Completed in 1990, Century Square underwent renovations in 2016. The retail center encompasses 16 buildings spread across some 64 acres, CommercialEdge also shows.

Anchored by Lowe’s Home Improvement, Hobby Lobby, Shop’n Save, Dunham’s Sports, Luxury Cinemas and Planet Fitness, Century Square also features a diverse mix of regional and national retailers such as Dollar Tree, Taco Bell, Arby’s, Panda Express, McDonald’s, AT&T, First National Bank and Burlington, among others. The property was 82.7 percent leased at the time of sale.

READ ALSO: Net Lease Investment Volume Surges

Located at 1025-4775 Mountain View Drive, Century Square is some 10 miles from downtown Pittsburgh. The shopping center serves around 192,000 residents within a 5-mile radius, with the average household income of $90,434, according to Red Mountain.

Positive results for Pittsburgh’s retail market

Pittsburgh’s retail market recorded positive results in the last quarter of 2024, according to a recent Colliers report. Developers broke ground on some 116,650 square feet of retail space, significantly more than the 24,688 square feet recorded the previous quarter.

Meanwhile, the vacancy rate remained unchanged over the quarter, at 4.9 percent. In addition, last year’s fourth quarter marked the third consecutive quarter of positive absorption for the market, with the year-to-date total to 282,430 square feet.

The post Red Mountain Group Buys Pittsburgh-Area Shopping Center appeared first on Commercial Property Executive.

Employees began moving into the building in November. Currently FNB Financial Center is about 70 percent occupied, with roughly half of that space taken up by FNB. A JLL team led by Market Director JC Pelusi represents ownership in commercial lease negotiations.

Buccini Pollin Group was the lead developer of the building, which was designed by Gensler. Since breaking ground in 2021, the development of FNB Financial Center has generated over $7 million for a Hill District community-directed reinvestment fund and put over $3 million into programs to benefit minority-owned businesses, along with the Hill District Federal Credit Union, according to Buccini Pollin.

The tower features an amenity floor with a fitness center, conference rooms, lounge space and a Wi-Fi-enabled, tenant-only terrace. The bank’s space includes a trading floor for capital markets employees, with a suspended LED stock ticker visible from the building exterior.

READ ALSO: Top 100 Office Leases of 2024 Point to Stabilization

The property has achieved LEED Gold certification, with a number of health- and wellness-oriented features, including floor-to-ceiling windows for natural light and advanced HVAC systems. There is also a ground-floor retail space of 15,000 square feet, with a coffee bar, full-service café and public plazas.

Pittsburgh’s soft office market

In the fourth quarter of 2024, the Pittsburgh market turned in negative net absorption of 109,953 square feet, spurred by losses totaling 142,437 square feet in the central business district, according to JLL data. Much of that was driven by EQT’s downsize at 625 Liberty and FHLB’s departure from 601 Grant St.

Even so, “the completion of FNB Financial Center marked a significant milestone for Pittsburgh’s office market in the fourth quarter,” JLL noted in its market report. “Despite challenging market conditions, the project delivered nearly 70 percent preleased.”

The completion of the building not only changed the downtown Pittsburgh skyline, but it “injected new life” into the Lower Hill District, JLL reported, and will likely be a catalyst for future development in the area.

The post $300M Headquarters Tower Opens appeared first on Commercial Property Executive.

CBL Properties has sold Monroeville Mall and its Annex in Monroeville, Pa., for $34 million. Walmart bought the retail assets totaling 1.2 million square feet, according to CBS News. JLL worked on behalf of the seller, while CBRE Senior Vice President Tom Flynn represented the buyer.

CBL used approximately $7.1 million of the net proceeds to lower the outstanding principal of its outparcel and open-air center loan to $333 million. The deal enabled the release of a collateral parcel.

The retail center traded at an 86 percent discount from its previous sale. CBL had acquired the shopping mall in 2004 for $231.2 million and the transaction included the assumption of a $134 million fixed-rate, non-recourse loan, The Chattanoogan reported at the time.

Redeveloping Monroeville Mall

Monroeville Mall and the adjacent Annex cover an 185-acre site at 200 Mall Circle Drive, just off U.S. Route 22 and close to Interstate 376. Downtown Pittsburgh is less than 13 miles west.

The mall’s roster includes Barnes & Noble, Claire’s, Forever 21, Macy’s, H&M and JD Sports, among others. The Annex has Going Going Gone, Guitar Center, Full Throttle Adrenaline Park and several other retailers as tenants.

Walmart has selected Cypress Equities to manage the property and spearhead its redevelopment into a new retail and commercial destination adapted to the shoppers’ 21 century needs. The last time Monroeville Mall underwent renovations was in 2003, when $10 million contributed to upgrading its decor, as well as installing air chillers.

In 2025, the retail sector is expected to continue the transformation brought about by last years’ trends. Experiential retail and high-quality real estate remain the main drivers for enhancing in-person shopping, as well as reducing vacancies.

The post Walmart Acquires Pittsburgh Mall appeared first on Commercial Property Executive.

The company, a global data center operator with more than 30 sites worldwide, announced the acquisition of the property in Upper Burrell, Pa., for its latest project, TECfusions Keystone Connect. The price TECfusions paid Arconic Corp., a metal manufacturer that was spun out of Alcoa Corp. in 2016, for the 1,395 acres, was not disclosed.

TribLive.com reported TECfusions has already spent more than $150 million to prep Building J on the site and repurpose Buildings C and D. Arconic had announced plans to sell four of seven buildings on the site in 2022, according to the Western Pennsylvania news website. Alcoa still has a presence on the site as well.

READ ALSO: Data Center Demand Keeps Surging, Despite Challenges

By using an adaptive reuse strategy, TECfusions will be able to rapidly deliver infrastructure to meet the growing demand for artificial intelligence and high-performance computing. The company said the campus has 12 MW of immediate capacity. A brochure for the site, located within New Kensington in Upper Burrell Township, notes 1 GW has already been leased. Among the site advantages listed in the brochure are contract to deployment in less than six months and the availability of tax abatements and incentives.

The project has received a $2 million grant from Pennsylvania’s Redevelopment Assistance Capital Program, a program to incentivize design, acquisition and construction of improvement projects. Information released about the funding noted three buildings will be reserve powered by a dual fuel energy-efficient, low-emission on-site microgrid. The number of microgrids is growing throughout the U.S., particularly  for use at energy-intensive properties like data centers, industrial, advanced manufacturing, health-care, retail and critical infrastructure developments.

TECfusions states the facility will feature on-site power generation using natural gas, enabling dual utility and microgrid capabilities that will ensure reliability, efficiency and reduced dependency on increasingly costly utility power. The firm may also export excess power to support the local electrical grid.

The first phase of TECfusions Keystone Connect will include equipment, emergency generation, UPS systems, electric switchgear, transformers, breakers, cabling and building materials, according to the RACP. To be eligible for RACP funding, projects must have a regional or multi-jurisdictional impact and generate substantial increases or maintain current levels of employment, tax revenues, or other measures of economic activity.

Expanding in Virginia

The news about TECfusions’ plans for the Western Pennsylvania data center campus comes just two months after the firm obtained a 15-year loan of approximately $300 million to fund the development and expansion of its Clarksville, Va., data center property. The loan will fund the Phase 1 buildout and other company key initiatives including providing AI-ready infrastructure and sustainable power generation solutions.

The Clarksville site will have four data halls with a combined capacity of 37.5 MW. C-Hall already came online in September and construction of D-Hall is expected to be completed next month.

The expansion was needed to serve the needs of one of its key tenants—TensorWave—which leased 1 GW of AI infrastructure capacity at the facility, marking one of the largest commitments in the sector.

TECfusions acquired the original 22.5-acre site and 196,000-square-foot facility with 500 kilowatts already live and immediately began upgrading it. The company recently acquired 66 acres for a planned expansion.

The post TECfusions Unveils Massive Data Center Campus Near Pittsburgh appeared first on Commercial Property Executive.

Workbox has leased more than 23,000 square feet of office space at One PPG Place Tower in Pittsburgh. Scheduled to open in January 2025, the new coworking location will cover the building’s entire 31st floor.

Highwoods Properties has owned the PPG Place complex since 2011, when it acquired the assets from The Hillman Co., according to CommercialEdge data.

The six Class A buildings came online between 1981 and 1984. Combined, the towers have more than 1.5 million rentable square feet, covering a 5.5-acre site. Amenities include lounges, conference rooms and a tenant-only fitness center. The properties share an underground parking space with 700 spots and eight EV charging stations.

Flex office within the Golden Triangle

One PPG Place is the centerpiece of the office complex, rising 40 stories high. The tenant roster comprises Deloitte, McKinsey & Co., Willis Towers Watson, Insight Global, Morgan Stanley Financial Advisors and Steptoe & Johnson.

The tower is at 1 Third Ave., within downtown Pittsburgh’s Golden Triangle. The property is adjacent to the historic Market Square and across the street from the Red, South Hills Village and Silver light rail lines and several bus stops.

The Workbox Pittsburgh – PPG Place is the company’s first flex office in the state of Pennsylvania and its 11th location nationwide. Six offices are in Chicago, while the other four are in Dallas; Columbus, Ohio; Minneapolis and Salt Lake City.

The post Workbox to Open 1st Pittsburgh Location appeared first on Commercial Property Executive.

The 464,700-square-foot industrial building is a highly desirable asset for a manufacturer, noted Phoenix Investors Chairman & Founder, Frank Crivello. Image courtesy of Phoenix Investors

Phoenix Investors has purchased Joy Plant 1, a 464,700-square-foot industrial property in Franklin, Pa. Joy Global—which is owned by Komatsu Mining Corp.—sold the asset, public records show. The property was occupied by the seller and was used for heavy equipment manufacturing.

The facility is at 325 Buffalo St. Clear heights vary from 28 feet in the manufacturing area to 44 feet in the warehouse space. Other features include seven dock doors, 10 drive-in doors, insulated metal panel walls, a 17,000-square-foot office component, reinforced concrete floors, 42 overhead cranes with capacities up to 40 tons and 525 surface spots spread across two main lots.

Joy Plant 1 is a 47-acre property that allows for access to major transportation routes such as state routes 62 and 322. It is also near another Komatsu Mining Corp. property at 120 Liberty St., as well as the Venango Regional Airport. Youngstown, Ohio, is 59 miles away, Erie, Pa. is 66 miles away, while Pittsburgh is roughly 72 miles away.

The new owner plans to bring the facility online once more. Designed for heavy industrial engagement and with good equipment and infrastructure, the industrial property is a highly desirable asset for a manufacturer, noted Phoenix Investors Chairman & Founder Frank Crivello, in prepared statements.

A growing national portfolio

Phoenix Investors has a track record of generating superior risk adjusted returns, providing cost-efficient lease rates for its growing portfolio and drive the reinvigoration of the economic engines within the communities it serves, Crivello said in a recent article on Commercial Property Executive. The company and its affiliates are specialized in the acquisition and repositioning of industrial manufacturing facilities in the United States.

Recent additions to Phoenix Investors’ portfolio includes a 922,444-square-foot industrial facility in St. Cloud, Minn. The property was used as a freezer manufacturing and production plan until late 2019 by seller Electrolux Group. In September, the company picked up a 5 million-square-foot industrial portfolio and excess land sites totaling over 600 acres in North Carolina and Mississippi. The seller, United Furniture Industries, closed all business operations in late 2022.

The post Phoenix Investors Buys 465 KSF Pittsburgh-Area Industrial Plant appeared first on Commercial Property Executive.

525 William Penn Place. Image courtesy of CBRE

Signature Financial Planning has signed a 10,470-square-foot lease at 525 William Penn Place, a 942,665-square-foot office tower in Pittsburgh. CBRE‘s Senior Vice President Patrick Greene represented the landlord. The local investment advisory firm will relocate to the building’s 34th floor in the fourth quarter of this year.

Originally built in 1951 for U.S. Steel Corp. and Mellon National Bank, the 41-story office property includes 20 passenger elevators, first-floor retail space, as well as floor plates ranging between 22,540 and 24,583 square feet, the same data provider shows. With renovations completed in 2019, the property’s amenity package now includes a common-area lounge, a fitness center, a new lobby and a parking area with valet service.

READ ALSO: A Closer Look at Tech Layoffs’ Impact on Office Leasing

Pearson Partners’ investment in high-quality amenities resulted in a hospitality-oriented workplace, while repositioning the skyscraper as a destination for companies focused on the flight-to-quality trend, said Greene, in prepared remarks. Other tenants at the property include Hartzman Law Firm, Citizens Bank and Pollock Begg, according to CommercialEdge. The landlord purchased the property in 2016 for $67.6 million, according to the same data provider.

Situated on a 0.7-acre lot in downtown Pittsburgh’s Mellon Square Park neighborhood, the property is close to Signature’ other offices at One Gateway Center and 1301 Grandview Ave. Close to Interstate 579 and multiple bus and rail stations, the high-rise is 2 miles from South Side Flats, 3.3 miles from South Side Slopes, 8 miles from the 1.3 million-square-foot Ross Park Mall and within 17 miles of Pittsburgh International Airport.

The post Pearson Partners Secures New Tenant at Pittsburgh Tower appeared first on Commercial Property Executive.

SouthSide Works. Image courtesy of JLL Capital Markets

SomeraRoad has obtained new financial support as it continues redevelopment activity at SouthSide Works, a mixed-use conversion project in Pittsburgh.

With the help of JLL Capital Markets, the real estate investment company secured a $74 million loan for the approximately 470,000-square-foot, master-planned destination.

SomeraRoad’s vision for SouthSide Works was solid enough to attract the attention of the lending community in today’s uncertain financial environment. After all, as noted in PwC and Urban Land Institute’s Emerging Trends in Real Estate 2022 report, the pandemic “hastened the shifts away from malls and high-street retail to more mixed-use centers.”

JLL Capital Markets’ Nick Unkovic and Jeremy Bernstein, represented SomeraRoad in its pursuit of new financing, which comes in the form of a six-year, floating-rate loan through Dollar Bank.

READ ALSO: Financing Net Lease Assets in a Challenging Market

Sponsorship likely played a role in the obtainment of the financing as well. In February 2022, SomeraRoad’s reputation helped the company secure a $525 million loan for the refinancing of a 50-property industrial portfolio.

Financing forward movement

Located in Pittsburgh’s South Side neighborhood, SouthSide Works occupies a riverfront site that had once been home to the former J&L Steel Works. The development made a splash in the city with its debut in 2004, bringing a never-before-seen combination of office and retail—roughly 245,000 and 225,000 square feet each, respectively—to Pittsburgh. However, the project, plagued by a souring retail environment, didn’t take flight as planned, and SomeraRoad officially became owner and operator of the mixed-use property in 2020, after having acquired defaulted loans on the asset in 2018.

SomeraRoad immediately announced plans to invest approximately $130 million in improvements to revitalize SouthSide Works and transform it into a true live-work-play destination. And with pandemic-induced delays now in the rearview mirror, the company’s redevelopment agenda is back on track.

With funds in hand, SomeraRoad is prepared to make more of the changes that will result in SouthSide Works’ new incarnation. The company expects to bolster the five-building property’s success by reeling in the next generation of tenants.

The financing from Dollar Bank for the next stage of SouthSide Works’ makeover comes roughly one year after the completion of the redevelopment of one of the property’s five buildings, the former SouthSide Works Cinema. With architecture firm HOK aboard to spearhead the design, SomeraRoad successfully completed the adaptive reuse of the movie theater into The Box Office, a 77,000-square-foot, cutting-edge office building with ground-level retail.

The four remaining structures at SouthSide Works are 2800 Block, 2700 E. Carson, 2600 B2 Block and 2600 E. Carson. SomeraRoad’s changes at the property have already caught the eye of a bevy of tenants, spurring a spate of leasing activity, including the signing of 80,000 square feet of new leases, as well as extensions and renewals totaling 100,000 square feet. Amazon, General Dynamics, Duquesne Energy and the American Eagle headquarters are among the names on the tenant roster.

While Pittsburgh’s office sector has not regained its pre-pandemic health, it is experiencing positive signs. “Tenants appear to be much more active in the marketplace than in 2021, resulting in a higher number of property tours and delivered lease proposals,” according to a third quarter report by Colliers. “There is noticeably more commuter traffic, particularly in the middle of the week and office building parking lots are filling up with greater regularity.”

The post SomeraRoad Lands $74M Loan for Pittsburgh Mixed-Use Project appeared first on Commercial Property Executive.

Carrie Furnace Site, Allegheny County, Pa. Image via Google Earth

A meeting last week has marked a turning point in the future of the Carrie Furnace Site, a sprawling gathering of acreage that was once home to the historic Carrie Blast Furnaces in suburban Pittsburgh.

The Redevelopment Authority of Allegheny County voted on August 26 to form a partnership with the Regional Industrial Development Corp. to help transform the 52-acre site into a new economic hub with the capacity to accommodate up to 500,000 square feet of development.

READ ALSO: CRE Investment Surges Despite Pandemic’s Persistence

“We are very excited to launch the Carrie Furnace site forward and bring investment and jobs back to the area,” Timothy White, senior vice president with the Regional Industrial Development Corp., told Commercial Property Executive. It’s been quite some time since the Carrie Furnace site has been a productive source for Allegheny County.

Located along the Monongahela River, the Carrie Blast Furnaces opened in 1881 and ultimately spanned 168 acres before closing in 1978. Allegheny County acquired the land in 2005. While a portion of the property, having been the site of the Battle of Homestead in 1892, is part of a National Historic Landmark, the remainder of the land stays in the hands of the county. RAAC has long planned a revitalization project and early on completed a $20 million investment to clear and remediate much of the land, which bridges the boroughs of Munhall, Rankin, Swissvale and Whitaker.

A seasoned partner

In selecting RIDC for the Carrie Furnace site venture, RAAC has chosen one of the most experienced developers in the Mon Valley. RIDC has completed six major redevelopment projects in the region, Mill 19 at Hazelwood Green among them, and is skilled at balancing the need for growth with maintaining the scenic beauty and serenity of Southwestern Pennsylvania.

“All of these sites are former industrial sites that were abandoned, then RIDC and partners cleaned them up and rejuvenated them for productive use,” White noted.

Under the terms of the agreement with RAAC, RIDC will develop a segment of the Carrie Furnace site, initially taking on the construction and extension of infrastructure in the designated area. Eventually, the multi-phase redevelopment will feature a mix of commercial uses, including light industrial, life sciences, tech-flex, workforce education and film production.

RIDC will commence activity at the Carrie Furnace site with work on infrastructure and roadway design. “The initial infrastructure will include running all the site utilities to support the buildings, an interior road network, storm water features and access points for bike/pedestrian connections,” White added.

Construction will get underway in spring 2022, paving the way for the development of two buildings totaling 100,000 square feet of tech flex space near the entrance.

The post Pittsburgh-Area Historic Site Revamp Moves Forward appeared first on Commercial Property Executive.

51 Pennwood Place

Postal Realty Trust has finalized the purchase of a 431,000-square-foot industrial property in Warrendale, Pa. The company acquired the asset for $47 million, financing the deal through its senior revolving credit facility. The acquisition was announced a month ago. According to public records, Northwestern Mutual Life Insurance Co. sold the building. CommercialEdge data shows that Northwestern acquired the asset in 1997, at the time of its completion, for $2.6 million.

The property is 100 percent occupied by three tenants, with USPS occupying approximately 73 percent of the total square footage. The roster also includes Omnicell and DBC Real Estate Management. The building has a weighted average lease term of 5 years.

Located at 51 Pennwood Place, on approximately 40 acres, the facility is just off Interstate 76. The asset is within 21 miles of Pittsburgh International Airport and within 20 miles of the downtown area.

Postal Realty owns properties primarily leased to the United States Postal Service. In November, Colliers arranged a 118,000-square-foot lease at a 163,000-square-foot warehouse in Las Vegas, on behalf of the USPS.

The post Postal Realty Trust Completes $47M Industrial Acquisition appeared first on Commercial Property Executive.

uCity Square. Image courtesy of Ventas

Ventas Inc. and GIC, the Singaporean sovereign wealth fund, have formed a joint venture that will initially own four in-progress university-based “Research & Innovation” development projects with a total cost of around $930 million. The parties noted that the joint venture might be expanded to include similar, already-identified future development projects.

READ ALSO: Ventas Makes $1B Deal for Life Science Campus

Ventas’ contribution was its ownership interest in the initial four projects; the REIT will retain a more than 50 percent stake, while GIC will own a 45 percent interest. Ventas’ development partner, Wexford Science & Technology, remains the developer of, and a minority partner in, all of the projects.

Ventas will manage the joint venture and will receive customary fees and incentives.

The initial four projects will total 1.4 million square feet when completed and are about 65 percent preleased in aggregate. They are expected to open between 2021 and 2023 and comprise:

• One uCity Square: A University of Pennsylvania–affiliated expansion of the uCity Square project in Philadelphia
• Also, in uCity Square, an academic medicine facility for the Drexel University College of Nursing and Health Professions
• Pitt Immune Transplant and Therapy Center (Phases I & II): A research, academic medicine and innovation hub for the University of Pittsburgh Medical Center, co-located with its Shadyside Hospital
• A Class A, R&D center anchored by Arizona State University.

Total project costs of about $180 million have been incurred so far on these developments, for which at closing GIC reimbursed Ventas for its share.

Ventas and GIC will contribute their pro rata shares of the future costs to complete the initial four projects, which are expected to be funded with about $500 million in construction financing.

Eastdil Secured acted as sole financial advisor to Ventas and is acting as debt placement agent for the joint venture on its construction financing. King & Spalding LLP acted as Ventas’s legal counsel; Skadden, Arps, Slate, Meagher, & Flom LLP acted as GIC’s legal counsel.

Over time, the joint venture partners also have the opportunity to add certain pre-identified R&I development projects currently in Ventas’s pipeline. These projects, if all completed, would expand the joint venture to encompass more than $2 billion in total expected project costs. Wexford is also the developer of, and would be a minority partner in, these additional projects.

Active acquirer

Philadelphia is ranked #7 among top U.S. life science metros, in an October U.S. life science report from CBRE. Driven by biotech R&D, Pittsburgh is called out as the top emerging life sciences center, first in a list of 10 that ranks just below the nation’s top 13, in the same report.

CBRE also notes that between them, in 2019 the University of Pennsylvania and University of Pittsburgh received more than $1.1 billion in funding from the National Institutes of Health.

