TRANSIT TRANSIT A BOLD BOLD A VISION

Fall 2018

Carnegie Mellon University Tepper School of Business

B U I L D I N G E X C E L L E N C E

www.mckamish.com CONTENTS | Fall 2018

05 President’s Message 07 Advocacy Update 31 Eye On the Economy 35 Office Market Update SVN | Three Rivers Commercial Advisors 39 Industrial Market 07 Executive Director’s Message Update Grant Street Associates/ Cushman & Wakefield 43 Capital Market Update 47 Legal / Legislative Outlook 49 Benchmarks Pittsburgh’s Multi-family Market is Showing 08 Feature Resilience A Bold Transit Vision 55 Voices 58 News from the Counties 67 People / Events 72 BUYER’S

2018 GUIDE 25 Development Project Ashby at South Hills Village

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For 67 years, A. Martini & Co. has been providing construction management and general contracting expertise to meet your project needs. www.amartinigc.com | 412.828.5500 Brunner Cory Morton Photography PUBLISHER Tall Timber Group President’s Message www.talltimbergroup.com

EDITOR As my second and final term as • Streamlining DEP state Jeff Burd president for NAIOP Pittsburgh is permitting processes 412-366-1857 coming to a close at the end of 2018, [email protected] • Support of the Bus Rapid I am pleased to report that the chapter Transit between Oakland and is strong and, more importantly, Downtown Pittsburgh PRODUCTION positioned well for the future of Carson Publishing, Inc. commercial real estate in the region. • Allow for 1031 like-kind real Kevin J. Gordon estate exchanges to be recognized In my two years as president, we have [email protected] in Pennsylvania had a great deal of successes. We • Pushing for reduction of proposed GRAPHIC DESIGN have continued to focus on the three core goals that grew out of our 2017 increase to Electric Standby Tariff 321Blink strategic plan – advocacy, membership with Public Utility Commission and communications. These will guide CONTRIBUTING PHOTOGRAPHY • Visits to Washington DC to NAIOP Pittsburgh as we plan for the discuss commercial real estate Port Authority of Allegheny County future. Highlights have included: Desmone Architecture development issues with our RIDC • Hired three outstanding people elected officials. Allegheny Conference on Community starting with Brandon Mendoza • Support for infrastructure and Development (Executive Director), David Caliguiri transportation investment. (Public Affairs Consultant) and Erica Tall Timber Group Loftus (Chapter Administrator). • Ensure capital and credit markets meet the current and future CONTRIBUTING EDITORS • Record sponsorship and greater needs of the commercial real Karen Kukish than 650 guests at our 25th Annual estate industry. Awards Banquet in 2018. ADVERTISING SALES • Support of Environment and • Honored our outgoing Executive Energy Efficiency. Karen Kukish Director Leo Castagnari who 412-837-6971 served NAIOP Pittsburgh well for • Re-engaging the Construction [email protected] twenty years. I would encourage Legislative Council and with the others to recognize Leo with a Building Owners and Manager’s MORE INFORMATION: contribution to the Castagnari Association’s legislative affairs DevelopingPittsburghTM is published by Family Charitable Fund through committee to combine efforts Tall Timber Group for NAIOP Pittsburgh pittsburghfoundation.org. on shared goals. 412-928-8303 • Became active and engaged in • Restarting of the statewide www.naioppittsburgh.com local issues impacting commercial initiative in conjunction with real estate investment and NAIOP Philadelphia to address No part of this magazine may be development in the region issues affecting both eastern reproduced without written permission including the City of Pittsburgh’s and western Pennsylvania. by the Publisher. Riverfront Zoning initiative and the The groundwork has been established All rights reserved. increase in the City of Pittsburgh’s for NAIOP Pittsburgh and Western real estate transfer tax. Pennsylvania to continue to thrive as This information is carefully gathered • Hosted innovative and attractive NAIOP Pittsburgh has been investing and compiled in such a manner as to programming by our Developing resources for the betterment of the ensure maximum accuracy. We cannot, Leaders with project tours across commercial estate community. It’s been and do not, guarantee either the cor- the region including a half-day bus an honor to be at the helm during this rectness of all information furnished tour for multiple airport properties, exciting time. nor the complete absence of errors and a project tour of the Kaufmann’s Thank you! omissions. Hence, responsibility for same Grand on Fifth Avenue luxury neither can be, nor is, assumed. apartment project and a lunchtime tour of 420 Boulevard of the Keep up with regional construction Allies with special guest speaker and real estate events at: Dan Gilman, Mayor Peduto’s www.buildingpittsburgh.com Chief of Staff. • Continuation of the Mentorship Program for our Developing Leaders. • Visits to Harrisburg to discuss commercial real estate development issues with our elected and public officials. Agenda items included: David Weisberg NAIOP Pittsburgh President

www.developingpittsburgh.com 5 Providing strong legislative leadership to advance your business and commercial real estate. naioppittsburgh.com

My NAIOP Pittsburgh membership has been a huge asset as I’ve grown in my career, offering access to key players in the industry. JOIN US AND ADVANCE YOUR BUSINESS.

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naiop.org/joinus Join NAIOP now and get the rest of the year free! EXECUTIVE DIRECTOR’S MESSAGE

s I begin my tenure as executive When it comes to membership, I will be I am hoping to see many of you at our director at NAIOP Pittsburgh, I focused on retention, growth, and driving upcoming events, including the 19th A am excited about the wealth of ROI. I value all of our members and I Annual Night At The Fights on November opportunity in Pittsburgh and the unique want to see their businesses succeed. I 1st, please reach out to me if you’re role that NAIOP occupies in advancing this believe NAIOP Pittsburgh can continue to interested in sponsoring and/or attending region. As I reflect on NAIOP Pittsburgh’s support our members’ growth, while also the event. Further, in the coming months, strategic positioning, I am focused on enhancing the benefits of our membership. I am planning on meeting with as many transforming our advocacy strategy, further In the coming months, under the board’s of you as possible. If you have project developing ROI for our membership, and leadership, I will be exploring ways to concerns or other matters, please feel free revamping our communications strategies enhance our membership benefits. NAIOP to reach out to me. I am here to help you to ensure we are meeting our stakeholders Pittsburgh will have an open-door policy and your businesses grow. on the platforms they utilize. for all our members. If you have a policy concern or a membership issue, please feel Sincerely, When it comes to advocacy, we will be free to reach out to me. proactive, and we will show leadership in the policy development process. This Given the communications environment proactive approach will allow for greater we are currently in, where we see the success and influence. Additionally, NAIOP President of the United States engaging in Pittsburgh will further develop our strategic direct communication with his followers relationships with our region’s elected via his Twitter account, NAIOP Pittsburgh leaders and other like-minded advocacy cannot afford to ignore this paradigm shift. groups. I will also seek to leverage the Given this new environment, we will be relationships of our members, many working to revamp our communications of whom have deep connections and strategy with a mobile and social first Brandon J. Mendoza relationships with our region’s elected and approach. We will evaluate our website and Executive Director NAIOP Pittsburgh civic leadership. social media sites to ensure members have the best experience possible.

NAIOP ADVOCACY UPDATE

n 2017, NAIOP Pittsburgh’s Board of for NAIOP than anyone and he will be By engaging our members and Directors participated in a strategic missed. His departure gave NAIOP an developing a responsible alternative, Iplanning session to set the course of opportunity to bring in a new Executive NAIOP was able to have numerous the organization for the next decade. The Director, Brandon Mendoza. Brandon meaningful discussions with local elected process was very informative and insightful was previously a public affairs expert officials. Working with the Mayor’s for all participants. We learned a lot with the Greater Pittsburgh Chamber of administration and members of City about our membership and their different Commerce – an affiliate of the Allegheny Council, NAIOP was able to positively concerns and priorities. However, one Conference, where he led local and affect the legislation. area clearly became the top priority for federal government affairs. everyone involved; advocacy. Going forward, NAIOP Pittsburgh will This year, NAIOP participated in a be engaging on a number of federal, As a result of the strategic plan, NAIOP number of meetings and discussions state, and local policy issues, including has made several changes to tackle with local elected officials regarding the advancing the Oakland-Downtown Bus advocacy issues on behalf of our 350 proposed Riverfront Zoning legislation. Rapid Transit development, the ongoing plus members. First, we created a new This legislation was drafted by Cities Pittsburgh Water and Sewer Authority and advocacy committee. This committee Planning Commission Members and water quality debates, regional transit, is charged with providing board and Planning team and was a central focus airport area transit buildouts, and DEP member leadership to help guide the of the Peduto administration. It was permitting reform. We are also focused chapter in vetting policy issues. further designed to replace the interim on tracking the progress of the final planning overlay district that had been in rulemaking for the federal Opportunity Second, we hired a public affairs firm place since 2016. Early iterations of the Zones program. We look forward to that will help NAIOP navigate the political legislation placed a number of undue engaging membership and elected process and allow us to have a more burdens on developers, many of which officials as we can to grow NAIOP vocal say when public policy affects are our members. Our development Pittsburgh as the region’s largest industrial our industry. Finally, after more than community’s goal is to continue the trend real estate association. DP 20 years, Leo Castagari retired from of preserving and restoring Pittsburgh’s his position as NAIOP’s first and only riverfronts with high quality projects that Executive Director. Leo has done more showcase the city’s transformation.

www.developingpittsburgh.com 7 AA BoldBold PublicPublic TransitTransit VisionVision

8 DEVELOPING PITTSBURGH | Fall 2018 he old model is broken. Pittsburgh developed into a The systems for moving suburban workplace, with T people through public Downtown less of a focus. transit no longer serve the way Public transportation declined we work and play; and the and highway capacity grew. means for funding public transit are no longer adequate. That’s What’s occurring economically a tough place to start for a bold today is necessitating a vision of the future of transit hard look at the regional in Pittsburgh. Yet, in the same transportation problem. way that accepting that you Downtown is growing again have a problem is the first step as a work center but it’s the in recovery, understanding that connections to the other the current system for delivering centers of economic activity transit and transportation that are driving this need to solutions won’t provide the best re-envision transit. Oakland solutions for Southwestern PA has always been a center of may be the first step forward. job creation but the pace of There will likely be a pendulum job creation and the economic swing in the direction of public spinoffs from the universities investment in infrastructure and UPMC are creating an again, but it seems unlikely almost existential need for to occur in time to meet connection. The new economy Pittsburgh’s needs for growth. of Pittsburgh depends on As an industrial city, Pittsburgh getting talent to Oakland, was something of a model which is well-served by bus, for public transit. Trolleys, but the need to link Oakland’s buses, and inclines directed talent with research and workers Downtown, where development in nearby places the majority of people in like the Strip District, Bakery Pittsburgh worked. Those that Square or Hazelwood, is just worked in manufacturing jobs as critical. And this talent will lived in neighborhoods or arrive by airplane to an airport towns that grew up around the that is connected to the most plant, usually within walking important parts of the city by a distance of work. Post-industrial crowded, undersized highway.

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Transit’s future isn’t being ignored. The It’s difficult to Allegheny Conference on Community plan for billions of Development convened a task force of dollars in transit transportation experts and civic leaders investment, while to form the Regional Transportation ensuring that the Alliance. That Alliance spent thousands investment won’t of hours in 2016 studying Southwestern be made obsolete PA’s transportation system and by technology gathering information about what the advances, with future might hold for the region. a sense of high urgency. Yet, that’s Progress continues on the region’s what is required. In first major transit expansion since many ways, this is the North Shore Connector, the Pittsburgh’s time. bus rapid transit (BRT) line that will Waiting to see what connect Downtown to Oakland and shakes out in the communities to the east. future of transit is safe but it may take These efforts, and others like them, are time the region constrained by the limitations of what’s doesn’t have. practical. Public authorities, like the Port Authority of Allegheny County, and It’s About elected officials must worry about their Connections constituents. The vision of the future is seen through the lens of conventional In the fast-growing funding sources and conventional Southern cities wisdom. Without the permissions of the that boomed in the taxpayers who elect them and pay their 1980s, like Atlanta salaries, it would be irresponsible for or Dallas, high- the elected leaders of the region or the capacity beltway Commonwealth to plan beyond what systems were built they can pay for. But thinking beyond to circumnavigate what is practical may be the only way the denser parts to plan now for what will be needed of the city and in the future. better connect the workforce to It’s not difficult for these leaders to the employment envision the future of the region’s centers. A skilled Port Authority of Allegheny County economy in terms that may not be worker in an practical. Mayor Peduto talks about eastern Dallas future mobility in Jetson-like terms. suburb has are growing at a rapid pace. Even if The idea of affordable housing and access to jobs on the northwest that growth is in a low-tax environment an economy that is equitable for side of town via a limited access (like Texas’) the sheer volume of new all is outside the realm of practical. interstate, cutting what could companies and residents will grow Leadership that inspires looks beyond be an hour commute in half. In the tax base. For older regions with what is practical. Pittsburgh, such connections exist established tax bases, the task is more by the coincidence of where existing difficult. That’s not just because it will It seems unquestionable that emerging infrastructure is. Westinghouse’s be harder to fund transit expansion, technologies will disrupt whatever bold move to Cranberry Woods was less but also because older cities in the U.S. vision of transit emerges. Autonomous disruptive to employees because of often have density and/or topography vehicles or flying cars may render the easy Turnpike connection between working against them. That is certainly highways – and light rail systems Monroeville and Cranberry Township. the case in Pittsburgh. – obsolete in five or 50 years. Less The same may not have been true technological advances are impacting had the corporation chosen a site in There’s another tough issue in transportation as well. Bike usage is Southpointe or near the airport. regional transportation, especially if on the rise. More people are moving regional leadership includes a wide to communities where they can walk To prepare for growth, infrastructure band of stakeholders. The impulse to work and play. These changes in will need to be enhanced by building to create a regional transit system behavior and technology won’t make all to make connections that do not that touches all parts of the region is the connections that are needed now if currently exist. That’s easier to do in strong but that may not also be the Pittsburgh is to grow into its future. places where population and business right approach. In Southwestern PA,

www.developingpittsburgh.com 11 FEATURE FEATURE

and Nova Place succeeded by investing ahead of the growth that innovation has driven. Burns & Scalo’s Riviera office building and 3 Crossings 2.0 are banking on that trend continuing. Doesn’t it make sense to place a similar bet on innovation driving transit demand?

Pittsburgh’s headline connection is Downtown to Oakland. Downtown is where the support infrastructure for technology The average cost of transportation for Pittsburgh residents pushes the total cost of housing and trans- exists. The lawyers, bankers and portation to 41 percent of income. Source: H+T Index. Center for Neighborhood Technology. consultants that serve innovation are mostly based Downtown. the Regional Transportation Alliance Those would be the projects we should That connection is also vital because saw this first hand when it created the pursue.” Oakland is home to universities that are Imagine Transportation 2.0 report in enormous consumers of the services 2017. Partners in Indiana County and Where are the important priority that Downtown companies provide. Greene County had input and deserve connections? Imagine Transportation And, of course, the region’s largest consideration in thinking about the 2.0 didn’t specify them but the healthcare system maintains millions long-term future of Southwestern employment centers of today are of square feet in both Oakland and PA, but the urgency of connecting Downtown, Oakland and the fringes Downtown. The justification for the those outlying counties to the job beyond Downtown. There is bus BRT could be based on the commerce creating hubs of the region does not service connecting most of these and development potential from exist. Those counties outside the areas but little rapid, on-demand healthcare alone. metropolitan area have transportation service. What has emerged over the past decade are satellite employment needs and deserve attention to those Perhaps the most difficult important centers in the Strip, East Liberty and needs, but resources devoted missing connection to envision is Lawrenceville. These centers have to connecting those counties to between these employment centers emerged because they are home to Oakland or the airport might be better and Pittsburgh International Airport. the industries that could be Pittsburgh’s used elsewhere. The I-376 corridor plays an important future growth engines. Connecting role in connecting the airport to all “The report alone was never going these centers to each other and the points of the region, but it suffers from to be sufficient to change things university centers that are the life blood the limitations that a surface highway but it began the process of getting of the emerging industries would be a has. Traffic patterns are unreliable people to think about the things that great start. and subject to disruption from even were to come. I think one of the minor accidents. There is no room for important things that we were able to For similar reasons, a connection capacity expansion for major stretches achieve with the report was getting from Second Avenue back to Oakland of I-376 between town and Robinson our decision makers and people is a critical connection. Pittsburgh Township. Weather can be a problem. in a position of influence to really Technology Center has been the home to many university research tenants but grapple with it in a tangible way,” says Ron Tarquinio, principal at often the users of those spaces have Carly Dobbins-Bucklad, senior policy TARQUINCoRE, laments that the complained of being disconnected analyst for the Allegheny Conference opportunity to create a connection to from the campuses. World-class and one of the leaders of Imagine the airport was lost when the Parkway researchers don’t come to Pitt or CMU Transportation 2.0. “We needed to start West was designed. He recalls hearing to be a ten-minute car ride from the something where there is alignment of whispers that the Downtown business heart of campus. Now, with Hazelwood our priorities in order for us to start community influenced the decisions to Green emerging as a major hub for honing in on our priorities. have as few interchanges as possible, robotics research and development, in order to keep development from “You still have to actually take the next the critical mass is building for demand leaking west. Conspiracy theories aside, step. The next step involves honing in from that corridor. Tarquinio says that when a NAIOP on a handful of those priorities, fleshing Corporate was engaged to analyze them out. What do the options look Technology innovation has been the potential commercial uses of the like? Who has to be at the table? Then the payoff for most of the limited former international airport in Moon we use that information to determine speculative development that has Township, the experts concluded that what will be the biggest bang for our occurred in Pittsburgh over the past the site lacked access to highways and buck and have the biggest impact. decade. Schenley Place, 3 Crossings wouldn’t redevelop well.

12 DEVELOPING PITTSBURGH | Fall 2018 FEATURE

A high-speed public connection to the transit planning will have to undo the One of Pittsburgh’s selling points, airport would have the added benefit shift in transit orientation from mass particularly to those in high tech, is of multiplying connections because of public transportation to cars over the its affordability. With a low median some of the infrastructure investment past 50 years. Chris Sandvig, director housing price, Pittsburgh trumpets its that has already been made. The of policy for the Pittsburgh Community livability, but the shift to the suburbs has limited-access highway connecting the Reinvestment Group (PCRG), points made its transportation costs rise. The airport to I-79, variously known as the out that attempts to make the city Center for Neighborhood Technology Airport Connector and the Southern more car-friendly damaged some of analyzes major cities for the overall Beltway, has become incredibly Pittsburgh’s oldest neighborhoods. cost of living and computes a Housing valuable because of the emergence + Transportation Index (H+T) that of the natural gas play. Assuming “When you step back and look at how reflects the average share of income this corridor also gains an interstate our region works, how our region that these factors consumes. For designation (I-576) when it’s completed, began, we were not a car-first region. Pittsburgh, the H+T is 41 percent. That the 30-mile stretch of highway will be When we tried to make places in our fares very well with Seattle’s 46 percent, ground zero for future investment in urban environment car-first, we ended Atlanta’s 48 percent or Houston’s 45 downstream industrial development, up destroying the fabric of those percent. The surprise is that Pittsburgh’s as it connects Southpointe and Greene communities,” Sandvig says. “When you H+T score is five points higher than County to Shell’s polyethylene facility think about East Liberty and the urban Philadelphia and eight points higher in Beaver County via I-376 and to the renewal project that happened there than Washington DC. Housing costs Dilles Bottom cracker to the west via or what happened with Allegheny City in both of those cities is considerably I-70 or 22/30. when Allegheny Center was developed, higher than Pittsburgh’s but the we are not that sort of city. Our transit ample public transit options mean Getting talent and business travelers usage shows that. And many of the that residents rely on much cheaper from city origination points to the people we’re trying to help are transit- transportation. airport and the energy corridor reliant. If Pittsburgh is going to see the expands the impact of the future growth that we all want to see, transit development to the west of the city. needs to be at the center of all that.” As Pittsburgh’s East End neighborhoods have revitalized in recent years, the disconnection of the Airport Corridor has become more pronounced. Young talent, migrating to Squirrel Hill or East Liberty, is reluctant to deal with the traffic of a Parkway West commute, especially when so many other employment options exist nearby. General Electric’s Additive Customer Experience Center at Chapman Westport is reported to be experiencing difficulty in recruiting for that reason.

