PITTSBURGH | Development Rundown II

[eschaton]

Does anyone know what's going on with the parcel with the old hubcap shop by Doughboy Square? Walnut Capital put up a sign the other week advertising "new construction for lease" even though there is no sign of any new construction there yet.

Doughboy Square is really making a startlingly fast transition now.

[Brentsters]

http://www.bizjournals.com/pittsburgh/pr...ad-helps-solidify-doughboy.html?page=all

There's an RFP out for site demolition.

[Jonboy1983]

Originally Posted by BrianTH

They are certainly set up for that approach currently.



Yep. Picture from inside:


Mellon building by carolclarinet, on Flickr

This is in addition to the rotunda skylight itself:

Thanks for those pics. It would be neat to have this reused as a hotel. With those skylights, that could make for a rather impressive exercise room/spa/pool space or even as ball rooms.

[BrianTH]

There are a lot of pictures of the spaces up there scattered through this (massive) photo set. Under the skylights are two-story atriums with staircases. There is also a ballroom/auditorium up there.

http://www.flickr.com/photos/sproutfund/sets/72157606998202005/







Anyway, I can definitely see all that being used as part of a special hotel.

[markson33]

I can't see the Union Trust building being used as a hotel or residential - the floor plates are too big - and deep. It will do well as an office building. The market is tight enough that it should lease quickly.

[eschaton]

Originally Posted by Brentsters

http://www.bizjournals.com/pittsburgh/pr...ad-helps-solidify-doughboy.html?page=all

There's an RFP out for site demolition.

Thanks. It's remarkable that a stretch of Penn/Butler which was 75% vacant lots in 2011 is going to be 100% built out by 2015.

[photoLith]

Thats really awesome that Doughboy Square development is going through, its amazing that most of that area was all vacant lots just a year ago and look at it now, and dont forget they are also restoring the front of the old Jewish theater across from the WW1 Memorial on Penn Avenue as well. Hell, Butler street west of the Allegheny Arsenal has seen loads of development in just the past year since I moved here, its been amazing to see the transformation. The development has also been good dense development that abuts the sidewalks and semi fits in with its surroundings. I would absolutely love to see someday a full residential/commercial district stretching all the way from downtown to Lville along Butler Street and Penn Ave. It seems that future is inching ever closer.

[BrianTH]

The buyers, and others in the past, have specifically mentioned using the Union Trust Building for residential or hotel as a possibility. My understanding is that the rotunda and the hallways that lead off from the rotunda divide the floors in a way where that could make sense.

[Austinlee]

I personally think it would be a bit of a shame to see the Union Trust go residential. Of all the buildings I've been in downtown, it certainly has a very commercial feel inside. I would personally love to see more of a market/mall on the interior ground floor that more people could enjoy. It's such a cool building. Inside and out, no expense seemed spared in that structure. One of the very, very best in the whole city.

[photoLith]

The union trust building is for sure one of the most spectacularly detailed buildings in the United States and it was designed by a Pittsburgh based architect too. Too bad it's pretty well hidden and hard to photograph well since it's surrounded by buildings taller than it and too bad the guards inside are kinda dickish about letting people photograph the atrium.

[Austinlee]

Originally Posted by photoLith

The union trust building is for sure one of the most spectacularly detailed buildings in the United States and it was designed by a Pittsburgh based architect too. Too bad it's pretty well hidden and hard to photograph well since it's surrounded by buildings taller than it and too bad the guards inside are kinda dickish about letting people photograph the atrium.

Yeah, best angle is from that little park between USX and Mellon.


It reminds me of a Buffalo building; Not that ive ever been to Buffalo, but they have a few of those awesome super detailed robber baron buildings downtown.

[BrianTH]

Expanded article:

http://triblive.com/news/adminpage/5695981-74/building-davis-pittsburgh#axzz2upqZrGIY

“We are evaluating our purchase of the building, regarding its future use and hope to make a decision within a month or two,” said Jonathan Davis, founder and CEO of Boston's The Davis Companies, which bought the Union Trust Building at a sheriff's sale. Davis said he's considering office, retail, residential and hotel development for the property.

“It could be an overwhelmingly awesome hotel space, and I also could see it as a good residential play,” said Edward Shriver, a principal with Strada Architecture, Downtown, who is not associated with the Union Trust sale. Shriver said the building is “more problematic” for office space because of its atrium. “You don't find too many office buildings today with holes in the middle of them,” he said.

I don't think any of those potential upper-floor uses are incompatible with ground-floor retail, although I also don't know if there is a huge market for a lot more retail in that location.

Personally, I am slightly rooting for a hotel just because I think it could be great for promoting Pittsburgh, but anything to get it back to full use would be fine with me.

[markson33]

There are so many issues with converting that building to residential. It would be very costly.

It's got two elevator banks so conceivably they could do it, but office uses are by far the easiest and cheapest solution.

They already have office tenants in the building whose leases aren't up until 2019.

[dfiler]

This discussion spurred my interest in the union trust building.

