2nd Quarter 2008 DFW Report

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					                                                                                                Dallas/Fort Worth
                                                                                               Apartment Report
                                                                                                               M/PF YieldStar
                                                                                                            2nd Quarter 2008
                                                                                                                July 11, 2008

A Big Burst of Starts in 2nd Quarter Pushes Dallas/Fort Worth to the Top of
the List for Ongoing Apartment Construction Nationwide
                                                                                       While it initially looked like the
            North Texas Ranks #1 on The National                                       apartment market in Dallas/Fort
            List of Apartment Construction Activity                                    Worth would avoid the cycle of
                                                                                       overbuilding that’s on the way in
     Dallas/Fort Worth                          19,217                                 the other major cities across
                                                                                       Texas, that encouraging outlook
                                                                                       suddenly got more questionable
       Houston                               18,040                                    during recent months.

       Austin                                                                          Developers began construction
                               12,810
                                                                                       on a stunning 6,300 apartments
                                                                                       in 19 properties across Dallas/
       Phoenix             12,026                                                      Fort Worth during the April-June
                                                                                       time frame. Those starts took
                                                                                       ongoing construction to 19,217
       Atlanta            11,220                                                       units, with D/FW edging out
                                                                                       Houston for the most apartment
  0k             5k            10 k          15 k           20 k          25 k         product on the way in any single
                                                                                       market across the country.

Today’s additional stock in process translates to inventory growth of 3.4 percent during the
next 18 months or so. Teardowns to create redevelopment sites will hold D/FW’s inventory
growth pace a little under the figure suggested by the ongoing construction figure, but net
stock expansion still will be very substantial, since teardowns now aren’t occurring at quite the
pace that was established during 2007.

Looking beyond the sheer numbers of future supply getting under construction during 2008’s
2nd quarter, the locations of those near-term deliveries bring another dimension to the story.
After a few years when the Dallas urban core was the overwhelmingly dominant hotspot for
apartment development, activity in suburban locations now is way up. In fact, construction
started on rental properties totaling just over 2,200 units in Dallas’ northern suburbs during
the April-June time period. In contrast, not a single one of 2nd quarter’s 19 starts was
technically in the Intown Dallas submarket that has accounted for so much of the region’s
building total recently, though several were just outside the fringes of Intown Dallas. These
properties, then, will attempt to extend the urban character of Intown Dallas on into
traditionally one-off locations that are just outside the submarket’s boundaries.



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



Making the jump in starts for North Texas
more worrisome, traditional apartments                          Another Round of Move-Outs in 2Q Takes
again suffered net move-outs due to
competition from single-family homes
                                                                   Occupancy Down to 92.7 Percent
                                                               Units
offered for rent during 2nd quarter. Coming             8k                                                               100%
down by another 1,830 units for the quarter,                                                       quarterly demand
                                                                                                   occupancy
D/FW’s occupied apartment count has                     6k                                                               98%
slipped by 3,070 units so far this year.
Demand for the year-ending June still was
solidly positive at 4,170 units, however,               4k                                                               96%
reflecting the strong absorption tally posted
in 2007’s last half.                                    2k                                                               94%

Completions were at 1,459 units during 2nd         0k                                                      92%
quarter, 5,008 units during the initial half of
2008 and 8,720 units during the year-ending
                                                  -2 k                                                     90%
June. Removals – mostly teardowns – held
back the net inventory growth volumes                    1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08
somewhat. D/FW’s total existing stock
moved up by just 421 units for the quarter, 3,402 units so far in calendar 2008 and 4,036 units on an annual
basis.

Dallas/Fort Worth’s apartment occupancy figure was at 92.7 percent as of June, with this rate sliding 0.7 points
from the March figure but off the mid-2007 rate only by a minor 0.3 points. The past quarter’s decline in
occupancy was much more pronounced on the Fort Worth side of the region. Furthermore, this backtracking
was seen especially in locales such as the two Arlington submarkets, Hurst/Euless/Bedford and Haltom
City/Richland Hills, all areas where apartment product in the middle and older age segments proved vulnerable
to loss of residents to rental single-family homes.

                                                                             Measuring change on a same-store basis,
          North Texas' Annual Same-Store Rent                                annual effective rent growth in Dallas/Fort
          Growth is Starting to Trend Downward                               Worth came in at 2.9 percent as of 2nd
  5%
                                                                             quarter. Price increases were dialed back a
                  Dallas           Fort Worth     Dallas/Fort Worth          bit from annual rent growth that had been
                                                                             around 4 percent at the end of 2007 and
  4%                                                                         during the first few months of 2008.

                                                                             Causing a little concern about D/FW’s rent
  3%
                                                                             growth prospects during the near term, the
                                                                             strongest increases during the year-ending
  2%                                                                         June were seen in units from the 1980s and
                                                                             1970s. Both of those product age sectors
                                                                             suffered sizable occupancy losses during
  1%
                                                                             the past quarter, suggesting pricing has
                                                                             gotten a bit out of line with appropriate rates.
  0%
          2Q 07            3Q 07       4Q 07    1Q 08        2Q 08           Average rents in Dallas/Fort Worth’s
                                                                             apartment market climbed to rates of $752
                                                                             per month, or 88.3¢/sq ft, as of June.
                                                                                                                            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 Appeal of Shadow Market Single-Family Home Rentals Must Wane for
D/FW’s Apartment Market Performance to Remain on an Even Keel
                                                                             With ongoing apartment construction in
            D/FW's Occupancy Rate is Presaged to                             Dallas/Fort Worth soaring to 19,217 units –
                                                                             including 13,298 units in properties due to
              Ease Slightly in the YE June 2009                              complete by the middle of 2009 – the
   100%                                                                      region’s prospects have gotten a bit dimmer
                                                                             for maintaining any momentum in the overall
    95%                                                                      performance of fundamentals. Still, M/PF
                                                                 92.5%       YieldStar hasn’t dramatically downgraded
                                                                             the outlook from the expectations presented
    90%                                                                      previously. (That sizable lowering of the
                                                                             forecast conditions will come, if starts over
    85%                                                                      the next few months continue at the notably
                                                                             aggressive pace seen so far this year.)

    80%                                                                      For now, then, it still seems like the key
           2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q                            question in the apartment sector’s outlook is
           03 03 04 04 05 05 06 06 07 07 08 08 09*                           whether or not demand can rebound from
                                                             * forecast      the sluggish levels posted recently.

                                                                      Looking at the first element in this demand
question, total housing absorption should be substantial, since economists are forecasting that Dallas/Fort
Worth will gain some 50,000 to 55,000 jobs during the year-ending June 2009. Second, the rental sector seems
well positioned to take a sizable portion of that total housing demand: difficulties in obtaining first-time home
mortgages will place limits on the flow of renters opting to buy, though the forecast does assume that D/FW will
be among the first metros nationally to see a meaningful upturn in home sales volumes.

The most significant wild card in the outlook for Dallas/Fort Worth apartment demand, then, still 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. While that rental single-family home stock has crippled the region’s apartment
absorption performance so far in 2008, M/PF YieldStar anticipates that the impact of alternative rentals will
wane, with some renters ending up in for-lease single-family units that go into foreclosure and others coming
back to professionally-managed apartments to take advantage of superior customer service.

This combination of factors leads M/PF YieldStar to a Dallas/Fort Worth apartment demand forecast of 10,900
units for the year-ending June 2009. Actual apartment absorption clearly will land under that figure, since net
inventory growth won’t really be at the 13,300 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
10,900 units by about the same ratio that inventory growth ends up under the 13,300-unit targeted delivery
pace.

The supply/demand relationship presented here translates to North Texas apartment occupancy cooling by 0.2
points during the year-ending June, with this change taking the mid-2009 figure down to 92.5 percent.

That occupancy outlook points to annual rent growth in the range of 1.5 to 2 percent.

                                                                                                                            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                                     411,641 149,819          561,460
                        Annual Apartment Completions                                    7,160    1,560           8,720
                        Annual Apartment Removals                                       4,083      601           4,684
           2nd Quarter  Annual Net Inventory Change                                     3,077      959           4,036
              2008      Annual Apartment Unit Absorption                                3,660      510           4,170
                        Average Gross Occupancy                                        93.2%    91.5%           92.7%
                        Change From Year-Ago Quarter                                      -0.2     -0.3            -0.3
                        Average Quoted Monthly Rent                                     $779     $676            $752
                        Same-Store % Change From Year-Ago Quarter                       2.9%     2.7%            2.9%
                        Annual Apartment Unit Completions                               9,648    3,650         13,298
           2nd Quarter  Annual Apartment Unit Absorption                                7,100    3,800         10,900
          2009 Forecast Average Gross Occupancy                                        92.7%    91.8%           92.5%
                        Change From Year-Ago Quarter                                      -0.5      0.3            -0.2




                                                                                                                            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 .....................97
DEMAND ....................................................................11
SUPPLY......................................................................25     Methodology
OCCUPANCY.............................................................64           Sample Distribution By Submarket By Bedroom
RENTS........................................................................82       Type......................................................................113
SUBMARKETS...........................................................97            Sample Distribution By Submarket By Year
METHODOLOGY .....................................................110                  Completed ............................................................115
 Submarket Boundaries ...........................................117
ABOUT M/PF YIELDSTAR ......................................121
                                                                                                           INDEX TO CHARTS
                        INDEX TO TABLES
                                                                                   Spotlight
Spotlight                                                                          National Apartment Construction Activity .......................1
D/FW Apartment Market Profile ....................................4                Quarterly Demand vs. Occupancy..................................2
                                                                                   Annual Same-Store Rent Change ..................................2
Economy                                                                            Forecast Occupancy.......................................................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 .............................. 20-21
   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........................................................47
New Supply Ranked ...................................................33            Apartment Completions Forecast ........................... 48-49
Annual Apartment Completions By Submarket...........40                             Forecast Completions by Quarter............................ 48
Apartment Development Leaders ...............................50
Forecast New Supply Ranked ....................................51                  Occupancy
Forecast Apartment Completions By Submarket........62                              Apartment Occupancy ............................................ 64-65
                                                                                   Apartment Occupancy By Age of Community ..............66
Occupancy                                                                          Apartment Occupancy Forecast ............................. 77-78
Occupancy Ranked.....................................................68
Greatest Occupancy Increases...................................69                  Rents
Average Gross Occupancy By Bedroom Type                                            Annual Same-Store Rent Change ......................... 82-83
   By Submarket .......................................................73          Annual Same-Store Rent Change By Age
Average Gross Occupancy By Year Completed                                            of Community...........................................................84
   By Submarket .......................................................75          Apartment Rent By Age of Community.........................85
Gross Occupancy Forecast By Submarket.................81

Rents                                                                                                        INDEX TO MAPS
Annual Same-Store Rent Change ..............................82
Average Monthly Rent By Bedroom Type...................89                          Apartment Completions .......................................... 42-46
Average Monthly Rent By Year Completed ................91                          Submarkets......................................................... 119-120
Average Rent Per Square Foot By Bedroom
   Type ......................................................................93
Average Rent Per Square Foot By Year
   Completed.............................................................95
                                                                                                                                                               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
Employment growth in North Texas
continues at a solid pace. 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
66,100 jobs during the year-ending May                          Jobs
2008, with these additions expanding the                100k
region’s employment count by a notable 2.2                75k
percent. If the Dallas and Fort Worth metros
                                                          50k
were combined into a single metropolitan
area, the region would easily rank as the                 25k
nation’s biggest job producer, followed by                 0k
Houston with 58,300 jobs created in the
year-ending May.                                         -25k
                                                         -50k
D/FW’s Financial Activities sector reported
                                                 -75k
some positive news during the past year, as
several banking and insurance companies                 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
announced a batch of hirings. Among                     03 03 04 04 05 05 06 06 07 07 08
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 2nd quarter 2007. The newly
constructed facility houses 700 workers.

In another recent development, AT&T is moving its headquarters from San Antonio to Dallas. The move, which
began in mid-2008, will bring 700 San Antonioans to Dallas, with these workers temporarily housed in the firm’s
downtown location on Akard Street. When the transition is complete, the company will employ a whopping
14,000 workers in the D/FW area, making AT&T the second largest employer in the region (behind Irving-based
Exxon Mobil).

In the Services sector, the Ritz-Carlton Dallas hired 400 workers to support the new 218-room hotel in Uptown,
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.

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, which was recently acquired by Bank of America
Corp., 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


                                                                                                                               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
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.

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. Call center operator PRC closed its Carrollton
facility in mid-2008, leaving 339 workers out of a job. The Florida-based company filed for Chapter 11 bankruptcy
in early 2008. Heinz North America recently shuttered its Portion Pac factory in Far Northeast Dallas, resulting in
the loss of 195 jobs during 2nd quarter 2008.

While North Texas’ economic outlook is predominantly positive, several layoff announcements have recently
been reported in the airline industry. In an effort to survive mounting fuel costs, Fort Worth-based American
Airlines announced plans in 2nd quarter 2008 to slash 8 percent of the 85,000 workers it employs nationwide.
While the total number of positions that will be eliminated in D/FW is not yet known, some 158 workers at
D/FW International Airport will lose their jobs in the coming months. Other major airlines have all followed
suit, with nationwide layoffs anticipated at 4,000 jobs from Delta Airlines, 3,000 positions from Continental
Airlines and 2,500 jobs from Northwest Airlines.




                                                                                                                               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 46,700                                    (Annual Change by Quarter)
jobs during the year-ending May 2008. The
                                                                                     Dallas Area
metro’s employment base grew by 2.2                             Jobs
percent in the past year. Dallas’ year-over-             75k
year increase in new job formation ranked
second highest nationwide.                               50k

At 4.4 percent, Dallas’ unemployment rate is             25k
much lower than the 5.5 percent average
seen for the nation as a whole. The nation’s              0k
unemployment rate has risen sharply over
the past year, as unemployment stood at a               -25k
much lower 4.5 percent one year ago in May
2007.                                                   -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 19,400 positions during the                                         Employment Growth
year-ending May, with these new positions                                    (Annual Change by Quarter)
also producing a 2.2 percent increase in the                                      Fort Worth Area
metro’s employment count.                                       Jobs
                                                         30k
Fort Worth’s unemployment rate stood at
                                                         20k
4.3 percent in May 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 May, as
Services employers added 33,500 positions, pushing the total upward by a healthy 2.9 percent. Roughly 73
percent of these additions took place in the Dallas metro, where 24,400 jobs were created. On a regional level,
Education/Health Services proved to be the sector’s leader. The addition of 14,600 new hires here grew the
subsegment’s job base by a solid 4.6 percent. Regional growth was also healthy in the Professional/Business
Services sector with the boost of 8,800 jobs, while a similar 7,600 new hires were added in the Leisure/
Hospitality Services subcategory. Meanwhile, the catchall Other Services generated a more modest 2,500 jobs
over the past year.

Employment growth was quite robust in the public sector during the year-ending May. Government’s net gain of
10,000 positions equates to an employment base expansion of 2.7 percent – the largest net and percentage
gain in nearly three years. Job production was concentrated in the local government subsector where 9,100
new hires were added. A much more modest 1,900 jobs were created in the state government subsegment,
while 1,000 positions were eliminated on the federal government front.

Bucking the trend seen in many other markets nationwide, North Texas’ Construction sector is still growing
notably. Additions in the Construction category tallied a solid 9,800 jobs in the year-ending May 2008, with
these new jobs expanding D/FW’s Construction sector by a solid 5.3 percent. In contrast, the Construction
industry faltered into a big loss for the nation overall, reporting a 5.4 percent downturn in the past year.

Job production in D/FW’s Trade sector also continues at meaningful volumes. The Trade category posted a
gain of 9,400 positions in the year-ending May 2008, with this tally nearly doubling the 5,400 jobs added in the
year-ending May 2007. Recent Trade additions translated to a solid 2 percent expansion rate. On net, Dallas
actually accounted for a large portion of the region’s Trade-related job growth: the metro created 5,900
positions, while Fort Worth Trade employers added 3,500 Trade jobs in the year-ending May. On a regional
level, wholesalers in Dallas/Fort Worth added 7,300 new hires, while retailers beefed up their payrolls by 2,100
employees.

North Texas’ Financial Activities segment logged another positive performance in the year-ending May 2008.
Employment levels here moved ahead by 4,100 workers during the past 12 months. These new hires expanded
the sector’s job base by 1.8 percent. Of note, most of these positions were generated in Dallas where 3,300
jobs were created.

The employment base in the Information sector expanded a little more recently, with net additions in the year-
ending May coming in at 700 new hires. These jobs drove the employment pool up by 0.8 percent. Job gain
here was fairly spread out across the two metros with Fort Worth contributing 400 jobs and Dallas gaining 300
positions.

Job gain in the Transportation and Utilities sector totaled a scant 200 positions between 2nd quarter 2007 and
2nd quarter 2008. While Fort Worth actually saw the addition of 900 Transportation and Utilities jobs, these
gains were reduced 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 through May 2008. The industry lost 1,600 net
positions between May 2007 and May 2008. All of this downsizing occurred in Dallas (-1,800 positions), while
the job count in Fort Worth’s Manufacturing sector inched up by 200 jobs in the year-ending May.



                                                                                                                               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        68.9       36.7        9.9        8.1        -3.4       4.3       11.7         -0.3    1.9
            2Q 2008        66.1       33.5        9.4       10.0        -1.6       4.1        9.8          0.2    0.7
           Total Jobs    3,008.9    1,177.6     487.3      383.6       296.1      237.1      196.1        141.7   89.4
           % of Total     100%       39.1%      16.2%      12.7%       9.8%       7.9%       6.5%         4.7%    3.0%
           National %     100%       40.7%      15.4%      16.5%       9.8%       5.9%       5.3%         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 1,830 units                                      Apartment Absorption
during 2008’s 2nd quarter. This was the                                       Dallas/Fort Worth Area
second quarter in a row of absorption in                        Units
negative territory, with the number of                    30k
occupied apartments coming down by 3,070                                 Quarterly      Annual
units during the first half of 2008.
                                                          20k
Demand for the year-ending June still was
positive, at 4,170 units, propped up by the
impressive absorption posted during 2007’s                10k
3rd quarter.
                                                           0k
While employment growth in North Texas
has slowed a little from the levels seen
previously, the region still is adding jobs at a     -10k
very brisk pace, so economic trends don’t
                                                          1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
provide much insight into apartment move-
                                                           03 03 04 04 05 05 06 06 07 07 08
outs during 2008’s first half. Furthermore,
while home sales here remain stronger than
in the rest of the country, for-sale demand isn’t as healthy as would be the norm in a period when the local
economy is generating jobs at the pace seen now. Single-family rentals, then, are capturing an unusually large
share of total housing demand, a pattern that was seen more clearly during 2nd quarter than in the 1st quarter
results.

The good news part of the demand story for Dallas/Fort Worth during 2nd quarter was at the top end of the
market. Absorption in the newest tier of product actually surpassed quarterly completions, so brand new
properties just coming on stream are leasing well (and this is in contrast to the pattern exhibited in quite a few
other markets across the country). Furthermore, the occupancy performance in the 1990s-generation stock is
holding up also.

The bad news on the demand front, then, is that significant net move-outs are occurring in the middle tier of the
market’s product spectrum and at the bottom end. Resident losses proved sizable during 2nd quarter across
the 1980s-vintage inventory, the 1970s-era units and the communities built prior to 1970. Significant
backtracking for projects from the 1980s and 1970s was a new pattern for 2nd quarter (or actually a return to the
pattern seen in 2007’s first half). Struggles in the oldest product niche – properties constructed prior to 1970 –
had been seen in 1st quarter 2008 too, but the April-June demand performance wasn’t an exact repeat of the
January-March stats. Whereas the losses right at the start of the year mainly were contained in largely Hispanic
neighborhoods where newly-arrived immigrants were hit with job cuts in the downsizing home construction
sector, 2nd quarter’s net move-outs occurred in a more diverse set of locales.




                                                                                                                            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
It might be surprising for the middle and bottom-end segments of Dallas/Fort Worth’s apartment market to bear
the brunt of the competition from for-lease single-family homes, since top-tier apartment product commands the
higher rents most would associate with the single-family rental selection. In fact, however, specific submarkets
losing residents from middle-tier and bottom-tier apartments tend to be locations with lots of older single-family
homes that could be offered for rent at fairly affordable rates. Examples are Hurst/Euless/Bedford, the two
Arlington submarkets and Haltom City/Richland Hills in metro Fort Worth as well as Garland and Mesquite in
metro Dallas.

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 1st quarter 2008
stood at $142,400, registering notably lower
than the South region average of $164,200
and the U.S. norm of $196,300.

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 modest
annual downturn for D/FW home prices of 2.1 percent as of 2008’s 1st quarter. The Standard & Poor’s Case-
Shiller home price index showed a fairly similar drop of 3.3 percent in Dallas home pricing for the year-ending 1st
quarter.

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 May 2008 fell 37 percent from the annual total as of May 2007, sliding to 14,494 units. In metro Fort
Worth, the decline in annual activity likewise was at 37 percent, with 8,329 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 #13
position. Combining the two metros would move the North Texas region up to the nation’s #2 spot for building
activity, behind only Houston.




                                                                                                                            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’ apartment demand volume for 2nd
quarter 2008 ended up in positive territory:                                    Apartment Absorption
the occupied unit count as of June was up                                                Dallas Area
600 apartments from the March figure. But                        Units
net move-outs seen in early 2008 dampened                 20k
the metro’s year-to-date performance, as                                  Quarterly       Annual
nearly 700 renter households were lost, on
net, during the January-June time period.                 10k

Viewed on an annual basis, apartment
demand in the Dallas metro registered at
3,660 units in the year-ending June.                       0k



                                                         -10k
                                                                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
Dallas/Fort Worth’s net move-outs from
apartments during 2nd quarter 2008 was                                        Apartment Absorption
actually concentrated in Fort Worth, where                                            Fort Worth Area
the occupied unit count dropped by 2,420
                                                          8k Units
apartments. Shadow market single-family                                  Quarterly       Annual
home rentals proved to be particularly
                                                          6k
effective competitors in select Fort Worth
neighborhoods during the April-June period.
                                                          4k
Several mid-cities submarkets, such as
Hurst/Euless/Bedford, North Arlington and
                                                          2k
South Arlington, were hard hit, with each
locale losing more than 400 renter                        0k
households in 2nd quarter alone.
                                                         -2k
With only a marginal gain reported in the
occupied unit count during the initial three             -4k
months of calendar 2008, Fort Worth’s year-
                                                               1Q    3Q    1Q    3Q    1Q   3Q     1Q   3Q   1Q   3Q   1Q
to-date demand performance registered at a
                                                               03    03    04    04    05   05     06   06   07   07   08
similar -2,380 units. This recent outflow of
residents reduced the annual demand tally
in Fort Worth to 510 units.




                                                                                                                            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 June. Following this pattern, absorption
leaders for the year included submarkets that recently received significant blocks of new apartment deliveries,
with these areas including West Plano, Intown Dallas and Las Colinas/Valley Ranch.

On the flip side, negative apartment demand was posted in a handful of North Texas locales during the past
year. By far, the most significant move-outs were really limited to just one submarket: the Highlands area in
northeast Dallas, where most of the decline actually stemmed from apartment removals.

Northern Dallas Submarkets
Nearly all of the six neighborhoods in the                                Apartment Demand Leaders
northern Dallas submarket cluster were                                          July 2007 - June 2008
comparatively strong apartment demand
performers during the year-ending June. The                                                                      Annual
submarket cluster as a whole thus recorded                               Submarket                               Demand
solid apartment demand for 2,020 units in the              West Plano                                              920 units
past year. Looking at more recent trends,                  Intown Dallas                                           870 units
however, a mild block of net move-outs totaling            Las Colinas/Valley Ranch                                740 units
230 units was recorded in 2008’s April-June                East University/Vickery                                 670 units
time period.                                               East Plano                                              630 units
                                                           Duncanville/DeSoto/Cedar Hill/Lancaster                 460 units
Leading the way for the group and the D/FW
                                                           Southwest Fort Worth                                    450 units
region as a whole, West Plano absorbed 920
apartments in the year-ending mid-2008.                    Lewisville                                              430 units
Absorption of the units in new deliveries played           Denton                                                  420 units
a key role in the total demand picture, as                 Haltom City/Richland Hills                              350 units
communities totaling 1,074 apartments came
online during the past 12 months. In fact, most of West Plano’s annual demand momentum originated in the
large segment of communities built in 2000 or later, where some backfilling of existing vacancies also occurred.

Demand totaling 20 units in 2nd quarter 2008 pushed East Plano’s year-ending June absorption volume to 630
units. This was the region’s fifth highest annual demand tally.

In North Dallas, absorption of 160 units during 2008’s April-June time period took annual demand as of June to
a solid 340 units. This gain in the occupied apartment count served to backfill previous vacancies in the existing
stock, since there weren’t any new apartment completions.

Carrollton/Farmers Branch/Addison also posted comparatively solid apartment demand during the year-ending
June. Annual absorption registered at 250 units with this total helped by the gain of 50 renter households during
2nd quarter, specifically. Due to a host of teardowns occurring in the Addison area, the submarket’s inventory
stock actually decreased during the past year, easing by a little more than 900 units. With demand surpassing
net inventory change by such a large margin, apartment communities remaining active in the area actually
picked up quite a few residents.

At the other end of the performance spectrum, net move-outs were seen in one northern Dallas submarket.
Richardson suffered the loss of 400 renter households between June 2007 and June 2008. A large portion of
this negative demand tally was actually due to a net inventory reduction: some 332 units were removed from

                                                                                                                            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
Richardson’s rental pool in the past year. But since the negative demand tally was greater than the net
inventory decline, traditional rental communities lost a handful of residents in the past 12 months.

Northwestern Dallas Submarkets
The northwestern Dallas cluster of neighborhoods recorded a year of notable demand, as apartment absorption
totaled 1,640 units during the past 12 months. Recent leasing momentum was quite healthy with the addition of
500 renter households recorded during 2nd quarter, specifically.

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 June
2008. Annual demand in the neighborhood reached 740 apartments, despite the loss of a minor 20 units seen
in the April-June time period. Yearly absorption in Las Colinas/Valley Ranch ran a little behind concurrent new
supply that totaled 875 units.

Helped by the addition of 240 renter households during 2nd quarter, Lewisville’s occupied apartment count
increased by 430 units during the year-ending June. With concurrent new supply at a lesser 288 apartments, a
portion of the annual absorption figure here served to backfill vacancies in the existing product base.

Following a similar pattern, quarterly demand for 100 apartments in Denton took that submarket’s annual
absorption total to 420 units. Completions totaling roughly 280 apartments during the year-ending mid-2008
helped fuel demand, but some backfilling of previous vacancies in the existing stock also occurred.

In West Irving, a solid gain of 160 renter households seen during the April-June time frame erased prior losses
and left absorption at a similar 150 units during the year-ending 2nd quarter. This absorption volume served to
backfill quite a few previously vacant units during the past year, since no new deliveries came online.

East Irving was the only northwestern Dallas submarket to suffer net move-outs in the year-ending June. On
net, the submarket lost 100 previously occupied units during the past year.

Fort Worth Submarkets
While leasing activity at Fort Worth’s traditional apartment communities in 2008’s 2nd quarter proved especially
weak, the metro still was able to record positive demand on an annual basis as of mid-year. The Fort Worth
submarkets combined to absorb just over 500 units during the year-ending June, with this figure registering
positive despite recent net move-outs in April-June that totaled 2,420 units.

