Docstoc

Shorewood_ WI

Document Sample
Shorewood_ WI Powered By Docstoc
					            Shorewood, WI
                   Page 1




 Shorewood, WI
        River Site Suitability Study
                   Market Analysis


                        April 2010



                       Prepared By:

Baker Tilly Virchow Krause, LLP
                Ten Terrace Court
                   P.O. Box 7398
              Madison, WI 53707
                    608-249-6622
                                                                                                                                              Shorewood, WI


Table of Contents


Executive Summary .................................................................................................................................. 1 
           Introduction ................................................................................................................................1 
           Methodologies ............................................................................................................................1 
           Sources ......................................................................................................................................2 
           Report Limitations ......................................................................................................................2 
           Major Findings and Conclusions ................................................................................................2 
Market Area Definition .............................................................................................................................. 5 
           Primary Market Area (PMA) .......................................................................................................5 
           Site Characteristics ....................................................................................................................7 
           Linkages ...................................................................................................................................13 
           Site Linkage Map .....................................................................................................................14 
Population and Households ................................................................................................................... 17 
           Overall Demographic Analysis .................................................................................................17 
           Residential PMA Demographic Analysis..................................................................................17 
           Income Target ..........................................................................................................................19 
           Household by Size ...................................................................................................................22 
           Household by Tenure ...............................................................................................................22 
           Automobile Ownership .............................................................................................................22 
Employment and Economy .................................................................................................................... 23 
           Employment by Industry Sector ...............................................................................................23 
           Historical Unemployment Rate ................................................................................................24 
           Milwaukee MSA Major Employers ...........................................................................................25 
           Milwaukee MSA Major Employers ...........................................................................................25 
           Typical Income by Occupation .................................................................................................26 
           Commuting Patterns ................................................................................................................27 
           Economic Conditions ...............................................................................................................27 
Rental Housing Market Analysis ........................................................................................................... 30 
           Residential Construction History ..............................................................................................30 
           Comparable Developments .....................................................................................................31 
           Residential Demand Analysis ..................................................................................................72 
           Estimation of Multifamily Market Rents ....................................................................................80 
Owner-Occupied Condominium Analysis ............................................................................................ 84 
Medical Office Market Overview ............................................................................................................ 91 
Retail Market Overview ........................................................................................................................... 94
Appendix A: Village of Shorewood Demographic Information
Appendix B: Statement of Limiting Conditions
                                                                                                 Shorewood, WI
                                                                                                        Page 1

Executive Summary

Introduction
The Village of Shorewood, Wisconsin is seeking to evaluate the market potential for several different land uses
on a key development site within the Village. This market study will assess the market potential for the following
uses: senior housing (independent and assisted living), multifamily rental housing, multifamily owner-occupied
condominiums, medical office and retail.

The proposed site is located on the west end of the Village, at the southeast corner of Capitol Drive and the
Milwaukee River. The site is located directly south of Estabrook Park, a Milwaukee County Park that stretches
north of Capitol Drive to Hampton Drive in the Village of Whitefish Bay. Directly east of the site is the Oak Leaf
Trail, a Milwaukee County recreational trail. The Oak Leaf Trail provides a buffer to the uses further to the east
which include Bakers Square and Culvers restaurants, a WE Energies electrical substation and a Village Public
Works facility. Directly west of the site is the Milwaukee River which is the Village’s border with the City of
Milwaukee. Multi-family apartment buildings line Humboldt Drive which runs parallel to the river. The site
possesses convenient vehicular linkages with easy connections to major roadways in Shorewood and
Milwaukee County. The buildable area of the site is relatively flat with drop offs towards the river on the west
and a steep slope to the Oak Leaf Trail on the east.

Methodologies
Methodologies used by Baker Tilly Virchow Krause, LLP (Baker Tilly) include the following:

       The primary market area (PMA) must first be established before the influences of supply and demand
        can be assessed. The PMA is defined as the geographic area from which a property is expected to
        draw the majority of its economic activity. PMAs are established using a variety of factors including, but
        not limited to:
              –   A detailed demographic and socioeconomic evaluation
              –   Interviews with area planners, realtors and other individuals who are familiar with area growth
                  patterns
              –   Personal observations by the field analyst
              –   An evaluation of existing supply characteristics and trends
       A site visit is conducted in order to identify comparable properties. The site visit is used to measure the
        overall strength of the markets being assessed. This is achieved through an evaluation of existing
        development projects. In addition, the site visit establishes those projects that are most likely directly
        comparable to the proposed property.
       Economic and demographic characteristics of the area are evaluated. The demographic evaluation
        uses the most recently issued Census information, as well as projections that determine what the
        characteristics of the market will be when the subject site will be developed.
       Area building statistics and interviews with officials familiar with area development provide identification
        of those properties that might be planned or proposed for the area that will have an impact on the
        marketability of the proposed development site.
       Supply and demand analysis appropriate for the different land uses examined as a part of the study and
        when possible, an estimation of market rents and prices.
                                                                                                  Shorewood, WI
                                                                                                         Page 2


Sources
Baker Tilly uses various sources to gather and confirm data used in each analysis. These sources include the
following:

       The 1990 and 2000 Census
       ESRI Business Analyst (demographic projections and retail surplus and leakage)
       Multiple Listing Service
       LoopNet
       U.S. Department of Labor
       Interviews with property management for comparable properties included in the survey
       Interviews with local planning, zoning, and building officials

Report Limitations
The intent of this report is to collect and analyze data to forecast the potential likelihood of market success of
the subject property within various time periods. Baker Tilly relies on a variety of sources of data to generate
this report. These data sources are not always verifiable. Baker Tilly, however, makes a significant effort to
assure accuracy. While this is not always possible, we believe our effort provides an acceptable standard
margin of error. Baker Tilly is not responsible for errors or omissions in the data provided by other sources.

The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting
conditions and is our personal, unbiased professional analyses, opinions and conclusions. We have no present
or prospective interest in the property that is the subject of this report and we have no personal interest or bias
with respect to the parties involved. Our compensation is not contingent on an action or event (such as the
approval of a loan) resulting from the analyses, opinions, conclusions in or the use of this study.

Major Findings and Conclusions
Based on the scope of research conducted and the analyst’s professional opinion, the following conclusions
have been made:

       Sufficient potential demand exists for approximately 70-135 market-rate independent senior units and
        20-40 affordable independent senior units. As few age-restricted independent senior developments
        were identified within the Primary Market Area, Baker Tilly surveyed independent living developments in
        peer communities and found vacancy rates of 9-10%. While these vacancy rates are slightly above
        typical market averages, property managers indicated that new residents are currently not moving into
        the facilities due to their inability to sell their existing homes. As the housing market continues to
        improve, increases in occupancies are expected. Furthermore, the demographic projections for the
        area show significant growth in seniors (178 seniors and 113 senior households added annually though
        2014) which will enhance the viability of independent living developments. Based on the rental rates in
        comparable developments, we estimate market rental rates to be approximately $900 for one bedroom
        units (750 SF) and $1,000 for two bedroom units (1,000 SF).
                                                                                              Shorewood, WI
                                                                                                     Page 3


   Sufficient potential demand exists for approximately 55-110 assisted living units (35-70 RCAC and 20-
    40 CBRF). Assisted living developments within the market area have above average vacancy, but
    these developments are older and located on the southern edge of the market area; no assisted living
    developments were identified within the Village limits. In order to include new-construction assisted
    living facilities in our analysis, Baker Tilly surveyed developments in peer communities and found
    vacancy rates of 7.7% for RCAC units and 0% for CBRF units. While the RCAC vacancy rates are
    slightly above typical market averages, property managers indicated that new residents are currently
    not moving into the facilities due to their inability to sell their existing homes. As the housing market
    continues to improve, increases in occupancies are expected. Furthermore, the demographic
    projections for the area show significant growth in seniors (178 seniors and 113 senior households
    added annually though 2014) which will enhance the viability of assisted living developments.
    Market rental rates for RCAC units (2 meals per day, 8 hours of weekly care) are approximately $2,850
    for studio units, $3,000-$3,100 for one bedroom units and $3,650-$3,750 for two bedroom units.
    Market rental rates for CBRF (full service) are approximately $3,600 - $4,000 for private room/private
    bath units.
   Sufficient potential demand exists for approximately 150-250 market-rate multifamily rental units and
    65-110 workforce family rental units. Existing market-rate multifamily rental developments in the market
    area currently are approximately 96% occupied. Market rental rates are approximately $850 for one
    bedroom units (800 SF), $1,100 for two bedroom units (1,100 SF), and $1,450 for three bedroom units
    (1,300 SF).
   The unmet demand for for-sale condominiums is currently low. According to data from the Multiple
    Listing Service, 33 condominiums sold within the 53211 zip code from January 2009 – March 2010.
    With 74 actively-listed condominiums within the zip code, it is not likely that sufficient demand will exist
    for new condominiums for at least two years. Furthermore, the 22 new-construction units on Oakland in
    Shorewood will further saturate the market for new-construction condominiums.
   The demand for medical office space at this location would likely be low given the number of vacancies
    in the market, the site’s distance from any medical center, and the site’s relatively low visibility. There is
    approximately 500,000 square feet of vacant medical office space within Milwaukee County with 25% or
    125,000 square feet of this space is located in or near Shorewood (much of it near the new Columbia
    St. Mary’s Hospital on Farwell in Milwaukee). There is currently 380,000 square feet of vacant medical
    office in Milwaukee County in buildings built since 2000 and 33% of this space is located in or near
    Shorewood (all 125,000 SF of vacant medical space in the Shorewood area has been built since 2000).
   While, sufficient potential demand exists within the Village of Shorewood for various retail uses
    including automobiles, building supply, restaurant, and home goods, many of these uses would likely
    not be marketable for the subject site. The limited access to this site, limited street frontage, and its
    location in between two retail centers likely reduces the viability of retail uses that are not specific
    destinations. However, restaurants are typically destination uses and may be successful on this site.
                                                                                            Shorewood, WI
                                                                                                   Page 4


                                      Recommendations Summary Table

                     Perceived
Development Type     Strength/       Potential Pricing     Market Potential               Comments
                      Outlook
                                                                             Few new construction options in
                                                       70-135 Market-rate     market area
                                                                units        Average to above-average
Senior Housing -       Average/         1 BR-$900
                                                                              vacancy currently due to housing
  Independent           Strong         2 BR-$1,000
                                                         20-40 Affordable     market
                                                          Housing units      Demographic projects indicate
                                                                              significant growth in senior cohort
                                                                             Few new construction options in
                                                                              market area
                                                                             Average to above-average
Senior Housing -       Average/   $2,850 - $3,750 RCAC 35-70 RCAC units
                                                                              vacancy currently due to housing
 Assisted Living        Strong    $3,600 - $4,000 CBRF 20-40 CBRF units
                                                                              market
                                                                             Demographic projects indicate
                                                                              significant growth in senior cohort
                                                                             95.4% occupancy
                                                       150-250 Market-rate  Few new construction
                                        1 BR-$850
Multifamily Rental                                              units         developments
                    Strong/Strong      2 BR-$1,100
     Housing                                            65-110 Workforce  Limited parking availability
                                      3 BR - $1,450
                                                          Housing units      Only 3.7% of units are 3 bedroom
                                                                              (1 vacancy)
                                                                             Trends of declining sales, falling
                                                                              prices
                                                                             Addition of 22 new units planned
                        Below-
   Multifamily                       $130 - $230/SF    None recommended       in Shorewood
                   Average/Below-
 Condominiums                         Average: $165         at this time     Estimated 2-year supply currently
                       Average
                                                                              listed
                                                                             Capital markets make financially
                                                                              difficult
                                                                             Most new development is
                                                                              occurring near Columbia St.
                                                                              Mary’s
                        Below-                                               Vacancy clustered in Glendale,
                                       $14-$17/SF      None recommended
 Medical Office Average/Below-                                                Shorewood, and northern
                                           NNN              at this time
                       Average                                                Milwaukee
                                                                             Challenged location due to
                                                                              visibility and distance to health
                                                                              centers
                                                                             Opportunities in market for retail
                                                                              growth
                   Average/Strong                                            Challenged location due to
                                                        1-2 limited service
      Retail          for Select    $15-$25/SF NNN                            proximity to retail centers, small
                                                           restaurants
                      Industries                                              site and little frontage
                                                                             Opportunity for limited-service
                                                                              restaurant
                                                                                                  Shorewood, WI
                                                                                                         Page 5

Market Area Definition

Primary Market Area (PMA)
The primary market area (PMA) is defined as a geographic area from which a property is expected to draw the
majority of its consumers. Additionally, the PMA is the area in which similar developments compete with the
subject property for tenants and customers. The PMA for the proposed development site must first be
established before the influences of supply and demand can be assessed.

The subject site is located in Shorewood, Wisconsin on the southeast corner of the Capitol Drive and the
Milwaukee River. The site is located directly south of Estabrook Park, a Milwaukee County Park that stretches
north of Capitol Drive to Hampton Drive in the Village of Whitefish Bay. Directly east of the site is the Oak Leaf
Trail, a Milwaukee County recreational trail. The Oak Leaf Trail provides a buffer to the uses further to the east
which include Bakers Square and Culvers restaurants, a WE Energies electrical substation and a Village Public
Works facility. Directly west of the site is the Milwaukee River which is the Village’s border with the City of
Milwaukee. Multi-family apartment buildings line Humboldt Drive which runs parallel to the river. The site
possesses convenient vehicular linkages with easy connections to major roadways in Shorewood and
Milwaukee County. The buildable area of the site is relatively flat with drop offs towards the river on the west
and a steep slope to the Oak Leaf Trail on the east.

Interviews were conducted with the Village officials, realtors, property managers, and developers. A consensus
among those interviewed indicated that a predominant primary market for the proposed development site exists
for all markets reviewed – residential, medical office and retail. In addition to the consensus among those
interviewed a review of the transportation linkages for the surrounding area and a driving tour of the
surrounding area establish a factual basis for determining the PMA boundaries. The geographic, ethnic,
religious, and societal/cultural markers were also evaluated in determining the PMA boundaries.

Residential PMA
The predominant Residential PMA includes an area generally bounded by Silver Spring Drive to the north, Lake
Michigan to the east, North Avenue to the south and I-94 and Holton Street to the west. The Residential PMA
does not extend very far west of the Milwaukee River which reflects a consensus among those interviewed (and
supported by demographic data) that market demands and consumer preferences west of the river are
generally not consistent with those in the defined PMA.

A consensus of those interviewed indicated that an estimated 70% of the demand for new residential units
would originate from within the Residential PMA. However, as a conservative approach, only the households
and population from the PMA will be considered in the capture and penetration analysis as determined in the
Demand Analysis Section of this report.

Medical Office PMA
The predominant Medical Office PMA includes all of Milwaukee County due to the regional nature of medical
services. A consensus of those interviewed indicated that an estimated 70% of the demand for the proposed
office space would originate from within the Medical Office PMA.

Retail PMA
The predominant Retail PMA includes an area defined as a 5-minute drive time from the subject site. Due to the
limited access to the subject site, limited size and street frontage, and its location in between two retail centers,
a consensus of those interviewed indicated the site would be suitable for convenience or neighborhood retail
and therefore a 5-minute drive time is appropriate. An estimated 70% of the demand for the proposed retail
space is expected to originate from within the 5-minute drive time Retail PMA.
                                                                                Shorewood, WI
                                                                                       Page 6




Residential Primary Market Area                      Medical Office Primary Market Area
                                                             Milwaukee County




                              Retail Primary Market Area
                                 5-minute Drive Time
                                                                                                 Shorewood, WI
                                                                                                        Page 7


Site Characteristics
This section includes a detailed description of the development site based upon the analyst's physical review of
the development site on February 18, 2010.

The subject site is located in Shorewood, Wisconsin on the southeast corner of the Capitol Drive and the
Milwaukee River. The subject consists of three parcels totaling approximately 6.9 acres. The first of the three
development parcels is approximately 2.0 acres, is located directly on Capitol Drive, and is currently occupied
by a vacant restaurant building and associated parking lot. The second development parcel is approximately
1.5 acres, is located south of the vacant restaurant property, and is currently occupied by vacant multifamily
apartment buildings. The third development parcel is approximately 3.4 acres, located to the south of the vacant
multifamily apartment buildings, and is currently occupied by a vacant warehouse building. The east and west
edges of the property are sloped (along the river on the west and bike path on the east) leaving approximately
4.2 acres of level, buildable land with 552 feet of frontage on Capitol Drive.

The following are descriptions of the various uses in all directions from the subject site:

North: Directly north of the site is Capitol Drive (State Road 190), which runs east into downtown Shorewood
       and west into the City of Milwaukee. Further north of Capitol Drive is Estabrook Park, a 115-acre
       Milwaukee County Park that stretches north of Capitol Drive to Hampton Drive in the Village of
       Whitefish Bay. The park is well-kept and is a regional destination for recreation and river activities.

South: Directly south of the site is Hubbard Park, a 5-acre Village of Shorewood park. The park cannot be
       accessed from the subject site, but rather through a pedestrian tunnel running under the Oak
       Leaf Recreation Trail. The Hubbard Park Lodge is located in the woods at the north end of the park.

East:   Directly east of the site is the Oak Leaf Trail, a Milwaukee County recreational trail. The Oak Leaf Trail
        provides a buffer to the uses further to the east which include Bakers Square and Culvers restaurants,
        a WE Energies electrical substation and a Village Public Works facility.

West:   Directly west of the site is the Milwaukee River which is the Village’s border with the City of Milwaukee.
        Multi-family apartment buildings line Humboldt Drive which runs parallel to the river.

The site possesses convenient vehicular linkages with easy connections to major roadways in Shorewood and
Milwaukee County. The site benefits from high-visibility along Capitol Drive, but limited ingress and regress.
The site also has convenient pedestrian linkages to adjacent restaurants across the Oak Leaf Trail, various
shopping opportunities approximately 0.4 miles to the east in downtown Shorewood and 0.5 miles to the west at
the Capitol Centre Shopping Centre, and three nearby County and Village parks.
                      Shorewood, WI
                             Page 8


Map of Subject Site
                                                                                                   Shorewood, WI
                                                                                                          Page 9


                                                      Aerial of Subject Site




                                                  1


                                                                               7
                                                                                       8




                                                       Subject
                                                        Site                       2       3



                         6
                                                                                               4




1.   Eastabrook Park
2.   Bakers Square
3.   Culvers
4.   WE Energies Electrical Substation
5.   Shorewood Public Works facility                                                                  5
6.   Multifamily Apartments (City of Milwaukee)
7.   Remax Office Building
8.   Mobil Station
                                                                                     Shorewood, WI
                                                                                           Page 10




Looking South across Capitol Drive at Restaurant   Looking South at Multifamily Properties in Middle of
       Building on Subject Site Frontage                             Subject Site




Looking West at Warehouse Building on Southern             Looking at River from Subject Site
              End of Subject Site
                                                                                  Shorewood, WI
                                                                                        Page 11




      Looking East along Capitol Drive                    Looking West along Capitol Drive




Looking North across Capitol Drive (at Estabrook   Remax Office Building Northwest of Subject Site
                    Park)
                                                                              Shorewood, WI
                                                                                    Page 12




Bakers Square Restaurant West of Subject Site   Mobil Gas Station Northwest of Subject Site
                                                                                             Shorewood, WI
                                                                                                   Page 13


Linkages
The Village of Shorewood provides fire and police protection. Linkages and their respective distances from the
site are listed on the following table.

                                          Shorewood River Site
                                         Neighborhood Linkages
                                                                                                 Distance
      Map #             Category                         Name/Description
                                                                                                 from Site
                         Public          Milwaukee County Transit – Along Capitol Drive
         -                                                                                       0.1 miles
                     Transportation                        (Route 62)
                                          Nehring’s Sendik’s On Oakland – 4027 North
                                                                                                 0.4 miles
        1           Grocery Store                            Oakland
                                                                                                 0.5 miles
                                                Pick’n Save – 4145 North Oakland
                                             Downtown Shorewood – Various Retail                 0.4 miles
        2              Shopping
                                         Capitol Centre Shopping Centre – Various Retail         0.5 miles
        3               Medical          Columbia St. Mary’s Hospital – 2025 E. Newport          0.9 miles
                                         Thompson’s Serv-U Pharmacy – 1421 E. Capitol            0.1 miles
                                                   Osco Drug – 709 E. Capitol                    0.3 miles
        4              Pharmacy
                                            Walgreens Pharmacy – 4081 N. Oakland                 0.5 miles
                                          Pick’n Save Pharmacy – 4145 North Oakland              0.5 miles
                                          Kingo Lutheran Church – 1225 E. Olive Street           0.2 miles
        5              Churches
                                       North Sore Presbyterian Church – 4048 N. Bartlett         0.4 miles
                                                    US Bank – 709 E. Capitol                      0.1 miles
        6               Banking               Wells Fargo Bank – 4015 N. Oakland                 0.4 miles
                                              North Shore Bank – 3970 N. Oakland                 0.4 miles
                                                 Bakers Square – 1305 E. Capitol                 0.1 miles
        7            Restaurants                    Culvers – 1325 E. Capitol                    0.1 miles
                                              Hubbard Park Lodge – 3565 N. Morris                0.4 miles
        8             Post Office                        1620 E. Capitol                         0.3 miles
        9        Elementary School        Atwater Elementary School – 2100 E. Capitol            0.6 miles
       10           Middle School       Shorewood Intermediate School – 3830 N. Morris           0.3 miles
       11            High School            Shorewood High School – 1701 E. Capitol              0.4 miles
                                        Shorewood Community Fitness – 1701 E. Capitol            0.4 miles
       12              Recreation
                                                     YMCA – 510 E. Burleigh                      1.1 miles
                                                         Estabrook Park                          0.1 miles
       13                Parks                            Hubbard Park                           0.1 miles
                                                            Kern Park                            0.4 miles
       14           Public Library            Shorewood Library – 3920 N. Murray                 0.6 miles
     Source: Baker Tilly Virchow Krause, LLP
                   Shorewood, WI
                         Page 14


Site Linkage Map
                               Shorewood, WI
                                     Page 15


Milwaukee County Transit Map
                                        Shorewood, WI
                                              Page 16


Milwaukee County Transit Route 62 Map
                                                                                               Shorewood, WI
                                                                                                     Page 17

Population and Households

Overall Demographic Analysis
Baker Tilly summarized and evaluated the existing social/economic data for the Village of Shorewood and the
Residential PMA (e.g., household composition, age and gender mix, education levels, racial composition,
income levels, transportation, housing usage, and employment projections by income level). Data for the
Medical Office and Retail PMAs was also collected and analyzed, but this section of the report focuses on the
Residential PMA due to the findings that this market is the strongest and due to the strong influences of
demographic trends on residential development.

The table below identifies the overall demographic trends for the Village of Shorewood and the Residential
PMA. The data shows that the Village and the Residential PMA are very similar in their projected rates of
change in all categories. The significant growth in senior households (age 65+) in both the Village and the
Residential PMA are notable. Also, the much higher median age of overall Shorewood residents is notable.

