net
months of 2008, with that loss occurring                            Inventory Growth During the YE 1Q 2008
pretty much entirely in the properties built
prior to 1970.                                           30k Units
                                                                                                Yearly Demand
                                                         25k                                    Yearly Net New Supply
The poor quarterly demand performance                                                           Yearly Apartment Completions
took absorption for the year-ending March
down to 6,590 units.                                     20k

                                                         15k
Those demand figures normally would spell
trouble when new product completions
                                                         10k
reached volumes of 2,828 units for the
quarter and 8,665 units for the year-ending
                                                          5k
March. However, old product removals –
mostly teardowns to create redevelopment                  0k
sites – continued to hold inventory growth
                                                                   1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
well under the new product completion
                                                                   05 05 05 05 06 06 06 06 07 07 07 07 08
pace. A total of 4,430 units came out of the
leasing pool during the year-ending March,
so actual inventory growth was only 4,235
units, well under the annual demand figure.

                                                                             After Dallas/Fort Worth’s annual rent growth
         Rent Growth Continues at Solid Levels, While                        pace gained momentum during late 2007,
         Operators Scale Back the Use of Concessions                         operators didn’t panic when demand faltered
                                                                             during early 2008. Measuring change on a
         Rent Change                                Product Share            same-store basis, effective rents went up
    6%                                                                60%
                                                                             3.6 percent during the year-ending March.
    5%                                                                50%
    4%                                                                40%    Furthermore, owners and managers didn’t
    3%                                                                30%    start to drive up the use of concessions
                                                                             again. At 38 percent, the share of surveyed
    2%                                                                20%    product featuring giveaways in early 2008
    1%                                                                10%    remained well below the year-earlier figure.
    0%                                                                0%
                           Same-Store Annual Rent Change                     Rent growth by product age sector during
   -1%                     Share of Product Offering Concessions      -10%   the year-ending March proved amazingly
   -2%                                                                -20%   steady at roughly 3 to 4 percent in every
          1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q                             niche. However, this probably was a little
          05 05 05 05 06 06 06 06 07 07 07 07 08                             more aggressive than was advisable at the
                                                                             two ends of the product spectrum, so it
                                                                             wouldn’t be surprising to see a little
correction emerge in pricing for those units during the near term.

Average rents in Dallas/Fort Worth’s apartment market climbed to rates of $749 per month, or 88.1¢/sq ft, as of
March. At $774, typical monthly rents in metro Dallas are about 14 percent above the $678 average rates in
metro Fort Worth.
                                                                                                                               2

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report



The Relative Appeal of Shadow Market Single-Family Home Rentals Could
Make or Break D/FW’s Apartment Market Performance in the Near Term
                                                                             Ongoing construction in the Dallas/Fort
               Healthy Apartment Absorption is                               Worth apartment market climbed to 14,529
           Forecast for North Texas in the Next Year                         units at the end of 2008’s 1st quarter, with
           Units                                                             10,629 of those units found in properties
     25k                                                                     scheduled to finish construction through
                                                  Quarterly Demand
                                                                             March 2009. Houston, with about 17,900
     20k                                          Annual Demand
                                                                             units on the way, is the only U.S. metro
                                                  Forecast Demand
                                                                             where ongoing construction reaches a more
     15k
                                                                             aggressive level.
     10k
                                                                        While North Texas turned in a disappointing
      5k                                                                demand performance in early 2008, the area
                                                                        still has much going for it that points to
      0k                                                                substantial absorption potential during the
                                                                        year-ending March 2009. First, leading
     -5k                                                                economists continue to forecast sizable
           1Q     3Q    1Q     3Q     1Q    3Q   1Q          1Q         expansion of the job base, unlike the
           05     05    06     06     07    07   08          09
                                                                        expectations in place for many parts of the
                                                                        country: growth is anticipated at some
                                                                        40,000 to 45,000 jobs, down from the levels
seen recently but still sufficient to provide underlying support for considerable total housing demand. Second,
the rental sector seems primed to take a sizable portion of that total housing demand, since difficulties in
obtaining first-time home mortgages should limit the flow of renters opting to buy.

The most significant wild card in the outlook for Dallas/Fort Worth apartments, then, seems to be how total
rental demand is split between traditional apartment communities and the area’s large stock of single-family
homes offered for rent. That rental single-family home stock has captured huge portions of total rental demand
at times during the past year or so, but at other times has seemed to have virtually no impact on apartment
absorption performance at all. M/PF YieldStar’s assumption is that rental single-family homes will only modestly
reduce apartment absorption potential over the coming year, but at this point there’s scant evidence to suggest
exactly how consumers will behave during the near term.

Given this combination of factors, apartment demand potential for Dallas/Fort Worth during the year-ending
March 2009 comes in at 8,500 units. Actual apartment absorption clearly will land under that figure, since net
inventory growth won’t really be at the 10,600 or so units scheduled to complete, as teardowns will limit
expansion of the stock to a smaller figure. M/PF YieldStar’s assumption is that demand will back off that level of
8,500 units by about the same ratio that inventory growth ends up under the 10,600-unit targeted delivery pace.

The supply/demand relationship presented here translates to North Texas apartment occupancy cooling by 0.3
points during the year-ending March, taking the early 2009 figure down to 93.2 percent.

That occupancy outlook points to annual rent growth in the range of 2 to 3 percent, with the overall performance
dependent on pretty solid rent increases in the market’s middle tier of product. Rent growth seems almost sure
to slow from the levels seen recently for top-of-the-market communities and for the oldest projects.

                                                                                                                            3

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report




                                              APARTMENT MARKET PROFILE
                                                                                     Dallas Fort Worth        D/FW
                                                                                      Area     Area            Area
                        Existing Apartment Units                                     409,776 149,327          559,103
                        Annual Apartment Completions                                    6,852    1,813           8,665
           1st Quarter  Annual Apartment Unit Absorption                                3,410    3,180           6,590
              2008      Average Gross Occupancy                                        93.5%    93.4%           93.5%
                        Change From Year-Ago Quarter                                       0.1      1.2             0.4
                        Average Quoted Monthly Rent                                     $774     $678            $749
                        Same-Store % Change From Year-Ago Quarter                       3.8%     3.3%            3.6%
                        Annual Apartment Unit Completions                               8,118    2,511         10,629
           1st Quarter  Annual Apartment Unit Absorption                                6,600    1,900           8,500
          2009 Forecast Average Gross Occupancy                                        93.2%    93.1%           93.2%
                        Change From Year-Ago Quarter                                      -0.3     -0.3            -0.3




                                                                                                                            4

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                                   Dallas/Fort Worth
                                                                                                                  Apartment Report
                                                                                                                   Table of Contents
                                                                        Page                                                                               Page

SPOTLIGHT .................................................................1       Submarkets
ECONOMY ...................................................................6       Historical Apartment Data By Submarket .....................98
DEMAND ....................................................................11
SUPPLY......................................................................25     Methodology
OCCUPANCY.............................................................64           Sample Distribution By Submarket By Bedroom
RENTS........................................................................83       Type......................................................................114
SUBMARKETS...........................................................98            Sample Distribution By Submarket By Year
METHODOLOGY .....................................................111                  Completed ............................................................116
 Submarket Boundaries ...........................................118
ABOUT M/PF YIELDSTAR ......................................122
                                                                                                           INDEX TO CHARTS
                        INDEX TO TABLES
                                                                                   Spotlight
Spotlight                                                                          Apartment Occupancy by Age of Community.................1
D/FW Apartment Market Profile ....................................4                Demand vs. Net New Supply vs. Completions ...............2
                                                                                   Annual Same-Store Rent Change vs. Concessions .......2
Economy                                                                            Forecast Apartment Demand..........................................3
D/FW Employment Growth by Industry.......................10
                                                                                   Economy
Demand                                                                             Employment Growth ................................................... 6-8
Apartment Demand Leaders.......................................14
Annual Apartment Absorption By Submarket .............18                           Demand
Forecast Apartment Demand Leaders........................22                        Apartment Absorption ............................................. 11-13
Annual Apartment Absorption Forecast By                                            Apartment Absorption Forecast ............................ 120-21
   Submarket..............................................................24
                                                                                   Supply
Supply                                                                             Existing Apartment Units ........................................ 25-26
Existing Units By Bedroom Type By Submarket.........27                             Apartment Completions .......................................... 31-32
Existing Units By Year Completed By Submarket ......29                             Multifamily Permits........................................................48
New Supply Ranked ...................................................33            Apartment Completions Forecast ........................... 49-50
Annual Apartment Completions By Submarket...........41                             Forecast Completions by Quarter............................ 49
Apartment Development Leaders ...............................51
Forecast New Supply Ranked ....................................52                  Occupancy
Forecast Apartment Completions By Submarket........62                              Apartment Occupancy ............................................ 64-65
                                                                                   Apartment Occupancy By Age of Community ..............66
Occupancy                                                                          Apartment Occupancy Forecast ............................. 78-79
Occupancy Ranked.....................................................68
Greatest Occupancy Increases...................................69                  Rents
Average Gross Occupancy By Bedroom Type                                            Annual Same-Store Rent Change ......................... 83-84
   By Submarket .......................................................74          Annual Same-Store Rent Change By Age
Average Gross Occupancy By Year Completed                                            of Community...........................................................85
   By Submarket .......................................................76          Apartment Rent By Age of Community.........................86
Gross Occupancy Forecast By Submarket.................82

Rents                                                                                                        INDEX TO MAPS
Annual Same-Store Rent Change ..............................89
Average Monthly Rent By Bedroom Type...................90                          Apartment Completions .......................................... 43-47
Average Monthly Rent By Year Completed ................92                          Submarkets......................................................... 120-121
Average Rent Per Square Foot By Bedroom
   Type ......................................................................94
Average Rent Per Square Foot By Year
   Completed.............................................................96
                                                                                                                                                               5

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                             Economy



Region Overview
Job production continues at solid levels in
the North Texas region. According to                                           Employment Growth
preliminary data from the Bureau of Labor                                    (Annual Change by Quarter)
Statistics (BLS), Dallas/Fort Worth created                                    Dallas/Fort Worth Area
                                                                Jobs
70,900 jobs during the year-ending February
                                                        100k
2008, with these additions expanding the
region’s employment count by a notable 2.5                75k
percent. If the Dallas and Fort Worth metros              50k
were combined into a single metropolitan
area, the region would rank as the nation’s               25k
second biggest job producer, placing only                  0k
behind Houston, where more than 86,000
                                                         -25k
positions were created in the year-ending
February.                                                -50k
                                                         -75k
D/FW’s Financial Activities sector continues
to play a major role in the region’s economic          1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
performance. Several banking and                       03 03 04 04 05 05 06 06 07 07 08
insurance companies expanded here during
the past year, while recent announcements
also point to solid growth in the near term.
Among individual companies, Comerica Inc. moved its corporate headquarters from Detroit to Dallas in fall
2007. The company signed a multi-year lease at the Bank One Center, a 60-story office tower located at 1717
Main Street in downtown Dallas. The move brought 200 jobs to the metro; the company also has 100
employees in a regional office in downtown’s Thanksgiving Tower. Fort Worth received a major financial
employer when CUNA Mutual Group of Madison, WI opened a new customer operations center in Centreport in
April 2007. The newly constructed facility houses 700 workers.

Job growth was seen in a variety of other industries. In 3rd quarter 2007, the Ritz-Carlton Dallas hired 400
workers to support the new 218-room hotel, which opened in August. The company hired for a range of
positions in operational departments, including housekeeping, stewarding, guest services, restaurant staffing
and the Ritz-Carlton Spa. On the retailing front, Wal-Mart opened a new Supercenter in McKinney, creating
jobs for 375 workers in 1st quarter 2007. Also in early 2007, Plano-based retailer JCPenney launched a new
store in Flower Mound, bringing 200 new jobs to the local economy.

However, recent economic news hasn’t all been positive. In the Financial Activities sector, Countrywide Financial
announced plans in fall 2007 to lay off 12,000 workers nationally, though the company did not reveal how many
North Texas positions would be affected. The company secured about $20 million from the Texas Enterprise
Fund, so despite the layoffs, Countrywide would be obligated to keep a base level of jobs in Texas. This
announcement comes after Countrywide beefed up staffing at the firm’s Richardson and Plano offices. Also in
the financial arena, Citigroup eliminated more than 660 positions in Las Colinas in late 2007. In an effort to reduce
their operating expenses, which have been growing at a faster clip than revenues, the New York-based company
announced that it would be cutting 17,000 employees worldwide.


                                                                                                                               6
©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                             Economy
Workforce cutbacks over the past year also registered in some other industries. In late 2007, Kitty Hawk Inc.
shuttered its network air freight and ground shipping services, eliminating 500 jobs at its headquarters at
Dallas/Fort Worth International Airport. In the Manufacturing sector, a slump in the high-end mobile phone market
caused Texas Instruments – the world’s largest manufacturer of electronic chips – to cut 500 jobs in 4th quarter
2007. The reductions occurred within the company’s research staff. Consumer electronics chain, CompUSA,
eliminated 382 positions from their Addison corporate headquarters in early 2007, and ceased retail operations
at more than 100 stores nationwide in early 2008. The closings affect nearly 640 workers in North Texas, with
the Grand Prairie area, Grapevine area and the Addison corporate headquarters losing 212 employees apiece.


Data Revisions
Each spring the Bureau of Labor Statistics releases revised employment figures for the previous two years after
tax documents that better represent the economy’s actual performance have been filed. It was initially reported
that Dallas/Fort Worth added roughly 63,500 jobs in the year-ending November 2008. Revised figures,
however, state that the area’s employment base actually added 71,800 jobs during that time frame.




                                                                                                                               7
©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                             Economy
Dallas Area
The Non-Agricultural Wage and Salary
Employment data series from the BLS                                              Employment Growth
showed that the Dallas area gained 51,200                                    (Annual Change by Quarter)
jobs during the year-ending February 2008.                                           Dallas Area
The metro’s employment base grew by 2.5                         Jobs
                                                         75k
percent in the past year. Dallas’ year-over-
year increase in new job formation ranked
                                                         50k
third highest nationwide.
                                                         25k
At 4.3 percent, Dallas’ unemployment rate is
a bit lower than the 4.8 percent average                  0k
seen for the nation as a whole
                                                        -25k

                                                        -50k
                                                               1Q      3Q   1Q   3Q   1Q    3Q    1Q    3Q    1Q    3Q   1Q
                                                               03      03   04   04   05    05    06    06    07    07   08




Fort Worth Area
According to the BLS, Fort Worth’s job base
increased by 19,700 positions during the                                         Employment Growth
year-ending February, with these new                                         (Annual Change by Quarter)
positions producing a 2.3 percent increase                                        Fort Worth Area
in the metro’s employment count.                                Jobs
                                                         30k
Fort Worth’s unemployment rate stood at
                                                         20k
4.2 percent in February 2008.
                                                         10k

                                                          0k

                                                        -10k

                                                        -20k
                                                               1Q      3Q   1Q   3Q   1Q    3Q    1Q    3Q    1Q    3Q   1Q
                                                               03      03   04   04   05    05    06    06    07    07   08




                                                                                                                               8
©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                             Economy
Growth by Industry
Dallas/Fort Worth’s Services supersector reported the biggest job increases during the year-ending February, as
Services employers added 37,700 positions, pushing the total upward by a robust 3.4 percent. Roughly 75
percent of these additions took place in the Dallas metro, where 27,900 jobs were created. On a regional level,
Education/Health Services proved to be the sector’s leader. The addition of a whopping 17,400 new hires here
grew the subsegment’s job base by a robust 5.6 percent – one of the largest gains in more than a decade.
Regional growth was also healthy in the Leisure/Hospitality Services subcategory, where 11,100 positions were
added for a 4.2 percent expansion rate. More moderate job production was recorded in the Professional/
Business Services sector with the boost of 6,800 positions. Meanwhile, the catchall Other Services generated
2,400 jobs over the past year.

Recent job revisions show that North Texas’ Construction sector is still growing notably. Additions in the
Construction category tallied a solid 11,700 jobs in the year-ending February 2008. Most of the past year’s
growth took place in Dallas (8,300 new hires), while Fort Worth generated a lesser 3,400 positions.

Job production in D/FW’s Trade sector picked up meaningfully in recent months. The Trade category posted a
gain of 11,300 positions in the year-ending February 2008, with this tally more than doubling the 5,200 jobs
added in the year-ending February 2007. Recent Trade additions translated to a solid 2.4 percent expansion
rate. On net, Dallas actually accounted for most of the region’s Trade-related job growth: the metro created
8,600 positions, while Fort Worth Trade employers added 2,700 Trade jobs in the year-ending February. On a
regional level, wholesalers in both Dallas and Fort Worth added a combined 6,000 new hires, while retailers
beefed up their payrolls by a similar 5,300 employees.

Employment growth continued at solid levels in the public sector over the past year. Government’s net gain of
8,100 positions during the year-ending February equates to an employment base expansion of 2.2 percent. Job
production was concentrated in the local government subsector where 10,400 new hires were added. These
additions offset the losses of 1,400 positions in the federal government subsegment and 900 jobs in state
government.

North Texas’ Financial Activities segment logged another healthy performance in the year-ending February
2008. Employment levels here moved ahead by 4,300 workers during the past 12 months. These new hires
expanded the sector’s job base by 1.9 percent. Of note, most of these positions were generated in Dallas
(3,300 jobs).

Annual job change in the Information sector continued to expand with recent net additions in the year-ending
February coming in at 1,800 new hires. These jobs drove the employment pool up by a healthy 2 percent. Job
gain here was fairly spread out across the two metros with Dallas contributing 1,100 jobs and Fort Worth gaining
700 positions.

The employment count in the Transportation and Utilities sector remained unchanged between early 2007 and
early 2008. While Fort Worth actually saw the addition of 700 Transportation and Utilities jobs, these gains were
countered by the loss of 700 positions in metro Dallas.

Following a drastic slowdown in job production, employment change in the Manufacturing sector faltered into
negative territory in the middle of 2006 and this trend continued going into 2008. The industry lost a whopping
4,000 net positions between February 2007 and February 2008. All of this downsizing occurred in Dallas, while
the job count in Fort Worth’s Manufacturing sector remained flat in the year-ending February.



                                                                                                                               9
©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Economy

                                 Dallas/Fort Worth Employment Growth by Industry
                          (Annual Change in Non-Agricultural Wage and Salary Jobs in 000s)

                         Total    Services    Trade       Govt        Mfg        Fin      Const         TU        Info
         4Q 2007         71.8       41.6        6.9        6.3        -2.9       2.6       11.2         2.2       3.9
         1Q 2008         70.9       37.7       11.3        8.1        -4.0       4.3       11.7         0.0       1.8
        Total Jobs     2,960.4    1,144.8     483.2      381.6      294.2       234.6      191.6       140.2      90.2
         % of Total     100%       38.7%      16.3%      12.9%       9.9%       7.9%       6.5%        4.7%      3.0%
        National %      100%       40.4%      15.5%      16.6%      10.0%       6.0%       5.1%        3.7%      2.2%
         Source: M/PF YieldStar calculations based on data from the U.S. Bureau of Labor Statistics.




                                                                                                                              10
©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand



Current Trends
Region Overview
The Dallas/Fort Worth apartment market
suffered net move-outs from 1,200 units                                      Apartment Absorption
during 2008’s 1st quarter. This loss was a                                    Dallas/Fort Worth Area
surprise, given absorption had been strong                      Units
during the last half of 2007, with overall                30k
results at that time propped up in part by the                           Quarterly      Annual
limited outflow of renters buying homes,
                                                          20k
once mortgage qualifications for would-be
first-time buyers got tougher.
                                                          10k
While employment growth in North Texas
has slowed a little from the levels seen
previously, the region still is adding jobs at a     0k
very brisk pace, so economic trends don’t
provide much insight into early 2008’s
apartment resident move-outs. And nothing          -10k
has changed fundamentally since the last
                                                        1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
half of 2007 in the home-buying
                                                        03 03 04 04 05 05 06 06 07 07 08
environment, so it’s not the case that loss of
renters to purchase is up again. Strong
competition from rental single-family homes – seen so clearly in early 2007 but then seeming to wane late in the
year – could have been a factor in early 2008’s disappointing apartment demand results, but the actual
explanation seems to lie elsewhere when you take a closer look at absorption stats by product age category.

First, the good news was that new projects just coming on stream exhibited considerable leasing momentum.
While demand didn’t keep pace with completions, since these projects still are progressing through initial lease-
up, there was solid apartment absorption during 2008’s 1st quarter for the newest category of product in almost
every single neighborhood that added any new supply.

Second, properties from the 1990s, 1980s and 1970s all held their own for the quarter, posting occupied unit
counts in March that were almost identical to the December 2007 figures.

Virtually all of early 2008’s net move-outs, then, occurred in the oldest class of product, which consists of
communities built prior to 1970. Furthermore, losses were very heavily concentrated in the oldest properties in a
half dozen neighborhoods – Oak Cliff, Far East Dallas, South Arlington, Western Hills, East Irving and Northwest
Dallas. What immediately registers looking at that list is that most of those areas are spots where Hispanic
households comprise a much bigger share of the populace than is typical for Dallas/Fort Worth as a whole. In
early 2008, then, the region suddenly seems to have registered a dramatic decline in the number of recent
immigrants (here legally or otherwise) residing in the bottom tier of apartment product. It’s tough to track exactly
what happened with the group. Part of the explanation may lie in economic trends, since there have been
further sizable cutbacks in single-family building activity, and single-family construction is a key employment
sector for the region’s newly-arriving Hispanic immigrants. Those impacted may have simply left the market or
they may have combined households, which would tend to push them out of apartments and into rental single-
family homes. There also could be some influence from recent efforts in select North Texas municipalities to
                                                                                                                            11

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand
place constraints on the flow of illegal immigration. While neighborhoods suffering net move-outs of Hispanic
renters weren’t necessarily in the specific cities leading the charge to deter illegal immigrants from moving in, the
substantial media coverage this issue attracts certainly could have had a more widespread effect.

Early 2008’s net move-outs from the
Dallas/Fort Worth apartment market took
absorption for the year-ending March down
to 6,590 units. This demand was well below
the past year’s completion volume of 8,665
units, but it far exceeded annual inventory
growth of 4,235 units, since the impact of
new supply was reduced roughly in half by
the fact that more than 4,400 previously
operating apartments were taken offline,
mainly reflecting demolitions to create
redevelopment sites.

While Dallas/Fort Worth apartments of late
haven’t lost renters to home purchase at the
pace seen historically, the biggest factor in
that shift seems to be the difficulty that
aspiring first-time buyers now have when
trying to qualify for mortgages. The local
home market should retake a much bigger share of total housing demand once the lending environment loosens
up somewhat, as homes remain very affordable in the big picture. According to the National Association of
Realtors, the median sales price for a Dallas/Fort Worth area existing single-family home as of 4th quarter 2007
stood at $145,000, registering notably lower than the South region average of $171,700 and the U.S. norm of
$206,200.

Since the Texas home markets didn’t register the dramatic run-ups in prices recorded in most other spots during
the mid-2000s, they now aren’t experiencing the sizable correction seen elsewhere. The National Association of
Realtors reports a very slight annual upturn for D/FW home prices of 0.5 percent as of 2007’s 4th quarter. The
Standard & Poor’s Case-Shiller home price index does indicate a decline for Dallas, but the reported 2.4 percent
drop on an annual base is much smaller than the 9.1 percent plunge cited for all 20 cities monitored for that
system.

In contrast to the factors in play for many other home markets, Dallas/Fort Worth’s current price shifts in the
single-family segment for the most part simply reflect straightforward overbuilding, and builders are continuing to
act to correct that imbalance. The number of single-family home permits issued in metro Dallas during the year-
ending February 2008 fell 36 percent from the annual total as of early 2007, sliding to 26,002 units. In metro
Fort Worth, the decline in annual activity was at 39 percent, with 15,211 homes authorized over the past year.
Still, Dallas ranked as the nation’s #4 market for single-family home starts, and Fort Worth came in at the #14
position. Combining the two metros would move the North Texas region up to the nation’s #3 spot for building
activity, behind Houston and Atlanta.




                                                                                                                            12

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                   Dallas/Fort Worth
                                                                                                  Apartment Report
                                                                                                                 Demand
Dallas Area
Dallas/Fort Worth’s net move-outs from
apartments during the initial three months of                                      Apartment Absorption
2008 were concentrated on the Dallas side                                                   Dallas Area
of the region, where the occupied unit count                       Units
dropped by 1,240 apartments for the                       20k
quarter. This quarterly outflow reduced the                                    Quarterly         Annual
demand tally for the year-ending March in
Dallas to 3,410 units.                                    10k

While annual apartment demand in Dallas
came in at a pretty lackluster level, it still
managed to slightly surpass net inventory                  0k
expansion. The size of the Dallas apartment
stock grew by only 3,023 units during the
year-ending March, reflecting 6,852                      -10k
completions minus 3,829 units taken out of
                                                                 1Q     3Q 1Q          3Q 1Q     3Q 1Q 3Q       1Q 3Q     1Q
the rental pool, mostly due to demolitions
                                                                 03     03 04          04 05     05 06 06       07 07     08
that have cleared the way for redevelopment
projects.


Fort Worth Area
Fort Worth’s apartment demand volume for
1st quarter 2008 ended up in positive                                           Apartment Absorption
territory by the slightest of margins: the                                              Fort Worth Area
occupied unit count as of March was up 50                       Units
                                                          8k
apartments from the December 2007 figure.                                  Quarterly        Annual
Absorption during the year-ending March
                                                          6k
stood at 3,180 units.
                                                          4k
Annual demand in Fort Worth proved way
ahead of that metro’s inventory growth pace
                                                          2k
of only 1,212 units. This inventory growth
figure reflects 1,813 units completed (with a             0k
whopping 60 percent of them found in
projects finished specifically during 2008’s             -2k
1st quarter) versus 601 units in previously
operating apartment communities that were                -4k
taken offline.
                                                                1Q      3Q    1Q       3Q   1Q   3Q   1Q   3Q   1Q   3Q    1Q
                                                                03      03    04       04   05   05   06   06   07   07    08




                                                                                                                                13

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand

Current Trends: Submarket Highlights
As is typical in Dallas/Fort Worth, the distribution of new supply by neighborhood played a big role in where
apartment demand registered over the course of the year-ending March. Following this pattern, absorption
leaders for the year included active construction zones like West Plano, Las Colinas/Valley Ranch and Intown
Dallas. On the other hand, demand was not driven by deliveries in every neighborhood. Most notably Hurst/
Euless/Bedford, East Plano and North Arlington captured solid demand despite not adding any new supply.
Thus, these submarkets took the lead in backfilling vacancies among existing communities.

While negative apartment demand was posted in a handful of Dallas/Fort Worth locales during the year-ending
March, significant move-outs really were limited to just one submarket: the Highlands area in northeast Dallas.
The occupied unit count in that neighborhood dropped by 860 apartments. However, since net move-outs
actually were smaller than the decline in inventory (a slide of nearly 1,300 units, mostly due to demolitions),
Highlands area properties that stayed in operation actually picked up residents.

Fort Worth Submarkets
Hurst/Euless/Bedford was the real standout
                                                                             Apartment Demand Leaders
apartment demand performer in the Fort Worth
                                                                                  April 2007 - March 2008
submarket cluster of late, absorbing a solid 370
apartments during 1st quarter and 800 units during                                                               Annual
the year-ending March. Since demand registered                              Submarket                            Demand
at the same time that no new supply came on                     West Plano                                       1,060 units
stream, the submarket realized one of the region’s              Las Colinas/Valley Ranch                           870 units
strongest upturns in occupancy.
                                                                Hurst/Euless/Bedford                               800 units
                                                                East Plano                                         720 units
North Arlington also managed to achieve sizable
annual demand despite not adding any further                    Intown Dallas                                      660 units
stock. Absorption for the year-ending March came                North Arlington                                    560 units
in at 560 units, though 1st quarter 2008 specifically           Far North Dallas                                   530 units
wasn’t a period of brisk leasing, as quarterly                  Grand Prairie                                      500 units
absorption was held to just 10 units.                           Allen/McKinney                                     480 units
                                                                North Fort Worth                                   410 units
Next up on the annual demand list for the Fort
Worth cluster of submarkets was North Fort Worth, which absorbed 410 units during the year-ending March
even though the area suffered net move-outs from 30 units in 1st quarter. Annual demand in North Fort Worth
didn’t keep pace with concurrent completions, which totaled 737 units.

Haltom City/Richland Hills logged a solid three-month absorption total of 310 units during early 2008, and that
tally took demand during the year-ending March to 360 apartments. Like Hurst/Euless/Bedford and North
Arlington, the neighborhood managed to attract this absorption even though no new supply was added, so there
was considerable backfilling of previous vacancies in the existing stock of product.

Apartment absorption during the year-ending 1st quarter came in at 230 units to 290 units across four of the Fort
Worth submarket cluster’s neighborhoods – the Intown/Cultural District area, South Arlington, Southwest Fort
Worth and South Fort Worth. With just over 400 apartments added to the mix of product during the past year,
Southwest Fort Worth was the one neighborhood in that group where annual demand didn’t well surpass net
inventory change.

Annual apartment demand proved modest at 70 to 80 units across the quartet of Northeast Tarrant County,
Woodhaven, Centreport and Northwest Tarrant County. There was backfilling of previous vacancies in the
                                                                                                                            14

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand
existing stock for most of these areas, though Northeast Tarrant County’s absorption volume didn’t quite keep
pace with new supply.

In Ridglea/Ridgmar, March’s occupied apartment count matched the year-earlier figure. This actually was a
good result, since net inventory there declined by 240 units over the course of the past year.

The Southwest Tarrant County submarket suffered sizable net move-outs totaling 130 units specifically during
2008’s 1st quarter, and that quarterly loss took annual demand into negative territory at -30 units. In a similar
pattern, 430 net move-outs for the quarter in Western Hills led to annual net loss of residents, with the occupied
apartment count down by 210 units.

Northern Dallas Submarkets
Quite a few of the neighborhoods in the northern Dallas submarket cluster were comparatively strong apartment
demand performers during the year-ending March 2008.

Leading the way for the group, West Plano absorbed 1,060 apartments over the course of the past year, with
this sizable annual demand tally including absorption of 140 units in 2008’s 1st quarter. Annual absorption fell
just a handful of units short of the neighborhood’s yearly new supply total of 1,138 apartments.

Demand for another 50 units in the initial three months of 2008 pushed East Plano’s absorption total for the
year-ending March to 720 units. All of this demand served to backfill previous vacancies in the existing stock,
since there weren’t any new apartment completions.

While the occupied unit count slid by a minor 10 units in Far North Dallas during 2008’s 1st quarter, annual
absorption as of March still proved solid at 530 units. This annual demand total surpassed the 332 units of new
supply delivered in the area.

Allen/McKinney was the final neighborhood in the northern Dallas submarket cluster posting fairly substantial
apartment demand during the year-ending March. Annual absorption registered at 480 units despite the net
loss of 140 units from the occupied apartment count during 1st quarter. Annual demand didn’t keep pace with
inventory growth in Allen/McKinney, where the stock climbed by 611 units (624 apartments in completions
minus a small block of 13 units taken out of the database).

The North Dallas submarket suffered net move-outs from 170 apartments in 2008’s 1st quarter, pushing annual
absorption into very slight negative territory at -10 units. Annual net move-outs proved somewhat more
substantial at 140 units in Carrollton/Farmers Branch/Addison and considerably more severe at 310 units in
Richardson. For both Carrollton/Farmers Branch/Addison and Richardson, however, a key factor in the net
move-outs was that inventory was reduced, on net, by property removals from the stock operating previously.

Northwestern Dallas Submarkets
Taking the usual position seen anytime a meaningful block of product is available, Las Colinas/Valley Ranch
was the key apartment demand center across the northwestern Dallas submarkets in the year-ending March
2008. Annual demand in the neighborhood reached 870 apartments, boosted by the solid showing of 310
apartments absorbed during 2008’s 1st quarter. Annual absorption in Las Colinas/Valley Ranch ran a little
behind net inventory growth of 966 units (1,133 in projects finishing construction minus 167 removals).

Quarterly demand for 40 apartments in Denton took that submarket’s annual absorption to 260 units, about in
line with the 278 units delivered to the market over the course of the past year.



                                                                                                                            15

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand
While Lewisville normally is a pretty active apartment construction center, no new product came on stream
during the year-ending March. In turn, annual demand wasn’t up to the neighborhood’s usual standard: yearly
absorption was held to 120 units, cut by 80 net move-outs in the January-March time frame.

Both West Irving and East Irving suffered significant 1st quarter 2008 net move-outs that took annual absorption
into negative territory as of March. Annual loss for West Irving was at 50 units, while East Irving’s occupied
apartment count backtracked by 150 units.

Eastern Dallas Submarkets
After Garland posted a stellar apartment absorption performance during late 2007, it gave back pretty much all
of that momentum in early 2008. The submarket’s quarterly net move-outs totaled 510 units, the biggest loss in
any neighborhood across Dallas/Fort Worth. Even with this big quarterly downturn, however, March 2008’s
occupied apartment count still topped the March 2007 figure by 240 units, well over the annual inventory growth
pace of 22 units (318 apartments in new supply minus 296 units removed from the operating pool).

Mesquite absorbed a solid 160 apartments in 2008’s 1st quarter, taking demand in the year-ending March into
positive territory at 140 units.

In contrast, Far East Dallas’ 180 net move-outs in the initial three months of 2008 left annual absorption as of
March in the negative category at -40 units.

Southern Dallas Submarkets
Grand Prairie was the most impressive apartment absorption performer in the southern Dallas cluster of
submarkets during the year-ending March. Annual demand stood at 500 units despite net move-outs from 280
units that occurred specifically during 1st quarter. Annual absorption in Grand Prairie proved notably above
inventory growth of 186 units (288 completions minus 102 removals).

Apartment absorption was modest in Duncanville/DeSoto/Cedar Hill/Lancaster for both 1st quarter 2008 at 60
units and for the year-ending March at 80 units. This demand didn’t keep pace with deliveries totaling 393 units.

Oak Cliff was one of the key neighborhoods accounting for Dallas/Fort Worth’s net move-outs during 2008’s 1st
quarter. The occupied apartment count in the submarket came down by 310 units for the quarter. This poor
quarterly showing wiped out all the demand posted during the previous three quarters, taking annual demand
down to zero. Occupancy wasn’t hurt too badly on an annual basis, however, since inventory growth was held
to 71 units (192 completions minus 121 removals).

