HAMILTON, NJ – Total construction starts fell 2% in February to a seasonally adjusted annual rate of $797.3 billion. Nonbuilding construction starts posted a solid gain after rebounding from a weak January, but, residential and nonresidential building starts declined, leading to a pullback in overall activity. The Dodge Index fell 2% in February, to 169 (2000=100) from January s 171.
With spring just around the corner, hope is building for a strong economic recovery fueled by the growing number of vaccinated Americans, said Richard Branch, Chief Economist for Dodge Data & Analytics. But the construction sector will be hard-pressed to take advantage of this resurgence as rapidly escalating materials prices and a supply overhang across many building sectors weighs on starts through the first half of the year.
Below is the full breakdown across nonbuilding, nonresidential, and residential construction:
Nonbuilding construction starts gained a robust 20% in February to a seasonally adjusted annual rate of $200.3 billion. The miscellaneous nonbuilding sector (largely pipelines and sitework) surged 76%, while environmental public works increased 26%, and highway and bridge starts went 11% higher. By contrast, utility/gas plant starts lost 17% in February. For the 12 months ending February 2021, total nonbuilding starts were 13% lower than the 12 months ending February 2020. Highway and bridge starts were 4% higher on a 12-month rolling sum basis, while environmental public works were up 1%. Miscellaneous nonbuilding fell 26% and utility/gas plant starts were down 37% for the 12 months ending February 2021. The largest nonbuilding projects to break ground in February were the $2.1 billion Line 3 Replacement Program (a 337-mile pipeline in Minnesota), the $1.2 billion Red River Water Supply Project in North Dakota, and the $950 million New England Clean Energy Connect Power Line in Maine.
Nonresidential building starts fell 7% in February to a seasonally adjusted annual rate of $208.1 billion. Institutional starts dropped 8% during the month despite a strong pickup in healthcare. Warehouse starts fell back during the month following a robust January, offsetting gains in office and hotel starts, and dragging down the overall commercial sector by 8%. For the 12 months ending February 2021, nonresidential building starts dropped 28% compared to the 12 months ending February 2020. Commercial starts declined 30%, institutional starts were down 19%, and manufacturing starts slid 58% in the 12 months ending February 2021. The largest nonresidential building projects to break ground in February were Ohio State University s $1.2 billion Wexner Inpatient Hospital Tower in Columbus OH, ApiJect Systems $785 million Gigafactory in Durham NC, and Sterling EdgeCore s $450 million data center in Sterling VA.
Residential building starts slipped 7% in February to a seasonally adjusted annual rate of $388.9 billion. Both single family and multifamily starts fell during the month, with each losing 7%. For the 12 months ending February 2021, total residential starts were 4% higher than the 12 months ending February 2020. Single family starts gained 12%, while multifamily starts were down 15% on a 12-month sum basis. The largest multifamily structures to break ground in February were Bronx Point s $349 million mixed-use development in The Bronx NY, the $215 million Broadway Block mixed-use building in Long Beach CA, and the $200 million GoBroome mixed-use building in New York NY.
Regionally, February s starts fell lower in the South Central and West regions but went higher in the Midwest, Northeast, and South Atlantic Regions.

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ORLANDO, FL – Elevation Financial Group, a senior and multifamily affordable housing provider, announces the successful disposition of Elevation Real Property Fund VI asset, Serenity Apartments at Columbus. The 211-unit multifamily community sold for $13 million.
Located in Columbus, Georgia, the property was bought in July 2018 for $7.6 million and was 72% occupied. Elevation recognized the immense potential in the unique mix of garden-style and larger than average townhome units as well as the prime location. Being situated within eight miles of Fort Benning Army base, three miles from Columbus State University and within minutes to many large employers, its location presented an ideal opportunity to deliver affordable and quality workforce housing to Columbus residents. After making many value-add enhancements, including the revitalization of over 50 apartment units, Elevation was able to significantly increase occupancy which remained high throughout its ownership. At the time of sale, occupancy was 96%.
“Throughout our tenure with Serenity Apartments at Columbus, our team at Elevation consistently performed above and beyond expectations. From rehabilitation and upkeep to leasing and management, I could not be prouder of the exemplary service and value that we delivered for our residents and investors alike,” said Chris King, CEO of Elevation. “As Serenity Apartments at Columbus transitions to a new owner, we can all take pride knowing that we fulfilled our mission to make safe, clean, and affordable housing for residents while delivering superb results for our investors.”
The revitalization included a complete rehabilitation of the leasing office, new carpet in all exterior breezeways, exterior painting of the townhome buildings, parking lot paving, and restoration of over 50 apartment units, 10 of which were uninhabitable.
Serenity Apartments at Columbus marks the sixth disposition for Fund VI. Properties remaining in the portfolio include a multifamily community in Alabama, one in Mississippi, two senior properties in Virginia, and one senior community in Illinois.

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WASHINGTON, DC – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced the acquisition of SomerHill Farms, a 140-unit multifamily community in Gainesville, Virginia, a suburb of Washington, D.C. The property was bought for CS1031 SomerHill Farms Apartments, DST, a Reg. D private placement.
“SomerHill Farms Apartments is next in Capital Square’s line of value-add multifamily communities for 1031 exchange and other investors seeking stable cash flow and capital appreciation,” said Louis Rogers, founder and chief executive officer of Capital Square. “The community is located in a dynamic and rapidly growing Northern Virginia suburb, just outside of Washington D.C., with robust population growth, strong rental increases, high barriers to entry, and exceptional job opportunities within commuting distance, including Amazon’s $2.5 billion HQ2 development.”
Located at 7351 Yountville Drive, the community is situated on 18.76 acres of land. Constructed in 2006, SomerHill Farms features six three- and four-tale residential buildings and one clubhouse. The community includes one-, two- and three-bedroom units ranging in size from 786 average square feet to 1,446 average square feet. Amenities at SomerHill Farms include a clubhouse, outdoor pool, dog park, fitness center, tot lot and community garden.
CS1031 SomerHill Farms Apartments, DST seeks to raise $23.2 million in equity from accredited investors and has a minimum investment of $50,000.
“SomerHill is located in the ninth wealthiest county in the nation, with a projected 3.78% average annual rent growth from fiscal year 2022 to fiscal year 2023,1” said Whitson Huffman, chief strategy and investment officer. “SomerHill Farms is a prime example of a multifamily community with value-add potential. By improving the community through light unit renovations and amenity upgrades, Capital Square is able to raise the rent over time and increase the residual value of the property.”
Gainesville is home to 48.3 million square feet of retail space, including The Grove at Gainesville, a 1-million-square-foot plotted mixed-use, retail entertainment, hotel and office space development. Located in Northern Virginia, the city offers most residents a 45-minute commute to surrounding employers, including the plotted Amazon HQ2 in Washington, D.C.
Since the company was founded, Capital Square has bought 125 real estate assets for over 2,700 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation.

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