MINNETONKA, Minn., March 18, 2016 /PRNewswire-USNewswire/ -- The AFL-CIO Housing Investment Trust (HIT) today announced a $14.8 million investment into the Zvago Cooperative project, a 54-unit, four-story cooperative for seniors. The project will create approximately 210 jobs across all area business sectors, including 85 union construction jobs.
Zvago Cooperative is a segment of the Glen Lake Redevelopment Project, which includes a 52-unit mixed-use project built in 2008 and a 159-unit senior apartment community built in 2011. With a total development cost of $19 million, the new addition to the community will have views of Glen Lake, a community patio overlooking the lake and adjacent wetlands and amenities, such as a club room, fitness facility, and heated underground parking.
"The HIT is pleased to use union and public pension funds to invest in expanding housing opportunities for seniors in Minnesota," said Chris Shaw, HIT's Senior Investment Officer. "This project will bring much needed senior housing, while creating jobs that will help sustain the local economy. It's a win-win for our investors and the community."
Minnetonka is located on the northern portion of Glen Lake, and is one of seven cities in the southwest suburbs of Minneapolis. The Zvago Cooperative is located close to shopping, recreational opportunities, and a senior community center.
The developer, OneTwoOne, Development LLC, is a wholly-owned subsidiary of Ecumen, one of the 20 largest nonprofit providers of senior housing and aging services in the country. "We were able to put together an innovative financing package thanks to our strong working relationship with Dougherty Mortgage, the FHA lender for the project," said Mr. Shaw.
Zvago Cooperative is the HIT's 76th project in Minnesota. The HIT has invested $902 million to leverage $1.3 billion in financing for these projects, creating 9,685 housing units, an estimated 7,420 on-site union construction jobs, and nearly 17,500 total jobs across industries in the state. These projects have generated an estimated $2.7 billion in total economic benefits, and over $970 million in personal income, including salaries and benefits.
About the HIT
The AFL-CIO Housing Investment Trust (HIT) is a fixed-income investment company registered with the Securities and Exchange Commission that manages over $5.5 billion in assets for over 380 investors, including union and public employee pension plans. The HIT invests primarily in government/agency insured and guaranteed multifamily mortgage-backed securities. With a more than 30-year record that demonstrates the value of union-friendly investments, the HIT is one of the earliest and most successful practitioners of responsible, economically targeted investing. HIT's investment objective is to provide its investors with competitive returns and promote the collateral objectives of generating affordable housing and jobs for union members in the construction-related trades. Since 1984, the HIT has invested over $10 billion (in current dollars) to finance over 101,000 units of housing, creating more than 76,000 union construction jobs. More information is available on HIT's website, www.aflcio-hit.com. Job and economic benefit estimates (in 2015 dollars) are calculated by Pinnacle Economics and the HIT using an IMPLAN input-output model based on HIT project data and secondary source materials.
Michael K. Frisby
SOURCE AFL-CIO Housing Investment Trust