CONSTRUCTION MOVES ABOVE GROUND IN THE WINDY CITY
Chicago, IL (June 14, 2018)- The AFL-CIO Investment Trust Corporation (“ITC”) launched its celebration of the 30th Anniversary of the BIT by hosting a special groundbreaking ceremony at the BIT’s latest joint venture project along the Chicago River, Wolf Point East. Participants of the June 14 event groundbreaking event included: Ralph Affrunti, president of the Chicago & Cook County Building & Construction Trades Council; Robert Reiter, president of the Chicago Federation of Labor (“CFL”); and Michael Carrigan, president of the Illinois AFL-CIO. Immediately after the groundbreaking ceremony, the ITC hosted a worker appreciation luncheon for the union craftspeople who have recently taken the project to street level.
Local and state labor leaders gathered to thank the union workers at the site for their skill and dedication.
The ITC invited special guest speakers Eric Dean, General President of the International Association of Bridge, Structural, Ornamental, and Reinforcing Iron Workers (“Ironworkers”); and Jethro Head, International Vice President of the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union (“BCTGM”). Chris Kennedy addressed the crowd on behalf of the BIT’s Wolf Point East partners, as well as Alderman Brendan Reilly, who represents Chicago’s 42nd Ward, which includes the area around Wolf Point.
According to building permits issued by the City of Chicago as of June 30, 2018*, the Wolf Point East project has been the largest site of new construction, by estimated total development cost, in the city since the first half of 2015. With an estimated total development cost over $360 million, the luxury residential tower is the second joint venture between the BIT, HINES, and Joseph P. Kennedy Enterprises. Walsh Construction is the general contractor on the 60-story east tower, which is also the second phase of the $1 billion Wolf Point master plan that includes a public river-walk at the confluence of the North, South, and Main branches of the Chicago River.
Around 200 union construction workers on the Wolf Point site were treated to a break from the summer sun when work was temporarily brought to a stop. ITC President Stotz opened up the event by thanking the representatives of Segal Marco Advisors and Marquette Associates in attendance for their role in helping the BIT connect with its labor affiliated investors. Then he introduced CFL President Reiter to welcome the crowd to Chicago and acknowledge the labor leaders of Illinois in attendance. Stotz introduced BCTGM Vice President Head by informing the crowd that the BCTGM was the very first union with a pension plan invested in the BIT.
“I want to take a moment to call you to action to help support your neighbors with the BCTGM, which in turn can help keep the BC Pension Fund strong,” VP Head said on stage. The Chicago native who began his career as plant cleaner at a nearby candy production facility continued, “which helps the BCTGM support good paying jobs like the ones you see here.”
Another native of the city, Ironworkers President Dean used his time at the podium to directly address the two dozen Ironworkers working on the site and their union counterparts in the building trades. President Dean said that BIT projects should give them a new appreciation for their union-affiliated neighbors who aren’t in construction, like those in the BCTGM, because of how their investment can help to generate local construction jobs.
…We take our role as stewards of this part of Chicago very seriously and have assembled what we view as a very good development team. – Chris Kennedy
“We take our role as stewards of this part of Chicago very seriously and have assembled what we view as a very good development team,” Kennedy said. He then complemented the work of architects Pelli Clarke Pelli and Pappageorge Haymes, as well as Walsh, Hines, and the union labor force working on the east tower.
The final speaker before the delegates ceremonially broke ground was Alderman Reilly. Reilly thanked the local labor leaders in attendance, and the BIT for demonstrating a continued commitment to building projects in his city, which didn’t just benefit his Ward, but working families from across the region. After the groundbreaking, the construction workers on site were provided lunch by the joint venture group and prepared by Gibsons, a nearby restaurant staffed with union labor.
Other attendees at the event included Gary Perinar, Executive Secretary-Treasurer of the Chicago Regional Council of Carpenters; Kevin Connolly of the International Brotherhood of Electrical Workers (“IBEW”) Local Union 134; Bart Holzhauser of the Chicago Journeymen Plumbers Local Union 130, United Association; Chris Willardsen, President of the National Association of Broadcast Employees – Communications Workers of America Local 41; Brian Wrubel, President & C.E.O. of Marquette Associates; David Wojick of Segal Marco Advisors; and representatives from Pelli Clarke Pelli, Pappageorgehaymes Partners, Citizens Bank, Akerman L.L.P., Ullico, the Bank of Labor, and more.
Important Notes Regarding the AFL-CIO Building Investment Trust:
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. Opinions or statements herein by third parties are not representations, warranties, or opinions of PNC Bank. The inclusion or listing of these third parties also should not be considered an endorsement by these third parties or participants.
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. ITC Financial is a registered broker dealer under the U.S. Securities and Exchange Commission (“SEC”) Act of 1934, as amended, and member with the Financial Industry Regulatory Authority, Inc. (“FINRA”). 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.