Retail Market Update - NAIOP Pittsburgh Chapter

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Pittsburgh
Fall 2014
DEV E LOPING
PITTSBURGH’S
INDUSTRIAL
POTENTIAL
2014 NAIOP BUYER’S GUIDE
PROFILING JENDOCO REAL ESTATE
UPDATING PITTSBURGH’S
ACTIVE DEVELOPMENTS
Highest and Best Use...
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Celebrating 25 Years
CONT E NTS
| Fall 2014
05
President's Message
23 D evelopment Project
Gordon Food Services Distribution Center
29 D eveloper Profile
06 Feature
Pittsburgh’s Industrial Potential
Tight space and an energy-driven boom push industrial development.
Jendoco Real Estate
39
Eye On the Economy
45 O ffice Market Update
Cushman & Wakefield | Grant Street Associates
49 Industrial Market Update
CBRE
53 Retail Market Update
Langholz Wilson Ellis
57
Capital Markets Update
62 LNavigating
egal / Legislative Outlook
a closing during construction.
65 BPittsburgh
enchmarks
is attracting progressive real
33 DWhat
eveloping
Trend
does it take to build Downtown?
69 VPittsburgh
oices SWOT analysis: Looking at the
2014 Buyer’s Guide
88Buyer’s Guide
The 2014 NAIOP Buyer’s Guide puts contacts for designers, engineers,
contractors and lenders in one easy-to-use resource.
estate leaders.
72
75
86
biggest threat to healthy growth.
Development Updates
News from the Counties
People / Events
www.developingpittsburgh.com
3
President’s Perspective
PUBLISHER
Tall Timber Group
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EDITOR
Jeff Burd
412-366-1857
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PRODUCTION
Carson Publishing, Inc.
Kevin J. Gordon
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ART DIRECTOR/GRAPHIC DESIGN
Jaimee D. Greenawalt
CONTRIBUTING PHOTOGRAPHY
Oxford Development
Gunton Corp.
Jan Pakler Photography
Millcraft Investments
Desmone Architects
Denmarsh Photography
CONTRIBUTING EDITORS
Anna Burd
Karen Kukish
ADVERTISING SALES
Karen Kukish
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[email protected]
MORE INFORMATION:
DevelopingPittsburgh is published by
Tall Timber Group for NAIOP Pittsburgh
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www.naioppittsburgh.com
No part of this magazine may be
reproduced without written permission
by the Publisher. All rights reserved.
This information is carefully gathered and compiled in such a manner as to ensure maximum
accuracy. We cannot, and do not, guarantee
either the correctness of all information furnished
nor the complete absence of errors and omissions. Hence, responsibility for same neither can
be, nor is, assumed.
Keep up with regional construction
and real estate events at
www.buildingpittsburgh.com
W
elcome to
the fifth
edition
of NAIOP
Pittsburgh’s
award
winning magazine DevelopingPittsburgh. As you read the articles I
hope you will feel the same sense
of excitement about the Pittsburgh
region that I felt.
will bring much needed improvement to Pennsylvania’s highways,
bridges and mass transit systems.
The feature article “Pittsburgh’s
Industrial Potential” provides a balanced look at the industrial development scene. While there are many
opportunities on the horizon there is
also the chance that limited inventory could hamper the region from
taking full advantage of these opportunities. You will learn the history
behind Imperial Land Corporations
success in securing the Gordon Food
Service 420,000-square-foot distribution center at the Findlay Industrial Park and hear from the experts
about what it takes to develop
Downtown. Another highlight of
this edition of DevelopingPittsburgh
is the focus on Jendoco Real Estate.
The multi-generational company is
not only a successful business it is a
great corporate citizen of the region
and a foundational piece to NAIOP
Pittsburgh’s success.
You will be very interested in two
new must-attend programs being
offered by NAIOP Pittsburgh this
fall. The first, in conjunction with
CoreNet features Gunnar Branson,
CEO of the National Association of
Real Estate Investment Manager.
The second will include 2013 NAIOP
Developer of the Year Seattle’s Venture Real Estate and Ray Gastil who
is Pittsburgh’s new Director of City
Planning. For more information on
both programs check out DP Benchmarks “Pittsburgh Gets Progressive”
in this edition
This edition is also the final time
that you will see my byline as NAIOP
Pittsburgh president in DevelopingPittsburgh. It has been my honor
and privilege to serve as president
for the last two years. I am very
proud of what we have accomplished during this period and look
forward to helping future leaders
continue to build and improve our
Chapter.
I hope you enjoy this edition of
DevelopingPittsburgh and thank you
for allowing me the honor of serving
the Chapter.
I have spoken about many of our
successes in underDevelopment and
previous issues of DevelopingPittsburgh. I will highlight just a few
here. Our membership is at an all
time high. Our advocacy efforts and
our ability to mobilize our membership helped with the passage of a
$2.3 billion transportation bill that
I am particularly proud of the newly
minted mentorship program. A
recent meeting of the inaugural
mentors and mentees gave high
marks to the initiative and provided
suggestions for an even better second class.
I am grateful to Leo Castagnari and
Melodee Bright for their support
during my tenure. I also want to
thank the NAIOP Pittsburgh Board
of Directors for their outstanding efforts and their unwavering commitment to the Chapter.
Daniel P. Puntil
NAIOP Pittsburgh President
5
f e a t u r e
Pittsburgh’s
INDUSTRIAL
POTENTIAL
Photo courtesy Jendoco Real Estate
6 DEVELOPINGPITTSBURGH
| Fall 2014
f e a t u r e
B
uried in the feel-good story of the Southwestern PA commercial real estate resurgence is the “good news, bad news” that
is the industrial market. Like most of the
commercial real estate categories, industrial property fundamentals are exceptionally strong
in mid-2014, with demand ahead of supply. But those
conditions haven’t kick-started new development and
construction in the way that you might expect and that
may be creating problems.
7
f e a t u r e
S
ince the middle
of the last decade, regional
leaders and state
government have
worked to deal
with what site
selectors said was Western PA’s number one problem: a lack of shovelready sites. No region can have too
many available sites – and Pittsburgh
is nowhere near that description –
but the efforts to create pads have
succeeded. In all four directions
throughout the region, industrial
sites exist. This is especially true in
the areas where the natural gas business has its deepest roots. Yet, few
new industrial projects are ready to
start, whether build-to-suit or speculative buildings. While the status
quo is good for rents, the industrial
market is chock full of potential that
is unrequited.
Getting from potential to being prepared and then to executing deals
will require a different set of rules
than has guided development over
the past 30 years or so. Potential can
be a blessing and a curse but it presents problems every region would
love to tackle.
The Current State
Even the numbers don’t do complete
justice to the state of the industrial
market at the midpoint of 2014. According to market reports from CoStar
and a handful of Pittsburgh’s real
estate service companies, less than
7.5 percent of the region’s 117 million
square feet of industrial space was
available at the end of June. But those
numbers represent the total market,
including several very large former industrial plants that have been re-purposed into multi-tenant spaces. In the
Class A segment of the market, the
vacancy rate is roughly four percent.
With the Amazon lease in Crafton –
announced since those reports were
done – space in Class A buildings is
virtually gone.
“This year there have been some
bigger deals and only two buildings
remained with more than 120,000
square feet of Class A space,” says
Lou Oliva, executive managing director in Newmark Grubb Knight Frank’s
Pittsburgh office. “Amazon took out
one of those two buildings. Why
aren’t people stepping up to build
new space?”
Oliva says he has had conversations with national developers about
building speculative industrial space
in Findlay Township, where his firm
represents developer Imperial Land
Co., but no projects have advanced.
“The brokers tell me that I have
nothing to lease. We’re full,” laughs
Robert Lloyd, vice president at Jendoco Real Estate. “Seriously though,
there has been a lot of activity.
We’re showing space to companies
that the [current tenant] hasn’t
moved out of yet. That’s a worry. I
do believe that if we had more space
we could lease it up.”
Lloyd says that Jendoco has roughly
two small spaces totaling 4,000
square feet available in its Settlers
Cabin Business Center project in the
Owners of industrial buildings – particularly Class A buildings – have
much to enjoy at the moment and
even more to look forward to in the
future. At a time when lots of positive developments are making the
news in Western PA, one story seems
likely to dominate the economic
landscape for the coming decade.
The ethane cracker and petrochemical manufacturing facility that Royal
Dutch Shell is preparing – whether
it goes ahead with the project or
sells it to another producer – will
have wide-ranging economic impact,
but the most significant impact on
real estate will be in the industrial
demand for space. As good as the
current industrial market is for owners, downstream manufacturing from
the natural gas exploration has the
potential to create a generational
boom in industrial real estate.
9
f e a t u r e
Manufacturing deals are primarily build-to-suit, like with the
Wendell August Forge plant developed by Wesex Corp. in
Grove City. Photo by Denmarsh Photography. Use courtesy
Desmone Architects.
Parkway West corridor and only one
small space available at its Monroeville property, a part of town that is
hardly seen as hot. Jendoco did build
new in Settlers Cabin in 2013, adding the 22,000 square foot Building
300.
“There’s not enough space, period.
We need a mixture of everything,”
says Amy Brocato, industrial broker
at Langholz W ilson Ellis. “Larger
deals have been more a matter of
luck until Amazon.”
| Fall 2014
CBRE’s Rich Gasperini also sees a
broad-based shortage of supply,
both in terms of type and geography. “It’s one thing to say that
XYZ Corp. needs 750,000 square
feet of warehouse and can’t find it.
Pittsburgh isn’t a bulk distribution
center,” he says. "But it’s the breadand-butter space that isn’t there in
many submarkets. There isn’t one
block of true warehouse space in the
Parkway West. The same is true in
Washington County. There is space
in Cranberry and some other submarkets but it only takes a couple of
deals and that goes away.”
The concern that the brokers express
is actually more about speculative industrial space than the total
product category. By most measures, construction activity in industrial properties is high, with almost
900,000 square feet under construction June 30. Net absorption for the
second quarter was over 488,000
square feet, with only 80,000 square
feet delivered in the quarter. W ith
over 400,000 square feet still in
the pipeline, it would seem that the
market had room to grow, even for
big users. The vast majority of the
new construction is build-to-suit
f e a t u r e
Part of the reality
in Pittsburgh is
that the type of
developer operating
in this region isn’t a
match for the kind
of development
that the industrial
market craves and
the deals that have
typically existed in
Wester n PA don’t
match up with big
speculative pro jects.
operators here getting good enough
returns that they can’t justify taking
the risk to develop larger buildings.”
Jendoco’s Bob Lloyd echoes Brocato’s observations. “There aren’t
a bunch of big developers here in
Pittsburgh,” he says. “There isn’t
some big New York company looking to throw a lot of money at this
market.”
or owner-occupied space, however.
No new spec space over 100,000
square feet is under construction,
even though several users exist that
are searching for more than 100,000
square feet.
Part of the reality in Pittsburgh is
that the type of developer operating in this region isn’t a match for
the kind of development that the
industrial market craves and the
deals that have typically existed in
Western PA don’t match up with big
speculative projects.
Amy Brocato worked for global industrial logistics developer Prologis
in Central PA before joining Langholz W ilson Ellis in 2009. From her
perspective, the Pittsburgh market
doesn’t present developers with the
same kind of opportunities that exist
in other regions.
“There is a high density of flex space
and manufacturing but what is here
for warehouse/distribution is smaller,” Brocato says. “The average lease
is still 25,000 to 30,000 square feet.
In Shippensburg the average deal
is 500,000. There are a lot of local
Of course, the primary difference
between the developers active in
Southwestern PA and the large national developers of industrial space
is in their expectations. Developers
like Prologis have access to lowercost capital, often from institutional
investors, and have expectations for
return-on-investment that are more
modest. The money behind those
projects is looking at real estate to
meet a specific investment mix, one
that views more modest returns for
development as favorable compared
to other investment categories. The
same isn’t true of local developers,
who are using more of their own
capital and expect to be rewarded
for the risk of development.
11
f e a t u r e
“The trend for local developers is to
build smaller buildings and I can’t
blame them a bit,” notes Gasperini.
“Smaller projects reduce their risk
and they get higher rents.”
Among the kinds of projects Gasperini referenced were the 70,000
square foot buildings at Buncher’s
Jackson's Pointe, Ashford Partners’
75,000 square foot 250 Crown Court
at Imperial Business Park, Elmhurst’s
48,000 square foot Commons at
Thorn Hill buildings and the new
construction done by Chapman Properties in Leetsdale and Westport.
“Large speculative industrial is moving almost entirely into the world
of the institutional player,” remarks
Bill Hunt, CEO of Elmhurst Group.
“You’re looking at returns that
are long-term at eight percent and
[institutions] are okay with that. It’s
more like a financial play than it is a
commercial real estate play.”
The status quo may
be about to change.
Both the Amazon
deal and the ethane
cracker represent
the potential for a
drastic sea change.
But until that sea
change occurs,
the tight space
situation represents
the potential for
more negative
consequences
than just anxious
brokers.
The Jackson's Pointe project is fairly
typical of a ground-up industrial
development in Pittsburgh and one
that is a success story. The project
involved a massive earthmoving and
site preparation effort that began in
2011. In just over two years, Buncher completed four buildings totaling
roughly 340,000 square feet. The
buildings ranged from 45,000 square
feet for UPS to a 150,000 square
foot warehouse for ProtoCo.
Another set of numbers that sheds
further illumination for industrial
development in Pittsburgh is average
rents. Even as the vacancy rate has
fallen steadily from over 10 percent
in early 2011, there has not been
upward movement in rents. The
average rent for industrial space was
slightly less on June 30, 2014 than
on the same date in 2011, hovering
now around $5.10 per square foot.
W ithout steady rent growth, investors and developers will be reluctant
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| Fall 2014
f e a t u r e
to push for speculative risk beyond
40,000 or 50,000 square feet.
The status quo may be about to
change. Both the Amazon deal and
the ethane cracker represent the
potential for a drastic sea change.
But until that sea change occurs, the
tight space situation represents the
potential for more negative consequences than just anxious brokers.
The Potential Downside
While limited supply compared to
demand can be a good thing for developers and owners, there are some
macroeconomic problems that can
result from a tight industrial market. T ight supply usually supports
rent growth, but the stagnant rents
in Pittsburgh haven’t encouraged
the development of spec inventory.
Absent an inventory of large spaces
to show, especially of high quality,
a market can lose opportunities. In
A multi-regional
effort called the
Power of 32 has been
working to create
a privately-funded
site development
fund to be used for
preparation and
infrastructure in 32
counties in the TriState area. This P32
Site Development
Fund has attracted $26
million in investment
to put to use later this
summer.
the industrial market, those lost opportunities mean lost employers and
jobs.
Industrial opportunities tend to be
economic multipliers, creating supply chain and downstream jobs. The
beneficiaries of the Marcellus Shale
exploration weren’t limited to the
energy industry. The gas play revitalized small towns and businesses like
restaurants, hotels, truck dealers
and industrial supply/repair companies. You only need to drive between
Canonsburg and Houston, PA to
see the impact of the natural gas
industry on Main Street – let alone
Southpointe or the Parkway West
corridor – and regional leaders are
rightly concerned that the limited
supply of industrial sites can dampen
further economic potential in other
industries.
“The number one reason we lose
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f e a t u r e
Only one site remains to be built in the first phase of
Buncher’s Jackson’s Pointe Commerce Park.
estate, the limited supply of industrial sites,” notes
Dewitt Peart, president of the Pittsburgh Regional
Alliance and Greater Pittsburgh Chamber of Commerce. “That’s what we know from our analysis
of wins and losses. What we don’t know is what
opportunities we’ve lost if Pittsburgh didn’t get
considered because of the lack of sites.”
Pad-ready and shovel-ready sites are an important ingredient for a successful business attraction
recipe. Bringing business to Western PA isn’t an
easy task. The tax and regulatory environment in
Pennsylvania isn’t the most business-friendly and
winters make doing business more challenging for
most companies compared to warmer climates.
But Western PA offers a skilled, motivated workforce and an educational infrastructure that creates
homegrown talent for the future. 40 percent of the
U. S. population and 60 percent of Canada’s population lie within a day’s drive. And, there’s all that
cheap natural gas located beneath Pennsylvania. As
Pittsburgh has been raised in the national awareness as a place to live and work, an inventory of
sites has become more important.
A multi-regional effort called the Power of 32 has
been working to create a privately-funded site development fund to be used for preparation and infrastructure in 32 counties in the Tri-State area. This
P32 Site Development Fund has attracted $26 million
in investment to put to use later this summer.
The Southwestern Pennsylvania Commission (SPC)
has impaneled what it is calling the Emerging
Industries Corridor Site and Mobility Initiative to
identify potential sites for the industries grow-
| Fall 2014
f e a t u r e
ing rapidly in Southwestern PA. While the Initiative intends to find a variety of sites for a variety
of industries, it has become clear that the biggest
challenges are in finding large sites capable of being developed into future manufacturing facilities,
says Lew Villotti, the SPC’s director of planning and
development.
“While there are ample economic development sites
throughout the region there aren’t ample industrial
sites,” he says. “There are a lot of sites that aren’t
ready for heavy industrial manufacturing to take
full advantage of whatever opportunities the cracker or other energy-related projects may bring.”
Villotti expresses concern that the market may be
working against industrial planning as many of the
other commercial property types have seen a surge
in demand well ahead of whatever downstream
manufacturing may end up in Western PA. He says
he has seen landowners respond more quickly to
facilitate Class A office, research and development
centers or warehousing and is worried that landowners won’t have the awareness or patience to
wait for the emerging industries.
“The landowner’s focus is understandably on selling
the property. I’m afraid the best properties are going to go first-come, first-serve,” Villotti notes.
The Emerging Industries study has narrowed the
options to roughly 30 sites in its initial target corridor, which ran from the Washington County gas
fields north to the Sharon-Youngstown area. Villotti
says that the most obvious sites are those that
previously had heavy industry. Because such sites
15
f e a t u r e
see more opportunities but we’ll
probably lose more than our share
because of the cost.”
The Potential Upside
The protracted low price of natural
gas has dampened the surge in exploration of the Marcellus and Utica
Shale formations since the latter part
of 2012. That slowdown in activity
has led pessimists to declare that the
shale gas boom was overhyped and
has shifted much of the early media
attention onto other stories. Whether the media is paying attention or
not, no economic event has had such
a big impact on industrial real estate
in more than a generation.
Excluding the closing of the Sony plant in 2010,
absorption of industrial space has averaged 1.2
million square feet annually.
are limited, the SPC initiative has
broadened the study to include the
Mon Valley and I-70 corridor into
Westmoreland County. Villotti also
says that the group has discovered
a number of suitable properties in
northern Washington County that
aren’t actually on the market. An
outreach effort will attempt to get
those owners to understand the viability of their properties.
One problem that faces Western
PA that isn’t an obstacle in North
Dakota or West Texas is the topography and regulatory climate that
make both rapid development and
large-scale development very difficult. For all the demand that may be
following the energy play or intermediate logistics businesses, there is
the potential for those businesses to
consider other markets less trouble.
“Users want higher service and they
want it now and they want it at
the lowest costs,” remarks Brocato.
“The Pittsburgh market isn’t the
lowest cost market. I think we’ll
| Fall 2014
Industrial
opportunities tend
to be economic
multipliers,
creating supply
chain and
do wnstream jobs.
The beneficiaries
of the Marcellus
Shale exploration
weren’t limited
to the energy
industr y. The gas
play revitalized
small towns and
businesses like
restaurants,
hotels, tr uck
dealers and
industrial supply/
repair companies.
As shale gas exploration ramped up
in Southwestern PA back in 2009,
the influx of drillers and the countless businesses that served the industry provided a boon to industrial
development in a handful of selected
sub-markets. The gas industry accelerated the success of Southpointe
and breathed new life into the small
communities in Washington County.
It also rejuvenated a few industrial
parks along Interstate 70, creating
half-dozen new projects in Alta Vista
Business Park in Fallowfield Township and the I-70 Industrial Park near
Madison PA. As beneficial as those
developments were to the counties
and parks in them, the future stages
of development for the energy industry promise much greater potential
economic benefit.
It is, of course, the long-awaited
ethane cracker and chemical processing facility at Monaca that is the first
key to this accelerated expansion.
Shell has taken more than two years
to do its study and due diligence on
the site, just as the company promised when the site was selected in
March 2012. That delay may have
dulled our memories of the promise
that such a facility holds. The cracker
plant will produce the feedstock for
a handful of industries and those
industries tend to locate where the
raw materials originate.
f e a t u r e
Photo courtesy RIDC
“If and when the cracker moves
forward there is a huge opportunity
to capture users,” says Villotti. “Unlike we’ve seen before, the primary
consideration [for those industries] is
the location of the product. It’s a tremendous opportunity for jobs. We’ll
have to bring in workers to meet the
demand.”
Those jobs and businesses of which
Villotti speaks will be making things
from the ethylene that is cracked
from the ethane produced in the
shale formations. This won’t be an
overnight transformation but over the
course of the next decade, the cheap
energy and byproducts from natural
gas is likely to ignite another industrial renaissance in Southwestern PA.
Like the industrialization of 150 years
ago, this change will probably be focused along the rivers but there also
seems to be a corridor forming along
I-376 and I-576. That momentum will
be boosted in another four years or
so when the Southern Beltway extends the connection from Pittsburgh
International Airport to Southpointe.
Steve Thomas is one of the developers banking on that highway corridor.
His company, Chapman Properties,
along with the Allegheny Airport
Authority, Imperial Land Corp. and
others, are trying to create a new
identity for this corridor.
“The name ‘airport corridor’ brings
to mind the route from Downtown
to the airport, which is the Parkway
West; but the potential for growth is
really west of the airport along Route
576,” Thomas explains. “The market
has changed to be a mix of energy,
manufacturing and distribution.
Manufacturing is going to be driven
by energy, especially if this cracker is
built.”
17
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Thomas refers to the I-576 area
as the “energy corridor” and his
interest is hardly academic or civic.
Chapman Properties purchased
300 acres to develop a 2.6 million
square foot industrial/office mixed
use project at the Westport Road
interchange of I-576, also known as
the Findlay Connector. The property
was re-branded Chapman Westport
as part of the effort to identify this
potential energy center. For the first
building, Chapman Properties is
doing a 20,000 square foot build-tosuit for Thru Tubing Solutions on a
3-acre parcel of land. The building
is scheduled for occupancy during
the fourth quarter of 2014.
Across the highway from Chapman
Westport are the projects that Imperial Land has been developing, the
Findlay Industrial Park and Westport
Woods. Findlay Industrial Park is
the 400-acre home to Alro Steel,
Okonite and the Appliance Dealers Cooperative, roughly 330,000
square feet of completed space,
with the 422,000 square foot Gordon Food Service project currently
under construction. Westport Woods
is a 100-acre business park being
developed on land adjacent to Findlay Industrial Park. Bids for the $4.8
million in construction to start the
Westport Woods project have been
taken, according to Jerry Bunda,
president of Imperial Land Corp. He
anticipates that project will be more
attractive for smaller buildings.
Between the two projects, Imperial
Land has prepared for the needs of
both large and smaller industrial
businesses, including the kinds of
manufacturers that are downstream
from the ethane-to-ethylene process.
Working with Findlay Township, the
state and regional leaders, Imperial
Land was able to prepare a mix of
sites that were ready when opportunity knocked. Those working on the
projects believe that preparedness is
key to reaching the region’s industrial potential.
“There is a niche and segment of
the market in Pittsburgh that we can
adequately serve,” explains Oliva.
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“We can’t be all things to all people
but there is distribution and network
coverage that can be provided in
Pittsburgh. The development community and leaders need to concentrate
on making sure that sites that can
serve that niche are fully prepared.”
Oliva represents Findlay Industrial
Park, where investment in infrastructure was made in advance of marketing the project. When Gordon Food
Service evaluated the site in 2013,
waiting for additional infrastructure
wasn’t an obstacle to the deal.
The Potential Outlook
One project that has the potential
to be influential is Amazon’s deal
for what it calls a “sortation center” at the former Roomful Express
warehouse in Crafton. The center
will employ around 100 people to
do sorting to final destination in an
effort to speed up consumer deliv-
| Fall 2014
ery, an important step in Amazon’s
strategy to expand its offerings and
make same-day delivery commonplace. While those close to the deal
don’t expect that this lease is the first
step in a major physical expansion by
Amazon, they hope that landing such
a center is a bellwether deal.
Amazon’s competitors in the logistics
business are likely to pay more attention to Pittsburgh as a secondary distribution point, much like discounters
used to follow WalMart’s expansion
plans to inform their own. Whether
it is an ambitious online retailer like
Zappos or mainstream logistics companies like FedEx and UPS, they may
look more closely at Pittsburgh as a
location for deepening their network
as they try to grab or maintain market
share from Amazon.
Such a change in perception would be
a boon for the potential spec industrial development but it’s not likely to
change the mix of warehouse deals
radically in Western PA. The consensus among brokers and developers
is that those projects will end up
elsewhere.