Southwest Fort Worth was the strongest apartment demand performer in the Fort Worth area, absorbing a solid
230 apartments during 2nd quarter and 450 units during the year-ending mid-2008. However, annual demand
was unable to keep pace with concurrent new supply which totaled 630 apartments.

While Haltom City/Richland Hills lost 190 apartment renter households during the April-June time period, strong
demand earlier in the year propped up the annual result. On net, 350 units were leased between June 2007 and
June 2008. With only 189 units of new supply coming online during the past year, a portion of the submarket’s
annual absorption tally served to backfill previously vacant units.

Apartment demand in South Fort Worth totaled 210 units during the year-ending June, despite the loss of 150
renter households seen during April-June, specifically.




                                                                                                                            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
The Intown/Cultural District witnessed demand for a solid 190 units during the past 12 months. The submarket
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.

The Hurst/Euless/Bedford submarket really struggled in the April-June time period, but – similar to the
performances seen throughout most of the metro – this quarterly stumble didn’t completely erase previous
progress. Net move-outs here totaled a hefty 470 units during 2nd quarter 2008. However, the submarket’s
occupied unit count was still up by 150 units for the year-ending June. A wide array of single-family homes is
being offered for lease in the area, providing stiff competition for traditional apartment communities.

Looking at Fort Worth’s weaker annual performers, four submarkets recorded a moderate block of negative
demand during the year-ending June. Woodhaven suffered net move-outs totaling 230 units specifically during
2008’s 2nd quarter, and that quarterly loss took annual demand into negative territory at -120 units. Leasing
struggles were particularly severe recently in South Arlington, with this performance likely impacted by the
abundance of single-family homes offered for lease. The occupied apartment count dropped by a whopping 840
units during 2nd quarter, bringing demand down to -120 units for the year as a whole. With the loss of 220
apartment renter households during the April-June time period, Ridglea/Ridgmar recorded net move-outs
totaling 270 units during the year-ending mid-2008. Western Hills recorded Fort Worth’s largest block of annual
net move-outs, with 410 renter households departing from the submarket’s leasing pool.

Southern Dallas Submarkets
The southern Dallas cluster of neighborhoods recorded a year of moderate apartment demand, as absorption
totaled 420 units during the year-ending mid-2008. Virtually all of the past year’s demand originated during 2nd
quarter specifically with the addition of 410 renter households.

Duncanville/DeSoto/Cedar Hill/Lancaster was the most impressive apartment absorption performer in the
southern Dallas cluster of submarkets during the year-ending June. Absorption of 350 apartments in 2nd
quarter 2008 pushed the annual result to a healthy 460 units. Apartment demand registered a bit behind the
roughly 600 apartments that came on stream during the past year.

Annual demand in Grand Prairie stood at 310 units despite net move-outs from 90 units that occurred
specifically between March and June. With new supply during the year-ending June totaling a lesser 186 units,
some backfilling of previous vacancies occurred. Grand Prairie has a host of new apartments still available for
lease-up, so it was no surprise to see that leasing activity was particularly healthy in top-of-the-market
communities built in 2000 or later.

In North Ellis County, demand for 80 units in the April-June time frame brought the submarket’s occupied unit
count as of mid-2008 back in line with the mid-2007 level.

Looking at the weaker performers, the remaining southern Dallas locales posted mild to moderate net move-
outs in the past year. Resident loss during the year-ending 2nd quarter totaled 10 units in Southwest Dallas, 60
units in South Dallas and 280 units in Oak Cliff. Net move-outs in Oak Cliff were especially bad news since the
submarket’s rental pool grew by 100 new units in the past year.

Central Dallas Submarkets
Apartment demand was back in positive territory in central Dallas. The submarket cluster absorbed a solid 750
units during 2nd quarter 2008, with these move-ins erasing previous losses and taking the occupied unit count
as of June up by 280 units from the year-earlier level.



                                                                                                                            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
Intown Dallas ranked as one the strongest apartment demand performers across North Texas during April-June
2008, absorbing 420 units. This healthy quarterly demand took absorption in the year-ending 2nd quarter to 870
units, the second best annual tally seen in the region. Though sizable, yearly absorption fell short of new
apartment supply, which came in at 1,255 units.

Solid demand also registered in the East University-Vickery locale, as a notable block of new apartment product
prompted one of the region’s strongest absorption tallies. The submarket absorbed 580 units during the 2nd
quarter, with this quarterly boost bringing demand for the year-ending June to 670 units. In comparison, new
apartment deliveries during the past year totaled a lesser 496 units, allowing for some backfilling of existing
vacancies.

Moderate annual demand as of June registered in two other spots across the central Dallas cluster of
submarkets. East Dallas absorbed 240 units, with all of that demand serving to backfill previous vacancies in
the existing stock given that there weren’t any new product deliveries. The Far Northwest Dallas submarket saw
a gain of 230 renter households in the past year, with this tally pretty similar to the 226 apartments completed.

Looking at the below-average performers in the central Dallas submarket cluster, three neighborhoods saw the
occupied unit count contract in the past 12 months. Resident loss totaled 70 units in Near North Dallas, while
Northwest Dallas saw the departure of 120 previously occupied units. In the Highlands area, annual net move-
outs from a whopping 1,570 units was the most pronounced decline seen 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 – accounting for the majority of the net move-out figure. Still, there was some
resident loss among active apartment communities in the Highlands area, with occupancy cooling more than 3
percentage points between June 2007 and June 2008.

Eastern Dallas Submarkets
The eastern Dallas submarket cluster turned in North Texas’ weakest performance with net move-outs recorded
for both the quarter and the year. Combined neighborhoods in the cluster lost 820 apartments during 2nd
quarter, pulling annual absorption into negative territory at -710 units.

Mesquite’s loss of 340 renter households in April-June left absorption during the year-ending June at -170 units.
In Far East Dallas, the loss of 100 apartments in 2nd quarter took demand to -230 units in the year-ending mid-
2008. These net move-outs caused occupancy to soften roughly 1 to 2 points in each area between 2nd quarter
2007 and 2nd quarter 2008.

Garland lost a hefty block of renter households totaling 380 units between March and June. As a result, annual
demand sank into negative territory with 310 net move-outs recorded in the year-ending 2nd quarter. In
comparison, the submarket’s net inventory increased by roughly 20 units in the past year (318 apartments in
new supply versus 296 units removed from the operating pool).




                                                                                                                            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
                                         July 2007 - June 2008
                                              New                  Net Inventory                         Units
                       Submarket            Supply      Removals     Change                            Absorbed
           21   Intown Dallas                   1,255            0          1,255                              870
           22   South Dallas                       80            0             80                              -60
           24   Oak Cliff                         100            0            100                             -280
           25   Dunc/DeSoto/CH/Lancaster          591            0            591                              460
           26   Grand Prairie                     288          102            186                              310
           27   East Irving                          0           0              0                             -100
           29   Oak Lawn/Park Cities              278          185             93                               20
           30   Far Northwest Dallas              226            0            226                              230
           31   Carrollton/FB/Addison             333        1,252           -919                              250
           32   Near North Dallas                    0          37            -37                              -70
           34   East Dallas                          0          23            -23                              240
           35   Highlands                            0       1,297         -1,297                          -1,570
           36   Richardson                           0         332           -332                             -400
           37   Garland                           318          296             22                             -310
           38   Mesquite                             0           0              0                             -170
           39   Southwest Dallas                     0           0              0                              -10
           40   Far East Dallas                      0           0              0                             -230
           41   East University-Vickery           496          137            359                              670
           42   Northwest Dallas                     0         242           -242                             -120
           43   West Irving                          0           0              0                              150
           44   North Dallas                         0           0              0                              340
           45   Far Northeast Dallas                 0           0              0                               10
           47   Far North Dallas                  332            0            332                              140
           48   Las Colinas/Valley Ranch          875          167            708                              740
           81   Denton                            278            0            278                              420
           82   Lewisville                        288            0            288                              430
           85   West Plano                      1,074            0          1,074                              920
           86   East Plano                           0           0              0                              630
           87   Allen/McKinney                    348           13            335                              140
           88   North Ellis County                   0           0              0                                0
                DALLAS AREA                     7,160        4,083          3,077                           3,660




                                                                                                                            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
                                           July 2007 - June 2008
                                                New                  Net Inventory                       Units
                      Submarket               Supply      Removals     Change                          Absorbed
           52   South Fort Worth                    252            0            252                            210
           53   Southwest Fort Worth                630            0            630                            450
           54   Ridglea/Ridgmar                        0         240           -240                           -270
           55   Western Hills                          0           0              0                           -410
           56   Intown/Cultural District               0         258           -258                            190
           58   North Fort Worth                    312            0            312                             30
           59   Woodhaven                              0           0              0                           -120
           60   Centreport                             0           0              0                              0
           70   North Arlington                        0           0              0                             10
           71   South Arlington                        0         103           -103                           -120
           72   Southwest Tarrant County               0           0              0                             50
           73   Northwest Tarrant County               0           0              0                            -40
           74   Northeast Tarrant County            177            0            177                             20
           75   Haltom City/Richland Hills          189            0            189                            350
           76   Hurst/Euless/Bedford                   0           0              0                            150
                FORT WORTH AREA                   1,560          601            959                            510
                D/FW AREA                         8,720        4,684         4,036                          4,170
            * Submarket totals may not add to area total because of rounding.




                                                                                                                            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 2nd quarter 2009 to total some                                            Dallas/Fort Worth Area
50,000 to 55,000 positions, off from the                        Units
                                                         30k
annual growth pace seen currently but still
enough to produce substantial total housing
demand.                                                  20k

The fact that the demand performance
during the first half of 2008 fell below M/PF        10k
YieldStar’s expectations causes some
concern about the absorption outlook.
However, conditions in the factors that will          0k
influence near-term demand haven’t really
changed much from those seen during the                                     Quarterly    Annual       Forecast
robust leasing period of late 2007, so the          -10k
forecast presented previously gets only a                1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
little fine-tuning for the quarter, with this shift       03 03 04 04 05 05 06 06 07 07 08 08 09
mainly reflecting an upturn in scheduled
apartment deliveries. M/PF YieldStar still
anticipates that apartments will capture a fairly impressive share of total housing demand. This outlook
assumes that first-time home purchases will be below the historical norm during the coming year, though the
forecast actually does allow for some rebounding in home sales relative to the volumes being recorded
specifically in 2008’s first half. 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, with that shadow market option losing favor from the pattern seen most recently. Among the
factors that should help traditional apartments regain some popularity, some renters will move into for-lease
homes that end up in foreclosure, and others will miss the greater level of service generally available in
professionally-managed apartments. (The performances of alternative rentals are the real wild card in the whole
scenario. Over the course of the past year or so, those shadow market rentals seemed 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 June 2009
reaches 10,900 units, viewed relative to new completions at roughly 13,300 units. In actuality, apartment
demand should be somewhat weaker than the figure of 10,900 units, as teardowns will hold inventory growth
under the mark of 13,300 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 moderately 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 7,100 units during the year-                                    Apartment Absorption
ending June 2009, compared to just over                                              Dallas Area
                                                                  Units
9,600 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                  10k
where 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 mid-2009 at 3,800 units. A notable
                                                                                  Fort Worth Area
increase in new product availability will help                  Units
trigger demand above the metro’s recent                   8k
norm. Some 3,650 units are expected to
                                                          6k
enter Fort Worth’s leasing pool in the next
12 months.                                                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, West Plano, North Fort Worth and Allen/McKinney appear likely to be the region’s absorption leaders
during the year-ending June 2009. Other submarkets where completions should help drive demand to notable
volumes include Carrollton/Farmers Branch/Addison, South Arlington, Richardson and Las Colinas/Valley
Ranch. Still, following the regional trend, demand is not expected to keep pace with deliveries in these areas.

Fort Worth Submarkets
The submarkets in the Fort Worth cluster are                        Forecast Apartment Demand Leaders
forecast to absorb 3,800 units during the year-                                 July 2008 - June 2009
ending 2nd quarter 2009.
                                                                                                                 Annual
North Fort Worth is the submarket likely to lead                             Submarket                           Demand
the way in this part of the region, reflecting that        Intown Dallas                                          1,460 units
the neighborhood has 1,380 units in properties             West Plano                                             1,370 units
scheduled to finish construction in the next
year. Apartment demand in the North Fort                   North Fort Worth                                       1,010 units
Worth area during the year-ending June 2009                Allen/McKinney                                           980 units
is anticipated at 1,010 apartments.                        Carrollton/Farmers Branch/Addison                        650 units
                                                           South Arlington                                          600 units
Completions also should help spur demand for
600 units in South Arlington, with this total              Richardson                                               580 units
falling a bit short of the 730+ apartments slated          Las Colinas/Valley Ranch                                 460 units
to complete in the next year.                              Southwest Fort Worth                                     290 units
                                                           Northeast Tarrant County                                 280 units
Woodhaven appears well-positioned to
achieve some backfilling of current vacancies
in the existing stock. Absorption is forecast at 220 units in the year-ending mid-2008, while no new apartments
are scheduled for completion.

Moderate demand is also expected in the Intown/Cultural District (210 units), Western Hills (200 units) and
Northwest Tarrant County (190 units) areas. Though solid, absorption falls short of the new deliveries expected
in each area during the next year.

North Arlington will be in a particularly favorable position to backfill current vacancies in the existing stock.
Demand here is forecast at 180 units in the year-ending mid-2009, while no new supply is targeted for delivery.

Northern Dallas Submarkets
Absorption in the northern Dallas submarket cluster is anticipated to total almost 3,600 units in the coming year.
While new product availability will be a key factor spurring demand above the submarket cluster’s recent norm,
absorption will likely fall far short of the aggressive construction levels: nearly 5,000 units are scheduled to enter
the marketplace in the next 12 months.

Since West Plano, Allen/McKinney and Carrollton/Farmers Branch/Addison are scheduled to add meaningful
blocks of new supply in the near term, these neighborhoods are expected to be northern Dallas’ demand
leaders through mid-2009. In West Plano, absorption is anticipated near 1,370 units, whereas targeted new
supply reaches more than 1,950 units. For Allen/McKinney, the expected absorption tally is 980 units,
compared to 1,258 apartments targeted to come on stream. At 650 units, forecast demand in the coming year
also is notable in Carrollton/Farmers Branch/Addison, where 1,054 apartments should be delivered.
                                                                                                                            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
At the next tier of performance, anticipated demand registers at 580 units in Richardson, which should add 714
units of new supply.

Looking elsewhere in the submarket cluster, absorption is predicted at a minor 20 units in Far North Dallas,
whereas no demand seems likely in North Dallas. East Plano’s occupied unit count is expected to dip by 30
units in the coming year.

Central Dallas Submarkets
The nine neighborhoods in the central Dallas submarket cluster are forecast to absorb 1,910 units during the
year-ending mid-2009.

Intown Dallas appears likely to hold its usual dominant position in the central Dallas submarket grouping with
absorption in the coming year anticipated at 1,460 units. New deliveries play a key role in the area’s total
demand picture as communities totaling nearly 1,900 apartments are scheduled to come online through June
2009, with these additions growing the submarket’s rental base by 13 percent.

Coming in at a distant second place for expected demand in the central Dallas submarket cluster, the East
University-Vickery area is presaged to absorb 150 units in the year-ending 2nd quarter 2009, compared to future
product additions totaling 325 apartments. Similarly, absorption in Northwest Dallas is forecast at 110 units, a
little lower than scheduled new supply of 181 units.

Mild backfilling of current vacancies is expected across several central Dallas submarkets that aren’t slated to
receive any new supply. Absorption through June 2009 is forecast at 10 to 70 units apiece for Far Northeast
Dallas, the Highlands area, Oak Lawn/Park Cities and Near North Dallas. No meaningful demand is expected in
Far Northwest Dallas and East Dallas during the year-ending mid-2009.

Northwestern Dallas Submarkets
For the northwestern Dallas submarket cluster, forecast demand during the year-ending June 2009 comes in at
860 units, moderately under the nearly 1,300 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 moderate blocks of new apartment deliveries. Absorption through mid-
2009 is forecast at 460 units in Las Colinas/Valley Ranch, compared to targeted completions of 623 units.
Lewisville’s annual demand tally should register at 260 units, with nearly 470 units planned for delivery in the
same time frame.

The Denton submarket should register demand for 130 units, versus slated new supply totaling 192 apartments.

A little backfilling of current vacancies probably is on the horizon in West Irving (10 units), while no meaningful
change in East Irving’s occupied unit count is expected by mid-2009.

Southern Dallas Submarkets
Near-term absorption in the southern Dallas submarket cluster is forecast to remain pretty moderate at 400 units
in the year-ending June 2009.

Annual absorption in Oak Cliff is expected at 230 units, triggered by anticipated new supply of nearly 300 units.
In Duncanville/DeSoto/Cedar Hill/Lancaster, 136 new apartments will help spur demand for 60 units by mid-year
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
Meanwhile, mild backfilling is expected elsewhere in the southern Dallas zone, with demand forecast at 60 units
in South Dallas, 40 units in Grand Prairie and 20 units in Southwest Dallas. On the flip side, North Ellis County
will likely see the occupied unit count decrease a bit (-10 units) in the coming year.

Eastern Dallas Submarkets
Among the eastern Dallas submarkets, Garland and Mesquite should put up fairly meaningful absorption
performances during the year-ending June 2009, reflecting that these areas will add some new supply. Annual
demand is anticipated at 150 apartments in both submarkets.

Backfilling a few of the current vacancies, 60 units of demand is anticipated in Far East Dallas.



                        ANNUAL APARTMENT ABSORPTION FORECAST BY SUBMARKET
                                                              July 2008 - June        2009
                                                                Units                                                Units
                         Submarket                            Absorbed                         Submarket           Absorbed
           21    Intown Dallas                                    1,460 81            Denton                            130
           22    South Dallas                                        60 82            Lewisville                        260
           24    Oak Cliff                                          230 85            West Plano                      1,370
           25    Dunc/DeSoto/CH/Lancaster                            60 86            East Plano                         -30
           26    Grand Prairie                                       40 87            Allen/McKinney                    980
           27    East Irving                                          0 88            North Ellis County                 -10
           29    Oak Lawn/Park Cities                                50               DALLAS AREA                     7,100
           30    Far Northwest Dallas                                 0 52            South Fort Worth                  260
           31    Carrollton/FB/Addison                              650 53            Southwest Fort Worth              290
           32    Near North Dallas                                   10 54            Ridglea/Ridgmar                     70
           34    East Dallas                                          0 55            Western Hills                     200
           35    Highlands                                           60 56            Intown/Cultural District          210
           36    Richardson                                         580 58            North Fort Worth                1,010
           37    Garland                                            150 59            Woodhaven                         220
           38    Mesquite                                           150 60            Centreport                          70
           39    Southwest Dallas                                    20 70            North Arlington                   180
           40    Far East Dallas                                     60 71            South Arlington                   600
           41    East University-Vickery                            150 72            Southwest Tarrant County            50
           42    Northwest Dallas                                   110 73            Northwest Tarrant County          190
           43    West Irving                                         10 74            Northeast Tarrant County          280
           44    North Dallas                                         0 75            Haltom City/Richland Hills          80
           45    Far Northeast Dallas                                70 76            Hurst/Euless/Bedford                90
           47    Far North Dallas                                    20               FORT WORTH AREA                 3,800
           48    Las Colinas/Valley Ranch                           460               D/FW AREA                      10,900
             * 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 561,460 units as of June 2008.
                                                                                 Dallas/Fort Worth
The region’s inventory grew 1 percent in the
                                                                 Units
past year, with this expansion on par with                575k
the 1.2 percent average annual growth pace
posted over the past five years.

Of North Texas’ apartment inventory as of                 525k
mid-2008, Dallas’ share amounted to
411,641 units, or 73 percent of the region’s
existing base, while Fort Worth’s inventory               475k
stood at 149,819 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 1 percent
during the year-ending June 2008. This
growth was about in line with the expansion
                                                                          Existing Apartment Units
                                                                                    Dallas Area
pace of 1.2 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
0.8 percent between 2nd quarter 2007 and
2nd quarter 2008. The past year’s
                                                                           Existing Apartment Units
performance was a bit slower than the                                             Fort Worth Area
                                                                 Units
average expansion pace of 1.4 percent seen                175k
over the past five years.

                                                          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
                                                2nd Quarter 2008
                                               Total   Total
                 Submarket                    Comm.    Units     Eff    One     Two                        Three
            21   Intown Dallas                    104   14,421     413   7,885   5,020                        725
            22   South Dallas                     114   12,796     117   3,495   6,230                      1,687
            24   Oak Cliff                        119   11,536     243   4,264   5,458                      1,246
            25   Dunc/DeSoto/CH/Lancaster          52     7,994      18  3,238   3,882                        658
            26   Grand Prairie                     76   13,980     225   6,017   6,218                      1,186
            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     3,413    238   1,176   1,541                        458
            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                      188     7,945    672   5,079   1,999                        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   16,472     470   6,847   7,530                      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           86   20,942   1,437 12,119    6,768                        618
            42   Northwest Dallas                  74   10,147     616   6,225   2,927                        356
            43   West Irving                       93   18,172     389   9,608   7,479                        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 12,016 10,378                         983
                 Dallas County                  2,115 331,273    9,369 165,145 133,220                     18,887
                 City of Dallas                 1,354 198,195    7,458 104,540 72,565                      10,734
                 Not in City                      761 133,078    1,911 60,605 60,655                        8,153
            81   Denton                           161   13,088     755   4,822   5,065                      1,708
            82   Lewisville                        87   22,356     175   9,856   9,885                      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  1,026   1,766                        318
                 DALLAS AREA                    2,582 411,641 10,623 199,182 168,807                       26,066




                                                                                                                              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
                                                 2nd Quarter 2008
                                                Total   Total
                 Submarket                     Comm.    Units     Eff    One    Two                        Three
            52   South Fort Worth                   50     4,925    104   1,827  2,012                        482
            53   Southwest Fort Worth               81   16,339     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   10,254     236   5,527  4,203                        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   27,181     920 11,707 11,315                       2,715
            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                   908 149,819    3,800 70,919 61,327                       9,582
                 City of Fort Worth                336   54,348   1,124 26,387 21,304                       3,363
                 Not in City                       572   95,471   2,676 44,532 40,023                       6,219
                 D/FW AREA                       3,490 561,460 14,423 270,101 230,134                      35,648




                                                                                                                              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
                                                 2nd Quarter 2008
                                          Total    Total
           Submarket                     Comm.     Units     2000+    90-99   80-89                    70-79   Pre-70
      21   Intown Dallas                     104    14,421     7,327   4,776     798                       46   1,096
      22   South Dallas                      114    12,796     2,505     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           52     7,994     1,345     452   4,943                    1,031       25
      26   Grand Prairie                      76    13,980     3,778   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     3,413       428     n.a.    n.a.                   2,503      482
      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                       188     7,945       516     489   2,156                      841   3,900
      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    16,472     1,575     746   8,830                    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            86    20,942     1,975     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    18,172       625     n.a. 12,916                    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     4,990   8,726   9,186                      533      n.a.
           Dallas County                   2,115 331,273      44,124  43,301 122,058                   74,655 42,483
           City of Dallas                  1,354 198,195      24,598  24,693  62,917                   51,589 31,500
           Not in City                       761 133,078      19,526  18,608  59,141                   23,066 10,983
      81   Denton                            161    13,088     2,970   1,128   5,191                    2,226      835
      82   Lewisville                         87    22,356     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     1,174      96   1,613                      203       48
           DALLAS AREA                     2,582 411,641      71,194  65,537 144,113                   79,661 44,173




                                                                                                                              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
                                                2nd Quarter 2008
                                         Total    Total
           Submarket                    Comm.     Units     2000+    90-99   80-89   70-79   Pre-70
      52   South Fort Worth                  50     4,925       350     152     908     665   2,350
      53   Southwest Fort Worth              81    16,339     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    10,254       364     131   7,632   1,834      293
      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    27,181     3,773     968  10,784   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                  908 149,819      19,074  12,723  69,580  26,492 17,759
           City of Fort Worth               336    54,348     7,765   5,689  24,648   6,846    7,230
           Not in City                      572    95,471    11,309   7,034  44,932  19,646 10,529
           D/FW AREA                      3,490 561,460      90,268  78,260 213,693 106,153 61,932




                                                                                                                              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
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                                                                                                                   Supply
Current Trends

Region Overview
Six properties containing 1,459 rental units
completed construction in North Texas                                           Apartment Completions
during 2nd quarter 2008. With a fairly                                            Dallas/Fort Worth Area
sizable block of new apartments coming                          Units
online in early 2008, North Texas’                        16k
completion volume in the first half of                                                               Quarterly     Annual
calendar 2008 totaled more than 5,000                     12k
units.

New supply in the year-ending June, then,                  8k
came in at 8,720 units, with this annual
delivery pace falling a bit short of the
historical average: about 10,600 new units                 4k
came online on an annual basis during the
2002-2006 time period.
                                                           0k
Of note, apartment removals were quite                 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
notable in the Dallas/Fort Worth area, with            03 03 04 04 05 05 06 06 07 07 08
this trend limiting the region’s inventory
growth. Some 4,700 units were demolished
or removed from inventory during the past year, so the North Texas apartment base grew, on net, by a little
more than 4,000 units.




Dallas Area
Apartment builders wrapped construction on
983 new units in Dallas during April-June                                  Apartment Completions
2008. These additions brought new supply
                                                                 Units                Dallas Area
in the first six months of 2008 to roughly                15k
3,400 units, while the completion tally for the                                                     Quarterly      Annual
year-ending June registered at 7,160 units.

Of note, actual net inventory growth was                  10k
only about half of the total completion
volume. Nearly 4,100 units were removed
from Dallas’ rental stock during the past 12
months, leaving net inventory change for the               5k
year at 3,077 units. Demolitions have been
especially meaningful in Dallas’ urban core
and the Carrollton/Farmers Branch/Addison
area, where several sites have been                        0k
earmarked for redevelopment.                                    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
New apartment completions in metro Fort
Worth have come online at a fairly erratic                                  Apartment Completions
pace of late. Some 476 units finished
                                                                                  Fort Worth Area
construction in 2nd quarter 2008, taking                       Units
                                                          4k
completions during the first half of the year                                                     Quarterly        Annual
to 1,560 units.
                                                          3k
With no new additions seen during the latter
half of calendar 2007, Fort Worth’s supply
tally during the year-ending June also                    2k
totaled 1,560 units.

                                                          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,
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Current Trends: Submarket Highlights
New apartment completions were fairly spread out
across North Texas during the year-ending June.                                  New Supply Leaders
However, the hefty block of supply that recently                                  July 2007 - June 2008
completed in the Intown Dallas neighborhood                                  Submarket                               Units
made the central Dallas submarket cluster a                    Intown Dallas                                      1,255 units
particularly active region. The northern Dallas
                                                               West Plano                                         1,074 units
submarket cluster followed closely behind,
                                                               Las Colinas/Valley Ranch                             875 units
boosted by a sizable volume of completions in the
West Plano area.                                               Southwest Fort Worth                                 630 units
                                                               Duncanville/DeSoto/Cedar Hill/Lancaster              591 units
Looking at other neighborhood-level                            East University-Vickery                              496 units
performances, the Las Colinas/Valley Ranch,                    Allen/McKinney                                       348 units
Southwest Fort Worth, Duncanville/DeSoto/Cedar                 Carrollton/Farmers Branch/Addison                    333 units
Hill/Lancaster and East University-Vickery                     Far North Dallas                                     332 units
submarkets also received a meaningful blocks of                Garland                                              318 units
new deliveries in the past year.