In February, Ventas announced the impending launch of its new perpetual-life fund, Ventas Life Science and Healthcare Real Estate Fund LP. And in a $1 billion deal just last month, Ventas acquired Genesis South San Francisco, a life science campus featuring a 21-story tower that reportedly is the nation’s tallest life science building. The seller was a joint venture of Bain Capital Real Estate and Phase 3 Real Estate Partners.

The post Ventas, GIC Form JV to Develop Life Science Space appeared first on Commercial Property Executive.

20 Stanwix. Image courtesy of M & J Wilkow

Dollar Bank has made a splash in downtown Pittsburgh’s pandemic-challenged office market by signing a 76,000-square-feet lease to relocate its headquarters to a 20-story, Class A tower. The new lease makes the regional bank the anchor tenant of 20 Stanwix, a recently renovated property owned by M & J Wilkow and DRA Advisors.

The bank plans to take occupancy of the space in the first quarter of 2021, moving into the top four stories of the tower along as well as a ground-floor reception suite adjoining the lobby. Dollar Bank will relocate from its longstanding address at the Gateway Center complex, where it is nearing the end of its lease. The move represents a slight downsizing of its headquarters footprint, which currently spans 100,000 square feet, according to an account in the Pittsburgh Business Times.

READ ALSO: Top 10 Office Projects Under Construction in Pittsburgh

Built in 1982, the Skidmore, Owings and Merrill-designed 20 Stanwix offers 337,832 square feet overlooking the Monongahela River. Chicago-based M & J Wilkow purchased the asset from David Stern Management in 2015 and completed a redevelopment and repositioning effort over the last two years. The building now features a full-service fitness center, a modernized conference facility and indoor and outdoor tenant lounges, among other improvements. The property also has 150 parking spaces in an integral garage.

Dollar Bank is partnering with Strada Architects to design a flexible office environment that will include a variety of meeting spaces, lounge areas and private huddle rooms. The office will also feature private access to indoor and outdoor rooftop areas with views of the city. In addition to the headquarters move, Dollar Bank will modernize and expand its operations center at 2700 Liberty Commons in the city’s Strip District, adding 35,000 square feet of office space.

Tentative comeback

Future Dollar Bank space in 20 Stanwix. Rendering courtesy of M & J Wilkow

The onset of the coronavirus pandemic and Pennsylvania’s ensuing statewide shutdown prompted many companies to shift their employees to remote work, emptying out much of downtown Pittsburgh’s office space. The state’s current guidelines call for telework to continue where feasible, and Google and Uber, which have hundreds of employees in Pittsburgh, are allowing workers to stay home through the summer of next year.

A July market report by JLL found that office leasing slowed in the first two months of the second quarter but began to recover in June, with renewals seeing a noticeable increase. Absorption during the quarter was negative by more than 500,000 square feet as several large blocks of sublease space became available.

The brokerage expects that re-entry strategies will be rolled out as the summer continues, with tenants demanding higher levels of COVID-19 safety via touchless technology and upgraded mechanical systems. In what appears to be a nod to prevailing public health concerns, Dollar Bank’s announcement emphasizes that its new office locations will be “safe.”

The post Dollar Bank Inks Major Pittsburgh Lease appeared first on Commercial Property Executive.

Some 1.5 million square feet of office space was underway as of July, with the tech-centric Oakland submarket representing half the total. Despite the coronavirus-mandated halt in construction, two projects broke ground this year, and more than two-thirds of the development pipeline is scheduled for completion by year-end. The list below highlights the largest projects under construction in the metro, based on Yardi Matrix data.

10. The Stacks at 3 Crossings – Building E

The 55,429-square-foot project, expected to come online later this summer, is located on 6 acres at 2875 Railroad St., in Pittsburgh’s Strip District. Oxford Development Co. broke ground on the three-story development in February 2019. Building E is part of The Stacks at 3 Crossings, a larger mixed-use project that will include office and apartment buildings, as well as a parking garage.

The development reconnects the neighborhood to the Allegheny riverfront and represents the adaptive reuse of the former Packaging Corp. of America trucking yards. Medical technology company Smith & Nephew will be the first tenant within the complex, with plans to open a medical education training facility for robotics.

9. East Liberty Center

Highwood Properties has mostly been active in Pittsburgh’s downtown and South Side neighborhoods, but in June 2018, the company broke ground on East Liberty Center, an office development in the Oakland submarket. The 60,000-square-foot project is scheduled for completion in August 2020. The six-story asset is located at 6123 Penn Ave., across the street from the East Liberty Target store. Additionally, the site is close to the city’s universities and thriving tech scene, as well as some of the largest upcoming office projects.

8. Mill 19 – Building B

Hazelwood Green. Rendering courtesy of Depiction LLC

The 70,000-square-foot Building B represents the second phase of Mill 19, Regional Industrial Development Corp.’s 265,000 square-foot complex located on the 178-acre Hazelwood Green site. The company started construction on the three-story asset in February 2019, with completion scheduled for later this summer.

Building B is located at 4000 Second Ave. in Pittsburgh’s South Side-Technology Drive submarket. The property will house the corporate research and development center for tech company Aptiv, encompassing its office, prototyping, lab and workshop space. Mill 19’s Building A—completed last September—is home to Carnegie Mellon University’s Advanced Robotics for Manufacturing Institute and Manufacturing Futures Initiative.

7. The Boardwalk – Building II

Despite the pandemic-induced slowdown in construction, Burns & Scalo Real Estate was granted exemptions by the Pennsylvania Department of Community and Economic Development to continue construction on The Boardwalk, a $55 million, two-building office project in Pittsburgh’s Parkway West submarket. Building II will include 110,000 square feet, across five stories, and is expected to come online in October 2020.

Situated at 7000 Park Lane Drive, the project is taking shape near the Mall at Robinson development. Dollar Bank provided a $45 million construction loan for Building 2 that also finances the development of the upcoming Building I.

6. Pittsburgh Athletic Association – Renovation

Another project reshaping the Oakland submarket is Lionstone Investments and Walnut Capital’s Pittsburgh Athletic Association building. The joint venture started redeveloping the 112,000-square-foot property in September 2018, with help from $32.5 million in financing funded by Dollar Bank.

Originally completed in 1911, the building served as the clubhouse for the historic Pittsburgh Athletic Association, whose membership declined over the years, leaving the structure obsolete and vacant. Located at 4215 Fifth Ave., the project is within walking distance of the University of Pittsburgh’s Cathedral of Learning, Carnegie Mellon University and the University of Pittsburgh Medical Center’s Hospitals and Research Campus.

5. The Boardwalk – Building I

The Broadwalk I & II. Rendering courtesy of NEXT Architecture

Burns & Scalo Real Estate’s second property on the list is the 126,000-square-foot Building I within The Boardwalk project. The company broke ground on the development in February 2019. Completion was initially scheduled for April 2020, but was pushed to December 2020. ConnectiveRx signed a lease to occupy the entire office campus, which will house more than 1,500 new employees. The NEXT Architecture-designed project will also include an adjacent parking lot.

4. 1600 Smallman – Redevelopment

McCaffery Interests’ 1600 Smallman is one of Pittsburgh’s many redevelopments underway. Upon completion, scheduled for December 2020, the 128,000-square-foot downtown Pittsburgh project will also include a restaurant and first-floor retail. The 1921-built structure, which previously served as Standard Underground Cable Co.’s manufacturing unit, stood vacant for more than 40 years. The Chicago-based developer started redeveloping the four-story warehouse in February 2019, five years after starting work on the Produce Terminal building across the street.

3. 5051 Centre Avenue

5051 Centre Avenue. Rendering courtesy of Ventas

Also in the Oakland submarket, the University of Pittsburgh and Wexford Science & Technology’s 5051 Centre Avenue is the only owner-occupied asset on the list. The 200,000-square-foot, health-care research development is slated for delivery in September 2021. Ventas originated $200 million in construction financing in May 2019. The eight-story property, once home to Ford Motor Co., is located at 5000 Baum Blvd. and will house researchers supported by the university’s Immune Transplant and Therapy Center.

2. Innovation Research Tower

Walnut Capital’s upcoming Innovation Research Tower is the newest office project under development in Pittsburgh. The company broke ground on the 280,000-square-foot asset in May 2020, after demolishing four vacant properties at Fifth Avenue and Halket Street. Completion of the 10-story property is scheduled for June 2022. The building is taking shape in Oakland’s South Side-Technology Drive submarket, at 3342 Fifth Ave. At full build-out, it will feature laboratory and research space, 6,200 square feet of retail and one level of parking, as well as a 4,900-square-foot public square.

1. Bakery Office Three

Bakery Office Three. Rendering courtesy of Walnut Capital

The largest office project underway is also being developed by Walnut Capital. Construction on the 306,333-square-foot asset started in September 2018, with completion slated for October 2020. Dollar Bank provided an $85.5 million construction loan. Bakery Office Three will be anchored by Philips Sleep and Respiratory Care, which claimed more than 200,000 square feet in the building. The asset is located at 6200 Penn Ave., in Pittsburgh’s Oakland submarket, right next to Bakery Office Two, another Walnut Capital project completed in 2016.

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1200 Lebanon Road. Image courtesy of Phoenix Investors

An affiliate of Phoenix Investors has acquired a 625,000-square-foot industrial building and 53 acres of land in West Mifflin, Pa., that will be upgraded and marketed to new tenants seeking industrial space in the Pittsburgh market. The price and the seller were not released but the transaction did include approximately 14 acres of unused developable land.

READ ALSO: China’s Lessons Offer Hope for US Logistics

Senior mortgage financing was provided by AmeriServe Financial. The transaction was brokered by John Jackson and Evan Cicirello of Grant Street Associates Inc., an affiliate of Cushman & Wakefield.

Phoenix Investors, a national commercial real estate firm based in Milwaukee, Wis., specializes in revitalizing former manufacturing properties and large single-tenant industrial facilities that were owned by major corporate clients, REITs or financial institutions throughout the U.S. The property at 1200 Lebanon Road in West Mifflin was originally built for the Continental Can Co. and features a concrete/block foundation. The building has average clear heights of 24 feet, 57 overhead loading doors, varying column spacing and ample restrooms throughout the facility.

The building is currently 70 percent leased, with a diverse rent roll of more than 20 tenants. The vacant space will be marketed to new users for lease. Anthony Crivello, Phoenix executive vice president, said in a prepared statement the firm plans to undertake numerous capital and cosmetic improvements to the property to make it more functional and attractive to users.

Cicirello noted in prepared remarks the property is a sizable asset for the Pittsburgh industrial market and represents a value-add investment opportunity. The property is located in Allegheny County, about 8 miles southwest of Pittsburgh. It is approximately 6 miles to the Interstate-376 interchange, 2 miles to Route 51 and 3 miles from the future Mon Fayette Expressway Dravosburg interchange.

Previous Phoenix deals

Phoenix Investors’ affiliate companies hold interests in approximately 29 million square feet of industrial, retail, office and single-tenant net-leased properties across 23 states. In January, Phoenix acquired an approximately 1.4 million-square-foot distribution center in Memphis, Tenn., from Sears for 7.5 million. The two-story property was built in 1973 and expanded in 1981. In December, the firm purchased an 880,000-square-foot former Amazon fulfillment center on a 105-acre site in Coffeyville, Kan., for an undisclosed price. The industrial property has been largely vacant since Amazon left in 2014.

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525 William Penn Place

Pearson Partners has welcomed Cohen & Co. to the tenant roster of 525 William Penn Place in downtown Pittsburgh. The accounting and consulting firm will occupy 12,000 square feet in the building, relocating more than 30 employees from the Grant Building, where it occupied 4,780 square feet. 

Cohen & Co. entered the Pittsburgh market in 2016 and has since expanded three times. The new location underwent a nine-month renovation conducted by Bostwick Design Partnership and MBM Contracting. The space includes three traditional conference rooms, three collaboration rooms and a flexible space which can serve as a kitchen area, lounge or training room, as well as standing desks.

The 942,665-square-foot property spreads across 41 stories and includes a 1,000-square-foot first-floor retail component, Yardi Matrix data shows. It was built in 1951 for the Mellon National Bank and the U.S. Steel Corp. and received the LEED Gold certification in 2010. The asset sits adjacent to Mellon Square and is surrounded by retailers, accommodation options and landmark buildings, while the Steel plaza Station is within walking distance.

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Westinghouse campus. Image courtesy of Columbia Property Trust

Columbia Property Trust has completed the $180 million sale of a sprawling, Class A office campus in suburban Pittsburgh that is home to Westinghouse Electric Co. The announcement comes after the NYSE-listed REIT revealed it had struck a deal to sell the 824,000-square-foot headquarters campus to an undisclosed buyer in December.

Sited at 1000 Westinghouse Drive in Cranberry Township, Pa., the headquarters campus is part of the larger Cranberry Woods Office Park, a 327-acre master-planned business address just off the Route 228 interchange of Interstate 79, about 20 miles north of downtown Pittsburgh. The Westinghouse campus, developed in 2009 and 2010, consists of a five-story building connected to a pair of four-story buildings.

READ ALSO: NorthMarq Scores $185M Refi for Northrop Grumman Campus

Nuclear technology supplier Westinghouse moved to the complex from its old headquarters in Monroeville, Pa., from 2009 to 2012, fully leasing out the campus. Columbia scored a 15-year renewal of Westinghouse’s lease in 2017. Brookfield Business Partners LP completed a $4.6 billion acquisition of Westinghouse in August 2018, after the latter filed for Chapter 11 bankruptcy protection the previous year.

Columbia signaled its intention to sell the asset in October 2018 and was reported by the Pittsburgh Business Times to have hired HFF, since acquired by JLL, to market the campus in January of last year.

Corporate hub in western Pennsylvania

Trammel Crow Co. partnered with Mine Safety Appliances to develop Cranberry Woods Office Park, which is located about 20 miles north of downtown Pittsburgh and also houses the headquarters of the safety product maker and other employers like NetApp, GAI Consultants and Genco, a division of FedEx Ground.

Standard building features of Cranberry Woods include two-story lobby atriums, 9-foot finished ceilings heights and parking ratios of at least 5 per 1,000 square feet. The project also offers two Marriott-branded hotels, a conference center and a 300-unit multifamily development, with a plethora of retail options in the vicinity.

Columbia, which had a total portfolio of 7.1 million square feet as of last September, has recently agreed to pay $239 million to acquire 201 California, a 272,000-square-foot Class A office tower in San Francisco. The deal followed Columbia’s exit from Atlanta through the sale of a roughly 700,000-square-foot office campus in a $227.5 million deal in April of last year.

Columbia disclosed in December that it had launched marketing efforts for Pasadena Corporate Park, a three-building, 262,000-square-foot office property in suburban Los Angeles.

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Rendering of Live! Casino, Hempfield Township. Image courtesy of The Cordish Cos.

Acting through its affiliate, Stadium Casino Westmoreland RE LLC, The Cordish Cos. has broken ground on the 100,000-square-foot Live! Casino located 30 miles outside downtown Pittsburgh in Hempfield Township, Westmoreland County, Pa. Cordish will spend $150 million to bring the gaming destination to fruition.

READ ALSO: Cordish, Gilbane Top Out $700M Philadelphia Casino

Live! Casino will take shape at the 1.3 million-square-foot Westmoreland Mall development, taking over the space that had been home to a Bon-Ton department store until summer 2018. Upon completion, the gaming facility will feature restaurants, including the newly announced 445-seat Sports & Social Steel City, as well as live entertainment venues. The property’s gaming segment will offer approximately 750 slots and 30 live action table games. “The Pittsburgh gaming market is up 4.3 percent year-to-date through September, driven by revenue improvements in table games,” Brent Pirosch, director of gaming consulting with CBRE’s Global Gaming Group, told Commercial Property Executive. Live! Casino will also provide a Sportsbook, which has proven a popular offering in the state. During the first six months of 2019, Pennsylvania recorded $18.8 million of sports wagering revenue at casinos, according to a report by CBRE.

Cordish has tapped Mascaro Construction Co. to serve as general contractor for Live! Casino. The project will bring 960 direct and indirect construction jobs to the area, in addition to 500 permanent positions upon its completion.

Cultivating casinos in Pennsylvania

The Live! Casino groundbreaking comes nearly two years after Cordish emerged victorious in an auction to develop a Category 4 casino in Westmoreland County. The Gaming Expansion Act of 2017 authorized the Pennsylvania Gaming Control Board to award up to 10 licenses for Category 4, or satellite, casinos across the state. Other auction winners include Mountainview Thoroughbred Racing Association LLC, which has received approval to begin construction of a satellite casino roughly 50 miles outside Philadelphia in Caernarvon Township, Berks County. Mountainview, a subsidiary of Penn National Gaming, also won the bid to build a project near Harrisburg in Springettsbury Township, York County.

During the first half of 2019, Pennsylvania ranked second only to Nevada for gaming revenue by state, with nearly $1.7 billion in gross revenue. On the metro level, Philadelphia had the seventh-highest gaming revenue in the country, while Pittsburgh took the No. 12 spot, with one particular property accounting for a significant share. “The existing Rivers Casino is the market leader in Pittsburgh, representing more than 45 percent of the total gaming revenue in the market,” Pirosch said. If all goes as planned, Live! Casino will make its debut by the end of 2020.

The post Ground Breaks on $150M Live! Casino Near Pittsburgh appeared first on Commercial Property Executive.

AHN Jefferson Hospital Emergency Department. Image courtesy of AHN

Highmark Health and Allegheny Health Network have completed Phase I of the new emergency department of AHN Jefferson Hospital in Jefferson Hills, Pa. The project cost $21 million and expanded the existing facility by 34,000 square feet. During the renovations, the hospital’s helipad was also relocated to the roof of the structure. Phase II, which is expected to complete in May 2020, will consist of modernizing the current emergency department space. 

The new emergency department encompasses 44 private observation and treatment rooms, a larger triage area with increased patient privacy, seven care team stations designed as central nursing pods, an integrated imaging suite with x-ray and CT technology, designated behavioral health assessment and treatment rooms, specialized rooms for trauma, bariatric room with lift and specially-sized beds as well as a new waiting room. Due to a $1 million grant from the Jefferson Regional Foundation, the hospital also plans to open a patient screening and referral program called the “Front Door Initiative for Social Emergency Medicine.”  

AHN Jefferson Hospital is located at 565 Coal Valley Road and serves more than 50,000 patients in the South Hills of Pittsburgh, Lower Mon Valley and the surrounding areas. In 2014, Highmark Health added the new Cancer and Women and Infants Centers and more recently, a state-of-the-art, $17.5 million surgical suite.  

The project is just one example of the redevelopments that have been taking place in Pittsburgh in the recent quarters, driven by growth in the tech, healthcare and life sciences sectors. In June, Ventas and Wexford announced the redevelopment of The Pitt Immune Transplant & Therapy Center, a $280 million, trophy-quality historic project. 

The post Highmark Health, AHN Celebrate Pittsburgh-Area Hospital Expansion appeared first on Commercial Property Executive.

Image via Pixabay

Woodmont Lodging, in a partnership with Milestone Cos. and Blue Vista Capital Management, has acquired the newly developed 98-key Fairfield Inn & Suites Pittsburgh Downtown. Woodmont Lodging will serve as the asset manager and Milestone Hospitality will provide property management services. The acquisition marks Woodmont Lodging’s second Fairfield Inn & Suites and its third Marriott-branded hotel.

Located at 435 Fort Pitt Blvd. in downtown Pittsburgh, the seven-story hotel opened this month after two years of construction. Guestrooms feature oversized workspaces with ergonomic chairs and high-speed internet connection. Additional amenities include a 24/7 fitness center, laundry facilities and sundry stores.

The hotel is alongside Monongahela River near attractions such as PNC Park, Heinz Field and the David Lawrence Convention Center. Additionally, the property is just off interstates 376 and 579 and provides convenient access to First Avenue Metro Station.

According to a new mid-year report from Cushman & Wakefield, despite a strong performance in the hotel sector, signs indicate that the market might be heading toward a slowdown. Challenges include business travels, weather-related issues and the absorption of the new supply.

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Image courtesy of Carnegie Mellon University

Carnegie Mellon University and ENGIE Resources have reached several agreements running through 2024 in which the university will purchase energy from the Radford’s Run Wind Farm in Macon County, Ill., for its Pittsburgh campus. The 306-megawatt facility is E.ON’s third wind farm in Illinois, completed in December 2017.

ENGIE Resources and Amerex Energy Services designed a structure to procure energy sourced from the wind project to serve all of the campus’ electricity needs. This specially tailored structure offers a 100 percent renewable, fixed-price load using a simple, standard retail commodity agreement with flexible terms.

In a separate agreement, CMU secured Green-e certified renewable energy credits to match its energy usage. Green-e RECs are determined by the Center for Resource Solutions to be independently verified to represent the environmental benefits of 1MWh of renewable energy. The RECs in this agreement are equivalent to the removal of more than 21,000 passenger motor vehicles over two years.

Historically sustainable

Image courtesy of E.ON

The university has more than a decade of offsetting 100 percent of its electric power consumption via REC purchases, yet with these agreements, CMU encourages wind development across its local power grid without deploying its own capital.

Radford’s Run wind farm consists of 139 Vestas 2.2-megawatt turbines, which required more than $55 million on labor, materials, subcontractors and consumables. The project also implied the repair of more than 80 miles of roads around the facility, which cost E.ON some $20 million.

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Among Mill 19’s signature features is one of the largest single-surface, sloped roof solar arrays in the U.S. Scalo Solar Solutions, a Pittsburgh-based solar developer, is installing 4,698 panels on 110,000 square feet of rooftop. 

All told, the solar installation will generate about 2 megawatts annually, which will be enough to offset two thirds of the property’s energy use and to qualify the first two buildings on the site to qualify as net-zero. Installation is on track for completion by the summer of 2020. The solar array will produce an estimated energy offset equivalent to 773 tons of coal every year, enough to power 169 homes every year for 25 years.

Epic Journey

The scale of Mill 19’s solar array is no less striking than the project’s journey. Starting in the 1949s, the 1,100-foot-long, 100-foot-wide building was operated by Jones & Laughlin Steel Corp., and later by LTV Corp., until steel operations ended in 1998. Four years later, a trio of Pittsburgh-based foundations acquired the 178-acre site on which the mill is located. Years of environmental remediation and planning followed. Renamed Hazelwood Green, the property is Pittsburgh’s last remaining riverfront brownfield site. Its anchor is the renovated Mill 19, which will expand from 190,000 to 264,000 square feet.

