AFL-CIO Housing Investment Trust to Provide $33 Million in Financing for Arc Light
Company in San Francisco

San Francisco – The AFL-CIO Housing Investment Trust (HIT) announced in September a $33 million
commitment of union pension capital to finance the Arc Light Co. project, a development
that will create much needed in-town rental apartments. The project will convert an historic
commercial building in the South Beach neighborhood into a multifamily
development.

The development project will transform the former Arc Light Company Station into a five-story
structure with 94 housing units, 20% of which will be reserved for low-income households. 

Arc Light is expected to become San Francisco’s first LEED Gold-Certified residential project.

“The HIT’s investment in the Arc Light project will bring much needed housing, while creating
family-supporting jobs as San Francisco recovers from its worst recession in generations,” said
Stephanie H. Wiggins, HIT’s Chief Investment Officer- Multifamily Finance. “It shows
that prudent investment of union pension funds is a force for positive change in the lives of union
workers, their families, and their communities.”

The project is expected to create an estimated 270 union construction jobs in a city where
the construction industry has been especially hard hit by the economic downturn. All on-site
construction work at the $48 million development will be performed under collective bargaining
agreements with local building and construction trades unions.

The Arc Light project moves the HIT closer to its goal of creating 10,000 union construction jobs.
The HIT is more than halfway towards reaching its goal and expects to surpass 10,000 jobs
nationwide by the spring of 2011.

“We’re very pleased to be part of San Francisco’s drive to create new housing opportunities in
neighborhoods like South Beach,” said Liz Diamond, the HIT Investment Officer who heads its
Western Regional office. “This project exemplifies South Beach’s continuing transition from a
largely industrial area to a more residential-oriented community.”

The HIT was an early investor in the revitalization of the South Beach neighborhood with its
1997 commitment of $42 million for One Embarcadero South, located a few blocks from the Arc
Light site.

The Arc Light building was originally constructed in 1888 and has been used for various

industrial and commercial purposes.