Connecting these centers also means connecting underserved communities to workplaces that aren’t currently accessible. Future

www.developingpittsburgh.com 13 FEATURE

Sandvig’s work at PCRG has been years. During his time there, Denver’s Lawrenceville. He dreams of a fast- focused on enabling transit-oriented Regional Transportation District – their moving connection between the Strip development (TOD). He says that TODs counterpart to the Port Authority – built District/Lawrenceville and Hazelwood play an important role in bringing equity and expanded a light rail system that Green that would service the heart of to a region because they move jobs connected the wide-ranging places Pittsburgh’s new economy. closer to the people who need them if where the new economic drivers of the TOD is done right. He also explains Denver have grown. “Can you imagine the robotics that TODs have a financial advantage engineers at the Tech Forge, who have over other commercial development. “The transit system in Denver grew a meeting at the Advanced Robotics for from two or three lines to almost Manufacturing facility in Hazelwood, “PCRG has been working on a lot of becoming a beltway around the jumping on an eight-seat electric issues related to reinvestment in urban city. They also built a light rail to the vehicle or something like that and communities, predominantly in the airport that was huge,” Noland says. arriving in a few minutes?” he asks. city but also in the outlying counties,” “There’s an area, South Broadway, says Sandvig. “We started our transit that’s becoming a transit hub. It’s the Desmone describes an existing program, called GoBurgh. It grew equivalent of putting a transit center on Allegheny Valley Railroad line that runs initially out of a realization from some Banksville Road that would serve as the from the Strip behind the old Pittsburgh of our members that the infrastructure hub for all the rail south of the city. You Brewing at 32nd Street, follows the piece in redevelopment, if done can imagine what has happened East Busway before entering a tunnel right, could reduce the subsidy that to South Broadway. There has been in Bloomfield. The line then exits near people were pursuing to do bricks and new development of condos, Central Catholic, continuing between mortar development.” retail and commercial all around the Pitt and CMU before reaching Second transit center.” Avenue. That line was abandoned by The value in connecting these CSX when the carrier transitioned to important centers of employment, The area surrounding Banksville Road double-stacked cars and picked up by present and future, to people and is already fairly densely developed with AVRR, which also connects it to the amenities is in ensuring that talent neighborhood commercial product but lines along the Allegheny River. AVRR can be and go to where it wants imagine what a transit center located would have to be convinced to share to. The residual benefit of building between the West End and McKees the underutilized line and there would a system of connections is that the Rocks might spark. How attractive have to be logistical solutions designed, system becomes the blueprint for would the affordable communities but it is the imagining of a transit development. The Southern cities that in the Mon Valley become if a robust solution that is usually more difficult exploded in the 1980s and 1990s built transit line connected Oakland to than the execution. highways that stretched beyond where Charleroi, or the Mon-Fayette was people were, and in doing so created completed to Hazelwood? Funding the Vision the places that people would ultimately go. In almost all of those cities, land One Pittsburgh architect has given There are many hurdles that exist to the was plentiful, cheap and often flat. a lot of thought to the transit vision. execution of a bold transit vision but Atlanta’s outer belt or Dallas’s Central Chip Desmone, principal at Desmone none are as daunting as the challenge Expressway developed in farm land Architects, has designed and developed of funding the projects. Infrastructure far from the city. Growth filled commercial projects throughout investment receives its fair share of in the blanks later.

What was discovered in these car-centric cities in the decades that followed their initial booms was that the same thing happened when rail systems were built. In fact, in many cases, the rail system rejuvenated areas that had fallen fallow as the cities pushed outward.

Jamey Noland, director of underwriting for PenTrust Real Estate Advisory Services, lived in Denver for 15 More than a dozen regional transit authorities have placed billion-dollar measures in front of voters since 2016.

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campaigning but elected officials have because it involved a failed vote in 1997 California authorities, four of which shown little desire to follow through that was followed by two decades of received strong majority support but with remedial infrastructure spending, leadership that sold the vision of the fell short of the two-thirds majority that let alone bold investment. From the future to the citizens. Denver’s story is California law mandates. federal government on down, there not unique. More than a dozen major isn’t the political will to invest in cities have gone to their voters with Among the measures voted upon in mass transit. This has led to regional multi-billion dollar proposals, with other cities, programs were approved solutions that go outside the norm. mixed results. by voters in Charleston SC ($2.1 billion), Wake County NC ($2.3 billion), and Other cities have recognized that The two biggest programs were Los Atlanta GA ($2.5 billion). Voters in their needs were more urgent and Angeles’ $121.4 billion Measure M and Southeastern Michigan and Broward expansive than would be served by the Seattle’s $53.8 billion Sound Transit 3. County FL turned down $4.7 billion and traditional process of applying to the Measure M authorized a half-cent sales $6 billion measures respectively. Federal Transportation Administration tax to fund $113 billion in new transit or lobbying their state legislature. In and improvements through 2040 and Against the backdrop of these a number of cases, growing or large passed with 71 percent approval. Sound proposals, Pennsylvania’s Act 89 of cities have taken the case directly to Transit 3 used a combination of small 2013 may not seem all that bold, but it the voters. Civic leaders in Pittsburgh increases in sales and property taxes, was an ambitious step outside the box are familiar with the $4.7 billion plus motor vehicle fees, to fund 62 for a legislature that had been opposed FasTracks referendum in Denver and miles of transit expansion between to raising fees or taxes on residents. An their subsequent expansion referenda. 2024 and 2041. Among the dozen unprecedented coalition of corporate, Denver’s story is something of a model other referendums were six from government, civic, and labor leaders

www.developingpittsburgh.com 17 FEATURE

from infrastructure a death spiral for public transportation investment to paying in Pittsburgh and Philadelphia. PAT’s for state police patrols new CEO, Katharine Eagan Kelleman, of communities that has focused on changing the culture can’t afford their of transit and improving the experience own police. Some for the systems’ riders. Within the $400 million each year, a more ambitious plan for how year to pay for the to enhance public transportation in revenues that were Allegheny County will be underway at lost when the tolling PAT, but the funding for growth won’t of Interstate 80 was come from Act 89. not approved, an outcome that the PA There exists a blueprint for future legislature failed to transportation that has been developed take into account. by the Southwestern Pennsylvania Act 89 has been a Commission (SPC). Mapping the beneficial piece of Future: The Southwestern PA Plan Rental rate performance for transit-accessible buildings far outstrips legislation, but not was developed in 2015 and amended that of car-dependent buildings. Source: Transwestern. to the degree it was in September 2017 to be the plan anticipated. for investing in the infrastructure for successfully pushed the legislature to the SPC’s ten-county region. The reverse a narrow “no” vote and pass What has worked from Act 89’s passage plan identifies capital projects and the measure overwhelmingly within 48 has been the benefit to the state’s investments to improve the region’s hours. two major public transit systems. The infrastructure and transit systems. additional $144 million in transit funding Mapping the Future calls for $29 billion In 2018, Act 89’s full funding expansion allocated to Southeastern PA Transit in investments through 2040. Of that of $2.3 billion is in effect, but political Authority and the Port Authority of figure, $14.3 billion is earmarked for moves since 2013 have eroded the Allegheny Co. allowed each to stop the roads and bridges, and $14.6 billion for effectiveness of the measure. Hundreds erosion of service that was becoming public transportation. of millions of dollars have been diverted

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00066-Developing Pittsburgh Magazine Ad (NAIOP).indd 1 8/18/2016 2:14:26 PM 18 DEVELOPING PITTSBURGH | Fall 2018 The plan is an outgrowth of SPC’s residents of Southwestern PA don’t widely accepted in Pittsburgh as role as the guidance for PennDOT have access to the information that beneficial to a sustainable and equitable and the Commonwealth in planning would make them aware of the critical economic future. According to infrastructure spending each year. role that access to transit plays in Transwestern, a global commercial real As such, SPC is limited in its planning economic development. Something estate developer and investor, there is to existing funding sources like the similar to the Regional Transportation a more practical rationale: higher rent National Highway Priority Alliance (which still exists) could be the and occupancy. Program (NHPP) and the Surface clearing house and convener for pulling Transportation Program (STP). together the vision and communicating Transwestern’s July 2018 report on the it to the voters. Perhaps the lessons impact of transit-accessible properties Getting beyond those budgeted learned from responding to the in 15 major US metropolitan markets funding sources, regional authorities Amazon HQ2 request for proposals can (Pittsburgh was not among these) can look to alternatives that are still be the template. found that central business district locked into the existing framework of (CBD) rent was 65 percent higher funding solutions. These alternatives Selling a sales tax or other revenue- in transit-accessible buildings than can include private/public partnerships generating strategy will be made more car-dependent buildings. The study (P3), Regional Transportation Districts, difficult by the fact that the buyers are found a 50 percent rent premium Transportation Revitalization Investment dispersed into multiple counties and for transit-accessible buildings in the Districts, Private Activity Bonds or long- even more municipal taxing authorities. suburbs. Vacancy was also impacted term bond borrowing against future It won’t be easy but worthwhile by access to transit. Transit-accessible revenue or tax streams. None of these ventures seldom are. buildings had average vacancy rates of are sufficient or suitable for funding an 8.3 percent, compared to 9.1 percent expanded transit system that connects It’s hard to imagine that the rationale for car-dependent buildings. the areas that are economic and behind a bold transit plan would need social drivers to all the residents of to be sold to the business community. Getting to the Future metropolitan Pittsburgh. Most of the principles guiding such a plan – density, connections between There is one forward-looking transit What it will likely take to act upon a collaborators, talent attraction, linking project in the pipeline for Southwestern bold vision is a sales job. Many of the capital and support to innovation – are PA. Proposed four years ago, the bus rapid transit (BRT) connection WALKABLE. BIKEABLE. SUSTAINABLE.

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www.developingpittsburgh.com 19 FEATURE

between Downtown and Oakland innovation to drive development of has progressed through the feasibility the Uptown corridor that links Oakland and fund-raising stages to become a to Downtown. BRT stops throughout viable project. Through community Uptown are meant to be commercial meetings, PAT received feedback that hubs for development. led it to define the route and stops of the BRT, expanding its reach beyond The Pittsburgh BRT project garnered Oakland to the eastern neighborhoods high marks from the Federal Transit that are thriving. Those neighborhoods Administration but did not receive the include Squirrel Hill, Shadyside and $98 million in funding in the current branch routes that connect riders in fiscal year funding. PAT expects that its Greenfield and Highland Park. With resubmission for 2019 will be funded. dedicated lanes, limited stops and In July, the Port Authority approved advanced technology for traffic control, a contract with AECOM to design the BRT is designed to move people the system. Armed with $39 million between Downtown and Oakland in in state backing, PAT plans to begin seven minutes or less throughout the construction during the first half business day. of 2019 and begin operating buses Petuum Inc.- Office Fit-Out in late 2021. A light rail system that connects Downtown to Oakland, and to the research facilities on Second Avenue and Hazelwood Green, is on the wish list of most observers of Pittsburgh’s “The options are revitalization. A BRT alternative to light rail makes sense for a couple of reasons, however. First and foremost is different now the cost. At $195 million, the proposed Downtown-to-Oakland BRT is a major than they used capital investment for PAT, but one that pales in comparison to the billion-dollar price tag of even a short rail project. to be. It’s not And, it is one that can fit within the limited federal granting programs. BRT so cut-and- Southern Tier Brewing Company - Pittsburgh requires much less time to develop, likely delivered in two years after construction starts. Most desirable of dried because all, a BRT system is flexible rather than fixed. Should technology make such of technology” a system obsolete or impractical in a decade (or less), the infrastructure for a BRT can be adapted or returned to its original purpose. Bus rapid transit to Oakland can’t Pittsburgh’s BRT route has the be the only solution to connecting advantage of linking two of the region by transit. A bold vision of Pennsylvania’s largest employment transit can’t be “future proofed” but centers that are currently growing technology can help with making the towards each other organically. From most of the solutions that are available. Oakland’s gateway to the eastern edge Point Park University of Downtown is less than 20 blocks, “The options are different now than Center for Media Innovation and the bleeding edges of development they used to be. It’s not so cut-and- in both neighborhoods are but ten dried because of technology,” says blocks separated and closing. Indeed, Dobbins-Bucklad. “In the past if you LANDAU BUILDING COMPANY Uptown has already created an wanted to take a step forward In RELATIONSHIPS I REPUTATION I RESULTS economic development model called transportation you went light rail. Now the Pittsburgh EcoInnovation District, that’s not the only option. We have the which is meant to marry the grass ability to dynamically route vehicles. We 724-935-8800 I www.landau-bldg.com roots sustainability/energy movement have autonomous vehicles. Common with the job creation of technical shared mobility is now possible. There are private operators working to fill the

20 DEVELOPING PITTSBURGH | Fall 2018 gap. They are able to do that because of technology like real time information and location-based services.”

“Optimization of routes used to be one of the most complicated and resource-intensive things you could General Residential Contractor ask a computer to do. Now we do it in with an extended mission to promote employment seconds with a map app on the phone! of area residents and MWBE subcontractors. That’s what technology lets us do,” she continues. “That’s what is changing our SKYLINE TERRACE ability to think about how we can stitch a lot of different things together so that it’s not a one-size-fits-all solution. We can create a very flexible demand- driven solution that is lighter weight on capital investment.”

Rail-Volution, a national transit movement and no-profit organization that helps people and institutions build livable cities, recognizes that there is something going on in Pittsburgh. The organization’s annual conference will be held in Pittsburgh from October Photo: Charles Uhl 21-24. Pittsburgh’s development community has been supportive of THE OVERLOOK Rail-Volution and the conference will devote part of its time to educating attendees about what transit projects are going on around the U.S. and the impact of those projects.

“Rail-Volution is the premier transit and livability conference in the country. This is the first time Pittsburgh has had the opportunity to host, as the conference is usually held Photo: Massery Photography, Inc. in cities with larger transit systems PLEASANT RIDGE including San Francisco, Denver, or Chicago,” says Lynn DeLorenzo, principal at TARQUINCoRE and co-chair, sponsorship for Rail-Volution Pittsburgh. “Included will be a ‘Regional Day’ that will give the local Pittsburgh market a chance to participate in the discussion on the top transit and mobility priorities for the region with Photo: Charles Uhl experts providing innovative ideas and solutions to challenges cities CRESCENT COURT face today. Given the difficulties with funding transportation today, we all need to be a part of the conversation as well as the solution.”

Finding and funding a transit vision for the future is fraught with difficulties. Perhaps the plans for the Pittsburgh International Airport are an example of the difficult choices regions face. Photo: Charles Uhl Mistick Construction | 1300 Brighton Road | Pittsburgh, PA | 412.322.1121 www.mistickconstruction.com

www.developingpittsburgh.com 21 Allegheny County Airport Authority world class facility again and people “The money shouldn’t matter,” asserts CEO Christina Cassotis has created one should be able to reach it using fast Chip Desmone. “Figure out what the best of Pittsburgh’s biggest public sector public transit. The question should solution would be. Make that happen and success stories, more than doubling not be which of these two important then go get the money for it.” the number of direct flights from PIT in initiatives is more important but rather just a few years. Although the airport how do we fund the completion of Ron Tarquinio sums up his still gets good reviews, Pittsburgh both. feelings about future economic International is a pre-9/11 facility that opportunities by referring to a was built as a hub for an airline that A bold vision isn’t practical or current high-profile opportunity. no longer exists. The Airport Authority conservative, two qualities that has shown vision in backing a $1.2 Pittsburghers like to feel they possess. “If you can’t get from here to there, you billion terminal modernization program Looking at what moves growing vibrant can’t develop. Think about the Amazon but voices of caution have also been cities, however, it is difficult not to opportunity. If Pittsburgh loses, it won’t suggesting that a better investment notice that a well-connected transit be because of quality of life. It will be would be a transit connection to the system is one of the main ingredients because we can’t get people from one airport. The airport should become a Pittsburgh is missing. place to another without public transit,” he concludes. DP

22 DEVELOPING PITTSBURGH | Fall 2018

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Babst_Construction_DEVPGH_8.625x11.125.indd 1 8/16/16 6:52 AM Development Project

The Ashby at South Hills Village

onstruction wrapped up in July different about the Ashby property is driving occupancy and sustainable on the $41.7 million Ashby at its integration into the Port Authority rents,” notes Nathan Lutz, director at CSouth Hills Village Station, a of Allegheny County’s (PAT) South Hills SunCap. “And even though it’s a mature 300-unit apartment complex developed Village light rail station and parking market, you can quickly rattle off the by a partnership of Massaro Properties, garage. Ashby at South Hills Village few apartment projects that have been Atlanta-based The Dawson Company Station is the first suburban transit- done there. There was Lincoln Pointe and SunCap Property Group. The oriented development in Pittsburgh. 25 years ago, then the Torrente and project began leasing its first units at the Massaro Dawson developed the now the Ashby.” beginning of 2018 and has performed property, which sits across the street above expectations. from the South Hills Village Station, The project is the first to be after responding to a request for successfully executed by PAT. It Ashby at South Hills Village Station is proposals from PAT in September 2012. was the opportunity to create such an upscale four-building apartment The following year, SunCap Property a partnership that attracted the complex with a community building, Group joined as co-developer and developers’ interest. large swimming pool and lots of capital source. lifestyle amenities. That hardly makes “To be part of a team that did the first it unique among new multi-family “The South Hills is clearly a built-out of this type of suburban transit-oriented products delivered in Pittsburgh market but the transit-oriented development in Pittsburgh was very during the past five years. What is development means a lot relative to exciting to us,” says David Massaro,

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26 DEVELOPING PITTSBURGH | Fall 2018 president of Massaro Properties. Dawson. “If the authority sells the get approved by the Federal Transit “We were also interested in being land it has to give the proceeds to the Administration. There was much able to help the Port Authority take federal government. To the extent more involved in justifying all the an underutilized site and make it an that it can lease the land and increase economics and getting the contract economic development driver. We ridership, a transit authority meets its language needed for approval to do looked forward to making a project federal mandate and adds revenue over the land lease.” that was an economic benefit to the and above what it gets from fares.” taxpayers, the residents and the Port Some of the three years of Authority. It was a great location and While the land lease can be an obstacle preconstruction were spent satisfying there hadn’t been new product in that for some developers – the process is the FTA approval process but the arc area for some time.” cumbersome – there are advantages of the project’s development was also that make the arrangement attractive. slowed by an intentional rethinking of The South Hills Village Station had the property’s design. The Ashby would some limitations to transit-oriented “It’s a good deal for the developer too be among the first new apartment development. The station is the end because you don’t have to have as projects delivered in the Bethel/Upper of the light rail transit line and is much upfront capital expense,” notes St. Clair submarket and the developers located on the Bethel Park/Upper St. Pope. “We’re talking hundreds wanted to ensure the quality of the Clair border, where commercial land of thousands of dollars instead of project matched the expectation of the uses aren’t very flexible. Moreover, tens of millions.” market. Upper St. Clair, in particular, agreements between PAT and Simon has a predominance of single-family Properties, which owns South Hills Getting through the bureaucratic properties, so the developers took time Village, prohibited retail and dining process of satisfying the Federal Transit to better understand who their renter uses that would be competition Administration (FTA) on the 110-year would be. Pope says that experience with the mall’s tenants. For Dawson land lease was more difficult than had taught Dawson that proximity to Company, however, building executing the same kind of lease with a transit station wouldn’t apartments in proximity to transit a local government or private entity. ensure occupancy. stations was something with which While Dawson had experienced how it was comfortable. tedious the process of crossing “T’s” “We’ve been doing transit-oriented and dotting “I’s” could be, its local development around the country for “We have done a number of projects partner had not. about 15 years. We’ve come to the like this. Transit-oriented development conclusion that transit is necessary but provides great operating revenue “The biggest challenge was dealing not sufficient. The development has for the transit authority by leasing with the whole transit administration to make sense on its own,” says Pope. underutilized commercial real estate,” process and what it took to enter into “We built a quality product at the Ashby. explains Bailey Pope, senior vice a land lease with the Port Authority,” We have spacious apartments, high- president design & construction, for Massaro recalls. “It was not easy to quality finishes and appliances, and get everything together in order to

www.developingpittsburgh.com 27 top-of-the-line amenities. That’s what just Downtown commuters, but that and fairly flat but there were a few makes a good project.” access to the train makes it easy for issues that arose from working adjacent residents to get to Pittsburgh’s cultural to an existing transit system. Pope Lutz notes that SunCap plans to amenities without driving. And roughly recalls that extending the utilities to the keep Ashby in its portfolio and made half of the eventual residents will have site caused some indigestion for PAT. decisions about the project that leased spaces in the PAT garage. With reflect that. a bridge connecting the garage to half “We had to cross under the light rail the buildings, residents will be able to tracks with our utilities. Port authority “We made choices about the go directly from their parking space to engineers don’t like anyone getting construction that were going to cost their building. near their tracks,” he chuckles. “You us more – the amount of masonry work through these things.” being used, the level of finish and As planning for the Ashby at South amenities – because we intend to Hill Village Station wrapped up, the To Kris Volpatti, senior vice president hold the property,” he says. “It’s an infill partnership worked with Massaro’s for lead lender Key Bank, the execution project but it’s also clearly suburban. If construction company, Massaro of the project was notable. you look at other urban [TOD] projects, Corporation, but the team was Ashby competes on square footage unable to come to terms that were “All of the parties worked together and amenities, but the floor plans and agreeable. The project went out to a on the issues – there are always sense of home are more suburban. We select group of contractors for bids issues – very well,” she says. knew we were competing for the urban in spring of 2016. From that process, “During construction it’s all about renter in a suburban setting.” understanding the kind of relationship

Among the Ashby’s amenities are Rycon Construction Co. was awarded that’s needed to execute. I think common area lounges, a large the contract to build the apartments. SunCap did that very well.” community building and swimming Including all the site work, the “Rycon did a fantastic job of getting pool that has an outdoor kitchen and construction took about two years the project done on schedule and plenty of seating. The fitness center is to complete, with the first building on budget. It’s a 6.4 acre site for 300 larger than average and has upgraded delivered to rent at the end of 2017. equipment, and an on-demand apartment units. It wasn’t an easy studio that allows residents to call up Pope recalls a smooth construction construction process,” says Lutz. video classes. There is a dog park. process, noting that Dawson had Volpatti lives near the Ashby and said The Ashby’s location is an additional to learn quickly about Pittsburgh’s she had concerns about the noise that amenity, as residents have South Hills interesting topography, geology and the trains would produce for residents Village next door, and Giant Eagle, weather. The PAT parking garage has a living closest to the tracks. She recently Whole Foods, Trader Joe’s, and The 20-foot deep basement level, meaning visited the apartments and reports Fresh Market within one mile’s drive of Rycon had to take care in its excavation that the windows chosen for the units the complex. and foundations. There were some were so well-insulated that she didn’t pyritic soils, which was new to Dawson, notice the sound from two different Of course, the proximity to the light but normal for a Pittsburgh-based light rail cars that passed by. She says rail station and parking garage are construction team. The site of the that a visit to the property also allayed built-in amenities. Pope says that buildings was previously a parking lot the first year’s renters haven’t been any concerns about the demand for

