AFL-CIO Fund Launches $1B MF Program

The AFL-CIO Building Investment Trust, Washington, has launched an investment program that is expected to generate up to $1 billion in multifamily development investment by 2005.BIT, a pooled real estate fund serving pension plans, is looking at financing 25-30 projects, creating up to 4,000 multifamily housing units, and providing union construction work nationwide, the AFL-CIO said. The first investment under the initiative is a joint venture with the New York City-based Dermot Co. on the New Development at Kew Gardens Hills, a $109 million mixed-income, multifamily project in Queens. BIT is providing $34.9 million in funding for the 388-unit project. The initiative will invest in projects in major urban communities nationwide and seek third-party debt financing and possibly co-investment from other equity providers, the AFL-CIO said. The projects are expected to meet BIT's requirements for use of exclusively union labor.