                      Demographic Comparison Village of Shorewood vs. PMA
                                                                                            % Change
                                                                 2009         % Change
                                                    2009                                    2009-2014
                     Description                               Residential    2009-2014
                                                   Village                                  Residential
                                                                 PMA           Village
                                                                                              PMA
                    Population              13,544            55,173            1.1%              0.7%
                    Households               6,588            25,615            1.6%              1.4%
                 Households 65+              1,354             3,943            15.2%            14.4%
              Average Household Size          2.03              2.07            -0.5%            -0.5%
               Owner-occupied HHs            3,134            11,110            0.6%             -0.2%
               Renter Occupied HHs           3,454            14,505            2.6%              2.6%
                    Median Age                39.9              32.3
           Sources: US Census Bureau, ESRI BIS estimates for 2009

The section that follows provides detailed demographic data for the Residential PMA. The same data for the
Village of Shorewood is included in Appendix A.

Residential PMA Demographic Analysis
The following table provides a summary of the demographic makeup of the people residing within the
Residential PMA. According to the US Census Bureau and the ESRI BIS actual 2000, estimated 2009, and
projected 2014 demographic data sets, the overall population is projected to increase by approximately 81
people per year for the 5 years ending in 2014, resulting in an overall gain of 0.73 percent. The number of
households is projected to increase at a rate of about 70 per year for a gain of 1.37 percent. The senior
household growth is projected at 14.4 percent from 2009 to 2014, adding approximately 113 senior households
annually. A greater increase is projected in renter occupied units than in owner occupied units, with the overall
average household size decreasing from 2.07 persons per household to 2.06 persons per household.
                                                                                   Shorewood, WI
                                                                                         Page 18

                           Residential PMA Demographic Summary
                                                                                         Annual
                                                                          % Change
           Description                 2000        2009         2014                     Change
                                                                          2009-2014
                                                                                        2009-2014
Population                            56,574        55,173       55,576         0.73%         80.6
Households                            25,524        25,615       25,966         1.37%         70.2
Households Ages 65+                    3,995         3,943        4,510         14.4%        113.4
Average Household Size                  2.13          2.07          2.06       -0.48%       -0.002
Owner-occupied HHs                    11,078        11,110       11,083        -0.24%          -5.4
Renter Occupied HHs                   14,446        14,505       14,883         2.61%         75.6
Median Age                              31.4          32.3          32.5                      0.04
  Sources: US Census Bureau, ESRI BIS estimates for 2009 and projections for 2014

                          Residential PMA Population/Age Distribution

                         Residential PMA Population/Age Distribution
                                        2000 – 2014
                            2000                        2009                        2014
Population by Age   Number       Percent      Number         Percent        Number       Percent
0-4                     2,882         5.1%          2,690        4.9%           2,679        4.8%
5–9                     2,873         5.1%          2,418        4.4%           2,390        4.3%
10 - 14                 2,933         5.2%          2,530        4.6%           2,443        4.4%
15 - 19                 4,377         7.7%          4,312        7.8%           3,995        7.2%
20 - 24                 8,012       14.2%           8,169       14.8%           8,224       14.8%
25 - 34                10,579       18.7%           9,467       17.2%          10,150       18.3%
35 - 44                 7,950       14.1%           6,801       12.3%           6,102       11.0%
45 - 54                 7,458       13.2%           7,393       13.4%           6,943       12.5%
55 - 64                 3,739         6.6%          5,701       10.3%           6,065       10.9%
65 - 74                 2,695         4.8%          2,658        4.8%           3,636        6.5%
75 - 84                 2,137         3.8%          1,902        3.4%           1,807        3.3%
85+                       940         1.7%          1,135        2.1%           1,145        2.1%
Total                  56,575        100%         55,176         100%          55,579        100%
 Sources: US Census Bureau, ESRI BIS estimates for 2009 and projections for 2014
                                                                                                Shorewood, WI
                                                                                                      Page 19


                    Residential PMA Population/Age Distribution Demographic Summary
                                         Demographic Summary

                               Residential PMA Population/Age Distribution
                                                                              %                   Average
                                          2009                2014
                        2000                                              Change                   Annual
     Age Cohort                         ESRI BIS            ESRI BIS
                       Census                                             2009 to                 Increase
                                        Estimated           Projected
                                                                            2014                2009 to 2014
     <25                21,077            20,119             19,731             -1.93%                   -77.6
     25-34              10,579             9,467             10,150              7.21%                   136.6
     35-44               7,950             6,801              6,102            -10.28%                  -139.8
     45-54               7,458             7,393              6,943             -6.09%                     -90
     55-64               3,739             5,701              6,065              6.38%                    72.8
     65-74               2,695             2,658              3,636             36.79%                   195.6
     75+                 3,077             3,037              2,952             -2.80%                     -17
     Total              56,575            55,176             55,579              0.73%                    80.6
      Source: US Census Bureau, ESRI BIS estimates for 2009 and projections for 2014

  Income Target
  The following table shows the distribution of household income by age of householder in the Residential PMA.
  A more detailed penetration analysis will be presented later in this report to more closely determine the number
  of age and income of households in market segments for different housing types.

                                Residential PMA Household Income by Age
                                              2009 Estimated
  HH Income Base      < 25     25-34       35-44       45-54              55-64       65-74         75+       Totals
        Total          3,468     5,625       4,195       4,735              3,648       1,767        2,176    25,614
<$15,000                 772       363         251         222                276         269          448     2,601
$15,000 to $24,999       685       427         347         257                179         255          367     2,517
$25,000 to $34,999       464       577         314         353                292         197          303     2,500
$35,000 to $49,999       692     1,231         721         600                587         194          236     4,261
$50,000 to $74,999       475     1,541         833         945                720         236          264     5,014
$75,000 to $99,999       223     1,042         638       1,012                459         231          194     3,799
$100,000 to $149,999      73       257         446         647                567         218          201     2,409
$150,000 to $199,999      50        78         311         309                246          82          113     1,189
$200,000 to $249,999      28        50         150         167                147          38           29       609
$250,000 to $499,999       6        53         156         194                149          39           20       617
$500,000 +                 0         6          28          29                 26           8            1        98
Median HH Income     $30,234 $52,139       $61,454     $74,638            $64,771     $46,941      $33,717
Average HH Income    $39,659 $61,706       $89,804     $96,167            $94,739     $71,657      $56,285
  Sources: US Census Bureau, ESRI BIS estimates for 2009
                                                                             Shorewood, WI
                                                                                   Page 20

                    Residential PMA Household Income by Age
                       2009 Estimated Under the age of 65
  HH Income Base       < 25      25-34       35-44       45-54     55-64      Totals
        Total           3,468      5,625       4,195       4,735     3,648     21,671
<$15,000                  772        363          251        222       276      1,884
$15,000 to $24,999        685        427          347        257       179      1,895
$25,000 to $34,999        464        577          314        353       292      2,000
$35,000 to $49,999        692      1,231          721        600       587      3,831
$50,000 to $74,999        475      1,541          833        945       720      4,514
$75,000 to $99,999        223      1,042          638      1,012       459      3,374
$100,000 to $149,999        73       257          446        647       567      1,990
$150,000 to $199,999        50        78          311        309       246        994
$200,000 to $249,999        28        50          150        167       147        542
$250,000 to $499,999         6        53          156        194       149        558
$500,000 +                   0          6          28         29        26         89
Median HH Income      $30,234    $52,139     $61,454     $74,638   $64,771
Average HH Income     $39,659    $61,706     $89,804     $96,167   $94,739
  Sources: US Census Bureau, ESRI BIS estimates for 2009

           Residential PMA Detailed Senior Household Income by Age
                                2009 Estimated
  HH Income Base      65-69      70-74       75-79       80-84      85+       Totals
        Total           1,032        735          841        640       695      3,943
<$15,000                  143        126          157        144       147        717
$15,000 to $24,999        149        106          133        112       122        622
$25,000 to $34,999        114         83          115         87       101        500
$35,000 to $49,999        113         81           90         68        78        430
$50,000 to $74,999        137         99          104         77        83        500
$75,000 to $99,999        140         91           88         53        53        425
$100,000 to $149,999      134         84           78         61        62        419
$150,000 to $199,999       49         33           49         27        37        195
$200,000 to $249,999       23         15           17          5         7         67
$250,000 to $499,999       25         14            9          6         5         59
$500,000 +                   5          3           1          0         0           9
Median HH Income      $49,480    $43,713     $37,010     $31,743   $32,205
Average HH Income     $73,990    $68,382     $61,103     $52,791   $53,672
  Sources: US Census Bureau, ESRI BIS estimates for 2009
                                                                                        Shorewood, WI
                                                                                              Page 21

                              Residential PMA Household Income by Age
                                             2000 Actual
   HH Income Base      < 25        25-34      35-44      45-54      55-64     65-74      75+       Totals
        Total           3,388        6,204      4,929      4,632      2,355     1,784     2,211    25,503
 <$15,000                 638          413        299        214        151       172       357     2,244
 $15,000 to $24,999       383          213        151        149        108       158       267     1,429
 $25,000 to $34,999       792          723        530        366        198       322       474     3,405
 $35,000 to $49,999       613        1,056        502        504        251       260       412     3,598
 $50,000 to $74,999       606        1,387        888        638        371       230       236     4,356
 $75,000 to $99,999       268        1,288        865        859        449       225       212     4,166
 $100,000 to $149,999      58          618        529        685        235       148        93     2,366
 $150,000 to $199,999      21          289        556        661        350       174       111     2,162
 >$200,000                  0           87        250        203         96        30        28       694
 Median HH Income           9          130        359        353        146        65        21     1,083
 Average HH Income    $23,346      $41,497    $52,410    $61,937    $54,511   $34,160   $25,141
  Sources: US Census Bureau

                              Residential PMA Household Income by Age
                                           2014 Estimated
  HH Income Base      < 25      25-34      35-44         45-54      55-64     65-74       75+       Totals
       Total           3,357     6,072        3,758        4,394      3,874     2,399      2,111    25,965
<$15,000                 758       360          247          185        273       339        471     2,633
$15,000 to $24,999       637       411          315          223        184       304        339     2,413
$25,000 to $34,999       428       538          279          281        283       222        268     2,299
$35,000 to $49,999       612     1,137          593          470        558       236        199     3,805
$50,000 to $74,999       548     1,897          811          947        814       383        304     5,704
$75,000 to $99,999       234     1,214          553          954        472       355        197     3,979
$100,000 to $149,999      65       306          376          602        608       304        185     2,446
$150,000 to $199,999      41        99          279          333        304       123        104     1,283
$200,000 to $249,999      28        51          119          156        158        59         26       597
$250,000 to $499,999       6        52          151          203        183        62         17       674
$500,000 +                 0          7          35           40         37        12          1       132
Median HH Income     $30,947   $55,106     $61,119       $76,641    $67,789   $54,792    $33,917
Average HH Income    $40,154   $64,110     $91,662 $102,818        $101,358   $77,279    $55,311
   Sources: US Census Bureau, ESRI BIS projections for 2014
                                                                                              Shorewood, WI
                                                                                                    Page 22

 Household by Size
 In 2000, 18,211 of the 25,522 (71.4 percent) occupied units in the Residential PMA were occupied by one or
 two people. This is a likely indicator that that approximately 71 percent of the housing demand in the
 Residential PMA is for efficiencies, one, and two-bedroom unit. This ratio suggests that existing and future
 multifamily rental units should target a mix of about 71 percent efficiencies, one, and two-bedroom units.

                                             Household by Size
                                               2000 Census
                         Households by Size        Number                    Percent
                                Total                  25,522                      100%
                       1 Person Household               9,640                     37.8%
                       2 Person Household               8,571                     33.6%
                       3 Person Household               3,759                     14.7%
                       4 Person Household               2,244                       8.8%
                       5 Person Household                 881                       3.5%
                       6 Person Household                 294                       1.2%
                       7+ Person Household                133                       0.5%
                           Source: US Census Bureau

 Household by Tenure
 The 2000 US Census data indicated that 43.4 percent of the occupied households in the Residential PMA
 owned their homes, while 56.6 percent were renters.

                                           Census 2000                   2009                     2014
            Description
                                        Number    Percent         Number     Percent        Number   Percent
   Total Occupied Households              25,524     100%           25,615       100%        25,966     100%
Owner-occupied HHs/Householder            11,078    43.4%           11,110      43.4%        11,083    42.7%
Renter Occupied HHs/Householder           14,446    56.6%           14,505      56.6%        14,883    57.3%
 Source: US Census Bureau

 Automobile Ownership
 The 2000 U.S. Census Data indicated that 3,264 (12.8 percent) of the households in the Residential PMA do
 not own an automobile. The average number of vehicles available is 1.4 per household.

                              Number of Cars per HH            Total        Percent
                                      Total                       25,508       100%
                            None                                   3,264      12.8%
                            1                                     11,676      45.8%
                            2                                      8,489      33.3%
                            3                                      1,713       6.7%
                            4                                        259       1.0%
                            5+                                       107       0.4%
                            Average Number of
                                                                      1.4
                            Vehicles Available
                               Source: US Census Bureau
                                                                                          Shorewood, WI
                                                                                                Page 23

Employment and Economy

Employment by Industry Sector
As shown in the following table, the employment base of the Residential PMA has a higher percentage of
residents working in Professional/Scientific/Mgmt/Admin/Waste Mgmt Services and Educational/Health/Social
Services and lower percentage of residents working in Manufacturing.

                        Civilian Employed Population 16+ by Industry, 2000
                                         Residential PMA
                                                                Residential PMA         State of Wisconsin
                                                               Employed Percent        Employed Percent
Agriculture/Forestry/Fishing/Hunting/Mining                          74       0.2%         75,418      2.8%
Construction                                                        863       2.6%        161,625      5.9%
Manufacturing                                                     3,282     10.1%         606,845     22.2%
Wholesale Trade                                                     877       2.7%         87,979      3.2%
Retail Trade                                                      3,185       9.8%        317,881     11.6%
Transportation/Warehousing/Utilities                                902       2.8%        123,657      4.5%
Information                                                       1,290       4.0%         60,142      2.2%
Finance/Insurance/Real Estate/Rental/Leasing                      2,859       8.8%        168,060      6.1%
Professional/Scientific/Mgmt/Admin/Waste Mgmt Services            4,680      14.4%        179,503      6.6%
Educational/Health/Social Services                                9,440      29.0%        548,111     20.0%
Arts/Entertainment/Recreation/Accommodation/Food Services         3,025       9.3%        198,528      7.3%
Other Services                                                    1,192       3.7%        111,028      4.1%
Public Administration                                               937       2.9%         96,148      3.5%
     Totals                                                      32,606    100.0%       2,734,925 100.0%
   Source: US Census Bureau, 2000
                                                                                            Shorewood, WI
                                                                                                  Page 24


Historical Unemployment Rate

                                          Unemployment Rates
                                              Local/State
                                      Milwaukee        State of            United
                            Year
                                        Metro        Wisconsin             States
                           1990          4.2%           4.3%                5.6%
                           1991          4.9%           5.3%                6.9%
                           1992          4.8%           5.2%                7.5%
                           1993          4.2%           4.5%                6.9%
                           1994          4.1%           4.3%                6.1%
                           1995          3.5%           3.7%                5.6%
                           1996          3.5%           3.6%                5.4%
                           1997          3.4%           3.5%                4.9%
                           1998          3.2%           3.3%                4.5%
                           1999          3.1%           3.1%                4.2%
                           2000          3.6%           3.4%                4.0%
                           2001          4.6%           4.4%                4.8%
                           2002          5.8%           5.3%                5.8%
                           2003          6.1%           5.6%                6.0%
                           2004          5.4%           4.9%                5.5%
                           2005          5.0%           4.7%                5.1%
                           2006          4.8%           4.7%                4.6%
                           2007          4.9%           4.8%                4.6%
                           2008          4.8%           4.7%                5.8%
                         June/2009       9.8%           9.2%                9.5%
                           Source: US Department of Labor

In 1990, the average unemployment rate for the Milwaukee Metro Area was 4.2% and has averaged 4.7% over
the last 20 years; however, along with Wisconsin and National unemployment, has risen sharply in the last 12-
18 months.
                                                                                                        Shorewood, WI
                                                                                                              Page 25


Milwaukee MSA Major Employers
Company                                       Business Description                          County        Employment

Aurora Health Care                             Health care system                           Milwaukee     21,570

Wheaton Franciscan Healthcare                 Health care system                            Milwaukee     12,000

Kohl's Corp.                                  Department stores                             Waukesha      6,300

Quad/Graphics Inc.                            Commercial printer                            Waukesha      6,000

GE Healthcare Technologies                    Medical imaging & information systems         Waukesha      6,500

Columbia-St. Mary's                           Health care system                            Milwaukee     5,400

ProHealth Care Inc.                           Health care system                            Waukesha      5,000

Rockwell Automation                           Industrial automation products & systems      Milwaukee     5,000

Roundy's                                      Food distributor & retailer                   Milwaukee     5,000

Northwestern Mutual                           Life & disability insurance & annuities       Milwaukee     5,000

Wisconsin Energy Corp.                        Electric & natural gas utility                Milwaukee     4,800

Marshall & Ilsley Corp.                       Bank holding company                          Milwaukee     4,520

Medical College of Wisconsin                  Medical school                                Milwaukee     4,500

AT&T Wisconsin                                Telecommunication services                    Milwaukee     4,300

Harley-Davidson Inc.                          Motorcycles & accessories                     Milwaukee     3,600

Children's Hospital of Wisconsin              Pediatric health care services                Milwaukee     3,385

Briggs & Stratton Corp.                       Small gasoline engines                        Milwaukee     3,000

US Bank                                       Banking services                              Milwaukee     3,300

Potawatomi Bingo Casino                       Casino                                        Milwaukee     2,745

Wells Fargo                                   Bank holding company                          Milwaukee     2,700

Metavante                                      Financial data & processing systems          Milwaukee     2,700

Johnson Controls                              Control systems, batteries & auto interiors   Milwaukee     2,500

Bon-Ton Department Stores                     Department stores                             Milwaukee     2,300

Marquette University                          University                                    Milwaukee     2,194

Assurant Health                               Health insurance products                     Milwaukee     2,000

Patrick Cudahy Inc.                           Meat processor                                Milwaukee     2,000

Potawatomi Bingo Casino                       Casino                                        Milwaukee     2,000

Cooper Power Systems                          Electrical distribution equipment             Waukesha      1,900

Journal Communications                         Newspapers, radio & television stations      Milwaukee     1,900

Wells Fargo                                   Banking & financial services                  Milwaukee     1,900

Cargill Meat Solutions                        Meat processor                                Milwaukee     1,800

United Hospital System                        Health care system                            Kenosha       1,800

Chase Bank                                    Banking & financial services                  Milwaukee     1,700

Marcus Corp.                                  Movie theaters & hotel operator               Milwaukee     1,700

Miller Brewing Co.                            Beer                                          Milwaukee     1,700

Rexnord                                       Power transmission equipment                  Milwaukee     1,600

Source: 2008 MMAC Business Resource Guide, & The Business Journal, December 14, 2008
                                                                                               Shorewood, WI
                                                                                                     Page 26


  Typical Income by Occupation
  The following table shows the typical income by occupation within the Milwaukee MSA. According to the data
  compiled by the Wisconsin Department of Workforce Development and its Office of Economic Advisors, the
  average annual wage for all occupations in the Milwaukee MSA is $42,980.

                                  Milwaukee MSA Income by Occupation
                                                                Total Employ-     Hourly Average    Annual Average
                      Occupation Title
                                                                    ment              Wage              Wage
All Occupations                                                        845,860            $20.67             $42,980
Management occupations                                                  34,890            $48.74            $101,380
Business and financial operations occupations                           40,680            $28.80             $59,910
Computer and mathematical occupations                                   21,460            $32.50             $67,600
Architecture and engineering occupations                                17,910            $31.78             $66,110
Life, physical, and social science occupations                           7,340            $30.76             $63,980
Community and social services occupations                                8,790            $20.33             $42,290
Legal occupations                                                        5,810            $39.70             $82,580
Education, training, and library occupations                            41,170            $24.32             $50,590
Arts, design, entertainment, sports, and media occupations              12,740            $21.40             $44,520
Healthcare practitioners and technical occupations                      48,420            $35.14             $73,090
Healthcare support occupations                                          26,140            $12.80             $26,610
Protective service occupations                                          16,920            $20.62             $42,880
Food preparation and serving related occupations                        65,910             $9.50             $19,760
Building and grounds cleaning and maintenance occupations               26,830            $12.25             $25,480
Personal care and service occupations                                   27,200            $12.18             $25,340
Sales and related occupations                                           87,520            $19.29             $40,130
Office and administrative support occupations                          140,740            $15.80             $32,860
Construction and extraction occupations                                 28,320            $24.99             $51,980
Installation, maintenance, and repair occupations                       29,020            $21.12             $43,920
Production occupations                                                 100,400            $16.47             $34,260
Transportation and material moving occupations                          57,190            $15.24             $31,700
  Source: Wisconsin Department of Workforce Development (DWD) May 2008 Occupational Employment Statistics
                                                                                                 Shorewood, WI
                                                                                                       Page 27


Commuting Patterns
The following table gives an indication of where Milwaukee County residents travel to work as well as non-resident
workers that travel to destinations in Milwaukee County. According to the data compiled by the Wisconsin Department
of Workforce Development, its Office of Economic Advisors and the 2000 Census, 80.7 percent of Milwaukee County
residents work within Milwaukee County, while 25.6 percent of Milwaukee County’s workforce commutes from
surrounding areas outside of Milwaukee County.




Economic Conditions
Considering the current condition of the national, state, and local economies, it is very important to be cognizant
of the economic factors that will affect real estate development. Certain economic indicators, such as
employment, unemployment, and income, have been analyzed as they are integral to the health of the
economy and individual consumers and households’ financial well-being. The following is a brief summary of
national, and more specifically, the Wisconsin economy.

Economic Outlook1
The national economy was in recession for approximately 18 months starting in December 2007, as dated by
the National Bureau of Economic Research (NBER), through mid 2009. The national employment loss since the
beginning of the recession has crossed the 7 million mark in September and more jobs will be lost during an
expected subpar recovery. The Wisconsin economy also entered a recession at the end of 2007, having lost
138,900 jobs between December 2007 and August 2009. Wisconsin employment, though not yet in recovery, in
the last four months stopped declining at the rates seen at the beginning of the year.

The current Wisconsin outlook calls for a peak-to-trough job loss of 143,000 or 5.0 percent of total employment,
compared to the 155,300 (5.4 percent) job loss expected in June. Most of the economic decline in the current
cycle will occur during the current year and employment will hit bottom in the fourth quarter of 2009. The
housing sector is showing signs of improvement, but the recovery will be slow. Moreover, there are still two
negative risk factors to bear in mind: the vulnerability of the commercial sector and the impact in the residential
sector when the federal incentive for first-time homebuyers expires later this month.


1
    Source: Wisconsin Department of Revenue, Division of Research and Analysis, Wisconsin Economic
    Outlook, November 2009.
                                                                                                Shorewood, WI
                                                                                                      Page 28


The U.S. labor market has already lost 6.9 million jobs since December 2007 and is now expected to decline
3.7 percent and 0.5 percent in 2009 and 2010, respectively. Wisconsin employment declined 0.5 percent in
2008 and will decline 3.8 percent this year and be almost flat in 2010, increasing by approximately 0.1 percent.
Wisconsin employment growth will recover in late 2010 and is anticipated grow by 1.9 percent in 2011 and 2.2
percent in 2012, led by strong growth in the services industries and a return to positive growth for construction
and manufacturing towards 2011.

