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Category Archive: Downtown Development

  1. Local companies in command of Fifth-Forbes development

    By Ron DaParma
    TRIBUNE-REVIEW REAL ESTATE WRITER
    Sunday, January 8, 2006

    Local developers finally hold the keys to unlocking the economic potential of Pittsburgh’s deteriorated Fifth-Forbes retail corridor.

    That’s a good thing, says Arthur P. Ziegler Jr., president of Pittsburgh History & Landmarks Foundation, the preservationist organization that developed Station Square.

    Ziegler has long advocated giving a variety of companies a role in developing the area in and around Fifth and Forbes avenues.

    He applauds the fact that Washington County-based Millcraft Industries Inc., headed by members of the Piatt family, now has the lead in trying to find new uses for the former Lazarus-Macy’s department store, and that the J.J. Gumberg Co. of Braddock Hills owns and is spearheading efforts to redevelop the former Lord & Taylor department store building.

    Ziegler also salutes Oxford Development Co.’s involvement in PNC Financial Services Group’s recently announced plan to build a $122 million office/hotel/condominium building along Fifth Avenue that will be home to Reed Smith, one of the city’s largest law firms.

    “I think those are major steps and a breakthrough in efforts to develop Fifth-Forbes,” said Ziegler, who has suggested the city should copy a plan that helped Baltimore revitalize part of its downtown.

    In Baltimore, an $800 million project driven mainly by private investment and fueled by historic preservation tax credits is being used to renew a 26-block area.

    The city developed a package of buildings, specific uses and quality levels, and offered the packages to developers on the open market, he said.

    If Pittsburgh’s leaders adopt a similar plan, more local and national developers might be persuaded to take a look at redeveloping pieces of Fifth and Forbes, Ziegler believes.

    “This demonstrates the fact that there are other local developers who would possibly be willing to get involved in Fifth-Forbes if the opportunity were available,” he said, referring to the involvement of Millcraft, Oxford and Gumberg.

    Three out-of-town developers have considered becoming the master developer for city-owned properties Fifth-Forbes, only to walk away, and now the private-led Pittsburgh Task Force is currently working with Madison Marquette, a company based in Washington, D.C., on a development plan for Downtown.

    Ziegler has hopes that project also will be successful, but if it is not, then he believes the city should open up the field to other developers.

    New Mayor Bob O’Connor already has said he would consider allowing other private developers to buy Downtown properties owned by the city’s Urban Redevelopment Authority if the Madison Marquette plan fails.

    In the meantime, Pittsburgh History & Landmarks has offered to help the city preserve several deteriorated buildings Downtown, including 439 Market St., an historic three-story building off Market Square.

    Last month, the city’s Historic Review Commission approved a plan to preserve the unique facade of the 130-year-old structure while demolishing a majority of the rest of the building.

    The plan is for the city’s engineering and construction department to shore up the building’s side walls with bracing and put up a temporary roof and rear wall that would be replaced once a development plan is in place for the area.

    Landmarks, which joined with the historic preservation group Preserve Pittsburgh to support partial demolition of the building, has offered the city a no-interest loan of up to $75,000 to help pay for the work.

    Real estate notes:

    Funding for construction of 15 second-floor, loft-style condominiums over retail space and rehabilitation of seven houses on Penn Avenue and North Fairmount Street in the city’s Garfield neighborhood has been approved by the Pennsylvania Housing Finance Agency. The project will get $660,000 in Neighborhood Revitalization funds. The agency also approved $2 million for Peebles Square in Wilkinsburg. These funds will be used to build 12 new single-family detached three-bedroom homes and to rehabilitate eight existing owner-occupied homes and create a regional park.

    Construction activity in the six-county Pittsburgh region increased substantially in November compared to the same month last year. Total new contracts issued reached $178.3 million, a 94 percent increase over the $92.1 million a year ago, according to the Research and Analytics unit of McGraw-Hill Construction. For the 11-month period, total contracts issued reached $2 billion, an 11 percent decline from $2.26 billion for the same period a year ago.

    The management office of Station Square, South Side, has relocated to Suite 317 in the Landmark Building, which is on the opposite side from where it was formerly located, said Tom Schneck II, Station Square’s director of marketing.

