PITTSBURGH | Development Rundown III

[evz922]

[PEORIA]

Originally Posted by pj3000

Downtown skyscraper could be converted into 'lifestyle boutique hotel'

http://www.post-gazette.com/business...s/201804190065

í œížƒ " Love THIS majestic and stately building! " Other than luxury residential, new life as an upscale hotel is a wonderful reuse for it.

[pj3000]

Penguins fail to gain low-income tax credits for former arena development

http://www.post-gazette.com/business...s/201805010052

The Pittsburgh Penguins may have to abandon plans for greater levels of affordable housing at the former Civic Arena site after failing to win low-income tax credits for the 935-unit development.

Despite backing from the city, the project was not among the 39 statewide, including four in Allegheny County, to receive 9 percent low-income housing tax credits conditionally awarded last week. The credits are administered by the Pennsylvania Housing Finance Agency and approved by its board.

With the decision, the team and its developer, St. Louis-based McCormack Baron Salazar, may have to reshape their plans for the lower Hill District development — particularly as it relates to affordable housing.

In November — in reaching a deal to get more time to develop the 28-acre site — the Penguins had pledged to make 20 percent of about 935 units affordable to households at 60 percent or below the area median income for 35 years. That was based on receiving the 9 percent tax credits.

But now, after striking out, they and McCormack Baron are looking to revert back to the deal originally negotiated with Hill leaders — 20 percent of the units affordable to households earning 60 to 80 percent of the area median income over eight years.

[eschaton]

Originally Posted by pj3000

Penguins fail to gain low-income tax credits for former arena development

http://www.post-gazette.com/business...s/201805010052

Looking over the list, it seems the following four projects got the nod in Allegheny County:

Doughboy Affordable Housing - Lawrenceville - 35 units (new construction)
Mellon's Orchard - East Liberty - 47 units (new construction)
Ohringer Building - Braddock - 35 units (rehab/conversion)
Riverview Towers - Squirrel Hill 191 units (rehab)

[BrianTH]

Article about the luxury condos being built in Lawrenceville:

https://www.nextpittsburgh.com/city-...lawrenceville/

I've been kicking around Pittsburgh development conversations long enough to remember when people were still expressing skepticism about Lawrenceville . . . .

[BrianTH]

Also an interesting (relatively in-depth) article about the $3 billion "social benefits fund" that Peduto has proposed, under the OnePGH banner:

https://www.nextpittsburgh.com/lates...mproving-city/

[BrianTH]

TREK has begun the first phase of redeveloping Allegheny Dwellings, a public housing development on the North Side, into a mixed-income community:

http://www.post-gazette.com/local/ci...s/201804300141

This phase is going to be a mix of apartments and townhomes:





According to the article, this phase is going into the Sandusky Ct area and also along Federal (not sure where):

https://www.google.com/maps/place/Al...!4d-80.0071768

The parts on Belleau Drive and Letsche Street will be redeveloped in future phases.

Generally this has a really good location, being just up the hill overlooking the central North Side and Downtown:

https://www.google.com/maps/place/Al...!4d-80.0071768

So hopefully it is yet another successful mixed-income project, and helps move along the redevelopment of the North Side in general.

[eschaton]

Originally Posted by BrianTH

According to the article, this phase is going into the Sandusky Ct area and also along Federal (not sure where):

At least some of the townhouses appear to be going on the west side of Federal Street around here (with that building likely demolished). I say that because the Housing Authority has bought out all of the parcels, and the addresses generally match the building permits for seven new-construction houses which have been working their way through since last fall.

That said, I don't think that the townhouse rendering shown can represent them - it's one unit too few, and the grading is all wrong for Federal Street.

[BrianTH]

Originally Posted by eschaton

That said, I don't think that the townhouse rendering shown can represent them - it's one unit too few, and the grading is all wrong for Federal Street.

Yeah, that's probably all from Sandusky Ct.

[eschaton]

Originally Posted by BrianTH

Yeah, that's probably all from Sandusky Ct.

My wife's firm has been working on the project, and I've actually seen site plans for it in the past. Can't remember them well enough to remember the exact layout, but I think there's some sort of big rotary planned at the end of Sandusky Court, with the buildings wrapping around it.

[eschaton]

The Pittsburgh Downtown Partnership has released its 2018 State of Downtown report. Some interesting highlights:

1. The office market downtown, although healthy, remains somewhat weak, with no large employers moving in, and many major tenants consolidating into smaller office areas even though employment is about the same. Overall occupancy rates remain pretty high however (89.2%) - in large part because the hotel and residential conversions have eliminated a lot of Class B/C office space downtown. Still, there's been a notable softening over the last several years in the Class B occupancy in particular, even as commercial rental rates continue to rise.

2. The residential market downtown has rebounded from a relatively weak 2017, with occupancy back up to 94% despite another 186 units coming online in the past year. The PDP counts another 1,500 units in "Greater Downtown" currently under development (including both apartments and condos) and another 2,600 in planning phases. This year, 13 downtown residential projects should commence, which will result in 1,335 additional units within three years. Most of these units are in downtown fringe areas like the Strip District and Station Square, not the Golden Triangle proper.

3. Over the past 12 months, 32 new restaurants and 8 new retail establishments have opened. PDP doesn't quantify how many closed, so it's hard to objectively say what this means.

