Construction Continues Nationwide at AFL-CIO Building Investment Trust Projects


Union construction workers on site at the AFL-CIO Building Investment Trust development Encore at Forest Park in St. Louis, MO.

Washington, DC (October 20, 2017) -- In 2017 the AFL-CIO Investment Trust Corporation ("ITC") took part in groundbreakings and grand openings from coast to coast in celebration of properties within the portfolio of the AFL-CIO Building Investment Trust ("BIT"). Throughout the course of the last year, the investments of the BIT have helped to put union craftspeople to work on eight projects that have a combined total development cost of over $1.5 billion. Those projects have helped to generate union construction work in places like Chicago, Greater Los Angeles, the San Francisco Bay Area, St. Louis, and Philadelphia; adding to its recently completed projects in Minneapolis and the New York metro.

Construction on the BIT investment property known as Riverside Center began in Manhattan during the last part of 2012, now the development has amenities that are still getting some finishing touches. Leasing for the 35-story residential tower began in 2016, and in 2017 the public school housed at Riverside Center began its first year in its new home.
 

Union workers during the construction of 21 West End in Manhattan, May 2015.
 

Riverside Center, in Manhattan, has 35 residential floors, 35,500 square feet of amenities, and is the new home for PS 191 - the Riverside School for Makers and Artists.

Earlier in 2017, the BIT and the developer held a groundbreaking ceremony in Philadelphia for The National. The National is a planned 192-unit multifamily apartment project located in the Old City neighborhood of Philadelphia.
 

Union construction workers on the job site of The National, Philadelphia, PA, June 2017.
 

Rendering of The National in Philadelphia, PA.

"With projects that support union labor job creation, such as this, it's important for us in organized labor to remember that we're doing more than just building an apartment building,"* Patrick Eiding, President of the Philadelphia Council of the AFL-CIO, said at the event.
 
Eiding, who serves a dual role as the Secretary-Treasurer of the Building & Construction Trades Council of Philadelphia · AFL-CIO added, "labor organizations across the country can benefit from investing in projects that generate union labor."*
 
Fred Cosenza, a Business Representative with the Building & Construction Trades Council of Philadelphia · AFL-CIO,  spoke of the excitement at seeing movement at the site of The National, as it has been sitting vacant since 2015.

"I'm sure that I don't just speak for the skilled union building trades workers that are here today when I say that that it's great to see this long-awaited development begin,"* Cosenza exclaimed. He added while pointing out the number of cranes visible in the surrounding area, "not only do we get to welcome new developers to our city, but when they come to Philadelphia they're supporting the creation of union jobs."*


At the ceremonial groundbreaking of The National (l to r); Rob Buccini, Co-President, The Buccini/Pollin Group; Patrick Eiding, President, Philadelphia Council of the AFL-CIO; Mark Squilla, District 1 Councilman, City of Philadelphia; Lynn Fieldman, Vice President of Construction and Labor Relations, AFL-CIO Investment Trust Corporation; Tom Falvey, President, TN Ward Company; Fred Cosenza, Business Representative - Center City Philadelphia, Chester County, & Delaware County, Building & Construction Trades Council of Philadelphia · AFL-CIO.

On the other side of the country, the BIT is invested in four projects in various stages of development in California:MacArthur Commons, an apartment project in Oakland, Cadence Apartments in South San Francisco, The Griffith in Glendale, and C3 at Culver Pointe in Culver City. The three apartments and one office project have combined total development costs of over $500 million.
 

Ongoing work at Cadence Apartments in South San Francisco, CA, August 2017.
 

Rendering of Cadence Apartments in South San Francisco, CA.


Ongoing work at the Griffith in Glendale, CA, May 2017.
 

Rendering of the Griffith in Glendale, CA.


Ongoing work at C3 at Culver Pointe in Culver City, CA, July 2017.


Rendering of C3 at Culver Pointe in Culver City, CA.

A groundbreaking event was held this summer for MacArthur Commons , a joint venture owned by the BIT andHines. MacArthur Commons will be in the Temescal district of Oakland, California, directly adjacent to the MacArthurBay Area Rapid Transit ("BART") stop. Current plans for MacArthur Commons consist of three separate residential buildings with 395 residential units, a portion of which will be designated affordable housing.


(Above and below)Construction at MacArthur Commons, Oakland, CA, June 2017.




Rendering of MacArthur Commons in Oakland, CA.

"It's one of those projects that checks all the boxes,"* Andreas Cluver, Secretary-Treasurer of the Building and Construction Trades Council of Alameda County said at the event, noting the project's close proximity to transit, inclusion of affordable housing, and its use of union labor in construction.