    James P. Kelly, Grubb & Ellis vice president, has been given the job of finding tenants for the Mon Valley Community Health Center in Monessen, since the current occupant, Southwestern Pennsylvania Human Services Inc., plans to relocate 200 of its employees into the former Montgomery Ward building in Charleroi.

    Wells Real Estate Investment Trust II Inc. has selected Jeremy Kronman and Tom McDonald of CB Richard Ellis/Pittsburgh to market 2000 Park Lane, a seven-story office building it purchased in North Fayette. Computer Associates International Inc., former owner of the building, will lease about 25 percent of the 231,213-square-foot building, and Fisher Scientific Co. LLC occupies about 64 percent. Brad Heming of Jones Lang LaSalle represented the seller, and Jeff Gilder of Wells Real Estate Funds represented the buyer.

    Several members of Holliday Fenoglio Fowler’s Pittsburgh office participated in the sale by Simon Property Group Inc. of Cheltenham Square, a 638,098-square-foot regional shopping center north of Philadelphia. Thor Equities LLC paid $71.3 million for the property, plus assumption of an existing $54.9 million bank loan, and Chris Turner and Claudia Steeb with John Pelusi, executive managing director and managing member, were involved.

    An office building at 100 Commercial St., in the Bridgeville Industrial Park, Bridgeville, has been sold by Proud Mary LLC to Great Lakes Warranty Corp. for $700,000, according to a deed filed in the office of Allegheny County Recorder of Deeds.
    — Contributor: Sam Spatter

    Ron DaParma can be reached at rdaparma@tribweb.com or 412-320-7907.

    Images and text copyright © 2004 by The Tribune-Review Publishing Co.

    This article appeared in the Pittsburgh Tribune Review © Pittsburgh Tribune Review

  2. City historic group approves plan for crumbling Downtown building

    By Mark Belko,
    Pittsburgh Post-Gazette
    Thursday, December 08, 2005

    Pittsburgh’s Historic Review Commission cleared the way yesterday for the partial demolition of a crumbling four-story, city-owned building at 439 Market St., Downtown, amid fears that the failing structure is becoming increasingly unsafe.

    “Time is of the essence. I can’t stress that enough,” said city Bureau of Building Inspection Chief Ron Graziano, a commission board member, before the vote.

    The city proposal approved by the board involves the demolition of the building’s Graeme Street facade, gutting the interior, stabilizing some walls, and erecting a temporary enclosure to protect what remains from the elements. The plan, estimated to cost $100,000, would save the Market Street facade, which is considered to be more historically significant.

    Still to be determined is who will pay for the work.

    Last summer, the Pittsburgh History & Landmarks Foundation offered to lend the city up to $33,000 to fix the roof and clean up the building inside. The loan amount later was amended to a maximum of $75,000 in legislation that passed City Council. But foundation officials have received no formal notification on whether the offer has been accepted by the Murphy administration.

    Preservation Pittsburgh has been trying to retain the Market Street facade and the rest of the building as part of a plan to develop a “transit cafe” at Fifth Avenue and Market.

    (Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.)

    This article appeared in the Pittsburgh Post Gazette. © Pittsburgh Post Gazette

  3. Structure to be razed

    By Tony LaRussa
    TRIBUNE-REVIEW
    Thursday, December 8, 2005

    The Pittsburgh Historic Review Commission Wednesday agreed to allow part of a historic three-story building off Market Square to be demolished, though its unique facade will be preserved.

    Although it is not known who designed the 130-year-old brick building at 439 Market St., it and an adjacent “twin” are the only structures remaining in the region that have decorative cast-iron window heads and sills, according to Cathy McCollom, chief program officer for the Pittsburgh History and Landmarks Foundation.

    The commission voted unanimously to allow the city, which owns the Downtown building, to hire a contractor to tear down the structure’s buckling rear wall and gut the interior. Most of the roof already has collapsed, which caused it to become structurally unsound.

    “From a building inspector’s perspective, I would recommend total demolition — it’s an accident waiting to happen,” said commission member Ron Graziano, who heads the city’s Bureau of Building Inspection.

    Graziano and the rest of the seven-member board supported a proposal by the city’s engineering and construction department to shore up the building’s side walls with bracing and construct a temporary roof and rear wall that would be replaced once a development plan is in place for the area.