Annual apartment absorption as of March proved negative in the remaining neighborhoods across the southern
Dallas cluster of submarkets. Net move-outs during the year-ending 1st quarter totaled 70 units in North Ellis
County, 170 units in Southwest Dallas and 250 units in South Dallas.

Central Dallas Submarkets
Intown Dallas ranked as the strongest apartment demand performer across North Texas during January-March
2008, absorbing 430 units. This healthy quarterly demand took absorption in the year-ending 1st quarter to 660
units. Annual absorption managed to move just ahead of inventory growth, which came in at 574 units (762
units completed minus 188 units removed).

Moderate annual demand registered as of March in three other spots across the central Dallas cluster of
submarkets. Far Northwest Dallas absorbed 260 units, pretty similar to the neighborhood’s tally of 226
apartments completed. The Oak Lawn/Park Cities area absorbed 210 units, well short of inventory growth
reaching 494 units (755 completions minus 261 removals). And Far Northeast Dallas absorbed 110 units, all of
                                                                                                                            16

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand
that demand serving to backfill previous vacancies in the existing stock given that there weren’t any new product
deliveries.

Very mild absorption of 30 units was posted in Near North Dallas during the year-ending March, with that annual
performance hurt by 70 net move-outs specifically during 1st quarter. Even a little annual absorption was
helpful, however, since existing inventory actually declined by 70 units.

Net move-outs from 180 units during 1st quarter brought the occupied apartment count in Northwest Dallas back
to the level seen in early 2007. This was the rare case where no demand actually was good news: since
removals dropped the existing unit count in Northwest Dallas by 242 units, projects remaining in operation
gained residents.

Net move-outs that at least in part reflected inventory reductions were seen during the year-ending March
across East Dallas, the East University-Vickery submarket and the Highlands area. The East Dallas net move-
out figure was at 370 units, with the submarket suffering resident loss that was a little steeper than inventory
reduction of 213 units. For East University-Vickery, the occupied apartment count dropped by 440 units during
the year-ending 1st quarter, losing more momentum than was accounted for by the downturn of 137 units in the
existing stock. In the Highlands area, annual net move-outs of 860 units were the most pronounced anywhere
in the North Texas region. But teardowns to create redevelopment sites were far more common in that
neighborhood too, with the reduction in stock – 1,297 units – actually far more extreme than the net move-out
figure.




                                                                                                                            17

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand

                             ANNUAL APARTMENT ABSORPTION BY SUBMARKET
                                         April 2007 - March 2008
                                                  New               Net Inventory                           Units
                       Submarket                Supply    Removals        Change                        Absorbed
           21   Intown Dallas                      762          188           574                             660
           22   South Dallas                         80           8            72                            -250
           24   Oak Cliff                          192          121            71                               0
           25   Dunc/DeSoto/CH/Lancaster           393            0           393                              80
           26   Grand Prairie                      288          102           186                             500
           27   East Irving                           0           0             0                            -150
           29   Oak Lawn/Park Cities               755          261           494                             210
           30   Far Northwest Dallas               226            0           226                             260
           31   Carrollton/FB/Addison              333          382           -49                            -140
           32   Near North Dallas                     0          70           -70                              30
           34   East Dallas                           0         213          -213                            -370
           35   Highlands                             0       1,297        -1,297                            -860
           36   Richardson                            0         332          -332                            -310
           37   Garland                            318          296            22                             240
           38   Mesquite                              0           0             0                             140
           39   Southwest Dallas                      0           0             0                            -170
           40   Far East Dallas                       0           0             0                             -40
           41   East University-Vickery               0         137          -137                            -440
           42   Northwest Dallas                      0         242          -242                               0
           43   West Irving                           0           0             0                             -50
           44   North Dallas                          0           0             0                             -10
           45   Far Northeast Dallas                  0           0             0                             110
           47   Far North Dallas                   332            0           332                             530
           48   Las Colinas/Valley Ranch         1,133          167           966                             870
           81   Denton                             278            0           278                             260
           82   Lewisville                            0           0             0                             120
           85   West Plano                       1,138            0         1,138                           1,060
           86   East Plano                            0           0             0                             720
           87   Allen/McKinney                     624           13           611                             480
           88   North Ellis County                    0           0             0                             -70
                DALLAS AREA                      6,852        3,829         3,023                           3,410




                                                                                                                            18

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand

                            ANNUAL APARTMENT ABSORPTION BY SUBMARKET
                                           April 2007 - March 2008
                                                    New               Net Inventory                         Units
                      Submarket                   Supply    Removals        Change                      Absorbed
           52   South Fort Worth                        0           0             0                           230
           53   Southwest Fort Worth                 406            0           406                           230
           54   Ridglea/Ridgmar                         0         240          -240                             0
           55   Western Hills                           0           0             0                          -210
           56   Intown/Cultural District             304          258            46                           290
           58   North Fort Worth                     737            0           737                           410
           59   Woodhaven                               0           0             0                            70
           60   Centreport                              0           0             0                            70
           70   North Arlington                         0           0             0                           560
           71   South Arlington                         0         103          -103                           250
           72   Southwest Tarrant County                0           0             0                           -30
           73   Northwest Tarrant County                0           0             0                            70
           74   Northeast Tarrant County             177            0           177                            80
           75   Haltom City/Richland Hills           189            0           189                           360
           76   Hurst/Euless/Bedford                    0           0             0                           800
                FORT WORTH AREA                    1,813          601         1,212                         3,180
                D/FW AREA                          8,665        4,430         4,235                         6,590
            * Submarket totals may not add to area total because of rounding.




                          Whisper Creek in Highlands is one of several apartment communities in the
                                      Dallas/Fort Worth area that is being demolished.

                                                                                                                            19

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand

Forecast

Region Overview
Leading economists are calling for Dallas/
Fort Worth job growth during the year-                                         Apartment Absorption
ending 1st quarter 2009 to total some                                            Dallas/Fort Worth Area
40,000 to 45,000 positions, off from the                        Units
                                                         30k
annual growth pace seen currently but still
enough to produce substantial total housing
demand.                                                  20k

The fact that 1st quarter’s demand
performance fell below M/PF YieldStar’s              10k
expectations causes some concern about
the absorption outlook. However, conditions
in the factors that will influence near-term           0k
demand haven’t really changed much from
late 2007 to early 2008, so the forecast                                 Quarterly    Annual       Forecast
                                                    -10k
presented previously gets only a little
finetuning for the quarter. M/PF YieldStar                 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
still anticipates that apartments will capture              03 03 04 04 05 05 06 06 07 07 08 08 09
a fairly impressive share of that total
housing demand. This outlook assumes
that the strict underwriting standards that deterred first-time home purchases recently will remain largely in place
over the course of the next year. Furthermore, M/PF YieldStar still anticipates that competition from shadow
market rental single-family homes will have only a modest negative impact on demand for traditional
apartments. (That’s probably the real wild card in the whole scenario. Over the course of the past year or so,
those shadow market rentals seem to have widespread appeal at times and very limited appeal at other points.
Given the large supply of every housing product available in Dallas/Fort Worth, hard-to-predict consumer
behavior is going to play a huge role in the actual performances of each type of product.)

Under this set of assumptions, Dallas/Fort Worth’s forecast apartment demand for the year-ending March 2009
reaches 8,500 units, viewed relative to new completions at roughly 10,600 units. In actuality, apartment
demand should be somewhat weaker than the figure of 8,500 units, as teardowns will hold inventory growth
under the mark of 10,600 or so units. M/PF YieldStar’s rough expectation is that both the apartment demand
volume and the net inventory growth level will be some 3,000 to 5,000 units under the calculations presented
here. Whatever the apartment absorption and net inventory growth figures turn out to be, what’s really
important is the ratio between the two stats, and the assumption is that demand comes in modestly under net
inventory change.




                                                                                                                            20

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand
Dallas Area
Apartment absorption in the Dallas area is
forecast at 6,600 units during the year-                                    Apartment Absorption
ending March 2009, compared to just over                                             Dallas Area
                                                                  Units
8,100 apartments that are slated to finish                20k
construction during the same time frame.
Teardowns will be much more common in
the Dallas metro than in the Fort Worth area,
so this is the part of North Texas where                  10k
immediate absorption and net inventory
growth will skew downward from the figures
presented in this forecast.
                                                           0k



                                                                                    Quarterly      Annual       Forecast
                                                         -10k
                                                                1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
                                                                03 03 04 04 05 05 06 06 07 07 08 08 09




Fort Worth Area
M/PF YieldStar anticipates Fort Worth’s
apartment demand volume for the year-
                                                                            Apartment Absorption
ending March 2009 at 1,900 units. As in the
                                                                                  Fort Worth Area
case of Dallas, the Fort Worth absorption                       Units
forecast falls somewhat short of targeted                 8k
deliveries, which register near 2,500 units in
                                                          6k
metro Fort Worth.
                                                          4k

                                                          2k

                                                          0k

                                                         -2k
                                                                                      Quarterly       Annual       Forecast
                                                         -4k
                                                               1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
                                                               03 03 04 04 05 05 06 06 07 07 08 08 09




                                                                                                                              21

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand

Forecast: Submarket Highlights
With new deliveries typically the key factor that shapes Dallas/Fort Worth apartment demand distribution, Intown
Dallas appears likely to be the region’s runaway absorption leader during the year-ending March 2009,
capturing almost three times the demand expected in any other neighborhood. Other submarkets where
completions should help drive demand to meaningful volumes include North Fort Worth, West Plano,
Carrollton/Farmers Branch/Addison, East University-Vickery, Las Colinas/Valley Ranch and Lewisville.

Central Dallas Submarkets
The nine neighborhoods in the central Dallas
                                                                       Forecast Apartment Demand Leaders
submarket cluster are forecast to absorb just over
                                                                                  April 2008 - March 2009
3,000 units during the year-ending March 2009.
                                                                                                                 Annual
Intown Dallas appears positioned to hold its usual                             Submarket                         Demand
dominant position in the submarket cluster with                 Intown Dallas                                     2,210 units
absorption in the coming year anticipated at a
                                                                North Fort Worth                                    750 units
whopping 2,210 units. New deliveries play a key
role in the area’s total demand picture as                      West Plano                                          540 units
communities totaling more than 2,600 apartments                 Carrollton/Farmers Branch/Addison                   510 units
are scheduled to come online through early 2009,                East University-Vickery                             510 units
with these additions growing the submarket’s rental
base by 19 percent.                                             Las Colinas/Valley Ranch                            510 units
                                                                Lewisville                                          510 units
Coming in at a distant second place for likely         Allen/McKinney                                               450 units
demand in the central Dallas submarket cluster, the
                                                       Southwest Fort Worth                                         380 units
East University-Vickery area is forecast to absorb
some 510 units in the year-ending early 2009.          South Fort Worth                                             340 units
Pushing demand up from the volumes seen
recently, scheduled product additions jump to 821 apartments.

While Oak Lawn/Park Cities won’t get any new supply to help stimulate demand over the coming year, fairly
meaningful backfilling is anticipated for current vacancies in existing properties, reflecting that today’s
occupancy rate is a little off its typical position relative to the performances in other close-in areas. Demand is
forecast at 110 units for the year-ending March 2009. In Northwest Dallas, absorption is forecast at 80 units,
representing a little less than half the scheduled new supply of 181 units.

Mild backfilling of current vacancies is expected across the remaining central Dallas submarkets, which won’t
get any new supply. Absorption through March 2009 is forecast at 10 to 50 units apiece for Far Northeast
Dallas, the Highlands area, East Dallas, Far Northwest Dallas and Near North Dallas.

Fort Worth Submarkets
The submarkets in the Fort Worth cluster are forecast to absorb 1,900 units during the year-ending 1st quarter
2009.

North Fort Worth is the submarket likely to lead the way in this part of the region, reflecting that the
neighborhood has 1,072 units in properties scheduled to finish construction. North Fort Worth demand during
the year-ending March 2009 is anticipated at 750 apartments.



                                                                                                                            22

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                               Demand
Completions also should help spur demand across several other neighborhoods in metro Fort Worth, leading to
absorption of 380 units in Southwest Fort Worth, 340 units in South Fort Worth, and 210 units in both South
Arlington and Northeast Tarrant County. In each case, expected demand falls a little short of scheduled new
supply.

Western Hills appears to be the metro Fort Worth neighborhood best positioned to achieve a little backfilling of
current vacancies in the existing stock over the near term, since 1st quarter 2008’s weak performance moved
the submarket out of its usual position relative to the status of nearby neighborhoods. Absorption in Western
Hills during the year-ending March 2009 is forecast at 110 units. Very minor backfilling (about 10 units) seems
likely in Woodhaven.

Other metro Fort Worth neighborhoods are expected to see no demand or to suffer slight net move-outs during
the year-ending 1st quarter 2009.

Northern Dallas Submarkets
Absorption in the northern Dallas submarket cluster is anticipated to almost 1,800 units in the coming year. A
key factor spurring demand in this submarket cluster should be new product availability: just over 2,300 units
are targeted for completion in this cluster during the year-ending March.

Since West Plano and Carrollton/Farmers Branch/Addison are scheduled to add sizable blocks of new supply in
the near term, these neighborhoods are expected to be northern Dallas’ demand leaders through early 2009. In
West Plano, absorption is anticipated near 540 units, whereas scheduled new supply reaches 700 units. For
Carrollton/Farmers Branch/Addison, the expected absorption tally is 510 units, compared to 782 apartments
targeted to come on stream. At 450 units, forecast demand over the coming year also is substantial in Allen/
McKinney, where 580 apartments should be finished.

At the next tier of performance, anticipated demand registers at 230 units in Richardson, which should add 279
units of new supply.

Looking elsewhere in the submarket cluster, absorption is predicted at a minor 40 units in North Dallas, whereas
no demand seems likely in either Far North Dallas or East Plano.

Northwestern Dallas Submarkets
For the northwestern Dallas submarket cluster, expected demand during the year-ending March 2009 comes in
at 1,230 units, moderately under the 1,567 apartments scheduled to enter the marketplace.

Las Colinas/Valley Ranch and Lewisville should dominate near-term absorption in the northwestern Dallas
suburbs, since they also will receive significant blocks of new apartment deliveries. Absorption through early
2009 is forecast at 510 in each area, compared to targeted completions of 623 units in Las Colinas/Valley
Ranch and 752 units in Lewisville.

The Denton submarket should register demand for 160 units, versus slated new supply totaling 192 apartments.

A little backfilling of current vacancies probably is on the horizon in West Irving and East Irving. Absorption for
the year-ending March 2009 is anticipated at 30 units and 20 units, respectively.

Southern Dallas Submarkets
Near-term absorption in the southern Dallas submarket cluster is forecast to remain pretty sluggish, influenced
by the fact that only one neighborhood will add any new product in the year-ending early 2009.


                                                                                                                            23

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                               Dallas/Fort Worth
                                                                                              Apartment Report
                                                                                                               Demand
That neighborhood getting new supply is Oak Cliff, where 296 units should finish construction. Annual
absorption for the locale is expected at 150 units.

Look for mild backfilling elsewhere in the southern Dallas zone. Demand is forecast at 80 units in Grand Prairie,
50 units apiece in South Dallas and Duncanville/DeSoto/Cedar Hill/Lancaster, 30 units in Southwest Dallas and
20 units in North Ellis County.

Eastern Dallas Submarkets
Among the eastern Dallas submarkets, Garland should put up the most meaningful absorption performance
during the year-ending March 2009, reflecting that the area will get just over 300 units of new supply. Annual
demand is anticipated at 130 apartments.

Backfilling a few of the current vacancies elsewhere, expected absorption is at 50 units in Far East Dallas and
10 units in Mesquite.



                        ANNUAL APARTMENT ABSORPTION FORECAST BY SUBMARKET
                                                            April 2008 - March 2009
                                                               Units                                        Units
                         Submarket                           Absorbed                 Submarket           Absorbed
           21    Intown Dallas                                    2,210 81 Denton                              160
           22    South Dallas                                        50 82 Lewisville                          510
           24    Oak Cliff                                          150 85 West Plano                          540
           25    Dunc/DeSoto/CH/Lancaster                            50 86 East Plano                             0
           26    Grand Prairie                                       80 87 Allen/McKinney                      450
           27    East Irving                                         20 88 North Ellis County                    20
           29    Oak Lawn/Park Cities                               110       DALLAS AREA                    6,600
           30    Far Northwest Dallas                                10 52 South Fort Worth                    340
           31    Carrollton/FB/Addison                              510 53 Southwest Fort Worth                380
           32    Near North Dallas                                   10 54 Ridglea/Ridgmar                      -40
           34    East Dallas                                         20 55 Western Hills                       110
           35    Highlands                                           30 56 Intown/Cultural District               0
           36    Richardson                                         230 58 North Fort Worth                    750
           37    Garland                                            130 59 Woodhaven                             10
           38    Mesquite                                            10 60 Centreport                             0
           39    Southwest Dallas                                    30 70 North Arlington                        0
           40    Far East Dallas                                     50 71 South Arlington                     210
           41    East University-Vickery                            510 72 Southwest Tarrant County               0
           42    Northwest Dallas                                    80 73 Northwest Tarrant County               0
           43    West Irving                                         30 74 Northeast Tarrant County            210
           44    North Dallas                                        40 75 Haltom City/Richland Hills           -30
           45    Far Northeast Dallas                                50 76 Hurst/Euless/Bedford                 -40
           47    Far North Dallas                                     0       FORT WORTH AREA                1,900
           48    Las Colinas/Valley Ranch                           510       D/FW AREA                      8,500
             * Submarket to tals may no t add to area to tal because o f ro unding.




                                                                                                                            24

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                              Dallas/Fort Worth
                                                                                             Apartment Report
                                                                                                                   Supply




Existing Stock
Existing apartment inventory in the
Dallas/Fort Worth region reached an                                           Existing Apartment Units
estimated 559,103 units as of 1st quarter                                          Dallas/Fort Worth
2008. The region’s inventory grew 0.9
                                                                 Units
percent in the past year, with this expansion             575k
a little below the 1.2 percent average annual
growth pace posted over the past five years.
                                                          525k
Of North Texas’ apartment inventory as of
early 2008, Dallas’ share amounted to
409,776 units, or 73 percent of the region’s
existing base, while Fort Worth’s inventory               475k
stood at 149,327 apartments, or about 27
percent of the area’s stock.

                                                          425k
                                                                 1Q      3Q   1Q   3Q   1Q   3Q   1Q    3Q    1Q   3Q    1Q
                                                                 03      03   04   04   05   05   06    06    07   07    08




                                                                                                                              25

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                               Dallas/Fort Worth
                                                                                              Apartment Report
                                                                                                                   Supply


The Dallas area inventory grew 0.8 percent
during the year-ending March 2008. This
growth was a bit slower than the expansion
                                                                              Existing Apartment Units
                                                                                     Dallas Area
pace of 1.1 percent posted over the past five                    Units
years.                                                    425k


                                                          375k


                                                          325k


                                                          275k


                                                          225k
                                                                 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
                                                                 03 03 04 04 05 05 06 06 07 07 08




Metro Fort Worth’s inventory expanded by 1
percent between 1st quarter 2007 and 1st                                      Existing Apartment Units
quarter 2008. The past year’s performance
                                                                                    Fort Worth Area
compared to an average expansion pace of
                                                                 Units
1.3 percent seen over the past five years.                175k


                                                          150k


                                                          125k


                                                          100k


                                                           75k
                                                                 1Q      3Q    1Q   3Q   1Q   3Q   1Q   3Q    1Q   3Q    1Q
                                                                 03      03    04   04   05   05   06   06    07   07    08




                                                                                                                              26

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                    Supply

                                EXISTING UNITS BY BEDROOM TYPE BY SUBMARKET
                                                 1st Quarter 2008
                                               Total     Total
                 Submarket                    Comm.     Units     Eff    One     Two                       Three
            21   Intown Dallas                    100     13,699    413   7,242   4,591                       722
            22   South Dallas                     114     12,796    117   3,343   6,156                     1,629
            24   Oak Cliff                        119     11,536    243   4,264   5,458                     1,246
            25   Dunc/DeSoto/CH/Lancaster          51      7,796      18  3,130   3,774                       658
            26   Grand Prairie                     76     13,980    225   5,969   6,151                     1,125
            27   East Irving                       93      9,135    101   3,894   4,427                       713
            29   Oak Lawn/Park Cities             182      9,891    551   5,787   2,877                       139
            30   Far Northwest Dallas              16      3,414    238   1,038   1,478                       434
            31   Carrollton/FB/Addison            109     21,765    348   9,329 10,412                      1,343
            32   Near North Dallas                 35      7,269    351   3,759   2,554                       605
            34   East Dallas                      187      7,832    658   5,004   1,975                       152
            35   Highlands                         68     14,543    451   7,578   5,793                       721
            36   Richardson                        53      8,576      48  3,298   4,273                       957
            37   Garland                          137     16,553    470   6,847   7,611                     1,216
            38   Mesquite                          75     13,549    254   6,358   6,056                       673
            39   Southwest Dallas                  49     10,749    471   4,258   4,351                     1,413
            40   Far East Dallas                   70     11,960    313   5,915   4,911                       821
            41   East University-Vickery           85     20,446  1,437 11,795    6,620                       594
            42   Northwest Dallas                  74     10,147    616   6,225   2,927                       356
            43   West Irving                       93     18,042    389   9,500   7,457                       424
            44   North Dallas                     110     22,129    600 11,663    8,730                     1,067
            45   Far Northeast Dallas              40     11,426    318   7,211   3,721                       176
            47   Far North Dallas                  99     29,028    667 18,126    9,685                       550
            48   Las Colinas/Valley Ranch          73     23,435      58 11,806 10,282                        983
                 Dallas County                  2,108 329,696     9,355 163,339 132,270                    18,717
                 City of Dallas                 1,348 196,865     7,444 103,208 71,827                     10,625
                 Not in City                      760 132,831     1,911 60,131 60,443                       8,092
            81   Denton                           161     13,088    755   4,770   4,965                     1,608
            82   Lewisville                        86     22,068    175   9,849   9,892                     1,554
            85   West Plano                       105     27,966    150 12,813 12,059                       2,322
            86   East Plano                        24      4,239    119   1,619   2,068                       433
            87   Allen/McKinney                    50      9,520      31  3,901   4,744                       844
            88   North Ellis County                40      3,199      24    962   1,670                       286
                 DALLAS AREA                    2,574 409,776 10,609 197,253 167,668                       25,764




                                                                                                                              27

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                    Supply

                                 EXISTING UNITS BY BEDROOM TYPE BY SUBMARKET
                                                  1st Quarter 2008
                                                Total     Total
                 Submarket                     Comm.     Units     Eff    One    Two                       Three
            52   South Fort Worth                   49      4,673    104   1,827  2,012                       482
            53   Southwest Fort Worth               80     16,115    207   8,269  6,351                     1,288
            54   Ridglea/Ridgmar                    26      3,458      91  1,717  1,425                       225
            55   Western Hills                      31      5,606    255   2,539  2,491                       321
            56   Intown/Cultural District           47      3,464    165   1,728  1,481                        90
            58   North Fort Worth                   28      5,646    n.a.  1,736  2,104                       606
            59   Woodhaven                          60     10,237    236   5,517  4,196                       288
            60   Centreport                         13      4,656      66  3,044  1,237                        63
            70   North Arlington                   111     19,011    673 10,340   7,432                       566
            71   South Arlington                   193     27,182    920 11,707 11,315                      2,716
            72   Southwest Tarrant County           17      3,050    n.a.  1,679  1,281                        90
            73   Northwest Tarrant County           31      4,050      43  1,468  1,423                       208
            74   Northeast Tarrant County           33      6,918      28  3,192  2,830                       468
            75   Haltom City/Richland Hills         61     11,162    232   4,708  5,088                       945
            76   Hurst/Euless/Bedford              126     24,099    780 11,438 10,654                      1,227
                 FORT WORTH AREA                   906 149,327     3,800 70,909 61,320                      9,583
                 City of Fort Worth                334     53,855  1,124 26,377 21,297                      3,363
                 Not in City                       572     95,472  2,676 44,532 40,023                      6,220
                 D/FW AREA                       3,480 559,103 14,409 268,162 228,988                      35,347




                                                                                                                              28

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply

                               EXISTING UNITS BY YEAR COMPLETED BY SUBMARKET
                                                 1st Quarter 2008
                                          Total    Total
           Submarket                     Comm.     Units      2000+    90-99   80-89                   70-79   Pre-70
      21   Intown Dallas                     100    13,699      6,252   4,776     798                      46   1,096
      22   South Dallas                      114    12,796      2,221     345   3,545                   2,771   2,363
      24   Oak Cliff                         119    11,536      2,014     n.a.  1,574                   1,500   6,123
      25   Dunc/DeSoto/CH/Lancaster           51     7,796      1,129     452   4,943                   1,031       25
      26   Grand Prairie                      76    13,980      3,602   1,860   5,968                     917   1,123
      27   East Irving                        93     9,135        n.a.    n.a.    829                   4,023   4,283
      29   Oak Lawn/Park Cities              182     9,891      1,215   1,136     797                   1,973   4,233
      30   Far Northwest Dallas               16     3,414        202     n.a.    n.a.                  2,503     483
      31   Carrollton/FB/Addison             109    21,765      3,746   2,931   7,459                   6,146   1,150
      32   Near North Dallas                  35     7,269        781   1,483     354                   3,458   1,193
      34   East Dallas                       187     7,832        516     489   2,156                     841   3,787
      35   Highlands                          68    14,543        n.a.    792   6,560                   5,472   1,719
      36   Richardson                         53     8,576      1,226   3,426     864                   1,907   1,153
      37   Garland                           137    16,553      1,575     746   8,911                   2,948   1,964
      38   Mesquite                           75    13,549      2,241     467   8,146                   2,303     184
      39   Southwest Dallas                   49    10,749      2,220     696   5,696                   1,501     380
      40   Far East Dallas                    70    11,960      1,064     296   5,333                   1,945   3,322
      41   East University-Vickery            85    20,446      1,479     180   2,805                  13,557   2,425
      42   Northwest Dallas                   74    10,147      1,624     n.a.  3,350                   2,609   2,541
      43   West Irving                        93    18,042        625     n.a. 12,786                   3,258   1,101
      44   North Dallas                      110    22,129        681   4,758   4,736                  10,162   1,723
      45   Far Northeast Dallas               40    11,426        n.a.    240   7,935                   3,251      n.a.
      47   Far North Dallas                   99    29,028      2,248   9,502  17,278                     n.a.    n.a.
      48   Las Colinas/Valley Ranch           73    23,435      4,684   8,726   9,186                     533     n.a.
           Dallas County                   2,108 329,696       41,345  43,301 122,009                  74,655 42,371
           City of Dallas                  1,348 196,865       22,517  24,693  62,917                  51,589 31,388
           Not in City                       760 132,831       18,828  18,608  59,092                  23,066 10,983
      81   Denton                            161    13,088      2,718   1,128   5,191                   2,226     835
      82   Lewisville                         86    22,068      8,050   6,199   6,472                     623     126
      85   West Plano                        105    27,966      8,810  11,232   5,696                   1,132     474
      86   East Plano                         24     4,239        970   1,398   1,098                     646     127
      87   Allen/McKinney                     50     9,520      5,096   2,183   1,985                     176       80
      88   North Ellis County                 40     3,199        982      96   1,613                     203       48
           DALLAS AREA                     2,574 409,776       67,971  65,537 144,064                  79,661 44,061




                                                                                                                              29

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply

                              EXISTING UNITS BY YEAR COMPLETED BY SUBMARKET
                                                1st Quarter 2008
                                         Total    Total
           Submarket                    Comm.     Units      2000+    90-99   80-89   70-79   Pre-70
      52   South Fort Worth                  49     4,673        350     152     908     665   2,350
      53   Southwest Fort Worth              80    16,115      2,967   2,783   8,602     357   1,406
      54   Ridglea/Ridgmar                   26     3,458        497     n.a.    378   1,031   1,552
      55   Western Hills                     31     5,606        n.a.    n.a.  2,437   2,519     650
      56   Intown/Cultural District          47     3,464        967     889     289     340     979
      58   North Fort Worth                  28     5,646      2,299   1,466     581     100      n.a.
      59   Woodhaven                         60    10,237        364     131   7,632   1,834     276
      60   Centreport                        13     4,656        321     268   3,821     n.a.     n.a.
      70   North Arlington                  111    19,011        n.a.  1,158  12,188   4,672     993
      71   South Arlington                  193    27,182      3,773     968  10,785   6,316   4,816
      72   Southwest Tarrant County          17     3,050        404     n.a.  2,142     504      n.a.
      73   Northwest Tarrant County          31     4,050        208     525   1,584     595     230
      74   Northeast Tarrant County          33     6,918      2,633   1,036   1,996     853      n.a.
      75   Haltom City/Richland Hills        61    11,162      2,035     780   5,269   1,638   1,251
      76   Hurst/Euless/Bedford             126    24,099      2,256   2,567  10,969   5,068   3,239
           FORT WORTH AREA                  906 149,327       19,074  12,723  69,581  26,492 17,742
           City of Fort Worth               334    53,855      7,765   5,689  24,648   6,846   7,213
           Not in City                      572    95,472     11,309   7,034  44,933  19,646 10,529
           D/FW AREA                      3,480 559,103       87,045  78,260 213,645 106,153 61,803




                                                                                                                              30

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                              Dallas/Fort Worth
                                                                                             Apartment Report
                                                                                                                       Supply
Current Trends

Region Overview
Ten properties containing just over 2,800
rental units completed construction in North                                  Apartment Completions
Texas during the first three months of 2008.                                      Dallas/Fort Worth Area
This fairly sizable block of quarterly                          Units
                                                          16k
deliveries took new supply in the year-
                                                                                                      Quarterly        Annual
ending 1st quarter to 8,665 units.
Completions in the past year fell a bit short             12k
of the historical average: about 10,600 new
units came online on an annual basis during
the 2002-2006 time period.                                 8k

Of note, apartment removals were quite
notable in the Dallas/Fort Worth area, with                4k
this trend limiting the region’s inventory
growth. Some 4,430 units were demolished                   0k
or removed from inventory during the past
                                                                1Q      3Q   1Q   3Q    1Q   3Q      1Q   3Q      1Q   3Q   1Q
year, so the North Texas apartment base
grew, on net, by 4,235 units.                                   03      03   04   04    05   05      06   06      07   07   08




Dallas Area
Apartment builders wrapped construction on
1,744 new units in Dallas during January-                                    Apartment Completions
March 2008. These additions brought new
                                                                 Units                 Dallas Area
supply during the year-ending March to                    15k
6,852 units.                                                                                         Quarterly         Annual

Of note, actual net inventory growth was
only about half of the total completion                   10k
volume. More than 3,800 units were
removed from Dallas’s rental stock during
the past 12 months, leaving net inventory
change for the year at 3,023 units.                        5k
Demolitions have been especially
meaningful in Dallas’ urban core where
several sites have been earmarked for
redevelopment.                                             0k
                                                                1Q      3Q   1Q   3Q    1Q   3Q      1Q   3Q      1Q   3Q   1Q
                                                                03      03   04   04    05   05      06   06      07   07   08




                                                                                                                                 31

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Fort Worth Area
Following several quarters of moderate to
no new apartment additions, a hefty block of                                Apartment Completions
product was delivered in Fort Worth during
                                                                                  Fort Worth Area
the first three months of 2008. Developers                     Units
                                                          4k
wrapped construction on four rental                                                               Quarterly        Annual
communities bringing a total of 1,084 units
to the marketplace. Boosted in large part by              3k
this increased quarterly activity, additions
during the year-ending 1st quarter totaled
1,813 units.                                              2k


                                                          1k

                                                                                                                    0 0
                                                          0k
                                                               1Q      3Q   1Q   3Q   1Q   3Q    1Q    3Q     1Q   3Q     1Q
                                                               03      03   04   04   05   05    06    06     07   07     08




                                                                                                                               32

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Current Trends: Submarket Highlights
New apartment completions were fairly spread out across North Texas during the year-ending March. Dallas’
northern submarket cluster was a particularly active construction center, with more than 2,400 new units
delivered here during the past year. Recent deliveries were also sizable in Fort Worth, as well as Dallas’ more
central and northwestern areas.

Looking at individual locales, new supply in the year-ending March 2008 topped 700 units in West Plano, Las
Colinas/Valley Ranch, Intown Dallas, Oak Lawn/Park Cities and North Fort Worth.

Northern Dallas Submarkets
The northern Dallas submarket cluster received
                                                                                 New Supply Leaders
nine new additions during the past year, yielding
                                                                                  April 2007 - March 2008
an annual delivery total of 2,427 apartments.
Nearly half of this new supply was brought online                             Submarket                              Units
in West Plano, where a metro-leading 1,138 new                  West Plano                                        1,138 units
units were completed in five communities.                       Las Colinas/Valley Ranch                          1,133 units
                                                                Intown Dallas                                       762 units
In West Plano, a cluster of new apartment
                                                                Oak Lawn/Park Cities                                755 units
properties are cropping up close to the intersection
                                                                North Fort Worth                                    737 units
of S.R. 121 and Coit Road, near the 40-acre
                                                                Allen/McKinney                                      624 units
Centennial Medical Center. The area recently saw
the addition of three new communities, while four               Southwest Fort Worth                                406 units
additional apartment projects are still under                   Duncanville/DeSoto/Cedar Hill/Lancaster             393 units
construction nearby. In November 2007, United                   Carrollton/Farmers Branch/Addison                   333 units
Dominion Realty Trust wrapped construction on                   Far North Dallas                                    332 units
the 202-unit first phase of Riachi at One21. The
developer is already clearing dirt for the second
phase, with construction set to begin in 2nd quarter
2008. Riachi at One21 is located across the street
from another recently completed apartment
project: Legacy Partners’ Kia Ora Park, which
came online a few months earlier in August 2007.
The 250-unit Kia Ora Park property has a New
Zealand theme that echoes in the design elements
including landscape, building exteriors and
common areas. Nearby, Flournoy Development’s
first phase of Estancia at Ridgeview Ranch came
online near the intersection of S.R. 121 and
Independence Parkway. While this 252-unit phase
completed in July 2007, the developer has already
started construction on the 248-unit second
addition.