Wisconsin’s seasonally adjusted unemployment rate declined in August to 8.8 percent from 9.0 percent in July.
It has been stable for the last four months, but it is still more than double from a year ago. However, it was
almost a percentage point below the national unemployment rate of 9.7 percent in August. The forecast expects
the state unemployment rate to peak at 9.3 percent in the first quarter of 2010, while the national unemployment
rate will peak at 10.0 percent in the same quarter. Wisconsin unemployment rates will peak above 9.0 percent,
only second after the 1981 through 1982 recession. However, during that recession, the unemployment rate
declined to below 8 percent about one year after the peak. In the current recession, the unemployment rate will
be above 8 percent for 21 months after the peak for Wisconsin and 36 months for the U.S. and stay above 6.0
percent more than six years after the peak.

The following chart presents actual unemployment rates in Wisconsin, as compared to the United States,
through August 2009.

                            Wisconsin Unemployment Rate vs. National Average




                                       Source: Bureau of Labor Statistics

Wisconsin personal income rose 4.3 percent in 2007 and 2.6 percent in 2008. The outlook expects a decline in
personal income of 3.3 percent in 2009, as the economy is expected to trough during the second half of 2009
and begin a slow recovery with personal income growing 2.1 percent in 2010. Wisconsin personal income is
projected to grow 3.8 percent in 2011 and 5.0 percent in 2012. Real personal income declined 0.7 percent in
2008, after seeing small growth in 2007 (1.6 percent).
                                                                                                Shorewood, WI
                                                                                                      Page 29


Per capita income grew 3.8 percent in 2007 and 2.1 percent in 2008 to $37,676; in real terms it grew 1.1
percent in 2007 and declined 1.2 percent in 2008. It will decline 3.8 percent in nominal and 3.9 percent in real
terms during the worst year of the recession. In the first year of the recovery, 2010, per capita income will post
very weak growth of 1.5 percent and 0.2 percent when adjusted for price increases. It will return to healthier
growth rates toward 2012 with 4.4 percent and 2.7 percent growth rates in nominal and real terms, respectively.

Overall, it is anticipated that Wisconsin will continue to experience difficult times throughout the first half of
2010, with some optimistic forecasts by later 2010. Wisconsin employment is forecast to grow by 2.0 percent in
2010. Correspondingly, unemployment is anticipated to increase, peaking at approximately 9.3 percent in first
quarter of 2010. Wisconsin personal income grew 4.3 percent in 2007 and 2.6 percent in 2008; however,
between the end of 2009 and 2010, personal income is anticipated to grow at a lower rate. It is anticipated that
Wisconsin personal income will grow 3.8 percent in 2011, and 5.0 percent in 2012. Real personal income
declined 0.7 percent in 2008, after seeing small growth in 2007 (1.6 percent).

Such economic factors as employment, unemployment, and real personal income are useful to the assessment
of the current state of the economy as well as its future prospects. Consequently, further erosion of the national
and local economy, as anticipated by the Wisconsin Department of Revenue, could have a material, negative
impact on the initial lease-up and sustained occupancy of the subject property. However, slow economic
recovery is anticipated for late 2010, which may act favorably towards the success of the subject property.
                                                                                                Shorewood, WI
                                                                                                      Page 30

Rental Housing Market Analysis

The information in this section includes the identification and inventory of representative existing developments
within or near the Residential PMA, a demand analysis, and estimation if market rents for multifamily rental
housing.

Residential Construction History
Based on the information from the Village of Shorewood, there have been a total of 113 residential units
constructed in the Village since 2000. The majority of these are condominiums (87 units), 2 are single family,
and there are currently 24 luxury apartments under construction. In 2008, 26 units were removed.

                                            Village of Shorewood
                                      Residential Construction 2000-2010

        Property                      Name               Land Use                Total Units       Year
        Lake Drive                                       Single family                  2           2000
        Edgewood Ave/Stratford Ct.    Edgewood           Condominiums                  36           2000
        3710 N. Oakland Ave.          Legacy             Condominiums                  30           2004
        1717 E. Kensington Blvd.      Metropolitan       Condominiums                  21           2004
        4500-18 N. Oakland Ave.       Cornerstone        Luxury apartments             24           2010
           Source: Village of Shorewood

                                            Village of Shorewood
                                     Residential Units Removed 2000-2010


                    Property                  Land Use                 Total Units          Year
              3909-11 Sherburn Ave
              Source: Village of Shorewood Rental Apartments               26               2008

In addition, the Village of Shorewood’s planning department was contacted to determine the pipeline of real
estate projects either approved for construction or proposed within the Village of Shorewood. Upcoming
projects include:

        Cornerstone Luxury Apartments: Cornerstone is an approved luxury mixed-use building that is to be
         constructed on the northern side of the Village at 4500 N. Oakland Avenue. WIRED Properties broke
         ground in December 2008 on this mixed-use building with 11,000 square feet of ground floor retail and
         25 luxury apartments units above. The development is expected to be completed in fall 2010. (These
         units are included in the Residential Construction table above).
         The 25 apartments will be 1, 2 and 3 bedroom units ranging from 790-2,000 square feet. Rents are
         expected to range from $1,200 - $2,500 ($1.25-$1.50/SF). The developer has not begun pre-leasing.
         The retail space is 100 percent leased and rates range from $16-$20 NNN.
        Ravenna: Ravenna is approved mixed-use building that will be include 22 condominium homes and
         7,500 square feet of new construction retail space. The building will be located across the street from
         Cornerstone (described above) on North Oakland Avenue at the north end of the Village. The
         condominium homes include standard luxury finishes, decks, underground heated parking and owner
         storage. The retail space includes high ceilings, fully contemplated HVAC needs and expansive
         storefronts. The building will feature a bar restaurant with outdoor seating and another ~3,500 square
         feet of retail space. (These units are included in the Owner-Occupied Condominium analysis later in
         this report)
                                                                                                Shorewood, WI
                                                                                                      Page 31


Village of Whitefish Bay and City of Milwaukee officials were also contacted to determine the pipeline of real
estate projects either approved for construction or proposed in or near the PMA. There are no planned projects
in Whitefish Bay and upcoming projects in Milwaukee include:

       Metro Place: Wanguard Partners Inc. is working on plans for a 68-unit rental project in at 1888 North
        Water Street in Milwaukee. Construction will begin in Summer 2010.
       Latitude: Dermond Property Investments has begun construction on Latitude, a 90-unit rental project
        located at 1857 E. Kenilworth in Milwaukee. Construction is expected to be completed in July 2010.
        The development will offer studio and one-bedroom apartments. Although pre-leasing has not yet
        begun, anticipated rents are $925-975 for studio units (561 SF) and $1,150-1,450 for one bedroom
        units (692-849 SF).
       St. John’s on the Lake: St. John’s on the Lake is currently constructing 88 senior independent units.
        The development is located adjacent to the existing senior community at 1840 N. Prospect. 76% of the
        88 units have been pre-leased. (These units are included in senior housing comparable analysis in the
        next section of this report)

Comparable Developments
This analysis includes the identification and inventory of representative existing housing developments within or
near the PMA. Additionally, any permitted or proposed developments known to municipal officials were
identified and inventoried. This section will analyze both the current and the proposed supply of competing
developments within the market area.

The initial step in this section is to identify representative existing developments that, in the analyst’s best
judgment, would compete with the proposed development. The comparable developments were identified
through a variety of sources including a review of local periodicals and interviews with the following: local real
estate professionals, local government officials, and property managers of existing developments. The selected
comparable developments are summarized on the following pages. An in-depth interview was conducted with
the property manager from each of these developments.

Senior Housing
Before reviewing comparable senior housing developments, it is important to first understand the distinctions
between different senior housing developments, as defined below.

       Independent Living: Independent living senior apartments require at least one member of the
        household to be age 55 or older. This type of development is for seniors not requiring assistance with
        daily activities.
       Assisted Living: Two types of housing that fall under the Assisted Living category include Residential
        Care Apartment Complex (RCAC), and Community Based Residential Facility (CBRF). The main
        differences between these two types of assisted living facilities are the amount of services provided to
        the residents and the size of the apartment units.
       Residential Care Apartment Complex (RCAC): RCACs combine apartment housing with supportive,
        personal, and nursing services. Residents typically have their own apartments with full bath and kitchen
        facilities, and retain control over their personal space, care decisions, and daily routines. Services are
        individually tailored to each resident’s capacities and preferences, and are adjusted as necessary to
        avoid requiring people to move when their condition deteriorates with age. Facilities may provide up to
        28 hours of supportive, personal and nursing care per resident per week. RCACs are not licensed, but
        they must either be registered or certified by the State. Certified facilities are monitored by the State
        and are eligible to receive Medical Assistance waiver funding, while registered facilities are not
        monitored by the State.
                                                                                                     Shorewood, WI
                                                                                                           Page 32


       Community Based Residential Facility (CBRF): CBRFs are staffed group living arrangements that
        provide room, board, supervision, and other supportive services to five or more unrelated adult
        residents. Typically, residents have either a private or shared sleeping room and share living, dining
        and bathroom space with other residents of the facility. CBRFs are intended for people who cannot live
        independently but are not acutely ill or in need of extensive amounts of nursing care. Facilities vary in
        sizes from five residents to over 100. Some serve a frail elderly population while others serve people
        with disabilities or a mixed group of residents. All CBRFs must be licensed by the State.

Five comparable independent and assisted living developments within the Residential PMA were identified and
inventoried for a total of 384 units within or near the PMA. The analysis focused on occupancy, rental rate
range (based on the number of bedrooms), development age, unit characteristics and building amenities of
potentially competing developments. Summary tables and a comparable property locator map are provided on
the following pages. The senior rental market within the PMA is considered below-average by generally
accepted standards, with 57 vacant units noted in the analysis for an overall 14.8% percent vacancy rate.

Because many of the senior developments within the PMA are older facilities, Baker Tilly surveyed senior
developments in “peer communities”. Twelve comparable independent and assisted living developments within
peer communities were identified and inventoried for a total of 1,434 units. The analysis focused on occupancy,
rental rate range (based on the number of bedrooms), development age, unit characteristics and building
amenities of potentially competing developments. Summary tables and a comparable property locator map are
provided on the following pages. Overall, senior rental market within the PMA is considered average to strong
by generally accepted standards, with 66 vacant units noted in the analysis for an overall 4.6% percent vacancy
rate. However, CBRF units are 100% occupied, RCAC units have a 7.7% vacancy and independent living has a
9.1% vacancy rates. While these vacancy rates are slightly above typical market averages, property managers
indicated that new residents are currently not moving into the facilities currently due to their inability to sell their
existing homes. As the housing market continues to improve, increases in occupancies are expected.

Multifamily Rental
Ten comparable multifamily rental developments were identified and inventoried for a total of 770 units within or
near the Residential PMA. The comparable developments selected appear to provide a good cross section of
the existing rental market. The analysis focused on occupancy, rental rate range (based on the number of
bedrooms), development age, unit characteristics and building amenities of potentially competing
developments. Summary tables and a comparable property locator map are provided on the following pages.

Single-family and family duplex dwellings (including condominiums) were deemed not to materially compete
with developments within or near the PMA. Therefore, the effects of single-family and family duplex dwellings
were not analyzed and not reconciled with the effective demand for the subject property.

The multifamily rental market within the PMA is considered strong by generally accepted standards, with 35
vacant units noted in the analysis for an overall 4.6 percent vacancy rate.
                                                                              Shorewood, WI
                                                                                    Page 33


                             Senior Living Comparable Development
                                      Occupancy Summary
                                         Number of     Number of
          Development Type                                          Vacant Units   Vacancy Rate
                                        Developments     Units
PMA Independent                               2           235           24            10.2%
PMA Assisted - RCAC                           2           129           29            22.5%
PMA Assisted - CBRF                           1            20            4            20.0%
PMA Senior Living Subtotal                    5           384           57            14.8%
Peer Community Independent                    5           574           52             9.1%
Peer Community Assisted - RCAC                4           181           14             7.7%
Peer Community Assisted - CBRF                3           105            0              0%
Peer Community Senior Living Subtotal        12          1,434          66             4.6%
Senior Living Total                          20          1,818          123            6.7%
                           Multifamily Rental Comparable Development
                                       Occupancy Summary
PMA Multifamily Rental                       10           770           35            4.6%
                                   Shorewood, WI
                                         Page 34


PMA Senior Living Comparable Map
                                                                                                          Shorewood, WI
                                                                                                                Page 35




Comparable:            Independent Living at the       Year Built:            1973, additions   Map Number:                1
                       Milwaukee Catholic Home                                in 76 and 86
Address:               2330 N. Prospect, Milwaukee, WI
Telephone:             414-224-9700
Contact Person:        Linda
Date of Survey:        3-15-10


           # of                    Unit                  Basic Service                 Square                    # of Vacant
           Units                   Type                   Plan Costs                   Footage                      Units

            20                 Studio / 1 Ba              $1,385-2,075                 Unknown                         1
            50                  1 Bd / 1 Ba               $2,215-3,560                                                 5
            50                  2 Bd / 2 Ba               $2,965-4,685                                                 1
           120                                                                                                         7

                General                                 Amenities:                                Included in Base Rent:
     CBRF                                 X    Kitchen                                  X    All Utilities
       Frail Elderly                           Kitchenette                              X    Meals (3 per day plus snacks)
       Memory Care                             Call Systems (pull cords)                     Daily Housekeeping
     RCAC                                 X    Salon                                         Weekly Laundry Service
X    Private Room                              Furnished Rooms                               Weekly Linen Service
X    Private Bathroom (1/2 bathrooms)     X    Dining Room                                   Medication Assistance
X    Waiting List                         X    Garden Courtyard                              Bathing Assistance
X    Companion Fee ($520)                 X    Living Room                                   24-hour trained staff
X    Additional Care Levels                    Chapel


Move-in Fee:           $35,000-190,000 – 95% refundable                      Concessions: None

Remarks:               Move-in fee and plan costs vary depending on Plan Choice (see rate sheet in Appendix B). Parking is available
                       for $40/month indoor and $20/month outdoor. They maintain an 82-person waiting list but those individuals are
                       choosing to wait to move in until the economy picks up. They have seen a slow-down due to prospective
                       residents being unable to sell their existing homes in the current market.
                                                                                                                  Shorewood, WI
                                                                                                                        Page 36




Comparable:                St. John’s on the Lake          Year Built:                1979              Map Number:               2
Address:                   1840 N. Prospect, Milwaukee, WI
Telephone:                 414-272-2022
Contact Person:            Beth
Date of Survey:            3-16-10


           # of                         Unit                        Basic Service                   Square               # of Vacant
           Units                        Type                         Plan Costs                     Footage                 Units

  100 RCAC licenses for         1 and 2 bedroom (some     $1,870 - $5,995 (does not include        600 – 2,200         17 of 115 vacant
  115 independent living               with den)                any RCAC services)                                  independent living units
          units
                                                             $25/hour for RCAC services                             25 of 100 unused RCAC
                                                                                                                            licenses

                  General                                     Amenities:                                  Included in Base Rent:
       CBRF                                     X    Kitchen                                   X     All Utilities
         Frail Elderly                               Kitchenette                                     Meals (3 per day plus snacks)
         Memory Care                                 Call Systems (pull cords)                       Daily Housekeeping
 X     RCAC                                     X    Salon                                           Weekly Laundry Service
 X     Private Room                                  Furnished Rooms                                 Weekly Linen Service
 X     Private Bathroom                         X    Dining Room                                     Medication Assistance
       Waiting List                             X    Garden Courtyard                                Bathing Assistance
 X     Companion Fee                            X    Living Room                                     24-hour trained staff
 X     Additional Care Levels                   X    Chapel


Move-in Fee:                $141,000 - $798,000           Concessions:              None

 Remarks:
Basic monthly plan and the entry fee are for independent living units (115 total units) and priced on a sliding scale depending on the
size of the unit and location within the building. The fees cover the Life Care Contract which ensures care if the residents moves into
the CBRF or Nursing Home facilities. The entry fee is 30% refundable if the resident enters under the Life Care Contract. Residents
may enter under a Standard Contract which has a 30% refundable fee and no Life Care services. None of these fees cover RCAC
services which can be added (for 100 units) for $25/hour of service. St. John’s is currently constructing 88 more units which will
have the same rates as listed above. The 88 units are 76% pre-leased.
                                                                                                  Shorewood, WI
                                                                                                        Page 37


                                Property Manager did not return repeated calls.




Comparable:             Watertower Assisted Living      Year Built:                     Map Number:             3
Address:                2425 N. Lake, Milwaukee, WI
Telephone:              414-332-8610
Contact Person:         Mary
Date of Survey:


           # of                    Unit                   Basic Service           Square                 # of Vacant
           Units                   Type                    Plan Costs             Footage                   Units


                General                                 Amenities:                         Included in Base Rent:
     CBRF                                 X    Kitchen                                All Utilities
       Frail Elderly                           Kitchenette                            Meals (3 per day plus snacks)
       Memory Care                             Call Systems (pull cords)              Daily Housekeeping
X    RCAC                                 X    Salon                                  Weekly Laundry Service
X    Private Room                              Furnished Rooms                        Weekly Linen Service
X    Private Bathroom                     X    Dining Room                            Medication Assistance
     Waiting List                         X    Garden Courtyard                       Bathing Assistance
     Companion Fee                        X    Living Room                            24-hour trained staff
     Additional Care Levels                    Chapel


Move-in Fee:                                          Concessions:

Remarks:
                                                                                                               Shorewood, WI
                                                                                                                     Page 38




Comparable:             Assisted Living at the          Year Built:               1973, additions   Map Number:                 1
                        Milwaukee Catholic Home                                   in 76 and 86
Address:                2330 N. Prospect, Milwaukee, WI
Telephone:              414-224-9700
Contact Person:         Linda
Date of Survey:         3-15-10


           # of                     Unit                    Basic Service                  Square                     # of Vacant
           Units                    Type                     Plan Costs                    Footage                       Units

            29                  Private Room               $3,870 - $4,155*                290 - 400                        4

                General                                   Amenities:                                  Included in Base Rent:
     CBRF                                        Kitchen                                    X    All Utilities
       Frail Elderly                        X    Kitchenette                                X    Meals (3 per day plus snacks)
       Memory Care                          X    Call Systems (pull cords)                       Daily Housekeeping
X    RCAC                                   X    Salon                                           Weekly Laundry Service
X    Private Room                                Furnished Rooms                                 Weekly Linen Service
X    Private Bathroom                       X    Dining Room                                     Medication Assistance
     Waiting List                           X    Garden Courtyard                                Bathing Assistance
X    Companion Fee                          X    Living Room                                X    24-hour trained staff
X    Additional Care Levels                      Chapel
     (see below)

Move-in Fee:            $5,000 ($1,000 for additional person) –refundable        Concessions: None

Remarks:                Additional $1,465 for each additional person. Monthly fee varies depending on size of unit. Basic plan includes
                        weekly housekeeping, help with minor medical assignments. Extra $9.00 per day for 30 minutes of hands-on
                        ADL. Extra $60.00 per month for monthly medication set-up, $175.00 for daily medication assistance. No
                        laundry service is available, but machine washers are available within the facility. Bathing assistance available
                        for $14/bath.
                                                                                                     Shorewood, WI
                                                                                                           Page 39



                                       Property Manager did not return repeated calls.




Comparable:             Bradford Terrace                Year Built:                        Map Number:             3
Address:                2429 E. Bradford, Milwaukee, WI
Telephone:              414-963-8471
Contact Person:         Joan
Date of Survey:


           # of                    Unit                   Basic Service            Square                   # of Vacant
           Units                   Type                    Plan Costs              Footage                     Units


                General                                  Amenities:                           Included in Base Rent:
     CBRF                                  X    Kitchen                                  All Utilities
       Frail Elderly                            Kitchenette                              Meals (3 per day plus snacks)
       Memory Care                              Call Systems (pull cords)                Daily Housekeeping
X    RCAC                                  X    Salon                                    Weekly Laundry Service
X    Private Room                               Furnished Rooms                          Weekly Linen Service
X    Private Bathroom                      X    Dining Room                              Medication Assistance
     Waiting List                               Garden Courtyard                         Bathing Assistance
     Companion Fee                         X    Living Room                              24-hour trained staff
     Additional Care Levels                     Chapel
     (see below)

Move-in Fee:                                        Concessions:

Remarks:
                                                                                                     Shorewood, WI
                                                                                                           Page 40


                                   Property Manager did not return repeated calls.




