PITTSBURGH | Development Rundown III

[BrianTH]

Originally Posted by pj3000

What do we think the chances are of these (as rendered) getting built in the next decade?

Considering the current lack of demand for new office space in downtown proper and immediately adjacent to downtown in the Lower Hill, is it realistic to expect the demand exists for this sizable development across the river?

Of course office space in the Strip has apparently been easily marketed.

In the end, I would assume this is more a price-point issue than anything else. If you could deliver those buildings with a leasing price per SF that would be competitive with the Strip, I would think you might well be able to market that space pretty easily.

[pj3000]

Originally Posted by BrianTH

Of course office space in the Strip has apparently been easily marketed.

In the end, I would assume this is more a price-point issue than anything else. If you could deliver those buildings with a leasing price per SF that would be competitive with the Strip, I would think you might well be able to market that space pretty easily.

I could definitely be wrong, but it seems to me that most, if not all, of the Strip's new/newer office development is focused on tech firms and related entities, often occupying whole buildings which are relatively small, suburban-y, and configured for "collab/R&D". I think it would be difficult to offer similar price/SF rates in new 20+ story buildings at a profit.

[BrianTH]

Originally Posted by pj3000

I could definitely be wrong, but it seems to me that most, if not all, of the Strip's new/newer office development is focused on tech firms and related entities, often occupying whole buildings which are relatively small, suburban-y, and configured for "collab/R&D". I think it would be difficult to offer similar price/SF rates in new 20+ story buildings at a profit.

It has actually been a mix. I know law offices, for example, who have moved into the Strip.

[pj3000]

^ yeah, I know Burns White moved into Oxford's development, likely occupying the whole building, and did so to have their new space be physically in the same neighborhood with the various tech firms. My patent/IP attorney buddy even opened an office in an old building on Penn to be right in the thick of it. I guess physical proximity to clients/potential clients is still valuable.

[BrianTH]

Originally Posted by pj3000

^ yeah, I know Burns White moved into Oxford's development, likely occupying the whole building, and did so to have their new space be physically in the same neighborhood with the various tech firms. My patent/IP attorney buddy even opened an office in an old building on Penn to be right in the thick of it. I guess physical proximity to clients/potential clients is still valuable.

Yep.

I don't actually know if this is a thing or not, but--you already have Nova Place, the tech office complex thing they made out of the former Allegheny Center mall. SAP was the anchor tenant at the new riverfront building by Continental. Affirm, which calls itself a Fintech company, took space at 30 Isabella. Avere was based at One Progress Court, and Microsoft acquired them and apparently is expanding. And so on.

So, off hand, without actually being in this world, it looks to me like the North Side is already emerging as another "tech cluster" sort of location (although I guess one could argue One Progress Court was as much Strip related as North Side related). And that means as with Affirm and maybe others, there may also be interest by business and professional services firms that brand themselves as supporting tech stuff.

[pj3000]

Originally Posted by BrianTH

Yep.

I don't actually know if this is a thing or not, but--you already have Nova Place, the tech office complex thing they made out of the former Allegheny Center mall. SAP was the anchor tenant at the new riverfront building by Continental. Affirm, which calls itself a Fintech company, took space at 30 Isabella. Avere was based at One Progress Court, and Microsoft acquired them and apparently is expanding. And so on.

So, off hand, without actually being in this world, it looks to me like the North Side is already emerging as another "tech cluster" sort of location (although I guess one could argue One Progress Court was as much Strip related as North Side related). And that means as with Affirm and maybe others, there may also be interest by business and professional services firms that brand themselves as supporting tech stuff.

Interesting. I wonder what influence this “clustering” could have on further Heinz property development and on all that Buncher property at the 16th St. Bridge in the near future.

[BrianTH]

Originally Posted by pj3000

Interesting. I wonder what influence this “clustering” could have on further Heinz property development and on all that Buncher property at the 16th St. Bridge in the near future.

I always thought that should be seen as expansion room for the Strip. That bridge is a perfectly nice little walk.

[eschaton]

Speaking of the Heinz Lofts area, has anyone ever heard why the residential conversion of those three more modern buildings along River Ave failed? IIRC that project was supposed to add another 150 or so units.

[pj3000]

Originally Posted by eschaton

Speaking of the Heinz Lofts area, has anyone ever heard why the residential conversion of those three more modern buildings along River Ave failed? IIRC that project was supposed to add another 150 or so units.