Two of West Plano’s new apartment communities
came online in the master-planned Legacy Village
development, which features a host of dining, retail and entertainment options, and close proximity to some of
North Texas’ major employers. Columbus Realty Partners developed both apartment communities, delivering
the 370-unit initial phase of Northside at Legacy Village in March 2008 and the 64-unit Acqua earlier in May
2007.
                                                                                                                              33

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
                                                                      The Allen/McKinney submarket received two new
                                                                      additions with 624 units in the year-ending 1st
                                                                      quarter. In July 2007, the 348-unit Heights at Allen
                                                                      Station, by Worthing Southeast Corp., came
                                                                      online. Moving north to the city of McKinney, the
                                                                      276-unit Haven at El Dorado was delivered in May
                                                                      2007 by Flournoy Development Co.

                                                                      In the Carrollton/Farmers Branch/Addison
                                                                      submarket, the 333-unit Broadstone Parkway
                                                                      (previously called Broadstone at Galleria) reported
                                                                      final-unit finish-out in February 2008. This Alliance
                                                                      Communities project features four stories of
                                                                      apartments on top of 40,000 square feet of retail
                                                                      space.

                                                                      The Far North Dallas submarket received one new
   Northside at Legacy Village offers residents a taste of upscale    addition in the past year. The 332-unit Vail
        urban living in the master-planned Legacy Village.            Quarters community was delivered in December
                                                                      2007 by Lone Wolf Development Co.

No new supply came on stream in the cluster’s remaining submarkets of East Plano, North Dallas or Richardson
during the year-ending March.

Looking ahead, apartment development is expected to remain at elevated levels in the northern Dallas area, as
more than 4,400 apartments were under way here as of April 2008.

Fort Worth Submarkets
Five of the 15 submarkets in the metro Fort Worth area reported
new supply in the year-ending March, bringing more than 1,800
new apartments to the marketplace. The budding North Fort
Worth submarket accounted for a large portion of these additions,
with three new communities containing 737 apartments coming
online here in the past year.

The area around Golden Triangle Boulevard and Alta Vista Road
saw the delivery of two new projects. Finlay Properties recently
put the finishing touches on the 312-unit City Parc at Keller in
February 2008. A few blocks away, Intergrated Real Estate
Group’s 273-unit Enclave on Golden Triangle came online in April
2007.

Moving to the submarket’s southern region, Provident Realty
Advisors’ Providence at Marine Creek completed construction in
June 2007. The 152-unit affordable housing community is
located just steps away from IH-820.

Construction activity in North Fort Worth will continue at
meaningful levels, as communities containing nearly 1,100                       The mixed-use Broadstone Parkway is in close
apartments are presently under way.                                              proximity to the premier shopping and dining
                                                                                         hub around the Galleria Mall.
                                                                                                                              34

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Turning to the Southwest Fort Worth submarket, the 406-unit Berkeley apartment complex came online in
February 2008. This Lincoln Property Co. project replaces an older apartment community that was razed to
make way for 16 three-story buildings positioned a short distance from IH-820 and Marine Creek Parkway.

Moving to the desirable Intown/Cultural District
neighborhood, construction wrapped in June on the
highly-anticipated Lincoln at Trinity Bluff project.
Another Lincoln Property Co. community, this 304-
unit property is positioned at the north end of
downtown Fort Worth and about 90 feet above the
Trinity River. The property features red brick
buildings with cast stone trim and a centrally located
parking garage. Buildings are situated on the bluff
with select units facing the Trinity River. Residents
have access to the existing 30 miles of jogging and
biking trails along the Trinity River. A $234 million
Tarrant County Community College downtown
campus is being built nearby, with completion
scheduled for 2010. The campus marks the first
phase of the massive Trinity River Vision/Uptown Fort
Worth project, which will include reworking the Trinity
                                                         Lincoln at Trinity Bluff is the first of many residential units on
River floodplains, creating new urban canals and             tap for the northern section of downtown Fort Worth.
three new bridges, and expanding the downtown area.
Reworking the river will also result in two islands and
a 33-acre downtown lake. Furthermore, the space will allow for the creation of an urban waterfront with new
residential, commercial and recreational development. In fact, the land could accommodate more than 10,000
new homes.

                                               The Haltom City/Richland Hills submarket received an exciting new
                                               property in early 2008. In February 2008, Portfolio Development
                                               wrapped construction on 189 apartments as part of a mixed-use
                                               residential, office and retail development called the Venue at Home
                                               Town. The project serves as the entrance to the 287-acre Home
                                               Town North Richland Hills, a master-planned community which will
                                               feature single-family townhomes, parks and schools. Four of the
                                               seven buildings in the development will include ground-floor retail
                                               topped by two floors of apartments and another three structures will
                                               comprise of all residential or retail space. These residential buildings
                                               will face a new library that is also being built. Realty Capital Partners
                                               is about to embark on the project’s next endeavor: a 708-unit
                                               residential and retail segment that is set to begin construction in 2nd
                                               quarter 2008.

                                           Turning to the Northeast Tarrant County submarket, one new property
                                           with 177 units completed during the past year. Southern Land Co.
                                           wrapped construction on the mixed-use Arthouse project in March
                                           2008. This retail and residential undertaking is the latest addition to
                                           the 368-acre Keller Town Center. The project includes a mix of for-
                                           sale and for-rent units, some of which are two-story structures with 20-
foot-high living spaces. A group of 16 lofts with two-story glass walls and open living areas is also included in
the design.
                                                                                                                   35

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Experiencing no new deliveries during the past year were several Fort Worth submarkets, including Centreport,
Hurst/Euless/Bedford, North Arlington, Northwest Tarrant County, Ridglea/Ridgmar, South Arlington, South Fort
Worth, Southwest Tarrant County, Western Hills and Woodhaven.

Central Dallas Submarkets
Combined neighborhoods in the central Dallas submarket cluster received 1,743 units of new supply during the
past year. Of note, apartment teardowns (mostly to create redevelopment sites) are becoming so frequent here
that, despite recent completions, the submarket cluster actually witnessed a net inventory decline of about 700
units during the year-ending March 2008.

Nearly half of central Dallas’ new apartment completions registered in the Intown Dallas area, where
construction wrapped up on four communities totaling 762 apartments. Three of these projects completed in
downtown Dallas, which is presently undergoing a bit of a renaissance.

                                              Hamilton Properties recently put the finishing touches on the highly-
                                              anticipated Mosaic, located at North Akard Street and Pacific Avenue.
                                              After successfully rehabbing both the Davis Building and the Dallas
                                              Power and Light complex into apartments, the developer purchased the
                                              21-story Fidelity Union Building and the neighboring 31-story Mayflower
                                              Building on Thanks-Giving Square and converted these towers into 435
                                              rental apartments. The rehab project finished recently in March 2008.
                                              Named Mosaic as a tribute to the ceramic tile design of the towers, the
                                              project features upscale amenities like a cigar/poker room, a 120-foot
                                              long rooftop pool with a patio and an outdoor movie theatre, and a
                                              private dog park on the eighth floor. In addition, residents have access
                                              to Scene, a trendy restaurant on the ground floor and Pulse, a fitness
                                              center with a live disc-jockey.

                                         A few blocks south, the Main Street corridor area received about 400
                                         new residential units within close proximity to the Davis Building.
                                         Under the umbrella name of Third Rail Lofts, Spectrum Properties
                                         developed three projects: 1407 Main Street (84 apartments), 1415 Main
                                         Street (66 units) and 1414 Elm Street (14 units). Construction
                                         completed just recently in March 2008 on Third Rail Lofts’ final
                                         installment: a brand new 18-story tower containing 84 units at 1407
                                         Main Street. This tower, the first new residential structure to be built in
   The ultra-hip Mosaic offers 435 units downtown Dallas in nearly four decades, features two sundecks, a ninth
  and several luxurious amenities in two floor terrace, and sunlit pool. Earlier in the year, Spectrum completed
  former downtown Dallas office towers.  the transformation of the 54-year-old former Stewarts Building in
                                         October 2007. The luxurious 14-unit property, located at 1414 Elm
Street, now contains a wine tasting room with wine cellars, bicycle storage, and a 15-seat private theater. In-
unit amenities include polished concrete flooring, granite countertops and stainless steel appliances. In early
2007, Spectrum wrapped up work on the 78-year-old Gulf States Building. The entire Third Rail Lofts
development, then, adds more than 160 apartments to downtown Dallas’ rental stock. Main Street is also home
to another former office skyscraper that was refurbished to include more than 280 condominiums. In April 2007,
Rockwood Realty Associates completed a $50 million renovation effort on the 36-story Metropolitan Tower,
located at 1200 Main Street. Prices range from about $120,000 for the smallest one-bedroom floor plan to more
than $500,000 for the largest two-bedroom unit.



                                                                                                                              36

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
The much-talked about transformation of the 52-
year-old Republic National Bank Building,
located at the corner of Bryan and Ervay Streets,
completed in June 2007. The 36-story former
banking hall pavilion with its distinctive aluminum
star-paneled siding and rocket-like rooftop
sculpture was refurbished to include 229 high-
end apartments. In contrast to the exposed brick
walls and bare pipes commonly found in most
converted office buildings, these units feature
kitchen islands with granite countertops,
stainless steel appliances and hickory floors.
Apartments weigh in on the large side: each floor
of the building contains roughly nine units that
average 1,175 square feet. Four penthouses
averaging 2,500 square feet were also included
in the mix. The tower’s alluring location places       Units at the new Gables Republic Tower include high-end finishes
residents within walking distance to the Arts           like granite countertops, hardwood floors and pendant lighting.
District, and also includes tunnel access to the
Central Business District and several retail
options nearby. While Gables Residential already owns an impressive portfolio of properties in Uptown Dallas,
this is the developer’s first endeavor into the downtown Dallas market. Construction efforts on this project,
named Gables Republic Tower, cost close to $50 million.

                                                     Moving to the Oak Lawn/Park Cities submarket, four properties
                                                     totaling 755 units were completed during the past year. Alliance
                                                     Communities has been particularly active in this submarket,
                                                     finishing two apartment communities in the neighborhood. The
                                                     most recently delivered Alliance project was 2929 Wycliff, which
                                                     completed in June 2007. Apartments at 2929 Wycliff boast
                                                     pendant lighting and wood plank flooring. The 284-unit project is
                                                     located near the intersection of Wycliff and Dickason Avenues.
                                                     Earlier in the year, construction wrapped up on the second phase
                                                     of Broadstone Seville. The 136-unit addition was delivered in April
                                                     2007, while the even larger first phase completed in 2006. Both
                                                     2929 Wycliff and Broadstone Seville are located just blocks away
                                                     from each other, placing residents within close proximity to Intown
                                                     Dallas’ vibrant Uptown district, with several entertainment, dining
                                                     and retail options nearby. A short distance away, Gables Highland
                                                     Park Brownstones came online in May 2007. This 57-unit project,
                                                     by Gables Residential, replaces the old Westchester apartment
                                                     homes, located on Bowser Avenue and Lomo Alto Drive.

                                                     These completed projects could face some leasing competition in
                                                     the future. The busy Oak Lawn intersection at Cedar Springs
                                                     Road and the Dallas North Tollway has been earmarked for
     Broadstone Seville is one of two Alliance       several new retail and apartment projects in the near term. In
    Communities completed in Oak Lawn/Park           fact, three developments are currently at the starting gate: First
           Cities during the past year.              Worthing, in partnership with Inland Real Estate Group, broke
                                                     ground recently on a 372-unit complex on Lemmon Avenue; the

                                                                                                                              37

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Crossland Group is clearing dirt for a 316-unit mid-rise complex at Cedar Springs Road and Douglas Avenue;
and Winston Capital Corp. is about to start construction on a 125-unit community positioned at the corner of
Cedar Springs Road and Knight Street. Furthermore, Atlanta-based Lane Co. also has plans on the drawing
board for a 240-unit community in the vicinity.

                                                                         Returning to the list of apartment completions in
                                                                         the Oak Lawn/Park Cities submarket, First
                                                                         Worthing finished construction in August 2007
                                                                         on the 278-unit Cityville at Southwestern
                                                                         Medical District. A few steps away, the Alexan
                                                                         Southwestern community is about to take
                                                                         shape. Trammell Crow Residential recently
                                                                         broke ground on the 396-unit complex and
                                                                         expects to start construction in 2nd quarter
                                                                         2008. Future improvements in the area include
                                                                         a DART station at Motor and Bengal Streets
                                                                         (set to open in 2009), a biomedical research
                                                                         park at UT Southwestern, and more apartments
                                                                         and townhomes in additional phases of First
                                                                         Worthing’s Cityville development.

                                                                The Far Northwest Dallas submarket received a
                                                                single apartment complex in the past 12
       Construction wrapped up in August 2007 on the 278-unit   months. American Realty Trust delivered the
              Cityville at Southwestern Medical District.       226-unit second phase of Laguna Vista in
                                                                December 2007. The upscale apartments form
part of the 1,000-acre Mercer Crossing mixed-use development, which also includes several commercial
properties and an eight-story office tower. Located near IH-635 and IH-35, Mercer Crossing is just minutes from
the Exxon Mobile headquarters and Dallas Love Field Airport.

Central Dallas area submarkets that reported no new apartment deliveries during the year-ending March
include East Dallas, East University-Vickery, Far Northeast Dallas, Highlands, Near North Dallas and
Northwest Dallas. Of note, multifamily construction is currently red-hot in the central Dallas region, with
notable pockets of activity popping up in the Uptown and downtown neighborhoods. Nearly 3,000 rental
apartments are currently being built in the Intown Dallas submarket, and another 800+ units are under way in
the East University-Vickery locale.

Northwestern Dallas Submarkets
With the fast-growing Las Colinas/Valley Ranch submarket leading the way, annual completions in the
northwestern Dallas submarket cluster totaled 1,411 units in the past 12 months.

Looking at the burgeoning Las Colinas/Valley Ranch submarket, four apartment properties contributed 1,133
units to the area’s existing rental inventory during the past year. Two of these communities came online near
Lake Carolyn, a 125-acre man-made lake situated in the southern portion of Las Colinas. The most recent
completion occurred in November 2007 when Westwood Cos. wrapped construction on the 238-unit Bella
Casita. The complex offers residents several upper viewing decks overlooking Lake Carolyn. Just steps away,
Legacy Partners’ Delano property came online a few months earlier in June. The five-story, 258-unit luxury
community contains a mix of art-deco themed apartments inspired by a South Beach design. In-unit amenities
include seven-foot arched entry doors and two-toned interior paint schemes. Providing stiff leasing competition
for apartment owners, the Bella Casita and Delano properties are flanked by a host of rental communities that

                                                                                                                              38

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
                                                                         finished construction in the recent past. In fact,
                                                                         during calendar 2006, more than 1,000
                                                                         apartments came online around Lake Carolyn.
                                                                         And it doesn’t end there as more than 600
                                                                         apartments are currently being built around the
                                                                         lake and even more rental units are under
                                                                         development only a short distance away.

                                                                         Moving about two miles north, the massive La
                                                                         Villita multi-use complex continues to burgeon.
                                                                         In the past year, AMLI Residential and Lincoln
                                                                         Property Co. both completed their second
                                                                         iterations to the La Villita development. The
                                                                         306-unit second phase of AMLI at La Villita
                                                                         came online in March 2008, while the 331-unit
                                                                         Lincoln Lakeside was delivered in August 2007.

                                                               Solidifying the area’s appeal, Las Colinas
serves as the regional and corporate headquarters for several major corporations including Allstate Insurance,
Exxon Mobil, Flour Corp., Kimberly-Clark Corp., Nokia, Verizon, Washington Mutual and Zale Corp. In fact,
the area continues to attract several new businesses as evidenced by the latest announcement from Research
In Motion Ltd. in late 2007. The maker of the popular BlackBerry device revealed plans to base its U.S.
headquarters in Las Colinas, prompting the addition of 1,000 new hires.

The rapidly expanding Denton submarket received two new
properties in the year-ending March, bringing nearly 300 units to
the area. Both of these communities completed within a mile of
the heavily traveled IH-35E. The most recent delivery was in
September 2007 when Provident Realty Advisors wrapped up
work on the 252-unit second phase of Providence Place. Moving
closer toward the city of Denton, a 26-unit property called
Centennial Plaza UNT completed in 3rd quarter. With the
University of North Texas located just minutes away, most of
these units will likely end up serving the student population.

The remaining northwestern Dallas submarkets of Lewisville,
East Irving and West Irving did not receive any new supply
during the year-ending March. There is some product on the
way for the usually active Lewisville area however, as ongoing
construction totals more than 750 units. On the other hand,
apartment development remains stagnant in the fairly built-out
East Irving and West Irving submarkets.

Southern Dallas Submarkets
The southern Dallas submarket cluster added a combined 953 units in the year-ending 1st quarter, with this total
down notably from the volume of deliveries seen in the region during the recent past.




                                                                                                                              39

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Two new projects with just under 400 units were delivered to Duncanville/DeSoto/Cedar Hill/Lancaster’s rental
inventory in the past 12 months. Zidell Properties wrapped up work on the third phase of Legacy of Cedar Hill in
December 2007. The 177-unit addition is located on the east side of U.S. 67 near the East Pleasant Run Road
exit, and is just minutes away from a major new retail development (Uptown Village at Cedar Hill) located on the
west side of U.S. 67. Traveling a mile north, Carbon Cos.’ 216-unit Bella Ruscello project was delivered in
March 2008.

Grand Prairie’s sole apartment delivery during the past year was the 288-unit Arioso. SNK Realty wrapped
construction on this community in November 2007.

                                                       Two properties with roughly 200 apartments came on stream in
                                                       Oak Cliff during the past year. The Dallas Design District,
                                                       which, according to M/PF YieldStar’s submarket definitions, falls
                                                       in the boundaries of the Oak Cliff submarket, received a new
                                                       apartment community. Jim Lake Cos. finished the highly-
                                                       anticipated Trinity Loft project in June 2007. This 96-unit
                                                       development, which is situated on Dragon Street, contains a mix
                                                       of conventional apartments and live-work spaces with attached
                                                       garages. In the live-work spaces, a stairwell connects the
                                                       showroom floor with the residential component above. The
                                                       developer re-used the original Lee Optical building, which was
                                                       built in 1967. A fourth floor with a viewing deck was added,
                                                       providing residents with views of the Dallas skyline. With close
                                                       proximity to the budding Victory Park development around the
                                                       American Airlines Center and the popular West End district, the
                                                       Trinity Loft community offers residents several entertainment,
                                                       dining and retail options nearby.

                                                 With such close proximity to downtown Dallas and Victory Park,
                                                 it’s no surprise to see that other developers have taken a keen
                                                 interest in the Design District. Wood Partners and Crow
                                                 Holdings plan to build a residential and retail project at the
                                                 intersection of Oak Lawn Avenue and Hi-Line Drive, situated just
                                                 a few blocks north of Trinity Lofts. Early plans for the residential
                                                 component include lofts with ground-floor retail, showroom and
gallery space. Dubbed Block 1500, the 214-unit community will include metal and masonry exteriors with curved
roofs. Wood Partners expects to start construction in May 2008. The developer is also working on another site
nearby on Inspiration Drive. Building on this 304-unit community is also expected to begin in 2nd quarter 2008.
Trammell Crow Residential recently jumpstarted their project, located near Hi Line Drive and Turtle Creek
Boulevard. Construction on the 355-unit community is anticipated to start in 2nd quarter 2008.

In the Oak Cliff’s southern region, the 100-unit Sphinx at Luxar Villas, by Sphinx Development, was delivered in
September 2007.

The South Dallas neighborhood received one affordable housing community during the past year. Sphinx
Development’s 80-unit Reese Court Villas project came online in fall 2007.

The North Ellis County and Southwest Dallas submarkets did not add any new apartment supply between early
2007 and early 2008.


                                                                                                                              40

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                  Dallas/Fort Worth
                                                                                                 Apartment Report
                                                                                                                         Supply
  Eastern Dallas Submarkets
  One property completed in East Dallas during the year-ending March. Construction wrapped up in November
  2007 on a 318-unit property by Columbus Realty Partners. The Parkside at Firewheel Town Center, situated on
  S.R. 78 and President George Bush Turnpike, forms part of the Firewheel Town Center open-air mall that began
  operating in late 2005. The luxury apartments are stacked in a four-story building with ground-floor retail.

  The Far East Dallas and Mesquite submarkets did not receive any new apartments during the past year.

                                     ANNUAL APARTMENT COMPLETIONS BY SUBMARKET
                                                          April 2007 - March 2008
Sub           Apartment Community                              Address                           Developer               Finished Units
21 Gables Republic Tow er                       350 N Ervay St, Dallas               Gables Residential                   06/07     229
21 Third Rail Lofts/1414 Elm                    1414 Elm St, Dallas                  Spectrum Properties Ltd.             10/07        14
21 Mosaic                                       300 N Akard St, Dallas               Hamilton Properties Corp.            03/08     435
21 Third Rail Lofts/1407 Main                   1407 Main St, Dallas                 Spectrum Properties Ltd.             03/08        84
22 Reese Court Villas                           1201 S Ew ing Ave, Dallas            Sphinx Development Corp.             09/07        80
24 Trinity Loft                                 1430 Dragon St, Dallas               Jim Lake Cos. Inc.                   06/07        92
24 Sphinx at Luxar Villas                       3110 S Cockrell Hill Rd, Dallas      Sphinx Development Corp.             09/07     100
25 Legacy of Cedar Hill III                     1000 E Pleasant Run Rd, Cedar Hill   Zidell Properties                    12/07     177
25 Bella Ruscello                               250 E US-67 N, Duncanville           Carbon Cos.                          03/08     216
26 Arioso                                       3030 Claremont Dr, Grand Prairie     SNK Realty Group                     11/07     288
29 Broadstone Seville II                        2626 Reagan St, Dallas               Alliance Communities                 04/07     136
29 Gables Highland Park Brow nstones            4733 Bow ser Ave, Highland Park      Gables Residential                   05/07        57
29 2929 Wycliff                                 2929 Wycliff Ave, Dallas             Alliance Communities                 06/07     284
29 Cityville at Southw estern Medical District I 2222 Motor St, Dallas               First Worthing Co.                   08/07     278
30 Laguna Vista II                              11601 Lago Vista, Farmers Branch     American Realty Trust                12/07     226
31 Broadstone Parkw ay                          5005 Galleria Dr, Dallas             Alliance Communities                 02/08     333
37 Parkside at Firew heel Tow n Center          305 River Fern Ave, Garland          Columbus Realty Partners             11/07     318
47 Vail Quarters                                3900 Briargrove Ln, Dallas           Lone Wolf Development Co. Ltd.       12/07     332
48 Delano                                       1001 Lake Carolyn Pkw y, Irving      Legacy Partners Inc.                 06/07     258
48 Lincoln Lakeside                             6727 Deseo, Irving                   Lincoln Property Co.                 08/07     331
48 Bella Casita                                 851 Lake Carolyn Parkw ay, Irving    Westw ood Cos.                       11/07     238
48 AMLI at La Villita                           6419 Tranquilo, Irving               AMLI Residential Properties          03/08     306
81 Centennial Plaza UNT                         1126 Avenue A, Denton                Private Developer                    07/07        26
81 Providence Place II                          3500 Quail Creek Dr, Denton          Provident Realty Advisors Inc.       09/07     252
85 Acqua                                        5760 Daniel Rd, Plano                Columbus Realty Partners             05/07        64
85 Estancia at Ridgeview Ranch                  10200 Independence Pkw y, Plano      Flournoy Development Co.             07/07     252
85 Kia Ora Park                                 9300 Coit Rd, Plano                  Legacy Partners Inc.                 08/07     250
85 Riachi at One21 Ph I                         9600 Coit Rd, Plano                  United Dominion Realty Trust Inc.    11/07     202
85 Northside at Legacy Village I                7560 Bishop Rd, Plano                Columbus Realty Partners             03/08     370
87 Haven at El Dorado                           4690 Eldorado Pkw y, McKinney        Flournoy Development Co.             05/07     276
87 Heights at Allen Station                     505 E Exchange Pkw y, Allen          Worthing Southeast Corp.             07/07     348
      DALLAS AREA                                                                                                                 6,852


  (Continued on next page)

                                                                                                                                  41

  ©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
  for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
  without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                               Dallas/Fort Worth
                                                                                              Apartment Report
                                                                                                                     Supply

                                    ANNUAL APARTMENT COMPLETIONS BY SUBMARKET
                                                       April 2007 - March 2008
Sub           Apartment Community                         Address                              Developer              Finished Units
53 Berkeley                                2001 Park Hill Dr, Fort Worth           Lincoln Property Co.                02/08      406
56 Lincoln at Trinity Bluff                701 E Bluff St, Fort Worth              Lincoln Property Co.                06/07      304
58 Enclave on Golden Triangle              5001 Golden Triangle Blvd, Keller       Intergrated Real Estate Group       04/07      273
58 Providence at Marine Creek              4307 Old Decatur Rd, Fort Worth         Provident Realty Advisors Inc.      06/07      152
58 CityParc at Keller                      10501 N Beach St, Keller                Finlay Properties                   02/08      312
74 Arthouse                                251 Tow n Center Lane, Keller           Southern Land Co.                   03/08      177
75 Venue at Home Tow n                     9012 Courtenay St, North Richland Hills Portfolio Development LLC           02/08      189
      FORT WORTH AREA                                                                                                          1,813
      D/FW AREA                                                                                                                8,665




                                 The new apartment tower at 1407 Main Street in downtown Dallas is
                                   the final segment of the Third Rail Lofts complex. Among the
                                       amenities offered at Third Rail Lofts is a bowling alley.
                                                                                                                                42

  ©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
  for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
  without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply

              Central and Eastern Dallas Apartment Completions




               April 2007 – March 2008
               April 2008 – March 2009
                April 2009 or later

                                                                                                                            43

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply

                   Southern Dallas Apartment Completions




                April 2007 – March 2008
                April 2008 – March 2009
                April 2009 or later

                                                                                                                            44

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply

                   Northern Dallas Apartment Completions




                April 2007 – March 2008
                April 2008 – March 2009
                April 2009 or later

                                                                                                                            45

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply

              Northwestern Dallas Apartment Completions
                                                               `




              April 2007 – March 2008
              April 2008 – March 2009
               April 2009 or later

                                                                                                                            46

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply

                         Fort Worth Apartment Completions




               April 2007 – March 2008
               April 2008 – March 2009
               April 2009 or later

                                                                                                                            47

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                 Dallas/Fort Worth
                                                                                                Apartment Report
                                                                                                                        Supply
Forecast
Multifamily Permits
Multifamily permit authorizations in the
Dallas metro continue to trend upward.                                             Multifamily Permits
During January-February 2008 specifically,                                               Dallas Area
the Dallas area permitted 2,383 units, with               12k
this tally up 46 percent from the volume of                            Quarterly         Annual
units authorized during the same time frame
of the previous year.                                      9k

These quarterly approvals brought multifamily
                                                           6k
permit authorizations in the year-ending
February 2008 to 10,804 units, up 19
percent from the year-earlier figure. Thus,                3k
Dallas moved up to the fifth position
nationally in terms of annual authorizations.
Recent announcements of planned                            0k
developments in Dallas point to a wave of                       1Q   3Q 1Q         3Q 1Q      3Q    1Q 3Q       1Q 3Q 1Q
future supply that has reached the permitting                   03   03 04         04 05      05    06 06       07 07 08*
stage.                                                                             *tw o-month total, year-ending February 2008

Fort Worth’s multifamily permit
authorizations eased a bit over the past
year. Annual approvals as of February –
2,870 units – was 23 percent behind the                                           Multifamily Permits
previous year’s tally. Looking at recent                                             Fort Worth Area
                                                          5k
authorizations, 642 units were approved in                            Quarterly          Annual
the January-February 2008 time period, with
                                                          4k
this tally a bit higher than the 570 units
permitted in the January-February 2007 time
frame.                                                    3k

                                                          2k

                                                          1k

                                                          0k
                                                                1Q   3Q   1Q      3Q    1Q    3Q    1Q    3Q    1Q    3Q    1Q
                                                                03   03   04      04    05    05    06    06    07    07    08*
                                                                                   *tw o-month total, year-ending February 2008




                                                                                                                                  48

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Region Overview
Apartment construction in the Dallas/Fort
Worth area continues to trend upward, as                                   Apartment Completions
projects totaling just over 14,500 units were
                                                                              Dallas/Fort Worth Area
under way as of April 2008. This ranks as                       Units
the nation’s second biggest block of                      16k
apartment units in process. Of note, two                                                           Quarterly       Annual
other Texas metros made the national list of
development hotspots. Houston, with                       12k
ongoing construction totaling more than
17,900 units, is building more apartment                   8k
product than any other metro in the country,
while Austin comes in a little lower than
D/FW with just over 12,100 units on the                    4k
way.

Looking at North Texas’ construction                       0k
timetable, 73 percent of the units under                        1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
development in the region are targeted to                       03 03 04 04 05 05 06 06 07 07 08 08 09
come online in the year-ending March 2009.

Scheduled completions total a hefty 2,688
units in 2nd quarter 2008 and another 2,672
apartments in 3rd quarter 2008. The                                 Scheduled Apartment Completions
delivery schedule then points to an even                                       by Quarter
larger volume of product – a whopping 3,192                                   Dallas/Fort Worth Area
units – that are expected to come online in                       Units
                                                           4k
late 2008. The first three months of
calendar 2009 calls for another 2,077
apartments to be delivered.                                3k

Some 3,900 units are already under
construction in the D/FW area and are                      2k
expected to complete sometime after March
2009.
                                                           1k


                                                           0k
                                                                  2Q 08       3Q 08       4Q 08        1Q 09       Later




                                                                                                                            49

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                              Dallas/Fort Worth
                                                                                             Apartment Report
                                                                                                                   Supply

Dallas Area
The Dallas area’s supply of apartments now
under construction totals a little more than
10,800 units. Among the stock currently
                                                                            Apartment Completions
under way, 75 percent, or roughly 8,100                                               Dallas Area
                                                                 Units
units, should be delivered in the coming                  15k
year. The remaining 2,691 units of the
                                                                                                    Quarterly     Annual
metro’s future supply are slated for delivery
after March 2009.
                                                          10k
In all likelihood however, net inventory
growth should be less than the targeted
completion figure, reflecting that teardowns               5k
to produce redevelopment sites seem likely
to continue at moderate levels in the near
term.
                                                           0k
                                                                1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
                                                                03 03 04 04 05 05 06 06 07 07 08 08 09




Fort Worth Area
A handful of new apartment projects
recently got under way in the Fort Worth
metro, pointing to increased rental
                                                                             Apartment Completions
availability in the near term. About 3,720                                           Fort Worth Area
                                                                Units
                                                          4k
units were under construction in the metro                               Quarterly        Annual
as of April 2008. Most of these apartments
(2,511 units) are scheduled for completion                3k
during the next 12 months.

                                                          2k


                                                          1k

                                                                                                            0 0            0
                                                          0k
                                                                1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
                                                                03 03 04 04 05 05 06 06 07 07 08 08 09




                                                                                                                               50

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Development Sponsors
Most of the apartment projects under way as
of April 2008 are being developed privately,
but REITs (real estate investment trusts)
account for roughly 6 percent of ongoing
construction. The only active REIT
developers in the Dallas/Fort Worth
marketplace are Mid-America Apartment
Communities and Post Properties.

Alliance Communities ranks as North Texas’
most active developer with a whopping
1,084 units in process on four apartment
complexes spread out across the D/FW
region.

Trammell Crow Residential – one of Texas’
most active developers – takes the second
position among the top 10 builders in North
Texas. The company currently has 829
units under way in two large communities.

                                                                 Nabbing the #3 spot, Dallas, TX-based Lincoln
         Apartment Development Leaders                           Property Co. is working on roughly 800 units in two
          Ongoing Construction as of April 2008                  projects. With construction recently commencing on
                 Developer                         Units         two properties, Columbus Realty Partners joins the list
                                                                 at #4 with 721 units under way. Wood Partners follows
   Alliance Communities                         1,084 units      close behind, developing 716 units in two apartment
   TrammelI Crow Residential                      829 units      properties. The firm’s Alta Rosewood high-rise is
   Lincoln Property Co.                           798 units      under way in Uptown Dallas, while a mid-rise
   Columbus Realty Partners                       721 units
                                                                 community is being built in the burgeoning Las Colinas
                                                                 area. With Wood Partners about to embark on several
   Wood Partners                                  716 units      more apartment projects in the North Texas area, look
   Fairfield Residential                          665 units      for the company to remain near the top of the
   AG Spanos Corp.                                522 units      development leader board for some time to come.
   AMLI Residential Properties                    508 units
                                                                 Next up, Fairfield Residential is working on 665 units in
   Flournoy Development Co.                       504 units      two projects. The developer has a property under way
   One Prime LP                                   504 units      in the popular Addison Circle development and another
                                                                 smaller project under construction in Grapevine.

AG Spanos ranks seventh on the developer leader list with 522 apartments on the way in two projects. Several
firms are building projects with roughly 500 units apiece. This list includes AMLI Residential (508 units),
Flournoy Development Co. (504 units) and One Prime LP (504 units).




                                                                                                                            51

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Forecast: Submarket Highlights
While building continues in every North Texas submarket cluster, Dallas’ northern region takes the lead spot as
the most active construction hub. More than 4,400 apartment units are under way here. Development activity
also continues at fairly aggressive levels in central Dallas and Fort Worth, with construction proceeding on more
than 3,700 units in each submarket cluster.

Leading the way on a neighborhood level, Intown Dallas continues to be a development hotspot – nearly 3,000
apartments are targeted for delivery here in the near term. The West Plano, North Fort Worth and Carrollton/
Farmers Branch/Addison locales are also scheduled to add large blocks of new product in the coming months.

Northern Dallas Submarkets
With occupancy rates in most northern Dallas
submarkets hovering near the 95 percent mark for                             Forecast New Supply Leaders
several quarters, developers have once again revved                        Ongoing Construction as of April 2008
up construction levels. Developers recently kick-                                 Submarket                          Units
started construction on five properties with more than
                                                                  Intown Dallas                                   2,980 units
1,500 units in 2008’s January-March time frame.
This recent boost took total ongoing development in               West Plano                                      1,682 units
northern Dallas to a whopping 4,409 units in 15                   North Fort Worth                                1,380 units
properties. Building activity has not been at such                Carrollton/Farmers Branch/Addison               1,054 units
high levels in northern Dallas since the start of 2003.           Allen/McKinney                                    959 units
                                                                  South Arlington                                   924 units
The West Plano submarket accounts for a large                     East University-Vickery                           821 units
portion of the rental units currently in process.                 Lewisville                                        752 units
After the submarket received more than 1,100 new                  Richardson                                        714 units
apartments in the past year, another 1,682 units
                                                                  Las Colinas/Valley Ranch                          623 units
were still under construction here as of April 2008.

