HAMILTON, NJ – Total construction starts rose 12% in October to a seasonally adjusted annual rate of $787.9 billon. While sizeable, the increase does not erase September s substantial pullback in starts. All three major categories went higher over the month, nonbuilding starts rose 25%, nonresidential buildings increased 19%, while residential activity gained 2%. Four of the five regions saw construction starts go higher in October, with the only decline coming in the South Central region.
Through the first 10 months of 2020, total construction starts were 11% lower than the same period of 2019. Nonresidential starts were 24% lower and nonbuilding were down 14%. Residential starts, but, were 2% higher in the first 10 months of this year. For the 12 months ending October 2020, total construction starts were down 6% compared to the previous 12 months. Nonresidential building starts were 17% lower and nonbuilding starts were 7% lower, while residential building starts rose 4% over the 12 months ending October 2020. In October, the Dodge Index rose 12% to 167 (2000=100) from the reading of 149 in September. The Dodge Index was flat on a year-over-year basis, and 8% lower than its pre-pandemic level in February.
October s gain was welcome news following the large step back in starts during the previous month, stated Richard Branch, Chief Economist for Dodge Data & Analytics. The month s increase, but, does not mean all is well with the economy and construction sector. The economy lost traction as the stimulus provided by the CARES Act finished. With the next wave of COVID-19 infections looming, the economy will continue to lose steam until more fiscal stimulus is provided and a vaccine has been widely adopted. Until that has occurred, the construction sector will continue to be volatile.
Nonbuilding construction posted a solid 25% gain in October, increasing to a seasonally adjusted annual rate of $222.4 billion. The gain was driven in large part by a sizeable tunnel project that drove highway and bridge starts 51% higher. The utility/gas plant category rose 41%, while miscellaneous nonbuilding gained 6%. Environmental public works fell 24% over the month.
The largest nonbuilding project to break ground in October was the $3.6 billion Hampton Roads Bridge and Tunnel project in Norfolk VA. Also starting in October was the $1.0 billion Gemini Solar Project in Clark County NV and the $450 million Indiana Crossroads Wind Farm in White County IN.
Through the first 10 months of the year, total nonbuilding starts were down 14% from the same time period of 2019. Starts in the highway and bridge category were up 8%, while environmental public works were 8% lower. The miscellaneous nonbuilding and utility/gas plant categories were each down 34% year-to-date. For the 12 months ending October 2020, total nonbuilding starts were down 7% from the 12 months ending October 2019. Street and bridge starts were 8% higher, while utility/gas plant starts were down 14%. Environmental public works starts were down 5% and miscellaneous nonbuilding starts were 29% lower in the 12 months ending October 2020.
Nonresidential building starts recovered slightly from the sharp September decline, gaining 19% in October to a seasonally adjusted annual rate of $209.0 billion. Several large office and warehouse projects got underway during the month pushing commercial starts up 23%. Manufacturing starts gained 26% during the month, while a large courthouse project helped institutional starts gain 15%.
The largest nonresidential building project to get started in October was the $585 million third phase of the Project Echo Facebook Data Center in Sandston VA. Also getting started during the month was the $400 million Tesla Gigafactory in Austin TX and the $330 million Campus at Horton office project in San Diego CA.
Total nonresidential building starts were down 24% through the first 10 months of 2020. Commercial starts were 27% lower and institutional starts were 16% lower, while manufacturing starts tumbled 54%. For the 12 months ending October 2020, total nonresidential building starts were down 17%. Institutional building starts fell 13%, commercial starts dropped 20%, and manufacturing starts declined 22% over the 12 months ending October 2020.
Residential building starts went 2% higher in October to a seasonally adjusted annual rate of $356.5 billion. The increase in the multifamily sector was robust, with starts rising 62% following a 52% loss the previous month. Single family starts fell 9% in October.
The largest multifamily building to break ground in October was the $386 million Waterview at Greenpoint project in Brooklyn NY. Also starting were a $250 million mixed-use project on 47th Street in New York NY and a $200 million residential tower on High Street in Houston TX.
Through the first 10 months of 2020, residential construction starts were 2% higher than in the same time period of 2019. Single family starts were up 8%, but multifamily starts were down 11%. For the 12 months ending in October, total residential starts were 4% higher than in the 12 months ending October 2019. Single family starts were up 8%, while multifamily starts were down 5%.

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GREENVILLE, SC – Aline Capital’s Multifamily Advisory Division has completed the sale of two properties in Wilmington, NC. The 368-unit portfolio sale was completed at total sales price of $35,375,000. Aline Capital represented their repeat client, Eskay Management, as the purchaser in the transaction. The Multifamily Advisory Group has previously completed transactions involving their purchaser client and the seller, Heritage Capital of New Jersey. Eskay Management assumed the existing debt on the properties while bringing a large amount of equity to the transaction.
“The low-leverage nature of the transaction as well as other factors from the Covid-19 pandemic made this transaction challenging. These are brilliant properties with a tremendous number of upgrades. We knew that a well-capitalized firm with a deep understanding of the strength of the Carolina markets would be excellent fit for the transaction,” provided Jonathan Kessler of Aline Capital.
“With the acquisition of these two properties, it will provide us with a stronger presence in the Wilmington market, and the Carolinas in general,” said Jay Schecter of Eskay Management.
The transaction is the first landmark transaction for Aline Capital’s new investment sales platform. The historically focused debt and equity firm launched an investment sale division amidst the Covid-19 pandemic. “We are grateful to have built a strong capital markets advisory business throughout the southeast for the past five years. We now have investment sale teams focused on several asset classes including multifamily, retail, office, mobile homes, among others. We believe this is a logical path of growth for the firm and a fantastic way to round out our services to our clients looking to invest in the southeast,” said Scott Williams, the firm’s founding Partner.

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TUSCALOOSA, AL – Legacy Capital Partners, a Cleveland, OH-based national real estate investor firm, together with Morrison Avenue Capital Partners, a Tampa, FL-based real estate owner and operator, announced that they have successfully formed a joint venture and bought a 1996-vintage, 208-unit conventional apartment community in Tuscaloosa, Alabama – Inverness Apartment Homes.
Tuscaloosa is the home of the University of Alabama, as well as a major Mercedes-Benz production plant which is currently undergoing a $1 billion expansion. The Mercedes-Benz production plant expansion is part of Mercedes-Benz global initiative to offer more than 50 electric vehicle variants by 2022.
Legacy and Morrison Avenue have bought Inverness as part of their value-add strategy which will increase cash flow and value through the execution of interior upgrades for all 208 units, exterior and amenity improvements, as well as addressing the property’s deferred maintenance.
“Inverness fits perfectly with our value-add multifamily investment strategy. A property that is currently performing well in a strong market yet has a clear path to value creation through physical and operational improvements. This is Legacy’s second joint venture and third asset bought with Morrison Avenue in the state of Alabama, and we’re thrilled to continue to expand the partnership,” said David St. Pierre, Managing Director at Legacy.
This investment also reflects current trends given the COVID-19 pandemic. Inverness is a suburban apartment community with larger unit floorplans averaging 1,275 square feet, which include space for home offices and virtual learning. Further, the property is unique in that each of the 208 units have private entrances and an attached, direct access garage. Community residents have immediate access for their families and guests to their individual apartments. This is especially right in the Tuscaloosa market where nearly all of the new development over the past decade has been purpose-built student housing.
Both Legacy and Morrison Avenue look forward to executing on its value in plot and making clean, safe, and spacious apartment homes that will serve residents of Tuscaloosa for years to come.

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