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Ever since he and several local investors in 1996 purchased the vacant Armstrong Cork factory in the Strip District, he has tried to find a developer who would convert the vacant, deteriorating buildings into sparkling, new loft apartments.

After several failed attempts, on Thursday, Hammel saw the beginning of his dream come true.

Hammel said Chicago-based McCaffery Interests Inc. has taken over as the general partner and has secured financing to move the project forward.

"There were times when I was down on the project, but my local partner, Robert Beynon of the Beynon Co., always seemed to be able to boost my spirit and keep me involved," said Hammel, president and owner of Pitt Ohio Express, in the Strip District.

The $60 million complex, called the Cork Factory, will include converting the two major buildings on the site at Railroad and 23rd streets, into 295 apartments. Also included are a 442-space parking garage on an adjacent site where 47,000 square feet of retail space will be located.

When completed, probably by the summer of 2006, the two existing buildings will keep their signature smokestack, engine room and other original details, including a bridge connecting the two buildings. Work on the project -- which includes sandblasting, gutting and upgrading the buildings -- began last month.

Dan McCaffery said that when the first units are ready for occupancy, he expects about 30 percent of them to already be leased. The complex will offer studio and one-, two-, and three-bedroom units.

He was drawn to the project by Jules Marling of Chicago, a former partner in the deal. But once he viewed the site, the activity of the Strip District, and the potential he saw in the project, he was hooked.

"How can you do any better than to be a part of the Strip District?" he asked. "You have this vibrant, eclectic neighborhood on one side and a view of the Allegheny River on the other -- that's about as good as it gets."

McCaffery said he would be interested in other projects in the Pittsburgh region, but at this time his energies will be devoted only to the Cork Factory.

McCaffery Interests is a privately held company specializing in the finance, development, construction, leasing and management of urban, mixed-use properties, including retail, hotel and residential.

Both County Executive Dan Onorato and Pittsburgh Mayor Tom Murphy praised the project for converting a blighted area into a major residential complex, and for helping to foster future development in the Strip District, particularly toward Lawrenceville.

Financing has been arranged through two union pension funds. The $47 million first mortgage is through ASB Capital Management Inc. of Washington, D.C. The other union pension group is the local Employees Real Estate Construction Trust, the local lending group of PenTrust Real Estate Advisory Services Inc.

Also involved is the Sherwin Williams Co., Cleveland, which purchased historic tax credits that were approved for the project, the Pittsburgh History & Landmarks Foundation, and the Pittsburgh Urban Redevelopment Authority.

Local labor officials estimate about 250 construction workers will be involved in the project. Plant Construction of San Francisco is general contractor. Graciano Corp. of Pittsburgh will perform facade restoration, which includes removing extensive graffiti and spot-pointing masonry joints, removing and replacing damaged brick, patching or replacing stone architectural features and repairing damaged terra cotta trim.

An artist's rendering shows how the design for the luxury lofts will keep some of the original elements of the site.

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