AFL-CIO Building Investment Trust Announce Two New Developments in California
The AFL-CIO Building Investment Trust ("BIT"),along with its joint venture partners, recently closed on two projects that are intended to generate hundreds of union construction jobs.
Ground breaking is expected for the following two projects in first quarter 2017:
MacArthur Commons, a 395-unit multifamily apartment project located in Oakland, California. As currently intended, the project will feature high end finishes and common area amenities, and will sit directly across from the MacArthur BART station. MacArthur Commons is a joint venture with Hines Development. Hines previously partnered with the BIT for the T3 Office in Minneapolis, as well as the BIT's projects at Wolf Point in Chicago. Construction is estimated to be completed in 2019.
Miller Cypress Apartments, a 260-unit development located in South San Francisco, California. Upon completion, the project will be a short walk from the future South San Francisco Caltrain Station. The project is the second joint venture between the BIT and Sares Regis Group. The first joint venture project for Sares Regis and the BIT was the multifamily development, 888 San Mateo, a 160-unit project that is also in San Mateo County.
*Opinions or statements herein by participants in the BIT or third parties are not representations, warranties, or opinions of PNC Bank, National Association, trustee for the BIT. The inclusion or listing of these third parties or participants in the BIT also should not be considered an endorsement by these third parties or participants.
†Transactions listed here are not a complete list of transactions but contain a sampling of transactions in the portfolio. A complete list of transactions may be provided on request.
The BIT was managed by a trustee unaffiliated with PNC Bank from July 1, 1988 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 are not bank deposits, nor are they backed or guaranteed by PNC or any of its affiliates, and are 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 illiquidity 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 from third party sources was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy.
Information contained in the material above 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.
PNC does not provide legal, tax or accounting advice and does not pro-vide services in any jurisdiction in which it is not authorized to conduct business. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
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