BGL Real Estate Advisors LLC (BGL) is pleased to announce the successful completion of development financing for MCM Development Group. The multi-faceted capital structure will support the historical restoration of the Heinz Service Building in Pittsburgh, Pennsylvania.
The $37.25 million financing consisted of: (i) a $20.0 million senior loan, (ii) $6.64 million in subordinated debt, (iii) a $5.06 million Federal Historic Tax Credit and Redevelopment Assistance Capital Program (RACP) Grant bridge loan, (iv) $1.85 million Federal Historic Tax Credit Equity, (v) $200,000 State Tax Credit Equity, (vi) $2.0 million RACP Grant, and (vii) $1.5 million sponsor equity. Financial institutions including Northwest Savings Bank, National Trust Community Investment Corporation, and Cedar Rapids Bank & Trust, as well as multiple federal and state agencies were represented in the transaction.
The Heinz Service Building is a 151-unit multifamily historical restoration project situated on 1.007 acres in Downtown Pittsburgh. The four-story brick office/industrial building was constructed in the 1930’s and was the original headquarters of the H.J. Heinz Company. The Heinz Service Building is being fully restored in compliance with the Secretary of the Interior Standards of Rehabilitation including new historically accurate windows, façade restoration, roof, building systems, and utility connections. This project complements the Heinz Lofts, located on Pittsburgh’s North Side, which consisted of five historic buildings that were former H.J. Heinz food processing facilities and converted in 2005 into 267 fully occupied luxury apartment units by BGL client The Ferchill Group.