Central Dallas Submarkets
Combined neighborhoods in the central Dallas submarket cluster received 2,255 units of new supply during the
year-ending 2nd quarter. More than half of these new apartment completions registered in the Intown Dallas
area, where construction wrapped up on seven communities totaling a metro-leading 1,255 apartments. Four of
these projects completed in downtown Dallas, an area that has seen several former office buildings receive a
new lease on life as luxury rental apartments.

                                                The largest rehab project that recently completed in downtown Dallas
                                                was the highly-anticipated Mosaic, located at North Akard Street and
                                                Pacific Avenue. After successfully transforming both the Davis
                                                Building and the Dallas Power and Light complex into apartments,
                                                Hamilton Properties purchased the 21-story Fidelity Union Building
                                                and the neighboring 31-story Mayflower Building on Thanks-Giving
                                                Square and converted these towers into 435 upscale rental
                                                apartments. Named Mosaic as a tribute to the ceramic tile design of
                                                the towers, the project boasts a unique range of 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. The
                                                rehab project finished in March 2008.

                                                A few blocks south of Mosaic, Main Street received three new
                                                apartment properties in the past year. Forest City Enterprises recently
                                                delivered one of its Main Street projects, transforming the Mercantile
                                                Bank complex at Main and South Ervay Streets into the Mercantile
                                                Place on Main complex. After being vacant for nearly 15 years, the
                                                original 63-year-old, 31-story clock tower now offers residents 213
                                                apartments and a choice of over 50 different floor plans. In addition,
    The ultra-hip Mosaic offers 435 units       the clock tower also contains a 3,000 square-foot penthouse home
   and several luxurious amenities in two       with 360-degree views of the city. The environmentally-friendly
   former downtown Dallas office towers.
                                                                                                                              33

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
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                                                         apartment units include carpets made out of recycled
                                                         materials and countertops produced from crushed glass.
                                                         Construction wrapped up in early 2008. Next door, the 15-
                                                         story Element is rising from the ground. Forest City
                                                         Enterprises expects this completely new tower, which will
                                                         contain 153 units on top of roughly 30,000 square feet of retail
                                                         space to complete in late 2008.

                                                    Traveling a few blocks east on Main Street, another 100 units
                                                    came online by way of the final two installments of the Third
                                                    Rail Lofts project. Spectrum Properties completed
                                                    construction in March 2008 on Third Rail Lofts’ final addition:
                                                    a brand new 18-story tower containing 84 units at 1407 Main
                                                    Street. This tower, one of the first new residential structures
                                                    to come online in downtown Dallas in nearly four decades,
                                                    features two sundecks, a ninth floor terrace, and sunlit pool.
                                                    Earlier in the past year, Spectrum completed 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
     The new apartment tower at 1407 Main Street in amenities include polished concrete flooring, granite
      downtown Dallas is the final segment of the   countertops and stainless steel appliances. Also forming part
               Third Rail Lofts complex.            of the Third Rail Lofts project, the 78-year-old Gulf States
                                                    Building was transformed into 66 units, with this project
delivered in early 2007. The entire Third Rail Lofts development, then, adds more than 160 apartments to
downtown Dallas’ rental stock. Of note, 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.

The remaining three apartment completions in the Intown
Dallas area came online just north of downtown in the
thriving Victory Park and Uptown areas where several high-
rise residential projects are still under construction. Hanover
Co. just completed the final units in the highly-anticipated
Cirque in Victory Park in June. The 28-story tower includes
252 luxurious apartments with rents ranging from $2,400 to
$10,000 for a penthouse unit. The seventh floor of the
building contains an aqua lounge, fitness center, tennis court
and resort-style pool, while the ground floor holds 11,000
square feet of retail space. The ultra-luxurious property sits
right across the street from the American Airlines Center.

Moving northwest into the Uptown area, the second phase of
the upscale Gables Villa Rosa community came online in

                                                                                                                              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.
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                                                                                            Apartment Report
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May 2008 (the first phase finished in May 2006). The 245-unit addition is located near Cole Avenue and Vine
Street. Moving east to the intersection of Hugo Street and Thomas Avenue (just west of U.S. 75), a new 12-unit
rental complex recently came online in January 2008. Califco LLC’s project, dubbed 3200 Thomas, originally
started out as for-sale condos but was repositioned as rental product before construction wrapped up. Gables
Villa Rosa and 3200 Thomas are surrounded by four additional rental communities rising in the Uptown area.
Once finished, these four projects will combine to total nearly 1,200 units.

Turning to the East University-Vickery submarket, one property finished construction in the past year. Lincoln
Property Co. recently completed a redevelopment project in the massive Village community. The 496-unit
Dakota in the Village replaces two demolished Village complexes that were built during the 1970s. While
apartments in the older buildings averaged just 650 square feet, units in the Dakota are on the larger side,
averaging 900 square feet. Final-unit build-out completed in early 2008.

                                                                         The Oak Lawn/Park Cities submarket received
                                                                         a new community in the year-ending June.
                                                                         First Worthing Co. finished construction in
                                                                         August 2007 on the 278-unit Cityville at
                                                                         Southwestern Medical District. A few steps
                                                                         away, the Alexan Southwestern apartment
                                                                         community is taking shape. Trammell Crow
                                                                         Residential recently started construction on the
                                                                         396-unit complex, with completion set for 3rd
                                                                         quarter 2009. Future improvements in the area
                                                                         include a DART station at Motor and Bengal
                                                                         Streets (set to open in 2010), 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 new apartment complex in the past 12
months. American Realty Trust delivered the 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 June
include East Dallas, 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 2,300 rental apartments are currently being
built in the Intown Dallas submarket, and another 800 units are under way in the Oak Lawn/Park Cities locale.

Northern Dallas Submarkets
The northern Dallas submarket cluster received seven new additions during the past year, yielding an annual
delivery total of roughly 2,100 apartments. More than half of this new supply was brought online in West Plano,
where 1,074 new units were completed in four communities.

In West Plano, a cluster of new apartment properties are cropping up close to the intersection of S.R. 121 and
Coit Road, near the 40-acre Centennial Medical Center. The area recently saw the addition of three new

                                                                                                                              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,
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                                                                         communities, while four additional apartment
                                                                         projects are still under development nearby. In
                                                                         November 2007, UDR Inc. delivered the 202-
                                                                         unit first phase of Riachi at One21. The
                                                                         developer is constructing the 198-unit second
                                                                         phase, with final-unit finish-out scheduled for fall
                                                                         2009. 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 wrapped construction near
                                                                         the intersection of S.R. 121 and Independence
                                                                         Parkway. While this 252-unit phase completed
    Northside at Legacy Village offers residents a taste of upscale      in July 2007, the developer has already started
         urban living in the master-planned Legacy Village.              construction on the 248-unit second addition.

West Plano’s other new apartment community was delivered in the master-planned Legacy Village
development, which features a host of dining, retail and entertainment options, in addition to close proximity to
some of North Texas’ major employers. Columbus Realty Partners delivered the 370-unit initial phase of
Northside at Legacy Village in March 2008, while the even larger 464-unit second installment is now under
construction.

The Allen/McKinney submarket received one new addition in the year-ending 2nd quarter. In July 2007, the
348-unit Heights at Allen Station, by Worthing Southeast Corp., came online. The community is located just a
few miles east of U.S. 75 (North Central Expressway) at the Exchange Parkway exit. Nearby, another
apartment community called DeLayne at Twin
Creek is being built on the west side of North
Central Expressway and Exchange Parkway.
Furthermore, construction is heating up on a
massive 400-acre mixed-use development
nearby. The Village at Fairview will offer a host
of retail options, a 200-room hotel and about
700 residential units.

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 addition in the past year. The 332-unit Vail
Quarters community was delivered in December 2007 by Lone Wolf Development Co.

                                                                                                                              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
No new supply came on stream in the cluster’s remaining submarkets of East Plano, North Dallas or Richardson
during the year-ending June. Looking ahead, apartment development has really accelerated recently in the
northern Dallas area, as nearly 6,700 apartments were under way here as of July 2008.

Fort Worth Submarkets
Five of the 15 submarkets in the metro Fort Worth area reported new supply in the year-ending June, bringing
1,560 new apartments to the marketplace.

                                                                         The Southwest Fort Worth submarket received
                                                                         two rental communities with 630 units in the
                                                                         past year. Located in the submarket’s southern
                                                                         region, the Residences at Sunset Pointe came
                                                                         on stream in May 2008. This 224-unit
                                                                         community was developed by NuRock Cos.
                                                                         Earlier in the year, the 406-unit Berkeley
                                                                         apartment complex came online in February
                                                                         2008. This project replaces an older apartment
                                                                         community that was razed to make way for
                                                                         Lincoln Property Co.’s new community, which
                                                                         consists of 16 three-story buildings that are
                                                                         positioned a short distance from IH-820 and
                                                                         Marine Creek Parkway.

                                                                   The North Fort Worth submarket received a
                                                                   single apartment community in the past year,
                                                                   as Finlay Properties completed the 312-unit
           Construction wrapped up in May 2008 on the              CityParc at Keller in February 2008. While the
               224-unit Residences at Sunset Pointe.               list of recently finished projects in North Fort
                                                                   Worth is limited, multifamily construction
continues at fairly elevated levels. Six rental properties with nearly 1,800 units are under development here,
with notable clusters popping up around North Tarrant Parkway and the densely populated Fossil Creek
Boulevard.

Local builder One Prime LP added one new
apartment addition to South Fort Worth’s
rental inventory in the past year. The
developer completed the 252-unit Magnolia at
Village Creek project, located on Mansfield
Highway, just a few yards from IH-820. The
project was delivered recently in April 2008.

The Haltom City/Richland Hills submarket
received an exciting new property in the past
year. In February 2008, Portfolio Development
wrapped construction on the first 189-unit
apartment segment 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

                                                                                                                              37

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
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which will feature single-family townhomes, parks and schools. At build-out, 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. The initial apartment segment faces a new library that opened in 2nd
quarter 2008. Realty Capital Partners is planning Home Town North Richland Hills’ next endeavor: a 200-unit
apartment project that is still in the planning stages.

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.

Experiencing no new deliveries during the past year were several Fort Worth submarkets, including Centreport,
Hurst/Euless/Bedford, Intown/Cultural District, North Arlington, Northwest Tarrant County, Ridglea/Ridgmar,
South Arlington, Southwest Tarrant County, Western Hills and Woodhaven.

Northwestern Dallas Submarkets
With the fast-growing Las Colinas/Valley Ranch submarket leading the way, completions during the past 12
months in the northwestern Dallas submarket cluster totaled 1,441 units.

Looking at the burgeoning Las Colinas/Valley Ranch submarket, three apartment properties contributed 875
units to the area’s existing rental inventory during the year-ending June. One of these communities came
online near Lake Carolyn, a 125-acre man-
made lake situated in the southern portion of
Las Colinas. Westwood Cos. wrapped
construction on the 238-unit Bella Casita in
November 2007. The complex offers residents
several upper viewing decks overlooking Lake
Carolyn. Providing stiff leasing competition,
Bella Casita is flanked by a host of rental
communities that finished construction in the
recent past. In fact, roughly 1,300 apartments
came online around Lake Carolyn during
calendar years 2006 and 2007. 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.


                                                                                                                              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,
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                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                   Supply
The Denton submarket received two new properties in the year-ending June, 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 2007’s 3rd quarter. With the University of North Texas located just minutes away, most of
these units will likely end up serving the student population.

Turning to the Lewisville submarket, a single project was delivered here during the past year. Allegiance
Development recently wrapped up construction on the 288-unit Dry Creek Ranch complex in June 2008. The
property is located in the western portion of the submarket at Elizabeth Town Road and Raceway Drive.

The remaining northwestern Dallas submarkets of East Irving and West Irving did not receive any new supply
during the year-ending mid-2008. Apartment development remains stagnant in these fairly built-out
submarkets.

Southern Dallas Submarkets
The southern Dallas submarket cluster added a combined 1,059 units in the year-ending 2nd quarter, with this
total down notably from the volume of deliveries seen during the recent past.

Three new projects with roughly 600 units were delivered to Duncanville/DeSoto/Cedar Hill/Lancaster’s rental
inventory in the past 12 months. Most recently, Hudgins Cos. wrapped up work on the 198-unit Huntington
Ridge in April 2008. In the city of Cedar Hill, Zidell Properties’ third phase of Legacy of Cedar Hill came online 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.

One property came on stream in Oak Cliff during the year-ending June. In the submarket’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 mid-
2007 and mid-2008.

Eastern Dallas Submarkets
One property completed in East Dallas during the year-ending June. 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.




                                                                                                                              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

                                        ANNUAL APARTMENT COMPLETIONS BY SUBMARKET
                                                            July 2007 - June 2008
Sub.             Apartment Community                             Address                               Developer             Finished Units
 21 Third Rail Lofts/1414 Elm                    1414 Elm St, Dallas                     Spectrum Properties Ltd.             10/07         14
 21 3200 Thomas                                  3200 Thomas Ave, Dallas                 Califco LLC                          01/08         12
 21 Mercantile Place on Main                     1800 Main St, Dallas                    Forest City Enterprises Inc.         03/08        213
 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
 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
 22 Reese Court Villas                           1201 S Ew ing Ave, Dallas               Sphinx Development Corp.             09/07         80
 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
 25 Huntington Ridge                             821 S Polk St, DeSoto                   Hudgins Cos.                         04/08        198
 26 Arioso                                       3030 Claremont Dr, Grand Prairie        SNK Realty Group                     11/07        288
 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
 41 Dakota in the Village                        6550 Shady Brook Ln, Dallas             Lincoln Property Co.                 03/08        496
 47 Vail Quarters                                3900 Briargrove Ln, Dallas              Lone Wolf Development Co. Ltd.       12/07        332
 48 Lincoln Lakeside                             6727 Deseo, Irving                      Lincoln Property Co.                 08/07        331
 48 Bella Casita                                 851 Lake Carolyn Pkw y, 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
 82 Dry Creek Ranch                              13861 Racew ay Dr, Northlake            Allegiance Development               06/08        288
 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 Heights at Allen Station                     505 E Exchange Pkw y, Allen             Worthing Southeast Corp.             07/07        348
       DALLAS AREA                                                                                                                    7,160

       (Continued on next page)




                                                                                                                                      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
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                                    ANNUAL APARTMENT COMPLETIONS BY SUBMARKET
                                                        July 2007 - June 2008
Sub           Apartment Community                         Address                              Developer              Finished Units
52 Magnolia at Village Creek               5151 Mansfield Hw y, Fort Worth         One Prime LP                        04/08      252
53 Berkeley                                2001 Park Hill Dr, Fort Worth           Lincoln Property Co.                02/08      406
53 Residences at Sunset Pointe             5400 Sycamore School Rd, Fort Worth NuRock Cos.                             05/08      224
58 CityParc at Keller                      10501 N Beach St, Keller                Finlay Properties                   02/08      312
74 Arthouse                                251 Tow n Center Ln, 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                                                                                                          1,560
      D/FW AREA                                                                                                                8,720




                                    The mixed-use Broadstone Parkway is in close proximity to the
                                      premier shopping and dining hub around the Galleria Mall.



                                                                                                                                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

              Central and Eastern Dallas Apartment Completions




             July 2007 – June 2008
             July 2008 – June 2009
              July 2009 or later


                                                                                                                            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

                   Southern Dallas Apartment Completions




                July 2007 – June 2008
                July 2008 – June 2009
                 July 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

                   Northern Dallas Apartment Completions




                July 2007 – June 2008
                July 2008 – June 2009
                 July 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

              Northwestern Dallas Apartment Completions
                                                               `




                  July 2007 – June 2008
                  July 2008 – June 2009
                   July 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

                         Fort Worth Apartment Completions




                  July 2007 – June 2008
                  July 2008 – June 2009
                   July 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
Forecast
Multifamily Permits
Multifamily permit authorizations in the
Dallas metro continue to trend upward.                                             Multifamily Permits
During April-May 2008 specifically, the Dallas                                          Dallas Area
area permitted 2,023 units, with this tally               15k
considerably larger than the 715 units                                 Quarterly         Annual
authorized during the same two months of
                                                          12k
2007. For the seventh time in the past nine
quarters, multifamily permits in Dallas
                                                           9k
surpassed the 2,000-unit mark. This
performance placed the metro in the #5 spot
in terms of quarterly multifamily approvals.               6k

These recent multifamily permit                            3k
authorizations brought the year-ending May
2008 tally to 12,272 units, up 44 percent                  0k
from the figure recorded in the year-ending                     1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
May 2007. In fact, the last time Dallas saw                     03 03 04 04 05 05 06 06 07 07 08
such a sizable volume of multifamily permit
                                                                                     *tw o-month total, year-ending May 2008
approvals was almost 10 years ago in 1999.
On a national level, Dallas moved into the
third position in terms of annual
authorizations, trailing only approvals in New
York and Houston.

In Fort Worth, permits issued in April-May                                        Multifamily Permits
2008 climbed significantly from the volume                                          Fort Worth Area
                                                          5k
permitted during the same time period last
                                                                      Quarterly         Annual
year. During 2nd quarter 2008, the metro
authorized building for 1,178 units. Fort                 4k
Worth ranked 10th in the nation for
multifamily permits issued during 2nd                     3k
quarter.
                                                          2k
On an annual basis, approvals in Fort Worth
as of May came in at 3,975 units, about in                1k
line with the previous year’s tally.
                                                          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 May 2008




                                                                                                                               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
Region Overview
A burst of starts in 2nd quarter has pushed
Dallas/Fort Worth to the #1 spot on the
national list of apartment construction                                    Apartment Completions
activity. During the April-June time frame,                                   Dallas/Fort Worth Area
                                                                Units
developers began work on 19 properties that               16k
will total more than 6,300 units, taking the                                                       Quarterly       Annual
count of apartments currently in process to
19,217 units. This is the largest volume of               12k
apartments under construction in North
Texas in over seven years. Furthermore,
today’s additional stock on the way                        8k
translates to meaningful inventory growth of
3.4 percent during the next 18 months or so.               4k
Teardowns to create redevelopment sites
will hold that inventory growth pace a little
under the figure suggested by the ongoing                  0k
construction figure, but net stock expansion                    1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
still will be very substantial, since teardowns                 03 03 04 04 05 05 06 06 07 07 08 08 09
now aren’t occurring at quite the pace that
was established during 2007.

Two other Texas metros made the national
list of development hotspots. Houston, with                         Scheduled Apartment Completions
ongoing construction totaling more than                                        by Quarter
18,800 units, is building the second largest                                  Dallas/Fort Worth Area
block of apartment product in the country,                        Units
                                                          6k
while Austin ranks a little lower with just over
12,800 units on the way.

Looking at North Texas’ construction                      4k
timetable, nearly 70 percent of the units
presently under development in the region
are targeted to come online in the year-
ending mid-2009.                                          2k

Scheduled completions will be hefty in the
final six months of 2008, as just over 3,600        0k
units are slated to come on stream in 3rd
                                                            3Q 08      4Q 08      1Q 09      2Q 09      Later
quarter 2008, while roughly 2,700
apartments are scheduled for delivery in 4th
quarter 2008. New supply will be substantial in the first half of 2009, as 2,638 units are expected in early 2009,
while a whopping 4,299 apartments are slated for delivery in 2nd quarter 2009.

An additional 5,900+ units are already under construction in the D/FW area and are expected to complete
sometime after June 2009.




                                                                                                                            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
Dallas Area
The Dallas area’s supply of apartments now
under construction totals nearly 15,000                                     Apartment Completions
units. Among the stock currently under way,                                           Dallas Area
about 65 percent, or 9,648 units, should be                      Units
delivered in the coming year. The remaining               15k
5,333 units of the metro’s future supply are                                                        Quarterly     Annual
slated for delivery after June 2009.
                                                          10k
In all likelihood however, net inventory
growth should be a little lower than the
targeted completion figure, reflecting that
teardowns to produce redevelopment sites                   5k
seem likely to continue at mild to 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 comparatively hefty block of new
apartment product is set to enter Fort
Worth’s rental pool in the near term. About
                                                                             Apartment Completions
4,200 units were under construction in the                                           Fort Worth Area
                                                                Units
                                                          4k
metro as of July 2008. Most of these                                     Quarterly        Annual
apartments (3,650 units) are scheduled for
completion during the next 12 months.                     3k


                                                          2k


                                                          1k

                                                                                                           00
                                                          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




                                                                                                                            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
Development Sponsors
Most of the apartment projects under way as
of July 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, Post Properties and UDR Inc.

With construction recently commencing on
three apartment communities, Trammell
Crow Residential climbed to the lead spot
on North Texas’ active developer board with
a whopping 1,844 units in process. In total,
the developer is working on five apartment
complexes spread out across the D/FW
region. Trammell Crow Residential is not
only North Texas’ construction leader, but
the company also ranks at the most active
developer in the state of Texas, with notable construction activity seen in the Houston and Austin metros.

            Apartment Development Leaders                            Westwood Cos. joins the list in second place with
                                                                     1,267 units under way. The company is working
             Ongoing Construction as of July 2008
                                                                     on two massive properties in the Lewisville and
                    Developer                           Units        Frisco areas. Nabbing the #3 spot, Alliance
                                                                     Communities is building three properties with 1,084
   TrammelI Crow Residential                         1,844 units
                                                                     apartments, while Wood Partners follows behind
   Westwood Cos.                                     1,267 units     with 1,025 units in process.
   Alliance Communities                              1,084 units
   Wood Partners                                     1,025 units     With construction proceeding on 847 units,
                                                                     Flournoy Development ranks fifth on the list of top
   Flournoy Development Co.                            847 units     10 developers in the region. Several firms are
   AG Spanos Corp.                                     738 units     building roughly 700 apartments, including AG
   Columbus Realty Partners                            721 units     Spanos (738 units), Columbus Realty Partners
                                                                     (721 apartments) and Post Properties (704 units).
   Post Properties Inc.                                704 units
   Fairfield Residential                               665 units
                                                              Next up, Fairfield Residential is working on 665
   Lincoln Property Co.                                       units in two projects. The developer has a property
                                                       591 units
                                                              under way in the popular Addison Circle
development and another smaller project under construction in Grapevine. Dallas, TX-based Lincoln Property
Co. rounds out the list of most active developers in North Texas. The company is working on almost 600 units
in two projects.




                                                                                                                            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
Forecast: Submarket Highlights
Developers in Dallas/Fort Worth have once again honed in on the rapidly-expanding northern Dallas area, which
accounts for roughly 35 percent of the region’s total volume of apartments under construction. Nearly 6,700
apartment units are under way here. Development activity also continues at fairly aggressive levels in Fort
Worth and central Dallas, with construction proceeding on more than 3,500 units in each submarket cluster.

Leading the way on a neighborhood level, West Plano has more than 2,800 apartments under construction.
Developers remain active in the Intown Dallas submarket, where nearly 2,300 units are expected to enter the
leasing pool. The Lewisville, North Fort Worth, Allen/McKinney 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                               Forecast New Supply Leaders
submarkets hovering near the 95 percent mark for                         Ongoing Construction as of July 2008
several quarters, developers have once again
revved up construction levels. Ongoing                                         Submarket                             Units
development in the submarket cluster totals a                    West Plano                                       2,804 units
whopping 6,666 units. More than half of these                    Intown Dallas                                    2,270 units
projects got under way just recently: during the                 Lewisville                                       1,955 units
first six months of calendar 2008, developers kick-              North Fort Worth                                 1,778 units
started construction on 11 properties with nearly                Allen/McKinney                                   1,559 units
3,500 units. Building activity has not been at such              Carrollton/Farmers Branch/Addison                1,343 units
high levels in northern Dallas since the start of
                                                                 Oak Cliff                                          960 units
2003.
                                                                 South Arlington                                    924 units
The West Plano area accounts for a large portion                 Oak Lawn/Park Cities                               768 units
of the rental units currently in process.                        Richardson                                         714 units
A metro-leading 2,804 units were under
construction here as of July 2008.

                                                                         All of the developments in the West Plano
                                                                         submarket are clustered in a three-mile radius
                                                                         around the intersection of S.R. 121 and the
                                                                         Dallas North Tollway, a rapidly growing area
                                                                         that is home to Stonebriar Centre (a mall
                                                                         containing 160 shops and an ice skating rink), a
                                                                         minor league baseball park for the Frisco
                                                                         RoughRiders, and a multitude of restaurant
                                                                         options. Starting first at S.R. 121 and
                                                                         Independence Parkway, Flournoy
                                                                         Development’s second phase of Estancia at
                                                                         Ridgeview Ranch is in process. This 248-unit
                                                                         addition should be ready for full occupancy by
                                                                         April 2009. Less than a mile west, the second
                                                                         phase of Riachi at One21 recently got under
                                                                         way. UDR Inc. kicked off construction in May
                                                                         2008 on this 198-unit addition, with construction
                                                                         slated to complete in fall 2009. Lincoln
        Lincoln Property Co. is wrapping up the final units at the       Property Co. is building the second phase of
               second phase of Lincoln at Towne Square.
                                                                                                                            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
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 also nearing completion.
This Zale/Corson Group property will include several community amenities like meditative seating areas and
touring bicycles for access to the neighborhood. The project should be complete by August 2008.

Moving closer to the Dallas North Tollway, four 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. A 2nd quarter 2009 completion date has been set. The master-planned Legacy Village
development features a sculpture park, lake, jogging trail, a host of dining, retail and entertainment options, and
an Angelika movie theatre. Furthermore, with easy access to the Dallas North Tollway and S.R. 121, Legacy
Village is positioned less than a mile away from several of North Texas’ major employers like Dr. Pepper, Frito
Lay, Electronic Data Systems, JCPenney, Pepsi Co. Inc., and numerous other technology-related companies.

Moving north of S.R. 121 and into Frisco, a
massive development is rising from the ground
near Warren Parkway and Parkwood
Boulevard. Westwood Companies kicked off
construction on the Centre at Preston Ridge
mixed-use development. This four-story, 655-
unit project will be built on 13.5 acres and will
also include some office and retail space.
Since construction just began, final-unit finish-
out is anticipated in late 2009. Nearby, Post
Properties’ 269-unit Post Frisco Bridges project
also recently got under way. The developer is
building a high-density residential and retail
complex near the bustling Stonebriar Centre.
The 36-acre $250 million project, dubbed Sierra
Frisco, will also include a hotel and office
space. Completion of the apartment segment
at Post Frisco Bridges is targeted for May 2009.         The 655-unit Centre at Preston Ridge is rising among
And finally, looking at the intersection of the           a cluster of offices, shops, hotels and restaurants.
Dallas North Tollway and Lebanon Road, La
Valencia at Starwood is in process. This 270-unit development, by Tonti Properties, is slated to complete in
early 2009.

Five communities totaling 1,559 units are currently under development in the Allen/McKinney submarket. Three
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 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. Moving to the intersection of S.R. 121 and Lake Forest Drive, the
McKinney Place apartment community recently got under way. This Flournoy Development project will contain
343 units with build-out targeted for 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 3rd quarter 2008.