“A lot of the large users of 200,000
square feet or more are macro-regional,” says Hunt. “Those projects end
up in Harrisburg or Columbus.”
Hunt also makes an interesting
prediction about the more likely
destinations for future industrial
development. Pointing to the sharply
increasing cost of land and to the increasing costs of meeting the requirements of the townships for development, Hunt sees more opportunities
for established sites and those that
have been in the portfolio of the
owners for some time.
“You have to look at history. Pittsburgh has not had much success except for older sites where land costs
f e a t u r e
and the costs of entitlement aren’t as
much,” he explains. “I think the older
industrial parks will be more successful because of the lack of competition
in the future.”
Along those same lines, the big scale
development that is likely to occur in
the wake of the energy-driven manufacturing will be mostly done by the
owner occupant, or at least driven by
owner occupants. Manufacturers of
plastics, industrial chemicals, pharmaceuticals or fertilizers will be looking for sites that can accommodate
500,000 square feet or much larger
footprints. Requirements for rail and
river access will steer almost all of
these to the older industrial sites that
were former heavy manufacturing
plants in the past.
“Our opportunities will be for buildto-suit or land sale,” notes Thomas.
“That’s the approach that the Pittsburgh Regional Alliance is taking.”
Thomas is more excited about the
prospects for potential deals with
companies that manufacture or assemble in support of the manufacturing that will be downstream from the
energy play. He points out that his
two newest deals – the Tubing Solutions project and the National Oilwell
Varco build-to-suit in Leetsdale – are
of that variety. A look back at the
companies that once occupied industrial sites along the Monongahela,
Ohio and Allegheny Rivers backs that
theory. Most users of that era weren’t
steel manufacturers but the businesses existed because of the mills.
Pittsburgh’s industrial potential may
look much more like its industrial
past than anyone expected just a few
years ago. Obstacles like higher costs
to buy and develop land will work
against bulk warehousing projects,
as will the fact that the highway
infrastructure in Western PA only
leads to major population centers
in eastern and western directions.
For sub-regional distribution and for
warehousing needs under 200,000
square feet or so, both economic and
development conditions bode well for
industrial expansion.
Chances are that there are a few users out there in 2014 that are facing
business challenges that will cause
them to put space back on the market, thus easing some of the extreme
tightness of industrial space supply.
Coupled with better financing and
market conditions for development,
the status quo has moved several developers to add inventory to the marketplace. Markets rarely stay the same
for very long. Industrial development
in Western PA seems to be waiting for
a spark. Chances are good that spark
will come from Monaca. DP
First Niagara Commercial Real Estate Finance Group
Serving the banking needs of Western Pennsylvania’s
commercial property owners and developers.
Call (412) 807-2745 to speak with a First Niagara representative.
First Niagara Commercial Real Estate Finance Group is part of First Niagara Bank, N.A.
First Niagara Bank, N.A. MEMBER FDIC
21
Development Project
Gordon
Food Service
Distribution
Center
L
ouis Pasteur
famously said
of those who
seemed accident-prone,
“Fortune favors
the prepared mind.” Whether or not
Pasteur’s wisdom guided the lead-
ers at Imperial Land Corporation,
their approach to developing Findlay
Industrial Park brought them some
very good fortune.
Imperial Land is the land development arm of the Aloe families’ businesses and it exists to create another
productive use for land that was
previously mined and restored. One
of those properties is a 400-acre development called the Findlay Industrial Park, located at the Westport
Road interchange of I-576 west of
the Pittsburgh International Airport.
The industrial park was developed
patiently in the mid-2000s.
By the spring of 2013, Findlay Industrial Park had been through an early
flush of success that followed the
project’s initial construction in 2008.
Imperial Land Corp. invested in
preparing roads and pads after more
than a decade of working to get infrastructure and the Findlay Connector. Land sales to Appliance Dealers
Cooperative, Okonite and Alro Steel
kicked the project off in between
2009 and 2011. After preparing the
land for a second phase of sites in
2012, Imperial Land began marketing the project again in 2013.
23
Construction will be
completed in spring 2015.
The rationale behind the park’s
expansion was not only to open up
more sites but also to prepare for a
different kind of user.
“What they tried to do with Findlay Industrial Park was to use the
contours of the site to land a big
user,” explains Lou Oliva, executive managing director for Newmark
Grubb Knight Frank, who represents
Imperial Land’s property. “We could
do a couple of 200,000 square foot
buildings but we wanted the competitive advantage to be that Findlay
could accommodate a half-million
square foot user.”
“The construction had partial private
funds and a $3 million RACP (Redevelopment Assistance Capital Program) grant,” says Jerry Bunda, Im-
| Fall 2014
perial Land Corporation’s president.
“The work included extending Solar
Drive half-mile, plus the stormwater,
sanitary and utilities. Phase two had
sites that could accommodate a big
user.”
In the early spring of that 2013,
one of those big users came on the
radar. Lou Oliva ran into a former
colleague of his from Detroit, Chuck
King, at a national conference. King
had founded CKX Realty Advisors
and was conducting a multi-state
search on behalf of one of his industrial clients, Gordon Food Service
(GFS). Gordon had reached out to
the Pittsburgh Regional Alliance the
previous year as a prelude to the
search but no inquiries had been
made to Findlay Industrial Park or
Oliva at that time. By April 2013,
however, the search was in high
gear and Oliva was excited about the
prospects.
“To an institutional food service
provider our educational and hospital industries made a great prospect
base from which Gordon could serve
the Ohio and West Virginia markets
too,” he says. “Findlay Industrial
Park had sites large enough that
didn’t require much additional site
work. This was the target user for
that project.”
The preparation of the site wasn’t
the only competitive advantage.
GFS uses their distribution centers to supply its food stores, GFS
Marketplace, of which there are
three in Pittsburgh, and to service
institutional clients in several states.
Findlay Industrial Park is located at
an interstate highway interchange
that offers great access to the
other interstate highways going
through Pittsburgh, but also offers
access to secondary markets like
New Castle or Wheeling without
using secondary roads. That made
the park very appealing to Gordon
Food.
“We look for locations with a great
road network and potential employee population,” explains Andy
Maier, spokesman for Gordon Food
Service.
“We looked at several sites in
Eastern Ohio and Western Pennsylvania and GFS chose the Greater
Pittsburgh area for a new distribution center to meet our growing
network requirements and our
customer needs,” says Ron Scott,
distribution center development
manager. “The Findlay site was
the location of choice due to its
proximity to Pittsburgh, the great
road network, and the people in
the area.”
After Gordon approached them,
Imperial Land hired engineers Lennon Smith Souleret to lay out the
site. The developer and engineers
visited other GFS distribution centers and got a good sense of what
the food service company wanted.
The original design for the 62-acre
site helped clinch the deal and is
essentially what the completed
project will look like.
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“GFS likes to segregate access to
the building for its employees and
its trucks. They liked what we had
done but added another 1,500 lineal feet of Solar Drive to make that
work,” recalls Bunda. “In June they
made the decision to locate here.”
Although the decision-making
process was unusually quick for
such a search, things didn’t go
completely smoothly. While Phase
Two was under construction in October 2012, the Pennsylvania Game
Commission added the Northern
Harrier to its list of endangered
birds. To Imperial Land’s dismay,
a nearby resident claimed to have
seen the bird on Findlay Industrial
Project success.
It’s what our clients do.
It’s what we do.
25
Park’s property. The developer would
have to do an ornithological study
to prove or disprove the claim. The
problem was that the study could
only be conducted between May and
July. By that time in 2013, Imperial
Land was negotiating with GFS and
could not afford the time to do the
study.
“The study would have delayed the
project beyond GFS’s deadline so we
agreed that the bird inhabited our
property,” says Bunda. “We donated
90 acres of land to the Game Commission as a remedy to keep the
project moving.” Bunda says that the
ornithological study was completed
in July 2014. Naturally, the finding
was that the Northern Harrier did
not inhabit the Findlay Industrial
Park.
Another factor in Findlay Industrial
Park’s favor was the manner in which
the park was entitled. Imperial Land
received an NPDES permit for the
entire site. The stormwater plan can
be modified with specific requirements that change with new deals
in a month or so, much less time
than if separate NPDES permits were
sought. “We do the lots as simple
subdivisions and do a modification
of the NPDES with the state in 30 to
45 days,” explains Bunda.
“ We really enjoy
working with Findlay
Township,” says
Bunda. “ When the
regulations were put
in place for Findlay
Industrial Park we
went to the township
and suggested changes
like where the
plantings were in the
buffers. There were
willing to listen and
agreed to some of our
suggestions.”
Park we went to the township and
suggested changes like where the
plantings were in the buffers. There
were willing to listen and agreed to
some of our suggestions.”
GFS began moving towards construction of the center while it was
finalizing its site selection, choosing Whiting-Turner Construction as
the design-builder in summer 2013.
Construction started in the fall and
has made progress towards a spring
2015 opening, even with the difficult winter conditions and wet
spring. The technology and logistics
management that GFS uses makes
the fit-out surprisingly complicated
for a distribution center.
“The building is basically a large
refrigerator. It has four different
temperature zones ranging from
40 degrees down to below zero,”
explains Bunda. “The shell is up but
it will take almost another year to
set up the racks and conveyors. The
process of loading the trucks is all
automated and it’s based on how the
truck will be unloaded at the customer’s dock.”
Half-million square foot users aren’t
doing searches in Southwestern PA
frequently, so Jerry Bunda is glad
that Findlay Industrial Park was ready
when one came knocking.
That process is aided by the favorable working relationship Imperial
“I think Gordon
Land has with Findlay Township and
Food Service is
its staff. Jerry Bunda was Moon
one of those
Township’s assistant manager prior
projects that will
to joining Imperial Land Corp. His
cause real estate
experience and
people to drive
relationships have
out here and
helped smooth
take a look
the dealings with
around,” he
township plansays. “We’re
ners and supervitrying to cresors, but credit
ate a market
also goes to the
out here. GFS
Imperial Land Corporation............................................ Developer
Findlay Township
was a project
staff.
we wanted
Gordon Food Service........................................................... Owner
to have here,
“We really enjoy
not only for
Whiting-Turner Construction.............. Design/build Contractor
working with
Imperial Land
Findlay TownCorp. but for
Lennon Smith Souleret.......................................... Civil Engineer
ship,” says Bunthe Westport
da. “When the
development
Newmark Grubb Knight Frank.............................................Broker
regulations were
district.” DP
put in place for
Findlay Industrial
PROJECT TEAM
| Fall 2014
The experience
to help you every
step of the way.
Before the doors open, the ribbon is cut or the
ground is broken, it begins with a vision and a
ﬁnancial partner who believes in the possibility.
Our Corporate Real Estate team brings their
credibility, honesty, personal service and
years of experience to every relationship.
Turning the possibility into the possible
and helping create stronger, more
vibrant communities. Step by step.
Member FDIC
Developer Profile
Jendoco
Real Estate
P
erhaps real
estate development, like life,
is what happens
while you’re
making other
plans. For Jendoco Real Estate, the
growth of construction into a development business was not about
shrewd planning but the result of a
client with no cash.
“The first property my dad developed
was for a client that he had built a
building for in 1962 but who couldn’t
pay him,” explains Domenic Dozzi
about the real estate business his father, Peter, started. “[The client] had a
piece of ground on Noblestown Road
and it was permitted for an office
building. He told my father you’ll just
have to walk it thru the city. And he
also had a lease agreement roughed
out with Prudential. Jendoco built the
building for Prudential with General
Electric on the first floor and Prudential Insurance on the second floor. Of
course there were some issues with it
so it wasn’t as easy as the client made
it sound.”
in the park and Jendoco Construction
built the building.
Prudential was so happy with the project that Jendoco ended up building
three more locations – roughly 8,000
square foot buildings in Altoona, Beaver Falls and Johnstown – that went
through several generations of tenyear leases before Dozzi sold them.
“After he sold the property, Oren
called my dad and invited him to
lunch,” retells Domenic. “When lunch
was over Oren handed him a check
and my dad asked what the check
was for. Oren explained that if he had
sold it with a broker, he would owe
the broker a fee so he was paying him
instead. My dad said that he wasn’t
a broker. That’s not what he did. He
thanked Oren but said that someday
he may need a favor and he could pay
him back then.”
“My dad being my dad he taught
himself the business, learning the
leasing and taxes and all the things
that go with development,” Domenic
says. “He found it to be an interesting
business and it made sense because
he could do the construction and it
kept his guys busy. Then he met Oren
Sampson in the early-1960s and they
formed a partnership to develop Monroeville Business Park.”
True to form, even that wasn’t completely intentional. Pete Dozzi brought
a prospective client, Oscar Mayer, to
the Monroeville Industrial Park, which
Sampson was beginning to develop
along the PA Turnpike. Dozzi took
Oscar Mayer’s executive to the park;
brought an architect to look at it and
the client liked it. Oscar Mayer subsequently bought the first parcel sold
As fate would have it, Pete Dozzi
had the same experience with two
more industrial prospects, each time
building for the company that bought
the parcel from Sampson. Because of
his relationships built as a contractor, Dozzi had sold the first three lots
in Monroeville Industrial Park. After
each sale, Sampson bought lunch and
pressed a check upon Dozzi, which he
continued to decline.
Sampson was amazed at Dozzi’s stubborn refusal of a finder’s fee and was
impressed with the buildings that Jendoco built in the park. He had never
29
warehouse to have more
flexibility in the amount of
office space involved. These
“flex” buildings remained
industrial in use but had up
to 80/20 split between the
warehouse and office space
respectively. This concept
permitted a broader base
of users, making room for
research or testing labs,
as well as variable office
space.
The SamDoz partnership
later developed in Cranberry Township, building the
Cranberry Commerce Center just as that market was
taking off, completing the
project in the mid-1990s.
In the Monroeville/Plum
market they developed the
Plum Court Industrial Park
and Jendoco developed
the Royal Oaks Shopping
Center on its own.
Jendoco Real Estate’s leadership team (from left) CEO Domenic Dozzi,
Bob Lloyd, Cathy Smith and Pierre Brun.
worked with a partner before but offered to work as Dozzi’s development
partner on a new project he wanted
to introduce to Pittsburgh.
“Oren said there’s this new concept
out of California that’s called an industrial apartment – which we know
today as the multi-tenant warehouse
building – and I want to build it here
[in Monroeville] but own it and lease
it instead of selling the land. He asked
my father to be his partner and Dad
thought it was a great idea.”
Following on the heels of the success of Monroeville Business Park,
the partners saw opportunity on the
horizon in the west. They bought the
Glass farm in Robinson Township at a
time when the surrounding land was
working farms and began to develop
Parkway West Business Park. As that
project was developing Dozzi formed
another partnership with close friend
Al Cousins, owner of excavating contractor Noralco Corp. Together they
developed the Vista Business Park just
west of the Parkway West property on
Campbells Run Road.
One caveat was that Sampson wanted
to limit Dozzi’s ownership to 48 percent, an offer Dozzi declined. After
a few months, Sampson approached
Dozzi again with a different idea. Each
partner would own 49 percent and
John Truxell – an attorney both knew
and respected – would get two percent
and act as the decision-maker in the
event of a dispute. They called the partnership Samdoz and founded Pittsburgh
Industrial Parks, starting construction
on the Monroeville Business Park.
Parkway West Business Park ultimately
grew to 17 buildings and 660,000
square feet. Vista Business Park contains nine buildings totaling 410,000
square feet. At the time, Oren Sampson believed that the Parkway West
and the new airport would draw
business to the western suburbs.
The Jendoco properties were located
equidistant between Downtown and
the airport and the location worked as
planned.
Their first building was leased to Dr.
Richard Beatty, founder of the Forbes
Road Career & Technology Center. After that the park was off and running.
During the 1970s, Jendoco’s parks
grew exponentially, in part because
their building design evolved into a
model that allowed for the typical
| Fall 2014
Jendoco Real Estate parlayed Jendoco
Construction’s building of the Forbes
Regional Medical Center in 1975 into
the opportunity to develop a 52,000
square foot medical office building on
the Forbes campus in 1979 after the
hospital opened. The Forbes medical
office project serves as an example of
Jendoco’s philosophy with real estate
and development. They did a 99-year
land lease and the lease for the medical office building exceeded 50 years.
In 2007, the next generation of the
Dozzi and Sampson families amicably
chose to end their development partnership. When the partners divided
the properties, Sampson kept the
Monroeville Business Park, Plum Industrial Court and Cranberry Business
Park. Jendoco held onto the Beatty
Road Business Park and the Parkway
West Business Park.
Domenic Dozzi was introduced to the
business by working summers from
ages 13 to 20 in the field, on job sites
like Forbes Regional for the construction company and in slower summers he did maintenance work in the
business parks. After graduation from
University of Pittsburgh, Domenic was
part of the project management team
that built Trimont on Mount Washington and worked as a construction
project manager until 1987. As part
of Jendoco’s management transition,
Dom began working more in the real
estate business with Tom Murphy. As
Pete Dozzi was moving towards retirement and Jendoco’s president, Fred
Fanto, retired, Murphy began spending
most of his time with the construction
side of the company. More of the responsibility for the real estate business
fell to Domenic by the 1990s.
Jendoco’s current flex project is the
Settler’s Cabin Business Center. The
property is a nine-building, 190,000
square foot plan that began development roughly 25 years ago but went
dormant as the Parkway West corridor
became overbuilt and experienced high
vacancy rates during the 1990s. With
the rejuvenation of that airport corridor came new construction. Jendoco
completed the 22,000 square foot
Building 300, Settler’s Cabin’s second
building, in January 2014 and the
property is already 75 percent leased.
“We’re very close to going ahead
with a third building,” says Domenic.
“When [Building 300] is a little further
leased we’ll roll into the next building. We also just finished the Sunset
building in Wexford, a 22,000 square
foot office building. I like the North
Hills and hope this will be the first of
a number of projects.”
Jendoco remains a very lean organization. Domenic Dozzi and CFO Scott
Burnett share time with the same roles
in the construction business. Bob Lloyd
joined the company in 1989 and is
Jendoco Real Estate’s vice president,
running the day-to-day operations.
Pierre Brun is responsible for marketing
and leasing Jendoco’s properties. Cathy
Smith is Jendoco’s property manager.
“She’s really the one who tells us
what to do,” jokes Lloyd.
Dom Dozzi credits Smith with being
the face and voice of Jendoco Real
Estate, as the person the tenant is going to encounter first, especially when
there is a problem. In addition to the
administration of property management, Smith is the person most likely
to handle the call from the unhappy
tenant whose power is out or water is
off and has learned to tactfully direct
the tenant to the appropriate party
for relief. Sometimes, of course, tact
isn’t sufficient.
“When someone gets really out-ofhand I give them to Bob,” she says.
“He really has a calm demeanor and
just listens to whatever they have to
say. Most of the time he’ll say to me
‘they were fine’ when he gets off the
phone.”
Jendoco’s cur rent flex
project is the Settler ’s
Cabin Business
Cent er. The property
is a nine-building,
190,000 square foot
plan that began
development roughly
25 years ago but
went dor mant as the
Parkway West cor ridor
became overbuilt and
experienced high
vacancy rates during
the 1990s.
“If somebody’s mad it’s usually because they have a reason to be mad,”
explains Lloyd. “You just have to listen to them, let them tell you what’s
wrong. There’s nothing that you can’t
work out with somebody.”
The attention to tenants is part of
the modus operandi at Jendoco Real
Estate. The culture at Jendoco places
a very high value on long-term loyalty.
Pete Dozzi proudly tells you that he
has been using the same accounting
and legal advisors since he started in
1957. Many of their employees have
been with the company for most or all
of their careers, including laborers and
carpenters who have 35 years on the
job. Jendoco is similarly proud to have
tenants that have been renting in the
same place for 25 years or more.
As a developer that is also a general
contractor Jendoco handles virtually
all of its tenant fit-out work. While
they will occasionally bid something
for a tenant, Jendoco looks at construction in its buildings holistically,
occasionally doing improvements
beyond the scope of the tenant’s
requirements because a problem
that might affect the quality of the
property needs to be addressed. That
approach is part of a conservative philosophy that views decisions through
the prism of a multi-generational
view.
“Maybe if you were looking to flip a
property in three or five years it would
make sense to do it the cheapest way
possible but that’s not our philosophy,” Domenic Dozzi explains. “We
look to maintain our buildings not
only so that they look good but also in
a way that makes them operate more
efficiently. When we replace a roof,
for example, there is a minimum code
requirement of insulation. We “overinsulate” the building so that the
tenant doesn’t have to pay as large a
heating bill, especially if it’s a national
company. Our tenants pay their own
utility bills but we don’t want to stick
out like a sore thumb when they look
at their operating expenses.
We look to build and hold a property for many years so it’s a different
horizon, a different set of criterion. I
don’t want to risk the good properties we have built to take a flyer on
something.”
With the current new developments
included, Jendoco Real Estate operates 1.5 million square feet of what
Pierre Brun refers to as Class B+
space.
“I think we have been able to navigate the bad times well because the
properties are well-located and we
have benefitted from having small
spaces to lease as well as the large
spaces,” notes Brun. “There have
been a number of startup companies
that we have leased 3,000 square feet
or something. They have grown and
they have been able to grow with us.”
“If we have one overriding philosophy
it’s that we treat the people who are
already in our parks better than someone who just walks in off the street,”
Domenic Dozzi says. “We want to
develop those long-term relationships
and we have tenants that have been
with us twenty or thirty years. I look
at some of our renewals and they are
for leases I negotiated in the early
1980s.” DP
31
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what can
be done.
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CIB RE PDF 0214-052-175097
Developing Trend
Construction is underway on Millcraft’s Gardens at Market Square,
which includes 128,000 square
feet of speculative office space.
What Does it Take
to Build New in
Downtown?
D
owntown
Pittsburgh
has arguably
been the
city’s hottest location
for a handful of years. Hundreds
of apartments have been added to
the inventory and snapped up in no
strains from both sides
of the supply and demand curve. Many of
the new apartments –
and Point Park’s ambitious campus expansion
– were created by converting existing underutilized office buildings.
At the same time, a
number of employers
located Downtown were
growing. Some – notably UPMC and PNC
Financial Services – were
gobbling up space by
the hundreds of thousands of square feet.
Supply shrank while
demand soared and
vacancy rates fell from
the high teens to under
ten percent, lower in
the true Class A properties. The stage was
set for new construction and what followed
was an underwhelming
response.
time. The additional residents have
sparked a renaissance in restaurants,
night clubs and retail stores. There is
even a plan or two to build a grocery
store (insert gasp here).
“There has been a discount between the appetite for rent and the
cost of new construction,” says Kevin Riley,
director of Weber Wood
Medinger’s Pittsburgh
office. “Pittsburgh has
great occupancy levels
but if you built new
you had to charge another $10 per
square foot more in rent. That’s still
sticker shock in Midwestern markets.”
The work piece of the live/work/
play equation that makes Downtown
attractive doesn’t get as much ink
as the other components but job
creation and the growth of a few of
Pittsburgh’s largest employers set
the table for the lifestyle.
Riley mentions doing a presentation
in San Francisco where the market
dynamics were roughly the same
as Pittsburgh’s. “San Francisco has
the same vacancy and absorption
rates but the rents are three times
higher.”
As it translates to commercial real
estate, these dynamics created
T im Goetz, president of Cushman &
Wakefield | Grant Street Associates,
33
Oxford Development’s 350 Fifth Avenue will
be the first purely multi-tenant spec office
building built in Downtown since the 1980s.
puts the gap in rents in a historical
perspective. Goetz points out that
the combination of the big industry
exodus and new construction boom
led to five million vacant square feet
by the late 1980’s, conditions that
took more than twenty years to reverse. And he notes that Pittsburgh’s
new economy has created other
business centers besides Downtown
over the years.
“Southpointe is an example. It has
such demand. Companies love that
location,” says Goetz. “I don’t think
there’s that much negotiation going
on there. I think [developers] are
able to sit down and say you want
a high quality building and we need
to make this kind of return so let’s
make a fair deal. They are getting
market rates but building in Southpointe is cheaper than in Downtown
or Oakland.”
“The cost of doing something Downtown is so much greater than in the
| Fall 2014
“This is the tightest
market since the
1970’s,” says Goetz.
“Rents are getting
annual bumps in
addition to operating
expenses and taxes.
It’s changing almost
monthly. Tenants are
looking at $28 to $32
with annual bumps in
Class A renewals.”
suburbs,” says Jim Scalo, president
of Burns & Scalo Real Estate Services, whose company has developed
extensively in Southpointe since
1994. “When we look at the highrise we want to do Downtown the
rents have to be in the high $30’s.”
It isn’t actually that construction
per se costs more but the conditions
that go with building in a downtown
location, points out Jeff Turconi,
president of PJ Dick Inc., the general
contractor for the Tower at PNC and
Three PNC Plaza.
