AFL-CIO Building Investment Trust Announces New Job Creating Development With Exciting New Video
Washington, D.C. (September 29, 2016) – The AFL-CIO Investment Trust Corporation (ITC) has announced that the AFL-CIO Building Investment Trust (BIT) will expand on its commitment to Chicago’s $1 billion Wolf Point development. Representatives of the ITC and local labor leaders participated in the grand opening of the $160 million, 46-story Wolf Point West in the second quarter of 2016. Construction on Wolf Point East, the second phase of the project at the confluence of the North, South, and Main Branches of the Chicago River is expected to begin in the first quarter of 2017.
To best demonstrate the impact of their initial investment in Wolf Point, the BIT commissioned a video , which can be found below:
“We are extremely excited about the opportunity once again build in such a great city,” said Mike Stotz, President of the AFL-CIO Investment Trust Corporation, which provides investor and labor relation services to the BIT.
Stotz added, “Wolf Point West was barely topped off a few months ago, and not only is it rapidly filling up with tenants, it has also joined the BIT’s 333 West Wacker Office as new additions to Chicago’s famous architecture tour. Wolf Point East will not only be another beautiful addition to Chicago’s skyline, but it shows what can be done when labor invests in itself.”*
Wolf Point East is to be a 66-story, 750-foot tall mixed-use skyscraper designed by the world renowned Pelli Clarke Pelli architects, with an estimated total development costs of approximately $360 million.
The east tower will add 707 units of luxury rentals to Chicago’s downtown, as well as 198 parking spaces, 40,000 sf of amenity space, and 3,000 sf of ground floor retail. Wolf Point East is the second joint venture between the BIT, Texas-based Hines Interests, and an investment group headed by Joseph P. Kennedy EnterprisesC.E.O., Chris Kennedy. Construction is estimated to be completed by December of 2019.
Historically, the BIT has committed over $1.6 billion to the Chicago area to over 20 projects. BIT projects in Chicago have created an estimated 4,100 union jobs, both in the construction and servicing of its properties; in addition to 3,921 units of housing, and over 3 million square feet of commercial real estate.
In addition to the projects at Wolf Point, in recent years the fund’s Chicago development includes 500 Lake Shore Drive, a 500-unit luxury residence a block away from Navy Pier; The Tides, a nearby 607-unit multifamily tower in Lakeshore East; and The Shoreham, a 47-story high-rise apartment containing 548 rental units, also in Lakeshore East. In addition to those developments, in 2015, the BIT acquired the office building at 333 West Wacker Drive, directly across the Chicago River from Wolf Point.
Wolf Point East represents a continuation of the BIT’s efforts to invest in the development of large, urban, multifamily rental properties in order to meet growing demand. Some of the BIT’s recent multi-family property developments include Manhattan’s Riverside Center, Minneapolis’ Dock Street Flats, Portland’s Lloyd District Commons, and San Jose’s San Pedro Square Apartments.
*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, 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 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.
PNC does not provide legal, tax or accounting advice and does not provide 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.
Not FDIC Insured. No Bank Guarantee. May Lose Value. For Institutional Use Only- Not for Use with Retail Investors.
© 2016 The PNC Financial Services Group, Inc. All rights reserved.