PITTSBURGH | Development Rundown II

[BrianTH]

Our lack of infrastructure ambition and investment in the U.S. is so depressing. Philadelphia to CHICAGO should be around a 5-hour train ride, with Pittsburgh about 2 from Philly and 3 from Chicago.

[GeneW]

Originally Posted by Austinlee

Also from Pfaffman's FB page:

"The Guckert Building : stay tuned for more on this great old Pittsburgh warehouse!"




Wow, I always admire this extremely sturdy looking brick warehouse when I drive by it. This + the Garden Theatre block will drastically change North Avenue and bridge an important gap between the desirable neighborhoods of the Mexican War Streets & Allegheny West (& Manchester).

Somebody just paid a million dollars for the place:

Mary Guckert trustee to 810 W North Ave Assoc. L.P. at 810 W. North Ave. for $1,000,000

[BrianTH]

23 new condos coming to Squirrel Hill:

http://www.bizjournals.com/pittsburg...rrel-hill.html

Landmark Properties Group announced The Q, which would have a mixture of one-, two- and three-bedroom units that would be built this year at 2704 Murray Ave. and occupied in 2016. Prices are expected to start at $300,000, according to a news release.

Random aside--prices starting at $300,000 again helps explain why there might be a market for new units to buy at $100,000, even if they are small.

Anyway, this is the reported location, an empty lot across from the big apartment complex, near where Murray passes over the entrance to the Squirrel Hill Tunnel. It would be nice if it had enough height to be seen from I-376 and Forward (the upper 6-7 or so floors of the apartment complex across the street are visible from I-376). It could also help nicely balance out a redevelopment of the Poli's site.

[BrianTH]

An EB-5 regional center has received approval to locate Downtown:

https://www.google.com/maps/@40.4282...HDKPnwUMuQ!2e0

Ferrum, a specialty asset and management services firm, received approval from the U.S. Citizens and Immigration Services department to open the West Penn Regional Center, a downtown Pittsburgh-based Immigrant Investor Visa Program EB-5 regional center. . . . The EB-5 visa provides a method of obtaining a green card for foreign nationals who invest $1 million — or $500,000 in certain regions with high unemployment — creating at least 10 full-time jobs for U.S. workers for a minimum of two years. The investments can be made into a regional center, which is a third-party managed investment vehicle, public or private.

Ferrum, as the center's manager and owner, acts as a private equity firm, Russell explained. It is responsible for all aspects of operations, including investment sourcing and evaluation, worldwide marketing to prospective investors, facilitating investor immigration filings and monitoring investments for compliance under the EB-5 program. It also provides access to subordinated debt and equity to its clients for qualifying projects.

It would be great if this helped attract more foreign capital and EB-5 immigrants to the region. Assuming this map is correct, it is the first EB-5 regional center in Western PA.

[eschaton]

Originally Posted by BrianTH

23 new condos coming to Squirrel Hill:

They're already marketing some of the units it seems.

As an aside, I do wonder when we'll see conversion of some of the older apartment blocks in Squirrel Hill into condos. Or even just updating them into high end apartments. They have some charm externally, and I would have to think due to location they'd appeal to a wider market than college students.

[BrianTH]

Originally Posted by eschaton

They're already marketing some of the units it seems

Good find! But I wish it was taller.

As an aside, I do wonder when we'll see conversion of some of the older apartment blocks in Squirrel Hill into condos. Or even just updating them into high end apartments. They have some charm externally, and I would have to think due to location they'd appeal to a wider market than college students.

I guess the question is whether the premium over student rates would be worth the investment. Often it is not, meaning student apartments can provide very high rates of return that are tough to beat. And so far condos seems like a pretty thin market. The market for higher-end apartments is obviously way more robust, but those folks tend to want a lot of on-site amenities and such.

But rising prices for smaller houses in good locations could change all that--certainly that is what happened in other cities ahead on the appreciation curve. At some point it becomes normal to buy pretty expensive, not-too-big condos, since they are nonetheless the best bargain available for long-term housing in good locations.

