Washington, D.C. (April 10, 2014) — Ullico Inc. today announced $57.5 million in lead financing on a $210 million loan to finance the construction of 10000 Santa Monica, an 42-story, 283-unit apartment tower in Beverly Hills, California. The loan is financed by Ullico Inc. subsidiary The Union Labor Life Insurance Company's (Union Labor Life) Separate Account J (also known as 'J for Jobs'). The remaining $152.5 million in construction financing will be funded by additional loan participants.
As a condition of Union Labor Life's participation in the loan, all construction will be built with union labor. J for Jobs, Union Labor Life's commercial real estate investment vehicle, has a tradition of delivering attractive and 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 30 real estate projects in Southern California totaling over $950 million. Nationwide, J for Jobs has financed more than 430 projects, totaling over $12.5 billion, helping to grow unions and union employers, create union jobs and stimulate local economies.
"I am so pleased to see construction cranes back in the Los Angeles area," said Edward M. Smith, president and CEO of Ullico Inc. "There is important work to be done by the members of the Los Angeles/Orange Counties Building and Construction Trades Council and we are excited that 10000 Santa Monica will putting union pension dollars, union members and union contractors to work."
"Southern California has provided us with many great real estate investment opportunities, and we're excited to be the lead lender on 10000 Santa Monica," said Herbert A. Kolben, senior vice president of Union Labor Life's Real Estate Investment Group which provides lending and loan servicing for commercial real estate projects. "From the award winning Red Building to the L.A. Live entertainment complex, Ullico is proud to be an important part of this great city."
Crescent Heights will be responsible for developing, leasing and managing the 10000 Santa Monica property.
Separate Account J is sold through Ullico Investment Company, Inc. and is made available 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.