A few of these developments are clustered along a three-mile stretch of S.R. 121, between the Dallas North
Tollway and North Central Expressway. Three communities completed construction here during the past year,
while three other projects are still under way. Flournoy Development’s second phase of Estancia at Ridgeview
Ranch is under construction close to the intersection of S.R. 121 and Independence Parkway. This 248-unit
addition should be ready for full occupancy by April 2009. Lincoln Property Co. is building the second phase of
Lincoln at Towne Square, positioned near S.R. 121 and Preston Road. The 302-unit community is targeted for
completion in fall 2008. Just steps away, the 398-unit Tribeca apartment complex is rising from the ground.
Tribeca will include several community amenities like meditative seating areas and touring bicycles for access to
the neighborhood. The project should be complete by mid-2008.

Moving closer to the Dallas North Tollway, two more apartment developments are rising from the ground.
Columbus Realty Partners recently kicked off construction on the 464-unit second iteration of Northside at
Legacy Village. Since development just began, a 2nd quarter 2009 completion date has been set. Further
north, La Valencia at Starwood is in process close to the Dallas North Tollway and Lebanon Road. This 270-
unit development, by Tonti Properties, is slated to complete in 2nd quarter 2009.

Of note, Post Properties is about to embark on a new project nearby. The developer purchased 10 acres in
Frisco, with intentions to build a high-density residential and retail complex near the bustling Stonebriar mall.
Post Properties is clearing dirt on the site, with construction on the 275-unit Post Frisco Bridges project slated to
begin in 2nd quarter 2008. This apartment and retail segment will form part of a larger development dubbed
Sierra Frisco. The 36-acre, $250 million Sierra Frisco project will also include a hotel and office space.

                                                                                                                            52

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Apartment development has also been ramping up in the Carrollton/Farmers Branch/Addison area. After
receiving just over 300 new units in the year-ending March 2008, the locale is slated to receive three large
properties with nearly 1,100 units in the near term.

A notable pocket of residential development is
occurring in Addison Circle, an upscale mixed-
use community located not far from the
Arapaho Road exit on the Dallas North Tollway.
Fairfield Residential is constructing a four-story
414-unit property dubbed Fairfield at Addison
Circle. The $30 million project is set to
complete in late 2008. Also, Phoenix-based
SNK Realty recently kicked off development on
the initial 272-unit phase of Allegro Addison,
which will contain luxury apartments on top of
ground-floor retail space. An April 2009
completion date is targeted for the $26 million
first phase, while another addition is already in
the planning stages. Right next door to Allegro
Addison, Opus West Corp. is working on an
office segment: the six-story Two Addison
Circle. Yet another developer, Icon Partners,
recently received authorization to build a 362-
unit project nearby on Addison Road. Addison         Fairfield at Addison Circle is Fairfield Residential’s first project
Circle is not only conveniently located close to                    in the popular Addison Circle area.
the Dallas North Tollway, but it’s just steps
away from the dining and entertainment mecca that sits along Belt Line Road.

                                                                         A few miles south, the Prairie Crossing complex
                                                                         is rising from the ground. Metropolitan
                                                                         Development is working on this 368-unit
                                                                         community with completion is scheduled for
                                                                         early 2009. Nearby, nine apartment complexes
                                                                         located along Brookhaven Club Drive and IH-
                                                                         635 (Lyndon B. Johnson Freeway) have
                                                                         recently been purchased by United Dominion
                                                                         Realty Trust. Over the next several years, the
                                                                         developer plans to replace the more than 2,400
                                                                         units, most of which were built during the
                                                                         1970s, with a variety of housing options
                                                                         including townhomes, apartments, for-sale
                                                                         units, and maybe even retail space. Demolition
                                                                         work is due to start in the coming months.

                                                               Three communities totaling nearly 960 units are
                                                               currently under development in the
     The 379-unit Alexan McKinney will be part of the 530-acre
          McKinney Ranch master-planned community.
                                                               Allen/McKinney submarket. Two of these
                                                               projects are being built fairly close to S.R. 121.
Trammell Crow Residential is working on the 379-unit Alexan McKinney, located on McKinney Ranch Parkway
and Ridge Road, just north of S.R. 121. Alexan McKinney will form part of the 530-acre McKinney Ranch

                                                                                                                            53

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
master-planned development, complete with residential, retail, and office space, as well as several recreation
and entertainment options. Alexan McKinney is scheduled to wrap up in April 2009. Nearby, the 320-unit Times
Square at Craig Ranch is being built in the 2,500-acre master-planned Craig Ranch development. This five-
story apartment complex, located at the main corner in Craig Ranch’s Town Center, will include 80,000 square
feet of ground-floor retail space and will be positioned just across from the new $45 million Craig Ranch Golf
Club and Cooper Aerobics Center. Construction on this Evergreen Partners property is targeted to wrap up in
2nd quarter 2008.

Traveling farther south, another major endeavor is currently under way in the 52-acre Watters Creek mixed-use
development. The 260-unit Lofts at Watters Creek apartment segment, by Southern Land Co., is slated to
complete construction in August 2008.

As of April 2008, two apartment communities totaling 714 units were under construction in Richardson. Legacy
Partners is building a $34 million, 279-unit apartment complex located adjacent to Richardson’s DART Galatyn
Park light rail station near U.S. 75. The four-story community, dubbed Venue at Galatyn Park Station, will form
part of a $90 million urban-style development, which will eventually contain more than 400 apartments, 90,000
square feet of restaurants and retail space and 225,000 square feet for offices. A July 2008 completion date
has been set for the apartment segment. Atlanta-based Post Properties is building Post Eastside, a residential,
retail and office project, positioned less than a mile away from Venue at Galatyn Park. Plans call for 435 units in
four buildings with retail space below. In keeping with a transit-oriented theme, Eastside will boast an urban,
pedestrian-friendly environment with two DART light rail stations (Galatyn Park and Arapaho Center stations)
within a 10-minute walk. Completion is slated for April 2009.

No apartments are currently under construction in the East Plano, Far North Dallas and North Dallas
submarkets.

Central Dallas Submarkets
As of April 2008, roughly 4,000 rental units were under construction in the central Dallas submarket cluster, with
this total boosted by 2,980 apartments under way in the Intown Dallas neighborhood, specifically. In fact, this
hefty chunk of new supply in the Intown Dallas area will grow the submarket’s existing rental base by a sizable
22 percent.

Intown Dallas can be divided up into three active construction pockets: downtown, Victory Park, and
Uptown. Nearly half of the ongoing development is clustered in Dallas’ thriving Uptown market, where five
properties with more than 1,400 units are in process.

Starting in the northern area of Uptown, the Monterey community recently got under way. Criterion Property Co.
began building 371 apartments in a six-story structure located on just over three acres near McKinney Avenue
and Blackburn Street. This is the developer’s prototype for its Resort Living series, offering residents resort-
style amenities like an outdoor kitchen, waterfall pool, multi-leveled wood deck, covered outdoor living space
with plasma TVs and wading lounge. Completion is scheduled for late 2009.

A little farther south, the second phase of the upscale Gables Villa Rosa community is nearing completion (the
first phase finished in May 2006). The 245-unit addition, located near Cole Avenue and Vine Street, should be
complete by May 2008. Apartment amenities at this Gables Residential complex include designer pendant
lighting and Brazilian wood flooring. Just a few blocks away, another rental project is rising from the ground.
AMLI Residential is working on the AMLI at Quadrangle, located on a former parking lot at the corner of Howell
and Worthington Streets. The four-story community will be a fairly low-density structure containing 220
apartment units. Completion is scheduled for early 2009.


                                                                                                                            54

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Wood Partners is working on one of Uptown’s
largest residential projects. Alta Rosewood will
rise 22 stories and will house 375 apartment
units on a site located on McKinnon and Hunt
Streets. The glass-clad tower is expected to
cost more than $72 million and will also include
a 475-space parking garage. Completion is
targeted for late 2008. On the lot located at the
corner of Cedar Springs Road and Pearl Street,
right next door to Alta Rosewood, developers
CarrAmerica and Rosewood Property are
working on the 19-story energy-efficient
condo/office tower dubbed Rosewood Court.
The building will include covered parking, a
fitness center, and an on-site conference
center.

Alta Rosewood is positioned just steps away
from the 31-story Azure condo community,              An active strip along McKinnon Street, where construction is under
which completed in late 2007. The ultra-                way on the 375-unit Alta Rosewood and the 19-story Rosewood
luxurious high-rise tower was met with notable         Court office tower. The Azure condo high-rise, in the background,
sales success: according to a report in the                                 completed in late 2007.
Dallas Morning News, 90 percent of the units
were sold with prices ranging from $400,000 to $2 million. Furthermore, Azure is being touted as the first
project in Harwood International’s ambitious project to transform 17 city blocks into the Hardwood District. The
next installment in this $500 million endeavor is Saint Ann Court, which commenced construction in late 2007.
                                          The 27-story office tower will also contain four penthouse levels.
                                          Construction on the $100 million Saint Ann Court is expected to wrap
                                          up in 2009.

                                              A few blocks away, Hanover Cos.’ new luxury high-rise at 1900
                                              McKinney Avenue (near St. Paul Street) is rising from the ground.
                                              When complete, the 26-story project will contain 230 rental units on top
                                              of five to six floors of parking. In contrast to a host of mixed-use
                                              projects going up in the area, Hanover’s 1900 McKinney Avenue
                                              property will not include ground-floor retail. A late 2008 completion date
                                              has been set. Nearby, construction is under way on several other
                                              projects. Recently making news, Gables Residential and Granite
                                              Properties broke ground in early 2008 on a $200 million complex that
                                              will include 296 apartments and 361,000 square feet of office space in
                                              an adjoining tower. The 24-story residential tower and the 20-story
                                              office building will be located at Akard Street and McKinney Avenue.
                                              Construction is expected to get under way in the coming months. Also
                                              under development here are two 20-story office towers by Lincoln
                                              Property Co. The properties are located at 2000 McKinney Avenue, a
                                              block north of Hanover’s rental high-rise.

                                              Traveling a few blocks southwest on Woodall Rodgers Freeway, the
  Hanover Co.’s 26-story apartment high-      highly-publicized Victory Park development continues to transform the
     rise at 1900 McKinney Avenue.            Dallas skyline. Another Hanover Co. high-rise is soaring into the sky.

                                                                                                                            55

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
The 28-story Cirque in Victory Park will include 252 apartments and is scheduled to complete in 2nd quarter
2008.

Moving south into the urban core, Dallas’ once sleepy
downtown has become reinvigorated by a burst of new
residential development. A particularly active spot is the area
around Pacific Avenue, Commerce, North Field and North
Ervay Streets. While four apartment projects completed here in
the past year, two additional properties are still under
construction. Forest City Enterprises is transforming the
Mercantile Bank complex, located at Main and South Ervay
Streets, into 366 rental units contained in two towers: the 36-
story Mercantile Place on Main (213 units) and the 15-story
Element (153 units). Mercantile Place on Main is scheduled for
completion in June 2008, while the more modern-looking
Element is targeted for delivery in late 2008.

Downtown’s West End area is also seeing some development
activity. JPI Multifamily is constructing the Jefferson at West
End Station apartment project. The five-story building, located
adjacent to DART’s West End station, will contain 146
apartments with completion planned for 3rd quarter 2008.

Crossing over to the east side of North Central Expressway is
the Deep Ellum area, where the Alliance Ambrose project is
under way on a site close to DART’s future green line to Indiana
Avenue at Malcolm X Boulevard. Phoenix-based Alliance
Communities is building this 325-unit apartment community, with completion set for early 2009.

Traveling north along North Central Expressway, another apartment community is under way near North
Fitzhugh Avenue and Alcott Street. Trammell Crow Residential is constructing the 450-unit Alexan Fitzhugh,
                                                            with delivery targeted for November 2008.

                                                                       Moving to the East University-Vickery submarket,
                                                                       two properties with roughly 820 units are under
                                                                       way.

                                                                       Construction is proceeding on Park Lane Place, a
                                                                       33-acre mixed-use development located on the
                                                                       east side of U.S. 75 (the popular NorthPark Mall
                                                                       is located on the west side of U.S. 75 and Park
                                                                       Lane). The $650 million project will span five city
                                                                       blocks and include a host of apartment units,
                                                                       about 90 condominiums, a 230-room Valencia
                                                                       hotel, a Sports Club/LA health club, and nearly
                                                                       550,000 square feet of retail space anchored by a
                                                                       Whole Foods store. Houston, TX-based PM
                                                                       Realty Group is already constructing the
                                                                       apartment segment’s 325-unit first phase, while a
     Jefferson at West End Station in now rising next to DART’s
                                                                       second phase is on the drawing board. The initial
                     West End light rail station.                      phase includes a 20-story residential tower and
                                                                                                                       56

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
additional phases will be housed in a low-rise loft building with ground-floor retail. Final-unit completion on Park
Lane Place’s first apartment segment is targeted for late 2008.

Less than a mile south, another addition to the
massive Village community is nearing
completion. Lincoln Property Co. is putting the
finishing touches the 496-unit Dakota in the
Village. A 2nd quarter 2008 completion date
has been set.

The Northwest Dallas submarket currently has
one apartment community rising from the
ground. Archstone-Smith is rehabbing the 20-
year old Plaza at Bachman Creek retail
complex, located on Northwest Highway just
east of Lemmon Avenue. Plans include
transforming the aging buildings into 181 loft
apartments and retail space. Dubbed Elan at
Bluffview, the four-story buildings will join the
existing Embassy Suites Hotel and two office
towers. Final-unit build-out is slated for late
2008.                                                           The 496-unit Dakota project replaces several aging rental
                                                                    complexes in the massive Village development.
No new apartments are currently under
construction in the East Dallas, Far Northeast Dallas, Far Northwest Dallas, Highlands, Near North Dallas and
Oak Lawn/Park Cities submarkets. Looking ahead, however, several developments are at the starting gate in
the area near Cedar Springs Road and the Dallas North Tollway in the Oak Lawn/Park Cities submarket. First
Worthing recently purchased 25 acres near Lemmon Avenue and the Dallas North Tollway. In what could be
Oak Lawn’s biggest redevelopment project yet, the company plans to transform the aging apartments and retail
spaces into a new mixed-use project. In fact, this parcel of land could accommodate as many as 1,000
apartments. First Worthing, in partnership with Inland Real Estate Group, broke ground on the 372-unit first
phase, dubbed Oak Park, in early 2008. Actual apartment construction is expected to get under way in 2nd
quarter 2008. Another complex is set to rise a few blocks south on Cedar Springs Road and Hawthorne
Avenue. Winston Capital Corp. is about to start construction soon on a 125-unit community that will replace a
demolished apartment project. Construction is set to begin in earnest in May 2008. Crossing east over the
Dallas North Tollway, dirt is being cleared for a 316-unit mid-rise rental complex that will replace a former Tom
Thumb grocery store at Cedar Springs Road and Douglas Avenue. Construction on the mixed-use project, by
the Crossland Group, is set to begin in mid-2008. And finally, Atlanta-based Lane Co. plans to replace four
acres of aging apartments on a nearby site on Cedar Springs Road with a 240-unit community.

Fort Worth Submarkets
As of April 2008, 14 properties with just over 3,700 units were under way in the Fort Worth submarket cluster.

With construction proceeding on 1,380 units, North Fort Worth’s rental base will expand by a whopping 25
percent in the near term. Solid job growth has played a key role in the development surge in this submarket. A
few notable projects are under way in the central portion of the submarket.

Hillwood, master developer of the prestigious Victory Park project located right outside of downtown Dallas, is
constructing a 130-acre mixed-use community near the intersection of IH-35W and U.S. 287. Dubbed Monterra,
the project will contain a mix of apartments, townhomes, retail and office space. A 65-acre natural preserve will

                                                                                                                            57

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
blend into the development, complete with longhorn cattle and bison. Construction on the 288-unit Monterra
apartment complex is slated to wrap up in late 2008. Hillwood, which has taken a keen interest in North Fort
Worth, has already developed several thousand single-family homes and retail centers in the area during the
past few years.

About a mile away, the Park Vista community just got under way. Beucler Properties is building this 308-unit
complex, with completion set for mid-2009. Fine Line Diversified Development and Insight Real Estate
Strategies are about to start construction on a 400-unit complex dubbed Watercolor, located not far from Park
Vista. The developers anticipate a mid-2008 start date.

North Fort Worth landed another major deal in recent months. LNR Property Corp. bought 300 acres to build a
mixed-use development called The Presidio. The Florida-based developer envisions a community with 1,300
apartments, 1 million square feet of retail space, restaurants and shops, and 750,000 square feet for a hotel,
fitness center and office space. The Presidio will be located on the west side of IH-35W, about a mile from
Hillwood’s Monterra development. LNR Property Corp. intends to begin construction in the coming months.

                                                                          Three apartment communities are under
                                                                          development in the southern pocket of North
                                                                          Fort Worth. Flournoy Development is working
                                                                          on the 256-unit Haven at Western Center, with
                                                                          completion scheduled for late 2008. Moving
                                                                          southeast toward the intersection of IH-35W
                                                                          and IH-820, two neighboring communities are
                                                                          rising from the ground in North Fort Worth’s
                                                                          budding Fossil Creek neighborhood. AMLI
                                                                          Residential is constructing the 288-unit AMLI at
                                                                          Fossil Lake, while just steps away, AG Spanos’
                                                                          240-unit Avington Park is under way. Both
                                                                          properties are scheduled to complete in 3rd
                                                                          quarter 2008.

                                                                    The South Arlington submarket will see the
                                                                    addition of three new apartment projects in the
                                                                    near term. Two properties are situated just
   AMLI Residential’s Fossil Lake project is one of two communities
      currently under way in North Fort Worth’s Fossil Creek area.
                                                                    minutes away from S.H.360. Alliance
                                                                    Communities recently commenced building on
Broadstone Lowes Farm, located in the master-planned Lowes Farm development. The 456-unit apartment
community is scheduled to complete in late 2009. The 185-acre Lowes Farm project includes a mix of retail,
single-family and multifamily dwellings. A few miles south, the Mansions of Mansfield property is rising from the
ground. This 280-unit community is positioned near S.H. 360 and East Broad Street. Final-unit build-out is
scheduled for late 2008.

In the far northern pocket of the submarket, work on the Johnson Creek Crossing complex was recently started.
Madison Communities is working on this 188-unit project. Final-unit build-out is anticipated in 3rd quarter 2009.

Turning to Southwest Fort Worth, two apartment properties with a little more than 500 units are currently under
construction. Located in the submarket’s southern region, the Residences at Sunset Pointe is nearing
completion. This 224-unit community by NuRock Cos. should be ready for full occupancy by mid-2008. Nearby
on Granbury and Dirks Roads, the Cumberland at Granbury complex is rising from the ground. This $22 million


                                                                                                                            58

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
project by North American Partners Development will contain 282 units and is located on the last piece of land
zoned for multifamily development within a 10-mile radius. Completion is scheduled for 3rd quarter 2008.

Two properties are currently under development in the South Fort Worth area. Grand Prairie-based One Prime
LP is building the 252-unit Magnolia at Village Creek project, located on Mansfield Highway, just a few yards
from IH-820. Completion is scheduled for mid-2008. In the submarket’s southernmost city of Burleson, the
Sphinx at Alsbury Villas is under way. This 150-unit Sphinx Development complex, located on Alsbury
Boulevard, will be complete by August 2008.

One apartment community is in process in the Northeast Tarrant County submarket. Fairfield Residential is
constructing a 251-unit community dubbed 925 Main Street. The four-story mixed-use project replaces the
former OmniAmerican Credit Union office located at the corner of South Main Street and East Dallas Road.
Completion is slated for 3rd quarter 2008.

In the Intown/Cultural District, one new rental complex is under way. Columbus Realty Partners recently kicked
off construction on the 257-unit Colonial Park project. Located just west of University Drive, select units will
offer views of the Trinity River. Since construction just began, an August 2009 completion date has been set.

Fort Worth submarkets with no current residential building include Centreport, Haltom City/Richland Hills,
Hurst/Euless/Bedford, North Arlington, Northwest Tarrant County, Ridglea/Ridgmar, Southwest Tarrant County,
Western Hills and Woodhaven.

Northwestern Dallas Submarkets
In the northwestern Dallas submarket cluster, nearly 1,600 rental units are under way. The majority of these
apartments are actually being constructed in the Lewisville and Las Colinas/Valley Ranch submarkets.

The Lewisville submarket is slated to receive three new apartment communities with just over 750 units in the
near term. Allegiance Development is about to wrap up construction on the 288-unit Dry Creek Ranch complex,
located in the western portion of the submarket at Elizabeth Town Road and Raceway Drive. Completion is
                                                                  scheduled for 2nd quarter 2008. A few miles
                                                                  east, the city of Roanoke will receive a new
                                                                  community when Mid-America Apartment
                                                                  Communities completes construction on
                                                                  Copper Ridge. The 224-unit property is
                                                                  scheduled for final-unit build-out in January
                                                                  2009. Farther north, the area around Lake
                                                                  Lewisville will see the addition of one property
                                                                  when Lakeside at One Twenty One
                                                                  completes. Mockingbird Properties reports
                                                                  that this 240-unit project is scheduled for final-
                                                                  unit completion in late 2008.

                                                                           After receiving more than 1,100 new
                                                                           apartments in the past year, the Las Colinas
                                                                           area is about to receive another large block of
                                                                           new apartment product. Construction is
                                                                           under way on two communities totaling
                                                                           approximately 620 apartments, with all of
     Wood Partners’ Alta Lakeshore Lofts will be one of several new        these units located within close proximity to
      communities located close to Lake Carolyn in Las Colinas.            the Las Colinas Urban Center, a bustling 900-

                                                                                                                            59

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
acre campus that includes high-rise offices and retail, as well as residential and hotel space. A future DART rail
line heading to Dallas/Fort Worth International Airport is expected to run through this area by 2011, fulfilling part
of the vision to create a 24-hour live/work/play environment in Las Colinas.

Starting at the southern portion of Lake Carolyn,
construction is proceeding on Wood Partners’
Alta Lakeshore Lofts. This 341-unit community
is positioned on Lake Carolyn Parkway, with
construction expected to wrap up in early 2009.
Alta Lakeshore Lofts is located just steps away
from the recently completed Bella Casita
apartment project. Near the northern end of the
lake, AG Spanos’ Monterra at Las Colinas
community is under construction. The 282-unit
project is adjacent to the Marriott-Dallas hotel,
near the intersection of S.R. 114 and North
O’Connor Boulevard. Amenities will include
custom built-in wine racks, a boxing work-out
center, tanning booths, and a community putting
green. Completion is scheduled for 3rd quarter
2008.

Looking beyond the properties now under way, the Las Colinas area is expected to see a number of new
developments rise from the ground. Gables Residential purchased about 13 acres in Las Colinas, where the
company plans to build a high-density mixed-use project that will establish a cohesive downtown core around
Lake Carolyn. The development, dubbed Water Street, will include hundreds of apartments, a shopping center
and a future condo tower and hotel. The developer intends to begin building a 235-unit apartment segment in
2nd quarter 2008, while another 107-unit second phase is scheduled to start in 3rd quarter 2008. Irving officials
are also working on a nearby $220 million entertainment complex dubbed Las Colinas Live! The 40-acre project
will include entertainment venues, hotels, restaurants and an outdoor equestrian area.

One property is under construction in Denton. The 192-unit Preserve at Pecan Creek will form part of the 450-
acre master-planned Preserve at Pecan Creek development, complete with an elementary school, a junior
Olympic-size swimming pool, and thousands of single-family homes. The rental project is slated to complete in
August 2008.

No apartment construction activity is under way in the East and West Irving submarkets.

Eastern Dallas Submarkets
Two rental properties are in process in the eastern Dallas submarket cluster.

Garland will receive one new project in the near term. Alliance Communities has teamed up with Opus West
Corp. to build the 303-unit Broadstone Woodbridge community in the city of Wylie. The 20-acre project is being
touted as the first modern apartment community that Wylie has seen in five years. Completion is targeted for
March 2009.

In Mesquite, building recently got under way on the 252-unit Magnolia at Mesquite Creek. One Prime LP
intends to complete this affordable housing community in 2nd quarter 2009.

No apartment product is currently being developed in the Far East Dallas submarket.

                                                                                                                            60

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
Southern Dallas Submarkets
Apartment construction is on the wane in the southern Dallas region. After annual completions averaged about
2,000 units in the 2003-2006 time frame, ongoing construction as of April 2008 was limited to about 300 units in
one project.

The Oak Cliff submarket has one new property in the works. The Sage Co. is working on the 296-unit Pinnacle
Ridge. The complex is located near the intersection of North Cockrell Hill Road and Pinnacle Point Drive. The
developer reports a finish date of 1st quarter 2009.

No new product is under way in the Duncanville/DeSoto/Cedar Hill/Lancaster, Grand Prairie, North Ellis County,
South Dallas and Southwest Dallas submarkets.




                                                                                                                            61

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                   Dallas/Fort Worth
                                                                                                  Apartment Report
                                                                                                                         Supply

                                    FORECAST APARTMENT UNIT COMPLETIONS BY SUBMARKET
                                                            April 2008 - March 2009
Sub      Apartment Community                        Address                                        Developer               Finished   Units
 21 Gables Villa Rosa II            2650 Cedar Springs, Dallas               Gables Residential                             05/08       245
 21 Cirque in Victory Park          2500 N Houston St, Dallas                Hanover Co.                                    06/08        252
 21 Mercantile Place on Main        1704 Main St, Dallas                     Forest City Enterprises Inc.                   06/08        213
 21 Jefferson West End Station      407 N Lamar St, Dallas                    JPI Multifamily Inc.                          08/08        146
 21 Alexan Fitzhugh                 2737 N Fitzhugh Ave, Dallas               TrammelI Crow Residential                     11/08        450
 21 The Element                     1800 Main St, Dallas                      Forest City Enterprises Inc.                  11/08        153
 21 1900 McKinney Avenue            1900 McKinney Ave, Dallas                 Hanover Co.                                   12/08        230
 21 Alta Rosew ood                  2728 McKinnon St, Dallas                 Wood Partners                                  12/08       375
 21 AMLI at Quadrangle              2717 How ell St, Dallas                  AMLI Residential Properties                    01/09       220
 21 Alliance Ambrose                2901 Indiana Ave, Dallas                 Alliance Communities                           02/09       325
 24 Pinnacle Ridge                  1310 N Cockrell Hill Rd, Dallas          Sage Co.                                       02/09       296
 31 Fairfield at Addison Circle     15777 Quorum Dr, Addison                 Fairfield Residential                          11/08       414
 31 Prairie Crossing                4000 Sigma Rd, Farmers Branch             Metropolitan Development LLC                  01/09        368
 36 Venue at Galatyn Park Station   2301 Performance Dr, Richardson          Legacy Partners Inc.                           07/08       279
 37 Broadstone Woodbridge           600 Woodbridge Pkw y, Wylie               Alliance Communities                          03/09        303
 41 Dakota in the Village           6550 Shady Brook Ln, Dallas              Lincoln Property Co.                           04/08        496
 41 Park Lane Place I               8088 Park Ln, Dallas                     PM Realty Group                                12/08       325
 42 Elan at Bluffview               3850 W Northw est Hw y, Dallas           Archstone-Smith                                12/08       181
 48 Monterra at Las Colinas         301 W Las Colinas Blvd, Irving            AG Spanos Corp.                               07/08        282
 48 Alta Lakeshore Lofts            800 Lake Carolyn Pkw y, Irving           Wood Partners                                  01/09       341
 81 Preserve at Pecan Creek         6303 Shady Shores Rd, Denton             Private Developer                              08/08        192
 82 Dry Creek Ranch                 13861 Racew ay Dr, Northlake             Allegiance Development                         04/08       288
 82 Lakeside at One Tw enty One     701 N Leora Dr, Lew isville              Mockingbird Properties                         10/08       240
 82 Copper Ridge                    1200 Cannon Pkw y, Roanoke               Mid America Apartment Communities Inc.         01/09       224
 85 Tribeca                         8401 Memorial Ln, Plano                  Private Developer                              06/08       398
 85 Lincoln at Tow ne Square II     8101 Memorial Ln, Plano                  Lincoln Property Co.                           09/08       302
 87 Times Square at Craig Ranch     7951 Collin McKinney Pkw y, McKinney Evergreen Partners                                 05/08       320
 87 Lofts at Watters Creek          907 W Bethany Dr, Allen                  Southern Land Co.                              08/08        260
     DALLAS AREA                                                                                                                         8,118
52   Magnolia at Village Creek      5151 Mansfield Hw y, Fort Worth         One Prime LP                                    06/08          252
52   Sphinx at Alsbury Villas       755 NE Alsbury Blvd, Burleson           Sphinx Development Corp.                        08/08          150
53   Residences at Sunset Pointe    5400 Sycamore School Rd, Fort Worth     NuRock Cos.                                     06/08          224
53   Cumberland at Granbury         6850 Granbury Rd, Fort Worth            North American Partners Development Co. Ltd.    07/08          282
58   AMLI at Fossil Lake            5960 Travertine Ln, Fort Worth          AMLI Residential Properties                     08/08          288
58   Avington Park                  6101 N Riverside Dr, Fort Worth         AG Spanos Corp.                                 08/08          240
58   Haven at Western Center        6415 Old Denton Rd, Fort Worth          Flournoy Development Co.                        10/08          256
58   Monterra                       8301 Monterra Blvd, Fort Worth          Hillw ood Development                           12/08          288
71   Mansions of Mansfield          400 S SH 360, Mansfield                 Private Developer                               11/08          280
74   925 Main Street                925 S Main St, Grapevine                Fairfield Residential                           08/08          251
     FORT WORTH AREA                                                                                                                   2,511
     D/FW AREA                                                                                                                        10,629




                                                                                                                                    62

      ©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
      for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
      without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                   Dallas/Fort Worth
                                                                                                  Apartment Report
                                                                                                                        Supply

                                    FORECAST APARTMENT UNIT COMPLETIONS BY SUBMARKET
                                                    April 2009 or Later
Sub       Apartment Community                         Address                                  Developer                Finished   Units
21 Monterey                           3930 McKinney Ave, Dallas                 Criterion Property Co.                   10/09          371
31 Allegro Addison I                  15750 Spectrum Dr, Addison                SNK Realty Group                         04/09          272
36 Post Eastside                      1851 N Greenville Ave, Richardson         Post Properties Inc.                     04/09          435
38 Magnolia at Mesquite Creek         900 Gross Rd, Mesquite                    One Prime LP                             05/09          252
85 Estancia at Ridgeview Ranch II 10200 Independence Pkw y, Plano               Flournoy Development Co.                 04/09          248
85 Northside at Legacy Village II     7560 Bishop Rd, Plano                     Columbus Realty Partners                 05/09          464
85 La Valencia at Starw ood           6805 Lebanon Rd, Frisco                   Tonti Properties Inc.                    06/09          270
87 Alexan McKinney                    6653 McKinney Ranch Pkw y, McKinney       TrammelI Crow Residential                04/09          379
      DALLAS AREA                                                                                                                   2,691
56    Colonial Park                   1700 Rogers Rd, Fort Worth                Columbus Realty Partners                 08/09        257
58    Park Vista                      8625 Ray White Rd, Fort Worth             Beucler Properties LP                    06/09        308
71    Johnson Creek Crossing          1223 S Pecan St, Arlington                Madison Communities Ltd.                 07/09        188
71    Broadstone Low es Farm          1400 S SH 360, Mansfield                  Alliance Communities                     10/09        456
      FORT WORTH AREA                                                                                                               1,209
      D/FW AREA                                                                                                                     3,900




                                                                                                                                   63

     ©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
     for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
     without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy



Current Trends
Region Overview
The Dallas/Fort Worth apartment occupancy
rate landed at 93.5 percent in March 2008.                                   Apartment Occupancy
Occupancy backtracked by 0.6 points                                            Dallas/Fort Worth Area
between December and March, as demand
during 2008’s 1st quarter proved weaker                  100%
than was expected.
                                                          95%
Occupancy still was up on an annual basis,
however, with the March 2008 reading
ahead of March 2007’s performance by 0.4
                                                          90%
points.

The annual increase in occupancy was
                                                     85%
supported in part by the robust apartment
leasing activity recorded across Dallas/Fort
Worth during 2007’s last half, when much             80%
stricter underwriting regulations for new
                                                          1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
mortgages eased the general outflow of
                                                          03    03   04  04   05    05  06    06   07  07  08
apartment renters making single-family
home purchases. Also crucial to this annual
upturn in occupancy, D/FW’s apartment
inventory growth of late was fairly modest, since teardowns to create redevelopment sites offset some of the
impact of new supply coming on stream. Inventory growth during the year-ending March was held to slightly
more than 4,200 units, roughly cut in half from the delivery figure because of old properties being removed from
operation.

Apartment occupancy in North Texas remains a little below the national standard, a pattern almost always seen
because Dallas/Fort Worth routinely adds comparatively more new supply and, thus, nearly always has a
sizable block of product in initial lease-up. Results from M/PF YieldStar’s 1st quarter 2008 national survey
showed average U.S. apartment occupancy at 94.1 percent. (This U.S. figure is a preliminary calculation, with
results loaded into the database for about 2.9 million of the roughly 4 million total units surveyed.) Thus, D/FW’s
occupancy rate trailed the national norm by 0.6 points, a smaller gap than has been the norm in recent years.
Among all the Texas markets, Dallas/Fort Worth was the middle-ground performer as of March. At the top end,
occupancy stood near 95 percent in both Austin and El Paso. But both San Antonio and Houston suffered
tough 1st quarter results, San Antonio seeing occupancy dip below 92 percent and Houston seeing the rate
slide under 91 percent.




                                                                                                                             64

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                               Dallas/Fort Worth
                                                                                              Apartment Report
                                                                                                        Occupancy
Dallas Area
In metro Dallas, 1st quarter 2008 apartment
occupancy came in at 93.5 percent. In a                                     Apartment Occupancy
pattern similar to the trend for North Texas
                                                                                       Dallas Area
as a whole, occupancy faltered by 0.6 points
between December and March, but the early              100%
2008 performance still was a tenth of a
percentage point ahead of the early 2007                 95%
reading.

