A union investment fund announced plans today to renovate an aging, eight-story office building in St. Paul’s Lowertown district. The project will create 134 market-rate multifamily housing units and an estimated 190 union construction jobs.
The AFL-CIO Housing Investment Trust (HIT) unveiled the $42.3 million project, dubbed “333 on the Park,” in a press release. A fixed-income investment company, the HIT manages over $5.5 billion in assets for over 380 investors, including union and public-employee pension plans.
Don Mullin, head of the St. Paul Building and Construction Trades Council, said the Lowertown project exemplifies the HIT’s commitment to investing in the value of union craftsmanship.
“The rehabilitation will provide jobs for our members while increasing the area’s number of multifamily housing units,” Mullin said. “This is a good example of investing union pension dollars to create construction jobs with health care and retirement benefits, at the same time benefiting the community at large. It’s a win-win scenario for St. Paul residents, HIT, and the St. Paul Building Trades.”
Originally constructed in 1913, the property is located at the intersection of 5th and Sibley, alongside many older buildings also being renovated into multifamily, retail and office uses. The property will include approximately 6,900 square feet of commercial space and underground parking, with studio, one-, two- and three-bedroom apartments.
Federal and state historic tax credits will contribute to the total development cost; HIT’s total investment is $27.7 million.
“333 on the Park exemplifies the HIT’s continuing commitment to St. Paul,” said HIT Senior Investment Officer Chris Shaw. “It represents quality housing that is close to mass transit and within walking distance of many attractions so that people have better access to jobs and services and community amenities. We are pleased to help make this project a reality.”
The new project marks the HIT’s 10th investment in St. Paul, creating 1,181 housing units, an estimated 1,120 union construction jobs and nearly 2,700 total jobs across industries in the community. HIT projects have generated an estimated $420 million in economic benefits and nearly $150 million in personal income, including salaries and benefits, according to the fund.