New Haven County Market Overview March 2012 Presented by:

1. New Haven County Market Overview March 2012 Presented by: Steven K. Inglese, SIOR Brokers of Investment Properties & Development Sites www.TheNewHavenGroup.com 203-773-3060

2. Introduction • 2011 – The lost year! Is 2012 the year of the big thaw? • The news of the year • 2011 and 2012 market transactions • Where do we go from here?

3. The News of the Year • High Tech Manufacturing • Yale New Haven Hospital and • St. Raphael’s to Merge • Quinnipiac Expands Graduate Campus • New Medical School • 2,000 new graduate students to North Haven • Yale’s Endowment back over $20 billion

4. 2011 Transactions

5. Annual Sale Transactions Per Conn-Comp

6. Apartment Sale Transactions Sunset Ridge, New Haven Meeting House –Meriden 296 units + 13k sf retail $53k/unit - $16.25 mm 7.6% going in cap rate 1 & 2 Bd and Town houses Solomon Organization, buyer • 312 units – affordable housing • Sold for $45k/unit - $14MM • Belfonti Associates purchased from Winn Residential

7. Value Added Apartment Sales Trolley Crossing – East Haven 492 Fountain – New Haven 72 units (1 and 2 beds) $59k/unit $4.25MM Pike International buyer • 214 units • 126 efficiencies and 88 -1 Bedrooms • Sold for $45k - $9.6 mm • 7% going in cap rate • Beachwold Residential buyer

8. 9 Dixwell Ave, New Haven • 21 units + Ground Floor Retail, mostly studios • $1,900,000 - $86k/unit • Redevelopment Play for Yale Univ.

9. Apartments –New Haven County • City of New Haven Apt Vacancy lowest in Country at 1.9% --National average 5.6% • City Class A rents range from $1.75 to $2.77/sf • Suburban Class A rents from $1.25 to $1.90/sf

10. 360 State St – New 500 unit Complex 90% Occupied in 14 months

11. Office to Apartment Conversion Downtown Milford – 1 New Haven Ave Former office building Purchased for Apartment mixed use redevelopment Close to Metro North REO asset Bob Smith - developer

12. Notable Retail Sales Silver Commons, Meriden 500 Derby Ave - Derby • Fedex Kinkos, Starbucks, Pizza Hut • $7.05 MM ($286/sf) – 8% cap / 9% equity return • 26,000 sf- built ‘07 • Loan Assumption $5.1m Washington Trust • 170,000 s/f , multi tenants • $13.7 mm ($81/sf) • 7.3% going in Cap

13. Office Sales Wellpath Buys E. Main St Waterbury $2.2 MM - $77/sf User 1 New Haven Avenue – Milford Apartment Redevelopment • 25,000 s/f office • $2.2 mm ($88/sf) or $62k per apt unit. • $1.5 MM ($63/sf) 432 Washington Ave, North Haven Easter Seals Purchases

14. Medical Office Sales 6 Devine Street, North Haven 115,000 s/f Office Yale New Haven Hospital to purchase from AT&T for Outpatient and Admin. 2560 Dixwell Ave., Hamden 21,000 s/f medical building $6,855,000 ($316/sf) Built in 2007

15. 2011 Office Lease Deals 4 Fairfield Blvd Community Health Network Leases 23,000 sf - $9/sf range At 4 Fairfield Blvd, Wallingford Campus At Greenhill Wallingford Occupies 1st phase of 80,000 sf of 217,000 s/f lease Leases 28,000 s/f -- $21/sf 10 yr

17. 2011 Office Lease Deals IPP – 24,000 sf 538 Preston Ave , Meriden $18.50/sf $ - 40/sf T.I. – 10 yr • Alliant Insurance Services – 15,000 sf • 55 Realty Drive, Cheshire • Moves from Waterbury VNA – 10,000 sf One Hamden Center $19.50/sf - $40/sf T.I. – 10 yr

18. Industrial Sales 69 North Plains Highway, Wallingford 297 State St, North Haven • 65,000 s/f • $34/sf - $2.2MM • Sold to United Concrete (owner user) • 386,000 s/f • $9/sf - $3.9 MM • Former Printing facility • Speculative purchase

19. Industrial Sales 1020 Research Parkway Meriden 205 Edison Rd Orange • 75,000 s/f • $2.5 MM ($33/sf) • Aurora Products (owner user) • 43,000 s/f • $1.25 MM ($30/sf) • Lasership (owner user)

20. 2011-12 Industrial Leases Allied Building Products - 86,000 s/f 780 North Colony Rd Wallingford $3.50/sf NNN CF Paper – 80,000 s/f 351 Morgan Lane West Haven $3.75/sf NNN

21. 2011-12 Manufacturer Leases LQ Group – 12,000 s/f 33 Business Park Drive Branford $6.50/sf NNN Forum Plastics – 34,000 s/f 105 Progress Lane Waterbury $3.65/sf NNN

22. Where’s The Market Going? • Education and Healtcare • Knowledge Based Workers in demand • EDC of New Haven Survey shows 7,500 freelance / self employed workers within the city of New Haven • The Living Experience is what Counts • Access to transit • Entertainment and cultural • Housing

23. Start Up Companies in New Haven • Higher One • Grey Wall Software • Continuity Control • Prometheus Research • SeeClickFix • YouRenew • Optherion • Independent Software • PaperG • Spot on Networks • Retail Optimization • Historx • GSM Nation

24. Start Up Opportunities • The Grove - collaboration and incubator space for start ups • CT Tech at Science Park – high tech incubator space • The Bourse – Downtown collaboration and hoteling space.

25. How are these companies impacting the market? Science Park New Haven Mixed Use $150 million Development Rendering View Before View 140,000 s/f office for Higher One 200 Market Rate apartments, with 20% affordable

26. Downtown Crossing – 400,000 sf Bio tech Building Planned

27. In Closing • Healthcare and Education continuing to lead the charge • Strengthening Manufacturing sector • Apartment Market remains solid • Modest improvement in transactions for 2012

28. New Haven County Market Overview March 2012 Presented by: Steven K. Inglese, SIOR Brokers of Investment Properties & Development Sites www.TheNewHavenGroup.com 203-773-3060