Chatham Lodging Trust to Acquire Pittsburgh Hyatt Place for $40M12 Jun 2013, 9:10 pm
Chatham Lodging Trust has agreed to purchase the 178-room Hyatt Place Pittsburgh/North Shore near downtown Pittsburgh for $40 million. Scheduled for completion by June 17, the transaction is subject to customary closing requirements and conditions.
The property will be managed by Island Hospitality Management, which is 90 percent owned by Jeffrey H. Fisher, Chatham’s chairman, president and CEO.
Open since December 2010, the Pittsburgh Hyatt Place offers easy access to some of the city’s popular attractions including PNC Park, the Carnegie Science Center, the Andy Warhol Museum, the National Aviary and the Rivers Casino. The hotel is also proximate to Fortune 500 employers such as Alcoa, Del Monte Foods, PNC Financial, U.S. Steel and Heinz.
Chatham Lodging Trust of Palm Beach, Fla. is a real estate investment trust that focuses on investing in upscale extended-stay hotels and premium branded select-service properties. Nationwide, the company owns interests in 72 hotels acquired for approximately $1.5 billion.
In regional news, the Pittsburgh Business Times reports that Gerome Manufacturing is building a 150,000-square-foot plant on more than 10 acres in the Fayette Business Park in Smithfield.
Expected to become fully operational by next spring, the new facility will enable the company to consolidate two nearby operations in Uniontown and Lemont Furnace into a single location. The approximately $9 million investment ranks among the region’s largest industrial projects this year.
“The new facility will house almost $2 million worth of new finishing equipment and plans for future purchases of new, cutting-edge equipment have already begun,” Joe Putila, president of Gerome, told the newspaper.
For the past several years, Gerome has collaborated with the Fay-Penn Economic Development Council to determine the best location for the development and obtain financing. Other partners in the project include the Washington County Industrial Development Authority, the Pennsylvania Department of Community & Economic Development and Washington Financial Bank.
Photo credits: pittsburghnorthshore.place.hyatt.com
Historic Koppers Building in Downtown Pittsburgh for Sale5 Jun 2013, 8:40 pm
The Koppers Building, one of the finest Art Deco office towers in the Pittsburgh region, has been listed for sale.
According to the Pittsburgh Business Times, Gerry Dudley and Ryan Sciullo of the local office of CBRE are marketing the building, which offers more than 350,000 square feet of space.
Located at the corner of Grant Street and Seventh Avenue in the heart of the city’s downtown, the 34-story skyscraper has an occupancy rate of 69.4 percent. The building is anchored by construction materials company Koppers Inc., which has a long-term lease for the space. Other tenants include the Allegheny County Bar Association, Howard Hanna Commercial Real Estate Services, Bank of America, as well as law firm Horovitz, Rudoy & Rateman LLC.
Built in 1929 and designed by Chicago architecture firm Graham, Anderson, Probst and White, the high-rise is currently owned by Koppers Building Holdings Inc. of Radnor, PA. The company purchased the tower in 1997 for $13.2 million.
In other news, developer a.m. Rodriguez Associates is repurposing the former Prospect Middle School in Mount Washington into 67 market rate apartments. The company has partnered with Sota Construction Services to renovate the historic “Art Deco” property.
The Pittsburgh Post-Gazette reports that the developer has recently purchased the building from The Mount Washington Community Development Corporation.
Called The Lofts on Mount Washington, the approximately $14 million project will offer residential units in 16 styles, ranging in size from 800 to 2,000 square feet. Plans also call for a grand auditorium entrance, an 11,000 square foot fitness facility in one of the gyms, a theater that can be rented for productions, a rooftop deck, as well as a large landscaped courtyard. Construction is expected to be complete by May 2014.
Photo credits: Wikimedia Commons
First Hyatt House Hotel in Pittsburgh Now Open31 May 2013, 6:52 pm
Hyatt Hotels Corporation, Concord Hospitality Enterprises and Oxford Development Company have recently celebrated the opening of the first Hyatt house hotel in Pittsburgh.
Known as Hyatt House Pittsburgh-South Side, the five-story, 120,000-square-foot property offers 136 residentially inspired studios, along with one- and two-bedroom kitchen suites, more than 1,500 square feet of flexible meeting space, a 24-hour fitness center, indoor pool, guest laundry facilities, and a 6,000-square-foot outdoor patio with a fire pit and gas grills.
Located in the SouthSide Works district near some of the region’s top corporate headquarters, the hotel is expected to become an ideal spot for business and extended-stay corporate travelers.
“We are excited to bring Hyatt House to this vibrant neighborhood. Hyatt House is everything the name represents—a welcoming and warm environment that encourages guests to live like residents,” said Michael Rhoten, the hotel’s general manager.
