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$45M Apartment Project Near South Hills Village T Station will Soon Break Ground

22 Jan 2015, 8:20 pm

By Adriana Pop, Associate Editor

A 301-unit transit-oriented apartment community with four buildings is slated to rise near the South Hills Village T station in Bethel Park.

According to the Pittsburgh Tribune-Review, locally based Massaro Properties and its joint venture partner, The Dawson Co. of Atlanta, have scheduled a spring construction start for the $45 million project. The new apartment asset, which was approved by the municipality’s planning commission on Jan. 12, will occupy approximately six acres of underused land and parking spaces. The developers are planning to lease the property from the Port Authority of Allegheny County.

“This will provide some additional revenue to Port Authority that they haven’t had in the past,” David Massaro, president of Massaro Properties, told the newspaper. “We have an arrangement to use some of the parking garage, using up some of the spaces that frankly aren’t being used right now.”

According to Port Authority spokesman Jim Ritchie, only about half of the parking facility connected to the South Hills Village T station is currently being used on an average day, with rates of $2 per day or $22 per month. Once the terms of the lease agreement have been finalized, the project will also need to be approved by the Federal Transit Authority.

Construction on the apartment community is estimated to last for about 16 months. Upon completion, the new development will offer one-, two- and three-bedroom apartments, with rents ranging from $1,000 to $2,000 per month.

Photo credits: Massaro Properties via TribLive

Walgreens will Relocate Offices to Findlay, Add Hundreds of New Jobs

18 Jan 2015, 9:36 pm

By Adriana Pop, Associate Editor

Walgreens Boots Alliance will soon move the offices of its specialty pharmacy division in Carnegie to a new facility built by Clayco Corp. in Findlay Township. Upon completion this summer, the project is expected to house between 300 and 400 new company employees.

According to the Pittsburgh Business Times, the upcoming 86,000-square-foot office building will be located within the Regional Industrial Development Corp. Park West. County real estate records indicate that Clayco acquired the 11.9-acre property at 130 Enterprise Drive in December for $1.82 million.

Don Smith, president of the Regional Industrial Development Corp. of Southwestern Pennsylvania, which owns the RIDC Park West business park, told the newspaper that the site comprised of three parcels is located near the new headquarters of SDC Nutrition and that only six parcels remain available for development in the park. “The demand is hot there,” he added. “I think you’re seeing a lot of the demand that was shopping at Southpointe [in Washington County] moving up to the airport area.”

In a partnership with the Pittsburgh Penguins, Clayco, an engineering and construction company based in Chicago, is also building U.S. Steel Corp.’s new headquarters building in the Lower Hill District.

Walgreens Boots Alliance Inc. is the new name for the former Walgreen Co. which began trading its shares under the ticker symbol “WBA” on the final day of 2014. The nation’s largest drugstore chain changed its name after spending nearly $16 billion to complete the acquisition of the European health and beauty retailer Alliance Boots. The combined company, which is based in Deerfield, Illinois, currently has more than 12,800 stores and 340 pharmaceutical distribution centers globally.

Photo credits: Wikimedia Commons

Leed’s Announces Additional Expansion at Westmoreland County Industrial Park

12 Jan 2015, 3:41 am

By Adriana Pop, Associate Editor

Promotional industry manufacturer Leed’s is planning the construction of a 240,000-square-foot warehouse on a 28.11-acre site in Westmoreland County. The company has reached a six-month option agreement with the Westmoreland County Industrial Development Corp. to purchase the property.

According to the Pittsburgh Business Times, the new facility, which will be located at Business & Research Park in Upper Burrell Township, will offer about 80 percent warehouse space and 20 percent decoration operations space. The project, which should break ground immediately, is scheduled to be complete by the end of 2015.

The expansion represents the initial phase of a larger project that could reach about 500,000 square feet, the company announced.

“When fully built, we anticipate total square footage for the facility of around 500,000 square-feet. Our goal is to move into the new facility by the third quarter of 2015,” Leed’s CFO David Farr said in a prepared statement. “This future expansion will increase both decoration capacity and warehouse capability and quite possibly bring the total square footage of building space to more than 800,000 square-feet at the park.”

Leed’s, one of Westmoreland County’s success stories, is known for its line of promotional products and gift items, including bags, pens, padfolios, drinkware, technology and more.

