HAMILTON, NJ – Total construction starts fell 2% in November to a seasonally adjusted annual rate of $797.5 billion following a strong gain in October. Residential starts fell 7% during the month, while nonbuilding starts dropped 14%. Nonresidential building construction starts, but, rose 19% in November. Total construction starts fell in three regions, the South Atlantic, West, and Northeast, but rose in two, the Midwest and South Central.
Year-to-date through 11 months, total construction starts were 12% down from the same period in 2019. Nonresidential starts were 25% lower, while nonbuilding starts were down 16%. Residential starts, by contrast, were 3% higher through 11 months. In November, the Dodge Index fell 2% to 169 (2000=100) from the 173 October reading. The Dodge Index was down 24% from a year earlier and 6% lower than its pre-pandemic level in February.
November construction starts were somewhat of a mixed bag, stated Richard Branch, Chief Economist for Dodge Data & Analytics. On the positive side, the gain in nonresidential building starts shows that the recovery from the early months of the pandemic remains on course. If not for the start of a very large bridge and tunnel project in October, nonbuilding starts would really have posted a tepid gain in November. And despite the November decline in single family starts, tremendous positive momentum remains in the housing sector. There remains significant concern, but, about the ability of construction starts to maintain their current pace in the face of rising COVID-19 cases, the uncertain outlook for additional federal stimulus, and the lack of agreement on funding the federal government past Dec 18. While the near-term outlook for starts remains cloudy, the recent deployment of a vaccine in the U.S. raises hope and expectation that 2021 will be a better year.
Nonbuilding construction tumbled in November, dropping 14% to a seasonally adjusted annual rate of $191.8 billion. November s decline was mainly a response to the October start of the $3.6 billion Hampton Roads Bridge and Tunnel project. November s level of nonbuilding construction starts was really higher than the monthly dollar value of starts during the July through September period. In November, environmental public works rose 48% while miscellaneous nonbuilding gained 61%. Starts for highways and bridges, but, fell 26% while the utility/gas plant category lost 59%.
The largest nonbuilding project to break ground in November was the $948 million Capline Marathon Pipeline, which is a 632-mile system that extends from Patoka IL to St. James LA. Also starting in November was the $865 million I-275 Howard Frankland Bridge in Tampa Bay Florida and the $524 million Northwest Water Treatment Facility in Wichita KS.
Through the first 11 months of the year, total nonbuilding starts were down 16% from the same period in 2019. Starts in the highway and bridge category were up 7%, while environmental public works were 6% lower. The miscellaneous nonbuilding category was down 31% on a year-to-date basis, while utility/gas plant category was 45% lower.
Nonresidential building starts went 19% higher in November to a seasonally adjusted annual rate of $249.7 billion. The commercial sector increased 27% as two large office projects got underway. Gains were also seen in the hotel, warehouse, and parking structures categories. Institutional construction starts increased 17% over the month due to gains in healthcare and education. Manufacturing starts, meanwhile, fell 29% in November.
The largest nonresidential building project to get started in November was the $1.3 billion One Madison Avenue office project in New York NY. Also starting was the $940 million Richard Boulevard Office Complex in Sacramento CA and the $615 million Baptist Healthcare Hospital in Pensacola FL.
Year-to-date through the first 11 months of 2020, total nonresidential building starts were down 25%. Commercial starts were 26% lower, while institutional starts were down 15%, and manufacturing starts were 63% lower.
Residential building starts dropped 7% in November to a seasonally adjusted annual rate of $356.1 billion. Single family starts fell 5% over the month and multifamily starts slipped 14%.
The largest multifamily building to break ground in November was the $175 million Simone Residential Tower in San Diego CA. Also starting in November were the $123 million Scotts Run apartments in Tysons VA and the $103 million Hanover Wellesley Residential building in Wellesley MA.
Through the first 11 months of 2020, residential construction starts were 3% higher than the same time period in 2019. Single family starts were up a healthy 10%, but multifamily starts were down 13%.

