PITTSBURGH | Development Rundown II

[Evergrey]

http://www.bizjournals.com/pittsburgh/bl...prospects-for-southern-beltway-spur.html

Jun 5, 2014, 1:36pm EDT

Renewed prospects for Southern Beltway spur development hopes for Washington County

Real estate professionals in Washington County are beginning to look at the prospects of a new 13-mile Southern Beltway bringing development potential in a region burgeoning with business expansion.

In a market for industrial space that only offers 7 percent or 8 percent vacancy, R.T. Walker, a vice president for the energy facilities group of CBRE who specializes in working with oil and gas firms coming to the region for the Marcellus, described the availability of space for such companies as at an all-time low and is hopeful the eventual construction of the Southern Beltway will help add supply.

“It’s going to open up a lot of accessible land and we’re really excited about that,” said Walker.

Walker was one of five participants who participated in a Bisnow panel discussion about the future of Washington County and Southpointe. The others included Lucas Piatt, president and COO of Millcraft Investments, one of the founding developers of Southpointe, Gary M. Holloway, president of GMH Capital Partners, which is building a new 360-plus-unit apartment complex at Southpointe, and Jim Scalo, president of Burns & Scalo Real Estate Services, which is building out the new Zenith Ridge office project at Southpointe.

Dusty Kirk, a partner with Reed Smith, moderated a wide-ranging discussion that explored the successful development of Southpointe over its history, the convergence of development between Southpointe and Racetrack Road, the prospects for where growth will go in the future as well as perennial issues such as financing, transportation, infrastructure funding and taxes.

While criticized by some for being too large an investment for too few travelers, the Southern Beltway is expected to be a major development for Washington County. The plan calls for an extended 13-mile stretch of highway from Robinson Township at Route 22 to the Allegheny County-Washington County border that would result in a 15- to 20-minute drive from Southpointe to the Pittsburgh International Airport. It's a $550 million infrastructure project that has new life after the state passed a $2.3 billion transportation bill late last year.

Jim Scalo noted how in the early stages of Southpointe the project sat dormant until an interchange was built from the highway, acknowledging the relationship between development and infrastructure.

“What I’ve learned is transportation brings jobs,” he said. “Jobs don’t bring transportation.”

Lucas Piatt, whose family’s company still has 400,000 square feet of holdings at Southpointe as Millcraft has shifted focus to developing in downtown Pittsburgh, sees a greater need for public transportation in Washington County as well as a regional approach to light rail. He noted how Southpointe can at times be as gridlocked by traffic as entering the city.

...

[BrianTH]

Awesome--$550M so one set of developers can profit rather than a different set of developers.

[BrianTH]

Peduto has apparently taken "alternative development plans to save the Pennsylvania Railroad Fruit Auction & Sales Building, a neighboring riverfront development plan proposed by the Buncher Co., and the Allegheny River Green Boulevard plan" to the Mayor's Institute on City Design for discussion:

http://www.bizjournals.com/pittsburgh/ne...perts-studying-strip-district-plans.html

It is nice he is thinking of all this in an integrated way, and insight from outsiders couldn't hurt . . . it is a pretty interesting program in general:

http://www.micd.org/

The Mayors’ Institute on City Design is a National Endowment for the Arts leadership initiative in partnership with the American Architectural Foundation and the United States Conference of Mayors. . . . The MICD achieves its mission by organizing sessions where mayors engage leading design experts to find solutions to the most critical urban design challenges facing their cities. Sessions are organized around case-study problems. Each mayor presents a problem from his or her city for the other mayors and designers to discuss. . . . Each two and one-half day session is limited to less than twenty participants, half mayors and half a resource team consisting of outstanding city design and development professionals. Mayors present a range of challenges, including waterfront redevelopment, downtown revitalization, transportation planning, and the design of new public buildings such as libraries and arts centers. Following each presentation, mayors and designers identify important issues, offer suggestions, and discuss potential solutions. The interchange sparks lively debate, opens new perspectives, and generates creative ideas.

