Pittsburghopingfall 2012

DEVE LPittsburghOPINGFALL 2012

RESURGENT PITTSBURGH OXFORD MARKS 50 YEARS OF DEVELOPMENT

MID-YEAR MARKET SEGMENT UPDATES

2012 NAIOP BUYER’S GUIDE Civil & Environmental Consultants, Inc.

Whether already defined or yet to be, the highest and best use of real estate is achieved by identifying each site and/or facility’s unique conditions and constraints using accurate, unbiased and informed analysis.

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Year after year, CBRE is involved in more of the largest office leases and office investments sales in Western Pennsylvania than any other firm. The largest tenants in the market, the most prestigious landlords, and private real estate investors continue to look to CBRE as a trusted advisor for their most critical requirements.

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CONTE NTS 05 Publisher’s Perspective

27 Development Project Walnut at Highland

32 Eye on the Economy Uncertainty plagues the global economy but U.S. commercial real estate conditions continue to improve.

06 Feature / Resurgent Pittsburgh 36 Office Market Update Pittsburgh’s transformation is yesterday’s news. The vitality of the region’s healthcare, Jones Lang LaSalle education and research, natural gas and now, manufacturing sectors are creating jobs, soaking up commercial real estate and driving development. 40 Industrial Market Update CBRE

42 Retail Market Update Colliers International

44 National Market Update Grant Street Associates/Cushman & Wakefield. 18 Developer Profile / Oxford Development Marks 50 Years A partnership between two family real estate businesses has spawned one of the 48 Legal/Legislative region’s largest privately-held companies. The new generation of leadership combines Outlook best practices with family business ethos. Commonwealth Bank v. Kessler makes a big impact on mechanics 50 Benchmarks liens. NAIOP Corporate national chair Bill 54 News from Hunt talks about how Pittsburgh stacks the Counties up after a year of visits to regional chapters around the country. 64 Transactions of Note

2012 Buyer’s Guide 76 At the Closing NAIOP Pittsburgh president 69 Buyer’s Guide Lynn DeLorenzo. The 2012 NAIOP Buyer’s Guide puts contacts for designers, engineers, contractors and lenders in one easy-to-use resource.

www.developingpittsburgh.com 3 A Regional Milestone

It’s been 50 years since we first put a shovel in the ground and changed commercial real estate development.

We pioneered the regional mall, built iconic skyscrapers and are at the forefront of sustainable construction.

We have taken our skills and enterprise across the country and made our mark, but have never forgotten our roots here in western Pennsylvania.

Nor will we ever cease to be actively involved in our community, supporting its causes, providing for its needs and loudly and proudly calling it home.

Oxford Development Company celebrates 50 years in business mindful of how we’ve achieved that milestone:

Our People, Our Clients and Our Community.

Development & Project Management Property Management Leasing & Brokerage Services Investment Advisory Services

www.oxforddevelopment.com Publisher’s Perspective

PUBLISHER Tall Timber Group ack in sum- Like a test pilot, a developer’s risk www.talltimbergroup.com mer 2006, is that the more often they do their during the job better the odds are there will EDITOR planning be a crash. Jeff Burd of the first 412-366-1857 edition of Of course, Pittsburgh develop- [email protected] BreakingGround,B I debated whether ers have generally not fit the test to publish bi-monthly or monthly. pilot bill. Many of the developers PRODUCTION While I was thinking about the that call Pittsburgh home got into Carson Publishing, Inc. Kevin J. Gordon potential of the six extra advertis- commercial real estate after making ing opportunities, my publishing good doing something else. That partner – Carson Publishing’s owner formula tends to make you more ART DIRECTOR/GRAPHIC DESIGN Carson Publishing, Inc. Kevin Gordon – reeled me back in conservative. Now with lending Jaimee D. Greenawalt by encouraging me to get some- conditions approaching normal and thing out smoothly every other commercial real estate in short sup- month before I tried a monthly ply, the time for the conservative CONTRIBUTING PHOTOGRAPHY Carson Publishing, Inc. schedule. approach may be past. The vision of Jan Pakler the petrochemical industry and our Mark Grasso Six years later I doubt Kevin would regional civic leaders is for another Pittsburgh Regional Alliance give us a passing grade on ‘smooth- economic transformation to follow Rob Long ly’ yet but that didn’t stop me from the maturation of the gas industry, Charles Uhl accepting the opportunity to create complete with millions of square a commercial real estate publication feet of industrial and office space for NAIOP Pittsburgh when they ap- and hundreds of thousands of jobs. ADVERTISING SALES Karen Kukish proached me this past winter. And the petrochemical industry isn’t known for its patience. 724-837-6971 Our relationship with NAIOP has [email protected] been very rewarding and friendly That kind of growth will require MORE INFORMATION: for a number of years so taking this that developers anticipate demand DEVELOPINGPittsburgh is published by next step together, that of putting and build ahead of the actual need together a first-class information for the space. In real estate terms Tall Timber Group for NAIOP Pittsburgh resource for the real estate indus- that’s called speculative building, 412-928-8303 try, didn’t seem like much of a risk. something that is out of vogue www.naioppittsburgh.com these days. Developing a spec Risk is a subject that has been building isn’t a smart play in 2012. No part of this magazine may be reproduced without written permission on my mind a lot in recent years. But if the predictions about the by the Publisher. All rights reserved. These magazines we publish are impact of gas exploration and the the second venture I’ve started ethane crackers are true, the smart This information is carefully gathered and compiled since leaving my employer in 1994. play in 2012 may become the losing in such a manner as to ensure maximum accuracy. I still remember that I didn’t feel play in 2015. We cannot, and do not, guarantee either the that leaving a big corporation was correctness of all information furnished nor the complete absence of errors and omissions. Hence, as risky as my friends and family A rapidly growing economy gets responsibility for same neither can be, nor is, thought back then. Some of it was business a little out of its comfort assumed. probably an overactive self-confi- zone. Of course, adapting to no dence gland (and/or lack of sense) growth in the 1980’s was pretty Keep up with regional construction and real estate but I was also starting a business uncomfortable too. I have faith that events at www.buildingpittsburgh.com that had a capital outlay of a cou- the business community will have ple thousand bucks. Compared to more fun adjusting to the discom- the risks of developing real estate fort of expansion. that is a laughable level of risk. DP

Developers are willing to put a ON THE COVER: Mark Grasso considerable amount of their own Director of Corporate money at risk in order to get their Communications vision of how a property should be Jeff Burd Oxford Development Company developed from dream to reality. [email protected]

5 DEVELOPINGPITTSBURGH | Fall 2012 www.developingpittsburgh.com 5 6 DEVELOPINGPITTSBURGH | Fall 2012 Hey Skitch, the news about metro- there isn’t necessarily how did we politan Pittsburgh has an objective measure- get here? turned decidedly posi- ment of what makes tive of late. The region a city more livable or That line from the has been ranked on so more cool or whatever. movie That Thing You many ‘Top Ten’ lists in As enjoyable as it is to Do may well describe the last few years that see Pittsburgh on these the feelings of real es- it is actually getting a lists the more reward- tate professionals in bit old. ing news is the fun- Western PA about the damental state of the market during the past Many of these lists are market. For develop- few years. After more rather subjective, even ers, it is an understate- than two decades of a while being flattering. ment to say that it’s steady barrage of neg- While the ‘Most Liv- a good time to be in ativity – often origi- able’ kinds of lists all commercial real estate. nating from the local have some kind of met- press and politicians – rics or methodology, Resurgent Pittsburgh

www.developingpittsburgh.com 7 The road from struggling to thriv- Mon Valley, Beaver Valley or South “I started with PNC in 1972 and in ing took a lot of turns. When the Side, for example – the first actions the early years of my career there economy of Western PA was turned needed were more economic tri- were some tough times. The coal on its ear from 1980 to 1984, the age than revitalization. In the areas mines were shutting down and civic leaders of the region did not hardest hit by the downturn the first Consol was closing in West Vir- necessarily chart a path towards a concerns were about human services ginia,” remembers Donley. “I asked long patient recovery. It is certain rather than redevelopment but even an economist how you trained a coal that Richard Caliguiri, Sophie Masloff at that stage there were economic miner to be a computer programmer. or Tom Murphy would have gladly efforts tried throughout the region. Of course the answer was that you landed a ‘big fish’ to replace the Over time many of the smaller sub- don’t. The answer was attrition but steel industry. The leaders who put regional agencies gave way to larger, you didn’t want to hear that at the the strategies in place hoped for more concerted efforts. Each county time.” quick results but were prepared to learned to garner resources and see incremental gains in the economy how to market the advantages of Attrition is not a viable solution if that would be sustainable through the county. And at the regional level you are charged with attracting busi- good markets and bad. there were several agencies work- ness or running for office, however, ing with private sector leadership to and everyone in those situations was Pittsburgh’s turnaround story has promote the business climate and trying to do something proactive. been told many times by summer lifestyle advantages of Pittsburgh. 2012. The focus of those stories is The fragmented and regional ef- Not many of those projects were usually on the successes but the qui- forts weren’t without successes. the kind of overnight successes that et decisions that laid their sponsors hoped the foundation were would result. Some just as important. of the big govern- The answer to the ment initiatives or question of how we investments simply got here is that this needed time to fully is where we planned mature. Southpointe to be all along. is a great example of the singles and GETTING HERE doubles approach THE HARD WAY but until the late 1990’s the success “You don’t build a of the park was less market out of home assured. Several of runs; you build it the higher profile out of singles and projects initiated by doubles,” says Dick the City of Pitts- Donley, president burgh were also of Chaska Property slow to develop Advisors. “The good – like South Side Works – or missed market we have was Photo by Charles Uhl kind of an evolu- the mark altogether tion.” – as the Lazarus and Lord & Taylor invest- The evolution Donley speaks of was ments did. What not the kind Darwin explained in Pittsburgh was actually first named did emerge during this period was Origin of the Species. Conditions in ‘Most Livable City’ by Rand McNally the blueprint that would prove to be Pittsburgh’s commercial real estate in 1985. Software and computer ultimately successful, that of public market did not slowly deteriorate in research done at Carnegie Mellon private partnership. 1981; they collapsed as more than University spun off a number of suc- 300,000 jobs ultimately went away. cessful businesses, a phenomenon TURNING POINTS Starting from that low point, how- that accelerated during the dot com ever, the improvement was a func- boom. University of Pittsburgh’s Public private partnerships had long tion of time and a sort of real estate medical research and hospital system been part of the Pittsburgh land- natural selection. The building stock attracted increasing grants and the scape. Several of Pittsburgh’s most in 1985 was designed for an econo- behemoth that became UPMC started pressing problems over the years my that wasn’t here anymore. Like at to develop. The telecom boom of the had been solved by marrying govern- a vineyard, the existing stock needed late 1990’s created a new mini-indus- ment and business leadership. David pruning before new growth began to try for a few years. At the end of the Lawrence, Richard King Mellon, John occur. day, no successes were as effective Kane, Robert Doherty and Jack Heinz as the passing of time to transform were among the leaders who tack- For those areas that were ‘pruned’ the old economy. led air pollution, public transit and from the economic vines – the the downtown revitalization known

8 DEVELOPINGPITTSBURGH | Fall 2012 NAIOP Pittsburgh Officers Lynn DeLorenzo, President PWC Property Solutions

Daniel Puntil, Vice President Grandbridge Real Estate Capital

Lou Oliva, Secretary Newmark Grubb Knight Frank

Christine Vann, Treasurer Alpern Rosenthal

Richard Donley, Past President COMING EVENTS Cranberry Business Park Associates Domenic Dozzi, National Board Marcellus Shale: The Latest Jendoco Real Estate September 20, 2012 Gregory Quatchak, 7:30 AM National Committee Omni William Penn Civil & Environmental Consultants

DeWitt Peart, National Committee “North American Port & Intermodal Trade Pittsburgh Regional Alliance and Transportation System Trends” October 3, 2012 William Hunt, National Chairman 11:30 AM The Elmhurst Group Rivers Club Board of Directors at Large The expansion of the Panama Canal and its impact on East Coast ports will create emerging new distribution corridors and increase inland port Michael Belsky Columbia Gas of Pennsylvania opportunities. See how Western Pennsylvania will benefit. Jerry Bunda NAIOP Pittsburgh Night at the Fights Imperial Land Corporation November 1, 2012 W. Scott Caplan 5:15 PM Burns & Scalo Real Estate Services Inc. Omni William Penn Grant Mason Oxford Development Corporation NAIOP Pittsburgh’s Developers’ Showcase November 13, 2012 Brian Walker Allegheny Center Millcraft Industries Learn what professional site selectors and real estate investors have to say about the Pittsburgh region. Visit exhibits of regional developers and Wm. Randell Forister Allegheny County Airport Authority economic development agencies. Network with your peers. Michael Swisher NAIOP Pittsburgh Holiday Party Horizon Properties Group December 6, 2012 David Weisberg 5:00 PM Huntington National Bank Duquesne Club Committee Chairs NAIOP Pittsburgh Awards Banquet Jerry Bunda, Imperial Land Corporation Transportation March 14, 2013 Maureen Ford, ALCOA David L. Lawrence Convention Center Marketing/Communication David Weisberg, Huntington National Bank Programming Carl Belli, Continental Building Systems Visit naioppittsburgh.com or call 412-928-8303 for additional information. Membership Geoff Nara, Civil & Environmental Consultants Economic Development Ryan Klousnitzer, CONSOL Developing Leaders Board Representative TWO GREAT BRANDS. ONE REAL ESTATE POWERHOUSE.

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Newmark Grubb Knight Frank Tenant & Landlord Representation w Global Corporate Services w Investment Sales & Capital Markets w Property Management w Facilities Management w Appraisal w Project Management w Office w Industrial w Retail w Multi-family w Hospitality now as Renaissance I. That blueprint At roughly the same time as the Redd That project – which was concurrent created the Allegheny Conference on Up movement was getting underway with the Findlay Connector – also Community Development. A sig- a single lease inked at the South Side impacted one of Pittsburgh’s weak nificant turning point took place in Works had a similarly unexpected im- spots: the airport. “Once the miss- 2003 when the Conference became pact. When the Cheesecake Factory ing ramps and the Findlay Connector the umbrella for the merger of the opened in August 2004, the addition became reality it made the airport Pittsburgh Regional Alliance, the to the restaurant landscape didn’t corridor more viable,” notes Louis Pennsylvania Economy League of exactly create a new food culture but Oliva, executive managing director Southwestern Pennsylvania and the the popular food chain’s selection of for Newmark Grubb Knight Frank. Greater Pittsburgh Chamber of Com- the Soffer project as its second PA “That’s significant for this market merce. location gave credibility to the Pitts- because if you look at any major

“The completion of the I-79 ramps opened up tremendous development opportunities for Butler County, even more than I-279...”

Beyond the advantages of the combined resources of the organizations, the merger focused the business attraction efforts of the merged Conference on a broader 10-county region and placed more emphasis on enabling existing businesses to retain talent and expand. The new Photo by Mark Grasso Conference also focused the energies of the private sector leadership. The merged entity also provided a ‘go to’ resource for any company with an burgh retail market (not to mention airport corridor in the U.S. there are interest in locating in the region. co-tenancy clout). Since then retail- industrial developments surrounding ers with limited outlets, like Tiffany’s the airport.” Within a few years, several other or Nordstrom’s have put Pittsburgh events proved to be turning points on their maps. One of the commercial real estate that were the residue of a long-term turning points that may have turned plan and combined public private At the opposite end of the spectrum in part on the airport access from the support. Some were quantifiable was an infrastructure improvement north was the decision by Westing- and others went to impacting the that had been advocated by local house in 2007 to select Cranberry regional psyche, but all contributed government and business leaders Woods for its new headquarters. The to the confidence that characterizes (especially NAIOP Pittsburgh) for its decision resulted in roughly 1.2 mil- Pittsburgh today. potential to unlock development. The lion square feet of space in Cran- completion of the I-79/Parkway West berry. The project was the largest One of those factors that influenced ramps was an expensive and lengthy build-to-suit in Pennsylvania’s history our psyche was the manner in which project but the results have exceeded and was the largest office lease Bob O’Connor led the city as mayor. expectations. of the year in 2010. Dick Donley O’Connor’s style may have been believes that the Westinghouse deal less sophisticated than some of his “The completion of the I-79 ramps was more important than simply a predecessors but his enthusiasm was opened up tremendous development great real estate development. infectious. Programs like ‘Redd Up opportunities for Butler County, even Pittsburgh’ drew criticism for the more than I-279,” says Dewitt Peart, “There was a big improvement in parochial feel but the goal was pure “It’s a case book study of what well our mentality when the region kept Marketing 101. The mayor’s politi- thought out infrastructure planning Westinghouse,” he says. “I had cal instincts served the development can do. It also showed that we can’t feared for quite a while that they community well in his all too brief do [economic development] without were moving. That would have made tenure. private sector leadership.” a big hole in the region.”

www.developingpittsburgh.com 11 how far the reach ing the region,” he explains. “The of the region had combination of Pittsburgh 250 and gone. the G-20 gave us the forum to talk to the international media about the “Jim Rohr, with his transformation.” enthusiasm and salesmanship made Perhaps the most unexpected turn- a huge difference,” ing point for metropolitan Pittsburgh says De Peart. “His was the recession that followed the investment from a global financial crisis. The fear and regional perspec- loss of business that the collapse of tive – and the the financial markets spawned were region is only as certainly experienced in Pittsburgh strong as its core but as the recession played out it - was very impor- became clear that the symptoms of tant. The campaign the downturn, unemployment and showed what Pitts- declining property values, were less Westinghouse’s decision came as an burgh could be.” severe in this region. Employment effort aimed exclusively at changing remained almost two points higher the mentality of the region got un- Peart thinks that the Imagine Pitts- than the rest of the country through- derway. When James Rohr assumed burgh was effective because it set out the recession. Housing prices the role of chairman of the Allegheny the stage for what would unfold – which were at the epicenter of the Conference, the organization took during the Pittsburgh 250 celebra- collapse – remained steady in Pitts- dead aim at the negative impression tion in 2008 and the G-20 Summit in burgh and prices began to appreciate of Pittsburgh that persisted among 2009. He looks at those opportuni- again within a year of the crisis. many Pittsburghers and launched ties as the turning points that shifted the Imagine Pittsburgh campaign. the focus of the region’s new-found On a more practical level, the reces- Intended to support the celebration confidence outward. sion was important to Pittsburgh of Pittsburgh 250 in 2008, Imagine because the city was fortunate to be Pittsburgh showed how the regional “We went from constantly making home to some of the winners – or economy had been changed and just excuses to aggressively promot- at least the survivors – of the tumul-

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12 DEVELOPINGPITTSBURGH | Fall 2012 tuous market conditions. One of those, PNC Financial Services was one of the few giant banks that avoided the residential mortgage market during the bubble. Since the crisis, PNC has clearly emerged as one of the banking winners and its continued growth is behind the largest real estate project at the moment, the $380 million Tower at PNC Plaza.

A final turning point that changed the nature of the office market in downtown was the decision by UPMC to move its administration from Oakland to the USS Tower.

WHERE WE ARE NOW

One of the turning points not listed above is the Marcel- lus Shale play. The arrival of the gas industry came after almost all of the events that changed attitudes about Pittsburgh took place, but of course the impact of just the early stages of the exploration of the Marcellus and Utica Shale formations has been profound. Gas has had a transforming effect on dozens of small towns throughout southwestern PA and has been a further booster rocket to areas like Cranberry and northern Washington County that were already robust.

For commercial real estate, the gas industry has absorbed huge chunks of available office and industrial space. The industry has made a successful office park, Southpointe, even more successful. Gas has also created a commercial real estate market in Greene County where one virtually didn’t exist. And as summer 2012 winds down, the industry is turning the region’s softest sub-market, the Airport Corridor, into Pittsburgh’s next hot market.

