Walnut Capital and its financial partner, the RCG Longview Fund, have closed on the acquisition of the vacant Reizenstein School in Pittsburgh’s East Liberty section. The purchase of the property allows the developers to move forward with their plans for the approximately $100 million Bakery Square 2.0 development.
Plans now call for three office buildings totaling 400,000 square feet, two 175-unit apartment buildings, 57 rental townhouses, an underground parking garage, and new streets, along with public and private green spaces. It’s estimated that the project’s full build-out period will span five years.
“Bakery Square 2.0 will be another world class development and is expected to create more than 1,200 new jobs and offer amazing office and housing opportunities that will attract new businesses and residents,” Mayor Luke Ravenstahl said.
Employee Real Estate Construction Trust Funds has provided financing for the acquisition and demolition of the school. According to the Pittsburgh Business Times, the initial phase of Bakery Square 2.0 entails the development of the first apartment building. Construction is expected to begin in March.
Across the street, Walnut Capital Partners has also completed Bakery Square 1.0, the $130 million mixed-use redevelopment of the 1900-era Nabisco bakery in Larimer. The LEED platinum 250,000 square feet building is fully leased and includes Google, UPMC, Carnegie Mellon and the University of Pittsburgh among its tenants.
“The success story of Bakery Square is one of a strong public-private partnership that has spurred millions of private investment in and around East Liberty, Larimer and Shadyside—from the opening of Target, to the historic renovation of the Highland Building, to the dozens of new restaurants and retail ventures,” Ravenstahl added.
Last year, Mayor Ravenstahl’s administration announced a $2 million federal grant that will help finance infrastructure costs for the second phase of Bakery Square.
Photo credits: bakery-square.com/photo-gallery