[popstar]

I tend to be a supporter of the tiny homes, but I agree that 100k is a lot of money, and I don't think it's fair to compare the cost of these houses to the cost of an efficiency in Bakery Square, mainly because of the location. There's only about a mile between Garfield and Bakery Square, but there's a huge distance in how far these areas have come. Those tiny homes are going to in one of the poorest neighborhoods in the city. You'll get some outdoor space, but right now much of the view will be of dilapidated houses, litter, and empty lots. I bet the average cost of a large victorian home in Garfield is about 40-50k.Penn Avenue has come a long way, but that area is still pretty depressing. I would argue that the quality of life enjoyed in Bakery Square is going to far exceed Garfield, at least for the next 25 years or so.

[BrianTH]

Not too long ago, people were saying East Liberty would take a very long time to become a popular residential neighborhood, and yet now it has. And when you look at an area like the flatter portion of Garfield near Penn, it is really so small that it can reach critical mass very quickly.

So we'll see, but I suspect it will take a lot less than 25 years for that part of Garfield to get pulled firmly into the expanding reinvestment zone centered on downtown East Liberty.

Edit: Incidentally, recently a decent number of homes have sold for $100K+ in Garfield. Not surprisingly they are largely in the flatter part, with the highest values near East Liberty and along Penn.

[eschaton]

Originally Posted by BrianTH

I guess the question is whether the premium over student rates would be worth the investment. Often it is not, meaning student apartments can provide very high rates of return that are tough to beat. And so far condos seems like a pretty thin market. The market for higher-end apartments is obviously way more robust, but those folks tend to want a lot of on-site amenities and such.

But rising prices for smaller houses in good locations could change all that--certainly that is what happened in other cities ahead on the appreciation curve. At some point it becomes normal to buy pretty expensive, not-too-big condos, since they are nonetheless the best bargain available for long-term housing in good locations.

You raise some good points here. I don't see Squirrel Hill making the transition immediately. It's a good place to raise a family within the city, but if you're childless there are frankly many better deals (on a square foot basis) to be had elsewhere.

I do think that we will continue to see more and more old apartments go condo in Shadyside however. Unlike Squirrel Hill, there's essentially no affordable single-family houses any longer (except for a few streets right near the railway line which have noise issues), and tremendous demand to live there by both families and single people. Shadyside of course also has a big student contingent as well - CMU students can have deep pockets. But overall I see it becoming less of a student neighborhood as time goes on.

[photoLith]

Originally Posted by GeneW

Somebody just paid a million dollars for the place:

Mary Guckert trustee to 810 W North Ave Assoc. L.P. at 810 W. North Ave. for $1,000,000

Holy crap, thats awesome, if that building sold for a million than that will hopefully raise peoples awareness that those beautiful old buildings in Manchester are actually worth something and wont keep tearing them down.

[eschaton]

Originally Posted by photoLith

Holy crap, thats awesome, if that building sold for a million than that will hopefully raise peoples awareness that those beautiful old buildings in Manchester are actually worth something and wont keep tearing them down.

From what I can see, the Guckart Family Trust also owned the Katsafanas Coffee Company building next door, along with the triangular vacant lot in the rear which is accessible from Jabok Way. I'm presuming all of these were included in the deal.

I'd like these to be apartments, but I'm not sure that it's realistic to have high-end apartments directly next to the rail line due to sound issues. Offices might be a better use.

[Private Dick]

Originally Posted by eschaton

As an aside, I do wonder when we'll see conversion of some of the older apartment blocks in Squirrel Hill into condos. Or even just updating them into high end apartments. They have some charm externally, and I would have to think due to location they'd appeal to a wider market than college students.

We won't see it as long as borderline slumlord Equity Real Estate owns and manages many of those properties.

[photoLith]

Originally Posted by eschaton

From what I can see, the Guckart Family Trust also owned the Katsafanas Coffee Company building next door, along with the triangular vacant lot in the rear which is accessible from Jabok Way. I'm presuming all of these were included in the deal.

