Residential building in November was $327.5 billion (annual rate), down 1% from October. Single family housing was unchanged from its October pace, staying basically at the plateau that’s been present for much of 2018. Multifamily housing receded 3% in November following its 20% rise in October, according to Dodge Data & Analytics.

“Amidst the monthly ups-and-downs, the construction start statistics show that on balance the construction industry expansion was still underway in 2018, although the rate of growth has slowed considerably from the 7% gains for total construction reported during 2016 and 2017,” said Robert Murray, chief economist for Dodge Data & Analytics. “With regard to residential building, multifamily housing has seen renewed growth in 2018 after its loss of momentum in 2017, but single-family housing has essentially plateaued following the advances registered at the outset of 2018.”

There were 10 multifamily projects valued at $100 million or more that reached groundbreaking in November, compared to 13 such projects in October. The large multifamily projects in November included the $215 million Victory Park Apartments in Dallas, the $200 million Spring Street North block development in Seattle, and the $160 million multifamily portion of a $190 million mixed-use development in Philadelphia. The top five metropolitan areas ranked by the dollar amount of multifamily starts in November were--New York, Washington, Boston, Los Angeles, and Seattle.

During the January-November period of 2018, residential building increased 6% compared to last year. Single family housing advanced 6%, showing some deceleration relative to the 9% gain reported during the first eleven months of 2017. By major region, this was the 2018 year-to-date pattern for the dollar amount of single-family housing--the West, up 10%; the South Atlantic, up 6%; the South Central, up 5%; the Midwest, up 2%; and the Northeast, unchanged from its 2017 amount.

Multifamily housing climbed 8% year-to-date, rebounding after the 7% decline reported during the first eleven months of 2017. Through the first 11 months of 2018, the top-five metropolitan areas ranked by the dollar amount of multifamily starts, with their percent change from a year ago, were New York, up 3%; Boston, up 80%; Washington DC, up 28%; Miami, up 46%; and Seattle, up 29%. Metropolitan areas ranked 6 through 10 were Los Angeles, down 25%; San Francisco, up 20%; Dallas-Ft. Worth, up 33%; Atlanta, down 17%; and Philadelphia, unchanged from its 2017 amount.

FCP and Terwilliger Pappas Multi Family Partners completed two separate transactions totaling $128.6 million. The first, Solis Waverly, was sold for $84.4 million to  Lan Properties/Lantower Residential. In a separate transaction, Solis Ballantyne was sold for $44.2 million. FCP is a privately held real estate investment company that has more than $6 billion in real estate assets acquired since its founding in 1999.

"FCP felt fortunate to develop these properties with Terwilliger Pappas, the Southeast's top developer of best in class multifamily communities," said FCP Managing Partner, Lacy Rice. "Both communities set a high standard, contributing to the success of their distinctive neighborhoods."

"Solis Waverly and Solis Ballantyne provided an excellent opportunity to partner with FCP on two of the Southeast's most desirable sites," said Terwilliger Pappas’ CEO Peter Pappas. "Our team's interest in developing best in class communities aligns well with FCP's strategy of delivering superior results to their investors. We look forward to pursuing new opportunities with FCP."

Solis Waverly, with development completed in 2016, is a 375-unit luxury multifamily project in Waverly, N.C., a pedestrian-friendly, master planned community with an urban feel on 90 acres.

Solis Ballantyne, also completed in 2016, is a 194-unit, is located in one of Charlotte's top suburban submarket, Ballantyne. Only two multifamily properties have sold in the last 10 years in Ballantyne (other than Waverly), with no Class-A sales. Charlotte's job and population growth continue to exceed peer cities. The city is third in population growth in 2017 for large U.S. cities and boasts population growth of 155% from 2000-2017 for the Ballantyne submarket.

Hunt Real Estate Capital provided agency loans of around $22.5 million to finance the acquisition of two multifamily properties located in Arizona.

The Barone Group and strategic partners backed both deals. Duke Stone at Churchill Capital Company represented the owners on transactions. Acquisition, investment and asset management services were provided by Bear Holdings Group LLC.

"These properties are being acquired as part of a 1031-exchange from the sale of another property that Hunt Real Estate Capital financed for the borrower in 2016," noted Colin Cross, Director at Hunt Real Estate Capital. "The borrower had a tight timeframe to close the acquisitions and allocate their 1031 funds, so we were thrilled Fannie Mae and Freddie Mac” could provide financing options during a very volatile period in the debt markets."

The properties are as follows:

• Canyon Woods Apartments:The property was built in 1984 and features 224 apartment units and is located in Phoenix. The community is situated on approximately seven acres and consists of 12, two-story buildings. It is well maintained and features a quiet, family-friendly environment. Hunt Freddie Mac loan facility featuring a 12-year term with six years of interest only. Upon acquisition, the borrower plans to implement a $2 million capital improvements plan to complete interior and exterior upgrades to improve property operations and better compete within the local market.
• Shadow Rose Apartments: The property was built in 1985 and features 148 apartment units. The community is situated on approximately 5.86 acres of land, and consists of 14, two-story buildings in Glendale, Ariz. It is in great physical condition and provides workforce housing for the local community. Hunt provided a Fannie Mae loan facility featuring a 12-year term with nine years of interest only. The transaction qualified for Fannie Mae's Green Rewards loan program where the borrower will implement water-saving improvements to lower future utility expenses. in return, they locked an interest rate that was 83 basis points below standard pricing. In addition, the borrower plans to implement a capital improvements plan of over $1.5 million to modernize interiors and common area amenities.

 CIT Bank has unveiled a new community investment loan program that provides construction loans and permanent financing for multifamily affordable housing and community facilities across Southern California. CREA LLC, a real estate advisory firm, will support CIT with the affordable housing portion of the program.

"CIT is pleased to expand its community investment efforts in Southern California to ensure residents have access to affordable housing as well as essential community services such as health centers, schools and public safety centers," said Steve Solk, president of consumer banking for CIT. "This new program builds on our investments in affordable housing developments and low-income housing tax credits to serve our local community."

"CREA is proud to partner with CIT to help create high quality affordable housing across Southern California," said Gary Rodney, chairman of CREA.  "Together we will provide an outstanding debt and equity financing platform, streamlined process and competitive terms for local affordable housing developers."

Luxury Apartments on Tap for Melbourne, Fla.

Multiverse Global plans to begin construction of 600 luxury apartments at the Space Coast Town Center. Located in Melbourne, Fla., the apartments will be built in conjunction with JMG Realty and Integra Land Company, two experienced firms in the development and management of multifamily properties.

"These residences will be geared toward discretionary renters who choose the convenience and ease of living in Space Coast Town Center with its amenities, services, and restaurants, all in a walkable environment," said Edgar Jones, co-founder of Multiverse Global. "We anticipate that the community's architectural style, along with its gym, pool, and entertainment areas, will be comparable to the best of those found in Florida's major urban areas.