The AFL-CIO Housing Investment Trust (HIT) announced 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 in San Francisco.

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The project will convert a five-story historic commercial building in the South Beach neighborhood at 178 Townsend into 94 housing units, 20% of which will be reserved for low-income households.

It will include an underground parking facility, more than 4,400 sq ft of retail space and a children’s day care center. With its many green features, Arc Light is expected to become San Francisco’s first LEED gold-certified residential project.

Arc Light Co. is being developed by Martin Building Co. of San Francisco, a multi-disciplinary design and development firm with special expertise in historic preservation and neighborhood-oriented urban infill development. Architectural design services were provided by HKS Inc., and the general contractor is James E. Roberts-Obayashi.

The project is expected to create an estimated 270 union construction jobs.