It is difficult to predict how the natural gas business will ultimately change Western PA. In only eighteen months the industry has shifted its focus to southwestern PA and Ohio to optimize exploration efforts in a time of severely depressed gas prices. The real potential economic impact won’t come from the exploration, however but rather from the separation and refining of ethane into ethylene.

www.developingpittsburgh.com 13 GREENTREE DOWN TOWN SOUTHPOINTE AIRPORT GREENTREE DOWN TOWN SOUTHPOINTE AIRPORT DOWN TOWNPRIME GREETREE AIRPORT SOUTHPOINTE GREENTREE DOWNLOCATIONS TOWN SOUTHPOINTE AIRPORT GREENTREE DOWN TOWN SOUTHPOINTE AIRPORT DOWN TOWN GREETREE AIRPORTAIRPORT SOUTHPOINTEDOWNTOWN GREENTREE DOWN TOWN SOUTHPOINTE AIRPORT DOWN TOWN GREETREE AIRPORT

SOUTHPOINTESOUTHPOINTE GREENTREEGREENTREE DOWN TOWN SOUTHPOINTE AIRPORTBuILd yDOWNOuR BRAN TOWNd GREETREE AIRPORTfROM ThE gSOUTHPOINTEROuNd uP BurnsScalo.com 412.250.3000 From there grows the potential for office in the Cranberry Crossroads porate users are the key to the next manufacturing of plastics, chemi- development and is ready to start phase of new development. cal, fertilizer, pharmaceuticals and the first of two 48,400 square foot all forms of downstream products. flex buildings at the Commons at In the meantime, the current condi- That’s why the selection of Monaca Thorn Hill. Chaska is preparing for tions are proving to be very attrac- as the preferred site for Shell’s eth- construction of another building at tive to investors, especially those ane cracker could prove to be such Cranberry Business Park as well as from outside of Pittsburgh. During a boon to a region already feeling the first building at its new Pitts- the past year or so two of the higher prosperous. burgh International Business Park profile office transactions in the cen- in Moon Township. At Southpointe, tral business district involved out-of- At the time of Shell’s announcement Horizon Properties is in the process town buyers. 11 Stanwix Street was in March the regional economic lead- of selecting a contractor for its next purchased for $66.6 million by GLL ers were quick to point out that the 150,000 square foot office building Real Estate Partners from Munich, selection was far from assured (at and Burns & Scalo Real Estate’s Jim Germany and Highwoods Properties the same time expressing confidence Scalo is close to securing a that the choice would ultimately deal that will trigger construc- be made). They also made it clear tion of a 125,000 square foot that Shell was not the only producer new office building. looking for a cracker site. Indeed, another plant has been announced Scalo has also announced outside Charleston, WV. Even more plans for a 300,000 square exciting are growing whispers of foot building downtown. another cracker plant being planned There has been interest in the in Western PA, one that will get to building since its announce- the market even sooner than Shell’s ment in the winter. Leasing plant. interest in Millcraft’s Gardens at Market Square has also Whether or not any of the gas indus- been brisk. While nothing tries’ predictions about the future formal has been announced, for development come true, those reports of an agreement with projects and opportunities are still Deloitte have surfaced and the in the realm of potential. What is project’s contractor, Turner real at this point is a market with very little vacant space and lots of demand build- Whether or not any of the ing. There are the first signs of projects being developed gas industries’ predictions to provide some relief to the about the future for market but some headwinds exist. development come

The market fundamentals are true, those projects and very strong. Building owners opportunities are still in and developers are enjoying a seller’s market for rents. the realm of potential. Demand for space in the region’s most desirable sub-markets Construction has priced the – Oakland, Cranberry, Southpointe project more than once. Interest in paid $214.1 million for PPG Place. and downtown – is running ahead of Oxford’s 350 Fifth Avenue project While those are sales that grabbed supply by a significant amount. has also been higher than expected. the headlines, the evidence is that out-of-town interest is high for more Many of the region's developers The flurry of lease conversations on pedestrian properties too. In fact, used the time of slower activity dur- these office projects – as well as a roughly 35 percent of the transac- ing the recession to entitle projects half-dozen industrial developments tions over one million dollars in that have been in the pipeline. The of 100,000 square feet or more – Allegheny County this year involved spring and summer of 2012 have is the source of optimism for the buyers from outside the region. been marked by another round of regional real estate industry. The uncertainty about the global econo- recovery from the recession has been “We’re definitely having a lot more my but this year the end of summer marred by the unusually tight market interest from out-of-town investors. is bringing construction on some of conditions, which have put a damper We’re probably getting an inquiry those projects. on transactions. Optimism about per week,” says HFF director Kyle new development is being driven by Prawkzik. “With the amount of avail- In Cranberry, Elmhurst has begun a higher level of interest in space by able space, the low vacancy rates the work on its 90,000 square foot the region’s corporations. Those cor- and the number of firms quoting

www.developingpittsburgh.com 15 steady increases in rents over the – lenders aren’t next five years, Pittsburgh is get- quite in the ting a lot of attention all over.” position to offer Prawdzik points out that the root the capacity of the interest is the economic diversification of the real estate to finance all products in Pittsburgh. He says that buyers like hearing about the needed the lower unemployment and the development. various kinds of users taking up big chunks of leasehold in the region.

“I think they like the fact that our economy is based upon healthcare and new energy,” he says. Project Success. If you canvas the myriad of research publications done by brokers and real estate investment firms about Pitts- burgh’s market it’s easy to understand the attraction. It’s what our clients do. On average, the research projects rents increasing by between four and six percent annually over the next five years. Those kinds of income projections will make inves- It’s what we do. tors pretty happy, especially in a climate with interest rates at historic lows. As demand has spiked for certain classes of commercial buildings, and with relatively little supply being added to inventory, the conditions appear to be inflating prices.

“We’re in somewhat of a bubble right now,” asserts Paul Griffith, managing director for Integra Realty Resources. “There was a shopping center trade done [earlier this summer] on Route 8 in Gibsonia that was a seven cap rate. That product should never be a seven cap. I think we’ll see values skewed by the low interest rates.”

Real Estate I Construction I Manufacturing The idea that there could be a commercial real estate P. 412-227-2500 • F. 412-227-2050 bubble anywhere so soon after the peak of 2007 would seem preposterous, especially when many markets are www.BlumlingGusky.com still experiencing weak conditions. But bubbles can be inflated by a number of factors and no factor is as effective as more money chasing less product. Even if all the reported users looking for space pulled the trigger on new projects this year – something that is not going to happen – lenders aren’t quite in the position to offer the capacity to finance all the needed development. That means investors will be chasing the same properties and cap rates will remain hard to figure.

16 DEVELOPINGPITTSBURGH | Fall 2012 The skewed cap rate components are state has reorganized the Redevel- years went on the image of Pitts- one more factor that could cool off opment Assistance Capital Program burgh became more elevated around financing over the next year or so. As (RCAP), as well as some of the other the planet. Just as importantly, the good as Pittsburgh’s market condi- programs under the Department of image became more elevated here in tions are, there remain a few head- Community and Economic Develop- our backyard. winds to progress. ment. Fewer funds will be available in 2012. Commercial real estate is on some WHAT COULD STOP US? levels a confidence game. Without “I’m a big proponent of RCAP. We faith in the future prospects there The most immediate concern about have to have it if we’re going to do is little motivation for anyone to the regional real estate markets is urban development,” says Jim Scalo. build or expand. What the regional the weakness of the global economy. “There’s a round of RCAP grants out economic development leaders have One of the ingredients in the secret there right now but it’s only for proj- learned is that a strategy that builds sauce of the Pittsburgh turnaround ects that had prior authorization.” incrementally upon past successes is the globalization of its businesses. creates sustainable progress. Much While going global helped businesses The fiscal handcuffs that are limit- like word of mouth for a small busi- expand their prospects and custom- ing government now represent a ness, the reputation of Pittsburgh ers, it also opened them up to an- threat beyond the inability to fund has begun to be a principle market other level of the business cycle. The P3 projects. One of the key roles that driver. Perhaps the best indicator of weakness in Europe and China has government plays is the upkeep of the validity of that approach is the meant reduced sales for many com- public infrastructure and at all levels imitation of other cities. panies with headquarters or large of government that function is being regional presence in Pittsburgh. That deferred. Improved business condi- Former Allegheny Conference CEO in turn, has reduced some of the de- tions in the region will add revenues Mike Langley was hired last year by mand for space. A deeper downturn to the state and local coffers but the Minneapolis-St. Paul Regional overseas could hurt more. crumbling infrastructure impedes Economic Development Partnership growth as much as a shaky economy with the hope that he could create Another aspect of the current global can. Investment in key infrastructure in the Twin Cities a unified economic weakness is that there are still prob- projects was an important ingredient development approach similar to lems with financial institutions. In in Pittsburgh’s recipe for success and the one that the Allegheny Confer- Europe, the sovereign debt burdens reinvestment is needed to maintain ence had during his tenure. And in have caused default already. The the growth. January of this year, York County, PA ongoing discussions are about how merged its County Chamber of Com- much of a haircut Eurozone creditors In the suburbs, demand for land to merce and the York County Economic are willing to accept. Like with sub- develop real estate is up against Development Corporation to become prime mortgage defaults in 2008, the demand to develop natural resources. a one-stop organization for business. level of exposure of U.S. lenders is In places where natural gas explora- The county studied a number of EDC unknown at this point. Should it be tion isn’t happening, the word is out business models from around the high, banks will pull back on lend- about the strength of the economy country and chose to follow that of ing again. On the verge of jumping and land owners are feeling like this the Allegheny Conference. back into construction mode, Pitts- is their time to cash in. That’s good burgh developers would be forced to for landowners but rising land prices As much as anything else, the story slow down plans if credit were to be can ruin a development pro forma of Pittsburgh’s resurgence is the squeezed again. before a project can get off the story of a resurgent attitude. Con- ground. fidence in the region has been a For developers who have demand, powerful weapon in the arsenal of land and the wherewithal to finance Highmark’s purchase price for 24 the counties in southwestern PA as new construction there is still the acres in Cranberry Woods was rough- they work to make sites ready for threat of rising costs. In the central ly double what Landmark Properties new business. The strategy of hitting business district, the shortage of paid in 2011 for land on Dutilh Road, singles and doubles has led to some land and supply has created a cost just across Route 228 from Cran- home runs during the past five years. structure for new construction that berry Woods. The higher price would Even after 250 years, the story of makes new development difficult add at least $10 per square foot to Pittsburgh’s evolving economy is still for multi-tenant projects. Rents in the office buildings Landmark has in the early innings. downtown have moved briskly higher proposed. DP over the past five years but still remain significantly below the $32 to RESURGENT ATTITUDES $35 per square foot needed to justify new construction. Even in Oakland, What has truly been transformed where rents are in that ballpark, over the past five years has been there are other development costs the attitude of those who are in the that make urban development dif- commercial real estate business. ficult without subsidies to handle ex- The recession created hardships for traordinary site costs or parking. The Pittsburgh businesses but as those

www.developingpittsburgh.com 17 Developer Profile

Oxford Development Turns 50

o one likes to be considered typical, especially after 50 years in business. Perhaps it is more accurate to portray NOxford Development as a prototypical real estate developer for Pittsburgh. If nothing else, the company’s origins certainly have a prototypical Pittsburgh feel. Photo by Rob Long

18 DEVELOPINGPITTSBURGH | Fall 2012 The company we know as Oxford Development was founded in 1962 as an extension of two family real estate businesses. The patriarchs of the companies were Eugene Lebow- itz and Harry Soffer. Lebowitz was from Ellwood City but had reason to cross paths regularly with Soffer. During a lunch meeting in Oakland, the two ran into the president of Western PA National Bank (prede- cessor to Equibank), who told them of a property on which the bank was foreclosing on Craig Street. The banker wondered if either would be interested. As it turned out, both men were.

Rather than compete for the property, Soffer and Lebowitz decided to turn the project over to the next generation of their businesses to see how well they could market the building. Donald Soffer and Mark E. Mason, who was Lebowitz’s son- in-law, went to work leasing the property and had the building filled after graduating from law school Oxford partners Ed Lewis, Eugene Lebowitz up within a few weeks. Capitalizing at the University of Pennsylvania and Mark Mason (left-to-right without hats) at and practicing for a short time in on the success of the partnership the groundbreaking for the Monroeville Mall in the two families founded Don- Philadelphia. winter 1966. Mark Realty, with Lebowitz, Mason, Harry and Don Soffer as principals. Don-Mark was not in business long A year later Lebowitz’s son, Edward before the partners decided to pur- Lewis became the fifth principal sue an opportunity that was probably a bit over their heads. It was a project that would set the course for the company’s early years.

“We were told that both Horne’s and Gimbel’s were looking for a developer to build a shopping center on property they both owned in the South Hills,” remembers Mark Ma- son. “We were probably more aggressive than we should have been but we thought we could handle the project so we went ahead.”

Don-Mark purchased the 85 acres that were just south of the intersection of Route 19 and Fort Couch Road in Bethel Park and Upper St. Clair in late 1962. With two department stores as anchors they began the planning for what would Eddie Lewis Mark E. Mason

www.developingpittsburgh.com 19 BG_PJDICK_CLIENTS_pjdick 2/22/12 10:23 AM Page 1

Adventure Development, AGH-West Penn Hospital, Alcoa, Alcosan, Allegany School District of Maryland, Allegheny County, Allegheny County Airport Authority, Allegheny Ludlum, Allegheny Valley School District, Apple, Baker Young, Baldwin School District, Bayer, Bentworth School District, Bethany College, BNY Mellon, Burns and Scalo, California University of Pennsylvania, Canon- McMillan School District, Carnegie Mellon University, Center Area School District, Children's Museum of Pittsburgh, City of Pittsburgh, Conemaugh Health System, Connellsville School District, CONSOL, Diocese of Pittsburgh, Disney, Duquesne University, Edinboro University, Elteq Management, Elwood Mill Products, Fairmont Hotel, Federal Bureau of Prisons, Fourth River Development, Fox Chapel School District, Fuhrer Beverage, Gateway Financial, Genco, General Services Administration, George Mason University, Google, Grove City College, Hempfield School District, Hertz, Highmark, Horizon Properties, Howard Hanna, Indiana University of Pennsylvania, Jameson Health System, Kinkos, Kiski Area School District, Koppers, Larrimor’s, Manchester Bidwell Corporation, Maryland Department of Corrections, Maryland part·ner·ship DGS, Michael Joseph Development, Montour n. (pärtnr-ship) School District, Mt. Aloysius College, Mt. A relationship between individuals or groups Lebanon School District, Mylan, Ohio State University, Oxford Development, PA that is characterized by mutual cooperation and Department of Corrections, Pennsylvania State Employee Credit Union, Penn State responsibility, as for the achievement of a University, Pennsylvania DGS, Pine Richland specified goal. School District, Pittsburgh Parking Authority, Pittsburgh Penguins, Pittsburgh Post- Gazette, Pittsburgh Theological Seminary, PNC, Point Park University, Range For more than 30 years, we've enjoyed enduring Resources, REI, Robert Morris University, Rubinoff Development Company, Soffer, partnerships with leaders in commercial and Somerset County, Sony, South Fayette institutional markets spanning healthcare, School District, Sports and Exhibition Authority of Allegheny County, Springhill education, science, energy, technology and Suites, The Children's Home of Pittsburgh, Time Warner, Union Switch and Signal, business. That's why PJ Dick is the region's University of Maryland, University of Pittsburgh, UPMC, Upper St. Clair School leader in construction services. And it's why District, Urban Active, US Airways, US Army 75% of our clients keep coming back for more. Corp of Engineers, US Postal Service, US Steel, VA Pittsburgh Healthcare System, Walgreens, Walnut Capital, Washington www.pjdick.com County, Washington Wild Things, The Watson Institute, West Mifflin Area School District, Wheeling Hospital, YMCA of Western PA

The experience to take the best, and make it better.

A Drug Free Equal Opportunity Employer become South Hills Village. With To accumulate the properties in no experience developing major Monroeville, Don-Mark registered shopping centers, Mason says they a new company with the state of researched the latest projects, Pennsylvania, calling it Oxford even traveling to California to see Development Company. Before the construction of the Topanga 1966 ended, Oxford broke ground Mall outside Los Angeles. Topanga on Monroeville Mall, opening the Mall was the first enclosed mall in two-level, 1.3 million square foot California and one of the first in mall in May 1969. During the the nation to employ a multi-level planning of the mall, Oxford had design. Don-Mark hired the proj- acquired a much larger amount of ect’s architect, Welton Becket, who property than was needed for that had designed the Capitol Records project alone and over the next building and was in the midst of decade developed the Monroeville master planning Century City in Los K-Mart, Wickes and smaller retail Angeles. stores near the mall. Oxford also built a Marriott, the Expo Mart, It was during the construction of the Racquet Club Apartments and South Hills Village that Ed Lewis Pittsburgh Racquet Club, and the joined the firm. The mall opened in 90,000 square foot Westinghouse July 1965. At the time it opened, office building on the properties Oxford board chair Anne Lewis South Hills village was the largest surrounding Monroeville Mall. enclosed shopping center between New York City and Chicago. The next big expansion for the company would take Oxford to Soffer family exited from Oxford’s The success of South Hills Village Florida. As the Monroeville Mall ownership. The Soffer’s Turnberry whetted their appetite for de- was being constructed, Don Sof- Associates kept the Turnberry Isle/ velopment. The Aventura and Monroeville Mall mid-1960’s were while Oxford maintained ownership the years when of the Bell Tower properties in Ft. American consum- The next big expansion for the Myers and their mall in Parkers- erism was begin- company would take Oxford burg, WV. ning to grow. At the same time, to Florida. As the Monroeville “Don Soffer was particularly the move to the Mall was being constructed, dynamic and was very helpful in suburbs that had Florida,” says Mason. “Ed Lewis begun after World Don Soffer learned of an was also very dynamic and he was War II was chang- the driving force in Pittsburgh.” ing how people opportunity to purchase a shopped. The 785-acre parcel of ground in Ed Lewis’s vision and drive led Pittsburgh suburbs Oxford Development in a different were developing northern Dade County. direction at the end of the 1970’s. far enough away Mark Mason explains that Lewis from the city that was looking to do something sig- the centralized shopping in down- fer learned of an opportunity to nificant downtown at a time when town or East Liberty were becom- purchase a 785-acre parcel of the leadership of the company was ing inconvenient. Mason says that ground in northern Dade County. exploring opportunities other than they began looking at the eastern The property was mostly marsh and malls. suburbs for their next opportunity submerged land along the inter- as soon as the South Hills Village coastal waterway, but Soffer and “When you get into development, was completed. Lewis believed that South Florida’s everything is not the same – you growth would support an ambitious can’t take a cookie cutter approach “Monroeville wasn’t being served development over the long haul. to each shopping center – but you by the commercial market at the Don Soffer relocated to Miami to have to look for other opportu- time. The demographics showed be the point person for the com- nities to try,” he says. “It takes that the buying power of the east- pany in Florida. The development the same amount of smarts to do ern suburbs wasn’t being served,” was a planned community known development of any kind and we he explains. “We believed people in as Turnberry Isle and it eventually were looking for different venues the suburbs wanted to utilize the grew to include thousands of con- to develop. Ed had the foresight to suburbs instead of using town for dos, the Aventura Mall and the city see that a downtown office could their shopping, so we began accu- of Aventura. be successful and his vision turned mulating land in Monroeville after out to be correct. It was really an South Hills Village.” Don Soffer’s move to Miami was achievement.” permanent and in the 1980’s the

www.developingpittsburgh.com 21 we put a re-engineering plan in place to add service sector revenue Under Matter, the growth to the business while the company would balance sheet sorted itself out, which took quite a while.” leverage its experience and strategic assets Oxford was reorganized into four operating divisions that reflected to expand into fee- the diversification into related real estate services: development; generating businesses property management; brokerage that would offset the and business services. In 1990, the company formed Central Property risk of balance sheet Services, a cleaning business, and development. Bakewell Parking, which provided parking facility management services. Central Property Services became a success story of its own, What Mason is referring to is growing to 900 employees and the development of One Oxford building revenues of $32 million Centre, a 1.4 million square foot Retired CEO David Matter prior to its sale in 2009. office and retail center that was built on speculation. The project, and risk were part of change in The company also focused its ef- which has 850,000 square feet direction that would get structure forts on expanding its experience of office space, got underway in under David Matter. Guy says the in managing its own properties into 1980 and helped kick start what changes made sense, especially a third-party service for others. is now known as Renaissance II. since the market was taking away Within a decade, Oxford was able As construction of One Oxford some of the strengths of Oxford’s to grow that service to become the progressed, the region fell into culture heretofore. largest property manager in the one of the more severe recessions region. in its history. That period marked “You have to look at how Eddie the end of the steel industry as Lewis was, what made him great,” During this period, Oxford began a the economic driver of Western he explains. “Eddie was a risk taker successful run acting as the de- PA’s economy. One Oxford opened and the capital was his so he could velopment agent for institutional as the country was beginning to do so with a clear conscience. In owners in the region. In this role awaken to what President Reagan 1987 we were very, very aggressive Oxford works for some of the called the ‘new day in America.’ with how we developed. The poster largest organizations in the re- Leasing the building was not easy child for that was One Oxford, gion, serving as developer/program but the project was successful. which Ed started without a single manager for projects like UPMC lease.” Sports Medicine Complex at South By the late 1980’s the two remain- Side Works, the new Childrens ing principals at Oxford Develop- Matter took the reins of a company Hospital, CONSOL Energy Center, 3 ment began to throttle back and that had been developing risky PNC Plaza, the O’Reilly Theater and looked outside the family for a new commercial real estate projects for Theater Square for the Cultural Dis- president for the firm. more than 25 years. Commercial real trict. Oxford has worked extensive- estate was being plagued by tough ly for UPMC, even overseeing the “I knew at some point I was go- credit conditions following the Sav- construction of their new offices ing to want to stop coming in ings & Loan crisis and a national in USS Tower. That line of business every morning at 8:00 AM,” Mason recession was looming. What could continues to be an integral part recalls. “We wanted to bring in be done with guts and a good story of Oxford’s mix up through today, a strong businessman who might in the 1960’s and 1970’s was no as the company is involved with take the company in a different longer possible and Oxford Develop- the Center for Innovative Science direction. We hired David Matter, ment had become a mature property in Shadyside and the program to who had been the chief of staff for owner with assets to risk. Under rebuild and expand the West Penn Mayor Caliguiri.” Matter, the company would leverage Allegheny Health System. its experience and strategic assets Lewis was mindful that the capital to expand into fee-generating busi- Another client whose business grew markets were shifting dramatically nesses that would offset the risk of during Matter’s tenure was the and sensed that developers would balance sheet development. General Services Administration, not be able to do business the “David’s leadership began at a which selected Oxford Development same way in the future. The com- difficult period of time for real to do development/lease back deals pany had brought on Steven Guy in estate and Oxford certainly wasn’t for a number of federal govern- 1987 as chief financial officer and immune to that,” notes Guy. “I ment offices. his expertise in analyzing assets was CFO and David was COO and

