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