In an unconventional redevelopment strategy, the mill was stripped down to its steel frame, within which three new steel and glass buildings were constructed. In an unusual design approach, Mill 19 incorporates a building-within-a-building. A high-performance envelope provides maximum thermal efficiency and up to 96 percent daylight autonomy.

Mill 19’s owner, the nonprofit Regional Industrial Development Corp., is overseeing the project in an alliance with Carnegie Mellon University, a key occupant. About 60,000 square feet of the 94,000-square foot Building A, first of three to be completed, will be occupied by two programs with ties to the university. The Advanced Robotics for Manufacturing Institute aims to foster the creation of technology for commercial purposes as well as promote related workforce development programs.

Co-located at the site is Carnegie Mellon’s Manufacturing Futures Initiative, a research and development program dedicated to manufacturing technology, machine intelligence and human intelligence. Starting in November, the third floor of Building A will be occupied by Catalyst Connection, a nonprofit consulting and training resource for emerging southwest Pennsylvania manufacturers.

Catalyst Connection will collaborate with the two Carnegie Mellon programs. A second building, dubbed Phase B, will be used as a  corporate R&D center by a global technology company.

Mill 19 is seeking LEED Gold certification for Interior Design and Construction. Highlights of the building’s sustainability strategy include the conveyance of stormwater through a rainwater garden to centrally located infiltration basins. Captured rooftop water will be stored in underground cisterns for reuse in the cooling tower and for flushing in the restrooms. A high-performance envelope provides maximum thermal efficiency and up to 96 percent daylight autonomy.

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Image courtesy of Depiction LLC

Rebecca Flora, CEO, ReMake Group LLC. Image courtesy of ReMake Group LLC

Pittsburgh is in the midst of an office development boom. The metro has nearly 2.5 million square feet of projects underway, with just shy of 1.3 million square feet anticipated to deliver before year-end, according to Yardi Matrix. Developers’ sights have been largely set on the city’s riverside areas, with 1.6 million square feet of office space under construction within 1,000 feet of the Allegheny or Monongahela rivers.

Hazelwood Green is one such project. The development, valued at $1 billion, is still in its early stages, with the first building opening this week—Mill 19, Carnegie Mellon University’s new research and development hub. Set on 178 acres alongside the Monongahela River, 4 miles southeast of central Pittsburgh, the mixed-use project is owned primarily by Almono LP, a partnership between the Claude Worthington Benedum Foundation, Richard King Mellon Foundation and The Heinz Endowments.

In 2016, Almono selected ReMake Group to act as the project’s authorized agent. The firm’s CEO and Hazelwood Green’s project director, Rebecca Flora, discusses Pittsburgh’s development scene and the future of riverfront development with Commercial Property Executive.

How would you characterize Pittsburgh’s appetite for development? What’s in demand?

Flora: Pittsburgh is well positioned for development within its urban core and surrounding neighborhoods, where a new generation of workers are finding affordable housing options and amenities that create quality lifestyles. Our market data indicates a growing demand for flexible work schedules and authentic urban environments that support creativity and attract talent.

Rendering of Hazelwood Green. Image courtesy of Depiction LLC

What’s the story behind Hazelwood Green?

Flora: Hazelwood Green is a project that grew out of the vision of Pittsburgh foundation leaders—the Almono partnership—who realized the importance of Pittsburgh’s riverfronts as a unique amenity that should be developed to the highest standards for long-term sustainability and resilience.

What is the current status of the project?

Flora: The project has approximately 50 developable acres ready for development with about 3 miles of complete street infrastructure, environmental clearance and public entitlements in place for building lots. A new 2-acre public space is also under construction and will open next year. We are in discussions with multiple entities that resulted from our market outreach over the past year and view our proximity to world-class universities and quality urban design parameters as major attractions for tenants seeking urban locations.

As nearly 4.5 million square feet of commercial space were called for in the Preliminary Land Development Plan, can you provide us with some specifics?

Flora: The site is planned as a mixed-use development that is purposely designed to be adaptive to market changes over the expected 20 years of build-out. Our primary goal is to attain density through height and lot coverage standards along with shared parking and other requirements to create a walkable urban environment.

We have required in our zoning that our main street includes uses that will activate the first floor of buildings to create a positive pedestrian experience and strong urban environment. Activation can be defined in multiple ways that go beyond the older retail model that has shifted in the market. Thus, we are purposely saying what we are not—big box and distribution—rather than saying what we are, due to our desire to be future proofed and adaptable to future market possibilities.

What sustainability components are being integrated into the design?

Flora: The design integrates sustainability elements that focus on performance in four key areas of energy, water, transportation and human well-being, all of which are interconnected. The PLDP requires the use of standards such as LEED, Pittsburgh’s p4 Measures, and SITES to measure performance, along with plans for monitoring performance. The PLDP is registered for LEED for Neighborhood Development certification, and all buildings must demonstrate the ability to achieve LEED Gold certification or an equivalent, plus performance levels in energy and water, along with implementation of a Transportation Demand Management plan and enhanced indoor air quality levels.

Hazelwood Green. Image courtesy of Depiction LLC

Tell us about some of the challenges you have encountered with the project.

Flora: Financial models in slower growth cities are always challenging but also create opportunities for innovative solutions. Clearly, the foundation-led ownership has allowed the project to seriously consider added value and metrics for triple-bottom line returns that are necessary for a project of this scale and vision. Implementing the vision of creating a world-class sustainable development has another set of challenges associated with advancing new ideas and best practices before the market is ready to accept and public review systems are prepared to approve.

As Carnegie Mellon University has taken options to expand onto a nearby 8.3-acre plot, what does this mean for the wider development?

Flora: CMU is a major catalyst in the Pittsburgh region, along with other education and research institutions that are driving our innovation economy. CMU’s commitment to be part of the site’s development sends a message to the market that they will be a neighbor on this new urban site, which is well positioned to attract and grow companies that desire proximity to leading research and talent.

The post Behind the Scenes of Pittsburgh’s Hazelwood Green appeared first on Commercial Property Executive.

Convention Tower

Market Street Real Estate Partners has acquired Convention Tower, a 91,000-square-foot office building in downtown Pittsburgh, for $7.7 million. Yardi Matrix identified the seller as Rockwell Venture Capital.

The asset last sold in 1989, when Huntington National Bank traded the property for $3.8 million, Yardi Matrix shows.

The property encompasses two conjoined buildings featuring Victorian and early 20th-century architecture. It was built in phases between 1870 and 1914 and was last renovated in 1989. Tenants include A to Z Communications, PSAN, The Oasis Recovery Center and Century Hospitality. The asset has a 560-square-foot conference room and approximately 6,000 square feet of retail at street level.

Located across the street from the David L. Lawrence Convention Center at 960 Penn Ave. in the Penn-Liberty Historic District, the tower is surrounded by a wide array of restaurants, hotels and art centers. Pittsburgh’s Union Station is within a quarter mile of the property, and various public bus routes and a bike lane provide easy transportation throughout the area.

Last summer, a Lionstone Investments joint venture purchased a historic asset 3 miles east of Convention Tower. The new owner plans to redevelop the former clubhouse into a 90,000-square-foot office building, complete with modern amenities and retail space.

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The Landing Hotel Pittsburgh. Image courtesy of Rivers Casino Pittsburgh

Rivers Casino Pittsburgh will finally get a hotel. Rush Street Gaming just announced that it will break ground later this summer on the $60 million The Landing Hotel Pittsburgh, a 219-key, four-star hotel that will transform the gaming property into a full-service casino-resort destination.

Rivers opened along the Ohio River’s North Shore as Pittsburgh’s first and only casino in 2009. The property, home to 120,000 square feet of casino floor, restaurants and a new event center, has been faring relatively well as of late. “The Pittsburgh casino submarket declined each year from 2011 to 2017, struggling against growing competition in the region. The Pittsburgh submarket grew 1.8 percent in 2018, however, driven by a strong year at Rivers,” Brent Pirosch, director of gaming consulting with CBRE’s Global Gaming Group, told Commercial Property Executive.

Adding a lodging segment to Rivers Casino has always been part of the vision for the property. Plans for a hotel took a major move forward in 2017, when the Pittsburgh Planning Commission approved the project, but gaming legislation forced the endeavor onto the backburner. Now, Rush Street needs only the approval from the local zoning and planning departments before it can commence development of the seven-story hotel. Designed by architectural firm VOA, the hotel will be the second Landing Hotel-branded property; the first opened at Rivers Casino & Resort Schenectady in Schenectady, N.Y., in 2017. Rush Street has tapped Massaro Construction Group to serve as general contractor for the Pittsburgh development.

The lodging factor

Rush Street’s investment in the hotel at Rivers appears to be a wise move. “We believe casinos, in general, benefit from having a hotel for several reasons,” Pirosch said. “Having a hotel allows a casino to accommodate guests from outside the local market since a hotel room can be used as an incentive to reward valuable players, and the hotel may be a profit center irrespective of the casino operations. Our research has shown that casino revenue often benefits from the addition of a hotel, assuming it is appropriate to the overall market and property.”

A bevy of casinos are hopping on the hotel-bandwagon. Soboba Casino in San Jacinto, Calif., in the Palm Springs area, reopened earlier this year as the Soboba Casino Resort in a new location featuring the addition of a 200-key hotel and more casino square footage. Century-old Oaklawn Racing & Gaming in Hot Springs, Ark., recently changed its name to Oaklawn Racing Casino Resort in anticipation of an expansion project that will produce a 200-key hotel. Live! Casino in suburban Baltimore became Live! Casino & Hotel in 2018 with the opening of the flagship 310-key Live! Hotel. The Landing Hotel at Rivers Casino Pittsburgh is on schedule to open in early 2021.

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Pitt Immune Transplant & Therapy Center Phase I. Image courtesy of Ventas

Ventas Inc. continues to make progress with the planned $1.5 billion pipeline of projects through its university-based Research & Innovation business. The REIT recently announced four new developments totaling $800 million and more than 1.3 million square feet to be built in partnership with university-focused real estate developer Wexford Science & Technology LLC at locations in Pittsburgh, Philadelphia and St. Louis.

In Pittsburgh, Ventas and Wexford will develop The Pitt Immune Transplant & Therapy Center, a $280 million, trophy-quality historic redevelopment. The University of Pittsburgh has preleased a portion of the 350,000-square-foot project to house the Immune Transplant and Therapy Center. The university’s long-term commitment brings the property’s prelease level up to 70 percent.

The College of Nursing and Health Professions. Image courtesy of Ventas

Ventas and Wexford have two projects totaling $400 million on tap in the thriving University City submarket in Philadelphia, including The College of Nursing and Health Professions, a 260,000-square-foot build-to-suit for Drexel University. The facility will allow Drexel to consolidate CNHP under one campus umbrella, relocating the college from its current home at Three Parkway and two other locations in Center City. Ventas also announced the Ventas-Wexford team’s plans for One uCity Square, an office and lab building that will be part of the Knowledge Community at uCity Square in Philadelphia. One uCity Square, which will feature 390,000 square feet of space, is already 40 percent preleased.

In St. Louis, the Ventas-Wexford team will develop 4210 Duncan, a 320,000-square-foot office building in the Washington University-affiliated Cortex Innovation Community. The project, which will mark Ventas’s fifth building in Cortex, will cost $115 million to realize.

Big picture

News of the four Ventas-Wexford projects in Pennsylvania and St. Louis come roughly four months after Ventas announced its $1.5 billion R&I Pipeline, which will ultimately yield 10 projects. The arrangement extends Ventas’s exclusive partnership with Wexford—which became an independent company soon after Ventas’s $1.5 billion acquisition of Wexford’s real estate assets from affiliates of Blackstone Real Estate Partners VIII LP—through 2029.

4210 Duncan. Image courtesy of Ventas

Ventas and Wexford expect to deliver the Pitt ITTC in two phases, both due for completion in 2021. Drexel’s CNHP is on track to open in 2022, as is the One uCity Square property. The partners anticipate bringing 4210 Duncan to the market by the close of 2021. During Ventas’s first quarter 2019 earnings conference call on April 26, Debra Cafaro, CEO of Ventas Inc., said the R&I Pipeline is the REIT’s number-one capital allocation priority and that all the projects will likely have gotten underway by July 2020.

The post Ventas Reveals $800M in Projects for Research & Innovation Business appeared first on Commercial Property Executive.

With this adaptive reuse project, Phipps aimed to achieve three of the world’s most rigorous building standard certifications: International Living Future Institute’s Living Building Challenge, LEED Platinum and WELL Platinum. Having successfully completed Living Building Challenge’s one-year performance period, Phipps will have three Living and Petal-certified buildings on its site.

The ESC introduces a unique nexus of green buildings at Phipps, featuring three different types of construction: new (Center for Sustainable Landscapes), modular (Nature Lab) and existing (ESC) buildings. ESC’s sustainable highlights start with the project site—a remediated brownfield restored as a safe environment for all living beings. The new facility is designed to generate all the energy it uses, as well as capture and manage all stormwater that falls on-site. Having geothermal wells buried into the ground, the building is able to efficiently heat and cool the facility by harnessing the natural energy from the earth’s consistent 55-degree internal temperature.

Energy

The roof is covered in photovoltaic solar panels, but what really makes a difference is the direct current management: While most American buildings use alternating current power, DC electricity is the form collected by solar panels and stored by their batteries. Typically, a solar inverter is used to convert electricity from DC to AC—a process that wastes about 10 to 15 percent of the solar energy—and then back to DC again to power LED light bulbs. The ESC breaks this convention by using direct DC from the solar panels and batteries to all the lights in the building, which means that the entire lighting system could run on a single 20-amp circuit.

Additionally, indicator lights on manual windows allow occupants to know whether the air quality is satisfactory before opening. Radiant flooring is used throughout the facility to ensure temperature stability and comfort of building occupants.

Water

 A lagoon, used to store rainwater and replicate the natural treatment processes of marches and wetlands on-site, is located adjacent to the ESC. Chemical-free sanitary water is recycled and treated through a constructed wetland that uses natural plants and microbes, as well as sand filters and UV lights. 

Over the ESC’s vestibule, a green roof helps the management of stormwater. In addition, a compost site behind the existing Nature Lab collects matter such as leaves and organic waste. Biophilic design elements and art enhance the human-nature connection and add to the health impacts of the building on occupants and guests, with the ESC’s vegetative green screen fitting into the building’s biophilic relation.

Materials

The use of Declare label products, along with the avoidance of Living Building Red List materials, means that the property is free from many of the toxic chemicals typically found in building materials. For example, black locust lumber—a native species of very hard wood and no need for pressure treatment—was sourced to use on the deck and an interior wall. Sandstone used for the project was sourced locally.

The project demonstrates that some of the greenest, healthiest buildings can be those that already exist, by transforming an old cinderblock structure into one of outstanding sustainability. The facility won’t have heating, cooling, electricity or sewer bills thanks to the sustainable practices used in development. Additionally, the list of features includes a yoga studio and a fitness center.

Project partners include FortyEighty Architecture, Common Ground, Iams Consulting, Studio Phipps, Massaro Corp., Shepley Bulfinch, Karl Steinmetz Designs, Building Performance Architecture, CJL Engineering and 7group. Organizations involved include Carnegie Mellon University—Center for Building Performance and Diagnostics, Green Building Alliance and the University of Pittsburgh—Mascaro Center for Sustainable Innovation.

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Located along the Interstate 79, approximately 14 miles from downtown Pittsburgh, the properties feature seven buildings ranging from 10,000 to 80,000 square feet. The portfolio is 99 percent leased to tenants including Amazon, Verizon, Chrysler and Safelite Glass.

“This infill market’s high barriers to entry and tight supply dynamics, combined with the property’s connectivity to downtown and the broader region, make it highly desirable for regional tenants” Brodie Ruland, managing director of ASB, said in a prepared statement. “We see ongoing opportunities to take advantage of expanding e-commerce-related distribution requirements in the Pittsburgh market.”

The post Pittsburgh Industrial Portfolio Trades for $38M appeared first on Commercial Property Executive.

Nick Francic, Managing Director, JLL. Image courtesy of JLL

In the past few years, Pittsburgh has successfully diversified its economic base to include education, health care, finance and, more recently, technology. The metro houses big players such as Google, IBM, Apple, Intel, Uber and Amazon that are digging deep in the talent pool the existing intellectual nodes have to offer.

These dynamics, combined with corporate expansions, a strong startup scene and an emerging coworking sector bolster demand for premier office space, especially in the Downtown, Oakland and South Side/Technology Drive submarkets. Nick Francic, managing director at JLL, shares his insights on the shifts in Pittsburgh’s office landscape. 

What drives growth in Pittsburgh’s office sector?

Francic: Currently, financial services, law firms and technology companies are absorbing the largest share of square footage. In 2018, one third of the metro’s leasing activity was bolstered by technology companies and was mainly focused around the urban fringe. Pittsburgh’s universities are providing the high-caliber research and the talent needed to grow technology firms.

What are the current trends shaping up the office market?

Francic: Tenants from the suburbs are migrating toward the urban core in an attempt to recruit the talent coming out of the universities.  

Tell us more about the challenges the office market faces.

Francic: Pittsburgh is experiencing rapid growth in a short period of time. The metro’s population is shifting younger. The city of Pittsburgh has one of the highest concentration of Millennials in the country. The challenge right now is being able to grow the population and talent pool at a rate to accommodate new companies entering the market.

How will the current developments in the pipeline impact the market in 2019?

Francic: We had two speculative deliveries thus far in 2019—one was 100 percent preleased, while the other is 85 percent preleased—both by technology firms. New product is changing the urban landscape, as well as revitalizing older neighborhoods. The quality of the new builds and redevelopment projects is raising expectations for office space in the metro.

What are some of the hottest submarkets in terms of investment?

Francic: Currently, what we refer to as the “Fringe” submarket is the hottest submarket for new development. Neighborhoods like the North Shore and the Strip District garnered 30 percent of the total leasing activity in 2018. Although the Fringe is in high demand, the Commercial Business District continues to see a high amount of leasing activity as business services, law firms and financial firms relocate to newly renovated buildings.

However, Oakland/East End is the submarket where the universities are located, and proximity to the universities is the most important thing on the tech companies’ checklists. The submarket’s most challenging aspect is the scarcity of available product, at a 3.3 percent vacancy rate. Currently, new developments are underway and these may relieve some of that pressure.

How do you think the market performed in the last quarters and how do you see it going forward?

Francic: In 2017, Pittsburgh’s office market experienced an increase in vacancy due to corporations optimizing their real estate business. In 2018, the city rebounded as tech firms continued leasing space and the corporate rightsizing subsided. This year and going forward, we expect the leasing activity from technology firms to keep pace, as research continues commercializing and the West Coast companies seek to plant a flag in Pittsburgh to capitalize on the talent pool. 

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Union Trust Building

The Davis Cos. has added Jackson Kelly to the tenant roster of the Union Trust Building, an iconic office asset in Pittsburgh. The law firm signed a 10-year lease to occupy 12,000 square feet on the building’s 10^th and 11^th floors by fall 2019.

The 11-story building encompasses 517,376 square feet and includes a 40,000-square-foot first-floor retail. Amenities include a 5,000-square-foot fitness center, an 80-seat conference center, 350-seat theater, underground parking garage and 28 original Pittsburgh-inspired artworks. Additionally, the 1916-built property underwent a 100$ historic renovation in 2016 and has received multiple design awards, as well as LEED certification. Additionally, the asset is home to a diverse base of tenants, including Pepper Hamilton, Blank Rome, Frost Brown Todd, Marshall Dennehey, Buchanan Ingersoll & Rooney, TrueFit, Carnegie Learning and First Commonwealth Bank.

Located at 501 Grant St. in the city’s Commercial Business District, the building is within walking distance of Mellon Green park, retailers, accommodation options, eateries, cafes and entertainment options. Steel Plaza station, situated right across the street, provides easy transportation throughout the entire area.

JLL’s Jason Stewart and Jackie Bezek represented the landlord in the lease transaction. Last year, the brokerage company led site consulting efforts for a headquarters expansion in the area. ITRA Global-owned Carrie S. Holstead Real Estate Consultants Inc. CEO Carrie Holstead acted on behalf of the tenant.

“The smart design of this space and striking finishes by Avon Graf Architects will complement the iconic Union Trust Building which has been beautifully restored by The Davis Cos. and will serve Jackson Kelly well in retaining and attracting top talent,” Holstead said in a prepared statement.

Image courtesy of Yardi Matrix

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The Oaklander Hotel

Marriott’s brand Autograph Collection is set to open The Oaklander Hotel, a 167-key property in Pittsburgh. The development will be the first Autograph Collection in the state of Pennsylvania. Twofold Design worked on interior designs for the hotel.

Located at 5130 Bigelow Blvd., in the heart of Pittsburgh’s Oakland neighborhood, next to the former Pittsburgh Athletic Association, the property will provide convenient access to the University of Pittsburgh, Chatham University, Point State Park and David L. Lawrence Convention Center. Additionally, the Pittsburgh International Airport is approximately 24 miles away.

The 10-story hotel features a mix of rooms and suites ranging from 324 to 930 square feet. Each room will include private bathrooms, coffee machine, air conditioning and a desk. Common-area amenities include:

• 24-hour fitness center
• valet parking
• five event spaces on the 10^th floor
• Spirits & Tales restaurant
• free Wi-Fi
• shared lounge
• business center
• 24-hour front desk

“The goal has been to create a timeless space, that doesn’t speak to a time period or theme or fad but, rather, the strength and integrity that is Pittsburgh.” Ami Kahalekulu of Twofold Design said in a prepared statement. “We kept the oak paneling pale white and cream to highlight the grain, but also stained quite a bit black to keep a strong contrast and drama. We do have some hints of steel in the space, and of course lots of golden and brass tones—the space is designed to feel familiar, without screaming ‘steel town or yellow bridge’.”

Autograph’s latest expansion includes a dual-branded AC Hotel Austin and The Otis Hotel totaling 347 keys. The project is slated to open in the fourth quarter of this year.

Rendering courtesy of Autograph Collection Hotels

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Tower Two-Sixty

Insperity has signed a lease agreement with Millcraft Investments to occupy the entire suite 1515 at Tower Two-Sixty, a 400,000-square-foot premier office building in Pittsburgh. The Houston-based employer organization opened a new district office with sales and service capabilities and appointed industry veteran Glenn McFerran as its manager.

