PITTSBURGH | Development Rundown II

[Evergrey]

http://www.bizjournals.com/pittsburgh/bl...er-alcoa-building-to-be-redeveloped.html

Former Alcoa Building to be redeveloped

Jul 14, 2015, 7:43am EDT
Patty Tascarella
Pittsburgh Business Times

First Niagara Financial Group’s commercial real estate group has closed on a $40 million loan with PMC Property Group for the continued redevelopment of a mixed-use property in downtown Pittsburgh formerly known as the Alcoa Building.

The 30-story property, located at 425 Fifth Ave., will include 241 class-A, multi-family units, 133,000 square feet of office space and 6,200 square feet of retail including two restaurants.

Completed in 1953, the building was originally the headquarters of Alcoa. Its distinctive character will be maintained, under the direction of Philadelphia-based PMC, the developer, and architect, Pittsburgh-based Strada. Construction is expected to finish by March.

...

[BrianTH]

Huh, I thought they were already working on the former ALCOA HQ--perhaps they were, but still needed to complete financing.

Random aside: that building was presented as a residential building in the movie "She's Out of My League" (still for my money one of the best "showcase" movies for Pittsburgh), so it amuses me that in this case reality is now imitating fiction.

[Evergrey]

Originally Posted by BrianTH

Huh, I thought they were already working on the former ALCOA HQ--perhaps they were, but still needed to complete financing.

They were... poor headline by Biz Times. This is just another phase in financing.

[JVC]

Originally Posted by BrianTH

Again, as we have been noting, "real estate holding company sells huge historic downtown property to developer looking to do mix of residential, hotel, and retail" is not at all a bad story.

"story" meaning fairy tale

[greg42]

Originally Posted by GeneW

I guess. I've been to the Ross Park Mall once in the last twenty years but I'm not a big brick-and-mortar shopper in general. To be fair, I live within walking distance of the Downtown Macy's and haven't been in there for over a decade either. It's too convenient to shop online to every want to go and fight mall traffic ever again.

Definitely. Regardless of where I've lived in the north it's been some years since I've frequented the malls. I try to avoid it as much as possible. And we've sworn off Macy's really since sometime several months ago I believe so one more reason not to go to mall.

Originally Posted by Evergrey

As a near-Downtown resident... I have no reason to go to Ross Park. I've been there once... to take a walk when all the sidewalks were iced over a couple winters ago. McKnightmare holds no appeal for me other than Taj Mahal.

And there's probably somewhere else you can go and not have to be on that road (although Taj Mahal is pretty good). For me, the upper end of McKnight is useful (my office is now in the Wexford Flats so I can reach upper McKnight pretty easily), but for someone in downtown vicinity, it would not be of any use because the stuff I'm thinking of (Trader Joe's, a good pet food store) is duplicated well enough elsewhere in the city, either the same distance or closer.

Originally Posted by Austinlee

The only sad thing is that is has been there forever. In reality, department stores are decades, perhaps a half century past their relevance.

Fixed that for ya. ;-) Okay, maybe in the more general sense not a half century, but in terms of the traditional what we think of as department store, even in the burbs it is well past its relevance IMO, maybe a decade or so. The only thing that keeps something like Macy's in business is that a certain portion of its product mix doesn't readily fall into something that other stores carry or do well. But you could throw out well over half of what's in Macy's as duplicated by other types of stores that work better. Maybe I am being conservative even in that. I know that as a 40ish male who dresses up for nothing, the only thing I've bought in Macy's recently (2 years ago) was a suit. And I could have gone somewhere else even for that (although the guy that helped me at Ross Park was top notch, I will say that).

[glowrock]

Originally Posted by JVC

"story" meaning fairy tale

Now, now there, JVC. It's still possible to refrain from your troll ways! It's going to be a long, slow process, but it really can be done!

Aaron (Glowrock)

[BrianTH]

Ignore function still working fine.

[greg42]

Originally Posted by BrianTH

Again, as we have been noting, "real estate holding company sells huge historic downtown property to developer looking to do mix of residential, hotel, and retail" is not at all a bad story.

Indeed, that's true. The only thing that really gave me pause is losing something that would be useful for downtown residents, but when I thought about it, I'm thinking that's stilly. How often would a downtown resident truly need Macy's? They wouldn't. They'd be better served by something that would get more frequent use, such as grocery, Target, whatever. Not that this is what should go into the space. It is just how I processed the thinking that no, a department store loss is not really bad for downtown at all.

I don't entirely discount losing the tradition but it's just not one that's really sustainable anyway. At least we are losing it with a development plan in place! Much better than closing up leaving an empty building.

[SWPA]

I agree. This building already has a plan for re-use. When Gimbels closed in 1986, it sat empty for several years until a developer could be found. The Macy's building was severely underutilized in the last few years. A new concept that combines some good retail, apartments, hotel and even a bowling alley would re-activate that entire block.

