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MidWest@Work 
AN INVESTMENT STRATEGY FOR THE MIDWEST AFL-CIO Housing Investment Trust Status Update Winter 2018-19 |
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MidWest@Work Footprint
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AFL-CIO HOUSING INVESTMENT TRUST MidWest@Work Strategy Winter 2018-19 Status Update OVERVIEW The AFL-CIO Housing Investment Trust (HIT) and its subsidiary Building America CDE, Inc. (Building America) have invested $614 million invested in 30 projects under the MidWest@Work Strategy, representing over 55% of the strategy’s $1.1 billion investment target in less than three years. The HIT has invested $596.4 million in 28 projects and Building America has provided $17.5 million in New Markets Tax Credits (NMTCs) to two projects since the strategy’s inception in early 2016 through December 2018. With nearly $1.3 billion in total development investment, the strategy has built or preserved close to 4,200 housing units, and created an estimated 5,470 union construction jobs and over 450 permanent jobs. The HIT pledged to focus its investing efforts primarily in nine cities – Detroit, St. Louis, Buffalo, Pittsburgh, Cleveland, Columbus, Milwaukee, Saint Paul, and Minneapolis – and other Midwest communities, and is implementing specific investment initiatives to address local economic development and revitalization needs. To date, investments have been made in six of the nine core markets: Detroit; St. Louis; Buffalo; Cleveland; Saint Paul; and Minneapolis; as well as in Chicago, IL, Rolla, MO, Rochester, MN, and Duluth, MN. Working with selected developers, mortgage bankers, and housing finance agencies, and continuing to broaden outreach to other market participants to identify additional projects, the HIT and Building America have built a solid pipeline of projects for 2019 and beyond. A key part of MidWest@Work is connecting the investments with the broader economic revitalization of Midwestern cities, as it incorporates pre-apprenticeship training, single family home repair, and links with the creation of manufacturing and other permanent jobs, when possible, through investments by Building America.
IMPACT OF MIDWEST@WORK STRATEGY $2.3B total economic benefits 13,300 total jobs across industries in communities where projects are located 11.0M hours of union construction work; 5,470 jobs $857M wages & benefits, $370M for union construction workers 4,190 housing units with 61% affordable or workforce housing $246M total tax revenue, with $92M for state & local governments Economic Impact Data: Jobs, hours of construction work and economic benefits in this report are estimates calculated by the HIT using an IMPLAN input-output model developed by Pinnacle Economics and based on project data from the HIT and its subsidiary Building America. 2016-December 2018. In 2017 dollars.
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MIDWEST@WORK PROJECTS THROUGH DECEMBER 31, 2018
| Project Name | City, State | Total Units |
Affordable Units |
Union Construction Hours | HIT/Building America Investment |
Total Development Investment |
| Zvago Cooperative at Glen Lake | Minnetonka, MN | 54 | 0 | 167,600 | $14,821,600 | $18,981,774 |
| Paul G. Stewart Apartments III | Chicago, IL | 180 | 180 | 288,000 | $16,296,000 | $31,426,808 |
| Detroit Home Repair Program I | Detroit, MI | 4 | 4 | 8,500 | $246,000 | $430,490 |
| Rolla Apartments | Rolla, MO | 150 | 150 | 208,300 | $5,188,300 | $21,700,000 |
| District Flats at Miller Hill | Duluth, MN | 72 | 0 | 126,200 | $11,213,000 | $14,036,105 |
| West Town Housing Preservation | Chicago, IL | 318 | 318 | 1,088,900 | $60,404,300 | $121,182,660 |
| Detroit Home Repair II | Detroit, MI | 5 | 5 | 13,700 | $660,114 | $694,857 |
| Detroit Manufacturing Systems* | Detroit, MI & Toledo, OH | 0 | 0 | 0 | $8,500,000 | $36,928,000 |
| Union Flats | St. Paul, MN | 217 | 217 | 615,800 | $30,630,000 | $68,476,863 |
| 1500 Nicollet | Minneapolis, MN | 183 | 183 | 539,200 | $34,120,000 | $61,736,138 |
| The Fountains of Ellisville | Ellisville, MO | 229 | 0 | 174,800 | $17,517,500 | $18,213,929 |
| Covenant Place II | St. Louis, MO | 102 | 102 | 234,900 | $6,687,100 | $24,471,938 |
| Lathrop Homes Phase IA | Chicago, IL | 414 | 414 | 1,580,200 | $22,000,000 | $175,865,785 |
| 30 East Adams Apartments | Chicago, IL | 176 | 0 | 447,100 | $44,685,300 | $49,755,134 |
| Pioneer Apartments | St. Paul, MN | 143 | 143 | 403,700 | $14,475,000 | $48,739,737 |
| Fontaine Towers | Rochester, MN | 151 | 151 | 120,200 | $20,000,000 | $28,856,304 |
| Green on Fourth Apartments | Minneapolis, MN | 243 | 66 | 505,100 | $42,654,700 | $56,169,929 |