28 DEVELOPING PITTSBURGH | Fall 2018 apartments located by a transit station. “We’re excited to be part of the project say about the project team but called in Pittsburgh. We’re happy to help out the public partner for special praise. “When I drove by there every day I deliver a transit-oriented development wondered who would want to live on for the Port Authority. They have “The Port Authority was fantastic in top of a garage,” Volpatti asks. “Once struggled to get one done so we’re putting this together. They helped you’re inside it’s like an oasis. The happy to have delivered,” Pope put together a ground lease that common rooms and amenities are just concludes. “I was up in Pittsburgh was financeable,” he says. “It’s a big beautiful.” recently looking for our next deal. organization but they were very We think there’s a lot of opportunity responsive. We talked to the Port The lease-up of the Ashby at South Hills for apartments in a number of Authority once or twice per week Village Station thus far validates the neighborhoods.” during construction. We’re adjacent to design and care taken to build a high- their garage so there is a lot of ongoing quality property. For Bailey Pope, this SunCap’s Lutz also lives near the dialogue about maintenance issues for first foray into Pittsburgh produced a project, on land that has been in his the Ashby and the garage that have to project that was successful for Dawson family since the 1800s. He jokes that be coordinated. They are responsive Company. He says the pleasure that being a Bethel Park neighbor made in a way that I never expected from a the other partners – SunCap, Massaro him a first responder for a lot of the huge public authority.” DP Properties and the Port Authority project’s issues but he’s excited to see – have with the project adds to the the project working so well for the satisfaction with the property. community. Lutz has good things to

DEVELOPMENT TEAM

Massaro Dawson Group...... Co-Developer

SunCap Property Group...... Co-Developer

Key Bank...... Lead Lender

LGA Partners...... Master Planner

Desmone Architects...... Architect of Record

Langan Engineers...... Civil Engineer

LaQuatra Bonci Associates...... Landscape Architect

Rycon Construction Co...... General Contractor

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ariffs and inflation. Nine years Private personal investment and expect continued economic growth into a steady, if unspectacular, residential fixed investment were the over the next 12 months, with most T economic expansion, two main drags on GDP. panelists anticipating inflation-adjusted significant threats to continued growth gross domestic product— real GDP have emerged. As of summer 2018, Economists dissecting the report found growth—to exceed two percent. Labor neither the impacts of tariffs with U.S. concern in the fact that increases in market conditions are tight, with skilled trading partners nor the steady rise of private individual investing and savings labor shortages driving firms to raise prices present an imminent danger to appear to be tied to the short-term pay, increase training, and consider the economy (in fact, most forecasts for impact of the tax changes and were additional automation.” growth are robust into the fall.) But, for propped up by increases in personal the first time since the financial crisis, credit at higher rates. The tax act has Among the key responses from the 98 there are trends that could prove to slow incentives for continued business NABE member panelists were that 58 growth and make commercial real estate investment, adding to hopes that percent reported rising sales, while only less desirable. According to most of the the momentum from the second eight percent reported falling sales. The data and sentiment on the economy, July survey was the fourth consecutive however, conditions are on the upswing. quarter that the share of panelists “These employment reporting higher sales had increased. Those looking at the current state of NABE creates a Net Rising Index – the the economy were encouraged by the trends have been percentage of panelists reporting rising Commerce Department’s first estimate sales minus the percentage reporting of gross domestic product (GDP) for good for Pittsburgh’s falling sales – that came in at 50 in April, May and June. July, the highest in four years. Some commercial real 65 percent of panelists report that The July 27 estimate of second quarter estate market their firms are not adjusting hiring and GDP growth precisely met economists’ investment plans due to the 2017 Tax expectations of 4.1 percent. The fundamentals, helping Cuts and Jobs Act, and 67 percent Commerce Department also revised its reported that the more aggressive trade first quarter numbers up to 2.2 percent. to keep retailers policies of the Trump Administration Many narratives about the second were having no impact on hiring, quarter GDP numbers highlighted the healthy, office investment, and pricing. concerns about the sustainability of buildings fuller, and That percentage decreased to 37 the expansion or nit-picked the details percent of respondents from goods- to find components of GDP that were industrial demand high.“ producing firms. less than healthy. The reality is that 4.1 percent quarter-to-quarter growth At the root of the soaring optimism means that the economy was healthy quarter will carry into the third quarter. about the economy are the lower from April through June. In fact, Forecasts for the full year were tax rates and loosening regulatory without an unusual increase in inflation upped to the 2.8 to 3.0 percent range, environment. While the former has and unexpected decline in inventories although those forecasts also anticipate been shown to have had a negligible – a result of preemptive response to falling GDP growth rates as the impact on job creation, the latter has threatened tariffs – the growth in GDP year unfolds. provided the certainty that businesses would have been significantly higher. seem to have needed for expansion. What pessimism exists about future U.S. employers have quickened the Business investment was by far the GDP comes from the expectation of pace of hiring in 2018, averaging headline of the report. Spurred by tax declining exports due to trade disputes 206,000 new jobs per month, reform and growing confidence in the and tariffs, and the personal balance compared to 173,000 per month in near-term regulatory environment, sheets of US consumers. 2017. That surge in job creation has businesses unleashed their pushed unemployment down to four pocketbooks, spending 7.3 percent The National Association of Business percent or less and has encouraged more in the second quarter. This Economists’ (NABE) July Business a significant share of those who overshadowed a four percent jump in Conditions Survey found that U.S. were marginally employed or no consumer spending and a 3.5 percent corporations were as bullish on the longer looking for work to rejoin increase in government spending, economy as at any time since January the workforce. Through July, more either of which would have led the 2014. NABE Business Conditions Survey positions remained unfilled than there story of growth in another period. Chair Sara Rutledge, an independent were applicants for the positions. Manufacturers and farmers pushed real estate economist and data to hike sales to China ahead of tariffs, science research fellow at StratoDem The same has been true for the which boosted exports. Analytics, noted that, “All panelists regional economy, which has begun to

www.developingpittsburgh.com 31 desired effect on the occurred in products and materials European Union. – like steel and aluminum – that will Of greater concern is be affected by tariffs; however, some the trade dispute of the other spiking materials – like with China. fuel, drywall and lumber – are not impacted by tariffs. Pent-up price At midnight on July 6, pressure, opportunities for higher the U.S. implemented profits, and higher demand than supply 25 percent tariffs on are influencing the inflationary trend in the first of $50 billion products not involved in trade disputes. in Chinese goods. The actions drew June’s inflation report also saw the an immediate and Consumer Price Index (CPI) rise to 2.9 equivalent response percent. The rise was exacerbated by from the Chinese. higher energy prices, but core CPI also With threats of tariffs rose by 2.3 percent. Core CPI is meant on an additional $200 to gauge inflation exclusive of the more Growth in GDP during the second quarter of 2018 boosted confi- billion (and ultimately volatile energy and food categories, but dence that the U.S. economy may be cycling up to growth in ex- $500 billion) in consumers do not get to avoid paying cess of three percent again. Chinese goods, for these more volatile items and June’s the administration inflation overall outstripped wage see monthly gains in employment of has signaled a growth by 0.2 points. That’s a trend that at least 10,000 jobs for more than one willingness to engage in a trade war cannot continue if an economy driven year. Although the rate of employment with exemptions for industries that are by consumer spending is to grow. growth remains modest – coming based in states that supported Donald Should CPI continue to trend ahead in between 1.0 and 1.4 percent most Trump’s election and Republican of wage growth, pressure will increase months – there are similarly more Congressional candidates. There will to raise wages faster. In a tight labor openings than applicants in most be a number of industries and goods market, such pressure could further industries in Western PA. It’s worth where exemptions won’t be possible accelerate wage inflation. noting that the job gains are net of or desirable politically, and prices will the growing pace of retirements go up significantly if the tariffs remain A related consequence of higher- among Pittsburgh Baby Boomers. This in place for long. This is especially true than-expected inflation will be a more demographic trend has helped push for the construction industry. For U.S. aggressive response by the Federal unemployment in the seven-county consumers and businesses, a Reserve Bank on interest rates. In an metropolitan area down to 4.1 percent. Chinese trade war will accelerate the environment of gradually increasing inflationary pressures already working rates, hikes that are meant to tamp These employment trends have been in the market. down inflation might also tamp down good for Pittsburgh’s commercial real development. Rates that rose to levels estate market fundamentals, helping to The prospect of tariffs was part of the above those of the mid-2000s would keep retailers healthy, office buildings justification for a dramatic jump in also create stress on renewing lines of fuller, and industrial demand high. producer prices for construction in May credit and maturing commercial loans, and June. A Notwithstanding the upbeat news, measure of all the trend for inflation and the potential the inputs into disruption that tariffs represent for construction, U.S. trade present downside risks to except labor, the economy. This is particularly true the Producer because of the downstream influence Price Index (PPI) of rising inflation on interest rates for construction and consumption. leaped 9.6 percent year- The tariffs threatened by Donald Trump over-year in have had little time to be measured, May and 8.1 especially since the president has percent in June. walked back a number of the tariffs in PPI overall rose the face of political pressure. There is 3.4 percent also evidence that tariffs threatened year-over-year. on long-time U.S. allies and trading Some of the partners may have been meant as an biggest price opening in an ongoing negotiation. increases This tactic, if intentional, has had the

32 DEVELOPING PITTSBURGH | Fall 2018 rising. The concern is that spending will begin to decline for this majority of workers in the coming quarters. An unexpected shock, such as higher gas prices or inflation, will exaggerate the problem.

As the year bends towards mid-term elections, the likelihood is that elected leaders and the Long-term forecasts for the U.S. economy ignore recent spikes in GDP and inflation. Trump Administration which in turn would make pro forma Those earning in the top 40 percent will work to limit the forecasts unworkable. An inflationary have not reduced spending but have chances of an unexpected shock. cycle would be good for property increased savings, while the savings By backing off trade confrontations prices, but not much else. rate of the rest of US consumers has and allowing the momentum of fallen to 2005 levels. strong consumer and business More rapid inflation will add to growing confidence to pull the economy concerns about the balance sheet of This increased spending has come along, the White House could take the middle-class and lower middle- from greater access to credit rather full advantage of the tail winds of a class worker. Recent data by Oxford than increased spending power from growing economy. The interrelated Economics shows that consumer income. With the recent rise in gasoline consequences of accelerated inflation spending since mid-2016 has been prices, in fact, most lower-income should be sufficient concern for the driven by consumers in the lowest 60 earners have seen take-home pay administration to let a winning percentile of earners, a significant shift decline. Delinquency rates in credit hand ride. DP from the earlier years of the expansion. card and automobile loans are

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ompeting factors have allowed of the metro area resident continues Duquesne University, and Robert Morris the office market in Pittsburgh to to decrease as the education level of University – are the driving forces C stay stable and have prevented its residents rises. The labor force has behind a deep, and ever growing, it from moving to more favorable shrunk, as 16,100 are no longer working talent pool. Carnegie Mellon University conditions. On one side, we have or attempting to find work. The largest retains national notoriety in the areas seen unemployment in the area drop increase in work is in the construction of robotics, computer science, and to 3.6 percent (20 basis points below industry, which outpaced everyone at artificial intelligence. the current national average) and the five percent growth. With commercial conversion of office buildings into building in a boom phase, construction While the city is still awaiting Amazon’s residential dwellings, both of which companies added 2,700 workers, decision regarding HQ2, making the should increase demand. On the boosting total employment in the area short list can have its own benefits. If competing supply side, the market has to 61,600. Amazon ultimately chooses another not created the number of new jobs city to call its second home, it should anticipated. Coupled with the continued Google, Uber, Argo AI, and Amazon not be overlooked that Pittsburgh has floor plate optimization and increased continue to show interest in already put a preferential treatment co-working space, overall office vacancy expanding their presence in the Steel plan in place for a larger employer. rate continues to hover near 14 percent. City. Amazon, regardless of HQ2 Several larger opportunistic employers announcement, is expanding its may look to capitalize on the void left Economic Overview existing office by 22,000 square feet in cities that do not ultimately win the and adding 125 new tech jobs. With Amazon crown. Although Pittsburgh has not yet a total of a $2.7 billion price tag, eight reached its anticipated growth, new hospitals are close to breaking Sales investment in the area continues to ground or currently under construction. climb. Anchored by Carnegie Mellon The $6 billion Shell plant is expected to In sales, we have seen the following University, health-care, technology, be completed in 2021. since the beginning of March: finance, and tourism, the area continues to add jobs across industries. Looking Ahead The 155,000 square foot 420 Blvd Over the past year, Pittsburgh added of the Allies is being sold to the URA approximately 11,700 jobs and wages Pittsburgh stands on the precipice of for $27.5 million with an anticipated rose by four percent year over year. turning into an economic powerhouse. renovation cost of $12 million. While population metrics show the World class universities located in the city losing residents, the average age area - The University of Pittsburgh,

www.developingpittsburgh.com 35 We continue to see the cannibalization 319 Third Avenue, which have been Leasing of class B and C office space being converted from vacant office to redeveloped into residential dwellings. residential establishments. As far as trends, Pittsburgh is seeing The Commonwealth building at 316 a migration from the suburbs back Fourth Avenue in downtown Pittsburgh For the area we are seeing to the city. Currently, Bombardier is is reported to be under contract with capitalization rates between 7.6 percent establishing a new 90,000 square foot Connecticut based JCS Capital LLC. and 9.0 percent, while price per square office in the strip at One Waterfront The plan calls for conversion of the foot numbers are coming in near Place, while it markets its existing former office to a 150-unit apartment around $60/square foot for vacant 176,485 square foot facility at 1501 building. The Commonwealth space and $148/square foot for a Lebanon Church Road. And, Philips would join other office buildings on stabilized asset. confirmed it was taking 200,000 square the block, 306 Fourth Avenue and feet in a new office building coming to

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36 DEVELOPING PITTSBURGH | Fall 2018 “The next few quarters could define the Pittsburgh office market for years to come. The addition of large employers, coupled with expansion of the technology industry, could prove to be a juggernaut for office needs.” VALUED Bakery Square. Approximately 13 percent of all office space taken the in the city since 2015 is from companies RELATIONSHIPS moving from the suburbs back into the city.

Preleasing of new assets is also strong. Approximately ... built on our commitment 750,000 square feet of office is currently under construction, with available information indicating that 41 percent of the to client service. space being preleased. One of the most notable projects is 3 Crossings, at 131,000 square feet. 50,000 square feet has been preleased to Argo AI, showing the continued expansion of the self-driving car industry in Pittsburgh. • Construction Across the river, the German software company SAP will be • Corporate & Business Law housed in the 172,000 square foot SAP center, which broke ground this spring. Walnut Capital has plans for a nine story, • Creditors’ Rights & Bankruptcy 328,000 square foot addition to Bakery • Employee Benefits Square, despite some setbacks in the permitting process. • Employment Law In leasing, vacancy in trophy assets and class A space is historically low, while class B spaces continues to see • Energy, Utilities & Mineral Rights difficulty in filling vacancies. In CBD, Class A space is • Immigration approaching $30 a square foot with vacancy rates moving toward eight percent. While Class B space is boasting • Insurance Coverage a vacancy rate over 20 percent and recent rent rates • Intellectual Property often being seen between $12 and $16 per square foot. Co-working space is now estimated to account for over • International Law 400,000 square feet of office space in the area. The availability of co-working space is likely to put even more • Litigation & Dispute Resolution pressure on Class B space as it presents itself as a viable • Private Clients alternative to budget conscience companies. • Real Estate & Lending Closing • Sustainable Development The next few quarters could define the Pittsburgh office market for years to come. The addition of large employers, coupled with expansion of the technology industry, could prove to be a juggernaut for office needs. However, if the area is unsuccessful in adding to its payroll, we may see the delivery of new assets and workplace efficiency cause the market to soften, especially in the Class B asset range. DP

Bryan J. McCann Advisor Henry W. Oliver Building SVN | Three Rivers Commercial Advisors 309 Smithfield St. Ste. 501 Pittsburgh, PA 535 Smithfield Street, Suite 1300 15222 Pittsburgh, PA 15222 (412) 535-8061 412.456.2800 | muslaw.com [email protected]

www.developingpittsburgh.com 37 We deliver

G R E A T experiences

www.mascaroconstruction.com INDUSTRIAL MARKET UPDATE

he manufacturing sector shows construction starts signs of stabilization for the year-to-date lag T first time in many years in Q2 those of the same 2018. Productivity enhancements period 2017, several and substantial capital investments new developments helped drive growth within the sector were announced. up 2 percent over the same period Among them, the 2017. According to the Allegheny Elmhurst Group Conference’s Business Investment has proposed Scorecard, manufacturing and advanced a $25.5-million, manufacturing were second only to 121,800-square- information technology and robotics in foot flex/office capital investment and job creation in building for the 2017, posting $165 million in investments final brownfield and 1,335 new jobs. Watt Fuel Cell parcel at Pittsburgh Corporation, based in Mount Pleasant, Technology Park Westmoreland County, was the top in the Oakland mezzanine level, now occupying fundraiser in Q2 2018 with $10.7 million submarket. The flex/office model has 74,000 square feet. Additionally, Al. in investments. Pittsburgh posted one of proven successful for a number of Neyer, LLC plans to construct two its lowest unemployment rates in recent developers in the region. The Regional single-story warehouses at Clinton history in Q2 2018 at just 4.1 percent, Industrial Development Corporation Commerce Park. Expected to be while adding nearly 13,000 new jobs to has been remediating and developing between 50,000 and 75,000 square the region during the same period. old steel mill sites into hybrid office feet upon completion, these buildings and R&D spaces for a variety of will join two 400,000-square foot fully- Developers Pursue Flex/Office Model tech companies, most recently at its leased distribution centers already on in Response to Tech Tenant Demand Lawrenceville Technology Center in the 10-acre site. the Greater Downtown submarket. With more than 5.2 million square The Tech Forge, which is a mix of Construction Activity Centers on feet (msf) of industrial leasing activity office and high-bay space, just landed Build-to-Suit Projects recorded over the past 24 months, it new-to-the-market Aurora Innovation, was no surprise that net absorption an autonomous vehicle technology New build-to-suit project in Q1 2018 was nearly double that of company as its latest tenant. Aurora announcements dominated the news the same period 2017. Few speculative will occupy 40,000 square feet at the cycle in Q2 2018. Scannell Properties projects remain vacant within the property and joins Caterpillar, who broke ground on a 450,000-square- Pittsburgh region, and though recently expanded into the property’s foot distribution facility at Starpointe Business Park in Washington County for a user rumored to be affiliated with Shell, while Niagara Bottling Company purchased a 42-acre site in Findlay Industrial Park, Parkway West submarket, on which to construct a 460,000-square-foot water bottling and distribution facility. Additionally, Vollmer, a tool-machining company, is building a 29,300-square foot service and distribution facility on a 5.85-acre parcel at RIDC Park West.