22 DEVELOPINGPITTSBURGH | Fall 2012 The new construction option for the “There are great things proposed 350 Fifth Avenue fits into that PNC and the Piatt’s the fabric of the new Fifth/Forbes corridor. Rendering by DL Astorino. are doing all along that corridor. There are a

lot of synergies in that Oxford recently completed an ex- area,” says Guy. “We haustive five-year strategic planning process, the report of which began to think we were is being reviewed by the firm’s shooting too low in our ownership to set its course. The plan’s objectives are to maintain its plans for the building, growth of fee income and to ex- that perhaps there pand the services Oxford provides its clients. If all goes according to was a chance to do plan the company will announce something very special several new services in the fall. They plan to expand the role of there.” their investment advisory service, Oxford Real Estate Advisors and grow their ownership and manage- Oxford CEO Steve Guy David Matter successfully steered ment investment fund from which Oxford into more diverse business- Oxford does its own balance sheet es while continuing to develop new In the two years Guy has been development. commercial real estate projects. leading Oxford Development he has His role expanded to CEO when Ed worked to continue refining the di- And in their 50th year, Oxford is Lewis passed away in late Novem- rection he helped take the company planning a development that has ber 2006. Lewis’s widow Anne with Matter. He says the markets created a buzz again. On May 24th, assumed his role as board chair, will dictate their mix of businesses they announced 350 Fifth Avenue, steering the firm with Mark Mason but that his stewardship of the firm a project that will result in a new as vice-chair. Oxford continued the will reflect his personality. “I am a high-rise or re-purposed version practice of hiring strong leadership very careful balance sheet and risk of their office at 411 Smithfield from outside the family when Mat- analyst. We won’t take undo risks Street. Oxford Development began ter retired in 2010, elevating Steve with our capital but rather we’ll thinking about the project in 2010 Guy to CEO. rely on fee income and services.” as it was mulling over options for

www.developingpittsburgh.com 23 dealing with the aging Smithfield For winning results, turn to a property. Tenants had been leaving to go to newer buildings while still pay- team with proven performance. ing rent at 411 Smithfield. Oxford’s management concluded it could either allow the building to decline completely or invest in it. By not renew- ing leases the building will be empty by the end of 2012, which will allow them to gut and renovate it completely; however, the plan for the project also allows for the demolition of 411 Smithfield to clear the way for a new office tower. MB&M Law Teams: Real Estate “There are great things that PNC and Labor & Employment the Piatt’s are doing all along that Construction School & Municipal corridor. There are a lot of synergies Business Litigation in that area,” says Guy. “We began to Banking & Finance Estate Planning think we were shooting too low in our plans for the building, that perhaps there was a chance to do something Call 412-242-4400 very special there.” Guy characterizes interest in the project as “keen,” a conservative response to the question of leasing activity. “Going from ‘keen’ to ‘signed’ can be a very long road,” he says. Pittsburgh south side Works Wexford mbm-law.net After 50 years, Oxford Development remains a force in the commercial real estate market, both here and throughout the U.S. Through many transi- tions in market conditions and family generations, the leadership has been able to steer a course that has kept Connecting ideas, Oxford clear of the pitfalls that have capital and clients. claimed many of its peers over the years. There is another generation of Lewis’s and Mason’s at the firm, but the family and ownership is confident Grandbridge Real Estate Capital provides the vital link between complex market in allowing their corporate leadership conditions and capital solutions. As a national full-service leader in commercial and to manage the company. multifamily finance, we combine our wide range of capital sources with a knowledgeable and experienced team to deliver results, deal after deal. Steve Guy finds it interesting that he’s still asked how different things our scope of services includes: are now that he’s CEO. “People seem to think it must be different because - Freddie Mac Program Plus® Seller/Servicer | Seniors Housing David is retired after 20 years but - Fannie Mae DUS® we haven’t changed anything from - FHA-insured Loans | MAP and LEAN the plan he and Ed Lewis and I put in place in 1992,” he says. “David is - Nearly 50 Insurance Companies a good friend and mentor and I miss - CMBS | Institutional Investors | Pension Funds him dearly but we’re going to con- - Proprietary Lending Platform | Structured Finance tinue to do the things that have made - $26 Billion+ Loan Servicing Portfolio us successful to this point.” DP

C o n t a C t U s 3000 U.S. Tower, 600 Grant Street | Pittsburgh, PA 15219 Phone 412.391.3366 | Fax 412.391.7984 gbrecap.com/connect

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24 DEVELOPINGPITTSBURGH | Fall 2012 CouNTLeSS SoLuTIoNS, oNe rooF

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Development Project

alnut on During those two decades, de- construction of a hotel next to the Highland. velopers from within and outside Highland Building, the accumula- If you are Pittsburgh had advanced plans for tion of the additional parcels cre- in the renovating the Highland Building. ated an opportunity to address the real es- Most of these concepts attempted problem that had thwarted all the tate busi- to create housing or a hotel. In proposed projects to date: limited ness and wereW underwhelmed when 2005, Terminus Real Estate from parking. the Urban Redevelopment Author- Knoxville, TN purchased the proper- ity issued a request for proposal in ty to convert it into 184 condos but “The URA bought the [Highland] late 2009 for redevelopment of the couldn’t make the deal work. The building in the 1990’s and invited Highland Building in East Liberty, last of the proposals was a 2007 developers to decide what would you would be understood. The pro- plan to bring the Highland Build- be built. Frankly, we weren’t very posal – which was actually looking ing back to office use by Zambrano picky about what would go there,” for developers to re-purpose the Corporation. Along with a planned says Robert Rubinstein, director Highland and Wallace Buildings on new hotel at the corner of Centre of economic development for the South Highland, plus the former Avenue and South Highland, the URA. “There was not much inter- PNC Bank – represented the sixth renovation of the Highland died est in any of the opportunities. attempt to rejuvenate the signa- with Zambrano’s bankruptcy. We would enter into an option ture structure in East Liberty’s once agreement but the developer could prominent business district. The Terminus project provided an never make the project work. The important advance, however, even key obstacle was always the lack The Highland Building was built in though the development did not go of parking for whatever re-use was 1909 as one of the wave of high- forward. Under the name of High- being proposed.” rise office buildings that were pop- land Hotel LP, Terminus acquired ping up as a result of the advances the Wallace Building and the lot As the two previous developers in structural materials. Designed by between the two buildings. While struggled to deliver some sort of Daniel Burnham and developed by their plan aimed at demolition and project at the 121 South Highland A. C. Frick, the Highland Building is a 13-story office. The building was one of five Burnham designs constructed within a dozen years in Pittsburgh, including the Union Trust Building, the Pennsylvania Union Station, the Frick Building and the Oliver Building, which opened the same year as the High- land Building. While less ornate than the Beaux Arts style of the downtown Burnham projects, the Highland was a proud symbol of the importance of East Liberty’s commercial district.

Like the rest of East Liberty, the Highland Building declined after the fateful re-routing of Penn Avenue and urban renewal of the 1960’s. The building was put on the National Historic Registry in 1991 but had been abandoned by its owners a few years earlier and taken by the city for unpaid taxes. By 2009, the Highland Building had been vacant for over 20 years. The Walnut on Highland flanks the new parking garage. Rendering by Indovina & Associates.

www.developingpittsburgh.com 27 site in the latter half of the last decade, however, some fundamental changes were occurring in the fabric of East Liberty that would pave the way for the Walnut on Highland project.

In 2002, Whole Foods had located on Centre Avenue as the first piece of the East Side retail center that Mosites Co. was developing. That retailer – which arrived just after the Home Depot store opened on North Highland – kick started a revitalization that was in synch with the accelerating New Ur- banism movement. Along with a battery of redevelopment projects from eastern Shadyside to Garfield, several key employers located in the East End that would attract younger professionals. Coupled with Oakland’s employment center, East Liberty’s new employment base created a shortage of supply that set up real demand for what the neighborhood was lacking: market rate housing.

URA’s request for proposals in late 2009 drew two responses. One was for another hotel and the second, submitted by Highland-Wallace Joint Venture (a joint venture of Walnut Capital Partners and Mas-

“I think Walnut knew that apartments in the area were pretty well leased up,” he says. “The building lays out well for apartments. We didn’t really do analysis for any markets other than apartments – Walnut drove that – other than a little retail in the Wallace building.” Photo by Charles Uhl

28 DEVELOPINGPITTSBURGH | Fall 2012 saro Properties) called for converting the Highland and Wallace into apartments with a 182-car parking garage. The latter proposal also included roughly 15,000 square feet of ground floor retail but it was the 129 units of market rate apartments and the parking solution that won the day.

Walnut Capital is one of the largest apartment owners in the city, with the heaviest concentration of its units located between Oakland and Shadyside. The company was also at the time wrapping up the largest commercial development in the East End, the Bakery Square project. That experience guided the proposal for Highland/Wallace from two different directions.

“We are very familiar with the residential market in the area. Our properties are generally in the core university markets and are basically 100 percent occupied,” explains Todd Reidbord, president and principal at Walnut Capital. “There are now a tremendous number of people working nearby and DEVELOPMENT about 60 percent of them live in the area.”

Massaro Properties brought to the partnership their experience with some of the alternative financing measures that would be needed, as well as the construction. David Massaro, president of Massaro Properties, says that the end use of the project was fairly self-apparent. “I think Walnut knew that apartments in the area were pretty well leased up,” he says. “The building lays out well for apartments. We didn’t really do analysis for any markets other than apartments – Walnut drove that – other than a BROKERAGE little retail in the Wallace building.”

For the URA there was a lot of attraction to the apartment proposal. Rubinstein says that they saw the proposal meeting a recognized demand for the market, as well as fitting into a strategic need for the redevelopment of East Liberty.

“Having Walnut Capital as a partner couldn’t have been a better fit because they have thousands of PROPERTY units and many of their tenants are from out of town that came to work at the hospitals, universi- MANAGEMENT ties and tech companies like Google,” he says. Ru- binstein explains that those kinds of residents were a key missing asset to the new East Liberty. “The ‘Main Street’ of East Liberty has shifted from Penn Avenue to Centre where most of the new investment has been made, but you can walk one block from Centre on Highland and it is still blighted. The lynchpin in the historic East Liberty core is getting people to live there.”

Pittsburgh’s mayor agrees. “The Highland and Wal- lace buildings stand at a critical spot in the heart of East Liberty, a neighborhood that has undergone a tremendous transformation over just the last few years,” says Mayor Luke Ravenstahl. “The historic rehabilitation of these properties will complete the comeback of this intersection, and now all four

www.developingpittsburgh.com 29 corners will be active with new plains Massaro. Solving the design plied for RCAP grants totaling $4.6 shops and restaurants. Attracting problem didn’t alleviate the feasi- million and received approval from new people to live and work in the bility issue, however, which meant Gov. Rendell in late 2010. Like area is an important link to the making full use of all financing op- other grant applicants, the story continued rebirth of East Liberty.” tions available. “No matter how it didn’t quite end there for Massaro was configured, the project doesn’t and Walnut Capital. Rubinstein makes the point that appraise at the value you need to the neighborhood had become safe get the right deal. The rents aren’t The Highland-Wallace grant was but that having full-time residents there to support the financing. We approved in the last two weeks of will add to the perception of safety really needed the private/public Rendell’s term as governor as part and extends the retail hours in the partnership to make this work.” of $84 million in grants that Repub- core. He points out that 75 percent licans felt included favors to Ren- of Target’s employees are within The developers planned to make dell’s friends. Incoming Gov. Corbett walking distance to the store but use of the historic tax credits decided to thoroughly review all none live in the blocks immediately available for the restoration of the the applications that were approved adjacent. Highland Building but their sale to assure their qualifications were was not going to cover the gap in valid. The Highland-Wallace grant Of course, having an established financing. As with previous de- was not one of those being cast demand and experienced devel- velopment attempts, this project as a political favor but the grant opers doesn’t guarantee smooth was coming up short because of was nonetheless held up. As sum- sailing. Regardless of the suitable the cost of providing parking but mer 2011 wound down the part- match for residential units there there was an option that Highland- ners began to get concerned about was still the task of building the Wallace JV pursued that would whether or not the release of the parking and that hurdle looked make the project work. The state’s funds would happen in time to meet insurmountable. Redevelopment Assistance Capital the deadline for their HUD funding Program (RCAP) was designed to package; however, circumstances “We looked first at underground fill gaps in financing for projects conspired to make that deadline parking but that was too costly and that were essential to employment a non-issue. The RACP grant was ended up with a design that put creation or other economic ben- finally released in late 2011, giving an above ground parking garage efit or that had historic or cultural the Highland-Wallace project the between the two buildings,” ex- significance. The developers ap- solution that others had missed.

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30 DEVELOPINGPITTSBURGH | Fall 2012 When asked what the biggest With the public participation and patronize the neighborhood and challenge of the development the property type du jour, the the company turned the building was Reidbord quickly responded, Highland-Wallace team was able back to the lender. Today, more “Definitely figuring out the parking to secure conventional financing than a few observers have noted and how to pay for it. Parking was working with WesBanco, Dollar that Joe Massaro – who was raised critical because no one is going to Bank and Tri-State Capital. “Our in East Liberty – was ahead of his rent in an urban high-rise without timing for conventional couldn’t time, but David Massaro has a more it. We were able to figure out how have been better. Apartments are practical view. to make the parking work in a way the hottest property type for com- that others hadn’t” mercial loans.” “You could say we were ahead of our time but you could also say David Massaro says that the financ- The design for the project was we weren’t very smart,” he jokes. ing for the project was a challenge done by TKA Architects. The park- “The Highland project is kind of a in general. “The capital stack for ing garage was designed by Indo- homecoming for my family. Because this project is fairly complicated,” vina & Associates. According to of the history there, East Liberty is he notes. “It wasn’t a conven- Reidbord, the plans are very much special to us. In its day, the build- tional financial deal. There was our in keeping with the lifestyle needs ing was a medical office. My dad equity, the historic tax credits and of the target renters. grew up on Larimer Avenue and the RACP grant. For the loan we went to the doctors there. Todd’s started down the path of the HUD “I think they will be very attractive family is from the area too and his 221(d)(4) program.” to people who are new to the area. father’s dentist was in the build- It’s what’s expected by someone ing.” With the financial markets still looking for an urban lifestyle,” he healing from the crash of 2008, explains. “There will be one- and “My father is from the East Liberty/ the HUD loan program, which was two-bedroom units. The smaller Highland Park neighborhood and for new construction and substan- apartments will be 500 to 600 was in the Highland Building many tial rehabilitation of multi-family square feet and the two-bedrooms times,” Reidbord says. “He is my projects, became popular among will be in the 800 to 900 square resident historian for the project.” developers. The 221(d)(4) program foot range. The units are clean, offered desirable rates and loan- modern designs, with open layouts, Reidbord is quick to point out that to-value ratios that were above 80 granite kitchens and stainless steel their development of the project percent, a ratio that far exceeded appliances. The building will have stands on the shoulders of many what was available from private an exercise center and a roof-top partners. lenders. On the other hand, the deck for the residents’ use.” recession had created a much “We’ll take a little credit for figur- larger pool of renters and multi- Construction got underway on the ing out what would work but the family projects became the rage renovation in March 2012, with the URA and East Liberty Development almost overnight. That meant that construction of the garage slated (ELDI) have long been champions of the HUD program was almost the to start by Labor Day. Massaro Cor- doing more housing – more market only game in town. Combined with poration is handling the construc- rate housing – in that neighbor- HUD’s deliberate due diligence pro- tion with a completion target of hood,” he says. “There was a lot of cess, the volume made the review May 15, 2013. investment made in infrastructure more difficult. and planning that went ahead of “I think the Walnut guys would like us.” “It was a perfect HUD develop- to have the building by April if they ment, an urban apartment, but we could,” says Massaro. “They are Massaro agrees. “We’re not the were turned down three times be- handling the marketing and leas- pioneers here. I give a tip of the fore getting approved,” says Mas- ing and there are 50 or so names hat to Steve Mosites. He took a risk saro. “We worked with Bellwether on the waiting list for apartments ten years ago with Whole Foods twice through the process and then already.” A restaurant has signed and planted his flag in the ground appealed to get approved but only a letter of intent for most of the in the neighborhood,” he says. with conditions. By that time we retail space that was available as “I also have to say what a good realized that the time we needed well. partner the ELDI was. Maelene My- to get through the conditions could ers [ELDI’s executive director] was mean we couldn’t get the project Developing the project also has a instrumental, as was Rob Stephany done by our target opening in May bit of ‘back to the future’ in it for when he was at the URA. ELDI did 2013.” the partners. Massaro Corp. reno- a great job of long-term planning vated the Motor Garden Square in and development to get us to this “It turned out that having time on the mid-1980’s, creating a retail point.” our side was a plus because it gave center that was intended to revital- DP the banks a chance to get friend- ize East Liberty in the manner that lier about lending,” he continued. the East Side and Bakery Square Both loan conditions and rates had projects have today. As it turned normalized by the end of 2011. out, shoppers weren’t ready to

www.developingpittsburgh.com 31 Eye on the Economy

o matter conservative instincts as question Certain regions are still experienc- how robust marks have arisen this past spring. ing softness of demand or overbuilt the health Paramount among these concerns inventories but as a whole the of the are the much slower pace of job fundamentals of the supply and Pittsburgh growth and subsequent stalling of demand are firming; moreover, the economy in the high unemployment rate, the commercial market is behaving in the dog daysN of summer 2012, the continued saga of the unraveling a way that is predictable. As the near term outlook for commercial Eurozone and, of course, the fall markets free fell in early 2009, an real estate is still weighed down elections. interesting report by the MIT Cen- by the sluggishness of the national ter for Real Estate put the plung- and global economies. Much like a In the fourth year of recovery the ing commercial real estate values swimmer dragging a ball and chain, economy is really a multi-faceted into an historical perspective and the regional economy is showing creature, with varying levels of accurately predicted the nearly 50 signs of fatigue. health or decline across various percent decline that occurred. MIT’s regions and sectors of the market. data also showed that the precipi- At the root of the problems fac- Such a shifting landscape is com- tous crash – while wrenching and ing the economy is the uncertainty mon as a recovery takes hold. What seemingly unprecedented – was about the health of businesses, is not as common is the disparity of actually quite normal for the 12 to consumers and governments in the conditions this far from the trough 15 year cycle. MIT professor, Dr. coming year or two. Given what of the recession. David Geltner even noted optimisti- the American business owner has cally that the decline also signaled endured during the past three or One facet of the economy that is the beginning of the re-inflation of four years it is not unexpected that showing consistent and improv- the CRE bubble. According to the he or she should revert to more ing health is commercial property. July CoStar Commercial Repeat Sale Indices (CCRSI) Geltner’s forecast appears to be coming true.