Apparently it was designed for 240 shops on the first 4 floors and 700 offices on the top 7 floors. That's probably a high number of overly small stores for today's retail environment, but it would still make a wonderful mall. Retail and restaurants on the first two floors seems viable at least.

Union Arcade Building - Archives Service Center, University of Pittsburgh
http://digital.library.pitt.edu/images/pittsburgh/unionarcade.html

[BrianTH]

Originally Posted by markson33

They already have office tenants in the building whose leases aren't up until 2019.

The major tenant with a 2019 lease, Siemens, has been trying to get out of that lease. I suspect negotiating an early exit is feasible.

Generally, from what I have been told the new owners are going to have to make a major investment for any purpose, including office. Office could still be cheapest, but these days it appears financing for residential or hotel is nonetheless easier to get. And local experts like Shriver could well be correct about the inherent problems with marketing it as an office building.

I also suspect the key to a hotel project would be signing up a luxury brand/operator, which would merit a significant investment and presumably make it easier to finance. Indeed, I could imagine that using this building could actually be a relatively efficient way for such a brand to gain entry into the Pittsburgh market (assuming they saw an opportunity here).

[Evergrey]

Originally Posted by Austinlee

It reminds me of a Buffalo building; Not that ive ever been to Buffalo, but they have a few of those awesome super detailed robber baron buildings downtown.

Good call. It is very Buffalo.

[bmust71]

All this talk on the Union Trust Building makes me wonder how Koppers building is doing after being bought not too long ago. Anyone know if they have filled up space recently?

[Wiz Khalifa]

Originally Posted by BrianTH

The major tenant with a 2019 lease, Siemens, has been trying to get out of that lease. I suspect negotiating an early exit is feasible.

Generally, from what I have been told the new owners are going to have to make a major investment for any purpose, including office. Office could still be cheapest, but these days it appears financing for residential or hotel is nonetheless easier to get. And local experts like Shriver could well be correct about the inherent problems with marketing it as an office building.

I also suspect the key to a hotel project would be signing up a luxury brand/operator, which would merit a significant investment and presumably make it easier to finance. Indeed, I could imagine that using this building could actually be a relatively efficient way for such a brand to gain entry into the Pittsburgh market (assuming they saw an opportunity here).

It seems like to me that the best reuse for this awesome building would be a mixed development. Seeing those pictures of the Sprout event in 2008 makes me realize that those amazing atriums, theater and rotunda should all remain publicly accessible.

The lower floors could stay as office or even residential, but the top floors would make a fantastic small luxury boutique hotel/event space that could be rented out for weddings, small conferences, meetings, and other upscale gatherings.

This building is too much of a city treasure to become a completely sealed-off privately owned and limited access building, and should not be redeveloped as such.

[Jonboy1983]

Originally Posted by BrianTH

The major tenant with a 2019 lease, Siemens, has been trying to get out of that lease. I suspect negotiating an early exit is feasible.

Generally, from what I have been told the new owners are going to have to make a major investment for any purpose, including office. Office could still be cheapest, but these days it appears financing for residential or hotel is nonetheless easier to get. And local experts like Shriver could well be correct about the inherent problems with marketing it as an office building.

haven't the current/previous owners been trying to market this as an office building? Other than Siemens and a few other tenants, this building is mostly empty, isn't it? I was in that building several years ago, and even then I've been to more cemeteries that had more life than that building at the time...

I also suspect the key to a hotel project would be signing up a luxury brand/operator, which would merit a significant investment and presumably make it easier to finance. Indeed, I could imagine that using this building could actually be a relatively efficient way for such a brand to gain entry into the Pittsburgh market (assuming they saw an opportunity here).

Luxury brand/operator, as in Ritz Carlton or Four Seasons? Considering the ornate architecture both inside and out I could not agree more! I'd love for this to be used as a luxury hotel. I don't see it being that much of an undertaking. Well I do, but everything requires cost and time, but I think this is something doable...

[eschaton]

Originally Posted by photoLith

Thats really awesome that Doughboy Square development is going through, its amazing that most of that area was all vacant lots just a year ago and look at it now, and dont forget they are also restoring the front of the old Jewish theater across from the WW1 Memorial on Penn Avenue as well. Hell, Butler street west of the Allegheny Arsenal has seen loads of development in just the past year since I moved here, its been amazing to see the transformation. The development has also been good dense development that abuts the sidewalks and semi fits in with its surroundings. I would absolutely love to see someday a full residential/commercial district stretching all the way from downtown to Lville along Butler Street and Penn Ave. It seems that future is inching ever closer.

My guess is the next Lower Lawrenceville project will be here. One remuddled house which owns two vacant side yards, and a small gravel parking lot (owned by someone else). Combine the parcels, knock down the house, and you fill in a major gap in the street wall.

Of course, the Circle K at the corner of Butler and 39th is also a likely suspect. As is retrofitting the warehouse which fronts on Butler and 37th to have first-floor retail.