“You’re building vertical construction and that’s very different. If you
gave me a site downtown where
we could build Range Resources the
same way we did at Southpointe, the
cost would be the same,” he explains. “The economic model is different. Land costs are much higher
so you build what makes those costs
work on a much smaller site. You
can’t build a 300-car parking lot so
you have to go underground with a parking
garage. Utility costs are
higher. It’s more expensive to build 40 stories
than it is to do five stories with 50,000 square
foot floor plates.”
Oxford Development
has been the developer/
owner’s representative
for the PNC projects that
PJ Dick has undertaken.
Scott Pollock, Oxford’s
vice president of development, says that
construction downtown
is the exact opposite of
the optimum building
design.
“Short and fat is where
it’s at, right?” he jokes.
“High-rise certainly
costs more to build than
a clean suburban site
because of the things
that are unique to that
kind of building. You
have underground parking, which can be three
or four times the cost of
structured parking above
ground, but there are
also the additional costs of exiting,
life safety, stairwell pressurization and
the increased costs of meeting the
high-rise codes.”
While opinions vary as to how much
more high-rise construction costs,
there is no argument that it will cost
significantly more to develop in the
Central Business District. To justify the
additional costs, developers need to
get a premium rent. For many years
that premium wasn’t sufficient to
offset the costs (many buildings didn’t
even command a premium rent at all)
and there was little or no rent growth.
W ith those dynamics and with rising costs of construction, developers
couldn’t project profitable operating
conditions or an exit strategy that was
positive. That has changed significantly during the past five years.
“This is the tightest market since
the 1970’s,” says Goetz. “Rents are
getting annual bumps in addition to
operating expenses and taxes. It’s
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35
changing almost monthly. Tenants
are looking at $28 to $32 with annual bumps in Class A renewals.”
That growth in rents has been the key
to attracting investors in Pittsburgh
properties. A number of Downtown
buildings have changed hands in the
past couple of years, with prices in the
$150 per square foot range. That kind
of investor interest often precedes new
construction and that may be the case
now in Pittsburgh. Millcraft Investments
started construction earlier this year
on its $100 million Gardens at Market Square, a mixed-use project that
includes 128,000 square feet of office
space. And a more ambitious proposal,
Oxford’s 350 Fifth Avenue office building, seems closer to reality as the summer winds down.
Oxford’s plan when originally announced was to find an anchor tenant for the new 33-story, 772,000
square foot building within a year or
so or to scrap the high-rise project
in favor of renovating the existing
441 Smithfield Street office building that stands at the site. The
rapidly-changing dynamics of which
T im Goetz spoke have rendered the
alternate plan obsolete, according to
Oxford’s CEO Steve Guy.
“The renovation of 441 Smithfield
Street is too expensive for the market. We would need $31 or $32 per
square foot for it to be feasible but
the market for that kind of property
is $24 per square foot.”
In mid-August, Oxford announced
that it revised plans for the tower,
deciding on a new $192 million,
20-story tower. The 521,000 square
foot project is expected to start construction in 2015.
Guy says that Oxford has lined up
commitments for portions of the
new building and is within striking
distance of an agreement with a big
user that would make the project
go. That announcement could come
as soon as the end of August. Once
concerned with whether or not Pittsburgh companies had the appetite
for the rent a new tower needed,
Guy is more focused and enthusiastic
about how the design of 350 Fifth
Avenue makes the numbers work.
| Fall 2014
“The key is the cost of
occupancy. Occupancy
costs will be three-tosix percent less because
of its efficiency,” he
says. Guy explains
that it will be energy
efficient, and 350 Fifth
will have significant
operational advantages
because of its design.
The building’s exterior
walls will also be the
structural system,
allowing for 42 foot
clear spans. High-speed
elevators eliminate
the number of cars
needed, reducing the
maintenance expense
and further opening up
the floor plates. And
the building will have
pressurized, raised
flooring throughout,
making expansion and
tenant improvements
much less costly. More
importantly, the design
makes the building 92
to 93 percent rentable.
“The key is the cost of occupancy.
Occupancy costs will be three-to-six
percent less because of its efficiency,” he says. Guy explains that
it will be energy efficient, and 350
Fifth will have significant operational
advantages because of its design.
The building’s exterior walls will also
be the structural system, allowing
for 42 foot clear spans. High-speed
elevators eliminate the number of
cars needed, reducing the maintenance expense and further opening
up the floor plates. And the building
will have pressurized, raised flooring throughout, making expansion
and tenant improvements much less
costly. More importantly, the design
makes the building 92 to 93 percent
rentable.
No matter how efficient the design,
Oxford will need to get higher rents
than average for Downtown, but
most observers don’t think that will
be such a stretch, especially if the
developer is able to attract an iconic
user to brand the building.
“New buildings win; old buildings
lose,” offers Jim Scalo. “Tenants like
new buildings. Today they perform
so much better than older buildings.
Better glass. Better mechanical and
electrical systems. There is so much
more focus on culture that you’re
selling lifestyle not floor space.
That’s a game changer.”
That shift is being seen in some of
the deals all around the city. Companies are seeing the competitive
advantage of investing more than
high salaries in top talent – Google
is but the most public example – and
the influx of businesses from other
markets around the globe lessens
the delta between the lower rents
of the past and the expectations for
rents for companies coming here
from California, Boston or New York.
T im Goetz believes it’s getting to
the point of being an easier sell in
Downtown.
“When Steve Guy announced [350
Fifth] we asked what kind of rent
was needed and the answer was in
the mid-to-upper $30’s,” he recalls.
“Why would you go to new when
you could renew in PPG or wherever
at $24 per foot? But now that the
same renewal is $32 or so, it’s not so
scary a jump anymore.” DP
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admitted in Pennsylvania, New Jersey and Texas and has similar extensive experience in construction law.
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[email protected]
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Construction
Crred
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& In
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Eye on the Economy
T
he final week
in July proved
to be a dramatic one
for economic
information.
When the dust settled, there was
more certainty about economic
recovery, employment and output.
The data, which was overwhelmingly
positive on the surface, painted a
picture of a growing economy that
was less fragile; however, the pace
of activity also raised fresh concerns
about what the Federal Reserve may
do in response.
July 30’s report on second quarter
gross domestic product (GDP) provided relief for businesses still uncertain about the economy. The Bureau
of Economic Analysis (BEA) first esti-
mate of GDP growth from April-June
rose was 4.0 percent, much higher
than expected. The growth gave
credence to the theory that the first
quarter decline (which was downgraded to -2.1 percent) was due to
winter storms and the adjustment to
Affordable Healthcare Act. During
the second quarter spending rose
slightly on healthcare, an important
development, and consumers spent
14 percent more on durable goods.
There were also significant gains in
construction and business spending.
The jump in GDP didn’t surprise all
economists. PNC Financial Services
Group has been somewhat more
optimistic than other experts in their
view of the economy in 2014 and
this data matched their outlook.
“We weren’t surprised in the least.
Four percent was exactly what we
forecasted,” says Kurt Rankin, economist and assistant vice president
at PNC. “Given the fact that the
economy is doing well on its own, it
was not surprising that GDP would
bounce back from a slow winter.”
Gross domestic product is the one
measure that may be irrelevant to
the analysis at the moment. The
continued revision of past quarters’
and years’ GDP, combined with the
extraordinary impact on GDP from
this winter’s harsh weather, has
rendered the long-time benchmark
of economic activity temporarily less
reliable. It will probably take the full
year of 2014 before the Bureau of
Economic Analysis and economists
figure how the drastic winter should
39
be viewed. Moreover, in the context of the U. S. business cycle, the
declining unemployment rate has
become a more pressing issue.
Most economists were forecasting that the improvement in hiring
during 2013 would bring unemployment down to six percent by the
end of 2014. The Federal Reserve’s
estimate at this time last year was
for unemployment to still be above
6.5 percent at the end of 2014 and
even their most recent revised estimates still forecast unemployment
above 5.5 percent until sometime
in 2016. The hiring in recent quarters – in concert with a reduction
in workforce – had dropped the unemployment rate to the six percent
level already and some forecasters
are beginning to see a return to full
employment levels as early as first
quarter 2015.
By full employment, economists
aren’t literally referring to a situation where all workers are employed
but rather a condition where unMt Lebo Office Ad:Layout 1
8/15/13
The most stable
property type was
retail, although
IRR noted that the
number of markets
moving from recover y
into expansion
jumped from 29 to 41
percent.
employment is sufficiently low that
workforce expansion cannot keep
up with economic expansion and
wage inflation follows. A number of
private economic surveys are indicating that such wage pressure is
beginning.
The number of companies increasing wages more than doubled since
2013, according to the Business
10:19 AM
Conditions Survey that the National
Association for Business Economics
(NABE) released on July 21. NABE’s
survey found that 43 percent of the
79 corporate economists who participated said their firms had increased
wages. That compared to only 19
percent last year and marked an
increase from 35 percent in JanuaryMarch of this year. The July survey
marked the first time since October
2012 that no respondents reported
declining wages at their firms.
"For the third survey in a row, an increasing share of panelists reported
rising wage costs last quarter," said
NABE President Jack Kleinhenz, who
is also chief economist at the National Retail Federation.
The NABE wage findings have been
echoed in other research that is
suggesting that the declining unemployment rate may be accelerating
towards full employment conditions
as soon as the fourth quarter of
2014. The National Federation of
Independent Business (NFIB) survey
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| Fall 2014
on compensation has been trending
higher since late 2013 and the NFIB
Compensation Index is at a six-year
high. NFIB’s index has been closely
correlated with a broader measure of
wage growth.
At the Federal Reserve’s semi-annual
presentation to Congress in July,
Chairperson Janet Yellen made
several remarks that suggested that
the Fed’s governors were watching
unemployment levels more closely as
triggers for inflation and therefore, a
signal to raise interest rates.
PNC’s Rankin doesn’t see conditions
changing fast enough to precipitate a change in policy, however.
“Wage inflation is still generally flat.
There is still a lot of slack in the
labor force, which is why we forecast the Fed won’t raise rates until
late 2015,” Rankin says. “We’re still
about 3.5 million workers below
where we were prior to the recession. That gap has been filled so far
by part-time workers.”
Source: Integra Realty Resources Viewpoint.
The NABE Business Conditions
Survey also found that sales, employment and capital spending all
increased at a faster pace in the
second quarter of 2014 than in the
first quarter. The survey, to which
85 corporate economists responded
between June 23 and 30, showed
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41
Construction starts tend to
lag increases in development
and design activity by six
months or more, however,
and there is growing evidence that planning activity
was up significantly during
the second quarter. Much of
the speculative space under
construction has been leased,
which gives developers confidence to build further spec
projects. In the residential
sector, for example, the first
half of 2014 is looking like
more of a pause in the investment in new multi-family
development. That segment
of the market in still booming
in the rest of the U. S.
Despite 180,000 units added to the inventory, both rents and occupancy levels
grew at an accelerated pace in the second quarter of 2014. Source: Axiometrics.
spending growth at significantly
more firms than reported decreases.
Of the 62 respondents who reported
on capital spending on structures at
their firms last quarter, 29 percent
reported an increase and 8 percent
a decrease. Of the 60 who reported
on expected structures investment in
the third quarter, 27 percent stated
they expect an increase, 13 percent
a decrease.
Some of that planned increased investment in structures showed up in
the second quarter. According to the
BEA, private fixed investment in new
structures increased at a 5.4 percent
rate from April through June, up
from a 3.1 percent rate in the first
quarter. Investment in new nonresidential structures rose 5.3 percent
and new residential structures, 5.6
percent.
Construction activity at the regional
level was less robust, reflecting
something of a disconnect between
the health of the local economy
and the investment in structures.
Housing starts fell 37.3 percent in
the first half of 2014, mostly attributable to the dramatic increase
in apartments during the first six
months of 2013. Nonresidential
construction contracts fell by more
than 29 percent year-over-year, even
as space tightened in Metropolitan
Pittsburgh.
| Fall 2014
The second quarter
of 2014 was the
strongest quarter for
the U.S. apartment
market since the
third quarter of 2000,
according to data
from Axiometrics, a
sup plier of apartment
data and research.
Effective rent growth
was 2.4 percent in
April-June 2014.
The occupancy in
the second quarter
of 2014 was 95.0
percent. Both
rent growth and
occupancy improved
dramatically af ter the
end of Febr uar y.
The second quarter of 2014 was the
strongest quarter for the U.S. apartment market since the third quarter
of 2000, according to data from
Axiometrics, a supplier of apartment
data and research. Effective rent
growth was 2.4 percent in April-June
2014. The occupancy in the second
quarter of 2014 was 95.0 percent.
Both rent growth and occupancy
improved dramatically after the end
of February.
Even as home values continue to
grow – if somewhat erratically –
there remains strong demographic
support for apartments and home
ownership levels continued to
decline during the recent quarter,
extending a trend that is due in part
to a change in lifestyle choices and
partly due to continued tighter regulations on residential mortgages.
Census Bureau statistics show that
the home-ownership rate in the first
quarter of 2014 was 64.8 percent,
the lowest in 19 years – since the
second quarter of 1995, when the
rate was 64.7 percent.
An increase in deliveries of 180,000
new units in the past 12 months has
had no impact on the fundamental
supply/demand balance. Perhaps
that is because the amount of new
residential construction overall still
lags the historical norms. Nonetheless, some investors are beginning
to question if a bubble is building
in apartments, especially since deal
flow has increased and large institutions have pushed cap rates regularly to the five percent range. The
history of multi-family development
is boom-and-bust cycles, however, so
the formation of a bubble in this asset class is likely at some point.
Former Federal Reserve Chairman
Alan Greenspan spoke about asset
bubbles in a July 23 interview with
Marketwatch. Greenspan ultimately
concluded that asset bubbles were
inevitable, given human nature, and
that they generally did little material
damage to the economy. He differentiated previous bubble collapses
from the mortgage crisis in 2008,
seeing the residual fear from that
crisis as the fallout that is still impacting the U. S. economy.
“If you trace the history of the average maturity of the components of
GDP, what you find is that all of the
shortfall of economic activity following 2008 is in very long-lived
assets, fundamentally structures,”
he said. “Every single one of the ten
major postwar recoveries was heavily
driven by a faster-than-GDP growth
in structures — except this one.
What went wrong? Business and
household fear gripped the markets
in ways not seen since before World
War II. The share of nonfinancial corporate liquid cash flow that corporate management chooses to invest
in illiquid long-term assets fell to the
lowest peacetime level since 1938.
Householders engaged in a massive
shift from long-term homeownership
to rentals.”
A combination of improving economic fundamentals and the unrequited
thirst for yield pushed all asset classes in commercial real estate higher
at mid-year than at the same period
in 2013 (this is true of most non-real
estate asset classes as well).
According to Integra Realty Resources’ mid-year Viewpoint report,
the majority of U. S. markets experienced falling vacancy and capitalization rates during the first six months
of 2014.
For CBD offices, the vacancy rate fell
to 13.5 percent with the cap rate
declining to 7.2. In suburban office
Source: Integra Realty Resources Viewpoint.
properties, vacancy fell to 13.6 percent with cap rates at 7.5 percent.
IRR found that CBD vacancy rates
declined in 61.8 percent of U. S. cities, while vacancy fell in a whopping
81.7 percent of suburban office markets. The average CBD office rent
was $28 per square foot; suburban
rents averaged $24.
Performance for industrial properties was the strongest at mid-year
2014. IRR reported that 51 percent
of the markets were expanding and
that a staggering 81.7 percent of U.
S. markets had experienced cap rate
contraction during the first half of
2014, double the level of contraction in every other property class.
Industrial Class A vacancy declined
to 8.5 percent, while the cap rate
shrunk to 7.2 percent. Rents rose
slightly, averaging $5.25 per square
foot. Flex industrial vacancy rates
fell to 11.3 percent, with rents rising
to $8.91.
IRR forecasts continued improvement in virtually all metrics across all
commercial real estate asset classes
during 2014. In the bottom line
measure – increase in property value
– IRR projects an average increase
in all categories it tracks, with three
quarters of the U. S. markets seeing
increases in value for all sectors except regional malls. Improving global
economic conditions and modest
additions to inventory will keep
demand growing faster than supply. Moreover, investor appetite for
yield will continue to outstrip risk
concerns, at least until a significant
change in interest rates occurs. W ith
the yield on 10-year Treasury notes
still hovering at 250 basis points,
there is plenty of room for rates
to move before reaching historical
norms. DP
The most stable property type was
retail, although IRR noted that the
number of markets moving from
recovery into expansion jumped
from 29 to 41 percent. Cap rates
remained flat during the first six
months with the exception of the
northeastern U. S. Vacancy levels
for community retail were 8.5 percent, with average rents of $19 per
square foot. For neighborhood retail,
vacancy was at 9.5 percent with an
average rent of $17.
43
Office Market Update
Economic/Employment
Overview
B
ruce Katz of
the Brookings
Institution, a
Washington,
D.C.-based,
private
research organization, says that
Pittsburgh is one of a short list of
cities best positioned for success in
the new economy, citing the city's
platform of government; strength of
leadership; blend of universities and
corporate assets; and its status as a
research and innovation hub as key
factors in this assessment. Certainly,
the region's declining unemployment rate, down to 5.6% at the
conclusion of Q2 2014, is a strong
indicator of the city's resilience. The
Pittsburgh Downtown Partnership
announced in its annual State of
Downtown Report that the population within the Greater Downtown
area had grown by more than 40%
over the past decade. The city is
host to more than 4,450 residential
units and boasts a 96% occupancy
rate with 517 new units currently
under construction.
Average wages in the market rose
1.8% over the previous year to
$49,170. Wages within the region
grew 13% from 2009 to 2013, more
than double the growth in Pennsylvania and much more than the
national average of 1.5%, as reported by the Federal Reserve Bank
of Cleveland. The increase can be
largely attributed to the region's
"eds and meds" culture and the
explosion of the shale industry.
45
600,000 sq. ft. of new construction
is underway in Southpointe II, with
more than half of the new space already committed to new and relocating tenants, including Noble Energy
and Ansys. In Cranberry Township,
Butler County, Sampson Morris
Group is planning a 125,645 sq. ft.
mixed-use project called Ehrman
Square; Sippel Industries plans to
add a 190,000 sq. ft. office building
adjacent to the new Pittsburgh Penguins/UPMC Sports Medicine facility;
and, Chaska Properties is proposing
another 100,000 sq. ft. at Cranberry
Business Park.
SUBURBAN OFFICE
CONSTRUCTION BOOMING
W ith a direct vacancy rate of just
8.8%, the suburban office market
is poised for new construction and
local developers are delivering. In
Oakland, site work has begun on
The Elmhurst Group's Schenley
Place, a 105,000-square foot medical/office building situated near the
Carnegie Mellon and University of
Pittsburgh campuses. Walnut Capital broke ground on its $120-million
Bakery Square 2.0 in nearby East
Liberty. The first phase of the project includes 218,000 square feet of
office space over six floors. Google,
Inc. already has leased 68,588 sq.
ft. in the new building bringing
its total occupancy in the complex
to more than 425,000 sq. ft. Over
Over 600,000
sq. f t. of new
constr uction
is under way in
Southpointe II,
with more than half
of the new space
already committed
to new and
relocating tenants,
including Noble
Energy and Ansys.
Among the Q2 2014 deliveries
were Westpointe Corporate Center, a 130,000-square foot building
situated in Pittsburgh's Parkway
West submarket. The building is
60% leased upon Calgon Carbon's
execution of a long-term deal that
includes 75,566 sq. ft. of office and
R&D facilities. The company will
consolidate two nearby locations
into the center later this year. Additionally, Burns & Scalo completed
construction on 2400 Zenith Ridge,
a 150,000 sq. ft. office building
located within Southpointe Business
Park. Though the building opened
fully vacant, demand for space in
the park by Marcellus-related businesses remains strong and should
lead to new tenants by year-end.
In fact, Crossgates, Inc. announced
that its 45,000 sq. ft. speculative
Southpointe II building had been
fully leased to tenants Rice Energy,
18,380 sq. ft.; Computer Aid, Inc.,
15,000 sq. ft.; NiSource, Midstream
Services and Stallion Oilfield Services.
CLASS A VACANCY DIPS
BELOW 7.0% IN CBD
Though the direct vacancy rate
for all classes of space in the CBD
ended Q2 2014 at 7.5%, Class A
vacancy stood at just 6.4% signaling
the probability of rising rental rates
throughout 2014. The current average asking rent for Class A is $25.66
per square foot with the premier
buildings asking $29.00 to $35.00
per square foot on a five-year deal.
Though a few pockets of Class A
space have opened over the past 12
months as a result of corporate re-
| Fall 2014
structuring, many have been quickly
absorbed by new and expanding
tenants in the market. UPMC Health
Plan announced its plans to move
450 employees from One Chatham
Center to 140,000 sq. ft. at Heinz
57 Center, assuming a portion of the
Heinz sublease through its expiration in 2026.
CONVERSIONS LEAD
CONSTRUCTION ACTIVITY
From PNC Bank converting the
former Lord & Taylor from a store
to an open concept call center, to
PMC Property Group shifting the
top office floors of the Clark Building in the Cultural District to 144
apartments, conversion projects
are driving construction activity in
Pittsburgh's CBD. The low office
vacancy, currently listed at 10.0%,
has prompted multi-family and hotel
developers to invest in Pittsburgh's
core. The former Federal Reserve
Building and the James Reed Building are being developed into a Drury
Inn & Suites and a Kimpton Hotel,
respectively. In addition, the Henry
W. Oliver Building, a Pittsburgh
icon for more than 100 years, has
reached 90% occupancy with the
upper 11 floors being converted to
an Embassy Suites hotel and nearly
50,000 sq. ft. of new office leases
executed in the past 24 months.
NEW DEVELOPMENTS
PROGRESS IN CBD
The Elmhurst Group saw a return
on its $3 million renovation to the
130,000 sq. ft. former FiServ Building when it inked a long-term lease
with Pittsburgh start-up 4moms for
81,000 sq. ft. The high-end baby
product manufacturer has outgrown
its flex space in the nearby Strip
District and opted to move its operations to class-A offices in the CBD.
Oxford Development Company in
partnership with the Urban Redevelopment Authority of Pittsburgh
announced plans for Three Crossings, a 299-unit apartment complex
that also will feature 250,000 sq. ft.
of urban flex office and retail space,
as well as, an intermodal transportation facility with 700 parking spaces,
bicycle repair station and electric
vehicle charging stations. The $122
million mixed-use project will be
built on an 11-acre brownfield site
that sits at the entrance to the Strip
District. R ycon Construction, Inc.
recently signed on to be the first
tenant with plans to occupy 25,000
sq. ft. of office space upon completion.
ity should remain ahead of 2013
with steady increases in rental rates
across all classes. Capital markets
activity should surpass the annual
totals of the past few years. The
scheduled completion of several new
projects should positively impact
inventory and absorption levels at
year-end.
Jack O'Donoghue, SIOR
Principal
Cushman & Wakefield | Grant Street
Associates, Inc.
310 Grant Street, Suite 1550
Pittsburgh PA 15219
412-391-2600
[email protected]
www.gas-cw.com DP
OUTLOOK
Jack O’Donoghue
Recently ranked Fifth Most Resilient City in the World by Grosvenor
Research, Pittsburgh's leasing activ-
47
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Industrial Market Update
T
Market Overview
he Pittsburgh
Industrial Market continued
to tighten
throughout
the first half
of 2014. To summarize the current
dynamics of the market, we’ve highlighted four primary factors that determine the market’s fundamentals:
Vacancy/Availability
The market’s vacancy rate continues
to decrease, with current vacancy
and availability rates of 6.9% and
8.5%, respectively. The market has
surpassed the previous low vacancy
of 7.1% in the 4Q of 2008. Vacancy
rates for quality properties are even
lower, with the Warehouse market’s
vacancy rate currently at 3.8% and
the Modern/Class A Warehouse
vacancy rate at 2.9%. Market wide
vacancy will continue to decrease for
the balance of 2014 with vacancy
rates forecasted to approach 6.5%.
Certain submarkets have no existing warehouse inventory available,
let alone available Class A product.
That is the case in the Parkway West
corridor and Washington County,
both of which are desirable submarkets where users want to be.
Additionally, there are currently no
vacant blocks of warehouse space in
excess of 100,000 square feet with a
clear ceiling height of 24’ or more.
Photo courtesy Armstrong County
Industrial Development Council
Absorption
Absorption continues to strengthen
and will be aided in 2014 by a number of large transactions, including
Cenveo’s 300,000 square foot lease
at RIDC Westmoreland, Amazon’s
252,000 square foot lease at 2250
Roswell, and the Pittsburgh PostGazette’s 235,000 square foot lease
at the former Flabeg Solar building
(2201 Sweeney Drive in Findlay).
Positive net absorption for 2014 is
forecasted to significantly exceed
one million square feet with the
potential to approach two million
square feet based on active tenant
requirements.
While user demand has not been
overly robust since 2007, it has
greatly exceeded both new speculative construction and existing
inventory returning to the market.
