The latest deal in a string of development projects underway in the City of Coatesville has been announced. Located on the corner of Third Avenue and Lincoln Highway, one of the city’s most prized locations was acquired by Proudfoot Capital from the Coatesville Redevelopment Authority (RDA).

Proudfoot Capital plans to build a four-story, 32,000-square-foot office building and retail complex, ideally suited for professional services, a restaurant, or financial institutions. Proudfoot Capital also purchased an adjacent lot, designed for approximately 70 parking spaces, located on Dr. Martin Luther King Blvd.

“The RDA is excited to work with the leadership of Proudfoot Capital on another downtown property,” said Joseph DiSciullo, Coatesville Redevelopment Authority Chair. “Proudfoot Capital has set the standard for smart, economic projects that will be assets to Coatesville.”

“Over the past decades, I’ve watched this Third Avenue lot transition multiple times, and it’s been sitting empty for nearly two decades,” said Donald Folks, City Council Representative for the 2nd Ward. “Proudfoot Capital has been the engine to bring this space back to life. We look forward to the development and promising future it holds for the City of Coatesville.”

In 2020, Proudfoot Capital developed Chester County’s first Qualified Opportunity Zone (QOZ) real estate project at 190 West Lincoln Highway by renovating and expanding a former Lukens Steel building into a 30,000-square-foot innovation center and office space for early-stage companies.

With the help of the Chester County Economic Development Council’s i2N program, the property was designated a Keystone Innovation Zone (KIZ), designed to attract and provide tax incentives for early-stage companies throughout the region. Now 90 percent leased, it is home to six tech companies including majority tenants H2O Connected and Nth Solutions, a business incubation and manufacturing company.

The QOZ tax incentives and the short timeframe for land development approval make business investment and development in the City of Coatesville quite attractive, according to Susan Springsteen, President of H2O Connected.

“We have been delighted with our decision to move our headquarters to the City of Coatesville,” said Springsteen. “Similarly, the location of the forthcoming office complex is ideal for businesses that want to be in the heart of downtown, within safe walking distance to the Coatesville train station, new restaurants and shops.”

The Proudfoot acquisition will add to Coatesville’s 35 active development projects in the city’s 1.9 square mile footprint.

“The growth of Coatesville is real, and the investments in our city are attracting both locals and newcomers to take a second look at what we have to offer,” said Coatesville City Manager James Logan. “The City of Coatesville has reached a pinnacle point in early-stage urban development, and with the right combination of investor dollars, local talent, funding resources, and innovative thinking, the city will continue to reinvent itself — establishing a sustainable future for the current and next generation of city dwellers.”

According to Proudfoot Capital, construction is anticipated to commence in the fall of 2022.