January 11, 2019
Press ReleaseKeiichi Yoshii, President and COO
Daiwa House Industry Co., Ltd.
3-3-5 Umeda, Kita-ku, Osaka

Daiwa House Industry to Participate in Urban Rental Housing Development Projects
for the Millennial Generation in the United States:

Overview of the Nashville Project and Phoenix Project
Daiwa House Industry Co., Ltd. (Head Office: Osaka, President and COO: Keiichi Yoshii;
hereinafter “Daiwa House”) is pleased to announce that we have determined the overview of ourNashville Project and Phoenix Project.

These are rental housing development projects we areworking on in Nashville, Tennessee and Phoenix, Arizona in the United States of America(hereinafter “the U.S.”).
These projects will be the first to be performed by Daiwa House California, a local subsidiary ofDaiwa House, with Akara Partners – a real estate investment, development and operatingcompany headquartered in Chicago, Illinois in the U.S.
The Nashville Project and Phoenix Project are projects under the Kenect brand developed by
AKARA Partners.

Kenect is a concept for urban rental housing in conveniently located urban

areas in the U.S., suitable for “Live, Work, and Play,” and tailored to the lifestyles of themillennial generation*1.
This brand is able to achieve rents lower than the market average for class A apartments byutilizing efficient and compact floorplans, with a focus on studios and one bedroom units tailoredto the millennial generation.

More than half of these units come furnished, so that it is possible

to start living in them immediately after moving in. Full bathrooms (shower, sink, and toilet) will
be installed in each room so that it is possible to maintain privacy even in three bedroom units,with communal living, dining and kitchen areas.
units will be used for shared housing.

This is done under the assumption that these

Dining establishments (e.g. restaurants and food courts)

and shared offices will be located on the lower floors for use by anyone, and a fitness center,swimming pool, lounges, dog park and roof garden with barbecue areas will be available
exclusively for residents.
*1: This is the generation born from around 1982 to 2000. The size of the population in the U.S. is approximately 83.7 million
people.

-1-Image of the Appearance of the Nashville ProjectImage of the Appearance of the Phoenix Project

Nashville ProjectThis project is located in central Nashville – the state capital of Tennessee. The population of theNashville metropolitan area*2 is approximately 1.9 million people*3 (2017), an increase ofapproximately 13% over eight years from approximately 1.68 million people in 2010. (OverallU.S. population increase during this period was approximately 5%.)This is an area where

there has been a remarkable increase in the population of mainly young people in recent years.
The area surrounding this project is known for its thriving music industry and healthcare
industry.

The project is located in “Music Row,” home to numerous business related to country

music and other types of music. In addition, the head offices of more than 250*4
healthcare-related companies are found in the Nashville metropolitan area.

These include thehead office of the Hospital Corporation of America – the world’s largest private healthcare
provider.

In terms of education-related facilities, there are multiple universities in the suburbs.

More than 12,000 students are enrolled at Vanderbilt University*5 which represents theNashville metropolitan area.

The project is conveniently located within walking distance of anarea lined with restaurants, bars, and other dining establishments.
There will also be a stage where live performances can be held and a recording studio in thisproject.

This will contribute to stimulating the music industry in this area.

*2: An area that includes Nashville, Davidson, Murfreesboro and Franklin.
*3: Census Bureau, Population Estimates.
*4: Nashville Area Chamber of Commerce.
*5: Vanderbilt University placed 14th in the U.S. News & World Report “2019 Best Colleges Ranking”.

Image of the Lobby

Image of the Lounge-2-

Image of the Concert StageProperty Overview◆NameNashville Project

Location

1815 Division Street, Nashville, TN

Total number of units,structure and size

420 units in 20 floors above ground with a reinforced concrete
structure
1F: Restaurants, food court and indoor stage
2F: Shared offices
4F: Shared offices and recording studio
2F to 6F: Parking garage (space for 444 vehicles)
7F: Outdoor pool, fitness center, roof garden, dog park andresident-only lounge
7F to 20F: Residences (420 units)

Building use

Site area

4,825 m2

Building area

3,538 m2

Total floor space

49,302 m2

Residential area per unit

33.54 m2 to 113.53 m2

Floor plans

246 studio units, 134 one-bedroom units, and 40 three-bedroomunits (244 furnished units)

Rent

230,000 yen to 239,999 yen per month

Start of construction

July 31, 2018

Completion (planned)

June 2020

Rentable area

Occupancy (planned)

20,426 ㎡

December 2019

Phoenix ProjectThis project is located in central Phoenix – the state capital of Arizona. The population ofPhoenix is approximately 1.68 million people*3 – the fifth largest in the U.S. The population ofthe Phoenix metropolitan area*6 is approximately 4.74 million people*3 (2017) – the eleventh
largest in the U.S.

