AFL-CIO Housing Investment Trust Invests $46 Million in Two St. Louis Area Multifamily Projects
HIT Financing Provides Hundreds of Housing Units, Creates Union Jobs
Jun 09, 2015, 11:58 ET
ST. LOUIS, June 9, 2015 /PRNewswire-USNewswire/ -- The AFL-CIO Housing Investment Trust (HIT) announced today that it is providing $46 million in financing for two multifamily developments in the greater St. Louis area. Cardinal Ritter Senior Services' St. John Neumann Apartments in Jennings, Missouri, and The Heights at Manhasset Apartments in Richmond Heights, Missouri, will provide 381 units of multifamily housing.
The HIT's investment of $5.1 million in the $8 million St. John Neumann project in St. Louis County, the most populous county in Missouri, will help Cardinal Ritter Senior Services to convert the building from a Section 202 project with a Housing Assistance Payments (HAP) Contract, to a Low Income Housing Tax Credit (LIHTC) development that will enhance the marketability and livability of the building. Built in 1991, St. John Neumann Apartments has 100 units of affordable housing, with all units designated for persons 62 or older, earning at or below 50% of the area median income. The HIT is helping finance new construction of an additional 11 units, substantial rehabilitation of existing units, and refinance the existing Section 202 debt.
In Richmond Heights, also in St. Louis County, construction is set to begin on the new $54 million Heights at Manhasset development. The HIT is investing $42 million of the project's financing. The new building will include 281 market-rate housing units and is located at the center of one of the most job rich areas in the region, with excellent access to the larger region via close proximity to two interstate highways. The project will be the first of four development phases.
"The HIT is excited to provide financing to these projects that will offer affordable housing options to a community that has had limited new construction since 2005," said HIT Executive Vice President and Chief Investment Officer Stephanie H. Wiggins.
All on-site construction work at the two properties will be performed using 100% union labor in coordination with the local building and construction trades unions.
Jeff Aboussie, Executive Secretary-Treasurer of the St. Louis Building and Construction Trades Council, said, "the union community welcomes the HIT's investments in St. Louis County. We know that with the HIT's involvement all the construction work will be done union. That means more family-supporting union jobs for our members and more high quality union-built development for the community."
Under its Construction Jobs Initiative that began in early 2009, the HIT has invested $227 million to support eight projects in the St. Louis metro area, which represents more than 2,860 jobs for members of the local building and construction trades unions. Besides providing a major boost to the local economy, these projects also financed 1,648 new or rehabilitated housing units for local residents. In addition to St. John Neumann Apartments and The Heights at Manhasset, other St. Louis-area projects financed through this initiative are:
- Holy Infant & St. Joseph Apartments, Cardinal Ritter Senior Services' properties in Shrewsbury, St. Louis County: A $13 million rehabilitation project offering 157 housing units affordable for low-income seniors. The HIT provided $6.6 million in financing. The project generated approximately 90 union construction jobs.
- Park Pacific Apartments, St. Louis: A $98 million redevelopment offering 230 housing units. The HIT provided $63 million in financing. The project created an estimated 755 union construction jobs.
- The Laurel, St. Louis: A $175 million redevelopment offering 205 housing units. The HIT provided $45 million in financing. The project generated approximately 1,340 union construction jobs.
- Villas at Crystal Lake, Swansea, IL: A $26 million development offering 216 housing units. The HIT provided $24 million in financing. The project created an estimated 140 union construction jobs.
The HIT has an active track record of financing projects in the St. Louis area. In its 30-year history, the HIT has invested approximately $549 million in 28 St. Louis area projects with total development costs of over $900 million. These projects represent 4,736 housing units and more than 6,380 union construction jobs.
About the HIT
AFL-CIO Housing Investment Trust (HIT) is a fixed-income investment company registered with the Securities and Exchange Commission. It manages $5 billion in assets for more than 370 investors, which include union and public employee pension plans. The HIT invests primarily in government and agency insured and guaranteed multifamily mortgage-backed securities. The HIT is one of the earliest and most successful practitioners of socially responsible, economically targeted investing, with a track record of over 30 years that demonstrates the added value derived from union-friendly investments. The investment objective of the HIT is to provide competitive returns for its investors and to promote the collateral objectives of constructing affordable housing and generating employment for union members in the construction trades and related industries. Since its inception, the HIT has invested $8.5 billion (in 2014 dollars) to finance more than 99,000 units of housing nationwide, generating more than 74,000 union construction jobs. More information is available on the HIT's website, www.aflcio-hit.com.
Michael K. Frisby
SOURCE AFL-CIO Housing Investment Trust
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