Comparable:             Eastcastle Place                Year Built:                        Map Number:             3
Address:                2429 E. Bradford, Milwaukee, WI
Telephone:              414-963-6151
Contact Person:         Mary
Date of Survey:


           # of                    Unit                   Basic Service              Square                 # of Vacant
           Units                   Type                    Plan Costs                Footage                   Units


                General                                  Amenities:                           Included in Base Rent:
X    CBRF                                       Kitchen                                  All Utilities
       Frail Elderly                            Kitchenette                              Meals (3 per day plus snacks)
X      Memory Care                              Call Systems (pull cords)                Daily Housekeeping
     RCAC                                       Salon                                    Weekly Laundry Service
     Private Room                               Furnished Rooms                          Weekly Linen Service
     Private Bathroom                           Dining Room                              Medication Assistance
     Waiting List                               Garden Courtyard                         Bathing Assistance
     Companion Fee                              Living Room                              24-hour trained staff
     Additional Care Levels                     Chapel
     (see below)

Move-in Fee:                                        Concessions:

Remarks:
                                                                                                                Shorewood, WI
                                                                                                                      Page 41




Comparable:                Canterbury Court                Year Built:              1979              Map Number:                2
Address:                   1840 N. Prospect, Milwaukee, WI
Telephone:                 414-831-6976
Contact Person:            John
Date of Survey:            3-16-10


           # of                        Unit                   Basic Service                  Square                    # of Vacant
           Units                       Type                    Plan Costs                    Footage                      Units

             20              Private room/Private bath        $5,200 - $6,000               Unavailable                      4

                  General                                    Amenities:                                 Included in Base Rent:
 X     CBRF                                         Kitchen                                   X    All Utilities
 X       Frail Elderly                              Kitchenette                               X    Meals (3 per day plus snacks)
         Memory Care                           X    Call Systems (pull cords)                 X    Daily Housekeeping
       RCAC                                    X    Salon                                     X    Weekly Laundry Service
 X     Private Room                            X    Furnished Rooms                           X    Weekly Linen Service
 X     Private Bathroom                        X    Dining Room                               X    Medication Assistance
       Waiting List                            X    Garden Courtyard                          X    Bathing Assistance
       Companion Fee                                Living Room                               X    24-hour trained staff
       Additional Care Levels                  X    Chapel


Move-in Fee:               None                          Concessions:              None

Remarks:

Most of the residents are under the Life Care Contract associated with the independent living units and therefore continue to pay
their rates as previously determined. New residents are charged the rates listed above.
                                               Shorewood, WI
                                                     Page 42


Senior Living Peer Community Development Map
                                                                                                        Shorewood, WI
                                                                                                              Page 43




Comparable:             Concord at the Harbour         Year Built:            2008              Map Number:           1
Address:                5700 Mockingbird Lane, Greendale, WI
Telephone:              414-433-9302
Contact Person:         Krista
Date of Survey:         3-2-10



           # of       Unit               Base                Square                  # of Vacant
           Units      Type               Rent                Footage                    Units

           34      1 Br / 1 Ba           $1,975             Unknown                        18
           108     2 Br /2 Ba            $2,175
           142

                 General                                   Amenities:                            Included in Base Rent:
      CBRF                                        Kitchen                              X    All Utilities
        Frail Elderly                        X    Kitchenette                          X    Meals (22 per month)
        Memory Care                          X    Call Systems (pull cords)            X    Weekly Housekeeping
      RCAC                                   X    Salon                                     Weekly Laundry Service
 X    Private Room                                Furnished Rooms                           Weekly Linen Service
 X    Private Bathroom (1/2 bathrooms)       X    Dining Room                               Medication Assistance
      Waiting List                           X    Garden Courtyard                          Bathing Assistance
 X    Companion Fee ($500)                   X    Living Room                          X    24-hour trained staff
                                                  Chapel

Move-in Fee:             None                        Concessions:             None

Remarks:                 Market Rate Independent Senior Development. Includes 22 meals per month, weekly housekeeping, 24-
                         hour emergency response, daily transportation for medical appointments and errands, daily check-in.
                         Manager did not provide information about parking.
                                                                                                                Shorewood, WI
                                                                                                                      Page 44




Comparable:             Silver Creek Village              Year Built:         2000                     Map #:            2
Address:                2455 West Silver Spring Drive, Glendale, WI
Telephone:              414-578-3612
Contact Person:         Mary
Date of Survey:         3/11/2010


            # of        Unit               % of             Net               Square              # of Vacant
            Units       Type               CMI              Rent              Footage                Units

              1       1 Br / 1 Ba          30%              $354                 729                  1
              1       1 Br / 1 Ba          40%              $487                 729                  0
              1       1 Br / 1 Ba          50%              $620                 729                  0
             13       1 Br / 1 Ba          60%              $745                 729                  1
             18       1 Br / 1 Ba          MKT            $875-935               729                  2
             13       2 Br / 1 Ba          60%              $890                 976                  0
             18       2 Br / 1 Ba          MKT          $1,000-1,055             976                  0
             65                                                                                       4*

        Amenities:                    Appliances:                            Unit Features:                         Included in Rent:
 X   Laundry Room               X   Refrigerator                   X    W/W Carpet                              X   Water/Sewer
     Tennis Court               X   Range/Oven                     X    Patio/Balcony                           X   Trash Removal
     Swimming Pool              X   Dishwasher                          Fireplace                               X   Hot Water
 X   Community Room             X   Disposal                       X    Air Conditioning (wall)                      Electricity
 X   Fitness Center             X   Washer/Dryer (MKT)             X    Drapes/Blinds                           X   Heat
     Jacuzzi                    X   Microwave (MKT)                X    Controlled Entry
 X   Elevator                       W/D Hook-up                    X    Garage/U.G. Parking
 X   Extra Storage                                                      (included)
     (included)


 Security Deposit:       $250                       Concessions:                  None

 Remarks:                LIHTC Section 42 senior development, twenty-two household waiting list
                         *One application pending for current vacancy
                                                                                                                Shorewood, WI
                                                                                                                      Page 45




Comparable:               Parkside Commons                   Year Built:         2000                      Map #:        3
Address:                  1400 West Custer, Glendale, WI
Telephone:                414-352-1237
Contact Person:           Marilyn
Date of Survey:           3/12/2010


         # of           Unit                % of             Net               Square            # of Vacant
         Units          Type                CMI              Rent              Footage              Units

          50          1 Br / 1 Ba           60%              $599*                850                17*
          50          2 Br / 1 Ba           60%              $699*                960
          100

       Amenities:                         Appliances:                           Unit Features:                      Included in Rent:
 X   Laundry Room                   X   Refrigerator                 X     W/W Carpet                           X   Water/Sewer
     Tennis Court                   X   Range/Oven                   X     Patio/Balcony                        X   Trash Removal
     Swimming Pool                  X   Dishwasher                         Fireplace                            X   Hot Water
 X   Community Room                 X   Disposal                     X     Air Conditioning (wall)                   Electricity
 X   Fitness Center                     Washer/Dryer (MKT)           X     Drapes/Blinds                        X   Heat
     Jacuzzi                            Microwave (MKT)              X     Controlled Entry
 X   Elevator                           W/D Hook-up                  X     Garage/U.G. Parking
 X   Extra Storage                                                         ($20/month)
     ($5/month)



 Security Deposit:         $250                       Concessions:                   *See above rents, started offering above rent in
                                                                                     February 26, 2010 (responsible for all applications
                                                                                     pending)
                                                                                     *Normal rents-1 BR-$719, 2 BR-$862

 Remarks:                  LIHTC Section 42 senior development,
                           *Six applications pending for current vacancies
                                                                                                                   Shorewood, WI
                                                                                                                         Page 46




Comparable:                 Deer Creek Village Senior        Year Built:             2000                     Map #:          4
                                       th
Address:                    3601 S. 147 Street, New Berlin, WI
Telephone:                  262-641-9410
Contact Person:             Mary
Date of Survey:             3/15/2010


     # of            Unit                % of             Net             Utility           Gross              Square          # of Vacant
     Units           Type                CMI              Rent            Allow.            Rent               Footage            Units

       2          1 BR/1 BA              40%            $487               $43               $530                715                0
      57          1 BR/1 BA              60%            $760               $43               $803                715                2
      17          1 BR/1 BA              MKT           $1,040              $43              $1,083               732                4
      42          2 BR/1 BA              60%            $915               $51               $966                962                1
      14          2 BR/1 BA              MKT           $1,200              $51              $1,251               980                1
      13          2 BR/2 BA              MKT           $1,370              $51              $1,421              1,010               0
     145                                                                                                                            8*

        Amenities:                          Appliances:                             Unit Features:                       Included in Rent:
 x    Laundry Room                   x    Refrigerator                    x      W/W Carpet                            x   Water/Sewer
      Playground                     x    Range/Oven                      x      Patio/Balcony                         x   Trash Removal
      Swimming Pool                  x    Dishwasher                             Fireplace                             x   Hot Water
 x    Community Room                 x    Disposal                        x      Air Conditioning (central)                Electricity
 x    Fitness Center                      Washer/Dryer                    x      Drapes/Blinds                         x   Heat (gas)
      Business Center                x    W/D Hook-up                     x      Controlled Entry
 x    Elevator                            Microwave                       x      Garage/U.G. Parking
      Extra Storage                                                              (Included)
      (Included)

 Security Deposit:            $250                         Concessions:                  ½ month free for one bedroom units

 Remarks:                     LIHTC Section 42 senior development.
                              *Six recent vacancies due to typical senior related issues in the last month. Normal vacancies around five.
                                                                                                          Shorewood, WI
                                                                                                                Page 47




  Comparable:              Heritage West Allis           Year Built:            2009              Map Number:            5
  Address:                 7901 W. National Avenue, West Allis, WI
  Telephone:               414-302-9700
  Contact Person:          Joseph
  Date of Survey:


        # of        Unit               Base                Square                       # of Vacant
        Units       Type               Rent                Footage                         Units

        122     *                        *                     *                            5**


      Amenities:                       Appliances:                           Unit Features:                    Included in Rent:
    Laundry Room                     Refrigerator                       W/W Carpet                             Water/Sewer
    Tennis Court                     Range/Oven                         Patio/Balcony                          Trash Removal
    Swimming Pool                    Dishwasher                         Fireplace                              Hot Water
    Community Room                   Disposal                           Air Conditioning (wall)                 Electricity
    Fitness Center                   Washer/Dryer                       Drapes/Blinds                          Heat
    Jacuzzi                          Microwave                          Controlled Entry
    Elevator                         W/D Hook-up                        Garage/U.G. Parking
    Extra Storage                                                       ($20/month)
    ($5/month)


Security Deposit:                                    Concessions:

Remarks:                   LIHTC Section 42 senior development
                           *Property manager would not share unit mix, rents, or square footage.
                           **started leasing May 2009. Vacancy information from developer. Waiting for details from property
                           manager.
                                                                                                             Shorewood, WI
                                                                                                                   Page 48




Comparable:            St. Clare Terrace              Year Built:               2001                Map Number:               6
                                      st
Address:               3553 South 41 Street, Milwaukee, WI
Telephone:             414-649-0730
Contact Person:        Margo
Date of Survey:        3-2-10


       # of                     Unit                      Basic Service                  Square                     # of Vacant
       Units                    Type                       Plan Costs                    Footage                       Units

        58                    1 Br / 1 Ba                  $1,881-2,557                   354-820                         4

                General                                  Amenities:                                  Included in Base Rent:
     CBRF                                       Kitchen                                   X     All Utilities
       Frail Elderly                        X   Kitchenette                               X     Meals (3 per day plus snacks)
       Memory Care                          X   Call Systems (pull cords)                 X     Weekly Housekeeping
X    RCAC                                       Salon                                     X     Weekly Laundry Service
X    Private Room                               Furnished Rooms                           X     Weekly Linen Service
X    Private Bathroom                       X   Dining Room                                     Medication Assistance
     Waiting List                           X   Garden Courtyard                          X     Bathing Assistance
X    Companion Fee ($500)                   X   Living Room                               X     24-hour trained staff
X    Additional Care Levels                 X   Chapel
     (see below)

Move-in Fee:           $900                                                    Concessions: None

Remarks:               Market rate certified RCAC senior living
                       Additional levels of care: Level II (3-12 hours care)-$835 additional, Level III (13-28 hours care)-$1,276
                       additional
                                                                                                        Shorewood, WI
                                                                                                              Page 49




Comparable:            Concord at the Harbour         Year Built:             2008             Map Number:               1
Address:               5700 Mockingbird Lane, Greendale, WI
Telephone:             414-433-9302
Contact Person:        Krista
Date of Survey:        3-2-10



        # of                     Unit                    Basic Service                 Square                  # of Vacant
        Units                    Type                     Plan Costs                   Footage                    Units

           24                   RCAC                     $3,550-3,900                 Unavailable                    0

                 General                                Amenities:                               Included in Base Rent:
      CBRF                                     Kitchen                                 X    All Utilities
        Frail Elderly                    X     Kitchenette                             X    Meals (3 per day plus snacks)
        Memory Care                      X     Call Systems (pull cords)               X    Weekly Housekeeping
 X    RCAC                               X     Salon                                        Weekly Laundry Service
 X    Private Room                             Furnished Rooms                         X    Weekly Linen Service
 X    Private Bathroom                   X     Dining Room                             X    Medication Assistance
      Waiting List                       X     Garden Courtyard                        X    Bathing Assistance
 X    Companion Fee ($1,500)             X     Living Room                             X    24-hour trained staff
                                               Chapel

Move-in Fee:          None                                                  Concessions: None

Remarks:              Includes transportation for medical appointments and errands.
                                                                                                         Shorewood, WI
                                                                                                               Page 50




Comparable:           Hickory Park                       Year Built:         2009               Map Number:               7
Address:              3933 S. Prairie Hill Lane, Greenfield, WI
Telephone:            414-327-4256
Contact Person:       Meredith
Date of Survey:       4-2-10


       # of                      Unit                    Basic Service                Square                   # of Vacant
       Units                     Type                     Plan Costs                  Footage                     Units

         6                  Studio / 1 Ba                    $3,165                   Unknown                         0
         9                   1 Bd / 1 Ba                     $3,700                                                   1
        41                   2 Bd / 2 Ba                     $4,125                                                   9
        56                                                                                                           10

                General                                  Amenities:                              Included in Base Rent:
     CBRF                                   X   Kitchen                                X    All Utilities
       Frail Elderly                            Kitchenette                            X    Meals (3 per day plus snacks)
       Memory Care                          X   Call Systems (pull cords)              X    Weekly Housekeeping
X    RCAC                                   X   Salon                                  X    Weekly Laundry Service
X    Private Room                               Furnished Rooms                        X    Weekly Linen Service
X    Private Bathroom                       X   Dining Room                                 Medication Assistance
     Waiting List                           X   Garden Courtyard                       X    Bathing Assistance
X    Companion Fee (see below)              X   Living Room                            X    24-hour trained staff
     Additional Care Levels                     Chapel


Move-in Fee:          $1,500 per person                                     Concessions: None

Remarks:              No strictly independent living units, but companions can live independently. Companion fees for independent
                      companions are $775 for studio, $830 for one bedroom and two bedroom units. Companion fees for assisted
                      living companions are $2,020 for studio, $2,080 for one bedroom and two bedroom units.
                                                                                                             Shorewood, WI
                                                                                                                   Page 51




Comparable:                Heritage West Allis            Year Built:             2009             Map Number:             5
Address:                   7901 W. National Avenue, West Allis, WI
Telephone:                 414-302-9700
Contact Person:            Debbie
Date of Survey:            4-5-10




       # of                            Unit                     Basic Service             Square                   # of Vacant
       Units                           Type                      Plan Costs               Footage                     Units

       40 total                       Studio                       $2,850*                Unknown                      10**
                                    1 Bd / 1 Ba                    $3,000*
                                    2 Bd / 2 Ba                    $3,650*

                 General                                       Amenities:                            Included in Base Rent:
     CBRF                                             Kitchen                              X    All Utilities
        Frail Elderly                             X   Kitchenette                         ***   Meals (3 per day plus snacks)
        Memory Care                               X   Call Systems (pull cords)           ***   Daily Housekeeping
X    RCAC                                         X   Salon                               ***   Weekly Laundry Service
X    Private Room                                     Furnished Rooms                     ***   Weekly Linen Service
X    Private Bathroom                             X   Dining Room                         ***   Medication Assistance
     Waiting List                                 X   Garden Courtyard                    ***   Bathing Assistance
X    Companion Fee ($500)                         X   Living Room                          X    24-hour trained staff
X    Additional Care Levels                           Chapel
     (I - $600, II - $1,200, III - $1,800)

Move-in Fee:               One month’s rent                                       Concessions: None

Remarks:                   Market-rate licensed RCAC. Development also contains a 33-unit CBRF.
                           *Example of base rent charge = studio room rate ($1,495) +2 meals per day($330) + 8 hours of care($800) =
                           total charge ($2,525)
                           ** Started leasing in November 2009
                           ** 8 hours can be split at tenant’s discretion among various services
                                                                                                            Shorewood, WI
                                                                                                                  Page 52




Comparable:              Heritage at Deer Creek -      Year Built:              2003                Map Number:             4
                         RCAC
                                        th
Address:                 3585 South 147 Street, New Berlin WI
Telephone:               262-789-6600
Contact Person:          Debbie
Date of Survey:          4-5-10



       # of                         Unit                      Basic Service              Square                   # of Vacant
       Units                        Type                       Plan Costs                Footage                     Units

            7                       Studio                       $2,855*                    340                         0
           28                     1 Br / 1 Ba                    $3,055*                  470-550
            8                     2 Br / 2 Ba                    $3,750*                    788
           43

                General                                      Amenities:                             Included in Base Rent:
     CBRF                                           Kitchen                               X    All Utilities
       Frail Elderly                            X   Kitchenette                           **   Meals (3 per day plus snacks)
       Memory Care                              X   Call Systems (pull cords)             **   Weekly Housekeeping
X    RCAC                                       X   Salon                                 **   Weekly Laundry Service
X    Private Room                                   Furnished Rooms                       **   Weekly Linen Service
X    Private Bathroom (full)                    X   Dining Room                           **   Medication Assistance
X    Waiting List (existing residents)          X   Garden Courtyard                      **   Bathing Assistance
X    Companion Fee ($500)                       X   Living Room                           X    24-hour trained staff
X    Additional Care Levels                     X   Chapel
     (see below)

Move-in Fee:              One month’s rent                                      Concessions: None

Remarks:                  Market-rate licensed RCAC. Development also contains a 33-unit CBRF.
                          Additional care levels: 11 - $600, III - $1,200, IV - $1,800 additional
                          *Example of base rent charge = studio room rate ($1,495) +2 meals per day($330) + 8 hours of care($800) =
                          total charge ($2,525)
                          ** 8 hours can be split at tenant’s discretion among various services
                                                                                                   Shorewood, WI
                                                                                                         Page 53




Comparable:            Concord at the Harbour         Year Built:         2008            Map Number:               1
Address:               5700 Mockingbird Lane, Greendale, WI
Telephone:             414-433-9302
Contact Person:        Krista
Date of Survey:        3-2-10



       # of                      Unit                   Basic Service             Square                  # of Vacant
       Units                     Type                    Plan Costs               Footage                    Units

           52            CBRF – Memory Care             $3,875-4,500             Unavailable                    0

                General                                Amenities:                           Included in Base Rent:
X    CBRF                                     Kitchen                             X    All Utilities
       Frail Elderly                          Kitchenette                         X    Meals (3 per day plus snacks)
X      Memory Care                       X    Call Systems (pull cords)           X    Daily Housekeeping
     RCAC                                X    Salon                               X    Weekly Laundry Service
     Private Room                        X    Furnished Rooms                     X    Weekly Linen Service
     Private Bathroom (1/2 bathrooms)    X    Dining Room                         X    Medication Assistance
     Waiting List                        X    Garden Courtyard                    X    Bathing Assistance
     Companion Fee                       X    Living Room                         X    24-hour trained staff
                                              Chapel


Move-in Fee:           None                                               Concessions: None

Remarks:
                                                                                                          Shorewood, WI
                                                                                                                Page 54




Comparable:             Heritage at Door Creek -      Year Built:              2003               Map Number:              4
                        CBRF
                                       th
Address:                3585 South 147 Street, New Berlin WI
Telephone:              262-789-6600
Contact Person:         Debbie
Date of Survey:         4-5-10



        # of                      Unit                    Basic Service                 Square                   # of Vacant
        Units                     Type                     Plan Costs                   Footage                     Units

           33                 Private studios              $3,650-4,000                 255-320                        0

                General                                  Amenities:                                Included in Base Rent:
X    CBRF                                       Kitchen                                 X     All Utilities
       Frail Elderly                            Kitchenette                             X     Meals (3 per day plus snacks)
X      Memory Care                          X   Call Systems (pull cords)               X     Weekly Housekeeping
     RCAC                                   X   Salon                                   X     Weekly Laundry Service
X    Private Room                           X   Furnished Rooms                         X     Weekly Linen Service
X    Private Bathroom                       X   Dining Room                             X     Medication Assistance
X    Waiting List                           X   Garden Courtyard                        X     Bathing Assistance
     Companion Fee                          X   Living Room                             X     24-hour trained staff
X    Additional Care Levels                 X   Chapel
     (see below)

Move-in Fee:            $1,000                                                Concessions: None

Remarks:                Market-rate licensed CBRF. Development also contains a 43-unit RCAC.
                        Additional care levels: 11 - $600, III - $1,200, IV - $1,800 additional
                                                                                                     Shorewood, WI
                                                                                                           Page 55




Comparable:             Heritage West Allis            Year Built:          2009           Map Number:             5
Address:                7901 W. National Avenue, West Allis, WI
Telephone:              414-302-9700
Contact Person:         Debbie
Date of Survey:         4-5-10



        # of                      Unit                      Basic Service           Square                  # of Vacant
        Units                     Type                       Plan Costs             Footage                    Units

           38                 Private studios               $3,600-3,800            Unknown                     19*

                General                                  Amenities:                           Included in Base Rent:
X    CBRF                                       Kitchen                             X    All Utilities
       Frail Elderly                            Kitchenette                         X    Meals (3 per day plus snacks)
X      Memory Care                          X   Call Systems (pull cords)           X    Daily Housekeeping
     RCAC                                   X   Salon                               X    Weekly Laundry Service
X    Private Room                           X   Furnished Rooms                     X    Weekly Linen Service
X    Private Bathroom                       X   Dining Room                         X    Medication Assistance
     Waiting List                           X   Garden Courtyard                    X    Bathing Assistance
     Companion Fee                          X   Living Room                         X    24-hour trained staff
     Additional Care Levels                     Chapel
     (see below)

Move-in Fee:            One month’s rent                                    Concessions: None

Remarks:                *Started leasing in November 2009
                                                                                                     Shorewood, WI
                                                                                                           Page 56




Comparable:             Bluemound Home              Year Built:             2006           Map Number:                8
Address:                12231 West Bluemound Road, Wauwatosa, WI
Telephone:              414-302-9400
Contact Person:         Cheryl
Date of Survey:         4-5-10



        # of                      Unit                    Basic Service             Square                  # of Vacant
        Units                     Type                     Plan Costs               Footage                    Units

           20                 Private studios                 $3,900                Unknown                       0

                General                                  Amenities:                           Included in Base Rent:
X    CBRF                                       Kitchen                             X    All Utilities
X      Frail Elderly                            Kitchenette                         X    Meals (3 per day plus snacks)
       Memory Care                          X   Call Systems (pull cords)           X    Daily Housekeeping
     RCAC                                   X   Salon                               X    Weekly Laundry Service
X    Private Room                           X   Furnished Rooms                     X    Weekly Linen Service
X    Private Bathroom                       X   Dining Room                         X    Medication Assistance
     Waiting List                           X   Garden Courtyard                    X    Bathing Assistance
     Companion Fee                          X   Living Room                         X    24-hour trained staff
     Additional Care Levels                     Chapel
     (see below)

Move-in Fee:            One month’s rent (refundable within 6 months)       Concessions: None

Remarks:                Market rate CBRF.
                                                                                                               Shorewood, WI
                                                                                                                     Page 57


                                                              Senior Living
                                                           Comparable Analysis
                                                             Residential PMA

Map             Address            Year        # of           Base Service                  Amenities /
                                                                               # Vacant                              Comments
 #                                 Built      Rooms             Charge                       Utilities
             Independent
 1        Milwaukee Catholic     1973-86        120          $1,385 - $4,685       7        W,S,TR,CB,          Studio, 1 Bed, 2 Bed
                 Home                                                                       E,G,H, 3M
           2330 N. Prospect
            Milwaukee, WI
 2         St. John’s on the       1979      115 (88         $1,870 - $5,995    17 (21 of   W,S,TR,CB,        Extra $25/hour for RCAC
                 Lake                       more being                         new units)     E,G,H       services. Rates are for Life Care.
           1840 N. Prospect                   built)                                                       $141,000 - $798,000 entrance
            Milwaukee, WI                                                                                               fee.
                                              235 (88
             Independent                                                       24 (10.2%
                                              more in
               Subtotal                                                        vacancy)
                                               2010)
                RCAC
 3        Watertower Assisted                  52 (not                                                    Property Manager did not return
                 Living                      included in                                                              calls
             2425 N. Lake                        total
            Milwaukee, WI                      below)
 3         Bradford Terrace                    36 (not                                                    Property Manager did not return
           2429 E. Bradford,                 included in                                                              calls
            Milwaukee, WI                        total
                                               below)
 1        Milwaukee Catholic     1973-86          29         $3,870 - $4,155       4        W,S,TR,CB,    $5,000 refundable entrance fee
                 Home                                                                       E,G,H, 3M
           2330 N. Prospect
            Milwaukee, WI
 2         St. John’s on the       1979         100          $1,870 - $5,995      25        W,S,TR,CB,        Extra $25/hour for RCAC
                 Lake                                                                         E,G,H       services. Rates are for Life Care.
           1840 N. Prospect                                                                                $141,000 - $798,000 entrance
            Milwaukee, WI                                                                                               fee.
                                                                               29 (22.5%
            RCAC Subtotal                       129
                                                                               vacancy)
                 CBRF
 3          Eastcastle Place                   18 (not                                                    Property Manager did not return
            2429 E. Bradford                 included in                                                              calls
             Milwaukee, WI                       total
                                               below)
 2         Canterbury Court        1979           20         $5,200 - $6,000       4        W,S,TR,CB,    Most residents pay rate from Life
           1840 N. Prospect                                                                 E,G,H, 3M,             Care System.
            Milwaukee, WI                                                                    HS, MA,
                                                                                             PCA, LS,
                                                                                               RN
                                                                               4 (20.0%
            CBRF Subtotal                        20
                                                                               vacancy)
                                              384 (88
                                                                               57 (14.8%
          Senior Living Total                 more in
                                                                               vacancy)
                                               2010)