    Graziano suggested that board members who raised concerns about the look of the temporary rear wall not be “too picky” since any permanent changes would have to be approved by the commission. The commission is responsible for approving exterior designs to any buildings in city historic districts that are visible from public rights of way. The rear of the building is along Graeme Street.

    Landmarks and the historic preservation group, Preserve Pittsburgh, supported partial demolition of the building. Landmarks, which previously offered to take over a number of Market Square buildings so they can be preserved, recently offered the city a no-interest loan of up to $75,000 to help pay for the work.

    That should be more than enough. Al Kovacik, of the city’s engineering and construction department, said the partial demolition and reinforcement work would cost between $29,000 and $42,000. The cost for tearing the whole building down is estimated at about $55,000.

    “With the approval of this plan, the city can spare a historic facade and save money at the same time,” Kovacik said.

    Tony LaRussa can be reached at tlarussa@tribweb.com or .

    This article appeared in the Pittsburgh Tribune Review © Pittsburgh Tribune Review

  4. City may demolish part of building in Market Square

    By Mark Belko,
    Pittsburgh Post-Gazette
    Tuesday, November 29, 2005

    The city is proposing to partially demolish a crumbling four-story building it owns at 439 Market St. in Market Square that is viewed as a safety hazard by adjacent property owners but a candidate for restoration by preservationists.

    City officials will seek permission from the Historic Review Commission next week to demolish the building’s rear facade on Graeme Street, to gut the interior, and to strip away what is left of the roof.

    As part of the proposal, the city would keep the more historically significant Market Street facade intact and consider a temporary enclosure to protect the interior while more permanent improvements are determined, according to an application with the HRC.

    Officials must seek HRC approval for the demolition because the building is part of the Market Square Historic District.

    The structure has been a constant source of concern to adjacent property owners in Market Square, who have complained about the collapsed roof, a rat infestation, and bowed exterior walls that are in danger of falling.

    Last summer, the attorney for the property owner next door at 435 Market, which houses the Ciao Baby restaurant, threatened to seek a court order to force repairs or the demolition of the building, declaring that a “public emergency” existed.

    Court action was forestalled when the Pittsburgh History & Landmarks Foundation offered to lend the city up to $33,000 to repair the roof and clean up the inside of the building.

    The loan amount later was increased to a maximum of $75,000 in legislation submitted to City Council. But no final determination has been made pending a more exact estimate on the cost of repairs.

    At this point, the city doesn’t have the money to do the demolition or to repair the building, Public Works Director Guy Costa said.

    He estimated the cost of tearing down the Graeme Street facade, gutting the interior and ripping away what is left of the roof at $29,000 to $42,000. But he said the cost could escalate to $75,000 if a temporary roof is added and the building is enclosed.

    Mr. Costa said one option under consideration would be for the city’s Urban Redevelopment Authority to buy the building and fund the demolition and repairs. The URA owns two adjacent buildings at 441 Market and the old Regal Shoe Co. store at Market and Fifth Avenue. He said he plans to meet with the mayor’s office and the URA to discuss that possibility.

    Rob Pfaffman, president of the Preservation Pittsburgh board of directors, said the rear facade is bowing “quite substantially” and is in danger of collapsing. He said removing it would allow the city to gut the interior and take out what is left of the roof.

    Preservation Pittsburgh has plans to turn the Regal Shoe building at Market and Fifth into a “transit cafe.” It also is interested in the structures at 439 and 441 Market as part of the project. It has said that both have good Market Street facades that ought to be preserved.

    The URA has been holding the Regal Shoe building and the one at 441 Market for a developer as part of a proposed Fifth and Forbes make-over.

    (Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.)
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    Copyright ©1997-2005 PG Publishing Co., Inc. All Rights Reserved.

  5. Murphy to seek funds for building repair

    Tuesday, September 13, 2005
    Pittsburgh Post-Gazette

    The Murphy administration will submit legislation to City Council today to accept a no-interest loan of up to $75,000 from the Pittsburgh History & Landmarks Foundation to make repairs to a dilapidated city-owned building at 439 Market St., Downtown.

    Foundation officials offered to lend the money to replace the roof and clean up the building after the adjacent property owners threatened to go to court to force the city to demolish or shore up the building, fearing that it could collapse. They’ve also complained about rats in the building and in Market Square in general.