Hyatt house Pittsburgh-South Side is the first Hyatt-branded hotel opened by Oxford Development Company in Western Pennsylvania. Concord, the property’s operator, currently manages 13 hotels in the Greater Pittsburgh area.
In other news, the Pittsburgh Business Times reports that a local partnership called CDR Development LLC is planning the construction of a 335,000-square-foot office park near the Pittsburgh International Airport.
Known as Findlay Crossing, the project will be developed on a 30-acre parcel of land situated on Flaugherty Run and Clinton Roads near Dick’s Sporting Goods. The group is about to purchase the site from Atlanta-based Park ‘N Fly, an operator of airport parking lots.
CDR Development is comprised of Charlie Brown, an airport area parking entrepreneur; David Dietrich, a principal of an at-home senior health care services firm; and Sofranko, a restaurateur and consultant who has also developed real estate.
Pittsburgh’s Parkway West office submarket has seen a dramatic improvement in the last two years, the newspaper reports. According to Dan Adamski, a managing director in the local office of Jones Lang LaSalle, the timing for the partnership’s new office development is excellent.
Photo credits: http://www.oxforddevelopment.com
Gardens at Market Square Mixed-Use Development to Break Ground in July24 May 2013, 7:34 pm
Millcraft Investments’ plan to develop a $95 million mixed-use complex on Forbes Avenue in downtown Pittsburgh has received its final approval from the city planning commission. According to the Pittsburgh Post-Gazette, the project known as Gardens at Market Square is expected to break ground in July.
Plans call for 125,000 square feet of office space, a 197-room Hilton Garden Inn, about 25,000 square feet of street-level retail and a 335-space parking garage. Miami-based Arquitectonica is the designer of the entire complex, which comprises an 18- and 11-story structure.
In order to address concerns raised by the owners and occupants of two neighboring buildings, the developer has agreed to eliminate a garage entrance and exit on Fourth Avenue and build a small park instead. All vehicles will enter and exit the new complex at Forbes, which could become a two-way street in the near future.
Turner Construction Co. has replaced Dck Worldwide LLC as construction manager and equity partner for the project. The company will also lease between 20,000 to 25,000 square feet of space in the building. Popular restaurant Burgatory and Jackson’s Social Bar and Restaurant are also among the property’s tenants. Construction is expected to be complete by 2015.
In other news, the Pittsburgh Business Times reports that Moonbeam Capital Investments LLC of Las Vegas has acquired the Century III Mall in West Mifflin from Texas-based C-III Asset Management.
The property spreads across 86 acres and offers approximately 1.21 million square feet of gross leasable retail space. According to the 2013 Pittsburgh Business Times Book of Lists, the center ranks among the region’s largest shopping malls. Sears, Macy’s, Dick’s Sporting Goods and American Eagle are among the property’s tenants.
“We’re long-term investors not looking to flip the project at all but instead seeing how we can make it better and turn it around to be the shopping hub that it was,” Sandra O’Clock, vice president of special projects at Moonbeam Capital, told the newspaper.
Photo credits: www.millcraftinv.com
Sampson Morris to Redevelop Wholey’s Building into Apartments15 May 2013, 6:41 pm
Sampson Morris Group is planning to redevelop the seven-story New Federal Cold Storage facility in the Strip District into 144 one- and two-bedroom loft apartments. Also known as the Wholey’s building, the windowless property is located at 1501 Penn Avenue.
According to the Pittsburgh Business Times, the Monroeville-based developer purchased the 330,000-square-foot structure in 2008. Initial plans called for the conversion of the building into condominiums. Later, Sampson considered developing a multi-tenant industrial facility and then in March 2012, the company marketed the property as an office project. However, the strength of the apartment market in the Strip District has convinced Sampson to change strategy once again.
The building’s first two floors will be used as parking, Sampson Morris Group CEO Michael Morris told the newspaper. The size of the apartments will average 1,100 square feet, while rent is expected to be around $1.80 per square foot. The developer intends to submit the project to the city planning department in the next few weeks and complete construction by the end of 2014.
In regional news, two multifamily properties in Ross Township have been listed for sale. The Pittsburgh Business Times reports that Philadelphia-based PRG Management Inc. is selling the 100-unit Governor’s Ridge Apartments at 112 Hilands Place, as well as The Cascades, a 146-unit community near Interstate 279.
According to Cindy Kamin, a senior vice president who works in multifamily and investment sales for CBRE, the assets are generating quite an interest from various investors. “There’s just not that much on the market right now and people want to buy,” she told the newspaper.
The Pittsburgh office of HFF Inc. is marketing the properties, which can be purchased together or individually. Built in the 1970s, the complexes are located less than two miles from one another and could be jointly managed.
