Category Archive: News Wire Services
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St. Louis-based grocer headed to Hill District
Monday, January 28, 2008
By Mark Belko,
Pittsburgh Post-GazetteA local group supported by the Pittsburgh History and Landmarks Foundation says it has a St. Louis-based grocer interested in locating in the Hill District.
The Landmarks Community Capital Corp. plans to introduce the potential operator during a breakfast tomorrow at the Grand Concourse at Station Square. Howard B. Slaughter Jr., Landmarks chief executive officer, would not identify the grocer today. It is believed to be Save-A-Lot, which is based in St. Louis and has more than 1,200 stores in 39 states.
Mr. Slaughter said Landmarks Community has been working for months to try to interest a grocery operator in the Hill. He said the search is independent of the community benefits agreement negotiations between Hill leaders and the city, Allegheny County, and the Penguins. One of the major demands of the One Hill Community Benefits Agreement Coalition and other Hill leaders in those talks is a grocery store for the neighborhood as part of the replacement of Mellon Arena.
“We independently looked for a grocer because we know the community has a need and we want to provide options to support that need,” Mr. Slaughter said.
Hill District representatives and city, county and Penguins officials have been invited to tomorrow’s breakfast. Save-A-Lot has looked at the Hill in the past and decided against putting a store there in 2004.
More details in tomorrow’s Pittsburgh Post-Gazette.
First published on January 28, 2008 at 1:48 pm
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Union Trust sale nears completion
By Ron DaParma
TRIBUNE-REVIEW
Saturday, January 26, 2008An investment group led by executives of the Mika Realty Group in Los Angeles is expected to complete the purchase of the historic Union Trust Building next week.
“Things have gone smoothly, and there have been no snags,” said Jeffrey Ackerman, commercial real estate broker with CB Richard Ellis/Pittsburgh, who has been marketing the 11-story, 800,000-square-foot structure on Grant Street since last year.The Tribune-Review reported in November that the building was under purchase agreement to the group that includes Michael Kamen, founder of privately held Mika, and a business associate, Gerson Fox, also of Los Angeles.
A purchase price has not been disclosed, but the building is assessed at $30.75 million, according to Allegheny County records.
Ackerman is working on behalf of the building’s owner, Teal Rock 501 Grant Street LP, a partnership owned by Philadelphia-based Cigna Corp.
“We look at the Union Trust Building as a classic building that can’t be duplicated,” Rick Barreca, CEO of Mika Realty, told the Tribune-Review in November. Barreca also one of the investors in the deal.A list of developers carried by a California business publication showed Mika as the 13th-largest developer in the Los Angeles area, with some 5.9 million square feet in commercial real estate developed.
“The buyers have hired an architectural firm to help design improvements for the building,” Ackerman said. The group has said it wants to upgrade the building without disturbing its historic character.
The building, which has been known as Two Mellon Bank Center, is widely regarded as one of the city’s most architecturally significant landmark buildings. It was designed in Flemish Gothic style by noted Pittsburgh architect F.J. Osterling and built in 1916 for industrialist Henry Clay Frick.
It has been nearly empty since Mellon Financial Corp. — now Bank of New York Mellon Corp. — moved its personnel out of the structure in May 2006.
A small number of mostly retail tenants remain on the first level, the largest being Lorrimer’s clothing store.
CB Richard Ellis will handle management of the building once the sale completed, Ackerman said.
Two of its brokers, Hugh “Herky” Pollock and Jeremy Kronman, already have been working on behalf of the buyers to pitch space there to potential tenants for first floor retail and the upper floor office space, Ackerman said.
“A number of large office users have looked at the building, and they also have some very exciting prospects for the retail,” said Ackerman, without disclosing names of companies involved.
“The office market really is very active right now,” said Kronman. He’s shown the building to numerous prospective tenants, in fact, “enough to fill up four times the available space,” he said.
“We have people looking for 50,000- to 200,000-square-foot blocks, and we haven’t really started our leasing campaign,” he said.
The national credit crunch that has had a major impact on the U.S. residential market hasn’t caused any problems with the Union Trust building deal, Ackerman said.
“The buyer has secured lender financing,” he said.
Securing financing was said to be a problem with a previous potential buyer, a New York investment group that included Houlihan-Parnes/iCap Realty Advisors of White Plains and J.J. Operating Corp. of New York City.
Ron DaParma can be reached at rdaparma@tribweb.com or 412-320-7907.
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Bringing East Liberty back to life
By David M. Brown
TRIBUNE-REVIEW
Friday, January 25, 2008With its ornate, arched entryway on Whitfield Street, the century-old former YMCA building in East Liberty evokes memories of when the neighborhood was a bustling retail district, second only to Downtown.