As speculative construction remains
limited and existing buildings are
not returning to the market in large
scale, new demand will continue to
outpace new supply.
Construction
Total deliveries for the first half of
the year totaled 297,000 square feet
and space currently under construction totals 928,000 square feet, the
bulk of which is comprised of owner/
occupied build-to-suits. Overall
49
construction numbers, both in space
under construction and deliveries,
are up from recent years. This is a
consequence of very limited quality
inventory available in many submarkets, a trend that will continue for
the foreseeable future and that has
the potential to result in new construction for many occupiers whose
businesses mandate an expansion or
an upgrade of their space.
Only 82,900 square feet is under
construction speculatively, which
equates to less than 9% of the total
space under construction. Additionally, speculative starts for the balance
of the year appear to be limited. To
provide some historical perspective,
in 2007, 1,065,000 square feet were
delivered. Of the 1,065,000 square
feet, 890,000 square feet, comprised
of five modern warehouse buildings,
were delivered speculatively. Since
then, 3,060,320 square feet has
delivered. Of the 3,060,320 square
feet, 955,845 square feet, comprised
of eighteen (18) buildings, has been
delivered speculatively.
Asking Rents
Asking rents continue to rise. Lack
of competitive product, continued
positive absorption, and a dearth of
speculative construction has resulted
in a very favorable environment for
| Fall 2014
rent growth. While transaction activity has generally been sluggish over
the last five years, it has outpaced
new available supply (both new and
existing buildings), enabling landlords to hold or increase their rents.
Landlords with quality assets and/
or property in desirable locations are
in a position to raise rents and have
largely done so. As new construction becomes more prevalent in the
years ahead, asking rents should rise
further.
The current overall asking rent
marketwise is $5.19/square foot. In
the 4Q of 2008, it was $4.26/square
This is a consequence
of ver y limited quality
available inventor y
in many submarkets,
a trend that will
continue for the
foreseeable future
and that has the
potential to result
in new construction
for many occupiers
whose businesses
mandate an expansion
or an upgrade of their
space.
foot. Some of the increase in asking
rents over the last five years can be
attributed to the absorption of lower
quality space with lower asking rents.
However, new construction rents are
higher now than five years ago, as are
rents for modern warehouse space.
This trend will continue unless speculative construction of any significance
returns to the market, which will
create more options for tenants and
a more competitive environment for
landlords.
Summary
In summary, the contradictory
nature of the Pittsburgh industrial
market has never been more apparent, particularly as it pertains
to vacancies experiencing historical
lows while new speculative construction is almost non-existent.
While this conservative nature of
the local industrial market served
it well during recessionary climate,
one could argue it is holding it
back currently. Despite challenges,
market fundamentals are sound and
trending upward. Any positive news
regarding the ethane cracker in Monaca will create a jolt of activity in
the marketplace. While short term
challenges and questions remain,
the overall long term prognosis for
the Pittsburgh industrial market is
strong.
Richard Gasperini
Vice President
[email protected]
Rich Gasperini
Rob Blackmore
First Vice President
[email protected]
DP
Rob Blackmore
CBRE
600 Grant St., 48th Floor
Pittsburgh PA 15219
412/471-9500
www.cbre.com
Valuation and consulting expertise to point your decisions in the right direction.
Providing commercial real estate appraisals, market and feasibility studies, impact studies, litigation support and consulting throughout Western Pennsylvania and West Virginia. Over 150 years of valuation and consulting experience in the Tri‐State region. In addition, with 65 offices across the United States, we provide a national platform to solve your valuation challenges.
Paul D. Griffith, MAI, CRE, FRICS
Senior Managing Director
Integra Realty Resources ‐ Pittsburgh
2591 Wexford‐Bayne Road, Suite 102 | Sewickley, PA 15143 | T: 724.742.3324 | [email protected] |www.irr.com/pittsburgh
51
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Our experienced lenders are committed
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412-942-0200
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AIA Design Pittsburgh 2013 People’s Choice Awards
Photo by Massery Photography
Delivering quality construction since 1991 in the
institutional, industrial and commercial market.
| Fall 2014
Retail Market Update
P
ittsburgh’s MSA
retail market
continues to
be a hot bed
of activity in
terms of demand. Unfortunately, simple economics of supply and demand are
causing frustrations for retailers
wanting to enter the market. Simply
stated, Pittsburgh has little inventory in terms of available storefronts,
pad ready outparcels and/or larger
tracts of land for new development.
National/regional retailers and restaurants continue to be frustrated
with the barrier of supply to meet
the demand for new entry expansion
and fill in markets. Vacancies that
were left by the 2008-2010 recession
have mostly been absorbed. Limited
new construction has exasperated
those seeking sites. Net absorption
was positive (505,000 square feet)
in the first and second quarters of
The Pittsburgh MSA is
enjoying a relatively
low unemployment
rate as of June 2014.
Seasonally adjusted rates
show the MSA at 5.5%
unemployment compared
to the same time period
last year when Pittsburgh
MSA stood at 7.2%.
Pittsburgh boasts a lower
rate compared to both
the State of Pennsylvania
(5.6%) and the United
States (6.1%).
2014. As a result, decreasing vacancies (less than 4% region wide) and
positive net absorption have resulted
in stable and moderate rental rate
growth versus other national markets
which are trending down.
The Pittsburgh MSA is enjoying a relatively low unemployment rate as of
June 2014. Seasonally adjusted rates
show the MSA at 5.5% unemployment compared to the same time period last year when Pittsburgh MSA
stood at 7.2%. Pittsburgh boasts
a lower rate compared to both the
State of Pennsylvania (5.6%) and the
United States (6.1%). Local retailers, outdoor recreational businesses
as well as restaurants who are hiring
for the summer months helped to
boost employment.
Pittsburgh is fortunate to have eight
Fortune 500 companies headquartered here. US Steel, PNC Financial,
53
Penny, Sienna Mercato and Butcher &
The Rye. The Pittsburgh dining scene
is very progressive
and the very walkable CBD is directly
benefiting.
PPG Industries, HJ Heinz, Wesco International, Mylan, Dick’s Sporting Goods
and CONSOL Energy, all call Pittsburgh
home. With their solid reputations and
significant employment around the
area, they help to solidify Pittsburgh
as a major player in the retail market. Pittsburgh also hosts a premier
medical community with UPMC and
Allegheny Health System both playing
the role as major employers as well
as nationally acclaimed destinations
for quality patient care. A plethora
of nationally ranked higher education
institutions including the University of
Pittsburgh, Carnegie Mellon University,
Robert Morris University, Duquesne
University, Chatham University, Point
Park University provide a natural
employment base for both emerging and established companies.
As a result, such notable new
companies expanding their presence include Google, Disney, and
Wizard Software. The term “Eds
and Meds” is often used when
describing Pittsburgh’s “new” economic foundation based on these
institutes. Stable companies and
organizations equal solid growth
and employment – all in turn are
key factors for retailers looking to
move into or grow in a particular
market.
Bon Appetit Magazine recently
named Pittsburgh the “next big
food town” and stated that you
“need to eat here now”. Over
145,000 people make the daily
commute to the CBD creating a
very enticing day time population.
| Fall 2014
Spurred on by new urban residential housing developments (over 500
units are under construction - 2,000
planned), several high rise office buildings (PNC Tower and The Gardens at
Market Square) and a complement of
new hotel construction (Kimpton’s Hotel Monaco, Hilton Garden Inn and the
Embassy Suites Hotel), new restaurant
activity is ever present. Pittsburgh’s
Market Square successful redevelopment, the Cultural District’s residential sprawl and Point Park University’s
commitment to the arts have all been
significant contributors in transforming the CBD into an after 5:00 PM
destination for Pittsburghers. New
eateries include Eddie Merlot’s, Grit &
Grace, Proper Brick Oven & Tavern, Ten
Emerging and
expanding restaurant concepts active
within Pittsburgh’s
suburban market
include: Panda
Express, Tom&Chee,
Jason’s Deli, Burgatory, Piada Italian
Street Food, Dunkin
Donuts, Starbucks,
Bonefish Grill, BJ’s
Brewhouse, Firebirds, Maggiano’s Little
Italy, McDonald’s, Dick’s Last Resort,
First Watch, DiBellas, Chipotle, Walnut
Grill, Five Guys Burgers & Fries, and
Buffalo Wild Wings.
New construction is limited primarily to small strip centers located in
strong regional trade markets and
densely populated commercial corridors. However, McCandless Crossing’s Phase 4 (211,916 square feet)
which is nearing completion includes
Dick’s Sporting Goods, HomeGoods,
Trader Joe’s and Cinemark Theatres
as the primary retail anchors. When
completed in summer 2015, McCandless Crossing will be a fine example
of a master plan development that
includes townhouse residential living,
fine dining, quick casual and specialty
retail. Looking forward, plans for new
development and redevelopment in
excess of 700,000 square feet include:
The Shoppes at Northway, Cranberry
Springs, Village of Cranberry Woods,
The Old Mill, Eastside II and Southpointe Town Center.
Active retailers that are seeking
new store expansion throughout
Pittsburgh’s MSA include: TJ Maxx,
Marshalls, Ross Dress for Less, HomeGoods, Hobby Lobby, Crunch Fitness,
LA Fitness, H&M, Forever 21, Rue 21,
ULTA Beauty, Speedy Furniture, Ethan
Allen, Field & Stream, West Elm,
Anthropologie, Nordstrom Rack, The
Container Store and Saks Off Fifth.
Competition is continuing in the
Grocery segment with Trader Joe’s,
Whole Foods, Fresh Market and Aldi’s
continuing to advance new sites. A
new international discount supermarket entry rumored to be Lidl, may unveil itself in 2014/2015. Regionally
dominant Giant Eagle has opened its
first Market District Express (18,000
square feet) that features a café,
fresh chef made gourmet prepared
foods, full service Starbucks Coffee,
Craft/Domestic & Imported Beers,
Wine by the Glass, Pharmacy Drive
Thru and convenience Get Go fuel
dispense. Retailers moving into large
blocks of space include: Target moving into 92,000 square feet at South
Hills Village Mall; Dick’s Sporting
Goods moving into 50,000 square
feet at McCandless Crossing and
Field & Stream ready to open in September at The Old Mill.
Nationally, Pittsburgh is proud to
be ranked amongst the top places
to live, work and visit in the United
States. Major travel and financial organizations have announced
Pittsburgh as one of the most viable
economies and most livable cities. Our professional and collegiate
sports teams; top-tier universities
and hospitals, recreational parks
and diverse outdoor activities; cultural museums, arts and live theatre
venues; and corporate employers
and sponsors of many charities truly
make Pittsburgh a special place in
which to reside. Retail finds markets
of growth and prosperity. Today,
our challenge regionally, is to meet
the demand in our suburban growth
markets and urban resurgence that is
Pittsburgh.
Kevin D. Langholz, Principal
Langholz Wilson Ellis
606 Liberty Avenue
Pittsburgh PA 15222
412/261-2200
www.lwere.com
[email protected] DP
Kevin Langholz
JOIN CREW PITTSBURGH IN 2014
CREW Network is the industry’s premier business networking
organization dedicated to influencing the success of the commercial real
estate industry by advancing the achievements of women. Members of
our organization (women and men) represent nearly every discipline in
commercial real estate. As a member, you will have access to approx.
9,000 commercial real estate professionals throughout North America,
members-only free programming, and discounts to all other programs
and events. Contact Membership Director, Meagan Moore, at 412-4713311 x248 or [email protected] to discuss joining today!
Visit www.crewpittsburgh.org for
details and more information!
2014 Sponsorship
Opportunities Available
Upcoming 2014 Programs and Events
Each sponsorship level provides you with
the opportunity to manage your financial
support while ensuring that your company
is recognized as a leader in advancing the
achievements of women in commercial real
estate. For more information, contact Mimi
Fersch, Sponsorship Director, at 412-303-2500 or
[email protected].
CREW Property Tour
Sept 18
October 14 Lunch & Learn (Members-Only) at RBC Wealth
Management
October 23 CREW Annual Wine Event at the Rivers Casino
October 28 Lunch Program - Finance at Engineers' Society of
Western PA
(open to members and nonmembers unless otherwise indicated)
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a full-service commercial real estate company
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Tel. 412.381.7433
| Fall 2014
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Capital Markets Update
coRpoRate banking · business banking · tReasuRy management · commeRciaL ReaL estate · pRivate banking
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Equal Housing Lender. Member FDIC. Copyright © 2012, Dollar Bank, Federal Savings Bank.
here is a ‘back
to the future”
feel about
commercial real
BUS037_12.indd 1
estate finance
in 2014 that
harkens back to the frothy conditions
of 2006-2007. Given what followed,
that might be cause for concern but
there are several key factors that
seem to be making this market quite
a bit safer, although not all the participants are as sanguine as others.
One thing that everyone in finance
seems to be in agreement about is
how far the lending environment has
changed in just a few years. The new
normal has accommodating, even
aggressive, lenders. More capital is
available than there are places to
put it to use. Interest rates continue
to drive borrowing. Asset prices are
at levels that are very similar to the
heady 2007 days. There are a couple
of key differences, however, that
make the capital markets slightly less
dangerous than they were at that
time.
Primary among those factors is the
underwriting approaches of the
various lenders. As Wall Street’s appetite for real estate debt – not just
residential mortgages – grew to epic
proportions in 2007, sellers of debt
had many incentives to be creative in
justifying loans. Inflated appraisals,
limited documentation, overly optimistic estimates of rent growth and
appreciation assumptions all masked
the potential weaknesses of the
underlying asset. In the residential
mortgage market, this hubris melted
down the system; but even in the
slightly saner commercial real estate
sector, a significant share of projects went under water when values
dropped. There appear to be lessons
taken from that experience.
“I think you learn lessons from a jolt
like that,” says Wesbanco president
Michael Mooney. “You become a
better investigator, ask better questions. I think a lot of assumptions
were made that so-and-so person or
company could weather any storm
and in the late-2000s we found out
that wasn’t the case.”
“There is much more emphasis on underwriting in general and underwriting is much more conservative [than
in 2007],” notes Dan Puntil, senior
vice president for Grandbridge Real
Estate Capital. “At that time it was
okay to trend or estimate rents; now
it’s present rents. You’re still seeing
lenders at 75 percent loan-to-value
or less.”
Tyler Noland, director of underwriting for PenTrust Real Estate Advisory
Services, agrees that underwriting
has remained focused on what is
known rather than what might be.
“We’re using conservative projections
on appreciation,” he says. “There is
more focus on the asset rather than
on recourse. Underwriting the asset
is the right way to go.”
The performance and value of the
asset is another difference from
2006-2007. Asset prices were driven
higher at the end of that cycle by
factors other than performance and
BUS037_12
when the economy declined, basics
like occupancy and rents declined
with them. Values followed shortly
thereafter.
2/14/12 11:08 AM
“We’re seeing record pricing across
all product types and record cap rates
that are as low as 2006 or 2007,”
observes Kyle Prawdzik, director at
HFF Inc. “But we’re seeing occupancy
rates and rental rates that are validating those prices. That is happening in
the gateway markets but it is translating to [prices] in Pittsburgh. There
are record occupancy and rent levels
here too.”
While pricing is at all-time highs, that
doesn’t mean that the commercial
real estate bubble is overinflated.
In contrast to 2007, the value of
property is recovering from a steep
decline that only reversed in 20102011. Moreover, the lust for commercial real estate in mid-decade drove
development, creating overbuilt
conditions in many large markets.
In 2014, the opposite is true. New
construction disappeared in most
commercial categories following the
financial crisis and under-building
of new space contributed as much
to tight supply as growing demand
did. Even today, there are insufficient
new construction deals to absorb
the capital that wants to be placed.
Those conditions mean that there is
pent up demand that could fill new
development but it also means that
competition for deals is fierce; and
that carries its own kind of danger.
“The market is very competitive so
far as rates and number of lenders in
57
the market,” notes Puntil. “What
we hear right now is there’s a lot of
money and not enough borrowers.”
“We always keep an eye out for
certain industries or concentrations
in certain areas. In our region, we
see that with hotels because of the
Marcellus Shale exploration,” says
Mooney. “There are so many industries related to the Marcellus Shale
that there are opportunities. Speaking for our bank, we definitely have
capital to put to work.”
PLEASE CONTACT
OR VISIT
412-208-1400
www.cranberrybusinesspark.com
www.property.jll.com/PIBP
Jason Stewart, Jones Lang LaSalle
[email protected]
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| Fall 2014
Banks aren’t alone in seeking
places to put capital but they do
face some challenges that are
residual from the mortgage crisis.
In reaction to the subprime lending problems, Congress passed the
Dodd-Frank legislation. Dodd-Frank
is sweeping in nature, setting up
the Consumer Finance Protection
Bureau, paring back the fees that
banks can charge and establishing
regulations that limit bank lending.
It’s ironic that the major regulations just kicked in this year, now
that banks have healed balance
sheets and buyers have returned
to the market. With fees cut and
fewer opportunities to do residential mortgage lending, banks are
turning to commercial real estate
to make up ground. Borrowers are
finding that their deals don’t have
to fit into a formula, that they can
sell a project with a good story
again.
“Commercial lending still has to
have T’s crossed and I’s dotted but
we have the opportunity to think
about the customer and find out
what they need,” Mooney says.
“There are components to a deal
beyond the numbers. What is the
character of the principals? Is the
product appropriate for the climate? Is there a game plan? It’s
music to a banker’s ears when a
customer walks in with a binder
and says this is the business plan.”
“We really hang our hat on the
developer and the market area,”
notes Steve Drahnak, executive vice
president of real estate lending at
S & T Bank. “No banker will tell
you that spec is as attractive as if a
client comes to us with a fully-lease
building but it’s not as though spec
can’t be entertained.”
Compounding investor interest in
real estate in general is the heightened interest in Pittsburgh because
of the natural gas industry and the
very favorable multi-family market.
JACKSON’S POINTE COMMERCE PARK
Butler County, PA
“The top 50 buyers for apartments
nationally aren’t investing in Pittsburgh but they want to. I’ve gotten
a call from virtually all of them but
there’s nothing for sale,” remarks
Prawdzik. “The other key thing
happening now is a lot of calls
from people in Denver and Houston
who are in oil and gas. Investors
there are being advised to look for
opportunities in the Bakken and
Marcellus.”
Flex Space Buildings 25,000-78,000 square feet
Drahnak believes that investors with
a long horizon find Pittsburgh attractive because it has less volatile
markets, even if the performance
isn’t going to jump out compared
to other cities. “Our market doesn’t
get overbuilt like out west. We’re
sort of slow and steady,” he says.
“That may not be attractive to the
analysts but our market also did not
get hit hard like others during the
downturn.”
Along Route 19, directly off the Evans City exit of I-79
Less than 30 minutes north of the City of Pittsburgh
Less than 10 minutes north of the PA Turnpike access
Elmhurst Group CEO Bill Hunt has
seen investor interest climb from
private equity sources too. “I’m
getting what are almost cold calls
from people I hardly know inquiring
about [our deals],” he says. “Because of the vagaries of the stock
market and the need for yield there
is increased interest. We see private
equity in mezzanine financing with
terms in the low teens.”
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For more information call the Real Estate Group at 412-422-9900
www.buncher.com
LEADING THE
DEVELOPMENT OF THE
REGION
Development is one of the few
options equity investors have for
getting high returns, since cashflowing properties are selling at cap
rates of four or five percent. The
problem for private equity is that
debt is cheaper and therefore more
appealing for developers than at
any time in a generation. Nearly all
sources of debt are lending more
cheaply in 2014 and the rates are
encouraging more deals.
“The conduit markets are getting
more active,” notes PenTrust’s No-
428 Boulevard of the Allies
| Suite 100 | P i t t s b u rg h | PA | 1 5 2 1 9 | 412.560.4449
i n f o @ c a s t l e b ro o k d e v e l o p m e n t . c o m
59
land. “The turnover in our portfolio
is much faster. Normally, we see
turnover every five years but now it
is two or three years.”
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Pittsburgh, PA 15222
412.944.2130
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Geotechnical Engineering
www.kuresources.com
22 South Linden Street | Duquesne, PA 15110 | 412.469.9331
| Fall 2014
One segment of commercial lending that has slowed is the Commercial Mortgage-Backed Securities
(CMBS) market, at least from the
standpoint of growth. The CMBS
issuances reached $85 billion in
2013 – a healthy rebound from the
$30 billion or less that lingered
after the recession – and was forecasted to reach $100-125 billion
in 2014. The deal flow during the
first six months has been lighterthan-expected. According to HFF’s
Prawdzik, the pipeline coming into
the third quarter was very full.
Depending on how well those deals
proceeded, the market could meet
expectations or fall back to the $85
billion level again.
“CMBS has been very good for
borrowers because of the steady
low rate for the 10-year [Treasury
bill]. The problem has been the “B”
piece buyer,” Prawdzik says. CMBS
is securitized by aggregating groups
of mortgages that are sold as bonds
rated by their apparent risk. It’s the
nature and pricing of the B-rated,
higher-risk mortgages that is the
heart of the CMBS issuance. “There
were six major players in 2013 but
only three have been “B” piece
buyers this year.”
The muted appetite for higherrisk is consistent with evolution of
the business cycle, especially with
so many other sources of capital
competing for deals. At the height
of the CMBS boom, just before
the recession, nearly $300 billion
in bonds were issued in 2007, but
borrowers can find capital that is
anxious to find them at lower costs.
“First and foremost right now,
spreads continue to be compressed
on development deals in a way that
I think no one anticipated,” says
Noland. “I think we might have
seen this coming in January but
definitely not two or three years
ago.”
Grandbridge’s Dan Puntil cited
some examples of how tight
spreads have become on recent
proposals he reviewed. “On a low
leverage multi-family deal – 55
percent loan-to-value – for $20
million, the spread was 120 [basis
points] over the ten-year T-Bill,” he
recalls. “Another deal with higher
loan-to-value had a 150 basis point
spread over the ten-year. That’s four
percent or so.”
At NAIOP Pittsburgh’s mid-year financial markets update on June 19,
presenter Rod Reppe from Goldman
Sachs told of pursuing opportunities with 75 percent loan-to-value
first mortgage and ten percent
mezzanine financing at a combined
spread of 270 basis points. That’s
an 85 percent loan-to-value deal at
just above five percent.
The prospect of rising interest rates
remains the bogeyman for lenders.
An increase in lending rates would
be welcome for banks and lenders
trying to earn income from their
loans. Higher rates would also bring
some normalcy to capital markets
by aligning investors more closely
with their risk tolerances. That
would remove some of the capacity from the marketplace but the
bigger concern is the effect higher
interest rates would have on low
cap rate deals. It would inevitably
reduce values on properties that
were overvalued because of interest
rates. Most observers don’t foresee
a significant increase in rates coming without a significant event or
change in the economic climate.
PROV EN R ESULTS
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DEBT PL ACEMENT | INVESTMENT SALES | EQUIT Y PL ACEMENT
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“There has to be some sort of shift
upward but I don’t know if the Fed
will do anything,” says Noland.
“The availability of capital could
change rates. There’s just so much
capital chasing deals that if the
supply dries up, rates could go up.”
Noland isn’t losing sleep over the
prospect at the moment. “I’m now
sneaking up on ten years in the
business and have been hearing
about [rates going up] for my whole
career,” he laughs. “It’s inevitable
but I’ve put it out of my mind at
least through 2015.” DP
HFF PIT TSBU RGH
One Ox ford Centre
3 01 Grant S treet , Suite 6 0 0
Pit tsburgh, PA 15 219
(412) 2 81- 8 714
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23
offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real
estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including
debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more
information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.
Ranking by NREI, July/August 2014.
61
Legal/Legislative Outlook
Construction
Lending & Title
Policies: Watch
Your Step
By Lawrence J. Maiello
& Kathleen C. McConnell
N
owadays,
construction
loan closing
complications and
delays arise
when visible work commences or
materials are delivered at the site
before the construction loan mortgage is recorded. Following the
market downturn of 2008, the value
of commercial real estate spiraled
downward and numerous developers
and contractors went under. Mechanics liens often result when a development project fails, the lien triggers enormous additional losses for
lenders and title insurance companies. Since the real estate collapse,
lenders and title companies have
continued to tighten title requirements to avoid lien claim losses. By
the first half of 2014, lenders and
title insurance companies, in order
to guard against losses from mechanics lien claims, responded with
stringent underwriting and closing
requirements for construction loans.
Developers can avoid frustrating
closing delays and costs by anticipating these requirements prior to commencing any work on the project.
It is fairly common for a developer
to acquire land for cash and to
want to get started on development
immediately, prior to closing on a
construction loan. In some instances
grading or clearing at the site must
occur before the permits, surveys or
designs required for the construction
| Fall 2014
loan can be prepared. Where this is
the case, the developer should be
prepared for lien priority concerns
and requirements that may be raised
by both the lender and by the title
insurance company providing the
required title policy. Cooperation
by the contractor, and availability
for signatures, will be a necessity.
