During the third quarter of 2015, The Union Labor Life Insurance Company's Separate Account J (J for Jobs) provided more than $317 million in permanent, land, and construction loans to finance projects across the country.
"We can talk about the development that we wish to see in Boston, but without action, not much can be done," said Boston Mayor Marty Walsh. "Ullico understands that we cannot build a brighter future without the necessary funding to support our vision of providing living wages that build up the working, middle class; providing pathways to employment in the workforce; and creating housing opportunities for the people of Boston, who should be able to stay and thrive here. I extend my gratitude to Ullico for its support and look forward to continued collaboration."
Up to $78 million of those loans will finance construction of a multi-family rental project in East Boston.
The project will include 259 units in a new Class A, 16-story tower with lofts, rooftop terrace, outdoor pool, fitness facilities, and community rooms. An additional 4,900 square feet of ground floor retail will be available, along with surface and structured parking for 172 vehicles. Located on the waterfront, the building will have unobstructed views of the harbor, the central business district skyline, and the surrounding seaport.
"This venture demonstrates the ability to combine first mortgage debt and equity dollars from union sources to create much-needed residential housing that will be constructed by Boston-area union workforce," 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 loan was approved with the condition all construction will be built with union labor.
"Boston is a great city with a long tradition of supporting workers. With this investment, we look forward to capitalizing on Ullico's momentum, as we help strengthen communities and families by creating union jobs," 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 475 real estate projects nation-wide totaling in excess of $15 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. Investment in illiquid real estate and commercial mortgage loans are subject to additional risks including valuation risks, risks associated with commercial property and multi-family housing loans, the uncertainty of Union Labor Life attaining its investment objectives and 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.