Arctaris Impact Investors and RDC will
rehabilitate the facility for a new tenant, County Executive
Innamorato to provide funding to support tenant improvements
Arctaris Impact Investors, LLC, a national impact investment
firm supporting revitalization projects in underserved communities,
announces a $7.3 million equity investment in a specialty
manufacturing and cold storage facility located at 1050 Talbot
Avenue, Braddock, Pa. This opportunity allows Arctaris and RDC to
re-open and lease the state-of-the-art facility to tenants seeking
to bring jobs to the region.
The previous tenant, a vertical farming business, abruptly
closed in late 2022, leaving the newly developed facility empty.
This closure resulted in the loss of over 40 jobs in Braddock, a
steel production hub outside Pittsburgh with poverty rates well
above the county average (30.9% in Braddock vs. 11.1% in Allegheny
County). Arctaris and RDC, a Pennsylvania based developer, intend
to renovate and invest in clean refrigerated space to prepare for a
new manufacturing tenant. The facility will provide space for
tenants looking to use it for food processing, pharma processing,
specialty manufacturing, or cold storage. This work fills a need
for critical manufacturing facilities that are in short supply due
to the steep cost of refrigeration, HVAC and power requirements.
Furthermore, the facility provides tenants with rooftop solar
generation and onsite battery storage, reducing emissions and
energy costs.
In addition to the original private investment, Arctaris has
committed $7.3 million of new investment that will provide for two
phases of work. This investment was made in partnership and
partially through a multimillion-dollar commitment from Erie
Insurance. Based in Erie, Pa., Erie Insurance invested in the
Braddock project as part of a $20.5 million social impact
commitment made to fund companies and development projects in
underserved communities within the company’s footprint. ERIE and
Arctaris have also partnered together to invest in social impact
projects in Baltimore, Lima, Ohio, Pittsburgh and Washington, D.C.
Allegheny County Economic Development has also committed up to $1
million to support tenant improvements at the facility.
“I’m delighted that this collaboration will bring new jobs to
Braddock, and I want to congratulate all the partners on this
exciting announcement,” said County Executive Sara Innamorato.
“Allegheny County Economic Development’s commitment of $1 million
to this facility, on top of an additional $8 million the department
has invested in Braddock in the last five years, is a demonstration
of our commitment to revitalizing the Mon Valley.”
The first phase will start the renovation of the processing
facility, repair of the colling tower, and power supplies and
select interior demolition. The second phase of funding will be to
match any public investment for the customization of the space for
a tenant’s specific manufacturing requirements. Upon occupancy, new
tenants are expected to create 50-100 jobs in the region. A portion
of these jobs will likely not require advanced degrees.
“This investment is about bringing continued economic growth to
Braddock. The facility will benefit the broader community through
more than bricks and mortar; it’s offering hope, jobs, and security
for local residents,” said Nihar Sait, Managing Director at
Arctaris. "Arctaris is committed to creating positive, sustainable
change in underserved communities, and this investment is a
powerful step supporting the revitalization of Braddock.”
Andrew Gibbs, Principal for Arctaris Real Estate Investments,
added: “As the U.S. continues to reshore critical manufacturing
capabilities, our public-private collaboration exemplifies Arctaris
Impact’s innovative approach to creating employment opportunities
and bolstering supply chains in neglected regions,” which he hopes
will “serve as a template for future industrial revitalization
projects.”
The Richard King Mellon Foundation awarded $4 million of
catalytic capital to Arctaris in 2021 to seed a $20 million
Opportunity Zone investment program to create jobs in economically
distressed communities in Allegheny and Westmoreland Counties. The
Foundation’s investment is enabling the Braddock project.
“Private capital is essential to creating positive economic
opportunities in our communities,” said Sam Reiman, Director of the
Richard King Mellon Foundation. “The people of Braddock are
deserving of such opportunities, and we are grateful to Arctaris
for catalyzing this job-creating project.”
RDC President Shawn Fox is also excited about the possibilities
that this partnership brings to Braddock and the Mon Valley.
“We’re thrilled that this unique partnership allows us to move
forward to restart this amazing facility that can be a key economic
driver in Braddock and the Mon Valley,” said Fox. “Our conversion
of this space, while also repairing and preserving the critical
infrastructure that cannot be duplicated, fills a demand that food
production, pharma production, and specialty manufacturing have an
interest in. The investment from private and public sources will be
impactful to this community and its economy.”
Fox continued: “There is a shortage of food production and cold
storage facilities throughout our country that has driven up food
costs and limited the amount of locally sourced food. We also
recognize that having the ability for local production of
pharmaceuticals is critical to our health as a region. This
facility can do both and we are so excited about the private public
partnership to preserve it.”
Arctaris remains steadfast in its commitment to catalyzing
positive change through impactful investments.
For more information on Arctaris and its initiatives, please
visit http://www.arctaris.com.
About Arctaris Impact Investors, LLC
Arctaris Impact Investors, LLC is a national impact investment
firm with experience spanning more than 14 years. The firm manages
funds which invest in growth-oriented operating businesses and
community infrastructure projects located in underserved
communities. Founded in 2009, Arctaris has partnered with the
Kresge Foundation, Harvard Business School Professor Michael
Porter’s Initiative for a Competitive Inner City, and multiple
other foundation, federal and state government agencies to invest
in Opportunity Zones, inner cities and targeted rural communities
throughout the U.S., with the aim of delivering above-market
investment returns alongside positive social impact. For more
information visit https://arctaris.com or for press inquiries
contact Lillian@arctaris.com.
About RDC
RDC is an integrated, full-service real estate and construction
company. Based in Pittsburgh Pennsylvania, RDC and its affiliated
companies have delivered more than $400 million in multifamily,
commercial office and light industrial real estate assets. RDC’s
experience includes serving as a developer and general partner, as
well as providing general construction and construction management
services on behalf of clients and investment partners.
RDC’s vertically integrated approach to development combines our
in-house construction teams, administration, finance and capital
market capabilities, to provide our investors superior risk
adjusted returns. This delivery system integrates the RDC
professional staff from project inception, through predevelopment,
preconstruction, financing and project execution to control cost,
mitigate risk and properly execute each phase of the development
cycle.
Learn more about the company at
https://www.buildwithrdc.com/.
About Erie Insurance
According to A.M. Best Company, Erie Insurance Group, based in
Erie, Pennsylvania, is the 12th largest homeowners insurer, 13th
largest automobile insurer and 13th largest commercial lines
insurer in the United States based on direct premiums written.
Founded in 1925, Erie Insurance is a Fortune 500 company and the
17th largest property/casualty insurer in the United States based
on total lines net premium written. Rated A+ (Superior) by A.M.
Best, ERIE has nearly 7 million policies in force and operates in
12 states and the District of Columbia. News releases and more
information are available on ERIE’s website at
www.erieinsurance.com.
Legal Disclaimer Certain information contained in this
press release constitutes forward-looking statements. These
statements reflect prevailing conditions and our best business
judgment as of the date of issuance. As a result, actual results
may vary from the projections and it should not be relied upon as
investment advice.
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version on businesswire.com: https://www.businesswire.com/news/home/20240701059572/en/
Lillian@arctaris.com