While demand during the past year didn’t                 90%
keep pace with completions, it did surpass
annual net inventory change, which was
held to about 3,000 units since more than                85%
3,800 previously operating apartments were
taken offline.
                                                         80%
                                                               1Q     3Q    1Q    3Q    1Q    3Q   1Q   3Q   1Q    3Q    1Q
                                                               03     03    04    04    05    05   06   06   07    07    08




Fort Worth Area
Occupancy in the Fort Worth metro stood at
93.4 percent in March 2008. Mirroring the
performance seen in Dallas, the Fort Worth
                                                                             Apartment Occupancy
                                                                                   Fort Worth Area
occupancy rate dipped 0.6 points between
December and March. However, Fort Worth                  100%
was able to sustain a much stronger annual
rise, with early 2008 occupancy topping
early 2007’s level by a solid 1.2 points.                 95%


                                                          90%


                                                          85%


                                                          80%
                                                                 1Q    3Q    1Q    3Q    1Q   3Q 1Q     3Q    1Q    3Q   1Q
                                                                 03    03    04    04    05   05 06     06    07    07   08




                                                                                                                              65

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                              Dallas/Fort Worth
                                                                                             Apartment Report
                                                                                                          Occupancy
Occupancy by Age Category
There were some pretty significant shifts in
the pattern of occupancy by product age                                       Apartment Occupancy
segment for the Dallas/Fort Worth                                             By Age of Community
apartment market as of 2008’s 1st quarter.                                              Dallas Area
                                                       100%
These shifts reflected that performances slid                                                            1Q 07    1Q 08
sharply for the two extremes of the product                                 ∆ (0.1)
spectrum. For the product built since 2000,             95%     ∆ (0.6)                   ∆ 0.3         ∆ 1.4      ∆ (0.7)
demand at the newest completions – while
substantial, with initial lease-ups proceeding
fairly well – just couldn’t match delivery              90%
volumes. For properties built prior to 1970,
the story was sizable net move-outs, seen
especially in locales where Hispanics form              85%
the core audience for the oldest segment of
product.
                                                        80%
As of March, then, the 95.2 percent
                                                                  2000+       1990s        1980s        1970s    Pre-1970
occupancy rate seen in Dallas/Fort Worth’s
1990s-era product was by far the strongest
in any property age category. This figure
was about in line with the results posted in                                  Apartment Occupancy
both late 2007 and early 2007.                                                By Age of Community
                                                                                      Fort Worth Area
Properties from the 1980s comprised the                100%
second tightest segment of the D/FW                                                                     1Q 07    1Q 08
apartment market in early 2008, moving up                                   ∆ 1.6
                                                                                          ∆ 2.0
to take the spot usually held by the newest             95%
                                                                ∆ (2.8)
projects. March occupancy in this 1980s-                                                                           ∆ 1.2
vintage product niche was 93.9 percent,                                                                 ∆ 0.9
down a tiny bit on a quarterly basis but 0.8            90%
points ahead of the early 2007 result.

March occupancy stood at 92.7 percent in     85%
North Texas communities from the 1970s, at
92.4 percent in the developments finished
since 2000 and at 92.3 percent in the units  80%
built prior to 1970. The 1970s-era projects
made good progress in performance for               2000+      1990s     1980s                          1970s    Pre-1970
both the quarter and the year, but there was
deterioration in occupancy – particularly
between December 2007 and March 2008 – for the two ends of the product spectrum.

Looking specifically at Dallas, March 2008 occupancy by product age category ranged between 92 percent and
95.1 percent, breaking out as follows:

    •    93 percent in the projects built since 2000, drifting down 0.6 points since early 2007,
    •    95 percent in the 1990s-era stock, down a minor 0.1 point on an annual basis,
                                                                                                                             66

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
    •    93.6 percent in the 1980s-vintage units, moving ahead by 0.3 points annually,
    •    93.4 percent in the 1970s-generation stock, registering the most momentum with the performance up
         1.4 points year-over-year, and
    •    92.3 percent in communities built prior to 1970, faltering by 0.7 points since early 2007.

Fort Worth recorded these occupancy patterns:
    •    90.2 percent in the properties built since 2000, down 2.8 points on an annual basis, though this should
         be a temporary lull since so many of Fort Worth’s deliveries for the past year finished specifically in
         2008’s 1st quarter,
    •    96 percent in the 1990s-era stock, improving 1.6 points on an annual basis,
    •    94.5 percent in the 1980s-vintage units, up an impressive 2 points between early 2007 and early 2008,
    •    90.5 percent in the 1970s-generation stock, improving 0.9 points during the past year, and
    •    92.5 percent in communities built prior to 1970, actually up 1.2 points annually but – as in Dallas – way
         off on a quarterly basis.




                                                                                                                             67

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
Current Trends: Submarket Highlights
Occupancy readings by neighborhood in North Texas nearly always are quite varied, and that was the case
again in 1st quarter: the range came in at just over 82 percent to just under 97 percent. Occupancy as of 1st
quarter was above the essentially full mark of 95 percent in only seven of the 45 North Texas submarkets, with
that number cut significantly from 18 areas registering occupancy of 95 percent or better in late 2007. Top
performers as of March were Ridglea/Ridgmar, Fort Worth’s Intown/Cultural District, Hurst/Euless/Bedford, Far
North Dallas, Mesquite, Richardson and East Plano.

Looking at shifts in performance over the past year, 23 of the 45 D/FW submarkets reported an increase in
average occupancy. At the top end of the spectrum, year-over-year occupancy improvement of more than 3
points was seen in Ridglea/Ridgmar, South Fort Worth and Hurst/Euless/Bedford. On the other hand,
occupancy faltered by more than 3 points during the past year in three submarkets: North Fort Worth, Western
Hills and Duncanville/DeSoto/Cedar Hill/Lancaster.

Fort Worth Submarkets
As of March, the Fort Worth cluster of submarkets                                  Occupancy Leaders
boasted about half of the strongest neighborhood-                                     1st Quarter 2008
level occupancy performers across North Texas.
                                                                             Submarket                          Occupancy
The small Ridglea/Ridgmar submarket, which totals                 Ridglea/Ridgmar                                   96.6%
fewer than 3,500 apartment units, took the top spot               Intown/Cultural District                          96.4%
for occupancy in the region as of March. The rate                 Far North Dallas                                  95.7%
stood at 96.6 percent, down 0.4 points on a quarterly             Hurst/Euless/Bedford                              95.7%
basis but up a dramatic 6.3 points since early 2007.              Mesquite                                          95.4%
This big annual shift shows that survey results in the            Richardson                                        95.2%
area are subject to dramatic fluctuation due to the               East Plano                                        95.0%
submarket’s small existing product count.
                                                                  Lewisville                                        94.9%
                                                                  Far Northwest Dallas                              94.7%
Fort Worth’s Intown/Cultural District continued to
rank among the North Texas region’s occupancy                     Northwest Tarrant County                          94.7%
leaders in March, coming in at the #2 spot with a rate            South Arlington                                   94.7%
of 96.4 percent. Occupancy slipped 0.6 points
between December and March. Occupancy also was down on an annual basis, though the drop was only a
minor 0.2 points. The submarket’s fairly small supply of top-tier communities built in 2000 or later registered
occupancy at a healthy 96.9 percent as of 1st quarter.

Hurst/Euless/Bedford, which is one of metro Fort Worth’s most significant apartment neighborhoods with a base
of more than 24,000 units, demonstrated considerable momentum in its occupancy performance of late. The
rate climbed to 95.7 percent as of March. Occupancy jumped 1.6 points between December and March,
bringing total improvement since early 2007 to 3.4 points. Much of the overall progress in Hurst/Euless/Bedford
stems from occupancy in 1970s-era developments moving from a previously horrendous rate to a March figure
of 93 percent. However, that’s still below the occupancy of 95.1 percent to 97 percent seen in other product age
sectors.

At the next tier of performance in metro Fort Worth, both South Arlington and Northwest Tarrant County posted
1st quarter occupancy of 94.7 percent. Each submarket saw occupancy slip a little between December and
March, but annual progress was still substantial at 1.2 points in South Arlington and 1.8 points in Northwest
Tarrant County. South Arlington’s March occupancy by product age sector generally ranged from 94.4 percent
to 95.3 percent, but this was one of the North Texas neighborhoods where occupancy in the oldest segment of
                                                                                                                             68

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
product built prior to 1970 took a huge hit for the quarter: the rate dropped to 90.7 percent, down more than 5
points on a quarterly basis. In Northwest Tarrant County, the product mix is very heavy on 1980s-generation
units, which were 96.5 percent occupied as of March.

Early 2008 apartment occupancy was at 94.2 percent in South Fort Worth and at 94 percent in North Arlington,
with these submarkets demonstrating some momentum on a quarterly basis and in annual terms as well. While
South Fort Worth registered healthy occupancy as of 1st quarter in most product age sectors, this is another
area where the performance of communities built prior to 1970 was miserable, specifically coming in at 89.3
percent. For North Arlington, overall results are largely shaped by what happens in the 1980s-era product,
which overwhelmingly dominates the total mix: these units were 94.3 percent full as of March.

The 1st quarter occupancy rate landed at 93.9 percent in Haltom City/Richland Hills, 93.5 percent in Southwest
Tarrant County, 93.2 percent in Southwest Fort Worth and 93 percent in Centreport. Within this group,
Southwest Tarrant County and Centreport are small submarkets that don’t have much impact on the overall
trends seen for metro Fort Worth. However, the Haltom City/Richland Hills area has a base of more than
11,000 apartments, and the count is more than 16,000 units in Southwest Fort Worth, so they do play
meaningful roles in patterns posted for the metro as a whole. Performances in these two more significant
submarkets moved in different directions recently. Haltom City/Richland Hills demonstrated notable progress for
the past quarter and for the past year as well, reflecting momentum in the 1980s-generation units that form
much of the stock. Southwest Fort Worth, in contrast, saw occupancy drop for the quarter and for the year.
This mainly reflected a big decline in occupancy among units finished since 2000, with this result impacted by
the fact that a big project finished in February 2008 is still in the early stages of lease-up.

Northeast Tarrant County occupancy was at a                                Greatest Occupancy Increases
weak level of 92.4 percent in March, while the
                                                                                  April 2007 - March 2008
performances were worse still at 90.3 percent in
Woodhaven, 87.4 percent in North Fort Worth and                                                                   Annual
82.2 percent in Western Hills. For Northeast                                 Submarket                           Change
Tarrant County and North Fort Worth, low                         Ridglea/Ridgmar                                6.3 points
occupancy in early 2008 simply reflected recent                  South Fort Worth                               5.1 points
completions in initial lease-up: occupancy among                 Hurst/Euless/Bedford                           3.4 points
projects built since 2000 was only 88.2 percent in               North Arlington                                2.9 points
Northeast Tarrant County and 79.1 percent in North               Grand Prairie                                  2.4 points
Fort Worth. While those aren’t normal occupancy
                                                                 Highlands                                      2.2 points
rates for these two desirable submarkets, they
                                                                 Northwest Dallas                               2.1 points
won’t necessarily get back to healthy levels right
away, since Northeast Tarrant County is about to                 Garland                                        1.8 points
add a moderate block of further stock and North                  Northwest Tarrant County                       1.8 points
Fort Worth is about to be slammed with a huge                    Haltom City/Richland Hills                     1.7 points
number of completions.

Northern Dallas Submarkets
In the northern Dallas submarket cluster, a trio of locales – Far North Dallas, Richardson and East Plano – ranked
among the neighborhood-level occupancy leaders across North Texas in 2008’s 1st quarter.

Far North Dallas nabbed the top spot in this submarket cluster. The neighborhood’s apartment market was 95.7
percent occupied in March 2008, with this rate matching the December result and coming in 0.8 points ahead of
the early 2007 figure. Units built since 2000, which were 96.9 percent full, comprised the tightest sector of the
market, while occupancy rates also were healthy in the 1980s-era stock, at 95.7 percent, and in the 1990s-vintage
projects, at 95.2 percent.

                                                                                                                             69

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
Richardson recorded occupancy at 95.2 percent in March 2008. While occupancy slipped by 1.1 points
between December and March, the early 2008 figure still topped early 2007’s showing by a tenth of a
percentage point. Richardson’s biggest product segments are communities built in the 2000s, 1990s and
1970s, and all three of these groups registered occupancy right around the 95 percent mark in March.

Occupancy in East Plano landed at 95 percent in 1st quarter 2008. The submarket had one of the region’s
healthier demand showings during early 2008, taking occupancy up 1.1 points on a quarterly basis. And that
positive absorption in 1st quarter drove March 2008 occupancy 0.6 points above the early 2007 rate.
Occupancy between 95 percent and 96 percent was typical for most product age sectors in East Plano as of 1st
quarter 2008, though the rate was lower at 92 percent in the small selection of examined units built since 2000.

With March occupancy at 94.5 percent, both Carrollton/Farmers Branch/Addison and West Plano just missed
ranking among the tightest apartment markets across North Texas. Both submarkets lost a little momentum in
performance between December and March. Early 2008 occupancy matched the early 2007 figure in West
Plano but was a little bit lower than the early 2007 rate in Carrollton/Farmers Branch/Addison.

Rounding out the list of neighborhoods in the northern Dallas submarket cluster, North Dallas registered March
occupancy of 94.1 percent, and Allen/McKinney posted an occupancy rate of 93.9 percent. While Allen/
McKinney’s recent performance certainly wasn’t bad, that neighborhood was the one key spot in the northern
Dallas submarket cluster showing meaningful backtracking of late: occupancy dropped 1.4 points between
December and March, taking the early 2008 figure 1.1 points under early 2007’s level. Brand new communities
formed the weak product segment in the neighborhood, as occupancy in properties built since 2000 was down
to 93.2 percent. While Allen/McKinney did add new supply over the course of the past year, all of those
additions were finished around the middle of 2007 and, thus, have now had plenty of time to complete initial
lease-up.

Eastern Dallas Submarkets
Mesquite ranked among the most improved occupancy performers across North Texas in early 2008, shooting
up the ranks to take the region’s #5 spot for March occupancy by neighborhood. At 95.4 percent, 1st quarter
occupancy topped the late 2007 rate by 1.2 points, and the early 2008 reading was 1 point over the early 2007
performance. Communities from the 1980s dominate Mesquite’s apartment stock. Occupancy in that product
segment improved more than 2 percentage points to 95.5 percent over the course of the past year, with most of
that increase seen specifically between December and March.

Garland apartment occupancy was at 94.6 percent in 1st quarter 2008. While that rate was down 0.9 points
from the strong showing posted in late 2007, annual progress still was notable at 1.8 points. March occupancy
stood at 94.9 percent in the 1980s-generation units that comprise most of Garland’s existing stock.

As usual, Far East Dallas was the weakest occupancy performer as of March in the eastern Dallas submarket
cluster. The 1st quarter occupancy rate of 90.6 percent was down 1.6 points from the late 2007 level, with this
quarterly slide taking the early 2008 figure 0.4 points under early 2007’s occupancy. Like the rest of the eastern
Dallas submarket cluster, Far East Dallas has an apartment base heavy on 1980s-era projects, and 1st quarter
occupancy in these units was only 91.7 percent. Furthermore, this was one of the submarkets key to the
region’s overall pattern of big losses seen on a quarterly basis among the oldest developments built prior to
1970: March occupancy in that slice of the market in Far East Dallas was down to just 87.5 percent.




                                                                                                                             70

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
Northwestern Dallas Submarkets
Lewisville was the one neighborhood in the northwestern Dallas submarket cluster that ranked among the top
occupancy performers in the D/FW region as of 1st quarter 2008. Occupancy stood at 94.9 percent, down 0.4
points on a quarterly basis but still up 0.5 points year-over-year. Boosting Lewisville’s performance, this
normally pretty active construction center didn’t add any new supply during the past year, and that lack of new
product in initial lease-up helped keep occupancy at an essentially full level in top-of-the-market communities.
March occupancy was at 95 percent in projects built since 2000 and at 95.1 percent in the 1990s-generation
stock. The leasing environment was a little more competitive in the 1980s-era product niche, where 1st quarter
occupancy stood at 94.3 percent.

Las Colinas/Valley Ranch posted 1st quarter 2008 occupancy of 94.6 percent, up a tenth of a percentage point
since late 2007 but off the early 2007 performance by 0.9 points. Most of the annual decline in occupancy
occurred in 1980s-era units, where occupancy was off 1.4 points on a year-over-year basis to 93.6 percent.
While occupancy also was a little weak, at 93.7 percent, in the stock built since 2000, that performance actually
was encouraging given the submarket had to process more than 1,100 units of new supply during the past year.
The early 2008 occupancy rate for units built since 2000 essentially matched the figures seen in both late 2007
and early 2007.

The affordable East Irving neighborhood, which had ranked among the region’s tightest apartment markets in
2007’s 4th quarter, saw occupancy take a big hit in 1st quarter 2008. Occupancy dropped to 94.1 percent,
down 2.3 points for the quarter and 1.6 points under the early 2007 rate. In a pattern seen across several parts
of D/FW, older properties built before 1970 struggled in 2008’s 1st quarter: East Irving occupancy in that
product sector fell to 93.2 percent, plunging almost 3 points on a quarterly basis and down 3.7 points from the
March 2007 figure.

Denton’s 1st quarter occupancy performance came in at 93.9 percent, up 0.3 points for the quarter to a rate that
matches early 2007’s occupancy. The 1980s-vintage units, which comprise much of Denton’s existing
inventory, were 94.3 percent occupied in March. The rate for communities built since 2000 was at 92.1 percent,
lower than might be expected given that the past year’s new completions actually have had time to wrap up
initial leasing efforts.

West Irving’s occupancy rate cooled to 93.2 percent in March 2008, declining 0.5 points since December and off
a minor tenth of a percentage point from the early 2007 figure. The 1980s-vintage projects that account for
almost all of the apartments in West Irving had occupancy of 93 percent in March.

Central Dallas Submarkets
Far Northwest Dallas, where the existing apartment stock is limited to only about 3,400 units, was the top
occupancy performer across the central Dallas submarket cluster in 2008’s 1st quarter. Occupancy stood at
94.7 percent, off 1 point on a quarterly basis but still up 1.5 points compared to the early 2007 rate. The
occupancy figure stood at 94.9 percent for the 1970s-vintage apartments that form the bulk of the stock in Far
Northwest Dallas.

In Near North Dallas, occupancy of 94.6 percent in March was off the late 2007 performance by 0.9 points but
still 0.9 points ahead of the early 2007 rate. Focusing in on the product segments where substantial numbers of
units are offered, 1st quarter occupancy stood at 95.2 percent in the 1970s-era product and at 93.7 percent in
the developments from the 1990s.

The key Intown Dallas submarket recorded March 2008 occupancy of 94.3 percent. While the performance
eased by 0.5 points between December and March, early 2008 occupancy still was 0.9 points ahead of the early
2007 pace. March occupancy stood at 96.7 percent for the sizable block of 1990s-generation properties found

                                                                                                                             71

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
in the Intown neighborhood, with that rate rising a notable 3.9 points over the course of the past year.
Occupancy was lower at 92.1 percent in projects built since 2000, influenced by the sizable block of new supply
just finished in 2008’s 1st quarter and still in the initial leasing process.

At 93.6 percent, the East University-Vickery area’s March occupancy rate was down by a notable 2 points from
the late 2007 reading. However, early 2008 occupancy still topped the early 2007 figure by 0.5 points. Projects
from the 1970s, which comprise much of the submarket’s stock, were 94.1 percent occupied as of March. That
figure was up considerably on a year-over-year basis. However, East University-Vickery saw real struggles at
the two extremes of the product spectrum. Like quite a few other parts of North Texas, the neighborhood
suffered sizable net move-outs recently in the properties build prior to 1970, taking occupancy in that niche
down to 93.5 percent. Furthermore, new projects built since 2000 also had difficulty: even though this
neighborhood didn’t add any new supply during the past year, March occupancy for the moderately-sized top-of-
the-market inventory was only 85.8 percent.

Northwest Dallas was another submarket that got slammed with sizable net move-outs from older properties
specifically during 2008’s 1st quarter, when occupancy dropped to just 91.7 percent in developments built
before 1970 and to just 90.4 percent in the 1970s-era inventory. Overall occupancy as of March was at 93.1
percent, declining a notable 1.9 points for the quarter. However, this quarterly loss didn’t wipe out all of the
previous progress, as early 2008 occupancy still came in 2.1 points ahead of the very low rate seen in early
2007.

The Highlands area saw nearly 1,300 apartments taken out of inventory due to demolitions to create
redevelopment sites during the year-ending March. Just getting rid of some of the submarket’s most obsolete
product is helping the neighborhood’s occupancy rate, though the performance still isn’t exactly stellar. March
occupancy came in at 92.6 percent, up 1.5 points on a quarterly basis and 2.2 points ahead of the early 2007
rate.

The weakest occupancy performers in the central Dallas submarket cluster as of March 2008 were Oak Lawn/
Park Cities at 91.6 percent, East Dallas at 91.2 percent and Far Northeast Dallas at 89 percent. The story to
watch in that group of neighborhoods is the performance of newer product in the Oak Lawn/Park Cities area.
While the March survey sample didn’t go very deep into that submarket’s product built since 2000, the
communities examined didn’t do very well for a second quarter in a row: March occupancy was down to 85.6
percent. And that performance shouldn’t be impacted by new projects still in initial lease-up, since all of the past
year’s new properties now have been finished for at least two quarters.

Southern Dallas Submarkets
All six of the neighborhoods in the southern Dallas submarket cluster were weak occupancy performers as of
March 2008, with the rate under 93 percent in every area.

For Grand Prairie, 1st quarter occupancy registered at 92.7 percent, off 2 full percentage points for the quarter
but up 2.4 points on an annual basis. Among product age sectors that form fairly sizable portions of Grand
Prairie’s product mix, occupancy was healthy at 96.3 percent in the 1990s-era units, but rates were dramatically
more competitive at 92.9 percent in the communities built since 2000 and at just 90.7 percent in the 1980s-
vintage properties.

Occupancy in North Ellis County’s small base of about 3,200 apartment units plunged to 92.5 percent as of
March, falling more than 3 points for the quarter and more than 2 points for the year.

At the next tier of performance, March occupancy came in at 91.7 percent in Southwest Dallas and at 91.4
percent in Oak Cliff. While Southwest Dallas occupancy proved essentially stable for the quarter, there was a

                                                                                                                             72

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
drop of 1.6 points on an annual basis. The 1980s-generation projects that comprise much of the stock in
Southwest Dallas saw occupancy falter by 4 full percentage points during the past year. In Oak Cliff, 1st
quarter’s 91.4 percent occupancy rate was off a whopping 2.6 points from the late 2007 result, though annual
loss was more modest at 0.5 points. Much of Oak Cliff’s product consists of older developments built prior to
1970, and this was another submarket where performances in that sector really got slammed on a quarterly
basis, taking March occupancy down to 87.3 percent. Oak Cliff also has quite a few new projects built since
2000. The occupancy rate in that niche was at 93.9 percent as of March.

In Duncanville/DeSoto/Cedar Hill/Lancaster, occupancy of 90.3 percent in 1st quarter was down 1.8 points from
the late 2007 rate and off 3.7 points from the early 2007 performance. Really low occupancy for units built since
2000 and for units from the 1970s really skewed that overall rate, but the selection of product in those weakest
performing categories actually is sparse. Product from the 1980s is more common: at 92.7 percent, occupancy
is those 1980s-era units certainly wasn’t great, but it did look quite a bit better than the submarket’s overall
average.

South Dallas occupancy dipped another 0.9 points between December and March, taking annual loss to 2.4
points and lowering the 1st quarter occupancy figure to just 88.6 percent. Weak performances were seen
across the product age categories (while 93.6 percent occupancy was posted in the 1990s stock, survey sample
there was limited to just a handful of units).




                                                                                                                             73

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy

                 AVERAGE GROSS OCCUPANCY BY BEDROOM TYPE BY SUBMARKET
                                                      1st Quarter 2008
                        Submarket                         Total        Eff          One          Two         Three
           21   Intown Dallas                             94.3%        96.1%        94.1%        94.3%        94.9%
           22   South Dallas                              88.6%        90.9%        88.9%        88.5%        87.7%
           24   Oak Cliff                                 91.4%       100.0%        93.2%        89.6%        90.4%
           25   Dunc/DeSoto/CH/Lancaster                  90.3%        87.5%        92.0%        90.7%        73.6%
           26   Grand Prairie                             92.7%        89.6%        93.1%        92.8%        91.1%
           27   East Irving                               94.1%        95.1%        94.4%        94.3%        91.5%
           29   Oak Lawn/Park Cities                      91.6%        92.0%        91.5%        91.7%        89.9%
           30   Far Northwest Dallas                      94.7%        95.0%        95.6%        94.4%        93.2%
           31   Carrollton/FB/Addison                     94.5%        93.6%        94.8%        94.3%        93.0%
           32   Near North Dallas                         94.6%        96.9%        94.5%        94.4%        94.0%
           34   East Dallas                               91.2%        94.9%        90.8%        91.1%        91.0%
           35   Highlands                                 92.6%        91.3%        92.0%        93.3%        92.8%
           36   Richardson                                95.2%          n.a.       96.0%        94.6%        95.0%
           37   Garland                                   94.6%        95.2%        95.0%        94.2%        93.7%
           38   Mesquite                                  95.4%        95.5%        95.2%        95.6%        96.0%
           39   Southwest Dallas                          91.7%        89.7%        91.0%        91.7%        94.4%
           40   Far East Dallas                           90.6%        95.6%        91.8%        89.2%        87.9%
           41   East University-Vickery                   93.6%        88.1%        94.0%        93.7%        96.2%
           42   Northwest Dallas                          93.1%        88.8%        93.7%        92.1%        95.0%
           43   West Irving                               93.2%        92.8%        93.6%        92.8%        91.9%
           44   North Dallas                              94.1%        93.2%        94.5%        93.5%        94.4%
           45   Far Northeast Dallas                      89.0%        85.0%        89.3%        89.3%        73.7%
           47   Far North Dallas                          95.7%        98.7%        95.8%        95.2%        94.9%
           48   Las Colinas/Valley Ranch                  94.6%          n.a.       94.3%        94.9%        94.8%
                Dallas County                             93.3%        92.6%        93.6%        93.1%        91.9%
                City of Dallas                            92.7%        92.4%        93.2%        92.3%        91.9%
                Not in City                               94.0%        93.6%        94.3%        94.0%        91.8%
           81   Denton                                    93.9%        97.8%        94.7%        93.8%        91.5%
           82   Lewisville                                94.9%        96.0%        94.9%        94.9%        94.8%
           85   West Plano                                94.5%        94.8%        94.8%        94.3%        94.0%
           86   East Plano                                95.0%        97.9%        94.5%        95.5%        94.2%
           87   Allen/McKinney                            93.9%          n.a.       94.0%        93.9%        93.4%
           88   North Ellis County                        92.5%        95.8%        94.3%        92.2%        88.5%
                DALLAS AREA*                               93.5%       93.2%        93.8%        93.3%        92.3%




                                                                                                                             74

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                           Dallas/Fort Worth
                                                                                                          Apartment Report
                                                                                                                       Occupancy

                  AVERAGE GROSS OCCUPANCY BY BEDROOM TYPE BY SUBMARKET
                                                             1st Quarter 2008
                         Submarket                                Total          Eff             One            Two          Three
           52    South Fort Worth                                 94.2%          86.5%           93.6%          95.4%         93.1%
           53    Southwest Fort Worth                             93.2%          97.2%           93.9%          92.9%         89.0%
           54    Ridglea/Ridgmar                                  96.6%          96.7%           95.9%          96.9%         98.9%
           55    Western Hills                                    82.2%          84.3%           78.3%          84.6%         89.8%
           56    Intown/Cultural District                         96.4%         100.0%           96.2%          96.2%         98.4%
           58    North Fort Worth                                 87.4%            n.a.          91.7%          86.0%         77.0%
           59    Woodhaven                                        90.3%          76.1%           89.5%          91.8%         91.4%
           60    Centreport                                       93.0%         100.0%           91.5%          96.0%        100.0%
           70    North Arlington                                  94.0%          93.1%           94.0%          94.3%         87.1%
           71    South Arlington                                  94.7%          97.8%           94.9%          94.2%         94.0%
           72    Southwest Tarrant County                         93.5%            n.a.          93.3%          93.8%         94.7%
           73    Northwest Tarrant County                         94.7%          95.8%           94.9%          94.3%         95.0%
           74    Northeast Tarrant County                         92.4%         100.0%           92.9%          92.2%         90.2%
           75    Haltom City/Richland Hills                       93.9%          89.8%           94.1%          93.8%         94.1%
           76    Hurst/Euless/Bedford                             95.7%          95.1%           95.9%          95.7%         94.2%
                 FORT WORTH AREA*                                  93.4%         93.4%           93.4%          93.6%         91.7%
                 City of Fort Worth                               91.4%          89.4%           91.3%          91.9%         88.8%
                 Not in City                                      94.5%          95.1%           94.7%          94.4%         93.2%
                 D/FW AREA*                                        93.5%         93.2%           93.7%          93.4%         92.1%
          * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                      75

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy

               AVERAGE GROSS OCCUPANCY BY YEAR COMPLETED BY SUBMARKET
                                                      1st Quarter 2008
                 Submarket                         Total       2000+        90-99        80-89        70-79       Pre-70
    21   Intown Dallas                              94.3%       92.1%        96.7%        94.1%          n.a.      97.7%
    22   South Dallas                               88.6%       87.9%        93.6%        89.9%        90.2%       85.6%
    24   Oak Cliff                                  91.4%       93.9%          n.a.       96.7%        89.1%        87.3%
    25   Dunc/Desoto/CH/Lancaster                   90.3%       77.4%        94.0%        92.7%        89.0%          n.a.
    26   Grand Prairie                              92.7%       92.9%        96.3%        90.7%        82.8%       97.8%
    27   East Irving                                94.1%         n.a.         n.a.       97.3%        94.5%        93.2%
    29   Oak Lawn/Park Cities                       91.6%       85.6%        92.9%        95.2%          n.a.      93.0%
    30   Far Northwest Dallas                       94.7%       94.6%          n.a.         n.a.       94.9%       92.3%
    31   Carrollton/FB/Addison                      94.5%       95.2%        91.8%        95.7%        93.6%       96.7%
    32   Near North Dallas                          94.6%       93.0%        93.7%        93.0%        95.2%       99.0%
    34   East Dallas                                91.2%       91.3%        94.3%        87.0%        99.6%       96.4%
    35   Highlands                                  92.6%         n.a.         n.a.       91.8%        95.5%       89.8%
    36   Richardson                                 95.2%       95.1%        95.2%        94.1%        95.2%       97.0%
    37   Garland                                    94.6%       91.6%        96.8%        94.9%        95.4%       93.9%
    38   Mesquite                                   95.4%       94.3%        97.5%        95.5%        96.5%          n.a.
    39   Southwest Dallas                           91.7%       99.0%        84.1%        91.0%        88.1%       86.9%
    40   Far East Dallas                            90.6%       93.4%        98.3%        91.7%        86.6%       87.5%
    41   East University-Vickery                    93.6%       85.8%        95.0%        97.6%        94.1%       93.5%
    42   Northwest Dallas                           93.1%       94.9%          n.a.       94.9%        90.4%       91.7%
    43   West Irving                                93.2%      100.0%          n.a.       93.0%        94.2%        91.7%
    44   North Dallas                               94.1%       92.4%        93.8%        94.7%        93.9%       94.9%
    45   Far Northeast Dallas                       89.0%         n.a.         n.a.       89.2%        88.3%          n.a.
    47   Far North Dallas                           95.7%       96.9%        95.2%        95.7%          n.a.         n.a.
    48   Las Colinas/Valley Ranch                   94.6%       93.7%        96.2%        93.6%        90.6%          n.a.
         Dallas County                              93.3%       92.8%        95.0%        93.4%        93.2%       92.1%
         City of Dallas                             92.7%       92.5%        94.7%        93.0%        93.0%       91.3%
         Not in City                                94.0%       93.1%        95.4%        93.9%        93.8%       94.5%
    81   Denton                                     93.9%       92.1%        93.7%        94.3%        96.1%       99.2%
    82   Lewisville                                 94.9%       95.0%        95.1%        94.3%        99.2%       91.3%
    85   West Plano                                 94.5%       93.2%        95.5%        95.0%        92.1%       93.0%
    86   East Plano                                 95.0%       92.0%        95.3%        95.9%        95.8%          n.a.
    87   Allen/McKinney                             93.9%       93.2%        93.4%        97.2%        96.9%          n.a.
    88   North Ellis County                         92.5%       90.0%          n.a.       93.2%       100.0%          n.a.
         DALLAS AREA*                               93.5%       93.0%        95.0%        93.6%        93.4%        92.3%




                                                                                                                             76

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                           Dallas/Fort Worth
                                                                                                          Apartment Report
                                                                                                                       Occupancy

                 AVERAGE GROSS OCCUPANCY BY YEAR COMPLETED BY SUBMARKET
                                                              1st Quarter 2008
                  Submarket                               Total         2000+          90-99          80-89           70-79     Pre-70
    52    South Fort Worth                                 94.2%         96.1%          94.1%          98.9%           98.6%     89.3%
    53    Southwest Fort Worth                             93.2%         82.0%          94.1%          96.0%           99.6%     95.8%
    54    Ridglea/Ridgmar                                  96.6%           n.a.           n.a.         89.1%           96.8%     97.2%
    55    Western Hills                                    82.2%           n.a.           n.a.         90.3%           77.8%      72.5%
    56    Intown/Cultural District                         96.4%         96.9%          97.0%          87.4%           94.7%    100.0%
    58    North Fort Worth                                 87.4%         79.1%          95.3%          94.8%             n.a.       n.a.
    59    Woodhaven                                        90.3%         98.9%          96.3%          90.3%           84.2%        n.a.
    60    Centreport                                       93.0%        100.0%          95.5%          92.3%             n.a.       n.a.
    70    North Arlington                                  94.0%           n.a.         98.4%          94.3%           88.6%     97.1%
    71    South Arlington                                  94.7%         94.9%          95.1%          95.3%           94.4%     90.7%
    72    Southwest Tarrant County                         93.5%         96.8%            n.a.         94.0%           88.0%        n.a.
    73    Northwest Tarrant County                         94.7%         90.9%          96.5%          96.5%           91.2%        n.a.
    74    Northeast Tarrant County                         92.4%         88.2%          97.4%          95.1%           92.2%        n.a.
    75    Haltom City/Richland Hills                       93.9%         93.5%          96.0%          95.4%           89.1%     90.2%
    76    Hurst/Euless/Bedford                             95.7%         95.8%          97.0%          96.5%           93.0%     95.1%
          FORT WORTH AREA*                                 93.4%         90.2%          96.0%          94.5%           90.5%      92.5%
          City of Fort Worth                               91.4%         85.4%          95.0%          93.0%           86.5%      92.3%
          Not in City                                      94.5%         93.3%          96.9%          95.3%           91.8%     92.7%
          D/FW AREA*                                       93.5%         92.4%          95.2%          93.9%           92.7%      92.3%
   * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                           77

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
Forecast
Region Overview
M/PF YieldStar anticipates that apartment
occupancy in the Dallas/Fort Worth area will                                Apartment Occupancy
throttle back 0.3 points during the year-                                     Dallas/Fort Worth Area
ending March 2009, cooling to 93.2 percent.
                                                        100%
This forecast reflects scheduled completions
of 10,629 units versus anticipated demand                 95%
near 8,500 units.
                                                          90%
The net move-outs seen in 2008’s 1st
quarter cause some concern that this
demand outlook is overly optimistic, but the        85%
apartment sector does have several key
factors that still seem to work in its favor.       80%
First, economists are still calling for sizable
                                                          1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
job growth near 40,000 to 45,000 positions,
sufficient to stimulate considerable total                03 03 04 04 05 05 06 06 07 07 08 08 09
housing demand. And, the rental sector                                                                 * forecast
appears positioned to capture an atypically
large block of that total demand, since
stricter standards for mortgage qualification seem to block many would-be buyers from actually making
purchases. While traditional apartments will have to split total rental demand with for-lease single-family homes
in the shadow market inventory, these non-traditional options are assumed to have only moderate appeal. (It’s
that limited appeal for the shadow market stock that is the most dangerous assumption in the forecast: over the
past year or so, those units have captured a big chunk of total rental demand in brief periods and virtually none
at all in other times.)

