PITTSBURGH – The Buccini / Pollin Group announced last week that it has closed more than $ 200 million in construction financing for its 26-story FNB Financial Center project, located in the Lower Hill district of Pittsburgh.
Equity for the project was provided by Clay Cove Capital, one of the largest minority-owned real estate investment firms in the country. It is one of the largest community reinvestment projects in the state of Pennsylvania and has been recognized as a model of inclusive development in the United States. A groundbreaking ceremony for the project took place on September 1.
“We are proud to take such important steps on this transformation project, made possible by the strong partnership behind the FNB financial center,” GPB Co-Chair Chris Buccini said in a statement announcing the funding. “This partnership is made up of champions, and this project would not have happened without our partners’ love for their hometown and our collective commitment to making Pittsburgh a better place for all of its residents. We are excited about the future of this city, this community and this important investment, and look forward to working together to achieve great things in Historic Hill.
The team’s community reinvestment efforts have been given a significant boost since closing, as the transaction has provided over $ 7 million in monetized tax rebates to the community-led Greater Hill District Reinvestment Fund. The funding will be used to invest in development projects and other community needs in the neighborhood, as outlined in the Community Collaboration and Implementation Plan (CCIP) between the neighborhood and the developers. Possible applications for funding could include local redevelopment projects, youth education programs, rent and mortgage assistance, and other wealth creation and capacity building efforts.
No other development in the City of Pittsburgh has ever generated such a large direct financial impact to help invest in an adjacent underserved neighborhood.
Based on the estimates, the Lower Hill tax abatement district could generate up to $ 40 million in total for Greater Hill starting with the FNB financial center. The 26-story mixed-use tower is designed to kick off the redevelopment of Pittsburgh’s historic district and serve as the headquarters of FNB, the parent company of First National Bank.
The tower is expected to generate 1,250 construction jobs, 2,000 permanent jobs and more than $ 40 million in investment in the Middle and Upper Hill districts. It will contain more than 475,000 square feet of Class A office space, consolidate operations at FNB’s regional headquarters, and include open spaces and terraces for community events in the plaza adjacent to the FNB Financial Center.
Construction of the tower at Bedford Avenue and Washington Place will further restore connections between the Greater Hill District and downtown Pittsburgh and is the first step in an estimated $ 1 billion redevelopment of the former Civic Arena site of 28 acres run by BPG, the Pittsburgh Penguins and their partners.
Construction of the FNB Financial Center will be led by PJ Dick and is expected to be completed by the end of 2023. Internationally renowned Gensler is leading the project design team. JLL’s Pittsburgh office is responsible for the commercial rental efforts.