A groundbreaking ceremony took place this morning at Wolf Point West Tower featuring more than one hundred and fifty workers and local labor leaders. Wolf Point West Tower is a $160 million, 48-story multifamily project being built in Chicago. The AFL-CIO Building Investment Trust (BIT) indirectly provided a $34 million equity investment in the project, and BIT’s partners and a third-party lender provided the remaining funds for the development.
Wolf Point West will feature 509 luxury rental units, market leading amenities, over 400 feet of publicly accessible river walk, and extensive green space. Initial occupancy is expected in the fall of 2015. Wolf Point West is the first of three new buildings to be built on the Wolf Point site, which together are estimated to create more than 2,000 construction jobs.
“Wolf Point is a continuation of the BIT’s strategy to invest in the development of multifamily rental product, and we expect that the BIT will benefit from strong demographic trends and anticipated rental growth in Chicago,” said Kevin McCarthy, President, PNC Realty Investors.
In the Chicago area, over the life of the AFL-CIO Building Investment Trust, the Fund has committed over $490 million for the development and acquisition of 18 projects, a total of more than 3,200 housing units and 2,200,000 square feet of commercial real estate. BIT development projects in the area total over $790 million in development costs and have created over 3900 union construction jobs.
“We are thrilled that the AFL-CIO Building Investment Trust is investing in yet another development project in Chicago. It shows the potential of union pension dollars, not only to generate competitive returns, but to create hundreds of local jobs,” said Michael Carrigan, President, Illinois AFL-CIO.
The BIT and its joint venture partner recently completed a 45-story apartment tower located at 500 Lake Shore Drive (located one block from Chicago’s famed Navy Pier), representing a $157 million investment that created approximately 750 union construction jobs. It has 44 stories, 500 units, and 430 parking spaces.
“Hines, together with Wolf Point Owners, Magellan Development Group and all of our project partners, architects, consultants, and contractors, is proud to be breaking ground on this exciting new project,” said Greg Van Schaack, Hines Senior Managing Director. “This ceremony is the culmination of several years of hard work by everyone involved and we are excited to see this new building rise on Chicago’s riverfront.”
The event was attended by representatives from the Illinois AFL-CIO, the Chicago Federation of Labor, the Chicago & Cook County Building & Construction Trades Council, the AFL-CIO Building Investment Trust, PNC Realty Investors, Inc., Hines, Magellan Development Group, the Wolf Point owners, and the AFL-CIO Investment Trust Corporation.