Category Archive: Neighborhood Development

1. Sale of Union Trust Building completed for $24.1 million

   February 6, 2008 3:07 pm

   By Sam Spatter
   TRIBUNE-REVIEW
   Wednesday, February 6, 2008

   The historic Union Trust Building in Downtown Pittsburgh has been sold.
   Mika Realty Group of Los Angeles completed the previously announced purchase of the 11-story building from Teal Rock 501 Grant Street LP, a unit of Cigna Corp. of Philadelphia, on Tuesday for $24.1 million.

   The purchase, through Mika’s Five 501 Grant St. Partners LLC, was recorded today at the Allegheny County Recorder of Deeds offfice.

   The new owner will continue to use the building for offices, plus first floor retail, said Jeffrey Ackerman, commercial real estate broker with CB Richard Ellis/Pittsburgh, who negotiated the sale.

   Efforts will be made by Ackerman and Jeremy Kronman, also of CB Richard Ellis/Pittsburgh, to locate tenants for the 800,000-square-foot building which is nearly empty, except for several retail tenants on the ground level.

   Previously known as Two Mellon Bank Center, the building was designed in Flemish Gothic style by noted Pittsburgh architect F. J. Osterling and built in 1916 for industrialist Henry Clay Frick.

   Sam Spatter can be reached at sspatter@tribweb.com or 412-320-7843.

2. Restaurant, grocer signed for Cork Factory retail space

   January 30, 2008 10:46 am

   Wednesday, January 30, 2008
   By Mark Belko,
   Pittsburgh Post-Gazette

   The owner of the Clark Bar and Grill on the North Side and Caffe Amante, Downtown, plans to open a restaurant and cigar and wine bar as part of the Cork Factory development in the Strip District.

   The restaurant is one of two businesses planning to occupy the retail space located directly across the street from the Cork Factory, a 297-unit apartment complex at Railroad and 23rd streets that opened in May.

   A specialty grocery store also is in the works. It will occupy nearly half of the 45,000 square feet of retail space available in the 3.5-acre Cork Factory development.

   Both the restaurant and the grocer have executed leases and are expected to open for business this spring, according to a news release issued yesterday by Cork Factory developer McCaffery Interests.

   “This is a catalyst project that I believe is going to create great change, not only for the Strip but for Downtown Pittsburgh,” said Katie Pliscott, leasing director of McCaffery.

   The restaurant will be operated by Angelo Lamatrice and his son, David. The Lamatrices currently own and operate the Clark Bar and Grill on the North Side near the stadiums and Caffe Amante in Fifth Avenue Place, Downtown.

   Angelo Lamatrice did not want to talk about the Cork Factory venture yesterday, saying plans were still being finalized.

   “It’s early,” he said.

   But according to the developer, the restaurant will occupy about 10,000 square feet of space and will feature a “sophisticated” wine and cigar bar. There also will be VIP rooms, Ms. Pliscott said.

   The operator of the specialty grocery store has not been identified. Ms. Pliscott would give few details about the store, but said it would be operated by a Pittsburgh businessman.

   With the plans for the restaurant and grocer, only about 11,000 square feet of retail space remains in the complex.

   Since opening last year, the Cork Factory has rented 87 percent of its units, which range from studio apartments to three-bedroom lofts. Rents run from $1,200 a month to $3,900 a month.

   Besides the retail development within the complex, there are plans to develop a full-service marina on the Allegheny riverfront.

   Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
   First published on January 30, 2008 at 12:00 am

3. Decision on Schenley High School postponed

   10:45 am

   Wednesday, January 30, 2008
   By Joe Smydo,
   Pittsburgh Post-Gazette

   The city school board’s vote on the closing of the Pittsburgh Schenley High School building will be put off until spring so officials can continue to study the feasibility of renovating the building.

   A vote on the building’s fate was widely expected at the board’s Feb. 27 legislative meeting.

   Pittsburgh Public Schools Superintendent Mark Roosevelt last night said he didn’t want to give Schenley supporters false hope, but wants more time to study “every option” for saving the building.

   “We believe we should spend a couple of extra months doing that,” he told board members at a workshop on high school improvement.

   School board member Heather Arnet thanked Mr. Roosevelt for considering pleas to spare the historic Oakland building.

   Kathy Fine, a Schenley supporter, called the announcement a “very positive move” and a nod to community members who have been brainstorming for ways to raise money and reduce renovation costs.

   Mr. Roosevelt unleashed a firestorm last fall when he proposed closing the building at the end of the school year, saying the district couldn’t afford $64 million to address asbestos and other maintenance problems.

   He has proposed moving Schenley’s current 10th-, 11th- and 12th-graders to the Reizenstein building in Shadyside next school year and allowing them to remain together until graduation. Students who would have entered Schenley as freshmen next school year would be absorbed by other schools.

