WOODLAND HILLS, CA (March 6, 2006) Younan Properties has announced the successful resolution of a labor dispute with Service Employees International Union (SEIU) Local 1 with an agreement that put a handful of union janitors back to work at the Woodland Hills, Calif.-based firm's three Class A office buildings in Northwest Chicago. With ABM Lakeside union crews now in place at Embassy Plaza, One North Arlington and Prairie Stone Commons, Younan Properties is effectively fulfilling its responsibility to both investors and tenants in providing the most efficient and cost effective management of its Class A office properties.
We strongly believe that unions, their affiliates and Local 1 in Chicago have had a positive impact on the productivity of the U.S. workforce, said Zaya S. Younan, Chairman & CEO of Younan Properties, Inc. Reaching back to America's Great Depression, we have had many family members involved in this great labor movement, which has benefited our nation. However, we at Younan Properties, Inc. will continue to search for the most efficient and cost effective way to manage our buildings for our investors and tenants. This is our fiduciary responsibility, and one that we take seriously.
Younan has much to be serious about since Chicago is an area his firm has targeted for aggressive expansion over the next year. With a $1 billion acquisition goal in Northwest Chicago, Younan Properties is poised to become one of the submarket's largest landlords, as it prepares to more than double its current 420,000 square feet of Class A office space in 2006. Managing its assets with a keen eye for operational efficiencies and the most cost effective service providers available will be critical in maintaining top standards for tenants while turning optimal profits for investors.
I am pleased we were able to reach common ground with Service Employees International Union and its Local 1 in Chicago to develop a win-win partnership going forward, stated Zaya S. Younan. I am glad that we have established a working relationship with Service Employees International Union Local 1 early on in our growth path, as we will continue to grow our portfolio nationally.
Brad Hanewall, YPI's property manager at Embassy Plaza and One North Arlington also expressed satisfaction with the resolution. Continual evaluation of all service agencies is essential in staying competitive in the marketplace and in fulfilling our obligations to all who have placed faith in Younan Properties' superior office management capabilities, he said. ABM Lakeside is now providing exceptional services with superior attention to detail, for competitive wages that should provide an incentive for top productivity.
According to Daniel Schlademan, Vice President of the Service Employees International Union Local 1, which represents 42,000 workers in Illinois, Missouri and Wisconsin, the agreement will produce long-term savings for Younan Properties by providing good living wages and benefits that contribute to lower rates of turnover and higher productivity.
We regret any inconvenience caused by the misunderstanding between SEIU Local 1 and Younan Properties and we are pleased to acknowledge that we have come to an agreement, he said. We are extremely pleased to be allied with this pro-active firm in a contract that celebrates the value of our organization and provides good living wages and benefits for our members. Our new win-win alliance will enable Younan Properties to maintain its competitive advantage in office property management while demonstrating its faith and support of union labor. We now look at the strong working relationship we've established with Younan Properties as the beginning of a very positive professional partnership."
Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties' management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $800 million in real estate holdings since its inception in 2002. The company's national portfolio currently includes 21 Class A office properties totaling more than 4.8 million square feet.