AFL-CIO Building Investment Trust & Joint Venture Partner Break Ground In St.Louis
(L to R) Randy Kinder, Senior Vice President, AFL-CIO Investment Trust Corporation; Jeffery P. Aboussie, Executive Secretary-Treasurer of the St. Louis Building & Construction Trades Council; Pat White, President, Greater St. Louis Labor Council, AFL-CIO; Michael Louis, President of the Missouri AFL-CIO; Gina Walsh, President of the Missouri State Building Trades Council; Lynn Fieldman, Vice President of Construction & Labor Relations, AFL-CIO Investment Trust Corporation.
St. Louis, MO (June 28, 2016) - Local community advocates, union leadership, politicians, and members of the Missouri business community gathered to celebrate the groundbreaking of Encore at Forest Park, the second joint venture between the AFL-CIO Building Investment Trust and Balke Brown Transwestern.
"Today we celebrate the beginning of this project,” said Randy Kinder, Senior Vice President of the AFL-CIO Investment Trust Corporation. Kinder added, “and we hope it is only the beginning of what the fund can help bring to Missouri.”*
Encore at Forest Park has an estimated total development cost of $51 million, and at completion is planned to be a five-story multifamily apartment with 247 rental units. The building will be surrounded by a mixture of office mid-rises and retail as a part of the Highlands at Forest Park redevelopment over the land that previously housed the St. Louis Arena.
Jeffery P. Aboussie, Executive Secretary-Treasurer of the St. Louis Building & Construction Trades Council, speaks at the groundbreaking of the AFL-CIO Building Investment Trust's Encore at Forest Park.
"We are proud to see our union pension dollars being put to work through investment in the Building Investment Trust. These investments help to put members to work on projects that improve our community”* said Jeffery P. Aboussie, Executive Secretary-Treasurer of the St. Louis Building & Construction Trades Council.
The BIT and its joint venture partner, Balke Brown Transwestern, have previously completed work on Cortona, a 278 unit multi-family property in St. Louis. That $69 million development lies directly next to Encore, and has been consistently rated one of the best apartments in the city by the St. Louis Apartment Association.
Michael Louis, President of the Missouri AFL-CIO, speaks at the groundbreaking of the AFL-CIO Building Investment Trust's Encore at Forest Park.
"We’re at a time when families across Missouri are struggling to earn the wages it takes to raise a family, so we in the labor movement need to get creative with how we create opportunity," said Michael Louis, President of the Missouri AFL-CIO. President Louis added, "investment vehicles like the AFL-CIO Building Investment Trust are innovative ways to put our pension dollars to work while helping to create good union jobs for working men and women across the state. ”*
Gina Walsh, President of the Missouri State Building Trades Council, addresses the crowd at the groundbreaking of the AFL-CIO Building Investment Trust's Encore at Forest Park.
Over the BIT’s 28-year history, the fund has invested more than $130 million in St. Louis for the development and acquisition of 9 projects. Those projects include 525 housing units and 1.48 million square feet of commercial real estate.
Pat White, President, Greater St. Louis Labor Council, AFL-CIO, addresses the crowd at the groundbreaking of the AFL-CIO Building Investment Trust's Encore at Forest Park.
“The Building Investment Trust is a terrific example of how union pension dollars can be used in strategic ways," said Gina Walsh, President of the Missouri State Building Trades Council. She added, "these projects show that you can have comprehensive labor standards and create jobs at the same time.”*
"Building Investment Trust projects like Encore are physical representations of our collective actions, showing how we can take our pension funds back into our community to help create well-paying jobs in St. Louis,” said Pat White, president of the Greater St. Louis Labor Council, AFL-CIO.*
The event was attended by representatives from the Greater St. Louis Labor Council, AFL-CIO; Balke Brown Transwestern; AFL-CIO Investment Trust Corporation; St. Louis Building and Construction Trades Council; Missouri AFL-CIO; Holland Construction; PNC Realty Investors; and the Missouri State Building Trades Council.
