Faros Properties Pays $44.9M to Acquire Massive Apartment Community in Downtown Pittsburgh
- Mar 24, 2014
By Adriana Pop, Associate Editor
Real estate investment firm Faros Properties of New York has closed on the acquisition of the approximately 800-unit Allegheny Center Apartments on the North Side of Pittsburgh, perhaps the largest residential rental community in the region.
The Pittsburgh Business Times reports that James Krasne and Penn Cal Co. of Allegheny Center Associates sold the property for $44,925,000, or more than $55,000 per unit. Cindy Kamin, a senior vice president in the Pittsburgh office of CBRE represented the seller in the transaction.
Kamin told the newspaper that the sellers took advantage of the hot multifamily market in Pittsburgh, by choosing the right timing for the sale of their asset, which generated interest from about a dozen out-of-town potential investors.
Built in the 1960s as part of the Allegheny Center complex, the property offers a mix of studio, one- and two-bedroom apartments within four high-rise buildings. Amenities include laundry facilities, rooftop sun decks, a fitness center and secured parking.
The apartment complex, which is 75 percent occupied, is well-maintained, but in need of renovations, Kamin says. One of the buildings has been empty for six years, since the Art Institute of Pittsburgh relocated its student dorms downtown.
In 2012, Faros Properties acquired another major apartment complex in Pittsburgh, namely the 388-unit I.M. Pei-designed Washington Plaza at 1420 Centre Avenue. The company paid about $48 million for the property, which brings its total investment in Pittsburgh to more than $90 million.
In other news, construction is about to start on the Hot Metal Flats apartment community within the SouthSide Works in Pittsburgh.
According to the Pittsburgh Business Times, the $30 million project is being developed by the Oxford Development Co. and P.J. Dick, and managed by Walnut Capital Partners.
Lincoln Property will no longer be involved in the development, which has been scaled back from 170 to 117 apartments.
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