WHAT?

Established in 2014, this private investment fund supports site development and was adopted as part of the Power of 32 regional visioning process to identify common challenges and opportunities and create a thriving 32-county, four-state region. The Allegheny Conference on Community Development agreed to lead the effort to establish the Site Development Fund, which – to date – has provided gap financing to move several regionally significant projects forward.

WHY?

Increasing the inventory of shovel-ready sites increases opportunities for greater business investment – facility locations and expansions – and job creation in the 32-county greater Pittsburgh region. This multi-state footprint encompasses parts of Pennsylvania, Maryland, Ohio and West Virginia.

Horizontal preparation of sites – through grading, infrastructure installation and environmental remediation – is critical to moving them to market more quickly in order to meet new construction demands.

HOW?

With commitments of $49 million, the Power of 32 Site Development Fund closes critical infrastructure financing gaps by making patient mortgage loans to sites that have the potential for regional impact or that are identified as a priority for the greater region. The Fund targets larger sites – 25 acres or more – industrial, commercial or mixed use, with a preference for redeveloping brownfield sites or land in underserved communities targeted by the Community Reinvestment Act.

The Fund's 15 Limited Partners

The Power of 32 Site Development Fund LP is structured as a Pennsylvania limited partnership and is overseen by a Board of Managers. Callay Capital LLC serves as the Fund Manager and is the point of contact for projects seeking investment from the Fund.

The Fund is built on the belief that successful business investment depends on all the strengths of the 32-county region regardless of geographic boundaries, and that an investment in real estate at any one location benefits the region as a whole.

Project Gallery

Trimodal Terminal

Details

Clinton Commerce Park (Phase 2)

Details

Hazelwood Green

Details

Turnpike Industrial Park

Details

Trimodal Terminal

Trimodal Terminal

Follansbee, W. Va.
$2.6M loan (2015)

The fund provided the capital necessary to accelerate brownfield remediation while also investing in development of site infrastructure to make the site more attractive to companies looking for rail- and barge-served sites in the region.  This type of funding is generally not available to private developers in West Virginia from either public funding or traditional lenders.  By filling this gap in the traditional capital structure, the fund enabled us to rapidly accelerate our development timeframe.”

– Jim Joseph, co-owner, Trimodal Terminal

Significant accomplishments made possible with a fund loan

  • Water utility infrastructure; completion of obligations under Regulations & Environmental Compliance Analysis (under RCRA) and attainment of a certification of completion from the West Virginia DEP
  • Enabled creation of approximately 40 acres of new pads for industrial development
  • Enabled rehabilitation of 5,000+ feet of existing rail spurs, construction of 2,000 feet of new rail spurs and rebuilding of all on-site railroad crossings
  • Recipient of the 2017 West Virginia Brownfields Award for Environmental Impact

Site advantages

  • 80-acre remediated brownfield site located at Mile 70.0 on the Ohio River, 30 minutes from Pittsburgh International Airport and located three miles from U.S. Route 22 with four-lane access to the site from WV Route 2
  • 13,000+ feet of rail on-site with direct service from Norfolk Southern
  • 3,000 feet of riverfront with U.S. Army Corps of Engineers barge permit to load and unload barges and moor up to 45 barges; located at the midpoint on the Ohio River between the Shell petrochemical facility in Beaver County and the proposed PPT facility in Belmont, Ohio.

What’s next?

  • Improvement and expansion of barge dock and loading/unloading capabilities
  • Construction of 5,000 feet of additional rail spurs and investment in railcar spotting and transloading equipment and services
Clinton Commerce Park (Phase 2)

Clinton Commerce Park (Phase 2)

Clinton, Pa.
$5.7M loan (2015)

The recent investment in the region by Royal Dutch Shell and others is proving the need to have more pad-ready, developable sites available to support regional growth. The Power of 32 Site Development Fund is a source of essential funding for keeping pace with the growing demand.”

- David Storer, manager of real estate development, Allegheny County Airport Authority/Pittsburgh International Airport

Significant accomplishments made possible with a fund loan

  • Storm water management, erosion controls, utilities installation, roadway access and site grading and embankment
  • Provision of the capital needed to scale the project and elimination of a multiple-phase construction process
  • Investment by the fund enabled the creation of seven pad-ready sites with more than 1.5 million sq. ft. of building capacity. The site is now home to Berlin Packaging, which leased a 297,200 sq. ft. building from developer Al. Neyer.

Site advantages

  • Located three minutes from Pittsburgh International Airport, 20 minutes from downtown Pittsburgh and 14 miles from Royal Dutch Shell petrochemical facility being constructed in Beaver County. Suitable for any industrial use, from heavy manufacturing to warehouse space

What’s next?

  • The second of seven planned buildings for the site has been constructed by Al. Neyer. The building is 265,568 sq. ft. There are plans to construct two or possibly three more buildings in the near term, ranging from 850,000 sq. ft. to 885,000 sq. ft.
Hazelwood Green

Hazelwood Green

City of Pittsburgh, Pa.
$9.6M loan (2016)

The Power of 32 Site Development Fund filled a remaining gap in financing for site improvements and provided flexible terms required at early stages of development. This source of loan funds is very critical since the market is demanding shorter timeframes for delivery of owner-occupied building or tenant space.”

- Katrina Flora, AICP; Associate Planner, ReMake Group

Significant accomplishments made possible with a fund loan

  • Redevelopment of one of the Pittsburgh’s last large brownfield, containing 175+ acres
  • Development of the spine road and associated infrastructure, providing access to a majority of the site’s parcels
  • Overall infrastructure designed as Pittsburgh’s first “complete street” providing separated pedestrian, bike and motorized vehicle access and green infrastructure to contain all rainwater on site

Site advantages

  • Ideally located within close proximity to Pittsburgh’s central business district and university district (Oakland) and with riverfront access. Phase 1 development target markets include advanced manufacturing, additive manufacturing, biosciences and automation industries seeking an urban location and flex space to accommodate their needs.

What’s next?

  • Release solicitations for developers and integrated energy service providers/partners; a new branding/naming campaign will be completed and rolled out; the P+W Master Plan (on hold since November 2015 as a final draft) will be completed; and, Mill Street and temporary parking construction will be bid. The RIDC Phase A development of the Mill 19 building [on site] will be initiated in response to the signing of an anchor tenant.

Turnpike Industrial Park

Big Beaver, Pa.
$6.9M loan (2017)

Being able to close on the property and be in the position to have pad-ready sites for up to one million square feet – all within six months of closing – is an achievement that would not have been within our reach without the loan. The fund made eminent sense to us, and I encourage other owners of large tracts of land to explore the opportunities that the fund affords for moving such sites to market faster.”

- Pat Nardelli, President, Castlebrook Development Group

Significant accomplishments made possible with a fund loan

  • Site clearing, fill and grading and utility and road installations of approximately 100 acres

Site advantages

  • A strategic location and proximity to three major interstates: I-376, I-79 and I-80. The site is also within 15 miles of the Royal Dutch Shell petrochemical facility being constructed in Potter Township, Pa. and 28 miles from Pittsburgh International Airport.

What’s next?

  • Earthwork has already started (Summer 2017) to bring the site to grade in order to be pad-ready for placements of footers and foundations for warehouse and distribution facilities. The completion of earthwork, utility extensions and access roads are anticipated within six months, with construction of buildings on the site to begin in 2018.

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