On the supply side of the equation, scheduled completions of 10,600 or so units clearly will top actual inventory
growth, since the pattern of teardowns to create redevelopment sites doesn’t appear to be stopping. This
occupancy forecast assumes that demand will ease from the forecast level of 8,500 units in the same proportion
that inventory growth backs down from the schedule completion volume of 10,629 units.




                                                                                                                             78

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
Dallas Area
Forecast apartment demand in the Dallas
metro stands at 6,600 units during the year-                                Apartment Occupancy
ending March 2009, falling short of                                                 Dallas Area
scheduled deliveries totaling 8,118 units.              100%
Thus, the metro Dallas occupancy rate is
expected to slide 0.3 points over the coming
year, cooling to an early 2009 figure of 93.2            95%
percent.
                                                         90%


                                                         85%


                                                         80%
                                                               1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
                                                               03 03 04 04 05 05 06 06 07 07 08 08 09*
                                                                                                                    * forecast




Fort Worth Area
In Fort Worth, forecast demand for 1,900
apartments in the year-ending March 2009                                      Apartment Occupancy
compares to 2,511 units targeted for                                                Fort Worth Area
completion during the same time frame. As
                                                        100%
in Dallas, then, the occupancy forecast calls
for a minor decline of 0.3 points, in this case
taking the early 2009 occupancy figure down              95%
to 93.1 percent.
                                                         90%


                                                         85%


                                                         80%
                                                                1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
                                                                03 03 04 04 05 05 06 06 07 07 08 08 09*
                                                                                                                   * forecast




                                                                                                                                 79

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
Forecast: Submarket Highlights
While the overall occupancy outlook for apartments in North Texas calls for a mild occupancy decline during the
year-ending March 2009, a slight majority of neighborhoods actually seem likely to see early 2009 occupancy
equal to or improve a little from the rates recorded in early 2008. For the most part, these submarkets anticipated
to at least hold their current positioning are ones that have little or no ongoing construction activity. In contrast,
increasingly competitive leasing environments appear likely on the horizon in submarkets scheduled to receive
sizable blocks of new apartment product.

While southern Dallas submarkets currently rank among the weakest occupancy performers across North Texas,
most neighborhoods in that cluster do seem positioned for a little improvement during the year ahead, in large
part reflecting the absence of any new supply. While forecast demand is limited, backfilling of vacancies in the
existing product mix should be enough to push occupancy upward by 0.6 points across Duncanville/DeSoto/
Cedar Hill/Lancaster, Grand Prairie and North Ellis County, while occupancy bumps of 0.3 points are expected
across South Dallas and Southwest Dallas. Within this cluster of neighborhoods, only Oak Cliff should register a
drop in occupancy. The 296 apartments scheduled to finish there appear moderately beyond immediate demand
capacity, taking occupancy down 1 full percentage point during the year-ending March.

Slightly rising occupancy also seems likely to be the norm during the year-ending 1st quarter 2009 in most of the
central Dallas cluster’s individual neighborhoods. The Oak Lawn/Park Cities area, which currently is performing
under its usual rate relative to the levels in surrounding submarkets, seems to have the most upside potential:
occupancy is forecast to improve by 1.1 points. A little backfilling of today’s vacancies suggests occupancy
moving ahead by 0.4 points in Far Northeast Dallas, by 0.3 points in Far Northwest Dallas, by 0.2 points in both
East Dallas and the Highlands area, and by 0.1 point in Near North Dallas. On the other hand, demand is
forecast to fall short of the targeted completion volume in Northwest Dallas, reducing occupancy by 0.8 points,
and in the East University-Vickery area, reducing occupancy by 1.2 points. Furthermore, one of the bigger
occupancy declines anticipated across North Texas is in the Intown Dallas market, reflecting sky-high targeted
completions totaling more than 2,600 units during the year-ending March: occupancy seems likely to falter by
1.6 points.

In the eastern Dallas area, look for modest demand sufficient to lead occupancy upward by 0.4 points in Far East
Dallas and by 0.1 point in Mesquite during the year-ending March 2009. In contrast, Garland’s scheduled new
supply block appears to top demand during the coming year, so occupancy should slide by 0.9 points.

Jumping to the northern Dallas submarket cluster, North Dallas is the only neighborhood where backfilling of
current vacancies is anticipated in the year-ending 1st quarter 2009, with occupancy there expected to inch up
0.2 points. Far North Dallas and East Plano are other neighborhoods in the cluster that won’t receive new supply
during the coming year, but they aren’t expected to attract any demand either, so early 2009 occupancy should
match the early 2008 rates. With forecast demand in Richardson and West Plano registering slightly below
scheduled completions, occupancy is anticipated to dip 0.4 points in both submarkets. The gap between targeted
deliveries and expected absorption is a little larger in Allen/McKinney and Carrollton/Farmers Branch/Addison,
which are forecast to see occupancy slide around 1 full percentage point.

In the northwestern Dallas submarket cluster, East Irving and West Irving are the two neighborhoods that won’t
receive any new product during the year-ending March 2009. A little backfilling of vacancies in the existing base,
then, points to occupancy edging up 0.2 points in each area. In contrast, targeted completions slightly exceed
expected demand in Denton, where occupancy should ease 0.2 points, and in Las Colinas/Valley Ranch, where
occupancy should cool by 0.3 points. A more sizable occupancy dip of 0.9 points seems likely in Lewisville,
which will add the most new product in the northwestern Dallas submarket cluster.

                                                                                                                             80

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy
In metro Fort Worth, the Western Hills occupancy rate recently got way out of line relative to the performances
seen in surrounding areas. Moving that area’s position back toward its historical norm suggests demand
sufficient to push occupancy up 2 full percentage points in the year-ending March 2009. The only other
occupancy rise – a minor uptick of 0.1 point – anticipated in metro Fort Worth comes in the Woodhaven
submarket. That’s a little better than early 2009 occupancy matching the early 2008 readings across the
Intown/Cultural District area, Centreport, North Arlington, Southwest Tarrant County and Northwest Tarrant
County.

Select metro Fort Worth submarkets should see demand fall short of completions during the year-ending March
2009, while a few others that won’t be adding new supply are likely to suffer mild net move-outs. The result is
declining occupancy. The rate is forecast to fall by 0.2 points on an annual basis in South Arlington and Hurst/
Euless/Bedford and by 0.3 points in Northeast Tarrant County and Haltom City/Richland Hills. A decline of 0.5
points seems likely for Southwest Fort Worth, while the drop is anticipated at 0.8 points in South Fort Worth.
Ridglea/Ridgmar’s anticipated occupancy loss comes in at 1.2 points. While that may seem large, the sizable
shift really just reflects that existing inventory is so small: net move-outs are forecast, but they are minor. Finally,
North Fort Worth seems likely to suffer the biggest drop in occupancy across metro Fort Worth. The occupancy
figure should slide by almost 3 points during the year-ending March 2009, with this softening reflecting that
scheduled deliveries (1,072 units) are so substantial.

Following these occupancy shifts, seven D/FW submarkets are expected to register 1st quarter 2009 occupancy
at or above 95 percent. Fort Worth’s Intown/Cultural District seems likely to lead the way, with occupancy
forecast at 96.4 percent. Anticipated occupancy ranges between 95 percent and 95.7 percent across Far North
Dallas, Mesquite, Hurst/Euless/Bedford, Ridglea/Ridgmar, Far Northwest Dallas and East Plano. Neighborhoods
expected to just miss that essentially full occupancy rate of 95 percent in early 2009 are Richardson, Near North
Dallas, Northwest Tarrant County and South Arlington.

Looking at the region’s weaker achievers, occupancy in early 2009 should still be below the 90 percent mark in
Western Hills, North Fort Worth, South Dallas, Far Northeast Dallas, while Oak Cliff, Woodhaven and
Duncanville/DeSoto/Cedar Hill/ Lancaster are expected to have occupancy rates only a little above that mark.




                                                                                                                             81

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                        Occupancy

                                GROSS OCCUPANCY FORECAST BY SUBMARKET
                                                   1st Quarter 2009
                                           Occ.   Forecast                                                Occ.      Forecast
              Submarket                  Forecast Change                 Submarket                      Forecast    Change
  21   Intown Dallas                      92.7%     -1.6      81 Denton                                  93.7%        -0.2
  22   South Dallas                       88.9%      0.3      82 Lewisville                              94.0%        -0.9
  24   Oak Cliff                          90.4%     -1.0      85 West Plano                              94.1%        -0.4
  25   Dunc/DeSoto/CH/Lancaster           90.9%      0.6      86 East Plano                              95.0%         0.0
  26   Grand Prairie                      93.3%      0.6      87 Allen/McKinney                          93.0%        -0.9
  27   East Irving                        94.3%      0.2      88 North Ellis County                      93.1%         0.6
  29   Oak Lawn/Park Cities               92.7%      1.1          DALLAS AREA                            93.2%        -0.3
  30   Far Northwest Dallas               95.0%      0.3      52 South Fort Worth                        93.4%        -0.8
  31   Carrollton/FB/Addison              93.5%     -1.0      53 Southwest Fort Worth                    92.7%        -0.5
  32   Near North Dallas                  94.7%      0.1      54 Ridglea/Ridgmar                         95.4%        -1.2
  34   East Dallas                        91.4%      0.2      55 Western Hills                           84.2%         2.0
  35   Highlands                          92.8%      0.2      56 Intown/Cultural District                96.4%         0.0
  36   Richardson                         94.8%     -0.4      58 North Fort Worth                        84.6%        -2.8
  37   Garland                            93.7%     -0.9      59 Woodhaven                               90.4%         0.1
  38   Mesquite                           95.5%     0.1       60 Centreport                              93.0%         0.0
  39   Southwest Dallas                   92.0%      0.3      70 North Arlington                         94.0%         0.0
  40   Far East Dallas                    91.0%      0.4      71 South Arlington                         94.5%        -0.2
  41   East University-Vickery            92.4%     -1.2      72 Southwest Tarrant County                93.5%         0.0
  42   Northwest Dallas                   92.3%     -0.8      73 Northwest Tarrant County                94.7%         0.0
  43   West Irving                        93.4%      0.2      74 Northeast Tarrant County                92.1%        -0.3
  44   North Dallas                       94.3%     0.2       75 Haltom City/Richland Hills              93.6%        -0.3
  45   Far Northeast Dallas               89.4%      0.4      76 Hurst/Euless/Bedford                    95.5%        -0.2
  47   Far North Dallas                   95.7%      0.0          FORT WORTH AREA                        93.1%        -0.3
  48   Las Colinas/Valley Ranch           94.3%     -0.3          D/FW AREA                              93.2%        -0.3




                                                                                                                             82

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents



Region Overview
While North Texas’ apartment occupancy
rate came down a bit from its December                               Annual Same-Store Rent Change
reading, operators continued raising rents at
                                                                               Dallas/Fort Worth Area
a solid clip. Effective rates rose 3.6 percent
across the Dallas/Fort Worth region during               5%
the year-ending March, measuring change                  4%
on a same-store basis. Though notable,                   3%
rent change registered a bit below consumer
                                                         2%
price inflation, which has been rising quite
rapidly due to mounting energy costs.                    1%
According to the Bureau of Labor Statistics,             0%
the general price inflation rate in North
                                                         -1%
Texas rose 4.3 percent in the year-ending
January 2008. Reflecting the rapid                       -2%
acceleration in consumer prices, annual                  -3%
inflation registered at just 0.2 percent as of           -4%
January 2007.                                                  1Q   3Q    1Q    3Q    1Q    3Q   1Q    3Q    1Q    3Q    1Q
                                                               03   03    04    04    05    05   06    06    07    07    08
Helping effective rent growth in D/FW gain
some footing, use of concessions was
curtailed quite a bit at the start of 2008. Concessions were reported for 38 percent of the region’s product
surveyed by M/PF YieldStar in 1st quarter 2008, with this figure down from the 49 percent share of properties
reporting concessions a year ago. The size of the typical discount in March was 8 percent.

Dallas/Fort Worth’s rent growth pace over the past year essentially matched the national norm. According to
preliminary results from a 1st quarter sample of roughly 2.9 million units surveyed across the country, effective
rents were up 3.4 percent for the U.S. as a whole. Measuring change on a same-store basis, rent increases in
the South region registered at a smaller 2.5 percent during the year-ending March, by far the weakest
performance in any part of the country. Shaping this trend, the previously high-flying Florida metros are
experiencing a correction in price positioning. Looking at the other Texas metros, rent hikes were largely pretty
healthy, coming in at 4.1 percent in Austin, 3.6 percent in El Paso and 3.5 percent in Houston. In contrast,
preliminary results in San Antonio showed rents going up at a more restrained rate of 1.4 percent.

Overall rents for Dallas/Fort Worth metro apartments averaged $749 per month, or 88.1¢ per square foot, as of
March 2008.




                                                                                                                              83

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents

Dallas Area
Similar to the overall trend seen in North
Texas as a whole, rent growth in the Dallas
                                                                     Annual Same-Store Rent Change
area continued to hold up, despite weak
                                                                                     Dallas Area
apartment demand and cooling occupancy
in early 2008. Annual same-store rent                     5%
growth during the year-ending March                       4%
registered at a solid 3.8 percent, just a                 3%
shade under last quarter’s annual rent hike               2%
of 4 percent, which was a six year high.                  1%
                                                          0%
Concessions were reported at 38 percent of
the product surveyed in Dallas during 1st                -1%
quarter 2008, compared to a 47 percent                   -2%
share one year ago. At 8 percent in March,               -3%
the size of the typical concession was down              -4%
from the 10 percent figure recorded one
                                                               1Q    3Q   1Q    3Q    1Q    3Q   1Q     3Q   1Q    3Q    1Q
year ago. This is the smallest concession
                                                               03    03   04    04    05    05   06     06   07    07    08
figure recorded since fall 2002.

As of March 2008, average monthly rates for
the total sample in Dallas stood at $774,
while square-foot rents averaged 90.6¢.


Fort Worth Area
Fort Worth operators started calendar 2008
by implementing another solid rent hike.                             Annual Same-Store Rent Change
Monthly rents in Fort Worth’s apartment
                                                                                  Fort Worth Area
market rose 3.3 percent on a common
sample basis from early 2007 to early 2008.              4%
This was one of the metro’s biggest annual               3%
rent hikes since fall 2001.                              2%
                                                         1%
The share of surveyed product in Fort Worth
offering concessions during 1st quarter 2008              0%
stood at roughly 37 percent, down from the               -1%
51 percent share reported in early 2007.                 -2%
The typical discount reduces effective rent              -3%
by 8 percent.
                                                         -4%

Fort Worth’s average monthly rents for the                     1Q    3Q   1Q    3Q    1Q    3Q     1Q   3Q   1Q    3Q    1Q
total sample registered at $678 in early                       03    03   04    04    05    05     06   06   07    07    08
2008, while square-foot rents averaged
81.3¢.




                                                                                                                              84

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents

Rents by Age
Healthy upturns in effective rents were seen
across the various property age segments in
North Texas during the past year. In fact, all
                                                                    Annual Same-Store Rent Change
product age niches in D/FW realized solid                                by Age of Community
pricing bumps of roughly 3 percent or more.                                   Dallas/Fort Worth Area
                                                         5%
In a surprise performance, D/FW’s rapidly
expanding block of brand new communities                 4%
turned in the strongest rent growth over the
past year. Effective rents in product built              3%
since 2000 rose 4.1 percent in the year-
ending March. Really influencing this                    2%
increase, Fort Worth recorded annual rent
growth at a whopping 5.9 percent in the
                                                         1%
2000s product, while Dallas’ expansion came
in at 3.4 percent. With March occupancy in
the newer communities registering                        0%
meaningfully below the regional norm, sizable                    2000+       1990s       1980s       1970s     Pre-1970
rent increases seemed a little aggressive.

At the next tier of performance, rent growth around 3 to 4 percent was recorded in the middle- to bottom-tier
communities. In the dominant stock of 1980s-vintage units, rents climbed 3.8 percent, followed by a 3.4 percent
increase in the 1970s projects and a 3.2 percent boost in the oldest block of units built before 1970. With
occupancy in this oldest collection of properties sinking to a comparatively low rate of 92.3 percent as of early
2008, an even milder increase may have been more appropriate.

At the bottom end of performance, annual rent growth in the 1990s-generation communities came in at 2.8
percent. North Texas’ 1990s-era projects posted the strongest occupancy rate at 95.2 percent as of March.
Thus, a more aggressive pricing strategy in this age category certainly would have been tolerated.




                                          Annual Same-Store Rent Change
                                              by Age of Community
                                                      1st Quarter 2008
                         Metro               2000+        1990s        1980s         1970s  Pre-1970
                   Dallas Area                 3.4%         3.1%         4.3%          3.2%     3.1%
                   Fort Worth Area             5.9%         1.8%         3.0%          4.2%     3.4%
                   D/FW Area                   4.1%         2.8%         3.8%          3.4%     3.2%




                                                                                                                             85

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents

The Dallas/Fort Worth area’s apartments
built since 2000 generate rents about 9
percent higher than their counterparts from                        Apartment Rent By Age of Community
the 1990s. The 1990s projects produce                                          Dallas/Fort Worth Area
rents a more dramatic 43 percent above                 $1,025
rates at 1980s communities.
                                                         $925
As of 1st quarter 2008, average rents in the
North Texas apartment market registered as
follows:                                                 $825

•   $1,007/month, or $1.034/sq ft, for                   $725
    product completed since 2000,
•   $923/month, or $1.001/sq ft, for 1990s
    communities,                                         $625
•   $646/month, or 82.5¢/sq ft, in 1980s
    stock,                                               $525
•   $623/month, or 76.1¢/sq ft, in 1970s                           2000+      1990s       1980s       1970s     Pre-1970
    properties, and
•   $616/month, or 76.3¢/sq ft, in product
    finished before 1970.



Rents by Floor Plan
Rental rates as of March 2008 for Dallas/Fort Worth’s diverse selection of floor plans were affordable when
compared to the pricing in many other markets nationwide. Efficiency unit rental rates averaged $493 a month,
or $1.044/sq ft, while rates in D/FW’s large selection of one-bedroom apartments averaged $647 per month, or
93.6¢/sq ft. Rental rates in D/FW’s two-bedroom units averaged $834 per month, or 83.4¢/sq ft, while rental
rates in three-bedroom apartments averaged $1,078 monthly, or 84¢/sq ft.




                                                                                                                             86

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents

Submarket Highlights
Illustrating just how widespread rent increases were in the Dallas/Fort Worth region, 43 of the 45 North Texas
submarkets reported at least a little rent growth during the year-ending March 2008. In fact, nearly half of the
region’s neighborhoods registered rent increases that topped the 4 percent mark.

Some of the biggest rent hikes registered in Dallas’ more northern neighborhoods. Effective rents surged a
region-leading 9.2 percent in East Plano. Also logging a meaningful boost was the Richardson area where rates
expanded 6.7 percent in the past year. Recording solid same-store rent increases right around the 4.5 percent
mark were the Far North Dallas and West Plano submarkets. A comparatively more restrained annual same-
store rent increase of 3.2 percent was seen in the Allen/McKinney area. All of these north Dallas neighborhoods
registered occupancy rates that topped the regional average as of March, so above-average rent growth was
well-tolerated. However, large blocks of new supply and rising construction levels in West Plano and Allen/
McKinney will likely result in a more restrained rent positioning strategy in the near term.

Several central Dallas neighborhoods also reported solid rent achievement in the past year. Effective rent
growth topped the 6 percent mark in three of the nine central Dallas submarkets, landing these neighborhoods
on North Texas’ annual rent growth leader board as of March. This group included East Dallas (9 percent),
Near North Dallas (6.9 percent) and the Highlands area (6.7 percent). It made little sense for operators to
implement such meaningful hikes in the East Dallas and Highlands locales, since occupancy rates as of early
2008 were subpar in both neighborhoods. Better-than-average rent expansion also was seen in East
University-Vickery (5.1 percent), Far Northeast Dallas (4.6 percent) and Far Northwest Dallas (3.9 percent).

In contrast, there were a handful of weak performers in the central Dallas region. Rent change below the
regional norm was reported in the Intown Dallas (2.9 percent) and Oak Lawn/Park Cities (2.2 percent)
submarkets, while Northwest Dallas actually witnessed the region’s largest rent decline at -2.1 percent. Intown
Dallas’ below-average rent hike was not very surprising. Though 1st quarter occupancy in this desirable
submarket was solid at 94.3 percent, Intown’s rent growth performance was likely held back by a number of new
and fairly expensive projects that are still building their initial resident base. Furthermore, property operators in
this area are likely bracing for the huge block of new apartment supply scheduled to come online in the near
term.

The majority of Fort Worth submarkets logged healthy rent growth of more than 3 percent in the past year. At
the top end of the spectrum, rent achievement topped roughly 6 percent in three of the metro’s 15
neighborhoods, placing these locales among the region’s top 10 annual rent growth performers as of March.
Common sample rental rates surged 8.1 percent in North Fort Worth, 6.8 percent in Northeast Tarrant County
and 5.8 percent in Western Hills. Among Fort Worth’s other top performers, rates increased 5.3 percent in
Ridglea/Ridgmar, 4.8 percent in Southwest Tarrant County and 4 percent in the Intown/Cultural District. For the
most part, these rent hikes were out of line with the occupancy showings. In fact, North Fort Worth, Northeast
Tarrant County, Western Hills and Southwest Tarrant County all witnessed harsh occupancy drops over the past
year, leaving early 2008 occupancy rates below the metro average in all four locales. The steep hike in North
Fort Worth was especially surprising, given the elevated levels of apartment construction (more than 700
apartments were delivered here in the past year and another 1,380 units are on the way). On the flip side,
occupancy rates topped a tight 96 percent in both Ridglea/Ridgmar and the Intown/Cultural District, so the rent
boost in both areas made sense.

Turning to the northwestern Dallas submarket cluster, Las Colinas/Valley Ranch was the only submarket to
make it on the region’s rent growth leader board. Common sample rents here rose 6.3 percent between early

                                                                                                                             87

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents

2007 and early 2008. While this was a surprising performance for an area receiving so much new apartment
product, these deliveries have leased quite well. Apartment owners and operators thus recognized the areas’
increased desirability and reacted accordingly by pushing rents upward. Relatively strong occupancy
performances also led to above-average rent expansion in the nearby neighborhoods of Denton (4.8 percent),
East Irving (4.7 percent) and West Irving (4.6 percent).

Two of the six neighborhoods in the southern Dallas cluster recorded rent growth that topped the regional
average during the year-ending March. At the top end, North Ellis County logged a 5.8 percent boost in the past
year, with this performance landing the submarket a place on the list of top rent achievers in the region. This
pricing strategy may have been too aggressive however, as occupancy in the submarket dropped 2.2 points on
an annual basis to land at just 92.5 percent as of March. Similarly, the 4.2 percent rent hike in Oak Cliff seemed
out of line relative to the submarket’s subpar occupancy performance.

Rent change was clustered around 3 to 5 percent among the three eastern Dallas submarkets. Same-store rent
growth came in at 4.6 percent in Mesquite and 3 percent in both Garland and Far East Dallas. Healthy rent
increases corresponded to tight occupancy rates in both Mesquite and Garland.

Intown Dallas’ average rental rates as of March 2008 stood at $1,307 per month, the highest in the Dallas/Fort
Worth region by a large margin. Coming in at a distant second place in the D/FW area was Fort Worth’s
Intown/Cultural District, where typical rental rates as of 1st quarter were $999.

Monthly average rents for product built since 2000 were highest in Near North Dallas ($1,630) and North Dallas
($1,600).




                                                                                                                             88

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents


                                             SAME-STORE RENT CHANGE
                                           1st Quarter 2007 - 1st Quarter 2008
                                        1Q 2008 Avg     %                                               1Q 2008 Avg    %
             Submarket                  Monthly Rent Change                 Submarket                   Monthly Rent Change
21   Intown Dallas                         $1,307       2.9%      81   Denton                               $814        4.8%
22   South Dallas                           $673        1.6%      82   Lewisville                           $786        1.7%
24   Oak Cliff                              $686        4.2%      85   West Plano                           $904        4.5%
25   Dunc/DeSoto/CH/Lancaster               $703        2.9%      86   East Plano                           $830        9.2%
26   Grand Prairie                          $731        1.3%      87   Allen/McKinney                       $850        3.2%
27   East Irving                            $609        4.7%      88   North Ellis County                   $622        5.8%
29   Oak Lawn/Park Cities                   $948        2.2%           DALLAS AREA                          $774         3.8%
30   Far Northwest Dallas                   $739        3.9%      52   South Fort Worth                     $578        3.6%
31   Carrollton/FB/Addison                  $813        1.6%      53   Southwest Fort Worth                 $709        3.8%
32   Near North Dallas                      $890        6.9%      54   Ridglea/Ridgmar                      $579        5.3%
34   East Dallas                            $742        9.0%      55   Western Hills                        $550        5.8%
35   Highlands                              $634        6.7%      56   Intown/Cultural District             $999        4.0%
36   Richardson                             $883        6.7%      58   North Fort Worth                     $830        8.1%
37   Garland                                $682        3.0%      59   Woodhaven                            $577        3.3%
38   Mesquite                               $699        4.6%      60   Centreport                           $620        -0.3%
39   Southwest Dallas                       $644        2.6%      70   North Arlington                      $637        2.9%
40   Far East Dallas                        $624        3.0%      71   South Arlington                      $659        1.7%
41   East University-Vickery                $771        5.1%      72   Southwest Tarrant County             $652        4.8%
42   Northwest Dallas                       $632        -2.1%     73   Northwest Tarrant County             $562        2.7%
43   West Irving                            $637        4.6%      74   Northeast Tarrant County             $854        6.8%
44   North Dallas                           $770        0.1%      75   Haltom City/Richland Hills           $696        1.4%
45   Far Northeast Dallas                   $567        4.6%      76   Hurst/Euless/Bedford                 $710        3.4%
47   Far North Dallas                       $731        4.6%           FORT WORTH AREA                      $678         3.3%
48   Las Colinas/Valley Ranch               $944        6.3%           D/FW AREA                            $749         3.6%




                                                                                                                             89

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents


                    AVERAGE MONTHLY RENT BY BEDROOM TYPE BY SUBMARKET
                                                      1st Quarter 2008
                       Submarket                        Total           Eff          One           Two          Three
       21   Intown Dallas                                $1,307          $801        $1,085        $1,577        $1,955
       22   South Dallas                                   $673          $712          $511          $726          $783
       24   Oak Cliff                                      $686          $460          $620          $719          $884
       25   Dunc/DeSoto/CH/Lancaster                       $703          $575          $618          $759          $962
       26   Grand Prairie                                  $731          $482          $616          $802        $1,059
       27   East Irving                                    $609          $461          $528          $640          $828
       29   Oak Lawn/Park Cities                           $948          $511          $816        $1,166        $1,922
       30   Far Northwest Dallas                           $739          $488          $642          $796        $1,006
       31   Carrollton/FB/Addison                          $813          $542          $711          $865        $1,280
       32   Near North Dallas                              $890          $450          $732        $1,071        $1,606
       34   East Dallas                                    $742          $654          $679          $882        $1,024
       35   Highlands                                      $634          $480          $556          $716          $867
       36   Richardson                                     $883            n.a.        $787          $917        $1,059
       37   Garland                                        $682          $455          $602          $744          $935
       38   Mesquite                                       $699          $500          $609          $774          $931
       39   Southwest Dallas                               $644          $474          $546          $679          $839
       40   Far East Dallas                                $624          $471          $548          $706          $816
       41   East University-Vickery                        $771          $467          $703          $901        $1,202
       42   Northwest Dallas                               $632          $427          $539          $794        $1,107
       43   West Irving                                    $637          $485          $566          $724          $951
       44   North Dallas                                   $770          $484          $643          $915        $1,273
       45   Far Northeast Dallas                           $567          $448          $505          $684          $787
       47   Far North Dallas                               $731          $489          $644          $894        $1,160
       48   Las Colinas/Valley Ranch                       $944            n.a.        $810        $1,052        $1,374
            Dallas County                                  $759          $507          $661          $854        $1,074
            City of Dallas                                 $759          $511          $660          $876        $1,074
            Not in City                                    $760          $489          $663          $830        $1,073
       81   Denton                                         $814          $463          $606          $798        $1,373
       82   Lewisville                                     $786          $510          $674          $856        $1,107
       85   West Plano                                     $904          $614          $767          $974        $1,312
       86   East Plano                                     $830          $575          $728          $857        $1,036
       87   Allen/McKinney                                 $850            n.a.        $714          $897        $1,246
       88   North Ellis County                             $622          $561          $558          $641          $705
            DALLAS AREA*                                   $774          $506          $668          $861        $1,117




                                                                                                                             90

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                          Dallas/Fort Worth
                                                                                                         Apartment Report
                                                                                                                              Rents


                      AVERAGE MONTHLY RENT BY BEDROOM TYPE BY SUBMARKET
                                                             1st Quarter 2008
                       Submarket                               Total              Eff            One              Two      Three
       52   South Fort Worth                                      $578             $437            $534             $613      $737
       53   Southwest Fort Worth                                  $709             $413            $608             $802    $1,082
       54   Ridglea/Ridgmar                                      $579              $395            $501             $648      $813
       55   Western Hills                                        $550              $400            $459             $607      $780
       56   Intown/Cultural District                             $999              $916            $882           $1,125    $1,222
       58   North Fort Worth                                      $830               n.a.          $699             $886    $1,147
       59   Woodhaven                                            $577              $374            $499             $674      $828
       60   Centreport                                           $620              $403            $548             $770    $1,174
       70   North Arlington                                      $637              $456            $568             $739      $869
       71   South Arlington                                      $659              $425            $574             $727      $870
       72   Southwest Tarrant County                             $652                n.a.          $592             $711      $982
       73   Northwest Tarrant County                             $562              $430            $500             $613      $825
       74   Northeast Tarrant County                             $854              $454            $740             $952    $1,074
       75   Haltom City/Richland Hills                           $696              $398            $583             $764    $1,142
       76   Hurst/Euless/Bedford                                 $710              $475            $613             $795    $1,087
            FORT WORTH AREA*                                      $678             $457            $588             $761      $972
            City of Fort Worth                                    $673             $486            $579             $756      $975
            Not in City                                           $681             $445            $594             $763      $970
            D/FW AREA*                                            $749             $493            $647             $834    $1,078
     * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                     91

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents


                   AVERAGE MONTHLY RENT BY YEAR COMPLETED BY SUBMARKET
                                                      1st Quarter 2008
                 Submarket                        Total        2000+          90-99         80-89         70-79        Pre-70
 21   Intown Dallas                                $1,307       $1,450         $1,225        $1,089           n.a.       $660
 22   South Dallas                                   $673       $1,107           $517          $565          $533        $562
 24   Oak Cliff                                      $686         $847            n.a.         $593          $628        $597
 25   Dunc/DeSoto/CH/Lancaster                       $703         $933           $784          $667          $605         n.a.
 26   Grand Prairie                                  $731         $872           $817          $577          $730        $629
 27   East Irving                                    $609          n.a.           n.a.         $579          $636        $590
 29   Oak Lawn/Park Cities                           $948       $1,416         $1,065          $794           n.a.       $669
 30   Far Northwest Dallas                           $739       $1,128            n.a.          n.a.         $702        $713
 31   Carrollton/FB/Addison                          $813       $1,057           $876          $724          $684        $600
 32   Near North Dallas                              $890       $1,630         $1,285          $917          $606        $934
 34   East Dallas                                    $742       $1,063           $993          $726          $679        $599
 35   Highlands                                      $634          n.a.           n.a.         $648          $596        $660
 36   Richardson                                     $883         $979           $978          $782          $737        $627
 37   Garland                                        $682         $888           $974          $640          $612        $614
 38   Mesquite                                       $699         $885           $897          $648          $629         n.a.
 39   Southwest Dallas                               $644         $788           $614          $596          $579        $685
 40   Far East Dallas                                $624         $824           $869          $555          $539        $606
 41   East University-Vickery                        $771       $1,289         $1,026          $902          $656        $752
 42   Northwest Dallas                               $632       $1,074            n.a.         $527          $538        $580
 43   West Irving                                    $637         $800            n.a.         $643          $604        $543
 44   North Dallas                                   $770       $1,600         $1,021          $669          $664        $588
 45   Far Northeast Dallas                           $567          n.a.           n.a.         $560          $593         n.a.
 47   Far North Dallas                               $731         $850           $831          $653           n.a.        n.a.
 48   Las Colinas/Valley Ranch                       $944       $1,098           $979          $817          $995         n.a.
      Dallas County                                  $759       $1,077           $965          $658          $637        $628
      City of Dallas                                 $759       $1,161           $984          $639          $626        $638
      Not in City                                    $760         $977           $940          $677          $659        $599
 81   Denton                                         $814       $1,186           $835          $641          $604        $771
 82   Lewisville                                     $786         $913           $792          $664          $708        $573
 85   West Plano                                     $904       $1,016           $905          $796          $729        $825
 86   East Plano                                     $830         $823           $924          $748          $698         n.a.
 87   Allen/McKinney                                 $850         $935           $767          $692          $634         n.a.
 88   North Ellis County                             $622         $660            n.a.         $607          $665          n.a.
      DALLAS AREA*                                   $774       $1,033           $928          $663          $638        $633