This population has increased by approximately 12% over eight years fromapproximately 4.2 million people in 2010. (Overall U.S. population increase during this period
was approximately 5%.)This is an area where there has been a remarkable increase in thepopulation of mainly young people in recent years.
In addition, this project has excellent access to public transportation, being located in front ofboth Van Buren Station, one of the stops for the light rail (Valley Metro), and Central Station,
where the buses of 24 routes stop. It is also approximately 15 minutes by light rail to Phoenix
Sky Harbor International Airport.
The area surrounding this project is lined with government/administrative facilities (e.g., theArizona State Capitol) and offices. In terms of education-related facilities, this project is rightnext to the Downtown Campus of Arizona State University, where more than 11,000 students areenrolled, and the site of its Thunderbird School of Global Management, which is scheduled forrelocation to this area in 2021.

The project is also located within walking distance toentertainment facilities such as Chase Field, home of the Arizona Diamondbacks, a Major
League Baseball (MLB) team, and Talking Stick Resort Arena, home of the Phoenix Suns, aNational Basketball Association (NBA) team.
*6: An area that includes Phoenix, Mesa and Scottsdale.

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Image of the Lobby



Image of the Rooms

Property Overview

Name

Phoenix Project

Location

355 North Central Avenue, Phoenix, AZ

Total number of units,structure and size

320 units in 23 floors above ground with a reinforced concretestructure
1F: Restaurants and cafes
Mezzanine: Shared offices
2F to 7F: Parking garage (space for 263 vehicles)
8F: Fitness center, dog park and resident-only lounge
8F to 22F: Residences (320 units)
23F: Outdoor pool and roof garden

Building useImage of the Lobby

Site area

2,023 m2

Building area

1,149m2

Total floor space

31,400 m2

Residential area per unit

33.91 m2 to 110.1 m2

Floor plans

232 studio units, 58 one-bedroom units, and 30 three-bedroomunits (218 furnished units)

Rent

160,000 yen to 169,999 yen per monthStart of construction

January 15, 2019

Completion (planned)

November 2020

Rentable area

Occupancy (planned)

19,705 m2

November 2020

Future Overseas Developments
Daiwa House plans to purchase and develop rental housing in large cities (e.g., New Yorkand Los Angeles) through our local subsidiaries in the U.S. At the same time, together withthe single-family housing business of Stanley-Martin Communities LLC in the Daiwa HouseGroup, we are aiming for sales of 79 billion yen in the fiscal year ending March 31, 2019.
Moreover, we intend to develop our business in ASEAN, Australia and other regions where
we are currently expanding with the aim of achieving total overseas sales of 270 billion yen
in the fiscal year ending March 31, 2019.

-4-

AKARA PARTNERS

Akara Partners is a real estate investment, development and operating company headquartered inChicago founded by Rajen Shastri. The company currently has under construction or operations
over $1.5B of transactions primarily in the multifamily space.

The main focus for Akara in thenear term is to continue executing its residential investment and development platforms focusedboth on the millennial and baby boomer generations.
Akara’s investment process centers around a fundamental understanding of macro trends
including economic factors, demographics as well as changes in technology and human behavior.
This process, when combined with the firm’s deep understanding of local real estate industry
trends, culminates in a data driven approach to help the firm generate superior risk adjusted
returns.

【Daiwa House’s U.S. Projects】

Overview of Daiwa House Local Subsidiary

Company name:Daiwa House California

Location:

2029 Century Park East, Suite 2570N, Los Angeles, CA 90067

Investment company:

Daiwa House USA Inc.
*Wholly owned subsidiary of Daiwa House Industry Co., Ltd.

Capital:$31,681,398

Number of employees:

7 (of these, five are seconded employees)

TEL:+1 (424) 335-2300

Inquiries
Corporate Communications Department
Tokyo PR Group: +81-3-5214-2112
PR Group: +81-6-6342-1381-5-