The company began its operations in Murrysville with only about 40,000 square feet of space. In 1997, it moved in the Westmoreland Business and Research Park where it now has a 200,000-square-foot warehouse, a 44,000-square-foot design center and other facilities hosting about 900 employees.

Other companies at the business park include Accro Tool Enterprises, Accurate Marking Products, Baldor Electric Co., Industrial Automation and Control, Pittsburgh Technologies and Xodus Medical.

Photo credits: Leed’s

Major Multifamily Community Coming to Negley Avenue; King Penguin Opportunity to Acquire the Lawyers Building

17 Dec 2014, 3:42 pm

By Adriana Pop, Associate Editor

A new 140-unit apartment development called Mellon Orchard will soon rise on Negley Avenue in Pittsburgh.

According to the Pittsburgh Business Times, Eric Jester, principal of New-burgh Real Estate, in partnership with Barry Lhormer and Bob Mistick, will be leading the project, which will cost between $20 million and $23 million.

The proposal went before the city’s Urban Redevelopment Authority board which voted measures that enable the developer to pursue funding through the Pittsburgh Housing Finance Agency. About 22 percent of the project’s apartments will be affordable, while the rest of the units will be rented at market rates.

The development’s construction timetable has not been finalized. Plans call for two four-story elevator buildings that would replace a collection of about 89 deteriorating apartments at the site, which is owned by East Liberty Development Inc. A neighboring house will also be converted into nine apartments, the newspaper reports.

In other news, the Pittsburgh Business Times reports that the New York-based King Penguin Opportunity Fund led by Michael Mikelic is planning to acquire the 25-story Lawyers Building at 428 Forbes Ave. in Pittsburgh. The transaction is expected to close in mid-January for less than $4.5 million.

The historic 120,000-square-foot C-grade office property is owned by Union Real Estate. It dates back to the 1920s and is currently 77 percent leased. Before being used as an office facility, the building once housed a hotel called the Pittsburgher.

The property’s new owner intends to upgrade the facility with a rooftop deck, new finishes and new retail, and will also bring back its old name.

Mikelic’s King Penguin Opportunity Fund, which totals $50 million and includes mostly multifamily projects in New York, will now be targeting other investment opportunities in Pittsburgh, including office projects, apartments and student housing.

“We’re trying to do more because we don’t want to come down there just for one office building that’s pretty small,” Mikelic told the newspaper.

Photo credits: loopnet.com

Click here to read our most recent multifamily market snapshot for Pittsburgh.

Oxford Development Breaks Ground on Mixed-Use Riverfront Project in the Strip District

10 Dec 2014, 5:22 pm

By Adriana Pop, Associate Editor

Construction of a mixed-use development featuring office and apartments is currently under way in the city’s Strip District neighborhood.

The new development will cover an 11-acre stretch of Allegheny riverfront formerly used for trucking and storage. The site is located along Smallman and Railroad streets, between 25th and 28th streets.

According to the Pittsburgh Business Times, Oxford Development Co. is investing $130 million in the upcoming Three Crossings project which derives its name from the historical modes of transportation that converged at the site—truck, rail, and barge.

Plans call for a 300-unit apartment complex called The Yards and an office component that would eventually comprise a set of four urban-flex buildings totaling 375,000 square feet. The development will also feature a 95-foot setback from the river, as well as a park, a 575-space garage, 100 bike storage units, kayak storage and retail space.

Designed to LEED Silver Certification standards by North Side-based WTW Architects, the project’s residential component will offer a mix of studio, one- and two-bedroom apartments ranging in size from 474 square feet to 1,198 square feet. Amenities will include a bar and coffee lounge, a fitness center, swimming pool, riverfront trail access, mudroom with pet wash stations, game areas and fire-pits.

A former rail and truck yard, “The Yards at Three Crossings” will also provide lush green space in its big “back yard” along the riverfront for residents to enjoy.

Oxford CEO Steve Guy told the newspaper that his company’s initial plans at the site called for the construction of a total of 250,000 square feet of office space, an amount it eventually increased to 375,000 square feet in part because there are many companies interested in establishing their business close to the riverfront.

The first building to go up at Three Crossings will serve as the future headquarters of Rycon Construction. It is scheduled for completion in the summer of 2015.

Photo credits: Oxford Development

Click here to read our most recent multifamily market snapshot for Pittsburgh.

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