On the speculative front, Brooktrout Development broke ground on the first building in its 23-acre Brooktrout Business Park in McKees Rocks, Parkway West. The developer will occupy the first building but intends to build up to 20 additional buildings of approximately 12,000 square feet each. Schreiber Industrial Park in New Kensington, Westmoreland County,

www.developingpittsburgh.com 39 is the latest speculative industrial North Submarkets Post Lowest facility in Jackson’s Pointe to be redevelopment project to launch. The Vacancy Rates in the Region developed by Al. Neyer. 70-acre, 293,000-square foot industrial park was the long-time home of Alcoa’s The North Pittsburgh/Lower Butler Outlook Aluminum Works but has been nearly County submarket was immediately vacant since its closing in 1970. The targeted by the various energy- The rise of the tech industry in the City of New Kensington purchased related companies converging on Pittsburgh market is countering the the park for $8 million in May 2018 the Pittsburgh market in pursuit of decline of the oil and gas sector, and plans to invest $12 million into Marcellus Shale opportunities over particularly within the Greater modernizing the facilities to create an the past several years, dropping the Downtown area. Overall direct advanced manufacturing center. vacancy rate within the submarket to weighted average rental rate for the just over 3.0 percent since 2012. The market rose 23.7 percent year-over-year Warehouse/Distribution Sector warehouse/distribution and flex sectors in 2Q 2018 to $8.77/NNN. Continues to Drive Leasing Activity account for approximately 20 million square feet of North Pittsburgh/Lower The industrial market will continue Pittsburgh remains a strong contender Butler County’s industrial inventory to navigate the volatile energy for regional distribution and last-mile located within 380 buildings. The market, repositioning itself as the operations, a trend confirmed with current vacancy rate for the sector is center for technology and advanced Amazon’s new lease for 70,000 square 3.4 percent with approximately 654,812 manufacturing. Expect leasing, feet at I-79 North Industrial Park in the square feet vacant and available for absorption and rental rates to see Northwest Pittsburgh submarket. The lease and 9,536 square feet available for double-digit improvements over the warehouse/distribution sector consists sublease. Year-to-date net absorption next several quarters as owners and of 87.4 million square feet (msf) of is positive 152,916 square feet with developers respond to the evolving rentable building area. Vacancy within 242,180 square feet of total leasing needs of modern users. DP the sector edged up slightly year-over- activity. Rental rates range from $5.50 year to 5.1 percent over 4.4 percent in to $14.50 for warehouse/distribution Q2 2017. At the close of Q2 2018, there with an average asking rate of $7.31/ were approximately 4.4 msf of vacant NNN, and from $15.00 - $18.00 for and available space. Year-to-date (YTD) flex with an average asking rate of leasing activity for the warehouse/ $16.50/NNN. Average rent has risen distribution market is just over half a a whopping 18.3 percent over 2017 million square feet, down more than 50 though the vacancy rate has remained percent from the first half of 2017. The stagnant at 3.4 percent during the same sector ended the quarter with positive period. net absorption of 284,466 square feet with an average asking rental rate of Aside from Elmhurst’s 60,000-square- $5.71/NNN – up 14.0 percent from the foot speculative flex project at same period 2017. Only 130,000 square 535-536 Thorn Hill Road, which is feet of new warehouse/distribution expected to kick off construction in space has been delivered to the market the second half of 2018, nearly all new YTD with approximately 65,000 square development is focused just north of feet under construction. That being Cranberry Township along the I-79 said, nearly 1 million square feet of North corridor. Smaller, multi-tenant proposed industrial development is spec projects have been announced Jack O’Donoghue, SIOR in the pipeline with potential to begin for Callery Industrial Park in Evans Principal and Executive Vice President construction upon commitment by an City while a variety of potential Cushman & Wakefield | anchor tenant. distribution facilities are awaiting Grant Street Associates, Inc. pre-lease commitment to commence [email protected] construction. Among these is 108 (412) 391-2621 Tomlinson Road, a 220,000-square-foot

40 DEVELOPING PITTSBURGH | Fall 2018 CREW PITTSBURGH'S

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FRANJO CONSTRUCTION CORPORATION 335 EAST 7TH AVENUE HOMESTEAD, PA 15120 WWW.FRANJOCONSTRUCTION.COM “To Build a winning environment CAPITAL MARKET UPDATE with Integrity, Respect and Passion to achieve �lient �a�s�ac�on” FRANJO CONSTRUCTION CORPORATION n a business cycle where fears leverage. CMBS has become more have affected that. I hoped it would about maturing “toxic” commercial competitive compared to agency have grown to absorb more of the Imortgage-backed securities debt on multifamily, and it is the only permanent financing market, but banks have (twice) been overstated and avenue in other sectors to get full- and life insurance companies are underperforming assets have outlasted term interest-only debt at moderate picking up that slack.” the market to become performing assets, leverage, or even a full-leverage the only clouds looming on the loan done. Whether it is fresh memories of the horizon of commercial real estate panic of 2008, regulations or just finance are old-fashioned rising In the current market conditions, the lenders finally learning not to repeat interest rates and caution. abundant liquidity and declining risk mistakes from the past, the capital tolerance of traditional lenders should markets of mid-2018 aren’t typical Come September, the financial crisis make the CMBS market ripe for rapid of late business cycle conditions. will be ten years old. Throughout the growth. Instead, all forecasts for CMBS Instead, banks are looking to lower intervening decade, there have been issuance in 2018 are lower than 2017. loan-to-value leverage. Life insurance echoes of the crisis that have loomed companies are resistant to doing deals over capital markets, the maturation of At $75 billion, the global CMBS market above 70 percent loan-to-value, even loans made in the heady days of 2006 in 2018 would be 25 percent lower at higher spreads. Equity and credit and 2007 that have largely liquidity remain high, as is proven to be non-events. Yet, competition for deals. But, the memories of the panic unlike in 2007 of the fall of 2008 seem to and 2008, investors haunt the capital markets. and lenders are maintaining As the business cycle gets their risk discipline. long in tooth, lenders are getting warier. This is in direct “There is a ton of liquidity. contrast to the behavior If anything, especially in of lenders in 1989, 2000 Pittsburgh, there is a shortage or 2007, when fewer deals of product,” says Mark was an incentive to lower Popovich, senior managing lending standards. In 2018, director and co-head of the more capital is in the market Pittsburgh office of HFF. There than there are projects to is still more capital chasing finance. Banks are reducing too few projects but so far leverage. Higher risk, higher lenders aren’t changing their leverage finance options, like underwriting standards.” commercial-backed mortgage securities (CMBS), are not Senior loan officers reported declining demand across all sec- “We’re seeing banks OFFICE•RETAIL•HOSPITALITY•WAREHOUSE/ attracting projects in the way tors during the first quarter. Source: Wells Fargo, Federal Re- becoming more cautious, INDUSTRIAL•ASSITED LIVING•INTERIOR/ that they did in 2007. serve Bank Senior Loan Officer Opinion Survey. especially with multi-family and hospitality,” echoes EXTERIOR RENOVATION•MULTI-FAMILY The CMBS market may Jamey Noland, director of be the best barometer for judging than the volume in 2015, and 75 underwriting for PenTrust Real Estate conditions in commercial real estate percent lower than the peak in 2007. Advisory Services. “Office and industrial lending. As has been well chronicled, A more robust CMBS market would are still seen as favorable but banks are CMBS benefitted from the naivete and allow riskier projects to find financing starting to decrease loan-to-value to enthusiasm of the real estate bubble by tapping investors with a higher limit their risk exposure.” of the mid-2000s. Unlike residential tolerance for risk. Those investors may General Contractors mortgage-backed securities, CMBS not be out there in the same numbers “There is a lot of money out there, particularly on the equity side. Equity issuances didn’t hide higher-risk assets as a decade earlier. It seems the F��� ��� ���� �������� ���� � ����� ��������� ���� among the traditional loans of the memory of the financial crisis remains is looking at commercial real estate because of the poorer returns in ��� ���������� ������� �� ��� �������. bubble; in fact, the higher-risk tranches strong among investors. of the CMBS bonds offered higher other investment sectors,” observes returns that were appealing to investors “The disappointing market is CMBS,” Powderly. “That’s a good thing for agrees Bob Powderly, senior vice me as a banker. It creates more Contact: Carl Belli - carl���ran�oconstr�c�on�co� with tolerance for commercial real estate risk. president of investment real estate for competition, but spreads have also �����ran�oconstr�c�on�co� 412-462-4371 First National Bank. “I thought CMBS improved.” CMBS is still the best option for would have returned by this time but borrowers who want to maximize maybe the risk-sharing regulations FRANJO CONSTRUCTION CORPORATION 335 EAST 7TH AVENUE HOMESTEAD, PA 15120 WWW.FRANJOCONSTRUCTION.COM

www.developingpittsburgh.com 43 Powderly likes the fact that leverage reported net looser standards on “Commercial real estate continues to is being reduced, noting that C & I loans, and credit for commercial be the preferred investment vehicle the likelihood of a correction in real estate and GSE-qualified property. for life insurance companies because commercial real estate will get higher of the additional spread that they can over the next couple of years. In part, banks pointed to increasing achieve over corporate bonds.” competition from other lending One indicator of the direction of credit sources – including non-bank entities Another factor adding to the caution trends is the willingness of banks to – as the explanation for maintaining of lenders is higher interest rates. make loans. The Federal Reserve’s first lending standards. This competitive The Federal Reserve Bank has been quarter Senior Loan Officer Opinion response should not be a threat to the incrementally raising its bank-to-bank Survey (SLOOS) was released June 5 current credit climate because loan rates by 200 basis points over the past and its results were consistent with repayment delinquency continues to three years. In 2018, the Fed is expected expectations for lender behavior late in fall across all categories except student to increase the rate four times. The a business cycle. and auto loans, both of which are well actions are a reflection of growing below the delinquency levels seen confidence in the economy and higher One surprise that came from the during the recession. As interest rates rates are giving more breathing room to SLOOS was weaker loan demand. and cyclical delinquency rise as the banks, which had been stuck with rates Loan officers saw demand falling business cycle matures further, credit near zero for almost a decade. across all the categories surveyed standards will tighten and willingness

by at least five percent, with a slight to lend will fall. The first quarter SLOOS While many people think of the Federal decline in commercial and industrial report does not reflect a market in Reserve Bank’s quarterly rate hikes as (C & I) small loans as the only which a credit cycle decline appears the bellwether for where interest rates exception. Demand for credit cards and imminent. are going, the market actually responds multi-family loans fell by almost ten more efficiently to the perceived risk percent; and government-sponsored Life insurance companies have not of lending and the relative return of enterprise (GSE) (Fannie and Freddie) reduced their appetite for commercial risk-adjusted assets. Put more simply, loan demand dropped by 18 percent. real estate, even in the multi-family investors want to get the best return Observers noted that this trend was category. possible for a risk that is within their likely to be reversed in the second tolerance for loss. That’s the reason that quarter, as businesses responded “The life insurance companies are all the 10-year Treasury bill tends somewhat slowly to the Tax Cuts and on pace or slightly ahead of pace to to be a benchmark for commercial Jobs Act in the first quarter. reach their allocations for 2018. There real estate. was a period in the second quarter that The trend in banks’ willingness to was a little slow but that has passed,” “Interest rates have been very stable make loans remained stable, with 9.2 says Daniel Puntil, senior vice president this year,” notes Popovich. “When the percent more senior loan officers at Grandbridge Real Estate Capital, Fed raises short-term rates it gets the responding more willingness than less. who noted that most life insurance headlines but most in our industry are Not surprisingly, relatively few lenders companies have told him that they focused on long-term rates because are taking measures to tighten lending have the ability to exceed their 2018 that’s what is relevant to borrowing in standards. The SLOOS data indicated allocations. At least one lender had told commercial real estate.” that underwriting was tightening in him there was no ceiling to its lending. categories of concern, specifically Popovich points out that the 10-year autos and multi-family loans, but banks Treasury bill has floated between 2.84

44 DEVELOPING PITTSBURGH | Fall 2018 percent and 3.11 percent for the last six months, even though overnight rates have risen three-quarters of a percent. Moreover, he says that other market conditions have leveled out the total cost of capital. Popovich also notes that the 10-year rate was above four percent during the frothy days before the 2008 financial crisis, making today’s “higher” rates a bargain by historical standards.

The forecast for rates largely looks for more of the same. Economists seem to be split on how much influence the Federal Reserve’s tightening will impact borrowing costs. Wells Fargo Securities predicts that the 10-year Treasury bill will drift about 50 basis points higher by the end of 2019. PNC Financial Services Group, on the other hand, expects the yield on the 10-year to rise only to 3.1 percent by 2020, figuring that market conditions will keep long-term rates within shouting distance of today’s interest rate. Morgan Stanley’s Jamie Dimon is an outlier in his prediction of a five percent 10-year yield in 2020.

“The rising tide of interest raises all B&G Breaking Ground Ad:Layout 1 7/2/14 11:58 AM Page 1 rates; however, there is really no direct impact on the U.S. Treasury yield when the Federal Reserve raises short-term rates 25 basis points. The 10-year Treasury won’t immediately go up Real Estate I Construction I Manufacturing 25 basis points in lock-step with the P. 412-227-2500 • F. 412-227-2050 Federal Reserve. However, when the www.BlumlingGusky.com 10-year Treasury goes up 25 or 30 basis points, the lenders do not reduce their spreads accordingly. You don’t get it back.” counsels Puntil.

Rising rates increase the cost of capital and push capitalization rates up. If cap rates were to begin to return to historical norms, the negative impact on commercial real estate transaction and refinancing would be significant. With inflation also growing, concerns about interest rates becoming a problem are real; however, thus far the trend for long-term rates seems Project success. to be holding. It’s what our clients do. Puntil notes that there were a couple of trends emerging that represent It’s what we do. changes in how the borrowers and lenders are looking at the capital markets.

“What is becoming a little more prevalent is the willingness to go long

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term,” notes Puntil. “Lenders are trying • Limiting the application of the to match loans to their investment HVCRE classification by clarifying portfolios. The yield curve is so flat that that loans made to acquire borrowers are looking to make long- existing property with rental term deals. We’re also seeing more income would not be subject to and more life insurance companies higher capital requirements. providing flexible prepayment options. The lenders are structuring step-down • Allowing banks to remove the terms for prepayment so borrowers HVCRE designation prior to the know in advance what the penalty end of the loan. for pre-payment will be, instead of the uncertainty of yield maintenance The provisions adding equity and provisions for prepayment. The lenders limiting the value of land contributed are now seeing the value of recycling as equity in projects were particularly their debt.” damaging in Pittsburgh, where developers more often have legacy There was a significant improvement land assets with much higher market to the regulatory environment for values than cost basis. Rolling the commercial real estate. On May 24, the more onerous HVCRE measures out Economic Growth, Regulatory Relief, of the regulations should be a benefit and Consumer Protection Act was to Pittsburgh commercial real estate. signed into law. This reform legislation Relief from regulation comes at a good includes NAIOP-supported provisions time for Pittsburgh, with an economy that ensure there is adequate capital that appears to be on the brink of availability for commercial construction another leg up. financing by revising elements of the current High Volatility Commercial Real “Equity is still flowing into the market. Estate (HVCRE) rules. Among those Two of the largest equity players in provisions to be revised are: the U.S. are looking at projects in Pittsburgh,” says Noland. “Institutional • Allowing commercial borrowers players are taking note of Pittsburgh as to use the appreciated value of an up-and-coming secondary market contributed land, rather than because equity spreads are getting the original cost as under the squeezed in other cities. Pittsburgh has prior rule. been behind the curve over the last five years in terms of population growth and job creation. I think we’re seeing that growth beginning.” DP

46 DEVELOPING PITTSBURGH | Fall 2018 LEGAL/LEGISLATIVE LOOK

New Accounting Standards for Operating Leases to Take Effect in 2018

By Marcy E. Hamilton, Esq. and Laura M. DeGeer, Esq.

n February 2016, the Financial What are the key changes? When will this take effect? Accounting Standards Board (FASB)1 Ireleased accounting standards update Both finance leases and operating For public companies, the standard will ASU 2016-02 in an effort to eliminate the leases, including subleases, are take effect on December 15, 2018. For guesswork involved when calculating governed by ASU 2016-02; however, all other organizations, the standard will a company’s lease obligations. Set to certain leases are excepted, for take effect for fiscal years beginning take effect for some in December 2018, example: (i) leases to explore for use after December 15, 2019, and for the standard is intended to improve of minerals, oil, natural gas, and similar, interim periods within those fiscal financial reporting regarding leasing non-regulative resources, (ii) leases of years beginning after December 15, transactions, thereby providing investors biological assets held by a lessee, (iii) 2020. Early application is permitted with more transparent, comparable leases of inventory, (iv) leases of asset for all organizations. information about lease obligations held under construction, and (v) leases of by companies and other organizations. intangible assets. Under ASU 2016-02, Organizations and companies are a lessee is required to recognize an permitted to transition to the new Who is impacted? asset on its balance sheet and take standard by either full retrospective on a liability for the present value application, or by a cumulative Previously, lessees were not required of its future lease payments. A lease catch-up methodology. to recognize operating leases on their is classified as a finance lease if it balance sheets, meaning companies transfers substantially all the risks and Full retrospective application involves leasing assets from a third party were rewards incidental to ownership of an restating all leases as if they had always not required to show the rent payment underlying asset. Otherwise, the lease is been accounted for under the new obligations for these leases in their classified as an operating lease. standard, with the difference between records. ASU 2016-02 affects all asset and liability at the transition date companies and organizations that lease An asset is typically identified by being changed to retained earnings. assets including real estate, airplanes explicitly specified in a contract but can and manufacturing equipment. By also be identified by being implicitly Under the cumulative catch-up requiring more disclosures related specified at the time the asset is made methodology, all finance leases to leasing transactions, ASU 2016-02 available for use by the customer. continue unchanged, while covered ends what the U.S. Securities and However, it is important to note that operating leases are converted to Exchange Commission and other where a supplier has a substantive right finance leases with initial liability and stakeholders have identified as one of of substitution throughout the period of asset equal to the present value of the the largest forms of “off balance sheet” use, a customer does not have the right remaining rent. accounting. to use an identified asset. A lease for a Prior to the effective date, developers specific, identified parcel or portion of with third-party lease contracts ASU 2016-02 applies to all leases. A a parcel of real property does not give should consult their legal teams for contract is, or contains, a lease if it rise to a lessee’s right of substitution. conveys the right to control the use of advice on amending current and an identified asset for a period of time A lessee can elect not to recognize future lease agreements. DP in exchange for consideration. Control a short-term lease (meaning a lease Marcy E. Hamilton is a partner in Meyer, Un- is conveyed where the lessee has both of less than 12 months); however, kovic & Scott’s Real Estate & Lending group. the right to direct the identified asset’s if a short-term lease is extended for She can be reached at [email protected] or 412-456-2528. Laura M. DeGeer is an use and to obtain substantially all more than 12 months, the lessee must associate in Meyer, Unkovic & Scott’s Real economic benefits from that use. recognize the lease as of the date of Estate & Lending, Corporate & Business Law, the change in circumstance. Employment Law & Employee Benefits, Im- migration, and MUSolutions practice groups. She can be reached at [email protected] or 412-456-2845.

1The FASB is an independent, nonprofit, private-sector entity that establishes financial accounting and reporting standards for entities that follow generally accepted accounting principles (“GAAP”). More on the FASB can be found at www.fasb.org/facts.

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Pittsburgh’s Multi-Family Market Reloads While Other Cities’ Slow

Edge 1909, the first phase of NRP’s Riverfront development, is seeing brisk lease-up of the first of its 364 units on the market. A second phase of 442 units was recently approved by Pittsburgh Planning Commission.

on’t count the apartment boom in a row, permits for multi-family in bubble created many more renters out just yet. Of all the segments Pittsburgh should top 2,000 units. The out of homeowners, sending demand Din the construction market, economy of Western PA, and sluggish for apartments higher. That growing multi-family has proven to be the new home construction, are buoying demand, and the lending shakeout most resilient in this business cycle. demand for multi-family, which that followed the financial crisis, boomed across the country when the made multi-family virtually the only Two years after economists predicted housing market went bust. property type that developers could a slowdown in the market, and three get financed at the beginning of the years after lenders were saying they The Great Recession started after a decade. And the icing on the cake was were tapping the brakes on apartments, housing bubble of epic proportions. that the emerging younger generation the multi-family sector in the U.S. has The particulars of the credit crisis favored renting over owning for a leveled off. that followed set up the apartment variety of reasons. market for a boom cycle. First, Through June 30, multi-family easy credit in the Clinton and Bush Apartments have historically been construction is off steeply in administrations drove demand for a category that has been subject Pittsburgh. The decline is likely to home ownership, keeping demand to overbuilding and retrenching. be a temporary one, as a handful of for new apartments artificially low and Often driven by downturns in larger developments are expected to discouraging development. Second, the economy, developers built begin by year’s end. For the sixth year the deleveraging that followed the apartments throughout the 1950s

www.developingpittsburgh.com 49 A Certified DB/DBE/WBE Surveying for Real Estate & Site Development and 1960s to accommodate the rapid growth of cities and the Construction Management & Inspection western U.S. Deregulation of savings and loans in the 1980s created a bubble in apartments, from which the construction market still hasn’t 100 Ryan Court, Suite 9 recovered. In fact, one of the myths Pittsburgh, PA 15205 of the current boom is that recent volumes are historic highs. The data says otherwise. 412-276-2027 Since 1964, construction of residential structures with five or more units www.rig-consulting.com has peaked during cycles as high as 906,000 units (1972), 462,000 units (1978), and 576,000 units (1985). When the latter cycle cratered with the S & L crisis, apartment construction fell to 137,900 units in 1991 and never reached the historic average of 359,000 units again until 2015. That year saw the peak of the current boom top out at 385,000 units. Prior to 2015, there were only seven years in which at least 300,000 units of multi-family were started. In many ways, the current growth cycle is more of a reversion to the mean than a response to future demand. In that light, the traditional assumptions about demand may not hold.

Pittsburgh is a market that has seen a similar pattern of recent construction but the comparison to historic norms is quite different. Except for a flurry of activity in the late 1990s – most of which was driven by Nationwide Insurance as an investor – the Pittsburgh market has been without new construction for decades. Since 2000, when there were 1,300 multi- family units started, there was only one other year when at least 1,000 units started construction until 2013. The average number of units started in those 14 years was 731. The average from 2013 to 2018 was 2,451 units.

According to Lynn DeLorenzo, principal with TARQUINCoRE LLC, the steady drumbeat of good news has made Pittsburgh interesting to out-of-town investors and developers, and the success stories of the early 2010s have brought them back for another run. Pittsburgh presents a problem for those looking at the market from outside. Because of the bifurcation of the economy and the demographics between the old and the new Pittsburgh, the blended data is not very compelling. You have to dig below the surface – get boots on the ground – to understand what

50 DEVELOPING PITTSBURGH | Fall 2018 what is indisputable is the character of the population. Within the city proper, residents are growing decidedly younger. Sufficient young people are moving into the city to offset the aging population. While the median age of an Allegheny County resident has fallen slightly over the past five years – and the median age of a Pennsylvanian continued to increase – the median age of a Pittsburgh city resident plunged to 32 years old. Attracted by lots of jobs in technology, financial New apartment construction in Pittsburgh has a competitive advantage in a market where the average age of services, healthcare and a unit is nearly 70 years old. energy, the younger residents of the city are works in the market. sale continues to shrink and a severe looking for newer, cooler places to shortage of new construction lots is live, and they have the paychecks to “We had a glitch about our population limiting new home construction. In support the rent in new construction. that was very confusing to people. We fact, the average number of single- had a lot of national focus for several family homes built each year since the “The people CMU and Pitt are bringing reasons and it’s very hard to look financial crisis is 1,926; in the seven in are making great salaries and many at greater Pittsburgh as a market in years prior, the average was 3,017. The of them don’t want to own. If you the way you might other cities,” says new home construction in 2017 was have the wherewithal to spend $2.25 DeLorenzo. “Pittsburgh is different actually lower than in 2016, although or $2.50 per square foot, do you want because the population growth is construction is up 4.5 percent through to be in an apartment where you in the pockets that are driving the the first six month of this year. walk across the street to your parking market. Now the population is starting garage or would you rather live where to come back, and people A comparison of the number of jobs you walked directly from your parking are enamored with what’s happening in metro Pittsburgh in June 2016 space in the garage into the door here on the technology and compared to June 2018 reveals that that led to your apartment,” asks Ron innovation side.” 24,500 more people work in the Tarquinio, DeLorenzo’s partner at region. With household formation TARQUINCoRE. “Part of the success Census Bureau data tends to confirm historically tracking jobs one-to-one, that the national developers have had the bias about Pittsburgh. The region’s that means increased demand for is based upon their knowledge of population is shrinking and growing 24,500 households, more or less, amenities in demand in other parts of older. Getting into the weeds reveals a since June 2016. During that same the country because of the depth of different conclusion. Residents of the 24 months, there were 4,022 new their portfolios.” metropolitan area are getting better single-family detached homes, 1,851 educated (more people with college townhouses and 4,788 units of A look at the makeup of the degrees, fewer with high school or apartments started. That leaves a apartment stock in metro Pittsburgh less) and better compensated (median delta of almost 14,000 new provides an interesting clue as to why household income is growing twice households formed without new the new developments have been as fast as the U.S. rate). We’re getting construction supply. resistant to occupancy slumps, even older in metro Pittsburgh but the as new product enters the market. median age of the seven-county area, Arguments about migration patterns, The average age of the apartment 43.1 years, is more than ten years job creation and demographics stock in Pittsburgh is just under 70 older than the median resident of may not conclude that there is an years. That’s about the same as the City of Pittsburgh. Likewise, while increasing wave of demand to meet Detroit, Kansas City and Cleveland, the seven-county MSA has seen a 0.7 another supply wave; however, on the all Midwestern cities of similar size. percent decline since 2010, ground, there is a leasing advantage Compared to Midwestern tech hubs, the population of the city proper has that may justify the new construction: however, Pittsburgh’s apartment stock grown. new beats old. is ancient. The average apartment age in Seattle is 54 years old. In There is another structural metric Regardless of where you might stand Austin, the average multi-family unit supporting multi-family development: on the issue of whether Pittsburgh’s is 34 years old; in Charlotte, it’s 32. the low inventory of homes to buy. population is growing sufficiently to People competing for tech jobs in The inventory of existing homes for support more apartment construction, comparable Midwestern cities are

www.developingpittsburgh.com 51 looking to rent the same kinds of places in any of those towns.