CoStar looks at repeat sales each month and compares the pricing to more than 100,000 repeat sales since 1996. This research has created several key indexes to measure the trend and magnitude of price movement in commercial categories for both investment grade and general commercial properties. The most recent month surveyed was May 2012, during which 853 repeat sales were analyzed. The results show pricing that is gain- ing in all segments.

The indexes measure pricing by weighting more heavily for larger transactions (Value-Weighted), smaller and medium Absorption rates for CRE have recovered from the trough of sized transactions (Equal- the recession but have leveled off below the 2007 peaks. Weighted), as well as segmenting sales into investment grade and

32 DEVELOPINGPITTSBURGH | Fall 2012 general quality. In May each of Perhaps the most ment increased in 29 states and the the four indexes showed gains District of Columbia and decreased year-over-year, an indication that positive indicator for in 21 states. Compared with June the recovery in property pricing is continued pricing 2011, employment increased in all reaching across all size and quality but six states, but anecdotal indica- dimensions of the commercial real growth for commercial tions are that the momentum for estate sector. property is the adding jobs has decreased.

The Value-Weighted Index climbed continued decline in The surprising expansion of to its highest level since Febru- distress sales… fewer 163,000 jobs in July offers hope ary 2009 in May, showing a 36.1 that a new hiring trend is underway percent increase since January distress sales occurred but that jury is still out. 2010. CoStar points out that the in May than any month improved Value-Weighted Index re- The July 16 quarterly survey of 67 flects strong investor demand for since mid-2009. corporate economists of the Na- properties that have been at the tional Association for Business Eco- lead in recovering value, like pri- nomics (NABE) indicated that plans mary metro areas and institutional in fact following the steep correc- to hire were cooling as well. Their grade multi-family properties. The tion in pricing and inventory that survey showed that only 23 percent Equal-Weighted Index climbed 6.6 occurred following the recession of the businesses surveyed planned percent over May 2011, the largest and financial crisis. Like the hous- to expand hiring in the third quar- monthly gain since before the re- ing bubble, the peak in CRE value ter. “The survey results suggest cession began in 2007. CoStar sees was heightened by artificial factors worsening economic conditions this as an indication that demand rather than in response to excess through increased flatness in sales for smaller and lower-quality assets demand or short inventory. The low and profit margins, less upward has caught up with the institutional levels of new construction from pressure on employment, weaken- grade property demand. 2009-2011 have as much to do ing optimism concerning real [gross with the current increase as does domestic product] growth, and That pattern of broad-based im- any growing demand. For demand rising concerns about the impact of provement held true when ana- to drive the next stage in expan- the European crisis, potential U.S. lyzed by asset quality, regardless sion, an improved general economy government spending cuts in Janu- of transaction size. Net absorption will need to exist. ary, and the expiration of Bush-era of investment grade office and tax cuts in December, although distribution space was relatively At mid-year, the jury is very much there are fewer inflationary pres- strong during the second quarter out on the direction of what is a sures,” said survey chair Nayantara of 2012. Absorption of offices and stalled economy. Hensel. warehouses of general commercial quality was positive, offsetting de- No single factor could determine Another survey showing sluggish clines in retail net absorption. The the direction of the next phase of or mixed results was the Federal trend in absorption of lower quality the business cycle as much as a Reserve’s quarterly Beige Book of properties has nonetheless been change in the unemployment rate. economic activity, a summary of positive overall throughout 2012, After declining by nearly two per- informal responses about business pushing prices upward. centage points and several million conditions in its 12 districts. Re- jobs, unemployment is hovering at ports from eight of the 12 Federal Perhaps the most positive indica- 8.2 percent in July and total em- Reserve districts “indicated that tor for continued pricing growth ployment has stalled at 140 million overall economic activity continued for commercial property is the jobs, some six million below peak to expand at a modest to moderate continued decline in distress sales. employment. The Bureau of Labor pace in June and early July,” the By CoStar’s measure of distressed Statistics (BLS) reported in July Fed reported in the July 18 Beige pricing, fewer distress sales oc- that hiring in the second quarter Book. The New York, Philadelphia curred in May than any month since had created an average of 75,000 and Cleveland districts noted that mid-2009. jobs each month compared to the activity continued to expand, but at monthly average of 226,000 in the a slower pace since the last report, Commercial real estate values are first quarter of the year. BLS also while Richmond cited mixed activ- a lagging indicator of the health of showed that in June, seasonally ity. the economy. The current trend is, adjusted nonfarm payroll employ-

www.developingpittsburgh.com 33 formation has been positive in terms of home prices and sales. June’s housing start data, which showed the new construction rate at 760,000 units, offers a broader hope for the economy. That rate is still well below the household formation rate. Residential construction creates a large number of jobs and an increase in the number of units to one million would drop the unemployment rate below seven percent. And that would have positive ripple effects throughout the economy.

The more derivative trend that could result from another year of suppressed growth is Sales of distressed properties fell to the lowest share of the market since an acceleration of the April 2009 but remain several times higher than historical norms. normalizing of lending conditions. Banks and lenders have been able to build reserves during the past few years but cannot boost earn- One significant cause of the stag- dependent on high energy prices ings growth without using that nation is the slowdown overseas. and European consumption. The cash to make loans. Increasing While the European Union is get- weakening of BRIC economies is earnings pressure has increased ting most of the headlines, it is the a function of lower demand from competition among lenders and cooling off of the higher-octane developed countries, resulting in with demand for loans slowing, emerging economies in Brazil, Rus- reduced exports and weaker com- that competitive pressure is likely sia, India and China that is giving modity prices. The withdrawal to lead to more favorable under- U.S. corporations headaches. These of European banks, which have writing conditions than have ex- four countries – the so-called BRIC historically been major lenders to isted since the financial crisis. nations – have provided markets emerging markets, has decreased for global manufacturers and their the flow of money to countries What most of this macroeconomic growth fueled the latter years of needing foreign investment. outlook means is that consumers the last boom cycle. and business owners have too many For American businesses, the conflicting signals and too few For anyone still clinging to the idea slowdown in emerging markets has clear indicators of what is com- that modern economies can oper- reduced revenues and profits. Even ing next. That uncertainty does ate de-coupled from the rest of the stellar companies like Apple have little to inspire or feed confidence world, the current status should seen the cooling – in China particu- and confidence is a key ingredient shatter that illusion. The situation larly – impact earnings and sales in the recipe for commercial real has a real ‘circle of life’ feel, but since spring. estate. It appears more likely that without the happy Lion King-Disney the picture will not become clearer ending, at least for now. From among the mostly gloomy until the outcome of the November news there are a couple of trends elections are known and a reading Europe was an important market to watch that would point to more on the consumer’s Holiday spend- for Chinese and Indian goods. The immediate improvement. The big- ing is seen. steepening recession in Europe gest and most direct of these is DP has chilled consumption. China’s a recovery in the housing market growth is slowing rapidly. India and that leads to a significant increase Brazil have also lost momentum, in new construction. Both regional with growth weakening. Russia is and national housing market in-

34 DEVELOPINGPITTSBURGH | Fall 2012

Office Market Update

almost half-a-million square feet of planned office is on the cutting room floor. Is that a bad thing? Prob- ably not. With a slight pullback from nuclear and Marcellus users of late, coupled with the ongoing construction of Cranberry Crossroads, an available pad site at Summit of Cranberry Woods and the ever-expanding Cranberry Busi- ness Park, office users in the North head into the balance of the year and 2013 with as many – or more – options for space than they have seen in some time. In the longer term, the Northeast corner of I-79 and Route 228 will provide Cranberry Town- outhwestern at a breakneck pace, affecting the ship with a new pool of office sites Pennsylvania office landscape by absorbing acre- as its infrastructure progresses. witnessed yet age otherwise slated for build-to- another season suit and speculative office devel- Over the past several years, of strong office opment. In Pine, 35 acres of what stretching as far back into the early leasing activ- would have been an expansion of 2000’s, suburban conversation ity duringS the first half of 2012 Copperleaf Court is now captive has been dominated by Cranberry and the balance of the year is set to Highmark’s use. And the most and its I-79 counterpart, South- to change the landscape of prod- accessible confluence of Interstate uct offerings. In Pittsburgh’s core, highways in the all eyes will be on projects such as region – the The Tower at PNC Plaza, Millcraft intersection of Industries’ The Gardens in Market I-79 and I-76 on Square, McKnight Realty Partners’ Routes 228 and progress in converting The Oliver 19 in Cranberry Building to mixed use, the fate of – is the venue for The Union Trust Building, Continen- the latest race in tal Real Estate’s next endeavor on the health sys- the North Shore and the Penguins’ tems’ expansion. positioning of the former Mellon With Highmark’s Arena site for development. With purchase of 25 Class A vacancy still sitting in sin- acres in Cran- gle digits, how these developments berry Woods and unfold will undoubtedly impact UPMC’s pend- tenant decisions well into 2013. ing acquisition of more than The suburbs are also positioned 30 acres at the for an exciting conclusion to the neighboring year. Perennial healthcare super- Summit of Cran- powers UPMC and Highmark are, berry Woods,

36 DEVELOPINGPITTSBURGH | Fall 2012 In Southpointe, pending projects could spell the end of available acreage for development on the west side of I-79 and spur Washington County ’s leadership to initiate infrastructure improvements across the interstate at Cool Valley.

pointe. It’s taken awhile, but the Parkway West has recently stood up for itself with a string of note- worthy transactions that will shift leverage somewhat from the tenant to the landlord. Deals such as Chevron at Cherrington Corporate Center, FedEx’s significant expansion at Omega Corporate Center and the Williams Oil & Gas lease at Park Place combined to send developers back to the drawing board for new construction opportunities Innovative Solutions. Outstanding Support. in the airport corridor. The joint venture between Continental Real KU Resources, Inc. provides a full range of environmental management and site Estate and Chaska Property Advisors development engineering services to a wide array of clients. By engaging the skill will deliver the first such space on set of the firm’s personnel, clients ensure a quality partner from project inception to a speculative basis at the recently completion. The firm specializes in: announced Pittsburgh Interna- tional Business Park on Cherrington - Brownfield Redevelopment - Civil/Geotechnical Engineering Parkway in Moon Township. Other - Environmental Site Assessments - Site Development Support projects that hope to capitalize on - Environmental Risk Management - Water Resources Engineering this new momentum include Rugby - Site Remediation - Water Quality Realty’s recent acquisition of pad - Economic Revitalization Assistance - Litigation Support sites atop Penn Center West and - Regulatory Compliance - Air Quality DiCicco Development’s project at Scott Station.

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Trane belongs to Ingersoll Rand’s family of brands, including Club Car®, Ingersoll Rand®, Schlage® and Thermo King®. Ingersoll Rand is a world leader in creating and sustaining, safe, comfortable and efficient environments. the West side of I-79 and spur Washington County’s leadership to initiate infrastructure improvements across the interstate at Cool Valley. Burns & Scalo is hinting at plans for a new office development, Crossgates has announced 90,000 square feet of new inventory at 200 Woodcliff Drive and Horizon’s Town Center development will offer “office over retail” product. These developments, coupled with 2013’s delivery of Mylan’s 280,000 square foot headquarters and the potential for a significant expansion by Ansys within the park, could cap off one of the most successful public/ private partnerships in our region’s history. range of safe and opportunistic real place as one of the country’s top estate plays. PMC Property Group’s performers. So things are busy in the ‘burbs, acquisition of the Verizon Build- but let’s close by heading back to ing and the Regional Enterprise Jason Stewart is executive vice the city, whose office inventory is Tower; Millcraft Industries’ deliv- president, director of agency leas- greater than all of the suburban ery of high-rise apartments at the ing at Jones Lang LaSalle. markets combined. How are our former State Office Building; the DP new neighbors? You know, the Elmhurst Group’s purchase of the investor groups that hadn’t previ- FISERV building; and, most recently, ously owned anything in the region PNC Bank’s acquisition of the Lord only to crash our party and snap up & Taylor building are examples some of the CBD’s most iconic ad- that investors will look upon when dresses. Leasing activity thus far in considering other challenged assets their short Pittsburgh history would such as the Reed Smith and Union suggest that they are doing just Trust buildings. fine. After Class A vacancy rates in the CBD plummeted from almost Region wide, that’s a lot of activity. 18% to 7% over the past several The key to sustaining this activity years, 2012 offered up a new wave lies in the ability to finance good of deals including Gateway Health projects and the continued good Plan at Gateway Center; Towers health of our users: Utica, Marcel- Watson, Highmark and Saul Ew- lus, nuclear; healthcare, education ing at PPG Place; and the Federal and their tentacles into research Reserve of Cleveland at One Oxford and development; continued Jason Stewart Center. More so than its suburban growth in the financials; bellweth- counterparts, new construction ers in manufacturing, consumer within the urban core can be chal- goods and retail; and, finally, lenging given site constraints, a professional service and law firms greater emphasis on verticality and that are part of the fabric of our parking components. As a result, skyline. If the local operations of we’ve seen properties trade for these industries can continue to repurposing which, when coupled avoid the economic pitfalls expe- with aforementioned sales activity rienced by the rest of the country in stabilized office towers, provide and if our municipalities continue additional endorsement to the na- to cooperate with the development tion’s (and the world’s) investors community, Southwestern Pennsyl- that our region offers a diverse vania’s office market will keep its

www.developingpittsburgh.com 39 Industrial Market Update

he Pitts- burgh industrial real estate market’s fundamentalsT remained sound through the second quarter of 2012. The roughly 136 million square foot local industrial market ended the second quarter with a vacancy rate of 8.08%, essentially unchanged from the previous quarter. User activity pulled back towards the end of the quarter. Macro-economic headwinds, indecision tied to regulatory uncertainties, and the typical summer slowdown all contributed to this. However, this had little effect on the overall market conditions and several significant transactions occurred. Aquion Energy leased and occupied 315,000 square feet at the RIDC Westmoreland leased 119,821 square feet at the New construction activity remains (former Sony plant), Aaron’s leased Turnpike Distribution Center in limited. Very little construction is 154,816 square feet at 460 Nixon Beaver County. planned for the balance of 2012 Road and Mine Safety Appliances and speculative construction remains nominal. Some build-to-suit transactions currently in the market should result in an increase in space under construction later in 2012 as well as deliveries in 2013. Larger users seeking existing space are going to continue to find a dearth of quality options.

Marcellus and Utica related activity remains a mixed bag. Drill- ing activities have shifted to the “Wet” areas of the Marcellus and liquids rich Utica Shale. Drilling in the “Dry” areas of the Marcellus has slowed considerably but mid- stream (processing, storing, and transportation) activities remain strong. Despite low natural gas prices, activity related to the oil and gas supply chain continues to have a positive impact on the local industrial market.

Through the balance of 2012 and into 2013, the forecast is gener-

40 DEVELOPINGPITTSBURGH | Fall 2012 Despite low natural gas prices, activity related to the oil and gas Property Valuation supply chain continues to have a positive impact on the local industrial market.

ally positive for the Pittsburgh industrial market. Pent-up user demand remains and an increase in economic and regulatory certainty should result in increased investments by both landlords and tenants. While user activity is by no means robust, the market’s fundamentals remain solid. Property Valuation Until speculative construction of any significance occurs, occupancy levels will continue to increase, with the market’s overall vacancy rate projected dip below 7% by the end of 2012. This will likely put some upward pressure on pricing as we head into 2013.

Richard Gasperini is vice president at CBRE. Rob- ert Blackmore is first vice president at CBRE. DP

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www.developingpittsburgh.com 41 Retail Market Update

etail activ- continues to develop with new pital is located in a mature market, ity in Greater projects, such as the relocation of I anticipate an increase of rede- Pittsburgh Dick’s Sporting Goods to a new velopment and re-use construction will likely larger facility and the completion projects in 2013 and beyond. gain positive of the Cambria Suites project. Ad- momentum ditional activity on the Route 228 In the West quadrant, the Settlers through theR remainder of 2012, corridor includes a new free-stand- Ridge development is completing with moderate growth expected in ing La-Z-Boy furniture store, GetGo its leasing. That project boasts the 2013. Grocery stores, local restau- gas and convenience store, and two first ground-up 150,000-square- rants, fast casual national chain additional outparcels available for foot Giant Eagle Market District restaurants, medical retail, and restaurant and hotel use. store that opened in 2010. Other upgraded locations for existing na- Settlers Ridge tenants include tional tenants have led the way for Not far behind in development national retailers such as REI, LA recent retail activity in Pittsburgh. activity are the South (South Hills) Fitness, PF Chang’s, Ross Dress For and East (Monroeville) quadrants. Less, Barnes & Noble and Michaels. The general atmosphere at the an- In the South, construction is under The entire development is 600,000 nual ICSC RECon convention in Las way for new big box retail tenants square feet and there are only a Vegas was upbeat and optimistic Dick’s Sporting Goods and Target. few storefront and outparcel vacan- regarding the retail sector recovery In addition to these major retail cies remaining. This market recent- nationally. I believe that the ICSC draws, Bonefish Grill is locating ly became the home to two new convention is a strong indicator its first Pittsburgh restaurant at national concepts: Hobby Lobby that retail growth is headed in an South Hills Village. All of this new and The Tile Shop chose the West upward direction. development is taking place on the (Robinson) market to open their Route 19 side of the South Hills first Pittsburgh locations. The Pittsburgh retail markets are Village Mall. broken into four quadrants: North The Pittsburgh market has his- (Cranberry/Wexford), South (South In the East market (Monroeville), torically been a very conservative Hills Village/Mt. Lebanon), East the new 16.7-acre UPMC East site development market. Because of (Monroeville/Murrysville) and West opened earlier this summer. The Pittsburgh’s consistent moderate (Robinson). The Cranberry/Wexford hospital facility will have 156 pri- growth trends, it has not expe- market continues to be the most vate rooms, 140 medical-surgical rienced the highs and lows of active, with sales being driven by suites and 16 ICU beds. UPMC other markets such as Charlotte the new 500,000-square-foot Mc- anticipates approximately 30,000 and Atlanta. The retail market in Candless Crossing Development. visitors to its emergency depart- Pittsburgh remains stable, and Tenants there include Lowe’s, LA ment. The addition of the regional any improvement in the market Fitness, Hilton, Fidelity Bank and hospital has increased the interest may be due to the fact that the Cinemark. The Northern quad- of retailers and retail developers in region’s population losses have rant along the Route 228 corridor the East market. Because the hos- been stopped, and it is experienc-

Information source: CoStar

42 DEVELOPINGPITTSBURGH | Fall 2012 Information source: CoStar

Information source: CoStar ing a turnaround with consistent pions — is a proven place to live, gains in overall population growth. work and do business with four Pittsburgh’s growth in the medi- active retail markets. The sky is the cal, finance, education, and en- limit for future retail growth and ergy sectors will continue to drive development. retail development in the coming year. Pittsburgh is poised to main- — Brad Kelly is director of Retail tain moderate growth through the Services with Colliers International balance of 2012 and into 2013. | Pittsburgh. Pittsburgh — the City of Cham- DP Brad Kelly

www.developingpittsburgh.com 43 National Market Update

conomic As vacancy rates trend lower, a largest deals closed in the second Overview. The gradual increase in asking rents quarter were: Green Mountain Cof- US economy’s has been occurring. The over- fee Roaster for a 424,000-sf new growth during all rate for U.S. central business build-to-suit development in Boston the first half districts (CBDs) has increased for that will deliver in three phases of 2012 was five consecutive quarters, posting through 2016; QBE Insurance for driven by Econsumption, investment a 4.3% increase year-over-year in 183,000 sf in Phoenix; AirBnB for and export. Real US Gross Domestic the second quarter 2012 at $38.02 170,000 sf in San Francisco; Capi- Product (GDP) rose at a 1.5% an- per square foot (psf). The same has tal One for 158,582 sf in Chicago; nualized rate in the second quarter. been noted in U.S. suburban mar- and Nationstar Mortgage for This aided employment growth for kets where overall rents reached 153,457 sf in the Dallas/Fort Worth a net gain of 1.7 million new jobs $24.03 psf in the second quarter, area. through June, a 1.3% increase a 1.3% increase year-over-year, ris- year-over-year, and held unemploy- ing for the fifth consecutive ment steady at 8.2%. The ISM’s quarter after a low of $23.66 gauge of new orders, a measure of psf in the first quarter 2011. future activity, plunged from 60.1 As vacancy rates trend lower, to 47.8, the first time since the OFFICE LEASING a gradual increase in asking recession ended that this index has fallen below 50. Readings below 50 ACTIVITY rents has been occurring. The generally signify economic contrac- overall rate for U.S. central tion. Despite a strong start to the Year-to-date office leasing year, momentum appeared to be activity took a 9.0% dive business districts (CBDs) has slowing at the close of the second year-over-year in the second quarter and probably will stay be- quarter, posting just over increased for five consecutive low trend for the rest of 2012. 91.5 million square feet quarters, posting a 4.3% (msf). New class A transactions have been significantly increase year-over-year in the OFFICE VACANCY AND lower than in 2011 – due in second quarter 2012 at $38.02 RENTAL RATES part to dwindling blocks of available space – but demand per square foot (psf). Overall vacancy within Cushman for class B and class C space & Wakefield’s 41 core markets is on the rise. Among the throughout the U.S. has fallen throughout the past 12 months, ending the second quarter at 16.4%. Of the core markets, only five reported a rise of 1.0 percentage point (pp) or greater – Northern Virginia (up 3.0 pp to 18.0% overall); Westchester County (up 2.0 pp to 18.4% overall); New Haven (up 1.3 pp to 15.1% overall) and Wash- ington, D.C. (up 1.0 pp to 12.5% overall).

