Washington, D.C. (August 4, 2015) — Ullico recently committed to provide up to $158 million to finance the construction of two 4-story Class A buildings with 407,400 square feet of office space, located in the Playa Vista submarket of West Los Angeles. The property will also include 17,200 square feet of retail and daycare space, as well as 1,222 parking spaces.
"West Los Angeles is an emerging technology and entertainment hub that attracts major Fortune 500 companies. Its central location has contributed to high occupancy, rental rates and tenant retention," said Herb Kolben, senior vice president of Union Labor Life's Real Estate Investment Group, which provides lending and loan servicing for commercial real estate projects.
Financed by The Union Labor Life Insurance Company on behalf of its Separate Account J (known as 'J for Jobs'), the loans were approved with the condition all construction will be built with union labor.
"Good jobs are essential to strong communities. Our mission is to protect and grow the union workforce, and I promise you, we are working every day to meet that goal in California and beyond," said Edward M. Smith, president and CEO of Ullico Inc.
J for Jobs has a goal of delivering competitive fixed-income performance to institutional investors over the long-term. Since its inception in 1977, J for Jobs has participated in the funding of more than 430 real estate projects nation-wide totaling in excess of $12.5 billion.
Separate Account J is managed by The Union Labor Life Insurance Company and sold through Ullico Investment Company, Inc. (member FINRA/SIPC), both subsidiaries of Ullico Inc., and is offered to properly qualified institutional and accredited investors only.
For more than 85 years, Ullico, the only labor-owned insurance and investment company, has been a proud partner of the labor movement, keeping union families safe and secure. From insurance products that protect union members, leaders and employers, to investments in building projects that have created thousands of union jobs, our customers continue to trust us with protecting their families, employees and investments. The Ullico Inc. family of companies includes The Union Labor Life Insurance Company; Ullico Casualty Group, Inc.; Ullico Investment Company, Inc.; and Ullico Investment Advisors, Inc. For additional information, visit www.ullico.com.
Investment in illiquid real estate and commercial mortgage loans are subject to additional risks including the potential inability of an investor to redeem units. In addition, fluctuations in interest rates and market volatility may limit available financing for real estate investments thereby adversely affecting the value of the underlying investments, the investment return and the liquidity of the Account. The ability of borrowers to repay loans issued by Separate Account J will typically depend upon the successful construction or operation of the related real estate project and the availability of financing. The repayment of loans issued for the construction of multifamily housing (i.e condominium loans) will generally depend on the borrower's ability to sell the underlying housing units.