[Gee Whiz]

I was looking at recent updates on the website of the Pittsburgh Downtown Partnership(PDP). They had a list of all of the new housing developments Downtown either under construction or proposed. One that got my attention was "200 units at Cultural Trust Site." This is obviously the site of the former Riverparc proposal from 2006. This site as many may know is bordered by Fort Duquesne Boulevard, 7th, 8th and 9th Streets. I guess I was wondering if this 200 units is something separate and new from the original proposal or just speculation, since 200 units was proposed eight years ago the Cultural Trust still intends to do so according to the PDP. I have not heard a thing form the Cultural Trust concerning this site. There was supposed to have been a hearing this past February with Concord-Eastridge, the original developer, and the Trust, but I did not hear a thing about it. Anyway, the Encore on 7th is 151 units and 18 stories high. A 200 unit building would be 25 stories or more if the units are similar to the ones at the Encore and if the 200 units is indeed in a single building. I was just wondering if anyone has heard or has any insight as to what this means from the PDP. The Cultural Trust has been pretty hush hush about this site, if not downright lax when one considers the value of this site and the demand for housing Downtown.

[Jonboy1983]

Originally Posted by Evergrey

http://www.bizjournals.com/pittsburgh/bl...prospects-for-southern-beltway-spur.html

I like what Lucas Piatt has reportedly told the Pittsburgh Business Times, saying that Washington County needs some improved transit infrastructure, particularly in rail. I'd like to see the West Busway extended down to South Pointe, and/or I'd like to see the rail line running from near Washington through Bridgeville and Carnegie to Downtown function as a commuter rail line. I think either one could be a possibility...

[Minivan Werner]

A lot of these highway projects seem really redundant.. at least when you look at them on a map. The Mon-Fayette Expressway essentially does the same job as I79 only with tolls, and the Southern Beltway seems like it's going to travel too close to parts of I70 to be worth while.

If you want to build new highways, that's fine, but I think eliminating others should also be considered. I70 between Washington and New Stanton is sub-standard, so if you merge I70 with the Southern Beltway (and decomission or downgrade the existing part) you'll have more traffic and maybe even more federal dollars to fund it.

Even still, that $550 million would probably be better off going towards mass transit.

[popstar]

Wasn't the zoning hearing concerning the lot formerly known as babyland and the shithole across the street tonight? Any news?

[Evergrey]

http://www.post-gazette.com/business/201...-on-Macy-s-building/stories/201406060108

Developer closes in on Macy's building

By Mark Belko / Pittsburgh Post-Gazette

The talk at Macy's Downtown on Thursday was not so much about Father's Day sales or new fall fashions as it was about plans to turn much of the venerable old building with the famous clock into residences.

Philadelphia developer Core Realty has reached an agreement to buy the 13-story building on Smithfield Street with the intent of converting all but four floors into apartments, the Pittsburgh Post-Gazette has learned.

As part of the sale, Macy's department store would stay, although the number of floors devoted to retail would be shrinking once again. The store, once a 12-floor behemoth, is expected to be housed on the building's first four floors, minus the mezzanine level, which would be closed and used as an entrance for residents.

Three years ago, Macy's cut the number of floors in half, consolidating all retail, including furniture, on the first six floors of the building, plus the mezzanine.

The proposed transaction, which has yet to close, would end a four-year quest by Macy's to sell the property, a Downtown landmark that has served generations of Pittsburghers who have shopped its retail floors, visited with Santa or marveled at its Christmas window displays, eaten at its restaurants, or had their hair styled at one of its salons.

Macy's spokesman Jim Sluzewski wouldn't say Thursday whether the building is under agreement to be sold.

...

[Evergrey]

Interesting to finally hear the architect weigh in...

http://triblive.com/news/allegheny/6214401-74/center-hotel-980#axzz33pVMZl6L

Former contracting supervisor says August Wilson Center in Pittsburgh can 'absolutely' support hotel

By Natasha Lindstrom

Published: Thursday, June 5, 2014, 10:57 p.m.
Updated 1 hour ago


The August Wilson Center for African American Culture “absolutely” should be structurally sound enough to support a 10-story hotel atop its existing Downtown building, the project's former contracting supervisor said on Thursday.