I've been wondering what, if anything, has been going on with that. I seem to recall that the developer was proposing some pretty extensive tax abatement in order to make the financing work, so I wonder if that wasn't approved and they're trying to figure out any financing gaps.

[pj3000]

Speaking of the Strip...

'The condo guy': Developer Jack Benoff to bring another 50 units to the Strip

https://www.post-gazette.com/busines...s/201911040113

Seems that this is the potential location: https://www.google.com/maps/@40.4555...7i16384!8i8192

The project, expected to cost $15 million to $18 million, will vary in height from four to five stories. Mr. Benoff will be offering one- and two-bedroom condos, although buyers will be able to combine units to add more bedrooms or space.

Condos will range in size from 700 to 1,500 square feet. Prices will run from under $300,000 to $700,000. “I’m really trying to make this as affordable as I can,” he said.

At one time, another developer, Francois Bitz, had plans for an 18-story condo tower at the site. But that proposal was rejected by the city’s zoning board of adjustment. Mr. Benoff said he purchased the property from Mr. Bitz.

Forte Condominiums is the latest foray into the booming residential market in the Strip. City Councilwoman Deb Gross has estimated that some 2,000 condos or apartments have been built in the city neighborhood over the last five years.

[eschaton]

That's a pretty nice design, but then Indovina seldom misses on these things.

One thing I'm not entirely sure on though is it takes up a significant portion of the block, and will basically tie it up forever as having a "dead edge" with a non-active use.

I'd prefer if there was at least a small portion of the first-story facade for a commercial storefront, but I understand why this is more problematic in a condo building than an apartment.

[Austinlee]

Originally Posted by mikebarbaro

Here is both the office/residential/entertainment renderings going in by home plate and the other still proposed office towers on the other side of PNC Park to be built next to the Spring Hill Suites...

I really like the design of this new multi use building. Evergrey thinks <50 residential units is kind of anemic though. Either way, nice design.

Originally Posted by eschaton

I don't think we discussed here the chatter about a new small urban-format Target possibly ending up at the Kaufmann's site downtown.

The big news is that the ZBA approvals for the new Garden Block project have arrived. They are asking for a five-story, 47-unit new construction building, along with rehab of the surviving two buildings on Federal which will result in nine residential units (so 56 in all) in addition, "approximately five" commercial tenant spaces. The only variance they're asking for is the parking to be off site in leased spaces at 1215 Federal Street (literally on the next block) so I think this will be more NIMBY-proof than earlier designs.

Sounds like nice massing. 47 units - basically the same # of units as the new Continental rendering posted above.,,

Originally Posted by pj3000

Speaking of the Strip...

'The condo guy': Developer Jack Benoff to bring another 50 units to the Strip

https://www.post-gazette.com/busines...s/201911040113

Seems that this is the potential location: https://www.google.com/maps/@40.4555...7i16384!8i8192

Fantastic design. Would love to see more buildings of this size and quality throughout the greater downtown area.

[Jonboy1983]

Originally Posted by eschaton

That's a pretty nice design, but then Indovina seldom misses on these things.

One thing I'm not entirely sure on though is it takes up a significant portion of the block, and will basically tie it up forever as having a "dead edge" with a non-active use.

I'd prefer if there was at least a small portion of the first-story facade for a commercial storefront, but I understand why this is more problematic in a condo building than an apartment.

When I think of current condo buildings in Pittsburgh, 151 First Side and the Encore at 7th come to mind. Both I know have residential units at least a couple of floors above the street. It looks like the Encore might have one or two street-level office or store fronts (altho I guess these could be offices for the condo association, or some other use for the residents only), while the 151 Firstside building rises above a windlowless, soulless brick box. I can't think of really any notable condo buildings that have retail or office use. I know those are more typical of apartment buildings where residents and the office/retail tenants pay rent.

Judging from the street view of this possible location for this condo, this seems like a rather dead area anyway. It's a handful of blocks away from the restaurant/retail hub. I'm not sure if this would be a good add or a bad add over all. More residential units would be welcome in the Strip considering how high the demand is. Suppose commercial does spread further down Penn. Would this become a barrier?

All that said, I'm thinking the scope and overall use of the building are suitable for these surroundings. While the retail use seems sporadic, having added residents would likely only add foot traffic to this area and to the Upper Strip.

[pj3000]

For $300-750k in a condo building like this, I'd want to live a few blocks away on the river, not on Penn Ave.

