PITTSBURGH | Development Rundown II

[BrianTH]

Originally Posted by Urbana

Oxford's building at the PTC is good to go.

The PTC is disappointing in many ways by modern standards. But within those general issues, that seems like a reasonable building.

[Evergrey]

Was the Big Heart sign ever erected? I'll miss that name... perhaps it will remain the Big Heart division of J.M. Smucker Group.

[BrianTH]

Originally Posted by Evergrey

Was the Big Heart sign ever erected? I'll miss that name... perhaps it will remain the Big Heart division of J.M. Smucker Group.

It would indeed be a shame if we never got to enjoy this:

[greg42]

Originally Posted by BrianTH

Smucker's is buying Big Heart Pet Brands, which used to be Del Monte:

http://www.bizjournals.com/pittsburg...-for-5-8b.html

I actually wouldn't mind a big Smucker's sign on the North Shore.

Geez, how many times is that stuff going to change hands? So many buyouts and spinoffs so quickly with that division.

I suspect it could retain the name under the new corporate umbrella. Smucker doesn't have an existing pet food division, so it would make sense for that division to have a name, rather than putting their own name on all the pet brands.

Love the "know for its jams" bit, as if that's the only thing they make. Just like any big food company, Smucker markets a number of different brands you may know, in various types of foods. Well, the good thing for Pittsburgh is since they don't in fact have an existing pet division, the office here may not change anytime too soon. Eventually, though, the corporate overlords may decide they want everything under one roof in Ohio or something. I don't know what Big Heart is actually doing out of the Pittsburgh office. It's not the HQ, and I don't think they manufacture anything in this area, so it could be at risk.

[Evergrey]

Originally Posted by greg42

Eventually, though, the corporate overlords may decide they want everything under one roof in Ohio or something. I don't know what Big Heart is actually doing out of the Pittsburgh office. It's not the HQ, and I don't think they manufacture anything in this area, so it could be at risk.

Or perhaps Smuckers would like to relocate its HQ from podunk Orrville, OH to nearby metropolitan Pittsburgh now that they have a significant presence here? Be much more attractive HQ in terms of logistics and talent attraction... especially considering they're so much more than jams.

[Evergrey]

http://www.bizjournals.com/pittsburg...-of-strip.html

Fellheimer takes over conversion of Strip District's tallest building

Feb 4, 2015, 1:32pm EST

A new developer has taken over the residential conversion of the Penn Rose Building, a narrow, 88,000-square-foot high rise near the heart of the Penn Avenue business district in the Strip District.

Ethan Fellheimer, president of Red Rocks Group, announced at a developers forum hosted by the Pittsburgh Downtown Community Development Corporation that his firm has bought the building and plans to turn the mature office property into an apartment building of 60 to 70 units.

"I'd been looking at the building for two years," Fellheimer said.

The project was previously under development by downtown-based Zamagias Properties, but Red Rocks bought the property out of sheriff's sale in October and expects to push forward with a plan to convert the 11-story building into a mix of one- and two-bedroom apartments.

Fellheimer also is considering installing a swimming pool on the roof along with other amenities.

...

[BrianTH]

Originally Posted by greg42

I suspect it could retain the name under the new corporate umbrella. Smucker doesn't have an existing pet food division, so it would make sense for that division to have a name, rather than putting their own name on all the pet brands.

Certainly the actual brand names rarely if ever change--that is a large part of what they are buying:

I'm not sure about "Big Heart" however--I believe that name was invented less than a year ago, and there may not be much value in preserving it.

I don't know what Big Heart is actually doing out of the Pittsburgh office. It's not the HQ, and I don't think they manufacture anything in this area, so it could be at risk.

Apparently they do have a factory in Bloomsburg, but that is way out between State College and Scranton.

Anyway, according to this article from when Del Monte spun off canned foods to concentrate on pet foods . . .

http://triblive.com/business/headlin...monte-business

“The majority of our Pittsburgh employees, including several members of the executive leadership team who are based in Pittsburgh, and the business support services they provide, will continue to be an important part of Del Monte Food's business strategy moving forward,” said Del Monte Foods spokeswoman Chrissy Trampedach, in a statement. . . . Del Monte Foods has about 330 employees in the Del Monte Center on Pittsburgh's North Shore, many in accounting, finance, information technology and other service jobs shared by both businesses.

. . . West told employees that the pet food business will still need their support and that Del Monte Foods remains committed to Pittsburgh. “The pet business represents over half of the revenue and profits of Del Monte Foods and will exist as a standalone business supported by our Pittsburgh location upon the close of the sale of the Consumer Products business to Del Monte Pacific,” Trampedach said.

I'd call that "back office" stuff, and it is understandable why Big Heart would continue to do that stuff in Pittsburgh rather than move it to San Francisco--Pittsburgh is going to be a cheaper place to run such a back office. Orrville is a different matter, of course, but it might well be a stretch to think you can move a major back office to a place like that. Nonetheless, I'd think consolidation of some sort would be possibility.

[BrianTH]

Originally Posted by Evergrey

http://www.bizjournals.com/pittsburg...-of-strip.html

That seems like good news. Their Aria Cultural District Lofts project looks pretty nice.

[greg42]

Originally Posted by Evergrey

Or perhaps Smuckers would like to relocate its HQ from podunk Orrville, OH to nearby metropolitan Pittsburgh now that they have a significant presence here? Be much more attractive HQ in terms of logistics and talent attraction... especially considering they're so much more than jams.