44 DEVELOPINGPITTSBURGH | Fall 2012 Year-to-date leasing activity in U.S. CBDs is down from last year’s relatively strong volume of 41.8 msf but is still well above recession-era levels at 29.7 msf. Though class A leasing declined to 16.6 msf from 29.1 msf one year ago, class B and C leasing was up to almost 13.2 msf from 12.7 msf recorded at mid-year 2011. In contrast, suburban leasing activity saw a 5.1% increase over the previous year, totaling 61.7 msf.

Viacom Corp.’s 1.6 msf renewal and expansion at 1515 Broad- way in Midtown Manhattan was recorded as one of the largest

www.developingpittsburgh.com 45 CBD transactions of the year. The for the first half of the year also mid-year leasing reaching nearly company will occupy an additional was positive 65.1 million square 19.0 msf for a 30.5% year-over- 191,000 sf in its prime downtown feet (msf), up from 52.5 msf in year increase. Lease transactions in location. In addition, Morgan mid-year 2011. excess of 200,000 sf have fueled Stanley will expand by 337,000 sf the industrial market’s recovery. at One New York Plaza, Downtown Of the 73 industrial markets Among the largest year-to-date are New York. In Philadelphia, the Phil- tracked by Cushman & Wakefield, Home Depot, Inc.’s commitment to adelphia Parking Authority leased 55 recorded year-over-year declines lease a 1.6-msf warehouse that will 124,662 sf, and in San Francisco, in vacancy. The Greater Los Ange- be built adjacent to its 657,600- Autodesk leased 108,196 sf. les area remained the tightest in sf rapid deployment facility in the the country with an overall vacancy Chicago area, and Crayola’s execu- OFFICE rate of just 4.6%. Central New tion of an 800,000-sf lease for a Jersey and Phoenix were the most build-to-suit facility in the Lehigh OUTLOOK improved markets year-over-year, Valley, Philadelphia market.

Despite a slow- The U.S. in- down in econom- dustrial mar- ic momentum, ket has seen office funda- little in the mentals should LEASING ACTIVITY – TOP U.S. INDUSTRIAL MARKETS way of new remain positive development through the bal- 25 throughout ance of 2012, the recession- with vacancy 20 ary and post- rates falling fur- recessionary ther and rental 15 period. In rates continu- fact, only ing a steady msf 10 29.6 msf of increase. A boost space was in build-to-suit 5 added to construction is the market 20 18.9 14 18.2 15.7 12.9 13 expected over 9.8 8.5 9.1 0 nationally the next 12 to 24 Greater LA Chicago Inland Empire Dallas/Fort Houston in 2011, of months as large Worth which 4.4 msf blocks of qual- were specula- ity space become YTD 2011 YTD 2012 tive. Already scarce in select this year, cities across the 17.5 msf of country. Specu- new supply lative construc- was added tion will remain limited as ongoing posting more than a 200-bp decline to that inventory with 7.9 msf of capital constraints and rental rate each; the PA I-81/I-78 Distribution it offered on a speculative basis. appreciation will prove detrimental Corridor recorded an improvement An additional 49.2 msf is currently to new development. from 11.1% to 9.1%, and the Dal- under construction with 17.0 msf las/Fort Worth vacancy dropped of speculative space scheduled to INDUSTRIAL VACANCY 170 bps to 11.2%. deliver by year-end. AND ABSORPTION INDUSTRIAL LEASING INDUSTRIAL OUTLOOK Despite the grim economic situ- ACTIVITY AND ation facing the industrial sec- DEVELOPMENT The pace of economic growth is still tor, the market continued to post healthy enough for continued recov- healthy demand and declining Industrial demand remained stron- ery in market fundamentals; how- vacancies across the country. The ever, the deepening uncertainty of overall vacancy rate fell to 9.3% gest in seaport cities, major distribution center hubs and auto-cen- the European market coupled with a at mid-year 2012, down 30 basis stagnant U.S. economy will undoubt- points (bps) from the end of the tric markets. Leasing activity during the first half of the year totaled edly impact the industrial market for first quarter and down 110 bps the balance of 2012. Source: Cush- from 10.4% at mid-year 2011. The 199.2 msf. The Greater Los Angeles market continued to top the nation man & Wakefield, Inc. current vacancy rate is the lowest DP the market has experienced since in leasing activity with 18.9 msf, fourth quarter 2008 when the over- while Chicago’s inland hub domi- all rate was 8.6%. Net absorption nance remained unchallenged with

46 DEVELOPINGPITTSBURGH | Fall 2012 350 Fifth Avenue A new Oxford Development Project in the Heart of Downtown Pittsburgh 350 Fifth Ave. Tower Highlights • 33 story, 772,000 SF building with a total project cost of $238 million • Construction jobs – 450 Permanent jobs - 2,500 • 41 spaces of underground parking • At a minimum, LEED Silver construction and elements of alternative energy, such as Photovoltaic (PV) Generation and Geothermal Access will be explored • The ground floor enclosure steps back at the Smithfield and Fifth corner, forming a public exterior space under the cover of the building’s upper floors. Another setback allows for an extra wide sidewalk, a mini park, and urban dining establishments • 350 Fifth will be visible from major transportation routes and the city’s top tourist destinations like Mount Washington and Station Square. Opportunities exist for incorporating a company’s identity by introducing large scale graphics in the color, lighting and composition of the building exterior • A Sky Deck features event space and signature terrace that will become a symbolic addition to the Pittsburgh skyline and the corporate identity of an anchor tenant • Opportunity exists for naming rights by an anchor tenant

350 Fifth Ave. Renovation Highlights • 200,000 SF building with a total project cost of $40 million • Project features 180,000 SF of Class A Office Space and 20,000 SF of ground floor retail and restaurant space • Construction jobs - 125 Permanent jobs - 800 • LEED EB Certified project (Leadership in Energy and Environmental Design for Existing Buildings) • Office space features a modern, urban design with abundant natural light, center core, and open floor plans • Roof area consists of public space for tenants featuring a roof top deck and garden area • Opportunity exists for naming rights by an anchor tenant

Michael R. Daniels Joseph F. Tosi Executive Vice President Assistant Vice President Oxford Realty Services, Inc. Oxford Realty Services, Inc. 412.261.0200 ext 480 412.261.0200 ext 471 [email protected] [email protected]

Development & Project Management | Property Management | Leasing & Brokerage Services | Investment Advisory Services | www.oxforddevelopment.com Legal/Legislative Outlook

Recent Superior Court of the Superior Court of Pennsylva- Decision Places Lien Prior- nia in Commerce Bank/Harrisburg, ity Granted to Open-End N.A. v. Kessler, 2012 Pa. Super. 100, Mortgages at Risk defies the purpose of 2006 Amend- ments relating to priority and, in he Su- many circumstances, places that perior priority in jeopardy under normal Court and customary lending practices in of Pennsylvania. Penn- sylva- Specifically, in Kessler, the Superior nia recentlyT issued a two to Court addressed the priority of liens one decision that will have between the holder of an open-end an enormous impact on the mortgage and the project contrac- Pennsylvania lending indus- tor (“Contractor”). The construction try as it relates to open-end contract was entered into prior to construction mortgages. the effective date of the Amend- The focus of the appeal ments and the open-end mortgage was the applicability of the post-dated the Amendments. Under 2006 Amendments (the the pre-Amendment mechanic’s “Amendments”), effective lien law, absent a lien waiver, the January 1, 2007, to Penn- contractor would have had prior- sylvania’s Mechanic’s Lien ity over the holder of the open-end Law, 49 P.S. 1101 et seq. mortgage because work had visibly The Amendments amended commenced prior to the recording of Pennsylvania’s Mechanic’s the open-end mortgage. However, Lien Law and made sig- due to the Amendments, the priority nificant changes to the law of the liens was at issue. governing priority of liens and lien waivers. One such In the lower court, the Contractor change made contractor and successfully argued that its lien had subcontractor lien waiv- priority due to its contract pre-dat- ers against public policy for ing the effective date of the Amend- non-residential projects. Ad- ments. Particularly, the Contractor ditionally, the Amendments argued that to apply the Amend- purportedly granted open- ments to its contract would be to ended mortgages priority apply a statute retroactively in viola- over mechanic’s liens, which tion of Pennsylvania law. The Lender represented a significant disagreed with this position and ar- change from the prior law gued that applying the Amendments under certain circumstances. was not affecting the Contractor’s Particularly, under the pre- contractual rights, but were chang- Amendment law, a subcon- ing the Contractor’s statutory rights, tractor could back date its which could be freely changed by lien to the date when work the legislature. The Superior Court was “visibly commenced” agreed with the Lender and held on the property. If that date that because the Contractor “ob- pre-dated the open-end tained” its lien under the Mechanic’s mortgage, the subcontractor Lien Law as amended; it was bound would be granted priority. by the provisions thereof. With regard to the issue of priority, the purpose of the After seemingly making a major Amendments was to make decision in favor of the Lender, the mechanic’s liens subordinate Superior Court reversed course and to “bank liens” so as not to affirmed the lower court based on freeze lending. 1 The decision other grounds. The Contractor

48 DEVELOPINGPITTSBURGH | Fall 2012 argued that even though the Amend- end mortgage, such as those costs tion whether loans that pay for soft ments applied, the open-end mort- described in Kessler, removes the construction costs would be granted gage at issue did not comply with open-ended mortgage from the pro- priority over mechanic lien claims. the statutory requirements in order tected class. Moreover, in an unre- Until this issue is resolved, insuring to gain priority. The Section at lated matter, an argument has been these types of loans without excep- issue grants priority to “an open- made that Kessler also prevents the tions for mechanic liens comes with end mortgage as defined in 42 payments of soft costs related to a substantial risk. Pa.C.S. 8143(f) (relating to open- construction. Though this issue is end mortgages), the proceeds of not addressed directly by Kessler Though cast as an opinion on statu- which are used to pay all or part of and strong arguments favor inclu- tory interpretation, this recent opin- the costs of completing erection, sion of these costs, based on the ion seemingly flies in the face of construction, alteration or repair of holding in that matter, it is unclear Pennsylvania lending practices and the mortgaged premises secured by whether the Court will deem these leads to more questions than it does the open-end mortgage.” The par- costs permissible. Unless the deci- answers. Due to the amount of dol- ties stipulated that portions of the sion in Kessler is reversed through a lars that are often involved in these proceeds of the open-end mortgage rehearing en banc or by the PA Su- types of transactions, this opinion were used to pay for tax claims, preme Court, this is the law in Penn- should be immediately contemplated closing costs, satisfaction of an ex- sylvania. Accordingly, it is important and analyzed by this Common- isting mortgage and to satisfy other for all Pennsylvania lenders to imme- wealth’s lending institutions. judgments and liens. diately examine their outstanding open-end mortgages and determine Though both parties agreed that whether they are at risk. 1 See purpose as stated in corre- certain money spent did not go spondence from Lou Bacchi, Direc- towards “completing erection, con- Going forward, Lenders entering tor of Governmental Affairs for the struction, alteration or repair,” the into a project will have two choic- Pennsylvania Builders Association to Lender argued that because Section es. First, they can ensure that the Representative George Kenney, a bill 8143(f) also contained the definition open-end mortgage pays for nothing sponsor, dated June 26, 2006. of the word “indebtedness,” that other than the costs allowed by the paying for expenses included within Mechanic’s Lien Law as Amended. By Brant Miller, Dave Ziegler and that definition should be permis- This may be difficult because, inher- Chris Lovato, attorneys in the sible. This position was supported ently, an open-end mortgage allows real estate and construction prac- by the argument that the definition for many other costs to be covered. tice at Dickie McCamey Chilcote. of “open-end mortgage” including Second, and though costly, a Lender the word indebtedness and, there- may be forced to essentially shut Editor’s note: The Pennsylvania leg- fore, the definition of indebtedness down a project, pay off all of the islature is considering major changes should be considered. The Superior contractors, remove all equipment to the Mechanics Lien Law of 2007. Court disagreed and held that be- from the project site, close the new NAIOP Pittsburgh was one of a num- cause indebtedness was not specifi- loan, and then start a new second ber of industry associations advo- cally referenced by the legislature, project after the mortgage has been cating changes to provide owner’s it could not be considered. As such, recorded. Although difficult, due to notice of subcontractors and sup- the Superior Court held that be- the strict requirements imposed by pliers working on a project, as well cause not every dollar of the open- the recent Superior Court opinion, as several other revisions. House Bill end mortgage went to “completing this may be the safest alternative. 16202 passed March 27 by a margin erection, construction, alteration or of 190-6. The bill will now be con- repair of the mortgaged premises This decision also has significant sidered by the Senate. secured by the open-end mortgage,” ramifications for the title insurance DP the Contractor had priority over the industry. After Kessler, it is now a open-end mortgage. risk to insure any construction loan that pays for costs other than those While there are still open and that are pure hard construction remaining issues relating to the costs. It is clear that after Kessler, Amendments and the applicability of open-end mortgages that cover Section 1508(c), this holding makes acquisition costs cannot be insured clear that paying certain costs at the without exception for mechanic time of closing that would otherwise lien claims. The recent Superior be properly included in an open- Court opinion also puts into ques-

www.developingpittsburgh.com 49 Benchmarks

ince January, emphasizing as National Chair is to would make it less favorable for Elmhurst Group raise NAIOP’s profile with govern- businesses to rent than own. president Bill ment affairs. We are looking for Hunt has been local chapters to communicate DP: What chapters have you vis- serving as the with their elected officials and to ited? chair of NAIOP pass information along to national Corporate,S leading the national if their members have a key con- Hunt: Thus far I have been to Buf- board for 2012. As national chair, tact with their House and Senate falo, Cleveland, Pensacola, Dal- Hunt has taken advantage of the staff. My goal is to get half of the las, Milwaukee, Portland, Winston opportunity to visit more than a 14,000-plus members to be able to Salem, Raleigh, New York, Denver, dozen local NAIOP chapters – and articulate at least three of the top Calgary and Washington, DC. There will visit that many more by year’s legislative threats to our industry. are another dozen or so that I’ll end – as well as participating in visit before the end of my term. several national conferences. The experience gave him the chance DP: What are some of the common to see what was being done right issues you are hearing around the in other cities and the platform to country? talk about what was being done right in Pittsburgh. As might be Hunt: There is a general frustration expected, Hunt says the experience with the uncertainty that is coming has taught him much about the from Washington and it is hinder- people who develop real estate and ing our tenants’ decisions to sign has given him a broader perspec- leases. The questions about tax tive about the work he does for rates, health care costs, environ- NAIOP Pittsburgh and for his living. mental regulations, energy policy and many other items are keeping DEVELOPINGPittsburgh asked Bill businesses from pulling the trigger. Hunt to talk about his year as national chair thus far and about the I hear a lot about bifurcation of insights gained from his travels. the market. Developers complain that there is debt and equity out DP: First, why are you doing all there chasing deals but only ‘bald these visits to other NAIOP chap- elephants’ – deals that are big with ters? no hair on them. If there is a deal that is even a little off on the qual- Bill Hunt Hunt: It’s actually an expectation ity scale, interest and prices drop of the national chair. There is a off dramatically. budget of about $30,000 for travel DP: What are the top threats? that NAIOP wants the chair to use. There are a number of other I didn’t need much encouragement Hunt: Tax legislation, especially problems that relate back to the because I love to talk about real legislation aimed at converting recession and financial crisis that estate and it was a great opportu- the treatment of carried interest seem to be plaguing most markets, nity to better understand the latest tax from capital gains to ordinary including Pittsburgh. Class A prop- ideas about urban planning. income rates, is something that erties are leasing up at the expense NAIOP will continue to focus on. of B and C properties. As pre- The visits are an opportunity for Another focus is tax extenders. recession leases are coming due the me to make sure that the work of NAIOP backs the extension of the fear is that rents will continue to the NAIOP Corporate organiza- 15-year depreciation for leasehold roll down. Lenders don’t exist for tion is communicated to the local improvements and the brownfield certain kinds of loan transactions. chapters. NAIOP recently completed remediation expensing, both of Generally speaking there is fear a strategic plan and there is a which expired at the end of 2011. that the banks haven’t put their major emphasis on supporting the The third issue is the proposed problems completely behind them individual chapters – their advo- FASB lease accounting change that and that the volume of underwater cacy, supporting local education would require companies to capital- properties with loans expiring in programs and chapter leadership. ize lease payments rather than have 2012 and 2013 will trigger lend- An initiative that I am personally rent as an expense. That change ers to sell off bad assets, which