                                                                                                                             92

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                            Dallas/Fort Worth
                                                                                                           Apartment Report
                                                                                                                                 Rents


                      AVERAGE MONTHLY RENT BY YEAR COMPLETED BY SUBMARKET
                                                               1st Quarter 2008
                  Submarket                               Total           2000+            90-99            80-89     70-79      Pre-70
 52    South Fort Worth                                     $578             $676             $683             $585      $492      $564
 53    Southwest Fort Worth                                 $709             $825           $1,009             $600      $562      $591
 54    Ridglea/Ridgmar                                      $579              n.a.             n.a.            $400      $462      $663
 55    Western Hills                                        $550              n.a.             n.a.            $537      $573      $524
 56    Intown/Cultural District                             $999           $1,260           $1,087             $512      $682      $518
 58    North Fort Worth                                     $830             $928             $793             $639       n.a.       n.a.
 59    Woodhaven                                            $577             $810             $660             $565      $519       n.a.
 60    Centreport                                           $620             $899             $841             $578       n.a.       n.a.
 70    North Arlington                                      $637              n.a.            $884             $623      $582      $556
 71    South Arlington                                      $659             $819             $951             $603      $596      $572
 72    Southwest Tarrant County                             $652             $848              n.a.            $629      $537        n.a.
 73    Northwest Tarrant County                             $562             $812             $648             $527      $495       n.a.
 74    Northeast Tarrant County                             $854             $995             $889             $755      $612       n.a.
 75    Haltom City/Richland Hills                           $696             $897             $882             $599      $570      $555
 76    Hurst/Euless/Bedford                                 $710             $968             $861             $663      $617      $558
       FORT WORTH AREA*                                     $678             $908             $900             $610      $579      $572
       City of Fort Worth                                   $673             $916             $941             $576      $536      $583
       Not in City                                          $681             $903             $868             $628      $592      $564
       D/FW AREA*                                           $749           $1,007             $923             $646      $623      $616
* So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                      93

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents


                        AVERAGE RENT PER SQUARE FOOT BY BEDROOM TYPE
                                        1st Quarter 2008
                                                          $ Per Square Foot
                    Submarket                Total        Eff      One         Two                                Three
      21    Intown Dallas                  $1.378     $1.605     $1.418     $1.352                               $1.279
      22    South Dallas                   $0.763     $1.512     $0.796     $0.780                               $0.657
      24    Oak Cliff                      $0.804     $1.246     $0.895     $0.749                               $0.747
      25    Dunc/DeSoto/CH/Lancaster       $0.812     $0.920     $0.861     $0.774                               $0.836
      26    Grand Prairie                  $0.847     $0.882     $0.896     $0.813                               $0.829
      27    East Irving                    $0.762     $1.247     $0.839     $0.715                               $0.746
      29    Oak Lawn/Park Cities           $1.133     $1.137     $1.151     $1.100                               $1.239
      30    Far Northwest Dallas           $0.795     $1.061     $0.872     $0.774                               $0.678
      31    Carrollton/FB/Addison          $0.900     $1.058     $0.962     $0.850                               $0.927
      32    Near North Dallas              $1.054     $0.994     $1.085     $1.000                               $1.147
      34    East Dallas                    $1.030     $1.275     $1.044     $0.947                               $1.106
      35    Highlands                      $0.784     $0.970     $0.842     $0.739                               $0.706
      36    Richardson                     $0.901        n.a.    $1.041     $0.859                               $0.779
      37    Garland                        $0.814     $0.992     $0.866     $0.777                               $0.777
      38    Mesquite                       $0.828     $0.967     $0.889     $0.794                               $0.735
      39    Southwest Dallas               $0.744     $0.939     $0.804     $0.716                               $0.698
      40    Far East Dallas                $0.782     $0.942     $0.844     $0.734                               $0.707
      41    East University-Vickery        $0.982     $1.066     $1.038     $0.917                               $0.923
      42    Northwest Dallas               $0.818     $0.891     $0.836     $0.788                               $0.816
      43    West Irving                    $0.804     $0.938     $0.844     $0.764                               $0.771
      44    North Dallas                   $0.905     $1.048     $0.932     $0.875                               $0.894
      45    Far Northeast Dallas           $0.756     $0.889     $0.777     $0.733                               $0.634
      47    Far North Dallas               $0.934     $1.159     $0.971     $0.886                               $0.872
      48    Las Colinas/Valley Ranch       $1.035        n.a.    $1.094     $0.991                               $1.009
            Dallas County                  $0.900     $1.077     $0.957     $0.851                               $0.829
            City of Dallas                 $0.918     $1.099     $0.969     $0.867                               $0.823
            Not in City                    $0.873     $0.990     $0.935     $0.831                               $0.836
      81    Denton                         $0.982     $1.164     $0.949     $0.880                               $1.181
      82    Lewisville                     $0.904     $1.035     $0.965     $0.865                               $0.879
      85    West Plano                     $0.957     $1.090     $1.013     $0.917                               $0.949
      86    East Plano                     $0.917     $1.021     $1.025     $0.882                               $0.843
      87    Allen/McKinney                 $0.914        n.a.    $0.991     $0.864                               $0.941
      88    North Ellis County             $0.719     $1.147     $0.853     $0.688                               $0.612
            DALLAS AREA*                   $0.906     $1.083     $0.962     $0.856                               $0.866




                                                                                                                             94

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                           Dallas/Fort Worth
                                                                                                          Apartment Report
                                                                                                                           Rents


                        AVERAGE RENT PER SQUARE FOOT BY BEDROOM TYPE
                                        1st Quarter 2008
                                                          $ Per Square Foot
                    Submarket                Total        Eff      One         Two                                       Three
      52    South Fort Worth               $0.755     $0.931     $0.830     $0.701                                      $0.669
      53    Southwest Fort Worth           $0.849     $0.858     $0.902     $0.801                                      $0.823
      54    Ridglea/Ridgmar                $0.678     $0.775     $0.737     $0.646                                      $0.602
      55    Western Hills                  $0.643     $0.780     $0.679     $0.618                                      $0.623
      56    Intown/Cultural District       $1.117     $1.593     $1.183     $1.051                                      $1.020
      58    North Fort Worth               $0.896        n.a.    $0.995     $0.851                                      $0.835
      59    Woodhaven                      $0.703     $0.703     $0.735     $0.675                                      $0.683
      60    Centreport                     $0.867     $0.820     $0.895     $0.820                                      $0.952
      70    North Arlington                $0.798     $0.968     $0.845     $0.753                                      $0.684
      71    South Arlington                $0.798     $0.920     $0.873     $0.759                                      $0.717
      72    Southwest Tarrant County       $0.789        n.a.    $0.839     $0.737                                      $0.807
      73    Northwest Tarrant County       $0.720     $0.956     $0.785     $0.666                                      $0.684
      74    Northeast Tarrant County       $0.961     $1.212     $1.002     $0.939                                      $0.891
      75    Haltom City/Richland Hills     $0.815     $1.003     $0.854     $0.776                                      $0.844
      76    Hurst/Euless/Bedford           $0.831     $0.910     $0.872     $0.796                                      $0.834
            FORT WORTH AREA*               $0.813     $0.937     $0.865     $0.772                                      $0.767
            City of Fort Worth             $0.807     $0.931     $0.858     $0.760                                      $0.762
            Not in City                    $0.816     $0.940     $0.869     $0.778                                      $0.770
            D/FW AREA*                     $0.881     $1.044     $0.936     $0.834                                      $0.840
     * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                 95

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents


                       AVERAGE RENT PER SQUARE FOOT BY YEAR COMPLETED
                                        1st Quarter 2008
                                                         $ Per Square Foot
               Submarket                             Total      2000+          90-99         80-89        70-79       Pre-70
 21    Intown Dallas                               $1.378       $1.451        $1.316        $1.542          n.a.      $0.904
 22    South Dallas                                $0.763       $0.881        $0.870        $0.724       $0.663       $0.729
 24    Oak Cliff                                   $0.804       $0.925           n.a.       $0.725       $0.716       $0.749
 25    Dunc/DeSoto/CH/Lancaster                    $0.812       $0.980        $0.821        $0.790       $0.730          n.a.
 26    Grand Prairie                               $0.847       $0.918        $0.916        $0.754       $0.713       $0.714
 27    East Irving                                 $0.762          n.a.          n.a.       $0.718       $0.755       $0.779
 29    Oak Lawn/Park Cities                        $1.133       $1.399        $1.224        $1.098          n.a.      $0.888
 30    Far Northwest Dallas                        $0.795       $1.210           n.a.          n.a.      $0.754       $0.783
 31    Carrollton/FB/Addison                       $0.900       $1.075        $0.915        $0.825       $0.821       $0.743
 32    Near North Dallas                           $1.054       $1.314        $1.270        $1.155       $0.848       $0.944
 34    East Dallas                                 $1.030       $1.233        $1.339        $1.036       $0.830       $0.880
 35    Highlands                                   $0.784          n.a.          n.a.       $0.856       $0.708       $0.717
 36    Richardson                                  $0.901       $1.016        $1.038        $0.689       $0.719       $0.685
 37    Garland                                     $0.814       $0.999        $0.998        $0.779       $0.721       $0.831
 38    Mesquite                                    $0.828       $0.997        $1.021        $0.803       $0.683          n.a.
 39    Southwest Dallas                            $0.744       $0.767        $0.729        $0.754       $0.681       $0.797
 40    Far East Dallas                             $0.782       $0.859        $1.001        $0.798       $0.656       $0.709
 41    East University-Vickery                     $0.982       $1.368        $1.012        $1.098       $0.889       $0.908
 42    Northwest Dallas                            $0.818       $1.138           n.a.       $0.759       $0.733       $0.700
 43    West Irving                                 $0.804       $0.850           n.a.       $0.813       $0.734       $0.820
 44    North Dallas                                $0.905       $1.163        $1.058        $0.867       $0.839       $0.698
 45    Far Northeast Dallas                        $0.756          n.a.          n.a.       $0.758       $0.750          n.a.
 47    Far North Dallas                            $0.934       $1.047        $0.970        $0.891          n.a.         n.a.
 48    Las Colinas/Valley Ranch                    $1.035       $1.142        $1.028        $0.986       $0.905          n.a.
       Dallas County                               $0.900       $1.098        $1.048        $0.840       $0.785       $0.791
       City of Dallas                              $0.918       $1.156        $1.090        $0.856       $0.799       $0.798
       Not in City                                 $0.873       $1.030        $0.995        $0.824       $0.755       $0.771
 81    Denton                                      $0.982       $1.198        $0.903        $0.897       $0.742       $0.894
 82    Lewisville                                  $0.904       $0.989        $0.868        $0.846       $0.891       $0.894
 85    West Plano                                  $0.957       $1.002        $0.978        $0.890       $0.853       $0.754
 86    East Plano                                  $0.917       $0.872        $1.051        $0.817       $0.756          n.a.
 87    Allen/McKinney                              $0.914       $0.962        $0.842        $0.849       $0.765          n.a.
 88    North Ellis County                          $0.719       $0.624           n.a.       $0.762       $0.818          n.a.
       DALLAS AREA*                                $0.906       $1.056        $1.009        $0.844       $0.785       $0.793




                                                                                                                             96

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                                            Dallas/Fort Worth
                                                                                                           Apartment Report
                                                                                                                             Rents


                           AVERAGE RENT PER SQUARE FOOT BY YEAR COMPLETED
                                            1st Quarter 2008
                                                             $ Per Square Foot

               Submarket                                     Total         2000+            90-99          80-89    70-79    Pre-70
 52    South Fort Worth                                    $0.755          $0.815          $0.811         $0.754   $0.649    $0.769
 53    Southwest Fort Worth                                $0.849          $0.816          $1.046         $0.795   $0.780    $0.635
 54    Ridglea/Ridgmar                                     $0.678             n.a.            n.a.        $0.755   $0.668    $0.679
 55    Western Hills                                       $0.643             n.a.            n.a.        $0.687   $0.613    $0.604
 56    Intown/Cultural District                            $1.117          $1.343          $1.152         $0.665   $0.764    $0.683
 58    North Fort Worth                                    $0.896          $0.954          $0.863         $0.794      n.a.      n.a.
 59    Woodhaven                                           $0.703          $0.891          $0.703         $0.693   $0.637       n.a.
 60    Centreport                                          $0.867          $0.944          $0.923         $0.852      n.a.      n.a.
 70    North Arlington                                     $0.798             n.a.         $0.998         $0.795   $0.706    $0.649
 71    South Arlington                                     $0.798          $0.876          $1.001         $0.782   $0.720    $0.716
 72    Southwest Tarrant County                            $0.789          $0.941             n.a.        $0.788   $0.615       n.a.
 73    Northwest Tarrant County                            $0.720          $0.968          $0.679         $0.697   $0.686       n.a.
 74    Northeast Tarrant County                            $0.961          $1.062          $0.944         $0.901   $0.790       n.a.
 75    Haltom City/Richland Hills                          $0.815          $0.920          $0.895         $0.786   $0.652    $0.683
 76    Hurst/Euless/Bedford                                $0.831          $0.999          $0.943         $0.843   $0.677    $0.646
       FORT WORTH AREA*                                    $0.813          $0.951          $0.962         $0.788   $0.688    $0.687
       City of Fort Worth                                  $0.807          $0.947          $0.995         $0.759   $0.651    $0.694
       Not in City                                         $0.816          $0.954          $0.935         $0.804   $0.700    $0.683
       D/FW AREA*                                          $0.881          $1.034          $1.001         $0.825   $0.761    $0.763
* So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                  97

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets



                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $1.250      $1,181            93.3%
                                           2006/06           $1.267      $1,234            93.7%
                                           2006/09           $1.296      $1,229            94.1%
                                           2006/12           $1.277      $1,167            95.3%
                  21 Intown                2007/03           $1.311      $1,205            93.4%
                   Dallas                  2007/06           $1.304      $1,204            94.7%
                                           2007/09           $1.351      $1,312            93.7%
                                           2007/12           $1.335      $1,250            94.8%
                                           2008/03           $1.378      $1,307            94.3%               660
                                           2006/03           $0.698       $583             88.0%
                                           2006/06           $0.721       $666             88.0%
                                           2006/09           $0.722       $645             89.9%
                                           2006/12           $0.707       $634             88.0%
               22 South Dallas             2007/03           $0.708       $612             91.0%
                                           2007/06           $0.720       $637             89.7%
                                           2007/09           $0.730       $646             89.8%
                                           2007/12           $0.737       $663             89.5%
                                           2008/03           $0.763       $673             88.6%              -250
                                           2006/03           $0.772       $650             91.3%
                                           2006/06           $0.772       $676             87.6%
                                           2006/09           $0.739       $655             92.2%
                                           2006/12           $0.708       $603             92.1%
                 24 Oak Cliff              2007/03           $0.728       $617             91.9%
                                           2007/06           $0.756       $635             93.9%
                                           2007/09           $0.748       $632             93.7%
                                           2007/12           $0.791       $676             94.0%
                                           2008/03           $0.804       $686             91.4%                 0
                                           2006/03           $0.737       $655             94.3%
                                           2006/06           $0.771       $682             93.8%
                                           2006/09           $0.755       $654             93.3%
                                           2006/12           $0.756       $663             92.3%
               25 Duncanville/             2007/03           $0.765       $670             94.0%
                  DeSoto/                  2007/06           $0.778       $682             93.5%
                 Cedar Hill/               2007/09           $0.804       $706             94.1%
                 Lancaster                 2007/12           $0.818       $723             92.1%
                                           2008/03           $0.812       $703             90.3%                80




                                                                                                                             98

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.787       $652             92.0%
                                           2006/06           $0.780       $650             91.6%
                                           2006/09           $0.805       $687             93.4%
                                           2006/12           $0.788       $674             92.1%
                  26 Grand                 2007/03           $0.818       $691             90.3%
                   Prairie                 2007/06           $0.830       $700             91.1%
                                           2007/09           $0.836       $717             95.3%
                                           2007/12           $0.855       $724             94.7%
                                           2008/03           $0.847       $731             92.7%               500
                                           2006/03           $0.729       $569             94.5%
                                           2006/06           $0.736       $595             94.3%
                                           2006/09           $0.742       $592             95.7%
                                           2006/12           $0.739       $589             95.0%
                   27 East                 2007/03           $0.731       $582             95.7%
                    Irving                 2007/06           $0.750       $606             95.3%
                                           2007/09           $0.775       $621             95.7%
                                           2007/12           $0.755       $605             96.4%
                                           2008/03           $0.762       $609             94.1%              -150
                                           2006/03           $1.089       $900             94.2%
                                           2006/06           $1.013       $828             95.0%
                                           2006/09           $1.073       $900             94.1%
                                           2006/12           $0.992       $795             94.8%
                29 Oak Lawn/               2007/03           $1.050       $886             94.5%
                 Park Cities               2007/06           $1.118       $919             95.3%
                                           2007/09           $1.037       $826             96.4%
                                           2007/12           $1.070       $891             91.2%
                                           2008/03           $1.133       $948             91.6%               210
                                           2006/03           $0.717       $686             92.7%
                                           2006/06           $0.694       $651             95.1%
                                           2006/09           $0.714       $687             94.7%
                                           2006/12           $0.667       $651             94.4%
                   30 Far                  2007/03           $0.719       $685             93.2%
                  Northwest                2007/06           $0.705       $647             93.8%
                   Dallas                  2007/09           $0.750       $697             94.1%
                                           2007/12           $0.751       $710             95.7%
                                           2008/03           $0.795       $739             94.7%               260




                                                                                                                             99

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.825       $748             94.5%
                                           2006/06           $0.809       $717             93.9%
                                           2006/09           $0.826       $750             95.1%
                                           2006/12           $0.804       $713             94.6%
               31 Carrollton/              2007/03           $0.816       $738             94.9%
              Farmers Branch/              2007/06           $0.866       $776             93.3%
                  Addison                  2007/09           $0.875       $784             95.6%
                                           2007/12           $0.885       $799             94.7%
                                           2008/03           $0.900       $813             94.5%              -140
                                           2006/03           $0.918       $772             93.5%
                                           2006/06           $1.035       $905             95.8%
                                           2006/09           $0.972       $874             96.5%
                                           2006/12           $1.023       $848             94.0%
                   32 Near                 2007/03           $1.033       $866             93.7%
                    North                  2007/06           $1.019       $850             94.7%
                    Dallas                 2007/09           $1.064       $852             96.3%
                                           2007/12           $1.042       $885             95.5%
                                           2008/03           $1.054       $890             94.6%                30
                                           2006/03           $0.948       $686             87.8%
                                           2006/06           $1.042       $761             91.0%
                                           2006/09           $1.046       $767             93.5%
                                           2006/12           $1.017       $735             94.3%
                   34 East                 2007/03           $1.013       $715             93.8%
                    Dallas                 2007/06           $0.971       $692             92.3%
                                           2007/09           $0.991       $736             95.4%
                                           2007/12           $1.049       $807             90.5%
                                           2008/03           $1.030       $742             91.2%              -370
                                           2006/03           $0.739       $583             90.0%
                                           2006/06           $0.719       $566             88.9%
                                           2006/09           $0.735       $580             92.6%
                                           2006/12           $0.709       $567             91.7%
                35 Highlands               2007/03           $0.744       $599             90.4%
                                           2007/06           $0.733       $576             91.8%
                                           2007/09           $0.717       $565             91.2%
                                           2007/12           $0.763       $608             91.1%
                                           2008/03           $0.784       $634             92.6%              -860




                                                                                                                             100

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.851       $827             94.9%
                                           2006/06           $0.887       $857             94.5%
                                           2006/09           $0.912       $867             95.3%
                                           2006/12           $0.921       $872             95.2%
               36 Richardson               2007/03           $0.854       $828             95.1%
                                           2007/06           $0.904       $874             96.2%
                                           2007/09           $0.916       $890             96.1%
                                           2007/12           $0.906       $877             96.3%
                                           2008/03           $0.901       $883             95.2%              -310
                                           2006/03           $0.777       $661             93.1%
                                           2006/06           $0.811       $674             92.8%
                                           2006/09           $0.775       $650             93.3%
                                           2006/12           $0.757       $647             92.2%
                 37 Garland                2007/03           $0.778       $661             92.8%
                                           2007/06           $0.781       $668             93.8%
                                           2007/09           $0.811       $686             93.7%
                                           2007/12           $0.817       $701             95.5%
                                           2008/03           $0.814       $682             94.6%               240
                                           2006/03           $0.776       $648             93.6%
                                           2006/06           $0.793       $665             94.0%
                                           2006/09           $0.778       $665             93.9%
                                           2006/12           $0.756       $636             93.4%
                 38 Mesquite               2007/03           $0.787       $664             94.4%
                                           2007/06           $0.811       $680             94.2%
                                           2007/09           $0.792       $668             94.5%
                                           2007/12           $0.804       $646             94.2%
                                           2008/03           $0.828       $699             95.4%               140
                                           2006/03           $0.717       $617             93.5%
                                           2006/06           $0.712       $600             92.0%
                                           2006/09           $0.737       $610             92.5%
                                           2006/12           $0.721       $623             90.3%
                39 Southwest               2007/03           $0.718       $624             93.3%
                   Dallas                  2007/06           $0.739       $623             93.1%
                                           2007/09           $0.747       $632             91.7%
                                           2007/12           $0.751       $646             91.6%
                                           2008/03           $0.744       $644             91.7%              -170




                                                                                                                             101

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.743       $588             88.8%
                                           2006/06           $0.767       $601             88.7%
                                           2006/09           $0.771       $608             91.7%
                                           2006/12           $0.725       $560             91.4%
                    40 Far                 2007/03           $0.745       $583             91.0%
                     East                  2007/06           $0.760       $596             91.7%
                    Dallas                 2007/09           $0.758       $603             91.8%
                                           2007/12           $0.770       $609             92.2%
                                           2008/03           $0.782       $624             90.6%               -40
                                           2006/03           $0.950       $731             93.3%
                                           2006/06           $0.919       $715             94.1%
                                           2006/09           $0.942       $749             93.2%
                                           2006/12           $0.920       $737             91.9%
                   41 East                 2007/03           $0.941       $740             93.1%
                  University-              2007/06           $0.927       $739             90.6%
                   Vickery                 2007/09           $0.916       $698             94.1%
                                           2007/12           $0.959       $746             95.6%
                                           2008/03           $0.982       $771             93.6%              -440
                                           2006/03           $0.855       $684             92.1%
                                           2006/06           $0.784       $607             91.8%
                                           2006/09           $0.815       $617             91.4%
                                           2006/12           $0.825       $644             91.3%
                42 Northwest               2007/03           $0.829       $645             91.0%
                   Dallas                  2007/06           $0.803       $614             91.4%
                                           2007/09           $0.819       $656             93.6%
                                           2007/12           $0.824       $677             95.0%
                                           2008/03           $0.818       $632             93.1%                 0
                                           2006/03           $0.756       $608             92.2%
                                           2006/06           $0.769       $614             92.7%
                                           2006/09           $0.783       $625             93.9%
                                           2006/12           $0.773       $616             92.5%
                   43 West                 2007/03           $0.777       $621             93.3%
                    Irving                 2007/06           $0.768       $611             93.1%
                                           2007/09           $0.780       $614             94.5%
                                           2007/12           $0.803       $643             93.7%
                                           2008/03           $0.804       $637             93.2%               -50




                                                                                                                             102

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.859       $739             93.6%
                                           2006/06           $0.830       $702             93.4%
                                           2006/09           $0.858       $729             94.7%
                                           2006/12           $0.848       $711             93.6%
                   44 North                2007/03           $0.890       $767             94.1%
                    Dallas                 2007/06           $0.868       $737             93.3%
                                           2007/09           $0.871       $742             94.8%
                                           2007/12           $0.891       $781             94.9%
                                           2008/03           $0.905       $770             94.1%               -10
                                           2006/03           $0.719       $555             88.7%
                                           2006/06           $0.704       $551             88.3%
                                           2006/09           $0.725       $550             90.8%
                                           2006/12           $0.712       $545             88.9%
                   45 Far                  2007/03           $0.734       $553             88.0%
                  Northeast                2007/06           $0.712       $527             87.8%
                   Dallas                  2007/09           $0.741       $556             89.8%
                                           2007/12           $0.732       $549             88.8%
                                           2008/03           $0.756       $567             89.0%               110
                                           2006/03           $0.882       $693             95.5%
                                           2006/06           $0.884       $694             95.1%
                                           2006/09           $0.900       $676             95.6%
                                           2006/12           $0.883       $668             94.1%
                    47 Far                 2007/03           $0.902       $680             94.9%
                    North                  2007/06           $0.912       $710             94.6%
                    Dallas                 2007/09           $0.914       $701             95.1%
                                           2007/12           $0.925       $721             95.7%
                                           2008/03           $0.934       $731             95.7%               530
                                           2006/03           $0.959       $856             94.8%
                                           2006/06           $0.962       $861             95.1%
                                           2006/09           $0.984       $888             95.0%
                                           2006/12           $0.968       $870             93.2%
               48 Las Colinas/             2007/03           $0.953       $846             95.5%
                Valley Ranch               2007/06           $0.992       $898             94.9%
                                           2007/09           $1.001       $886             94.9%
                                           2007/12           $1.006       $901             94.5%
                                           2008/03           $1.035       $944             94.6%               870




                                                                                                                             103

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.855       $695             92.6%
                                           2006/06           $0.872       $725             91.3%
                                           2006/09           $0.899       $747             96.3%
                                           2006/12           $0.943       $752             95.8%
                  81 Denton                2007/03           $0.885       $732             93.9%
                                           2007/06           $0.887       $713             93.4%
                                           2007/09           $0.929       $772             95.1%
                                           2007/12           $0.945       $797             93.6%
                                           2008/03           $0.982       $814             93.9%               260
                                           2006/03           $0.878       $770             93.6%
                                           2006/06           $0.871       $757             94.4%
                                           2006/09           $0.886       $773             95.3%
                                           2006/12           $0.866       $755             93.7%
                 82 Lewisville             2007/03           $0.875       $765             94.4%
                                           2007/06           $0.890       $781             94.0%
                                           2007/09           $0.891       $774             96.0%
                                           2007/12           $0.916       $804             95.3%
                                           2008/03           $0.904       $786             94.9%               120
                                           2006/03           $0.881       $826             95.2%
                                           2006/06           $0.894       $829             94.4%
                                           2006/09           $0.908       $850             96.2%
                                           2006/12           $0.896       $843             94.9%
                   85 West                 2007/03           $0.897       $838             94.5%
                    Plano                  2007/06           $0.915       $858             95.0%
                                           2007/09           $0.923       $873             95.9%
                                           2007/12           $0.949       $899             95.2%
                                           2008/03           $0.957       $904             94.5%            1,060
                                           2006/03           $0.842       $752             95.8%
                                           2006/06           $0.857       $766             93.3%
                                           2006/09           $0.845       $755             94.2%
                                           2006/12           $0.805       $724             94.2%
                   86 East                 2007/03           $0.829       $736             94.4%
                    Plano                  2007/06           $0.857       $783             97.3%
                                           2007/09           $0.872       $780             95.2%
                                           2007/12           $0.888       $809             93.9%
                                           2008/03           $0.917       $830             95.0%               720




                                                                                                                             104

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.826       $744             95.2%
                                           2006/06           $0.851       $778             94.7%
                                           2006/09           $0.874       $790             96.7%
                                           2006/12           $0.843       $768             95.1%
                  87 Allen/                2007/03           $0.867       $783             95.0%
                  McKinney                 2007/06           $0.860       $764             95.5%
                                           2007/09           $0.884       $788             95.4%
                                           2007/12           $0.890       $812             95.3%
                                           2008/03           $0.914       $850             93.9%               480
                                           2006/03           $0.720       $659             90.5%
                                           2006/06           $0.741       $664             91.6%
                                           2006/09           $0.730       $630             91.1%
                                           2006/12           $0.720       $631             91.6%
                   88 North                2007/03           $0.733       $613             94.7%
                     Ellis                 2007/06           $0.693       $601             95.0%
                    County                 2007/09           $0.755       $660             95.9%
                                           2007/12           $0.753       $662             95.7%
                                           2008/03           $0.719       $622             92.5%               -70
                                           2006/03           $0.847       $719             93.0%
                                           2006/06           $0.851       $723             92.9%
                                           2006/09           $0.863       $733             94.1%
                                           2006/12           $0.847       $716             93.1%
                   DALLAS                  2007/03           $0.859       $727             93.4%
                    AREA                   2007/06           $0.868       $736             93.4%
                                           2007/09           $0.877       $744             94.4%
                                           2007/12           $0.892       $764             94.1%
                                           2008/03           $0.906       $774             93.5%            3,410




                                                                                                                             105

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.686       $550             89.4%
                                           2006/06           $0.677       $524             88.0%
                                           2006/09           $0.710       $552             89.7%
                                           2006/12           $0.670       $528             88.6%
                   52 South                2007/03           $0.695       $536             89.1%
                     Fort                  2007/06           $0.714       $548             86.2%
                    Worth                  2007/09           $0.718       $563             87.3%
                                           2007/12           $0.742       $592             92.7%
                                           2008/03           $0.755       $578             94.2%               230
                                           2006/03           $0.770       $662             93.5%
                                           2006/06           $0.784       $667             93.0%
                                           2006/09           $0.796       $675             94.5%
                                           2006/12           $0.758       $646             93.2%
                53 Southwest               2007/03           $0.803       $684             94.2%
                    Fort                   2007/06           $0.813       $694             94.2%
                   Worth                   2007/09           $0.815       $690             95.8%
                                           2007/12           $0.859       $729             94.5%
                                           2008/03           $0.849       $709             93.2%               230
                                           2006/03           $0.675       $578             88.2%
                                           2006/06           $0.620       $556             88.4%
                                           2006/09           $0.739       $664             92.0%
                                           2006/12           $0.696       $613             89.4%
                 54 Ridglea/               2007/03           $0.759       $663             90.3%
                  Ridgmar                  2007/06           $0.717       $641             91.7%
                                           2007/09           $0.724       $620             95.2%
                                           2007/12           $0.772       $690             97.0%
                                           2008/03           $0.678       $579             96.6%                 0
                                           2006/03           $0.610       $516             89.9%
                                           2006/06           $0.615       $509             90.3%
                                           2006/09           $0.617       $508             91.3%
                                           2006/12           $0.612       $490             89.8%
                 55 Western                2007/03           $0.604       $499             86.0%
                    Hills                  2007/06           $0.597       $499             88.5%
                                           2007/09           $0.619       $517             95.9%
                                           2007/12           $0.629       $540             89.8%
                                           2008/03           $0.643       $550             82.2%              -210




                                                                                                                             106

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $1.009       $878             90.8%
                                           2006/06           $0.973       $838             94.2%
                                           2006/09           $0.994       $860             95.7%
                                           2006/12           $0.921       $775             96.2%
                  56 Intown/               2007/03           $1.040       $902             96.6%
                   Cultural                2007/06           $1.031       $921             90.9%
                   District                2007/09           $1.133      $1,022            96.1%
                                           2007/12           $1.063       $935             97.0%
                                           2008/03           $1.117       $999             96.4%               290
                                           2006/03           $0.786       $720             93.4%
                                           2006/06           $0.764       $734             93.6%
                                           2006/09           $0.815       $767             93.7%
                                           2006/12           $0.786       $730             93.3%
                   58 North                2007/03           $0.754       $710             92.1%
                     Fort                  2007/06           $0.818       $765             93.2%
                    Worth                  2007/09           $0.859       $807             94.2%
                                           2007/12           $0.859       $798             93.0%
                                           2008/03           $0.896       $830             87.4%               410
                                           2006/03           $0.668       $535             89.1%
                                           2006/06           $0.698       $552             90.6%
                                           2006/09           $0.679       $551             87.7%
                                           2006/12           $0.669       $539             89.1%
               59 Woodhaven                2007/03           $0.682       $552             89.7%
                                           2007/06           $0.687       $552             89.3%
                                           2007/09           $0.696       $562             90.2%
                                           2007/12           $0.695       $546             90.7%
                                           2008/03           $0.703       $577             90.3%                70
                                           2006/03           $0.827       $570             91.1%
                                           2006/06           $0.864       $593             92.4%
                                           2006/09           $0.853       $583             94.0%
                                           2006/12           $0.866       $595             95.2%
                60 Centreport              2007/03           $0.868       $595             91.5%
                                           2007/06           $0.810       $566             91.6%
                                           2007/09           $0.845       $598             92.0%
                                           2007/12           $0.880       $600             92.7%
                                           2008/03           $0.867       $620             93.0%                70




                                                                                                                             107

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month             Gross       Absorbed
                                           2006/03           $0.745       $595             92.0%
                                           2006/06           $0.760       $607             92.9%
                                           2006/09           $0.770       $614             92.4%
                                           2006/12           $0.743       $591             90.4%
                   70 North                2007/03           $0.752       $610             91.1%
                   Arlington               2007/06           $0.755       $615             91.8%
                                           2007/09           $0.750       $606             92.3%
                                           2007/12           $0.790       $626             93.9%
                                           2008/03           $0.798       $637             94.0%               560
                                           2006/03           $0.761       $638             92.0%
                                           2006/06           $0.756       $636             92.6%
                                           2006/09           $0.764       $632             94.0%
                                           2006/12           $0.746       $627             93.0%
                   71 South                2007/03           $0.764       $631             93.5%
                   Arlington               2007/06           $0.772       $642             91.8%
                                           2007/09           $0.786       $647             95.4%
                                           2007/12           $0.788       $645             95.0%
                                           2008/03           $0.798       $659             94.7%               250
                                           2006/03           $0.732       $600             90.2%
                                           2006/06           $0.778       $612             91.7%
                                           2006/09           $0.731       $610             88.7%
                                           2006/12           $0.683       $566             90.7%
                72 Southwest               2007/03           $0.761       $647             94.6%
                   Tarrant                 2007/06           $0.727       $570             90.2%
                   County                  2007/09           $0.792       $639             93.1%
                                           2007/12           $0.885       $736             97.7%
                                           2008/03           $0.789       $652             93.5%               -30
                                           2006/03           $0.688       $539             93.3%
                                           2006/06           $0.739       $586             93.6%
                                           2006/09           $0.686       $534             91.1%
                                           2006/12           $0.715       $564             92.1%
                73 Northwest               2007/03           $0.720       $566             92.9%
                   Tarrant                 2007/06           $0.720       $581             93.6%
                   County                  2007/09           $0.741       $575             93.7%
                                           2007/12           $0.731       $570             95.6%
                                           2008/03           $0.720       $562             94.7%                70




                                                                                                                             108

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets

                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents        Occupancy Annual
                                                               Per        Per                Units
                  Submarket                 Date              Sq Ft      Month     Gross   Absorbed
                                           2006/03             $0.881       $789     93.2%
                                           2006/06             $0.916       $820     93.7%
                                           2006/09             $0.935       $823     93.1%
                                           2006/12             $0.915       $814     93.3%
                74 Northeast               2007/03             $0.930       $840     93.6%
                   Tarrant                 2007/06             $0.947       $856     95.0%
                  County                   2007/09             $0.944       $850     96.9%
                                           2007/12             $0.979       $870     96.2%
                                           2008/03             $0.961       $854     92.4%         80
                                           2006/03             $0.741       $636     94.9%
                                           2006/06             $0.750       $637     91.3%
                                           2006/09             $0.780       $674     93.2%
                                           2006/12             $0.782       $674     91.9%
               75 Haltom City/             2007/03             $0.799       $691     92.2%
                Richland Hills             2007/06             $0.800       $684     90.6%
                                           2007/09             $0.778       $673     92.5%
                                           2007/12             $0.803       $695     92.6%
                                           2008/03             $0.815       $696     93.9%       360
                                           2006/03             $0.793       $684     92.8%
                                           2006/06             $0.812       $684     93.1%
                                           2006/09             $0.814       $691     92.9%
                                           2006/12             $0.792       $687     92.1%
                  76 Hurst/                2007/03             $0.821       $698     92.3%
                   Euless/                 2007/06             $0.837       $714     93.0%
                   Bedford                 2007/09             $0.831       $716     93.5%
                                           2007/12             $0.841       $703     94.1%
                                           2008/03             $0.831       $710     95.7%       800
                                           2006/03             $0.758       $635     92.1%
                                           2006/06             $0.769       $640     92.3%
                                           2006/09             $0.779       $649     92.7%
                                           2006/12             $0.758       $635     91.9%
                    FORT                   2007/03             $0.781       $653     92.2%
                   WORTH                   2007/06             $0.787       $660     91.9%
                    AREA                   2007/09             $0.794       $666     93.8%
                                           2007/12             $0.813       $675     94.0%
                                           2008/03             $0.813       $678     93.4%     3,180




                                                                                                                             109

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                         Submarkets


                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       1st Quarter 2006 - 1st Quarter 2008
                                                                    Rents        Occupancy Annual
                                                               Per        Per                Units
                  Submarket                 Date              Sq Ft      Month     Gross   Absorbed
                                           2006/03             $0.824       $697     92.8%
                                           2006/06             $0.829       $701     92.7%
                                           2006/09             $0.840       $711     93.7%
                                           2006/12             $0.824       $694     92.8%
                 DALLAS/                   2007/03             $0.838       $708     93.1%
               FORT WORTH                  2007/06             $0.847       $716     93.0%
                  AREA                     2007/09             $0.855       $723     94.2%
                                           2007/12             $0.871       $740     94.1%
                                           2008/03             $0.881       $749     93.5%     6,590




                                                                                                                             110

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology



Methodology
M/PF YieldStar reports assess recent general conditions in the apartment market and forecast market
fundamentals for the coming year. Analysis focuses on investment opportunities and obstacles at the
submarket level. Data in this report represent the best information available at publication time. Statistics will
be similar to, but not necessarily identical to, information published in previous reports, as M/PF YieldStar
continually updates its database and sometimes revises historical performances if information deemed more
accurate becomes available.