Not a bad thought really (not sure if serious, I'll reply anyway), but company is run by 4th and 5th gen family members. It is public (not sure since when), but presumably there's a large percentage of family ownership of the stock given the leadership. It isn't likely to up and move after almost 120 years. Probably stranger things have happened, but uprooting the whole thing from the sticks now is least likely of the scenarios for Pittsburgh. Best case is likely to be expansion of the current pet food back office.

[BrianTH]

Originally Posted by greg42

Not a bad thought really (not sure if serious, I'll reply anyway), but company is run by 4th and 5th gen family members. It is public (not sure since when), but presumably there's a large percentage of family ownership of the stock given the leadership. It isn't likely to up and move after almost 120 years. Probably stranger things have happened, but uprooting the whole thing from the sticks now is least likely of the scenarios for Pittsburgh. Best case is likely to be expansion of the current pet food back office.

Holding aside the possible negative implications for the office, I wasn't kidding about not minding a Smucker's sign, largely for this reason. It is one of those cool old regional company names, sort of like Heinz in fact, that I wouldn't mind being represented here prominently.

[Evergrey]

Biz Journals has a couple videos from a panel discussion that took place on Downtown Pittsburgh's future...

http://www.bizjournals.com/pittsburg...-10-years.html

Piatt calls 20,000 residents downtown in 10 years 'absolutely achievable' (Video)

... which must explain why Piatt's Saks redevelopment proposal is so ambitious...


Piatt: "Point Park Playhouse will bridge an important gap in the fabric of Downtown."

btw... 20,000 residents in our .68 sq mile downtown would be a population density of about 30,000/sq mi.

[BrianTH]

Again, I always like to see developers talking about this:

Yet Falbo sees opportunity in smaller buildings for projects with tax credits for affordable housing and sees a downtown residential market still barely touched for apartments at affordable rents.

"I don't think we've touched the lower end of the market. I think that's possible in some of these smaller buildngs around the city," said Falbo. "I think that market is untapped because the younger people and the service people want to be downtown. They just can't afford it."

[Austinlee]

Originally Posted by BrianTH

That seems like good news. Their Aria Cultural District Lofts project looks pretty nice.

Those do look gorgeous.

http://www.ariaon7th.com/

[Steel City Scotty]

Originally Posted by BrianTH

So this old factory complex in Homewood is well into the process of being torn down, presumably to make way for the new Animal Rescue League complex.

I'm sad to see it go--it was a very cool historic industrial complex which I wish had been creatively reused in some way.

I'm pretty sure that's the building that used to house East End Brewing Co.

The business only took up a small portion of the complex, but it brought a lot of people though those old doors for a number of years (before the brewery relocated to Larimer in 2012).

[Jonboy1983]

Originally Posted by Evergrey

Biz Journals has a couple videos from a panel discussion that took place on Downtown Pittsburgh's future...

http://www.bizjournals.com/pittsburg...-10-years.html

Piatt calls 20,000 residents downtown in 10 years 'absolutely achievable' (Video)

... which must explain why Piatt's Saks redevelopment proposal is so ambitious...


Piatt: "Point Park Playhouse will bridge an important gap in the fabric of Downtown."

btw... 20,000 residents in our .68 sq mile downtown would be a population density of about 30,000/sq mi.

What is meant by "ambitious?" I don't exactly call however many units spread over six or seven levels above a five-story parking structure as ambitious. Did they make changes, like adding another 6 or 7 floors and more units? That, to me, would be a little more ambitious. This Tokyo hotel set to open in a matter of months kinda resembles the Saks proposal, and frankly I'd like to see something similar to this built there. Granted, 30 floors might be a little TOO ambitious, but why not something in the 20-story range?

http://www.recommend.com/destination...l-opens-tokyo/

Originally Posted by Austinlee

Those do look gorgeous.

http://www.ariaon7th.com/

Those rents are crazy!! If they're able to get people to lease them tho...

[Austinlee]

^Where do you see the rent prices? I don't see them listed.

[GeneW]

Originally Posted by Austinlee

^Where do you see the rent prices? I don't see them listed.

$1500 - $2300 for a one bedroom and $2300 - $3000 for a two.

[greg42]

Originally Posted by GeneW

$1500 - $2300 for a one bedroom and $2300 - $3000 for a two.

Wowza. I think that's the highest we've seen yet for general rent ranges in downtown? I think most of the recent 1BR were in the $1200 range and sometimes still less.

How ARE we going to get any lower rent options that they are paying lip service to? If they can keep building out places that rent for those rates, there doesn't seem to be room for it. I would guess off the top of my head that things like using cheaper interior finishes and such doesn't really knock enough off the cost to rent for much less, although that could be a way to keep most who can afford more from taking up cheaper units.

Seems like you're left with only high priced units and perhaps a potential for subsidized (with qualification income limits for the renters, I mean) with nothing much between. Am I missing something, or is that just the way it has to be for the downtown area?

[Jonboy1983]

Originally Posted by GeneW

$1500 - $2300 for a one bedroom and $2300 - $3000 for a two.

Thanks Gene. If you click on the floor plans in the link, it tells you what each plan leases for. The deposit is only $500 regardless of floor plan, though. Still, $1500 to $2300 for a one bedroom is approaching what some units out here in the Philly area go for...

[photoLith]

Those are like NYC prices, thats insane.