                                                                                                                            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
                                                                         Traveling farther south, the remaining two
                                                                         properties under construction in Allen/McKinney
                                                                         both line U.S. 75. AG Spanos recently
                                                                         commenced building on the DeLayne at Twin
                                                                         Creek. The property, located at the West
                                                                         Exchange Parkway exit will contain 216 units
                                                                         with completion set for May 2009. A little
                                                                         farther south on East McDermott Drive, a major
                                                                         endeavor is currently under way in the 52-acre
                                                                         Watters Creek at Montgomery Farm mixed-use
                                                                         development. The 301-unit Lofts at Watters
                                                                         Creek apartment segment, by Southern Land
                                                                         Co., is slated to complete construction in late
                                                                         2009. Watters Creek at Montgomery Farm will
                                                                         also contain retail stores, a host of single-family
                                                                         homes and several acres of natural open
                                                                         space.

                                                                 Apartment development has also been ramping
           The Lofts at Watters Creek apartment community
                     is under construction in Allen.             up in the Carrollton/Farmers Branch/Addison
                                                                 area. After receiving just over 300 new units in
the year-ending June 2008, the locale is now slated to receive four large properties with more than 1,300 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 15777 Quorum. The $30 million project is set to complete in early 2009.
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, an office segment by Opus West Corp. is in process. This six-story commercial
building has been dubbed Two Addison Circle.
Yet another developer, Icon Partners, recently
received authorization to build a 362-unit
apartment project nearby on Addison Road.
Addison Circle is not only conveniently located
close to the Dallas North Tollway, but it’s just
steps away from the dining and entertainment
mecca that sits along Belt Line Road.

Further south, the Prairie Crossing complex is
rising from the ground near Spring Valley and
Midway Roads. Metropolitan Development is
working on this 368-unit community with
completion 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 UDR Inc. Over the next several
years, the developer plans to replace more than

                                                                                                                            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
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 recently began, with construction
expected to start soon on a 469-unit complex.

In the submarket’s northern region, Lincoln at
Mustang Park is under construction. Lincoln
Property Co. is working on this 289-unit
community. Completion is anticipated in
November 2009.

As of July 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 3rd quarter 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.

Looking at the North Dallas submarket, building recently started on one new community. Located on the east
side of the Dallas North Tollway near Alpha and Noel Roads, the Villa Piana complex will add 246 apartments to
the rental pool. Slosburg Co. has scheduled a late 2009 completion date.

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

Fort Worth Submarkets
At the end of 2nd quarter, 17 properties with just over 4,200 units were under way in the Fort Worth submarket
cluster.

With construction proceeding on 1,778 units, North Fort Worth’s rental base will expand by a whopping 31
percent in the near term. Solid job growth has played a key role in this development surge. 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
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.


                                                                                                                            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
Construction just kicked off on a property about a half mile east of the Monterra development. The Watercolor
apartment complex is rising on a 27-acre parcel on North Beach Street just north of North Tarrant Parkway.
Fine Line Diversified Development is building this $30-million project, which will total almost 400 units when
complete in early 2010. A Wal-Mart is situated next door. Moving further east, the Park Vista apartment
community is under way near the intersection of Ray White and Shiver Roads. Beucler Properties is building
this 308-unit complex, with completion set for mid-2009.

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 3rd quarter
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 about to come on
stream. Both properties are scheduled to complete in 3rd quarter 2008.

The North Fort Worth submarket 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.

The South Arlington submarket will see the addition of three new apartment projects in the near term. Two
properties are situated just minutes away from S.H.360. Alliance Communities is building Broadstone Lowes
Farm, located in the master-planned Lowes Farm development. The 456-unit apartment community is
scheduled to complete in early 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
got under way in early 2008. Madison
Communities is developing this 188-unit
project. Final-unit build-out is anticipated in 3rd
quarter 2009.

Turning to Southwest Fort Worth, one
apartment property with almost 300 units is
currently under construction. The $22 million
Cumberland at Granbury, by North American
Partners Development, is being built at the
corner of Granbury and Dirks Roads, with this
parcel the last piece of land zoned for
multifamily development within a 10-mile
radius. Completion of this 282-unit apartment
project is scheduled for 3rd quarter 2008.

The Western Hills submarket recently saw                       The 150-unit Sphinx at Alsbury Villas is under construction
construction kick off on Wynhaven at                                    in the South Fort Worth city of Burleson.
Westpoint. This 264-unit development by

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©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
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Trammell Crow Residential will be at the corner of IH-820 and Westpoint Boulevard. Final-unit finish-out is
targeted for mid-2009.

In the Intown/Cultural District, one new rental complex is under way. Columbus Realty Partners is constructing
the 257-unit Colonial Park. Located just west of University Drive, this complex will offer select units with views
of the Trinity River. A mid-completion date has been set.

One apartment community is in process in the Northeast Tarrant County submarket. Fairfield Residential is
constructing the 251-unit property 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.

Three properties totaling 244 units are currently under development in the South Fort Worth area. 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, is targeted to be complete by late 2008. Moving roughly
10 miles north, the Veraison Village apartment development is in process, with the first phase set to bring 80
units to market in 3rd quarter 2008. Pyramid Homes reports that units at this project will have two- and three-
bedroom units ranging from 1,035 square feet to almost 1,200 square feet. The 80-unit second phase is
expected to get under way in August. Jumping up to the IH-30 and Main Street intersection, the old Sawyer
Building is about to receive a facelift. The
roughly 100-year-old structure, which used to
house a grocery store, is being converted into
14 rental units. The Carillion Group is targeting
an early 2009 completion date.

Jumping over to the Northwest Tarrant County
submarket, construction recently kicked off on
the 236-unit Villa Lago apartment complex,
which is situated just south of the Boat Club
Road and Golf Club Drive intersection. A final-
unit delivery date of May 2009 has been set.

Fort Worth submarkets with no current
residential building include Centreport, Haltom
City/Richland Hills, Hurst/Euless/Bedford, North
Arlington, Ridglea/Ridgmar, Southwest Tarrant
County and Woodhaven.
                                                            In Northwest Tarrant County, Villa Lago is rising from the ground.
Central Dallas Submarkets
As of early 3rd quarter 2008, more than 3,500 rental units were under construction in the central Dallas
submarket cluster, with this total boosted by the nearly 2,300 apartments rising 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 13 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 four
properties with nearly 1,200 units are in process.

Starting in the northern area of Uptown, the Monterey community is under way. Criterion Property Co. is
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
                                                                                                                             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.
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                                                                                            Apartment Report
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amenities like an outdoor kitchen, waterfall
pool, wading lounge, multi-leveled wood deck,
and covered outdoor living space with plasma
TVs. Completion is scheduled for late 2009.

Moving further south, 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 2nd quarter 2009. Nearby, a site is being
cleared at Carlisle and Fairmont Streets.
Gables Residential is prepping this location for
a 327-unit property, with construction slated to
begin in 3rd quarter 2008.

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, the 19-story energy-efficient condo/office tower dubbed Rosewood Court is
                                                                  blossoming. 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, which completed in
                                                                  late 2007. The ultra-luxurious high-rise tower
                                                                  was met with notable sales success: according
                                                                  to a report in the 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
                                                                  Harwood 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
      Jefferson at West End Station in now rising next to DART’s  million Saint Ann Court is expected to wrap up
                      West End light rail station.                in 2009.

A few blocks away from this area, 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

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©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
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                                                                         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.

                                                                      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
   A new DART rail station is being built alongside Alliance Ambrose.
                                                                      North Ervay Streets. Four apartment projects
    The 325-unit apartment property should wrap up in 3rd quarter.    completed here in the past year and one
                                                                      additional property is 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 completed recently in March 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 U.S. 75 is the
Deep Ellum area, where the mixed-use 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, which will also contain 13,000
square feet of retail space. Completion is set
for 3rd quarter 2008.

Traveling north along U.S. 75, 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 early
2009.

Turning to the Oak Lawn/Park Cities
submarket, construction just got under way on
two apartment properties totaling 768 units. In May, Trammell Crow Residential began work on Alexan
Southwestern, which is positioned across the street from Parkland Memorial Hospital and a few blocks from the
                                                                                                           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
recently completed Cityville at Southwestern Medical District apartment property. Alexan Southwestern will offer
396 rental dwellings, with construction finish-out tentatively scheduled for fall 2009. Of note, the site for this
apartment complex is adjacent to a future DART commuter station, which is expected to be operational by late
2010. Moving a few miles northeast to the Oak Lawn area, the 372-unit Cityville Oak Park is now rising from the
ground at the corner of Lemmon Avenue and Wheeler Street. This is the first of many redevelopment projects
planned by the First Worthing/Inland Real Estate Group team for a 25-acre area near the Lemmon Avenue and
Dallas North Tollway intersection. The developers plan to transform several aging apartment properties and
retail shops into a new mixed-use neighborhood that could encompass as many as 1,000 apartments. With
construction only just recently starting on Cityville Oak Park, final-unit wrap-up is slated for 3rd quarter 2009.

Looking ahead in the Oak Lawn/Park Cities submarket, several developments are at the starting gate in the
area near Cedar Springs Road and 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 316-unit mixed-use project (dubbed llume) is set to begin actual apartment development in
fall 2008. Also, 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. Of note, a 125-unit for-sale condo complex called Dylan
Residences just got under way on the site of a recently demolished apartment complex at the corner of Cedar
Springs Road and Hawthorne Avenue.

Moving to the East University-Vickery submarket, one property with 325 units is under way. Construction is
proceeding on Heights at Park Lane, the apartment component of the up-and-coming 33-acre mixed-use Park
Lane 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). Houston, TX-based PM Realty Group is building the 325-unit first phase, while a
second apartment phase is on the drawing board. This initial phase is being built in a 20-story residential tower,
while additional installments will be housed in a low-rise loft building with ground-floor retail. Final-unit
completion on Heights at Park Lane is targeted for early 2009. The $650 million master-planned Park Place
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, 750,000 square feet of class A office space, and nearly 700,000
square feet of retail space anchored by the nation’s largest Whole Foods store (102,000 square feet).

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.

No new apartments are currently under construction in the East Dallas, Far Northeast Dallas, Far Northwest
Dallas, Highlands and Near North Dallas submarkets.

Northwestern Dallas Submarkets
In the northwestern Dallas submarket cluster, nearly 2,800 rental units are under way. The majority of these
apartments are actually being constructed in the Lewisville submarket.

Lewisville, a neighborhood that recently received about 300 units during the year-ending June 2008, is now
scheduled to add 1,955 apartment units in the near term.

Taking a closer look at the activity in Lewisville, a hotspot of apartment construction has popped up in The
Colony, with almost 1,400 units rising along the expanding S.R. 121. Properties under way in this pocket
include another phase at Austin Ranch, Lakeside at One Twenty One and Bella Madera. Starting first with the
1,900-acre Austin Ranch, Billingsley Co. just initiated construction on the property’s fifth phase, which will bring

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©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
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the master-planned development another 535 rental residences. With building only just recently getting under
way, final-unit completion is not slated to wrap up until 1st quarter 2010. Heading about two miles southwest on
S.R. 121, Lakeside at One Twenty One is taking shape. Mockingbird Properties reports that this 240-unit
project is scheduled for delivery in late 2008. Development just got under way in May on Bella Madera, which is
situated a few steps away from Lakeside at One Twenty One. When final-unit completion wraps up in 2nd
quarter 2010, this Westwood Cos. community will offer a whopping 612 apartment units.

Another recent apartment start in the Lewisville submarket is Lebanon Ridge, which is under way in the city of
Frisco, about 10 miles northwest of the previously mentioned hotspot along S.R. 121. The 344-unit property, by
LSC Group Inc., is scheduled to come on stream in late 2009. A second phase of Lebanon Ridge is currently
on the drawing board. Jumping over to the city of Roanoke, the 224-unit Copper Ridge apartment property by
Mid America Apartment Communities is rising on Cannon Parkway. This complex is scheduled for final-unit
build-out in late 2008.

                                                                           After receiving 875 apartments in the past
                                                                           year, the Las Colinas area is about to receive
                                                                           another block of new apartment product.
                                                                           Construction is under way on two
                                                                           communities totaling 623 apartments, with all
                                                                           of these units located within close proximity to
                                                                           the Las Colinas Urban Center, a bustling 900-
                                                                           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
     Wood Partners’ Alta Lakeshore Lofts will be one of several new  community is positioned on Lake Carolyn
       communities located close to Lake Carolyn in Las Colinas.     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 start building the first apartment segment later in
the year. 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.



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©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
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 July 2008.

No apartment construction activity is currently
present in the East and West Irving submarkets.

Southern Dallas Submarkets
After appearing to ease back some, apartment
construction in the southern Dallas region picked
up again in 2nd quarter 2008, as several new
properties recently started the construction
process. Ongoing construction as of July came
in at 1,446 units in five projects.

Oak Cliff has the largest block of rental units under way in the south Dallas area, with 960 apartments in
process. The largely industrial Dallas Design District, which, according to M/PF YieldStar’s submarket
definitions, falls in the Oak Cliff submarket, has suddenly become an active apartment construction hotspot.
Construction has begun on two projects: Alexan Design District and Alta Design District. Rising on the site of an
old commercial building that was recently demolished, the 355-unit Alexan Design District is located near the
intersection of Turtle Creek Boulevard and Hi Line Drive. Trammell Crow Residential reports that construction
on this project will wrap up in August 2009. Just a few blocks away is Wood Partners’ 309-unit Alta Design
District, which is scheduled to complete in July 2009. Wood Partners is planning another project in this
neighborhood, with construction on this 214-unit addition expected to get started in 3rd quarter 2008. Located
northwest of downtown Dallas, on the opposite side of Stemmons Freeway (IH-35) from Victory Park, the
Design District has long housed showrooms for home furnishings, fabrics and decorative accessories.

Also under construction in Oak Cliff is Sage Co.’s 296-unit Pinnacle Ridge. The complex is located close to the
intersection of North Cockrell Hill Road and Pinnacle Point Drive. The developer reports a finish date of 4th
quarter 2008.

Moving to the Grand Prairie area, one rental community just got under way. Lakeside Villas, a 350-unit project
by Hudgins Cos., is targeted to complete construction in 3rd quarter 2009.

A noteworthy mixed-use project has finally started in the Duncanville/DeSoto/Cedar Hill/Lancaster submarket.
High Street Residential’s DeSoto Town Center development will offer 136 one- and two-bedroom apartment
units, 35,000 square feet of retail and office space, and a 360-space parking garage. Located on a site that
once included an old strip mall, this project is right at the corner of Hampton and Pleasant Run Roads. Final-
unit delivery is slated for May 2009.

No new product is currently under way in the North Ellis County, South Dallas and Southwest Dallas
submarkets.




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©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
   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
   late 2008.

   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.

                                     FORECAST APARTMENT UNIT COMPLETIONS BY SUBMARKET
                                                              July 2008 - June 2009
Sub      Apartment Community                         Address                                        Developer           Finished   Units
 21 Alliance Ambrose                 2901 Indiana Ave, Dallas                  Alliance Communities                      08/08       325
 21 Jefferson West End Station       800 Ross Ave, Dallas                      JPI Multifamily Inc.                      09/08       146
 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 Element (The)                    1800 Main St, Dallas                      Forest City Enterprises Inc.              12/08       153
 21 Alexan Fitzhugh                  2737 N Fitzhugh Ave, Dallas               TrammelI Crow Residential                 02/09       450
 21 AMLI at Quadrangle               2717 How ell St, Dallas                   AMLI Residential Properties               05/09       220
 24 Pinnacle Ridge                   1310 N Cockrell Hill Rd, Dallas           Sage Co.                                  12/08       296
 25 DeSoto Tow n Center              211 E Pleasant Run Rd, DeSoto             High Street Residential                   05/09        136
 31 15777 Quorum                     15777 Quorum Dr, Addison                  Fairfield Residential                     01/09       414
 31 Prairie Crossing                 4000 Sigma Rd, Farmers Branch             Metropolitan Development LLC              01/09       368
 31 Allegro Addison I                15750 Spectrum Dr, Addison                SNK Realty Group                          04/09       272
 36 Venue at Galatyn Park Station    2301 Performance Dr, Richardson           Legacy Partners Inc.                      08/08       279
 36 Post Eastside                    1851 N Greenville Ave, Richardson         Post Properties Inc.                      04/09       435
 37 Broadstone Woodbridge            600 Woodbridge Pkw y, Wylie               Alliance Communities                      11/08       303
 38 Magnolia at Mesquite Creek       900 Gross Rd, Mesquite                    One Prime LP                              05/09       252
 41 Heights at Park Lane             8088 Park Ln, Dallas                      PM Realty Group                           03/09        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                         07/08       192
 82 Copper Ridge                     1200 Cannon Pkw y, Roanoke                Mid America Apartment Communities Inc.    10/08       224
 82 Lakeside at One Tw enty One      701 N Leora Dr, Lew isville               Mockingbird Properties                    10/08       240
 85 Tribeca                          8401 Memorial Ln, Plano                   Zale/Corson Group                         08/08       398
 85 Lincoln at Tow ne Square II      8100 Memorial Ln, Plano                   Lincoln Property Co.                      09/08       302
 85 La Valencia at Starw ood         6805 Lebanon Rd, Frisco                   Tonti Properties Inc.                     02/09       270
 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 Post Frisco Bridges I            7701 Warren Pkw y, Frisco                 Post Properties Inc.                      05/09       269
 87 Times Square at Craig Ranch      7951 Collin McKinney Pkw y, McKinney Evergreen Partners                             08/08       320
 87 Alexan McKinney                  6653 McKinney Ranch Pkw y, McKinney TrammelI Crow Residential                       04/09       379
 87 McKinney Place                   5500 McKinney Place Dr, McKinney          Flournoy Development Co.                  04/09       343
 87 DeLayne at Tw in Creek           1089 W Exchange Pkw y, Allen              AG Spanos Corp.                           05/09        216
    DALLAS AREA                                                                                                                    9,648

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   ©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
                                                            July 2008 - June 2009
Sub       Apartment Community                      Address                                       Developer               Finished   Units
 52 Veraison Village I              9417 Michael Dr, Fort Worth              Pyramid Homes                                08/08         80
 52 Sphinx at Alsbury Villas        755 NE Alsbury Blvd, Burleson            Sphinx Development Corp.                     10/08       150
 52 Saw yer Building                201 S Main St, Fort Worth                Carillion Group                              01/09         14
 53 Cumberland at Granbury          6850 Granbury Rd, Fort Worth             North American Partners Development Co. Ltd. 07/08       282
 55 Wynhaven at Westpoint           9500 Westpoint Blvd, Fort Worth          Trammell Crow Residential                     06/09       264
 56 Colonial Park                   1700 Rogers Rd, Fort Worth               Columbus Realty Partners                     06/09       257
 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.                     08/08        256
 58 AMLI at Fossil Lake             5960 Travertine Ln, Fort Worth           AMLI Residential Properties                  09/08       288
 58 Monterra                        8301 Monterra Blvd, Fort Worth           Hillw ood Development                        10/08       288
 58 Park Vista                      8625 Ray White Rd, Fort Worth            Beucler Properties LP                        06/09       308
 71 Mansions of Mansfield           400 S SH 360, Mansfield                  Private Developer                            11/08       280
 71 Broadstone Low es Farm          1400 S SH 360, Mansfield                 Alliance Communities                         01/09       456
 73 Villa Lago                      8201 Boat Club Rd, Fort Worth            Private Developer                            05/09       236
 74 925 Main Street                 925 S Main St, Grapevine                 Fairfield Residential                         08/08       251
      FORT WORTH AREA                                                                                                                3,650
      D/FW AREA                                                                                                                     13,298




                                    FORECAST APARTMENT UNIT COMPLETIONS BY SUBMARKET
                                                     July 2009 or Later
Sub        Apartment Community                        Address                                  Developer                 Finished    Units
21    Monterey                        3930 McKinney Ave, Dallas                 Criterion Property Co.                    10/09           371
24    Alta Design District            1531 Inspiration Dr, Dallas               Wood Partners                             07/09           309
24    Alexan Design District          1400 Turtle Creek Blvd, Dallas            Trammell Crow Residential                 08/09           355
26    Lakeside Villas                 2502 Riverside Pkw y, Grand Prairie       Hudgins Cos.                              08/09           350
29    Alexan Southw estern            2040 Medical District Dr, Dallas          Trammell Crow Residential                 09/09           396
29    Cityville Oak Park              3520 Wheeler St, Dallas                   Inland Real Estate Group                  09/09           372
31    Lincoln at Mustang Park         4645 Plano Pkw y, Carrollton              Lincoln Property Co.                      11/09           289
44    Villa Piana                     13500 Noel Rd, Dallas                     Slosburg Co.                              11/09           246
82    Lebanon Ridge                   2355 Lebanon Rd, Frisco                   LSC Group Inc.                            12/09           344
82    Austin Ranch V                  6900 Sumner St, The Colony                Billingsley Co.                           03/10           535
82    Bella Madera                    650 N Leora Ln, Lew isville               Westw ood Cos.                            05/10           612
85    Riachi at One21 II              9600 Coit Rd, Plano                       UDR Inc.                                  09/09           198
85    Centre at Preston Ridge         3198 Parkw ood Blvd, Frisco               Westw ood Cos.                            10/09           655
87    Lofts at Watters Creek          921 Garden Park Dr, Allen                 Southern Land Co.                         12/09           301
      DALLAS AREA                                                                                                                    5,333
58 Watercolor                         8660 N Beach St, Fort Worth               Fine Line Diversified Development         03/08           398
71 Johnson Creek Crossing             1223 S Pecan St, Arlington                Madison Communities Ltd.                  07/09           188
      FORT WORTH AREA                                                                                                                  586
      D/FW AREA                                                                                                                      5,919



                                                                                                                                     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 92.7 percent in June 2008.                                    Apartment Occupancy
Occupancy backtracked 0.7 points between                                       Dallas/Fort Worth Area
March and June. As a result of this
quarterly downturn, occupancy eased a bit                100%
on an annual basis, with the mid-2008
reading coming in 0.3 points below the mid-
2007 level.                                               95%


Apartment occupancy in North Texas
                                                   90%
remains a little below the national standard,
a pattern almost always seen because
Dallas/Fort Worth routinely adds
                                                   85%
comparatively more new supply and, thus,
nearly always has a sizable block of product
in initial lease-up. Results from M/PF
                                                   80%
YieldStar’s 2nd quarter 2008 national survey
                                                        1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
showed average U.S. apartment occupancy
                                                        03 03 04 04 05 05             06 06 07 07 08
at 94.2 percent. (This U.S. figure is a
preliminary calculation, with results loaded
into the database for about 3.1 million of the
roughly 4 million total units surveyed.) Thus, D/FW’s occupancy rate trailed the national norm by 1.5 points.
Among the major Texas markets, the North Texas area was a middle-ground performer as of June. At the top
end, occupancy stood near 93.4 percent in Austin, while San Antonio’s 92.8 percent occupancy was essentially
in line with D/FW’s rate. On the other hand, Houston’s occupancy rate fell just short of the 91 percent mark as
of mid-2008.




                                                                                                                             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, 2nd quarter 2008 apartment
occupancy came in at 93.2 percent. Dallas’                                  Apartment Occupancy
quarterly occupancy downturn was a little
                                                                                    Dallas Area
less severe than the trend seen for North
Texas as a whole. The metro’s occupancy                100%
rate eased 0.3 points between March and
June. Viewed on an annual basis, mid-2008                95%
occupancy was 0.2 points below the level
seen in mid-2007.
                                                         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



Fort Worth Area
Occupancy in the Fort Worth metro stood at
91.5 percent in June 2008. With a sizable
block of net move-outs registering during the                               Apartment Occupancy
2nd quarter, occupancy in Fort Worth                                              Fort Worth Area
tumbled 1.9 points between March and                     100%
June. This quarterly loss erased prior
progress, taking the mid-2008 rate 0.3
points under the year-earlier showing.                    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
Dallas/Fort Worth’s better-quality apartment
communities have been the top occupancy                                      Apartment Occupancy
performers in recent years. This occupancy                                   By Age of Community
premium in part reflects the appeal of the                                            Dallas Area
market’s newer communities, with                        100%
construction activity since the mid-1990s                                                                 2Q 07    2Q 08
dominated by higher density product in and                                     ∆ (0.5)
                                                                   ∆ (1.0)                 ∆ (0.3)
around the two downtowns or in newly                     95%
formed urban clusters in spots like Las                                                                  ∆ 0.7        ∆ (1.0)
Colinas, Addison and the Legacy area of
West Plano. Also, since Dallas/Fort Worth                90%
hasn’t logged the run up in rents seen in
many other parts of the country, top-tier
product simply remains affordable for a                  85%
comparatively large chunk of the total renter
base. As of June, D/FW’s tightest
occupancy rate registered at 95 percent in               80%
projects built during the 1990s, while the                         2000+       1990s        1980s        1970s       Pre-1970
occupancy showing for communities
finished since 2000 was a bit lower at 93.1
percent.
                                                                              Apartment Occupancy
North Texas still possesses quite a few                                       By Age of Community
vacancies in the middle and bottom tiers of                                          Fort Worth Area
the product spectrum. June occupancy was               100%
at 92.7 percent in the sizable stock of                                                                2Q 07      2Q 08
communities from the 1980s, at 91 percent                                    ∆ 0.0
in the 1970s-vintage units and at 90.9                  95%
                                                                ∆ (1.2)
percent in developments built prior to 1970.                                             ∆ (0.1)
                                                                                                                   ∆ (1.1)
The middle segment of the market and the         90%                                  ∆ (1.1)
bottom-end properties had poor demand
performances specifically during 2008’s 2nd
quarter, with occupancy down since March         85%
by 1.7 points in the 1970s-generation stock,
by 1.4 points in the properties built before
1970 and by 1.2 points in the 1980s-vintage      80%
units. That quarterly slide was enough to                2000+  1990s      1980s      1970s    Pre-1970
bring occupancy down 1.1 points on an
annual basis for the developments built prior
to 1970, but June 2008 occupancy essentially matched the June 2007 figures for the 1980s-era projects (down
0.2 points) and the 1970s-generation stock (up 0.2 points).

In contrast to the quarterly struggle for older communities, the newer projects did pretty well during the April-
June time frame. Occupancy actually climbed 0.7 points on a quarterly basis for the units coming on line since
2000, while the slide for projects from the 1990s was very minor at 0.2 points. Viewed on an annual basis, the
occupancy performance was down a meaningful 1 point for communities built since 2000 but only half as much,
at 0.5 points, for the 1990s properties.
                                                                                                                                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
Looking specifically at Dallas, June 2008 occupancy by product age category ranged between roughly 91 percent
and 95 percent, breaking out as follows:

    •    93.4 percent, drifting down 1 point since mid-2007 in the projects built since 2000,
    •    95 percent, down 0.5 points on an annual basis in the 1990s-era stock,
    •    92.9 percent, easing 0.3 points annually in the 1980s-vintage units,
    •    92.2 percent in the 1970s-generation stock, registering the only momentum among Dallas’ age niches with
         the rate up 0.7 points year-over-year, and
    •    91.8 percent, faltering 1 point since June 2007 in communities built prior to 1970.