“The structural integrity of this building is like one that would be built in California,” said Louis Lannutti, who supervised the $40 million project in 2008 while working for Sterling Contracting LLC. “The kind of columns and steel beams that were included as extra supports would be able to withstand earthquakes and hurricanes that we probably would never experience here in Pittsburgh.”

The cultural center's original plans called for an eventual second phase that would include the build-out of a hotel, condominiums or — if the center proved extraordinarily successful — a few more stories of high-ceiling exhibition space, according to city Bureau of Building Inspection records and the architect, Allison Williams.

But less than five years since the center's opening, a court-appointed receiver is trying to strike a deal with a New York developer to buy the entire building and its air rights for $9.5 million, a deal that hinges on the possibility of a hotel. The goal is to avoid a Dollar Bank foreclosure on a center built with at least $17.4 million in taxpayer money.

Allegheny County Common Pleas Judge Lawrence O'Toole last week approved the preliminary purchase bid by 980 Liberty Partners, whose investors are overseeing an engineering study to determine if their plan to build the 200-room hotel atop the two-story, boat-shaped structure is feasible.

Williams, design director for AECOM's U.S. West region in San Francisco, said 980's plan is larger than the 110-room boutique hotel she anticipated when she designed the center. She envisioned a 100-foot tower that could connect to a five-star restaurant on the rooftop — “something keeping with the center's mission, not a great, big chain hotel.”

“The addition of the tower on top is a really important piece of the completion, and I miss that it's not there, but it also should not overwhelm the center or be greedy about the availability of air rights,” Williams said. “The outcome here is so mired in the financial difficulties, and that I think is changing the dynamic of maybe what the right thing to do with the space is.”

...

[Evergrey]

http://triblive.com/news/allegheny/6073689-74/residential-development-north#axzz33pVMZl6L

Timing might be right for North Shore residential development



By Tom Fontaine

Published: Thursday, June 5, 2014, 11:50 p.m.
Updated 32 minutes ago


A decision on starting long-awaited residential development between Pittsburgh's two North Shore stadiums should be made by the end of the year, after more than a decade of focusing on office and commercial growth, a developer said on Thursday.

“We think it's an opportune time for residential development. That wasn't the case when we started,” said Barry Ford, president of development for Columbus, Ohio-based Continental Real Estate Cos.

Continental has exclusive development rights between PNC Park and Heinz Field under a 2003 agreement with the Pittsburgh Stadium Authority, Pirates and Steelers. Continental built two office buildings with street-level restaurants, a hotel and the Stage AE entertainment venue, and another two office buildings are under construction, in projects totaling $136 million.

“The housing market wasn't there when we started, but we really needed to seed (the land between the stadiums) with something. At the time, office development was the most logical way to do that,” Ford said.

In some of Pittsburgh's other high-profile, mixed-use projects, developers are planning residential development in early phases of work. Although some developers say that provides a built-in population to support planned commercial growth, the approach is attractive for another reason: Residential demand is booming.

...

[BrianTH]

That's a slew of good news (although I wish Continental would stop dragging its free so much).

In fact, I think what to do with the upper floors of the Kauffman building was one of this first things I ever bickered about on this forum. I'm kind of curious how they will handle the annex for residential, and adding underground parking sounds expensive, but full speed ahead if they think they can do it.

I'm glad to get more details on what was originally planned for the AWC air rights. A 10 story tower (with one floor devoted to a restaurant) for 110 rooms suggests something around 16-17 stories for a 200 room hotel tower. I think that would be pretty awesome.

[BrianTH]

$88 million in New Market Tax Credits has been awarded to local entities (although I don't think the PNC entity will allocate them all here, but some probably will be):

http://www.bizjournals.com/pittsburgh/ne...ranted-88-million-in-new-market-tax.html

These can be very useful and I believe have been included in the financing for a lot of recent projects.

