PITTSBURGH | Development Rundown II

[Jonboy1983]

Originally Posted by Evergrey

http://online.wsj.com/article/SB10001424...153791048.html?google_editors_picks=true

Man, that is one impressive building. It actually raises a question -- about Wilmerding...

Is there any effort/plan in the works for any potential revitalization of Wilmerding? That area seems rather depressed, and there isn't much in the way of dense urban development (mainly 1-2-story buildings...)

[DBR96A]

Originally Posted by Jonboy1983

Man, that is one impressive building. It actually raises a question -- about Wilmerding...

Is there any effort/plan in the works for any potential revitalization of Wilmerding? That area seems rather depressed, and there isn't much in the way of dense urban development (mainly 1-2-story buildings...)

I'd make revitalization funds for Wilmerding hinge on disincorporating into North Versailles.

[Evergrey]

The vulture capitalists who took over Heinz have quickly put their office space on the market.

http://www.bizjournals.com/pittsburgh/bl...e-comes-the-big-space-dump.html?page=all

Aug 15, 2013, 6:12pm EDT

Here comes Heinz's big space dump

Only two days after H.J. Heinz Co. announced it was laying off 350 local employees, we now can drop any pretense that there remains any reason to keep calling the building at 339-345 Sixth Ave. the Heinz 57 Center.

Thursday afternoon, the Pittsburgh office of CBRE sent out an email blast marketing 276,705 square feet of office space in Heinz 57 Center for sublease, the space which has been operating as the North American headquarters for Heinz.

That’s an eye-popping amount of space to come on the market and will leave a Heinz office of only roughly one-tenth of that size in the building. Bill Rudolph, a principal for McKnight Realty Partners, which owns the 790,000-square-foot former department store building, told me a few days ago that Heinz leased more than 300,000 square feet there, putting the space Heinz looks to be keeping in the 23,000-plus-square-foot range.

Patrick Gruden and Miles Smith are representing the space for CBRE. I left a voicemail for Gruden after business hours that was not immediately returned.

Beyond the size of the overall block of space, the Heinz sublease offers some other conspicuous features to ponder.

The floor plates are 47,000 square feet in size, making them among the biggest in downtown in space sources indicate will not be easy to subdivide. And there are six floors available.

...

[mattejb]

Someone needs to start a new Pennsylvania ketchup company.

[LMich]

How much will this increase the downtown vacancy rate?

[Jonboy1983]

Originally Posted by DBR96A

I'd make revitalization funds for Wilmerding hinge on disincorporating into North Versailles.

Nah, just across the river/creek (what creek is that anyway?), although that industrial use doesn't look to be going anywhere.

Originally Posted by Evergrey

The vulture capitalists who took over Heinz have quickly put their office space on the market.

http://www.bizjournals.com/pittsburgh/bl...e-comes-the-big-space-dump.html?page=all

Wait, I thought Heinz was supposed to be based in Pittsburgh. This isn't looking like that's the case anymore, is it?

Henry J. must be turning in his grave!

[glowrock]

Originally Posted by Evergrey

The vulture capitalists who took over Heinz have quickly put their office space on the market.

http://www.bizjournals.com/pittsburgh/bl...e-comes-the-big-space-dump.html?page=all

Sounds like Buffett's moving Heinz to Omaha.

Aaron (Glowrock)

[DKNewYork]

Originally Posted by glowrock

Sounds like Buffett's moving Heinz to Omaha.

Aaron (Glowrock)

Berkshire Hathaway is a non-operational partner in this deal. It put up lots of the money but that's the extent of its involvement. If the Heinz HQ moves anywhere, it will be to Miami. 3G Capital, the private equity firm calling the shots now, is based in Sao Paulo, Brazil. Miami would be a shorter, more direct flight. Plus, Burger King, 3G's last big American acquisition, is based in Miami.

[Jonboy1983]

Originally Posted by DKNewYork

Berkshire Hathaway is a non-operational partner in this deal. It put up lots of the money but that's the extent of its involvement. If the Heinz HQ moves anywhere, it will be to Miami. 3G Capital, the private equity firm calling the shots now, is based in Sao Paulo, Brazil. Miami would be a shorter, more direct flight. Plus, Burger King, 3G's last big American acquisition, is based in Miami.

Right, but my understanding is that 3G would keep Heinz' HQ in Pittsburgh, that was part of this equation, wasn't it? If you ask me, 3G is not holding up on their end of the agreement; I see this as a breach of contract, but I guess I'm insane...

[Austinlee]

Originally Posted by Jonboy1983

Henry J. must be turning in his grave!

Of course he is; He is well lubricated in a drum of ketchup. He was embalmed in the stuff.

[themaguffin]

Burger King, 3G's last big American acquisition, is based in Miami.

Hmm, when I was a kid, Burger King seemed to be a relevant, significant fast food chain, second to McDonald's.... now it's less relevant than Arby's.

Now Heinz is more significant to its industry than BK, but this type of detached business making isn't going to be good for Heinz I don't think.