*Opinions of third parties are not representations, warranties, or opinions of PNC Bank, National Association, trustee for the BIT.
The BIT was managed by a trustee unaffiliated with PNC Bank from July 1, 1998 through December 31, 1991, and PNC Bank is relying on data provided by this prior trustee for this time frame.
The AFL-CIO Building Investment Trust (the “BIT” or the “Trust”) is a bank collective trust for which PNC Bank, National Association (“PNC Bank”) is the trustee. PNC Bank is a subsidiary of The PNC Financial Services Group, Inc. (“PNC”). PNC may use the service mark “PNC Institutional Asset Management” in connection with certain activities of the Trust. PNC Bank has retained PNC Realty Investors, Inc. (“PRI”) to provide real estate investment advisory and management services, and the AFL-CIO Investment Trust Corporation (the “ITC”) to provide marketing and investor and labor relation services, in connection with the BIT. PNC Bank licenses the ability to use the “AFL-CIO” name in the name of the Trust and in connection with the activities of the Trust.
A participant’s investment in the BIT is not a bank deposit, nor is it backed or guaranteed by PNC or any of its affiliates, and is not issued by, insured by, guaranteed by, or obligations of the FDIC, the Federal Reserve Board, or any government agency. Investment in the BIT involves risk. Investment return and principal value of an investment in the BIT will fluctuate so that a participant’s investment, when redeemed, may be worth more or less than the original investment. A participant’s redemption of its investment or units in the Trust, or a portion thereof, may be delayed by Trustee for one year (or longer if permissible under applicable law) from the date of the request for such redemption.
The BIT generally invests directly or indirectly in commercial real estate through equity investment and occasionally through the provision of financing. Equity investments are subject to risks inherent in or customarily associated with the ownership of income-producing real estate, and real estate financing involves risks inherent in or customarily associated with the risks of financing secured directly or indirectly by income-producing real estate. Due to such inherent risks, investment returns can be expected to fluctuate and operating cash flow and the Trust's ability to make redemptions or distributions could be adversely affected. Moreover, due to the nature of real estate, investments may be illiquid. Such liquidity may affect the Trust’s operating cash flow, which, in turn, may delay the ability to satisfy redemption requests. Additionally, the BIT or its investments may obtain financing. Such investments are subject to the inherent risks arising from the use of financing, and such risks may increase volatility of a fund’s performance and may increase the fund’s losses.
The information contained in this material is not intended to be a comprehensive description of any investment product or capability. Neither the information herein, nor any opinion expressed herein, constitutes an offer to buy or sell, nor a recommendation to buy or sell, any security or financial instrument, including an interest in the BIT, and is not intended to serve as a primary basis for a decision with regard to whether to invest in any security or financial instrument, including an interest in the BIT. Investors in, or potential investors of, the BIT should consider carefully the BIT’s investment objectives, risks and expenses before investing therein. Investors should consult their own advisors and investment professionals to evaluate the merits and risks of investment.
Except as otherwise disclosed, the materials, representations and opinions presented herein are those of PNC Bank, and are of a general nature and do not constitute the provision by PNC of investment, legal, tax, or accounting advice to any person. Opinions expressed herein are subject to change without notice. The information was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy.
Information contained in the material above herein regarding or providing past performance should not be considered representative, and is no guarantee, of future performance or results. Forward looking statements contained in the material above involve certain assumptions, including but not limited to the performance of the real estate market, which could cause actual outcomes and results to differ materially from the views expressed in the material above.
For more information regarding the investments, risks, and expenses of the BIT, copies of the latest investment memorandum and the applicable plan documents for the BIT, including the trust agreement and a form of participation agreement, may be obtained by contacting 855-530-0640 or BITTrustOfficer@pnc.com. Please read the investment memorandum carefully before investing in the BIT.
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