The University of Pittsburgh will use an additional $1.5 million in funding generated through the federal New Markets Tax Credit (NMTC) program to support ongoing construction at Pitt BioForge, a biomedical manufacturing innovation center that promises to transform the way precision medicines are developed and delivered.
“The financing structure used here represents an innovative way to fund capital expenditures associated with such an important project—one that positions the University and city as leaders in delivering life-changing therapies to patients who need them quickly and more affordably,” said Jeffrey Bees, vice chancellor for finance and resources, health sciences, and vice dean for finance, School of Medicine.
Administered by the U.S. Treasury, the NMTC program annually supplies more than $5 billion to support investments in low-income communities to promote job creation and deliver health, education and other social services for local residents.
Pitt Trustees in December approved the transaction through structured financing totaling $9 million, consisting of the tax credit proceeds and matching funds supplied by PNC Bank and MBS Urban Initiatives (MBS-UI), the NMTC affiliate of locally active and national affordable housing developer McCormack Baron Salazar. Pittsburgh-based Grow Community Development Capital, a finance consulting firm, facilitated the transaction.
Ultimately, the amount Pitt will gain through the financing to use on construction is the $1.5 million.
“While complex, this tax credit investment represents resources too infrequently utilized in the Greater Pittsburgh region that our national practice was proud to secure for Pitt,” said Joshua Lavrinc, Grow’s managing principal. “We anticipate this successful investment will be followed by an additional NMTC investment in 2026 and will open the door for funding for additional Pitt projects in the future.”
“Through the federal NMTC program, we’re proud to support Pitt BioForge with additional capital that keeps construction momentum strong and advances a worldclass hub for precision medicine in Hazelwood,” said John Nunnery, senior vice president and manager of Tax Credit Originations at PNC Real Estate. “This collaboration demonstrates how innovative financing can catalyze investment, create quality jobs and expand training pathways for residents in the surrounding community.”
Cady Seabaugh, senior vice president and director of New Markets for MBS-UI said, “Pittsburgh is a second home and a primary city for McCormack Baron. Our investment of $8 million in NMTC allocation will directly grow and diversify the economy of the region while bringing accessible, high-quality jobs to its residents, without straining the economics of the project.”
BioForge, a $255 million project under construction at Hazelwood Green, is being built on a former brownfield that was home to the city’s last operating steel mill, run by LTV Steel (formerly Jones & Laughlin Steel), which closed in 1998. It will serve as a hub for innovation in the development and manufacturing of precision medicines, including cell and gene therapies.
BioForge construction is expected to finish by fall of 2026. Massachusetts-based ElevateBio, which specializes in manufacturing precision medicines, plans to begin operations at BioForge in the first half of 2027. BioForge, LLC, a Pitt subsidiary dedicated to developing breakthroughs in biomanufacturing, expects to move in by spring of 2028 but already has projects underway at a temporary facility.
Pitt anticipates that ElevateBio, the center’s anchor tenant, will create as many as 170 local jobs in its biomedical manufacturing operations. Many of those jobs will be accessible and afford training opportunities for members of the surrounding community and region.
“One important goal for Pitt and its NMTC funding partners is to recruit and train residents who call the Greater Hazelwood area home and want to get a foot in the door in a growing and sophisticated industry,” said Cameron Dively, director of marketing for Grow. “These are planned to be well-paying jobs with great benefits—ranging from technicians working in clean rooms to equipment operators.”
Media contact: HSNews@pitt.edu