Older residents recall streets lined with restaurants, jewelry and furniture stores, movie theaters, supermarkets and a department store. That was before the neighborhood deteriorated as urban redevelopment backfired, analysts say, and use of the YMCA dwindled.
But on Thursday, officials heralded the five-story brick building as the focal point for revitalizing the business district in a neighborhood that has shown signs of rebirth.
The building will be converted into 35 condominiums on the upper floors and retail space on the first floor. A nonprofit corporation formed last year by the Pittsburgh History & Landmarks Foundation gave the project an $885,000 loan.
“This is the first project really in the core of East Liberty that’s really going to bring life back to the neighborhood,” Maelene Myers, executive director of the East Liberty Development Corp., said at a news conference. “I cannot say enough about partnership.”
The below-market-rate loan — the first announced by the new Landmarks Community Capital Corp.’s Urban Economic Loan Fund — also is helping the development corporation rehabilitate two historically significant homes on Rippey Street. The loan has been combined with a $250,000 grant from the city’s Urban Redevelopment Authority.“What’s happening with the ‘Y’ is a major piece of restoring old, viable East Liberty,” said Arthur P. Ziegler, president of the Pittsburgh History & Landmarks Foundation.
State Rep. Joe Preston, 60, of East Liberty noted that he and other public officials attending yesterday’s news conference played basketball at the YMCA when they were growing up. The YMCA was closed more than a decade ago, and the building is now vacant.
“It’s a good thing to see it coming back as something positive,” Preston said.
Neighborhood advocates say the first seed for the neighborhood’s rebirth was planted when the Home Depot opened on Penn Circle North in 2000.
Two years later, organic grocer Whole Foods made a successful debut on the other side of the circle at Centre Avenue. The Mosites Co.’s EastSide project brought in a Walgreens Drug Store, Starbucks coffee shop, and other retail outlets.
“We’ve seen a lot of success on the outskirts, but now we are in downtown East Liberty,” said Mayor Luke Ravenstahl.
Mark Meiser of Meiz Development Co., the Denver-based developer on the $7 million conversion of the YMCA building, said East Liberty is prime for developments such as the condominiums.
“The building is fabulous. I love the architecture. I love the setting,” Meiser said. “First and foremost, the timing is right for East Liberty. Whole Foods is nationally known as one of the best in the country. If they are here and prospering, that tells me the foundation is here.”
City Councilman Ricky Burgess, whose district includes East Liberty, said the project is important to adjacent neighborhoods.
“East Liberty has to be a magnet,” Burgess said. “It has to be bustling with development, with homeowners and shops. We hope to take this development further up and redevelop Brushton, Point Breeze, Homewood, the whole 9th Council District.”
David M. Brown can be reached at dbrown@tribweb.com or 412-380-5614.
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East Liberty Development Thriving; Hill District Falls Behind
POSTED: 1:20 pm EST January 24, 2008
UPDATED: 6:01 pm EST January 24, 2008WTAE TV: http://www.thepittsburghchannel.com/
PITTSBURGH — The tale of two Pittsburgh neighborhoods, both with harsh histories, is stirring up some controversy around the area.
East Liberty is in a renewal while many say the Hill District is being left behind.
The latest East Liberty development, announced on Thursday, will use a mixture of private investment loans and tax money.
Residents in the Hill District are still fighting for the city to set up a fund for development.
So, why does it work in one neighborhood and not the other?
The old downtown YMCA building in East Liberty hasn’t been used in years. Soon, it’s going to be turned into 35 brand new lofts thanks to a developer who hopes to breathe new life into the historic building.
According to developer Mark Meiser, the lofts will range upward of $250,000.
“First-time homebuyers, I think, is probably the biggest target market,” said Meiser. “Single women, I think, in particular with the medical market that is here in Pittsburgh.”
The project also includes renovating dilapidated duplexes on Rippey Street into eight condos in the $150,000 price range.
“Part of this plan is to eliminate that horrendous circle and restore the traditional historic street grid pattern with homes, and those homes will be explicitly affordable to a single moms with four or five kids,” said state Sen. Jim Ferlo.
“This project will rehabilitate and preserve several significant buildings in East Liberty while addressing the community’s needs for decent and affordable housing and encourage development in a community that’s fallen on hard times,” said Rep. Mike Doyle.
In the Hill District though, the One Hill Coalition is pushing the city for money. It wants the renewal that’s happening in East Liberty to happen in the Hill, too, but that effort has hit struggle after struggle.
WTAE Channel 4 Action News reporter Bob Mayo asked Pittsburgh Mayor Luke Ravenstahl to explain what’s the difference between East Liberty compared to the community-controlled funding Hill District activists are seeking.
“Well, this is different in that, you know, this is project-specific, and we’ve been very clear with the folks in the Hill District: project-specific projects are things we’re more than willing to fund,” said Ravenstahl.