These firms focus on bottom lines without focusing on product it seems, where if they focused on doing business better for long term growth rather than short term gains by cutting, business would be better.

[Steel City Scotty]

A few development notes from my current trip to Pittsburgh...

As I walked along the Allegheny River last night on my way to PNC Park to take in the Pirates game, I noticed that construction is underway on a World War II Memorial, which will be located in front of Stage AE. I might've missed it, but I don't think I've seen this project discussed on these boards before.

Here's more about it:
http://triblive.com/news/allegheny/4313167-74/memorial-war-veterans#axzz2cGFTp7py

Also -- I spent the afternoon at The Waterfront, and I noticed that the building across the street from the Loew's movie theater that has housed several failed restaurants (including "Red, Hot & Blue") over the years is now pretty much gutted.

I asked the woman at The Pennsylvania Wine Cellar (store next door) what was planned for that space, and she told me that Burgatory will be opening soon. This seemingly up-and-coming chain seems to have locations popping up all over the city in the coming months (Market Square, North Shore).

[Jonboy1983]

Originally Posted by Austinlee

Of course he is; He is well lubricated in a drum of ketchup. He was embalmed in the stuff.

Hmm... I would have thought he'd be embalmed in horseradish

Originally Posted by themaguffin

Hmm, when I was a kid, Burger King seemed to be a relevant, significant fast food chain, second to McDonald's.... now it's less relevant than Arby's.

Now Heinz is more significant to its industry than BK, but this type of detached business making isn't going to be good for Heinz I don't think.

These firms focus on bottom lines without focusing on product it seems, where if they focused on doing business better for long term growth rather than short term gains by cutting, business would be better.

Wow, I never thought I'd see the day where I said this, but my personal value of Heinz stock is about to go through the floor. I thought this was going to be good for Heinz, but man did I think wrong!

I guess we're going to see what a ketchup bottle looks like when it has strings attached like a fricking puppet, with 3G and Warren Buffet and company all working as the puppeteers...

[DKNewYork]

Originally Posted by Jonboy1983

Right, but my understanding is that 3G would keep Heinz' HQ in Pittsburgh, that was part of this equation, wasn't it? If you ask me, 3G is not holding up on their end of the agreement; I see this as a breach of contract, but I guess I'm insane...

The sale agreement required that the HQ remain in Pittsburgh. I have no idea is this provision is permanent, nor do I see how this type of provision would be enforceable. That said, the company is very well-run by it 800 Pittsburgh-area employees and 3G would probably not see a lot of benefit in moving the company. Cutting jobs, however, was a given.

Re the Burger King comparison: I brought that up only to point out that Miami, BK's hometown, is a lot closer to Brazil than Pittsburgh. The situations of the two companies could not have been more different at the time each was acquired by 3G. BK had been struggling for years as the number two or three in its industry, all the while losing market share, while Heinz is a much more nimble and profitable firm with strong brands. HNZ has done a pretty good job focusing on growth markets and product lines while also managing its slower-growing larger markets (US and Europe). This is precisely why Berkshire and 3G paid such a hefty premium for the company.

[chiaroscuro]

Originally Posted by BrianTH

That's a good idea. At least having people in such positions thinking about the technology could mean it gets a serious look down the road.

I might note one of the basic problems with introducing the technology into the local planning process is that it is so different in terms of possible routes that there is often no process in place to really consider it in the way it should be considered. So, for example, the technology was actually mentioned in the requests for Oakland Circulator proposals. Unfortunately as far as I can tell that whole process went nowhere anyway, but in general that is a very limiting sense of what the technology could do for Oakland, and in fact thinking about how to expand on that notion was a major part of my inspiration for the map I came up with.

When you weren't looking, Pittsburgh went ahead and added gondolas!

[Steel City Scotty]

Here is a picture of the vacant building at The Waterfront that I mentioned earlier...reportedly being gutted and turned into a Burgatory.



Also -- I drove by the intersection of Murray Avenue and Forward Avenue in Squirrel Hill and snapped a photo of that ugly building that will (hopefully) soon be demolished and turned into something a lot more useful and aesthetically pleasing.



Finally -- I attended my first Pittsburgh Riverhounds soccer game on Saturday night. Here's what the view of the city looks like from the bleachers.

[photoLith]

Crappy iPhone photo of pnc from today.

[Captain Crash]

I Googled around for a bit about Burgatory entering the Waterfront, and found a piece confirming that. Also has quite a few tidbits about new additions to that development:

http://www.bizjournals.com/pittsburgh/news/2013/07/30/burgatory-crunch-coming-to-the.html?page=all

[GeneW]

That corner spot at the Waterfront that Burgatory is taking over seems a little cursed. Over the dozen or so years that the complex as been there it seems to have been closed more than it's been open.

[AaronPGH]

Originally Posted by GeneW

That corner spot at the Waterfront that Burgatory is taking over seems a little cursed. Over the dozen or so years that the complex as been there it seems to have been closed more than it's been open.

If any restaurant can kick that curse, it'd be Burgatory I think. They've really killed it with their brand and made a name for themselves faster than most local chains.