During the third quarter of 2014, the Union Labor Life Insurance Company’s Separate Account J (J for Jobs) provided more than $475 million in permanent, land, and construction loans to finance projects across the country.
More than $120 million of those loans will finance new commercial real estate construction in Portland, OR, and Chicago, IL.
In Portland, OR, a loan for $20.5 million will finance construction of Pearl West, a nine-story, 154,000 square-foot office building with 10,478 square feet of ground floor retail and three levels of below grade parking for 150 cars. An additional $20.5 will be provided by other lenders.
“It sends a great message to the community that union dollars are being used in a positive way. We’re actively ploughing our pension fund dollars back into our communities and making them better places to live,” said John Mohlis, executive secretary for the Oregon State Building and Construction Trades Council.
As a condition of Union Labor Life’s participation in the loan, all construction will be built with union labor. “Ullico is labor’s company and we’re pleased to be putting union pensions, union members and union contractors to work on Pearl West with this loan,” said Edward M. Smith, president and CEO of Ullico Inc.
Pearl West construction is projected to create 160 union jobs and more than 319,000 work hours.
Ullico Inc. also recently announced the closing of nearly $77.5 million in loans to help finance the construction of Chicago’s River Point and 545 McClurg Court.
Up to $47.5 million in financing will be provided by Separate Account J and its affiliated WorkAmerica fund for River Point, a 52-story office building in Chicago’s West Loop. The 1.05 million square foot property, located at 444 W. Lake Street, includes a 150-car parking garage and will be LEED Pre-Certified Gold. An additional $265.23 million will be provided by additional lenders.
Nearly $30 million in financing will be provided for 545 McClurg Court, a 45-story luxury apartment building with approximately 5,000 square feet of ground level retail and a 290-car parking structure in the Streeterville neighborhood of downtown Chicago. An additional $60 million will be provided by additional lenders.
“These are our fourth and fifth loans in Chicago this year and we’re very pleased to provide the lending for these new construction projects,” 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.
Earlier this year, Ullico announced $87.59 million in loans to finance the construction of 3 other Chicago real estate projects: Wolf Point West, New City and 200 N. Michigan.
“Chicago is one of the strongest organized labor cities in the country and we’re proud to be able to add to the skyline of this great union town,” said Smith. “The hard-working union members will benefit not only from the pension investment, but also with the union jobs the construction will create.”
J for Jobs has the goal 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 430 real estate projects nation-wide totaling in excess of $12.5 billion, including over 40 projects in metropolitan Chicago worth more than $1.5 billion.
Separate Account J is managed by The Union Labor Life Insurance Company (Union Labor Life) 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.
Separate Account J is offered through a group annuity contract issued by The Union Labor Life Insurance Company. The group annuity contracts are marketed and sold through Ullico Investment Company, Inc. (Member FINRA/SIPC) to qualified institutional investors. Separate Account J will only be sold to US pension and profit-sharing plans that meet the qualifications of Section 401 of the Internal Revenue Code of 1986 (IRC), annuity plans which meet the requirements for the deduction of the employers’ contribution under IRC section 402(a)(2), or subject to certain conditions, governmental plans as defined in the IRC Section 414(d). 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.