Gateway Northeast
Minneapolis, MN
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HIT Investment
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Total Development Cost
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Units of housing, with 60% affordable units
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Hours of Union Construction Work Generated
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Tax revenue generated
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Total economic benefit
“These HIT funded projects really help us provide multifamily housing. We have been faced with an affordable housing crisis just like many places, so the more we can build the better it will be for working families. And it seems the HIT is always there to help us out.”
—Dan McConnell, Business Manager,
Minneapolis Building and Construction Trades Council
PROJECT DESCRIPTION
The AFL-CIO Housing Investment Trust (HIT) is financing the $38.7 million new construction of the Gateway Northeast development in Minneapolis, MN. This will be a five-story, mixed-use, multifamily housing project that will include 8,121 square feet of first floor retail space. The project will consist of 128 total units, of which 60% (77 units) will be designated as affordable.
HIT ROLE
The HIT is purchasing $21 million of Bonds issued by the City of Minneapolis under the Fannie Mae M.TEB program from Dougherty Mortgage, LLC. The complex financial structure included at least eight sources to bring the project together. The HIT requires 100% union labor on all of its construction-related investments.
SOCIAL IMPACT
Like many of the HIT’s Twin City projects, Gateway Northeast will be a mixed income development. The project will have 26 units restricted to households earning 50% or less of the Area Median Income (AMI) and will receive Project-Based Vouchers from the Minneapolis Public Housing Authority. An additional 51 units will be restricted to individuals and families earning 60% or less of the AMI. The project will also meet the Enterprise Green Communities Criteria, as required by the City of
Minneapolis.
The project will create 273,760 hours of union construction work and generate $69.9 million in total economic benefits. The project is HIT’s 95th project in Minnesota.
*Job and economic impact figures are estimates calculated using IMPLAN, an input-output model, based on HIT project data. The data is current as of March 31, 2020. Economic impact data is in 2019 dollars and all other figures are nominal.
This page provides information about a project or projects financed by the HIT which may or may not be reflective of other financed projects or refer to an asset currently held in the HIT’s portfolio. Investors should consider the HIT’s investment objectives, risks, charges, and expenses carefully before investing. This and other information is contained in HIT’s prospectus, available at aflcio-hit.com or by calling 202-331-8055. The prospectus should be read carefully before investing.