"Even though my union is not here on this site with you, we, like so many other unions, believe it's smart to invest in creating jobs for our community"* President Kathryn Lybarger of the California Labor Federation said at the groundbreaking. Lybarger serves as an International Vice President for AFSCME and represents over 20,000 University of California workers as President for AFSCME Local 3299.
 

At the ceremonial groundbreaking of MacArthur Commons (l to r); Kevin Chow, Project Manager, Hines; Herb Canada, Vice President of Asset Management, PNC Realty Investors; Lynn Fieldman, Vice President of Construction and Labor Relations, AFL-CIO Investment Trust Corporation; Paul Paradis, Senior Managing Director - West Region, Hines; Lateefah Simon, District #7 Director, Bay Area Rapid Transit (BART); Mayor Libby Schaaf, City of Oakland; Kathryn Lybarger, President, California Labor Federation; Andreas Cluver, Secretary-Treasurer, Building & Construction Trades Council of Alameda County; Clay Flanagan, Senior Vice President, PNC Realty Investors; Brandon Buza, Mortgage Loan & Equity Protection Director, Northwest Mutual Life Real Estate Investments.

MacArthur Commons is the fourth project that the BIT and Hines have collaborated on as joint venture partners since 2010. Construction on their fifth joint venture development, Wolf Point East, is in the beginning stages in Chicago.
 

Construction underway at Wolf Point East (right), next to the site of Wolf Point West (left), Chicago, IL, September 2017.

Designed to stand 660 feet tall, Wolf Point East will tower above its sister project, Wolf Point West. The addition of Wolf Point East to the BIT's portfolio brings the total development costs of BIT projects at Wolf Point to more than $500 million, expanding the BIT's real estate imprint in the Midwest.

Further down the Illinois River, another BIT owned project is currently underway in St. Louis. Similar to the two Wolf Point projects, Encore at Forest Park is being developed directly adjacent to a recently constructed BIT owned property, Cortona at Forest Park. Construction on Encore at Forest Park is expected to be completed in 2018, which also represents a milestone year for the BIT as it marks 30 years since its inception.
 

Construction at Encore at Forest Park in St. Louis, MO, October 2017.


Construction at Encore at Forest Park next to Cortona at Forest Park in St. Louis, MO, October 2017.
 

Rendering of Encore at Forest Park in St. Louis, MO.


Important Notes Regarding the AFL-CIO Building Investment Trust:
*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 during this time period. 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”, the “Trust”, or the “Fund”) is a bank collective trust for which PNC Bank, National Association (“PNC Bank”) is the trustee. PNC Bank is an indirect, wholly-owned 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 for the BIT. PNC has retained the AFL-CIO Investment Trust Corporation (the “ITC”) to provide investor and labor relation services and AFL-CIO ITC Financial, LLC (“ITC Financial”), an indirect, wholly-owned subsidiary of the ITC, to provide marketing 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.

Fees and Expenses: The Trustee pays a trustee fee (the “Trustee Fee”) from the assets of the Trust. The Trustee charges 1.0% on net assets up to or equal to $2 billion, .85% on net assets over $2 billion and less than or equal to $3 billion, and .80% on net assets above $3 billion. The Trustee also charges a .10% fee on capital that has not been committed to a real estate investment. The Trustee pays the fees for the services of PNC Realty Investors, Inc., AFL-CIO Investment Trust Corporation, and AFL-CIO ITC Financial, LLC out of the Trustee Fee (and not from the assets of the Trust). Other than General Administrative Expenses, the Trustee pays from Trust assets all expenses incurred in connection with the investment, administration and management of the Trust out of trust assets (and not out of the Trustee Fee).

Risk Factors: A participant’s investments 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 investments. The BIT may also in the future invest in real estate 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. Rather the information is intended only to aid and be used by representatives of PNC Bank, PRI, ITC and/or ITC Financial in providing information and education regarding the BIT. Neither the information herein, nor any opinion expressed herein, is intended (or should be viewed) as individualized impartial investment recommendations or a suggested course action for an investor to follow, as it generally does not reflect all of the factors that an investor’s particular situation may warrant when considering an investment and does not consider any individual investor’s specific objectives, circumstances or needs, nor does it identify or define all of the risks that may be associated with potential investments. Accordingly, this material is not intended to be viewed or construed as a recommendation, offer or solicitation to purchase or sell any product, security, commodity, currency or other financial instrument, including an interest in the BIT, but is intended only to help evaluate the BIT as a possible investment. The information being provided does not constitute “investment advice” that would make PNC Bank or any affiliate of PNC Bank, PRI, ITC or ITC Financial a “fiduciary” within the meaning of Section 3(21)(A)(ii) of the Employee Retirement Income Security Act of 1974, as amended. 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, ITC or ITC Financial 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 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.

The Fund is operated by PNC Bank who has filed a claim of exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”), and therefore, PNC Bank is not subject to registration or regulation as a pool operator under the CEA.

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