Unions Are Big Business

I’ve reported in the past about NEA’s foray into Indiana real estate, but that was a measure taken to solve an affiliate insolvency problem. The United Federation of Teachers in New York City routinely operates at the highest levels of commercial real estate. The union purchased its current headquarters building at 50 Broadway in 2002 for $53.75 million – financed by the sale of three midtown properties for $63.6 million.

Last week, UFT secured $54.5 million in first mortgage financing for the building, which is 20 percent occupied by the union and 80 percent occupied by other parties, including many non-profit organizations and affiliated unions.

The deal came with a line of credit and letter of credit for the union. All told, more than enough to cover the rent in Boca Raton.