BETHESDA, MD – Walker & Dunlop, Inc. announced that it structured $87,429,870 in Fannie Mae financing on behalf of The PRC Group, a repeat client and mission-driven regional real estate owner and developer headquartered in Red Bank, New Jersey.
The portfolio includes Brighton Arms Apartments, located in Neptune City, New Jersey, Grandville Towers, located in Red Bank, New Jersey, and Tree Haven Apartments, located in Matawan, New Jersey. The portfolio comprises 792 units in total, over 85 percent of which qualify as mission-driven, affordable housing under Federal Housing Finance Agency (FHFA) guidelines.
Walker & Dunlop has arranged over $125 million in financing for The PRC Group throughout 2020. The three-property portfolio represented the borrower’s first agency execution. Capital Markets Managing Directors, John Banas and Kris Wood, as well as Analysts John Wilson and Rhett Saltiel, structured the financing to provide the borrower flexibility, with four years of interest-only payments and an attractive fixed rate for each of the 12-year loan’s terms. The team provided support to the client throughout the deal process, effectively advising the client in their first Fannie Mae transaction.
“John Banas and his team are a class act,” commented Stanley J. Koreyva, President and COO of The PRC Group. “They were on top of all the information we needed to supply, and their response time to us for any questions we had was outstanding. They are right experts in handling this type of transaction.”
Said Mr. Banas, “It was an honor to be selected by Bob Kaye, Stan Koreyva, and the team at PRC for this transaction, which helps preserve 710 units of workforce housing throughout New Jersey. Thanks to our experienced team and strong partnership with Fannie Mae, we were able to successfully do the transaction under the challenging circumstances presented by the global pandemic.”
Each of the three properties is well-located near New Jersey’s Sandy Hook Bay and situated within a few miles of the coast. Located near Route 35, the portfolio offers residents quick access to Trenton and New Brunswick employment centers and are outfitted with community amenities such as swimming pools, playgrounds, clubhouses, and on-site property management. The client plans to utilize the cash-out proceeds to perform capital improvements and renovations to the buildings.

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DAVIS, CA – The University of California, Davis (UC Davis) opened the first phase of The Green at West Village student housing project, adding more than 1,000 beds to the University’s West Village neighborhood. Once the entire project is complete, the housing complex will add nearly 3,300 beds to the campus, making it the largest student housing development currently under construction in the US. Students officially went into Phase I on Sept. 15.
The full $575 million in project costs will come from the proceeds of a tax-exempt bond sale, the largest bond sale ever in the US for a student housing project. The Michaels Organization, a national leader in residential real estate, is working with global design, architecture, and engineering firm Stantec, which is providing lead architectural, interiors, buildings engineering, and landscape architecture services for the project. CBG Building Company is the general contractor.
Once completed, the project will be comprised of nine four-tale apartment buildings along with indoor and outdoor community space and recreational fields across 34 acres. A 10,000-square-foot community building will house a fitness center, multipurpose room, and support services. With its expansive solar electric arrays, The Green contributes to the overall neighborhood goal of zero net energy, which means the project is designed to generate as much energy as it uses within a year.
During Phase I, the team delivered the first three residential buildings, a utility building (including workspace for operations and maintenance staff), as well as outdoor courtyards between the residential buildings for students to gather. Each apartment building includes furnished bedroom and living spaces, full kitchen and common space, as well as social and study areas on each floor.
“This student housing community demonstrates what is possible when the public and private sectors form partnerships, leveraging the strengths of both,” said Joe Coyle, president of Michaels Student Living. “We are thankful for the leadership of our University partners and honored to deliver this affordable, sustainable living environment for the students of UC Davis.”
“We’re excited to hit this critical milestone — on schedule,” said Richey Madison, Stantec principal, West Coast Education. “This year has presented unprecedented obstacles with the ongoing impacts of the pandemic, and to see the first wave of students go into The Green is humbling for our entire public-private partnership team. This is a truly transformative project for the UC Davis student body, and one we are proud to help deliver.”
The apartment community will be operated by Michaels Student Living Management. Collegiate Housing Foundation will hold the ground lease with the University of California. UC Davis Student Housing and Dining Services will be responsible for marketing, leasing, and on-site residence life support services.