In other words, newcomers to Pittsburgh aren’t choosing new apartments in East Liberty or the Strip District over older apartments in those neighborhoods. They are choosing new apartments in one location over new apartments in another.

One potential problem facing the Pittsburgh market is the availability of sites in those locations. Land costs in desirable neighborhoods are no longer undervalued. Vacant property in hot locations – like the Baum/Liberty corridor in Shadyside – has been developed. One of the developers that helped drive the urban Pittsburgh apartment boom in recent years is responding to the changing This graphic from the Federal Reserve Bank of Cleveland’s May 2018 Fourth District Metromix report dynamics of Pittsburgh’s market by shows that Pittsburgh’s demographics are growing more favorable than those of the U.S at large. developing other property types. as well,” says Todd Reidbord, president more enticing than developing more “We’re extremely confident about the of Walnut Capital. multi-family, particularly in light of the performance of the apartments that heightened interest from out-of-town we’ve developed – particularly Bakery Walnut Capital’s current projects apartment developers and investors. Living and The Foundry – but we think in development are mostly office the market is getting a little picked- buildings in Oakland, a sub-market “I think the apartment market still has over. The opportunities for new with almost no vacant office space. room for growth,” he says. “We’re not [apartments] aren’t in locations we like Reidbord says that opportunity is sellers. We’re having more success

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52 DEVELOPING PITTSBURGH | Fall 2018 with our apartments than ever but we but almost 40 percent of the units The fundamentals of the Pittsburgh like the opportunity for growth in the have been reserved. That includes multi-family market remain solid. Oakland office market more.” three of the four three-bedroom units Occupancy has rebounded after some that have asking prices above softness in the market in the winter. Other developers leery of timing $1 million. Rent growth has slowed but rates the business cycle or wondering are still trending upward; and even how much more rents can rise in Pittsburgh isn’t a market that offers a though long-time Pittsburgh residents Pittsburgh have turned to building deep bench of condos for sale, so it’s may shake their heads in wonder at condominiums, a product that has difficult to deduce trends with so few how high rents have jumped since seen limited new supply over the past transactions. The thinking behind the 2010, the reality is that the average decade. Philadelphia-based Solara pivot to multi-family for sale is sound. two-bedroom apartment in Pittsburgh Ventures has had great success over Smaller condominiums sell for a rents for $250 less per month than the past decade with small-scale price that is competitive with a starter the national average. The in-migrating adaptive re-use projects in the Strip home, assuming you can find those. worker is still more likely than not to and Cultural District, but rarely have Condominiums are in demand from find Pittsburgh’s cost of renting to be more than 50 units been available at the growing empty-nester cohort too. lower than their previous location. any time during that period. Now, in These are cash buyers. Renters who addition to Solara’s partners, there are have been paying at the upper ranges Developers appear to think that the several developers bringing projects of the average rent spectrum, say demand for apartments is sustainable into the market to test the appeal of $1,500 to $1,800 per month, can find for the coming years. With what is the lifestyle of urban multi-family living options to buy that will fit into that in the pipeline, construction of five for buyers. same range for a mortgage payment. or six new properties should start in And the maintenance-free lifestyle each of the coming two years. That’s The highest-profile of these new and urban amenities remain the same, enough to keep the new construction projects may be Lumiere, an 86-unit regardless of whether you’re renting volume around 2,000 units through condo being developed by Millcraft or owning. Drop by the Cultural 2020. The threat of a wave of Investments at 350 Oliver Avenue District or East Liberty restaurants and Millennial renters becoming buyers at the site of the former Saks Fifth bars on a weeknight and you’ll see no is real, but the lack of sale inventory Avenue. Construction on the shortage of people who would fit the means the wave will remain pent up condominium is just getting underway profile of a condo buyer. for a while longer. That’s good news (the structure will sit atop the recently- for the multi-family market. DP completed parking garage at the site),

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www.developingpittsburgh.com 53

VOICES

Assuming that funding was not an issue, what transit project or connection do you feel would be most beneficial to the Pittsburgh region?

John C. Mascaro Hon. Thomas W. Christina Cassotis Chairman Wolf CEO Mascaro Governor Allegheny County Construction Co. Commonwealth Airport Authority of Pennsylvania ”I believe the first “The Terminal thing needed “Pennsylvania Modernization for development has the fifth Program at is roads. You largest state- Pittsburgh can’t have maintained road International development of system and the Airport to update any consequence without the proper third largest state maintained bridge and consolidate Landside operations infrastructure. Development follows system of bridges in the nation. The into a single new terminal is a huge infrastructure and population growth commonwealth’s system is far larger opportunity to continue advancing follows development. than any of our surrounding states and, our region. in fact, is comparable in size to the state- So what does Pittsburgh need? First is maintained road systems of New York, Airport facilities, which are now 26 years a connection between the airport and New Jersey and all of the New England old, must be transformed to reflect Downtown. We also need a connection states combined, so I am always looking current usage and to meet the travel between Downtown and the universities. for creative ways to build upon the travel challenges of tomorrow. The new We need to connect the Arena site all the improvements my administration has terminal must also be flexible enough way to Hazelwood Green, including the made by restoring 1,930 bridges and to accommodate rapidly-changing Pittsburgh Technology Center on Second improving more than 20,400 miles of technological systems. Avenue, with Pitt, Carnegie Mellon, roadways statewide. Chatham, and Carlow in between. Young Our current facility was built for a talent wants to be connected to the While financial challenges remain, different reality - an airline structure that airport, to where the activity is. That takes Pittsburgh and many other areas would does not exist in Pittsburgh anymore investment that is forward-thinking. substantially benefit from building a more and isn’t coming back. However, new robust commuter rail service, including tech investment and major construction Orlando FL provides a good example of improving connectivity between Western projects including the Shell cracker plant what leadership and vision can bring to a Pennsylvania and communities to its east. are redefining the future of this region. region. Over the past 20 years, two major This would be beneficial for the long-term freeways have been built to relieve the economic competitiveness of the city by The team at Pittsburgh International traffic from an overcrowded Interstate creating viable transportation alternatives. Airport will continue working with our 4. Route 417 has been expanded three Increased opportunities for reliable modes community partners to drive innovation times since it was constructed. The other of transportation would help by increasing that supports a seamless, modern beltway, Route 528, has been improved opportunities for employment, expanding travel experience for all, a best-in-class eight times since then! Those roads travel options for students looking for international airport and the region’s were surrounded by empty fields when educational opportunities, and increasing evolving role as a world leader. they were built. Now there are thousands options to explore Pennsylvania’s Regardless of any particular project, it’s of homes.” treasured tourism destinations, all of that kind of thinking that will be most which will garner increased economic beneficial to Pittsburgh.” impacts for every industry, community, and Pennsylvania resident for years to come.”

www.developingpittsburgh.com 55 Stefani Pashman Our major commuting routes are Morgan K. CEO also our most congested routes, and O’Brien Allegheny that will only worsen with increased CEO Conference on development unless we provide a real Peoples Gas Co. Community alternative. It’s been a long time since Development we, as a region, have put together a “There are multiple plan to improve connections – north, regional transit “To stay south, east, and west – that would let us opportunities that competitive and have a well-coordinated, high-quality would deliver attractive to the regional transit system. It’s time to have different benefits. next generation that conversation.” The BRT project of residents and is at the top of businesses, we need to think about everyone’s list. investing in priority transit corridors A delineated transportation corridor that will connect us across the region. between Downtown Pittsburgh and the Greater Pittsburgh International Airport would also be highly beneficial. This is especially true because of the expected growth both in Pennsylvania and Ohio west of the airport due to the Shell Cracker Plant and the economic development that will be created there. The Pittsburgh commuter rail system has been essential in linking many of our southern communities with our Downtown area. A continuation of this system beyond Pittsburgh’s North Shore and into northern Allegheny and other northern counties would essentially transverse the region. This would benefit commuters traveling to the Downtown area, but also give workers the ability to be employed across the entire area. This is especially true for people who live in distressed areas, giving them greater access to jobs.”

Jeremy Leventhal Managing Partner Faros Properties

“I think most people would say that Oakland needs a train service Maiello lays The legal groundwork connecting to Downtown and For ConsTruCTion Business. I think South Side is somewhat isolated and has bad traffic problems. In a perfect world, Pittsburgh would have a train system that connected the airport to Downtown and then went through to the east end of town, to Shadyside and East Liberty. A Firm Commitment to You The existing train system should be continued north, out to the suburbs. 412.242.4400 - mbm-law.net The ideal transit system would criss-cross Pittsburgh.”

56 DEVELOPING PITTSBURGH | Fall 2018 Audrey Russo President & CEO Pittsburgh Technology Council

“If I really were going to try to prepare Pittsburgh for the next generation, then we need to think about energy, urban density, point to point mobility and autonomy. Gaining access to our 90 neighborhoods, tethering them via contiguous access would be an incredible pivot for Pittsburgh. The valleys, the hills, the twists and turns, which create the glorious terrain, have resulted in a difficult strategy for transit. I am really excited about the new leadership at the Port Authority in Pittsburgh. She is tackling some of the basic barriers and thinking through critical factors which effect access.

The opportunities to create the a living mobility lab has been pioneered at Carnegie Mellon (autonomous vehicles, Mobility 21, Traffic 21 and Tech for Safe & Efficient transit) places the region as a premiere concentrator for people solving transportation problems completely. Creating continuous and iterative experiments should be inherent for us. We are a land of inventors. The roads, the rivers and our skies (drones) are our venues for safe movement. An aging workforce paired with a generation of people who care less and less about automobile ownership and care more about access, requires us to pivot.

My prediction is that the combination of drone deliveries, moon shots, river transport and smaller autonomous busses paired with point to point solutions that can be modulated based upon demand is the Pittsburgh of tomorrow. There will no longer be “traffic”. Instead we will be able to navigate our city, no matter our abilities and schedules. Parking garages will be razed. Cars in our city will be restricted and parks will proliferate, paired with the growth of restaurants and music. The flow from one neighborhood to another will allow the growth of newer housing where once parking garages were. After all, I want to get on a boat, and then hop on a bus which then takes me to the Hyperloop where I can have dinner in Columbus and return that night back to Pittsburgh.”

www.developingpittsburgh.com 57 News from the Counties

LARENCE

NEW CASTLE

BUTLER

BUTLER

KITTANNING BEAVER ARMSTRONG

BEAVER INDIANA

INDIANA

ALLEGHENY

PITTSBURGH

ESTMORELAND

GREENSBURG

ASHINGTON

WASHINGTON

money. The Pittsburgh Downtown Partnership reports that the Greater Downtown area alone has experienced $4.6 billion in completed devel- opment since 2008, and another $3.9 billion is FAYETTE being invested in active or announced projects.

WAYNESBURG UNIONTOWN None of that would be possible without a diverse GREENE economy. We’re seeing significant growth in health care, banking, education, arts and culture, tourism, energy, and especially technology. In 2017, more than $687 million, a 10-year high, was invested in area tech companies, particularly those in robotics, artificial intelligence, and autonomous vehicles, and that sector has gener- ated $22 billion locally during the past decade.

Allegheny County It’s easy to understand why so many would choose to invest their money here. Our region’s Allegheny County Economic Development numerous assets should appeal to any innovative Chatham One, Suite 900 business or investor. Over 50% of the U.S. buying 112 Washington Place income is within an eight-hour drive of Allegheny Pittsburgh, PA 15219 County, and 70% of the U.S. population is within 412-350-1000 (T) a 90-minute flight of Pittsburgh International 412-642-2217 (F) Airport (PIT), which continues to see an increase Robert Hurley, Director in nonstop flights. PIT, already ranked among the [email protected] best airports in the world, recently announced www.alleghenycounty.us/economic four daily, direct flights to London and began nonstop charter flights to Shanghai. The London Thanks to a growing economy and vibrant communities, Allegheny flights alone are estimated to have an annual County has become a global destination for individuals and businesses economic impact of $57.4 million. Additionally, alike, and entrepreneurs and investors are taking notice. According to our Port Authority, under new leadership, is the Pittsburgh Region Business Investment Scorecard, capital investment enhancing the experience of riding on our reached $5.5 billion last year, and construction investment here is up buses and light-rail system while embracing new more than 550% since 2014, topping out at nearly $1.2 billion in new technology and innovation.

58 DEVELOPING PITTSBURGH | Fall 2018 We also offer businesses a large and growing skilled workforce, as our world-class universities are creating an influx of talented young people to the region. According to a CBRE report, more than 10,000 millennials have moved to the Pittsburgh area since 2011. And those new residents are taking advantage of our low cost of living and abundant job Allegheny County Economic Development (ACED) is the opportunities. The number of jobs created here increased county’s lead economic and residential development agency. 15% last year, and according to the Bureau of Labor Statistics, our unemployment rate recently reached its lowest mark Our six authorities assist manufacturers, businesses, since the 1970s. Our jobs are paying well, too, as the area’s municipalities, health care facilities, nonprofits, and homeowners median household income has risen at nearly the double rate with funding for land development, improvements, acquisitions, that it has nationally since 2012. expansions, and renovations:

This region has reinvented itself, and we expect lasting growth. Moody’s Investors Service does, as well. Citing the county’s strong economy, expanding employment base, and stability, among other factors, Moody’s recently upgraded our bond rating for the fifth time in the past six years, putting us at our highest level in 35 years. That will allow us to better invest in projects that improve our quality of life and attract businesses, and it’s a reflection of our strong blue-collar work ethic and tremendous ability to collaborate. While we’re proud of our accomplishments, we are hardly resting on our laurels. We look forward to working with our economic development partners to continue making this a great place to live, work, play, and invest. Armstrong County Armstrong County Department of Economic Development Northpointe Technology Center Center II 187 Northpointe Boulevard Freeport, PA 16229 724-548-1500 (T) 724-545-6055 (F) Michael Coonley, Executive Director [email protected] www.armstrongidc.org

Several Armstrong County businesses kicked off 2018 with expansion projects. Bergad Specialty Foams & Composites, Inc., a manufacturer of specialty polyurethane foams, broke ground on their 50,000 square foot addition, which will To learn more about how ACED can support you and your bring their production area to 115,000 square feet. Bergad is project, visit www.alleghenycounty.us, planning a Phase 2 expansion, an additional 35,000 square or contact us at 412-350-1000. feet, expected to begin 18 months after the completion of Phase I. Both expansions will increase production capacity for We look forward to partnering with you. their growing line of specialty foams and accommodate new product lines. Bergad also announced their commitment to hire an additional 30 employees over the next two years. Robert Hurley, Director Allegheny County Economic Development CWM Environmental, Inc. purchased Lot 15, containing 4.5 One Chatham Center • Suite 900 acres, from the Armstrong County Industrial Development Council (ACIDC) in the West Hills Industrial Park. They broke 112 Washington Place • Pittsburgh, PA 15219 ground on an 8,500 square foot warehouse and truck repair Phone (412) 350-1000 facility this spring, which will be ready for occupancy in late www.alleghenycounty.us/economic/ 2018. The new building will be conveniently located near their corporate headquarters and laboratory. CWM is a full-service

www.developingpittsburgh.com 59 environmental firm that provides profes- Development Fund and a $400,000 sional services ranging from analytical Beaver County loan through the Pennsylvania Industrial testing, treatment plant operations, Development Authority. This project will cleanout projects, and sludge hauling. Beaver County Corporation for create at least 7 new jobs and retain 22 The expansion follows an announcement Economic Development existing jobs at the New Brighton site. in November 2017 that CWM entered 250 Insurance Street, Suite 300 a contract with the Pittsburgh Water Beaver, PA 15009 & Sewer Authority (PWSA) to provide 724-728-8610 (T) Butler County laboratory operation management and 724-728-3666 (F) analytical services. James Palmer, President Community Development Corporation [email protected] of Butler County Carson Industries, Inc., a family owned www.beavercountyced.org 112 Hollywood Drive #102 and operated wholesale company Butler, PA 16001 specializing in general gift and novelty The Beaver County Corporation for T: 724-283-1961 items, completed their 22,500 square foot Economic Development (CED) secured F: 724-283 3599 warehouse expansion in the West Hills a tenant, Kenson Plastics, Inc., to fill www.butlercountycdc.com Industrial Park. They now have 97,500 the 70,000 square foot building it Joseph Saeler, Executive Director, square feet in Kittanning. acquired in 2017 at 2835 Darlington [email protected] Road in Chippewa Township. Kenson is Senjan Machine, Inc. purchased Lot 12, a family-owned business that specializes Cranberry Township continues to see an a 1.5 acre parcel, from the ACIDC in in engineered plastic components abundance of commercial growth in the the Parks Bend Farms Industrial Park to and enclosures. It serves markets that southwest corner of Butler County. A Best accommodate their planned expansion. include aerospace, mass transit, medical, Western Plus hotel recently opened on Senjan Machine is currently located in self-service kiosks, industrial equipment, Cranberry Springs Drive and a Hampton nearby Leechburg Borough. However, and general electronics. Kenson also Inn is currently under construction in the they are quickly outgrowing their building features a Tech Center that offers 3D Village of Cranberry Woods. A 19,678 and the industrial park property ensures scanning, reverse engineering capabilities, square foot multi-tenant building was that their future expansion needs can be material selection, and precision checks recently completed in the Cranberry met. Construction will begin within two for its customers. Its capabilities include Springs development and construction is years. Senjan Machine provides precision prototyping, tooling, vacuum forming, expected to start on a 3,800 square foot machining and fabrication services. and pressure forming. The company building in the same development in the outgrew its current location in Zelienople, near future. Young & Associates Consulting Engineers was unable to continue to expand there, took space in Innovate28, a co-working and identified the Chippewa facility to Sterling Properties recently completed and shared office space in Northpointe. meet the needs of its growing business. construction of an 81,000 square foot The satellite office allows them to Kenson currently employs 50 and expects distribution center on Marshall Road in accommodate more clients in Armstrong significant employment increases. The the township and a 12,000 square foot County. Young & Associates provides a relocation should be completed during warehouse facility is also under construc- full range of professional engineering the fourth quarter of 2018. tion on Progress Road. In the next few consulting services to private, public and weeks, The Heights of Thorn Hill hopes municipal clients in Western Pennsylvania CED was also able to secure a new lease to break ground on a 60,000 square foot and beyond. with a long-term tenant, Moderne Glass, office/distribution warehouse in the Thorn Inc. Moderne Glass decorates glassware Hill Industrial Park. Armstrong County is proud to welcome at CED’s 45,000 square foot 1200 Airport Ms. Jamie Lefever as the Executive Road property in Hopewell Township. A little further north in the City of Butler, Director of the Armstrong County Tourist The company employs approximately 40 Allegheny Health Network has broken Bureau. Ms. Lefever previously served at the site and has been a valued tenant ground on a 30,000 square foot cancer as the Executive Director of the Clarion since 1998. treatment facility at the Pullman Center County Economic Development Corpora- Business Park Expansion. The project tion. She is also the Vice President of the Finally, Creekside Springs, LLC continues is expected to be “under roof” by the Redbank Valley Chamber of Commerce its rapid business growth. The company time the winter months are here and it is and Immediate Past President of the has three locations, Ambridge and New expected to begin seeing clients in April Clarion County Rotary Club. Ms. Lefever’s Brighton in Beaver County, and a third 2019. The CDC is also in negotiations with experience in these roles has prepared location in Salineville, Ohio. Creekside several other firms to buy parcels in the her to lead the county’s tourism promo- is a private label and contract packager business park. tion agency. of water-based beverages. Its most current expansion at its New Brighton The CDC also has space available for For information about the services offered location involves the acquisition and lease at the Pullman Center Business by the ACIDC, or to search available land installation of production equipment for Park Expansion. There is 10,050 square and buildings in Armstrong County, visit a second, single serve production line, feet of warehouse/office space available http://www.armstrongidc.org. with over $850,000 in capital investment. on Woody Drive. This space can be CED was able to support the project subdivided. There is also 3,400 square feet with a $250,000 loan from its Business of additional office space available in the

60 DEVELOPING PITTSBURGH | Fall 2018 Bantam Commons Building. Public transit serves both locations and they are also convenient to banks, restaurants and IndianaCOMMERCIA County CenterL forREA EconomicL ESTAT OperationsE retail shops. Check us out at: www.indianacountyceo.com The CDC continues to work with prospective clients interested in acreage at the Victory Road Business Park in Clinton Township and the Pullman Center Business Park Expansion. For additional information on this and the other land RESOURCES and warehouse space available in Butler County please contact the CDC’s ● Business / Industrial Parks Executive Director, Joe Saeler, at (724) ● MultiTenant / Flex Buildings 283-1961 or visit our website, www. ● Small Business Consulting butlercountycdc.com. ● Business Plan Assistance ● Tax Incentives ● Financial Assistance Fayette County ● Workforce Education Fay-Penn Economic Development ● Training Assistance Council ● Conferencing 1040 Eberly Way, Suite 200 ● Visitor Information Lemont Furnace, PA 15456 724-437-7913 (T) 724-437-7315 (F) www.faypenn.org Affiliates: Bob Shark, Executive Director, bobs@ faypenn.org 801 Water Street | Indiana, Pennsylvania 15701 In the first six months of 2018, Fay-Penn Economic Development Council, through its ongoing $15 million revolving loan fund, approved five loans totaling $374,500 with $750,000 in pending loan Colliers International | Pittsburgh closings. With this financing, area busi- nesses were able to get start-up funding specializes in adding value to our as well as financing for projects including clients to accelerate their success. building acquisitions, renovations and machinery and equipment purchases. Those businesses have projected creating or retaining over 80 jobs as a result of the funding. Total economic invest- ment of these projects totals more than $10 million.

