Their bid shouldn't have been competitive. It should have made Pitt the clear winner.
OT: Pitt bidding on Athletic Association property
- Thread starter TIGER-PAUL
- Start date
Their bid shouldn't have been competitive. It should have made Pitt the clear winner.
Again, none of us were in the room. We have no idea what happened.
Hey! Let's take one of Pitt's best and most defining features and.... get rid of it.
I know less about the particulars of this situation than just about anyone on here, but from what I've read this sounds like one of those times when being a little fiscally irresponsible may have been the correct decision in the run.
For sure a huge disappointment, but I think that it's very easy to jump to criticize Pitt's involvement. I'm not doing that unless/until I know the details.
Perhaps the Pitt bid was over the amount that the property appraised? In a closed bankruptcy auction setting, unless you were in the room...it is very hard to tell what transpired and differentiating bids. Turn the page, and move on. Hail to Pitt!
Would only be a concern if financing were needed. Pitt would pay cash and you can offer whatever you want to for goodwill ( eye of the beholder)
This is an epic fail and would like to know what happened.
This is an epic fail and would like to know what happened.
The old King's Court Theater still looks awkward with a cell phone store and crappy fast food in it. But I'm not sure that is how it will go for the Athletic Association property if retail is added.
For one, the entrance to the building is not really at street level and there is only one door facing 5th avenue (i believe), so it doesn't really lend itself to a bunch of storefronts, and the building can't be modified that much as it is a historic landmark. Maybe some boutique stores, or a sit-down eatery where people would walk up to enter. I guess a Panera or Starbucks type place would work, but probably not the best location for say Hardees or McDonalds.
The other thing is that Walnut Capital has done pretty good work redeveloping urban properties. If a place similar to Social in Bakery Square ends up in the Athletic Association building, that's not the worst thing...could use some more full service dining around campus, not everyone in Oakland is a poor college student.
For one, the entrance to the building is not really at street level and there is only one door facing 5th avenue (i believe), so it doesn't really lend itself to a bunch of storefronts, and the building can't be modified that much as it is a historic landmark. Maybe some boutique stores, or a sit-down eatery where people would walk up to enter. I guess a Panera or Starbucks type place would work, but probably not the best location for say Hardees or McDonalds.
The other thing is that Walnut Capital has done pretty good work redeveloping urban properties. If a place similar to Social in Bakery Square ends up in the Athletic Association building, that's not the worst thing...could use some more full service dining around campus, not everyone in Oakland is a poor college student.
not surprised that is your summation, mr, sunshine
I turned the page on page 1 or 2 of this thread when I said Pitt would blow it.
What's that ...an Athletic Department with parts of 2 centuries mucking things up....
Agreed!!!!
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Well, there will be an upscale restaurant in the new Oaklander Hotel being built behind it, but another one would be a great addition.
I've been scouting locations for my new VAPE SHOP, and the ground floor of the PAA looks great!! I can't wait to sign my lease and start selling all my great vapes....I'm calling it "VAPES @ The Cathedral of Learning", and the logo is gonna be the COL - but it will look like a VAPE WITH SMOKE COMING OUT OF IT!
And the signage is gonna be all SCRIPT!!!!
My cousin Ricky in DuBois owns 2 Subways and he's interested in the space too!
Look out Oakland, HERE WE COME!!!!!!
And the signage is gonna be all SCRIPT!!!!
My cousin Ricky in DuBois owns 2 Subways and he's interested in the space too!
Look out Oakland, HERE WE COME!!!!!!
Damn, that's good.
PITTLAW is my business partner on this project. I'll have him move some papers around and get this done! I'd call him right now, but wouldn't you know.....that darn man still uses a pager?
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That's a shame. I had to look up to remember what that building is, then it was instantly clear this should be part of Pitt.
That is the problem again and again: Pitt may claim they didn't want to be "fiscally irresponsible". Well, guess what? You have no options. Walnut Capital has hundreds. Pitt is going to end up spending more on rent in that building than they will on the sale (of course there are lots of additional costs, but there are also a lot of additional advantages) price. Pitt has some very, very, very short sighted decision makers.
Except we do know. Pitt lost. Again. The kicker is: they couldn't afford to lose. They have completely screwed themselves time and time again because they don't realize the big picture and that their options are few and far between.
Really? You've spoken to the judge who presided over the negotiations? You know the details of Walnut Capital's offer vs. Pitt?
I'm happy to have a discussion when/if someone can present real details.
Did you stop reading there? We know Pitt lost. We know they lose a lot. We know they have almost 0 options and will likely not have a similar opportunity for decades, maybe a century.
Walnut Capital's offer was better than Pitt's for a building that has so much more value to Pitt than any other possible owner, it is unbelievable. If Pitt made an offer that was unable to beat Walnut Capital's (sounds to be no more than $11M with likely de-escalators and contingencies based on certain inspections and usage checks/agreements) then they royally screwed the pooch and will pay dearly. In fact, they will probably end up in worse financial shape considering they will likely end up as tenants in the building and have far fewer options to expand the school as necessary. A monumental fail.
This opportunity should have been worth sooooooo much more to Pitt, it is unbelievable they could be out bid. Terrible job by Gallagher and his team, but not surprising.
How do you know what the PAA demands were? I don't.
I'm not going to disparage Pitt's administration here until I actually have FACTS about the negotiations. Crazy I know.
A leadership team with no Pitt alums and two Penn State alums, I should remind.
Well there are plenty of businesses that disagree [and accountants and lawyers] with your analysis....many prefer to rent over investing and taking on the costs of ownership of real estate/buildings. Presuming that Pitt could not significantly change the existing building....what precisely would the space been used for that Pitt needs more of? I assume you know that Pitt owns quite a few former club facilities? How many clubs should Pitt own? I recognize the beauty and central location of the PAA....but maybe it does not make economic sense for Pitt to purchase it when there would be so many restrictions and limited uses for the space? Regardless, we honestly do not know what the other bids looked like, only vaguely what Walnut's winning bid is. Hail to Pitt!
I mean they did build a 13m bubble near the projects that you basically have to take an uber to, so there's that I guess.
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