According to Yardi Matrix, the property encompasses seven floors of office space, a 15,602-square-foot, first-floor retail component, the 256,398-square-foot Hilton Garden Inn Pittsburgh Downtown and nine levels of parking with 330 spaces. Tower Two-Sixty was completed in 2016 and is LEED Silver certified.

Insperity joined a roster of tenants including Millcraft Investments, The Coury Firm, Merrill Lynch and McGuireWoods. JLL, which recently brokered a headquarters lease in the area, is the anchor tenant and also serves as property manager for the building. The retail portion is leased to Revel + Roost, Pirata, Pizzuvio and Millie’s Homemade Ice Cream.

Located at 260 Forbes Ave., in the Market Square and Point Park University sections of downtown Pittsburgh, the property sits in the vicinity of retailers, eateries, accommodation options, parks and landmarks. Gateway metro station and multiple bus stations provide easy access throughout the area.

Image courtesy of Yardi Matrix

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Hazelwood Green

Almono LLC recently took a significant step forward in the development of Hazelwood Green, a 178-acre mixed-use project in the Hazelwood neighborhood of Pittsburgh. The company issued a request for qualifications (RFQ) for the Mill District, the first phase of the waterfront property.

Almono LLC is the general partner of Hazelwood Green owner Almono LP, which is a partnership of Pittsburgh’s Richard King Mellon Foundation, Heinz Endowments and the Benedum Foundation. The charitable organizations came together in 2002 to acquire and land bank the project site, which holds the distinction of being the last developable tract of sizeable riverfront property in Pittsburgh. The partnership held back on developing the property—a brownfield site that had been home to LTV Steel—until it determined the timing was right to move forward. With RFQ responses due by the middle of November, Almono LLC is set to begin selecting developers in the first quarter of 2019.

“Pittsburgh has seen a surge in demand that is primarily being driven by the research and talent coming out of Carnegie Mellon University and the University of Pittsburgh,” Rebecca Flora, principal with ReMake Group LLC, told Commercial Property Executive. ReMake, a strategy development and project implementation services provider, was tapped by Almono LLC in 2016 to serve as authorized agent and project director of Hazelwood Green.

Mixing it up

The Mill District, spanning 27 acres within Hazelwood Green, has a median target of a whopping 2.8 million square feet of mixed-use offerings. With RFQ responses due by the middle of November, Almono LLC is set to begin selecting developers in the first quarter of 2019.

A total of 1,050 residential units are included in the project’s median target, and for good reason. “The residential market is growing due partially to the market requirements of millennials and the locational shift of empty nesters, who are both are looking to simplify their living requirements and be in close proximity to the amenities of an urban environment,” Flora noted.

Additionally, multi-block sections with similar features and markets to consider have been identified for the Mill District. Space is available for office and flexible R&D in order to, as Flora said, “support both local innovation companies that are growing and attract others to the Pittsburgh market that want to be close to the university innovation hubs.” And in keeping with a live-work-play theme, the site is cleared for ground-level retail. “Large-scale retail is not our primary target, however, activating first floors of key buildings is critical to creating a sense of place, along with providing services to support the site users,” she added. The site also offers the opportunity for urban open space.

Image courtesy of Almono LLC

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Fairfield Inn & Suites Harrisburg

Shaner Hotels has opened Fairfield Inn & Suites Harrisburg, a 123-key hotel owned and operated by them. Susquehanna Area Regional Airport Authority in Harrisburg, Pa., leased the land that the property sits on. The company broke ground last year in June.

Located near the Harrisburg International Airport, the hotel also offers convenient access to the PSU Hershey Medical Center, Hershey’s Chocolate World, HersheyPark, and Penn State Harrisburg Campus. The four-story property consists of 86 rooms and 37 suites, and offers common-area amenities such as:

• on-site laundry
• car rental service
• valet dry-cleaning
• fitness center
• business center
• full-service bar

Additionally, Fairfield Inn & Suites Harrisburg includes two meeting rooms totaling 1,690 square feet of space. The development is the first Marriott-branded hotel to open near an airport.

“Our portfolio now includes four hotels in Central Pennsylvania, and we maintain an active pipeline with additional projects in the area, including a project in Mechanicsburg that we plan to break ground on shortly,” Lance Shaner, Shaner Hotels’ chairman & CEO, said in a prepared statement. “Beyond sharing best practices and economies of scale, the Fairfield Inn & Suites Harrisburg will benefit from its proximity to the airport, literally connected to the airport terminals via walkway, as well as the fact that it is the first Marriott-branded hotel near the airport.”

Rendering courtesy of Shaner Hotels

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Pittsburgh Athletic Association clubhouse

Lionstone Investments and Walnut Capital have acquired the Pittsburgh Athletic Association clubhouse, located at the intersection of Fifth Avenue and Bigelow Boulevard, within Pittsburgh’s new Oakland Innovation District. The asset is adjacent to the University of Pittsburgh’s Cathedral of Learning, UPMC’s Hospitals and Research Campus, and Carnegie Mellon University. 

“The building’s prime location at the heart of Pittsburgh’s university and medical markets, its historical significance, and the area’s high demand for real estate made this an appealing investment,” said Dan Dubrowski, co-founder & head of Capital Formation for Lionstone Investments, in a prepared statement.

Giving the asset new life

The five-story property sits on a three-quarter-acre site and was used as the clubhouse for the Pittsburgh Athletic Association (PAA), which was founded in 1908. The building was designed by Architect Benno Janssen in 1911, inspired by Renaissance Venetian palazzo architecture. Added to the U.S. National Register of Historic Places in 1978, the clubhouse offered a bowling alley, third-floor swimming pool and basketball and squash courts. The building was later shut down due to the decline of its membership. 

The new owners have plans for a complete restoration of the exterior facade, as well as interior renovations and upgrades. Once completed, the new building will feature 90,000 square feet of office space, restaurant and dining options, a clubroom reserved for the PAA, an upgraded lobby and a new fitness center. Renovations are scheduled to begin late this summer and will take anywhere from 18 to 24 months to complete. 

HFF’s Senior Managing Director Mark Popovich led the team that brokered the sale on behalf of PAA, as part of its Chapter 11 Bankruptcy reorganization. Last month, Popovich led the team that arranged the $90 million refinancing for Zenith Ridge Corporate Campus, a three-building, Class A office campus totaling 486,000 square feet, located in the Pittsburgh suburb of Canonsburg, Pa. 

Image via Google Street View 

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Holiday Inn Express & Suites Pittsburgh SW

Neema Hospitality has purchased Fairfield Inn & Suites Slippery Rock in Slippery Rock, Pa., and Holiday Inn Express & Suites Pittsburgh SW hotel in Canonsburg, Pa. The combined price tag for the two hotels was about $13 million, Neema President Sandeep Thakrar told Commercial Property Executive. This acquisition brings Neema Hospitality’s portfolio to 11 hotels, across Pennsylvania, Maryland and West Virginia.

The 75-key Fairfield Inn & Suites Slippery Rock is north of Pittsburgh, near both Slippery Rock University and the Grover City Premium Outlets. Amenities include a complimentary hot breakfast, free WiFi, in-room microwaves, in-room refrigerators and an indoor pool.

The 90-key Holiday Inn Express & Suites Pittsburgh SW is south of Pittsburgh, within the Southpointe Business Park and near the Meadows Racetrack and Casino. Its rooms offer microwaves, refrigerators, 42-inch flat-screen TVs, and free breakfast and WiFi. The hotel also has a large heated indoor pool, a patio with fire pit and more than 1,600 square feet of meeting space.

Optimistic about conventions

The hospitality picture in Pittsburgh seems a bit fuzzy, at least with regard to downtown. The 2018 State of Downtown Pittsburgh report from the Pittsburgh Downtown Partnership expressed concern that Greater Downtown hotel occupancy was down half a percentage point from the average of 67 percent over the previous five years, the Pittsburgh Post-Gazette reported. Further, the $155 average daily rate downtown in 2017 had been the lowest since 2013. This was against the backdrop of 815 hotel rooms that have opened in Greater Downtown in 2016 and 2017, with another 386 rooms set for delivery by the end of this year. Still, it was noted that Greater Downtown is the region’s strongest hotel submarket.

However, VisitPittsburgh reportedly expects 2018 to be an even better year than 2017 for convention business, with the city currently 52,000 room-nights ahead of this time last year.

Earlier this year, a 223-key Embassy Suite traded in Coraopolis, less than 20 miles from Holiday Inn Express & Suites Pittsburgh SW.

Image via Google Street View

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Serendipity Labs Pittsburgh—3 Crossings

Serendipity Labs has signed a 25,000-square-foot office lease with Oxford Development in Pittsburgh’s Strip District at 3 Crossings. The tenant plans to use the space to open its first Pittsburgh coworking location in Oxford’s Riverfront West development in December.

As metros across the country have experienced steady growth in the coworking sector, the tenant is planning to open an addition four locations across Pittsburgh.

Oxford broke ground on the project’s 2.5-acre site in September 2016, according to Yardi Matrix data. The five-story building, being constructed to achieve LEED Silver certification, will contain 130,500 square feet of Class A office space upon completion. Serendipity’s space will span the first two floors of the building and will include team rooms, a café, wellness rooms and event space.

Revitalizing the district

Located at 2545 Railroad St. along the Allegheny River, the five-story development is positioned next to another of Oxford’s assets, the 110,000-square-foot Burns White Center, which opened in March 2017. The entire 20-acre mixed-use 3 Crossings district has seen significant investment from Oxford in the recent past, with the firm’s first office building in the area opening in 2015.

“We are building a national shared office and coworking network in urban, suburban and secondary markets, allowing us to be a strategic workplace alternative for companies that want to optimize their real estate footprint,” said John Arenas, chairman & CEO of Serendipity Labs, in a prepared statement. “Adding Pittsburgh to Chicago, Columbus and Indianapolis builds both our regional and national network.”

JLL’s Managing Director John Wheeler represented the tenant in the lease transaction, with Oxford’s Vice President Joseph Tosi acting on behalf of the landlord. 

Image courtesy of Serendipity Labs

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Zenith Ridge Corporate Campus

Working on behalf of Quattro LP—an affiliate of Burns Scalo Real Estate—HFF has arranged a $90 million refinancing for Zenith Ridge Corporate Campus. Starwood Mortgage Capital provided the 10-year, fixed-rate loan for the three Class A office buildings totaling 486,000 square feet in the Pittsburgh suburb of Canonsburg, Pa. Quattro is a partnership of Jim Scalo, Jack Scalo, John Verbanac and Charles Zappala.

The property was developed by Burns Scalo Real Estate, which manages and leases space at the campus. The assets are LEED Certified and were completed in 2014 and 2016. The complex comprises Zenith Ridge 1, 2 and 3 located in Southpointe Business Park, a southwestern suburban area of Pittsburgh. BSRE announced plans to construct the first two buildings in February 2012. The firm is a full-service brokerage, management and development organization with over 5 million square feet of office space in the region.

All three buildings were fully leased as of May, when Ansys Inc., an engineering software development company which already has its 186,000-square-foot headquarters at 2600 Ansys Drive in Zenith Ridge, took an additional 31,000 square feet in Building II at 2400 Zenith Ridge Road. Other tenants in the five-story building include Regus, EQT Corp., Wells Fargo, Langan, Alladin Food Management and RBC Wealth Management, according to Yardi Matrix.

The campus has walking trails, outdoor exercise stations, ping pong tables, communal fire pits, and outdoor patios and meeting areas. It is within a short walk of South Pointe Town Center’s residential, retail, restaurant and hospitality offerings. Interstate 79 is nearby and provides easy access to downtown Pittsburgh and Pittsburgh International Airport is located 15 miles away.

The HFF debt placement team was led by Senior Managing Director Mark Popovich.

Office market moves

There has been significant activity in Southpointe Business Park in recent months. In February, Mexico-based The Aztec Fund entered the Pittsburgh area market by acquiring a 98,314-square-foot, Class A office building at 501 Technology Drive. HFF’s Popovich and his colleague, Nick Unkovic, represented the seller, Laurus Corp., in the $20.5 million transaction.

The Ansys deal at Zenith Ridge was cited as one of the key lease transactions for the second quarter by Cushman & Wakefield in a recent Pittsburgh office market report. The Ansys lease, which came in at third among the top four lease transactions, was for new space while the second lease listed in the report was a renewal of 34,911 square feet by Columbia Gas of Pennsylvania at 121 Champion Way, also in Southpointe.

The Pittsburgh office market had an overall vacancy rate of 11 percent, while Washington County, where Southpointe is located, had an overall vacancy rate of 9.4 percent in the second quarter, according to the Cushman & Wakefield report. Of the 856,278 square feet of office space under construction in the market, Washington County accounted for 27,000 square feet. Overall average asking rent for Class A properties like those at Southpointe in Washington County were at $23.61 per square foot, well below the $30.72 per square foot overall average asking rent in Pittsburgh’s central business district.

Image courtesy of HFF

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Detail of Pittsburgh skyline (photo credit: Flickr Creative Commons user Paul Wasnewski)

In what backers are calling a U.S. first, the city of Pittsburgh is rolling out an integrated energy-savings-as-a-service program. As part of a broad-based public-private collaboration of city agencies, vendors and energy service providers, the program will employ Internet of Things strategies.

Pittsburgh’s ESAS program is targeting the wasted energy consumed by devices that are plugged in around the clock. Involving 100 municipal buildings, and that the U.S. Department of Energy has estimated accounts for as much as 25 percent of energy use in commercial buildings.

The city advanced the effort in early July when it tapped BOSS Controls, a Pittsburgh-based firm specializing in IoT energy management, to deploy the technology. At the heart of the plan is BOSS’ Smart-Plug technology, which will trim costs by switching off idle equipment in city buildings. That, in turn, will yield load shedding, cutting peak demand and reducing the city’s carbon footprint.

New Model

“What we are doing today is forever changing the electric utility business model across the world, saving on costs, reducing our dependence on fossil fuels and creating many new energy technology jobs,” said Boss Controls CEO Greg Puschnigg in a statement.

Also involved are utility-provided financial incentives. Duquesne Light Co. is offering rebates through the Duquesne Light Watt Choices Program. In the July 10 announcement of the ESAS program, BOSS said that the service would soon be more broadly available to customers of Duquesne Light and other utilities around the country.  

“The product deployment is part of the city’s Climate Action 3.0 objectives of reducing emissions by 50 percent, and the city’s participation in the 2030 District Challenge was also a guiding factor for the deployment in the city’s buildings downtown,” said Grant Ervin, Pittsburgh’s chief resilience officer, in a statement. Goals of the 2030 District Challenge include a fossil-fuel free vehicle fleet, divestment from fossil fuel companies, a 50 percent cut in energy and water use and a 50 percent reduction in transportation emissions.  

Another key component of the smart-plug initiative will be connectivity provided by Sprint Magic Box, billed as the world’s first all-wireless small cell, as well as Sprint LTE modems.

Pittsburgh’s ESAS initiative grew out of a pilot program under the auspices of the Global City Teams Challenge, a four-year-old initiative of led by the National Institute of Standards and Technology. GCTC  promotes innovative public-private Internet of Things collaborations and has enlisted more than 400 companies and organizations in 150-plus cities.

Properties participating in Pittsburgh’s pilot program ranged from municipal buildings and Carnegie Mellon University properties and the US Steel Tower. Boss Controls installed smart plugs on devices as water coolers, window air conditioning units and vending machines, which often remain plugged in even when not in use.

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10688 Perry Highway in Wexford, Pa.

HFF has arranged the $13.4 million sale and $8.5 million acquisition financing of a retail property in Wexford, Pa. Levin Furniture is the sole tenant of the 53,000-square-foot asset, purchased in a 1031 Exchange by a private East Coast buyer.

The brokerage company worked on behalf of the seller. Additionally, HFF arranged a 20-year, fixed-rate loan with Protective Life Insurance Co. Levin Furniture occupies the building through a triple net lease, due to expire in roughly 20 years.

The property is located at 10688 Perry Highway, adjacent to the Whole Foods-anchored Wexford Plaza and near North Park. The 6.2-acre parcel is situated 17 miles north of Pittsburgh and is exposed to 22,800 vehicles per day.

The HFF investment advisory team representing the seller included Senior Managing Directors Coler Yoakam and Mark West, Managing Director Marc Mandel, and Directors Steve Schrenk and Michael George. Senior Managing Director Claudia Steeb led the debt placement team. In April, HFF brokered the sale of a Whole Foods-anchored retail asset in the Dallas area. The shopping center opened in 2016 and is 100 percent leased.

Image via Google Street View

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DataBank has started work on an expansion at its Pittsburgh data center, PIT1. The company, a Digital Bridge portfolio entity, will add 10,000 square feet of raised-floor space. The expansion will be located adjacent to the existing PIT1 facility and will be ready for deployment in the fourth quarter of 2018.

PIT1 is situated inside NOVA Place, a 1.5 million-square-foot redevelopment, formerly the Allegheny Technology Center at 1 Allegheny Square East, in the metro’s downtown area. NOVA Place is an interconnection hub, with access to more than 25 fiber carriers. Multiple research facilities at Carnegie Mellon University and Pittsburgh Supercomputing Center, among others, have spurred on Pittsburgh’s development as a tech hub, and benefit from the connection and availability of multiple data center operators.

“We are seeing continued demand from customers seeking edge access to the rich interconnection ecosystem we offer at our Pittsburgh data center. We believe expanding in our existing building envelope will allow us to provide high quality, enterprise grade colocation space in close proximity to our diverse carrier ecosystem,” said Kevin Ooley, president & CFO of DataBank, in a prepared statement.

Facility highlights

PIT1 will almost double in size, as it already provides 15,000 square feet of raised-floor space. It offers private suites, cages and cabinets that have a power density of more than 10kW per cabinet, totaling 1.5 megawatts of critical IT load. The expansion will add another 1.5 megawatts of dedicated power. The facility also features a redundant HVAC design, parallel UPS configuration and dedicated diesel generators.

According to Data Center Knowledge, the company acquired its Pittsburgh facility last year, along with another one in Cleveland, from 365 Data Centers. DataBank was itself acquired by Digital Bridge in 2016, and is currently present in eight U.S. markets, with 14 facilities in total.

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The property at 1026 Arch St., Philadelphia

Alfred and Nancy Cappelli have sold two retail properties in Pennsylvania for $6.8 million. Colliers facilitated both transactions. A private investor purchased one of the assets—a three-story historic building in Philadelphia—for $3.3 million. In the second deal, the Cappelli’s acquired a Pittsburgh-area gas station/convenience center through a 1031 exchange.

Located at 1026 Arch St., the first property is in the Chinatown neighborhood of central Philadelphia. The site is in close proximity to Pennsylvania Convention Center, Philadelphia City Hall, numerous museums, shops and metro stations. The building encompasses 9,000 square feet and currently houses two tenants: Action Wellness on the ground floor and a private office lender on the second floor.

The property at 5554 Steubenville Pike, McKees Rocks, Pa.

Situated at 5554 Steubenville Pike in McKees Rocks, Pa., the other asset is along Route 60, between interstates 376 and 79. Downtown Pittsburgh is within a 20-minute ride of the roughly three-acre parcel. Sheetz, a regional retailer of convenience stores/gas stations, has occupied the property for the last two decades and will remain on-site as a tenant under the new ownership.

In February, Colliers also arranged the sale of a 9,222-square-foot retail center in Indianapolis. At the time of the transaction, the property had 1,400 square feet of available leasing space.

Images courtesy of Colliers International

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Zenith Ridge at Southpointe II, Pittsburgh

ANSYS, a developer and marketer of engineering simulation software, has expanded its headquarters space at Zenith Ridge in Southpointe II, a luxury office campus in Pittsburgh.

The company currently occupies 186,000 square feet at 2600 ANSYS Drive and plans to lease an additional 31,000 square feet at building II, located at 2400 Zenith Ridge Road. The five-story building was constructed in 2014 and offers a total of 150,000 square feet. Other tenants include Regus, EQT, Wells Fargo, Langan, Aladdin Food Management and RBC Wealth Management, according to Yardi Matrix. This expansion makes the Burns and Scalo Real Estate owned-Zenith Ridge fully leased. The site comprises three buildings totaling 486,000 square feet and features amenities including:

• free parking
• outdoor patio and grills
• fire pits
• ping-pong table
• walking trails
• five exercise stations
• 24/7 management

“While partnering with JLL to evaluate our options, we found Zenith Ridge had the amenities and elements we were seeking to facilitate growth and flexibility,” said Richard Castman, senior director, Global Procurement and Real Estate, ANSYS, in prepared remarks. “ANSYS is excited about expanding our operations to Zenith Ridge, especially as the park continues to grow with an assorted mix of companies.”

JLL’s Managing Director Dan Adamski led the site consulting efforts, on behalf of ANSYS. Also this month, JLL represented Puma in leasing 24,000 square feet at SL Green Realty Corp.’s 609 Fifth Ave. in Midtown Manhattan. The brand will occupy three floors at the site of retailer American Girl’s former location.

Image courtesy of Yardi Matrix

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Embassy Suites Pittsburgh Airport hotel, Coraopolis, Pa.

NHH CMS Pittsburgh LP has sold the 223-key Embassy Suites Pittsburgh Airport hotel, located in Coraopolis, Pa. The $25 million deal was brokered by Marcus & Millichap, equating to a price of $112,108 per key. According to public records, the former owner purchased the hotel in 2008, for $21.5 million.

The property is situated at 550 Cherrington Parkway, adjacent to Pittsburgh International Airport. The site is located between Interstate 376 and Beaver Grade Road, while downtown Pittsburgh is roughly 17 miles away.

Embassy Suites Pittsburgh Airport was built in 1990 on a hilltop. The geological location provides good visibility from I-376, the main artery connecting the airport to Downtown. The closest retail, dining and entertainment center is within an eight-minute drive.

Jerry Swon and Daniel Zagoria of Marcus & Millichap’s Manhattan office represented the seller and procured the buyer.

“The buyers’ vison for repositioning the asset made them uniquely qualified to execute on this transaction,” said Swon, in prepared remarks.

Image via Google Maps 

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Rendering of Canonsburg Distribution Center

T2 Capital Management has acquired a 130,583-square-foot vacant industrial building in Canonsburg, Pa., marking the company’s first acquisition in the state. The new owner plans to invest $10 million in upgrading the facility and bringing it to current Class A standards.

