acquiring more in Oakland area.
http://www.post-gazette.com/busines...-on-Fifth-Ave-in-Oakland/stories/201804090152
A Shadyside developer is gearing up to erect a new office building on Fifth Avenue in Oakland, hoping to capitalize on high demand in a key market close to the major universities and hospitals.
Walnut Capital is spending $2.1 million to buy a building from Allegheny County at 3342 Fifth that formerly housed the program center for female offenders but which now is vacant. County Council will vote on whether to approve the sale at its meeting Tuesday.
Todd Reidbord, Walnut Capital president, said the developer intends to use the site and two adjacent properties on Fifth it already owns to construct an eight- to 10-story office building.
Walnut Capital is considering traditional office space as well as wet lab space for the building, which is located close to the UPMC hospital system, including UPMC Magee-Womens Hospital and UPMC Presbyterian.
Mark Belko
As new apartments are built around Pittsburgh, older stock is feeling the pressure
It’s also across the street from Carlow University and blocks from the University of Pittsburgh campus.
The development hopes to capitalize on the proximity of the hospitals and universities; potential partnerships between the universities, hospitals and corporations; and the high demand for office space in Oakland.
According to the Newmark Knight Frank real estate firm, the vacancy rate for Class A, or the best, office space in the neighborhood is 2.4 percent — the lowest in the Pittsburgh market.
“There’s really no Class A office space vacant,” Mr. Reidbord said. “Every time a building is built, it’s gobbled up right away. We think that trend is going to continue.”
He noted that Walnut Capital also is a “big believer” in the type of innovation district spelled out in a recent Washington, D.C.-based Brookings Institution study that identified Oakland as a place for academic researchers to work closely with entrepreneurs — one that could create an even greater demand for space.
The purchase of the county building marks the developer’s latest foray into the neighborhood.
Walnut Capital is in the process of acquiring the bankrupt Pittsburgh Athletic Association’s iconic clubhouse for $12.6 million with plans to convert much of it to office and retail space.
Mark Belko
It also has reached a deal to buy the Jewish Federation of Greater Pittsburgh headquarters at 234 and 242 McKee Place where it eventually envisions a Bakery Square-like office building that would attract tech companies and others that want to be close to Pitt and Carnegie Mellon University.
However, that plan could take awhile to blossom. As part of the deal, the Jewish Federation has at least three years to find a new place.
In addition, Walnut Capital has started rehabbing a dilapidated former Cadillac dealership at 3224 Boulevard of the Allies, which it is converting into 41,000 square feet of office space over two levels.
It expects to complete the redevelopment, located across the street from UPMC Magee, by the end of the year.
“We think the new growth possibilities are concentrated in the Oakland market,” Mr. Reidbord said.
To make way for the new office building on Fifth, the former program center for female offenders property and the two others owned by Walnut Capital will be demolished.
The developer hopes to start that work early next year. While the county space is vacant, there are still tenants in the other buildings, Mr. Reidbord said. “We’re not going to tear them down until we need to,” he said.
Walnut Capital submitted its plan in response to a county request for development proposals. The county has determined it is no longer in its interest to own the property, according to a summary submitted as part of the proposed sale.
http://www.post-gazette.com/busines...-on-Fifth-Ave-in-Oakland/stories/201804090152
A Shadyside developer is gearing up to erect a new office building on Fifth Avenue in Oakland, hoping to capitalize on high demand in a key market close to the major universities and hospitals.
Walnut Capital is spending $2.1 million to buy a building from Allegheny County at 3342 Fifth that formerly housed the program center for female offenders but which now is vacant. County Council will vote on whether to approve the sale at its meeting Tuesday.
Todd Reidbord, Walnut Capital president, said the developer intends to use the site and two adjacent properties on Fifth it already owns to construct an eight- to 10-story office building.
Walnut Capital is considering traditional office space as well as wet lab space for the building, which is located close to the UPMC hospital system, including UPMC Magee-Womens Hospital and UPMC Presbyterian.
Mark Belko
As new apartments are built around Pittsburgh, older stock is feeling the pressure
It’s also across the street from Carlow University and blocks from the University of Pittsburgh campus.
The development hopes to capitalize on the proximity of the hospitals and universities; potential partnerships between the universities, hospitals and corporations; and the high demand for office space in Oakland.
According to the Newmark Knight Frank real estate firm, the vacancy rate for Class A, or the best, office space in the neighborhood is 2.4 percent — the lowest in the Pittsburgh market.
“There’s really no Class A office space vacant,” Mr. Reidbord said. “Every time a building is built, it’s gobbled up right away. We think that trend is going to continue.”
He noted that Walnut Capital also is a “big believer” in the type of innovation district spelled out in a recent Washington, D.C.-based Brookings Institution study that identified Oakland as a place for academic researchers to work closely with entrepreneurs — one that could create an even greater demand for space.
The purchase of the county building marks the developer’s latest foray into the neighborhood.
Walnut Capital is in the process of acquiring the bankrupt Pittsburgh Athletic Association’s iconic clubhouse for $12.6 million with plans to convert much of it to office and retail space.
Mark Belko
It also has reached a deal to buy the Jewish Federation of Greater Pittsburgh headquarters at 234 and 242 McKee Place where it eventually envisions a Bakery Square-like office building that would attract tech companies and others that want to be close to Pitt and Carnegie Mellon University.
However, that plan could take awhile to blossom. As part of the deal, the Jewish Federation has at least three years to find a new place.
In addition, Walnut Capital has started rehabbing a dilapidated former Cadillac dealership at 3224 Boulevard of the Allies, which it is converting into 41,000 square feet of office space over two levels.
It expects to complete the redevelopment, located across the street from UPMC Magee, by the end of the year.
“We think the new growth possibilities are concentrated in the Oakland market,” Mr. Reidbord said.
To make way for the new office building on Fifth, the former program center for female offenders property and the two others owned by Walnut Capital will be demolished.
The developer hopes to start that work early next year. While the county space is vacant, there are still tenants in the other buildings, Mr. Reidbord said. “We’re not going to tear them down until we need to,” he said.
Walnut Capital submitted its plan in response to a county request for development proposals. The county has determined it is no longer in its interest to own the property, according to a summary submitted as part of the proposed sale.