50 DEVELOPINGPITTSBURGH | Fall 2012 will reset calculations of reserve of expectations from visit to visit. requirements and tighten credit I always prepare remarks but some “In Portland I met with again. Construction costs have not places just want me to stand up the chapter’s board so fallen as far as rents have. Tenants and smile while others want me to are opting for shorter term leases, do an entire speech. The difference it was a smaller group. preferring flexibility to certainty in the size of the chapters has been After my presentation, about rents. All of these and oth- interesting. In Pensacola for exam- ers are tougher market conditions ple, they have a pretty small chap- the first question that have come as a result of the ter so when I came to speak it was I was asked was what I financing problems. a big deal, like they were giving me the key to the city kind of thing. could suggest that would The recession also caused deferral There have been places where I’ve help them make Portland of maintenance costs. I think there been the speaker in front of more is denial about the effects of defer- than a hundred people and cities as hot as Pittsburgh is.” ring regular maintenance during where it’s been just a discussion the past three years. Pro formas among the nine or ten chapter have to build maintenance back to board members. the country except for Pittsburgh. historical levels and also make up It was nice to be there for that for past deferrals in the next few One surprise was at the New York meeting. years. City chapter. You know they kind of act like they invented real estate DP: What other meetings stand DP: So far what has been the big- in New York so when their guy was out? gest surprise from the meetings? talking about the market there he was saying how low the vacancy Hunt: In Denver they held a con- Hunt: I’m not sure if I’ve been sur- rates were and how New York’s test for students from two gradu- prised but there has been a variety vacancy rates were the lowest in ate university real estate programs

www.developingpittsburgh.com 51 for which I was asked to participate I am asked why things are work- operation. They work all over the as a judge. They gave teams a 16- ing in Pittsburgh and one of the world so they could have offices acre site that is by the old airport key items I feel that Pittsburgh anywhere but they couldn’t recruit and asked them to create proposals learned was to differentiate itself the kinds of people they wanted for redevelopment. We gave them from other cities. I stress that when to come to Santa Monica or Wash- feedback on their ideas and then I talk about the city. Places like ington DC. Those are great places in the evening the teams made the Dallas or Charlotte that had a lot but not everyone wants to have the proposals again for a banquet of of population growth have advan- lifestyle that comes with those cit- 800 people. The winners receive tages but you don’t know so much ies. To Rand it made sense to locate $5,000, so there was real incentive about them; you can’t characterize to a place that had the kind of to win the annual award. them. Pittsburgh is characterized lifestyle that Pittsburgh has. by its universities and technology. Milwaukee was interesting because CMU is characterized by software DP: What experiences have you had they are struggling with some of or robotics. Pitt is characterized by that changed or reinforced your the kinds of problems we have medicine. Even if you aren’t from perceptions? been familiar with in Pittsburgh. the area you’ll probably be aware They are trying to revitalize their of these niches at these universi- Hunt: Being the national chair also downtown and haven’t had any ties. Those differentiators are what allowed me to participate in the new buildings in roughly 30 years. attract people and businesses. Real Estate Round Table in Wash- Milwaukee seems to have a chip ington DC, where all 17 major on its shoulder for not being like I think Pittsburgh also benefits trade associations – like NAIOP, nearby Chicago. from its corporate commitment to BOMA, NAHB, American Hotel & downtown. Companies like PNC Lodging Association, Mortgage The Dallas chapter is a lot of fun build new buildings downtown but Bankers – meet with Senators, Con- because everyone there just loves the commitment is also in the form gressmen and administration of- to talk about real estate. It’s a big of support for the arts, initiatives ficials to deal with issues important deal there. Developers in Dallas like the ‘pop up’ retail grants, and to real estate. One of my previous talk about real estate like it’s sex. the support through the founda- frustrations with trade associa- Even their spouses seem to know tions. It’s not just philanthropic. tions is that they can be inefficient about all the deals that are being Corporations have created an with advocacy. They at times are all done and what’s right and wrong environment that helps with re- trying to solve the same problems with the buildings. cruitment and retention of employ- independently, but the Round Table ees. There has been a resurgence divided up the associations and In Portland I met with the chapter’s of many of our older industrial the government officials and each board so it was a smaller group. companies, like Calgon or West- team got one issue to work. That After my presentation, the first inghouse, that have re-engineered allowed us to focus our energy on question I was asked was what what they do and how they do it. one issue but the group then got I could suggest that would help And we have also benefitted from to tackle all the issues. It is a very them make Portland as hot as Pitts- the emergence of the shale gas ex- good model. burgh is. ploration and the long-term potential of that industry. The opportunity to have an impact DP: Talk about that perception. on our communities is something Did you get the sense that other Pittsburgh has also embraced being that I believe we need to exercise. chapters view Pittsburgh as a hot a mid-sized market. There are a lot As developers, we are in a position market? of good things about not being a to affect change that is necessary big market. We have one of the to move our communities forward. Hunt: Yes. As part of my presenta- best atmospheres for raising a fam- The I-79/Parkway West interchange tion to each city I take time to talk ily. For many people quality of life project is a great example of what about what’s going on in Pittsburgh is about the things that Pittsburgh can happen with advocacy. NAIOP and what the positive things are. has: good schools, family values, got behind that project ten years I also make sure to point out that short work commutes and afford- ago. I remember being at a meeting while everyone is on Pittsburgh’s able housing. I can think of two with PennDOT in Bridgeville when bandwagon right now, it wasn’t good examples of how that has the head of the office expressed always that way. I remind them worked in Pittsburgh’s favor. surprise that NAIOP was so involved that I moved to Pittsburgh in the in the project. He said no individual mid-1980’s but I have seen more One is Google. They are obvi- company or local government agen- positives in the last three years than ously here because of CMU but the cy had “championed the project.” in the previous two decades. It’s people that work in Pittsburgh are That project opened up the airport important for them to know that we here because they don’t want to be to Cranberry. I think it’s possible lost 110,000 steel jobs and 350,000 in New York or San Francisco. The Westinghouse may not have stayed jobs overall and that we are now other example is one I’m person- in the region without that. reaping the benefits of intentional ally familiar with, which is Rand. DP policies that developed over time. Pittsburgh is their mid-size market

52 DEVELOPINGPITTSBURGH | Fall 2012

News from the Counties

provides staff to the Armstrong County Industrial Development Authority (ACIDA), a public development agency and the Arm- strong County Industrial Develop- ment Council (ACIDC), a private non-profit (501c3) economic development corporation. The ACIDC provides a single-point- of-contact service for information pertaining to all economic development and business related resources in Armstrong County. Operating four industrial parks, a multi-tenant office building and other properties, the ACIDC is tasked with presenting new or expanding businesses a wide range Armstrong County of options to guide their relocation, expansion, or initial location Armstrong County Department of decisions. The ACIDC works di- Economic Development rectly with companies to identify Armsdale Administration Building sites and assist with financing, 124 Armsdale Road, Suite 205 permitting and workforce devel- Kittanning, PA 16201 opment needs. 724-548-1500 (T) 724-545-6055 (F) Michael Coonley, Executive Director Most recently, the ACIDC sold a [email protected] 30,000 sq. ft. facility in North- www.armstrongidc.org pointe, Armstrong County’s premier office and light manu- The Armstrong County Department facturing park. FLIR Government of Economic Development is the Systems Pittsburgh purchased the lead economic development agency building in July 2012 to con- within the County. The Department solidate its Pittsburgh operations.

54 DEVELOPINGPITTSBURGH | Fall 2012 FLIR, headquartered in Portland, The ACIDC has also initiated two In addition to sales within the Oregon, is a world leading manu- major site improvement projects in ACIDC’s properties, staff also works facturer of infrared detectors and Northpointe. Utilizing $3 million in with private sector developers and systems. FLIR will immediately begin funds borrowed through Pennsylva- property owners. In July 2012, staff their retrofit of the facility and move nia’s Business In Our Sites program, assisted BelleFlex Technologies LLC, a its 65 employees to the Northpointe approximately 40 acres will be devel- wholly owned subsidiary of Blair Strip facility in early 2013. oped into pad-ready sites for office Steel Company in acquiring 90,000 and light manufacturing users. An sq. ft. of industrial space in Ford City Sloan Brothers Company is a fourth additional 20 acres of property lo- from Farmers & Merchants Bank of generation family-owned business cated at the entrance to Northpointe Western PA. BelleFlex supplies disc that has been in operation since at Exit 18 of SR 28 is being prepared springs to the energy market. Belle- 1922 designing and building lubri- for retail development. flex, which launched in 2010 with cators and lubrication systems for one employee, now has 24 and a cli- compressors and other critical equip- Metal Solutions Inc. recently pur- ent base in seven countries. The ad- ment. Since purchasing their facility chased Lot 11 in the Parks Bend Farm jacent property, consisting of a level in 2009, their employment and sales Industrial Park, located near Leech- 43 acre Brownfield site, has received figures have doubled. Construction burg, for their new facility. Construc- ACT 2 clearance and is now available has just begun on their Northpointe tion on the 10,000 square foot facil- for manufacturing uses. facility expansion with completion ity will begin shortly; a Spring 2013 expected by the end of the year. completion is expected.

multi-billion dollar investment. oriented business park designed to Beaver County By August, CED will complete a $3 accommodate various sized parcels for Beaver County Corporation million investment in the Aliquippa office, light industrial, distribution, for Economic Development Industrial Park providing public in- and warehousing activities. West- 250 Insurance Street, Suite 300 frastructure for a rail served, 72-acre Gate is located on Pennsylvania State Beaver, PA 15009 industrial site featuring 3,000 feet of Route 18 adjacent to Exit 13 of the 724-728-8610 (T) 724-728-3666 (F) Ohio River frontage. Sub-dividable to Pennsylvania Turnpike (I-76), is four James Palmer, President 15 acre parcels, this property is certi- miles from the Turnpike’s interchange [email protected] fied as a Special Industrial Area under with I-376, and has toll free access to www.beavercountyced.org Pennsylvania Land Recycling Program. I-79. The site has as a Special Indus- In May, the site was one of the first trial Area designation under the Land As Royal Dutch Shell’s preferred loca- to receive Pennsylvania Department Recycling Program and features flat, tion for what would be one of south- of Environmental Protection designa- wooded, shovel-ready sites ranging western Pennsylvania’s largest indus- tion as a Keystone Special Develop- from 4 to 33 acres. New development trial projects in a generation, Beaver ment Zone, providing $2,100 state tax within WestGate is granted a ten County draws increasing interest from credit for each new job created. The year local property tax exemption and industrial users and developers. Shell’s site also qualifies as a Federal New certain state business tax exemptions ethane cracker plant feasibility plan- Market Tax Credit eligible area and is as a Keystone Opportunity Zone. The ning process is underway, and if the certified as a Foreign Trade Zone. property is designated as a Foreign investment decision is made to build Trade Zone. the plant, it would be another several Currently CED is fitting out over years before the plant is operational. 66,000 square feet of industrial space Planned for 2013 is the third expan- However, just the announcement of for two new tenants in the Mo- sion of the Hopewell Business Park, Potter Township as Shell’s priority site naca Commerce Center. The 110,000 located just five miles from the Pitts- has created the impetus for a com- square foot multi-tenant facility has burgh International Airport via I-376. prehensive, proactive planning effort undergone a complete exterior and The next phase will provide two new among private, public, educational, site modernization. Approximately development ready pads each about and regional partners to help prepare 16,000 square feet, with potentially 6 to 8 acres. The Hopewell Business for and leverage this rare opportunity. up to 20,000 square feet of additional Park is home to fourteen companies For its part, the Beaver County Cor- space, is currently available for lease. with over 1,300 employees. One high poration for Economic Development visibility, 6.3 acre site is currently (CED) has accelerated its efforts to de- This fall CED plans to expand its available. Hopewell is also designated velop diverse sites to attract the jobs WestGate Business Park, adding two as a Foreign Trade Zone. that are anticipated to result from this new building pads totaling about 25 acres. WestGate is a premier highway

www.developingpittsburgh.com 55 ity. Development sites currently avail- Downtown Butler economic develop- Butler County able include: 40 acres for sale at the ment includes the Centre City project Community Development Corporation Victory Road Business Park; a 30,000 which will bring a hotel to the city. of Butler County square foot flex building for sale or This project is touted as the key to 112 Woody Drive lease at 140 Hollywood Drive and the redevelopment of downtown But- Butler, PA 16001 15,000 square feet of office space ler as there will be 100 construction 724-283-1961 (T) 724-283 3599 (F) for lease at 112 Hollywood Drive. jobs associated with the project as Ken Raybuck, Executive Director The CDC also has a 14,700 square well as approximately 30 permanent [email protected] foot flex building available at 295 positions once the hotel is complet- www.butlercountycdc.com Delwood Road. ed. The Centre City project is also expected to create 60 spin-off jobs The Community Development Cor- The Jackson’s Pointe Commerce Park once the hotel is open for business. poration of Butler County (CDC) is located at the intersection of Routes It is anticipated that several smaller your first stop for economic develop- 19 and 528 is nearing completion development projects will follow ment in Butler County. The CDC is and the first speculative building of upon the hotel’s completion. the only organization in the county approximately 69,000 square feet that focuses on proactively creating has been constructed. Infrastructure The Marcellus Shale industry contin- an environment for private industry and utility work on this building are ues to play an important role in the to develop and retain jobs in Butler being completed while it is marketed growth of Butler County. In addi- County. to prospective clients. The second tion, firms such as Westinghouse phase of the business park was re- and Mine Safety Appliances are also The CDC board is comprised of 32 cently approved by Jackson Township adding jobs in the southern half of Butler County business owners and officials and tree removal and site Butler County. Despite a somewhat residents who are committed to grading will begin in the near future. sluggish recovery in other parts of working with the firms who do busi- This phase is a mixed-use site that the nation, economic development ness in our county and their employ- will include both commercial and of- in Butler County is forging ahead; ees who live, work and enjoy the fice space. whether you are looking to buy va- amenities that Butler County offers. cant land, lease flex or office space As professionals in the local commu- Creative Real Estate Development or purchase a building Butler County nity, the CDC staff has the resources Company recently signed an agree- has affordable opportunities waiting and expertise to promptly provide ment to sell 30.5 acres in Cranberry for your business. other business owners with the an- Twp. to UPMC to be used for the swers they need. development of a state-of-the-art sports medicine facility and a train- The CDC recently sold a 5,000 ing center for the Pittsburgh Pen- square foot office building at 112 guins. In addition, the firm recently Woody Drive to the Butler County responded to requests for approxi- Housing and Redevelopment Author- mately 220,000 square feet that is needed by an energy sector firm.

is critical to the overall economic and including: its location along US

Fayette County community development of Fayette Route 119 and proximity to the Fay-Penn Economic County. Connellsville airport, rail acces- Development Council sibility, its proximity to Penn State 1040 Eberly Way, Suite 200 Fay-Penn is currently planning a new Fayette campus, and its central Lemont Furnace, PA 15456 311-acre business park at the corner location near other gas and gas 724-437-7913 (T) 724-437-7315 (F) of US Route 119 North and Pechin related industries. All of these Michael A. Jordan, Jr., Road in Dunbar Township, Fayette factors are major selling points to Executive Director County at an estimated $5.7 million potential tenants. A recent feasibil- [email protected] cost. Fay-Penn recently acquired a ity/marketing study conducted by www.faypenn.org vacant 207-acre site, and is currently Strategy Solutions concluded that in negotiations to acquire an addi- the acquisition and development of Incorporated in 1991, Fay-Penn Eco- tional 104 acres of adjoining prop- the Dunbar Township site is likely to nomic Development Council is des- erty. It is estimated that once fully be a viable location for growth with ignated as the lead economic devel- developed, the project could result new opportunity for the region as opment agency for Fayette County, in the creation of approximately 250 it is developed. The projected new PA. Fay-Penn is a private, non-profit saleable acres for business develop- business development due to the organization created to maintain ment. expansion of Marcellus Shale and and increase jobs in Fayette County. other energy and advanced manu- Providing development sites to sup- The Dunbar Township site offers facturing and support businesses port business development initiatives many advantages to businesses is overwhelmingly favoring positive

56 DEVELOPINGPITTSBURGH | Fall 2012 Another way the Gateway Engineers are helping develop Pittsburgh

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A FULL-SERVICE CIVIL ENGINEERING FIRM www.gatewayengineers.com Fayette County (continued) ries continue to come. As a result, developed a 10-year industrial de- economic growth in Southwestern more than 100 acres of land have velopment strategy, which includes Pennsylvania. been sold, and Fay-Penn was able the acquisition and development of to immediately accommodate the additional business parks and con- With the recent influx of gas-related location of five companies leasing struction of several new speculative business location and expansion a total of 37,000 sq. ft. in single buildings (either single or multi- projects in the region, Fayette and multi-tenant building space. occupant). County is experiencing a shortfall in The gas industry activity not only available land and buildings to of- offers significant job opportunities The proposed new business park defer. In the past few years, Fay-Penn and new private investment; it also velopment project will provide much has been successful in providing creates a great need to develop new needed location opportunities to ac- business site and location assis- location sites and buildings for im- commodate the influx of energy and tance to twelve gas and gas-related mediate occupancy. In an effort to advanced manufacturing companies. companies alone and the inqui- address that shortfall, Fay-Penn has

sits directly on top of some of the proximity to the high-demand mar- Greene County country’s most active natural gas kets on the East Coast of the U.S. Greene County Industrial exploration and production plays, the Greene Alliance for Development has Developments, Inc. Marcellus Shale. sold 20 acres in Paisley Park to Ryan 300 EverGreene Drive Industrial Supply, KCI Properties LLC Waynesburg, PA 15370 The discovery of the Marcellus Shale and Stallion Oilfield Services. 724-852-2965 (T) 724-852-4132 (F) natural gas is widely viewed as a Don Chappel, Executive Director bridge between the age of oil and In March, the Greene County Com- [email protected] the next energy paradigm. Large- missioners selected Burns & Scalo www.gcidc.org scale commercial development in this Real Estate Services to create a mas- region started ramping up in 2005 ter development plan for a 6.2 acre Greene County Industrial Develop- and continues to build momentum, parcel at the Greene County Airport ments, Inc., dba Greene Alliance for having already impacted Pennsylva- in Franklin Township. Expected in Development, celebrated its 55th nia’s economy to the tune of several spring 2013, the plan should include year of service to Greene County billion dollars. offices, retail and possibly a new this past February in business park hotel. development and business financing. EverGreene is the ideal location to The organization owns and manages research, develop, test and market Tax-exempt land is part of the Key- the 248-acre EverGreene Technology energy along with industry-leading stone Opportunity Zone (KOZ) pro- Park in Waynesburg, and the 72-acre experts and internationally-recog- gram, which provides state and local Paisley Industrial Park in Carmichaels. nized companies. tax abatement to businesses and residents locating in a designated GCID has been successful in attract- In the past 20 months, Greene Al- zone. Through credits, waivers and ing national and international com- liance for Development has sold 22 broad-based abatements, total taxes panies to Greene County. In recent acres of land in EverGreene to Com- on economic activity in these zones years, we have played a role in bring- munity Bank, Chesapeake Energy and are reduced to nearly zero. ing CONSOL Energy, RJ Lee Group, RG Johnson Company, Inc. There are Westmoreland County Community 20 acres of pad ready acreage avail- Available KOZ’s include EverGreene College, Stahls Hotronix and others able for immediate development and Technology Park in Franklin Town- into our business parks. current work includes a 15-acre site ship, Paisley Business Park in Cum- which will be pad ready by October berland Township and MeadowRidge Greene Alliance for Development was 1st. Business Park in Perry Township. The recently formed to provide a new MeadowRidge Business Park recently entity to streamline the real estate The Paisley Business Park offers a became home to Shaft Drillers Inter- development process and build strategic location, building-ready national, a worldwide drilling com- synergies among the many public parcels and inexpensive land costs. pany that employs 1400 workers, as and private economic development The 72-acre office park & industrial well as a longwall mining company agencies and firms looking to Greene complex is located at the Intersection and a regional wholesale grocery County for a new or expanded pres- of State Routes 21 & 88 in Carmi- distributor. ence here. chaels and is ideally suited for light manufacturing, R&D/HQ or branch For information please contact Don The EverGreene Technology Park is a office use and has 20 acres of land Chappel. 21st Century collaborative business available for development. community for the energy industry and other technology-focused, Paisley has a strong transportation forward-thinking companies. It infrastructure in place and is in close

58 DEVELOPINGPITTSBURGH | Fall 2012 Indiana County Colliers International | Pittsburgh Experts in Acquisition, Disposition and Leasing Indiana County Center for Economic Operations 801 Water Street Indiana, PA 15701 724-465-2662 (T) 724-465-3150 (F) Byron G. Stauffer, Jr., Executive Director [email protected] www.indianacountyceo.com

Whether you’re just getting started or you’re ready to extend your reach, the Indiana County Center for Economic Operations (www.indianacountyceo.com) has a wide variety of buildings and locations to meet your specific business needs. Multi- tenant buildings, KOEZ/KOIZ loca- Improved Platform | World Class Service | Better Results tions, pad-ready sites—throughout Commercial Real Estate Sales and Leasing Services Indiana County you’ll find substan- > Real Estate Management > Valuation and Advisory tial choice in available property. When it comes to choosing a site > Corporate Solutions > Investment for your business, there are options > Sustainability > Auctions in Indiana County to help you grow. Manufacturing plant, laboratory, 412 321 4200 | www.colliers.com | @PghCRE or office, we’ll assist you with the Learn how we are living our values of service, expertise, selection process so you can focus community and fun at www.colliersinternationalpittsburgh.com on what you do best—running your business.