      Utilities Included: W-Water, S-Sewer, TR-Trash Removal, CB-Cable, E-Electricity, G-Gas, H-Heat

      Amenities Key: 3M-3 meals per day, HS-Housekeeping, MA-Medication Assistance, PCA-Personal Care
      Assistance, LS-Laundry Service, RN healthcare management
                                                                                               Shorewood, WI
                                                                                                     Page 58


                                                 Senior Living
                                              Comparable Analysis
                                               Peer Communities

Map         Address           Year     # of      Base Service                Amenities /
                                                                 # Vacant                           Comments
 #                            Built   Rooms        Charge                     Utilities
           Independent
 1        Concord at the      2008     142       $1,975-$2,175      18        W, S, TR,
             Harbour                                                         CB, E, G, H,
        5700 Mockingbird                                                       2M, HS
          Greendale, WI
 2     Silver Creek Village   2000     65         $354-1,055        4        W, S, TR, H         LIHTC Section 42
      2455 W. Silver Spring
           Glendale, WI
 3     Parkside Commons       2000     100         $599-699         17       W, S, TR, H         LIHTC Section 42
         1400 W. Custer
           Glendale, WI
 4     Deer Creek Village     2000     145        $487-1,370        8          W, S, H           LIHTC Section 42
              Senior
       3601 S. 147th Street
          New Berlin, WI
 5     Heritage West Allis    2009     122                          5                            LIHTC Section 42
        7901 W. National
          West Allis, WI
                                                                     52
          Independent
                                       574                         (9.1%
            Subtotal
                                                                 vacancy)
              RCAC
 6      St. Clare Terrace     2001     58        $1,881-2,557       4         W, S, TR,       Additional care available
       3553 S. 41st Street                                                   CB, E, G, H,
         Milwaukee, WI                                                        3M, HS,
                                                                              MA, PCA,
                                                                               LS, RN
 1      Concord at the        2008     24        $3,550-3,900       0         W, S, TR,
           Harbour                                                           CB, E, G, H,
       5700 Mockingbird                                                       3M, HS,
        Greendale, WI                                                         MA, PCA,
                                                                                 RN
 7       Hickory Park         2009     56        $3,165-4,125       10        W, S, TR,
       3933 S. Prairie Hill                                                  CB, E, G, H,
         Greenfield, WI                                                       3M, HS,
                                                                              PCA, LS,
                                                                                 RN
 5     Heritage West Allis    2009     40        $2,850-3,650      10*        W, S, TR,     *started leasing in November
        7901 W. National                                                     CB, E, G, H,    2009 (excluded from tables)
         West Allis, WI                                                       3M, HS,         ** tenants have 8 hours of
                                                                              MA, PCA,              weekly service
                                                                              LS, RN**
 4     Heritage at Deer       2003     43        $2,855-3,750       0         W, S, TR,      ** tenants have 8 hours of
            Creek                                                            CB, E, G, H,          weekly service
      3585 S. 147th Street                                                    3M, HS,
        New Berlin, WI                                                        MA, PCA,
                                                                              LS, RN**
                                                                 14 (7.73%
        RCAC Subtotal                  181
                                                                 vacancy)
                                                                                                          Shorewood, WI
                                                                                                                Page 59

               CBRF
1         Concord at the         2008         52          $3,875-4,500         0         W, S, TR,
             Harbour                                                                    CB, E, G, H,
         5700 Mockingbird                                                                3M, HS,
          Greendale, WI                                                                  MA, PCA,
                                                                                          LS, RN
4        Heritage at Deer        2003         33          $3,650-4,000         0         W, S, TR,
              Creek                                                                     CB, E, G, H,
        3585 S. 147th Street                                                             3M, HS,
          New Berlin, WI                                                                 MA, PCA,
                                                                                          LS, RN
5        Heritage West Allis     2009         38          $3,600-3,800        19*        W, S, TR,     *started leasing in November
          7901 W. National                                                              CB, E, G, H,    2009 (excluded from totals)
           West Allis, WI                                                                3M, HS,
                                                                                         MA, PCA,
                                                                                          LS, RN
8       Bluemound Home           2006         20             $3,900            0         W, S, TR,
       12231 W. Bluemound                                                               CB, E, G, H,
         Wauwatosa, WI                                                                   3M, HS,
                                                                                         MA, PCA,
                                                                                          LS, RN
                                                                             0 (0%
          CBRF Subtotal                       105
                                                                           vacancy)
                                                                           66 (4.6%
        Senior Living Total                  1,434
                                                                           vacancy)


    Utilities Included: W-Water, S-Sewer, TR-Trash Removal, CB-Cable, E-Electricity, G-Gas, H-Heat

    Amenities Key: 3M-3 meals per day, HS-Housekeeping, MA-Medication Assistance, PCA-Personal Care
    Assistance, LS-Laundry Service, RN healthcare management
                                    Shorewood, WI
                                          Page 60


Multifamily Rental Comparable Map
                                                                                                          Shorewood, WI
                                                                                                                Page 61




Comparable:            Shorewood Manor                 Year Built:          1937                  Map #:          1
Address:               4001 N. Prospect, Shorewood, WI
Telephone:             414-271-6200
Contact Person:        Kathy
Date of Survey:        3-10-10


                       # of             Unit              Base             Square           # of Vacant
                       Units            Type              Rent             Footage             Units
                        25           1 Br / 1 Ba        $735 - 750         420-550               1*
                        10           2 Br / 2 Ba          $895               965                 0
                        35                                                                       1

       Amenities:                    Appliances:                           Unit Features:                    Included in Rent:
 X   Laundry Room              X   Refrigerator                   X     W/W Carpet                         X   Water/Sewer
     Playground                X   Range/Oven                           Patio/Balcony                      X   Trash Removal
     Swimming Pool                 Dishwasher                           Fireplace                          X   Hot Water
     Community Room            X   Disposal                             Air Conditioning                       Electricity
     Fitness Center                Washer/Dryer                    X    Drapes/Blinds                      X   Heat (gas)
     Business Center               W/D Hook-up                     X    Controlled Entry
 X   Elevator                      Microwave                            Garage/U.G. Parking
 X   Extra Storage
     (included)

 Security Deposit:      One month rent             Concessions:                 $250 gift card


 Remarks:               Market rate family development
                        *2 more units will be vacant in April (1 – 1 bedroom and 1-2 bedroom).
                        No waiting list.
                                                                                                        Shorewood, WI
                                                                                                              Page 62




Comparable:            The Annason                       Year Built:            1930’s          Map #:          2
Address:               2121 E. Capitol, Shorewood, WI
Telephone:             414-332-8080
Contact Person:        James
Date of Survey:        3-12-10


                       # of             Unit               Base             Square        # of Vacant
                       Units            Type               Rent             Footage          Units
                         6          Studio / 1 Ba        $500-525             525              1
                        42           1 Bd / 1 Ba         $550-595             600              1
                        12           2 Bd / 1 Ba         $725-775             700              0
                        60                                                                     2

       Amenities:                    Appliances:                           Unit Features:                  Included in Rent:
     Laundry Room              X   Refrigerator                         W/W Carpet                           Water/Sewer
     Playground                X   Range/Oven                           Patio/Balcony                    X   Trash Removal
     Swimming Pool                 Dishwasher                           Fireplace                            Hot Water
     Community Room                Disposal                             Air Conditioning                     Electricity
     Fitness Center                Washer/Dryer                     X   Drapes/Blinds                    X   Heat (gas)
     Business Center               W/D Hook-up                          Controlled Entry
 X   Elevator                      Microwave                            Garage/U.G. Parking
 X   Extra Storage
     (included)

 Security Deposit:      One month rent              Concessions:                   None


 Remarks:               Market rate Multifamily Development. No waiting list.
                                                                                                          Shorewood, WI
                                                                                                                Page 63




Comparable:            The Villager                       Year Built:          1962               Map #:          3
Address:               3955 N. Murray, Shorewood, WI
Telephone:             414-469-5250
Contact Person:        Ron
Date of Survey:        3-10-10



                       # of             Unit                Base              Square        # of Vacant
                       Units            Type                 Rent             Footage          Units
                         4           1 Br / 1Ba              $700               900              0
                         8           2 Br /1 Ba              $925              1100              0
                        33          2 Br / 1.5 Ba            $925              1100              2
                         3           3 Br / 2 Ba            $1300              1300              1
                        48                                                                       3

       Amenities:                    Appliances:                              Unit Features:                 Included in Rent:
 X   Laundry Room              X   Refrigerator                     X      W/W Carpet                      X   Water/Sewer
     Playground                X   Range/Oven                        X     Patio/Balcony                   X   Trash Removal
     Swimming Pool             X   Dishwasher                              Fireplace                       X   Hot Water
     Community Room            X   Disposal                         X      Air Conditioning                    Electricity
     Fitness Center                Washer/Dryer                     X      Drapes/Blinds                   X   Heat (gas)
     Business Center               W/D Hook-up                      X      Controlled Entry
 X   Elevator                      Microwave                        X      Garage/U.G. Parking
 X   Extra Storage
     (included)

 Security Deposit:      One month rent              Concessions:                  None



 Remarks:               Market rate family development
                        No waiting list
                        Indoor parking on a first come first serve basis
                                                                                                          Shorewood, WI
                                                                                                                Page 64




Comparable:            Shorewood East                    Year Built:         1960                  Map #:           4
Address:               3939 N. Murray, Shorewood, WI
Telephone:             414-431-9777
Contact Person:        Amy
Date of Survey:        3-11-10


                       # of             Unit               Base            Square           # of Vacant
                       Units            Type               Rent            Footage             Units
                         8           1 Bd / 1 Ba           $725              775                 0
                         8           2 Bd / 1 Ba           $965             1,040                0
                        15          2 Bd / 1.5 Ba          $980             1,060                0
                         9           2 Bd / 2 Ba           $995             1,060                0
                         8           3 Bd / 2 Ba          $1,350            1,300                0
                        48                                                                       0

       Amenities:                    Appliances:                           Unit Features:                     Included in Rent:
 X   Laundry Room              X   Refrigerator                    X    W/W Carpet                              Water/Sewer
     Playground                X   Range/Oven                           Patio/Balcony                           Trash Removal
     Swimming Pool             X   Dishwasher                           Fireplace                           X   Hot Water
     Community Room            X   Disposal                        X    Air Conditioning                        Electricity
     Fitness Center                Washer/Dryer                    X    Drapes/Blinds                       X   Heat (gas)
     Business Center               W/D Hook-up                     X    Controlled Entry
 X   Elevator                      Microwave                       X    Garage/U.G. Parking
                                                                        ($85/month)
 X   Extra Storage
     (included)

 Security Deposit:      One month rent              Concessions:                None for new tenants


 Remarks:               Mulitfamily rental development, waiting list for parking spaces (underground and surface), tenants pay
                        $10/month for water/sewer and trash removal. Surface parking available for $75/month.
                                                                                                          Shorewood, WI
                                                                                                                Page 65




Comparable:            Fountainview Apartments           Year Built:         1966                   Map #:          5
Address:               3909 N. Murray, Shorewood, WI
Telephone:             414-332-0360
Contact Person:        Chris
Date of Survey:        3-10-10


                        # of             Unit              Base             Square          # of Vacant
                        Units            Type              Rent             Footage            Units
                           8          1 Br / 1 Ba        $800-920*            900                0
                          88          2 Br / 2 Ba      $1,000-1,300*      1,100-1,300            1
                           6          3 Br / 2 Ba         $1,400             1,300               0
                         102                                                                     1

       Amenities:                     Appliances:                          Unit Features:                      Included in Rent:
 X   Laundry Room               X   Refrigerator                   X    W/W Carpet                           X   Water/Sewer
     Playground                 X   Range/Oven                     X    Patio/Balcony                        X   Trash Removal
     Swimming Pool              X   Dishwasher                          Fireplace                            X   Hot Water
     Community Room             X   Disposal                       X    Air Conditioning                         Electricity
     Fitness Center                 Washer/Dryer                   X    Drapes/Blinds                        X   Heat (gas)
     Business Center                W/D Hook-up                    X    Controlled Entry
 X   Elevator                       Microwave                      X    Garage/U.G. Parking
                                                                        ($70/month)
     Extra Storage
     (included)

Security Deposit:       $500-600                    Concessions:                 None


Remarks:                Waiting list for 1 bedroom units (5-6 people) and 3 bedroom units (7-8 people). *40 units have been
                        renovated with oak cabinets, stainless steel appliances, brushed nickel fixtures and California closets, the
                        property manager indicated the premium for a renovated unit averages $150-300/month. Parking is $50 for
                        surface and $70 for garage.
                                                                                                       Shorewood, WI
                                                                                                             Page 66




Comparable:            3559 N. Oakland                Year Built:           1940’s             Map #:          6
Address:               3559 N. Oakland, Shorewood, WI
Telephone:             414-964-3970
Contact Person:        Sherry
Date of Survey:        3-10-10


                       # of             Unit               Base            Square        # of Vacant
                       Units            Type               Rent           Footage           Units
                         2          Studio/1 Ba            $450           Unknown             0
                        44           1 Br / 1 Ba         $550-575                             3
                         3          2 Br / 1.5 Ba          $850                               0
                        49                                                                    3

       Amenities:                    Appliances:                           Unit Features:                 Included in Rent:
     Laundry Room              X   Refrigerator                 X       W/W Carpet                          Water/Sewer
     Playground                X   Range/Oven                           Patio/Balcony                   X   Trash Removal
     Swimming Pool                 Dishwasher                           Fireplace                           Hot Water
     Community Room            X   Disposal                             Air Conditioning                    Electricity
     Fitness Center                Washer/Dryer                     X   Drapes/Blinds                   X   Heat (gas)
     Business Center               W/D Hook-up                      X   Controlled Entry
 X   Elevator                      Microwave                        X   Garage/U.G. Parking
     Extra Storage
     (included)

 Security Deposit:      One month rent              Concessions:               None


 Remarks:               Market rate family development
                        No waiting list
                                                                                                           Shorewood, WI
                                                                                                                 Page 67




Comparable:            Bayshore                       Year Built:             2006                    Map #:         7
Address:               5699 North Centerpark Way, Glendale, WI
Telephone:             414-231-8810
Contact Person:        Jennifer
Date of Survey:        3-10-10


                       # of               Unit                Base           Square          # of Vacant
                       Units              Type                Rent           Footage            Units
                          7              Studio            $875-1030           605                 0
                         32            1 Br / 1 Ba        $1,000-1,400       833-985               2
                          4         1 Br/ 1Ba + den       $1,275-1,500        1,090                0
                         38            2 Br / 2 Ba        $1,300-1,500     1,141-1,171             7
                         20        2 Br / 2 Ba + den         $1,700        1,253-1,379             4
                         12           3 Br / 2.5 Ba       $2,000-2,200     1,496-1,675             0
                        113                                                                       13

       Amenities:                    Appliances:                             Unit Features:                    Included in Rent:
     Laundry Room              X   Refrigerator                       X   W/W Carpet                             Water/Sewer
     Playground                X   Range/Oven                         X   Patio/Balcony                          Trash Removal
     Swimming Pool             X   Dishwasher                         X   Fireplace                              Hot Water
 X   Community Room            X   Disposal                           X   Air Conditioning                       Electricity
 X   Fitness Center            X   Washer/Dryer                       X   Drapes/Blinds                          Heat (gas)
     Business Center               W/D Hook-up                        X   Controlled Entry
 X   Elevator                      Microwave                          X   Garage/U.G. Parking
     Extra Storage                                                        ($65/month or $35 further
                                                                          away from elevator)
     (included)

 Security Deposit:      $600 + $250 amenity            Concessions:              One month free with 12 month lease
                        fee


 Remarks:               Market rate family development, within the Bayshore mixed-use development (retail, restaurants, office and
                        residential) 9-11 foot ceilings, granite countertops, stainless steel appliances, hardwood floors in kitchen,
                        Tenant pays additional $15-25/month for water and sewer, no waiting list. Free surface lot.
                                                                                                          Shorewood, WI
                                                                                                                Page 68




Comparable:            Bay Village                      Year Built:                               Map #:            8
Address:               240 E. Chateau Place, Whitefish Bay, WI
Telephone:             414-962-9450
Contact Person:        Mary Ann
Date of Survey:        3-10-10


                       # of             Unit               Base               Square        # of Vacant
                       Units            Type               Rent               Footage          Units
                        224          2 Bd / 2 Ba        $895-$1095             1,350             8

       Amenities:                    Appliances:                              Unit Features:                   Included in Rent:
     Laundry Room              X   Refrigerator                    X       W/W Carpet                      X     Water/Sewer
     Playground                X   Range/Oven                       X      Patio/Balcony                   X     Trash Removal
     Swimming Pool             X   Dishwasher                              Fireplace                             Hot Water
     Community Room            X   Disposal                         X      Air Conditioning                      Electricity
     Fitness Center                Washer/Dryer                     X      Drapes/Blinds                         Heat (gas)
     Business Center           X   W/D Hook-up                             Controlled Entry
     Elevator                  X   Microwave                        X      Garage/U.G. Parking
 X   Extra Storage
     (included)

 Security Deposit:      One month rent              Concessions:                  None


 Remarks:               Market rate family development, no waiting list.
                                                                                                          Shorewood, WI
                                                                                                                Page 69




Comparable:            Plaza de Oro                      Year Built:           1970               Map #:          9
Address:               425 E. Henry Clay, Whitefish Bay, WI
Telephone:             414-786-0183
Contact Person:        Julie
Date of Survey:        3-10-10


                       # of             Unit               Base               Square        # of Vacant
                       Units            Type               Rent               Footage          Units
                        27           2 Bd / 2 Ba           $950                1,000             0

       Amenities:                    Appliances:                              Unit Features:                 Included in Rent:
 X   Laundry Room              X   Refrigerator                            W/W Carpet                      X   Water/Sewer
     Playground                X   Range/Oven                              Patio/Balcony                   X   Trash Removal
     Swimming Pool             X   Dishwasher                              Fireplace                           Hot Water
     Community Room            X   Disposal                         X      Air Conditioning                    Electricity
 X   Fitness Center                Washer/Dryer                     X      Drapes/Blinds                   X   Heat (gas)
     Business Center               W/D Hook-up                      X      Controlled Entry
 X   Elevator                      Microwave                        X      Garage/U.G. Parking
     Extra Storage
     (included)

 Security Deposit:      One month rent              Concessions:                  None


 Remarks:               Market rate family development, no waiting list.
                                                                                                         Shorewood, WI
                                                                                                               Page 70




Comparable:            Riverrise                       Year Built:        1973                    Map #:            10
Address:               3921 N. Humboldt, Milwaukee, WI
Telephone:             414-277-1288
Contact Person:        Cass
Date of Survey:        3-11-10



                       # of             Unit             Base            Square           # of Vacant
                       Units            Type             Rent            Footage             Units
                        64           1 Bd / 1 Ba       $499-599            550                 4

       Amenities:                    Appliances:                         Unit Features:                      Included in Rent:
 X   Laundry Room              X   Refrigerator                 X     W/W Carpet                           X   Water/Sewer
     Playground                X   Range/Oven                         Patio/Balcony                        X   Trash Removal
     Swimming Pool                 Dishwasher                         Fireplace                                Hot Water
     Community Room                Disposal                       X   Air Conditioning                         Electricity
     Fitness Center                Washer/Dryer                       Drapes/Blinds                        X   Heat (gas)
     Business Center               W/D Hook-up                    X   Controlled Entry
 X   Elevator                      Microwave                      X   Garage/U.G. Parking
 X   Extra Storage
     (included)

 Security Deposit:      One month rent             Concessions:               Free security deposit (if financially secure)


 Remarks:               Market rate family development, 5-10% seniors, about 20 units have dishwashers.
                                                                                                                                                      Shorewood, WI
                                                                                                                                                            Page 71

                                                              Multifamily Rental Comparative Analysis
                                                                                          Square        Rent Per                                   Utilities
                                          # of                           Base Rent                                    Vacancy       Waiting
Map #            Project Name                         Unit Types                          Footage       Square                                    Included/
                                          Units                           Range                                        Rate          List
                                                                                           Range         Foot                                    Concessions
   1            Shorewood Manor             25         1 Br / 1 Ba       $735 - 750           420-550   $1.35 -1.75     2.9%          None       W, S, TR, E, H/
                4001 N. Prospect            10         2 Br / 2 Ba         $895                 965        $0.93       (1 unit)                  $250 gift card
                 Shorewood, WI              35
   2              The Annason                6        Studio / 1 Ba       $500-525             525      $0.95-1.00       3.3%         None           TR, H/
                 2121 E. Capitol            42         1 Bd / 1 Ba        $550-595             600      $0.92-0.99     (2 units)                     None
                 Shorewood, WI              12         2 Bd / 1 Ba        $725-775             700      $1.03-1.11
                                            60
   3              The Villager               4         1 Br / 1Ba           $700                900       $0.78          6.3%         None         W, TR, H/
                 3955 N. Murray              8         2 Br /1 Ba           $925               1100       $0.84        (3 units)                    None
                 Shorewood, WI              33        2 Br / 1.5 Ba         $925               1100       $0.85
                                             3         3 Br / 2 Ba         $1300               1300       $1.00
                                            48
   4             Shorewood East              8         1 Bd / 1 Ba          $725                775       $0.94          0.0%         None             H/
                 3939 N. Murray              8         2 Bd / 1 Ba          $965               1,040      $0.93        (0 units)                  None for new
                 Shorewood, WI              15        2 Bd / 1.5 Ba         $980               1,060      $0.92                                     tenants
                                             9         2 Bd / 2 Ba          $995               1,060      $0.94
                                             8         3 Bd / 2 Ba         $1,350              1,300      $1.04
                                            48
   5         Fountainview Apartments         8         1 Br / 1 Ba        $800-920           900        $0.89-1.02      1.0%       1 and 3 bed     W, TR, H/
                 3909 N. Murray             88         2 Br / 2 Ba      $1,000-1,300*    1,100-1,300    $0.91-1.00     (1 unit)                     None
                 Shorewood, WI               6         3 Br / 2 Ba         $1,400           1,300         $1.08
                                           102
   6            3559 N. Oakland              2        Studio/1 Ba           $450          Unknown       Unknown          6.1%         None           TR, H/
                 Shorewood, WI              44         1 Br / 1 Ba        $550-575                                     (3 units)                     None
                                             3        2 Br / 1.5 Ba         $850
                                            49
   7                Bayshore                 7            Studio         $875-1030           605        $1.44-1.70      11.5%         None           None/
             5699 N. Centerpark Way         32          1 Br / 1 Ba     $1,000-1,400       833-985      $1.20-1.42    (13 units)                 One month free
                  Glendale, WI               4       1 Br/ 1Ba + den    $1,275-1,500        1,090       $1.17-1.37                               with 12 month
                                            38          2 Br / 2 Ba     $1,300-1,500     1,141-1,171    $1.14-1.28                                    lease
                                            20      2 Br / 2 Ba + den      $1,700        1,253-1,379    $1.23-1.36
                                            12         3 Br / 2.5 Ba    $2,000-2,200     1,496-1,675    $1.31-1.31
                                           113
   8               Bay Village             224         2 Bd / 2 Ba       $895-$1095            1,350    $0.66-0.81       3.6%         None           W, TR/
              240 E. Chateau Place                                                                                     (8 units)                     None
                Whitefish Bay, WI
   9              Plaza de Oro             27          2 Bd / 2 Ba          $950               1,000      $0.95           0%          None         W, TR, H/
               425 E. Henry Clay                                                                                       (0 units)                    None
                Whitefish Bay, WI
  10                Riverrise              64          1 Bd / 1 Ba        $499-599             550      $0.91-1.09       6.3%         None         W, TR, H/
                3921 N. Humboldt                                                                                       (4 units)                  Free security
                 Milwaukee, WI                                                                                                                       deposit
                                                                                                                        4.6%
                  Grand Total              770
                                                                                                                      (35 units)
Utilities Included: W-Water, S-Sewer, TR-Trash Removal, HW-Hot Water, E-Electricity, H-Heat
                                                                                                   Shorewood, WI
                                                                                                         Page 72

Residential Demand Analysis
The Demand Analysis provides a measurement of residential rental demand in the PMA based upon a mixture
of demographic data, demographic projections and historic trends. The Demand Analysis also estimates the
potential pool of households within the PMA and the number of age and/or income-qualified households (that
can afford to rent units at the proposed redevelopment) that will create an effective demand.