The contractor’s financial health
can also become an issue for the
lender. Closing will proceed more
smoothly if developers have a plan
in place with the lender and its title
insurance underwriter prior to loan
closing.
The date of visible commencement
of work or delivery of materials to
the site is the moment that establishes the priority of a mechanics lien in Pennsylvania (and most
other states). Mortgage lenders
want to ensure that their lien is in
first position, ahead of any claims
by contractors. That way a lender
can wipe out the inferior mechanics
lien in a foreclosure if need be. In
Pennsylvania, the superior priority of
a construction loan mortgage over
a mechanics lien can be established
two ways: (a) where the mortgage is
recorded prior to the date of commencement of work on the project;
or (b) where the construction loan
and mortgage satisfy specific detailed requirements for “super priority” established by the 2007 and
2014 amendments to the Pennsylvania Mechanics Lien Law. Some lenders in Pennsylvania, to mitigate their
risk and avoid the complexities of
establishing “super priority” under
the Mechanics Lien Law, will simply
not allow work to commence prior
to recording of the mortgage.
At the construction loan closing,
in order to establish that no work
has commenced prior to recording
of the construction loan mortgage,
the title insurance company and/
or lender generally require: (1) a
photograph with affidavit, taken
the day of (or day after) closing,
that shows the site untouched with
no work commenced (and often an
appraiser site visit); (2) an affidavit
from the owner, often accompanied
by a personal undertaking or indemnification agreement, swearing that
no work has commenced at the site;
and (3) an affidavit from the contractor taken no sooner than the day
after mortgage recording, swearing
as to the date of commencement of
work (and that date must be a day
or more after the mortgage recording date). Developers should be
prepared to provide these materials
in conjunction with any construction
loan closing.
Where work has commenced prior
to closing, lender and/or the title
company will likely require extensive
additional materials. At a minimum,
the title insurance company will
review the loan documentation and
possibly the construction contract
to establish that the mortgage will
qualify for “super priority” under
the amended lien law. In order to
qualify under the amended lien law,
the mortgage must be an open-end
construction mortgage, and 60% or
more of the loan proceeds must be
applied to the costs of construction
at the site. Lender and title company requirements may also include:
(1) additional underwriting review
and risk analysis with fees; (2) financial statements from owner and contractor; (3) construction contract and
budget; (4) additional fee to title
insurance company for risk analysis
costs; (5) personal undertaking from
owner; (6) personal undertaking
from general contractor; (7) itemized
list of subcontractors and suppliers;
(8) partial lien affidavits and waivers
from contractor and all subcontractors; and (9) title company monitoring of draws, with fees and interim
affidavits required.
The following are some additional
means for easing potential closing
costs and complications, where work
has commenced prior to mortgage
recording: Ensure that contractor
has a strong financial statement and
good track record, to avoid underwriter rejection where an indemnity
may be required. Bifurcate construction contracts, such that all or
most of the pre-closing construction
activity is performed under a separate contract, fully or predominately
paid by or at closing. Be prepared
to obtain a final lien waiver from the
contractor in connection with the
site work contract prior to the loan
closing. Include a payment and performance bond in the construction
contract, reducing lender’s exposure.
Where work has been completed
under a contract and all labor and
suppliers have been paid in full, and/
or where work has been completed
more than six months prior to the
construction loan closing, a mortgage lien priority issue should not
arise, technically. The contractors’
right to file a lien expires six months
following completion of the work
under the Pennsylvania Mechanics
Lien Law, and is satisfied by payment
in full for the work and materials.
Unfortunately, if the site looks like
it is under construction, or has been
newly constructed, the lender may
still require affidavits from the contractor and all subcontractors and
suppliers evidencing payment in full,
and a personal undertaking from the
owner.
Construction mortgage lien priority
concerns and closing requirements
have always been an element of the
loan closing. From the developer’s
perspective it may seem unreasonable that the lender or its title
company will not simply rely on
the statement of the owner and/or
contractor. A lender’s risks, in addition to the actual cost of satisfying
a mechanics lien, include additional
staff and legal costs, closing and
litigation delays, loss of a market
sale or take-out lender for the loan,
bankruptcy delays, adverse publicity,
and foreclosure and marketability
costs and delays. Because mechanics
liens can be filed by subcontractors,
suppliers, architects, and engineers,
as well as by the general contractor,
the lender’s process for analyzing
and mitigating its risks where work
has already commenced can become
complicated.
Developers should
be prepared to
provide these
materials in
conjunction with
any constr uction
loan closing.
In Pennsylvania, in addition to the
impact from the market downturn,
the construction loan closing process was further jolted by the 2007
amendment to the Mechanics Lien
Law, and by a 2012 decision of the
Superior Court. The 2007 amendment to the statute rendered a
contractor’s waiver and release of
the right to file a lien unenforceable
with respect to non-residential properties, except to the extent payment
has actually been received for labor
and materials. This modification to
the law eliminated the customary
recording of a “no lien agreement”
release and waiver by the contractor,
which had previously operated as an
assurance for lenders that their construction mortgage lien would not
be impaired by a mechanics lien.
The gist of the Superior Court’s
decision in the 2012 case Commerce
Bank/Harrisburg, NA v. Kessler was
that, in order for the construction
mortgage to qualify for the “super
priority” over mechanics liens that
had been established in the 2007
amendment to the law, 100% of
construction loan funds must have
been applied to hard costs at the
site. Since 100% of construction
loan funds are rarely, if ever, applied to hard costs, obtaining a title
policy for a construction loan where
work commenced prior to mortgage
recording became a monumental and
costly undertaking frustrating all
involved. This year, the legislature
clarified the lien law to establish
construction mortgage “super priority” where 60% of the loan funds
are applied to a broader definition
of construction costs.
This year’s amendment to the
Mechanics Lien Law should reduce
some of the complications and costs
involved in closing a construction
loan after work has commenced,
although it may take some time for
lenders to review and revise their
processes and requirements. In the
mean time, developers who need
to start work before closing on the
construction loan can alleviate some
of the burden by coordinating in
advance of the loan closing with the
lender, the contractor, and the title
insurance company.
Lawrence J. Maiello is a Partner
with Maiello Brungo & Maiello, LLP
and leads the firm’s Real Estate Law
Team. He works extensively with
developers of commercial, residential
and mixed-use projects. Kathleen
C. McConnell is an Associate with
Maiello Brungo & Maiello, LLP. Kathleen assists clients with all aspects
of land acquisition, financing, and
leasing. DP
63
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Benchmarks
Pittsburgh Gets
Progressive
I
t seems to be
in the nature of
Pittsburghers to
identify themselves
and their market as
“slow and steady”
or “we don’t get the big booms or
the big busts” or in any other way
than progressive. Progressive happens
on the coasts or in hip cities, not in
Pittsburgh. But in a quiet way over
the past few years, trends that usually
begin in those bellwether cities have
been taking off first here too.
People looking for a progressive
place to live are targeting Pittsburgh
because of the tolerance for lifestyles
outside the mainstream, our food culture and the proliferation of farm-totable restaurants, and
Pittsburgh’s concerns
about the environment.
In the built environment, Pittsburgh has
been at the forefront
of sustainability for
two decades, with
the Green Building
Alliance predating the
U. S. Green Building
Council. The city was
one of the first three
cities to embrace the
2030 Challenge, an
aggressive campaign
to reduce environmental impact in
downtown buildings by 50 percent.
And the master planning that we
residents tend to take for granted is
proving to be a model for the successful redevelopment of blighted neighborhoods and transformation of an
industrial region.
Pittsburgh’s Mayor Bill Peduto has
embraced the challenge of reinventing
city government, aggressively introducing technology and a culture of
responsiveness. In his search for best
practices and best people, Peduto has
also reached out to nationally-known
professionals to help lead the change.
Pittsburgh may never be mentioned in
the same breath as New York or Seattle, but in new Director of City Planning Ray Gastil, it has someone who
has worked in both of those cities.
Gastil says he was attracted to
Pittsburgh because of the history of
renaissance and revitalization and its
past emphasis on regional planning.
“There are high aspirations for high
design and planning,” he says. “The
city has met some of them already
with the projects that have already
been done. From Gateway Center to
all the great public spaces, it’s not as
though Pittsburgh hasn’t been progressive. There have been forwardthinking projects. We just want to
increase the ratio.”
ing that he wanted to take advantage
of that opportunity,” recalls Gastil.
“The great thing about the Strip is
that it’s actually the market doing
projects, which says that people want
it. Our job is to make it happen.”
Peduto also talked with Gastil about
the kind of sustainable practices that
were done in Seattle, expecting to
create the same practices in Pittsburgh. Gastil talks about Seattle with
admiration but also points out that
there are some differences that made
it easier for Seattle.
“Seattle has the advantage of three
things that many cities don’t have,”
he explains. “Boeing is still there to
anchor manufacturing. There is a
strong university doing research and
there are strong new companies like
Amazon, Microsoft and Starbucks that
have grown dramatically to support
best practices. Pittsburgh hasn’t had
all of those.”
He says the city
helped to push
leadership with all
stakeholders in Seattle but the private
sector was also willing to be led.
High-tech developments like Bakery
Square 2.0 are particularly interesting
to Gastil. He applauded the construction of the new stadiums, noting that
few cities have the kind of proximity
between sports, culture and commerce that Pittsburgh does. As he
begins his tenure, Gastil is excited
about the possibilities in Lawrenceville
and the East End.
“The Strip has great potential. Mayor
Peduto articulated to me in our meet-
“Seattle had an
extremely activist
private sector with a
real passion for best
practices,” Gastil
says. “If there was
a new best practice
for swales, for example, the city would do it and there
were private developers who would
want to be the first to have them.
The development community was very
passionate about a progressive vision.
There were developers that biked to
work! They believed in being part of
the solution.”
Gastil quickly points out that he sees
similar qualities here. “Pittsburgh
has that kind of leadership – there’s
a chief sustainability officer, a chief
65
development officer – and it is always
trying to make things happen. We’re
asking for better urban design, better
architecture, better environmental design; but we’re trying to make things
predictable.
The good news is Pittsburgh isn’t
a blank state. Everywhere you look
somebody is doing something to move
things along.”
His best takeaway from his experience
in Seattle, Gastil believes, will be the
commitment to urban planning. What
he hopes will develop in Pittsburgh is
a deeper level of involvement in planning than has been expected in the
past.
“Seattle has a tradition of planning.
Their transportation system is imbued
with planning,” he says. “People
here believe in that but it’s a matter
of scale. Seattle had a deep bench of
people who lived like that. The development community had some remarkable individuals and companies like
Vulcan that had the capacity to work
at a large scale.
I think the root of it is being prepared.
The reason that a company like Amazon could take off when they grew
was that the planning had already
been done.”
Gastil points out that while some best
practices can be put into code, some
progressive practices will simply come
from how the developers interact with
the community. He sees those organic
kinds of opportunities at the heart of
Pittsburgh as he begins his work in
the city.
“I think Downtown is still unfinished.
This is the moment for that with all
of the big projects being developed,”
says Gastil. “[At the arena site] I have
high hopes that something important
will develop where there has been
an empty spot for too long. Uptown
is also critical to Pittsburgh’s future.
We’re looking at an eco-district
there.”
Ray Gastil reflects on his work in Seattle and sees the chance for Pittsburgh
to push for more progress.
“I had the opportunity to work with
amazing architects and developers.
The best work comes when everyone is at the same table shooting for
something higher than the lowest
standard.”
This fall, NAIOP Pittsburgh will present
a program on urban planning with Ray
Gastil and Seattle’s Vulcan Development, the NAIOP Corporate Developer
of the Year in 2013.
From Printing Press to Real Estate Revolution
An historic change is going on in commercial real estate right now that can
trace its roots directly to the invention
of the printing press in 1450. So says
Gunnar Branson, CEO of the National
Association of Real Estate Investment
Managers. Branson asserts that commercial real estate has been selling the
wrong thing, square footage, to people
for centuries but that the advances of
information sharing and technology
have created a different real estate
paradigm.
Branson compares the growth in
information sharing to Moore’s Law, in
which the Intel founder observed that
the number of transistors that fit on an
integrated circuit doubled every two
years and would continue to do so into
the foreseeable future. For information
technology, this truth allows our smart
phones to hold as much information
as the computers that managed the
Apollo space program. And that technology advancement is what is changing how space is used and needed
going forward.
By observing the lifestyle of adults in
their 20s today, you can see that renters need one-third less space than the
previous generation did because they
| Fall 2014
have less stuff. No book collections. No
album (or CD) collections. No stereos or
bookcases.
How that is playing out in Chicago,
Branson’s home base, is that the average new apartment has shrunk from
717 square feet to 578 square feet.
That smaller apartment is much nicer
and rents for more money. Occupants
make use of expanded lobbies for
hanging out, watching videos or movies on notepad PC’s and interacting
with other residents.
That same dynamic is at work in offices. Law firms, for example, have
little need for libraries or central filing
systems and the support staff that once
helped the attorneys has therefore
declined. The use of mobile devices and
networking allows attorneys to work as
many hours but from home or remote
locations. Because of these factors, the
average law office lease is now onethird smaller than before.
Branson describes the pace of change
by applying what he calls Moore’s
Law of Real Estate, but he traces the
paradigm shift in demand back to the
Gutenberg Bible. Printing changed
society and created real estate in the
first place, Branson asserts. Words in a
book made more people want to read.
Books necessitated the manufacturing
of paper and binding. More reading
demanded schools and universities.
People began to cluster in communities
– which then needed shops and merchants – instead of living on the king’s
land. Towns were born and hence, real
estate for sale.
Some 500 years later, someone decided
to use a secure military information
network called ARPAnet to move other
information and the Internet was born.
A second global awakening to information was also born. In 2014, more
people read than ever before in human
history. More people have access to
every book ever written. More people
want to connect with each other. More
people want to live in cities.
“Digital devices aren’t making us less
social; they are making us more social,
more collaborative,” says Branson.
“More people need real estate to do
what it’s supposed to do.”
NAIOP Pittsburgh and CoreNet are
hosting a presentation by Gunnar Branson on the changing needs of commercial real estate this fall. DP
Voices
If you were doing a SWOT analysis of the Pittsburgh regional
economy, what looms as the most serious threat to the growth
we have been experiencing?
Mary Guinee
Vice President
Civil & Environmental Consultants Inc.
I shall
defer
to Will
Rogers,
who once
said “All
I know is
just what I
read in the
papers,
and that’s
an alibi
for my
ignorance.” What I often interpret
from the media is that there seems
to be some difficulty with attracting and retaining manufacturers in
our region, which puts downward
pressure on our economy. This is
difficult to accept given the tremendous impact the energy sector
has had here. One would expect
that a growing manufacturing base
would follow as a natural progression from the Marcellus “gold rush,”
but that hasn’t happened as significantly as was first anticipated. We
need to change our business and
regulatory climate, and entities like
the Pittsburgh Regional Alliance,
Allegheny Conference, local and
regional industrial development corporations, and the larger real estate
community are working diligently
to supply new ideas, offer/find
strong incentives, and help prepare
qualified sites in the right locations. Without timely efforts like theirs to
drive interest in our region, we may
miss out on the full potential created, in large part, by the energy
sector. Christina M. Bucciero,
Vice President/Real Estate
Development Guardian
Construction Management
Services Inc.
No one can
doubt
that
Pittsburgh’s
renaissance
has
been
truly remarkable over the
past 5 years.
Its ability to
attract young
and old from
across
the
country continues
to
enhance the local economy. The local
economy continues to grow in the
meds and eds, tech, and oil and
gas segments. This is one of our
main strengths and it continues to get
stronger every quarter.
As the baby boomers continue to leave
the work force our local economy is
going to have a gap to fill. The blue
collar jobs and skill sets will need to be
back filled. I see this as a weakness in
our local market. Generation X & Y’s
parent’s insisted their children went to
college and may find that their college
educations are not being used to fill
this void and therefore become underutilized.
Kris Volpatti
First Vice President/Team Leader
Commercial Real Estate
First Niagara Bank N.A.
As a veteran
commuter from
the ‘burbs to
the downtown Golden
Triangle for
over 30 years,
I am thrilled to
witness
Pittsburgh’s
exploding
resurgence and
see a residential downtown
living community become a reality. At
the same time, nothing much on the
transportation front has changed since
former County Executive Jim Roddey
aptly noted that “All roads lead to
Kennywood” upon first arriving here
decades ago (the abundant yellow
Kennywood signs however have largely
disappeared). We continue to apply
Band-Aids to our roads, tunnels and
bridges, and hope that Uber, Lyft and
the proposed bike routes can substitute
for a critically needed beltway system.
While I do understand the geography/
terrain limitations that confront us, it
is critical that we advance better commuter links to/from Oakland and the
Airport corridor (for starters) if the
city is to remain a viable regional hub.
Inadequate transit services and the lack
of a sustainable transportation network
will inevitably impede future growth
prospects for Pittsburgh. I strongly
encourage supporting investment in
public transportation and infrastructure, whether you use it or not. We all
have countless favorite “gridlock” war
stories that can be debated in our local
bars on any given day……..wouldn’t
it be great to talk about just sports
instead.
69
Cecelia Cagni
Vice President,
Operations, Pittsburgh Regional
Alliance
“People are
one of the
region’s
greatest
strengths.
Site location consultants and
employers
consistently
give high
marks to
our workforce for
its education, skill and work ethic.
Having a plentiful supply of the
right people – ready and able to do
their best work – is an irreplaceable
advantage for businesses. Yet, we
must be vigilant about ensuring that
the talent pipeline remains full. The
region has unique demographics;
it’s heavy on Baby Boomers in the
workforce right now – a result of
losing a generation of people during
the economic collapse here in the
1980s.
Since this group is anticipating
retirement in the next 15 to 20
years, we must address closing that
gap – which totals about 140,000
people – now. While the region’s
population numbers are inching up,
and we’re getting more diverse,
these trends aren’t happening fast
enough to keep up with an increasing demand for skilled workers. The
Allegheny Conference and its affiliates, among them the Pittsburgh
Regional Alliance, through various initiatives – including the
ImaginePittsburgh.com regional jobs
portal – are getting out in front of
the workforce issue to avert a crisis.
The goal is to educate, train, attract
and retain enough workers to more
than sustain the regional economy
for decades to come.
Lynn DeLorenzo
Partner, TARQUINCoRE, LLC
Past President, NAIOP Pittsburgh
Dianne Weaver
Business Development
TRG Closing Services
The ability to get
our parking and
transit at
the right
mix. We
are still
a city in
transition
adjusting to the
opportunity to have
a vibrant urban core yet challenged
with transit issues and a looming
parking shortage. First, the parking. Having worked in big cities in
the past and on significant masterplans and projects, I have seen coordinated planning with appropriate
expertise serve a role in the vertical
integration of apartments/student
housing, offices, retail and parking.
While we should applaud the efforts
to populate the city, there is also a
need to create the environment in
which all sectors will thrive. Are we
so focused at the opportunity of the
residential growth in the city that
we may not be fully considering the
impact on parking and the need to
expand and provide new facilities,
where appropriate, to also accommodate the parallel growth of the
office and services market?
The greatest opportunity and
challenge
Pittsburgh
has as it
continues
this remarkable trend
of economic
development is an
increase in
transportation options. The efficient movement
of people will be integral to making
Pittsburgh a global city that exports
ideas. Few other world-class cities
come to mind that lack a regionwide light rail system. The cities that
Pittsburgh is competing with either
have or are developing light rail systems. Charlotte is looking at ways
to expand existing light rail while
also including Bus Rapid Transit.
These cities face challenges both in
development and at the ballot box;
the challenges are not unique. We
need to effectively communicate the
everyday value of transportation to
someone living near the airport, in
Cranberry, or Monroeville because
we will all bear some burden for
raising the revenue necessary to
develop and maintain a region-wide
system. Pittsburgh needs to think
far into the future and look at ways
in which we can expand upon the T
system. DP
As far as transit, both LRT and rubber tire, the ULI study is a major
step in the right direction and hopefully will lead to a stronger transit
system and one that is collaborative
on a regional basis. Expanded use
of all transit forms is key today, and
more than ever, a strong regional
economy is dependent on the ability to move people and commerce.
The role of transit will be vital to
continued growth of not only the
city but the region as a whole.
Strong cities produce strong regions.
Again, getting our parking and
transit at the right mix is critical.
Years from now will we be able to
look back and say, yes, we got that
right?
| Fall 2014
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Development Update
• ALMONO
Second Avenue, Hazlewood section
City of Pittsburgh
Developed by RIDC
Total of 3 million sq. ft. of office/hightech flex buildings and 1,500 dwelling
units of townhouses and apartments.
Construction is underway on the $40
million Phase 1, including grading,
site infrastructure and 1.5 mile road.
Development agreements for the first
vertical construction are expected in
fall 2014 with vertical construction in
2015.
• Bakery Square 2.0
Penn Avenue at Denniston St., East
Liberty section of Pittsburgh
Developed by Walnut Capital Partners
175-unit Bakery Living apartments
nearing completion and 200,000 sq.
ft. office building under construction.
Plans for the second 175-unit Bakery
Living apartments have been accelerated to spring 2015. Construction of
the first of 57 townhouses are under
construction. Two 100,000 sq. ft. office buildings remain to be built.
• Chapman Westport
I-576 at Westport Exit, Findlay Twp.
Developed by Chapman Properties
Construction is completed on first
phase of site work on 300-acre site
and work has started on 20,000 sq.
ft. build-to-suit for Tubular Solutions.
Total of 2.6 million sq. ft. of office/
industrial with some retail service are
planned.
• Cranberry Springs
Route 228 & I-79, Cranberry Twp.
Developed by Spectra Development
Plans call for 1,000,000 sq. ft. mixed
use development; six office buildings
totaling 875,000 sq. ft.; three buildings of retail/restaurant of 30,000 sq.
ft.; 100-room hotel.
180,000 sq. ft. Penguins practice/
UPMC sports medicine facility under
construction. No timetable set for the
first spec office to begin.
| Fall 2014
• Findlay Industrial Park
Potato Garden Run Rd. at I-576 Westport Exit, Findlay Twp.
Developed by Imperial Land Co.
Construction is underway on 422,000
sq. ft. Gordon Food Service distribution center in Phase 2. Additional lots
remains in Phase 2 to accommodate up
to 1,000,000 sq. ft. Construction completed on 330,000 sq. ft. of buildings
for Alro Steel, Okonite and Appliance
Dealers Cooperative in Phase 1. One
additional site remains.
• Innovation Ridge
Warrendale Bayne Road, Marshall Twp.
Developed by RIDC
Construction completed on Phase 1
and Phase 2 off site infrastructure and
Bayer Medical Devices headquarters
office. Construction of 75,000 sq.
ft. spec office building planned for
fall 2014. Pad prep is underway for
two additional offices of 75,000 and
60,000 sq. ft.
• Jackson's Pointe
Route 19, Jackson Twp.
Developed by Buncher Company
Construction completed on four buildings, totaling 315,000 sq. ft. Construction of last building in Phase 1
is scheduled for spring 2015. Phase 2
retail center and hotel is in the entitlement and permitting stage. Construction is expected in 2015.
• McCandless Crossing
McKnight Road at Duncan Avenue,
Town of McCandless
Developed by AdVenture Development
Construction is underway on 250,000
sq. ft. Town Center Phase IV, including
Dick’s Sporting Goods, HomeGoods,
Cinemark Theater and Trader Joe's.
A second hotel is planned as part of
Phase IV later in 2014. Earlier phases
of 1.2 million sq. ft. mixed-use development included Lowe’s Home Center,
Home2Suites hotel, LA Fitness and
miscellaneous neighborhood retail/
services. Office buildings and medical
office building totaling 200,000 sq. ft.
remain.
• North Shore Place
North Shore Drive, Pittsburgh
Developed by Continental Realty
Construction started late 2013 on
North Shore Place I & II. Buildings
include 85,000 sq. ft. of office and
45,000 sq. ft. of retail. Planning is being done for approximately 300-unit
apartment building. No schedule for
construction.
• Old Mill
Route 19 & I-70, South Strabane Twp.
Developed by The Staenberg Group/
Mosites Construction & Development
Construction underway on 67,000 sq.
ft. of in-line retail, 50,000 sq. ft. Field
& Stream store and 6,200 sq. ft. Longhorn Steakhouse. Total retail development of 303,080 sq. ft. is planned.
• Pittsburgh International
Business Park
Cherrington Parkway Extension, Moon
Township
Developed by Continental/Chaska
Construction completed on three
buildings, 163,000 sq. ft. Construction
getting underway on fourth Building
300, a 55,000 sq. ft. spec building.
Total development planned is 320,000
sq. ft. of office buildings.
• RIDC Westmoreland (Sony plant)
Route 119 off New Stanton Exit of PA
Turnpike, Hempfield Twp.
Developed by RIDC
Approximately one million sq. ft.
leased of total 2.1 million sq. ft. available industrial space. Aquion leasehold
improvements completed for 300,000
sq. ft. Tenant improvement for Cenveo
300,000 sq. ft. getting underway.