Fort Worth recorded these occupancy patterns:
    •    92.1 percent, down 1.2 points on an annual basis in the properties built since 2000. Looking at more
         recent numbers however, occupancy in this product segment improved 1.9 points between March and
         June, with this performance reflecting healthy lease-up of the metro’s new deliveries,
    •    95.4 percent in the 1990s-era stock, with this rate unchanged from the June 2007 reading,
    •    92.3 percent, down a scant 0.1 point between mid-2007 and mid-2008 in the 1980s-vintage units,
    •    87.3 percent, down 1.1 points during the past year in the 1970s-generation stock, and
    •    88.8 percent, down 1.1 points annually in communities built prior to 1970.




                                                                                                                             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 2nd quarter: the range came in at roughly 81 to 96 percent. Occupancy as of 2nd quarter was at or
above the essentially full mark of 95 percent in only a handful of North Texas submarkets: Fort Worth’s
Intown/Cultural District, East Plano, Richardson and North Ellis County.

Looking at shifts in performance over the past year, roughly three-fifths of the 45 D/FW submarkets reported a
decrease in average occupancy, with the biggest annual drops of more than 3 points occurring in the Western
Hills, North Fort Worth, Highlands and Oak Cliff areas. On the other hand, some areas were able to backfill a
few vacant units in the year-ending June, with the largest occupancy improvement seen in Fort Worth’s Intown/
Cultural District, East University-Vickery and East Dallas locales.

Fort Worth Submarkets
As of June, only one of the 15 Fort Worth                                          Occupancy Leaders
submarkets ranked among the strongest                                                 2nd Quarter 2008
neighborhood-level occupancy performers across
North Texas.                                                                  Submarket                         Occupancy
                                                                  Intown/Cultural District                          96.4%
The Intown/Cultural District was by far Fort Worth’s              East Plano                                        95.4%
tightest apartment market, and the neighborhood                   Richardson                                        95.3%
actually took the lead spot on North Texas’                       North Ellis County                                95.0%
occupancy leader board as well. As of mid-2008, the               North Dallas                                      94.8%
submarket’s inventory was 96.4 percent occupied.                  Carrollton/Farmers Branch/Addison                 94.7%
Though the June reading was unchanged from the                    Denton                                            94.7%
March level, occupancy was 5.5 points ahead of the                Lewisville                                        94.7%
June 2007 mark. However, this big annual shift                    West Plano                                        94.6%
should be viewed with some caution since survey                   Las Colinas/Valley Ranch                          94.5%
results in the area are subject to dramatic fluctuation
due to the submarket’s small existing product count.
The Intown/Cultural District’s fairly modest supply of top-tier communities built in 2000 or later registered
occupancy at an impressive 98.3 percent as of 2nd quarter.

Coming in a distant second place was the 93.7 percent occupancy rate seen in Hurst/Euless/Bedford.
With resident loss rather sizable during the 2nd quarter, occupancy in this neighborhood dropped 2 full
percentage points between March and June. This quarterly loss didn’t erase all prior progress, however: the
mid-2008 rate stood 0.8 points ahead of the year-earlier showing. Occupancy surpassed the essentially full
mark of 95 percent in Hurst/Euless/Bedford’s top-tier communities from the 2000s and 1990s. On the other
hand, a large portion of the submarket’s recent backtracking originated in the older product segments, which
compete directly with an abundance of single-family homes that are being offered for lease in the area.
Developments built prior to 1970 saw occupancy plummet more than 6 points on a quarterly basis, with the 2nd
quarter 2008 figure registering at just 89 percent. Quarterly occupancy drops came in at roughly 1 to 2 points in
the 1980s- and 1970s-era segments, with occupancy rates registering in the range of 92 to 94 percent as of
mid-2008.

Occupancy in Southwest Fort Worth came in at 93.4 percent. The quarterly occupancy upturn (0.2 points) did
little to shrink the submarket’s annual downturn, as mid-2008 occupancy fell 0.8 points behind the mid-2007
level. The older 1980s-generation units turned in the best performance, with June 2008 occupancy at 94.3
percent, up 1 point on an annual basis. Occupancy was lower in the submarkets newer projects at 93.2 percent
in the 1990s stock and just 91.2 percent in developments built since 2000. Occupancy in Southwest Fort
                                                                                                                             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
Worth’s newest segment lost quite a bit of momentum between June 2007 and June 2008, with this pattern
reflecting that there’s a host of brand new product still in the initial leasing stages here.

Occupancy in the range of 92 to 93 percent was seen in several Fort Worth submarkets: Northeast Tarrant
County (92.9 percent), Northwest Tarrant County (92.6 percent), Haltom City/Richland Hills (92.2 percent) and
Southwest Tarrant County (92 percent). Within this group, Northeast Tarrant County was actually one of the
few submarkets in metro Fort Worth to post a quarterly occupancy upturn, with the reading inching up 0.5 points
between March and June. Looking at annual occupancy trends, the Haltom City/Richland Hills and Southwest
Tarrant County submarkets were the only areas in this grouping to exhibit some momentum, with the occupancy
upturn coming in at 1.6 to 1.8 points between mid-2007 and mid-2008 in each area.

Occupancy above the metro Fort Worth norm of 91.5 percent was seen in three remaining submarkets. June
occupancy registered at 91.9 percent in North Arlington, 91.7 percent in Centerport and 91.6 percent in South
Arlington. Though occupancy in all three locales held essentially steady on an annual basis, there was a
significant loss of momentum seen recently especially in the Arlington areas. North Arlington’s occupancy rate
slipped 2.1 points between March and June, while the quarterly downturn stood at a hefty 3.1 points in South
Arlington. Digging a bit deeper into results, most of the recent backtracking in North and South Arlington
occurred at the bottom-end of the age spectrum, as older communities in these areas are particularly
susceptible to renter loss from the wide array of single-family product available for lease.

Five of Fort Worth’s smaller submarkets posted notably weak occupancy showings as of June. Occupancy
came in at 90.3 percent in Ridglea/Ridgmar, 88.5 percent in North Fort Worth, 87.9 percent in Woodhaven, 86.2
percent in South Fort Worth and 81.1 percent in Western Hills. For North Fort Worth, low occupancy in mid-
2008 simply reflects recent completions in initial lease-up: occupancy among the dominant stock of projects built
since 2000 was at 84.8 percent in 2nd quarter. While this niche displayed healthy momentum on a quarterly
basis, the submarket’s overall occupancy won’t necessarily get back to healthy levels right away, since another
huge block of completions is about to come online in the near term.

Northern Dallas Submarkets
Five of the six neighborhoods in the desirable                             Greatest Occupancy Increases
northern Dallas submarket cluster gained a place on                               July 2007 - June 2008
North Texas’ occupancy leader board in 2nd
quarter.                                                                                                          Annual
                                                                            Submarket                             Change
With occupancy at 95.4 percent in June, East Plano              Intown/Cultural District                         5.5 points
nabbed the top spot in this submarket cluster and               East University-Vickery                          3.6 points
ranked second in the D/FW region overall. A 0.4-                East Dallas                                      2.0 points
point occupancy upturn registered between March                 Southwest Tarrant County                         1.8 points
and June. However, this quarterly uptick was not
                                                                Haltom City/Richland Hills                       1.6 points
sufficient to counter prior losses, leaving the mid-
                                                                North Dallas                                     1.5 points
2008 rate 1.9 points under the mid-2007 level.
Occupancy between 94.7 and 96.3 percent was                     Carrollton/Farmers Branch/Addison                1.4 points
typical for most product age sectors in East Plano              Denton                                           1.2 points
as of 2nd quarter 2008.                                         Northwest Dallas                                 1.0 points
                                                                Hurst/Euless/Bedford                             0.8 points
Richardson recorded similar occupancy at 95.3
percent in June 2008, with the rate here easing 0.9 points from the June 2007 reading. The submarket’s top-tier
communities held the tightest occupancy showings by product age, with the rate at 95.7 percent in 1990s-era
projects and 95.5 percent in developments built since 2000. These class A projects were, however,
Richardson’s only age segments to see some occupancy backtracking during the year-ending June.

                                                                                                                              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
Occupancy just below the 95 percent mark was seen in North Dallas at 94.8 percent, Carrollton/Farmers
Branch/Addison at 94.7 percent and West Plano at 94.6 percent. All three submarkets gained a little
momentum in performance between March and June. Looking at annual occupancy trends, rates were up more
than 1 point in both North Dallas and Carrollton/Farmers Branch/Addison, while West Plano saw a mild 0.4-point
downturn in the year-ending June. Though West Plano occupancy did cool a little during the past year, this
result was actually pretty impressive, since the submarket received almost 1,100 units in the year-ending 2nd
quarter. These new deliveries have leased pretty quickly, as mid-2008 occupancy in developments built since
2000 stood at a healthy 94.3 percent, 0.3 points ahead of the year-earlier mark.

Rounding out the list of neighborhoods in the northern Dallas submarket cluster, Far North Dallas registered
June occupancy of 94 percent, while Allen/McKinney posted an occupancy rate of 93.5 percent. While Allen/
McKinney’s recent performance certainly wasn’t bad, that neighborhood was the one key spot in the northern
Dallas submarket cluster that showed meaningful backtracking over the past year: occupancy dropped 2
percentage points between 2nd quarter 2007 and 2nd quarter 2008. Top-of-the-market communities formed the
weak spots in the neighborhood, as occupancy in 1990s units was at 93.3 percent, while the rate in
communities finished since 2000 was down to 92.9 percent. Results here were influenced by just a handful of
weak properties in each age niche. Since Allen/McKinney’s new supply volume was held to fairly moderate
levels recently, the submarket’s brand new properties that completed during the past two years have leased up
fairly well – a good sign given that nearly 1,600 apartment units are set to complete construction here in the
near term.

Southern Dallas Submarkets
Only one of the six neighborhoods in the southern Dallas submarket cluster ranked on the list of top D/FW
occupancy performers as of June 2008. Occupancy in North Ellis County’s small base of apartment units
registered at 95 percent, fourth tightest in the region. A 2.5-point climb between March and June took the mid-
2008 rate back in line with the year-earlier result.

At the next tier of performance, June occupancy came in at 93 percent in Southwest Dallas. A 1.3-point
occupancy upturn for the quarter virtually erased prior losses, leaving the mid-2008 reading essentially in line
with the mid-2007 level. Tight occupancy of 97.3 percent in developments built since 2000 helped prop up the
submarket’s overall occupancy rate. On the other hand, occupancy was at 91.4 percent in the 1980s-
generation projects that comprise much of the stock here.

For Duncanville/DeSoto/Cedar Hill/Lancaster, 2nd quarter occupancy registered at 92.4 percent, while the rate
was at 92.1 percent in Grand Prairie. Duncanville/DeSoto/Cedar Hill/Lancaster saw overall occupancy slip 1.1
points from the mid-2007 figure with this annual performance shaped by a large block of deliveries entering the
leasing pool. The submarket’s moderate stock of developments constructed in 2000 or later were just 88.3
percent occupied as of June, a bleak result that was caused by some brand new product actually coming online
right in 2nd quarter. In contrast, Grand Prairie’s overall occupancy reading was 0.7 points ahead of the June
2007 rate. New product availability was a positive influence here, as occupancy in Grand Prairie’s large stock of
class A developments built since 2000 rose 0.8 points over the past year to stand at a solid rate of 94.7 percent
in 2nd quarter 2008.

In Oak Cliff, 2nd quarter’s 90.6 percent occupancy rate was off a whopping 3.3 points from the mid-2007 result,
though quarterly loss was more modest at 0.8 points. Much of Oak Cliff’s product consists of older
developments built prior to 1970, which saw occupancy register at a very competitive 85.3 percent in June. On
the other hand, the submarket moderate share new properties built since 2000 fared well. The occupancy rate
in that niche was pretty healthy at 94.3 percent as of June.



                                                                                                                             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
While South Dallas occupancy held essentially steady (up 0.1 point) between March and June, the annual loss
of 1.2 points left the 2nd quarter occupancy figure at just 88.7 percent. Weak occupancy readings were seen
across every product age category with the rate ranging from 85 percent in the 1970s-vintage units to 90.3
percent in developments built since 2000.

Northwestern Dallas Submarkets
Three neighborhoods in the northwestern Dallas submarket cluster placed among the top occupancy performers
in the D/FW region as of 2nd quarter 2008.

Denton’s June occupancy rate came in at 94.7 percent, up 0.8 points for the quarter and 1.2 points ahead of the
mid-2007 figure. The 1980s-vintage units, which comprise a large portion of Denton’s existing inventory, were
96.8 percent occupied in June. The rate for communities built since 2000 was also healthy at 94.3 percent, 1.7
points ahead of the 2nd quarter 2007 result.

Occupancy in Lewisville matched Denton’s rate of 94.7 percent. Lewisville’s June 2008 occupancy rate was up
0.7 points year-over-year. Boosting the area’s performance, this normally pretty active construction center didn’t
add much new supply during the past year, which helped keep occupancy healthy in the submarket’s top-of-the-
market communities. June occupancy was actually strong across the board ranging from 94 to 95 percent in
product from the 2000s, 1990s and 1980s.

Las Colinas/Valley Ranch posted 2nd quarter 2008 occupancy of 94.5 percent, down a minor 0.4 points on an
annual basis. It was the area’s quickly growing supply of top-tier apartments built in 2000 or later that posted
the tightest occupancy reading in 2nd quarter. Following a 2.5-point boost between mid-2007 and mid-2008,
occupancy in these newest communities landed at 95.6 percent as of June. This was quite an impressive
performance given the submarket had to process nearly 900 units of new supply during the past year.

The affordable East Irving neighborhood saw occupancy register at 94.3 percent as of June, with this rate
inching down 0.9 points year-over-year. Helping the submarket’s overall standing was the healthy 96 percent
reading seen in the 1970s-vintage stock. On the flip side, vacancies were widespread in the block of product
built before 1970 with June occupancy coming in at 91.7 percent.

West Irving’s occupancy rate came in at 93.4 percent in June 2008, with this showing essentially unchanged on
both a quarterly and annual basis. The 1980s-vintage projects that account for most of the apartments in West
Irving had occupancy of 94.6 percent in June. Holding down the submarket’s overall average was the bleak 87
percent reading in the 1970s-vintage communities.

Central Dallas Submarkets
Three of the nine central Dallas submarkets posted occupancy rates that topped 94 percent as of mid-2008.
East Dallas occupancy came in at 94.3 percent, while occupancy stood at 94.2 percent in both Far Northwest
Dallas and East University-Vickery. The East University-Vickery submarket was the standout performer here,
with occupancy strengthening 3.6 points between mid-2007 and mid-2008. Much of this annual progress was
due to a healthy performance in the bottom-tier communities, especially in the dominant stock of 1970s-vintage
units. A 5.8-point boost in this segment took occupancy to 94.4 percent as of June. On the flip side, low
occupancy in the submarket’s freshly delivered rental properties played a major role in the 89.6 percent
occupancy rate seen in the 2000s product segment.

Looking at the area’s comparatively weak performers, five locales recorded June occupancy rates lower than
the Dallas metro norm. Occupancy in Oak Lawn/Park Cities stood at 92.8 percent as of June. The 1.2-point
quarterly occupancy boost was not sufficient to overcome prior losses, keeping the submarket’s annual


                                                                                                                             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
occupancy downturn at a hefty 2.5 points. Occupancy was pretty low at the two ends of the product spectrum
registering at 91.4 percent in developments built before 1970 and 90.1 percent in the newest 2000s segment.

The key Intown Dallas submarket recorded June 2008 occupancy of 92.5 percent. Occupancy eased 1.8 points
between March and June, taking the mid-2008 reading 2.2 points under the mid-2007 figure. Occupancy was
weakest at just 89.9 percent in projects built since 2000, with this result influenced by the sizable block of new
supply that just finished in 2008-to-date and is still in the initial leasing process. On the other hand, Intown’s
sizable block of 1990s-generation properties is faring well with occupancy at a tight 95.6 percent.

Northwest Dallas was a submarket that suffered sizable net move-outs from older properties recently.
Overall occupancy as of June was at 92.4 percent, declining 0.7 points for the quarter. However, this recent
loss didn’t wipe out all of the previous progress, as June 2008 occupancy still came in 1 point ahead of the very
low rate seen in mid-2007. Occupancy here dropped to just 89.7 percent in the 1970s-era inventory.

At the bottom of the list for the central Dallas submarkets was the Highlands area, with June occupancy at 89.2
percent, and Far Northeast Dallas, with occupancy here coming in at 87.8 percent. Both neighborhoods
possess a large block of older apartment communities that struggled quite a bit in the past year as renters likely
moved to upgrade to higher-quality product in other locations or opted to lease a single-family rental home
instead. Overall occupancy in the Highlands submarket declined a notable 3.3 points between mid-2007 and
mid-2008, with this performance reflecting a weak leasing environment particularly in the submarket’s 1980s-
and 1970s-era communities. For Far Northeast Dallas, occupancy fell 1.2 points on a quarterly basis, taking the
June 2008 rate 0.3 points below the June 2007 level. Far Northeast Dallas’ results were swayed by a bleak
performance in the submarket’s 1970s projects.

Eastern Dallas Submarkets
The sample of units in the Mesquite submarket reported 2nd quarter occupancy of 93 percent. Occupancy here
backtracked 2.4 points from the March level, pulling the June 2008 figure 1.2 points below the June 2007 mark.
Only the newest projects built since 2000 – a moderate share of the total stock in Mesquite – posted a healthy
2nd quarter occupancy rate (94.9 percent). In contrast, occupancy below 93 percent was seen in the large
stocks of older product built during the 1980s and 1970s. Furthermore, almost all of the submarket’s occupancy
downturn was seen in these older projects, which compete with a notable supply of single-family homes offered
for lease at comparatively affordable rates.

Garland apartment occupancy was at 92.7 percent in 2nd quarter 2008. A large block of net move-outs in the
April-June time period caused occupancy to weaken 1.9 points from the March rate. In turn, the June 2008
reading fell 1.1 points behind the June 2007 level. Some new product that recently entered the leasing pool is
holding back the submarket’s overall occupancy standing. Developments built since 2000 were just 91.1
percent occupied as of mid-2008, with this rate dropping more than 4 points from the year-earlier mark. At the
other end of the spectrum, June occupancy in the older 1970s communities stood at 96.1 percent, up 1.2 points
year-over-year.

As usual, Far East Dallas was the weakest occupancy performer in the eastern Dallas submarket cluster. The
mid-2008 occupancy rate of 89.8 percent was down 0.8 points from the early 2007 level, with this quarterly slide
taking the June figure 1.6 points under June 2007’s occupancy. Far East Dallas has an apartment base heavy
on 1980s-era projects, and 2nd quarter occupancy in these units was only 91.1 percent. Much higher
occupancy of 96.1 percent was seen in the newest stock of developments built in 2000 or later.




                                                                                                                             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

                 AVERAGE GROSS OCCUPANCY BY BEDROOM TYPE BY SUBMARKET
                                                      2nd Quarter 2008
                        Submarket                         Total        Eff          One          Two         Three
           21   Intown Dallas                             92.5%        95.8%        92.9%        91.3%        94.7%
           22   South Dallas                              88.7%          n.a.       89.8%        88.5%        87.6%
           24   Oak Cliff                                 90.6%        88.9%        90.5%        90.4%        91.6%
           25   Dunc/DeSoto/CH/Lancaster                  92.4%        75.0%        92.5%        92.9%        88.5%
           26   Grand Prairie                             92.1%        93.4%        92.8%        91.4%        92.0%
           27   East Irving                               94.3%        92.3%        94.2%        94.5%        93.4%
           29   Oak Lawn/Park Cities                      92.8%        91.3%        92.8%        93.2%        89.9%
           30   Far Northwest Dallas                      94.2%        95.4%        94.4%        94.7%        91.8%
           31   Carrollton/FB/Addison                     94.7%        95.6%        94.9%        94.6%        94.0%
           32   Near North Dallas                         93.8%        95.2%        93.8%        93.9%        91.8%
           34   East Dallas                               94.3%        95.9%        94.2%        94.5%        90.8%
           35   Highlands                                 89.2%        89.8%        88.9%        89.6%        90.6%
           36   Richardson                                95.3%          n.a.       95.7%        95.0%        95.1%
           37   Garland                                   92.7%        92.4%        92.7%        92.8%        93.3%
           38   Mesquite                                  93.0%        95.2%        93.1%        92.7%        93.3%
           39   Southwest Dallas                          93.0%        91.5%        92.5%        92.8%        95.7%
           40   Far East Dallas                           89.8%        90.2%        90.6%        88.5%        89.9%
           41   East University-Vickery                   94.2%        89.5%        94.6%        94.1%        95.8%
           42   Northwest Dallas                          92.4%        91.2%        92.0%        93.3%        94.9%
           43   West Irving                               93.4%        92.9%        94.0%        92.9%        89.7%
           44   North Dallas                              94.8%        97.0%        94.8%        94.8%        94.1%
           45   Far Northeast Dallas                      87.8%        89.4%        88.7%        87.5%        66.1%
           47   Far North Dallas                          94.0%        95.1%        94.0%        93.9%        94.7%
           48   Las Colinas/Valley Ranch                  94.5%          n.a.       94.5%        94.4%        95.2%
                Dallas County                             92.9%        92.6%        93.1%        92.7%        92.4%
                City of Dallas                            92.3%        92.4%        92.6%        92.0%        91.8%
                Not in City                               93.7%        93.5%        93.9%        93.5%        93.1%
           81   Denton                                    94.7%        96.7%        95.5%        94.4%        93.3%
           82   Lewisville                                94.7%        94.8%        95.0%        94.6%        93.8%
           85   West Plano                                94.6%        94.7%        94.8%        94.6%        94.3%
           86   East Plano                                95.4%        93.8%        96.3%        95.3%        94.7%
           87   Allen/McKinney                            93.5%          n.a.       93.9%        93.0%        94.4%
           88   North Ellis County                        95.0%       100.0%        95.0%        95.4%        91.6%
                DALLAS AREA*                               93.2%       93.0%        93.4%        93.1%        92.8%




                                                                                                                             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
                                                             2nd Quarter 2008
                         Submarket                                Total           Eff            One            Two          Three
           52    South Fort Worth                                 86.2%           92.3%          88.6%          85.6%         81.6%
           53    Southwest Fort Worth                             93.4%           95.7%          93.7%          93.1%         92.4%
           54    Ridglea/Ridgmar                                  90.3%           87.8%          91.0%          89.6%         90.9%
           55    Western Hills                                    81.1%           84.7%          76.9%          83.9%         88.9%
           56    Intown/Cultural District                         96.4%           96.6%          96.2%          96.5%         98.3%
           58    North Fort Worth                                 88.5%             n.a.         90.6%          88.1%         84.5%
           59    Woodhaven                                        87.9%           81.6%          87.3%          88.8%         93.9%
           60    Centreport                                       91.7%           94.4%          91.1%          93.2%         90.5%
           70    North Arlington                                  91.9%           92.6%          92.3%          91.5%         86.2%
           71    South Arlington                                  91.6%           87.6%          91.3%          91.6%         94.2%
           72    Southwest Tarrant County                         92.0%             n.a.         92.1%          92.1%         86.4%
           73    Northwest Tarrant County                         92.6%           95.1%          93.3%          92.4%         86.9%
           74    Northeast Tarrant County                         92.9%           94.7%          92.3%          93.5%         93.4%
           75    Haltom City/Richland Hills                       92.2%           88.8%          92.6%          91.9%         93.2%
           76    Hurst/Euless/Bedford                             93.7%           93.8%          93.6%          93.8%         94.8%
                 FORT WORTH AREA*                                  91.5%          90.5%          91.5%          91.5%         91.7%
                 City of Fort Worth                               89.8%           89.3%          89.9%          90.0%         89.2%
                 Not in City                                      92.4%           91.0%          92.4%          92.4%         93.0%
                 D/FW AREA*                                        92.7%          92.3%          92.9%          92.7%         92.5%
          * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                      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 YEAR COMPLETED BY SUBMARKET
                                                      2nd Quarter 2008
                 Submarket                         Total       2000+        90-99        80-89        70-79       Pre-70
    21   Intown Dallas                              92.5%       89.9%        95.6%        95.5%          n.a.      93.9%
    22   South Dallas                               88.7%       90.3%        91.8%        88.9%        85.0%       90.2%
    24   Oak Cliff                                  90.6%       94.3%          n.a.       92.2%        91.3%        85.3%
    25   Dunc/Desoto/CH/Lancaster                   92.4%       88.3%       100.0%        93.1%        90.5%          n.a.
    26   Grand Prairie                              92.1%       94.7%        92.2%        89.7%        93.0%       91.7%
    27   East Irving                                94.3%         n.a.         n.a.       95.5%        96.0%        91.7%
    29   Oak Lawn/Park Cities                       92.8%       90.1%        97.5%        95.3%          n.a.      91.4%
    30   Far Northwest Dallas                       94.2%       89.0%          n.a.         n.a.       95.0%       96.2%
    31   Carrollton/FB/Addison                      94.7%       95.1%        93.8%        95.6%        93.7%       92.4%
    32   Near North Dallas                          93.8%       91.5%        94.2%        95.1%        94.0%       94.7%
    34   East Dallas                                94.3%       94.3%        98.8%        91.9%        99.6%       95.5%
    35   Highlands                                  89.2%         n.a.       92.9%        88.5%        89.8%       89.0%
    36   Richardson                                 95.3%       95.5%        95.7%        93.9%        94.5%       96.4%
    37   Garland                                    92.7%       91.1%        97.4%        91.6%        96.1%       93.4%
    38   Mesquite                                   93.0%       94.9%        91.6%        92.8%        90.6%          n.a.
    39   Southwest Dallas                           93.0%       97.3%        87.1%        91.4%        93.1%          n.a.
    40   Far East Dallas                            89.8%       96.1%          n.a.       91.1%        72.9%       90.5%
    41   East University-Vickery                    94.2%       89.6%        99.4%        96.3%        94.4%       94.4%
    42   Northwest Dallas                           92.4%       94.8%          n.a.       93.2%        89.7%       92.3%
    43   West Irving                                93.4%       92.5%          n.a.       94.6%        87.0%        96.2%
    44   North Dallas                               94.8%       90.3%        95.5%        94.5%        94.7%       96.6%
    45   Far Northeast Dallas                       87.8%         n.a.       95.0%        88.2%        84.8%          n.a.
    47   Far North Dallas                           94.0%       95.2%        95.2%        93.0%          n.a.         n.a.
    48   Las Colinas/Valley Ranch                   94.5%       95.6%        95.2%        93.9%        85.9%          n.a.
         Dallas County                              92.9%       93.1%        95.0%        92.5%        92.0%       91.7%
         City of Dallas                             92.3%       92.2%        95.1%        91.7%        91.6%       91.3%
         Not in City                                93.7%       94.3%        94.9%        93.3%        92.9%       93.0%
    81   Denton                                     94.7%       94.3%        90.3%        96.8%        97.6%       90.9%
    82   Lewisville                                 94.7%       94.0%        95.6%        95.0%        93.0%       98.4%
    85   West Plano                                 94.6%       94.3%        95.0%        94.8%        92.7%       95.8%
    86   East Plano                                 95.4%       95.4%        96.3%        94.7%        95.3%          n.a.
    87   Allen/McKinney                             93.5%       92.9%        93.3%        96.7%          n.a.         n.a.
    88   North Ellis County                         95.0%       93.5%          n.a.       96.0%        91.7%          n.a.
         DALLAS AREA*                               93.2%       93.4%        95.0%        92.9%        92.2%        91.8%




                                                                                                                             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
                                                             2nd Quarter 2008
                  Submarket                               Total         2000+          90-99          80-89           70-79     Pre-70
    52    South Fort Worth                                 86.2%         87.9%            n.a.         87.6%           82.3%      86.7%
    53    Southwest Fort Worth                             93.4%         91.2%          93.2%          94.3%           98.2%     89.9%
    54    Ridglea/Ridgmar                                  90.3%         89.3%            n.a.         86.8%           86.9%     92.3%
    55    Western Hills                                    81.1%           n.a.           n.a.         94.2%           69.7%     72.8%
    56    Intown/Cultural District                         96.4%         98.3%          96.1%          91.8%           91.7%     96.8%
    58    North Fort Worth                                 88.5%         84.8%          96.5%          92.6%           95.0%        n.a.
    59    Woodhaven                                        87.9%         95.6%          88.9%          87.8%           86.1%     82.0%
    60    Centreport                                       91.7%         87.9%          99.3%          91.4%             n.a.       n.a.
    70    North Arlington                                  91.9%           n.a.         97.6%          92.1%           84.8%     98.4%
    71    South Arlington                                  91.6%         94.1%          94.8%          92.0%           91.0%     87.4%
    72    Southwest Tarrant County                         92.0%         94.3%            n.a.         91.3%           94.7%        n.a.
    73    Northwest Tarrant County                         92.6%           n.a.         97.4%          91.6%           97.2%     77.8%
    74    Northeast Tarrant County                         92.9%         90.8%          96.3%          94.1%           94.0%        n.a.
    75    Haltom City/Richland Hills                       92.2%         94.2%          94.2%          93.5%           81.8%     90.2%
    76    Hurst/Euless/Bedford                             93.7%         95.1%          95.5%          94.4%           92.4%     89.0%
          FORT WORTH AREA*                                 91.5%         92.1%          95.4%          92.3%           87.3%      88.8%
          City of Fort Worth                               89.8%         90.0%          94.7%          91.4%           80.9%      88.4%
          Not in City                                      92.4%         93.5%          95.9%          92.8%           89.5%     89.1%
          D/FW AREA*                                       92.7%         93.1%          95.0%          92.7%           91.0%      90.9%
   * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                           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
Forecast
Region Overview
M/PF YieldStar anticipates that apartment
occupancy in the Dallas/Fort Worth area will                                Apartment Occupancy
inch down 0.2 points during the year-ending                                   Dallas/Fort Worth Area
June 2009, cooling to 92.5 percent.
                                                        100%
This forecast reflects scheduled completions
of nearly 13,300 units versus anticipated                 95%
demand near 10,900 units.
                                                          90%
The apartment sector has several key
factors that still seem to work in its favor.
First, economists are still calling for sizable     85%
job growth near 50,000 to 55,000 positions,
sufficient to stimulate considerable total          80%
housing demand. And, the rental sector
                                                           1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
appears positioned to capture an atypically
large block of that total demand, since                    03 03 04 04 05 05 06 06 07 07 08 08 09
stricter standards for mortgage qualification                                                           * forecast
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 13,300 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 in the same proportion that inventory
growth backs down from the schedule completion volume.