Household age and income plays an important role in determining whether a sufficient number of age and
income qualified households exist in the market to support the proposed unit rent for a housing development.
Such an income analysis typically determines whether the household income cohort is proportionately large
enough to support the introduction of the rental units.

1.       Multifamily Rental Housing

A capture rate was calculated for two various types of family rental developments:

      A. Workforce Housing (LIHTC)
      B. Market Rate

According to ESRI BIS, Inc., 56.6 percent of the households under age 65 in the Residential PMA are renters.
Therefore, a 56.6 percent renter factor will be utilized in the capture rate analysis.

                                     PMA Household Income by Age
                                   2009 Estimated Under the age of 65
           HH Income Base          < 25         25-34         35-44        45-54         55-64       Totals
                 Total              3,468         5,625         4,195        4,735         3,648      21,671
         <$15,000                     772           363           251          222           276       1,884
         $15,000 to $24,999           685           427           347          257           179       1,895
         $25,000 to $34,999           464           577           314          353           292       2,000
         $35,000 to $49,999           692         1,231           721          600           587       3,831
         $50,000 to $74,999           475         1,541           833          945           720       4,514
         $75,000 to $99,999           223         1,042           638        1,012           459       3,374
         $100,000 to $149,999           73          257           446          647           567       1,990
         $150,000 to $199,999           50           78           311          309           246         994
         $200,000 to $249,999           28           50           150          167           147         542
         $250,000 to $499,999            6           53           156          194           149         558
         $500,000 +                      0            6            28           29            26          89
         Median HH Income         $30,234       $52,139       $61,454      $74,638       $64,771
         Average HH Income        $39,659       $61,706       $89,804      $96,167       $94,739


                                       $15,000       $25,000      $35,000       $50,000     $75,000
        Number of          Under                                                                       $100,000
                                         to            to           to            to          to
        Households        $15,000                                                                         +
                                       $24,999       $34,999      $49,999       $74,999     $99,000
          Under 65          1,884       1,895         2,000        3,831         4,514       3,374       4,173
      Renter Occupied
                           56.6%        56.6%         56.6%        56.6%         56.6%       56.6%       56.6%
          Factor**
     Renter Households
                              1,066          1,073        1,132         2,168      2,555       1,910       2,362
     Under the Age of 65
         Source: ESRI BIS, Inc.
                                                                                                  Shorewood, WI
                                                                                                        Page 73

The estimated maximum percent of gross household income can be used to determine the income base for a
prospective tenant. In most cases, 35 percent of gross family household income is the most a household will
pay on rent, thereby providing an income base for this analysis. The difference between the income base and
the income cap defines the income eligible cohort for the rents proposed.

Using the Household Income by Age table from the Socio-Demographic Analysis, the number of income-eligible
households within the PMA for each income cohort can be determined. Since the 2009 ESRI BIS estimates
provide income cohorts in $5,000 to $10,000 increments, some interpolation is necessary to determine the
estimated number of households that fall partially within an income cohort. It is assumed that the households
are equally distributed within each income range, so a divisional factor is applied to the cohort to arrive at the
total number of eligible households.

Optimistic, Normative and Pessimistic Scenarios
An optimistic, a normative and a pessimistic scenario are also included for the overall development.
Considering the assumptions, interpolations, and extrapolations of the data, it is reasonable to assume a
potential 15 percent margin of error. Applying this potential margin of error to the “normative” calculations for
the eligible households produces “optimistic” and “pessimistic” scenarios as shown in the following table.

A. Workforce Housing
Under this analysis, the development is assumed to consist of a mix of income restricted units and market rate
units. This component assumes that the development will have gross rental rates (includes utility charges) from
$609 per month for a 50 percent AMI income restricted one-bedroom unit to $730 for a 60 percent AMI income
restricted two-bedroom unit.

                                     Income and Age Eligible Capture Rate
                                             Under 65 - Renters
                                       Workforce Housing Development

                                                          1 BR             2 BR
                                                        50% AMI          60% AMI
                                                                                          Combined
                                                       (Low rent)       (High Rent)
                  Likely Monthly Gross Rent                   $600            $1,000   $600-900
                          Income Cap                       $28,300           $38,160    $38,160
                         Income Base
                         (Annual Rent/                 $20,571         $34,285          $20,571
                     35% of HH Income)
                           Normative                                                       2,187
                           Optimistic                                                      2,515
                           Pessimistic                                                     1,859
        **Interpolated 2009 estimate based upon best corresponding income cohort from the 2009 ESRI BIS
        estimates.

As indicated in the table above, a normative estimate of 2,187 age and income-qualified households (including
all renters under age 65) are projected to be potential residents of a workforce housing development.

This analysis indicates the likely capture rates under various development options. Based on the analyst’s
experience, the capture rate should range between 3 percent and 5 percent under typical circumstances. We
suggest a range of 65-110 workforce rental units would be acceptable in the prevailing rental market.

B. Market Rate

Under this analysis, the development is assumed to consist of all market rate units. This component assumes
that the development will have gross rental rates from $800 per month for a market rate one-bedroom unit to
$1,000 for a market rate two-bedroom unit.
                                                                                             Shorewood, WI
                                                                                                   Page 74

                                   Income and Age Eligible Capture Rate
                                            Under 65 Renters
                                        Market Rate Development

                                                       1 BR              2 BR
                                                   Market Rate       Market Rate
                                                                                      Combined
                                                   (High Rent)       (High Rent)
                     Likely Monthly Rent                    $800          $1,200     $800-$1,000
                          Income Cap                         N/A             N/A        $75,000*
                         Income Base
                        (Annual Rent/                    $27,428         $41,142         $27,428
                     35% of HH Income)
                           Normative                                                       4,997
                           Optimistic                                                      5,747
                           Pessimistic                                                     4,247
        *Assumes that households with incomes over $75,000 will seek owner-occupied homes
          **Interpolated 2009 estimate based upon best corresponding income cohort from the 2009 ESRI BIS
            estimates.

As indicated in the table above, a normative estimate of 4,997 age and income-qualified households (including
all renters under age 65) are projected to be potential residents of a market rate housing development.

This analysis indicates the likely capture rates under various development options. Based on the analyst’s
experience, the capture rate should range between 3 percent and 5 percent under typical circumstances. We
suggest a range of 150 – 250 market rate rental units would be acceptable in the prevailing rental market.

2.      Independent Senior Rental Housing

A capture rate was calculated for two various types of independent living senior developments:

       A. Workforce Housing
       B. Market Rate

The main differences in the two capture rates are the number of households being served by the various types
of housing developments. Based upon NCAHMA standards, owner-occupied households should be removed
from the age and income eligible cohorts. Based on the analyst’s experience, for senior housing it would be
acceptable to include a reasonable number of owner-occupied households under certain circumstances. Based
on a survey of developments located throughout Wisconsin (including the properties listed above), an average
of 26.7 percent of the residents moved to the development from an owner-occupied home.
                                                                                               Shorewood, WI
                                                                                                     Page 75

                                         Owner Occupied Analysis for
                                         Selected Senior Developments
                                                 in Wisconsin

                                                   Number of
                                                                             Number of
      Development                Total         Households Moved                                       Date
                                                                         Households Moved
     Name/Location               Units        from owner occupied                                    Opened
                                                                         from rental housing
                                                     home
      Frost Woods I&II                                 70
                                  118                                              48                  2004
        Monona, WI                                  (59.3%)
        Westminster                                    9
                                  66                                               57                  2004
        Madison, WI                                 (13.6%)
  All Saints Independent                               34
                                  144                                             110                  2004
        Madison, WI                                 (23.6%)
        Prairie Oaks                                   10
                                  72                                               62               2000/2003
         Verona, WI                                 (13.9%)
                                                      123                         277
          Totals                  461
                                                    (26.7%)                     (73.3%)
    Source: Horizon 10/2007

The range of residents moving from a single-family home to the senior apartments ranged from a low of 13.9
percent to a high of over 59.3 percent. It is therefore reasonable to assume the proposed development would
be able to support a larger eligible cohort, and, taking a conservative approach, that 30 percent of the future
residents would be expected to move from their owner-occupied homes. In addition, taking a common sense
approach, it is reasonable to assume that virtually all homeowners over the age of 65 may be a prospective
resident for the proposed development. These homeowners may be physically or financially unable to continue
to maintain a single-family home. Therefore, for the purposes of calculating the capture rate, all of the age 65+
renters and 30 percent of the remaining cohort of age 65+ homeowners (after subtracting out the renter cohort)
would be included in the eligible population.

According to ESRI BIS, Inc., 40.3 percent of the seniors age 65+ in the PMA are renters. Therefore, a 40.3
percent renter factor will be utilized in the capture rate analysis.

                              PMA Detailed Senior Household Income by Age
                                             2009 Estimated
         HH Income Base        65-69      70-74       75-79       80-84        85+         Totals
               Total             1,032        735         841         640          695       3,943
       <$15,000                    143        126         157         144          147         717
       $15,000 to $24,999          149        106         133         112          122         622
       $25,000 to $34,999          114         83         115          87          101         500
       $35,000 to $49,999          113         81          90          68           78         430
       $50,000 to $74,999          137         99         104          77           83         500
       $75,000 to $99,999          140         91          88          53           53         425
       $100,000 to $149,999        134         84          78          61           62         419
       $150,000 to $199,999         49         33          49          27           37         195
       $200,000 to $249,999         23         15          17           5            7          67
       $250,000 to $499,999         25         14            9          6            5          59
       $500,000 +                    5          3            1          0            0            9
       Median HH Income        $49,480    $43,713     $37,010     $31,743     $32,205
       Average HH Income       $73,990    $68,382     $61,103     $52,791     $53,672
          Sources:     US Census Bureau, ESRI BIS estimates for 2009 and projections for 2014
                                                                                                    Shorewood, WI
                                                                                                          Page 76

                               PMA Household Income Distribution 65+ (2009)
                          Including All Renters and 30 percent of the Home Owners

                                         $15,000     $25,000      $35,000      $50,000      $75,000
       Number of             Under                                                                      $100,000
                                           to          to           to           to           to
       Households           $15,000                                                                        +
                                         $24,999     $34,999      $49,999      $74,999      $99,000
         Age 65+            717           662         500       430         500               425          749
     Renter Occupied
                           40.3%        40.3%       40.3%      40.3%       40.3%             40.3%       40.3%
         Factor**
        Subtotal            289           267         202       173         202               171          302
       Add: 30% of
       Homeowners           128           119          90        77          90                76          134
      Total Age and
    Income Qualified        417           385         291       250         291               247          436
       Source: ESRI BIS, Inc.
          **Estimated percent renters for ages 65+ in the PMA (ESRI BIS, Inc.)

The estimated maximum percent of gross household income can be used to determine the income base for a
prospective tenant. In most cases for seniors, 40 percent of gross family household income is the most
household can afford to pay for rent, thereby providing an income base. The difference between the income
base and the income cap defines the income eligible cohort for the rents proposed.

Using the Household Income by Age table from the Socio-Demographic Analysis, the number of income-eligible
households within the PMA for each income cohort can be determined. Since the 2009 ESRI BIS estimates
provide income cohorts in $5,000 to $10,000 increments, some interpolation is necessary to determine the
estimated number of households that fall partially within an income cohort. It is assumed that the households
are equally distributed within each income range, so a divisional factor is applied to the cohort to arrive at the
total number of eligible households.

Optimistic, Normative and Pessimistic Scenarios
An optimistic, a normative and a pessimistic scenario are also included for the overall development.
Considering the assumptions, interpolations, and extrapolations of the data, it is reasonable to assume a
potential 15 percent margin of error. Applying this potential margin of error to the “normative” calculations for
the eligible households produces “optimistic” and “pessimistic” scenarios as shown in the following table.

A. Workforce Housing
Under this analysis, the development is assumed to consist of a mix of income restricted units and market rate
units. This component assumes that the development will have gross rental rates (includes utility charges) from
$600 per month for a 50 percent AMI income restricted one-bedroom unit to $1,000 for a 60 percent AMI
income restricted two-bedroom unit.
                                                                                              Shorewood, WI
                                                                                                    Page 77

                                 Income and Age Eligible Capture Rate
                     Ages 65+ - Renters & 30 percent of the Remaining Homeowners
                                   Workforce Housing Development

                                                        1 BR            2 BR
                                                      50% AMI         60% AMI
                                                                                      Combined
                                                     (Low rent)      (High Rent)
                   Likely Monthly Gross Rent            $600           $1,000        $600-1,000
                           Income Cap                  $20,571         $34,285        $34,285
                          Income Base
                          (Annual Rent/               $18,000          $30,000        $18,000
                      40% of HH Income)
                            Normative                                                   383
                            Optimistic                                                  440
                            Pessimistic                                                 326
            ** Interpolated 2009 estimate based upon best corresponding income cohort from the 2009 ESRI
               BIS estimates. Includes renters and 30 percent of the remaining homeowners only.

As indicated in the table above, a normative estimate of 383 age and income-qualified households (including all
renters 65+ and 30 percent of the remaining age 65+ homeowner households) are projected to be potential
residents of a workforce housing development.

This analysis indicates the likely capture rates under various development options. Based on the analyst’s
experience, the capture rate should range between 5 percent and 10 percent under typical circumstances. We
suggest a range of 20-40 workforce senior independent living rental units would be acceptable in the prevailing
rental market.

B. Market Rate

Under this analysis, the development is assumed to consist of all market rate units. This component assumes
that the development will have gross rental rates from $800 per month for a market rate one-bedroom unit to
$1,100 for a market rate two-bedroom unit.

                                 Income and Age Eligible Capture Rate
                     Ages 65+ - Renters & 30 percent of the Remaining Homeowners
                                       Market Rate Development

                                                        1 BR             2 BR
                                                    Market Rate      Market Rate
                                                                                       Combined
                                                    (High Rent)      (High Rent)
                     Likely Monthly Rent                  $800           $1,100      $800-1,100
                          Income Cap                      N/A              N/A         $75,000*
                         Income Base
                         (Annual Rent/                 $24,000           $33,000        $24,000
                      40% of HH Income)
                           Normative                                                     1,364
                           Optimistic                                                    1,569
                           Pessimistic                                                   1,159
        **Assumes that households with incomes over $75,000 will seek owner-occupied homes
        ** Interpolated 2009 estimate based upon best corresponding income cohort from the 2009 ESRI BIS
           estimates. Includes renters and 30 percent of the remaining homeowners only.
                                                                                                      Shorewood, WI
                                                                                                            Page 78

      As indicated in the table above, a normative estimate of 1,364 age and income-qualified households (including
      all renters 65+ and 30 percent of the remaining age 65+ homeowner households) are projected to be potential
      residents of a market rate senior independent housing development.

      This analysis indicates the likely capture rates under various development options. Based on the analyst’s
      experience, the capture rate should range between 5 percent and 10 percent under typical circumstances. We
      suggest a range of 70-135 market rate senior independent living rental units would be acceptable in the
      prevailing rental market.

      3.      Assisted Living Developments

      A capture rate was calculated for two various types of independent living senior developments:

             A. RCAC
             B. CBRF

      The main differences in the two capture rates are the populations included in the analysis. The analysis for
      RCACs uses seniors 65+ with a disability and the analysis for CBRFs uses seniors 75+ with a disability. The
      following tables use the 2000 Census estimate that 39.7 percent of the seniors age 65+ living in Milwaukee
      County in 2000 have a disability.

                                    PMA Household Income Distribution 65+ (2009)
                                                 With a Disability

                                                   $15,000      $25,000      $35,000                   $75,000
           Number of                   Under                                              $50,000
                                                      to           to           to                        to         $100,000+
           Households                 $15,000                                            to $74,999
                                                   $24,999      $34,999      $49,999                   $99,000
            Age 65+                  717             662          500          430         500           425           749
 Percent of Population Age 65+
                                    39.7%        39.7%        39.7%         39.7%         39.7%     39.7%             39.7%
       with a Disability**
Number of Households Age 65+
       with a Disability             285          263          199           171           199       171               302
   Source: ESRI BIS, Inc.
     **Milwaukee County percent of population over the age of 65 with a disability – 2000 US Census


                                    PMA Household Income Distribution 75+ (2009)
                                                 With a Disability

                                                   $15,000      $25,000      $35,000                   $75,000
           Number of                   Under                                              $50,000
                                                      to           to           to                        to         $100,000+
           Households                 $15,000                                            to $74,999
                                                   $24,999      $34,999      $49,999                   $99,000
            Age 75+                  448             367          303          236         264           194           364
 Percent of Population Age 75+
                                    39.7%        39.7%        39.7%         39.7%         39.7%     39.7%             39.7%
       with a Disability**
Number of Households Age 75+
       with a Disability             178          146          120            94           105        77               145
   Source: ESRI BIS, Inc.
     **Milwaukee County percent of population over the age of 65 with a disability – 2000 US Census

      The estimated maximum percent of gross household income can be used to determine the income base for a
      prospective tenant. In most cases for assisted living seniors, 80 percent of gross family household income is the
      most a senior household can afford to pay for rent and services, thereby providing an income base. The
      difference between the income base and the income cap defines the income eligible cohort for the rents
      proposed.
                                                                                                  Shorewood, WI
                                                                                                        Page 79

Using the Household Income by Age table from the Socio-Demographic Analysis, the number of income-eligible
households within the PMA for each income cohort can be determined. Since the 2009 ESRI BIS estimates
provide income cohorts in $5,000 to $10,000 increments, some interpolation is necessary to determine the
estimated number of households that fall partially within an income cohort. It is assumed that the households
are equally distributed within each income range, so a divisional factor is applied to the cohort to arrive at the
total number of eligible households.

Optimistic, Normative and Pessimistic Scenarios
An optimistic, a normative and a pessimistic scenario are also included for the overall development.
Considering the assumptions, interpolations, and extrapolations of the data, it is reasonable to assume a
potential 15 percent margin of error. Applying this potential margin of error to the “normative” calculations for
the eligible households produces “optimistic” and “pessimistic” scenarios as shown in the following table.

A. RCAC Capture Rate
Under this analysis, the development is assumed to consist of market rate RCAC units. This component
assumes that the development will have rental rates from $2,500 per month for a market rate studio unit to
$4,500 for a market rate two-bedroom RCAC unit.

                                Income and Age Eligible Capture Rate
                      PMA Household Income Distribution 65+ (2009) With a Disability
                            Market Rate RCAC Assisted Living Development

                                                           1 BR              2 BR
                                                      Market Rate       Market Rate
                                                                                           Combined
                                                      (Low Rent)        (High Rent)
                      Likely Monthly Rent              $2,500            $4,500     $3,500-4,500
                           Income Cap                    N/A                N/A          N/A
                          Income Base
                         (Annual Rent/                 $37,500           $67,500      $37,500
                      80% of HH Income)
                            Normative                                                    700
                            Optimistic                                                   805
                            Pessimistic                                                  595
        ** Interpolated 2009 estimate based upon best corresponding income cohort from the 2009 ESRI BIS
           estimates. Includes households over the age of 65 with a disability.

As indicated in the table above, a normative estimate of 700 age and income-qualified households (including
households over the age of 65 with a disability) are projected to be potential residents of a market rate assisted
living RCAC housing development.

This analysis indicates the likely capture rates under various development options. Based on the analyst’s
experience, the capture rate should range between 5% and 10% under typical circumstances. We suggest a
maximum of 35-70 market rate assisted living RCAC rental units would be acceptable in the prevailing rental
market.
                                                                                                Shorewood, WI
                                                                                                      Page 80

B. CBRF Capture Rate
Under this analysis, the development is assumed to consist of market rate CBRF units. This component
assumes that the development will have rental rates from $3,000 - $4,000 per month.

                                Income and Age Eligible Capture Rate
                      PMA Household Income Distribution 75+ (2009) With a Disability
                            Market Rate CBRF Assisted Living Development

                                                     Market Rate       Market Rate
                                                                                         Combined
                                                     (Low Rent)        (High Rent)
                      Likely Monthly Rent              $4,000            $6,000     $4,000-6,000
                           Income Cap                    N/A                N/A          N/A
                          Income Base
                         (Annual Rent/                 $45,000           $45,000      $45,000
                      80% of HH Income)
                            Normative                                                    358
                            Optimistic                                                   412
                            Pessimistic                                                  304
        ** Interpolated 2009 estimate based upon best corresponding income cohort from the 2009 ESRI BIS
           estimates. Includes households over the age of 65 with a disability.

As indicated in the table above, a normative estimate of 358 age and income-qualified households (including
households over the age of 65 with a disability) are projected to be potential residents of a market rate assisted
living RCAC housing development.

This analysis indicates the likely capture rates under various development options. Based on the analyst’s
experience, the capture rate should range between 5% and 10% under typical circumstances. We suggest a
maximum of 20-40 market rate assisted living CBRF rental units would be acceptable in the prevailing rental
market.