[eschaton]

I just realized I missed the Planning Commission presentation which was posted last week. Sorry, my work computer went kaput, so I was in and out of the office a lot. It's a pretty big agenda they are discussing today, with five new items.

1. Historic nomination of the former Pennsylvania National Bank building in Lawrenceville - located at the prominent Penn/Butler intersection (called "Doughboy Square" for no particularly good reason, since it's not a square), and most famous recently for being the Desmone offices (though they've since expanded into new construction in the rear). Lots of information, as always.

2. Historic nomination of 1130 Reddour Street on the North Side, also known as the "Bradberry Building." The building has recently been restored as a small (16 unit) apartment building, but the Google Car hasn't gone by since.

3. The planned CCAC Workforce Development and Training Center has arrived. Located at 811 Ridge Avenue, the planned building is a three story, 57,000+ square foot building which is meant to house training areas for manufacturing, culinary arts, IT, and other uses. It fills in a gap in the CCAC campus, and is similar in massing to the building housing the Foester Student Service Center just to the west. It will reduce campus open space to a small area focused around an oval, but too many campuses have too much open space as it is. The design (Desmone) is meh, but I don't expect that much from CCAC (or Desmone).

4. Continuing the higher education focus, Pitt's new Scaife Hall addition/renovation also appears. This is is a relatively modest building in terms of scope - it's described as a six-to-seven story, 110,000 square foot addition in the press, but in the renderings the occupied portion of the building appears to be around four stories. However, it will make a big impact, as the current windowless bunker will be replaced by a new structure with glass curtain walls.

5. Finally, completing the "college theme" is CMU's new dormitory at 5th Avenue and Clyde St. This is a six story, 150,400 square foot, 265 bed residence hall. I like the overall massing, but I still think the "fins" around the windows to obscure lines of sight from the street are a very odd touch.

[BrianTH]

I agree about street level retail being preferable, but I'll still take it.

By the way, looking at Google streetview, I realized the little catering business next door that helped kill the highrise has been replaced by a new BBQ place:

https://www.nextpittsburgh.com/eatdr...-in-the-strip/

[DKNewYork]

CMU announced a new student health/wellness center is to be constructed on the lawn in front of Skibo Gym. The 160K sf building will front on Schenley Park.

https://www.cmu.edu/news/stories/arc...ell-being.html

[eschaton]

Next Pittsburgh has a couple of light articles up about two projects which have been moving along for awhile - the Garden Block replacement project (which is going before the ZBA in 10 days), and the John Woods House in Hazelwood being turned into a Scottish pub (which was before the HRC ages ago).

There's really not much in the articles which hasn't been said before, but still, in case people want to get refreshed.

[eschaton]

PBT has a couple of different things online.

1. Their own coverage of the Garden Block project. This is not behind a paywall. There's not much covered elsewhere, save that Trek has decided to convert the upper story of (what's left of the) actual Garden Theater into three studio apartments.

2. Benhoff has closed on the land needed for the 50-unit condo project discussed immediately upthread. Looks like the developer is aiming for a no-variance project, which means - provided the financing and pre-sale is solid - this should move along pretty quickly.

3. Finally, an interesting, brand new project. The location: Smallman and 24th, right next to Otto Milk. The plans for the building are to relocate Pro Bike + Run from Squirrel Hill, plus add a small market, coffee shop, juice bar, full bar and restaurant in the basement, fitness studio and showers, and converting the second floor into event space. That seems like rather a lot for a 29,000 square foot building, but apparently the developer has done something similar on a smaller scale in North Park.

[eschaton]

I should have held off posting for a bit today...feels like I'm talking to myself sometimes...but another major project has been unveiled in East Liberty due to the URA meeting agenda for this Thursday. The project in question is a nearly $80 million development on the two parking lots at South Beatty and Migonnette Streets (behind the library, more or less. The development - a three-firm venture between Walnut Capital, Midpoint, and Corcoran Jennison - will have two phases. The first is a six-story, 220-unit mixed-income building, which will include 66 affordable units and 12,000 square feet of retail. The second will be a six-story, 40 unit senior housing development. The project will also involve a 480-unit parking garage "visually shielded from the street" - which I am guessing from the unit count will be on the block with the senior housing.

In other URA news, it is buying the failed Centre Heldman Plaza - where the Hill District Shop 'n Save used to be - for $10.