TD Bank has committed to finance the latest phase of Valley Brook Village, a development that will create 50 additional units of affordable rental apartments with onsite support services for homeless and disabled veterans.

The bank has provided a $6 million construction loan to the Affordable Housing and Services Collaborative Inc. and Peabody Properties Inc. through its Commercial Real Estate Group. The funds will aid the expansion of the existing 62-unit Valley Brook Village development, one of the first Veterans Affairs Supportive Housing communities for homeless Veterans.

TD Bank is funding the development of a three-story building consisting of 50, one-bedroom apartments, situated around a common green to complement the existing village-style community. The development, which is being built by development partner, Windover Construction Inc., will provide permanent housing for homeless and at-risk veterans of all ages and branches of the military. In addition, supportive services and amenities designed to assist veterans in meeting their personal and career goals will be provided by Community Hope and coordinated by Peabody Resident Services, Inc.

"At TD Bank, we celebrate the dedication of all military personnel for their commitment to our country," said Thomas McColgan, Vice President at TD Bank. "We are focused on projects and resource groups geared towards our veterans, so that they can be part of a supportive community that will enable them to attain their goals and continue to live meaningful lives after military service."

Building on the success of Phase I, the development will be accessible to nearby health-care services and public transportation. Residents will have access to a shuttle service, landscaped walkways, shared outdoor spaces and a state-of-the art learning center. The development will also include space for onsite case management, education and employment services.

"TD Bank has been instrumental in supporting our effort to provide affordable housing for veterans," said Melissa Fish-Crane, principal and COO of Peabody Properties Inc. "This project will build on the success of Phase I, helping to not only expand the close-knit Valley Brook community, but also create a supportive environment with comprehensive services, so veterans are empowered to overcome the many challenges they face after returning home from service."

Valley Brook Village is built on land provided through the Department of Veterans Affairs Enhanced-Use Lease Program on the VA New Jersey Health Care campus in Bernards Township. The township also provided funding for the project from its Affordable Housing Trust Fund. Additional funding was also awarded from the County of Somerset's Homeless Trust Fund Program, the VA and several private foundations, including The Home Depot Foundation.

"This development has been crucial for the veterans who reside here; a place to call home for those who have served our country," said Michael Armstrong, CEO of Community Hope Inc. "The expansion of Valley Brook Village will enable us to continue growing this special community, so that more veterans can benefit from the services and camaraderie that we're able to provide." Construction has started and is expected to be completed by September 2019.

Freddie Mac has appointed Deborah Jenkins executive vice president and head of its multifamily business, effective immediately. Jenkins also has assumed a role as member of the company’s senior operating committee.

“Debby’s transition into her role as head of the multifamily business has progressed very well, and I am pleased to announce that she will officially assume these duties effective immediately, rather than on the originally-planned January 1 date,” said Donald Layton, CEO of Freddie Mac. “She is dedicated to ensuring this growing segment of our company continues to be an industry leader, innovator and a critical financier of rental housing that is affordable to low- and moderate-income families.”

In September, Freddie Mac reported the retirement of Layton in the second half of 2019, the commencement of the CEO Succession Plan and the elevation of David Brickman as president, after a stint as head of multifamily for the company.

Since 2010, Jenkins has led multifamily, underwriting and credit for the company, overseeing all credit approvals and due-diligence processes, asset level securitization activities, as well as credit policies and governance for all of multifamily’s products. Her approach has produced delinquency rates among the very lowest in the industry and helped ensured mortgage liquidity. Jenkins has spearheaded enhancements in the company’s underwriting process to support its securitization program, including its signature K and SB Deals.

The commercial real estate market is expected to be strong through year-end.

"Our latest Sentiment Index finds commercial real estate industry leaders experiencing continued positive market conditions and cautiously predicting solid performance into 2019,” said Jeffrey DeBoer, president and CEO of the Real Estate Roundtable, discussing the results of the organization’s Q4 2018 Economic Sentiment Index.

“Concerns exist about interest rate and construction cost increases, as well as labor shortages.  However, these concerns have not yet caused significant market disruption," said DeBoer. "With some exceptions,

[caption id="attachment_7411" align="alignleft" width="150"] Jeffrey DeBoer[/caption]

supply and demand in major markets remains essentially in balance, and access to debt and equity remains strong. Disciplined, not aggressive, development and investment are the current watchwords of smart real estate executives.”

Key findings of the report are as follows:

• The Q4 index came in at 50, a two-point drop from Q3. Most suggest that current market conditions are positive and expect such conditions to continue into the new year. However, some responders continue to question, "How much longer can this last?"
• Responders pointed to the increase in costs for constructions projects and the corresponding decline in development returns as a concerning market factor. As a result, fewer responders were highly optimistic about market conditions in 2019 as yield becomes increasingly hard to find.
• For the first time in several quarters, a large proportion of responders are indicating a belief that asset values will start declining. However, pricing is expected to stay relatively strong for assets in major markets.
• Responders feel debt and equity capital are plentiful in today's market. Equity investors and lenders alike continue to show strong appetite for real estate.

Ninety percent of survey participants report Q4 2018 asset values today are "about the same" or "somewhat higher" compared to this time last year. Looking ahead, a minority of participants said they expect values to be "somewhat lower" one year from now with 55% of respondents seeing no significant value declines.