The upcoming project, dubbed Canonsburg Distribution Center, is located at 135 Meadow Lane on a 7-acre lot. The distribution center will feature 30-foot clear heights, 12 shipping docks, new mechanical, electrical and plumbing systems, as well as LED lighting and ESFR sprinklers.

Local economic development

The facility is less than a mile from Interstate 79, which provides a clear line of distribution into Pittsburgh and other areas. The area sees an annual average daily traffic count between 22,000 and 25,000 vehicles, according to the Pennsylvania Department of Transportation. Pittsburgh International Airport is roughly 25 miles from Canonsburg Distribution Center.

“The building is located in a great market and we saw a unique opportunity for local economic development. Aside from the space and immense potential, the chance to be part of a hard-working and growing community certainly drew us to the location,” said Jeff Brown, co-founder & CEO of T2 Capital Management, in a prepared statement.

Space at the distribution center is already sought after. Anixter, a communications and security products, networking and cabling supplier, signed on for more than 50,000 square feet. The 10-year minimum lease will begin in September when renovations are slated for completion. T2 hired Fukui Architects, Gateway Engineers and P2 Contracting to work on the project.

T2 and Pangea Mortgage Capital were recently tapped by a joint venture to secure financing for a new development on the former Motorola Solutions campus in Schaumburg, Ill. The $30.1 million loan will facilitate the transformation of the site into a master-planned project.

Image courtesy of T2 Capital Management

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The Mall at Robinson in Pittsburgh

Forest City Realty Trust has traded The Mall at Robinson, an 873,000-square-foot retail asset in Pittsburgh, to QIC as part of a nearly $3.2 billion regional mall portfolio transaction. Forest City’s share in the 10-property portfolio is valued at $1.6 billion.

Located at 100 Robinson Centre Drive, the two-story mall, northeast of the intersection of Interstate 376 and U.S. Highway 30, is approximately 10 miles west of downtown Pittsburgh. The property opened in 2001 and is anchored by JCPenney, Macy’s and Sears. The building is near a number of other retail assets, including IKEA and the Robinson Town Centre.

Two of Forest City’s other shopping malls are expected to change hands later this year, as part of the portfolio: the 1.3 million-square-foot Westchester’s Ridge Hill in Yonkers, N.Y. and The Shops at Wiregrass in Tampa, Fla., a 642,000-square-foot open-air shopping center. Four other properties, located in California, Nevada and Virginia, will be sold once Forest City secures replacement assets.

Image via Google Maps

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501 Technology Drive, Canonsburg, Penn.

Mexico-based The Aztec Fund has entered the Pittsburgh market with the acquisition of a 98,314-square-foot, Class A office building in Canonsburg, Penn. According to Yardi Matrix, the seller  Laurus Corp., received $20.5 million for the asset.

The three-story, 2000-built property sits on 8.5 acres at 501 Technology Drive and is part of the 589-acre Southpointe Office and Industrial Park, the only mixed-use campus in southwestern Pennsylvania. The nearby Interstate 79 provides easy access to downtown Pittsburgh, while Pittsburgh International Airport is situated 15 miles south. Multiple restaurants, hotels, a golf course, retailers, fitness centers and communities bound the park.

A roster of prestigious tenants including Primetals Technologies and Siemens occupy the entire building. HFF Senior Managing Director Mark Popovich and Associate Nick Unkovic represented the seller in the transaction. Popovich was also involved in the sale of a trophy office asset in downtown Pittsburgh. 

According to Yardi Matrix, the property previously traded in 2012, when Laurus acquired it from Maguire & Partners Property Group for $13.7 million.

Image courtesy of Yardi Matrix

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Global cloud apps and technology solutions Petrosoft has consolidated its business operations in order to meet the growing demand for its retail operations by occupying 67,000 square feet of space at one if its Pittsburgh facilities. The company will move its administrative, human resources, product development, implementation, customer services, marketing, sales and technical support teams from its current location at 2025 Greentree Road in Pittsburgh.

290 Bilmar Drive, Pittsburgh

The new headquarters is a three-story property located at 290 Bilmar Drive and constructed in 1994, Yardi Matrix data shows. Amenities include 10-foot ceiling heights, sub-dividable floorplans and 335 parking spaces. The asset underwent a series of upgrades, including the renovation of the lobby, the resurfacing of the parking lot and landscaping. Additionally, it provides easy access to the Pittsburgh International Airport, retailers, hotels and eateries.

“The relocation of our headquarters to Bilmar from Greentree has provided us with the space needed for expansion and an important milestone. This move has given the team a reason to reflect on the growth of the company over the past 15 years,” Petrosoft CEO & Founder Sergei Gorloff, said in a prepared statement.

Petrosoft is not the only company which prefers to keep its footprint local. In October, law firm Marshall Dennehey Warner Coleman & Goggin moved its Pittsburgh office to the Pittsburgh central business district.

Image courtesy of Yardi Matrix

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Newly expanded raised floor space at the Expedient data center at Nova Place in Pittsburgh.

Expedient has completed a third upgrade to one of its Pittsburgh data centers, updating the power capabilities and sustainability of the facility. ACM at Nova Place saw a $14 million investment, an upgrade which includes a physical expansion of the building.

The company added 10,000 square feet of new raised floor space and cloud capacity, for infrastructure as a service and disaster recovery as a service solutions (IaaS and DRaaS). Several more thousand square feet were dedicated to fully redundant switchgear, UPS systems, and emergency generators of up to two megawatts of demand and fuel capacity.

Facility specifications

Located within the Allegheny Center Mall business park, Nova Place is Expedient’s second data center in Pittsburgh. The entire facility totals 26,220 square feet, with 16,000 square feet of raised floor space. It has four UPS systems of 500 kVA each, and can produce 560 tons of HVAC cooling. Two standby generators of two megawatts each are capable of 24 hours of operation in case of an electrical outage. Expedient is one of the area’s largest providers of colocation solutions, with data facilities in Columbus, Cleveland, and other cities. They are connected through Layer 2 network access and a multi-gigabit private fiber backbone.

“The significant investment we have made in our Nova Place data center well-positions us as the region’s leading provider of IaaS and cloud solutions, and demonstrates our commitment to providing leading-edge technical solutions to our customers,” said David Saliba, regional vice president for Expedient, in a prepared statement.

Image courtesy of Expedient Data Centers

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Hazelwood Green development site

Formerly known as the Almono site, Hazelwood Green is one of the largest redevelopment projects in Pittsburgh. One year after the Pittsburgh Planning Commission approved the redevelopment of the 178-acre brownfield site in Pittsburgh’s Hazelwood neighborhood, construction commenced on the first advanced manufacturing facility. The adaptive reuse project of the old Mill 19 building is the anchor development on the site, encompassing 265,000 square feet.

Phase I of the Mill 19 project will create 94,000 square feet of mixed-use space. As part of an agreement between Carnegie Mellon University and the Regional Industrial Development Corp., the university has agreed to lease two floors, comprising around two-thirds of the facility’s entire floor space. The new building will be raised solely inside the remaining skeleton of the historic mill.

Cutting-Edge Technology

“This development can help propel us to the top of the global manufacturing industry. As the technologies and methods developed here are utilized by American industry, Hazelwood Green will become synonymous with cutting-edge manufacturing, the technologies it is built upon, and the new jobs it creates,” said Dennis Davin, secretary of the Department of Community and Economic Development, in prepared remarks.

Rendering of manufacturing hub in Mill 19
Credit: MSR Design, Ten X Ten and R3A

The Carnegie Mellon facility will house research, development and office spaces for the non-profit Advanced Robotics for Manufacturing Institute, a $250 million public-private cooperative. Academic research and corporate development come together in this advanced manufacturing facility.

 “Advances in robotics, artificial intelligence, materials science and 3-D printing are rapidly transforming manufacturing, with the power to trigger a significant resurgence of this economic pillar in the United States, and in Pittsburgh in particular,” said Farnam Jahanian, interim president of Carnegie Mellon University, in a prepared statement.

According to the Pittsburgh Post-Gazette, the former steel mill site is one of the 20 properties being offered as potential locations in Pittsburgh for the second Amazon headquarters.

Images courtesy of Carnegie Mellon University

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Miracle Mile Retail Center

Ten Capital Management has sold its limited partnership interest in Miracle Mile Retail Center to a joint venture between M&J Wilkow LTD and ALTO Real Estate. The nearly 300,000-square-foot, Class A retail center is located in Monroeville, Pa.

Located at 4100 William Penn Highway, 13 miles east of the Pittsburgh Central Business District, Miracle Mile Retail Center is a power center anchored by tenants such as LA Fitness, Marshalls, PNC Bank, DSW and Office Max. The property was 94 percent occupied at the time of the purchased and 98 percent leased upon sale. Built in 1954 and then renovated in 2006, Miracle Mile Retail Center offers approximately 1,400 parking spaces.

“Miracle Mile is the dominant retail center in the eastern suburbs of Pittsburgh due to its location within the William Penn Highway Retail Corridor,” Paul DiSandro, TCM’s portfolio manager, said in prepared remarks. “Tenant demand for space was consistently high, resulting in an average occupancy of 98 percent and rent increases averaging over 9 percent for new and existing tenant renewals over our hold period. We successfully achieved our original business plan which included monitoring and maximizing occupancy, lease roll and tenant quality/health.”

Last month, M&J Wilkow in partnership with Intercontinental Real Estate Corp., sold a 460,000-square-foot Class A office building in Columbia, S.C.

Image via Google Street View

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UPMC Heart and Transplant Hospital

UPMC wants to take patient care in metropolitan Pittsburgh to a new level with the development of three state-of-the-art hospitals. The health-care provider will invest $2 billion to open the UPMC Heart and Transplant Hospital, UPMC Hillman Cancer Hospital and UPMC Vision and Rehabilitation Hospital. The facilities will total more than 1.6 million square feet.

“Working in partnership with the University of Pittsburgh Schools of the Health Sciences, we will radically change health care as we know it to provide personalized, effective and compassionate care. At core, these digitally based specialty hospitals are the expression of our cutting-edge translational science creating treatments and cures for the most devastating diseases,” Jeffrey Romoff, president & CEO of UPMC, said in a prepared statement.

UPMC Hillman Cancer Center

The Hillman Cancer Hospital will feature a 240,000-square-foot inpatient tower and a 160,000-square-foot outpatient building on the UPMC Shadyside campus. The Heart and Transplant Hospital, which will be located at UPMC Presbyterian in Pittsburgh’s Oakland neighborhood, will be the largest of the three facilities, with 940,000 square feet in a 15-story tower featuring 620 private patient rooms. Completing the group is the 300,000-square-foot Vision and Rehabilitation center at the UPMC Mercy campus.

UPMC’s new hospitals will boast prominence beyond Pennsylvania and even the U.S., and not just for their innovative services. A joint venture of renowned architecture firm HOK and local firm IKM are behind the design of the Vision and Rehabilitation, but UPMC has another idea for developing the design of the Heart and Transplant Hospital and the Hillman Cancer Hospital. “We are inviting select architects to participate in a [international] design competition with the goal of creating facilities that are as awe-inspiring as the research and care that will take place within them—vibrant additions to the Pittsburgh cityscape,” Leslie Davis, senior vice president of UPMC and executive vice president & chief operating officer of the Health Services Division, told Commercial Property Executive.

Digital hospitals

UPMC Vision and Rehabiliation Hospital

The hospitals will be replacement facilities; they won’t result in the addition of more beds, but they will bring about, as UPMC describes, digital hospitals of the future. Microsoft is working with UPMC to make the high-tech premise a reality.

UPMC plans to debut the Vision and Rehabilitation Hospital in 2020, and open the Hillman Cancer Center in 2022.

Images courtesy of UPMC

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700 Braddock Ave., Pittsburgh, Pa.

Intervala, a high-tech electronics manufacturing company, signed a new 135,000-square-foot lease for the next five years with The Regional Industrial Development Corp. of Southwestern Pennsylvania (RIDC). The firm will occupy three floors of the S Building within Keystone Commons in Turtle Creek, Pa., a location from which Intervala has been operating for more than 10 years. The new agreement allows for an additional five-year lease extension.

The landlord has recently modernized the building at 700 Braddock Ave. by replacing the windows and upgrading the parking, among other improvements. “They took an old building from 1954 and created a comfortable, professional environment that has helped us attract new customers, suppliers and employees. It’s a clean, welcoming space with lots of natural lighting,” said Scott Gustafson, the company’s COO, in prepared remarks.

RIDC acquired the former Westinghouse complex in 1989 and since then, the company has been working to turn the property into a world-class industrial park. It now comprises several high-bay buildings including the West Shop Industrial mall, a plant turned into a facility with “industrial-theme” store fronts. The site encompasses approximately 2.3 million square feet of industrial, warehouse, manufacturing and office space, home to more than 40 companies. 

Image via Google Street View

The post Intervala Inks New Long-Term Lease with RIDC appeared first on Commercial Property Executive.

Union Trust Building

Marshall Dennehey Warner Coleman & Goggin has moved its Pittsburgh office to the Union Trust Building located in the city’s central business district. The company will occupy the entire seventh floor, which comprises approximately 46,000 square feet and comes with a potential expansion opportunity.The firm is relocating from Pittsburgh’s tallest building, the 34-story U.S. Steel Tower Building.

The firms new office building features amenities such as:

• fitness center
• conference room
• media room
• auditorium
• bike storage
• parking level

Located at 501 Grant St., in the heart of downtown Pittsburgh, the property is in close proximity to various parking areas, bus routes, light rail, cycling and taxi stands options. Additionally, FedEx Office Print & Ship Center, Steel Plaza Station, The Tower at PNC Plaza, PPG Paints Arena and various hotels—including Pittsburgh Marriott City Center, DoubleTree by Hilton Hotel & Suites, Omni William Penn Hotel and Kimpton Hotel Monaco Pittsburgh—are also nearby.

“The new office maximizes space efficiencies and consolidates our 85 employees on one floor with the ability to accommodate future growth,” Scott Dunlop, managing attorney at the firm’s Pittsburgh office, said in prepared remarks. “We remain centrally located to the courts and transportation arteries and look forward to serving our clients from this renowned Pittsburgh architectural landmark.”

The Philadelphia-based law firm entered Pittsburgh market in 1993. The recent relocation puts the company in its third-largest office, which accommodates 85 people. The moved was first announced in November 2016 and according to BizJournals.Com at that time, Union Trust Building was 75 percent leased. Recently, Evoqua Water Technologies signed a 60,000-square-foot office lease in one of the largest buildings in the central business district.

Image courtesy of The Davis Cos.

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Home2 Suites by Hilton Pittsburgh Area Beaver Valley

Home2 Suites opened its newest property, Home2 Suites by Hilton Pittsburgh Area Beaver Valley, a 107-key hotel situated approximately 30 miles from downtown Pittsburgh. 

Located at 1000 Wagner Road Extension South, the property is in close proximity to various retail, shopping, dining and restaurant such as Columbia Gas Training Center, Penn State Beaver, Community College of Beaver County and Beaver Valley Automall. Additionally, Pittsburgh International Airport is a 20-minute drive away.

Various amenities 

The three-story hotel offers a mix of suites and rooms. The pet-friendly property features common area amenities such as:

• on-site laundry facility
• fitness center
• indoor heated saline pool
• business center
• patio area with grill
• free Wi-Fi

Home2 Suites has launched its “Road to Home200” challenge as it nears its significant 200^th property milestone. Home2 Suites by Hilton Pittsburgh Area Beaver Valley is marking the 184^th Home2 Suites hotel.

“Home2 Suites Pittsburgh Area Beaver Valley is the ideal hotel for both business and leisure travelers, offering flexibility and added value,” Anthony Farley, general manager, said in a statement. “As a new extended-stay lodging option, our hotel aims to provide visitors comfort and convenience for a unique stay experience.”

Image courtesy of Hilton

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Kaufmann building

Walker & Dunlop closed a $14.9 million construction loan with Orix USA for EVEN Hotel. Jacob Cohen secured the non-recourse loan with three-years of interest-only payments on behalf of Reception Hotels and Resorts LLC. EVEN Hotel, owned by InterContinental Hotels Group, will be a boutique hotel located in the historic Kaufmann’s department store building in downtown Pittsburgh. Edgar Kaufmann, patron of Fallingwater together with the original owner Frank Lloyd Wright, will be designing the executive offices of the building.

Ideal Location

The hotel will be part of the Kaufmann’s Grand on Fifth, a master redevelopment on the former department store that will feature a mix of retail, hospitality, multifamily and office space. The borrower, Reception Hotels and Resort acquired the fifth and sixth floors for the hotel. Built in 1887, the property, also known as The Big Store, was the largest department store in the area.

Located at the corner of 401 Fifth Ave. and 498 Smithfield St., the hotel is in close proximity to the David Lawrence Convention Center, Pittsburgh’s Theater District, PNC Park, Heinz Field and other business headquarters. EVEN Hotel will feature amenities such as a 1,500-square-foot fitness center, flexible workspaces and a variety of dining options. 

“The success of this transaction required coordination with several different parties; not just the Borrower and lender, but those who focused on the retail, office, and entertainment spaces within the building, as well as coordinating intercreditor agreements with the bridge lender for the historical tax credits,” Cohen said in a statement. “We are confident that this cornerstone investment will be transformative for both the Borrower’s portfolio and the downtown Pittsburgh area.”

Back in August, Walker & Dunlop closed $59 million in bridge and equity financing for the acquisition of Newmarket Business Park in Marietta, Ga.

Image courtesy of Walker & Dunlop

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Nova Place

Faros Properties tapped HFF to facilitate financing for two of its Pittsburgh office properties: Nova Place and 106 Isabella. HFF secured a $127.5 million five-year, floating-rate loan through Wells Fargo. 

The HFF debt placement team of Executive Managing Director Gerard Sansosti and Senior Managing Director Nick Matt, representing the borrower.

“In a very short time, Faros has transformed a tired office property into a first class mixed-use complex,” Matt told Commercial Property Executive. “Faros has invested significant capital in the property, which has made their original vision a reality. Both existing and new tenants have greatly benefited from their efforts.”

The Properties

106 Isabella

A former urban mall converted to office use in the 90s, Nova Place encompasses three office complexes: Concourse, Tower 1 and Tower 2. Comprising 1,250,702 square feet and a 3,000-space parking garage, the property is currently 86 percent leased and includes 15,000 square feet of ground floor retail. Notable tenants include PNC Bank, Continental Broadband, Union Fitness, Alloy 26, Microbac, Confluence and United Healthcare. Last year, Nova Place received the Wired Certified Platinum Rating by WiredScore, becoming the only building in the city with that designation.

106 Isabella features nine stories comprising 87,052 square feet of office space. The property is currently vacant, according to Yardi Matrix, but future tenants of the building will have access to an on-site cafeteria and fitness center. Originally built in two phases in 1910 and 1920, the asset last underwent cosmetic renovations in 1982. 

Nearby attractions include PNC Park, the Carnegie Science Center, Heinz Field, the Warhol and Allegheny River.  

Images courtesy of Yardi Matrix

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The Grant Building, Pittsburgh

McKnight Realty Partners refinanced the Grant Building, a prime office tower totaling 461,007 square feet in Pittsburgh, through a $42 million loan secured by HFF. The financing comprises a 10-year, fixed-rate first mortgage loan through Starwood Mortgage Capital and a 10-year mezzanine loan through Morrison Street Capital. 

The loan will be used to refinance the existing debt. The new financing replaces a $32.2 million loan placed Sept. 28, 2011, through Nationwide and is due to mature in 2021, according to public records.

Premier asset with prestigious tenants

The Class A asset is located at 310 Grant St. and spreads across 37 stories. It was built in 1930 and comprises 15,000 square feet of ground floor retail and dining, in addition to 225 parking spaces. Situated in the city’s central business district, it is in the immediate vicinity of restaurants, cafes, retailers, banks, hotels, parks and the City Hall. The property is minutes away from the First Avenue T station and offers easy access to major roads such as Interstates 376 and 279. The property is 90 percent leased to tenants such as Huntington Bank, The Hillman Co. and Sisterson & Co., to name a few.

HFF Executive Managing Director Gerard Sansosti and Senior Managing Director Nick Matt fronted the debt placement team which represented the landlord in the transaction.

Image courtesy of Yardi Matrix

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Donald F. Smith, Jr.

Whether a company is established or in its early stages, location decisions are often made based on several factors, such as a site’s proximity to a highly skilled, well-educated workforce and to other businesses that allow for synergies and a dynamic business ecosystem, as well as the property owner’s ability to accommodate evolving needs.

In Pittsburgh, which is in the midst of an economic renaissance, a unique development entity, the Regional Industrial Development Corporation of Southwestern Pennsylvania (RIDC), has been a valuable tool. RIDC is not an arm of government, but a private, nonprofit entity both mission-driven and entrepreneurial.

Many regions around the country, like Pittsburgh, have experienced a loss of heavy industry, leaving behind large, obsolete and environmentally compromised buildings and campuses. These properties sit idle because, for most for-profit developers, the cost of redevelopment would make them unprofitable. The model RIDC follows in the Pittsburgh region, however, has proven effective in breathing life back into these properties, creating attractive corporate locations and providing enormous benefits to local communities. 

Our experience with the Lawrenceville Technology Center is a case in point. RIDC took ownership of Heppenstall Steel’s former 14-acre industrial site in 2002, which was also later occupied in part by a chocolate manufacturer. According to Pittsburgh Magazine, the urban community where the property resides was “once a blue-collar neighborhood more down-and-out than up-and-coming.” Since then, that site has undergone a tremendous transformation and the surrounding community has become one of the hottest neighborhoods in Pittsburgh. 

The nonprofit advantage

RIDC can shoulder highly speculative projects with significant upfront costs, partly due to our nonprofit status. We can take a longer time horizon and be more flexible in our view of profitability. The size and diversity of our portfolio enable us to make decisions that may not be the most profitable in the short term, but in the long term, allow us to balance our need to be economically successful with our desire to be a catalyst for the community’s overall economic improvement.

We acquired the Lawrenceville property with the vision of creating an urban technology park. Surrounded by universities that were commercializing cutting-edge research and development, we felt that such a project could become a desirable business location, as well as an anchor for the community.

The remediation process required the design and installation of vapor barriers and restrictions on the withdrawal of groundwater under the property. And all buildings to be razed needed to be remediated prior to demolition.

