McCaffery Interests’ $55M project in the Strip District officially begins

Pittsburgh, PA — McCaffery Interests has received approval from the Urban Redevelopment Authority of Pittsburgh (URA) on their plan for the historic Produce Terminal redevelopment, after nearly five years of collaboration with the URA, the City of Pittsburgh and the Commonwealth of Pennsylvania.

“We envision the Strip District Terminal becoming a regional destination – an epicenter for entertainment, dining and shopping – and continuing the neighborhood’s longtime status as one of the most authentic parts of Pittsburgh,” said Mayor William Peduto.

The Produce Terminal has sat mostly vacant for nearly a decade, leaving a five-block stretch of the Strip District empty, in an otherwise thriving neighborhood. The redevelopment will bring 160,000- square-feet of new businesses to the Strip. “We are so pleased that McCaffery will begin redeveloping this former rail facility into an asset that can be enjoyed by all in Pittsburgh,” said Robert Rubinstein, Executive Director of the URA.

In addition to the restoration and redevelopment of the Produce Terminal, the project includes new pedestrian ways to connect the neighborhood, street lights and crosswalks along Smallman Street. Pentrust is providing the TIF loan to fund the improvements to the street. “The City of Pittsburgh has been an active and creative partner in the planning for the building,” said Dan McCaffery. “The Produce Terminal will be McCaffery’s third development in the Strip District following our successful redevelopment of Cork Factory and construction of Lot 24, which brought 394 apartments to the neighborhood,” said Senior Project Manager Pamela Austin. The Produce Terminal is adjacent to another McCaffery project, 1600 Smallman, which will offer over 120,000 square-feet of office space and retail opportunity. Construction will commence in the second quarter of 2019. 

The combined projects of the Strip District Terminal and 1600 Smallman Street represent a $100M investment and is being funded with equity from investment advisor Bentall Kennedy’s U.S. Core Fund. The design of the public realm and related Smallman Street improvements, adjacent to the Produce Terminal, have been led by the City’s Department of Mobility and Infrastructure and will be implemented by both the City and McCaffery, and have been made possible through state grants and local tax increment financing. The developments combined are projected to create 1,039 union construction jobs, 1,242 retail and office jobs, and an annual boost to the economy of nearly $199M when fully operational.