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HAMILTON, NJ – Total construction starts rose 19% in August to a seasonally adjusted annual rate of $793.3 billion. Gains were seen in all three major building sectors: nonresidential building starts rose 16% and residential building climbed 12%, while nonbuilding construction jumped 40% over the month. While large projects certainly influenced the August gains, removing those projects would still have resulted in a gain for the month.
Year-to-date through the first eight months of the year, starts were 14% lower than in the same period in 2019. Nonresidential starts were 24% lower and nonbuilding starts were down 20%, but residential starts were down less than one percent. For the 12 months ending August 2020, total construction starts declined 6% from the 12 months ending August 2019. Nonresidential building starts fell 13% and nonbuilding starts were 9% lower in the 12 months ending August 2020, while residential building starts rose 3%. In August, the Dodge Index rose 19% to 168 (2000=100) from the 141 reading in June. The Dodge Index was down 8% compared to a year earlier and 6% lower than its pre-pandemic level in February.
Construction starts continue to make up ground following the nadir in activity in April, stated Richard Branch, Chief Economist for Dodge Data & Analytics. Residential and commercial construction are driving the gains, while the public side of building construction is proving to be a drag on growth. The regional pattern has also evened out with gains in starts seen in every region but the Midwest in August — somewhat muting the concern over the potential impact of rising COVID cases in the South and West. The nascent recovery in starts, but, will face challenges as summer turns to fall. The expiration of enhanced unemployment insurance benefits and small business loans that were provided in the CARES Act, the budget crises facing state and local governments, and the impending expiration of the QUICK Act on September 30 will all have a dampening effect on starts.
Nonbuilding construction posted a 40% gain in August to a seasonally adjusted annual rate of $184.4 billion nearly reversing the sizable decline in the previous month as two large projects pushed activity higher. Starts in the utility/gas plant more than doubled, while environmental public works posted an 89% gain and highway and bridge starts went up 13%. Miscellaneous nonbuilding starts lost 5%.
The largest nonbuilding project to break ground in August was the $1.3 billion Wastewater Control Plant in San Francisco, CA. Also starting during the month were the $888 million Dania Beach Clean Energy Center in Dania Beach, FL and the $310 million new Aztec Stadium at San Diego State University in San Diego, CA.
Through the first eight months of the year, total nonbuilding starts were down 20% compared to the same period in 2019. Starts in the highway and bridge category were up 1%, while the environmental public works category dropped 15%, the miscellaneous nonbuilding sector fell 34%, and the electric power/gas plant category plunged 45%. On a 12-month rolling basis, total nonbuilding starts were down 9% in the most recent year compared to the 12 months ending August 2019. Starts in the street and bridge category dipped 2%, while starts in the electric power/gas plant category were down 12%. Environmental public works starts pulled back 8% and miscellaneous public works starts dropped 21%.
Nonresidential building starts in August were also aided by large projects in the office and manufacturing sectors leading to an increase of 16% to $236.7 million. Removing these projects, but, would not have prevented an increase in nonresidential building starts. Commercial starts rose 36% and manufacturing starts soared 201%. Institutional starts, but, fell 7% despite small gains in education and healthcare.
The largest nonresidential building project started in August was the $1.0 billion Facebook Data Center (Project Woolhawk) in Gallatin, TN. Also starting during the month was the $740 million Texas Instruments Fabrication Plant in Richardson, TX and a $700 million mixed-use office and hotel project in Boston, MA.
On a year-to-date basis, total nonresidential building starts were 24% lower than in the first eight months of 2019. Institutional building starts dropped 16%, while commercial starts slid 27% and manufacturing starts were 47% lower than a year earlier. Over the 12 months ending August 2020, total nonresidential building starts were down 13% from the 12 months ending in August 2019. Commercial starts were 16% lower, institutional starts were down 13%, and manufacturing starts slipped 1%.
Residential building starts went 12% higher over the month in August to a seasonally adjusted annual rate of $372.1 billion. Multifamily building starts increased 62%, while single family starts fell 3%.
The largest multifamily structure to break ground in August was the $549 million Mana olana Place Mixed Use in Honolulu, HI. Also starting in August were the $500 million Pacific Park Mixed Use Development in Brooklyn, NY and a $250 million condominium building at the Union Theological Seminary Space in New York, NY.
Through the first eight months of 2020, residential construction starts were down less than one percent versus a year earlier. Single family starts grew 4%, while multifamily starts slid 11%. For the 12 months ending in August 2020, total residential starts gained 3% with single family starts up 6% but multifamily starts down 4%.

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