The people who own the buildings across from the Katsafanas Coffee building (The Hipco Flashight Company buildings) were interested in buying it last time I talked to them. They own 3 buildings across the street and are currently restoring them into offices and apartments. The coffee building is an awesome rare art deco industrial building and Im glad people are interested in it that have money.

[GeneW]

Originally Posted by photoLith

Holy crap, thats awesome, if that building sold for a million than that will hopefully raise peoples awareness that those beautiful old buildings in Manchester are actually worth something and wont keep tearing them down.

It's actually officially in Central North Side but Allegheny West probably has more interest in that area than than anyone since it's closest to us and also the AWCC owns The Stables Building next door.

[Austinlee]

Originally Posted by GeneW

It's actually officially in Central North Side but Allegheny West probably has more interest in that area than than anyone since it's closest to us and also the AWCC owns The Stables Building next door.

I love Allegheny West. I wish I could afford to live there. The architecture is just top notch.

[eschaton]

Originally Posted by photoLith

The people who own the buildings across from the Katsafanas Coffee building (The Hipco Flashight Company buildings) were interested in buying it last time I talked to them. They own 3 buildings across the street and are currently restoring them into offices and apartments. The coffee building is an awesome rare art deco industrial building and Im glad people are interested in it that have money.

They also seem to own that setback filler building with the parking lot between Katsafanas Coffee and The Stables Building.

It would be cool if whatever developer is involved bought that out, and also bought The Stables Building and the vacant lots from AWCC. They could redevelop most of the block at once.

I also noticed that the building at the corner of Galveston and Jabok is owned by "Hard Lofts LLC" and has been since summer of 2013. Presumably there is hopes of turning this into apartments eventually when the financing is obtained.

[eschaton]

Originally Posted by Austinlee

I love Allegheny West. I wish I could afford to live there. The architecture is just top notch.

I really pushed my wife to try and consider the North Side this summer, but she just wasn't comfortable with what we could afford. By the time the kids are out of the house it will likely be impractical, even if we have the money, because we shouldn't be moving into a multi-story house in our 50s/60s.

[Austinlee]

Originally Posted by eschaton

I really pushed my wife to try and consider the North Side this summer, but she just wasn't comfortable with what we could afford. By the time the kids are out of the house it will likely be impractical, even if we have the money, because we shouldn't be moving into a multi-story house in our 50s/60s.

That makes sense.

[Evergrey]

Originally Posted by Austinlee

I love Allegheny West. I wish I could afford to live there. The architecture is just top notch.

I just wish it was bigger. Frustrating that it's only a total of 3 residential blocks plus a small business district. It's a magical environment that so quickly dissipates due to 20th century urban blunders...


...speaking of 20th century urban blunders on the North Side...

http://www.bizjournals.com/pittsburg...new-owner.html

Allegheny Center office complex has new owner

Feb 19, 2015, 12:22pm EST



Faros Properties has acquired a controlling interest in Allegheny Center's 1.2 million-square-foot office and parking complex on the North Side of Pittsburgh.

Financial terms of the deal weren't disclosed in Thursday's announcement from Faros on the property, which had been owned by Allegheny Center Associates in California. The Pittsburgh Business Times had reported on speculation about the sale, and Faros' role in purchasing it, in a November 2014 story.

Allegheny Center began as a shopping center in 1965 and has grown to become a major office property. Allegheny Center is about 70 percent occupied with PNC Financial Services Group Inc. as a major tenant, along with Expedient. The parking has about 2,700 spaces.

"We are looking forward to unveiling our plans for this iconic Pittsburgh property in the next few months," says Jeremy Leventhal, managing partner of Faros Properties, in a statement. "We're also thrilled to significantly expand our long-term commitment to the Pittsburgh region."

It's the most recent acquisition for New York-based Faros Properties, which acquired Washington Plaza in 2012, Allegheny Center Apartments in 2013 and Carson Street Commons in 2014.

[Evergrey]

Originally Posted by eschaton

we shouldn't be moving into a multi-story house in our 50s/60s.

ranch house in Castle Shannon the next purchase?