Today, the section of the site that formerly housed a chocolate factory has been renovated into a multi-occupancy, office/high-tech manufacturing facility, and the 71,000-square-foot building is now home to some of Pittsburgh’s fastest-growing firms, including RedZone Robotics, nanoGriptech, Helomics and HEBI Robotics. The former Heppenstall building—a 30,000-square-foot heavy industrial, high-bay facility—was recently built out for Carnegie Robotics, a spinoff of the nearby National Robotics Engineering Center (NREC).

Deep impact

There are now more than 230 jobs in the Lawrenceville Tech Center, and we are looking forward to the arrival of Caterpillar’s Pittsburgh Automation Center, which is expected to begin occupancy soon.

Projects like this one are what help make Pittsburgh attractive, especially to new-economy businesses. And even though RIDC is a nonprofit, it pays property taxes, as part of an approach that puts us in a good position to also work with local governments on issues related to site planning that will be important to future occupants.

Utilizing a model along these lines would give communities a tool for becoming more attractive to the companies that are driving our economy into the future and, at the same time, address the daunting challenges they face because of unused industrial properties that are hindering their own revivals.

Donald F. Smith, Jr., is president of the Regional Industrial Development Corporation (RIDC) of Southwestern Pennsylvania.

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Pittsburgh rent evolution, click to enlarge

Once a predominantly blue-collar city, Pittsburgh today relies on a diversified innovation economy and a highly educated workforce. University-based research is focused on life sciences, information technology and robotics, which are major economic drivers for both the region and nation.

Despite a slowly shrinking population, the city’s multifamily market remains steady, bolstered by increased hiring in recession-resistant sectors—such as education and health services—which has had a ripple effect on the region’s economy, driving demand for apartments and office space. Most of the growth can be attributed to the two largest health-care systems, UPMC and Allegheny Health Network, as well as education institutions such as the University of Pittsburgh, Carnegie Mellon University, Duquesne University and Robert Morris University. Increased tourism activity over the past year has also led to significant employment gains in the leisure and hospitality industry, offsetting the loss of manufacturing and mining jobs.

Demand for apartments is especially strong downtown, where more than 40 percent of all residents are Millennials. Developers are targeting the area, which has seen the city’s fastest population growth in the seven years post-recession. Overall, the metro continues to be an affordable place to live, with rents averaging $1,038 as of May and a median home price of approximately $135,000 over the past year.

Read the full Yardi Matrix report.

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K&L Gates Center

Evoqua Water Technologies signed a 60,000-square-foot office lease at one of the tallest buildings in Pittsburgh, Pa. The company will occupy the entire 32nd, 33rd and 34th floors, with a potential expansion opportunity. The relocation from 181 Thorn Hill Road, Warrendale, Pa., will move approximately 200 employees. The shift, which is the largest one to the Central Business District in the last three years, is scheduled for the end of the month.

“We’ve increased our headcount significantly over the past few years, and as we plan for the future, we thought it best to tap into the vibrancy and energy of the Central Business District,” Evoqua CEO Ron Keating, said in a prepared statement. 

Recently refurbished asset

The K&L Gates Center is situated at 210 Sixth Ave. and was formerly known as the One Oliver Plaza. According to Yardi Matrix, the 637,000-square-foot asset comprises 1,200 square feet of retail space and spreads throughout 39 floors. The property was built in 1968 and renovated in 2010, featuring high-end conference facilities, a new lobby, a refurbished exterior façade and white marble interior.

The building is anchored by international law firm K&L Gates, which chose the building as its headquarters in 2007. JLL represented the tenant in the transaction.

Image courtesy of Yardi Matrix

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2300 Sweeney Drive, Clinton, Pa.

After leading the global marketing launch of the 3.25 million-square-foot mixed-use development in Eagan, Minn. back in June, Newmark Knight Frank secured the marketing and sale of Clinton Commerce Center I, a 297,200-square-foot industrial space located close to Pittsburgh International Airport. The company represented Clinton Center LLC. PenTrust, a local pension fund advisor, provided the financing for the project which was valued at $26.7 million.

Single-tenant property

Located at 2300 Sweeney Drive, within Clinton Commerce Park, the Class A facility is leased entirely to Berlin Packaging on a long-term lease. This marks the fourth industrial building completed in the Clinton Commerce Park and the first sale to a third party.

Louis Oliva, Keith Yearout and Jim Vondran of NKF represented the seller and secured the buyer, Stag Industrial Holdings. This transaction marks Stag’s fourth acquisition in Pittsburgh.

“There is a defined exit strategy for class A industrial projects for both fee simple and ground lease projects in our market,” Oliva said in a prepared statement. “In addition, given its proximity to the Royal Dutch Shell Ethane Cracker facility, it provides additional support for other industrial development projects located within the I-376; Route 576 and Route 22 corridors that the western suburbs of Pittsburgh will continue to be a growth corridor for the foreseeable future.”

Image via Google Maps

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Kevin Jones

ZRG Partners, a global leader in executive search and talent management, has added Kevin Jones as managing director. Kevin heads the company’s Pittsburgh, Pa. office where he will lead the firm’s Global Real Estate executive search practice.

Jones’ extensive work history

As managing director, he will be responsible for search engagement, strategy and delivery, offering a unique blend of human capital experience. Jones brings more than 25 years of knowledge in innovative executive search and assessment experience. Previously, he served as a managing director with Christenson Advisors, a boutique real estate consultancy focused on human capital solutions.

 “Kevin has a solid track record in the commercial real estate market where he has successfully completed senior level executive search work,” Larry Hartmann, CEO of ZRG, said in a statement.  “Kevin will be an asset to ZRG and provide expertise in this niche. We are pleased to add Kevin to the global team as we broaden our North American footprint.”

Jones founded Jones Group ESF, a pioneering boutique-retained executive search firm with a focus to serving the U.S. healthcare real estate markets. Prior to founding Jones Group, he was a partner with Crown Advisors Inc.

Image via LinkedIn

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Summit Hotel Properties Inc. has closed the acquisition of a 812-key, five-hotel portfolio from Xenia Hotels & Resort Inc. for a total amount of $163 million, or approximately $201,000 per key. The properties are located in Fort Worth, Texas, Kansas City, Mo., Pittsburgh and Baltimore.

CBRE’s Hotels Vice President Arpit Shah, Executive Vice President Ron Danko and Managing Director Andy Wimsatt represented the seller. Summit intends to spend between $13 million and $16 million in capital improvements over the next two years.

Historic gems

The portfolio includes Courtyard Fort Worth Downtown/Blackstone, a 203-key hotel constructed in 1929 as the famed Blackstone Hotel, which affiliated with the Courtyard by Marriott brand in 1999. Located in Sundance Square in the heart of downtown Fort Worth, the asset features a fully equipped recreation center and an outdoor pool.

Courtyard Kansas City Country Club Plaza is a historic 123-key hotel located in Kansas City, Mo. The asset, developed in 1925 as the luxury Park Lane Apartments and converted to Courtyard by Marriott in 2006, features luxury bedding, state-of-the-art fitness center and an outdoor pool. Kansas City International Airport and Kauffman & Arrowhead Stadium are just minutes away from the property.

The 182-key Courtyard Pittsburgh Downtown was formerly four office buildings originally built in the early 1900s and converted to Courtyard by Marriott in 2004. The asset sits in the heart of the Cultural District and is conveniently located next to the David L. Lawrence Convention Center and many downtown attractions, including the Strip District, PNC Park and Heinz Field. Courtyard Pittsburgh Downtown features modern decor, luxury bedding, work areas with well-lit desks and free Wi-Fi, as well as three state-of-the-art meeting rooms.

Baltimore Inner Harbor Hotels

Hampton Inn & Suites Baltimore Inner Harbor is a 116-key hotel located just two blocks from the Inner Harbor and Baltimore Convention Center. The asset, housed in the former U.S. Fidelity and Guarantee Bank Building constructed in 1906 and converted to a lodging facility in 2004, features expansive windows, indoor heated pool and on-site fitness center.

The 188-key Residence Inn Baltimore Downtown/Inner Harbor is the only property in the portfolio that was purpose-built. Situated downtown, near the Inner Harbor, Baltimore Aquarium and Hippodrome Theatre, the hotel features a 24-hour fitness center, business center, as well as Wi-Fi and a pet-friendly policy.

 “Strong interest in the portfolio was driven by the ability to purchase institutional-quality, boutique-oriented assets affiliated with some of the industry’s most premium brands. In addition, the hotels offer distinctive historic architectural elements, dynamic locations within urban settings in geographically-diverse primary markets across the U.S. and meaningful revenue growth opportunity through capital investment,” said Shah in a prepared statement.

Summit Hotel Properties focuses on owning premium-branded assets with efficient operating models primarily in the upscale segment of the lodging industry. The company’s portfolio currently consists of 76 properties with a total of 10,705 guestrooms, located in 22 states.

Images Courtesy of Marriott and Hampton Inn

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Harrisburg International Airport’s 1 Terminal Dr, Middletown, PA

Marriott is expanding its Pittsburgh portfolio with another Fairfield Inn & Suites. The 120-key hotel is located at the Harrisburg International Airport. Shaner Hotels owns and will be managing the property.

Common area amenities will include a fitness and a business center, an on-site laundry facility, a lobby lounge and approximately 1,600 square feet of meeting space. Additionally, Fairfield Inn & Suites Harrisburg will offer a daily, complimentary breakfast along with a bar featuring a wide array of drinks and small bites food menu.

Airport-bound location

The four-story hotel is located adjacent to the Harrisburg International Airport, which is situated in central Pennsylvania, making it the busiest airport. Fairfield Inn & Suites Harrisburg is minutes away from the Middletown business community and Penn State Harrisburg Campus. Additionally, FedEx and UPS have extensive facilities at the airport which serves as a take-off/landing practice runway for Air Force One.

“This hotel is an ideal addition to our growing, international portfolio of select- and full-service hotels located in key markets with strong demand generators and high barriers to entry,” Plato Ghinos, Shaner president, said in a statement. “HIA provides transportation to more 1.3 million passengers and 100 million pounds of cargo annually. Furthermore, it is just a short drive to such major attractions such as HersheyPark, Hershey’s Chocolate World, the PSU Hershey Medical Center and downtown Harrisburg, creating a strong lodging demand for leisure and business travelers alike.”

Image via Google Maps

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Residence Inn Pittsburgh Oakland University Place

Residence Inn by Marriott is expanding its footprint in Pittsburgh with the opening of a new 144-key hotel. The property is operating as a Marriott franchise, owned by MWK Forbes II and managed by North Star Lodging Management Inc.

Located at 3341 Forbes Ave., Residence Inn by Marriott Oakland/University Place is situated adjacent to Magee-Women’s Hospital of UPMC, the University of Pittsburgh Medical Center hospitals and Petersen Events Center. Additionally, PPG Paints Arena, PNC Park, Heinz Field and Rivers Casino are also nearby.

Value-add amenities

The pet-friendly Residence Inn Pittsburgh Oakland/University Place offers studio, one- and two-bedroom suites with separate living and sleeping areas. Each suite features a fully-equipped kitchen with a coffeemaker, microwave oven and residential-seized appliances. Common area amenities include:

• Fitness center
• Indoor pool
• Barbecue and/or picnic area
• Air conditioning
• Grocery shopping service
• On-site laundry facilities

“We are pleased with the continued growth of Residence Inn hotels in the Pittsburgh area,” Diane Mayer, vice president & global brand manager for Residence Inn, said in a statement. “When on the road for an extended period, our guests need space to spread out, maintain their life’s pace and restore their energy to help them maintain a healthy balance and routine while traveling. This new hotel offers them a seamless blend of modern style and functionality that allows them to settle in and thrive.”

Currently, the hotel is pursuing a LEED certification. Residence Inn by Marriott has more than 700 properties in 10 countries worldwide. In May, Marriott opened another Pittsburgh hotel, a 109-key asset located in McCandless Crossing.

Image courtesy of Marriott

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Rendering of Fairfield Inn & Suites Pittsburgh North/McCandless

Marriott has opened Fairfield Inn & Suites Pittsburgh North/McCandless, a 109-key hotel located in McCandless Crossing. AdVenture Development LLC, a North Carolina-based company, owns the hotel and Prospera Hospitality manages the property.

Located at 901 Providence Blvd., in the Town of McCandless neighborhood, the development is in close proximity to a variety of shops, restaurants, grocery stores and a movie theatre. UPMC Passavant Hospital, LaRoche College, Ross Park Mall and Rivers Casino are also nearby. Additionally, the hotel offers convenient access to bike rentals, bile trails, bowling, hiking trails, horse backing, volleyball and tennis courts. McCandless Crossing, an open-air lifestyle center, is located less than a 20-minute drive from both Cranberry Township and downtown Pittsburgh. 

The six-story hotel offers amenities such as a fully equipped fitness center, Wi-Fi, free breakfast, an indoor swimming pool, a laundry facility and a full-service business center.

“McCandless Crossing is a mecca for shopping and dining north of the city so we’re really thrilled to be in the heart of this booming business district and to have the opportunity to partner with our neighboring businesses and institutions,” Todd Pifer, general manager, said in prepared remarks.

Marriott International also recently unveiled a comprehensive expansion to its initiative to drive adoption of modular construction of hotels and plans to sign 50 hotel deals in the upcoming year.

Rendering courtesy of Marriott International

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Carnegie Robotic

Pittsburgh—NAIOP has named the redevelopment of the former Heppenstall Steel Mill into Carnegie Robotics at RIDC’s Lawrenceville Technology Center in Pennsylvania as one of the top impact projects of 2017. The project was one of just three recognized in all of North America.

“We are honored by this recognition,” Donald Smith, RIDC’s president, said in a prepared statement. “It is a testament to our team, but more importantly to the great partners and their catalytic projects that RIDC is uniquely able to help make happen.”

RIDC acquired the Heppenstall Building (also known as the Blue Building) in 2002, and it sat vacant for many years before the redevelopment started. RIDC partnered with Allegheny County and the Commonwealth of Pennsylvania to remediate and prepare the site for future development.

“Implementing effective and creative approaches to drive the redevelopment of brownfields has been an area of significant focus for the Wolf Administration,” Dennis Davin, Department of Community and Economic Development’s secretary, said in prepared remarks. “We applaud RIDC’s efforts to bring this project to fruition and extend our sincere congratulations on its recognition one of NAIOP’s top 2017 impact projects.”

The renovated Blue Building has become a centerpiece for robotics growth seeing several automated vehicle companies sprout from the team assembled by Carnegie Robotics. 

The focus on brownfield redevelopment for the burgeoning tech sector continues in Lawrenceville with the construction of the new $20 million Tech Forge Building.

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Pittsburgh rent evolution, click to enlarge

Pittsburgh’s multifamily market is a bit of a conundrum. Population has been almost flat for the past five years and supply mushroomed in 2016, leading rents to contract by 20 basis points. Yet the city has some positive economic signals, led by a growing white-collar job base.

Pittsburgh is in an ongoing transition from its blue-collar, industrial profile to a more diversified job market aiming at young, highly skilled workers. On one hand, the metro is bleeding lower-paid jobs and working-class households are being priced out of some core areas. On the other hand, Greater Downtown is thriving on this demographic shift, with highly paid Millennials taking advantage of the area’s job market, affordability and quality of life. The city benefits from a deep talent pool fueled by Carnegie Mellon, the University of Pittsburgh and several other institutions. Attracted by the large number of degree-holding young professionals, large tech companies—including Uber quite recently—have chosen to set up a base or expand Pittsburgh operations.

With more than 10,000 units in different stages of development, almost 2,300 of which are slated for completion in 2017, the pipeline is likely to cool off, but not by much. The record-breaking supply volume, together with the high affordability of owning and the city’s slowly declining population, have put a strong damper on rent growth. The damper won’t be let up, at least not in the short run.

Read the full Yardi Matrix report.

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350 Alvin Drive, New Kensington, Pa.

New Kensington, Pa.—Marcus & Millichap recently closed the sale of a 239,400-square-foot industrial property in New Kensington. The asset was acquired by Broadstone Real Estate LLC for $15.5 million.

The seller Kacin Co. was represented by Marcus & Millichap’s Senior Associate Donovan Mackey, Associate Mitchell Cowan an Mark Taylor, senior managing director of investments at the firms Philadelphia office. In addition, Donovan Mackey procured the buyer.

The industrial property is located at 350 Alvin Drive on 34 acres, along Pennsylvania Route 380. The building was completed in 2015 and designed as a fullfilment hub and distribution center for Leedworld Inc. Leedworld currently occupies the entire property, having a triple-net lease for a 14-year term. The property has 19 docks with custom levelers, as well as office space which can be expanded by an additional 260,600 square feet to a total of 500,000.

“Our targeted marketing campaign attracted a significant amount of interest from institutional investors and fueled a strong multiple-bid-offer process,” said Mackey in a prepared statement. “The process and final outcome fulfilled the expectations of everyone involved.”

Image courtesy of Marcus & Millichap

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Beaver Valley Mall, Monaca, Pa.

Pittsburgh and Beckley, W. Va.—PREIT has completed the sale of its two remaining non-core malls, Beaver Valley in Monaca, Pa., and Crossroads Mall in Beckley, W. Va., for a combined price of $49 million.

Beaver Valley, which is anchored by Boscov’s, JC Penney and Dick’s Sporting Goods, was sold for $24.2 million. Crossroads, anchored by Belk, Dick’s Sporting Goods, JC Penney and Sears, traded for $24.8 million.

Since 2013, the company has disposed of 16 lower productivity malls, as well as other non-core properties, generating $720 million in gross proceeds. The company has consolidated its operating footprint to core, highly populated markets, having exited smaller markets in West Virginia, Alabama, western Pennsylvania and Florida.

PREIT has also transformed its anchor store profile by reducing its count of certain department stores including Sears, going from 27 in 2012 to 10, and Macy’s, going from 24 in 2012 to 15 following the announcement of store closures.

“We continue to believe that quality retail properties will be a critical consumer touch point in the omni-channel retail environment. Our disposition and re-merchandising efforts put us well in front of the changing retail landscape culminating in a portfolio of properties that are extremely well-positioned in densely populated markets that is attractive to retailers,” said Joseph Coradino, CEO of PREIT, in prepared remarks.

Image courtesy of Google Street View

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Pittsburgh—After a highly acquisitive 2016, CBRE Global Investors kicks off the New Year by announcing the purchase of Liberty Center, a 529,300-square-foot office asset in Pittsburgh. A fund advised by the global real estate investment management firm snagged the 27-story tower, taking it off the hands of Starwood Capital Group.

Liberty Center

Liberty Center last changed hands as part of Starwood’s $135 million acquisition of the office building and the connecting 616-key Westin Convention Center Hotel in 2013, in a deal that priced the office segment at approximately $60 million. CBRE Global is remaining mum on the amount it paid for Liberty Center—sans hotel—but per a Pittsburgh Post-Gazette article, the price tag is thought to be roughly $98 million.

Sited at 1001 Liberty Ave. in the city’s central business district, Liberty Center, which also features 25,000 square feet of retail space, made its debut in 1987 and has since maintained its luster through a series of renovations. CBRE Global plans to continue the tradition of upgrading; the company will execute its proprietary 5-Star Worldwide service and amenity program at the property.

Per the Post-Gazette article, the purchase of Liberty Center marks CBRE Global’s first foray into Pittsburgh. But the firm is hardly alone in its newfound attraction to the city. According to a third quarter report by commercial real estate services firm CBRE Group, CBRE Global’s parent company, “The Pittsburgh office market experienced an inflow of institutional money from investors who typically target larger gateway markets like New York City, Washington, D.C., and San Francisco.” It’s a good time to own in Pittsburgh. As noted in the report, the average asking rate has been on the upswing for the last 15 quarters, and in the third quarter, it reached a record high of $22 per-square-foot across all property classes.

The Liberty Center acquisition comes on the heels of a particularly active quarter for CBRE Global. Among the firm’s plethora of purchases in the last three quarters of 2016 were a 45 percent stake in a $1.5 billion West Coast retail portfolio totaling 7 million square feet; the 394,000-square-foot California Plaza office property in metropolitan San Francisco; and the 2.3 million-square-foot Hillwood Portfolio, a group of logistics parks in Poland. Time will tell if the buying binge will continue in 2017.

Image courtesy of Yardi Matrix

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Re/Max Real Estate Solutions, 125 Hillvue Lane, Pittsburgh

Pittsburgh—Re/Max Real Estate Solutions announced its expansion with its second office location in the central business district of Beaver, Beaver County and its third office location in the Lawrenceville neighborhood in Pittsburgh.

The roughly 2,900-square-foot Beaver office on Third Street will be fully equipped with work stations allowing agents to work in a comfortable, collaborative environment. Located on the busy Butler Street, the 1,200-square-foot office in Lawrenceville is being built around a café concept with both private and shared work stations, allowing agents to stop by and work in an open environment.

“The Lawrenceville real estate market has been growing steadily and the area has quickly become one of the most desirable neighborhoods in Pittsburgh. It continues to offer a great opportunity for growth. There’s a real buzz in Lawrenceville,” Ben Hess, realtor & owner of Re/Max Real Estate Solutions, said in prepared remarks.

The Beaver office will be operational before the end of the year, with the Lawrenceville office following shortly after the new year. Grand Opening events are planned for both locations.

Image courtesy of Google Street View

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AC Hotel by Marriott Smallman

Pittsburgh—Concord Hospitality Enterprises Co. has revealed plans to open AC Hotel by Marriott Smallman, a new 133-key hotel in downtown Pittsburgh.

The project is being financed by S&T Bank and marks Concord’s 19^th hotel in the Pittsburgh market, although it’s the first AC Hotel by Marriott in the area.

“Recent development in the Pittsburgh area has spiked interest from outside investors and contributed heavily to the revitalization of downtown,” Mark Laport, Concord Hospitality co-founder, president & CEO, said in a prepared release. “AC Smallman enriches Concord’s vision to create irresistible places within vibrant communities, and we believe it will be very successful in Pittsburgh.”

The new hotel project will feature modern guest rooms; the AC LoungeSM; AC Kitchen, with European-inspired breakfast; bartenders with local expertise; WiFi everywhere; mobile check-in and check-out; and a 24-hour fitness center.

Concord Hospitality has partnered with Marriott International on the development of new hotel brands for the last two decades.

“AC Hotel by Marriott is an emerging lifestyle brand in the U.S. and appeals to design-conscious guests that also want an experiential stay when traveling,” Keith McGraw, a partner with Concord Hospitality, said in the release. “These travelers prefer urban and metro locations that provide easy, walkable access to arts and entertainment, restaurants, shops and galleries, as is the case with Pittsburgh’s popular Strip District.”

