The Union Labor Life Insurance Company’s Real Estate Investment Group (REIG) is off to another strong start this year. Through Separate Account J (J for Jobs), REIG has recently closed three deals to finance new commercial real estate projects in Chicago and New Jersey, amounting to $292.1 million in loans.
As a condition of Ullico’s participation in the loans, all construction will be built using union labor. Additional funding for the three projects is provided by other lenders.
THE LOANS INCLUDE:
For the development of Hudson Exchange B, a 35-story, 432-unit residential rental building, with 9,000 square feet of ground-floor retail, located in the Eastern part of Jersey City.
For the construction of Union West, a pair of 15-story brick-and-glass towers, comprising 357 Class AA luxury apartments in Chicago's burgeoning and affluent Fulton Market District.
For the construction of 110 N. Wacker, a 55-story office building located in the Central Business District of Chicago.
"We're proud of our reputation for conservative yet flexible underwriting, deal structuring and execution," 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. "We're constantly seeking prudent investment opportunities that benefit investors and union labor, like these projects in Chicago and New Jersey."
J for Jobs is dedicated to 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 500 real estate projects nation-wide totaling in excess of $16 billion.
"These investments will not only benefit union pension funds, but also put union members and union contractors to work," said Edward M. Smith, president and CEO of Ullico Inc. "As jobs are created, workers earn personal income and contributions to their fringe benefit funds. In what amounts to a virtuous cycle, those funds can be reinvested back in projects that create jobs. As a result, communities grow stronger while workers' futures are secured."
Separate Account J (“the Fund”) is offered through a group annuity contract issued by The Union Labor Life Insurance Company (“Union Labor Life”) and is sold through Ullico Investment Company, LLC (Member FINRA/SIPC), both subsidiaries of Ullico Inc. The Fund will only be offered to qualified institutional and accredited investors. Investments in commercial mortgage loans secured by illiquid real estate are subject to additional risks including the potential inability of an investor to redeem units. The investment return and principal value of the Fund will fluctuate so that an investor's units, when redeemed, may be worth more or less than original cost. In addition, fluctuations in interest rates and market volatility may limit available financing for real estate investments held by the Fund, thereby adversely affecting the value of the underlying investments, the investment return and the liquidity of the investments.
Furthermore, the loan values determined could vary significantly from the prices at which the investments would sell because market prices can only be determined by negotiation between a willing buyer and seller. The ability of borrowers to repay loans issued by the Fund 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. There is no guarantee that Union Labor Life will attain its investment objectives. Potential investors in the Fund should carefully read the Fund Disclosure Memorandum for a description of the potential risks associated with investment in the Fund.