Fay-Penn has been actively involved in DCED’s Engage! program, which allows staff to do outreach to the Fayette County business community. Fay-Penn’s goal is to visit at least 100 businesses each year to highlight available resources to them.

The Fayette LaunchBox had its grand opening in April. This project is a result of the Invent Penn State program, and is a Commercial Real Estate Sales and Leasing Services partnership between PennState Fayette > Real Estate Management > Valuation and Advisory – The Eberly Campus and Fay-Penn. > Corporate Solutions > Investment The 6,000 square foot state-of-the-art incubator/accelerator/co-working space > Sustainability > Auctions currently houses one tenant, and he 412 321 4200 | www.colliers.com | @PghCRE is working directly with PennState’s engineering staff with 3D printing and Learn how we are living our values of service, expertise, community and fun at www.colliersinternationalpittsburgh.com

www.developingpittsburgh.com 61 reverse engineering. Fayette LaunchBox the merger of Contura Energy and Alpha tenant have access to PennState Fayette’s Natural Resources. Two power generation Indiana County amenities including their new projects received their individual air quality Engineering Suite. permits and final construction approvals Indiana County Center for Economic so HillTop Energy’s and APV Renaissance Operations Fay-Penn unveiled its new and improved Partners’ projects will produce electricity 801 Water Street website. The focus of the updated site with natural gas for the grid. Construction Indiana, PA 15701 is to highlight the amenities that Fayette is slated to begin later this year. 724-465-2662 (T) County has to offer, in addition to its 724-465-3150 (F) resources for businesses. Fayette County A future economic development driver Byron G. Stauffer, Jr., Executive Director is nestled in the midst of the Laurel commenced with a ground-breaking [email protected] Highlands, and offers beautiful mountains, ceremony in May as West Virginia www.indianacountyceo.com rivers, trails and more. Additionally, Fay- University School of Medicine began Penn is participating in Fayette County’s construction of a 24,300 square foot new comprehensive plan, which is facility in Franklin Township adjacent to In 1994, Indiana County established the currently in progress. the existing WalMart. The new medical Indiana County Center for Economic facility is looking for a 2019 opening as Operations, commonly referred to as The Fayette Leaders Academy concluded earth moving and utility work have begun. the CEO, which offers a wide variety of its third cohort in May. There were nine services, ranging from business plans, site graduates of this Fay-Penn initiative, and Greene County Career and Technical selection, financing, training, to tourism. their service project allowed picnic tables, Center (GCCTC ) received a $200,000 The affiliates of the CEO are the Indiana benches and shelters to be placed along state grant in late spring to retool the County Commissioners, Indiana County a 2-mile section of the Sheepskin Trail Center to better prepare its students to Chamber of Commerce, Indiana County in South Union Township. The fourth enter the workforce upon graduation. Development Corporation, Indiana cohort will commence in September The GCCTC was also very influential in County Tourist Bureau and Indiana with 12 people participating in the nine- providing workforce support for the new University of Pennsylvania. month course. Arby’s Restaurant which recently began operating. The United Mine Workers Indiana County is home to people and Fay-Penn Economic Development Career Center in Ruff Creek received a places that offer opportunities to enjoy Council assists in growing and diversifying visit and presentation of an RCAP check in the arts, breweries, clothiers, distilleries, the economy in Fayette County, Penn- the amount of $3 million from PA museums, fine dining, hotels and unique sylvania. We desire to be the pre-eminent Governor Tom Wolf to expand and con- bed and breakfasts, festivals, manufac- “1st stop shop” economic development tinue the retraining of displaced former turers, music, small businesses and so organization in Fayette County by coal miners. much more to be found about 60 miles providing comprehensive business northeast of Pittsburgh. Indiana County is development services through our staff Community Bank, a homegrown Greene a fun place to play, a great place to stay, or partners to make our clients more County fixture, completed a $49 million but is truly a wonderful place to live. competitive in a global marketplace. merger in April with First West Virginia Bancorp, Inc. making Community Bank The Kovalchick Convention and Athletic Fay-Penn’s ultimate objective is to sustain the 17th largest bank in southwestern PA. Complex (KCAC), located in Indiana, is a supportive environment for business In February, AGRiMED Industries a 148,500 square-foot state-of-the-art start-up, expansion, and attraction. was approved by the Commonwealth convention center that is a great place of PA to process medical marijuana in to host events, conventions and to have Greene County where the plant is in seminars. Directly across the street from Greene County Cumberland Township. the KCAC is the Hilton Garden Inn, which has 128 hotel rooms. And just a few miles Greene County Industrial Develop- A new Dollar General began construction down the road is the Chestnut Ridge Golf ments, Inc. in the western end of the county and Resort & Conference Center in Blairsville. 300 EverGreene Drive will be open later this year. After the All of these amenities make Indiana Waynesburg, PA 15370 re-opening of two newly-reconstructed County the ideal destination for your next 724-852-2965 (T) Sheetz stores, ground breaking and con- business conference. 724-852-4132 (F) struction began on a third store located www.gcidc.org near the I-79 interchange in Waynesburg. Also, Indiana County will be hosting the Don Chappel, Executive Director The newest operation will include a car Pennsylvania Economic Development [email protected] wash with ample sit-down restaurant Association (PEDA) Fall Conference amenities. The store should be operation in October 2019. PEDA is a statewide by the beginning of the fourth quarter organization that represents economic By far, the ongoing growth of the gas this year. development professionals and provides and oil industry continues to drive the opportunities to share the best practices economic engine in the first half of 2018 that enhance the professional dialogue in Greene County. There has been an which could support local, regional and added resurgence of the coal mining state economic development. business through Consol Energy Inc. and

62 DEVELOPING PITTSBURGH | Fall 2018

Whether you come to Indiana County for billion cubic feet of natural gas, up 12.7 business, to get an education, play or to percent from a year ago. Westmoreland stay, you will have a plethora of activities to do and a great amount of places to Pennsylvania Public Utility Commission County visit. Indiana County is for People, announced that Pennsylvania collected Place and Progress. $209.5 million in shale impact fees from Westmoreland County Industrial www.indianacountyceo.com natural gas producers for 2017. Wash- Development Corporation ington County and its municipalities saw 40 North Pennsylvania Avenue # 520 a big increase due to a bump in drilling Greensburg, PA 15601 Washington activity. Washington County received 724-830-3061 (T) the most money among the state’s 66 724-830-3611 (F) counties, with $7.3 million, up from $5.23 Jason W. Rigone, Executive Director County million collected for Washington County [email protected] in 2016. Washington County and its towns Washington County Chamber of www.co.westmoreland.pa.us will receive a total of $19.9 million. Commerce 375 Southpointe Boulevard #240 The Allegheny Conference on Com- Westmoreland County kicked off 2018 Canonsburg, PA 15317 munity Development and its affiliate, the with many economic development 724-225-3010 (T) Pittsburgh Regional Alliance, also released projects underway. 724-228-7337 (F) the 2017 Pittsburgh Regional Business Jeff Kotula, President Investment Scorecard highlighting the In April, the Westmoreland County Indus- [email protected] investments made in the 10-county Pitts- trial Development Corporation (WCIDC) www.washcochamber.com burgh Region. Once again, Washington acquired 206 acres in Sewickley Township County played a significant role in the from Westinghouse Electric Company. energy investments. The Scorecard stated The property will be developed into the The first half of 2018 found Washington there was $1.7 billion in energy infrastruc- county’s newest industrial park, Com- County strengthening its leadership ture investment in the region last year and merce Crossing at Westmoreland. The position in the Greater Pittsburgh Region’s five of the seven major energy projects it park will be designed to accommodate economy, especially in the manufac- listed were based in the county. companies that desire pad-ready sites with turing, energy and real estate industries. direct access to active rail and Interstate In real estate, The Aztec Fund Inc. paid Manufacturing remained strong with Ens- 70. The industrial park will consist of five $20,250,000 for 501 Technology Drive, a inger Inc.’s expansion projects currently parcels, each ranging in size from 20 to Class A office building in Southpointe. The underway in North Strabane Township. 40 acres. When completed the park will 98,314 square-foot office building is situ- The company purchased nearly eight house approximately 1,000 jobs. ated on 8.5 acres within the Southpointe acres to build a 342,000 square foot light Business Park. The three-story property In the City of Jeannette, site prepara- manufacturing, warehouse and office is fully leased. Tenants include Primetals tions were completed at the 13.8 acre space building. In addition, the company Technologies and Siemens. This acquisi- Jeannette Glass Works project. A sales is adding 15,441 square feet to their tion marks Aztec’s initial entry into the agreement between WCIDC and Elliott existing building as well as an additional Pittsburgh market. Blaise Larkin of Madison Group was approved by the WCIDC board parking area at a cost of $1.75 million for Realty Group closed on the former of directors in March. Elliott proposes product storage. 78,000 square foot Caterpillar facility for to build a cryogenic pump test stand In McMurray, Trigon Holdings, a $2.815 million. Plans are to transform the on the property. It is estimated that the manufacturer of titanium components facility to a multi-tenant building. Also, T2 project would bring up to 150 jobs. Elliott for aerospace and medical applications, is Canonsburg 1 LLC will spend $10 million to currently employs about 875 people at building a 20,000 square foot addition. upgrade a portion of the Fort Pitt Industrial its U.S. headquarters about 1.5 miles from Park to accommodate multiple tenants in the Jeannette Glass Works site. Washington County also expanded on the 130,000 square foot space. its designation as Energy Capital of the Two WCIDC buildings are now fully leased. East. Shell Pipeline Company submitted Community Bank has remodeled the In March, AssetGenie signed a 3-year lease applications to the state’s Department of former Jumpers Junction, located at extension adding 36,256 square feet of Environmental Protection for construction 2111 North Franklin Drive, as its new space and bringing their total footprint at of its Falcon Pipeline. The pipeline will Corporate Center. Strategically located off South Greensburg Commons to approxi- transport ethane from the MarkWest Interstate 70 and only a few miles from mately 120,000 square feet. The company, natural gas processing plant in Chartiers Interstate 79, it will house commercial which offers a wide range of products Township, Washington County to Shell’s and mortgage lenders, human resources, and services in the computer industry, first Cracker facility in Beaver County. retail operations, compliance and auditing, located at the South Greensburg Com- and its executive offices as well as the mons in 2006 and has tripled in size since. According to state data released in March, bank’s insurance subsidiary, Exchange AssetGenie currently employs 140 people Washington County remained a solid Underwriters. Finally, the aggressive growth and plans to use the additional space for a second in natural gas production and of ANSYS has resulted in their leasing an new business operation that will employ an led the state in the number of producing additional 30,000 square feet in a second additional 30 people within the next year. wells. In 2017, the county produced 945 building in the Zenith Ridge development. In Hempfield Township, the Greenforge

64 DEVELOPING PITTSBURGH | Fall 2018 building is at full capacity with True Health and Fitness signing a 5-year lease agreement in May for the remaining 1,940 square feet of office space. This space is in addition to the 2,630 square foot fitness facility True Health and Fitness currently leases at Greenforge for their personal training and small group training classes. The new space will be a multidisciplinary clinic offering chiropractic, acupuncture, and massage therapy.

The county’s comprehensive plan update, Reimagining Our Westmoreland, has unveiled draft strategies developed by the consultant team, Planning Division staff, planning partners, and 12 focus groups. The draft strategies are framed within the context of seven core objectives to help the County attract, develop, and retain a diverse and stable workforce that will sustain a healthy economy. The Compre- hensive Plan is expected to be completed in late 2018.

To learn more about the exciting eco- nomic development projects happening in Westmoreland County, visit Westmore- landCountyIDC.org.

DEVELOPED SITES QUALIFIED WORKFORCE STRATEGIC LOCATION

Westmoreland County Industrial Development Corporation WestmorelandCountyIDC.org 724-830-3061

www.developingpittsburgh.com 65 NEW TO MARKET JACKSON DISTRIB JACKSON DISTRIBUTION CENTER UTION Up to 220,000 SF of Class A Industrial Space CENTER 108 Tomlinson Drive, Zelienople, PA 16063

I-79 N Exit Ramp

rive son D 2403 Sidney Street, Ste 200 mlin To Pittsburgh, PA 15203 PHONE: 412.381.7433 EMAIL: [email protected]

We Are Building

412-942-0200 St. Elizabeth of Hungary Church [email protected] RSH Architects Photo by Massery Photography www.volpatt.com

Delivering quality construction since 1991 in the institutional, industrial and commercial market.

66 DEVELOPING PITTSBURGH | Fall 2018 People & Events

(From left) Rycon’s Todd Dominick, UPMC’s Roger Altmyer and Michael Jaime Getz and retired banking legend Jim Keating (right). Klein from Blumling Gusky relax after the NAIOP Pittsburgh golf outing at Fox Chapel Golf Club.

(From left) Continental’s Mike Hudac, Tina Mechling, Matt Curtis, and Newmark’s Kevin Spence and Jerry McLaughlin (right). Strada’s Al Cuteri.

www.developingpittsburgh.com 67 Representatives from NAIOP Pittsburgh visited the Department of Community and Economic Development and state legislators to press for improvements in permitting and regulation. From left are Chapman’s Tony Rosenberger, Michael Takacs from Bohler Engineering, DCED Secretary Dennis Davin, and Jamie White from LLI Technologies. When it comes to real estate, we see potential everywhere. CBRE turns scale into strength, expense into performance, and property into prosperity. How can we help you transform your real estate into real advantage?

Build on www.cbre.com/BuildOnAdvantage Advantage

(From left) Jamie White, Michael Takacs, State Rep. Camera Bartolotta, Toby Burke, senior director of state & local affairs, NAIOP Corporate,and Tony Rosenberger.

(From left) Marne Babich and Rachael Boren- stein from BKD, Rose Finance’s Autumn Harris and Maureen Jordan from Cohen & Grigsby at CREW Pittsburgh’s July 19 networking event at the Duquesne Club.

68 DEVELOPING PITTSBURGH | Fall 2018 Building Your Success Katherine Chapelle and Anastasia Markiw from The Design Group with Donna Baran from Grandbridge provides commercial and Our scope of services includes: James Gallery at the July 19 CREW event. multifamily finance solutions through n Insurance Companies a wide range of capital sources n Banks In 2016, Grandbridge’s Pittsburgh Office closed n Pension Funds loans totaling more than $142 million – working n Freddie Mac Multifamily Approved with our clients to meet their financial goals and Seller/Servicer for Conventional and ensure their success. Seniors Housing ® At Grandbridge, we connect you with the right n Fannie Mae DUS source of funding – creating a personal, n FHA-Insured MAP and LEAN successful approach for each transaction. n CMBS Investors CONTACT US n BB&T Real Estate Funding Dan Puntil, Senior Vice President – Structured Finance Two Gateway Center – Stabilized Fixed Rate Finance (From left) Allen & Sharif’s Paul Messineo, Bob 603 Stanwix St., Suite 1899 n Capital Markets Dezort from Anderson Interiors and R3A’s Pittsburgh, PA 15222 – Taxable and Tax-Exempt Financing Carla Worthington at the 10th Annual NAIOP/ 412.391.3366 – Credit Facilities CREW Sporting Clays event at Seven Springs.

Loans are subject to credit approval. Equal Housing Lender. Grandbridge.com

Investigating the Past, Evaluating the Present, Shaping the Future!

(Front, left to right) Ben Brown of Beynon & Company, Leah Mistick & Cailean Sweeney of Moody & Associates (Rear)Ray Mosco of CFS Bank, Amanda Love of Moody & Associates

Chip Desmone (left) and Kim Harkobusic from Washington Workplace.

22 S. Linden St. | Duquesne, PA 15110 | 412.469.9331 www.kuresources.com

www.developingpittsburgh.com 69 l- gn o 2-c lomn odon ood c buon n Professional Services (left) Jim Lyle of Community Bank (left) and Jeff Kotula from the Washington County ■ ommcal ■ omwa 4 Chamber of Commerce. ■ ndual ■ n naucu ■ nuonal ■ andca ccu ■ dnal ■ lannng ■ uncal ■ ung ■ a awa ■ ang South Side Riverfront Park ■ oadwa and amn anagmn The Soffer Organization and Environmental Planning and Design, LLC

Headquarters: 846 Fourth Avenue Coraopolis, PA 15108 (Allegheny County) 412-264-4400 | www.lsse.com NAIOP Pittsburgh Executive Director Brandon Branch Office Mendoza (left) and Chapman’s Steve Thomas. Greenur ettrean Cunt PA anain Princia

ein A. rett P.E. Ne itrich P.E. an E. Stantn P.E. l- gn o 25000 acl dd cnolog dancmn n

CBRE’s Brooke Huber, Victor Komo from ITS and Jeremy Bernstein from CBRE.

(From left) TARQUINCoRE’s Lynn DeLorenzo, NEXT architecture Linda Fisher from Farmers National Bank and Justin McCall from McGrath McCall.

next-architecture.net ARCHITECTURE I INTERIOR DESIGN I STRATEGIC PLANNING

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Team Driven Solution Oriented 724.942.4200 • Fax: 724.942.0829 www.specifiedsystems.com

www.developingpittsburgh.com 71 ARCHITECTS

Gerard Associates Architects 410 Fort Pitt Commons 445 Fort Pitt Boulevard Pittsburgh PA 15219 T: 412-566-1531 2018 www.gerardassociatesarchitects.com Dawn Danyo DiMedio, AIA, LEED AP BD+C [email protected] Design 3 Architecture PC A Woman Owned Business providing architecture, BUYER’S 300 Oxford Dr. Suite 120, Monroeville, PA 15146 planning, interior and environmentally responsible T: 412-373-2220 design services to a full range of commercial clients www.d3a.com since 1959. The firm commits itself to understanding William Snyder – [email protected] projects completely, developing working relationships GUIDE with clients and delivering projects that are technically Design 3 Architecture has been offering architecture, planning, and interior design services to the Pittsburgh and aesthetically complete. Every project is given principal region since 1982. We view inherent project constraints attention. We believe this commitment to service yields LOOKING FOR AN as potential opportunities for innovative design solutions. superior design. With a philosophy grounded in team collaboration, ARCHITECT, ENGINEER, providing both personal attention and project leadership, CONTRACTOR OR Design 3 Architecture does more than solve problems. We provide solutions that are unique, exciting and affordable. LENDER? THE 2018 NAIOP PITTSBURGH BUYER’S GUIDE

LISTS DOZENS OF FIRMS HHSDR Architects/Engineers FROM AROUND THE REGION DLA+ Architecture & Interior Design 40 Shenango Avenue, Sharon, PA 16146-1502 130 7th Street, 201 Century Building Folster Plaza, Suite 200 Pittsburgh PA 15222-3413 THAT CAN FIT THE BILL. 750 Holiday Drive, Pittsburgh, PA 15220 T: 800-447-3799 | T: 412-281-2280 www.DLAplus.com www.hhsdr.com Kari Miller – [email protected] Andreas Dometakis – [email protected] Architects...... 72 DLA+ is a full-service architecture and interior design firm Frank Gargiulo – [email protected] dedicated to providing Strategic Architecture solutions HHSDR helps our clients deliver successful projects, on- ASA Specialty Contractors ...... 73 through a collaborative and integrated approach time and on-budget, using a 360 degree approach to to delivering projects for our clients in Corporate/ project planning, design and management. Our approach Civil Engineers...... 73 Commercial, Higher Education, Sports, Government, means detailed, Partner involvement at every phase, from Healthcare, and Retail/Hospitality. We are committed to initial studies through the phases of design, construction Contractors...... 74 delivering not only a technically successful project, but contract management and post-construction closeout. also one that includes sound principles of sustainable It means advocacy on our clients’ behalf, through every Developers...... 75 design intended to serve the client and the community stage of the project, with the same Partner and team well into the future. Fueled by a creative and talented team, members that started the project with you. It means a Document Handling ...... 75 our once two-person firm has grown to 38 people in ten facility that is as effective as it is beautiful. It means having years earning us a spot as one of the “100 Fastest Growing the confidence that comes from a firm with more than Economic Development...... 75 Companies in Pittsburgh” four years in a row and one of 65 years of experience. HHSDR looks forward to speaking INC 5000 Fastest Growing Companies in the United States with you about our 360 degree approach to your project. Engineers...... 76 five years in a row. Environmental...... 76 Finance...... 76 Geotechnical Engineer...... 77 DRS Architects, Inc. ikm incorporated Industry/Trade Group...... 77 One Gateway Center, 17th Floor 11 Stanwix Street #2200, Pittsburgh, PA 15222 Pittsburgh, PA 15222 T: 412-281-1337 | F: 412-281-4639 Insurance...... 78 T: 412-391-4850 | F: 412-391-4815 www.ikminc.com www.drsarchitects.com Joel R. Bernard, AIA, NCARB, LEED AP, Principal Interior Designer...... 78 Scott O. Hazlett, Principal, AIA, ACHA, EDAC [email protected] [email protected] IKM provides architecture, planning, and interior design Land Surveyors...... 78 Rachel Rzymek, Business Development & Marketing [email protected] services to complex clients across the region in healthcare, K-12, workplace, and civic and cultural organizations. IKM Legal Services...... 78 Designing for the future, DRS Architects continues to champions an immersive client engagement process provide innovative and creative architectural solutions using printing and AR/VR technologies to meet its vision Professional Services...... 80 as we have for nearly 60 years. We listen carefully to our of recognition for excellence in institutional architecture, clients’ needs and develop customized responses to each design, and advancement of our client’s mission. Real Estate Brokers...... 80 design challenge. We provide architecture, interior design In continuous practice for 107 years, IKM is an ever- and master planning services through the varied markets changing organization that seeks to diversify its projects Specialty Contractors...... 80 of higher education, laboratories, health and wellness, and people in order to make a difference. IKM is a member government, hospitality, and corporate offices. Our of the American Institute of Architects and the US Green Water Management...... 80 talented design teams work to develop exemplary projects Building Council. which enrich daily life, improve communities, advance a sustainable future and promote design excellence.