PRG acquired Governor’s Ridge in 1988 and The Cascades in 1998. Both properties are almost completely occupied, with rents ranging from 85 cents to $1 per square foot.
Photo credits: www.loopnet.com
Speculative 130,000 SF Office Building Breaks Ground in North Fayette25 Apr 2013, 4:38 pm
Moon-based DiCicco Development is building a speculative 130,000-square-foot office building along the Parkway West corridor in North Fayette.
According to the Pittsburgh Post-Gazette, the developer is already preparing the site for the construction of the five-story project known as Westpointe Corporate Center Four. The building is being marketed by CBRE executive vice president Jeremy Kronman.
As demand for office space in the Parkway West area has been on the rise in recent years, DiCicco is confident that its latest project is worth the risk. The area’s vacancy rate has decreased from 18 percent at the end of 2011 to 14.3 percent at the end of 2012. According to CBRE, vacancy for class A office space in the corridor is currently around 5 percent.
“It’s just that the market is extremely tight. When you do a search for space in the Parkway West, there’s one building with 70,000 square feet, there’s one with 60,000 and there’s nothing else,” Kronman told the newspaper.
Construction on the Westpointe Corporate Center Four is expected to be complete by early 2014. The new building will be located next to a Hilton Homewood Suites hotel that DiCicco is developing in conjunction with Concord Hospitality.
DiCicco’s other projects in the Parkway West corridor include Westpointe Corporate Center One, which is occupied by Nova Chemicals, and Parkwest Corporate Center, which was leased to the Lanxess Corp. Chevron and RTI International Metals are also among DiCicco’s tenants.
In other news, Forest City Enterprises has announced that within the same transaction it has acquired its partner’s share in the Mall at Robinson, while selling its interest in the Plaza at Robinson Town Center. The company’s net proceeds were $7.75 million. Prior to the transaction, Forest City owned 72 percent interest in the mall and 50 percent interest in the strip center.
Photo credits: http://www.loopnet.com
Pittsburgh Public Schools Plan Sale of Closed Facilities17 Apr 2013, 6:52 pm
Pittsburgh Public Schools is considering the sale of 19 of its 20 closed buildings across the city. Only the Knoxville property at 324 Charles Street will be kept for use as a warehouse. According to the Pittsburgh Post-Gazette, the School District has selected Fourth River Development to market its portfolio.
Combined, the 20 properties have a debt of $9.15 million, as well as an annual operating cost of $681,850. The buildings with the greatest amount of debt are Northview in Northview Heights with $1.96 million; Fort Pitt in Garfield with $1.86 million; and Belmar in Homewood with $1.34 million.
For most of the assets, Fourth River is recommending a negotiated sale, which requires three appraisals. If sold to a for-profit organization, the property’s sales price cannot go under the highest of the three appraisals.
Four of the buildings, however, may not attract high bids and could be donated or demolished. These include Beltzhoover, Gladstone in Hazelwood, Rogers in Garfield and Belmar. The Pittsburgh History & Landmarks Foundation will review any demolition plans in detail, the newspaper reports.
On the other hand, the properties with the highest interest are McCleary in Lawrenceville, Morningside, Columbus on the North Side and Burgwin in Hazelwood. In fact, the Morningside building has only $9,180 in debt, the lowest of the 20 assets.
The School Board is also considering the sale of its headquarters, a 1920s building on South Bellefield Avenue in Oakland. Pat Morosetti, Fourth River’s sales and leasing manager, told officials that the property is the School District’s most valuable asset, as demand for both residential and commercial space in Oakland is well over 90 percent.
Photo credits: http://www.frd.us.com/pghschools/morningside.htm
Developers Plan More Apartments in Pittsburgh’s SouthSide Works10 Apr 2013, 7:35 pm
A group of investors is planning to develop a 170-unit apartment building on Hot Metal Street at the SouthSide Works. The Pittsburgh Business Times reports that Oxford Development and North Side-based PJ Dick have called off their plan to build a 120,000-square-foot office structure at the site and have instead partnered with Lincoln Property Co. to develop a residential complex.
Oxford Development Co. President and CEO Steven Guy told the newspaper that the proposed office project located between a SpringHill Suites Hotel and the Circuit Center union facility has generated insufficient interest from tenants.
“CBRE and Oxford Realty services have been co-marketing that site for nearly two years, and although we have come close on two or three occasions of getting an anchor tenant to kick it off, nobody has pulled the trigger on it,” he said.
On the other hand, apartment demand on the South Side seems to be on the rise. The Soffer Organization has also launched a rental residential project in the area.
“I think there’s great demand for apartments on the South Side,” Guy added. “The question is obviously, are people willing to pay what it costs to build?”
