RAVENSWOOD, W.Va. — A company that specializes in remediation has agreed to purchase the Century Aluminum plant in Ravenswood with plans to place one of its own subsidiaries on the site while also making lots available for other companies. With a major real estate transaction like this, it is recommended that the parties involved should consider consulting with a real estate attorney to review the details of the purchase.
If you’re looking to invest in Commercial Real Estate, it’s essential to work with an attorney who specializes in this area to ensure that you’re making informed decisions and that your interests are protected.
Applied Partners, which is incorporated in Delaware, will pay $15 million for the plant and property with plans to tear down the facility and redevelop about 1,800 acres.
The planned purchase was filed with the federal Securities Exchange Commission on Dec. 2 and should be completed by the end of next March.
Allied Partners describes itself as a leading development company that specializes in reclaiming commodity assets and preparing properties for future adaptive physical reuse and economic renewal.
In an interview, Applied Partners President Mark Cenit heaped praise on the property, West Virginia’s beauty and the cooperation his company has gotten from local and state officials.
“It’s lovely country,” he said. “It really is beautiful.”
Once the property is purchased, Cenit said, the existing Century plant will be torn down. The plant, which was closed permanently in 2009 because of fluctuations in the international aluminum market, will never produce aluminum again.
“We’re going to bring the entire site down to ground level” while working with the state Division of Environmental Protection, he said.
“This land is just — it’s perfect. It’s on the rail line. It’s on the water. I can’t tell you how many people have called since the word got out,” Cenit said. “There’s been far more interest than I expected when we first started talking with people.”
He said his company is working with a number of potential purchasers for different parts of the property: “I hate the expression — but to have it ‘shovel ready.'”
One of his company’s own subsidiaries that specializes in remediation, Applied Plasma, will move its headquarters to West Virginia and will be based at the Century Aluminum property.
Applied Partners could take an interest in some of the other companies developing property at Century Aluminum, but otherwise it won’t built a plant itself, Cenit said.
Early word on the property was that it would be developed into a coal-to-gas facility. Cenit provided few details but said that remains in the mix.
“That’s one of the people that are in deep conversations, so that’s definitely a possibility,” he said.
He said his company has been doing this sort of work for eight or nine years, including six or seven projects in the Midwest. This would be the first in West Virginia, but he said most of the projects are similar.
“There’s a lot of old plants that would cost more to renovate than to knock down and start over,” he said. “We do what we’re doing here for the most part.”
Jackson County Development Authority Director Mark Whitley the remediation that some parts of the property will go through could require some time for development.
“From the plant’s perspective, it’s going to be somewhat time consuming. But it doesn’t stop us from getting in touch with companies for the rest of the property, which is all greenspace,” Whitley said.
The property could be divided into spaces appropriate for each investor’s needs: “All the way up from several hundred acres to 5-acre tracts, for example,” Whitley said.
“We’ve been in discussions with at least two, maybe three companies that have a desire to purchase land for their operations.”
Another use for the property is likely to make space for a second industrial park for Jackson County.
“We really concentrated three or four years ago to diversifying our economy,” Whitley said. “Our whole economy for a period of time was centered around that one plant. Constellium is still doing very, very well and we’re glad they’re here, but it takes a combination of several different operators to have a viable economy.”
State Senator Mitch Carmichael, R-Jackson, stated he’s thrilled about the potential for development.
“I am so pleased that Applied Partners, and its president Mark Cenit, believe the Century Aluminum site is ‘one of the finest industrial properties in West Virginia.’ I couldn’t agree more. I have always believed in the potential of that location, and I am committed to do everything I can to make West Virginia as attractive as possible to companies who may look to locate there.
“I look forward to a continued, productive relationship with Applied Partners, and I am grateful to have partners in this project like the Jackson County Commission and the West Virginia Department of Commerce.”