The hotel will be built next door to the restaurant Eleven and across the street from the David L. Lawrence Convention Center.

According to STR Global, occupancy rates and per-room revenue in the seven-county Pittsburgh region have dropped from a year ago, a period in which more than 2,000 rooms hit the market.

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Iron Mountain’s Pennsylvania data center

Pittsburgh—Iron Mountain Inc. recently announced the expansion of its underground data center campus in western Pennsylvania, located outside of Pittsburgh in Boyers, Pa., which will further enhance the physical security capabilities of the facility. State Senator Scott Hutchinson and Representative Tedd Nesbit joined Iron Mountain at the groundbreaking ceremony last week.

The expansion includes an additional 20,000 square feet of data center space and a new customer welcome center. It will feature three megawatts of move-in ready capacity built to support the requirements of Federal Agencies, Fortune 1000’s, as well as healthcare and financial services companies.

Located just outside the main underground facility, the new space will enhance security of customers’ shipments to the data center, such as servers and other hardware components, with RFID tracking added to the data center network operations. The welcome center’s amenities include conference rooms, office space, a lounge and kitchen, as well as an extended parking.

“For years Iron Mountain’s facility in Boyers has had a major impact on our local economy and it’s encouraging to see the company continue to make significant investments in our community,” said Sen. Hutchinson in a prepared statement. “I look forward to finding new ways that the Commonwealth of Pennsylvania can partner with Iron Mountain to promote job growth in our region.”

The 200-acre Iron Mountain campus is one of the most secure multi-tenant data centers in the region. Located more than 200 feet below the surface, the underground facility leverages geothermal cooling for optimal power usage effectiveness. By December 2016, the entire campus will feature 100 percent renewable power sourcing.

“Our customers appreciate the reliability gained operating 200 feet below the earth’s surface, sales tax incentives available from the Commonwealth and regulatory and security support that complies with the most exacting Federal and private sector requirements,” said Mark Kidd, senior vice president & general manager of Iron Mountain Data Centers.

Most recently, Iron Mountain broke ground on an 83-acre data center campus near Washington, D.C.

Photo courtesy of Iron Mountain

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Pittsburgh—HFF has arranged a $39.5 million refinancing loan for Village Square, a 392,497-square-foot, fully leased retail center in the Bethel Park area of Pittsburgh.

Office Depot at Village Square in Bethel Park

The firm worked on behalf of borrower Oxford Development Co. to place the 10-year, fixed-rate loan with Goldman Sachs & Co. HFF will service the securitized loan, proceeds of which were used to primarily pay off a maturing loan.

Village Square is situated on 31.4 acres at 4000 Oxford Drive, at the intersection of Fort Couch Road and U.S. Route 19, in the heart of South Hills, one of the city’s most densely populated and affluent areas. The two-story center is approximately 10 miles from downtown Pittsburgh. The property, built in 1982 and renovated in both 1997 and 2003, is anchored by Home Depot, Kohl’s, Burlington Coat Factory, Michael’s, Office Depot and Toys”R”Us. Other tenants include Half-Price Books, Sten’s Stride Rite Shoes, Famous Footwear and Avenues. The outparcel pads at Village Square are leased to Olive Garden, TGI Friday’s, Pennzoil and PA Wine & Spirits.

Claudia Steeb, managing director, along with John Pelusi, executive managing director, led the HFF debt placement team.

Oxford has been active in the South Hills area since 1962, when the company broke ground on South Hills Village Mall. Most recently, Oxford completed the $4 million renovation of the Crowne Plaza Hotel & Suites Pittsburgh South, a 179-key property located on Fort Couch Road, near South Hills Village.

Image courtesy of Office Depot

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Click on image to enlarge.

Pittsburgh’s multifamily market is a mixed bag, but improving on the whole. Although the metro’s population is declining, recent studies of U.S. census data show that the city has joined the national leaders in attracting degree-holding Millennials. Plus, there are positive economic trends, driven by job gains in the leisure and hospitality, education and health care, and professional and business services sectors.

Demand for apartments is sustained by young professionals, who are particularly drawn to the city because of its diverse career development opportunities, affordability and high standard of living. The quality education system is also attracting businesses that can easily recruit skilled talent, especially in the science, technology, engineering and math (STEM) fields. Uber, joining the growing list of tech companies headed to Pittsburgh, recently partnered with Carnegie Mellon University to develop an advanced robotics facility near the campus. Royal Dutch Shell is building a $6 billion petrochemical plant in Beaver County, which should help western Pennsylvania, a region affected by the struggling shale-gas industry.

Developers ramped up apartment deliveries in 2015, marking a peak in the current cycle. Upcoming supply is also significant, as more than 10,300 units are currently in the pipeline. Absorption is expected to keep up, making rents relatively stable by year end.

Read the full report.

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Perimeter Expo, Atlanta

New Hyde Park, N.Y.—Kimco Realty Corp. has gone from minority partner to sole owner of a 722,500-square-foot portfolio of grocery-anchored shopping centers with the acquisition of the remaining 85 percent joint venture stake in the four-property collection. The REIT wanted the open-air retail destinations all to itself, and shelled out $170.7 million for the privilege.

The transaction included the assumption of $103 million in mortgage debt, and concurrent with the portfolio purchase, Kimco prepaid $26 million in mortgage debt on the properties.

It’s a well-located assemblage that includes the 175,800-square-foot Perimeter Expo in Atlanta; the 166,500-square-foot Cranberry Commons in Pittsburgh; Cypress Towne Center, which offers 279,200 square feet in Houston; and Doc Stone Commons, a 101,000-square-foot suburban Washington, D.C., property in Stafford, Va.

The opportunity to take on full ownership of the shopping centers didn’t just present itself; Kimco pursued it. “As part of its portfolio simplification strategy initiated in 2013, Kimco has been actively reducing its joint venture exposure by streamlining property ownership and adding high-quality retail assets to its wholly owned portfolio,” David Bujnicki, senior vice president of investor relations and strategy with Kimco, told Commercial Property Executive.

Kimco’s strategy, or the 2020 Vision plan, also prompted the company’s recent non-joint venture acquisition of the 251,000-square-foot Kentlands Market Square just outside Washington, in Gaithersburg, Md., for $95 million.

By the close of the second quarter the REIT had decreased its joint venture site count by 72 percent since 2010.

In addition to adding the right properties, Kimco’s strategic plan involves letting go of the wrong properties—or those that don’t dovetail with the company’s goal. In April, the shopping center REIT sold its interests in a 1.8 million-square-foot, 17-center Canadian portfolio to Anthem Properties Group Ltd. in a $324 million deal.

Buy or sell, Kimco continues to hold the distinction of being the largest publicly traded owner and operator of open-air shopping centers in North America.

Image courtesy of Kimco Realty Corp.

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Pittsburgh—The Pittsburgh Planning Commission has approved the redevelopment proposal of the remaining steel mill building at the 178-acre Almono site in Hazelwood.

An aerial view of the 178-acre Almono site in Hazelwood.

The Regional Industrial Development Corp. of Southwestern Pennsylvania is planning to repurpose 65,000 square feet into flex space, the Pittsburgh Business Times reported.

The new structure, known as Mill 19, aims to attract tech and robotics firms. The project has an estimated cost of $20 million and represents the initial phase of a larger, three-phase redevelopment plan that totals 180,000 square feet.

RIDC plans to maintain the building’s original mill structure while adding contemporary features. Construction is expected to begin next spring. Tim White, a senior vice president for RIDC, told the newspaper that the company is moving forward with the project on a speculative basis, but expects to have lease commitments and full financing in place before the start of construction.

Almono is a mixed-use innovation district planned for the former LTV Steel site along the Monongahela River. The name Almono comes from the three Pittsburgh rivers—the Allegheny, Monongahela and Ohio.

The site has undergone the rezoning process and has been approved for $80 million in tax-increment financing, the largest in the city of Pittsburgh’s history. A massive site grading process was completed in 2014, and construction on infrastructure began in the fall of 2015. RIDC is managing the development efforts but hopes to attract private developers and individual companies to the site.

Earlier in the summer, RIDC broke ground on another innovative spec project in metro Pittsburgh. The Tech Forge is a 64,000-square-foot high-tech industrial building that could put Lawrenceville, Pa., on the map as a leading robotics hub.

Image courtesy of RIDC

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Pittsburgh—In advance of the cracker plant development on the banks of the Ohio River in Potter Township, Royal Dutch Shell has increased its real estate holdings in Beaver County. The oil and gas giant recently acquired a 110-acre portion of the Stoney Ridge site in Center Township, close to Beaver Valley Mall, as well as another parcel at 419 Frankfort Road in Potter Township, the Pittsburgh Business Times reported.

Shell is building a petrochemical plant in Pennsylvania

Shell confirmed its long-anticipated investment decision earlier in June, after more than four years of feasibility studies. In March 2012, the company signed a land option agreement with Horsehead Corp. to evaluate a 300-acre site near Monaca, close to the Conway Railyards and about 15 miles from the Pittsburgh International Airport, where it could build the project.

Construction will start in less than 18 months, with commercial production expected to begin early in the next decade. Once complete, the multimillion-dollar petrochemical plant would chemically “crack” ethane into ethylene, the raw material used to make plastics and other materials. The facility will use low-cost ethane from shale gas producers in the Marcellus and Utica basins to produce 1.6 million tons of polyethylene per year.

The facility’s location is expected to benefit North American polyethylene customers, 70 percent of which are located within a 700-mile radius of Pittsburgh. What’s more, the project will bring new growth and jobs to the region. Up to 6,000 construction workers are involved in building the plant, and the project is expected to create 600 permanent jobs upon completion.

The ripple effect from Shell’s announcement will also create an almost immediate need for additional commercial and residential real estate.

Joel Kreider, a director in the Pittsburgh office of Newmark Grubb Knight Frank, told the newspaper that Shell’s investment decision has already spurred interest in the Mon River Industrial Park, an 800,000-square-foot former steel plant on more than 400 acres in the Washington County community of Allenport. The complex features rail, truck and barge access along with ample utility infrastructure. Meanwhile, PREIT is currently marketing for sale the struggling Beaver Valley Mall, located only a mile and a half away from the cracker site.

Rendering courtesy of Royal Dutch Shell

The post How Will Shell’s Investment Decision Boost Beaver County? appeared first on Commercial Property Executive.

Washington Crown Center

Pittsburgh—PREIT has completed the sale of Washington Crown Center, a 676,136-square-foot regional retail center located in Washington, Pa., for $20 million. According to the Pittsburgh Business Times, the asset was acquired by New York-based mall owner Kohan Retail Investment Group.

Formerly known as the Franklin Mall, Washington Crown Center is located just outside the city of Washington and south of Pittsburgh. The center is anchored by Bon-Ton, Macy’s, Gander Mountain and Sears. According to PREIT, the asset generated sales per square foot of $313 and boasted non-anchor occupancy of 87.4 percent as of June 30, 2016.

“We remain committed to crafting a strong portfolio of assets that are well-positioned for the future,” Joseph Coradino, PREIT CEO, said in a statement. “This commitment has been evident in our disposition program as well as our remerchandising and redevelopment successes and has resulted in improved operating results including strong renewal spreads, margin improvement and same store NOI growth.”

PREIT is currently marketing the Beaver Valley Mall in Monaca, Pa., as part of the company’s continued portfolio optimization and capital allocation prioritization strategy. The Philadelphia-based REIT sold four more of its retail assets for roughly $92.4 million in April, as well as two downtown Philadelphia properties in June.

Image courtesy of Eddie Daniels via Google Maps

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The Tech Forge rendering

Pittsburgh—Regional Industrial Development Corp. continues its push to put Lawrenceville, Pa., on the map as a leading robotics hub with the groundbreaking for The Tech Forge, a 64,000-square-foot spec industrial project just a stone’s throw from Carnegie Robotics, a spinoff company of Carnegie Mellon University’s prestigious National Robotics Engineering Center in Pittsburgh.

The Tech Forge, the building of which is being spearheaded by general contractor Franjo Construction, will be a flex facility, featuring both high-bay and office space—but that’s not all. Designed by Desmone Architects, the green building will offer amenities not oft found at industrial properties, such as bike parking and a roof-top deck.

The demand for high-tech industrial space in metropolitan Pittsburgh is real. As noted in a recent report by commercial real estate services firm Avison Young, “Pittsburgh’s industrial market remains relatively stable despite changes in the traditional manufacturing sector and energy markets. While these changes have dealt a blow to US Steel, Allegheny Technologies, Range Resources and Consol Energy, the emergence of high-tech users, such as Uber and Carnegie Robotics, will continue to provide a high level of optimism beyond 2016.”

Indeed, optimism abounds. There’s a great deal of local support for the $20 million Tech Forge endeavor, and it shows in the numbers. With the assistance of financial advisor Rise Community Capital, RIDC secured $13 million of New Markets Tax Credit allocation from Mid-City Community CDE, Pittsburgh Urban Initiatives and U.S. Bancorp Community Development Corp. for the project.

The Tech Forge rendering

Tenants at The Tech Forge won’t be lonely; they’ll be surrounded by a bevy of robotics companies in the area, many of which make their home in facilities developed by RIDC. The firm began its pursuit of transforming Lawrenceville and environs into a tech cluster in 2002, when it acquired a 14-acre former steel manufacturing site and commenced the creation of the RIDC Lawrenceville Technology Center. More property acquisitions and redevelopments in metropolitan Pittsburgh followed, with RIDC previously or currently providing space for the likes of RedZone Robotics, vision guided vehicles developer Seegrid Corp. and Carnegie Robotics.

And there’s more to come from RIDC. Timothy White, a senior vice president with the company, told Commercial Property Executive that “RIDC is planning another tech-focused building in the Hazelwood section of Pittsburgh to accommodate additional robotics-related activities.”

The post Pittsburgh Developer Eyes Robotics Market appeared first on Commercial Property Executive.

Jeff Oravitz

Oravitz joined MetoKote in 2005 as vice president, and in 2011 he was elected president & CEO. Prior to his tenure at MetoKote, he worked at PPG for 20 years in a variety of roles in several coatings businesses.

Oravitz will manage the PPG coatings services group, with more than 1,500 employees globally, from the PPG-MetoKote headquarters in Lima, Ohio. PPG-MetoKote applies coatings to customers’ manufactured parts and assembled products, providing coatings services on site within customer manufacturing locations as well as at regional service centers throughout North America and Europe.

The company is headquartered in Pittsburgh and operates in more than 70 countries, with reported net sales of $15.3 billion in 2015. PPG serves customers in construction, consumer products, industrial and transportation markets and aftermarkets.

Image courtesy of PPG

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Pittsburgh–Nova Place, Faros Properties’ 1.5 million-square-foot office redevelopment project in Pittsburgh, received the Wired Certified Platinum Rating by WiredScore, becoming the only building in the city with this designation.

Nova Place in Pittsburgh

Through the Wired Certification international program, WiredScore evaluates a building’s connectivity by examining the number and quality of internet service providers as well as the bandwidth capabilities and reliability of connections that are based on the building’s infrastructure. The standard is similar to LEED certification for energy efficiency and environmental sustainability.

Wired Certified Platinum is the highest rating possible, confirming that Nova Place is best-in-class across all features of internet connectivity, telecom infrastructure, ease of installation and capacity to support new telecom services.

Nova Place is located at 100 South Commons, just minutes from downtown Pittsburgh. The project is a redevelopment of the 1960s-era Allegheny Center, which Faros purchased in 2015 with the help of a $54.7 million loan orchestrated by HFF. Confluence will soon relocate its headquarters here, joining companies such as Innovation Works, La Prima, Matrix Solutions, PNC, Bank of America, Expedient and Alloy 26.

“Our commitment to technology and connectivity is demonstrated through Nova Place’s superior infrastructure, and our newly coveted Platinum-level Wired Certification defines Nova Place as a leader in Pittsburgh,” Brad Ott, Faros Properties vice president of commercial operations, said in prepared remarks.

“We’re living in a digital age, so naturally one of the biggest challenges for companies seeking new office space is finding a location that has ample connectivity. Companies must thoughtfully evaluate their options and knowing that Nova Place is Platinum-level Certified, makes it a top choice for companies in the region,” added Elliot Gould, managing partner at Faros Properties.

Images courtesy of Faros Properties

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Pittsburgh–HFF has secured a $70 million permanent loan for the McCandless Crossing town center located in McCandless, a northern suburb of Pittsburgh.

HomeGoods at McCandless Crossing

The firm placed a 10-year, fixed-rate loan with Nationwide Life Insurance Co., working on behalf of the developer, AdVenture Development, and the borrower, a joint venture between Adventure/Champion Partnership and AdVenture Phase IV LP.

The more than 350,000-square-foot town center is part of a 130-acre mixed-use development that began construction in 2009 and was delivered in phases.

The retail component is anchored by Lowe’s Home Improvement, Dick’s Sporting Goods, HomeGoods, Trader Joe’s, CVS and Old Navy. A separate portion of the property, which was not included in the loan, features LA Fitness, a 12-screen Cinemark, Home2 Suites by Hilton and a residential development, all of which were sold off by the AdVenture/Champion partnership.

McCandless Crossing is situated at the signalized intersection of McKnight Road and Duncan Avenue, along a 4-mile stretch of McKnight Road, the main commercial and commuter highway traversing the North Hills area of Pittsburgh and accommodating more than 50,000 vehicles per day. The property offers easy access to Interstate 279 and is located in the heart of one of Pittsburgh’s most affluent suburbs.

David Nackoul, senior managing director, and Nat Scarmazzi, associate director, led the HFF debt placement team representing the owner.

“This financing culminates many years of hard work by AdVenture Development to bring a unique, best-in-class retail project to Pittsburgh,” Scarmazzi said in prepared remarks. “Nationwide Life Insurance Company was instrumental in developing a creative way to secure financing that met the borrower’s long-term vision for the property. The HFF team is privileged to have the opportunity play a part in bringing such an exciting project to the Pittsburgh area.”

Image courtesy of AdVenture Development

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Pittsburgh–Shorenstein Properties, the new owner of One Oxford Centre in Pittsburgh, is asking $34 per square foot for the building’s office space. This amount marks the highest asking rent price for the city’s downtown–colloquially referred to as the Golden Triangle–which might cause a ripple effect throughout the area, the Pittsburgh Post-Gazette reported.

One Oxford Centre in Pittsburgh

Downtown Pittsburgh average asking rates for Class A office space currently range from $27.70 to $29.17 per square foot. Even the office space in the newly opened Tower Two Sixty near Market Square, which goes from $30.50 to $32 per square foot, isn’t as expensive as the 45-story skyscraper at 301 Grant St.

The San Francisco-based company acquired One Oxford Centre in January, with plans to renovate the property. According to Jeremy Kronman, the CBRE executive vice president who is leasing space for Shorenstein at Oxford Centre, the asking rent is right on the money, given the level of investment the company intends to make.

“While it may be one of the most expensive in Pittsburgh, it will be one of the least expensive trophy renovated properties in the country,” Kronman told the newspaper.

One Oxford Centre, which ranks as the third tallest building in the Golden Triangle, was built in 1983. The 1.1 million-square-foot high-rise includes 879,000 square feet of Class A office space, 59,000 square feet of retail and a separate eight-story garage with 840 parking spaces.

Some observers of the market, however, remain skeptical about the possibility of a rent hike in the tight downtown office market, citing the fact that more space is opening up. Such is the case of U.S. Steel Tower or 525 William Penn Place, where BNY Mellon is vacating about 600,000 square feet. Meanwhile, the renovated Union Trust Building also has large portions of vacant space.

Shorenstein is currently in the process of selecting an architect for the One Oxford Centre renovation, which reportedly amounts to $50 million. The property is set to get the “absolute latest and greatest” in terms of improvements, Kronman said. “No other tower has undergone this level of renovation,” he added.

If the California firm is able to entice tenants to commit to the $34 per square foot asking price, rents in other Class A, and even B and C, properties could also go up in downtown Pittsburgh.

Image courtesy of Shorenstein Properties

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Pittsburgh–Asset management software firm Confluence has signed a lease with New York-based Faros Properties to relocate its global headquarters to Nova Place, a 1.5 million-square-foot office complex on the city’s North Side that ranks as one of the largest urban redevelopment projects in the Pittsburgh region.

Interior at Nova Place in Pittsburgh

Confluence is planning to move from its smaller location on River Avenue to the new 40,000-square-foot space at Nova Place in 2017. The tech firm’s new office will comprise two floors connected by a central staircase, with open floorplans surrounded by floor-to-ceiling windows with panoramic views of the city.

Located at 100 South Commons, Nova Place is a redevelopment of the 1960s-era Allegheny Center, which Faros purchased last year with the help of a $54.7 million loan orchestrated by HFF.

Confluence now joins a list of newly signed tenants, as well as long-standing anchors including Innovation Works, La Prima, Matrix Solutions, PNC, Bank of America and Expedient, in addition to Alloy 26, a highly anticipated co-working venture within the center.

Set to become the largest tech incubator in western Pennsylvania, Nova Place is located just minutes from downtown and all major throughways, granting its tenants easy access to destinations city-wide. Amenities include a 3,000-car parking garage, forthcoming 10,000-square-foot fitness center and an onsite auditorium equipped with the latest technology.

“The Pittsburgh office market has really responded to this type of product, as has the business community,” CBRE, the project’s leasing agent, commented in prepared remarks. “With this and the other new leases at Nova Place, the project is already at 75 percent leased and climbing! The reception by the tech and corporate community to this world-class project has been unbelievable.”

Over the past three years, Faros Properties has invested over a quarter of a billion dollars into the region. In 2014, the company also bought the 810-unit residential component of Allegheny Center, which it renamed Park View.

Headquartered in Pittsburgh, Confluence serves the international fund industry with locations in Brussels, Dublin, Ho Chi Minh City, London, Luxembourg and San Francisco. The company was launched in the early 1990s by its current CEO Mark Evans.

“Our move to Nova Place is a testament to our commitment to Pittsburgh as a great location for our headquarters as we continue to grow globally,” Evans stated. “The vision of Nova Place aligns with our culture of innovation and the property design and amenities underscore the value we place on engaging employees and inspiring collaboration at all levels of the company.”

 Images courtesy of Faros Properties

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Pittsburgh–Hampton by Hilton has announced the opening of the Hampton Inn Pittsburgh/Wexford-Sewickley, an 88-key hotel situated in the Pittsburgh suburb of Wexford.