                                                                                                                             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
Dallas Area
Forecast apartment demand in the Dallas
metro stands at 7,100 units during the year-                                Apartment Occupancy
ending June 2009, falling short of scheduled                                        Dallas Area
deliveries totaling more than 9,600 units.              100%
Thus, the metro Dallas occupancy rate is
expected to slide 0.5 points over the coming
year, cooling to a mid-2009 figure of 92.7               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 3,800
apartments in the year-ending June 2009                                       Apartment Occupancy
compares to 3,650 units targeted for                                                Fort Worth Area
completion during the same time frame.
Unlike Dallas’ forecast then, metro Fort                100%
Worth seems likely to backfill a few
vacancies in existing product stock.                     95%

Fort Worth’s outlook calls for a 0.3-point
improvement, in this case taking the mid-                90%
2009 occupancy figure to 91.8 percent.
                                                         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




                                                                                                                                 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
Forecast: Submarket Highlights
While the overall outlook for apartments in North Texas calls for a mild decline during the year-ending June 2009,
a slight majority of neighborhoods actually seem likely to see mid-2009 occupancy equal to or improve a little
from the rates recorded in mid-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.

Several Fort Worth neighborhoods seem poised for notable improvement in the year ahead. Mild to moderate
demand will be sufficient to push occupancy up 2.2 points in Woodhaven, 2 points in Ridglea/Ridgmar, 1.6 points
in Southwest Tarrant County, 1.5 points in Centreport and 1 point in South Fort Worth. Among this group, South
Fort Worth is the only area with a moderate block of new supply scheduled to come online in the next 12 months.

On the other hand, some new product deliveries will cause overall fundamentals to soften quite a bit in two Fort
Worth neighborhoods: the Intown/Cultural District (-1 point) and North Fort Worth (-3 points). While leasing
conditions in North Fort Worth are already competitive, the year ahead will likely be even more challenging given
that nearly 1,400 apartments are scheduled to complete in the next 12 months. A large portion of these
apartments will likely still be in the initial leasing stages by mid-2009, causing the region’s steepest annual
occupancy downturn at 3 points.

Stable to rising occupancy seems likely to be the norm during the year-ending 2nd quarter 2009 in a few
individual neighborhoods in the central Dallas cluster. Far Northeast Dallas is predicted to make the biggest
move in the coming year with occupancy expected to rise 0.7 points by mid-2009. The Oak Lawn/Park Cities
area, which currently is performing under its usual rate relative to the levels in surrounding submarkets, also
seems to have solid upside potential: occupancy is forecast to improve by 0.5 points. On the other hand,
demand is forecast to fall short of the targeted completion volume in Northwest Dallas, reducing occupancy by
0.5 points, and in the East University-Vickery area, where the occupancy decline is anticipated at 0.7 points.
Furthermore, one of the bigger occupancy declines forecast across North Texas is in the Intown Dallas market,
reflecting targeted completions totaling nearly 1,900 units during the year-ending June 2009. Hence, occupancy
in this submarket seems likely to falter by 1.8 points.

While southern Dallas submarkets currently rank among the weaker occupancy performers across North Texas,
some 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 and the availability of some desirable product. Backfilling of
vacancies in the existing product stock should be enough to push occupancy upward by 0.5 points in South
Dallas, 0.3 points in Grand Prairie and 0.2 points in Southwest Dallas. Within this cluster of neighborhoods,
Duncanville/DeSoto/Cedar Hill/Lancaster should register the largest drop in occupancy. The 136 apartments
scheduled to finish there appear moderately beyond immediate demand capacity, taking occupancy down 0.8
points during the year-ending mid-2009.

In the eastern Dallas area, look for modest demand sufficient to push occupancy upward by 0.5 points in Far East
Dallas. In contrast, scheduled new supply appears to top demand in both Mesquite and Garland. As a result,
occupancy is predicted to dip 0.6 points in Mesquite and 0.7 points in Garland by 2nd quarter 2009.

Jumping to the northern Dallas submarket cluster, Far North Dallas is the only neighborhood where backfilling of
current vacancies is anticipated in the year-ending June 2009, with occupancy there expected to inch up 0.1
point. North Dallas, the other neighborhood in the cluster that won’t receive new supply during the coming year,
isn’t expected to attract any apartment demand, so mid-2009 occupancy should match the mid-2008 rate. At the
other end of the spectrum, demand is not expected to keep pace with the levels of new supply in several
                                                                                                                             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
submarkets, likely causing occupancy to soften 1.1 points in Richardson, 1.5 points in Carrollton/Farmers
Branch/Addison, 1.6 points in West Plano and 1.8 points in Allen/McKinney.

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 June 2009. A little backfilling of vacancies in the existing base
points to a minor 0.1-point uptick in West Irving, while no meaningful change in the occupied apartment count is
forecast for East Irving. In contrast, targeted completions slightly exceed expected demand in Denton, where
occupancy should ease 0.4 points, and in Las Colinas/Valley Ranch, where occupancy should cool by 0.5 points.
A slightly more notable occupancy dip of 0.7 points seems likely in Lewisville by mid-2009.

Following these occupancy shifts, only one of the 45 D/FW submarkets are expected to register 2nd quarter 2009
occupancy above 95 percent. Fort Worth’s Intown/Cultural District seems likely to lead the way, with occupancy
forecast at 95.4 percent. Neighborhoods expected to just miss that essentially full occupancy rate of 95 percent
in June 2009 are North Dallas, East Plano and North Ellis County.

Looking at the region’s weaker achievers, occupancy in mid-2009 should still be below the 90 percent mark in the
Highlands area, South Dallas, Far Northeast Dallas, South Fort Worth, North Fort Worth and Western Hills.




                                                                                                                             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


                                GROSS OCCUPANCY FORECAST BY SUBMARKET
                                                   2nd Quarter 2009
                                           Occ.   Forecast                                                Occ.       Forecast
             Submarket                   Forecast Change                 Submarket                      Forecast     Change
 21   Intown Dallas                       90.7%     -1.8      81 Denton                                  94.3%         -0.4
 22   South Dallas                        89.2%      0.5      82 Lewisville                              94.0%         -0.7
 24   Oak Cliff                           90.3%     -0.3      85 West Plano                              93.0%         -1.6
 25   Dunc/DeSoto/CH/Lancaster            91.6%     -0.8      86 East Plano                              94.7%         -0.7
 26   Grand Prairie                       92.4%      0.3      87 Allen/McKinney                          91.7%         -1.8
 27   East Irving                         94.3%      0.0      88 North Ellis County                      94.6%         -0.4
 29   Oak Lawn/Park Cities                93.3%      0.5          DALLAS AREA                            92.7%         -0.5
 30   Far Northwest Dallas                94.2%      0.0      52 South Fort Worth                        87.2%          1.0
 31   Carrollton/FB/Addison               93.2%     -1.5      53 Southwest Fort Worth                    93.5%          0.0
 32   Near North Dallas                   93.9%      0.1      54 Ridglea/Ridgmar                         92.3%          2.0
 34   East Dallas                         94.3%      0.0      55 Western Hills                           80.9%         -0.2
 35   Highlands                           89.6%      0.4      56 Intown/Cultural District                95.4%         -1.0
 36   Richardson                          94.2%     -1.1      58 North Fort Worth                        85.5%         -3.0
 37   Garland                             92.0%     -0.7      59 Woodhaven                               90.1%          2.2
 38   Mesquite                            92.4%     -0.6      60 Centreport                              93.2%          1.5
 39   Southwest Dallas                    93.2%      0.2      70 North Arlington                         92.8%          0.9
 40   Far East Dallas                     90.3%      0.5      71 South Arlington                         91.3%         -0.3
 41   East University-Vickery             93.5%     -0.7      72 Southwest Tarrant County                93.6%          1.6
 42   Northwest Dallas                    91.9%     -0.5      73 Northwest Tarrant County                92.0%         -0.6
 43   West Irving                         93.5%      0.1      74 Northeast Tarrant County                93.5%          0.6
 44   North Dallas                        94.8%      0.0      75 Haltom City/Richland Hills              92.9%          0.7
 45   Far Northeast Dallas                88.5%      0.7      76 Hurst/Euless/Bedford                    94.1%          0.4
 47   Far North Dallas                    94.1%      0.1          FORT WORTH AREA                        91.8%          0.3
 48   Las Colinas/Valley Ranch            94.0%     -0.5          D/FW AREA                              92.5%         -0.2




                                                                                                                             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
                                                                                                                      Rents



Region Overview
Annual rent growth in the Dallas/Fort Worth
area is cooling from the levels seen                                 Annual Same-Store Rent Change
previously. Measuring change on a same-
                                                                               Dallas/Fort Worth Area
store basis, effective rents climbed 2.9
percent during the year-ending June. Price              4%
increases were dialed back a bit from
annual rent growth that had been around 4
                                                        2%
percent at the end of 2007 and during the
first few months of 2008.
                                                        0%
Rent change registered below consumer
price inflation, which has been rising quite
rapidly due to mounting energy costs.                   -2%
According to the Bureau of Labor Statistics,
the general price inflation rate in North
Texas came in at 5 percent in the year-                 -4%
ending May 2008. Reflecting the rapid
                                                              1Q    3Q   1Q    3Q    1Q   3Q    1Q    3Q   1Q    3Q    1Q
acceleration in consumer prices, annual                       03    03   04    04    05   05    06    06   07    07    08
inflation registered at just 0.8 percent a year
ago in May 2007.

Helping effective rent growth in D/FW, the use of concessions continues to ease a bit. Concessions were
reported for 38 percent of the region’s product surveyed by M/PF YieldStar in 2nd quarter 2008, with this figure
down from the 45 percent share of properties reporting concessions a year ago. The size of the typical discount
in June was 8 percent.

Dallas/Fort Worth’s rent growth pace over the past year was stronger than the national norm. According to
preliminary results from a 2nd quarter sample of roughly 3.1 million units surveyed across the country, effective
rents were up 2.1 percent for the U.S. as a whole. Measuring change on a same-store basis, rent increases in
the South region registered at a similar 2.3 percent during the year-ending June. Looking specifically at other
major Texas metros, Austin and San Antonio posted the biggest rent hikes. Effective rates in Austin were up
3.6 percent, followed by a 3.3 percent increase in San Antonio. Not far behind, a 2.8 percent rent growth pace
was seen in the Houston metro.

Overall rents for Dallas/Fort Worth metro apartments averaged $752 per month, or 88.3¢ per square foot, as of
June 2008.




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for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
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                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents
Dallas Area
Even though Dallas’ apartment market saw
rather weak demand in 2008’s first half,
owners and managers in the metro
                                                                     Annual Same-Store Rent Change
continued to push rents upward at a                                                 Dallas Area
meaningful clip. Same-store rent growth                  4%
during the year-ending June registered at
2.9 percent. Though still meaningful, this               2%
annual rent hike has come down some from
the recent high of roughly 4 percent seen in
late 2007.                                               0%

Concessions were reported at 38 percent of
the product surveyed in Dallas during 2nd                -2%
quarter 2008, compared to a 45 percent
share one year ago. At 8 percent in June,                -4%
the size of the typical concession was down
                                                               1Q   3Q 1Q 3Q         1Q 3Q      1Q 3Q      1Q 3Q      1Q
from the 10 percent figure recorded one
year ago.                                                      03   03 04 04         05 05      06 06      07 07      08

As of mid-2008, average monthly rates for
the total sample in Dallas stood at $779,
while square-foot rents averaged 91¢.


Fort Worth Area
While Fort Worth suffered a hefty block of
net move-outs in 2nd quarter, the metro still
                                                                     Annual Same-Store Rent Change
posted a fairly solid rent increase. Monthly
                                                                                  Fort Worth Area
rents in Fort Worth’s apartment market rose
2.7 percent on a common sample basis from                4%
mid-2007 to mid-2008.
                                                         2%
The share of surveyed product in Fort Worth
offering concessions during 2nd quarter
2008 stood at roughly 37 percent, down                   0%
from the 47 percent share reported in 2nd
quarter 2007. The typical discount reduces
effective rent by 8 percent.                             -2%


Fort Worth’s average monthly rents for the               -4%
total sample registered at $676 in June                        1Q   3Q    1Q   3Q 1Q      3Q    1Q    3Q   1Q    3Q 1Q
2008, while square-foot rents averaged                         03   03    04   04 05      05    06    06   07    07 08
80.8¢.




                                                                                                                             83

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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
Looking at rent growth by age of community,
D/FW’s strongest increases during the year-
ending June were seen in units from the
                                                                    Annual Same-Store Rent Change
1980s and 1970s. In the region’s 1980s-era                               by Age of Community
units, effective rents were up 4.4 percent,                                   Dallas/Fort Worth Area
                                                         5%
while 1970s-vintage projects recorded a
somewhat similar price escalation of 3.8
percent. Both of these product age sectors               4%
suffered sizable occupancy losses during
the past quarter, suggesting pricing has                 3%
gotten a bit out of line with appropriate rates.
                                                         2%
At the next tier of performance, rent growth
essentially matching the North Texas norm
                                                         1%
was seen in the rapidly expanding block of
brand new communities. Common sample
rents in product built since 2000 rose 2.8               0%
percent in the year-ending mid-2008. Rent                        2000+       1990s       1980s       1970s     Pre-1970
hikes were slightly more aggressive in
Dallas’ newer properties than in Fort
Worth’s.

At the bottom end of performance, annual rent growth around 2 percent registered in the 1990s-generation
communities and in the oldest developments built before 1970. North Texas’ 1990s-era projects posted the
strongest occupancy rate at 95 percent as of June. Thus, a more aggressive pricing strategy in this age
category could have been tolerated. On the other hand, occupancy in the oldest collection of properties sank to
just 90.9 percent as of 2nd quarter 2008, so a conservative pricing strategy seemed appropriate here.



                                          Annual Same-Store Rent Change
                                              by Age of Community
                                                      2nd Quarter 2008
                         Metro               2000+        1990s        1980s         1970s  Pre-1970
                   Dallas Area                 3.0%         2.3%         4.8%          3.7%     1.6%
                   Fort Worth Area             2.3%         1.2%         3.6%          4.2%     2.5%
                   D/FW Area                   2.8%         2.1%         4.4%          3.8%     2.0%




                                                                                                                             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
The Dallas/Fort Worth area’s apartments
built since 2000 generate rents about 10
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 2nd quarter 2008, average rents in the
North Texas apartment market registered as
follows:                                                 $825

•   $1,014/month, or $1.043/sq ft, for                   $725
    product completed since 2000,
•   $920/month, or 99.7¢/sq ft, for 1990s
    communities,                                         $625
•   $644/month, or 82.4¢/sq ft, in 1980s
    stock,                                               $525
•   $618/month, or 75.9¢/sq ft, in 1970s                           2000+      1990s       1980s       1970s     Pre-1970
    properties, and
•   $626/month, or 77.1¢/sq ft, in product
    finished before 1970.



Rents by Floor Plan
Rental rates as of June 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 $501 a month,
or $1.049/sq ft, while rates in D/FW’s large selection of one-bedroom apartments averaged $651 per month, or
93.9¢/sq ft. Rental rates in D/FW’s two-bedroom units averaged $837 per month, or 83.7¢/sq ft, while rental
rates in three-bedroom apartments averaged $1,074 monthly, or 83.9¢/sq ft.




                                                                                                                             85

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for the sole and exclusive use of subscribers and may not be reprinted, resold, or recorded in any manner, in whole or in part,
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                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents

Submarket Highlights
Illustrating just how widespread rent increases were in the Dallas/Fort Worth region, 42 of the 45 North Texas
submarkets reported at least a little rent growth during the year-ending June 2008. In fact, more than half of the
region’s neighborhoods registered rent increases that topped the 3 percent mark.

Three of the biggest rent increases in North Texas during the past year occurred in the Fort Worth area.
Common sample rental rates surged a region-leading 8.8 percent in Centreport, 6.3 percent in Southwest
Tarrant County and 4.7 percent in Southwest Fort Worth. For the most part, these rent hikes were out of line
with the occupancy showings. In fact, Centreport and Southwest Tarrant County witnessed harsh occupancy
drops between March and June, leaving the mid-2008 occupancy rates essentially in line with the Fort Worth
average of 91.5 percent.

Looking at some of Fort Worth’s weaker performers, rent change below the D/FW norm was reported in two key
submarkets: the Intown/Cultural District (2.2 percent) and North Fort Worth (0.8 percent). With occupancy in the
Intown/Cultural District registering at a region-leading 96.4 percent in mid-2008, apartment operators here
certainly had sufficient pricing power to adopt a more aggressive strategy. On the flip side, the recent price
correction in North Fort Worth was justified. After annual rent growth topped a whopping 8 percent in March
2008, operators implemented a much more conservative increase with this performance likely a reaction to the
submarket’s weak apartment demand in 2008’s first half and resulting low occupancy rate of just 88.5 percent
as of mid-2008. Furthermore, the submarket is about to get slammed with nearly 1,800 new apartments in the
near term, so operators will have to position their class A product at prices that are appealing to renter
prospects.

Several central Dallas neighborhoods also reported solid rent achievement in the past year. Effective rent
growth topped the 6 percent mark in three central Dallas submarkets, with these performances making North
Texas’ annual rent growth leader board as of June. This group included Far Northeast Dallas (8.2 percent), Far
Northwest Dallas (6.6 percent) and the Highlands area (6.1 percent). It made little sense for operators to
implement such meaningful price hikes in the Far Northeast Dallas and Highlands locales, since occupancy
rates as of mid-2008 were subpar in both neighborhoods.

In contrast, a weak rent change performance was reported in a handful of areas in the central Dallas region
during the year-ending mid-2008. Rent growth below the regional norm was reported in East Dallas (2.8
percent), Intown Dallas (2.7 percent) and Oak Lawn/Park Cities (0.4 percent) submarkets. The subpar rent
increase in the Intown Dallas area still seemed a bit aggressive relative to the submarket’s occupancy rate,
which landed at a relatively competitive 92.5 percent in June. Furthermore, there was a notable softening
recently as occupancy dropped 1.8 points between March and June. However, it should be pointed out that a
large portion of Intown’s rent growth was concentrated in a handful of newer properties located immediately east
of North Central Expressway (U.S. 75). For the most part, occupancy in these communities was also healthy at
mid-year. Don’t look for rent growth to get any stronger here, as property operators in the Intown submarket are
likely bracing for the huge block of new apartment supply (nearly 2,300 units) scheduled to come online in the
near term.

In a surprise performance, five of the six neighborhoods in the southern Dallas cluster recorded rent growth that
surpassed the regional average during the year-ending June. At the top end, North Ellis County witnessed a
robust 5.7-percent boost, with this surge a reasonable match for the submarket’s 95 percent occupancy rate
seen in June. More moderate price expansions in the range of 3.5 to 4 percent were seen in Duncanville/
DeSoto/Cedar Hill/Lancaster (3.9 percent), Oak Cliff (3.7 percent) and South Dallas (3.5 percent). Operators
likely over-reached when setting rents in each of these areas, given that a fairly hefty occupancy downturn was
seen in all three submarkets during the past year, with mid-2008 occupancy rates registering far below the
                                                                                                                             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,
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                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents
metro Dallas average in each of these locales. On the other hand, apartment managers in Grand Prairie and
Southwest Dallas likely made the right move by implementing rent upturns at or below the Dallas metro norm,
with the strategy here making more sense relative to the middle-of-the-pack occupancy performances seen in
these neighborhoods.

A wide range of rent change performances was seen in Dallas’ more northern neighborhoods. At the top end,
effective rents climbed 4.6 percent in North Dallas and 4.4 percent in Richardson. Occupancy in both areas
hovered around 95 percent at mid-year, so an above-average increase made sense. Recording rent expansion
around the 3 to 4 percent range was Allen/McKinney (3.8 percent) and West Plano (3.5 percent). While the rent
upturn in West Plano was well tolerated, the rent positioning in Allen/McKinney seemed a bit aggressive, as
occupancy in the submarket dropped 2 points on an annual basis to land at 93.5 percent as of June. Looking at
the cluster’s weaker performers, essentially flat rent change was seen in Far North Dallas (up 0.1 percent) and
Carrollton/Farmers Branch/Addison (down 0.1 percent), while operators in East Plano reduced rents 1.3 percent
in the year-ending 2nd quarter. With fairly tight occupancy seen in both Carrollton/Farmers Branch/Addison and
East Plano as of June, operators in these areas appeared to miss an opportunity to raise rental rents.

Turning to the northwestern Dallas submarket cluster, Las Colinas/Valley Ranch was the only neighborhood to
make it on the region’s rent growth leader board. Common sample rents here rose 4.6 percent between mid-
2007 and mid-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. On the other hand, relatively strong
occupancy performances failed to inspire solid rent upturns in Lewisville (2.5 percent) and Denton (2.4 percent).

Rent change was clustered around 2.5 to 3 percent among the three eastern Dallas submarkets. Same-store
rent growth came in at 2.9 percent in Far East Dallas, 2.6 percent in Garland and 2.5 percent in Mesquite. All of
the three eastern Dallas submarket witnessed pretty hefty occupancy drops on a quarterly basis, leaving mid-
2008 occupancy below the Dallas metro average in each area. Thus, below-average pricing strategies made
sense in all three neighborhoods.

Intown Dallas’ average rental rates as of June 2008 stood at $1,340 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 another central
Dallas neighborhood: Oak Lawn/Park Cities recorded typical rental rates at $993 monthly in 2nd quarter.

Monthly average rents for product built since 2000 were highest in North Dallas ($1,932) and Intown Dallas
($1,524).