Hopefully, the new developments along Wood Street and Point Park U. can spread toward Smithfield.

I'm still not sure if a decision has been made about the Frank & Seder building. Still looking for an anchor tenant?

[BrianTH]

Originally Posted by greg42

It is just how I processed the thinking that no, a department store loss is not really bad for downtown at all.

I don't entirely discount losing the tradition but it's just not one that's really sustainable anyway. At least we are losing it with a development plan in place! Much better than closing up leaving an empty building.

Agreed all around. And I am not one to think nostalgia is bad, nor for that matter do I want people to forget the history of this wonderful building complex. But this is very much a one door closing, one door opening sort of situation, and the second door is the one you want open if you care about the future of Downtown Pittsburgh.

[Evergrey]

Is a bowling alley really a sustainable concept? Bowling seems like an activity that's been in long-term decline.

[BrianTH]

Originally Posted by SWPA

This building already has a plan for re-use. When Gimbels closed in 1986, it sat empty for several years until a developer could be found. The Macy's building was severely underutilized in the last few years. A new concept that combines some good retail, apartments, hotel and even a bowling alley would re-activate that entire block.

It is interesting that ultimately many of the former department store buildings have found very productive re-use. That even includes buildings like the Mellon National Bank, which was severely damaged by Lord and Taylor but now has been brought back as PNC offices.

Currently, one notable counter-example is the Saks building, but that is because that building sucks. And the plans for redeveloping that property aren't bad (controversy about parking element aside).

The other notable counter-example is the Frank & Seder building, but that is because Oxford wants the land for a big project. Speaking of which . . .

I'm still not sure if a decision has been made about the Frank & Seder building. Still looking for an anchor tenant?

So the way I understand it, Oxford has in fact decided to go with the skyscraper, but probably won't be starting on the project until they get an anchor tenant, unless perhaps market conditions get to the point they want to do it on spec.

So basically, it is just going to sit there until they do the project, unless something else intervenes.

[akPITT207]

I really like the idea of a bowling alley as one of the tenants for this space. Cleveland has some nice urban bowling alleys, one of them is in the heart of Downtown. I think it could work if marketed properly. It would be nice to see more of this type of entertainment in Downtown Pittsburgh, along with the movie theater that is in the works. Traditional theater and symphony shows are nice and it seems relatively healthy here buy let's appeal to a wider demographic with Downtown entertainment.

[Evergrey]

I think bowling alleys would be a huge waste of prime urban space... and would likely fail quickly. I think Core blurted it out when they realized they suddenly had to do something with an additional 4 stories of space.

Bowling alleys and bowling leagues have been in steep decline for decades... why replace one disappearing concept (department store) with another (bowling alley)?

...and Downtown of all places certainly wouldn't have the demographic to support bowling leagues, the lifeblood of an alley. Bowling is more of a N. Versailles or Canonsburg activity. And those people aren't going to drive into and pay for parking Downtown to bowl.

http://www.bloomberg.com/bw/articles/2014-07-10/america-s-vanishing-bowling-alleys

[eschaton]

Originally Posted by Evergrey

I think bowling alleys would be a huge waste of prime urban space... and would likely fail quickly. I think Core blurted it out when they realized they suddenly had to do something with an additional 4 stories of space.

Maybe they could put a drive-in theater in a nearby parking garage as well?

[DKNewYork]

Originally Posted by SWPA

I'm still not sure if a decision has been made about the Frank & Seder building. Still looking for an anchor tenant?

A few weeks ago I was told that Oxford did not even have a prospect for an anchor tenant at 350 Fifth. And with downtown's vacancy rate projected to rise, I can't see Oxford starting construction without a signed lease. It's too conservative a company. Maybe this delay will prompt Oxford to revisit the renovation of the F&S building, which was one of its original options for the site. I know some people doubted that Oxford made much of an effort to land tenants for a rehabbed F&S, but with little chance they will break ground on their Urban Genius building anytime soon, why not reconsider a rehab? Isn't the building sitting there empty? I think so.

[themaguffin]

"story" meaning fairy tale

[akPITT207]

Bowling alleys may be in decline but if they create a unique environment for the interior and throw in a swanky bar or dining room it could work. It doesn't have to cater to the bowling league types. I see what you are saying but I was enamoured by the Corner Alley in Cleveland. We went in for dinner but decided to stay for the bowling, and it was packed in there, mostly young professional types. It could be a mixed use concept.

[Minivan Werner]

Bowling seems like a weird choice compared to things that might be more desirable for a commercial area and with less upkeep... like racquetball courts or a gym/fitness center.

[Private Dick]

Big cities have them...

http://www.bowlluckystrike.com/locations/


I think this is more the type of "bowling alley concept" that would be fitting in downtown Pittsburgh, certainly not the bowling and beer yinzer league lanes.

I've been to the locations in DC and Miami... fun, good crowd, hot waitresses that bring you drinks and pretty good food while you get drunk and bowl.