The Indiana County Corporate Cam- pus is a well situated business park located in Burrell Township near Blairsville at the intersection of U.S. Routes 22 and 119. Two new shovel ready business parks are under development, namely the 119 Business Park along Route 119 South near Coral/Graceton and the Windy Ridge PWC PROPERTY SOLUTIONS, LLC Business & Technology Park located at the intersection of U.S. Route 422 and PA Route 286, just west of PWC operates a full service commercial Indiana Borough. real estate management platform capable Indiana County has a number of of assisting our clients with many services multi-tenant office facilities for to enhance properties, offering a seamless consideration: the Corporate Cam- working relationship facilitating all services pus Multi-Tenant Building and the Interchange Center are a part of the on a single contract basis. Indiana County Corporate Campus, Five Parkway Center and HighPointe at Indian Springs offers two modern multi-tenant Suite 215 KNOWLEDGE buildings with state-of-the-art ame- Pittsburgh, PA 15220 nities, located in White Township. INTEGRITY In addition, the R&P Building and 412.937.1925 the Atrium are close to downtown EFFICIENCY Indiana amenities. SATISFACTION There are a number of industrial buildings available within the coun- www.pwcpropertysolutions.com ty: The 3-Ring Building; Dixonville Nicole DeLuca • Chuck Diloreto • Christine Andreyo • Lynn DeLorenzo Commons, and the Allegheny Logis- tics Building. www.developingpittsburgh.com 59 Indiana County (continued) So far this year Environmental Ser- to develop. Agriculture and tourism For sale and for lease retail/profes- vice Laboratories, Inc., Environmental continue to keep Indiana County’s sional sites are available in Indiana, Land Surveying and Solutions, Inc. economy positive and prosperous. Homer City, Clymer, and Blairsville and Specialty Tires, Inc. have an- Boroughs, in addition to well- nounced capital expansion projects. Established in 1994, the Indiana designed and attractive mall and The retail and service sector has also County Center for Economic Opera- strip mall locations throughout the been active and growing. tions (CEO) is a county-wide public- County. private partnership serving Indiana Indiana County boasts a major County, Pennsylvania, and dedicated Indiana County’s transportation university with Indiana University of to the overall growth and prosperity structure is ever-improving and ac- Pennsylvania, a successful community of the county’s business community. cess to markets has become simpler hospital in Indiana Regional Medical Through this cooperative initiative, than ever. A streamlined highway Center, a junior college, and seven the CEO provides access to informa- system connects Indiana County in superior school districts, as well as a tion, resources, and the delivery of each direction. The runway expan- technology training center. integrated programs and services to sion project at the Indiana County assist businesses in their efforts to Jimmy Stewart Airport is coming to The growing natural gas shale indus- grow and expand. fruition and building a broadband try has burgeoned in Indiana County, fiber optic network is underway focused manufacturing remains throughout the county. strong, and healthcare and higher education industry sectors continue

Railroad and the opportunity to ware- 500 acre New Castle Development Lawrence County house drilling supplies in box cars. site located in North Beaver and Ma- Lawrence County Economic honing Townships. The site has First Development Corporation Lawrence County has prepared for Energy’s electric transmission lines 100 East Reynolds Street industrial opportunities by devel- located adjacent to it as well as Ten- Plaza South, Suite 100 oping Millennium Technology Park nessee Gas high pressure gas line. New Castle, PA 16101 located at the intersection of I-376 724-658-1488 (T) 724-658-0313 (F) and Kings Chapel Road. Nearly 80 In the southern sector of the County Linda Nitch, Executive Director acres of level land are ‘shovel-ready’ is the Gateway Commerce Center. [email protected] with water, sewer, power and natural This is a former limestone mine with www.lawrencecounty.com gas available. The Lawrence County over 2,000,000 square feet of light Economic Development Corporation warehousing and manufacturing In Lawrence County, the exploration is constructing a 50,000 square foot space. This facility offers a security and development of the shale natural multi-tenant building on the site. Two system and a variety of storage and gas is providing new investment for 25,000 square foot sections are being warehousing opportunities. our county. New leases continue to planned with 5,000 square feet of be negotiated with landowners by office space available. The building There are numerous commercial op- HilCorp and Royal Dutch Shell. Test will be available for occupancy in the portunities within the county includ- wells are being drilled to determine Spring of 2013. ing the 20,000 square foot call center the supply of wet and dry gas in the located in downtown New Castle; county. The companies are looking The County also has Neshannock 40,000 square feet of newly remod- for the ‘sweet’ spot of the gas and Business Park developed by the Re- eled Class A space at Nesbitt Place once that spot is found, more drilling gional Industrial Development Cor- located in Neshannock Township and is expected. It appears that we are on poration (RIDC). This park’s tenants Adam’s Manufacturing office building the brink of shale gas reigniting the include: Axion Power, Velocity Mag- on Factory Avenue in Ellwood City. business climate in our county. Along netics, and Dallas Hartman. There are with the improved business climate approximately 55 acres available for Information on of these locations and comes the creation of new jobs both development with all utilities located many more throughout the County by the drillers and others in our com- in the park. can be found at the LCEDC’s web munity. site – www.lawrencecounty.com or by In order to meet the needs of busi- calling Linda Nitch, LCEDC’s Executive With this continued interest in natu- nesses seeking to be located in the Director. ral gas have come prospects looking eastern side of the county is the for industrial buildings with land Shenango Commerce Park. Located available for lay down areas for pipe. off of Frew Mill Road and just 15 Also of great interest have been our minutes from I-79 the park has over second class rail lines many of which 40 acres available for development. are owned by New Castle Industrial For businesses seeking a location on the western side of the county is the

60 DEVELOPINGPITTSBURGH | Fall 2012 with 4.3 percent or 1650 new jobs In addition to the impressive eco- Washington County created. nomic development successes in the Washington County Economic energy sector, Washington County Development Partnership Total home sales increased in Wash- encourages economic growth by 20 East Beau Street ington County by 15 percent in May keeping taxes low, investing in infra- Washington, PA 15301 2012 compared to May 2011 with an structure and business parks, and by 724-225-3010 (T) 724-228-7337 (F) increase of 16 percent in the average partnering with its business commu- Jeff Kotula, President selling price for existing homes and nity to create jobs and increase eco- [email protected] an increase of nearly 13 percent for nomic development activities through www.washingtoncountyworks.com new homes. public/private efforts. Washington County continues to invest in infra- Washington County, Pennsylvania - There is no question that the de- structure, business parks and com- which consistently realizes unemploy- velopment of the energy industry munity development projects through ment rates lower than national, state has become a significant economic the Washington County Local Share and regional averages due to the generator in Washington County, so Account Program (LSA). expansion of the natural gas industry much so that the county has been and substantial public investments designated as the “Energy Capital The LSA program is Washington in economic development initiatives of the East”. As evidence to support County’s share of gross terminal rev- - continues to increase its leadership its claim, of the 45 county economic enues from The Meadows Racetrack position among Southwestern Penn- development projects announced at and Casino that has been directed sylvania counties in terms of econom- a press conference earlier this year, by the commissioners to economic ic growth and job creation. 24 were energy and energy-related development projects in the county. company attraction and expansion Since its inception five years ago, the Washington County, Pennsylvania projects with 21 of those projects program has invested $46.3 million in by the numbers - being a direct result of the Marcellus 158 new economic, community and Shale gas play. industrial development projects in According to the 2010 U.S. Census, Washington County. More impressive Washington County’s population in- Washington County is viewed as is the $233 million those funds were creased by 2.4 percent - one of only the epicenter of the Marcellus Shale able to leverage in federal, state two counties in the Greater Pitts- geologic formation stretching from and local monies. Investments made burgh Region to gain population. Southwestern Pennsylvania and into in business parks such as Alta Vista West Virginia and New York which Business Park, Southpointe II Business In a recent report, the U.S. Bureau has the potential to become the Park and StarPointe Business Park as of Economic Analysis announced second largest natural gas field in the well as programs in job training, the Washington County ranked second world. The county was home to the expansion of the Washington County in Pennsylvania and 94th in the na- first Marcellus well and the first hori- Airport, infrastructure and other job tion in percentage of wage growth zontal well in Pennsylvania. Accord- creation projects are preparing the between 2009 and 2010. ing to the Pennsylvania Department county for future development and of Environmental Protection, 215 capitalizing on its existing assets. According to the United States De- permits have been issued in 2012- partment of Labor’s Bureau of Labor the most in Southwestern Pennsylva- For additional information on Wash- Statistics, in March of 2011, Wash- nia and to date, 970 wells have been ington County, please contact Jeff ington County ranked third in the drilled in the county. Kotula, President, Washington nation in percentage of job growth County Chamber of Commerce.

first full-scale manufacturing facil- use of R&D funding from Carnegie Westmoreland County ity to four other pronounced com- Mellon University. Now a scientific Westmoreland County Industrial pany expansions within the county’s advancement with 70 employees, Development Corporation industrial park system that will be the company may grow to about 40 North Pennsylvania Avenue, encompassing more than 390,000 200 workers by next year at the Suite 520 square feet of building space, are all facility. Further, the added incentive Greensburg, PA 15601 signs of optimism. to Aquion was the Westmoreland 724-830-3061 (T) 724-830-3611 (F) County Community College (WCCC) Jason W. Rigone, Executive Director Aquion Energy, a developer and Workforce Training Facility, which [email protected] manufacturer of revolutionary will also open in the fall of 2013. www.co.westmoreland.pa.us sodium ion batteries and energy By leasing 70,000 square feet at storage systems will be leasing ap- the site, WCCC will offer advanced The first half of 2012 has proved proximately 250,000 square-feet of technology workforce training, a exciting for Westmoreland County. space within RIDC Westmoreland bonus to all companies in the county Beginning this year with the major – Multi-Tenant Facility (former Sony and specifically those locating in the announcement of Aquion Energy Inc. site) located near New Stanton. The RIDC multi-tenant facility in New selecting RIDC Westmoreland for its company started in 2007 with the Stanton. www.developingpittsburgh.com 61 Westmoreland County (continued) These, along with the recently pub- site as a multi-tenant facility. “Be- licized $20 million expansion plans cause of its prime location and mag- at Arnold Palmer Regional Airport nitude in size, this site is not only a In addition to Aquion Energy, other and its booming passenger service priority in Westmoreland County but attention-grabbing announcements offered by Spirit Airlines, are all key regionally as well,” adds Don Smith, included a 26,000 square foot factors that today’s difficult times President of RIDC. The facility offers expansion for Steel City Vacuum are not standing in the way of posi- 200,000 – 1,000,000 square feet of Company. Already an existing tenant tive growth in the county. industrial space which could poten- at the Westmoreland Technology tially be designated as a Keystone Park I also near New Stanton, Steel “Westmoreland County is also hav- Opportunity Zone (KOZ) providing City Vacuum is expanding for the ing its share of impact from natural business tax relief to qualifying busi- second time in just over a year and gas exploration,” said Jason Rigone, nesses. is a national wholesale/distributor of Executive Director of the county’s vacuum parts and supplies. Industrial Development Corporation. Other strategic marketing efforts in “This growth has best been seen in the county include 122,000 square Clearspan Construction Products the eastern part of the region, which feet at Jeannette Industrial Park in selected the Westmoreland County has the county currently pursuing the City of Jeannette; and 6 – 31 Airpark near Latrobe for its 100,000 Phase II development at the West- Acre Pad Sites at Technology Park I, square foot warehouse facility. By moreland County Airpark adjacent to II and Distribution Park in North New specializing in producing high qual- the Arnold Palmer Airport.” Stanton. ity fabricated steel products for use in heavy industrial and infrastructure When asked what is available in the The county also offers other indus- projects, in essence the company county right now, Rigone quickly trial park sites and various sizes of will be growing this operation and responded, “Our priority economic existing privately-owned buildings expanding on additional property at development project is RIDC West- for lease or sale including “Down- the site. moreland.” The WCIDC formed a town Destinations” and KOZ sites. joint partnership with the Regional All the more, Hatch-MDS, a company Industrial Development Corporation “Our attitude in Westmoreland is in the design, engineering, proto- (RIDC) in May to manage and oper- upbeat,” said County Commissioner typing and sourcing of graphics, ate the New Stanton site. The mas- Chuck Anderson. Commissioner fixtures and displays for the retail sive 2.8-million square foot building Anderson also serves as chairman of industry is currently moving into ap- situated on 349 acres was vacated the county Industrial Development proximately 5,000 square feet at the by Sony in 2010 and is a focal point Corporation. “And of course, our Jeannette Industrial Park. And Jean- for state and local officials. RIDC, message to business is welcome!” nette’s home-based company, Excel a private, non-profit organization DP Glass and Granite, will be expanding whose expertise is regional economic for a second time by constructing development stepped forward to yet another 12,000 square feet to take the lead and partner with West- warehouse raw material. moreland County to redevelop the

Spring Edition! DEVELOPINGPittsburgh If you haven’t already reserved your space, be sure to stay in front of the ‘who’s who’ of commercial real estate by advertising in the Spring 2013 edition of . DEVELOPING Pittsburgh

• Stay up-to-date with the market information, trends and hot topics that affect your business.

• The Spring 2013 edition will also celebrate the 2013 NAIOP Pittsburgh Annual Awards.

62 DEVELOPINGPITTSBURGH | Fall 2012 The Power to Prosper is right under our feet.

Nature put Washington County, Pennsylvania at the center of the Marcellus Shale. It’s up to you to make the most of it.

There is more energy to tap. There is more room to grow. There is more time to prosper.

Join other Washington County companies and help shape the nation’s economy, energy security and clean energy future. Put your company on top of it all.

www.washcochamber.com Transactions of Note

his list in- Assessor’s Online Database. Prop- of all Allegheny County transfer cludes Allegh- erty use is determined by the asses- dollars. Offices accounted for 45 eny County sor and data shown here (Sale Date, percent of the transfers followed property County Total Assessed Value, Prior by institutional transfers with 10 transfer data Sale Price/Date, Taxes, etc.) were percent of the activity. Retail uses originally collected from those online records. saw $17.8 million in restaurants, collected fromT public records by The value of sheriff’s deeds and the $18.3 million in stores plus $11.1 RealSTATs, Inc. (www.RealSTATs.net) stamp value of nominal transac- million in shopping centers. Ward and identified by them as a transfer tions were included. Sheriff sales 2 in Pittsburgh saw the most ac- of non-residential property. Initially are noted in the tables with an “sd” tion with $71.2 million followed by published in the Pittsburgh Post following the price. Findlay Township at $18.2 million. Gazette Sunday edition’s Real Estate Pine Township had $14.1 million Sections, only non-residential trans- Only transactions for the first six with Monroeville at $12.9 million fers with a consideration or stamp months of 2012 were included. followed by Ross Township at $12 value greater than $1,000,000 were There’s a total of $228.8 million for million. Most notable was that 35 selected by Tall Timber Group for the 60 transactions with the City percent of the new owners are from research at the Allegheny County of Pittsburgh claiming nearly 43% outside of Pennsylvania entirely.