72 DEVELOPING PITTSBURGH | Fall 2018 CIVIL ENGINEERS

VEBH Architects PWWG Architecture + Planning 470 Washington Road, Pittsburgh, PA 15228 408 Blvd. of the Allies, Pittsburgh, PA 15219 T: 412-561-7117 T: 412.391.2884 | F: 412.391.1657 www.vebh.com www.pwwgarch.com Daniel Skrabski – [email protected] Lisa Carver, AIA, LEP AP, Principal GAI Consultants, Inc. [email protected] VEBH Architects has been serving the communities of 385 E. Waterfront Dr., Homestead, PA 15120 Southwestern Pennsylvania and beyond for more than 70 T: 412-399-5491 PWWG offers architecture and planning for projects in years. We are passionate about creating quality environments www.gaiconsultants.com multi-family housing; education and technical training; for our clients. Our designs for workplaces enhance client Patrick M. Gallagher, Vice President and the rehab, preservation, and reuse of historic identity, offer increased productivity, and deliver long [email protected] structures. Our award-winning design work also includes term value to a business, as well as the customers and the Transforming ideas into reality since 1958, GAI Consultants hotels, parking structures, theaters, and commercial community it serves. We are committed to creating great operations. For 40+ years, from our studios in downtown is an employee-owned engineering, planning, and places that inspire, motivate, and ultimately enrich our region environmental consulting firm providing expertise to Pittsburgh, we have assisted owners with detail-oriented and the communities in and around the places we call home. service, from early explorations, to coordinating energy, transportation, development, government, and multi-disciplinary teams of engineers, to construction industrial clients worldwide. We serve highly respected management and LEED/sustainable design. PWWG is global energy and manufacturing firms, transportation also expert in code and zoning compliance, feasibility ASA SPECIALTY CONTRACTORS agencies, and national developers, as well as local and space programming, assisting with historic tax credit communities and state and federal government. With a applications, community outreach, and 3D visualizations. highly skilled staff of engineers, planners, environmental scientists, and other professionals, GAI approaches every endeavor with enthusiasm, trust, and integrity. Today, GAI employs nearly a thousand professionals throughout the United States. Get to know GAI | gaiconsultants.com outreach, and 3D visualizations.

Allegheny Mineral Corporation Renaissance 3 Architects, P.C. One Glade Park, East Kittanning, PA 16201 48 South 14th St., Pittsburgh, PA 15203 T: 724-548-8101 The Gateway Engineers T: 412-431-2480 www.alleghenymineral.com www.r3a.com Dennis C. Snyder, President 100 McMorris Road, Pittsburgh PA 15205 Deepak Wadhwani – [email protected] Mike Odasso, Vice President of Sales T: 412-921-4030 | F: 412-921-9960 [email protected] www.GatewayEngineers.com At R3A we believe that successful design shapes Ryan L. Hayes, Director of Business Development environments that actively engage the senses and Allegheny Mineral Corp. provides crushed stone, industrial [email protected] facilitates positive human interactions and behaviors, rock dust and agricultural lime to Pennsylvania, Ohio, Gateway Engineers and its predecessors have played an while employing technologies that help improve the and West Virginia. In 2014, the company was listed as one of the 40th largest aggregate producers in the nation. active role in the development of the Ohio Valley since performance of our daily lives. R3A is a 34-person firm 1882. Our incessant pursuit of project management Our limestone product has provided a solid foundation with two principals, supported by an experienced and excellence has created strengths in municipal engineering, creative team of architects, interior designers and project for schools, churches, hospitals and family homes in consulting work, and all facets of private development managers. For the past 23 years, R3A has provided a full and around our community. Allegheny Mineral has been including the burgeoning energy industries. The tradition of range of architectural, interior design, planning services. recognized for its efforts in areas of safety, sustainability, providing value-added engineering solutions carries on as We pride ourselves in being uniquely qualified to respond community relations and industry contributions in the the company continues to grow. Gateway Engineers staff of to the increasingly diverse and complex facilities needs of form of awards from state and federal agencies. registered professional engineers, surveyors, construction our clients and their organizations. 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.

Stantec Overhead Door Company of 650 Smithfield Street #2500, Pittsburgh, PA 15222 Greater Pittsburgh T: 412-394-7000 400 Poplar Street, Pittsburgh, PA 15223 Pennoni www.stantec.com T: 412-781-4000 Ext. 216 | F: 412-781-2446 9 Foster Plaza, Suite 700, 750 Holiday Drive George Halkias, AIA, LEED, AP www.overheaddoorpittsburgh.com Pittsburgh, PA 15220 [email protected] Jason Henze – [email protected] T: 412-521-3000 x2778 Stantec designs with community in mind. Whether around From the time we invented the garage door in 1921 www.pennoni.com the corner or across the globe, communities provide a Overhead Door has always produced and installed John Skorupan – [email protected] foundation, a sense of place and of belonging. We care the highest quality products. Our superior product Pennoni is a multidisciplinary consulting engineering about the communities we serve - we’re designers, craftsmanship and dedicated excellence in customer firm founded more than five decades ago. Our firm helps engineers, scientists, and project managers, innovating care has made us the leader in door systems for diverse communities and private sector clients alike navigate the together at the intersection of community, creativity, and markets and customers around the globe. We offer the ever-changing technological advancements available client relationships. Stantec has offered design services most complete line of quality residential, commercial and and learn how best to integrate “smart” solutions into the in Western Pennsylvania since 1936. Offering 100+ multi- industrial upward-acting door systems. Our Red Ribbon current landscape and make them a part of resilient and discipline professionals in the Pittsburgh region, the firm trademark is your guarantee of receiving unequaled sustainable planning. Pennoni has 35 offices throughout has been ranked Pittsburgh’s largest A/E design firm in the personalized service and expertise – from assistance the Mid-Atlantic, Ohio, North Carolina, Florida and New City by Pittsburgh Business Times for more than a decade. with product selection through the timely completion of England. Locally, Pennoni has offices in Pittsburgh, State By working with Stantec, clients have access to world- product installation. College and Uniontown that service the developer, class expertise and creativity, delivered through a strong industrial, transportation, education and the Marcellus local relationship that understands their business. Shale industry in Western Pennsylvania, Ohio and West Virginia. We put all our passion, our knowledge and our skill into doing whatever it takes, every day, every time, for every project. www.developingpittsburgh.com 73 CONTRACTORS R.A. Smith, Inc. 333 Allegheny Ave., Ste. 202, Oakmont, PA 15139-2072 Landau Building Company T: 412-828-7604 | F: 412-828-7608 9855 Rinaman Road, Wexford, PA 15090 www.rasmith.com T: 724-935-8800 John Frydrych, M.S., P.E. www.landau-bldg.com [email protected] A. Martini & Company Jeffrey Landau, President – [email protected] raSmith is a multi-disciplinary consulting engineering firm 320 Grant Street, Verona, PA 15137 Established over 100 years ago, Landau Building Company that is a leader in civil engineering and site development, T: 412-828-5500 (LBC) has become one of the premier family-owned structural engineering and land surveying. raSmith works with www.amartinigc.com and operated general contracting firms in Western clients to deliver excellence, vision and responsive service. Emily Landerman – [email protected] Pennsylvania. In 2006, Landau Building Company Developers and governmental agencies take advantage of the expanded its construction services to include the northern As a fourth generation General Contracting and diverse expertise and team collaboration that is incorporated West Virginia region when it created the subsidiary Marks- in every project. The firm provides comprehensive services Construction Management firm, founded in 1951, the principals of A. Martini & Co. continue to provide hands- Landau Construction. Now in its 5th generation, LBC that include civil engineering, structural engineering, continues to build strong RELATIONSHIPS with its clients site development engineering, site planning, landscape on participation as a commitment to our clients and each of their projects. Our company’s size, history, and by focusing on their need to build a safe, high-quality architecture, surveying, water resources engineering, LiDAR work philosophy are specifically geared to offering the project on time and within budget. Our commitment to (3D laser scanning) and UAS (unmanned aerial systems, or experience, commitment, and a partnering approach integrity, honesty, and excellent client service has built drones) services. Offices are located in Oakmont (Pittsburgh), needed for your project. A. Martini & Co. provides the solid REPUTATION we exhibit every day and on every PA; Brookfield (Milwaukee), Madison, Appleton and construction management and general construction project. We deliver exceptional RESULTS that exceed our Cedarburg, WI; Naperville (Chicago), IL; and Irvine, CA. services for both multimillion dollar and smaller projects client’s expectations for quality and service and make for corporate, healthcare, restaurant, retail, residential, Landau Building Company their builder of choice. We education and non-profit clients. welcome the opportunity to be your builder of choice.

Red Swing Group One Monroeville Center 3824 Northern Pike #800 Monroeville, PA 15146 Mascaro Construction T: 724-325-1215 1720 Metropolitan St, Pittsburgh, PA 15233 Red Swing Consulting Services views its Clients as Burchick Construction Company, Inc. T: 412-321-4901 Partners; focusing first and foremost on building and 500 Lowries Run Road, Pittsburgh, PA 15237 www.mascaroconstruction.com maintaining strong relationships and trust. This mutual T: 412-369-9700 Michael R. Mascaro - [email protected] trust is the foundation of a solid business partnership. Red www.burchick.com Joseph E. Burchick – [email protected] Mascaro is one of the region’s largest construction firms Swing offers Land Development Consulting Services to specializing in design-build, construction management, take a project from concept through construction. Red Burchick Construction is a full-service general contractor and general contracting. Founded in 1988 on the simple Swing has experience in Surveying, Civil Engineering, founded on the commitment to excellence that Joe Burchick premise to deliver excellence in construction services, Infrastructure, Utility, and Telecommunications Projects. brings to each project. Burchick’s management approach we bring to your project the ‘Mascaro Advantage:’ We Red Swing effectively maximizes the return on investment is designed to ensure optimum results for our clients while are humble, hungry, and smart – not shying away from through a collaborative design approach, utilizing a low setting the performance standard for construction services. hard work and complex projects, but tackling each one impact design philosophy that reduces project capital Our executives and managers have broad-based experience proactively. We do what we say we are going to do, costs and produces the competitive edge that we and our delivering construction to the highest of standards with right, the first time. We will provide a family atmosphere, partners demand. every delivery method preference. Burchick’s project team and professional engineers on staff are equally comfortable concentrating on the health and welfare of not only our with a completed design or with providing pre-construction employees, but also that of our clients and community. assistance at the earliest stages of design. Burchick has Our success is based on our market diversity, superior managed commercial, institutional, and industrial projects planning, building relationships, and, most importantly, from $1 million to $73 million with equal attention. Burchick delivering great experiences. Construction – Setting the Performance Standard.

David E. Wooster and Associates, Inc.

2 East Crafton Ave., Pittsburgh, PA 15205-2804 341 Science Park Dr., Ste. 205, State College, PA 16803 Restoring the Past Building the Future McKamish, Inc. T: 412-921-3303 | C: 412-491-6132 Jendoco Construction Corporation www.dewooster.com 50 55th Street, Pittsburgh, PA 15201 Chuck Wooster, President 2000 Lincoln Road, Pittsburgh, PA 15235 T: 412-781-6262 | F: 412-781-2007 [email protected] T: 412-361-4500 | F: 412-361-4790 www.mckamish.com www.jendoco.com John Jordan – [email protected] Since 1971, our firm has been a highly regarded and Domenic Dozzi – [email protected] respected leader in the traffic engineering industry. We When it comes to specialty mechanical contracting, Located in Pittsburgh for over 61 years, Jendoco has are most proud of our uncompromising integrity. Our McKamish sets the bar. The Commercial Construction built a reputation for being a premier quality general Group at McKamish serves customers big and small in goal is to guide our clients through the rigorous process contractor and construction manager with expertise in virtually all market segments, meeting their Mechanical of real estate development and assist them by correctly many facets of building construction. From renovations, to identifying on-site and off-site traffic impacts, develop restorations, to new construction, our team of seasoned Contracting, Plumbing and HVAC needs. We excel at cost effective and efficient mitigation strategies, and seek professionals has the experience and commitment to Pre-Construction and Design Assist/Build services. The and receive municipal and State DOT approvals and/or meet the challenges of your projects. We have experience McKamish Service Group thrives to optimize customer permits. Our skills include: Traffic Engineering Studies, with new construction, renovation, historical restoration investment in new and existing building systems. A Highway Occupancy Permits, Traffic Signal System Design, and preservation, research facilities, hospitals and medical dedicated team of professional technicians, operating a Roadway Design, Intersection Design, and Parking Studies. facilities, schools and universities, religious facilities, water fleet of vehicles, provide McKamish Service customers treatment facilities, multi-tenant residential, commercial, with around-the-clock support. Please visit our website – industrial, institutional, retail and sustainable construction. www.mckamish.com – to learn more about us!

74 DEVELOPING PITTSBURGH | Fall 2018 DOCUMENT HANDLING

Community Development PJ Dick Inc. Corporation of Butler County 225 North Shore Drive, Pittsburgh PA 15212 TRI STTE 120 Hollywood Drive, Suite 102, Butler, PA 16001 T: 412-807-2000 T: 800-283-0021 | F: 724-283-3599 www.pjdick.com www.butlercountycdc.com Bernard J. Kobosky | [email protected] Tri-State Reprographics, Inc. Joe Saeler, Executive Director [email protected] PJ Dick – Trumbull – Lindy Paving is a Pittsburgh, PA 2934 Smallman Street, Pittsburgh, PA 15201 based contracting entity providing building construction, T: 412-281-3538 | F: 412-281-3344 The Community Development Corporation of Butler highway, site, and civil construction and asphalt paving www.tsrepro.com County (CDC) is the lead economic development services. Since 1979, the companies have served a DJ McClary, Director of Operations organization in Butler County. The CDC is your first number of different owner groups including commercial, [email protected] contact for economic development in Butler County. The CDC works closely with you to identify the right location institutional, government and private equity developers. Tri-State has provided printing and document Consistently ranked among the nation’s top firms, the for your business. Available land includes 30 acres at the management to Architects, Engineers and Contractors. Pullman Center Business Park Expansion. Initial lots at family owned group of companies is widely considered Today we utilize the latest in Online Planroom Services, the Pullman site are priced as low as $50,000 per acre. the region’s largest construction firm offering a variety of Scanning/Printing in both Black & White and Color. Our All utilities are at both sites. The CDC also has financing delivery systems utilizing superior expertise, equipment color division at Tri-State specializes in large format color, available for real estate, equipment, working capital and and innovation. servicing the Sign, Advertising, and Display Markets. Our lines of credit. unique approach combined with our product research and years of knowledge enables us to continually present new possibilities to our clients.

Rycon Construction Inc. ECONOMIC DEVELOPMENT Fay-Penn Economic 2501 Smallman St., Suite 100, Pittsburgh, PA 15222 Development Council T: 412-392-2525 1040 Eberly Way, Ste. 200, Lemont Furnace, PA 15456 www.ryconinc.com T: 724-437-7913 Todd Dominick – [email protected] www.faypenn.org Rycon Construction, Inc. is a premier preconstruction, Bob Stark, Executive Director – [email protected] general contracting and construction management firm Fay-Penn Economic Development Council is on point with offices in Pittsburgh, Atlanta, Cleveland, and Ft. Ambridge Regional Center to grow and diversify the economy in Fayette County, Lauderdale. An ENR Top 400 Contractor, Rycon specializes Pennsylvania. We’re the pre-eminent “1st stop shop” in new construction, renovations and designbuild projects 2301 Duss Avenue #1, Ambridge, PA 15003 T: 724-266-4661 economic development organization in the county, for owners of commercial, industrial, institutional, multi- www.AmbridgeRegional.com providing comprehensive, second-to-none business unit residential and governmental buildings. Rycon’s stellar [email protected] development services through our staff and partners to reputation for quality service is built on a solid history of make clients more competitive in a global marketplace. successful projects completed on time and on budget and The Ambridge Regional Center is “Rail Served. Crane We do “traditional” economic development – rental an unwavering business philosophy that puts customer Served. Customer Served.” The 85 Acre, 22 Buildings space, pad-ready business park acreage, and financing satisfaction first. The results are return customers and and over 1 million square foot Industrial Park in Beaver – but also provide innovative programming to support impressive company growth. The company has executed County offers a variety of Warehouse, Distribution, entrepreneurs, develop leaders, and promote the business more than $3.5 billion of work and currently Rycon’s Manufacturing, Lab & Yard Space. Convenient to all amenities of Fayette County. revenues exceed $400 million. major roadways, and only 11 miles from the future Shell cracker plant, our tenants enjoy direct access to Norfolk Southern Rail Co. service as well as on-site maintenance and logistics services, though our Con-Am Warehouse. Designations: Foreign Trade Zone, HUB Zone, Enterprise DEVELOPERS Zone, PA Act 2 Clearance. Indiana County Center for Economic Operations 801 Water St., Indiana, PA 15701-1705 T: 724-465-2662 | F: 724-465-3150 www.indianacountyceo.com Armstrong County Industrial Byron G. Stauffer, Jr., Executive Director Development Council [email protected] Chapman Properties Northpointe Technology Center II The Indiana County Center for Economic Operations 100 Leetsdale Industrial Dr., Leetsdale, PA 15056 187 Northpointe Boulevard, Freeport, PA 16229 (the “CEO”) was established in 1994 as a county-wide T: 724-266-4499 T: 724-548-1500 public-private initiative. The CEO Affiliates include www.chapmanprop.com www.armstrongidc.org the Indiana County Commissioners, the Indiana Steve Thomas – [email protected] Michael P. Coonley, AICP, Executive Director [email protected] County Chamber of Commerce, the Indiana County Chapman Properties is a leading provider of quality Development Corporation, the Indiana County Tourist business facilities in Southwestern Pennsylvania. An The Armstrong County Industrial Development Council Bureau, and Indiana University of Pennsylvania, whom award winning commercial property development and (ACIDC), established in 1968 is a private 501(c)(3) industrial jointly seek to support the continuous improvement and management company based in Pittsburgh, Chapman development corporation. Identified as the lead economic vitality of Indiana County through increased business, designs, builds, and operates state-of-the-art business development group within the County, the ACIDC, along economic growth, tourism, education, and the quality parks with a concentration on regional distribution with its sister organization the Armstrong County Industrial of life in Indiana County. The CEO facilitates access to and industrial projects. They are best known for their Development Authority, provides single-point-of-contact information, resources, and the delivery of integrated redevelopment of the 2+ million square foot Leetsdale service for emerging or expanding business and industry. programs and services to assist businesses in their efforts Industrial Park, and are currently developing Chapman Owners and operators of four industrial parks, single Westport, a 2.6 million square foot master-planned use and multitenant facilities, the ACIDC works closely to grow and expand. mixed use business park located 3 miles from Pittsburgh with existing or prospective businesses to identify the International Airport on the Westport Road Interchange right location. They also provide financing assistance to of PA Turnpike 576, and Chapman Southport, a 153-acre companies through government loan/grant programs and mixed use office park located on Racetrack Road in private sector financial institutions. Washington County next to the Meadows Racetrack and Casino and Tanger Outlet Mall.