4. Three new hotels will open by the end of this year, adding another 386 rooms. Downtown hotel occupancy is 67% - down 5% from its peak, but much stronger than the 60% occupancy regionally.

5. In terms of other events, the August Wilson Center is apparently doing better than ever since it reopened. The Heinz History Center had a bad year, but the other museums were either stagnant, or did better. The Convention Center had a strong year. All of the three major sports teams saw attendance drop in 2017.

The second-to-last page has a nice "investment map" of all of the projects currently underway in or near Downtown.

[bmust71]

Originally Posted by eschaton

The Pittsburgh Downtown Partnership has released its 2018 State of Downtown report. Some interesting highlights:

1. The office market downtown, although healthy, remains somewhat weak, with no large employers moving in, and many major tenants consolidating into smaller office areas even though employment is about the same. Overall occupancy rates remain pretty high however (89.2%) - in large part because the hotel and residential conversions have eliminated a lot of Class B/C office space downtown. Still, there's been a notable softening over the last several years in the Class B occupancy in particular, even as commercial rental rates continue to rise. .

Good thing though is that the downtown fringe has picked up the slack with SAP occupying 100,000+ sqft on the north shore, AI and Burns White both signed large leases in he strip (probably around 200,000 combined?), and I read recently that FNB was in talks to take ~250,000 sqft on the 9th and Penn site before the condo proposal were selected (and they are still seeking space I believe, just not as actively). Evoqua also moved its headquarters downtown in the past year. However, we hear more about companies moving in than we do leaving the city

[PITairport]

https://www.bizjournals.com/pittsbur...ittsburgh.html

[AaronPGH]

Wonder why they just don't increase the height of the first Riviera building?

[Bonnern19]

I figured this would be the place to ask this question since it relates to Pittsburgh development.

Does anyone know of a group called Armstrong? Possibly in the real estate / development industry? Just heard that this group was “negotiating large pieces of land” in South Oakland (near 376) for a “multi-purpose entertainment facility” that would’ve been privately financed. It would’ve been a stadium as Pitt Football would’ve moved back to Oakland to become the main tenant (maybe an MLS bid/smaller concert events too?). Apparently it didn’t get far, as they would’ve been locked into an “unfavorable, long-term lease.” Thanks. Very interesting development; It coincided with Pitt’s plans for a extensive renovations and additions to their athletic facilities.

[BrianTH]

The historic Yingling Mansion in Wilkinsburg:

https://www.google.com/maps/place/13...!4d-79.8829214

has been turned into a designer "Show Room" house for the month. See article here:

https://wilkinsburgsun.files.wordpre.../maysunweb.pdf

[eschaton]

Originally Posted by AaronPGH

Wonder why they just don't increase the height of the first Riviera building?

My guess is there are height limits built into the special planning district for PTC. It would sort of mess up the flow if a notably taller building was put in the mix. Though the new building looks like it will be back on Second Avenue, next to the parking garage, which is a bit more hidden and could probably be a few stories taller and still be unobtrusive.

I think the only buildable URA plot left in PTC not at least under speculation is the one just to the west of Ansaldo STS.

[pj3000]

Originally Posted by BrianTH

The historic Yingling Mansion in Wilkinsburg:

https://www.google.com/maps/place/13...!4d-79.8829214

has been turned into a designer "Show Room" house for the month. See article here:

https://wilkinsburgsun.files.wordpre.../maysunweb.pdf

Would love to see this neighborhood of Wilkinsburg make a comeback. An aunt of mine lived there back in the early 80s and I spent a lot of time visiting and riding bikes around the neighborhood, so I've always had a soft spot for it.

But it really has a lot of prime elements... great housing stock with multiple types and styles (very Highland Parky), tree-lined streets, adjacent to business district, walkable to east busway.

I imagine many people on this forum are unaware of this little area... it's kind of tucked away, but holds a ton of potential if Wilkinsburg's fortunes ever change.

[pj3000]

Originally Posted by Bonnern19

I figured this would be the place to ask this question since it relates to Pittsburgh development.

Does anyone know of a group called Armstrong? Possibly in the real estate / development industry? Just heard that this group was “negotiating large pieces of land” in South Oakland (near 376) for a “multi-purpose entertainment facility” that would’ve been privately financed. It would’ve been a stadium as Pitt Football would’ve moved back to Oakland to become the main tenant (maybe an MLS bid/smaller concert events too?). Apparently it didn’t get far, as they would’ve been locked into an “unfavorable, long-term lease.” Thanks. Very interesting development; It coincided with Pitt’s plans for a extensive renovations and additions to their athletic facilities.

Yeah, there's a pretty major development company called Armstrong that's based here. But I think they are more of a strip mall/chain retail type development/real estate services company. There was talk last year about that Oakland Gateway Ventures thing to build a gigantic parking garage and offices in the Blvd/Bates Street area... maybe something related to that is what you heard?

Regardless, I have a hard time believing a stadium would be proposed in "South Oakland (near 376)" unless this proposal includes leveling much of South Oakland

[eschaton]

Originally Posted by pj3000

I imagine many people on this forum are unaware of this little area... it's kind of tucked away, but holds a ton of potential if Wilkinsburg's fortunes ever change.

I think most people outside of the immediate area think of Wilkinsburg as being Penn Avenue, a little bit of Regent Square, and some amorphous ghetto full of falling-down buildings.