Guestroom at Hampton Inn Pittsburgh Wexford-Sewickley

Azrof Properties Inc. is managing the hotel, which is located at 2622 Wexford Bayne, only a few minutes from downtown Pittsburgh. Nearby attractions include Soergel Orchards, North Park, Heinz Field and the National Aviary.

Guests have access to a variety of amenities, such as free Wi-Fi, a 24-hour business center with complimentary printing, 525 square feet of meeting space that can accommodate up to 50 people and a fitness center.

The hotel provides a complimentary hot breakfast as well as Hampton’s On the Run Breakfast Bags, which contain energy bars, muffins, apples, water and mints. Each guestroom offers an LCD TV, microwave, mini-refrigerator and a Cuisinart coffeemaker. Guests here benefit from the 100 percent Hampton Guarantee, meaning that they don’t pay unless they are satisfied with their stay.

The new Hampton Inn also features the Perfect Mix Lobby, designed as an extension of the guest room with seating and lighting options for both leisure and business travelers. This area includes the Suite Shop, a food and beverage shop filled with snacks, toiletries, local merchandise and drinks for purchase.

Image courtesy of Hampton Inn Pittsburgh/Wexford-Sewickley

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Pittsburgh–A new Hilton Garden Inn officially opened in the dynamic downtown Pittsburgh hotel market on March 2.

Lobby at Hilton Garden Inn Pittsburgh Downtown

The 197-key property is owned by Millcraft Investments and managed by the company’s hotel division, Millcraft Hospitality.

Designed to achieve LEED silver certification, Hilton Garden Inn Pittsburgh Downtown is part of Millcraft’s Tower Two-Sixty mixed-use project in the heart of Market Square, a major hub of all downtown activity.

Formerly known as The Gardens at Market Square, the $108 million development also includes about 130,000 square feet of class A office space anchored by JLL, structured parking with 330 spaces, as well as restaurants and retail space. The entire project has been about 10 years in the making.

The new hotel is close to prominent attractions, including Heinz Field, Carnegie Science Center, PNC Park and The Andy Warhol Museum. Guests can dine on-site at Revel + Roost, which offers made-to-order breakfast, dinner, cocktails and evening room service. There is also the Pavilion Pantry, which is open 24 hours and offers salty snacks, sweet treats, cold beverages and microwaveable packaged items.

The property also features more than 2,000 square feet of flexible meeting space. Other amenities include complimentary Wi-Fi, a 24-hour business center with remote printing and a fitness center. All guestrooms boast an in-room hospitality center with mini fridge, microwave and Keurig coffee maker, a spacious and clutter-free work desk with an ergonomic chair.

Image courtesy of Millcraft Investments

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Mehmet Akinci

Akinci joins Dino Persichetti, vice president of building construction, in growing the Skanska presence in this region. Together they will pursue opportunities in the healthcare, life sciences, education, infrastructure, and power and industrial market sectors.

A Pittsburgh resident and industry veteran, Akinci brings more than 20 years of diverse experience in infrastructure construction. Prior to Skanska, he spent 14 years working as a general manager and project executive with Trumbull Construction, where he oversaw and managed projects in Pennsylvania and West Virginia. Akinci also brings global experience to Skanska, having worked in Turkey, Cypress, the United Kingdom and various cities in the United States. Akinci has an MBA from Carnegie Mellon and a Bachelor of Science in Civil Engineering from Middle East Technical University, Ankara, Turkey.

“The Pittsburgh construction market is seeing a resurgence in infrastructure projects, particularly new highway construction, water treatment facilities and power plants,” Mike Viggiano, executive vice president overseeing Skanska’s civil infrastructure work in the Northeast, said in prepared remarks. “Mehmet’s extensive national and international experience, paired with his local contacts and market expertise, will help us grow in this region.”

Skanska’s roots in Pennsylvania date back to 1913. The company built the Nicholas and Athena Karabots Pavilion at The Franklin Institute science museum in Philadelphia, which now houses an expanded education center and gallery space. Other projects in the Pennsylvania and the Delaware Valley region include an expansion of the existing Nemours/Alfred I. duPont Hospital for Children in Wilmington, Del.; as well as the Indian River Inlet Bridge project in Sussex County, Del.,–a three-span cable-stayed bridge–featuring a pedestrian walkway with the ability to withstand a Category 5 hurricane. Skanska also expanded Terminal A at Philadelphia International Airport and renovated the University of Delaware Harrington Residence Hall in Newark, Del.

Image courtesy of Skanska USA

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Pittsburgh–A new extended-stay hotel with a “home-like feel” will soon rise on a 2.3-acre site on Wisconsin Avenue in Cranberry Township. The property will open in the fourth quarter of 2016 under a mid-priced prototype brand recently launched by WoodSpring Hotels, operators of the WoodSpring Suites and Value Place brands.

WoodSpring Suites Signature Broken Arrow

The company’s new WoodSpring Suites Signature offering will differentiate itself by providing an enhanced guest experience, including additional amenities and services not found in the current WoodSpring Suites properties.

According to Bruce Haase, WoodSpring Hotels’ CEO, rates for this lower-midscale hotel will be approximately 20 percent above a standard WoodSpring Suites, typically $300 to $400 per week, depending on the market.

“Our commitment to the extended stay segment remains as high as ever, evidenced by the fact that we continue to franchise as well as aggressively develop new properties on our own behalf,” added Haase. “We expect to break ground on over 40 hotels in 2016, a quarter of which will be corporate owned and managed. In addition, we expect to break ground on more than 50 hotels in 2017, bringing us to nearly 100 newly-built hotels in two years.”

The new Cranberry location at 102 Wisconsin Ave., will bring a four-story, 45,052-square-foot hotel with 124 guestrooms and a residential-style exterior design. Amenities will include a large lobby, convenience store, fitness center, 24-hour laundry facilities, in-room dishwashers, quartz countertops in the kitchen and bathroom, staff training room and optional meeting space.

A similar property—WoodSpring Suites Signature Broken Arrow (pictured)—recently opened about 10 miles from downtown Tulsa and four miles from downtown Broken Arrow.

WoodSpring Hotels will be using its Signature prototype brand for a total of eight properties currently in the pipeline. Besides Cranberry (Pittsburgh), the company’s upcoming hotels will be located in Saugus (Boston), Mass. (which has a spring 2017 opening date), as well as in the greater Houston and Seattle markets.

Construction cost for the new prototype ranges from $50,000 to $55,000 per key, excluding land.

Image courtesy of WoodSpring Hotels

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One Oxford Centre in Pittsburgh

HFF marketed the 1.1 million-square-foot property on behalf of the seller, Oxford Development Co. The purchase price is believed to be about $149 million, or approximately $135 per square foot, the Pittsburgh Post-Gazette reported. HFF also worked on behalf of the new owner to place an acquisition loan with Helaba and CIBC Capital Markets.

Built in 1983, One Oxford includes 879,000 square feet of Class A office space, 59,000 square feet of retail and a separate eight-story garage with 840 parking spaces.

The building, which also features the Rivers Club—a 73,000-square-foot fitness, dining and social club—is currently 81 percent leased. TriState Capital Holdings, BPU Investment Management, HFF and the law firms of Buchan Ingersoll & Rooney and Clark Hill PLC are among the property’s tenants. The skyscraper also serves as the headquarters for Oxford Development.

Shorenstein is now planning to renovate the building, which has been designed by Hellmuth, Obata & Kassabaum. The project will include mechanical and building systems upgrades, as well as lobby and common areas improvements.

This transaction marks the company’s first acquisition in Pittsburgh.

John Pelusi, Jr. led the HFF investment sales team as executive managing director, along with Mark Popovich, senior managing director. Pelusi and Popovich also led the HFF debt placement team, along with Mike Tepedino, executive managing director.

“HFF has been involved with the capitalization of One Oxford Centre since its construction in 1983,” Pelusi said in prepared remarks. “It is only fitting that Shorenstein, a nationally renowned and prolific office owner with 25 million square feet under ownership, is acquiring this landmark, Class A office building, which was the vision of Ed Lewis of Oxford Development Co.”

Shorenstein is making the acquisition through Shorenstein Realty Investors Eleven, a $1.22 billion commingled fund formed in 2014. The company was founded by late real estate developer and investor Walter Shorenstein. Shorenstein was an adviser to Presidents Lyndon B. Johnson, Jimmy Carter, and Bill Clinton.

Image courtesy of Oxford Development Co.

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Pittsburgh–The city’s top-notch talent pool has attracted yet another tech giant. After Google, Uber and most recently Apple, Facebook is now planning to set up a presence in Pittsburgh.

Sign outside Facebook HQ main entrance at Menlo Park

The company’s new office in the Steel City will be located at Schenley Place in Oakland and will be dedicated to an Oculus virtual reality research center, as previously reported by the VentureBeat.

Since the operation will initially focus on computer vision, Facebook is looking to fill in positions for a computer vision researcher, a computer vision engineer, and a postdoctoral research scientist focusing on computer vision.

Facebook acquired Oculus for $2 billion in spring 2014. Famous for its high-end hardware and software for virtual reality, the company has recently begun preorders for the first consumer version of Oculus Rift, a VR headset valued at $599, while the Samsung Gear VR went on sale last year for $99.

Seen as the backyard of Carnegie Mellon University, Pittsburgh is currently emerging as a major world force in the fields of artificial intelligence and robotics. Last fall, for instance, on-demand car service Uber announced a $5.5 million grant for the creation of a new faculty chair and three new fellowships in robotics at Carnegie Mellon. The new tech center will support the company’s efforts to develop self-driving cars.

Apple, which maintains a presence at the Collaborative Innovation Center on the campus, has also recently expanded in the city. Just last year, the company leased 26,000 square feet at Oxford Development’s Three Crossings mixed-use complex in the Strip District, an area known for its emerging tech and start-up economy.

Image courtesy of Facebook

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Pittsburgh—German technology company Robert Bosch LLC will nearly double its footprint in the region with the opening of a 51,667-square-foot technology center in Pittsburgh in July 2016.

3 Crossings at 2555 Smallman St. in Pittsburgh

The company has signed a seven-year lease to occupy a three-story, 77,501-square-foot building now under construction at 2555 Smallman St. The upcoming facility is part of Oxford Development’s 3 Crossings complex in the Strip District, an area known for its emerging tech and start-up economy.

The new office, which will consolidate many Bosch associates in the region into a single location, will initially house about 140 employees. The development of this center was driven by the need to accommodate the growth of the company’s business units, including Bosch’s subsidiary Akustica, a world leader in microelectromechanical systems (MEMS) microphone products, and Bosch’s Research and Technology Center in Pittsburgh.

“Bosch is experiencing continued, significant growth in many regions, and this is especially true in Pittsburgh,” said Mike Mansuetti, president of Robert Bosch. “We have been in this area for many years and have formed many successful collaborations with other companies and organizations, like Carnegie Mellon University. We look forward to continuing our presence in such an exciting, tech-focused part of the region, and adding to its growing reputation as a hub for innovation.”

According to Oxford Development, the 16-acre 3 Crossings mixed-use development ranks as one of the largest redevelopment projects in the region and provides a place for companies to think differently about the way they do business.

“This state-of-the-art facility will provide our researchers and engineers with a world-class working environment tailored specifically to their needs,” added Jiri Marek, senior vice president, Bosch Research and Technology Center, North America. “This investment highlights Bosch’s commitment to attracting top talent from the Pittsburgh region and beyond to support our mission to create the next-generation of solutions for a connected life.”

Bosch has recently donated $2.5 million to nearby Carnegie Mellon University to create the Bosch Distinguished Chair in Security and Private Technologies. The company is also working with CMU to create a “smart campus” using intelligent buildings and spaces that provide improved efficiency and enhanced experiences for the campus community.

Image courtesy of Oxford Development

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Pittsburgh—Hanna Commercial Real Estate has acquired Kelly & Visconsi Associates LLC, a Cleveland-based real estate firm that represents big-box retailers, smaller stores and restaurants. The transaction marks Hanna Commercial’s fourth acquisition of a commercial broker in 18 months.

Howard W. “Hoby” Hanna, IV, Great Lakes Region President

Kelly & Visconsi focuses on providing representation for retailers interested in expanding in the Northern Ohio market and for landlords seeking to lease their commercial retail properties. Some of the company’s clients include Costco, Dunkin’ Donuts, Macy’s, Meijer, Pet People, Save A Lot, Sherwin Williams, Target, Ulta, and many more. The firm is also a longtime member of Chain Links Retail Advisors, a national network for retail brokerage.

Hanna Commercial focuses on office buildings, industrial properties, shopping centers, auctions and corporate services for Howard Hanna, a Pittsburgh-based real estate giant that has its regional headquarters in Mayfield Heights.

With a group of 130+ professionals, Hanna Commercial is considered to be the largest commercial broker in Northeast Ohio. In Ohio and Pennsylvania, the firm has listed more than 480 units with a written volume of $432 million and a listing volume of $321 million. The addition of the team at Kelly & Visconsi will help expand these numbers as well as the retail side of the business, allowing Hanna Commercial to begin 2016 with a more comprehensive and dynamic focus.

According to Howard “Hoby” Hanna, IV, president of Howard Hanna’s Great Lakes region, the combination of the largest commercial broker in the region with the expertise, integrity and dedication of Kelly & Visconsi spells growth and success in the coming year for the Ohio commercial landscape.

“We made a commitment to the Ohio marketplace back in 2013 with our desire to expand our commercial service operations,” he added. “Since then we’ve grown exponentially; this is our fourth acquisition of a commercial broker in 18 months since creating that vision. The team at Kelly & Visconsi are a welcome addition to Hanna Commercial. We are so pleased that we are now in the position to offer the best in commercial real estate throughout Ohio, nationally and even internationally.”

Image courtesy of Hanna Commercial Real Estate

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Washington, Pa.–Wyomissing-based Gaming and Leisure Properties Inc. (GLPI), a REIT that spun off from Penn National Gaming, has agreed to pay $440 million to acquire The Meadows Racetrack and Casino in Washington, Pa., from Las Vegas-based Cannery Casino Resorts (CCR).

The Meadows Racetrack & Casino

The deal, inclusive of $10 million previously paid, requires a final approval from the Pennsylvania Gaming Control Board and the Pennsylvania Harness Racing Commission and is expected to close in the second half of 2016.

This transaction settles a series of lawsuits between the two companies following a previous purchase agreement in 2014. The original sale price for the gambling venue was $465 million. This amount, according to the Pittsburgh Business Times, was called into question in October 2014 when GLPI filed a lawsuit against Cannery, claiming it was misled in regards to the property’s performance. Cannery denied the allegations and countersued.

The 180,000-square-foot North Strabane casino, which opened in 2007, contains 3,172 slot machines, 74 table games and 14 poker tables. The Meadows also includes 11 casual and fine dining restaurants, bars and lounges, a 24-lane bowling alley and a racetrack with a 500-seat grandstand. Adjacent to the casino, there is a 154-key hotel that opened in April 2015 under the ownership and management of a third-party operator.

“We are pleased to resolve the Cannery litigation in a manner that we believe is positive for both companies.  The amended agreement allows us to add The Meadows to our growing portfolio of high-quality regional gaming assets at a price that is reflective of current property performance. The property has enjoyed improving performance in the second half of 2015 and we look forward to partnering with one of the many quality operators in the gaming industry to continue that momentum,” said Peter Carlino, chairman & CEO of GLPI.

“This resolution is a good outcome for CCR shareholders.  All of the net sale proceeds will be used to reduce our debt and better position us for the future.  We are now focused on working with GLPI to ensure a smooth transition for our team members and customers,” added William Paulos, Co-CEO of CCR.

GLPI is now seeking a third-party operator for the venue, which will hold the licenses and operating assets, while GLPI will retain ownership of the land and buildings.

Image courtesy of The Meadows Racetrack and Casino

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A new owner has emerged for the DoubleTree by Hilton Pittsburgh, a 460-key hotel located along the Parkway West in Green Tree that ranks as the metro’s fourth-largest lodging facility.

DoubleTree by Hilton Pittsburgh in Green Tree, Pa.

California-based Laurus Corp. has recently purchased the full-service property for an undisclosed amount, with plans to invest another $7 million into its refurbishment and also add an Asado Grill restaurant.

Previous owner RIDA Development Corp. recently invested $20 million into extensive renovations at the hotel, which it completed about two years ago.

DoubleTree Green Tree is also the largest Pittsburgh hotel within the Hilton family of brands, with a prominent position as an anchor lodging facility for city-wide conventions and events. The property features nearly 40,000 square feet of flexible, multi-functional meeting space–one of the largest concentrations of space in the region–as well as a 13,000 square-foot indoor athletic training center, which draws professional and college sports teams participating in regional events. The property’s new management team is TPG Hospitality.

The motivating factors that prompted Laurus to buy the property pertain to Pittsburgh’s vibrant economy, which outperforms both the United States as a whole and several key benchmark cities. Beyond its historic strengths in advanced manufacturing, the region has emerged as a hub for financial and business services, healthcare and life sciences, education and information, as well as communications technology. Recognized as a new center of American energy, Pittsburgh is also significant in terms of natural gas production, which will continue to expand in the foreseeable future.

“Based on the sheer strength of the local employment market, which draws hundreds of thousands of business travelers to the area every year, our team had flagged Pittsburgh as an absolutely essential region for Laurus to delve into in 2015,” Jean Paul Szita, president of Laurus Corp. said in prepared remarks. “After carefully examining the inventory in the market, we are tremendously pleased with our purchase of the DoubleTree Green Tree. Extremely well-located, we believe our investors will agree there is incredible upside potential for this recently renovated and high quality property that expertly serves the true drivers of the hospitality market–corporate business, conferences and weddings.”

DoubleTree Green Tree marks Laurus’ second acquisition in the Pittsburgh area. The team also acquired an office building at 501 Technology Drive in 2012.

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HFFhas announced the sale of Park Place Corporate Center I and II, two Class A office buildings totaling 212,328 square feet located in suburban Pittsburgh.

Park Place Corporate Center I

USAA Real Estate sold the property to an affiliate of Pearson Partners for an undisclosed amount.

The HFF investment sales team representing the seller was led by senior managing director Mark Popovich. The brokerage firm also procured the buyer.

The buildings are located at 1000 and 2000 Commerce Drive along the Parkway West (I-376), about 10 miles from Pittsburgh’s central business district and five miles from the Pittsburgh International Airport. Both facilities are LEED Gold certified and were fully renovated in 2012, when two, 300-space parking garages were added.

Park Place Corporate Center is currently 95 percent leased to six tenants—Park Place II is completely occupied by Williams Field Services Group LLC, while Park Place I is a multi-tenant building.

Image via HFF

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A new Hyatt Centric luxury hotel slated to rise in the heart of the city’s Oakland neighborhood could guarantee the survival of the iconic Pittsburgh Athletic Association, which dates back to 1908.

According to the Pittsburgh Tribune-Review, North Carolina-based Concord Hospitality is planning the construction of a $30 million development on a 28,000-square-foot parking lot behind the Fifth Avenue club, across Bigelow Boulevard from the Soldiers & Sailors Memorial Hall & Museum.

Concord Hospitality intends to lease the land from the Pittsburgh Athletic Association for 99 years. The agreement would bring a much-needed financial support to the organization, ensuring its long-term operation.

The 10-story, 168-key project is in fact the scaled-back version of Concord’s initial proposal, which called for the construction of an 11-story hotel with 190 rooms and an investment of $45 million. This plan was eventually redesigned in response to the community’s demands.

Meanwhile, the structure’s overall square footage has been reduced from 191,000 square feet to 173,000 square feet. PFVS Architecture of Atlanta is the project’s designer.

Pending further approvals, construction on Concord’s new hotel could begin next spring and wrap up in 18 to 20 months. Upon completion, the property will operate under the luxurious Hyatt Centric flag. Amenities will include a top-floor lobby and terrace with views of Oakland as well as restaurants, space for a coffee shop and meeting rooms.

Photo credits: PFVS Architecture

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A New York company specializing in the adaptive reuse of historic buildings has acquired the former Career Connections Charter School in the Pittsburgh’s Lawrenceville business district, with plans to turn the 40,000-square-foot structure into an apartment building of between 12 and 16 units.

Career Connections Charter School – 4412 Butler St. – Pittsburgh

According to the Pittsburgh Business Times, Crow Hill Development purchased the property located at 4412 Butler St. from the Boys & Girls Club of Western Pennsylvania. The organization operated the school until 2014 .

Pete Licastro of Point Bridge Realty Advisors LLC represented Crow Hill in the transaction. The four-story redbrick building sold for a reported $762,000. This is slightly less than its $800,000 asking price from two years ago, when the property hit the market. The building, which dates back to 1912, was originally a YMCA designed by local architect Robert Trimble, who also designed the Taylor Allderdice High School in Pittsburgh.

Brooklyn-based Crow Hill Development is led by England native and former software developer Fabian Friedland, who has spent the last 20 years working in real estate development and investment. Friedland estimates that once approvals have been obtained, which may take about four months, the conversion could be complete in about 18 months.

Earlier in this year, Crow Hill acquired another Pittsburgh property, the fully leased 45,900-square-foot Stone Quarry Crossing on Camp Horne Road in Ohio Township. Don Cella’s Five Mile Development Group sold the office building for $7.85 million.

Image via Google Street View

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The Pittsburgh Planning Commission approved the construction of a new purpose-built, living and learning Campus Advantage student housing complex in the city’s Oakland neighborhood. Construction is set to begin next February and be completed by the fall of 2017.

According to the Pittsburgh Business Times, the new 13-story apartment building on Forbes Avenue will include 138 units and 295 beds at an all-in price of about $1,000 per resident. This amount will cover cable service and utilities in fully furnished apartments geared toward college students. There will also be one story of retail space and two levels of parking.

Designed by Desmone Architects, the approximately $25 million project is a first in Pittsburgh for the Texas-based national student housing company.

The building will be located at 3407 Forbes Avenue, in proximity of the University of Pittsburgh and Carnegie Mellon, and could serve students of both schools. Location however will not be the only benefit for residents living here.

Through the award-winning Students First program, Campus Advantage will seek to provide career and life skills preparation for students, as well as community volunteering opportunities, and webinars on topics such as preparing a resume and building a skill set.

As part of their lease, students here must agree to follow local and community laws and ordinances, including a policy forbidding the use of illegal drugs, and obtain parents’ signatures on an agreement promising to pay the rent and guaranteeing financial obligations for potential property damages.

Photo credits: Campus Advantage

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