Carl Redwood, of the One Hill Coalition, said he believes the scope of the Penguins new arena deal should set the stage for something different.“There are a number of project-specific proposals that are taking place right now in the Hill District that the city is supporting,” he said. “We wanted to make sure that there was an additional fund because of the new arena that was created, that could be under more community control.”
“I think we can be creative and find ways to fund projects in the Hill District just like we found ways to fund a project like this one,” said Ravenstahl. “And so I think that discussion has evolved and has moved to a good point.”
But Redwood said the Hill District community feels it knows best how to move forward with its neighborhood’s development.
“They gave the Penguins full control of all the parking revenue on the Urban Redevelopment Authority controlled parking spaces. They didn’t ask them for project specific things. The revenue goes to the Penguins. That’s not project specific. They changed the rules for the Penguins, but they won’t change them for the community.”
Story courtesy of WTAE TV: http://www.thepittsburghchannel.com/
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Allegheny County purchase of liens opens doors to development
By Justin Vellucci
TRIBUNE-REVIEW
Thursday, January 24, 2008Doug Van Haitsma looks at a three-story apartment building in Swissvale and sees the heart of a revitalized neighborhood.
Now that Allegheny County has bought back the lien — a legal claim for unpaid taxes — on the Monongahela Avenue property, Van Haitsma said his plan to convert it and 50 nearby parcels into a Mon Valley gateway is a step closer to reality.
“It’s a pocket within Swissvale that has really fallen on hard times,” said Van Haitsma, real estate director for the Mon Valley Initiative, a development group. “Having those liens in friendly hands … is a huge advantage.”
The county redevelopment authority agreed Wednesday to spend $1.625 million to buy back liens on 19,013 properties it sold a decade ago to GLS Capital Inc. The purchase includes vacant homes, commercial buildings and undeveloped lots in 129 municipalities — every town in the county except Pennsbury Village.
Officials hope the purchase spurs a development boom.
“We felt this was a pretty good deal,” said Dennis Davin, director of the county’s economic development office. “This gives us control of what happens at these properties.”The purchase also ends a 2007 lawsuit in which GLS accused the county of selling it “defective liens,” such as ones for sites the government planned to acquire through eminent domain, county solicitor Mike Wojcik said. The Virginia-based company sought more than $1.85 million in damages, court records show.
“It became cumbersome having to deal with them,” Wojcik said. “We can get GLS out of the picture now.”
GLS could not be reached for comment.
Attorney E.J. Strassburger, who helped file the lawsuit, forwarded questions to an attorney who didn’t return calls. Strassburger’s firm also represents the Tribune-Review.
The purchase represents just part of the 77,000 delinquent accounts GLS bought for nearly $50 million in the mid-1990s.
About one in every four of the purchased properties — roughly 4,500 — are in Pittsburgh. The city’s Urban Redevelopment Authority is interested in acquiring some liens in hopes of drawing developers to those properties, many of which are vacant, Davin said.
The head of the Pittsburgh History & Landmarks Foundation, which is restoring four Wilkinsburg homes once hit with tax liens, lauded the move.
“It sounds good to us because it (puts) the property back into the control of the county,” said foundation president Arthur Ziegler. “It would make renewal of them much easier.”
Patrick Shattuck, a ninth-generation Vermont native who moved to Wilkinsburg a year ago, agreed. He wants to turn vacant lots whose liens were bought by the county into parking and open space near his 108-year-old Edwardian home.
“The goal is to get the properties back into the hands of folks that are going to use them … and make these communities vibrant again,” Shattuck said.
The move to buy previously sold liens is not new. In 2006, Pittsburgh officials teamed with the Pittsburgh Water and Sewer Authority and Pittsburgh Public Schools to buy liens on more than 11,000 properties for $6.5 million. The city sold about 14,000 liens from 1996 to 1999 for $64 million.
Justin Vellucci can be reached at jvellucci@tribweb.com or 412-320-7847
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Landmarks lends $885K for East Liberty project
By Ron DaParma
TRIBUNE-REVIEW
Thursday, January 24, 2008An East Liberty project has received an $885,000 boost from a nonprofit corporation formed last year by the Pittsburgh History & Landmarks Foundation to spark community revitalization.
The loan, the first announced by the Landmarks Community Capital Corp. Urban Economic Loan Fund, is helping the East Liberty Development Corp. rehabilitate two historic homes on Rippey Street and revitalize the former YMCA building on Whitfield Street.
It has been combined with a $250,000 investment by the city’s Urban Redevelopment Authority to help bring a blend of condominiums and retail space to the neighborhood.
“The loan follows our mission of being a first-in, first-out financing organization for holistic community revitalization,” said Howard B. Slaughter Jr., CEO of Landmarks Community Capital, on Wednesday.
The loan is the largest made by Pittsburgh History & Landmarks Foundation to a community organization, Slaughter said.
