Buncher’s $400M Mixed-Use Project in Strip District Passes First Test
- Jun 26, 2012
by Adriana Pop, Associate Editor
The Pittsburgh City Planning Commission has approved the establishment of a special planning district for Buncher Co.’s estimated $400 million, 37-acre mixed-use development in the Strip District. The project, called Riverfront Landing, will also need to go before the City Council for approval.
Under the plan, Buncher is proposing at least 750 housing units with more than 1,000 parking spots, 800,000 square feet of office space, about 200,000 square feet of retail and a 140-room hotel. Construction is expected to span over 10 years.
According to the Pittsburgh Business Times, the first phase of the development includes three projects: a new 140,000-plus-square-foot office building at Smallman and an extension of 17th Street; the renovation of the Pennsylvania Railroad Fruit Auction Terminal Building; as well as a new apartment building behind it with at least 75 units. Plans also include the demolishing of one third of the Strip District’s historic produce terminal.
In May, the Urban Redevelopment Authority adopted a Tax Increment Financing plan for Buncher’s riverfront development. The plan calls for up to 10 percent of the overall project cost, funds that will be used for the improvement of the area’s infrastructure. The financing package of approximately $50 million will need to be approved by the city council, by the Allegheny County council and by the board of the Pittsburgh Public Schools.
In related news, Jones Lang LaSalle has been selected by the Pittsburgh Penguins to oversee the redevelopment of the former 28-acre Civic Arena site. The CityBizList Pittsburgh reports that the master plan calls for 1,200 units of housing, 600,000 square feet of office space and 250,000 square feet of commercial space.
Since the Civic Arena closed in 2010, the professional hockey team became the primary tenant of the $321 million Consol Energy Center across the street. According to the Pittsburgh Tribune Review, the Penguins pay $5.56 million a year on the lease. The payment is expected to increase by $200,000 once the temporary 800-space parking lot planned at the site of the former Arena opens in August.
Photo credits: www.dlastorino.com