    The foundation originally offered a loan of up to $33,000. Adjacent property owners said it probably would take more than that to replace the roof and shore up the structure.

    Under the legislation submitted to council, the loan will run for up to three years. In exchange, the city would grant a historic preservation easement that would protect the front facade of the building. Pittsburgh History & Landmarks Foundation was acting on behalf of Preservation Pittsburgh, which has an interest in preserving 439 Market and two adjacent Urban Redevelopment Authority-owned buildings at Market and Fifth Avenue.

    Copyright ©1997-2005 PG Publishing Co., Inc. All Rights Reserved.

    This article appeared in the Pittsburgh Post Gazette. © Pittsburgh Post Gazette

  6. City to accept loan to fix Market Street building

    By Mark Belko,
    Pittsburgh Post-Gazette
    Thursday, September 01, 2005

    The Murphy administration has agreed to accept a loan from the Pittsburgh History & Landmarks Foundation to repair a dilapidated city-owned building at 439 Market St., Downtown, after an adjacent property owner threatened to go to court to force action.

    In a letter on Tuesday, History & Landmarks President Arthur P. Ziegler Jr. offered to lend the city up to $33,000 to repair the roof of the four-story building and clean up the inside to prevent the vacant structure from being demolished.

    The offer came after the attorney for the owners of an adjacent building at 435 Market, which houses Ciao Baby restaurant, threatened to seek a court order to force repairs or the demolition of 439 Market, declaring that a “public emergency” existed.

    In her letter to city Solicitor Jacqueline Morrow, attorney Linda Leebov Goldston said the roof of the building has collapsed, the floors are gone, and the exterior walls are bowed and in danger of falling. She said the building and Market Square in general are plagued by rats.

    Ziegler made his offer of an interest-free loan to make repairs with the stipulation that the building and two others — one at 441 Market and the old Regal Shoe Co. store at Market and Fifth Avenue — be preserved. The foundation also wanted approval over any exterior design done as part of a redevelopment.

    In his letter yesterday to Ziegler, Tom Cox, Murphy’s executive secretary, said the city would accept the loan but did not state specifically whether it agreed to the stipulations.

    Cox also said the city would accept a no-interest, “unlimited term” loan; the foundation had offered a maximum term of two years.

    Pittsburgh History & Landmarks Chief Programs Officer Cathy McCollom said the foundation was “delighted” that the city accepted the loan but added there were still details to work out.

    In accepting the loan, the city in effect rejected an offer by the foundation to take ownership of 439 Market as well as 441 Market and the Regal Shoe building, both owned by the city Urban Redevelopment Authority.

    The city and authority apparently are holding the buildings while awaiting a plan to redevelop the Fifth and Forbes retail corridor.

    The foundation, in trying to save the structures, acted on behalf of Preservation Pittsburgh, which has plans for a “transit cafe” in the Regal Shoe building, which was designed by Alden & Harlow, one of the city’s most prominent architectural firms in the early 20th century.

    Preservation Pittsburgh also is interested in the adjoining buildings at 439 and 441 Market, saying both have good facades that ought to be preserved.

    Rick Butts, co-owner of Ciao Baby restaurant, questioned whether roof work at 439 Market would be enough. He said the building appears to have significant structural damage and may not be capable of holding a new roof without other repairs.

    City Councilman William Peduto said he hopes to introduce a bill this month accepting the foundation loan.

    (Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.)
    Copyright ©1997-2005 PG Publishing Co., Inc. All Rights Reserved.

    This article appeared in the Pittsburgh Post Gazette. © Pittsburgh Post Gazette

  7. PHLF offers to save Market Square Buildings

    August 31, 2005

    On Monday, August 29, 2005, we received a telephone call suggesting that an emergency meeting be held with the City’s Building Inspection Department to review the situation at 439 Market Street, a handsome Victorian building that once housed the restaurant Alexander’s Graham Bell. Some years ago it was fire damaged; the City took possession of the property and steady deterioration took place until the roof fell in through three floors to the basement. The walls are intact as is a mezzanine that is just above the front entrance.

    We learned that the City had a bid of $30,000 to put on a new roof, make remedial repairs, and clean up the debris.