Estimation of Multifamily Market Rents
The most comparable multifamily rental developments were analyzed and compared to estimate the subject
development’s market rents in the tables on the following three pages. First a number of assumptions had to be
made regarding the size and amenities of the subject property. These assumptions are listed in the column on
the tables titled “Data on Subject”. The subject property was then compared to the most comparable
developments: The Villager (map #3), Shorewood East (map #4), Fountainview (map #5), and Bayshore (map
#7). The rents utilized in the analysis were provided by the property manager.

The resulting estimation of market rents is included in the table below. An explanation of the analysis used to
estimate these rents follows.

                            Summary of Estimated Achievable Market Rents
                                       Base Market Rent          Average Unit
                  Unit Type                                                            Rent per SF
                                          per Month               Size (SF)
                  1 BR/1 BA                  $850                    800                  $1.06
                 2 BR/1.5 BA                $1,100                  1,100                 $1.00
                  3 BR/2 BA                 $1,450                  1,300                 $1.12
                                                                                               Shorewood, WI
                                                                                                     Page 81

Explanation of Adjustments and Market Rent Conclusions
Line 1. Last Rented / Restricted. All of the units are currently rented at rates shown on the grid. None of the
rents used in the comparables were under rent restrictions.

Line 2. Date Last Leased. The grid shows the effective date of the leases most recently signed. Effective dates
are from March 2010. No adjustments were necessary.

Line 3. Rent Concessions. One of the comparable properties is offering rental concessions and the
appropriate adjustment was made.

Line 4. Occupancy for Unit Type. One property in each unit type is operating below 95% and the appropriate
adjustments were made.

Line 7. Yr. Built/Yr. Renovated. A positive adjustment of $30 was made to the comparables that were not built
or renovated in the last 10 years.

Line 8. Condition/Street Appeal. A positive adjustment of $25 was made to the comparables that do not offer
a modern street appeal.

Line 9. Neighborhood. A negative adjustment of $200 was made to the comparable that is more marketable
due to an excellent location.

Line 12. # Baths. The comparable properties that contain an additional half-bath over the assumed floor plan of
the subject property were negatively adjusted by $10.

Line 13. Unit Square Footage. Adjustments were applied to reflect differences in unit sizes from the assumed
floor plan of the subject property at a rate of $0.25 per square foot. The adjustments were capped at $100 per
month.

Line 14. Balcony/Patio. It was assumed that the subject property would offer balconies or patios in all units.
The comparable properties that do not contain a balcony or patio were positively adjusted by $40.

Line 18. Washer/Dryer. It was assumed that the subject property would offer washers and dryers in all units.
The comparable properties that do not contain in-unit washer and dryers were positively adjusted by $5.

Line 22. Special Features. It was assumed that the subject property would offer modern fixtures, appliances,
and finishes. The comparable properties that do not contain these features were positively adjusted by $10.

Line 24. Parking. It was assumed that the subject property would include garage parking in the rental rates.
Comparable properties were adjusted accordingly.

Line 25. Extra Storage. It was assumed that the subject property would offer extra storage space. Those
comparables that do not include extra storage were positively adjusted $5 per month.

Line 28. Pool/Recreation Areas. It was assumed that the subject property would not include a pool or
recreation area. Those comparables that do include a pool or recreation area were negatively adjusted $10 per
month.

Line 29. Business Center. It was assumed that the subject property would include a business center. Those
comparables that do not include a business center were positively adjusted $10 per month.

Lines 33-39 Utilities. It was assumed that the subject property would only include trash and recycling fees and
tenants would pay all other utilities. The comparables were adjusted according to the latest utility allowance
provided by the Milwaukee County Housing Authority
Shorewood, WI
      Page 82
Shorewood, WI
      Page 83
Shorewood, WI
      Page 84
                                                                                               Shorewood, WI
                                                                                                     Page 85

Market Conclusions
      Sufficient potential demand exists for approximately 70-135 market-rate independent senior units and
       20-40 affordable independent senior units. As few age-restricted independent senior developments
       were identified within the Primary Market Area, Baker Tilly surveyed independent living developments in
       peer communities and found vacancy rates of 9-10%. While these vacancy rates are slightly above
       typical market averages, property managers indicated that new residents are currently not moving into
       the facilities due to their inability to sell their existing homes. As the housing market continues to
       improve, increases in occupancies are expected. Furthermore, the demographic projections for the
       area show significant growth in seniors (178 seniors and 113 senior households added annually though
       2014) which will enhance the viability of independent living developments. Based on the rental rates in
       comparable developments, we estimate market rental rates to be approximately $900 for one bedroom
       units (750 SF) and $1,000 for two bedroom units (1,000 SF).
      Sufficient potential demand exists for approximately 55-110 assisted living units (35-70 RCAC and 20-
       40 CBRF). Assisted living developments within the market area have above average vacancy, but
       these developments are older and located on the southern edge of the market area; no assisted living
       developments were identified within the Village limits. In order to include new-construction assisted
       living facilities in our analysis, Baker Tilly surveyed developments in peer communities and found
       vacancy rates of 7.7% for RCAC units and 0% for CBRF units. While the RCAC vacancy rates are
       slightly above typical market averages, property managers indicated that new residents are currently
       not moving into the facilities due to their inability to sell their existing homes. As the housing market
       continues to improve, increases in occupancies are expected. Furthermore, the demographic
       projections for the area show significant growth in seniors (178 seniors and 113 senior households
       added annually though 2014) which will enhance the viability of assisted living developments.
       Market rental rates for RCAC units (2 meals per day, 8 hours of weekly care) are approximately $2,850
       for studio units, $3,000-$3,100 for one bedroom units and $3,650-$3,750 for two bedroom units.
       Market rental rates for CBRF (full service) are approximately $3,600 - $4,000 for private room/private
       bath units.
      Sufficient potential demand exists for approximately 150-250 market-rate multifamily rental units and
       65-110 workforce family rental units. Existing market-rate multifamily rental developments in the market
       area currently are approximately 96% occupied. Market rental rates are approximately $850 for one
       bedroom units (800 SF), $1,100 for two bedroom units (1,100 SF), and $1,450 for three bedroom units
       (1,300 SF).
                                                                                             Shorewood, WI
                                                                                                   Page 86

Owner-Occupied Condominium Analysis

The initial step in assessing the market for owner-occupied condominium units was to identify the
representative developments within or near the defined Residential PMA. These representative developments
were identified through a variety of sources including interviews with local real estate professionals, local
government officials and the local Multiple Listing Service (MLS). The comparable developments selected
provide a detailed view of the existing Village of Shorewood and immediate surrounding area’s condominium
market.

The analysis focused on sales and current listings for condominium properties for the Village of Shorewood’s
zip code (53211) which also includes portions of Milwaukee and Whitefish Bay. The 53211 zip code does not
exactly match the Residential PMA, but is the closest geographical match for which data was available. A map
of the 53211 zip code is included below.

                                             53211 Zip Code
                                                                                                                                      Shorewood, WI
                                                                                                                                            Page 87

The supply analysis focused on condominium sales from 2007 – March 15, 2010 and all current active listings. As can be seen from the table below, the
total sales volume and the number of sold units dropped significantly from 2008 – 2009. Additionally, sales prices and sales prices per square foot
dropped over this time period. If condominium sales in 2010-2011 stay at the same rate as 2009-2010, the current listings will take over 2 years to sell.

                                                         All Condos sold in 53211 Zip Code
                                                                Statistical Analysis

                         Sales/Listing              Average       Average     Average List     Average Sale       Average Sale         Sold/List
                           Volume         Units     List Price      SF*        Price/SF*          Price            Price/SF*          Price Ratio
Sold 07                   $15,644,904          63     $257,188       1,539         $183.28         $248,332             $176.31             96.6%
Sold 08                   $15,447,950          64     $258,135       1,473         $186.04         $241,374             $173.16             93.5%
Sold 09/10                 $7,118,650          33     $226,703       1,385         $162.32         $215,717             $154.42             95.1%
Active Listings           $17,787,050          74     $240,366       1,415         $212.82              N/A                 N/A               N/A
* Not all listings provide SF estimates

By isolating the newly constructed (2000-present) condominium sales and listings, similar trends appear. In the 38.5 months from 1/1/07-3/15/10 a total
of 36 condominiums sold in the 53211 zip code for a total sales volume of $9.78 million. There are currently 33 active listings on the MLS for
condominiums built since 2000 in this zip code including 22 new-construction units on Oakland in Shorewood for a total listing volume of $10.6 million.

                                                     Condos built since 2000 in 53211 Zip Code
                                                               Statistical Analysis

                         Sales/Listing    Units     Average       Average      Average List     Average Sale       Average Sale        Sold/List
                           Volume                   List Price      SF*         Price/SF*          Price            Price/SF*         Price Ratio
Sold 07                    $3,353,700         12     $282,304        1,566          $174.05         $279,475             $169.23            99.0%
Sold 08                    $4,343,650         16     $276,463        1,583          $172.38         $271,478             $161.09            98.0%
Sold 09/10                 $2,087,000          8     $274,800        1,610          $165.40          $260,875            $157.15            94.9%
Active Listings           $10,629,700         33     $322,112        1,518          $212.82               N/A                 N/A              N/A
* Not all listings provide SF estimates
                                                                                                                                       Shorewood, WI
                                                                                                                                             Page 88

                                                       Condos built since 2000 in 53211 Zip Code
                                                              Sold 1/1/2009 – 3/15-2010

                                                                                                   Monthly                                           Total
                       Unit                       Sold        List                 Full     Half   Condo                     Units in      Year    Finished
     Address            #         Municipality    Price       Price    Beds       Baths    Baths    Fee      Sold Price/SF   Building      Built      SF
2904 N Cambridge
Ave                        202    Milwaukee      $186,500   $189,900        2          2       0      $150         $155.42             6    2006         1200
1717 E Kensington
Blvd                       205    Shorewood      $235,000   $250,000        2          2       0      $295         $181.19         22       2004         1297
3710 N Oakland             103    Shorewood      $161,000   $163,900        2          2       0      $208         $131.54         40       2003         1224
3255 N Bartlett Ave.              Milwaukee      $168,000   $179,900        2          2       0       $80         $131.25          3       2003         1280
3257 N Bartlett Ave               Milwaukee      $181,500   $189,900        2          2       0       $80         $141.80          3       2003         1280
2573 N Farwell Ave                Milwaukee      $265,000   $289,900        2          2       1      $150         $163.58         10       2001         1620
1615 E Park Pl.                   Milwaukee      $314,500   $335,000        3          2       1      $150         $134.29          1       2001         2342
2215 E Stratford Ct.              Shorewood      $575,500   $599,900        3          3       1      $467         $218.16          2       2000         2638

Between the period of January 1, 2009, to March 15, 2010, a total of 8 condominium sales in buildings constructed 2000-2010 were identified within the
53211 zip code. Based on those 8 sales, the sales price per square foot ranges from $131 per square foot (PSF) to $218 PSF, with an average of $157
PSF. Sales volume and average sales price for condominiums has decreased every year since 2007.

                                                       Condos built since 2000 in 53211 Zip Code
                                                              Sold 1/1/2009 – 3/15-2010
                                                                 Statistical Analysis

           Status # Units List Volume Sold Volume                List Price Sold Price Sq. Ft. List Price Per Sq. Ft. Sold Price Per Sq. Ft.
                                                            Low $163,900        $161,000   1,273       $133.91               $131.54
            Sold       8         $2,198,400   $2,087,000    Avg $366,799        $260,875   1,658       $165.40               $157.15
                                                            High $599,900       $575,500   2,054       $227.41               $218.16
                                                                                                                               Shorewood, WI
                                                                                                                                     Page 89

                                                 Condos built since 2000 in 53211 Zip
                                               Active Listing or Accepted Offer 3/15/2010

        Address          Unit   Municipality    List Price   Beds   Full       Half       Condo    Price/Fin   Units in    Year     Total
4541 N Oakland AVE        208   Shorewood        $239,000       1          1          0        0     $231.81          22    2010        1031
4541 N Oakland AVE        308   Shorewood        $249,000       1          1          0        0     $241.51          22    2010        1031
4541 N Oakland AVE        203   Shorewood        $249,000       1          1          0        0     $233.80          22    2010        1065
4541 N Oakland AVE        303   Shorewood        $259,000       1          1          0        0     $243.19          23    2010        1065
4541 N Oakland AVE        207   Shorewood        $299,000       2          2          0        0     $219.85          22    2010        1360
4541 N Oakland AVE        307   Shorewood        $309,000       2          2          0        0     $227.21          22    2010        1360
4541 N Oakland AVE        202   Shorewood        $309,000       2          2          0        0     $217.76          22    2010        1419
4541 N Oakland AVE        302   Shorewood        $319,000       2          2          0        0     $224.81          22    2010        1419
4541 N Oakland AVE        205   Shorewood        $329,000       2          2          0        0     $223.20          22    2010        1474
4541 N Oakland AVE        305   Shorewood        $339,000       2          2          0        0     $229.99          22    2010        1474
4541 N Oakland AVE        204   Shorewood        $339,000       2          2          0        0     $221.14          22    2010        1533
4541 N Oakland AVE        404   Shorewood        $349,000       2          2          0        0     $233.29          22    2010        1496
4541 N Oakland AVE        304   Shorewood        $349,000       2          2          0        0     $227.66          22    2010        1533
4541 N Oakland AVE        301   Shorewood        $379,000       2          2          0        0     $219.58          22    2010        1726
4541 N Oakland AVE        201   Shorewood        $379,000       2          2          0        0     $219.58          22    2010        1726
4541 N Oakland AVE        206   Shorewood        $399,000       2          2          0        0     $227.48          22    2010        1754
4500 N Oakland AVE        405   Shorewood        $409,000       2          2          0        0     $236.96          22    2010        1726
4541 N Oakland AVE        401   Shorewood        $409,000       2          2          0        0     $235.73          22    2010        1735
4541 N Oakland AVE        306   Shorewood        $409,000       2          2          0        0     $233.18          22    2010        1754
4541 N Oakland AVE        403   Shorewood        $439,000       2          2          0        0     $242.81          22    2010        1808
4541 N Oakland AVE        402   Shorewood        $469,000       2          2          1        0     $233.22          22    2010        2011
4541 N Oakland AVE        406   Shorewood        $479,000       2          2          0        0     $256.29          22    2010        1869
2566 N Newhall St               Milwaukee        $229,900       3          2          1       95     $114.89           2    2007        2001
2904 N Cambridge Ave     302    Milwaukee        $189,900       2          2          0      160     $158.25           6    2006        1200
2904 N Cambridge AVE     101    Milwaukee        $195,900       2          2          0      160     $163.25           6    2006        1200
2904 N Cambridge Ave     102    Milwaukee        $204,000       2          2          0      160                       6    2005           0
2050 N Commerce ST       206    Milwaukee        $259,000       2          2          0      236     $172.44          24    2005        1502
1717 E Kensington        303    Shorewood        $229,900       2          2          0      295     $177.26          22    2004        1297
1717 E Kensington Blvd   402    Shorewood        $369,000       2          2          0      295     $187.98          22    2004        1963
3710 N Oakland AVE       110    Shorewood        $199,900       2          2          0      240     $156.66          39    2003        1276
3710 N Oakland Ave       408    Shorewood        $249,800       2          2          0      240     $172.04          39    2003        1452
2218 E Edgewood                 Shorewood        $409,500       2          3          1      345                       3    2001           0
3514 N Maryland Ave             Shorewood        $384,900       2          3          1      295     $214.67           3    2001        1793
                                                                                                                                     Shorewood, WI
                                                                                                                                           Page 90

As of March 15, 2010, a total of 33 condominium listings in buildings constructed 2000-2010 were reported in the 53211 zip code. 22 of these units are
within the Ravenna development at 4541 Oakland. The list price per square foot ranges from $163 PSF up to $256 PSF for the units listed for sale, with
an average of $214 PSF.

                                                        Condos built since 2000 in 53211 Zip
                                                      Active Listing or Accepted Offer 3/15/2010

                                                                                                                 List Price
                            Status       # Listings    List Volume                   List Price      Sq. Ft.
                                                                                                                 Per Sq. Ft.
                                                                         Low         $189,900        1,031         $163.25
                            Active           33        $10,629,700       Avg         $322,112        1,789         $214.33
                                                                         High        $479,000        1,518         $256.29

Market Conclusions

       There are currently 74 condominiums (33 built since 2000) actively listed in the 53211 zip code. From January 2009 – March 2010 a total of 33
        condominiums sold indicating the current supply will take over two years to sell at 2009-2010 absorption rates.
       Average sales prices (-6.6%) and prices per square foot (-5.0%) dropped from 2007-2009 for condominiums built since 2000.
       There are currently 22 new-construction actively listed condominiums listed on the market (the Ravenna project at 4541 Oakland).
       Due to the availability of new construction condos on the market and the declining sales prices, the assumption should be made that the market
        in the Shorewood Residential PMA is currently saturated and new condominiums should not be added for at least two years.
                                                                                                 Shorewood, WI
                                                                                                       Page 91

Medical Office Market Overview

Baker Tilly conducted a market overview of the supply of medical office space in Milwaukee County, the
Medical Office PMA. As a part of this assessment, Baker Tilly analysts interviewed commercial real estate
brokers of currently listed medical office space in the Medical Office PMA. These interviews provided a
qualitative assessment of the medical office market as summarized below:

       Overall, the medical office market is soft right now
       The Shorewood area (including Glendale and northern Milwaukee) has a large inventory of newer
        medical office space that is currently vacant due to the new construction located near the new
        Columbia St. Mary’s Hospital on Farwell Avenue
       Market rents have been negatively impacted due to current economic conditions; rental concessions
        are the norm in this market segment
       There is quite substantial “slack” in the market meaning that tenants may occupy more square feet than
        needed due to the low cost to do so or extended lease terms
       Medical office space located near hospitals or other medical centers tends to perform more strongly
       Drive-by exposure from interstate traffic is important to medical office users

This information was supported with a review of market rents with data provided Loopnet (a summary is
included on the following pages). Of the 23 properties with vacant medical office space in Milwaukee County, 6
are located within the Medical Office PMA. There is a total of approximately 500,000 square feet of vacant
medical office listed in the County and 125,000 square feet is located in the Shorewood PMA. Similarly there is
approximately 175,000 square feet of listed medical office space in the County that was built in the last 10 years
and 125,000 square feet of this space is located within the Shorewood PMA. The average net rent equivalent is
$14.72 per square foot for all listed space and $17.22 for all listed space built in the last 10 years.

Market Conclusions

       Due to the availability of new construction office space in the market, the assumption should be made
        that the market in the Medical Office PMA is currently saturated
       Due to the lack of drive-by visibility and distance from major medical centers, the subject site is not a
        strong location for medical office uses
                                                                                                                                            Shorewood, WI
                                                                                                                                                  Page 92


 Milwaukee County Medical Office Market (Active Listings)
                                                                                                                                                      Estimated
                                                                                                      Total Space                 Max
  Map #                       Name                                Address                Year Built                 Min Size                 GLA         Net
                                                                                                       Available               Contiguous
                                                                                                                                                      Equivalent
                                                NEQ N Green Bay Rad and W Brown Deer
                                                                                            <10
     1       MarketPlace of Brown Deer          Road, Milwaukee                                         60,669       4,974       55,695     410,088
    2*       Glendale Professional Building     4655 N. Port Washington Road, Glendale      <10          9,537        573        4,205       9,537     $15.00
    3*       Barnabas Business Center           4600 N. Estabrook Lane, Glendale            <10         24,000       7,000       24,000      24,000    $15.00
    4*       4433 N. Oakland                    4433 N. Oakland, Shorewood                  <10          1,100                               12,000    $12.50
    5*       Keller Dental Building             2445 N. Farwell Avenue, Milwaukee          2008          2,473       1,000       2,473       6,400
    6*       2350 N. Lake Dr                    2350 N. Lake Drive, Milwaukee               <10         33,403        638        33,403     153,000    $18.50
    7*       2228 Prospect                      2228 Prospect, Milwaukee                    <10         54,999       1,200       54,999      55,000    $22.00
     8       1834 W. Wisconsin Ave              1834 W. Wisconsin Avenue, Milwaukee        1954          4,567                               14,259    $10.00
     9       Burleigh Street Medical Building   3040 N. 117th Street, Wauwatosa            2007          3,305                               17,900    $21.00
    10       Greenfield Professional Building   3400 S. 103rd Street, Greenfield           2008         14,000       1,000       14,000      14,000    $15.00
    11       West Allis Center                  2625 2. 108th Street, West Allis            <10        123,986                              383,967
    12       8800 Lincoln                       8800 W. Lincoln, West Allis                1986          7,000                                         $15.00
    13       5631 W. Lincoln                    5631 W. Lincoln, West Allis                 >10          8,002                               8,002      $6.74
    14       2778 S. 35th Street                2778 S. 35th Street, Milwaukee              >10          3,000        900        2,100       12,000    $12.00
    15       Greenway Medical Complex           3365 S. 103rd Street, Milwaukee             <10          6,050       1,000       6,050       44,000    $19.00
    16       6724 W. Morgan                     6724 W. Morgan, Milwaukee                   >10         24,000        800        2,400       6,502     $12.85
    17       2741 W. Layton                     2471 W. Layton Avenue, Milwaukee           1986         11,245       1,605       11,245      15,968    $13.00
    18       Whitnall Square                    4698 South Whitnall, Milwaukee              >10         14,865       1,600       11,165     133,301
    19       2603 Rawson                        2603 W. Rawson, Oak Creek                   >10         33,220        790        20,000      27,961    $15.00
    20       7365 S. Howell                     7365 S. Howell, Oak Creek                  2010         32,000       5,000       32,000      32,000    $17.00
    21       10401 W. Lincoln                   10401 W. Lincoln, West Allis                >10          5,285        554        5,285       26,918    $15.00
    22       331 E. Puetz Road                  331 E. Puetz Road, Oak Creek                >10          1,901                               17,110    $12.00
                                                11035 W. Forest Home Avenue, Hales
                                                                                            >10
     23       Forest View Medical Building      Corners                                                 11,979        860        8,457       11,979    $13.00
* Located in Shorewood PMA
                                      Shorewood, WI
                                            Page 93

Current Medical Office Listings Map
                                                                                                Shorewood, WI
                                                                                                      Page 94

Retail Market Overview

Using ESRI BIS Retail MarketPlace data, Baker Tilly conducted a supply and demand analysis of retail
industries within the 5-minute drive time Retail PMA. A table of those industries with more than $5 million in
unmet demand is listed below. Many of the industries included in this table are typically “anchor” stores in larger
retail developments: furniture, general merchandise, building materials, electronics, department stores, and
home furnishings. With 4.2 acres of buildable land and 552 feet of Capitol Drive frontage, the River Site in
Shorewood is likely not large enough to support the development of one of these anchor stores and the other
associated establishments.

Furthermore, the subject site’s close proximity to downtown Shorewood (0.4 miles) and Capitol Centre
Shopping Centre (0.5 miles) makes the site less appealing for retail development as most retailers will want to
cluster together in successful and established retail districts. Automobile dealers and other motor vehicle
dealers will also want to cluster together making the subject site a less than ideal property for those uses.

However, the table below does indicate that limited-service eating places (fast food, coffee shop, sandwich
shop, etc) may be marketable in the Retail PMA. Incorporating a restaurant of this type within a mixed-use
development on the subject site should be considered.