www.developingpittsburgh.com 75 Let’s taLk @ 412.261.8130 ENVIRONMENTAL KU Resources, Inc. Washington County “ 22 South Linden St., Duquesne, PA 15110 Chamber of Commerce T: 412-469-9331 | F: 412-469-9336 375 Southpointe Blvd. #240, Canonsburg, PA 15317 www.kuresources.com We’Re making T: 724-225-3010 | F: 724-228-7337 Tysen Miller – [email protected] www.washcochamber.com Mary Stollar, Senior Vice President Economic KU Resources, Inc. provides a full range of KU Resources, Inc. Development – [email protected] environmental management and site development 22 South Linden St., Duquesne, PA 15110 engineering services to industrial, commercial, The Washington County Chamber of Commerce is the T: 412-469-9331 | F: 412-469-9336 and community based clients. The firmL specializesoans... www.kuresources.com largest business organization in Washington County in brownfield redevelopment, environmental site Tysen Miller – [email protected] and the second largest chamber of commerce in assessment, economic revitalization assistance, Southwestern Pennsylvania. The Chamber focuses on regulatory permitting and compliance, remediation KU Resources, Inc. provides a full range of economic and business development initiatives to expand design and implementation, and environmental risk environmental management and site development the economy of Washington County and was one of the management strategies. The firm’s engineering and engineering services to industrial, commercial, first organizations to publically support the economic and anda community based clients. The firm specializes environmental consulting capabilities also include benefits and job creation potential of the natural gas the areas of civil and geotechnical engineering, site in brownfield redevelopment, environmental site industry. Learn more at www.washcochamber.com. development engineering, water resources engineering, assessment, economic revitalization assistance, mining and quarry services, water quality monitoring, regulatory permitting and compliance, remediation and air quality compliance and permitting. design and implementation, and environmental risk diffemanagementR strategies.ence. The firm’s engineering and environmental consulting capabilities also include the areas of civil and geotechnical engineering, site development engineering, water resources engineering, Westmoreland County Industrial You need a bank you can count on for financing. But if the conversation stops at interest rates ”and payment plans, are you gettingmining your andmoney’s quarry worth? services, We’re a mutual water bank, quality independent monitoring, like Development Corporation you. We know having experiencedand professionals air quality on compliance your side makes and a difference. permitting. That’s why you’ll 5th Floor, Suite 520, have your own Dollar Bank business banker. A lender, yes. And more – someone who’ll get to know 40 North Pennsylvania Ave., Greensburg, PA 15601 your business and bring you ideas to build your future. T: 724-830-3061 | F: 724-830-3611 Ready foR a bank that invests in you? Let’s taLk @412.261.8130. www.westmorelandcountyidc.org Lennon, Smith, Souleret FINANCE Jason W. Rigone, Executive Director Engineering, Inc. coRpoRate banking · business banking · tReasuRy management · commeRciaL ReaL estate · pRivate banking [email protected] 846 Fourth Ave., Coraopolis, PA 15108 Founded in 1983 by the Westmoreland County Board T: 412-264-4400 of Commissioners, the Westmoreland County Industrial www.lsse.com Development Corporation (WCIDC) implements a Kevin A. Brett, P.E. – [email protected] comprehensive economic development strategy to Established in 1985, Lennon, Smith, Souleret Engineering promote growth in terms of job creation, economic (LSSE) is a civil engineering and surveying firm with offices Dollar Bank output and a stable tax base for Westmoreland County. located in Coraopolis (Allegheny County) and Greensburg Three Gateway Center Through the development of a county-wide industrial (Westmoreland County), PA. LSSE hasEqual Housingprovided Lender. Member planning, FDIC. Copyright © 2012, Dollar Bank,401 Federal SavingsLiberty Bank. Ave., Pittsburgh, PA 15222 BUS037_12 park system, a responsive Business Calling Program and surveying and design services for sites throughout T: 412-261-7515 involvement in public/private partnerships, WCIDC strives Pennsylvania and Ohio, including Pittsburgh’s South www.dollar.bank David Weber – [email protected] to foster business growth, resulting in job opportunities for Side Works and South ShoreBUS037_12.indd Riverfront 1 Park; an 833- 2/14/12 11:08 AM the citizens of Westmoreland County. acre industrial park site in Allegheny County; 50 big-box As your business changes, you’ll need the flexibility commercial sites; 20 warehouse/package delivery sites; to respond to market opportunities by purchasing residential developments comprising over 4,000 housing equipment, expanding your facilities or increasing working capital. Your credit needs will change as your business units; institutional sites; brownfield redevelopment grows, so your overall credit plan should address short- and unique, mixed-use recreational, commercial and term demands as well as long-term growth. Dollar Bank’s ENGINEERS residential sites. 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.

Civil & Environmental Consultants, Inc. David E. Wooster and Associates, Inc. 333 Baldwin Rd., Pittsburgh, PA 15205 KeyBank Real Estate Capital T: 800-365-2324 2 East Crafton Ave., Pittsburgh, PA 15205-2804 11 Stanwix St., 15th floor, Pittsburgh , PA 15222 www.cecinc.com 341 Science Park Dr., Ste. 205, State College, PA 16803 www.KeyBank.com Gregory P. Quatchak, P.E. – [email protected] T: 412-921-3303 | C: 412-491-6132 Kris Volpatti, SVP – [email protected] Civil & Environmental Consultants, Inc. (CEC) is a www.dewooster.com T: 412-807-2834 company of professionals who provide integrated design Chuck Wooster, President As one of the nation’s leading providers of commercial and consulting services at all points in a property’s life [email protected] and multifamily real estate finance, our focus is always cycle. CEC’s industry experts offer a full complement of Since 1971, our firm has been a highly regarded and on building long-term relationships with new ideas and evaluation, technical and regulatory insight. Our value respected leader in the traffic engineering industry. We innovative thinking. So, no matter the size of the deal, KeyBank’s broad financing options, integrated platform and lies in the practical knowledge senior leaders contribute are most proud of our uncompromising integrity. Our along with our broad skill-sets and desire to advance deep industry experience gives our clients what they need goal is to guide our clients through the rigorous process to meet their short- and long-term goals. Our real estate our clients’ strategic objectives. We’re building trust of real estate development and assist them by correctly and our reputation on a local level through personal teams support Multifamily Mortgage Lending, Commercial identifying on-site and off-site traffic impacts, develop Mortgage Production, Healthcare Real Estate, Institutional business relationships while continually assessing cost effective and efficient mitigation strategies, and seek REITs & Funds, Loan Servicing & Asset Management, our environmental and economic sustainability in the and receive municipal and State DOT approvals and/or Affordable Housing and Income Property Group. communities where we practice. permits. Our skills include: Traffic Engineering Studies, Highway Occupancy Permits, Traffic Signal System Design, Roadway Design, Intersection Design, and Parking Studies.

76 DEVELOPING PITTSBURGH | Fall 2018 INDUSTRY / TRADE GROUP

PNC Real Estate 300 Fifth Ave., Pittsburgh, PA 15222 www.pnc.com/realestate CREW Pittsburgh T: 412-762-5619 P.O. Box 195 Lou Stempkowski, SVP - [email protected] Gibsonia, PA 15044 PNC Real Estate is a leading provider of banking, financing www.crewpittsburgh.org and servicing solutions for commercial real estate clients. American Subcontractors Assn. of WPA [email protected] Our capabilities include acquisition, construction and 565 Callery Rd., Cranberry Twp., PA 16066 Membership in the Commercial Real Estate for Women (CREW) permanent financing for developers and investors; agency T: 724-538-8227 | F: 724-538-8227 Network offers unparalleled business development, leadership financing for multifamily properties; and debt and equity www.asawpa.org opportunities, and networking opportunities both in your capital for the affordable housing industry. And, through Angie Wentz, Executive Director local market and globally across our 10,000+ members in 70+ Midland Loan Services, we provide third-party loan [email protected] markets around the world. The Pittsburgh chapter has 20+ servicing, asset management and technology solutions. years of providing networking opportunities and educational ASA Western PA, the American Subcontractors Association programs to its members and the community. Having a global of Western PA, is a non-profit organization dedicated to the commercial real estate network at your fingertips and having representation and advocacy for the subcontractor, specialty your contact info in that global network have never been more trade contractor, supplier and service provider business important in the greater Pittsburgh region than it is now. community; promoting an equitable business environment Rose Finance LLC through providing professional education, networking opportunities, government advocacy and influence throughout T: 412-469-0204 the construction industry. ASA was founded in 1966, our chapter www.rosefinancellc.com was established in 1989. ASA of Western PA has been around Autumn Harris, Owner for 26 years. Learn more about what ASA Western PA can do for [email protected] your company by visiting our website or contacting the office. Rose Finance is a commercial real estate mortgage brokerage committed to assuring that its clients Ironworker Employers Association of maximize capital for their projects and properties. Founder Autumn Harris is a seasoned commercial real Western Pennsylvania estate finance veteran with an extensive institutional Foster Plaza 9 banking background combined with placing loans for 750 Holiday Dr., Suite 615, Pittsburgh, PA 15220 a commercial real estate owner/developer giving her T: 412-922-6855 a very deep network. Rose Finance arranges capital www.iwea.org for acquisition, construction, permanent and bridge Builders Guild of Western PA, Inc. David D. Daquelente, Executive Director financing for multi-family, assisted living, retail, office, 631 Iron City Drive, Pittsburgh, PA 15205 [email protected] T: 412-921-9000 hospitality and industrial warehouse/flex space. Harris The IWEA is a Trade Association of Union Contractors who has structured deals ranging from $5MM-$150MM with Jeff Nobers, Executive Director [email protected] work in all aspects of the Ironworking Trade within the complicated, multi-layer capital stacks, including tax Construction Industry. We are a resource for all owners, credits for both private developers and REITS. A unique, non-profit labor/management initiative, developers and contractors who are looking for a qualified representing 16 building trade unions and nine affiliated contractor with a well-trained workforce. Visit our website contractor associations. The Builders Guild is a positive or call our office for additional information. forum for labor, management, and community GEOTECHNICAL ENGINEER relationships, and fosters a cooperative and productive climate for regional commercial construction development. Through the Builders Guild, unions and management have forged fair and equitable working partnerships which promote economic and professional growth. Guild initiatives include: Master Builders’ Association ACA Engineering, Inc. • Promoting the professionalism, skill, and pride inherent 631 Iron City Dr., Pittsburgh, PA 15205 410 North Balph Ave., Pittsburgh, PA 15202 with union construction; T: 412-922-3912 T: 412-761-1990 www.mbawpa.org www.acaengineering.com • Training for long-term careers in the construction trades; Leading the Industry, Building the Region! The Master Thomas R. Beatty, P.G. – [email protected] • Providing a reliable, skilled and diversified workforce; Builders’ Association represents the preferred commercial Facilitating diverse partnerships with like-minded ACA Engineering, Inc. is an independently owned and operated contractor in our region. Collectively, the membership organizations throughout Western Pennsylvania. geotechnical and environmental engineering, materials testing accounts for over 80% of the commercial construction and inspection firm with offices in Pittsburgh, Mechanicsburg, in our area and the MBA contractors have built over and Laporte PA, and Youngstown, OH. Our engineers, 90% of the square-footage of LEED certified buildings in geologist, draftspersons, inspectors, and technicians provide the Pittsburgh region. With skilled labor, superior safety quality designs, engineering studies, surveys, and project services and the latest technology, the MBA contractor is management. Our senior staff has a combined experience of over 100 years in engineering, construction inspection, the best value. 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.

www.developingpittsburgh.com 77 LAND SURVEYORS

Red Swing Group NAIOP Pittsburgh One Monroeville Center Rosslyn Commons 3824 Northern Pike #800 333 Baldwin Rd., Pittsburgh, PA 15205 Monroeville, PA 15146 www.naioppittsburgh.org T: 724-325-1215 Brandon Mendoza, Executive Director Red Swing Consulting Services views its Clients as [email protected] GAI Consultants, Inc. Partners; focusing first and foremost on building and NAIOP Pittsburgh is the regional association of 385 E. Waterfront Dr., Homestead, PA 15120 maintaining strong relationships and trust. This mutual developers, owners, investors, and professionals in T: 412-399-5491 trust is the foundation of a solid business partnership. Red commercial real estate. We are the leading industry www.gaiconsultants.com Swing offers Land Development Consulting Services to resource to foster business relationships, promote Patrick M. Gallagher, Vice President take a project from concept through construction. Red responsible development and support growth of the [email protected] Swing has experience in Surveying, Civil Engineering, region through education, leadership, and advocacy. Visit Infrastructure, Utility, and Telecommunications Projects. Transforming ideas into reality since 1958, GAI Consultants Red Swing effectively maximizes the return on investment naioppittsburgh.com for additional information or contact is an employee-owned engineering, planning, and [email protected]. through a collaborative design approach, utilizing a low environmental consulting firm providing expertise to impact design philosophy that reduces project capital energy, transportation, development, government, and costs and produces the competitive edge that we and our industrial clients worldwide. We serve highly respected partners demand. global energy and manufacturing firms, transportation INSURANCE agencies, and national developers, as well as local communities and state and federal government. With a highly skilled staff of engineers, planners, environmental scientists, and other professionals, GAI approaches every endeavor with enthusiasm, trust, and integrity. Today, GAI employs nearly a thousand professionals throughout the United States. Get to know GAI | gaiconsultants.com RIG Consulting, Inc. outreach, and 3D visualizations. 100 Ryan Court #9 Simpson & McCrady LLC Pittsburgh, PA 15205 310-330 Grant St., Ste. 1320, Pittsburgh, PA 15219 T: 412-276-2027 T: 412.261.2222 www.rig-consulting.com [email protected] Glen Rudzinski - [email protected] Simpson | McCrady is a boutique risk management firm RIG Consulting, Inc. was established in May of 2005 with a tailored approach to client management services. and certified as a Woman-Owned Business Enterprise Our firm prides itself on providing our client base (WBE). We offer: Surveying and Right of Way of Services, with access to specialists in all areas of the insurance Lennon, Smith, Souleret Construction Management and Construction Inspection industry including Commercial Insurance, Private Client Services, and Design Support Services. RIG has an Services, Employee Benefits and captive risk alternatives. Engineering, Inc. extensive workload partnering with Prime Consultants We strive to go above and beyond taking care of your 846 Fourth Ave., Coraopolis, PA 15108 insurance needs by providing risk management tools across Delaware, Maryland, New Jersey, New York, Ohio T: 412-264-4400 and Pennsylvania. In addition, RIG provides a broad range and solutions through our trusted vendors. As one of www.lsse.com the largest personal and commercial insurance advisors of survey and right-of-way services to public agencies, Kevin A. Brett, P.E. – [email protected] in Pennsylvania, we have the expertise to handle any utility agencies, developers, and private entities. account size anywhere in the world. Established in 1985, Lennon, Smith, Souleret Engineering (LSSE) is a civil engineering and surveying firm with offices located in Coraopolis (Allegheny County) and Greensburg (Westmoreland County), PA. LSSE has provided planning, LEGAL SERVICES INTERIOR DESIGNER surveying and design services for sites throughout Pennsylvania and Ohio, including Pittsburgh’s South Side Works and South Shore Riverfront Park; an 833- acre industrial park site in Allegheny County; 50 big-box commercial sites; 20 warehouse/package delivery sites; residential developments comprising over 4,000 housing units; institutional sites; brownfield redevelopment and unique, mixed-use recreational, commercial and Babst Calland residential sites. Two Gateway Center 603 Stanwix St., 6th Floor, Pittsburgh, PA 15222 T: (412) 394-5400 Design 3 Architecture PC www.babstcalland.com 300 Oxford Dr. Suite 120, Monroeville, PA 15146 Justin D. Ackerman, Esquire T: 412-373-2220 [email protected] www.d3a.com Marcia L. Grimes, Esquire William Snyder – [email protected] [email protected] Design 3 Architecture has been offering architecture, Peter H. Schnore, Esquire planning, and interior design services to the Pittsburgh [email protected] region since 1982. We view inherent project constraints Babst Calland’s attorneys offer experienced legal counsel as potential opportunities for innovative design solutions. in real estate development, finance, construction, energy, With a philosophy grounded in team collaboration, environmental risk assessment, zoning and land use, providing both personal attention and project leadership, tax assessment appeals, eminent domain, and other Design 3 Architecture does more than solve problems. We corporate and litigation services. We provide creative, provide solutions that are unique, exciting and affordable. pragmatic advice to developers, landlords, tenants, investors, brokers and managers of commercial real estate to help them reach their goals, through attentive service that keeps the client’s bottom line in mind. From acquisition to disposition, our approach to the practice of law gives our real estate clients an edge.

78 DEVELOPING PITTSBURGH | Fall 2018 THE TECH FORGE ON 47TH LAWRENCEVILLE, PA 15201 Approximately 18,000 square feet remaining

Leasing Inquiries? Contact: Emily Sipes, 412.697.3203 or [email protected]

8 1

20 Fall

A BOLD TRANSIT AmeriServ Trust And Financial Services Company – Trustee VISION PenTrust Real Estate Advisory Services, Inc. – Investment Advisor

Oxford Development Company’s Riverfront West at 3 Crossings Built with ERECT Funds

ANOTHER PUBLICATION FROM CARSON PUBLISHING INC. • Print & Electronic Publishing • Graphic Design • Website Design • Print & Production Building Solid Investment Returns For Tomorrow, 412-548-3823 And Creating Union Jobs Today carsonpublishing.com For more information call 412-279-4100.

www.developingpittsburgh.com 79 REAL ESTATE BROKERS SPECIALTY CONTRACTORS COMBINED HEAT & Meyer, Unkovic & Scott LLP Henry W. Oliver Building POWER PLANTS 535 Smithfield Street, #1300 Pittsburgh, PA 15222

The Real Estate & Lending Group recognizes the importance of understanding our clients’ business Avison Young objectives and providing timely, creative, and cost- 4 PPG Place, Ste. 300, Pittsburgh, PA 15222 LLI Engineering effective solutions. We work with financial institutions, T: 412.944.2137 | F: 412.944.2124 1501 Preble Ave, Suite 300, Pittsburgh, PA 15233 manufacturers, shopping center and mixed-use property www.avisonyoung.com T: (412) 904-4310 owners, brokers, developers, buyers, sellers, landlords, Brad Totten, Principal and Managing Director www.LLIEngineering.com [email protected] and tenants. Our team handles a broad range of matters James D. White, PE, LEED AP such as contract negotiation, site acquisition and Avison Young is the world’s fastest-growing commercial [email protected] development, evaluation of potential environmental real estate services firm. Headquartered in Toronto, LLI Engineering provides mechanical, electrical, issues, site planning, commercial loan closings, and Canada, Avison Young is a collaborative, global firm architectural, commissioning, and structural engineering zoning variances. Our team also handles land use, title owned and operated by its principals. Founded in 1978, services. Since 1910, LLI Engineering has been consistently insurance, residential transactions, oil and gas leasing the company comprises 2,600 real estate professionals recognized for providing top-quality engineering design issues and tax assessment appeals. in 84 offices, providing value-added, client-centric services. We specialize in commercial, critical facilities, investment sales, leasing, advisory, management, education, healthcare, industrial, infrastructure upgrades, financing and mortgage placement services to owners green building design, energy conservation modifications, and occupiers of office, retail, industrial, multi-family and project engineering, and engineering estimates. Located in hospitality properties. PROFESSIONAL SERVICES Pittsburgh, Pennsylvania, LLI Engineering has completed projects in over 20 different states.

Newmark Knight Frank 210 Sixth Avenue #600, Pittsburgh, PA 15222 WATER MANAGEMENT T: 412-281-0100 www.ngkf.com David E. Wooster and Associates, Inc. Gerard McLaughlin – [email protected] Louis Oliva – [email protected] Newmark Knight Frank is one of the world’s leading 2 East Crafton Ave., Pittsburgh, PA 15205-2804 commercial real estate advisory firms. Together with 341 Science Park Dr., Ste. 205, State College, PA 16803 London-based partner Knight Frank and independently- T: 412-921-3303 | C: 412-491-6132 owned offices, NKF’s 15,000 professionals operate from www.dewooster.com more than 400 offices in established and emerging Chuck Wooster, President GAI Consultants, Inc. property markets on six continents. With roots dating [email protected] 385 E. Waterfront Dr., Homestead, PA 15120 back to 1929, NKF’s strong foundation makes it one T: 412-399-5491 Since 1971, our firm has been a highly regarded and of the most trusted names in commercial real estate. www.gaiconsultants.com respected leader in the traffic engineering industry. We NKF’s full-service platform comprises BGC Partners’ real Patrick M. Gallagher, Vice President are most proud of our uncompromising integrity. Our estate services segment, offering commercial real estate [email protected] goal is to guide our clients through the rigorous process tenants, landlords, investors, and developers a wide range of real estate development and assist them by correctly of services including leasing; capital markets services, Transforming ideas into reality since 1958, GAI Consultants identifying on-site and off-site traffic impacts, develop including investment sales, debt placement, appraisal, is an employee-owned engineering, planning, and cost effective and efficient mitigation strategies, and seek and valuation services; commercial mortgage brokerage environmental consulting firm providing expertise to and receive municipal and State DOT approvals and/or services; as well as corporate advisory services, consulting, energy, transportation, development, government, and permits. Our skills include: Traffic Engineering Studies, project and development management, and property and industrial clients worldwide. We serve highly respected corporate facilities management services. Highway Occupancy Permits, Traffic Signal System Design, global energy and manufacturing firms, transportation Roadway Design, Intersection Design, and Parking Studies. agencies, and national developers, as well as local communities and state and federal government. With a highly skilled staff of engineers, planners, environmental scientists, and other professionals, GAI approaches every TARQUINCoRE, LLC endeavor with enthusiasm, trust, and integrity. Today, 2403 Sidney St., Ste. 200, Pittsburgh, PA 15203 GAI employs nearly a thousand professionals throughout T: 412-381-7433 | F: 412-381-6793 the United States. Get to know GAI | gaiconsultants.com www.Tarquincore.com outreach, and 3D visualizations. Ronald J. Tarquinio, Principal – [email protected]

TarquinCoRE is: TRUSTWORTHY – a full-service commercial real estate company dedicated to positioning its clients for success by providing unparalleled levels of value-added service. INNOVATIVE – represents developers, property owners and tenants and provides a broad array of services. TarquinCoRE can help you maximize options, seize opportunities, avoid potential pitfalls and expedite transaction time. EXPERIENCED – clients work directly with one of the firm’s principals – not with multiple layers of changing personnel. This means you are represented by an experienced, knowledgeable commercial real estate expert with absolute accountability to your needs.

www.developingpittsburgh.com 80 setting the performance standard for 25 years

One Call. One Source. Complete Satisfaction. Burchick Construction Company, Inc. 500 Lowries Run Road • Pittsburgh, Pennsylvania 15237 Telephone: 412.369.9700 • Fax: 412.369.9991 • www.burchick.com 412.682.3810 412.261.8810

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