| The Heights at Manhasset Mortgage Increase | Richmond Heights, MO | 0 | 0 | 16,000 | $1,670,000 | $1,670,000 |
| Zvago Cooperative at St. Anthony Park | St. Paul, MN | 49 | 0 | 165,200 | $14,577,500 | $18,185,346 |
| Northland Central* | Buffalo, NY | 0 | 0 | 1,020,500 | $9,000,000 | $110,590,381 |
| Elevate at Southwest Station | Eden Prairie, MN | 222 | 45 | 541,000 | $49,500,000 | $63,510,988 |
| Zvago Cooperative at Central Village | Apple Valley, MN | 58 | 0 | 164,000 | $15,815,400 | $19,680,017 |
| The Chamberlain | Richfield, MN | 316 | 64 | 420,600 | $48,277,000 | $62,509,690 |
| Riverdale Station ((East) | Coon Rapids, MN | 180 | 0 | 325,700 | $28,350,000 | $38,273,494 |
| Riverdale Station ((West) | Coon Rapids, MN | 71 | 55 | 138,700 | $6,925,000 | $17,489,676 |
| Project 29 (Church + State) | Cleveland, OH | 158 | 0 | 459,200 | $39,000,000 | $54,834,231 |
| Montclare Sr. Residences -Calumet | Chicago, IL | 134 | 101 | 464,000 | $9,200,000 | $32,721,472 |
| Montclare Sr. Residences -Englewood | Chicago, IL | 102 | 102 | 352,200 | $2,300,000 | $25,397,680 |
| Mark Twain SRO Apartments | Chicago, IL | 148 | 148 | 185,700 | $27,278,700 | $39,905,499 |
| Lake Street Housing | Minneapolis, MN | 111 | 111 | 221,400 | $11,890,000 | $27,554,885 |
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Total – 30 projects |
4,190 |
2,559 |
10,996,400 |
$613,882,514 |
$1,289,989,810 |
*Projects receiving New Markets Tax Credits from HIT subsidiary Building America
Economic Impact Data: Jobs, hours of construction work and economic benefits in this report are estimates calculated by the HIT using an IMPLAN input-output model developed by Pinnacle Economics and based on project data from the HIT and its subsidiary Building America. 2016-December 2018. In 2017 dollars.
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RECENT MIDWEST PROJECT HIGHLIGHTS
Project 29 (Church + State)
158 units - $39.0M HIT - $54.8M TDC – 228 jobs
Project 29 (Church + State), Cleveland, OH
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$54.8 million new construction of a 158-unit
market-rate apartment complex, which will include
two residential
towers, parking, and commercial
space.
• First HIT investment in Ohio since 2012.
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HIT committed to purchase $39.0 million Ginnie
Mae construction loan certificates and a permanent
loan certificate.
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Creating an estimated 459,200 hours of union
construction work (228 jobs).
Mark Twain SRO, Chicago, IL
Mark Twain SRO
148 units - $27.3M HIT - $39.9 TDC – 93 jobs
• $39.9
million substantial rehabilitation of an
affordable 148-unit SRO (single room occupancy)
mid-rise tower, built as a hotel in
1932. The
renovated property will include two elevators.
•
HIT commited to purchase of a total of $27.3
million Ginnie Mae construction loan certificates
and permanent
loan certificates.
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Creating an estimated 185,700 hours of union
construction work (93 jobs).
The Chamberlain
316 units - $48.3M HIT - $62.5M TDC – 209 jobs
The Chamberlain, Richfield, MN
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$62.5 million new construction and substantial
rehabilitation of a 316-unit mixed-income
apartment complex. Three new buildings are being
constructed adjacent to three existing buildings that
are being renovated. 20% of the units will be
affordable.
•
HIT committed to purchase $48.3 million Ginnie
Mae construction loan certificates and a permanent
loan certificate.
• Creating an estimated 420,600 hours of union construction work (209 jobs).
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Lake Street Housing, Minneapolis, MN
Lake Street Housing
111 units - $11.9M HIT - $27.6M TDC – 111 jobs
• $27.6 million new construction of a 111-unit, 100%
affordable transit-oriented development with green
features.
•
HIT committed to purchase $11.9 million Ginnie
Mae construction loan certificates and a permanent
loan certificate.
•
Creating an estimated 221,400 hours of union
construction work (111 jobs).
Investors should consider the HIT’s investment objectives, risks and expenses carefully before investing. A prospectus containing more complete information may be obtained from the HIT by calling the Marketing and Investor Relations Department collect at 202-331-8055 or by viewing the HIT’s website at www.aflcio-hit.com. The prospectus should be read carefully before investing.
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AFL-CIO HOUSING INVESTMENT TRUST
2401 Pennsylvania Avenue, NW, Suite 200, Washington, DC 20037
(202) 331-8055
www.aflcio-hit.com
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