Identification of near-term opportunities is not a blanket endorsement of activity within any submarket. Even in
submarkets that appear promising overall, investment prospects are not uniformly favorable. Conversely,
pockets of opportunity may exist in submarkets that are not positioned favorably overall. Investment decisions
should be based on market research tailored to the unique potential of each property.

Key components of the M/PF YieldStar methodology include the following.

Universe/Property Characteristics: The M/PF YieldStar apartment survey examines trends in rental
properties that are attached dwellings with five or more units. For the most part, these are traditional apartment
communities. Units within projects that were built as for-sale properties (condominiums or townhomes) can be
included if a sizable block of product is being leased through a central marketing source. Individual units
purchased for investment purposes and now offered for lease on a one-off basis are not tracked.

Existing unit stock is estimated starting with rental communities featuring five or more units, according to the
2000 Census, and then adding in subsequent completions and properties that convert from subsidized to
market-rate product, and subtracting units taken out of the rental pool for condominium conversion or
demolition. Thus, net inventory change does not solely reflect new construction.

Affordable housing properties generally are included in the stock, even if there are restrictions on resident
incomes, as long as residents are paying their own rent. Public housing developments where the properties are
owned by government agencies or where government agencies pay resident rents are excluded. College dorms
likewise are excluded. Privately-owned student housing is included in the inventory count, since the presence of
these properties often impacts the performances of traditional communities, but student housing is not carried
through to the market’s typical occupancy and rent calculations.

Most of the property-level information that goes into the analysis presented in this report is provided by owners
and managers with significant unit stocks. Thus, while five units is the minimum size for a property to be
included in the analysis, survey respondents generally are owners or managers with the market’s larger
projects. Typical project size for the communities that M/PF YieldStar surveys each quarter hovers at 230 to
240 units nationally. D/FW’s typical property size is similar, usually 210 to 240 units.

Sample/Survey Process: Quarterly performance statistics in this report were calculated based on information
provided for 375,715 apartment units (about 67 percent of all existing units in the D/FW area) during March
2008. The survey area includes Dallas, Tarrant, and portions of Denton, Collin and Ellis Counties. The table at
the end of this section shows the distribution of survey response by submarket, as well as the percentage of
existing units represented by the current sample.


                                                                                                                            111

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology

Most of the information in the M/PF YieldStar quarterly survey is collected through mail questionnaires that are
completed by apartment community owners or managers. Where response by mail is not adequate to produce
statistically reliable information on the submarket level, additional properties are shopped by telephone and/or
by site visits.

Information is collected for each property’s individual floor plans (e.g., one-bedroom units sized at 750 square
feet), not by general floor plan category (e.g., one-bedroom units sized at 600 to 875 square feet). In a floor
plan that includes a den, the den is counted as a bedroom.

Computerized record-keeping allows M/PF YieldStar to compare current and historical information on an
individual property. If more accurate information becomes available, historical data may be recalculated to
reflect these revisions, allowing for meaningful comparison of the current performance to the historical trend.
For the most part, revisions that occur reflect that a property’s new owner or manager reports a different
completion date for the project or a set of floor plans that is different from the information in the data record
established initially. For the most part, modification of historical information for an individual property does not
meaningfully impact overall submarket or metro-level results reported previously, as sample size is large
enough to prevent an individual property from notably skewing overall performance results.

Submarkets: The submarkets established by M/PF YieldStar generally reflect areas featuring similar properties
that compete within the same pool of resident prospects. Submarket boundaries are established considering
logical obstacles like freeways as well as shifts in general neighborhood character. Key firms active in the
apartment market of a given metro are consulted when determining initial submarket boundaries. To the extent
possible, submarket boundaries follow zip code boundaries to facilitate placement of a property within a specific
submarket.

Absorption/Demand: M/PF YieldStar defines absorption, or demand, as the increase in physically occupied
units (existing units multiplied by the occupancy rate) from one period to another. Absorption calculations in this
report exclude preleasing to avoid double-counting residents now occupying units and simultaneously
preleasing other units. Absorption calculations are impacted by changes in existing inventory. Net move-outs
can occur simply because the size of the existing inventory shrinks due to conversions of product from rental
stock to condominiums or due to demolitions. Thus, occupancy actually can rise at the same time that net
demand is negative.

Absorption of New Completions: Frequently, management of apartment communities under construction will
begin leasing units as they are finished out. For consistency purposes, units are not counted as absorbed until
the period that the entire property is completed. Thus, absorption will tend to be somewhat undercounted in the
periods preceding completion of the property. This effect is most pronounced when a large number of units are
under construction.

Absorption Forecasts: A macro-to-micro approach is used in forecasting the number of units to be absorbed
in a submarket. That is, absorption is forecast for the entire metro area and then is distributed among
submarkets on the basis of the anticipated capture rate of each submarket.

Primary variables in the mathematical formula used to forecast absorption in any metro include local economic
growth (annual job gain) and recent trends in apartment absorption vs. available supply (vacant existing
apartments plus units under construction). Past trends suggest that future absorption will be a function of these
variables.



                                                                                                                           112

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology

For each submarket, the ratio of units absorbed vs. available in supply in recent historical periods is applied to
current available supply. The resulting weighted factors are summed and each submarket’s share of total area
absorption is calculated. This share is then multiplied by the expected metro area absorption to obtain forecasts
for each submarket.

This forecasting model does not reflect non-quantifiable factors such as zoning, new road networks, new
employment centers, etc. As a result, this methodology provides a sound objective basis for comparing
submarkets. However, if unique market factors exist, such subjective factors may need to be considered when
evaluating a specific submarket.

Completions: M/PF YieldStar collects construction permit data each quarter from all of the municipalities
across a metro. Developers or contractors are called to verify the number of units and the month when all units
are expected to be completed. These completion dates are updated as development proceeds to maintain a
continuing record of ongoing construction. All units in a property generally are counted as new supply during
the quarter when the last apartments in the project are finished. Occasionally, units in an extremely large
property will be brought into the existing unit count at periodic intervals as construction proceeds: such
exceptions to M/PF YieldStar’s standard methodology will be noted in the supply discussion of the report.

Occupancy: Occupancy reflects the share of the existing stock physically occupied at any point in time.
Preleased units are not part of the occupancy calculation.

Rental Rates: The rental rates presented by M/PF YieldStar reflect a property’s rent structure at the point of
time of the survey, rather than the property’s actual revenues (which would be shaped by rents in place when
ongoing leases were signed). Furthermore, rents represent the rates for whatever sort of product is offered in
the individual market in the way that the individual owners/managers package it. Thus, no adjustments are
made for utilities or for specific amenities (e.g., parking will be included if that is the way the rent is presented to
the consumer: it will be excluded if it’s an extra cost feature). At a project where rents are dramatically outside
the mainstream for whatever reason (e.g., the units are furnished, apartment sizes are substantially different
from the norm, etc.), the community simply is excluded from rent calculations, so that the rents presented by
M/PF YieldStar reflect the rates for a “normal” project in that particular market.

Unless noted otherwise, all rents presented in M/PF YieldStar publications are effective rates, to the degree
possible. Thus, the impact of concessions that include free rent periods or discounts over the term of the lease,
are calculated into the rent structure. Values of leasing incentives that don’t entail free or discounted rents
cannot be accurately measured and, thus, are not taken into consideration in M/PF YieldStar rent figures. For
the most part, concession information presented to M/PF YieldStar will reflect the rent structure established by a
company’s regional operations. Many firms give on-site personnel authorization to offer deeper discounts to
close specific leases. Thus, it is not unusual for the concession information provided to M/PF YieldStar to
understate actual discounts given in the marketplace.

Rents are calculated for each property’s individual floor plans (e.g., one-bedroom units sized at 750 square
feet), not by general floor plan category (e.g., one-bedroom units sized at 600 to 875 square feet). In a floor
plan that includes a den, the den is counted as a bedroom.

Rent Growth: All rent change figures presented in M/PF YieldStar publications are same-store, rather than
total sample, calculations. This measure compares rents for the same specific group of properties between two
points in time, thus gauging the typical performance for an apartment community operating during that time
frame. Examination of same-store rent change eliminates the misrepresentation of market conditions that can
result from sampling differences in two reporting periods.

                                                                                                                           113

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology

                                        SAMPLE DISTRIBUTION BY SUBMARKET
                                                BY BEDROOM TYPE
                                                 1st Quarter 2008
                                                           Percent
                                                                                             Bedroom Type
                                          Total    Total   of Base
             Submarket                   Existing Sampled Sampled                 Eff        One         Two         Three
    21   Intown Dallas                    13,699    10,726    78.3%                 233       5,973       3,934         586
    22   South Dallas                     12,796     6,020    47.0%                   22      1,690       3,517         791
    24   Oak Cliff                        11,536     4,741    41.1%                 112       1,962       2,211         456
    25   Dunc/DeSoto/CH/Lanc                7,796    6,004    77.0%                   16      2,755       2,873         360
    26   Grand Prairie                    13,980    10,197    72.9%                 182       4,785       4,317         913
    27   East Irving                        9,135    4,509    49.4%                   41      1,907       2,124         437
    29   Oak Lawn/Park Cities               9,891    4,003    40.5%                 174       2,376       1,354          99
    30   Far Northwest Dallas               3,414    2,363    69.2%                 238         825         975         325
    31   Carrollton/FB/Addison            21,765    14,978    68.8%                 266       6,733       7,155         824
    32   Near North Dallas                  7,269    5,542    76.2%                 323       2,978       1,844         397
    34   East Dallas                        7,832    2,759    35.2%                 215       1,747         686         111
    35   Highlands                        14,543     7,491    51.5%                 195       3,934       3,015         347
    36   Richardson                         8,576    6,650    77.5%                 n.a.      2,601       3,264         785
    37   Garland                          16,553    10,401    62.8%                 331       4,600       4,899         571
    38   Mesquite                         13,549     9,555    70.5%                 178       4,596       4,229         552
    39   Southwest Dallas                 10,749     7,019    65.3%                 447       2,465       3,080       1,027
    40   Far East Dallas                  11,960     7,236    60.5%                 228       3,710       2,777         521
    41   East University-Vickery          20,446    13,824    67.6%                 886       7,896       4,599         443
    42   Northwest Dallas                 10,147     6,283    61.9%                 178       4,021       1,842         242
    43   West Irving                      18,042    12,785    70.9%                 321       6,902       5,303         259
    44   North Dallas                     22,129    15,576    70.4%                 516       8,487       5,769         804
    45   Far Northeast Dallas             11,426     7,413    64.9%                 100       4,740       2,417         156
    47   Far North Dallas                 29,028    24,655    84.9%                 520      15,635       8,012         488
    48   Las Colinas/V. Ranch             23,435    19,977    85.2%                 n.a.     10,165       8,892         920
         Dallas County                   329,696 220,707      66.9%               5,722     113,483      89,088      12,414
         City of Dallas                  196,865 125,651      63.8%               4,387      68,439      46,032       6,793
         Not in City                     132,831    95,056    71.6%               1,335      45,044      43,056       5,621
    81   Denton                           13,088     6,113    46.7%                 278       2,248       2,457       1,130
    82   Lewisville                       22,068    15,379    69.7%                 125       7,026       7,241         987
    85   West Plano                       27,966    22,477    80.4%                 116      10,345      10,185       1,831
    86   East Plano                         4,239    3,208    75.7%                   48      1,174       1,554         432
    87   Allen/McKinney                     9,520    7,627    80.1%                 n.a.      3,151       3,856         620
    88   North Ellis County                 3,199    1,106    34.6%                   24        296         682         104
         DALLAS AREA                     409,776 276,617      67.5%               6,313     137,723     115,063      17,518




                                                                                                                           114

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology


                                        SAMPLE DISTRIBUTION BY SUBMARKET
                                                BY BEDROOM TYPE
                                                 1st Quarter 2008
                                                           Percent
                                                                                             Bedroom Type
                                          Total    Total   of Base
             Submarket                   Existing Sampled Sampled                 Eff        One         Two         Three
    52   South Fort Worth                   4,673    2,094    44.8%                  52       1,033         878         131
    53   Southwest Fort Worth             16,115    10,996    68.2%                 180       5,947       4,060         809
    54   Ridglea/Ridgmar                    3,458    1,076    31.1%                  60         509         414          93
    55   Western Hills                      5,606    3,775    67.3%                 159       1,632       1,730         254
    56   Intown/Cultural District           3,464    1,998    57.7%                  66       1,008         863          61
    58   North Fort Worth                   5,646    3,799    67.3%                 n.a.      1,590       1,783         426
    59   Woodhaven                        10,237     6,143    60.0%                  88       3,424       2,491         140
    60   Centreport                         4,656    4,410    94.7%                  66       3,044       1,237          63
    70   North Arlington                  19,011    11,442    60.2%                 291       6,500       4,434         217
    71   South Arlington                  27,182    16,981    62.5%                 685       7,638       6,996       1,662
    72   Southwest Tarrant Co.              3,050    2,552    83.7%                 n.a.      1,444       1,032          76
    73   Northwest Tarrant Co.              4,050    2,076    51.3%                  24       1,076         876         100
    74   Northeast Tarrant Co.              6,918    5,014    72.5%                   4       2,494       2,168         348
    75   Haltom City/Rich. Hills          11,162     8,027    71.9%                 186       3,786       3,513         542
    76   Hurst/Euless/Bedford             24,099    18,715    77.7%                 689       8,920       8,208         898
         FORT WORTH AREA                 149,327    99,098    66.4%               2,550      50,045      40,683       5,820
         City of Fort Worth               53,855    34,291    63.7%                 671      18,187      13,456       1,977
         Not in City                      95,472    64,807    67.9%               1,879      31,858      27,227       3,843
         D/FW AREA                       559,103 375,715      67.2%               8,863     187,768     155,746      23,338




                                                                                                                           115

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                              Dallas/Fort Worth
                                                                                             Apartment Report
                                                                                                      Methodology


                                        SAMPLE DISTRIBUTION BY SUBMARKET
                                               BY YEAR COMPLETED
                                                  1st Quarter 2008
                                                       Percent
                                                                                Year Completed
                                    Total    Total     of Base
          Submarket                Existing Sampled Sampled 2000+         90-99     80-89    70-79                        Pre-70
21   Intown Dallas                  13,699    10,726      78.3%    5,472    4,431       354      n.a.                        469
22   South Dallas                   12,796     6,020      47.0%    1,303      125     1,805    1,296                       1,491
24   Oak Cliff                      11,536     4,741      41.1%    1,578      n.a.      817      732                       1,614
25   Dunc/DeSoto/CH/Lanc              7,796    6,004      77.0%      849      452     4,113      590                         n.a.
26   Grand Prairie                  13,980    10,197      72.9%    3,602    1,860     4,098      128                         509
27   East Irving                      9,135    4,509      49.4%      n.a.     n.a.      370    1,968                       2,171
29   Oak Lawn/Park Cities             9,891    4,003      40.5%      876    1,136       376      n.a.                      1,615
30   Far Northwest Dallas             3,414    2,363      69.2%      202      n.a.      n.a.   1,978                         183
31   Carrollton/FB/Addison          21,765    14,978      68.8%    3,337    2,471     5,612    3,374                         184
32   Near North Dallas                7,269    5,542      76.2%      458    1,454       327    3,204                          99
34   East Dallas                      7,832    2,759      35.2%      150      314     1,452      233                         610
35   Highlands                      14,543     7,491      51.5%      n.a.     n.a.    4,074    2,224                       1,193
36   Richardson                       8,576    6,650      77.5%    1,226    2,898       624    1,433                         469
37   Garland                        16,553    10,401      62.8%    1,395      496     5,942    1,878                         690
38   Mesquite                       13,549     9,555      70.5%    1,999      200     5,751    1,605                         n.a.
39   Southwest Dallas               10,749     7,019      65.3%    1,628      464     3,466    1,301                         160
40   Far East Dallas                11,960     7,236      60.5%    1,064      296     3,230      456                       2,190
41   East University-Vickery        20,446    13,824      67.6%    1,479      180     1,940    8,494                       1,731
42   Northwest Dallas               10,147     6,283      61.9%    1,030      n.a.    2,422    1,517                       1,314
43   West Irving                    18,042    12,785      70.9%      261      n.a.   10,388    1,545                         591
44   North Dallas                   22,129    15,576      70.4%      681    3,147     3,626    6,770                       1,352
45   Far Northeast Dallas           11,426     7,413      64.9%      n.a.     n.a.    5,676    1,737                         n.a.
47   Far North Dallas               29,028    24,655      84.9%    2,048    8,578    14,029      n.a.                        n.a.
48   Las Colinas/V. Ranch           23,435    19,977      85.2%    4,120    7,923     7,401      533                         n.a.
     Dallas County                 329,696 220,707        66.9% 34,758     36,425    87,893   42,996                      18,635
     City of Dallas                196,865 125,651        63.8% 17,969     20,125    43,594   29,942                      14,021
     Not in City                   132,831    95,056      71.6% 16,789     16,300    44,299   13,054                       4,614
81   Denton                         13,088     6,113      46.7%    1,752      666     2,926      643                         126
82   Lewisville                     22,068    15,379      69.7%    4,924    5,032     4,909      388                         126
85   West Plano                     27,966    22,477      80.4%    6,642    9,440     5,021      900                         474
86   East Plano                       4,239    3,208      75.7%      498    1,398       910      402                         n.a.
87   Allen/McKinney                   9,520    7,627      80.1%    4,396    1,975     1,128      128                         n.a.
88   North Ellis County               3,199    1,106      34.6%      300      n.a.      782       24                         n.a.
     DALLAS AREA                   409,776 276,617        67.5% 53,270     54,936 103,569     45,481                      19,361




                                                                                                                            116

 ©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
 for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
 without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                              Dallas/Fort Worth
                                                                                             Apartment Report
                                                                                                      Methodology


                                        SAMPLE DISTRIBUTION BY SUBMARKET
                                               BY YEAR COMPLETED
                                                  1st Quarter 2008
                                                       Percent
                                                                                Year Completed
                                    Total    Total     of Base
          Submarket                Existing Sampled Sampled 2000+         90-99     80-89    70-79    Pre-70
52   South Fort Worth                 4,673    2,094      44.8%      178      152       568      296     900
53   Southwest Fort Worth           16,115    10,996      68.2%    1,944    2,007     6,604      225     216
54   Ridglea/Ridgmar                  3,458    1,076      31.1%      n.a.     n.a.       64      370     642
55   Western Hills                    5,606    3,775      67.3%      n.a.     n.a.    1,581    1,612     582
56   Intown/Cultural District         3,464    1,998      57.7%      967      361       159      206     305
58   North Fort Worth                 5,646    3,799      67.3%    1,833    1,466       500      n.a.    n.a.
59   Woodhaven                      10,237     6,143      60.0%      364       27     5,201      551     n.a.
60   Centreport                       4,656    4,410      94.7%      321      268     3,821      n.a.    n.a.
70   North Arlington                19,011    11,442      60.2%      n.a.     872     8,828    1,428     314
71   South Arlington                27,182    16,981      62.5%    3,127      968     7,709    3,909   1,268
72   Southwest Tarrant Co.            3,050    2,552      83.7%      404      n.a.    1,756      392     n.a.
73   Northwest Tarrant Co.            4,050    2,076      51.3%      208      260     1,096      512     n.a.
74   Northeast Tarrant Co.            6,918    5,014      72.5%    1,979    1,036     1,266      733     n.a.
75   Haltom City/Rich. Hills        11,162     8,027      71.9%    2,035      780     3,688      798     726
76   Hurst/Euless/Bedford           24,099    18,715      77.7%    2,256    2,567     8,834    3,310   1,748
     FORT WORTH AREA               149,327    99,098      66.4% 15,616     10,764    51,675   14,342   6,701
     City of Fort Worth             53,855    34,291      63.7%    5,607    4,281    18,498    3,260   2,645
     Not in City                    95,472    64,807      67.9% 10,009      6,483    33,177   11,082   4,056
     D/FW AREA                     559,103 375,715        67.2% 68,886     65,700 155,244     59,823 26,062




                                                                                                                            117

 ©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
 for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
 without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology

Submarket Boundaries
Listed below are the boundaries for the submarkets listed in the D/FW Apartment Report. Boundaries are mostly
drawn along city/county boundaries, roads/highways, streams/rivers, and other natural barriers. The dividing lines are
considered to run down the center of the listed boundaries. Thus, buildings on one side of the street may be in a
different submarket than those across the road.

21 Intown Dallas: Bounded by IH-35E, IH-30, Haskell Avenue, Ross Avenue, Fitzhugh Avenue, and the Union
Pacific Railroad tracks.

22 South Dallas: City of Dallas, south of IH-30 and east of IH-35E.

24 Oak Cliff: City of Dallas, south of Elm Fork Trinity River, west of IH-35E, and north/west of Loop 12.

25 Duncanville/DeSoto/Cedar Hill/Lancaster: Cities of Duncanville, Cedar Hill, DeSoto, and Lancaster.

26 Grand Prairie: City of Grand Prairie.

27 East Irving: City of Irving, east of Story Road and south of Northgate Drive, O'Connor Road, State Highway 114,
and the Burlington Northern railroad tracks.

29 Oak Lawn/Park Cities: Bounded by U.S. 75, Fitzhugh Avenue, the Union Pacific Railroad tracks, Harry Hines
Boulevard, Inwood Road, Lemmon Avenue, Mockingbird Lane, plus the cities of Highland Park and University Park.

30 Far Northwest Dallas: Bounded by IH-635, Dallas North Tollway, Walnut Hill Lane, and Elm Fork Trinity River.

31 Carrollton/Farmers Branch/Addison: Cities of Carrollton, Farmers Branch, and Addison.

32 Near North Dallas: Bounded by IH-635, U.S. 75, University Park city limits, and Dallas North Tollway.

34 East Dallas: Bounded by Mockingbird Lane, White Rock Lake, White Rock Creek, IH-30, Haskell Avenue, Ross
Avenue, Fitzhugh Avenue, and U.S. 75.

35 Highlands: Bounded by IH-635, Garland Road, Northwest Highway, White Rock Creek, Walnut Hill Lane, and
U.S. 75.

36 Richardson: City of Richardson.

37 Garland: City of Garland.

38 Mesquite: Cities of Mesquite, Sunnyvale, Balch Springs, and Seagoville.

39 Southwest Dallas: City of Dallas, south of IH-30 and west/south of Loop 12, and west of IH-35E.

40 Far East Dallas: City of Dallas, south of Northwest Highway, north of IH-30, and east of White Rock Creek and
White Rock Lake.

41 East University/Vickery: Bounded by Walnut Hill Lane, White Rock Creek, White Rock Lake, Mockingbird Lane,
U.S. 75.

42 Northwest Dallas: Bounded by Walnut Hill Lane, Dallas North Tollway, Mockingbird Lane, Lemmon Avenue,
Inwood Road, Harry Hines Road, IH-35E, Elm Fork Trinity River.

43 West Irving: City of Irving, west of Story Road and Walnut Hill Lane and south of State Highway 114.

44 North Dallas: City of Dallas, south of Dallas county line, west of U.S. 75, and north of IH-635.

45 Far Northeast Dallas: City of Dallas, east of U.S. 75, and north of IH-635.
                                                                                                                           118
©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology
47 Far North Dallas: City of Dallas, north of Collin county line.

48 Las Colinas/Valley Ranch: City of Irving bounded by S.H. 114, Walnut Hill Lane, Story Road, Northgate Road,
O'Connor Road, S.H. 114 again, the Elm Fork of the Trinity River, and the Dallas County line; and the city of Coppell.

81 Denton: City of Denton.

82 Lewisville: Cities of Lewisville, Flower Mound, Roanoke, The Colony, Highland Village, and Plano west of the
Denton County line between S.H. 121 and McKamy Trail.

85 West Plano: City of Frisco and City of Plano, west of U.S. 75, excluding Plano west of the Denton County line
between S.H. 121 and McKamy Trail.

86 East Plano: City of Plano, east of U.S. 75.

87 Allen/McKinney: Cities of Allen and McKinney.

88 North Ellis County: North Ellis County.

52 South Fort Worth: Bounded by Union Pacific railroad tracks, Riverside Drive, IH-30, Weiler, U.S. 80, Winnie,
Union Pacific railroad tracks again, IH-820, Willard, Lake Arlington, Village Creek, Fort Worth city limits, Tarrant
County line, Crowley city limits, F.M. 731, Altamesa Boulevard, Santa Fe railroad tracks, Covert, Cockrell Road,
Seminary Drive, Granbury Road, Burlington Northern railroad tracks, Edwin, and Clear Fork of the Trinity River.

53 Southwest Fort Worth: City of Fort Worth, south of Clear Fork of the Trinity River, Bryant Irvin Road, Vickery
Boulevard and west of F.M. 731, Altamesa Boulevard, Santa Fe railroad tracks, Covert, Cockrell Road, Seminary
Drive, Granbury Road, Burlington Northern railroad tracks, and Edwin.

54 Ridglea/Ridgmar: City of Fort Worth west of Vickery Boulevard, Horne Street, Farnsworth, Bryant Irvin Road,
Guilford, Spanish, and the Westover Hills city limit and east of Cherry Lane.

55 Western Hills: City of Fort Worth west of Cherry Lane.

56 Intown/Cultural District: Bounded by 28th Street, Ephriham Avenue, River Oaks Boulevard, the River Oaks and
Westover Hills city limits, Bryant Irvin Road, Horne Street, Clear Fork of the Trinity River, the Union Pacific railroad
tracks and Beach Street.

58 North Fort Worth: City of Fort Worth north of 28th Street and Ephriham Avenue and west of Beach Street.

59 Woodhaven: City of Fort Worth, east of Beach Street; north of IH-30; east again of Weiler, Winnie, Union Pacific
railroad tracks, IH-820, and Willard; and west of Walker Branch, Greenbelt Road, and Raider Drive.

60 Centreport: City of Fort Worth, east of Raider Drive, Greenbelt Road, and Walker Branch.

70 North Arlington: City of Arlington, north of U.S. 80.

71 South Arlington: City of Arlington, south of U.S. 80, Cities of Kennedale and Mansfield, and unincorporated
areas east of Submarket 52 and west of Submarket 26.

72 Southwest Tarrant County: Essentially Cities of Benbrook, Crowley, and other areas located south and west of
Submarkets 52, 53, 54, and 55.

73 Northwest Tarrant County: Bounded by IH-30; Submarkets 55, 54, 56, and 58; and IH-35W.

74 Northeast Tarrant County: Bounded by IH-35W and Submarkets 58, 75, and 76.

75 Haltom City/Richland Hills: Cities of North Richland Hills, Richland Hills, and Haltom City.

76 Hurst/Euless/Bedford: Cities of Hurst, Euless, and Bedford.

                                                                                                                           119

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology


                                              Dallas Area




                                                                                                                           120

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                     Methodology

                                       Fort Worth Area




                                                                                                                           121

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                      About M/PF YieldStar



About M/PF YieldStar
Successful real estate investments require having the right product in the right market at the right time. And
M/PF YieldStar can provide the apartment market intelligence and decision-making tools needed to determine
what product, market and timing are right for you.

M/PF YieldStar’s Asset Life Cycle Management product suite helps you make the decisions to maximize the
value of your apartment investments. Tools guide you through smart development or acquisition choices,
effective operations that achieve revenue optimization, and appropriate disposition strategies. These solutions
offer sophisticated and timely support to ensure that valuable opportunities don’t slip through the cracks.

At the heart of M/PF YieldStar’s operations, the company’s database of individual apartment community
performances is the largest in the industry. Every quarter, occupancy and rent results are tracked in some
13,000 to 15,000 apartment properties with 3.4 to 3.8 million units. Also, ongoing construction is monitored on a
project-by-project basis in many cities.

Products available in the M/PF YieldStar Asset Life Cycle Management suite include the following.


Publications
M/PF YieldStar’s quarterly U.S. Apartment Market Report examines
occupancy and rent trends on the metro level across 57 markets.

Local apartment reports that take the trend analysis down to the
neighborhood level are available for the following markets: Atlanta,
Austin, Bay Area (San Francisco, Oakland, San Jose), Boston,
Charlotte, Chicago, Dallas/Fort Worth, Denver, Houston, Inland
Empire, Las Vegas, Los Angeles, Orange County, Orlando,
Phoenix, Raleigh, San Antonio, San Diego, Seattle, South Florida
(Miami, Fort Lauderdale, West Palm Beach), Tampa Bay and
Washington, DC.

Multi-Housing Outlook, which M/PF YieldStar produces in
conjunction with Boston-based Torto Wheaton Research, is an
interactive forecast of market fundamentals that examines the
outlooks for 59 metros and more than 450 submarkets. Multiple
scenarios assuming different economic conditions are provided.




                                                                                                                            122

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.
                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                      About M/PF YieldStar

Market Analyzer
A quick review of individual property records in M/PF YieldStar’s database reveals that rent structures are a
mess in most communities, often leaving achievable revenue uncollected. M/PF YieldStar’s Market Analyzer
product identifies the best point-in-time market position and rental rate for each floor plan at your properties,
taking into account the ever changing dynamics of rents achieved by key competitors as well as differences in
property amenities and characteristics.

Price Optimizer
The right basic rent structure is just the starting point of effective revenue management. Your rates should be
dynamic, reflecting shifts in market conditions, renter response to rent changes, and likely reactions among
competitive properties to any changes that you make. Your rents also should reflect the adjustments
appropriate for lease term variations, move-in/move-out timing, and different new/renewing customer behaviors.
With M/PF YieldStar Price Optimizer, every unit in your property can achieve the rent and vacancy relationship
that will maximize both NOI contribution and overall asset valuation.




                                                M/PF YieldStar
                                               4000 International Parkway
                                                   Carrollton, TX 75007
                                                        972.820.3100
                                                 www . mpfyieldstar . com




                                                                                                                           123
©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
without the specific written permission of M/PF YieldStar. Any infringement will be subject to legal redress.

				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:92
posted:4/2/2010
language:English
pages:123