• Siena at St. Clair
Route 19 near Ft. Couch Road, Upper
St. Clair Twp.
Developed by 1800 Washington Road
Associates
Bids are being taken for construction
of Whole Foods shell and retail. Total
170,000 sq. ft. of retail, office and
parking garage are planned. Plans also
include 33 townhouse/patio homes.
Apartment Complexes—Senior Living Facilities—Condominiums—Hotels
• Southpointe II
Southpointe Boulevard & Town Center
Boulevard, Cecil Township
Developed by Horizon Properties Group
Mixed-use, multi-phase development of
225 acres. Construction has been completed on 350,000 sq. ft. CONSOL headquarters; 180,000 sq. ft. Range Resources
office; 250,000 sq. ft. headquarters for
Mylan Labs; and approximately 530,000
sq. ft. of additional multi-tenant office
buildings. Also complete are Homewood
Suites by Hilton and Holiday Inn Express
hotels and 120,000 sq. ft. Southpointe
Town Center retail shops. Construction is
nearing completion on Wesbanco branch
bank; 208,000 sq. ft. Town Square office building (Noble Energy offices); and
376-unit 1400 Main Street apartments
and 640-car garage (developed by GMH
Capital Partners).
Parcels remain for construction of 120,000
sq. ft. Town Center office building and
150,000 sq. ft. Southland at Southpointe
II office building.
• Three Crossings
AVRR/Railroad Street at 25th, Strip District
section of Pittsburgh
Developed by Oxford Development/Hammel Enterprises
Construction scheduled to begin in September on 300-unit Yards at Three Crossings apartments and 52,500 sq. ft. office
building. The $120 million project includes
up to another 200,000 sq. ft. of urban flex
office buildings and multi-modal garage to
accommodate 575 cars, 100 bikes, Zipcar
and EV charging stations.
• Westport Woods
I-576 at Westport Exit, Findlay Twp.
Developed by Imperial Land Corp.
Bids taken for $4.8 million site work to
begin Phase 1 of 100-acre project programmed for approximately 700,000 sq.
ft. office/industrial
• Zenith Ridge
Southpointe II
Burns & Scalo Real Estate Services
3 buildings, 486,000 total sq. ft.
2 buildings, 336,000 sq. ft. under construction
Zenith Ridge 1 – 186,000 sq. ft. build-tosuit for Ansys Corp.
Zenith Ridge 2 – 150,000 sq. ft. multitenant, 60,000 sq. ft. leased
Zenith Ridge 3 – 150,000 sq. ft. multi-tenant, construction to begin spring 2015 DP
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News from the Counties
Armstrong County
Armstrong County Department
of Economic Development
Northpointe Technology Center
Center II
187 Northpointe Boulevard
Freeport, PA 16229
T: 724-548-1500 F: 724-545-6055 Michael Coonley, Executive Director
[email protected]
www.armstrongidc.org
In April 2014, NanoVision Diagnostics, Inc. leased space in the
Northpointe Technology Center
II facility. Owned and operated by the Armstrong County
Industrial Development Council
(ACIDC), Technology Center II
is a 32,000 square foot multitenant building. NanoVision
Diagnostics is commercializing
a novel technology to detect
cancer. The company’s electro-optical system, 1,000 times
more sensitive than an optical
microscope, assesses molecular-level changes in DNA structure using a standard biopsy
slide. These changes have
been shown to correlate with
cancer in multiple clinical studies. Working in collaboration
75
Armstrong County (continued)
with the University of Pittsburgh,
NanoVision Diagnostics will offer
its proprietary technology as a
diagnostic service.
Dynamic Manufacturing, LLC was
awarded the Pennsylvania Governor’s Award for Safety Excellence
(GASE) in June 2014. Dynamic
was one of ten businesses recognized for its commitment to
safety excellence. As of September 13, 2013, Dynamic had
worked 1,058,773 hours since
their last work-related incident.
Dynamic Manufacturing provides
electronic manufacturing services,
electronics engineering design &
layout services, aftermarket services, electromechanical assembly
and cable assembly. Dynamic
moved to Armstrong County
in 2008 upon constructing a
14,000 square foot building in
Northpointe. In 2012, Dynamic
completed a 10,000 square foot
addition to their manufacturing
and assembly area.
The ACIDC continues to promote
the pad-ready sites located in
Northpointe. These sites were
recently constructed in order for
Armstrong County to compete
for industrial and commercial
projects with strict time require-
ments. An NPDES permit has
been issued and an integrated
storm water management system
is in place. At the beginning
of 2014, the ACIDC obtained a
Keystone Opportunity Expansion
Zone (KOEZ) designation for the
new Northpointe sites and existing sites within the West Hills
Industrial Park. For additional
information about land and buildings in Armstrong County, visit
http://armstrongidc.org
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| Fall 2014
Beaver County
Beaver County Corporation for
Economic Development
250 Insurance Street, Suite 300
Beaver, PA 15009
T: 724-728-8610
F: 724-728-3666
James Palmer, President
[email protected]
www.beavercountyced.org
The Beaver County Corporation
for Economic Development (CED)
sold an approximately six acre
parcel in the Hopewell Business
and Industrial Park to Esmark
Realty, LLC. Esmark intends to
construct a multi-story, 30,000
square foot office building on
the property. W ith this sale, all
improved property at the site
is sold. To date, the Hopewell
project is home to ten projects
employing over 1,500 workers.
CED is currently planning the
development of the remaining 40
undeveloped acres it owns at the
site.
CED signed a lease with Lincoln
Park Performing Arts Center for
over 30,000 square feet of space
in its Monaca Commerce Center building. Lincoln Park will
use the space to construct and
store sets for performances it
undertakes at its state-of-the-art
performance center in Midland.
The lease brings occupancy at
the Monaca Commerce Center to
over 75% of available space and
approximately 60% of the entire
facility.
Finally, CED approved the submission of over $1 million in
Enterprise Zone Tax Credits earlier this year. These submissions
represent projects in three Beaver
County communities, Hopewell,
Beaver, and Beaver Falls. The tax
credits, if approved, will support
over $10 million of real estate
related investment in these three
communities. The Beaver County
Enterprise Zone program provides
development support to 27 Beaver County municipalities.
77
Butler County
Community Development
Corporation of Butler County
112 Woody Drive
Butler, PA 16001
T: 724-283-1961
F: 724-283 3599
Ken Raybuck, Executive Director
[email protected]
www.butlercountycdc.com
Construction has started on Butler
County’s new County Office Building which is adjacent to the existing
Butler County Government Center.
Total project cost for the four-level
building is $12.1 million, including
replacement of AC on the current
building. Three new buildings are in
the planning and/or building process
at the Victory Road Business Park in
Clinton Township. The Community
Development Corporation of Butler
County, (CDC), developed the park,
Fayette County Fay-Penn Economic Development
Council
1040 Eberly Way, Suite 200
Lemont Furnace, PA 15456
T: 724-437-7913
F: 724-437-7315
Bob Shark, Executive Director
[email protected]
Dana Kendrick, Econ. Dev. Dept. Mgr.
[email protected]
www.faypenn.org
Fay-Penn Economic Development
Council successfully attracted several
new businesses into Fayette County
in the first two quarters of 2014.
Additionally, Fay-Penn was able to
assist existing businesses with their
expansion and/or new equipment
capital projects. The organization
supported 47 businesses with financing and business technical assistance. Three businesses were able
to secure $365,000 from Fay-Penn
loan programs, which was leveraged into a total of $2.5 million for
capital projects. Fay-Penn currently
| Fall 2014
a designated Keystone Opportunity
Zone and 60 acres are still available.
New projects include a 103,000
square foot addition to Aldi’s warehouse; a 25,000 square foot new
building for Synergy Health’s medical
sterilization facility – doubling the
size of their current facility, and The
Kerry Company, Inc.’s new manufacturing facility.
and substantial residential development is also occurring to the north
in Jackson Township with 63 homes
in Old Hickory Highlands. The
CDC also has 29 acres available at
the Pullman Center Business Park.
Please contact the CDC at 800-2830021 for information on land, commercial buildings and office space
available for sale or lease in Butler
County.
Freeport Middle School, an 115,000
square foot structure, will be built
adjacent to Freeport High School
in Buffalo Township by the �fall of
2015. Cranberry Township has three
projects in the planning process
including: an 83,000 square foot
retail development anchored by
a grocer; a 116-room Homewood
Suites Hotel and a 7,300 square foot
restaurant, and replacement of the
existing Wendy’s restaurant with a
state of the art 3,411 square foot
building. Residential development
continues in Cranberry Township
operates a $14.8 million revolving
loan fund that is comprised of eight
loan fund programs.
In 2012, Fay-Penn acquired the former International Communications
Materials, Inc. (ICMI) business complex in Dunbar, Pennsylvania, as part
of an effort to revitalize abandoned
manufacturing space left behind
after the recession. An investment
of more than $1.2 million has been
made by Fay-Penn to accommodate
new tenants. The business complex
has a total of 65,300 square feet
of office, manufacturing and warehouse space. After renovations were
completed, four businesses now
occupy a combined total of 29,300
square feet, with only 36,000 remaining vacant and available.
Fay-Penn has more than twenty
years experience in developing and
managing land and building projects
and currently owns and operates 12
buildings totaling nearly 383,800
square feet occupied by 26 tenants.
The income received from tenants
subsidizes the cost of services pro-
vided free-of-charge to businesses.
In addition, Fay-Penn owns 1,000
acres of vacant, undeveloped land
and manages three business parks
totaling 500 acres.
Fay-Penn has assisted more than
300 new or existing businesses
with business development projects
that resulted in the creation and/or
retention of more than 8,500 jobs.
Companies ranging from small retail
stores, with one to two employees,
to large multi-national corporations
employing hundreds have benefited
from Fay-Penn’s services, whether
through financing, site location,
building construction, technical assistance or workforce development.
Fay-Penn is a proud business and
community partner.
WCDC.VPRPhouse2homeDevPgh_Layout 1 2/7/14 12:34 PM Page 2
Greene County Greene County Industrial
Developments, Inc.
300 EverGreene Drive
Waynesburg, PA 15370
T: 724-852-2965
F: 724-852-4132
Don Chappel, Executive Director
[email protected]
www.gcidc.org
The year began with the world’s
largest coal mining company, China’s Shenhua Energy Company Ltd.
making a $90 million investment
to develop 25 natural gas wells in
Greene County throughout 2014
and into 2015.
Red Cedar Brown Partners LLC out
of Chicago started construction on
their 14,000 square foot building to
house a division of FMC. The building is being constructed on a 14.8
acre site which Red Cedar purchased
in December 2013. Project investment is pegged at $4.5 million.
Irwin Car & Supply completed
construction of their new 10,000
square foot warehouse on two acres
acquired in 2013. The company began servicing its business out of the
new building in June with an initial
investment of $1 million.
Plans by Greene County Industrial
Developments, Inc. are still being
formulated for an application on the
$1.5 million Redevelopment Capital
Assistance Grant announced this
past December for Phase 4 work
in the EverGreene Technology Park
near Waynesburg.
Greene County Industrial Developments, Inc. awarded an earthmoving bid to Bella Construction of
Cecil in February to create a new
10-acre pad site this summer.
Cameron International, a Fortune
500 company and global provider of
pressure control, processing, flow
control and compression systems
used in the oil and gas and process
industries, purchased a 10,242 acre
lot in mid-February and plans call for
development to begin later in 2014.
Looking for a Building for Your Business?
The Wilkinsburg CDC can help.
If you have thought about purchasing a building or renting a storefront,
the WCDC showcases listings of property for sale
and rent in downtown Wilkinsburg.
For more information visit www.wilkinsburgcdc.org/real-estate
Windy Ridge
Business & Technology Park
Indiana County, PA
● Intersection US 422 & SR 286 ● Pad‐Ready Sites ● Highway & Utility Infrastructure ● 5 to 20‐acre Parcels ● Light Industrial, Office, Commercial ● KOZ Tax Incentives ● Proximity to hotels, conferencing, golf, restaurants, and shopping Indiana County Center for Economic Operations 724‐465‐2662 www.indianacountyceo.com www.developingpittsburgh.com
79
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(412)279‐9800
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| Fall 2014
Indiana County
Indiana County Center for Economic
Operations
801 Water Street
Indiana, PA 15701
T: 724-465-2662
F: 724-465-3150
Byron G. Stauffer, Jr., Executive
Director
[email protected]
www.indianacountyceo.com
Indiana County officials have long
viewed the Jimmy Stewart Airport
as a critical economic development
link because of its utility for corporate executives and companies with
air-freight needs. In conjunction
with its new 5,400 foot runway,
the Airport has also developed an
adjacent KOZ designated Business
Park, with hanger pads that provide
direct access to the airport taxiway.
The White Township Planning Commission approved plans for a fivestory, 128-room Hilton Garden Inn
to be sited next to the Kovalchick
Convention and Athletic Complex,
on the Indiana University of Pennsylvania (IUP) campus. IUP officials
stated that groundbreaking for the
project is planned for the fall.
The Indiana County Development
Corporation is continuing with
the development of two new KOZ
designated business parks. Construction at the 197-acre W indy
Ridge Business & Technology Park
is progressing, with the completion
of a 720,000 gallon water tank and
installation of 12-inch water lines.
Contracts for grading of pads and
interior roads for Phase 2 were
awarded in July. Phase 2 will yield
five pad-ready sites, totaling about
45-acres, for mixed commercialoffice-industrial uses. Some eight
miles to the south, development
of the 30-acre 119 Business Park
is slated for completion in the fall,
with the construction of the access
road.
Diamond Drugs, a leading pharmaceutical provider for long-term
care institutions is expanding into
an adjacent 30,000 square foot
building at their Commerce Park
location. In addition, 6,300 square
feet of space has been leased at
the HighPointe at Indian Springs
site to Rx Pro Pennsylvania, a compounding and specialty pharmacy.
For more information on development opportunities in Indiana County, please visit the Indiana County
Center for Economic Operations at
www.indianacountyceo.com.
Lawrence County
Lawrence County Economic
Development Corporation
100 East Reynolds Street
Plaza South, Suite 100
New Castle, PA 16101
T: 724-658-1488
F: 724-658-0313
Linda Nitch, Executive Director
[email protected]
www.lawrencecounty.com
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The Lawrence County Economic
Development Corporation (LCEDC)
received an EPA Brownfield grant
of $200,000 creating a database of
152 sites and facilities within Lawrence County that were ranked for
future redevelopment and reuse.
Due to the success of this program
the LCEDC was recently awarded
$400,000 from the EPA to evaluate
not only brownfield sites, but also
petroleum sites.
Lawrence County is looking forward to the ground breaking of
two projects - LS Power and Lawrence Downs Casino and Racetrack.
LS Power intends to construct a
$750,000,000 gas-fired electric
generation plant in North Beaver Township which is the largest
investment in the county. This is a
multi-year project that will require
500 construction workers and
result in 25 permanent jobs for the
community. LS Power is await-
81
Lawrence County (continued)
ing approval from PJM to begin the
project.
Endeka Entertainment and Penn
National continue to await approval
of the gaming license to construct
their $225,000,000 casino and
racetrack in Mahoning Township that
will result in 1,400 temporary and
construction jobs and an estimated
permanent staff of 1,000 full time
and part time jobs.
Washington County
Washington County Chamber
of Commerce
375 Southpointe Boulevard #240
Canonsburg, PA 15317
T: 724-225-3010
F: 724-228-7337
Jeff Kotula, President
[email protected]
Mary Stollar, Senior Vice President
[email protected]
www.washcochamber.com
Washington County expanded on its
designation as “Energy Capital of
the East” with several recent announcements. Consol Energy Inc.
dedicated its new mammoth coal
mine on June 24, 2014, christening the $700 million project with a
new name, in honor of its execu-
Westmoreland
County
Westmoreland County Industrial
40 North Pennsylvania Avenue,
Suite 520
Greensburg, PA 15601
T: 724-830-3061
F: 724-830-3611
Jason W. Rigone, Executive Director
[email protected]
www.co.westmoreland.pa.us
During the first half of 2014, Westmoreland County Industrial Develop-
| Fall 2014
In 2013 there were six industrial
projects that resulted in an investment of $50,100,000 and impacted
454 jobs. Currently in 2014 there
are eight projects announced with a
total value of $102,435,000 which
will retain/create 392 jobs.
Also important are the real estate
projects that the LCEDC has initiated
including Millennium Technology
Park, a $14 million investment; the
tive chairman, J. Brett Harvey. The
Harvey Mine employs 2,500 people
and processes 10,000 tons of coal
per hour. Company officials also
celebrated 150 years in the energy
business with a luncheon for mine
employees.
Noble Energy announced it would
lease 139,000 square feet of the
207,000 square feet of the Town
Square Center building for their
regional headquarters. This will
accommodate the 200 employees
they expect to have by the end of
this year. In addition, Crossgates
Inc. reported that its new 45,000
square foot building is fully leased. Rice Energy leased 18,380 square
feet, Computer Aid Inc. has leased
more than 15,000 square feet and
NiSource Midstream Services and
ment Corporation (WCIDC) continued to see a tremendous amount of
growth from Westmoreland County
businesses as well as an increase in
interest from businesses potentially
relocating to the area. Brief highlights of this activity include:
Industrial Park Activity
Kennametal Inc. – County-based
Kennametal, Inc., intends to construct an initial 85,000 square foot
manufacturing facility on Parcel A,
15.25 acres, at Distribution Park
North in East Huntingdon Township.
This affiliated operation will employ
approximately 75 employees.
Business First Centre, a public/private partnership that resulted in over
$2 million of investment and the
creation of 15 jobs; the Volant Dam
Project that stabilized the Volant
Mill facility; and finally the newest
project Midtown Industrial Centre
with its recently approved $1 million
grant to the LCEDC.
Stallion Oilfield Services have taken
the remaining space.
Financial services also increased its
influence in Washington County as
a new $4 million WesBanco Banking Center started construction in
Southpointe II and Northwest Bank
broke ground for a new full service
branch in South Strabane Township.
Also, two well respected names in
banking announced a merger with
Community Bank and First Federal
Savings Bank expected to integrate
in October 2014. The combined
bank will represent prime territory in
the Marcellus Shale region as Southwestern Pennsylvania’s economic
core continues to move south and
center in Washington County.
JDOliver LLC (Freightliner) – JDOliver
LLC is a real estate company that
optioned Parcel 5, 11.22 acres, at
Distribution Park East/West in East
Huntingdon Township to construct
a truck dealership/service facility of
approximately 47,500 square feet
which will be leased and occupied
by Freightliner. Anticipated employment is 50-60 workers.
Asset Genie Inc. – A current tenant
at the South Greensburg Commons
facility in South Greensburg extended the current lease arrangements
for an additional three years within
Buildings 200, 300, 400 and 500
The Power to Prosper is right under our feet.
Nature put Washington County, Pennsylvania at the center of the Marcellus Shale.
It’s up to you to make the most of it.
There is more energy to tap. There is more room to grow. There is more time to prosper.
Join other Washington County companies and help shape the nation’s economy,
energy security and clean energy future.
Put your company on top of it all.
Proven Success | Unparalleled Client Service
Providing Effective Solutions for Southwestern
Pennsylvania’s Commercial Real Estate Needs
Office | Industrial | Retail | Investment
Another PublicAtion from
Carson Publishing Inc.
606 Liberty Avenue | Suite 300 | Pittsburgh, PA 15222
412.261.2200 | www.LWEre.com
| Fall 2014
• Print & electronic Publishing
• Graphic Design • Website Design
• Print & Production
carsonpublishing.com
412-548-3823
Westmoreland County (continued)
totaling 83,396 square feet. The
company deals in the repair/replacement of computer lap-top screens
and employs 50 people.
expanded operations to the former
Allied Technologies/Forum Energy
Technologies facility (30,000 square
feet) at the I-70 Industrial Park.
DeLallo Co. – A prominent Westmoreland County food service company
leased both 30,000 square feet in
March with an additional 20,000
square feet in July at the Jeannette
Industrial Park in the City of Jeannette.
Integrated Production Services
(IPS) – As a provider of completion,
work-over and production optimization services and products for the
oil and gas industry, IPS acquired
and expanded operations to the
former Snavely Forest Products facility (22,500 square feet) at the I-70
Industrial Park.
WATT Fuel Cell Corporation – Along
with a recent announcement of
WATT Fuel Cell Corporation’s acquisition of Pittsburgh Electric Engines,
Inc. (PEEI), WATT Fuel Cell leased
39,153 square feet adjacent to PEEI,
relocating its production line in Port
Washington, NY to the facility in the
Mount Pleasant Glass Centre. WATT
Fuel Cell is a developer of Solid Oxide Fuel Cell (SOFC) systems. Initial
employment of 35 workers is anticipated at start-up.
Other major developments in the
county include:
Vera Fab – A machine tooling business specializing in the auto parts
and power supply industry is currently expanding operations (30,625
square feet expansion) at the Business & Research Park. The company
employs 50 workers.
Ventana Plastics – A vinyl window
frame manufacturer currently located at Industrial Park III and employing more than 150 people started a
new flexible screen division at the
White Valley Industrial Park in Export
(44,515 square feet expansion).
Karndean DesignFlooring – A global
supplier of commercial and residential luxury vinyl tile flooring is currently expanding operations (61,000
square feet) at the Bushy Run Corporate Park in Export. The company
employs 35 workers at the site.
W ise Well Intervention – An oil and
gas servicing company acquired and
Gas Field Specialists –Gas Field
Specialists acquired and expanded
operations to the former O.C. Cluss
Truss facility (25,370 square feet) at
the I-70 Industrial Park.
Carclo Technical Plastics – The pharmaceutical and automobile plastic
injection molding company leased
22,500 square feet within the EFR
Flex building located at 45 Bay Hill
Drive at the Westmoreland Airpark.
FalconView Energy Products – Headquartered in Houston TX, FalconView
leased 11,250 square feet within the
EFR Flex building located at 45 Bay
Hill Drive for warehouse and distribution of equipment for the oil and
gas industry at the Westmoreland
Airpark.
Standard Envelopes, Inc. – A startup manufacturer and distributor of
envelopes from Dubai, United Arab
Emirates leased 40,000 square feet
within the EFR Flex building located
at 55 Bay Hill Drive at the Westmoreland Airpark.
Express Scripts –Express Scripts,
will be relocating operations to a
15-acre commercial parcel located
near Lincoln Hills Country Club in
North Huntingdon Township. Express Scripts is a mail-order pharmacy company currently employing
700 workers. The company plans to
construct a 70,000 square feet facility and employ a minimum of 400
people.
Arcelor-Mittal – The world’s largest
steel producer acquired the Monessen riverfront plant (former Koppers
Holdings) facility and is reopening
the coke plant which is situated on
45 acres in the City of Monessen.
The plant is capable of annually producing 370,000 tons of coke – refined carbon that is a key ingredient
in steelmaking. It is anticipated this
facility will create approximately 180
new jobs, adding to the 50 existing
jobs on site.
RIDC Westmoreland
Westmoreland County Community College - Completion of the
new 73,000-square foot Advanced
Technology Center distinctly located within the county’s 2.8 million
square-foot RIDC Westmoreland (former Sony facility) in East Huntingdon
Township. .
Cenveo – After acquiring its competitor, Scottdale-based National
Envelope, Cenveo, which operates
20 facilities throughout the country,
is leasing approximately 300,000
square feet of space at RIDC Westmoreland.
By the end of this year, the four
tenants - Aquion, DNP (Dai Nippon
Printing), WCCC-ATC and Cenveo - will be occupying more than
850,000-square feet of space overall
within the facility and will employ
nearly 750 workers.
Some of the county’s strategic marketing efforts for the second half of
2014 will feature the newly developed Phase II area at Westmoreland
Airpark. W ith the influx of oil and
gas-related enterprise to the area,
this park’s expansion will open up
an additional 52 acres of developed
property crucial for new and expanding businesses in the region. For additional information on this site, call
the Westmoreland County Industrial
Development Corporation at (724)
830-3061. DP
85
People & Events
Presenting at NAIOP Pittsburgh’s mid-year financial markets review
were (from left) Rod Reppe from Goldman Sachs Commercial Mortgage Capital, Steven Reed from John Hancock Real Estate Finance
Group and Dave Rudolph from Tri-State Capital Bank.
The team from Continental Building Systems raised over $8,800
in Big Brothers and Big Sisters Bowl for Kids event.
(From left to right) Cohen & Grigsby’s Scott Graham, Lee Hurwitz
from Alber & Leff Foods, Arnold Palmer, Jim Scalo and Bill Taxay from
Cohen & Grigsby.
Jim McDunn from Citizens Bank, Ross Thibault, Tony Bucciero from
Guardian Construction Management Services and Neyer’s Krista
Foster at the NAIOP/CREW Clay Shoot.
(From left) Elmhurst's Rich Conrady, PenTrust’s Jim Noland and Tyler
Noland, with Elmhurst’s Bill Hunt.
| Fall 2014
Representing Johnson Controls at the Clay Shoot were Colleen
Morgan, Matt Tyson and Jeff Zacherl (right).