    The next morning, Landmarks submitted a letter offer to Deputy Mayor Tom Cox and URA Director Jerry Dettore offering a loan from PHLF for up to $33,000 for the roof repairs and clean up, and the City would give Landmarks design approval rights for the exterior of this building and two buildings to the east. The loan offer is at no interest and for two years.

    The City accepted the offer on August 31, 2005 and negotiations on details have begun.

    We will report on progress as it occurs.

  8. Foundation tries to save Market Square building

    By Mark Belko,
    Pittsburgh Post-Gazette
    Friday, August 26, 2005

    The Pittsburgh History & Landmarks Foundation is offering to repair a deteriorating four-story building at 439 Market St., Downtown, to keep the city from demolishing it.

    Pittsburgh History & Landmarks President Arthur P. Ziegler Jr. has sent letters to the city and the Urban Redevelopment Authority with his offer after learning that the vacant city-owned building, part of the Market Square historic district, could be facing the wrecking ball.

    There is no doubt that the building is in need of work. The roof is falling in, floors are collapsing and walls need to be stabilized. Its condition has spawned complaints from some Market Square property owners, which, in turn, has prompted talk of demolition.

    But the structure also is targeted for redevelopment by Preservation Pittsburgh as part of its plan for a “transit cafe” at Market and Fifth Avenue.

    That proposal relies mainly on the former Regal Shoe Co. building at the corner, a structure designed by Alden & Harlow, one of the city’s most prominent architectural firms in the early 20th century. But the group also is interested in 439 and 441 Market as well.

    After visiting 439 Market with Preservation Pittsburgh President Rob Pfaffmann Monday, Ziegler presented two proposals to the city and the URA in an effort to save the building.

    One would be for Pittsburgh History & Landmarks to take ownership of the structure, plus the old Regal Shoe Co. building and 441 Market, both owned by the URA. As part of the transfer, it would put on a new roof at 439 Market and clean up the inside.

    As an alternative, the foundation is offering to lend the city up to $33,000 interest-free for the new roof and to clean up the inside, with the loan to be repaid once the building is sold or developed by the city.

    The only stipulation would be that the building, along with 441 Market and the old Regal Shoe Co. store on Fifth, be preserved and that the foundation have approval over any exterior design done as part of a redevelopment.

    Ziegler was out of town and unavailable for comment yesterday.

    But Cathy McCollom, Pittsburgh History & Landmarks Foundation’s chief programs officer, said it is not routine for the agency to offer to make repairs or assume ownership. But she added it was willing to do so in this case because “we believe those buildings are important.”

    “It’s an attempt to address the issues of concern to the city and to allow time to look at the reuse of the buildings because once they’re gone, they’re gone,” she said.

    Pfaffmann said the city has received an estimate of $30,000 to repair the roof and to clean up the inside of 439 Market. While neither that building nor the one at 441 Market were designed by Alden and Harlow, they both are “contributing buildings” with good facades that deserve to be preserved, he said.

    “Preservation Pittsburgh and the PHLF have been constantly told by Mayor [Tom] Murphy that we ought to put our money where our mouth is. We believe this is exactly what we’re doing now,” he said.

    All three buildings are part of the Market Square historic district, meaning that the demolition of 439 Market could not occur without approval of the Historic Review Commission, unless it were an emergency.

    Neither Murphy nor his executive secretary, Tom Cox, was available for comment yesterday. They have fought preservationists in the past over plans for the Fifth and Forbes retail corridor. URA Executive Director Jerome Dettore reacted favorably to the proposal however.

    “It sounds good to me. It’s an area where we’re all supportive of preservation. I think the preservation of those buildings is probably a good thing,” he said.

    Dettore said negotiations over 439 Market would have to be handled through the city, since the building is owned by the city, not the URA.

    Ron Graziano, chief of the city Bureau of Building Inspection, said any attempt to demolish the building at 439 Market is on hold as a courtesy to Pittsburgh History & Landmarks while it tries to work out a solution.

    Aaron Klein, owner of Camera Repair Service Inc. a couple of doors down from 439 Market, said he would like to see something — anything — done with the building. He said it “already is falling down in the back” and attracts rats.

    (Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.)

    This article appeared in the Pittsburgh Post Gazette. © Pittsburgh Post Gazette

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