The East Liberty Development Corp. is using $135,000 to rehabilitate the two Queen Anne style houses at 5809-15 Rippey St. — described as “historically significant, but dilapidated” — and convert them into eight market-rate condos. The work is under way on the $1.4 million project.
In addition, Landmarks Community Capital is partnering with Meiz Development Co. of Denver to develop 10,000 square feet of street-level retail space and about 30 to 35 market-rate condominiums on the upper floors of the five-story YMCA building. The remaining $750,000 will be used to acquire the property.
“These will be the first market-rate condominiums in our downtown core and will be a key part of the redevelopment of East Liberty’s town square,” said Maelene Myers, executive director of East Liberty Development.
When Landmarks Community Capital started operations late last year, Slaughter said he hoped to raise $10 million to $15 million to invest in community development and revitalization projects in Western Pennsylvania, West Virginia and Ohio.
In its first year, Slaughter said he hopes to fund at least four or five projects ranging from $25,000 to $1 million. “We’re on track” to make that number of investments, he said.
Ron DaParma can be reached at rdaparma@tribweb.com or 412-320-7907.
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East Liberty YMCA building being converted into condos – Part of goal to build 1,000 housing units in city neighborhood
Thursday, January 24, 2008
By Mark Belko,
Pittsburgh Post-GazetteThe YMCA building and four old dilapidated townhouses in East Liberty could get a new life as condominiums with the help of $1.1 million in funding, most of it from a subsidiary of the Pittsburgh History and Landmarks Foundation.
Mayor Luke Ravenstahl, U.S. Rep. Mike Doyle and other officials will hold a news conference this morning to acknowledge the $885,000 loan awarded by the Landmarks Community Capital Corp. to help finance the projects. The city Urban Redevelopment Authority is supplying $250,000 toward the YMCA project.
The $885,000 loan is the first awarded by nonprofit Landmarks Community, which came into existence about three months ago, and is the largest loan ever made by the Pittsburgh History and Landmarks Foundation to a community-based organization.
“It’s a smart investment on our part, working with a great organization that’s committed to making positive changes in the East Liberty core,” said Dr. Howard B. Slaughter Jr., Landmarks Community chief executive officer.
East Liberty Development Inc. has teamed with Denver-based MEIZ Development Co. to convert the vacant YMCA building at 120 Whitfield St. into 30 to 35 market rate condominiums plus ground-level retail and community space.
The $7 million project is part of a town square concept built around the East Liberty Presbyterian Church and the Carnegie Library.
“This is the first market rate housing to happen in the core. We’re really excited to save an old building and to breath new life into it,” said Ernie Hogan, East Liberty Development deputy director.
With the help of the Landmarks Community loan, ELDI already has acquired the YMCA building for a little more than $600,000. It and MEIZ hope to begin the development either this fall or in spring 2009.
The condos, which would range in size from 700 square feet to 1,500 square feet, would start at $185,000. The YMCA building was built in 1908 and at one time was a major activity center for the neighborhood.
On Rippey Street, the historically significant Queen Anne-style houses date to 1892. They have fallen into disrepair in recent years.
ELDI already has started rehab work on the properties. It intends to convert the houses into eight market rate condos, each with 1,500 square feet and a sales price of about $149,000.
It hopes to start construction of the units this summer and have them available for sale next year. The rehab is expected to cost about $1.4 million, with help from the Pennsylvania Housing Finance Agency and the URA as well as Landmarks Community.
“These are very wonderful historical homes that are going to be converted,” Mr. Slaughter said.
Mr. Hogan said the project is part of a commitment to the community to build 1,000 units of housing in the neighborhood. To date, 427 units have been completed.
“This is just continuing on that promise,” he said.
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
First published on January 24, 2008 at 12:00 am -
YMCA-to-condo revamp gets boost
Wednesday, January 23, 2008
by Ben Semmes
Pittsburgh Business Times
http://www.bizjournals.com/pittsburgh/Two planned East Liberty residential projects got a boost Wednesday with the announcement of a $1.135 million investment in the once struggling neighborhood.
The money, from the city’s Urban Redevelopment Authority and Landmarks Community Capital Corp., will go to fund the conversion of East Liberty’s former YMCA into condos and the rehabilitation of two distressed homes in the 5800 block of Rippey St.
East Liberty Development Inc. is overseeing both projects.
ELDI has been working with Denver-based MEIZ Development Co. to convert the former YMCA building into market-rate condominiums with first-floor retail at 120 Whitfield St.
ELDI purchased the property for $686,000 from the Center for Entrepreneurial Development Inc. last December, according to records filed with the Allegheny County Department of Real Estate.
The two Queen Anne style homes on Rippey Street will be converted into eight market-rate condominiums.
bsemmes@bizjournals.com | (412) 208-3829