                                                                                                                             87

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
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                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents


                                             SAME-STORE RENT GROWTH
                                           2nd Quarter 2007 - 2nd Quarter 2008
                                        2Q 2008 Avg     %                                               2Q 2008 Avg    %
             Submarket                  Monthly Rent Change                Submarket                    Monthly Rent Change
21   Intown Dallas                        $1,340         2.7%     81   Denton                               $795        2.4%
22   South Dallas                          $688         3.5%      82   Lewisville                           $809        2.5%
24   Oak Cliff                             $691         3.7%      85   West Plano                           $902        3.5%
25   Dunc/DeSoto/CH/Lancaster              $740          3.9%     86   East Plano                           $767        -1.3%
26   Grand Prairie                         $746          2.9%     87   Allen/McKinney                       $843        3.8%
27   East Irving                           $623          1.7%     88   North Ellis County                   $701        5.7%
29   Oak Lawn/Park Cities                  $993          0.4%          DALLAS AREA                          $779         2.9%
30   Far Northwest Dallas                  $757          6.6%     52   South Fort Worth                     $555        -3.0%
31   Carrollton/FB/Addison                 $802         -0.1%     53   Southwest Fort Worth                 $733         4.7%
32   Near North Dallas                     $894         4.2%      54   Ridglea/Ridgmar                      $661        1.3%
34   East Dallas                           $773          2.8%     55   Western Hills                        $529        3.6%
35   Highlands                             $598         6.1%      56   Intown/Cultural District             $924        2.2%
36   Richardson                            $906         4.4%      58   North Fort Worth                     $806        0.8%
37   Garland                               $683          2.6%     59   Woodhaven                            $570        1.8%
38   Mesquite                              $693          2.5%     60   Centreport                           $620        8.8%
39   Southwest Dallas                      $629          2.2%     70   North Arlington                      $622        0.8%
40   Far East Dallas                       $596          2.9%     71   South Arlington                      $650        3.4%
41   East University-Vickery               $792          3.8%     72   Southwest Tarrant County             $653        6.3%
42   Northwest Dallas                      $668         4.2%      73   Northwest Tarrant County             $575        3.6%
43   West Irving                           $647         3.6%      74   Northeast Tarrant County             $882        3.6%
44   North Dallas                          $759         4.6%      75   Haltom City/Richland Hills           $684        0.6%
45   Far Northeast Dallas                  $562          8.2%     76   Hurst/Euless/Bedford                 $710        2.2%
47   Far North Dallas                      $720          0.1%          FORT WORTH AREA                      $676         2.7%
48   Las Colinas/Valley Ranch              $950         4.6%           D/FW AREA                            $752         2.9%




                                                                                                                             88

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                                                                                             Dallas/Fort Worth
                                                                                            Apartment Report
                                                                                                                      Rents


                       AVERAGE MONTHLY RENT BY BEDROOM TYPE BY SUBMARKET
                                                      2nd Quarter 2008
                          Submarket                     Total          Eff         One           Two          Three
          21   Intown Dallas                           $1,340         $819        $1,120        $1,626       $1,983
          22   South Dallas                             $688          n.a.         $513          $729         $839
          24   Oak Cliff                                $691          $500         $580          $712         $903
          25   Dunc/DeSoto/CH/Lancaster                 $740          $500         $636          $798         $972
          26   Grand Prairie                            $746          $506         $631          $798        $1,121
          27   East Irving                              $623          $454         $534          $662         $836
          29   Oak Lawn/Park Cities                     $993          $529         $855         $1,230       $1,975
          30   Far Northwest Dallas                     $757          $487         $668          $786        $1,060
          31   Carrollton/FB/Addison                    $802          $556         $697          $853        $1,161
          32   Near North Dallas                        $894          $471         $739         $1,096       $1,549
          34   East Dallas                              $773          $696         $703          $897        $1,037
          35   Highlands                                $598          $424         $525          $698         $867
          36   Richardson                               $906          n.a.         $799          $950        $1,129
          37   Garland                                  $683          $450         $605          $746         $946
          38   Mesquite                                 $693          $490         $607          $768         $972
          39   Southwest Dallas                         $629          $472         $529          $675         $827
          40   Far East Dallas                          $596          $421         $522          $685         $842
          41   East University-Vickery                  $792          $482         $717          $926        $1,260
          42   Northwest Dallas                         $668          $507         $575          $841        $1,179
          43   West Irving                              $647          $472         $572          $732         $979
          44   North Dallas                             $759          $478         $646          $889        $1,227
          45   Far Northeast Dallas                     $562          $447         $499          $686         $892
          47   Far North Dallas                         $720          $510         $633          $883        $1,196
          48   Las Colinas/Valley Ranch                 $950          n.a.         $820         $1,059       $1,389
               Dallas County                            $765          $515         $666          $861        $1,085
               City of Dallas                           $765          $522         $665          $882        $1,089
               Not in City                              $767          $489         $668          $836        $1,080
          81   Denton                                   $795          $478         $614          $787        $1,223
          82   Lewisville                               $809          $512         $707          $877        $1,153
          85   West Plano                               $902          $634         $778          $971        $1,268
          86   East Plano                               $767          $565         $658          $785         $926
          87   Allen/McKinney                           $843          n.a.         $712          $901        $1,144
          88   North Ellis County                       $701          $589         $608          $739         $863
               DALLAS AREA*                             $779          $515         $675          $867        $1,111




                                                                                                                             89

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
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                                                                                                               Dallas/Fort Worth
                                                                                                              Apartment Report
                                                                                                                                     Rents


                         AVERAGE MONTHLY RENT BY BEDROOM TYPE BY SUBMARKET
                                                               2nd Quarter 2008
                          Submarket                               Total             Eff             One             Two      Three
         52    South Fort Worth                                   $555             $400             $495            $575     $677
         53    Southwest Fort Worth                               $733             $463             $617            $825    $1,085
         54    Ridglea/Ridgmar                                    $661             $380             $578            $751     $944
         55    Western Hills                                      $529             $425             $454            $573     $772
         56    Intown/Cultural District                           $924             $788             $851           $1,010   $1,111
         58    North Fort Worth                                   $806             n.a.             $684            $851     $986
         59    Woodhaven                                          $570             $371             $499            $663     $883
         60    Centreport                                         $620             $495             $554            $756    $1,127
         70    North Arlington                                    $622             $463             $546            $735     $818
         71    South Arlington                                    $650             $422             $556            $714     $885
         72    Southwest Tarrant County                           $653             n.a.             $588            $724    $1,194
         73    Northwest Tarrant County                           $575             $480             $509            $633     $815
         74    Northeast Tarrant County                           $882             $574             $762            $975    $1,203
         75    Haltom City/Richland Hills                         $684             $428             $582            $742    $1,090
         76    Hurst/Euless/Bedford                               $710             $482             $613            $793    $1,100
               FORT WORTH AREA*                                   $676             $461             $584            $756     $973
               City of Fort Worth                                 $674             $478             $582            $751     $959
               Not in City                                        $678             $454             $586            $759     $980
               D/FW AREA*                                         $752             $501             $651            $837    $1,074
        * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                        90

©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
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                                                                                            Apartment Report
                                                                                                                      Rents


                    AVERAGE MONTHLY RENT BY YEAR COMPLETED BY SUBMARKET
                                                      2nd Quarter 2008
                   Submarket                      Total        2000+          90-99        80-89         70-79       Pre-70
   21   Intown Dallas                            $1,340        $1,524        $1,215       $1,059          n.a.       $655
   22   South Dallas                              $688          $980          $521         $564          $529        $624
   24   Oak Cliff                                 $691          $792           n.a.        $587          $635        $672
   25   Dunc/DeSoto/CH/Lancaster                  $740          $885          $841         $691          $678         n.a.
   26   Grand Prairie                             $746          $882          $820         $601          $590        $602
   27   East Irving                               $623          n.a.           n.a.        $615          $649        $588
   29   Oak Lawn/Park Cities                      $993         $1,451        $1,077        $810           n.a.       $662
   30   Far Northwest Dallas                      $757         $1,150          n.a.         n.a.         $698        $710
   31   Carrollton/FB/Addison                     $802         $1,065         $825         $740          $665        $650
   32   Near North Dallas                         $894         $1,407        $1,282        $923          $607        $897
   34   East Dallas                               $773         $1,051        $1,116        $731          $647        $615
   35   Highlands                                 $598          n.a.         $1,002        $593          $551        $635
   36   Richardson                                $906         $1,051         $985         $841          $716        $610
   37   Garland                                   $683          $938          $851         $641          $598        $630
   38   Mesquite                                  $693          $886          $748         $650          $566         n.a.
   39   Southwest Dallas                          $629          $784          $599         $572          $507         n.a.
   40   Far East Dallas                           $596          $857           n.a.        $531          $593        $584
   41   East University-Vickery                   $792         $1,326        $1,158        $832          $666        $772
   42   Northwest Dallas                          $668         $1,062          n.a.        $533          $565        $553
   43   West Irving                               $647         $1,012          n.a.        $628          $613        $625
   44   North Dallas                              $759         $1,932        $1,035        $700          $665        $585
   45   Far Northeast Dallas                      $562          n.a.          $882         $542          $593         n.a.
   47   Far North Dallas                          $720          $834          $816         $636           n.a.        n.a.
   48   Las Colinas/Valley Ranch                  $950         $1,121        $1,008        $805          $918         n.a.
        Dallas County                             $765         $1,101         $965         $651          $632        $640
        City of Dallas                            $765         $1,183         $984         $622          $626        $650
        Not in City                               $767          $999          $940         $681          $644        $610
   81   Denton                                    $795          $981          $820         $637          $596        $708
   82   Lewisville                                $809          $925          $823         $660          $709        $642
   85   West Plano                                $902         $1,004         $903         $781          $742        $824
   86   East Plano                                $767          $770          $805         $771          $692         n.a.
   87   Allen/McKinney                            $843          $904          $791         $682           n.a.        n.a.
   88   North Ellis County                        $701          $782           n.a.        $652          $665         n.a.
        DALLAS AREA*                              $779         $1,040         $929         $657          $633        $643




                                                                                                                             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
                                                                2nd Quarter 2008
                   Submarket                               Total          2000+             90-99            80-89   70-79   Pre-70
  52    South Fort Worth                                   $555            $725              n.a.            $574    $469    $549
  53    Southwest Fort Worth                               $733            $893             $992             $607    $528    $592
  54    Ridglea/Ridgmar                                    $661            $927              n.a.            $597    $455    $633
  55    Western Hills                                      $529            n.a.              n.a.            $535    $507    $588
  56    Intown/Cultural District                           $924           $1,211            $974             $547    $683    $566
  58    North Fort Worth                                   $806            $871             $785             $635    $558     n.a.
  59    Woodhaven                                          $570            $771             $652             $556    $565    $556
  60    Centreport                                         $620            $779             $758             $595     n.a.    n.a.
  70    North Arlington                                    $622            n.a.             $800             $616    $572    $544
  71    South Arlington                                    $650            $846             $880             $619    $576    $577
  72    Southwest Tarrant County                           $653            $883              n.a.            $622    $415     n.a.
  73    Northwest Tarrant County                           $575            n.a.             $730             $545    $514    $639
  74    Northeast Tarrant County                           $882           $1,052            $881             $739    $603     n.a.
  75    Haltom City/Richland Hills                         $684            $881             $872             $617    $573    $566
  76    Hurst/Euless/Bedford                               $710            $922             $842             $677    $630    $599
        FORT WORTH AREA*                                   $676            $916             $873             $616    $570    $581
        City of Fort Worth                                 $674            $914             $914             $581    $524    $582
        Not in City                                        $678            $917             $841             $635    $584    $580
        D/FW AREA*                                         $752           $1,014            $920             $644    $618    $626
 * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                  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 RENT PER SQUARE FOOT BY BEDROOM TYPE
                                        2nd Quarter 2008
                                                          $ Per Square Foot
                     Submarket             Total      Eff       One        Two                                 Three
        21   Intown Dallas                $1.420    $1.582     $1.456    $1.397                               $1.315
        22   South Dallas                 $0.759     n.a.      $0.790    $0.766                               $0.715
        24   Oak Cliff                    $0.774    $1.071     $0.842    $0.745                               $0.749
        25   Dunc/DeSoto/CH/Lancaster     $0.840    $0.800     $0.887    $0.810                               $0.841
        26   Grand Prairie                $0.858    $0.921     $0.905    $0.819                               $0.883
        27   East Irving                  $0.775    $1.094     $0.849    $0.734                               $0.742
        29   Oak Lawn/Park Cities         $1.185    $1.146     $1.213    $1.145                               $1.277
        30   Far Northwest Dallas         $0.804    $1.060     $0.899    $0.763                               $0.728
        31   Carrollton/FB/Addison        $0.879    $1.046     $0.943    $0.836                               $0.873
        32   Near North Dallas            $1.057    $1.030     $1.094    $1.007                               $1.103
        34   East Dallas                  $1.025    $1.335     $1.042    $0.937                               $1.085
        35   Highlands                    $0.776    $0.913     $0.816    $0.733                               $0.740
        36   Richardson                   $0.937     n.a.      $1.062    $0.897                               $0.809
        37   Garland                      $0.823    $0.978     $0.869    $0.788                               $0.790
        38   Mesquite                     $0.835    $0.962     $0.886    $0.798                               $0.786
        39   Southwest Dallas             $0.742    $0.951     $0.803    $0.713                               $0.682
        40   Far East Dallas              $0.768    $0.852     $0.808    $0.729                               $0.726
        41   East University-Vickery      $1.005    $1.108     $1.059    $0.938                               $0.958
        42   Northwest Dallas             $0.862    $0.994     $0.884    $0.822                               $0.844
        43   West Irving                  $0.808    $0.911     $0.852    $0.769                               $0.764
        44   North Dallas                 $0.893    $1.038     $0.928    $0.856                               $0.870
        45   Far Northeast Dallas         $0.750    $0.870     $0.764    $0.726                               $0.706
        47   Far North Dallas             $0.923    $1.178     $0.957    $0.871                               $0.893
        48   Las Colinas/Valley Ranch     $1.046     n.a.      $1.107    $0.999                               $1.022
             Dallas County                $0.906    $1.076     $0.962    $0.856                               $0.841
             City of Dallas               $0.924    $1.102     $0.975    $0.871                               $0.838
             Not in City                  $0.880    $0.973     $0.941    $0.840                               $0.846
        81   Denton                       $0.931    $1.238     $0.937    $0.854                               $1.041
        82   Lewisville                   $0.928    $0.960     $1.006    $0.874                               $0.900
        85   West Plano                   $0.958    $1.145     $1.022    $0.914                               $0.924
        86   East Plano                   $0.836    $1.004     $0.930    $0.825                               $0.758
        87   Allen/McKinney               $0.912     n.a.      $0.989    $0.872                               $0.885
        88   North Ellis County           $0.825    $1.205     $0.948    $0.782                               $0.734
             DALLAS AREA*                 $0.910    $1.087     $0.968    $0.861                               $0.864




                                                                                                                             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
                                         2nd Quarter 2008
                                                           $ Per Square Foot
                      Submarket             Total      Eff       One        Two                                            Three
        52    South Fort Worth             $0.701    $1.100     $0.782    $0.682                                          $0.605
        53    Southwest Fort Worth         $0.856    $0.948     $0.907    $0.815                                          $0.834
        54    Ridglea/Ridgmar              $0.745    $0.764     $0.808    $0.705                                          $0.672
        55    Western Hills                $0.640    $0.835     $0.678    $0.606                                          $0.618
        56    Intown/Cultural District     $1.051    $1.412     $1.147    $0.959                                          $0.971
        58    North Fort Worth             $0.859     n.a.      $1.003    $0.830                                          $0.731
        59    Woodhaven                    $0.701    $0.705     $0.727    $0.673                                          $0.720
        60    Centreport                   $0.871    $0.875     $0.911    $0.805                                          $0.913
        70    North Arlington              $0.788    $0.959     $0.816    $0.761                                          $0.676
        71    South Arlington              $0.781    $0.928     $0.844    $0.745                                          $0.728
        72    Southwest Tarrant County     $0.806     n.a.      $0.834    $0.767                                          $0.953
        73    Northwest Tarrant County     $0.745    $1.020     $0.801    $0.690                                          $0.737
        74    Northeast Tarrant County     $0.986    $1.034     $1.027    $0.956                                          $0.957
        75    Haltom City/Richland Hills   $0.798    $0.998     $0.845    $0.756                                          $0.823
        76    Hurst/Euless/Bedford         $0.832    $0.921     $0.870    $0.796                                          $0.835
              FORT WORTH AREA*             $0.808    $0.943     $0.857    $0.770                                          $0.770
              City of Fort Worth           $0.802    $0.946     $0.860    $0.757                                          $0.750
              Not in City                  $0.811    $0.942     $0.856    $0.777                                          $0.780
              D/FW AREA*                   $0.883    $1.049     $0.939    $0.837                                          $0.839
       * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                      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 YEAR COMPLETED
                                         2nd Quarter 2008
                                                          $ Per Square Foot
                Submarket                         Total       2000+          90-99        80-89        70-79       Pre-70
   21   Intown Dallas                            $1.420       $1.518        $1.321       $1.479         n.a.       $0.896
   22   South Dallas                             $0.759       $0.811        $0.867       $0.723       $0.667       $0.806
   24   Oak Cliff                                $0.774       $0.844          n.a.       $0.707       $0.724       $0.755
   25   Dunc/DeSoto/CH/Lancaster                 $0.840       $0.916        $0.882       $0.811       $0.810        n.a.
   26   Grand Prairie                            $0.858       $0.942        $0.919       $0.765       $0.603       $0.694
   27   East Irving                              $0.775        n.a.           n.a.       $0.799       $0.766       $0.785
   29   Oak Lawn/Park Cities                     $1.185       $1.490        $1.239       $1.123         n.a.       $0.885
   30   Far Northwest Dallas                     $0.804       $1.167          n.a.         n.a.       $0.745       $0.780
   31   Carrollton/FB/Addison                    $0.879       $1.073        $0.859       $0.832       $0.779       $0.759
   32   Near North Dallas                        $1.057       $1.258        $1.266       $1.163       $0.847       $0.872
   34   East Dallas                              $1.025       $1.235        $1.289       $1.007       $0.790       $0.901
   35   Highlands                                $0.776        n.a.         $1.134       $0.821       $0.686       $0.766
   36   Richardson                               $0.937       $1.089        $1.047       $0.793       $0.708       $0.688
   37   Garland                                  $0.823       $1.047        $0.919       $0.798       $0.698       $0.819
   38   Mesquite                                 $0.835       $0.996        $0.804       $0.810       $0.665        n.a.
   39   Southwest Dallas                         $0.742       $0.764        $0.713       $0.754       $0.638        n.a.
   40   Far East Dallas                          $0.768       $0.893          n.a.       $0.765       $0.675       $0.699
   41   East University-Vickery                  $1.005       $1.392        $1.141       $1.031       $0.904       $0.935
   42   Northwest Dallas                         $0.862       $1.175          n.a.       $0.790       $0.724       $0.698
   43   West Irving                              $0.808       $1.052          n.a.       $0.798       $0.738       $0.900
   44   North Dallas                             $0.893       $1.147        $1.071       $0.869       $0.826       $0.698
   45   Far Northeast Dallas                     $0.750        n.a.         $1.010       $0.739       $0.740        n.a.
   47   Far North Dallas                         $0.923       $1.007        $0.955       $0.880         n.a.        n.a.
   48   Las Colinas/Valley Ranch                 $1.046       $1.168        $1.059       $0.969       $0.838        n.a.
        Dallas County                            $0.906       $1.121        $1.049       $0.835       $0.779       $0.800
        City of Dallas                           $0.924       $1.178        $1.089       $0.842       $0.797       $0.807
        Not in City                              $0.880       $1.052        $0.996       $0.829       $0.739       $0.781
   81   Denton                                   $0.931       $1.001        $0.898       $0.917       $0.725       $0.839
   82   Lewisville                               $0.928       $0.998        $0.900       $0.851       $0.896       $1.026
   85   West Plano                               $0.958       $1.023        $0.968       $0.876       $0.864       $0.753
   86   East Plano                               $0.836       $0.816        $0.943       $0.806       $0.749        n.a.
   87   Allen/McKinney                           $0.912       $0.946        $0.873       $0.833         n.a.        n.a.
   88   North Ellis County                       $0.825       $0.804          n.a.       $0.841       $0.818        n.a.
        DALLAS AREA*                             $0.910       $1.068        $1.010       $0.840       $0.779       $0.801




                                                                                                                             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
                                             2nd Quarter 2008
                                                              $ Per Square Foot

                 Submarket                                 Total          2000+            90-99           80-89      70-79   Pre-70
    52   South Fort Worth                                 $0.701          $0.650            n.a.          $0.751     $0.607   $0.716
    53   Southwest Fort Worth                             $0.856          $0.893          $1.015          $0.795     $0.731   $0.620
    54   Ridglea/Ridgmar                                  $0.745          $0.972            n.a.          $0.709     $0.673   $0.677
    55   Western Hills                                    $0.640           n.a.             n.a.          $0.683     $0.586   $0.644
    56   Intown/Cultural District                         $1.051          $1.342          $0.978          $0.708     $0.767   $0.731
    58   North Fort Worth                                 $0.859          $0.864          $0.903          $0.795     $0.733    n.a.
    59   Woodhaven                                        $0.701          $0.848          $0.695          $0.689     $0.686   $0.725
    60   Centreport                                       $0.871          $0.818          $0.830          $0.882       n.a.    n.a.
    70   North Arlington                                  $0.788           n.a.           $0.947          $0.785     $0.730   $0.701
    71   South Arlington                                  $0.781          $0.895          $0.864          $0.782     $0.714   $0.695
    72   Southwest Tarrant County                         $0.806          $0.986            n.a.          $0.780     $0.562    n.a.
    73   Northwest Tarrant County                         $0.745           n.a.           $0.780          $0.736     $0.723   $0.777
    74   Northeast Tarrant County                         $0.986          $1.108          $0.939          $0.873     $0.796    n.a.
    75   Haltom City/Richland Hills                       $0.798          $0.894          $0.885          $0.786     $0.660   $0.657
    76   Hurst/Euless/Bedford                             $0.832          $0.954          $0.920          $0.851     $0.696   $0.730
         FORT WORTH AREA*                                 $0.808          $0.950          $0.930          $0.789     $0.695   $0.696
         City of Fort Worth                               $0.802          $0.935          $0.963          $0.762     $0.652   $0.685
         Not in City                                      $0.811          $0.959          $0.905          $0.803     $0.709   $0.704
         D/FW AREA*                                       $0.883          $1.043          $0.997          $0.824     $0.759   $0.771
  * So me submarkets are excluded to preserve co nfidentiality. Ho wever, these data are included in area to tals.




                                                                                                                                       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
                                                                                                         Submarkets



                                 HISTORICAL APARTMENT DATA BY SUBMARKET
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $1.267      $1,234           93.7%
                                           2006/09           $1.296      $1,229           94.1%
                                           2006/12           $1.277      $1,167           95.3%
                                           2007/03           $1.311      $1,205           93.4%
                  21 Intown                2007/06           $1.304      $1,204           94.7%
                   Dallas                  2007/09           $1.351      $1,312           93.7%
                                           2007/12           $1.335      $1,250           94.8%
                                           2008/03           $1.378      $1,307           94.3%
                                           2008/06           $1.420      $1,340           92.5%                870
                                           2006/06           $0.721       $666            88.0%
                                           2006/09           $0.722       $645            89.9%
                                           2006/12           $0.707       $634            88.0%
                                           2007/03           $0.708       $612            91.0%
               22 South Dallas             2007/06           $0.720       $643            89.9%
                                           2007/09           $0.730       $646            89.8%
                                           2007/12           $0.737       $663            89.5%
                                           2008/03           $0.763       $673            88.6%
                                           2008/06           $0.759       $688            88.7%                -60
                                           2006/06           $0.772       $676            87.6%
                                           2006/09           $0.739       $655            92.2%
                                           2006/12           $0.708       $603            92.1%
                                           2007/03           $0.728       $617            91.9%
                 24 Oak Cliff              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%
                                           2008/06           $0.774       $691            90.6%               -280
                                           2006/06           $0.771       $682            93.8%
                                           2006/09           $0.755       $654            93.3%
                                           2006/12           $0.756       $663            92.3%
                                           2007/03           $0.765       $670            94.0%
               25 Duncanville/             2007/06           $0.778       $682            93.5%
                  DeSoto/                  2007/09           $0.804       $706            94.1%
                 Cedar Hill/               2007/12           $0.818       $723            92.1%
                 Lancaster                 2008/03           $0.812       $703            90.3%
                                           2008/06           $0.840       $740            92.4%                460



                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.780       $650            91.6%
                                           2006/09           $0.805       $687            93.4%
                                           2006/12           $0.788       $674            92.1%
                                           2007/03           $0.818       $691            90.3%
                  26 Grand                 2007/06           $0.834       $704            91.4%
                   Prairie                 2007/09           $0.836       $717            95.3%
                                           2007/12           $0.855       $724            94.7%
                                           2008/03           $0.847       $731            92.7%
                                           2008/06           $0.858       $746            92.1%                310
                                           2006/06           $0.736       $595            94.3%
                                           2006/09           $0.742       $592            95.7%
                                           2006/12           $0.739       $589            95.0%
                                           2007/03           $0.731       $582            95.7%
                   27 East                 2007/06           $0.749       $606            95.2%
                    Irving                 2007/09           $0.775       $621            95.7%
                                           2007/12           $0.755       $605            96.4%
                                           2008/03           $0.762       $609            94.1%
                                           2008/06           $0.775       $623            94.3%               -100
                                           2006/06           $1.013       $828            95.0%
                                           2006/09           $1.073       $900            94.1%
                                           2006/12           $0.992       $795            94.8%
                                           2007/03           $1.050       $886            94.5%
                29 Oak Lawn/               2007/06           $1.118       $919            95.3%
                 Park Cities               2007/09           $1.037       $826            96.4%
                                           2007/12           $1.070       $891            91.2%
                                           2008/03           $1.133       $948            91.6%
                                           2008/06           $1.185       $993            92.8%                 20
                                           2006/06           $0.694       $651            95.1%
                                           2006/09           $0.714       $687            94.7%
                                           2006/12           $0.667       $651            94.4%
                                           2007/03           $0.719       $685            93.2%
                   30 Far                  2007/06           $0.705       $647            93.8%
                  Northwest                2007/09           $0.750       $697            94.1%
                   Dallas                  2007/12           $0.751       $710            95.7%
                                           2008/03           $0.795       $739            94.7%
                                           2008/06           $0.804       $757            94.2%                230



                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.809       $717            93.9%
                                           2006/09           $0.826       $750            95.1%
                                           2006/12           $0.804       $713            94.6%
                                           2007/03           $0.816       $738            94.9%
               31 Carrollton/              2007/06           $0.866       $776            93.3%
              Farmers Branch/              2007/09           $0.875       $784            95.6%
                  Addison                  2007/12           $0.885       $799            94.7%
                                           2008/03           $0.900       $813            94.5%
                                           2008/06           $0.879       $802            94.7%                250
                                           2006/06           $1.035       $905            95.8%
                                           2006/09           $0.972       $874            96.5%
                                           2006/12           $1.023       $848            94.0%
                                           2007/03           $1.033       $866            93.7%
                   32 Near                 2007/06           $1.019       $850            94.7%
                    North                  2007/09           $1.064       $852            96.3%
                    Dallas                 2007/12           $1.042       $885            95.5%
                                           2008/03           $1.054       $890            94.6%
                                           2008/06           $1.057       $894            93.8%                -70
                                           2006/06           $1.042       $761            91.0%
                                           2006/09           $1.046       $767            93.5%
                                           2006/12           $1.017       $735            94.3%
                                           2007/03           $1.013       $715            93.8%
                   34 East                 2007/06           $0.971       $692            92.3%
                    Dallas                 2007/09           $0.991       $736            95.4%
                                           2007/12           $1.049       $807            90.5%
                                           2008/03           $1.030       $742            91.2%
                                           2008/06           $1.025       $773            94.3%                240
                                           2006/06           $0.719       $566            88.9%
                                           2006/09           $0.735       $580            92.6%
                                           2006/12           $0.709       $567            91.7%
                                           2007/03           $0.744       $599            90.4%
                35 Highlands               2007/06           $0.732       $573            92.5%
                                           2007/09           $0.717       $565            91.2%
                                           2007/12           $0.763       $608            91.1%
                                           2008/03           $0.783       $632            92.2%
                                           2008/06           $0.776       $598            89.2%            -1,570




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.887       $857            94.5%
                                           2006/09           $0.912       $867            95.3%
                                           2006/12           $0.921       $872            95.2%
                                           2007/03           $0.854       $828            95.1%
               36 Richardson               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%
                                           2008/06           $0.937       $906            95.3%               -400
                                           2006/06           $0.811       $674            92.8%
                                           2006/09           $0.775       $650            93.3%
                                           2006/12           $0.757       $647            92.2%
                                           2007/03           $0.778       $661            92.8%
                 37 Garland                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%
                                           2008/06           $0.823       $683            92.7%               -310
                                           2006/06           $0.793       $665            94.0%
                                           2006/09           $0.778       $665            93.9%
                                           2006/12           $0.756       $636            93.4%
                                           2007/03           $0.787       $664            94.4%
                 38 Mesquite               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%
                                           2008/06           $0.835       $693            93.0%               -170
                                           2006/06           $0.712       $600            92.0%
                                           2006/09           $0.737       $610            92.5%
                                           2006/12           $0.721       $623            90.3%
                                           2007/03           $0.718       $624            93.3%
                39 Southwest               2007/06           $0.740       $620            93.1%
                   Dallas                  2007/09           $0.747       $632            91.7%
                                           2007/12           $0.751       $646            91.6%
                                           2008/03           $0.744       $644            91.7%
                                           2008/06           $0.742       $629            93.0%                -10




