AFL-CIO fund to invest $1B in apartment development.The AFL-CIO AFL-CIO: see American Federation of Labor and Congress of Industrial Organizations. AFL-CIO in full American Federation of Labor-Congress of Industrial Organizations U.S. Building Investment Trust (BIT), a $1.5 billion pooled real estate fund serving pension plans with union beneficiaries, has announced a new investment program that is expected to generate up to $1 billion in investment in apartment development by 2005. The National Apartment Initiative (NAI See Network Associates. ) will seek to finance 25-30 projects, creating up to 4,000 multifamily housing units and millions of hours of union construction work nationwide. Introduced in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. at a briefing at the Waldorf Astoria Hotel, the NAI will target up to $400 million in equity and participating debt investments in apartment developments nationwide. John Sweeney John Sweeney is the name of:
LLC - Logical Link Control and Chairman of the BIT Advisory Board, were on hand to inaugurate in·au·gu·rate tr.v. in·au·gu·rat·ed, in·au·gu·rat·ing, in·au·gu·rates 1. To induct into office by a formal ceremony. 2. the program and were joined by a number of prominent real estate professionals, labor leaders and public officials. President Sweeney said," "We're incredibly proud that the BIT is increasing its commitment to active investment in America's cities. Creating jobs and building housing in urban areas are two of our nation's most pressing needs." The first investment under this new initiative is a joint venture with the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of City-based Dermot Company on the New Development at Kew Gardens Hills, a $109 million mixed-income multifamily project in Queens. BIT has made a commitment to provide $34.9 million in funding for the fourteen-story, 388-unit project. Seventy-eight units will be set-aside for low- and moderate-income families. Work on the project commenced in June. The NAI will seek to focus capital investment on apartment development and redevelopment projects in New York City, Chicago, Philadelphia and other major urban communities nationwide. Through prudent levels of third-party debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and possible co-investment by other equity providers, the BIT expects to generate up to $1 billion in development, and redevelopment activity by 2005. All projects will meet BIT's standard requirement for use of 100% union labor. Since 1996, the BIT has invested in 17 multi-family projects, representing 23% of the BIT's total investment during that period, providing $504.8 million of debt and equity for multifamily construction and creating over 4,000 units of housing. National Apartment Initiative investment guidelines will be consistent with general BIT guidelines but with greater leverage flexibility permitted (up to 70% loan to value) on selected projects. The AFL-CIO Building Investment Trust is a real estate fund serving pension plans with union member beneficiaries. It is managed by its trustee, the Baltimore-based Mercantile-Safe Deposit and Trust Company. |
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