                                                    Current
                               Current Supply                         GAP          Sales/SF     Needed SF
                                                    Demand

      Automobile Dealers         $146,253,116     $16,766,639    $129,486,477           N/A*       5 dealers*

      Other General                                                                    $200          308,618
                                 $111,678,813     $49,955,160     $61,723,653
      Merchandise Stores
      Gasoline Stations          $106,857,956     $49,446,951     $57,411,005           N/A*    28 stations**

      Furniture Stores            $15,455,888      $1,598,477     $13,857,411          $250           86,955

      Limited-Service                                                                  $300           41,924
                                  $60,618,884     $48,041,454     $12,577,430
      Eating Places
      Building Material and                                                            $250           55,430
                                  $23,309,349     $12,353,141     $10,956,208
      Supplies Dealers
      Electronics &                                                                    $200           49,249
                                  $18,027,420      $8,177,566       $9,849,854
      Appliance Stores
      Department Stores                                                                $250           34,786
      Excluding Leased            $37,517,327     $28,820,750       $8,696,577
      Depts.
      Other Motor Vehicle                                                               N/A*   3-4 dealers***
                                   $8,877,805      $1,105,927       $7,771,878
      Dealers
       Home Furnishings                                                              $250        21,847
                                  $7,784,195      $2,322,459       $5,461,736
       Stores
     *Sales per establishment for new automobile dealers is $24,213,000 per 2007 Economic Census (US
     Census Bureau)
     **Sales per establishment for gasoline stations is $2,051,000 per 2007 Economic Census (US Census
     Bureau)
     ***Sales per establishment for other motor vehicle dealers is $3,000,000 per 2007 Economic Census (US
     Census Bureau)
                                                                                                    Shorewood, WI
                                                                                                          Page 95

Village of Shorewood Retail Market Development Plan
Business Districts, Inc. (BDI) completed a Retail Market Development Plan for the Village of Shorewood in
November 2009. A summary is included below. The study included a Village-wide survey as well as supply-
demand analysis for retail industries. While the results differ from Baker Tilly’s analysis due to differences in
geographic area and categorization (BDI used a larger PMA and excluded automobile and other motor vehicle
dealers), both analyses recommend adding restaurants to Shorewood in addition to several other larger
retailers.

Highlights from the Survey include:

          With more than 80% of respondents visiting Shorewood businesses at least weekly, clearly
           respondents have embraced the shops of Shorewood
          More than 60% of respondents would spend more if these businesses categories were added:
           Hardware, Home Accessories, Organic Green Grocer, and Specialty Foods
          More than 60% of respondents reported that they would spend more if casual dining or counter service
           restaurants were added

Current Sales Potential includes:
With identified business opportunities providing sales more than $56 million higher than estimated current
sales, it will be necessary for existing businesses to increase their sales per square foot and for new
businesses to join Shorewood’s offering. The table below summarizes market opportunities:

                  Estimated       A                B                 C=A/B          D               E=C-D
                  Sales           Desired Sales    Sales/ SF         Supporting     Existing SF     Needed SF
                                                                     SF
Food              $ 21,984,791    $   38,763,018   $           500         77,526          45,492         32,034
Restaurants       $ 20,744,798    $   31,084,665   $           500         62,169          54,450          7,719
Apparel &         $   3,674,880   $   17,221,424   $           350         49,204          27,788         21,416
Accessories
Home              $   7,644,520   $   17,542,788   $           250         70,171          37,381         32,790
Other Retail      $ 31,353,237    $   27,324,658   $           500         54,649          48,610          6,039
Haircare          $   6,600,096   $    6,600,096        existing           32,325          32,325               -
Total             $ 96,648,345    $ 138,536,649    $           441        346,045         246,046         99,999
                                                                              Currently Vacant            10,500
                                                                              Office Conversion           10,000
                                                                              New Space                   79,499

Market Conclusions
Because the site is located in between two shopping areas – Capitol Centre Shopping Center and downtown
Shorewood – it is unlikely to attract a significant retail anchor listed in the tables above. Smaller neighborhood
or community retailers are more likely to be attracted to this site. Restaurants, convenience stores and coffee
shops are examples of retailers that may be interested in a mixed-use development at this location. A full retail
development is not recommended due to the site’s close proximity to large and successful retail developments.
                                                                                                Shorewood, WI
                                                                                                      Page 96

APPENDIX A: Village of Shorewood Demographic Information

Overall Demographic Analysis
The following table provides a summary of the demographic makeup of the people residing within the Village of
Shorewood. According to the US Census Bureau and the ESRI BIS actual 2000, estimated 2009, and projected
2014 demographic data sets, the overall population is projected to increase by approximately 29 people per
year for the 5 years ending in 2014, resulting in an overall gain of 1.1 percent. The number of households is
projected to increase at a rate of about 22 per year for a gain of 1.6 percent. A greater increase is projected in
renter occupied units than in owner occupied units, with the overall average household size decreasing from
2.03 persons per household to 2.02 persons per household.

                                            Demographic Summary
                                                                                                     Annual
                                                                                      % Change
               Description                    2000          2009          2014                       Change
                                                                                      2009-2014
                                                                                                    2009-2014
             Population                  13,763       13,544         13,689                 1.1%          29.0
            Households                    6,539         6,588         6,696                 1.6%          21.6
          Households 65+                  1,358         1,354         1,560                15.2%          41.2
       Average Household Size              2.08          2.03          2.02                -0.5%
        Owner-occupied HHs                3,110         3,134         3,152                 0.6%            3.6
        Renter Occupied HHs               3,429         3,454         3,544                 2.6%           18.0
            Median Age                     37.9          39.9          40.8
Sources: US Census Bureau, ESRI BIS estimates for 2009 and projections for 2014

Village of Shorewood Population/Age Distribution

                           Village of Shorewood Population/Age Distribution
                                             2000 – 2014
                                     2000                          2009                        2014
  Population by Age    Number       Percent       Number        Percent       Number                  Percent
         0-4                 668         4.9%           643          4.7%           662                   4.8%
         5–9                 802         5.8%           617          4.6%           619                   4.5%
        10 - 14              871         6.3%           647          4.8%           607                   4.4%
        15 - 19              783         5.7%           726          5.4%           586                   4.3%
        20 - 24              916         6.7%         1,031          7.6%           925                   6.8%
        25 - 34            2,261       16.4%          2,123         15.7%         2,383                  17.4%
        35 - 44            2,117       15.4%          1,959         14.5%         1,867                  13.6%
        45 - 54            2,205       16.0%          1,983         14.6%         1,845                  13.5%
        55 - 64            1,142         8.3%         1,835         13.5%         1,860                  13.6%
        65 - 74              968         7.0%           949          7.0%         1,334                   9.7%
        75 - 84              744         5.4%           687          5.1%           646                   4.7%
         85+                 286         2.1%           344          2.5%           355                   2.6%
             Total        13,763         100%        13,544          100%        13,689                  100%
 Sources: US Census Bureau, ESRI BIS estimates for 2009 and projections for 2014
                                                                                           Shorewood, WI
                                                                                                 Page 97

Village of Shorewood Household Distribution Demographic Summary

                              Village of Shorewood Household Distribution
                                                                           %                 Average
                                       2009                2014
                     2000                                              Change                 Annual
  Age Cohort                         ESRI BIS            ESRI BIS
                    Census                                             2009 to               Increase
                                     Estimated           Projected
                                                                         2014              2009 to 2014
      <25               500               426               341              -20.0%                 -17.0
     25-34            1,374             1,271             1,422               11.9%                  30.2
     35-44            1,250             1,192             1,116               -6.4%                 -15.2
     45-54            1,338             1,216             1,120               -7.9%                 -19.2
     55-64              721             1,129             1,137                0.7%                   1.6
     65-74              604               612               843               37.7%                  46.2
      75+               754               742               717               -3.4%                  -5.0
     Total            6,541             6,588             6,696                1.6%                  21.6
Sources: US Census Bureau, ESRI BIS estimates for 2009 and projections for 2014

Seniors
ESRI BIS projects the senior household growth to be greater than that of the average general household
growth. The senior household growth is projected at 15.2 percent from 2009 to 2014, adding approximately 41
senior households annually.

                           Village of Shorewood Senior (Age 65+) Households

                                                                      %            Average
                                               2009          2014
               Age of             2000                             Change           Annual
                                             ESRI BIS      ESRI BIS
             Householder         Census                            2009 to         Increase
                                             Estimated     Projected
                                                                     2014       2009 to 2014
               65-74               604          612          843      37.7%                46.2
                75+                754          742          717      -3.4%                -5.0
          Households 65+         1,358        1,354        1,560      15.2%                41.2
        Sources: US Census Bureau, ESRI BIS estimates for 2009 and projections for 2014
                                                                                             Shorewood, WI
                                                                                                   Page 98

 Income Target
 The following table shows the distribution of household income by age of householder in the Village of Shorewood.
 ESRI BIS estimates that in 2009 there are approximately 2,664 households with incomes between $0 and $49,999
 and of these 1,850 households were under the age of 65 and 814 households were over the age of 65. Although
 this information does not match the proposed development’s targeted incomes exactly, it provides insight when
 examining the depth of the workforce housing market. A more detailed penetration analysis will be presented later
 in this report to more closely determine the number of age and income qualified households.

                           Village of Shorewood Household Income by Age
                                           2009 Estimated
  HH Income Base       < 25    25-34       35-44       45-54          55-64        65-74        75+       Totals
        Total           426     1,271      1,192       1,216           1,129        612         742       6,588
      <$15,000             75       42          54          23             105         137         160       596
 $15,000 to $24,999       106       89          54          31              46          49         159       534
 $25,000 to $34,999        42      135          53          56              81          56         119       542
 $35,000 to $49,999        81      220         172         148             237          63          71       992
 $50,000 to $74,999        62      318         290         218             201          92          78     1,259
 $75,000 to $99,999        41      381         207         362             121          66          77     1,255
$100,000 to $149,999        6       33         180         159             191          80          45       694
$150,000 to $199,999        8       23          79         114              96          35          28       383
$200,000 to $249,999        5       17          37          51              26          15           4       155
$250,000 to $499,999        0       13          53          48              21          16           1       152
     $500,000 +             0         0         13           6               4           3           0        26
 Median HH Income    $ 32,115 $ 58,966 $ 71,654 $ 81,584             $ 59,532     $ 50,186    $ 28,573
 Average HH Income $ 42,380 $ 66,906 $ 100,496 $ 104,732             $ 83,411     $ 73,709    $ 46,032
  Sources: US Census Bureau, ESRI BIS estimates for 2009

                           Village of Shorewood Household Income by Age
                                  2009 Estimated Under the age of 65
           HH Income Base       < 25      25-34       35-44       45-54            55-64       Totals
                 Total          426       1,271       1,192       1,216            1,129       5,234
               <$15,000              75        42           54         23              105         299
          $15,000 to $24,999       106         89           54         31               46         326
          $25,000 to $34,999         42       135           53         56               81         367
          $35,000 to $49,999         81       220         172         148              237         858
          $50,000 to $74,999         62       318         290         218              201       1,089
          $75,000 to $99,999         41       381         207         362              121       1,112
         $100,000 to $149,999         6        33         180         159              191         569
         $150,000 to $199,999         8        23           79        114               96         320
         $200,000 to $249,999         5        17           37         51               26         136
         $250,000 to $499,999         0        13           53         48               21         135
              $500,000 +              0          0          13          6                4          23
          Median HH Income    $ 32,115 $ 58,966 $ 71,654 $ 81,584                 $ 59,532
          Average HH Income   $ 42,380 $ 66,906 $ 100,496 $ 104,732               $ 83,411
             Sources: US Census Bureau, ESRI BIS estimates for 2009
                                                                                       Shorewood, WI
                                                                                             Page 99

                 Village of Shorewood Detailed Senior Household Income by Age
                                        2009 Estimated
          HH Income Base      65-69      70-74       75-79       80-84        85+       Totals
                Total          353        259         295          212        235       1,354
              <$15,000             71         66           60          48         52        297
         $15,000 to $24,999        27         22           59          49         51        208
         $25,000 to $34,999        34         22           46          33         40        175
         $35,000 to $49,999        37         26           27          21         23        134
         $50,000 to $74,999        53         39           34          21         23        170
         $75,000 to $99,999        39         27           32          23         22        143
        $100,000 to $149,999       49         31           19          11         15        125
        $150,000 to $199,999       22         13           13           6          9         63
        $200,000 to $249,999        9           6           4           0          0         19
        $250,000 to $499,999       10           6           1           0          0         17
             $500,000 +             2           1           0           0          0           3
         Median HH Income    $ 52,546 $ 45,433 $ 30,419 $ 27,111            $ 27,864
         Average HH Income   $ 77,149 $ 69,019 $ 50,618 $ 42,010            $ 43,902
            Sources: US Census Bureau, ESRI BIS estimates for 2009

                         Village of Shorewood Household Income by Age
                                           2000 Actual
  HH Income Base       < 25     25-34       35-44      45-54      55-64      65-74       75+       Totals
        Total          500      1,374       1,250       1,338      721        604        754       6,541
      <$15,000            126        70        125          63        100        154        227       865
 $15,000 to $24,999       140       131         74          56         59         47        193       700
 $25,000 to $34,999        95       282         79         118         59         78        130       841
 $35,000 to $49,999        69       255        191         183        135         82         71       986
 $50,000 to $74,999        59       334        286         263        141         95         66     1,244
 $75,000 to $99,999        11       218        139         247         50         43         31       739
$100,000 to $149,999        0        33        207         214        113         62         36       665
$150,000 to $199,999        0        12         47          70         39         13          0       181
     >$200,000              0        39        102         124         25         30          0       320
 Median HH Income    $ 23,539 $ 44,530 $ 64,124 $ 73,135         $ 51,173   $ 38,471   $ 22,298
 Average HH Income $ 27,233 $ 56,673 $ 86,638 $ 99,675           $ 72,796   $ 62,214   $ 31,115
    Sources: US Census Bureau, ESRI BIS estimates for 2009
                                                                                                  Shorewood, WI
                                                                                                       Page 100

                              Village of Shorewood Household Income by Age
                                              2014 Estimated
  HH Income Base      < 25     25-34       35-44         45-54            55-64        65-74        75+         Totals
        Total         341       1,422       1,116        1,120             1,137        843         717         6,696
      <$15,000            63        43           52           23                99         163         159         602
 $15,000 to $24,999       84        87           51           28                50          62         149         511
 $25,000 to $34,999       32       133           36           44                77          67         109         498
 $35,000 to $49,999       60       214          139          114               219          79          59         884
 $50,000 to $74,999       51       402          292          213               219         151          91       1,419
 $75,000 to $99,999       36       445          203          331               109         107          79       1,310
$100,000 to $149,999       5        41          162          147               201         109          42         707
$150,000 to $199,999       6        29           80          117               107          50          23         412
$200,000 to $249,999       4        16           30           48                27          23           4         152
$250,000 to $499,999       0        12           55           48                24          26           2         167
     $500,000 +            0          0          16            7                 5           6           0          34
 Median HH Income $ 31,814 $ 61,573 $ 73,473 $ 82,770                    $ 61,652     $ 56,319    $ 28,845
 Average HH Income $ 42,508 $ 68,149 $ 105,389 $ 109,112                 $ 86,982     $ 80,547    $ 46,357
   Sources: US Census Bureau, ESRI BIS projections for 2014

  Household by Size
  In 2000, 6,455 of the 6,539 (98.7 percent) occupied units in the Village of Shorewood were occupied by one to
  five people. This is a likely indicator that that approximately 99 percent of the rental demand in the Village of
  Shorewood is for efficiencies, one, two, and three-bedroom units for a typical rental development. This ratio
  suggests that existing and future multifamily rental units should target a mix of about 99 percent efficiencies,
  one, two, and three-bedroom units. The proposed development provides housing options for families of up to
  five persons and matches the typical renter profile in the Village of Shorewood.

                                                Household by Size
                                                  2000 Census
                          Households by Size         Number                     Percent
                                  Total                6,539                     100%
                           1 Person Household           2,585                     39.5%
                           2 Person Household           2,170                     33.2%
                           3 Person Household             886                     13.5%
                           4 Person Household             595                      9.1%
                           5 Person Household             219                      3.3%
                           6 Person Household              63                      1.0%
                          7+ Person Household              21                      0.3%
                              Source: US Census Bureau
                                                                                            Shorewood, WI
                                                                                                 Page 101

 Household by Tenure
 ESRI BIS estimated that in 2009, 47.6 percent of the occupied households in the Village of Shorewood owned
 their homes, while 52.4 percent were renters.

                                          Census 2000                  2009                       2014
            Description
                                       Number    Percent        Number     Percent         Number    Percent
              Total                     6,539     100.0%         6,588      100.0%          6,696     100.0%
Owner-occupied HHs/Householder          3,110     47.6%          3,134      47.6%           3,152      47.1%
Renter Occupied HHs/Householder         3,429     52.4%          3,454      52.4%           3,544      52.9%
 Source: US Census Bureau

 Automobile Ownership
 The 2000 U.S. Census Data indicated that 789 (12.1 percent) of the households in the Village of Shorewood do
 not own an automobile. The average number of vehicles available is 1.4 per household.

                           Number of Cars per HH                    Total        Percent
                                   Total                            6,539         100%
                                   None                               789         12.1%
                                     1                              3,038         46.5%
                                     2                              2,219         33.9%
                                     3                                419          6.4%
                                     4                                  51         0.8%
                                    5+                                  23         0.4%
                     Average Number of Vehicles Available              1.4

                  Source: US Census Bureau
                                                                                                Shorewood, WI
                                                                                                     Page 102

Employment and Economy
Employment plays an important role in multifamily housing demand. A strong and stable employment base is
typically reflected in a low vacancy rate for the multifamily housing market. This relationship has held true for
the Village of Shorewood during the past few years, which has experienced a stable and growing employment
base, resulting in a consistent demand for multifamily housing.

As shown in the following table, the employment base of the Village of Shorewood has less manufacturing and
more professional/educational/health/social services than the State as a whole.

                          Civilian Employed Population 16+ by Industry, 2000
                                        Village of Shorewood
                                                                        Village of            State of Wisconsin
                                                                       Shorewood
                                                                    Employed Percent         Employed      Percent
Agriculture/Forestry/Fishing/Hunting/Mining                              15        0.2%         75,418        2.8%
Construction                                                            159        2.1%        161,625        5.9%
Manufacturing                                                           772      10.0%         606,845       22.2%
Wholesale Trade                                                         183        2.4%         87,979        3.2%
Retail Trade                                                            779      10.1%         317,881       11.6%
Transportation/Warehousing/Utilities                                    173        2.2%        123,657        4.5%
Information                                                             307        4.0%         60,142        2.2%
Finance/Insurance/Real Estate/Rental/Leasing                            748        9.7%        168,060        6.1%
Professional/Scientific/Mgmt/Admin/Waste Mgmt Services                1,329      17.2%         179,503        6.6%
Educational/Health/Social Services                                    2,365      30.7%         548,111       20.0%
Arts/Entertainment/Recreation/Accommodation/Food Services               469        6.1%        198,528        7.3%
Other Services                                                          314        4.1%        111,028        4.1%
Public Administration                                                    96        1.2%         96,148        3.5%
     Totals                                                           7,709     100.0%       2,734,925      100.0%
      Source: US Census Bureau
                                                                                                   Shorewood, WI
                                                                                                        Page 103

APPENDIX B: Statement of Limiting Conditions

1. In the event that the client provided a legal description, building plans, title policy and/or survey, etc., the
   consultant has relied extensively upon such data in the formulation of all analyses.

2. The legal description as supplied by the client is assumed to be correct and the author assumes no
   responsibility for legal matters, and renders no opinion of property title, which is assumed to be good and
   merchantable.

3. All information contained in the report which others furnished was assumed to be true, correct, and reliable.
   A reasonable effort was made to verify such information, but the author assumes no responsibility for its
   accuracy.

4. The report was made assuming responsible ownership and capable management of the property.

5. The sketches, photographs, and other exhibits in this report are solely for the purpose of assisting the
   reader in visualizing the property. The author made no property survey, and assumes no liability in
   connection with such matters. It was also assumed there is no property encroachment or trespass unless
   noted in the report.

6. The author of this report assumes no responsibility for hidden or unapparent conditions of the property,
   subsoil or structures, or the correction of any defects now existing or that may develop in the future.
   Equipment components were assumed in good working condition unless otherwise stated in this report.

7. It is assumed that there are no hidden or unapparent conditions for the property, subsoil, or structures,
   which would render it more or less valuable. No responsibility is assumed for such conditions or for
   engineering, which may be required to discover such factors.

8. The investigation made it reasonable to assume, for report purposes, that no insulation or other product
   banned by the Consumer Product Safety Commission has been introduced into the Subject premises.
   Visual inspection by the consultant did not indicate the presence of any hazardous waste. It is suggested
   the client obtain a professional environmental hazard survey to further define the condition of the Subject
   soil if they deem necessary.

9. An evaluation of the market for a property is made as of a certain day. Due to the principles of change and
   anticipation the market estimate is only valid as of the date of valuation. The real estate market is non-static
   and change and market anticipation is analyzed as of a specific date in time and is only valid as of the
   specified date.

10. Possession of the report, or a copy thereof, does not carry with it the right of publication, nor may it be
    reproduced in whole or in part, in any manner, by any person, without the prior written consent of the author
    particularly as to market rents and projected absorption, the identity of the author or the firm with which he
    or she is connected. Neither all nor any part of the report, or copy thereof shall be disseminated to the
    general public by the use of advertising, public relations, news, sales, or other media for public
    communication without the prior written consent and approval of the consultant. Nor shall the consultant,
    firm, or professional organizations of which the consultant is a member be identified without written consent
    of the consultant.

11. The author of this report is not required to give testimony or attendance in legal or other proceedings
    relative to this report or to the Subject unless satisfactory additional arrangements are made prior to the
    need for such services.
                                                                                                  Shorewood, WI
                                                                                                       Page 104

12. The opinions contained in this report are those of the author and no responsibility is accepted by the author
    for the results of actions taken by others based on information contained herein.

13. All applicable zoning and use regulations and restrictions are assumed to have been complied with, unless
    nonconformity has been stated, defined, and considered in the report.

14. It is assumed that all required licenses, permits, covenants or other legislative or administrative authority
    from any local, state, or national governmental or private entity or organization have been or can be
    obtained or renewed for any use on which the value estimate contained in this report is based.

15. On all market studies, subject to satisfactory completion, repairs, or alterations, the report and market rents
    and absorption are contingent upon completion of the improvements in a workmanlike manner and in a
    reasonable period of time. A final inspection and value estimate upon the completion of said improvements
    should be required.

16. All general codes, ordinances, regulations or statutes affecting the property have been and will be enforced
    and the property is not subject to flood plain or utility restrictions or moratoriums, except as reported to the
    consultant and contained in this report.

17. Acceptance of and/or use of this report constitute acceptance of all assumptions and the above conditions.
    Estimates presented in this report are not valid for syndication purposes.

By:




  Signature                                              Signature

  Michael D. Hershberger, Senior Manager                 Kate Crowley, Senior Consultant
  Baker Tilly Virchow Krause LLP                         Baker Tilly Virchow Krause LLP

  April 30, 2010                                         April 30, 2010
  Date                                                   Date

				
DOCUMENT INFO