Buildings
NAIOP Pittsburgh president Dan Puntil from Grandbridge Real Estate
Capital with Newmark Grubb Knight Frank’s Charlie Krushansky.
Heavy/
Industrial
Oil & Gas
CBRE’s Brooke Huber (left) and Sunny Lezark at the NAIOP/CREW shoot.
Scott Caplan and Tom Sieckhaus from Clayco with Chuck Wooster
from D. E. Wooster & Associates and Colony Development’s Don Tarosky.
Our People
www.mascaroconstruction.com
87
Commercial Lending
Loans for local
businesses like yours,
from equipment loans
to lines of credit.
Loans and Lines of Credit
Low Fees
Competitive Rates
Fast Turnaround
Local Decision-Making
Customized Financing
Strong Relationships
29 offices to serve you in Greater Pittsburgh
Northwest Direct: 1-877-672-5678 • www.northwestsavingsbank.com
Member FDIC
DEVELOPING
Pittsburgh
2014
Buyer’s
Guide!
LOOKING FOR AN
ARCHITECT, ENGINEER,
CONTRACTOR OR
LENDER? THE 2014 NAIOP
BUYER’S GUIDE LISTS
DOZENS OF FIRMS FROM
AROUND THE REGION
THAT CAN FIT THE BILL.
Architect............................................89
Building Code Consultant.................89
Building Materials.............................90
Civil Engineer....................................90
Construction Consultant...................91
Consultant.........................................91
Contractor.........................................91
Developer..........................................92
Document Handling . .......................92
Economic Development....................92
Engineer............................................93
Environmental...................................93
Finance..............................................93
Geotechnical Engineer......................94
Green Building/Energy Consultant...94
Industry/Trade Association................94
Interior Designer...............................94
Land Surveyor...................................94
Landscape Architect..........................94
Legal Services....................................95
Owner Representative......................95
Professional Services.........................95
Real Estate Broker.............................95
| Fall 2014
Architect
DRS Architects, Inc.
Astorino
227 Fort Pitt Boulevard
T: 412-765-1700
www.astorino.com
John D. Francona, RA, LEED AP
[email protected]
Founded in 1972 and headquartered in Pittsburgh,
Astorino is an award-winning, full-service company
with a strong team-based approach providing complete architectural, engineering, interior design, and
construction services. Our philosophy of design has
always supported the premise that neither function
nor beauty should be sacrificed in any work, no matter
what its purpose or scale. At Astorino, we believe that
great design meets the deepest needs of the people
who live, learn, heal, work and play in the environments we create. Our greatest asset is our passion to
impact the greater good...to design for the future...
and to re-imagine landscapes. We leverage our
creative foundation, interdisciplinary expertise and
collaborative approach to design and build inspired
environments with thoughtful intent to enhance
people’s lives.
Design 3 Architecture PC
300 Oxford Dr. Ste. 120
Monroeville, PA 15146
T: 412-373-2220
www.d3a.com
William Snyder
[email protected]
Design 3 Architecture has been offering architecture,
planning, and interior design services to the Pittsburgh region since 1982. We view inherent project
constraints as potential opportunities for innovative
design solutions. With a philosophy grounded in team
collaboration, providing both personal attention and
project leadership, Design 3 Architecture does more
than solve problems. We provide solutions that are
unique, exciting and affordable.
DLA+ Architecture & Interior
Design
Foster Plaza 9, Suite 200
750 Holiday Drive
www.dlaplus.com
Kari Miller
[email protected]
Achieving a client’s unique vision takes a unique
approach. Thanks to our Strategic ArchitectureSM
approach – clients are finding that it can be easy to
integrate organizational and brand strategy into the
planning and design of facilities. Find out more at our
website or call 412.921.4300.
One Gateway Center, Seventeenth Floor
T: 412-391-4850
F: 412-391-4815
www.drsarchitects.com
Kathryn A. Jolley, MBA, ASID, LEED AP
[email protected]
Designing for the future, DRS Architects continues to
provide innovative and creative architectural solutions
as we have for more than 50 years. We listen carefully
to our clients’ needs and develop customized responses to each design challenge. We provide architecture,
interior design and master planning services through
the varied markets of higher education, laboratories,
health and wellness, government, hospitality, and
corporate offices. Our talented design teams work to
develop exemplary projects which enrich daily life,
improve communities, advance a sustainable future
and promote design excellence.
IKM Incorporated
One PPG Place
T: 412-281-1337
F: 412-281-4639
www.ikminc.com
Joel R. Bernard, AIA, NCARB, LEED AP
Principal
[email protected]
IKM Incorporated has been providing architecture,
planning and interior design services to corporate and
institutional clients for 100-years. IKM’s mission is to
provide innovative and informed architecture that
positively impacts the world through leadership in
understanding, exploration and decision making. IKM
is a member of the American Institute of Architects
and the US Green Building Council.
VEBH Architects
470 Washington Road
T: 412-561-7117
www.vebh.com
Contact: Daniel Skrabski
[email protected]
VEBH Architects has been serving the communities of
Southwestern Pennsylvania and beyond for more than
65 years. We are passionate about creating quality environments for our clients. Our designs for workplaces
enhance client identity, offer increased productivity,
and deliver long-term value to a business, as well
as the customers and the community it serves. We
are committed to creating great places that inspire,
motivate, and ultimately enrich our region and the
communities in and around the places we call home.
Building Code Consultant
Gerard Associates Architects, L.L.C.
1601 Arrott Building
401 Wood Street
Pittsburgh, PA 15222-1838
T: 412-566-1531
www.gerardassociatesarchitects.com
Dawn Danyo DiMedio, AIA, LEED AP BD+C
[email protected]
A Woman Owned Business providing architecture,
planning, interior and environmentally responsible
design services to a full range of commercial clients
since 1959. The firm commits itself to understanding
projects completely, developing working relationships
with clients and delivering projects that are technically and aesthetically complete. Every project is given
principal attention. We believe this commitment to
service yields superior design.
DONOGHUE
PROJECT CONSULTING, LLC
Perfido Weiskopf Wagstaff + Goettel
408 Boulevard of the Allies
T: 412.391.2884
F: 412.391.1657
www.pwwgarch.com
Alan Weiskopf, Managing Principal
[email protected]
PWWG offers architecture, planning, and urban design
for projects in multi-family housing; education and
technical training; and the rehab, preservation, and
adaptive reuse of historic structures. Our awardwinning design work also includes hotels, parking
structures, theaters, and commercial operations. For
38 years, from our studios in downtown Pittsburgh,
we have assisted owners with detail-oriented
service, from early explorations, to coordinating
multi-disciplinary teams of engineers, to construction
management and LEED commissioning. PWWG is also
expert in code and zoning compliance, feasibility and
space programming, historic tax credit applications,
community outreach, and 3D visualizations.
onoghue
D
Project Consulting, LLC
[email protected]
T: 412- 605-7045
With experience in code compliance and enforcement,
as well as design, planning, project management,
construction, and building ownership; we can be your
Building Code Subject Matter Expert. We speak that
language. We offer:
• Building Code & Accessibility Consulting Services
• Compliance Strategies
• Owner Advocacy / Representation
• Project Planning
• Project Management
• Client Relationship Advice
• Forensics & Due Diligence.
Contact Tom Donoghue to discuss how we can help
with your project.
HHSDR Architects/Engineers
40 Shenango Avenue
Sharon, PA 16146-1502
130 7th Street, 201 Century Bldg.
Pittsburgh PA 15222-3413
T: 800-447-3799
T: 412-281-2280
www.hhsdr.com
Andreas Dometakis
[email protected]
Frank Gargiulo
[email protected]
HHSDR has been Building Relationships with our
clients since 1953. We are regional leaders in design
and construction administration, with a portfolio of
projects sized from a few hundred to 400,000 square
feet. We deliver design solutions through traditional
design-bid-build techniques as well as design-build.
Ranked annually by the Pittsburgh Builders Exchange
as the most active firm in the tri-state region, we
earn our clients’ trust by providing high-quality and
responsive service.
Renaissance 3 Architects, P.C.
48 South 14th Street
Pittsburgh, PA 15203 T: 412-431-2480
www.r3a.com
Deepak Wadhwani
[email protected]
At R3A we believe that successful design shapes
environments that actively engage the senses and
facilitate positive human interactions and behaviors,
while employing technologies that help improve the
performance of our daily lives. R3A is a 17-person firm
with three principals supported by an experienced
and creative team of architects, interior designers and
project managers. R3A provides a full range of architectural, interior design, planning services. We pride
ourselves in being uniquely qualified to respond to the
increasingly diverse and complex facilities needs of
our clients and their organizations.
89
Building Materials
Civil Engineer
The Gateway Engineers
400 Holiday Drive #300
T: 412-921-4030
F: 412-921-9960
www.gatewayengineers.com
Ryan L. Hayes, Director of
Business Development
[email protected]
Overhead Door Company of
Greater Pittsburgh
400 Poplar Street
T: 412-781-4000 x 217
F: 412-781-2446
www.overheaddoorpittsburgh.com
Ron Morris, President
[email protected]
From the time we invented the garage door in 1921
Overhead Door has always produced and installed the
highest quality products. Our superior product craftsmanship and dedicated excellence in customer care has
made us the leader in door systems for diverse markets
and customers around the globe. We offer the most
complete line of quality residential, commercial and
industrial upward-acting door systems. Our Red Ribbon
trademark is your guarantee of receiving unequaled
personalized service and expertise – from assistance
with product selection through the timely completion
of product installation.
2 East Crafton Avenue
341 Science Park Drive
Suite 205
State College, PA 16803
T: 412-921-3303
C: 412-491-6132
www.dewooster.com
Chuck Wooster, President
[email protected]
Since 1971, our firm has been a highly regarded and respected leader in the traffic engineering industry. We
are most proud of our uncompromising integrity. Our
goal is to guide our clients through the rigorous process
of real estate development and assist them by correctly
identifying on-site and off-site traffic impacts, develop
cost effective and efficient mitigation strategies, and
seek and receive municipal and State DOT approvals
and/or permits. Our skills include: Traffic Engineering
Studies, Highway Occupancy Permits, Traffic Signal
System Design, Roadway Design, Intersection Design,
and Parking Studies.
Gateway Engineers and its predecessors have played an
active role in the development of the Ohio Valley since
1882. Our incessant pursuit of project management
excellence has created strengths in municipal engineering, consulting work, and all facets of private development including the burgeoning energy industries.
The tradition of providing value-added engineering
solutions carries on as the company continues to grow.
Gateway Engineers staff of registered professional engineers, surveyors, construction inspectors, and landscape architects, along with qualified technicians, is
ready to provide the expertise and personalized service
which every project deserves. For more information,
please visit the new gatewayengineers.com.
Pennoni Associates Inc.
9 Foster Plaza, Suite 700
750 Holiday Drive
T: 412-521-3000 x2778
www.pennoni.com
John Skorupan
[email protected]
Pennoni Associates is a multi-disciplined consulting
engineering and design firm employing 900 professional, technical, and administrative personnel with
28 offices throughout the eastern United States. Pennoni, an ESOP company, offers services in Site Design,
Landscape Architecture, Environmental, Health and
Safety, Indoor Air Quality, Surveying, Transportation,
Land Development, Construction Inspection and Testing, MEP, Geotechnical, Underwater Inspection, and
Structural Engineering. Locally, Pennoni has offices
located in State College, Monroeville and Uniontown
that service the developer, building owner, industrial,
transportation, education, government, and Marcellus
Shale industries in western Pennsylvania, West Virginia,
and Ohio.
Lennon, Smith, Souleret
Engineering Inc.
Tom Brown, Inc.
224 Georgetown Road
Lawrence, PA 15055
T: 412-980-7957
www.tombrowninc.com
Brendan Brown
[email protected]
GAI Consultants, Inc.
Tom Brown, Inc. is a distributor of specialty construction products, sealants, caulking, firestop, glazing infill
panels, concrete repair and waterproofing products.
Tom Brown Inc, represents names such as: Dow Corning, Sika, Pecora, Tremco, Citadel, IMCO, International
Chem-Crete, Rectorseal, Grove Shims, ITP, Albion,
Newborn and Perma Patch. Tom Brown, Inc. is also a
converter of foam adhesive tapes with the ability to
Slit, Die-Cut, Spool, and Laminate representing companies such as Saint-Gobain, Adhesives Research, Arclad,
Rubberlite and 3M. Contact Tom Brown, Inc. today for
your specialty needs!
| Fall 2014
385 E. Waterfront Drive
Homestead, PA 15120
T: 412-476-2000
www.gaiconsultants.com
Patrick M. Gallagher
[email protected]
Transforming ideas into reality for over 50 years,
GAI’s teams of real estate and economic counselors,
urban planners, engineers, environmental specialists,
surveyors, and landscape architects provide innovative,
practical, and cost-effective solutions for all stages of
land development. Our award-winning land development portfolio includes large multi-use complexes,
retail centers, healthcare and educational campuses,
residential communities, urban streetscapes, parks and
trails, marinas, and resorts. Distinguished in our commitment to urban-infill, Greenfield, and brownfield
development, we help clients achieve their project
goals. GAI brings projects from ideas to reality. Learn
more at www.gaiconsultants.com.
846 Fourth Avenue
Coraopolis, PA 15108
T: 412-264-4440
F: 412-264-1200
www.lsse.com
Daniel S. Gilligan
Managing Principal, Vice President
Kevin A. Brett, P.E.
Principal / Assistant Vice President
[email protected]
Lennon, Smith, Souleret Engineering, Inc., (LSSE) has
provided planning and design services for over 150
project sites, 50 big-box commercial and retail sites,
an 833-acre industrial park, brownfield and river front
redevelopment sites, residential developments, college
and university infrastructure, and multi-use recreational, commercial, and residential sites including green
stormwater BMPs and innovative design solutions.
Red Swing Group
4154 Old William Penn Hwy
Suite 300
Murrysville, PA 15668
T: 724.325.1215
F: 866.295.5226
www.RedSwingGroup.com
Matthew Smith
[email protected]
Red Swing Consulting Services views its clients as
partners focusing first and foremost on building and
maintaining strong relationships. Mutual trust from
these relationships is the foundation of solid business
partnerships. Red Swing offers complete land development consulting services to take a project from concept
through construction. Red Swing possesses experience
in land development, infrastructure, utility, environmental and communication projects. Red Swing effectively maximizes the return on investment through
a collaborative design approach, utilizing a low impact
design philosophy that reduces project capital costs
and produces the competitive edge that we and our
partners demand.
Construction Consultant Consultant
Contractor
DONOGHUE
Donoghue
[email protected]
T: 412- 605-7045
Having been the Project Manager on both the Client,
and Consultant side; as Owner, Architect, Subject Matter Expert, and Code Official; we understand how to
succeed in the design and construction industry.
We speak all of those languages. We offer:
• Project Management,
• Project Planning
• Owner Advocacy / Representation
• Code & Accessibility Consulting,
• Client Relationship Advice
• Construction Observation
• Lender's Work-In-Place Verification
• Forensics & Due Diligence
Contact Tom Donoghue to discuss how we can help
with your project.
RCx Building Diagnostics
210 Fifth Street
Charleroi, PA 15022
T: 866-382-8628
www.RCxBD.com
Peter Arnoldt, LEED GA
[email protected]
RCx Building Diagnostics' certified engineers and consultants are dedicated advocates of environmentally
and fiscally smart buildings. Setting out to improve
the existing building stock isn't just a side project: it's
what we do. Our mission is to provide commercial
building owners and operators with independent,
3rd-party services empowering them with the tools,
knowledge and expertise necessary to maximize the
level of efficiency and performance possible within
their current design and resource constraints.
Our services include: Energy Audits, Retrocommissioning, Sustainability Consulting, Building Certification
Assistance (i.e. LEED®, EnergyStar®, etc.), and Retrofit
Project Management.
A. Martini & Company
RRC Consulting Group, Inc.
101 North Meadows Drive #110
Wexford PA 15090
T: 412-364-3035
www.rrcconsulting.com
Karl Kaluhiokalani
[email protected]
RRC Consulting Group (RRC) provides Facilities Support
Services, Environmental Consulting, and Environmental
Health Services for Commercial, Public, Industrial, and
Residential properties coast-to-coast. Services include:
• Maintenance Operations Management
• Asset Management
• Energy Audits
• Facility Condition Assessments
• Building Forensics/Thermography
• Life-Cycle Analysis
• Operational Readiness
• Infrastructure
• Phase I & Phase II Assessments
• Environmental Engineering
• Project Management
• Construction Inspections
• Building Commissioning
• Electrical Contractors
• Site Preparation/Demolition
• Environmental Site Assessments
• Regulatory Compliance
• Environmental Health Management Solutions
• Indoor Air Quality Assessments
• Mold Assessments and Remediation Plans
• Environmental Training Services
• Asbestos Inspections/Lead Assessments
Suite 205
T: 412-921-3303
C: 412-491-6132
www.dewooster.com
[email protected]
320 Grant Street
Verona, PA 15137
T: 412-828-5500
www.amartinigc.com
Emily Landerman
[email protected]
Established in 1951, A. Martini & Co. is not just a
general contracting and construction management
firm – it is a family business that embodies the dedication, work ethic and talent of three generations of
the Martini family. A. Martini & Co.’s size, history and
work philosophy are specifically geared to offering
experience, commitment and a partnering approach.
A. Martini & Co. provides construction management
and general construction services for multimillion
dollar and smaller projects for industry, retail, medical,
entertainment, corporate, residential, education and
non-profit clients.
Continental Building Systems
395 E. Waterfront Drive Suite 300
Homestead, PA 15120
T: 412-476-3006
www. continental-buildingsystems.com
Carl L. Belli, LEED AP [email protected]
Continental Building Systems (CBS) draws on a comprehensive scope of services, customized for every
client, to build solutions for their companies. We offer
a single source with total development, design and
construction services available to our clients. With a
26-year history and an annual construction volume of
over $200 million, we have a diverse base of experience
in commercial construction, including multi-story office buildings and tenant improvements, retail, restaurants, warehouses, industrial / manufacturing, medical,
recreational, education, multifamily, student housing,
assisted living and site development.
EMCOR/Scalise Industries
Burchick Construction Company Inc.
500 Lowries Run Road
T: 412-369-9700
www.burchick.com
Joseph E. Burchick
[email protected]
Burchick Construction is a full-service general contractor founded on the commitment to excellence that Joe
Burchick brings to each project the company undertakes. Burchick’s management approach is designed
to ensure optimum results for our clients, setting the
performance standard for construction services. Our
executives and managers have broad-based experience
delivering construction to the highest standards, regardless of the client’s preference for delivery method.
Burchick’s project team and professional engineers
on staff are equally comfortable with a completed
design or with providing pre-construction assistance
at the earliest stages of design. Burchick has managed
commercial, industrial and institutional projects from
$100,000 to $73 million with equal attention. Burchick
Construction, setting the performance standard.
108 Commerce Blvd. Suite A
Lawrence, PA 15055
T: 724-746-5400
F: 724-746-5410
Joseph Scalise [email protected] www.scaliseindustries.com
EMCOR Services Scalise Industries is a single source
provider of Mechanical, Electrical and Fire Protection
Construction Services to commercial and institutional
clients. From service and maintenance solutions to
complex construction projects, the Scalise Industries
team will utilize our extensive resources to enable
integrated workflow solutions. We deliver superior
service through our 65+ years of facilities expertise
and trade knowledge, and continuously implement
new technologies to construct quality products and
enhance value for customers. A part of EMCOR Group,
our expertise is backed by the resources of a Fortune
500 organization.
Restoring the Past Building the Future
Jendoco Construction Corporation
CLAYCO, INC.
133 Sunridge Drive
T: 412 913 7505
Scott Caplan, Business Development Manager - East Region
[email protected]
www.claycorp.com
Clayco is a full-service, turnkey real estate development, design, engineering, design-build and construction firm. Clayco specializes in “the art and science of
building,” by providing fast-track, turnkey solutions
globally for commercial, institutional and industrial
building types and heavy civil infrastructure projects
and is a leader in safety, technology, diversity and
sustainable design. Clayco looks “beyond these walls”
focusing on helping our clients fulfill their mission.
2000 Lincoln Road
T: 412-361-4500
F: 412-361-4790
www.jendoco.com
Domenic Dozzi
[email protected]
Located in Pittsburgh for over 50 years, Jendoco has
built a reputation for being a premier quality general
contractor and construction manager with expertise
in many facets of building construction. From renovations, to restorations, to new construction, our team
of seasoned professionals has the experience and
commitment to meet the challenges of your projects.
We have experience with new construction, renovation, historical restoration and preservation, research
facilities, hospitals and medical facilities, schools and
universities, religious facilities, water treatment facilities, multi-tenant residential, commercial, industrial,
institutional, retail and sustainable construction.
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Economic Development
Rycon Construction Inc.
LANDAU BUILDING COMPANY
9855 Rinaman Road
Wexford, Pennsylvania 15090
T: 724-935-8800
www.landau-bldg.com
Jeffrey Landau, President
[email protected]
Established over 100 years ago, Landau Building
Company (LBC) has become one of the premier
family-owned and operated general contracting firms
in Western Pennsylvania. In 2006, Landau Building
Company expanded its construction services to include
the northern West Virginia region when it created the
subsidiary Marks-Landau Construction. Now in its 5th
generation, LBC continues to build strong RELATIONSHIPS with its clients by focusing on their need to build
a safe, high-quality project on time and within budget.
Our commitment to integrity, honesty, and excellent
client service has built the solid REPUTATION we exhibit
every day and on every project. We deliver exceptional
RESULTS that exceed our client’s expectations for quality and service and make Landau Building Company
their builder of choice. We welcome the opportunity to
be your builder of choice.
2525 Liberty Avenue
T: 412-392-2525
F: 412-392-2526
www.ryconinc.com
Todd Dominick
[email protected]
Rycon Construction, Inc. is a premier preconstruction,
general contracting and construction management
firm with expertise in new construction, renovations
and design-build projects for owners of commercial,
industrial, institutional, multi-unit residential and
governmental buildings. Rycon’s stellar reputation for
quality service is built on a solid history of successful
projects completed on time and on budget and an
unwavering business philosophy that puts customer
satisfaction first. The results are return customers and
impressive company growth. Rycon has executed more
than $2 billion of work and currently averages in excess
of $140 million annually.
Volpatt Construction
100 Castleview Road
T: 412-942-0200
F: 412-942-0280
www.volpatt.com
Ray Volpatt Jr.
McKamish, Inc. 55th & AVRR
T: 412-781-6262
F: 412-781-2007
www.mckamish.com
Dave Casciani
[email protected]
[email protected]
When it comes to specialty mechanical contracting,
McKamish sets the bar. The Commercial Construction
Group at McKamish serves customers big and small in
virtually all market segments, meeting their Mechanical Contracting, Plumbing and HVAC needs. We excel at
Pre-Construction and Design Assist/Build services. The
McKamish Service Group thrives to optimize customer
investment in new and existing building systems. A
dedicated team of professional technicians, operating a
fleet of vehicles, provide McKamish Service customers
with around-the-clock support. Please visit our website
– www.mckamish.com – to learn more about us!
Volpatt Construction, a General Contractor/Construction Manager who specializes in new construction,
renovation, and restoration has successfully positioned
itself as one of the most respected building contractors
in the Western Pennsylvania Tri-State area. From one
small laboratory renovation at the University of Pittsburgh to more than 500 commercial, institutional and
industrial projects, Volpatt Construction has developed
a focus on high quality, hands-on service, competitive
pricing, and timely project completion which has
helped them build a long list of repeat clients. For
more information please contact Ray Volpatt, Jr. We
are Building.
Developer
Chapman Properties
100 Leetsdale Industrial Drive
Leetsdale, PA 15056
T: 724-266-4499
www.chapmanprop.com
Steve Thomas
[email protected]
Chapman Properties is a leading provider of quality
business facilities in Southwestern Pennsylvania. An
award winning commercial property development and
management company based in Pittsburgh, we design,
build, and operate state-of-the-art business parks with
a concentration on regional distribution and industrial
projects. We are best known locally for our redevelopment of the 2+ million SF Leetsdale Industrial Park,
and are currently developing Chapman Westport, a
2.6 million SF master-planned Business Park located
3 miles from Pittsburgh International Airport on the
Westport Rd. Interchange of PA Turnpike 576/the
Southern Beltway extension.
Horizon Properties Group, Inc.
375 Southpointe Blvd.
Suite 410
T: 724-743-7722 ext 2502
Michael Swisher [email protected]
Horizon Properties Group, Inc. is a full service real
estate development company with extensive experience in the development of new communities, office
buildings, corporate headquarters facilities, retail,
hospitality and residential projects. The company is
headed by Rod L. Piatt and Michael Swisher who were
the key individuals responsible for the successful development of Southpointe including the master planning.
