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http://www.pittsburghlive.com/x/pitt.../s_780497.html

Mt. Washington project may proceed

By Sam Spatter, FOR THE PITTSBURGH TRIBUNE-REVIEW
Wednesday, February 8, 2012
About the writer
Sam Spatter is a Pittsburgh Tribune-Review staff writer and can be reached at 412-320-7843 or via e-mail.

An effort to develop the former Edge Restaurant property in Mt. Washington will continue after a New York-based lender provided new financing, the developer said on Tuesday.

Manhattan, N.Y.-based Emerald Creek Capital this week closed a $1.55 million loan to developer Beau Beemsterboer, who has plans for a $100 million complex along Grandview Avenue -- which would include a 20-story hotel, two restaurants, 55 condominiums and a 472-space parking garage.

"When we purchased the property, we received a seller's mortgage (from former owner Dr. Fran Hurite). Although the note wasn't due until April 1, when we were able to secure refinancing from Emerald Creek, we decided to pay off the $1.1 million note," said Beemsterboer, who with his father, Steven, heads the development company, Sycamore Grandview Development Inc.

With bank credit difficult to obtain, local real estate experts have said the developers will need deep pockets to obtain construction financing.

The Chicago-area family has said they used their own funds to purchase additional properties adjacent to the Edge site, along former Vinecliff Street and on Sycamore Street. They also financed the demolition of the restaurant and adjoining residential units, and prepared the 400,000-square-foot area for development. In total, the family has said it spent about $5 million on the project.

"With this financing in place, we can finalize our development plan," said Beau Beemsterboer, vice president.

"It gives us the time to obtain more financing for the construction phase, and to wait for when the appropriate financing becomes available, with hope that next year the market will rebound, especially for the hotel," he said.

There is no time schedule for construction to start, he said.

The main family business is Beemsterboer Slag Co. Its primary business is coal, coke and salt commodities trading.

The long-planned One Grandview project was approved by the city in 2010, and demolition of the long-vacant Edge Restaurant and adjoining residential properties was completed last spring, leaving a vacant site. It is adjacent to the Monongahela Incline, at Grandview Avenue and Wyoming Street.

"Emerald Creek Capital found the borrower's strong credit history and financials made the company comfortable about the loan's chances of repayment," said Mark Bahiri, Emerald's managing partner.

During the past 12 months, the developer lobbied City Council to designate the 20-plus parcels as a single lot. Council also approved the area being reclassified as a single zone, Bahiri said.



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