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.767       $601            88.7%
                                           2006/09           $0.771       $608            91.7%
                                           2006/12           $0.725       $560            91.4%
                                           2007/03           $0.745       $583            91.0%
                    40 Far                 2007/06           $0.761       $595            91.4%
                     East                  2007/09           $0.758       $603            91.8%
                    Dallas                 2007/12           $0.770       $609            92.2%
                                           2008/03           $0.782       $624            90.6%
                                           2008/06           $0.768       $596            89.8%               -230
                                           2006/06           $0.919       $715            94.1%
                                           2006/09           $0.942       $749            93.2%
                                           2006/12           $0.920       $737            91.9%
                                           2007/03           $0.941       $740            93.1%
                   41 East                 2007/06           $0.930       $741            90.6%
                  University-              2007/09           $0.916       $698            94.1%
                   Vickery                 2007/12           $0.959       $746            95.6%
                                           2008/03           $0.982       $771            93.6%
                                           2008/06           $1.005       $792            94.2%                670
                                           2006/06           $0.784       $607            91.8%
                                           2006/09           $0.815       $617            91.4%
                                           2006/12           $0.825       $644            91.3%
                                           2007/03           $0.829       $645            91.0%
                42 Northwest               2007/06           $0.803       $614            91.4%
                   Dallas                  2007/09           $0.819       $656            93.6%
                                           2007/12           $0.824       $677            95.0%
                                           2008/03           $0.818       $632            93.1%
                                           2008/06           $0.862       $668            92.4%               -120
                                           2006/06           $0.769       $614            92.7%
                                           2006/09           $0.783       $625            93.9%
                                           2006/12           $0.773       $616            92.5%
                                           2007/03           $0.777       $621            93.3%
                   43 West                 2007/06           $0.764       $612            93.1%
                    Irving                 2007/09           $0.780       $614            94.5%
                                           2007/12           $0.803       $643            93.7%
                                           2008/03           $0.804       $637            93.2%
                                           2008/06           $0.808       $647            93.4%                150




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.830       $702            93.4%
                                           2006/09           $0.858       $729            94.7%
                                           2006/12           $0.848       $711            93.6%
                                           2007/03           $0.890       $767            94.1%
                   44 North                2007/06           $0.868       $737            93.3%
                    Dallas                 2007/09           $0.871       $742            94.8%
                                           2007/12           $0.891       $781            94.9%
                                           2008/03           $0.902       $771            94.1%
                                           2008/06           $0.893       $759            94.8%                340
                                           2006/06           $0.704       $551            88.3%
                                           2006/09           $0.725       $550            90.8%
                                           2006/12           $0.712       $545            88.9%
                                           2007/03           $0.734       $553            88.0%
                   45 Far                  2007/06           $0.711       $529            88.1%
                  Northeast                2007/09           $0.741       $556            89.8%
                   Dallas                  2007/12           $0.732       $549            88.8%
                                           2008/03           $0.756       $567            89.0%
                                           2008/06           $0.750       $562            87.8%                 10
                                           2006/06           $0.884       $694            95.1%
                                           2006/09           $0.900       $676            95.6%
                                           2006/12           $0.883       $668            94.1%
                                           2007/03           $0.902       $680            94.9%
                    47 Far                 2007/06           $0.912       $710            94.6%
                    North                  2007/09           $0.914       $701            95.1%
                    Dallas                 2007/12           $0.925       $721            95.7%
                                           2008/03           $0.934       $731            95.7%
                                           2008/06           $0.923       $720            94.0%                140
                                           2006/06           $0.962       $861            95.1%
                                           2006/09           $0.984       $888            95.0%
                                           2006/12           $0.968       $870            93.2%
                                           2007/03           $0.953       $846            95.5%
               48 Las Colinas/             2007/06           $0.992       $898            94.9%
                Valley Ranch               2007/09           $1.001       $886            94.9%
                                           2007/12           $1.006       $901            94.5%
                                           2008/03           $1.035       $944            94.6%
                                           2008/06           $1.046       $950            94.5%                740




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.872       $725            91.3%
                                           2006/09           $0.899       $747            96.3%
                                           2006/12           $0.943       $752            95.8%
                                           2007/03           $0.885       $732            93.9%
                  81 Denton                2007/06           $0.885       $710            93.5%
                                           2007/09           $0.929       $772            95.1%
                                           2007/12           $0.945       $797            93.6%
                                           2008/03           $0.982       $814            93.9%
                                           2008/06           $0.931       $795            94.7%                420
                                           2006/06           $0.871       $757            94.4%
                                           2006/09           $0.886       $773            95.3%
                                           2006/12           $0.866       $755            93.7%
                                           2007/03           $0.875       $765            94.4%
                 82 Lewisville             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%
                                           2008/06           $0.928       $809            94.7%                430
                                           2006/06           $0.894       $829            94.4%
                                           2006/09           $0.908       $850            96.2%
                                           2006/12           $0.896       $843            94.9%
                                           2007/03           $0.897       $838            94.5%
                   85 West                 2007/06           $0.915       $858            95.0%
                    Plano                  2007/09           $0.923       $873            95.9%
                                           2007/12           $0.949       $899            95.2%
                                           2008/03           $0.957       $904            94.5%
                                           2008/06           $0.958       $902            94.6%                920
                                           2006/06           $0.857       $766            93.3%
                                           2006/09           $0.845       $755            94.2%
                                           2006/12           $0.805       $724            94.2%
                                           2007/03           $0.829       $736            94.4%
                   86 East                 2007/06           $0.857       $783            97.3%
                    Plano                  2007/09           $0.872       $780            95.2%
                                           2007/12           $0.888       $809            93.9%
                                           2008/03           $0.917       $830            95.0%
                                           2008/06           $0.836       $767            95.4%                630




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.851       $778            94.7%
                                           2006/09           $0.874       $790            96.7%
                                           2006/12           $0.843       $768            95.1%
                                           2007/03           $0.867       $783            95.0%
                  87 Allen/                2007/06           $0.860       $764            95.5%
                  McKinney                 2007/09           $0.884       $788            95.4%
                                           2007/12           $0.890       $812            95.3%
                                           2008/03           $0.914       $850            93.9%
                                           2008/06           $0.912       $843            93.5%                140
                                           2006/06           $0.741       $664            91.6%
                                           2006/09           $0.730       $630            91.1%
                                           2006/12           $0.720       $631            91.6%
                                           2007/03           $0.733       $613            94.7%
                   88 North                2007/06           $0.693       $601            95.0%
                     Ellis                 2007/09           $0.755       $660            95.9%
                    County                 2007/12           $0.753       $662            95.7%
                                           2008/03           $0.719       $622            92.5%
                                           2008/06           $0.825       $701            95.0%                  0
                                           2006/06           $0.851       $723            92.9%
                                           2006/09           $0.863       $733            94.1%
                                           2006/12           $0.847       $716            93.1%
                                           2007/03           $0.859       $727            93.4%
                   DALLAS                  2007/06           $0.868       $736            93.4%
                    AREA                   2007/09           $0.877       $744            94.4%
                                           2007/12           $0.892       $764            94.1%
                                           2008/03           $0.906       $774            93.5%
                                           2008/06           $0.910       $779            93.2%             3,660




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.677       $524            88.0%
                                           2006/09           $0.710       $552            89.7%
                                           2006/12           $0.670       $528            88.6%
                                           2007/03           $0.695       $536            89.1%
                   52 South                2007/06           $0.704       $539            85.7%
                     Fort                  2007/09           $0.718       $563            87.3%
                    Worth                  2007/12           $0.742       $592            92.7%
                                           2008/03           $0.755       $578            94.2%
                                           2008/06           $0.701       $555            86.2%                210
                                           2006/06           $0.784       $667            93.0%
                                           2006/09           $0.796       $675            94.5%
                                           2006/12           $0.758       $646            93.2%
                                           2007/03           $0.803       $684            94.2%
                53 Southwest               2007/06           $0.813       $694            94.2%
                    Fort                   2007/09           $0.815       $690            95.8%
                   Worth                   2007/12           $0.859       $729            94.5%
                                           2008/03           $0.849       $709            93.2%
                                           2008/06           $0.856       $733            93.4%                450
                                           2006/06           $0.620       $556            88.4%
                                           2006/09           $0.739       $664            92.0%
                                           2006/12           $0.696       $613            89.4%
                                           2007/03           $0.759       $663            90.3%
                 54 Ridglea/               2007/06           $0.717       $641            91.7%
                  Ridgmar                  2007/09           $0.724       $620            95.2%
                                           2007/12           $0.772       $690            97.0%
                                           2008/03           $0.678       $579            96.6%
                                           2008/06           $0.745       $661            90.3%               -270
                                           2006/06           $0.615       $509            90.3%
                                           2006/09           $0.617       $508            91.3%
                                           2006/12           $0.612       $490            89.8%
                                           2007/03           $0.604       $499            86.0%
                 55 Western                2007/06           $0.597       $499            88.5%
                    Hills                  2007/09           $0.619       $517            95.9%
                                           2007/12           $0.629       $540            89.8%
                                           2008/03           $0.643       $550            82.2%
                                           2008/06           $0.640       $529            81.1%               -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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.973       $838            94.2%
                                           2006/09           $0.994       $860            95.7%
                                           2006/12           $0.921       $775            96.2%
                                           2007/03           $1.040       $902            96.6%
                  56 Intown/               2007/06           $1.031       $921            90.9%
                   Cultural                2007/09           $1.133      $1,022           96.1%
                   District                2007/12           $1.063       $935            97.0%
                                           2008/03           $1.117       $999            96.4%
                                           2008/06           $1.051       $924            96.4%                190
                                           2006/06           $0.764       $734            93.6%
                                           2006/09           $0.815       $767            93.7%
                                           2006/12           $0.786       $730            93.3%
                                           2007/03           $0.754       $710            92.1%
                   58 North                2007/06           $0.818       $765            93.2%
                     Fort                  2007/09           $0.859       $807            94.2%
                    Worth                  2007/12           $0.859       $798            93.0%
                                           2008/03           $0.896       $830            87.4%
                                           2008/06           $0.859       $806            88.5%                 30
                                           2006/06           $0.698       $552            90.6%
                                           2006/09           $0.679       $551            87.7%
                                           2006/12           $0.669       $539            89.1%
                                           2007/03           $0.682       $552            89.7%
               59 Woodhaven                2007/06           $0.685       $554            88.7%
                                           2007/09           $0.696       $562            90.2%
                                           2007/12           $0.695       $546            90.7%
                                           2008/03           $0.703       $577            90.3%
                                           2008/06           $0.701       $570            87.9%               -120
                                           2006/06           $0.864       $593            92.4%
                                           2006/09           $0.853       $583            94.0%
                                           2006/12           $0.866       $595            95.2%
                                           2007/03           $0.868       $595            91.5%
                60 Centreport              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%
                                           2008/06           $0.871       $620            91.7%                  0




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents               Occupancy       Annual
                                                               Per        Per                            Units
                  Submarket                 Date              Sq Ft      Month            Gross        Absorbed
                                           2006/06           $0.760       $607            92.9%
                                           2006/09           $0.770       $614            92.4%
                                           2006/12           $0.743       $591            90.4%
                                           2007/03           $0.752       $610            91.1%
                   70 North                2007/06           $0.754       $615            91.6%
                   Arlington               2007/09           $0.750       $606            92.3%
                                           2007/12           $0.790       $626            93.9%
                                           2008/03           $0.798       $637            94.0%
                                           2008/06           $0.788       $622            91.9%                 10
                                           2006/06           $0.756       $636            92.6%
                                           2006/09           $0.764       $632            94.0%
                                           2006/12           $0.746       $627            93.0%
                                           2007/03           $0.764       $631            93.5%
                   71 South                2007/06           $0.770       $642            91.8%
                   Arlington               2007/09           $0.786       $647            95.4%
                                           2007/12           $0.788       $645            95.0%
                                           2008/03           $0.798       $659            94.7%
                                           2008/06           $0.781       $650            91.6%               -120
                                           2006/06           $0.778       $612            91.7%
                                           2006/09           $0.731       $610            88.7%
                                           2006/12           $0.683       $566            90.7%
                                           2007/03           $0.761       $647            94.6%
                72 Southwest               2007/06           $0.727       $570            90.2%
                   Tarrant                 2007/09           $0.792       $639            93.1%
                   County                  2007/12           $0.885       $736            97.7%
                                           2008/03           $0.789       $652            93.5%
                                           2008/06           $0.806       $653            92.0%                 50
                                           2006/06           $0.739       $586            93.6%
                                           2006/09           $0.686       $534            91.1%
                                           2006/12           $0.715       $564            92.1%
                                           2007/03           $0.720       $566            92.9%
                73 Northwest               2007/06           $0.720       $581            93.6%
                   Tarrant                 2007/09           $0.741       $575            93.7%
                   County                  2007/12           $0.731       $570            95.6%
                                           2008/03           $0.720       $562            94.7%
                                           2008/06           $0.745       $575            92.6%                -40




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents        Occupancy Annual
                                                               Per        Per                Units
                  Submarket                 Date              Sq Ft      Month     Gross   Absorbed
                                           2006/06             $0.916       $820     93.7%
                                           2006/09             $0.935       $823     93.1%
                                           2006/12             $0.915       $814     93.3%
                                           2007/03             $0.930       $840     93.6%
                74 Northeast               2007/06             $0.947       $856     95.0%
                   Tarrant                 2007/09             $0.944       $850     96.9%
                  County                   2007/12             $0.979       $870     96.2%
                                           2008/03             $0.961       $854     92.4%
                                           2008/06             $0.986       $882     92.9%         20
                                           2006/06             $0.750       $637     91.3%
                                           2006/09             $0.780       $674     93.2%
                                           2006/12             $0.782       $674     91.9%
                                           2007/03             $0.799       $691     92.2%
               75 Haltom City/             2007/06             $0.800       $684     90.6%
                Richland Hills             2007/09             $0.778       $673     92.5%
                                           2007/12             $0.803       $695     92.6%
                                           2008/03             $0.815       $696     93.9%
                                           2008/06             $0.798       $684     92.2%       350
                                           2006/06             $0.812       $684     93.1%
                                           2006/09             $0.814       $691     92.9%
                                           2006/12             $0.792       $687     92.1%
                                           2007/03             $0.821       $698     92.3%
                  76 Hurst/                2007/06             $0.839       $715     92.9%
                   Euless/                 2007/09             $0.831       $716     93.5%
                   Bedford                 2007/12             $0.841       $703     94.1%
                                           2008/03             $0.831       $710     95.7%
                                           2008/06             $0.832       $710     93.7%       150
                                           2006/06             $0.769       $640     92.3%
                                           2006/09             $0.779       $649     92.7%
                                           2006/12             $0.758       $635     91.9%
                                           2007/03             $0.781       $653     92.2%
                    FORT                   2007/06             $0.786       $661     91.8%
                   WORTH                   2007/09             $0.794       $666     93.8%
                    AREA                   2007/12             $0.813       $675     94.0%
                                           2008/03             $0.813       $678     93.4%
                                           2008/06             $0.808       $676     91.5%       510




                                                                                                                             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
                                       2nd Quarter 2006 - 2nd Quarter 2008
                                                                    Rents        Occupancy Annual
                                                               Per        Per                Units
                  Submarket                 Date              Sq Ft      Month     Gross   Absorbed
                                           2006/06             $0.829       $701     92.7%
                                           2006/09             $0.840       $711     93.7%
                                           2006/12             $0.824       $694     92.8%
                                           2007/03             $0.838       $708     93.1%
                 DALLAS/                   2007/06             $0.847       $716     93.0%
               FORT WORTH                  2007/09             $0.855       $723     94.2%
                  AREA                     2007/12             $0.871       $740     94.1%
                                           2008/03             $0.881       $749     93.4%
                                           2008/06             $0.883       $752     92.7%     4,170




                                                                                                                             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
                                                                                                     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 411,641 apartment units (about 68 percent of all existing units in the D/FW area) during June 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.


                                                                                                                            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

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.



                                                                                                                           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

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.

                                                                                                                           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


                                        SAMPLE DISTRIBUTION BY SUBMARKET
                                                BY BEDROOM TYPE
                                                 2nd Quarter 2008
                                                                   Percent
                                                                                             Bedroom Type
                                          Total    Total           of Base
             Submarket                   Existing Sampled         Sampled         Eff        One         Two         Three
    21   Intown Dallas                    14,421    11,191            77.6%         306       6,189       4,153         543
    22   South Dallas                     12,796     7,109            55.6%         n.a.      1,971       3,862       1,276
    24   Oak Cliff                        11,536     4,736            41.1%           36      1,701       2,318         681
    25   Dunc/DeSoto/CH/Lanc                7,994    6,389            79.9%           16      2,741       3,136         496
    26   Grand Prairie                    13,980     9,682            69.3%         182       4,201       4,513         786
    27   East Irving                        9,135    5,192            56.8%           26      2,260       2,372         534
    29   Oak Lawn/Park Cities               9,891    4,102            41.5%         195       2,430       1,378          99
    30   Far Northwest Dallas               3,413    3,113            91.2%         238       1,075       1,387         413
    31   Carrollton/FB/Addison            21,765    15,535            71.4%         271       6,686       7,462       1,116
    32   Near North Dallas                  7,269    5,949            81.8%         334       3,268       1,947         400
    34   East Dallas                        7,945    2,485            31.3%         219       1,443         704         119
    35   Highlands                        14,543     7,865            54.1%         205       4,523       2,870         267
    36   Richardson                         8,576    7,012            81.8%         n.a.      2,844       3,475         693
    37   Garland                          16,472     9,579            58.2%         315       4,379       4,333         552
    38   Mesquite                         13,549    10,259            75.7%         146       5,151       4,470         492
    39   Southwest Dallas                 10,749     6,793            63.2%         399       2,669       2,734         991
    40   Far East Dallas                  11,960     7,444            62.2%         264       4,047       2,650         483
    41   East University-Vickery          20,942    14,257            68.1%         762       8,277       4,761         457
    42   Northwest Dallas                 10,147     7,162            70.6%         408       4,458       2,081         215
    43   West Irving                      18,172    11,396            62.7%         254       6,116       4,685         341
    44   North Dallas                     22,129    15,135            68.4%         462       8,270       5,704         699
    45   Far Northeast Dallas             11,426     7,592            66.4%         226       4,814       2,384         168
    47   Far North Dallas                 29,028    24,431            84.2%         667      15,507       7,783         474
    48   Las Colinas/V. Ranch             23,435    19,180            81.8%         n.a.      9,875       8,470         835
         Dallas County                   331,273 223,588              67.5%       5,931     114,895      89,632      13,130
         City of Dallas                  198,195 129,364              65.3%       4,721      70,642      46,716       7,285
         Not in City                     133,078    94,224            70.8%       1,210      44,253      42,916       5,845
    81   Denton                           13,088     6,476            49.5%         215       2,339       2,701       1,221
    82   Lewisville                       22,356    16,336            73.1%         173       7,760       7,422         981
    85   West Plano                       27,966    20,031            71.6%         150       9,522       8,658       1,701
    86   East Plano                         4,239    2,290            54.0%           48        668       1,180         394
    87   Allen/McKinney                     9,520    7,953            83.5%         n.a.      3,346       3,913         694
    88   North Ellis County                 3,199    1,568            49.0%           24        564         826         154
         DALLAS AREA                     411,641 278,242              67.6%       6,541     139,094     114,332      18,275




                                                                                                                           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
                                                 2nd Quarter 2008
                                                           Percent
                                                                                             Bedroom Type
                                          Total    Total   of Base
             Submarket                   Existing Sampled Sampled                 Eff        One         Two         Three
    52   South Fort Worth                   4,925    2,667    54.2%                  26         945       1,392         304
    53   Southwest Fort Worth             16,339    11,450    70.1%                 116       6,002       4,413         919
    54   Ridglea/Ridgmar                    3,458    2,328    67.3%                  90       1,183         901         154
    55   Western Hills                      5,606    3,441    61.4%                 183       1,542       1,491         225
    56   Intown/Cultural District           3,464    2,053    59.3%                  87       1,030         877          59
    58   North Fort Worth                   5,646    3,321    58.8%                 n.a.      1,256       1,569         496
    59   Woodhaven                        10,254     6,594    64.3%                 136       3,767       2,543         148
    60   Centreport                         4,656    4,112    88.3%                  18       2,884       1,147          63
    70   North Arlington                  19,011    11,579    60.9%                 323       6,527       4,505         224
    71   South Arlington                  27,181    19,779    72.8%                 761       8,805       8,277       1,936
    72   Southwest Tarrant Co.              3,050    2,444    80.1%                 n.a.      1,415         985          44
    73   Northwest Tarrant Co.              4,050    1,696    41.9%                  41         860         711          84
    74   Northeast Tarrant Co.              6,918    5,658    81.8%                  19       2,841       2,436         362
    75   Haltom City/Rich. Hills          11,162     9,154    82.0%                 232       4,075       4,288         559
    76   Hurst/Euless/Bedford             24,099    19,684    81.7%                 676       9,613       8,465         930
         FORT WORTH AREA                 149,819 105,960      70.7%               2,708      52,745      44,000       6,507
         City of Fort Worth               54,348    35,966    66.2%                 656      18,609      14,333       2,368
         Not in City                      95,471    69,994    73.3%               2,052      34,136      29,667       4,139
         D/FW AREA                       561,460 384,202      68.4%               9,249     191,839     158,332      24,782




                                                                                                                           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 YEAR COMPLETED
                                                  2nd 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                  14,421    11,191      77.6%    5,902    4,214       582      n.a.                        493
22   South Dallas                   12,796     7,109      55.6%    2,069      110     2,404    1,533                         993
24   Oak Cliff                      11,536     4,736      41.1%    1,584      n.a.      943      732                       1,477
25   Dunc/DeSoto/CH/Lanc              7,994    6,389      79.9%    1,345      452     3,995      597                         n.a.
26   Grand Prairie                  13,980     9,682      69.3%    3,442    1,860     3,714      243                         423
27   East Irving                      9,135    5,192      56.8%      n.a.     n.a.      466    2,698                       2,028
29   Oak Lawn/Park Cities             9,891    4,102      41.5%    1,160      956       321      n.a.                      1,665
30   Far Northwest Dallas             3,413    3,113      91.2%      428      n.a.      n.a.   2,503                         182
31   Carrollton/FB/Addison          21,765    15,535      71.4%    3,333    2,173     6,028    3,582                         419
32   Near North Dallas                7,269    5,949      81.8%      781    1,454       327    3,368                          19
34   East Dallas                      7,945    2,485      31.3%      388      169     1,120      233                         575
35   Highlands                      14,543     7,865      54.1%      n.a.     324     3,742    3,100                         699
36   Richardson                       8,576    7,012      81.8%    1,226    3,226       848    1,191                         521
37   Garland                        16,472     9,579      58.2%    1,479      308     5,300    1,950                         542
38   Mesquite                       13,549    10,259      75.7%    1,999      467     6,773    1,020                         n.a.
39   Southwest Dallas               10,749     6,793      63.2%    1,940      464     3,548      841                         n.a.
40   Far East Dallas                11,960     7,444      62.2%    1,064      n.a.    4,229      779                       1,372
41   East University-Vickery        20,942    14,257      68.1%    1,768      180     2,524    8,243                       1,542
42   Northwest Dallas               10,147     7,162      70.6%    1,624      n.a.    2,411    2,097                       1,030
43   West Irving                    18,172    11,396      62.7%      625      n.a.    8,893    1,616                         262
44   North Dallas                   22,129    15,135      68.4%      207    3,004     3,598    7,502                         824
45   Far Northeast Dallas           11,426     7,592      66.4%      n.a.     240     6,039    1,313                         n.a.
47   Far North Dallas               29,028    24,431      84.2%    2,248    8,772    13,411      n.a.                        n.a.
48   Las Colinas/V. Ranch           23,435    19,180      81.8%    4,426    6,472     7,749      533                         n.a.
     Dallas County                 331,273 223,588        67.5% 39,038     34,845    88,965   45,674                      15,066
     City of Dallas                198,195 129,364        65.3% 21,163     19,887    45,199   32,244                      10,871
     Not in City                   133,078    94,224      70.8% 17,875     14,958    43,766   13,430                       4,195
81   Denton                         13,088     6,476      49.5%    2,488    1,009     2,167      582                         230
82   Lewisville                     22,356    16,336      73.1%    6,399    4,436     4,987      388                         126
85   West Plano                     27,966    20,031      71.6%    6,846    7,381     4,590      740                         474
86   East Plano                       4,239    2,290      54.0%      498      668       722      402                         n.a.
87   Allen/McKinney                   9,520    7,953      83.5%    4,724    2,183     1,046      n.a.                        n.a.
88   North Ellis County               3,199    1,568      49.0%      602      n.a.      942       24                         n.a.
     DALLAS AREA                   411,641 278,242        67.6% 60,595     50,522 103,419     47,810                      15,896




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 ©2008 M/PF YieldStar. The Dallas/Fort Worth Apartment Report is published quarterly by M/PF YieldStar. Material in this report is
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 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
                                                  2nd 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                 4,925    2,667      54.2%      182      n.a.      780      480   1,225
53   Southwest Fort Worth           16,339    11,450      70.1%    2,618    1,908     6,392      225     307
54   Ridglea/Ridgmar                  3,458    2,328      67.3%      497      n.a.      144      434   1,253
55   Western Hills                    5,606    3,441      61.4%      n.a.     n.a.    1,567    1,554     320
56   Intown/Cultural District         3,464    2,053      59.3%      864      360       159      206     464
58   North Fort Worth                 5,646    3,321      58.8%    2,095      626       500      100     n.a.
59   Woodhaven                      10,254     6,594      64.3%      364       27     5,581      411     211
60   Centreport                       4,656    4,112      88.3%      321      268     3,523      n.a.    n.a.
70   North Arlington                19,011    11,579      60.9%      n.a.     912     8,505    1,586     576
71   South Arlington                27,181    19,779      72.8%    3,477      444     8,545    4,569   2,744
72   Southwest Tarrant Co.            3,050    2,444      80.1%      404      n.a.    1,888      152     n.a.
73   Northwest Tarrant Co.            4,050    1,696      41.9%      n.a.     265       892      395     144
74   Northeast Tarrant Co.            6,918    5,658      81.8%    2,543      700     1,900      515     n.a.
75   Haltom City/Rich. Hills        11,162     9,154      82.0%    1,851      780     4,681      879     963
76   Hurst/Euless/Bedford           24,099    19,684      81.7%    2,070    2,567     9,473    3,955   1,619
     FORT WORTH AREA               149,819 105,960        70.7% 17,286      8,857    54,530   15,461   9,826
     City of Fort Worth             54,348    35,966      66.2%    6,941    3,189    18,646    3,410   3,780
     Not in City                    95,471    69,994      73.3% 10,345      5,668    35,884   12,051   6,046
     D/FW AREA                     561,460 384,202        68.4% 77,881     59,379 157,949     63,271 25,722




                                                                                                                            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

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.
                                                                                                                           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
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.

                                                                                                                           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


                                              Dallas Area




                                                                                                                           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

                                       Fort Worth 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
                                                                                      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
14,000 to 17,000 apartment properties with 3.5 to 4 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 60 metros and more than 450 submarkets. Multiple
scenarios assuming different economic conditions are provided.




                                                                                                                            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

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




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©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.

				
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