Horizon Properties Group is comprised of an in-house
staff of architects, planners, engineers, landscape architects, interior designers and financial professionals
that enable Horizon to excel in all facets of real estate
development.
Document Handling
AdVenture Development, LLC
111 E. Oak Street
Selma, NC 27576
T: 919-965-5661
www.adventuredev.com
Kevin M. Dougherty
[email protected]
PJ Dick Inc.
225 North Shore Drive
Pittsburgh PA 15212
T: 412-807-2000
www.pjdick.com
Bernard J. Kobosky
[email protected]
PJ Dick – Trumbull – Lindy Paving is a Pittsburgh, PA
based contracting entity providing building construction, highway, site, and civil construction and asphalt
paving services. Since 1979, the companies have served
a number of different owner groups including commercial, institutional, government and private equity
developers. Consistently ranked among the nation’s
top firms, the family owned group of companies is
widely considered the region’s largest construction firm
offering a variety of delivery systems utilizing superior
expertise, equipment and innovation.
| Fall 2014
Kevin Dougherty formed AdVenture Development, LLC
in 2005. AdVenture Development focuses on commercial real estate development projects and is actively
involved in the acquisition, development, leasing and
management and has also retained real estate consulting assignments in Pennsylvania, Virginia, West Virginia
and North Carolina. Currently being developed in
Pittsburgh, PA is McCandless Crossing, a 1.2 million sf
mixed-use development. In the Raleigh, North Carolina
area a similar development , EASTFIELD, is planned.
Kevin and his team are dedicated to exceeding their
clients’ expectations. Please visit our website at:
www.adventuredev.com to learn more.
Tri-State Reprographics, Inc.
Ambridge Regional
2301 Duss Avenue #1
Ambridge, PA 15003
T: 724-266-4661
www.ambridgeregional.com
Gene Pash, Prsident
[email protected]
Value Ambridge Properties at the Ambridge Regional
Distribution & Manufacturing Center is located in
Beaver County and is convenient to all major local
roadways, and only 11 miles from the proposed ethane
cracker plant. Entirely zoned for industry, its 85 acres
house 22 buildings that contain over one million
square feet of leasable business, warehouse, office, wet
lab, distribution, and manufacturing space. Its tenants
also enjoy direct access to Norfolk Southern Rail Co.
service as well as on-site maintenance and logistics
services. For more information, call 724-266-4661, or
visit www.ambridge regional.com.
Armstrong County Industrial
Development Council
Northpointe Technology Center II
187 Northpointe Boulevard
Freeport, PA 16229
T: 724-548-1500
www.armstrongidc.org
Michael P. Coonley, AICP
Executive Director
[email protected]
The Armstrong County Industrial Development Council
(ACIDC), established in 1968 is a private 501(c)(3)
industrial development corporation. Identified as the
lead economic development group within the County,
the ACIDC, along with its sister organization the
Armstrong County Industrial Development Authority,
provides single-point-of-contact service for emerging or expanding business and industry. Owners and
operators of four industrial parks, single use and multitenant facilities, the ACIDC works closely with existing
or prospective businesses to identify the right location.
They also provide financing assistance to companies
through government loan/grant programs and private
sector financial institutions.
Community Development
Corporation of Butler County
2934 Smallman Street
T: 412-281-3538
F: 412-281-3344
www.tsrepro.com
DJ McClary, Director of Operations
[email protected]
111 Woody Drive
Butler, PA 16001
T: 724-283-1961
F: 724-283-3599
www.butlercountycdc.com
Ken Raybuck, Executive Director
[email protected]
For 70 years, Tri-State has provided printing and document management to Architects, Engineers and Contractors. Today we utilize the latest in Online Planroom
Services, Scanning / Printing in both Black &White and
Color. Level 3 Graphics, a division of Tri-State specializing in large format color, services the Sign, Advertising,
and Display Markets. Our unique approach combined
with our product research and years of knowledge
enables us to continually present new possibilities to
our clients.
The Community Development Corporation of Butler
County (CDC) is the lead economic development organization in Butler County. The CDC is your first contact
for economic development in Butler County. The CDC
works closely with you to identify the right location for
your business. Available land includes 60 acres at the
Victory Road Business Park, with a KOZ designation,
and 30 acres at the Pullman Center Business Park Expansion. All utilities are available at both sites. Office
space is also available for sale or lease at the Bantam
Commons.
Fay-Penn Economic
Development Council
1040 Eberly Way
Suite 200
Lemont Furnace, PA 15456
T: 724-437-7913
www.faypenn.org
Dana Kendrick
[email protected]
For more than 20 years, Fay-Penn has been the lead
agency for economic development in Fayette County. As evidenced by its experience and successes, Fay-Penn
has a high quality staff in place with a number of years
of experience in planning, managing and marketing
buildings; construction, rehabilitation, and maintenance of buildings; business park development; tenant
lease development and management; state and federal
grant writing, management, and administration; workforce development; low-interest business financing
solutions; and real estate managing and marketing.
Engineer
Civil & Environmental
Consultants, Inc.
333 Baldwin Road
T: 800-365-2324
www.cecinc.com
Gregory P. Quatchak, P.E.
[email protected]
Civil & Environmental Consultants, Inc. (CEC) is a company of professionals who provide integrated design
and consulting services at all points in a property’s life
cycle. CEC’s industry experts offer a full complement
of evaluation, technical and regulatory insight. Our
value lies in the practical knowledge senior leaders
contribute along with our broad skill-sets and desire to
advance our clients’ strategic objectives. We’re building trust and our reputation on a local level through
personal business relationships while continually assessing our environmental and economic sustainability
in the communities where we practice.
Washington County Chamber
of Commerce
375 Southpointe Boulevard #240
T: 724-225-3010
F: 724-228-7337
Mary Stollar
Senior Vice President Economic
Development
[email protected]
The Washington County Chamber of Commerce is the
largest business organization in Washington County
and the second largest chamber of commerce in Southwestern Pennsylvania. The Chamber focuses on economic and business development initiatives to expand
the economy of Washington County and was one of the
first organizations to publically support the economic
benefits and job creation potential of the natural gas
industry. Learn more at www.washcochamber.com.
Westmoreland County Industrial
Fifth Floor, Suite 520
40 North Pennsylvania Avenue
Greensburg, PA 15601
T: 724-830-3061
F: 724-830-3611
www.westmorelandcountyidc.org
Jason W. Rigone
Executive Director
[email protected]
Founded in 1983 by the Westmoreland County Board
of Commissioners, the Westmoreland County Industrial
Development Corporation (WCIDC) implements a comprehensive economic development strategy to promote
growth in terms of job creation, economic output and a
stable tax base for Westmoreland County. Through the
development of a county-wide industrial park system,
a responsive Business Calling Program and involvement
in public/private partnerships, WCIDC strives to foster
business growth, resulting in job opportunities for the
citizens of Westmoreland County.
KU Resources, Inc.
22 South Linden Street
Duquesne, PA 15110
T: 412-469-9331
F: 412-469-9336
www.kuresources.com
Mark Urbassik
[email protected]
KU Resources, Inc. provides a full range of environmental management and site development engineering
services to industrial, commercial, and communitybased clients. The firm specializes in brownfield redevelopment, environmental site assessment, economic
revitalization assistance, regulatory permitting and
compliance, remediation design and implementation,
and environmental risk management strategies. The
firm’s engineering and environmental consulting capabilities also include the areas of civil and geotechnical
engineering, site development engineering, water
resources engineering, mining and quarry services,
water quality monitoring, and air quality compliance
and permitting.
Herbert, Rowland & Grubic, Inc.
200 West Kensinger Drive, Suite 400
Cranberry Township, PA 16066
T: 724.779.4777
Daniel D. Santoro, AICP
[email protected]
www.hrg-inc.com
HRG is a full-service consulting engineering firm that
has built a reputation for being innovative, responsive,
and accurate. Our accomplished team takes pride in designing solutions today that sustain tomorrow’s communities. Since its inception in 1962, HRG has grown
to eight office locations throughout Pennsylvania,
West Virginia, and Ohio. We have 200 dedicated professional engineers, geologists, environmental scientists,
surveyors, landscape architects, and related support
personnel that provide a full-service approach to every
project. Service offerings include land development,
water resources, water & wastewater, transportation,
geomatics, environmental, and financial consulting.
LLI ENGINEERING
1501 Preble Ave, Suite 300
T: (412) 904-4310
www.LLIEngineering.com
James D. White, PE, LEED AP
[email protected]
LLI Engineering provides mechanical, electrical,
architectural, commissioning, and structural engineering services. Since 1910, LLI Engineering has been
consistently recognized for providing top-quality
engineering design services. We specialize in commercial, critical facilities, education, healthcare, industrial,
infrastructure upgrades, green building design, energy
conservation modifications, project engineering, and
engineering estimates. Located in Pittsburgh, Pennsylvania, LLI Engineering has completed projects in over
20 different states.
Suite 205
T: 412-921-3303
C: 412-491-6132
www.dewooster.com
[email protected]
Environmental
750 Holiday Drive
T: 412-521-3000 x2778
www.pennoni.com
John Skorupan
[email protected]
and Ohio.
Finance
Dollar Bank
Three Gateway Center
401 Liberty Avenue
T: 412-261-7515
www.dollarbank.com
David Weber
[email protected]
As your business changes, you'll need the flexibility to
respond to market opportunities by purchasing equipment, expanding your facilities or increasing working
capital. Your credit needs will change as your business
grows, so your overall credit plan should address
short-term demands as well as long-term growth. Dollar Bank’s Business Banking Experts will work to
understand your business and assist you in achieving
your goals with the right financing for your needs. For
more information, contact David Weber, Vice President
Business Lending.
KU Resources, Inc.
22 South Linden Street
Duquesne, PA 15110
T: 412-469-9331
F: 412-469-9336
www.kuresources.com
Mark Urbassik
[email protected]
KU Resources, Inc. provides a full range of environmental management and site development engineering
services to industrial, commercial, and communitybased clients. The firm specializes in brownfield redevelopment, environmental site assessment, economic
revitalization assistance, regulatory permitting and
compliance, remediation design and implementation,
and environmental risk management strategies. The
firm’s engineering and environmental consulting capabilities also include the areas of civil and geotechnical
engineering, site development engineering, water
resources engineering, mining and quarry services,
water quality monitoring, and air quality compliance
and permitting.
PNC Real Estate
249 Fifth Avenue
www.pnc.com/realestate
Joe Pascarella, VP
T: 412-762-2672
[email protected]
Autumn Harris, AVP
T: 412-762-4702
[email protected]
PNC Real Estate is a leading provider of banking,
financing and servicing solutions for commercial real
estate clients. Our capabilities include acquisition, construction and permanent financing for developers and
investors; agency financing for multifamily properties;
and debt and equity capital for the affordable housing
industry. And, through Midland Loan Services, we
provide third-party loan servicing, asset management
and technology solutions.
93
Green Building/
Energy Consultant
WesBanco Bank Inc.
680 Andersen Drive, Suite 520
T: 412-902-3162
www.wesbanco.com
John Fetsko
[email protected]
Since 1870, WesBanco has built a national reputation as a safe, sound, and profitable bank holding
company. Focusing on its community bank orientation,
employees are committed to the customer banking
experience, expanding the portfolio of financial
services to meet customer needs, and continuing the
bank’s history of delivering shareholder value. With
the October completion of our newest location in
Southpointe, Pennsylvania, WesBanco will have sixteen
offices throughout Western Pennsylvania. Additionally
WesBanco offers a wide range of personal and business
banking services as well as wealth management, treasury management, investment and insurance services.
Employees that work for WesBanco, Western Pennsylvania reside in the area and have considerable banking
experience in this market.
Geotechnical Engineer
631 Iron City Drive
T: 412-922-3912
www.mbawpa.org
Jon O’Brien
[email protected]
Chapman Properties
100 Leetsdale Industrial Drive
Leetsdale, PA 15056
T: 724-266-4499
www.chapmanprop.com
Steve Thomas
[email protected]
Chapman Properties is a leading provider of quality
business facilities in Southwestern Pennsylvania. An
award winning commercial property development and
management company based in Pittsburgh, we design,
build, and operate state-of-the-art business parks with
a concentration on regional distribution and industrial
projects. We are best known locally for our redevelopment of the 2+ million SF Leetsdale Industrial Park,
and are currently developing Chapman Westport, a
2.6 million SF master-planned Business Park located
3 miles from Pittsburgh International Airport on the
Westport Rd. Interchange of PA Turnpike 576/the
Southern Beltway extension.
Industry/Trade Association
ACA Engineering, Inc.
Master Builders’ Association of
Western Pennsylvania, Inc.
Leading the Industry, Building the Region!
The Master Builders’ Association represents the
preferred commercial contractor in our region. Collectively, the membership accounts for over 80% of
the commercial construction in our area and the MBA
contractors have built over 90% of the square-footage
of LEED certified buildings in the Pittsburgh region.
With skilled labor, superior safety services and the
latest technology, the MBA contractor is the best value
for construction.
Interior Designer
ACA Engineering, Inc. is an independently owned
and operated geotechnical and environmental engineering, materials testing and inspection firm with
offices in Pittsburgh, Mechanicsburg, and Laporte
PA, and Youngstown, OH. Our engineers, geologist,
draftspersons, inspectors, and technicians provide
quality designs, engineering studies, surveys, and
project management. Our senior staff has a combined
experience of over 100 years in engineering, construction inspection, and laboratory testing. ACA maintains
an in-house laboratory that has been inspected and
accredited by AASHTO Materials Reference Laboratory,
Cement and Concrete Reference Laboratory, and the
U.S. Corps of Engineers.
Builders Guild of Western PA, Inc.
650 Ridge Road, Suite 301
Pittsburgh, PA, 15205
T: 412-921-9000
www.buildersguild.org
Building trade unions and contractors working together to provide the best value in construction. Our
40,000 member workforce is professionally trained in
the finest apprenticeship centers in the country. We
understand the demands of the industry, are committed to customer satisfaction and are drug free. Today’s
building trade unions are setting a new standard of
excellence. Get to know us.
Of Western Pennsylvania
Foster Plaza 9
750 Holiday Drive, Suite 615
T: 412-922-6855
www.iwea.org
William C. Ligetti, Jr.
[email protected]
The IWEA is a Trade Association of Union Contractors
who work in all aspects of the Ironworking Trade within
the Construction Industry. We are a resource for all
owners, developers and contractors who are looking
for a qualified contractor with a well-trained workforce. Visit our website or call our office for additional
information.
| Fall 2014
and Ohio.
Design 3 Architecture PC
Design 3 Architecture has been offering architecture,
planning, and interior design services to the Pittsburgh
region since 1982. We view inherent project constraints
as potential opportunities for innovative design solutions. With a philosophy grounded in team collaboration, providing both personal attention and project
leadership, Design 3 Architecture does more than solve
problems. We provide solutions that are unique, exciting and affordable.
Land Surveyor
IRONWORKER EMPLOYERS
ASSOCIATION
750 Holiday Drive
T: 412-521-3000 x2778
www.pennoni.com
John Skorupan
Landscape Architect
300 Oxford Dr. Ste. 120
Monroeville, PA 15146
T: 412-373-2220
www.d3a.com
William Snyder
[email protected]
410 North Balph Avenue
T: 412-761-1990
www.acaengineering.com
Thomas R. Beatty, P.G.
[email protected]
Homestead, PA 15120
T: 412-476-2000
[email protected]
Homestead, PA 15120
T: 412-476-2000
[email protected]
Professional Services
Meyer Unkovic & Scott
750 Holiday Drive
T: 412-521-3000 x2778
www.pennoni.com
John Skorupan
[email protected]
and Ohio.
Legal Services
1300 Oliver Building
T: 412-456-2800
www.muslaw.com
W. Grant Scott
T: 412-456-2893
[email protected]
Patricia E. Farrell
T: 412-456-2831
[email protected]
The Real Estate & Lending Group recognizes the importance of understanding our clients’ business objectives
and providing timely, creative, and cost-effective
solutions. We work with financial institutions, manufacturers, shopping center and mixed-use property
owners, brokers, developers, buyers, sellers, landlords,
and tenants. Our team handles a broad range of matters such as contract negotiation, site acquisition and
development, evaluation of potential environmental
issues, site planning, commercial loan closings, and
zoning variances. Our team also handles land use, title
insurance, residential transactions, oil and gas leasing
issues, and tax assessment appeals.
Owner Representative
Suite 205
T: 412-921-3303
C: 412-491-6132
www.dewooster.com
[email protected]
Newmark Grubb Knight Frank
210 Sixth Avenue #600
T: 412-281-0100
www.ngkf.com
Gerard McLaughlin
[email protected]
Louis Oliva
[email protected]
Newmark Grubb Knight Frank is one of the world's
leading commercial real estate advisory firms. Together
with London-based partner Knight Frank and independently-owned offices, NGKF's 12,000 professionals
operate from more than 320 offices in established and
emerging property markets on five continents.
With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in
commercial real estate. NGKF’s full-service platform
comprises BGC’s real estate services segment, offering
commercial real estate tenants, landlords, investors
and developers a wide range of services including
leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation
services; commercial mortgage brokerage services; as
well as corporate advisory services, consulting, project
and development management, and property and
corporate facilities management services. For further
information, visit www.ngkf.com. NGKF is a part of
BGC Partners, Inc. (NASDAQ: BGCP), a leading global
brokerage company primarily servicing the wholesale
financial and real estate markets. For further information, visit www.bgcpartners.com.
Real Estate Broker
Babst Calland
Two Gateway Center
603 Stanwix Street
6th Floor
T: (412) 394-5400
www.babstcalland.com
Marcia L. Grimes, Esquire
[email protected]
Justin D. Ackerman, Esquire
[email protected]
Campayno Consulting Services, LLC
P.O. Box 554
Oakmont, PA 15139
T: (412) 794-8129
F: (412) 794-8130
www.campaynoconsulting.com
Jesse C. Campayno
T: 412-302-0035 [email protected]
Babst Calland’s lawyers have well-rounded skills in real
estate, corporate, finance, energy, environmental, and
zoning and land use law, as well as diverse, practical
experience. We provide pragmatic and creative advice
to developers, landlords, tenants, buyers, brokers and
managers of commercial real estate in all aspects of
their business. From acquisition to disposition, our
unique approach to the practice of law gives our real
estate clients an edge.
Campayno Consulting provides construction consulting
services for owners and developers who need assistance
managing the complex contractual relationships
between their contractor and architect. Jesse Campayno
has more than 37 years of experience in field and
executive positions, giving him insight into the best
practices of project management. Campayno focuses on
five core services: Owner representation and construction management; estimating and conceptual budgeting; project executive services; dispute resolution and
business consulting. Our clients rely on our expertise to
add value to their projects by providing clear direction,
maintaining open lines of communication and placing
the project owner’s goals as the top priority.
Maiello Brungo & Maiello
DONOGHUE
3301 McCrady Road
T: 412.242.4400
F: 412.242.4377
mbm-law.net
Lawrence J. Maiello, Esq.
[email protected]
D
onoghue
The MAIELLO, BRUNGO & MAIELLO Real Estate Team
provides legal services throughout the real estate
development cycle. Our attorneys have assisted with
the development of office parks, retail centers, multifamily housing, and mixed use developments. We
understand the perspectives of a developer and their
various roles as a buyer, contractor, landlord and borrowers. MAIELLO, BRUNGO & MAIELLO has counseled
clients on property acquisitions and sales, construction,
financing, zoning, taxation, title insurance, leasing, tax
incremental financing (TIF), and other issues associated
with land use and development.
Having been the Owner, Project Manager, Designer,
Planner, Code Official, Subject Matter Expert, Client,
and Consultant; we understand what it takes to make
a project succeed in the design and construction industry. We speak all of those languages. We offer: Owner
Advocacy / Representation, Project Management,
Project Planning, Code & Accessibility Consulting,
Client Relationship Advice, Construction Observation,
Lender's Work-In-Place Verification, Forensics & Due
Diligence Contact Tom Donoghue to discuss how we
can help with your project.
TARQUINCoRE, LLC
CBRE
U. S. Steel Tower, Suite 4800
600 Grant Street
412-471-9500
www.cbre.com/pittsburgh
Jeffrey Ackerman
[email protected]
The Pittsburgh, Erie and State College Offices of CBRE is
the local leader in providing comprehensive commercial
real estate services to property owners, investors and
tenants. Recognized as the largest commercial real estate service provider in the western, Northwestern and
Central Pennsylvania areas, CBRE Pittsburgh has set the
standard for excellence in the marketplace for over 50
years. We offer extensive corporate real estate solutions,
knowledge and experience in Asset Services, Brokerage
Services, Corporate Services Investment Sales, Facilities
Management, Management Services and Retail Services. The CBRE Pittsburgh, Erie and State College offices
are committed to providing clients with quality support
services and market intelligence that encompass accounting, research, marketing and administration, as
well as access to cutting-edge technology.
2403 Sidney Street, Suite 200
T: 412-381-7433
F: 412-381-6793
www.Tarquincore.com
Ronald J. Tarquinio, Principal
[email protected]
Whether you’re an investor, developer, landlord or tenant,
you need a partner who can provide you with comprehensive real estate knowledge…and help you put that
knowledge to work for your benefit. Someone who can
analyze all of the relevant aspects of a potential transaction, develop creative strategies based on an insightful
understanding of the market, then help you effectively
implement your plans.TARQUINCoRE meets these needs
with a unique, client-focused approach across a complete
range of commercial real estate services. From landlord
representation to property management to tenant
representation to brokerage services – whatever your real
estate needs might be – TARQUINCoRE can help you maximize options, seize opportunities, avoid potential pitfalls
and expedite transaction times.
[email protected]
T: 412-605-7045
95
NAIOP Pittsburgh Officers
Daniel Puntil, President
Grandbridge Real Estate Capital
Brian Walker, Vice President
Millcraft Investments
Lou Oliva, Secretary
Newmark Grubb Knight Frank
Christine Vann, Treasurer
BDO USA
Lynn DeLorenzo, Past President
TarquinCoRE LLC
Domenic Dozzi, National Board
Jendoco Real Estate
Gregory Quatchak, National Committee
Civil & Environmental Consultants
DeWitt Peart, National Committee
Pittsburgh Chamber of Commerce
Jamie White, National Committee
LLI Engineering
Board of Directors At Large
W. Scott Caplan
CLAYCO
Linda Fisher
Dollar Bank
Learn more about
NAIOP in the western
Pennsylvania tri-state region
at naioppittsburgh.com
or 412-928-8303.
NAIOP, the Commercial Real Estate Development
Association, is the leading organization for developers,
Wm Randell Forister
Allegheny County Airport Authority
owners and related professionals in office, industrial
Grant Mason
and mixed-use real estate. NAIOP provides
Oxford Development Corp.
unparalleled industry networking and education, and
advocates for effective legislation on behalf of our
members. NAIOP advances responsible, sustainable
development that creates jobs and benefits the
communities in which our members work and live.
Tyler Noland
PenTrust Real Estate Advisory Svcs.
Donald Smith Jr.
Regional Industrial Development Corp.
Lou Stempkowski
PNC Real Estate
Michael Swisher
Horizon Properties Group
David Weisberg
For more information on how you can develop
connections with commercial real estate through NAIOP,
visit us online at www.naiop.org or call 800-456-4144.
Wells Fargo
Michael Embrescia, DL Representative
Patricia Farrell, Legal Council
Meyer Unkovic & Scott
NOW OPEN:
Lowe’s Home Improvement
Hilton Home2 Suites Hotel
Dick’s Sporting Goods
L.A. Fitness
CVS/Pharmacy
IHOP
WesBanco
Doodle Bugs! Children’s Center
Sport Clips
Verizon/Wireless Zone
DiBella’s Old Fashioned Subs
Handel’s Homemade Ice Cream
GEICO Insurance
Nail Salon II
The Residence at McCandless Crossing
COMING SOON:
HomeGoods
Trader Joe’s
Cinemark Theatre
Panera Bread
Chipotle Mexican Grill
Bonefish Grill
Longhorn Steakhouse
First Watch
GNC
Supercuts
UPS
Massage Envy
RE/MAX
Phase IV
McCandless Town Center
in the North Hills of Pittsburgh
www.adventuredev.com/projects/mccandless-crossing
Additional Development Opportunities
Call Kevin Dougherty at 919.965.5661
111 E. Oak Street, Selma, NC 27576
97
WWW.DOLLARBANK.COM
WHAt IF YOU HAD A LIttLe MORe
BReAtHING ROOM? A little more inventory? A bigger
space? An equipment upgrade? A perk for employees? What if you stop
by and see the difference an independent mutual bank can make?
Let’s tALK.
If you're lookIng for A bAnk
thAt's Independent lIke you,
CALL DAVe WeBeR @ 412.261.8130
Equal Housing Lender. Member FDIC. Copyright © 2013, Dollar Bank, Federal Savings Bank.
BUS079_13

Retail Market Update - NAIOP Pittsburgh Chapter

Transcription

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