McDonald Steel Site Set to be Demolished, Redeveloped
MCDONALD, Ohio – A company that specializes in acquiring decommissioned industrial properties and redeveloping these sites has purchased the former McDonald Steel Corp. property at 100 Ohio Ave., executives say.
An affiliate of Applied Partners LLC – AP McDonald LLC – purchased the 650,000-square-foot industrial complex and its approximately 50 acres for $3.25 million, according to data from the Trumbull County Auditor’s office. The sale was recorded July 23, according to records. Applied Partners is incorporated in Delaware.
The plan going forward is to demolish the structures and redevelop the site, said AP spokesman Mike Cenit. “Applied Partners is proud to be part of Ohio’s continued reindustrialization,” he said, noting the company would work with state, county and village officials to create a plan to repurpose the property.
“We’re pleased that the sale has taken place not only because it provides significant financial flexibility to McDonald Steel Corp., but also because it means that rather than becoming another deteriorating industrial facility, the site will become a vibrant center for economic growth in our community,” said James Grasso, president of McDonald Steel.
The building was constructed in 1918 as part of U.S. Steel Corp.’s McDonald Works. In 1979, U.S. Steel shuttered the facility, citing its inability to operate profitably. In 1981, investors led by the venture capital firm Torent Inc., which included David Tod and attorney Daniel Roth, acquired the mill and began producing hot-rolled steel shapes as McDonald Steel Corp.
Last year, however, McDonald Steel announced it would end operations at its 14-inch mill that was housed at the plant because of “age related issues and increasing operating costs,” the company said in a statement.
McDonald Steel continues to operate McDonald Steel Plate, which processes steel-plate products at its Cleveland plant. The company also produced CNC-milled joint rail bars for railroads across the United States.
The property was listed in January through Platz Realty Group, and the sale was conducted by agents Bill Kutlick and Adam Divelbiss.
“We had 15 showings at least, and we had seven letters of intent,” Kutlick said. “We got a price over our asking price.”
Kutlick said the infrastructure at the site was key to attracting a buyer. “I can’t stress enough how important electric and utilities are to an industrial site,” he said.
Divelbiss added that there were a variety of buyers interested in the site. “It was the power, the size, the industrial land and the water” that attracted would-be buyers.
Grasso added that the sale of these facilities, combined with the company’s entry into the joint rail bar market and the 2023 purchase of General Steel Corp., now renamed McDonald Steel Plate, are key to McDonald’s long-term growth.
“AP has successfully redeveloped decommissioned industrial properties across the country, and we’re confident that success will be repeated in McDonald.”
Copyright 2024 The Business Journal, Youngstown, Ohio.
