The LongView Ultra fund was created to provide a sound means to invest in a portfolio of high-quality, short-term construction loans secured by the projects being built. All projects financed by LongView ULTRA use 100% union labor. This fund is available to all qualified pension plans.
History of LongView ULTRA
Amalgamated Bank's construction loan strategy began in November 1998-with current assets of $132 million. The first project closed in August 1999. To date, four projects are complete and paid off, there are currently eight active projects with two closings pending final due diligence. The Fund is a commingled trust established under the laws of the State of New York. The trustee, investment manager, and custodian is Amalgamated Bank.
What Makes Us Different
Our loan portfolio consists of a variety of real estate construction loans in different geographic areas. Since inception, we have done numerous projects in: Boston; Chicago; Philadelphia; Washington, D.C.; as well as a number of locations in California. Once construction loans are repaid, we promptly reinvest funds into new projects-continuing a cycle of job creation and growing economic impact.
Portfolio Managers
Senior Vice Presidents Roy Dickinson and Deborah Nisson are the portfolio managers for the LongView ULTRA Construction Loan Fund-each with over 25 years in the real estate business. They are based in our Washington, D.C. office and can be reached at 202-721-0776 and 202-721-0778, respectively.
In addition to the underwriting criteria established by Amalgamated Bank, all projects financed by LongView ULTRA must be constructed using 100% union labor, no exceptions.
The loan amount cannot exceed 80% loan to value (value at completion and stabilization) and the developer must have real equity of ten percent in the project. Land value may be considered in determining equity. Personal guarantees are generally required.
Loan Rates and Commitment Fees are based on market rates and are competitive with both local and national banks.
LongView ULTRA policy requires that a project have an exit strategy. The specific type of exit strategy depends on the property type.
LongView ULTRA has normal due diligence requirements for any construction loan. These requirements include an independent appraisal, an initial review of the plans and specifications and hard cost budget by LongView ULTRA's consulting engineer, an environmental review by LongView ULTRA's environmental consultant, and an internal market review.
Loan Approval:
An Investment Committee established by Amalgamated Bank reviews all LongView ULTRA loans. The Investment Committee has the following members: Amalgamated Bank's President, the LongView ULTRA portfolio managers, four Amalgamated Bank senior vice presidents and an independent real estate consultant. There is a three-step loan approval process.
An initial review of the proposed loan is discussed with the developer. If the Bank, as trustee of LongView ULTRA, decides to proceed, the loan is presented to the investment committee for a concept approval. If approval is given, the Bank then begins final negotiations with the borrower using a detailed discussion term sheet. Once the deal is structured, the borrower submits a loan application containing all of the negotiated details and a deposit to cover the due diligence expenses.
After LongView ULTRA accepts the application, a detailed loan recommendation memorandum is prepared and presented to the Investment Committee. The due diligence process begins during this step.
If the Investment Committee approves the loan, the loan is recommended to the Trust Committee of the Board of Directors of Amalgamated Bank for final approval. After final approval, the process for loan closing begins.