   The district held a public hearing on the proposal Nov. 27 so the board could vote Feb. 27. State law requires that a hearing be held at least three months before the vote to close a school.

   Mr. Roosevelt said he never committed to a Feb. 27 vote on the building’s future, though people have had that impression. He said he will ask the board to vote next month on moving students out of the Schenley building for the next school year.

   Whether the building is closed or renovated, he said, students won’t be able to attend class there in 2008-09.

   He said the board must vote promptly on reassigning the students so Reizenstein or another building can be readied for them.

   Joe Smydo can be reached at jsmydo@post-gazette.com or 412-263-1548.
   First published on January 30, 2008 at 12:00 am

4. Save-A-Lot once again considering store for Hill

   January 29, 2008 5:40 pm

   Tuesday, January 29, 2008
   By Mark Belko,
   Pittsburgh Post-Gazette

   A St. Louis-based grocer might be ready to give the Hill District a second chance.

   Five years after passing on a chance to locate in the Hill, Save-A-Lot, a national chain with more than 1,200 stores in 39 states, has a renewed interest in the location.

   Landmarks Community Capital Corp., a subsidiary of the Pittsburgh History & Landmarks Foundation, plans to introduce the operator at a breakfast meeting today at the Grand Concourse restaurant in Station Square.

   Howard Slaughter Jr., Landmarks Community chief executive officer, said the group has been working for months to attract a grocery to the Hill.

   The effort, he said, is independent of the negotiations between Hill leaders and the city, Allegheny County and the Penguins over a community benefits agreement as part of the plan to replace Mellon Arena. One of the major demands in those talks is support for a Hill grocery.

   While not naming Save-A-Lot, Mr. Slaughter said the grocer involved already has visited the Hill and completed a preliminary assessment of its viability to support a store.

   “I would say they have a serious interest in locating in the Hill,” he said. “They’re very interested in that location. Their interest is in serving Centre Avenue, that main corridor from the Hill to Downtown.”

   Save-A-lot, a wholly owned subsidiary of Supervalu Inc., a Fortune 100 company and one of the largest grocery-related companies in the United States, considered the Hill for a store in 2003.

   But the company ended up deciding against it, with a spokesman saying at the time that it was unable to find a suitable location. He did not, however, rule out a possible return to the Hill at some point.

   Mr. Slaughter said a lot has changed in the five years since Save-A-Lot last considered the location. He said there has been much redevelopment in that time, including the new Oak Hill development and more senior housing.

   “When you see the new development occurring in the Hill District … it’s a world of difference and it makes the marketability much more plausible,” he said.

   Known for its no-frills approach, Save-A-Lot currently has stores in Crafton, Lawrenceville, Wilkinsburg, Duquesne and North Versailles. Its parent, Supervalu, not only supplies Save-A-Lots in the Pittsburgh area, but Shop ‘n Save and Foodland stores as well.

   Save-A-Lot boasts of annual systemwide retail sales in excess of $4 billion and claims to offer savings of up to 40 percent compared with conventional grocery stores.

   According to a news release from Landmarks Community Capital, the Hill store would offer fresh meats, fruits, vegetables, dairy items, bakery goods, and other assorted grocery and household items. Mr. Slaughter said it is open to the possibility of minority ownership. It also said the operator hires from within the community.

   “We believe this grocer provides an opportunity for residents to have quality food,” Mr. Slaughter said. “This is the best operator who we have found who is interested in coming to the Hill District.”

   Save-A-Lot officials could not be reached for comment.

   Carl Redwood, chairman of the One Hill Community Benefits Agreement Coalition, said it didn’t matter how a grocery operator was secured. What was important, he said, is that the operator “consult with and work with the community.”

   “It’s good that operators are interested. It’s important that the operator share with the community as part of the process and let the community know what their intentions are prior to it happening,” he said.

   The city Urban Redevelopment Authority and the Penguins each have pledged $1 million to help bring a grocery store to the Hill, and the team has been working to attract an operator to the area. Mr. Slaughter said there also may be state-financed low-interest loans available to the grocer.

   The preferred site for a store is a vacant tract of land near an existing strip mall on Centre Avenue, just above Crawford Square.

   Penguins President David Morehouse welcomed the interest by Save-A-Lot. He said the team has been approached by a “couple of other operators” about locating in the Hill.

   “We look forward to talking to [Save-A-Lot] as well as other operators who have expressed an interest in opening a grocery store on the Hill,” he said.

   City, county, Penguins and Hill representatives have been invited to today’s breakfast.

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

   First published on January 29, 2008 at 12:00 am

5. Save-a-Lot may put a food store in the Hill District

   5:36 pm

   By Jeremy Boren
   TRIBUNE-REVIEW
   Tuesday, January 29, 2008

   A St. Louis-based grocery store chain that specializes in serving inner-city neighborhoods could set up shop in the Hill District, according to the Landmarks Community Capital Corp.