In other news, developer Todd Palcic is planning to convert the former Graphic Arts building in downtown Pittsburgh into apartments. According to the Pittsburgh Post-Gazette, the redevelopment of the eight-story, red-brick property at 422 First Avenue will result in 33 to 37 residences. Most of the units will be one-bedrooms, with rents ranging from $1,200 to $1,400 for an 800-square-foot home. Construction is expected to begin next year and be complete by 2015.
The developer recently paid $800,000 for the 35,000-square-foot building, as well as $350,000 for an adjacent lot which will be used as parking. The transaction was brokered by CBRE.
The repositioning of the First Avenue structure is Palcic’s fourth residential project in the city’s downtown area. The developer has already converted two Penn Avenue buildings into condominiums and is currently redeveloping a third into apartments. Called Lando Lofts, the project will feature 27 luxury rental units.
Photo credits: http://www.southsideworks.com
Allegheny County Health Department Site to Bring New Hotel and Offices5 Apr 2013, 2:23 pm
A development team comprised of Massaro Properties, the Langholz Wilson Ellis real estate firm, and architect Tasso Katselas Associates will repurpose the health department building in Oakland into hotel and office space.
According to the Pittsburgh Post-Gazette, the developers are about to acquire the property currently owned by Allegheny County for $4.9 million. The group hopes to finalize the sale by the end of the year, after a period of due diligence.
Economic development director Dennis Davin told the newspaper that the sales agreement received the county council’s approval in November 2009, but it was eventually postponed because of the recession. Meanwhile, Kratsa Properties, another developer that was part of the team, withdrew from the project.
The proposed development at 3333 Forbes Avenue includes a 50,000-square-foot office building, a 168-unit hotel, and parking. Construction is expected to begin early next year and be complete in 2015. Last December, the developers paid $385,000 for an adjacent property at 3337 Forbes Avenue which would offer easier access to the hotel.
In other news, the Pittsburgh Post-Gazette reports that construction on a planned residential development in Cranberry Township could begin this summer.
Called the Links of Cranberry, the proposed neighborhood is the first project of its kind in five years. Plans call for approximately 300 new homes and apartments near the Highlands Golf Club, along Freshcorn and Glen Eden roads, as well as extensive landscaping, parklets and pedestrian walkways.
Dan Ryan Home Builders of Pittsburgh will develop the first phase of development, comprised of 20 townhomes and 21 single-family homes. Morgan Management of Rochester, N.Y. will be in charge of the second phase of the project, which involves the construction of eight apartment buildings totaling 252 units.
According to township planning director Ron Henshaw, the area’s residential growth is on the rise. In 2012, there were 84 building permits for single-family homes, compared to 75 in 2011, 69 in 2010, 49 in 2009 and 71 in 2008.
Photo credits: Cranberry Township via cranberry.patch.com
Landmark Developments To Look Forward To in Downtown Pittsburgh27 Mar 2013, 5:53 pm
Pittsburgh’s growing downtown will soon welcome a new wave of development. According to the Pittsburgh Post-Gazette, 60 projects are currently planned for the Golden Triangle region, totaling about $2.2 billion in investment.
Developed by Millcraft Investments, the Gardens at Market Square is among the most notable mixed-use towers expected to break ground in the heart of downtown this year. Lucas Piatt, the company’s president and chief operating officer, has discussed the $95 million hotel, office and retail project during the recent annual meeting of the Pittsburgh Downtown Partnership.
The 18-story high-rise will be developed on Forbes Avenue, between Market Square and Wood Street, and will include approximately 125,000 square feet of office space, a 197-room Hilton Garden Inn, 20,000 square feet of retail space and a 335-car parking garage. Construction is expected to start in June, with Turner Construction Co. as construction manager and anchor tenant. Popular restaurant Burgatory and Jackson’s Social Bar and Restaurant are also among the building’s tenants. The completion date for the entire development has been set for 2015.
During the meeting, Millcraft Invetments discussed another project on its drawing board, which includes the redevelopment of the former Saks Fifth Avenue store. The developer has partnered with McKnight Realty Partners to build a 130-unit apartment building at the site. The complex would feature a rooftop swimming pool, a spa, a yoga room or studio, a 450-space parking garage, and 25,000 square feet of street-level retail.
The Pittsburgh Downtown Partnership has outlined several other projects that are slated to continue progress in the Golden Triangle. These include the $42 million upgrade of the Point State Park, PNC’s conversion of the former Lord & Taylor department store on Smithfield Street into a call center, a new three-story office building on the North Shore to be developed by Continental Real Estate, as well as the redevelopment of the 28-acre Civic Arena into housing, office, retail and entertainment space.
Photo credits: http://www.millcraftinv.com/