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RICHARDSON, TX – RealPage, a leading global provider of software and data analytics to the real estate industry, announced it has entered into a definitive agreement to be bought by Thoma Bravo, a leading private equity investment firm focused on the software and technology-enabled services sector, in an all-cash transaction that values RealPage at approximately $10.2 billion, including net debt.
Under the terms of the agreement, RealPage stockholders will receive $88.75 in cash per share of RealPage common stock upon closing of the transaction. The buy price represents a premium of 30.8% over RealPage s closing stock price of $67.83 on December 18, 2020, a premium of 36.5% over RealPage s 30-day volume-weighted average share price through that date, and a premium of 27.8% over RealPage s all-time high closing stock price of $69.47 on December 7, 2020. The RealPage Board of Directors has unanimously approved the agreement with Thoma Bravo and recommends that RealPage stockholders vote in favor of the transaction at the special meeting of RealPage stockholders to be called in connection with the transaction.
Upon completion of the transaction, RealPage expects to continue operating under the leadership of Chairman and CEO Steve Winn and the existing RealPage leadership team based in Richardson, Texas.
We believe this transaction will provide immediate and substantial value to RealPage stockholders, reflecting the tremendous work that our employees have done to build this company. I am immensely proud of that work and also pleased that the transaction will provide us the opportunity to work with Thoma Bravo, a firm with tremendous software investment and operational capabilities. This will enhance our ability to focus on executing our long-term strategy and delivering even better products and services to our clients and partners, commented Steve Winn, Chairman of the Board and Chief Executive Officer of RealPage.
RealPage s industry leading platform is critical to the real estate ecosystem and has tremendous potential going forward, said Orlando Bravo, Founder and a Managing Partner of Thoma Bravo. Our firm has a track record of acquiring cutting edge software providers to specialized industries and driving their innovation and growth while remaining right to their core business and customers. Together, RealPage and Thoma Bravo can partner to grow the company s market offerings and enhance its current capabilities to capitalize on the increasingly complex and expanding real estate market.
We are thrilled to partner with Steve and the RealPage team at this exciting milestone in the company s journey, said Scott Crabill, a Managing Partner at Thoma Bravo. As technology transformation takes on increasing importance in the real estate industry, RealPage s diverse and innovative portfolio of products and solutions puts the company in prime position to accelerate its market leadership. We look forward to applying Thoma Bravo s operational and investment expertise in software to help drive RealPage s continued growth and identify attractive M&A opportunities.

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BETHESDA, MD – Walker & Dunlop, Inc. announced that it structured financing for two seniors housing properties. The loans provided $45,000,000 to EWS Real Estate Investment Company for Palo Alto Commons, a 181-unit property located in Palo Alto, California, and $41,000,000 to The MW Group for The Plaza at Moanalua, a 160-bed community located in Honolulu, Hawaii. Both properties offer helped living, independent living, and memory care services.
Russell Dey led Walker & Dunlop’s team in structuring the financing for MW Group, and Mr. Dey and Senior Managing Director Jay Thomas worked together to complete the loan for Palo Alto Commons. Both transactions were arranged with Freddie Mac financing and featured attractive fixed rates and an interest-only component.
Mr. Dey commented, “Although the past nine months have been extremely challenging for the seniors housing sector as a whole, we’ve been fortunate to work with clients on properties that have done a fantastic job dealing with the many COVID-related challenges.” He added, “We are thrilled that, thanks to our strong partnership with Freddie Mac, we were able to get these transactions closed despite the ongoing volatility in the broader market.”
Palo Alto Commons, built in 1989 and 2010, is a three-tale, two-building complex with a mix of studio, one-, and two-bedroom units. Amenities at the property include an on-site salon, swimming pool, and clubhouse, as well as individual balconies or patios within each unit. The surrounding neighborhood is desirable for residents, as the property is located near a major shopping center, hospital, and several restaurants, grocers, and pharmacies.
The Plaza at Moanalua is a Class A seniors housing community built in 2011. Residents benefit from housekeeping services, exercise classes, restaurant-style meals, transportation, living rooms and outdoor sitting areas, a fitness room and physical therapy room, and access to a nursing team 24 hours a day.

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