   “This is a grocer who has a great connection to this market, is interested in developing in urban markets and is open to minority ownership,” said Howard B. Slaughter Jr., CEO of Landmarks Capital, part of the Pittsburgh History & Landmarks Foundation.

   Slaughter declined to identify the company, but he would not deny speculation that it is discount grocer Save-a-Lot, which is based in St. Louis and has five stores in the Pittsburgh area, including Duquesne, Wilkinsburg and Lawrenceville.

   “It has to be Save-a-Lot. It matches up in terms of the number of stores, and it likes those demographics,” said industry consultant Burt Flickinger III, managing director of Strategic Resource Group in New York.

   Slaughter said in a news release that the grocer has 1,200 stores in 39 states and is the nation’s fifth-largest chain. Those figures mirror statistics about Save-a-Lot on the company’s Web site. A spokesperson did not return a call seeking comment.

   Slaughter said he and the grocer will discuss a market analysis and site inspection of a possible Centre Avenue location for the store at an 8:30 a.m. news conference today at Station Square.

   The grocery store operator could be eligible for up to $2 million in loans from The Reinvestment Fund of Philadelphia to cover start-up costs such as buying land and recruiting employees, Slaughter said.

   Separately, the city’s Urban Redevelopment Authority and the Pittsburgh Penguins have offered up to $2 million in start-up financing to a company willing to open what would become the Hill District’s lone grocery store.

   The commitment is in response to neighbors who are demanding an agreement that includes provisions for a grocery store from the city, Penguins and Allegheny County before the $290 million Uptown arena is built for the Penguins.

   “It’s always positive to have operators that are interested,” said Carl Redwood Jr., chairman of the One Hill Coalition, a group seeking a community benefits agreement. “We just need to make sure that the community needs are met. There are some people in the community that wouldn’t call this their ideal store.”

   Redwood said some members of One Hill might not like a discount chain that lacks the amenities of some supermarket chains such as a pharmacy.

   In 2006, some Hill District residents rejected efforts by Aldi, a German-owned discount chain, to open a store on Centre Avenue because they believed it would ruin chances to attract a full-service grocery store.

   The neighborhood hasn’t had a full-service store since Shop ‘n Save closed its AUBA Plaza store on Centre Avenue in the early 1980s.

   Jeremy Boren can be reached at jboren@tribweb.com or 412-765-2312.

6. Hill District Could Finally Get Grocery Store

   5:36 pm

   January 29, 2008
   PITTSBURGH (KDKA)

   The Hill District may be one step closer to getting a much-anticipated, much-needed grocery store.

   Our news partners at the Pittsburgh Post-Gazette report that a Saint Louis-based company has confirmed its interest in building a “Save-A-Lot” store in the Hill.

   The preferred site for a store is unknown but one location under consideration is at Centre Avenue and Heldman Street.

   Company officials said the process is still in the preliminary stages at this point.

   Save-A-Lot has 1,200 stores in 39 states.

   The company looked at the Hill District in the 2004 and decided against putting one there.

   Watch the video at this link: http://kdka.com/local/Save.A.Lot.2.640355.html

7. Save-A-Lot confirms interest in Hill District grocery

   9:52 am

   Tuesday, January 29, 2008
   By Rich Lord,
   Pittsburgh Post-Gazette

   Officials of a St. Louis-based grocery chain confirmed today that they are interested in locating a store in the Hill District, a city neighborhood that has long sought a full-service grocer.

   But officials from Save-A-Lot said during a breakfast meeting at Station Square that the process is still very preliminary.

   The company is reviewing “multiple” sites, but a map distributed at the meeting indicated a possible candidate is at Centre Avenue and Heldman Street.

   Save-A-Lot, which has several stores in the region and distributes food to Shop ‘n Save and Foodland stores, typically builds $3 million groceries with about 15,000 square feet and 20 to 25 employees, officials said today.

   It has not decided on how it would finance a Hill store.

   First published on January 29, 2008 at 9:52 am

8. Hill District Could Be Getting New Grocery Store

   January 28, 2008 5:19 pm

   POSTED: 5:04 pm EST January 28, 2008
   UPDATED: 5:17 pm EST January 28, 2008
   WTAE TV: http://www.thepittsburghchannel.com/

   PITTSBURGH — The Hill District might be getting closer to having its own neighborhood grocery store.
   The Landmarks Community Capital Corporation, a St. Louis-based grocer, is interested in building in the Hill District.
   
   There is a breakfast planned for Tuesday morning at the Grand Concourse at Station Square where the company is expected to announce the plans.

   Hill District representatives, Pittsburgh and Allegheny County officials, along with representatives for the Penguins were invited to attend the meeting.

   Howard B. Slaughter Jr., Landmarks chief executive officer, would not identify the grocer on Monday.

   WTAE Channel 4 Action News will have more on the story Tuesday.

   Story courtesy of WTAE TV: http://www.thepittsburghchannel.com/