AFL-CIO Building Investment Trust & Joint Venture Partner Break Ground In Culver City
Members of the building trades at the groundbreaking of the C3 office (center), joined by local union officials and Lynn Fieldman, VP of Construction and Labor Relations (second from right. Photo: Jessica Sterling).
Culver City, CA (June 22, 2016) – The AFL-CIO Building Investment Trust (BIT) along with its partner, IDS Real Estate Group, has broken ground again in Greater Los Angeles. To kick off the development, to be named Culver City Creative Office, or C3, a delegation of labor leaders from the Los Angeles/Orange Counties Building & Construction Trades Council and the Los Angeles County Federation of Labor, AFL-CIO, local politicians, and developers joined the workers on site for a special groundbreaking event.
“This is an investment in the future of Culver City, all while working to strengthen the retirement futures of workers all across the country,” Lynn Fieldman, Vice President of Construction and Labor Relations of the AFL-CIO Investment Trust Corporation said at the event.
Fieldman, who acted as master of ceremonies at the event, later added, “More importantly, this project is estimated to generate 1,250,000 hours of union construction work.”*
At completion, C3 is planned to be a seven-story, 281,400 square foot office building constructed of cast-in-place concrete with a window wall system incorporating large operable sections. As its name implies, the project is to be a creative and customizable space, tailored to the needs of tenants. The 3.3 acre development site is to be part of a planned office development corridor known as Corporate Point.
Rusty Hicks, Executive Secretary-Treasurer of the Los Angeles County Federation of Labor, AFL-CIO. (Photo: Jessica Sterling)
“The construction industry is one of the few places where a young apprentice is guaranteed a middle class career in the building trades. The Culver City Creative project will give hardworking families the opportunity not only to survive, but also to thrive with a path to a sustainable future,” said Rusty Hicks, Executive Secretary-Treasurer of the Los Angeles County Federation of Labor, AFL-CIO.
Hicks went on about what he feels the project best represented to those in the labor movement, “The L.A. County Federation of Labor has always stood side by side with the Building Trades Council and others in the fight for policies that lift the living standards for all workers – a decent wage, strong benefits, and the protection of a union.”*
Throughout the 28 year history of the AFL-CIO Building Investment Trust, the Fund has committed over $618 million for the development and acquisition of 17 projects in the Greater Los Angeles Area. Those projects account for a total of more than 590 housing units and 2.2 million square feet of commercial real estate. BIT development projects in the area have helped to create an estimated 3 million union construction hours.
Ron Miller, Executive Secretary of the Los Angeles/Orange Counties Building & Construction Trades Council. (Photo: Jessica Sterling)
“The unique design of this project will require skill and professionalism to complete construction – I believe developers expect this skill when they hire union,” said Ron Miller, Executive Secretary of the Los Angeles/Orange County Building & Construction Trades Council.
Miller also added, “The AFL-CIO Building Investment Trust’s commitments to Los Angeles, including Playhouse Plaza in Pasadena, Los Feliz in Glendale, and now this project in Culver City, are all great examples of the potential of union pension investment.”*
Last summer, the BIT and its joint venture partner for C3, IDS Real Estate Group, put the finishing touches on Playhouse Plaza, a 155,000 square foot office building in Pasadena. The BIT also broke ground earlier this year at Los Feliz, a multifamily apartment project in nearby Glendale. At completion, Los Feliz is planned to be five-stories and feature 220 rental apartments. **
(L to R) Ron Miller, Executive Secretary, Los Angeles/Orange Counties Building & Construction Trades Council; Lynn Fieldman, Vice President of Construction and Labor Relations, AFL-CIO Investment Trust Corporation; Los Angeles County Supervisor - Second District, Mark Ridley-Thomas presenting Lynn Fieldman with an award recognizing the BIT’s commitment to Los Angeles County; Mayor Jim Clarke, Culver City, CA; Rusty Hicks, Executive Secretary-Treasurer, Los Angeles County Federation of Labor, AFL-CIO. (Photo: Jessica Sterling)
"In real terms, it means that workers – including veterans, local residents, and newer workers entering the job market – will have more opportunities for gainful employment with good jobs that pay a living wage and benefits," Los Angeles County Supervisor Mark Ridley-Thomas said at the event. He added, "More of these individuals will have the opportunity to leave the ranks of the unemployed or underemployed, obtain or enhance skills, and forge careers in the construction or related industries."
Supervisor Ridley-Thomas also presented an award from the Los Angeles County Board of Supervisors recognizing the BIT for their work in the county. At the groundbreaking he stated, "Thank you for your investment in Culver City, and for initiating similar construction projects in various locations throughout California." He added, "It is a wise business decision that will help to ensure that workers earn a living wage to support their families and enjoy the fruits of their labor."*
Supervisor Ridley-Thomas also commended Culver City Mayor Jim B. Clarke, who also spoke at the event, and everyone involved, for their effort in making the long-awaited project a reality.
An artist rendering of what C3 will look like at completion (Courtesy of IDS Real Estate Group).
Art Pulaski, Executive Secretary-Treasurer of the California Labor Federation, AFL-CIO, was unable to attend due to a last minute legislative commitment, however he did send a prepared statement that was read by Fieldman.
“In my book, there’s no better way to build the middle class than combining all our pension funds into jobs just like these,” Pulaski said in his statement. He added, “And to the workers building this project, I want to thank you, on behalf of 2.5 million union members in California, for proving once again that union work is the best quality work anywhere in the world!”
The event was attended by representatives from the Los Angeles County Federation of Labor, AFL-CIO; the Los Angeles/Orange County Building & Construction Trades Council; the AFL-CIO Building Investment Trust; PNC Realty Investors, Inc.; KPRC Construction; IDS Real Estate Group; the Office of the Mayor of Culver City; the Office of the County Supervisor of Los Angeles County’s Second District; as well as the men and women of the building trades who were already hard at work making the project a reality.
*Opinions of third parties are not representations, warranties, or opinions of PNC Bank, National Association, trustee for the BIT.
** The investments mentioned in this article do not include all investments in the Greater Los Angeles area. A complete list of transactions in Los Angeles and in the BIT may be available upon request.
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.
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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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