[chucka]

It will be interesting to find out how they plan to add apartments to the Macy's building. I hope they completely renovate the retail space on the first four floors and replace the elevators. Additionally, they really should improve the pedestrian tunnel on Cherry Way.

[SkyPittsburgh]

New Planning Commission Presentation is up:

1. Bakery Square Road Explanation. Also contains a lot of interesting and informative drawings.
2. Embassy Hotel at 535 Smithfield.
3. 709 Penn Avenue Apartments

http://apps.pittsburghpa.gov/dcp/schedule51/presentation-51-594.pdf

[BrianTH]

Originally Posted by chucka

It will be interesting to find out how they plan to add apartments to the Macy's building. I hope they completely renovate the retail space on the first four floors and replace the elevators. Additionally, they really should improve the pedestrian tunnel on Cherry Way.

In my wildest dreams, they tear down the annex (also responsible for the pedestrian tunnel, and I believe the mezzanine level the article suggested Macy's wouldn't use), and build a new residential tower in its place. As is, it is just a big windowless box, and it could well be cheaper to just replace it rather than try to renovate it. Maybe add a cool skybridge up above the fourth floor.

The other reason this seems plausible to me is I am not sure how they get enough light into the upper floors of east side of the old buildings with the annex glued to the back. This is the best image I could quickly find:

https://goo.gl/maps/AWrBY



Edit: It also occurs to me that if the annex were demo'ed, it might be a lot easier to add some underground parking before building something new in its place.

[Evergrey]

Originally Posted by SkyPittsburgh

New Planning Commission Presentation is up:

1. Bakery Square Road Explanation. Also contains a lot of interesting and informative drawings.
2. Embassy Hotel at 535 Smithfield.
3. 709 Penn Avenue Apartments

http://apps.pittsburghpa.gov/dcp/schedule51/presentation-51-594.pdf

The Ft. Pitt Blvd Holiday Inn doesn't look too offensive... certainly better than a similar proposal from a couple years ago.

[eschaton]

Wow, lots of cool info about Bakery Square 2.0

I like that it looks like they eventually plan on building a garage behind the current Bakery Square, and (it looks like) eventually building some new structure on the current surface lot which fronts on Penn Avenue.

On the other hand, there isn't enough connectivity on the back end of that site. The street some of the townhouses front on looks like it will piddle out into a dead end without connecting to Rennig Street/Social Way. This is what the Village of Shadyside did, only in reverse, and I think not allowing residents a back way to drive out of the complex is poor urban design.

[SkyPittsburgh]

Originally Posted by eschaton

Wow, lots of cool info about Bakery Square 2.0

I like that it looks like they eventually plan on building a garage behind the current Bakery Square, and (it looks like) eventually building some new structure on the current surface lot which fronts on Penn Avenue.

I was under the impression that that garage may also support a Bakery Square Busway stop, as well as the E. Liberty and Homewood ones.

[BrianTH]

Originally Posted by SkyPittsburgh

New Planning Commission Presentation is up:

1. Bakery Square Road Explanation. Also contains a lot of interesting and informative drawings.

Anyone know why the massing diagram on Page 3 shows two 85' tall structures on either side of the entrance to BKSQ1.0? I'd love to see that happen but it is nowhere else in the plans (Edit: another poster above also spotted this.)

2. Embassy Hotel at 535 Smithfield.

If I understood it correctly, they are doing a lot of nice restoration work.

I was also interested to see the plan is to make Oliver 2-way. It also looks like they are handling the new loading dock on Oliver in a reasonable way. Finally, I like that the passenger loading area is on Sixth, because that means it will not interfere with transforming Smithfield.

[BrianTH]

Originally Posted by Evergrey

The Ft. Pitt Blvd Holiday Inn doesn't look too offensive... certainly better than a similar proposal from a couple years ago.

I actually quite like how the new design blends into that area. That odd little corner of Downtown has a distinct vibe which could be an asset as that area revitalizes (lots of other hotel and apartment projects are in the works).