Property Address Property Use Sale Price Prior Price Total Assd Value Buyer Municipality Sale Date Prior Date Taxes Lot Size 501-521 Penn Avenue Office - Elevator $48,000,000 $35,835,900 HTA Penn Ave LLC Pittsburgh, Ward 2 3+ stories 3/1/12 $199,828 1.7585 A 234 Coraopolis Road Nursing Home/Priv Hosp $11,657,411 $4,200,000 $3,945,600 Ohio Pennsylvania Property Kennedy Twp. 1/11/12 7/22/08 $220,010 8.0 A 1000 Commerce Drive Office - Elevator $10,750,000 $2,880,000 US Real Estate LP Findlay Twp 3+ stories 2/6/12 $16,059 4.4140 A 301 South Hills Village Shopping Ctr $8,000,000 $8,000,000 $7,293,000 Target Corp Upper St. Clair Twp. 4/25/12 9/16/10 5.8520 A 2000 Commerce Drive Office - Elevator 3+ st $7,475,000 $3,115,000 US Real Estate LP Findlay Twp 2/6/12 $17,370 5.1990 A 912 Fort Duquesne Blvd Office - Elevator $7,350,000 $7,500,000 $9,914,400 Ft Duquesne Blvd LP Pittsburgh, Ward 2 3+ stories 2/15/12 12/22/95 $55,285 425 Sixth Ave & Montour Way Office - Elevator $7,050,000 $1,706 $6,775,000 PMC 425 Sixth Ave Assoc Pittsburgh, Ward 2 3+ stories 3/22/12 5/23/11 $37,779 36,414 SF 100 Vista Circle Dr Condo MultiUnits $7,000,000 sd Chapel Pointe Condo O'Hara Twp. 2/24/12 4721 Fifth Avenue Charitable $5,600,000 Carnegie Mellon Univ Pittsburgh, Ward 7 6/28/12 25,000 sf 2527 Nicholson Road Instit- Nursing Home $5,440,000 $5,594,300 Concordia Lutheran Ministries Franklin Park 3/12/12 $31,195 6.004 A 7209 McKnight Rd Auto sales/service $5,200,000 $2,209,827 $2,119,300 LRC McKnight Investors Ross Twp. 3/7/12 11/21/01 $11,818 5.089 A 12121 Perry Highway Church $4,950,000 $1,350,000 $10,078,000 Optimus 28 Mgt Pine Twp. 2/13/12 9/23/91 24.8957 A 4113 William Penn Hwy Discount Store $10 / $4,950,000 $3,921,051 $3,921,051 Penn Rite LLC Monroeville 3/6/12 1/14/03 $21,865 2.835 A 4400 Centre Ave Apt 40+ $4,545,000 $450,000 $1,800,000 Bellefield Housing Partn LP Pittsburgh, Ward 4 5/4/12 12/19/88 $10,037 25,110 SF 6051 Copperleaf Ct Office - Elevator $4,200,000 $600,000 $2,603,000 Westminster Ltd Pine Twp. 3+ stories 2/23/12 11/30/00 $14,515 3.5178 A 400 Fifth Avenue Office - Elevator $3,850,000 $2,500,000 $2,500,000 PNC Bank Pittsburgh, Ward 2 3+ stories 6/7/12 2/10/05 $13,941 1.3223 A $9,250,000 64 DEVELOPINGPITTSBURGH | Fall 2012 6/30/99 1005 E Entry Dr Mini Warehouse $10 / $3,498,300 $2,990,000 $2,990,000 Extra Space Prop Ten Pittsburgh, Ward 20 3/22/12 8/4/00 $16,673 5.2255 A 4015 Freeport Road Shop Ctr - Community $3,100,000 $475,549 $4,400,000 Highland Mall Assoc LP Harrison Twp. 3/16/12 8/3/06 $24,535 22.9717 A $3,454,164 4/12/95 630 William Marks Drive Commercial $3,050,000 612 Munhall Partn Munhall 3/16/12 25 McMurray Rd Restaurant $2,930,369 $2,400,000 $1,754,500 Cole OU Portfolio Upper St. Clair Twp. 3/22/12 7/2/07 $9,784 2.56 A $875,000 4/11/95 4500 Brooktree Rd Office - WalkUp $2,815,000 $223,024 $2,000,000 Hammel Funding LLC Pine Twp. 3+ Stories 1/11/12 12/16/04 $11,152 1.304 A $375,000 10/10/02 9395 McKnight Rd Restaurant $10 / $2,808,000 $3,000,000 $2,296,600 New Private Rest Prop McCandless 7/2/07 $12,806 6.3370 A $475,000 6/18/96 1400 Market Place Blvd Restaurant $2,789,554 $410,000 $953,300 National Retail Prop Trust Moon Twp. 3/22/12 9/10/88 $5,316 1.6025 A 4530 Perry Hwy Church $2,700,000 $4,181,700 Summer Wind Mgt Ross Twp. 6/1/12 10.8543 A 4121 Monroeville Blvd Discount Store $2,635,000 $1,250,000 $2,351,000 Osiris Properties Monroeville 5/3/12 4/29/10 $13,110 4.5660 A 606 Liberty Ave & Oliver Ave Office - Elevator $2,610,000 $1,000,000 $2,000,000 Tiversa Real Estate Holdings Pittsburgh, Ward 2 3+ stories 4/16/12 5/1/92 $11,152 8,420 SF Property Address Property Use Sale Price Prior Price Total Assd Value Buyer Municipality Sale Date Prior Date Taxes Lot Size 501-521 Penn Avenue Office - Elevator $48,000,000 $35,835,900 HTA Penn Ave LLC Pittsburgh, Ward 2 3+ stories 3/1/12 $199,828 1.7585 A 234 Coraopolis Road Nursing Home/Priv Hosp $11,657,411 $4,200,000 $3,945,600 Ohio Pennsylvania Property Kennedy Twp. 1/11/12 7/22/08 $220,010 8.0 A 1000 Commerce Drive Office - Elevator $10,750,000 $2,880,000 US Real Estate LP Findlay Twp 3+ stories 2/6/12 $16,059 4.4140 A 301 South Hills Village Shopping Ctr $8,000,000 $8,000,000 $7,293,000 Target Corp Upper St. Clair Twp. 4/25/12 9/16/10 5.8520 A 2000 Commerce Drive Office - Elevator 3+ st $7,475,000 $3,115,000 US Real Estate LP Findlay Twp 2/6/12 $17,370 5.1990 A 912 Fort Duquesne Blvd Office - Elevator $7,350,000 $7,500,000 $9,914,400 Ft Duquesne Blvd LP Pittsburgh, Ward 2 3+ stories 2/15/12 12/22/95 $55,285 425 Sixth Ave & Montour Way Office - Elevator $7,050,000 $1,706 $6,775,000 PMC 425 Sixth Ave Assoc Pittsburgh, Ward 2 3+ stories 3/22/12 5/23/11 $37,779 36,414 SF 100 Vista Circle Dr Condo MultiUnits $7,000,000 sd Chapel Pointe Condo O'Hara Twp. 2/24/12 4721 Fifth Avenue Charitable $5,600,000 Carnegie Mellon Univ Pittsburgh, Ward 7 6/28/12 25,000 sf 2527 Nicholson Road Instit- Nursing Home $5,440,000 $5,594,300 Concordia Lutheran Ministries Franklin Park 3/12/12 $31,195 6.004 A 7209 McKnight Rd Auto sales/service $5,200,000 $2,209,827 $2,119,300 LRC McKnight Investors Ross Twp. 3/7/12 11/21/01 $11,818 5.089 A 12121 Perry Highway Church $4,950,000 $1,350,000 $10,078,000 Optimus 28 Mgt Pine Twp. 2/13/12 9/23/91 24.8957 A 4113 William Penn Hwy Discount Store $10 / $4,950,000 $3,921,051 $3,921,051 Penn Rite LLC Monroeville 3/6/12 1/14/03 $21,865 2.835 A 4400 Centre Ave Apt 40+ $4,545,000 $450,000 $1,800,000 Bellefield Housing Partn LP Pittsburgh, Ward 4 5/4/12 12/19/88 $10,037 25,110 SF 6051Property Copperleaf Address Ct PropertyOffice - Elevator Use $4,200,000Sale Price Prior$600,000 Price Total Assd$2,603,000 Value WestminsterBuyer Ltd PineMunicipality Twp. 3+ stories Sale2/23/12 Date Prior11/30/00 Date $14,515Taxes 3.5178Lot Size A 400501-521 Fifth Penn Avenue Avenue Office - Elevator $48,000,000$3,850,000 $2,500,000 $35,835,900$2,500,000 HTAPNC PennBank Ave LLC Pittsburgh, Ward 2 3+ stories 3/1/126/7/12 2/10/05 $199,828$13,941 1.75851.3223 A 234 Coraopolis Road Nursing Home/Priv Hosp $11,657,411 $4,200,000$9,250,000 $3,945,600 Ohio Pennsylvania Property Kennedy Twp. 1/11/12 7/22/086/30/99 $220,010 8.0 A 10001005 CommerceE Entry Dr Drive OfficeMini Warehouse - Elevator $10 $10,750,000/ $3,498,300 $2,990,000 $2,880,000$2,990,000 USExtra Real Space Estate Prop LP Ten FindlayPittsburgh, Twp Ward 20 3+ stories 3/22/122/6/12 8/4/00 $16,059$16,673 4.41405.2255 A 3014015 South Freeport Hills Road Village ShoppingShop Ctr - CtrCommunity $8,000,000$3,100,000 $8,000,000$475,549 $7,293,000$4,400,000 TargetHighland Corp Mall Assoc LP UpperHarrison St. Twp. Clair Twp. 4/25/123/16/12 9/16/108/3/06 $24,535 22.97175.8520 A 2000 Commerce Drive Office - Elevator 3+ st $7,475,000 $3,454,164 $3,115,000 US Real Estate LP Findlay Twp 2/6/12 4/12/95 $17,370 5.1990 A 912630 FortWilliam Duquesne Marks Drive Blvd OfficeCommercial - Elevator $7,350,000$3,050,000 $7,500,000 $9,914,400 Ft612 Duquesne Munhall Partn Blvd LP Pittsburgh,Munhall Ward 2 3+ stories 2/15/123/16/12 12/22/95 $55,285 42525 McMurray Sixth Ave Rd & Montour Way OfficeRestaurant - Elevator $7,050,000$2,930,369 $2,400,000$1,706 $6,775,000$1,754,500 PMCCole OU425 PortfolioSixth Ave Assoc Pittsburgh,Upper St. Clair Ward Twp. 2 3+ stories 3/22/12 5/23/117/2/07 $37,779$9,784 36,4142.56 SF A 100 Vista Circle Dr Condo MultiUnits $7,000,000 sd $875,000 Chapel Pointe Condo O'Hara Twp. 2/24/12 4/11/95 47214500 FifthBrooktree Avenue Rd CharitableOffice - WalkUp $5,600,000$2,815,000 $223,024 $2,000,000 CarnegieHammel Funding Mellon Univ LLC Pittsburgh,Pine Twp. Ward 7 3+ Stories 6/28/121/11/12 12/16/04 $11,152 25,0001.304 sfA 2527 Nicholson Road Instit- Nursing Home $5,440,000 $375,000 $5,594,300 Concordia Lutheran Ministries Franklin Park 3/12/12 10/10/02 $31,195 6.004 A 72099395 McKnight Rd AutoRestaurant sales/service $10 / $5,200,000$2,808,000 $2,209,827$3,000,000 $2,296,600$2,119,300 LRCNew McKnightPrivate Rest Investors Prop RossMcCandless Twp. 3/7/12 11/21/017/2/07 $12,806$11,818 6.33705.089 A 12121 Perry Highway Church $4,950,000 $1,350,000$475,000 $10,078,000 Optimus 28 Mgt Pine Twp. 2/13/12 9/23/916/18/96 24.8957 A 41131400 WilliamMarket PlacePenn BlvdHwy DiscountRestaurant Store $10 / $2,789,554$4,950,000 $3,921,051$410,000 $3,921,051$953,300 PennNational Rite Retail LLC Prop Trust MonroevilleMoon Twp. 3/22/123/6/12 1/14/039/10/88 $21,865$5,316 1.60252.835 A 44004530 CentrePerry Hwy Ave AptChurch 40+ $4,545,000$2,700,000 $450,000 $1,800,000$4,181,700 BellefieldSummer Wind Housing Mgt Partn LP Pittsburgh,Ross Twp. Ward 4 5/4/126/1/12 12/19/88 $10,037 25,11010.8543 SF A 60514121 CopperleafMonroeville Ct Blvd OfficeDiscount - Elevator Store $4,200,000$2,635,000 $1,250,000$600,000 $2,603,000$2,351,000 WestminsterOsiris Properties Ltd PineMonroeville Twp. 3+ stories 2/23/125/3/12 11/30/004/29/10 $14,515$13,110 3.51784.5660 A 400606 FifthLiberty Avenue Ave & Oliver Ave Office - Elevator $3,850,000$2,610,000 $2,500,000$1,000,000 $2,500,000$2,000,000 PNCTiversa Bank Real Estate Holdings Pittsburgh, Ward 2 3+ stories 4/16/126/7/12 2/10/055/1/92 $13,941$11,152 8,4201.3223 SF A 4721 McKnight Road Retail/Office Over $2,500,001 $9,250,000 $1,698,000 McKinght Northland LLC Ross Twp. 1/11/12 6/30/99 $9,469 3.9890 A 1005Reed ESt Entry & Miller Dr St VacantMini Warehouse Comml Land $10 / $2,474,746$3,498,300 $2,990,000$360,000 $2,990,000$165,800 ExtraReed RobertsSpace Prop Hsng Ten LP Pittsburgh, Ward 203 3/22/125/16/12 8/4/004/1/83 $10,003$16,673 5.22554.7593 A 401519025 Freeport Perry Hwy Road Rt 19 Motel/TouristShop Ctr - Community Cabin $2,422,500$3,100,000 $650,000$475,549 $2,960,000$4,400,000 HighlandMars Hospitality Mall Assoc LLC LP HarrisonMarshall Twp. 3/16/125/14/12 10/9/868/3/06 $24,535$16,506 22.97174.27 A 5555 Century 3 Blvd Discount Store $2,272,982 $3,454,164 $1,750,000 Mountain View Ventures West Mifflin 1/12/12 4/12/95 $9,958 3.4230 A 6307500 William Brooktree Marks Rd Drive OfficeCommercial - Elevator $2,225,000$3,050,000 $2,141,800 $2,000,000 612Tri Rivers Munhall Brooktree Partn Real Estate MunhallPine Twp. 3+ stories 4/16/123/16/12 1/4/02 $11,152 1.117 a 25 McMurray Rd Restaurant $2,930,369 $2,400,000$175,000 $1,754,500 Cole OU Portfolio Upper St. Clair Twp. 3/22/12 9/15/947/2/07 $9,784 2.56 A 900 Park Manor Blvd Ext Restaurant $2,212,799 $1,977,700$875,000 $1,977,700 Steel City Corral Prop Robinson Twp. 3/19/12 4/11/951/6/06 $11,028 2.9304 A 35164500 SawBrooktree Mill Run Rd Blvd InstitutionalOffice - WalkUp $10 / $2,815,000$2,138,365 $223,024 $2,000,000$655,820 NationalHammel FundingRetail Prop LLC Trust BrentwoodPine Twp. Medical/Clinic3+ Stories 6/14/121/11/12 12/16/04 $13,657$11,152 33,2021.304 SF A 10247 Perry Hwy Auto sales/service $2,100,000 $337,500$375,000 $1,155,000 RKW Real Estate McCandless 6/8/12 10/10/025/27/03 $6,441 5.97 A 9395 McKnight Rd Restaurant $10 / $2,808,000 $3,000,000$150,000 $2,296,600 New Private Rest Prop McCandless 9/31/19767/2/07 $12,806 6.3370 A 3000 Liberty Ave Office/Warehouse $2,100,000 $475,000 $46,400 Americo Real Estate Co Pittsburgh, Ward 6 6/13/12 6/18/96 $259 13,920 SF 73B1400 Noblestown Market Place Road Blvd Office/WarehouseRestaurant $2,000,000$2,789,554 $410,000 $1,700,000$953,300 FlynnNational Properties Retail Prop Trust CollierMoon Twp. Twp 2/13/123/22/12 9/10/88 $9,480$5,316 www.developingpittsburgh.com5.24301.602565 A S4530 Highland Perry HwyAve Retail/OfficeChurch Over $1,875,000$2,700,000 $85,248 $6,934,800$4,181,700 HighlandSummer WindWallace Mgt LP Pittsburgh,Ross Twp. Ward 8 3/16/126/1/12 3/29/96 $0 11,36710.8543 SF A 2494121 N Monroeville Craig St Blvd OfficeDiscount - 1-2 Store Story $1,800,000$2,635,000 $1,250,000$242,250 $2,351,000$458,100 PittsburghOsiris Properties Community Holding Corp Pittsburgh,Monroeville Ward 4 2/15/125/3/12 11/20/874/29/10 $13,110$2,554 14,2004.5660 SF A Liberty606 Liberty Ave Ave & Oliver Ave IndustrialOffice - Elevator $1,725,000$2,610,000 $1,000,000 $2,500,810$2,000,000 CollierTiversa Development Real Estate Holdings Pittsburgh, Ward 62 3+ stories 4/16/122/1/12 5/1/92 $11,152$20 8,4207.8272 SF A 121 Walmart Dr Drive-in Restaurant $1,708,212 $460,000 $694,000 TOMS King RE Penn North Versailles Twp. 5/1/12 11/2/98 1.238 A 4903 William Penn Hwy Lt Mfg $1,700,000 $650,000 $802,500 Laura Land Co LP Monroeville 1/24/12 3/6/92 $4,475 10.528 A 4800 McKnight Rd. Service Station $1,662,500 RJN Retail LLC Ross Twp. 800 Brickworks Drive Indus - Warehouse MultiTenant $1,622,361 $5,431,620 LIP 3 LP Leetsdale 4/20/12 $30,288 26.593 A 3951 William Penn Hwy Restaurant $1,593,477 $1,615,000 $2,485,000 Cole GC Monroeville LLC Monroeville 6/11/12 2/23/05 $13,857 3.3704 A 415 Home Dr Drive-in Restaurant $1,537,404 $370,000 $672,000 TOMS King RE Penn North Fayette Twp. 5/2/12 1/14/98 $3,747 1.2790 A 105-108 Cedarwood Circle Nursing Home $1,336,000 $1,951 $1,635,800 Human Services Housing Co West Deer Twp. 6/6/12 12/1/10 $9,122 2.978 A $1,476,751 3/5/08 9070 St. Simon Way Vacant Comml Land $1,250,000 $50,000 Fifth Third Bank McCandless 6/8/12 $279 4.031 A Robinson St Institutional $1,250,000 Carlow University Pittsburgh, Ward 4 6190 Steubenville Pike Restaurant $1,220,315 $1,257,529 $589,400 Store Master Funding LLC Robinson Twp. 1/19/02 12/30/11 $3,287 1.0046 A 200 Main Street Indus - Warehouse $1,200,000 $968,700 West Hills Holding LLC Coraopolis 3/27/12 $5,402 5.0630 A 209 Ninth Street Office - Elevator 3+ st $1,197,500 $900,000 $900,000 Ninth 209 LLC Pittsburgh, Ward 2 4/13/12 3/30/99 $5,019 1288 Oakridge Rd Rt of Way $1,170,000 Berkley Holdings LLC South Fayette Twp. 3/21/12 2.6020 A Smallman & 23rd St Office/Warehouse $1,165,000 $612,300 2225 Smallman Assoc LP Pittsburgh, Ward 2 3/202012 $3,414 1.289 A 1707 Pennsylvania Ave Utility $1,100,000 $809,800 1707 Pennsylvania Ave LLC Pittsburgh, Ward 21 3/12/12 1.75 A Bank St Institutional $1,100,000 Light Life Ministries Pittsburgh, Ward 22 4721 McKnight Road Retail/Office Over $2,500,001 $1,698,000 McKinght Northland LLC Ross Twp. 1/11/12 $9,469 3.9890 A Reed St & Miller St Vacant Comml Land $2,474,746 $360,000 $165,800 Reed Roberts Hsng LP Pittsburgh, Ward 3 5/16/12 4/1/83 $10,003 4.7593 A 19025 Perry Hwy Rt 19 Motel/Tourist Cabin $2,422,500 $650,000 $2,960,000 Mars Hospitality LLC Marshall Twp. 5/14/12 10/9/86 $16,506 4.27 A 5555 Century 3 Blvd Discount Store $2,272,982 $1,750,000 Mountain View Ventures West Mifflin 1/12/12 $9,958 3.4230 A 7500 Brooktree Rd Office - Elevator $2,225,000 $2,141,800 $2,000,000 Tri Rivers Brooktree Real Estate Pine Twp. 3+ stories 4/16/12 1/4/02 $11,152 1.117 a $175,000 9/15/94 900 Park Manor Blvd Ext Restaurant $2,212,799 $1,977,700 $1,977,700 Steel City Corral Prop Robinson Twp. 3/19/12 1/6/06 $11,028 2.9304 A 3516 Saw Mill Run Blvd Institutional $10 / $2,138,365 $655,820 National Retail Prop Trust Brentwood Medical/Clinic 6/14/12 $13,657 33,202 SF 10247 Perry Hwy Auto sales/service $2,100,000 $337,500 $1,155,000 RKW Real Estate McCandless 6/8/12 5/27/03 $6,441 5.97 A Property Address Property Use Sale Price Prior$150,000 Price Total Assd Value Buyer Municipality Sale Date Prior9/31/1976 Date Taxes Lot Size 501-5213000 Liberty Penn Ave Avenue OfficeOffice/Warehouse - Elevator $48,000,000$2,100,000 $35,835,900$46,400 HTAAmerico Penn Real Ave Estate LLC Co Pittsburgh, Ward 26 3+ stories 6/13/123/1/12 $199,828$259 13,9201.7585 SF A 23473B CoraopolisNoblestown Road Road NursingOffice/Warehouse Home/Priv Hosp $11,657,411$2,000,000 $4,200,000 $3,945,600$1,700,000 OhioFlynn Pennsylvania Properties Property KennedyCollier Twp Twp. 2/13/121/11/12 7/22/08 $220,010$9,480 5.24308.0 A 1000S Highland Commerce Ave Drive OfficeRetail/Office - Elevator Over $10,750,000$1,875,000 $85,248 $2,880,000$6,934,800 USHighland Real Estate Wallace LP LP FindlayPittsburgh, Twp Ward 8 3+ stories 3/16/122/6/12 3/29/96 $16,059$0 11,3674.4140 SF A 301249 SouthN Craig Hills St Village ShoppingOffice - 1-2 Ctr Story $8,000,000$1,800,000 $8,000,000$242,250 $7,293,000$458,100 TargetPittsburgh Corp Community Holding Corp UpperPittsburgh, St. Clair Ward Twp. 4 4/25/122/15/12 11/20/879/16/10 $2,554 14,2005.8520 SF A 2000Liberty Commerce Ave Drive OfficeIndustrial - Elevator 3+ st $7,475,000$1,725,000 $2,500,810$3,115,000 USCollier Real Development Estate LP FindlayPittsburgh, Twp Ward 6 2/6/122/1/12 $17,370$20 5.19907.8272 A 912121 FortWalmart Duquesne Dr Blvd OfficeDrive-in - Elevator Restaurant $7,350,000$1,708,212 $7,500,000$460,000 $9,914,400$694,000 FtTOMS Duquesne King RE Blvd Penn LP Pittsburgh,North Versailles Ward Twp. 2 3+ stories 2/15/125/1/12 12/22/9511/2/98 $55,285 1.238 A 4254903 Sixth William Ave Penn & Montour Hwy Way OfficeLt Mfg - Elevator $7,050,000$1,700,000 $650,000$1,706 $6,775,000$802,500 PMCLaura 425 Land Sixth Co AveLP Assoc Pittsburgh,Monroeville Ward 2 3+ stories 3/22/121/24/12 5/23/113/6/92 $37,779$4,475 36,41410.528 SF A 1004800 Vista McKnight Circle Rd. Dr CondoService MultiUnits Station $7,000,000$1,662,500 sd ChapelRJN Retail Pointe LLC Condo O'HaraRoss Twp. Twp. 2/24/12 4721800 Brickworks Fifth Avenue Drive CharitableIndus - Warehouse MultiTenant $5,600,000$1,622,361 $5,431,620 CarnegieLIP 3 LP Mellon Univ Pittsburgh,Leetsdale Ward 7 6/28/124/20/12 $30,288 25,00026.593 sfA 25273951 NicholsonWilliam Penn Road Hwy Instit-Restaurant Nursing Home $5,440,000$1,593,477 $1,615,000 $5,594,300$2,485,000 ConcordiaCole GC Monroeville Lutheran Ministries LLC FranklinMonroeville Park 3/12/126/11/12 2/23/05 $31,195$13,857 3.37046.004 A 7209415 Home McKnight Dr Rd AutoDrive-in sales/service Restaurant $5,200,000$1,537,404 $2,209,827$370,000 $2,119,300$672,000 LRCTOMS McKnight King RE InvestorsPenn RossNorth Twp.Fayette Twp. 3/7/125/2/12 11/21/011/14/98 $11,818$3,747 1.27905.089 A 12121105-108 Perry Cedarwood Highway Circle ChurchNursing Home $4,950,000$1,336,000 $1,350,000$1,951 $10,078,000$1,635,800 OptimusHuman Services 28 Mgt Housing Co PineWest Twp. Deer Twp. 2/13/126/6/12 9/23/9112/1/10 $9,122 24.89572.978 A 4113 William Penn Hwy Discount Store $10 / $4,950,000 $3,921,051$1,476,751 $3,921,051 Penn Rite LLC Monroeville 3/6/12 1/14/033/5/08 $21,865 2.835 A 44009070 CentreSt. Simon Ave Way AptVacant 40+ Comml Land $4,545,000$1,250,000 $450,000 $1,800,000$50,000 BellefieldFifth Third Housing Bank Partn LP Pittsburgh,McCandless Ward 4 5/4/126/8/12 12/19/88 $10,037$279 25,1104.031 SF A 6051Robinson Copperleaf St Ct OfficeInstitutional - Elevator $4,200,000$1,250,000 $600,000 $2,603,000 WestminsterCarlow University Ltd PinePittsburgh, Twp. Ward 4 3+ stories 2/23/12 11/30/00 $14,515 3.5178 A 4006190 Fifth Steubenville Avenue Pike OfficeRestaurant - Elevator $3,850,000$1,220,315 $2,500,000$1,257,529 $2,500,000$589,400 PNCStore Bank Master Funding LLC Pittsburgh,Robinson Twp. Ward 2 3+ stories 1/19/026/7/12 12/30/112/10/05 $13,941$3,287 1.32231.0046 A 200 Main Street Indus - Warehouse $1,200,000 $9,250,000 $968,700 West Hills Holding LLC Coraopolis 3/27/12 6/30/99 $5,402 5.0630 A 1005209 Ninth E Entry Street Dr MiniOffice Warehouse - Elevator 3+ st $10 / $1,197,500$3,498,300 $2,990,000$900,000 $2,990,000$900,000 ExtraNinth Space209 LLC Prop Ten Pittsburgh, Ward 202 3/22/124/13/12 3/30/998/4/00 $16,673$5,019 5.2255 A 40151288 FreeportOakridge Road Rd ShopRt of WayCtr - Community $3,100,000$1,170,000 $475,549 $4,400,000 HighlandBerkley Holdings Mall Assoc LLC LP HarrisonSouth Fayette Twp. Twp. 3/16/123/21/12 8/3/06 $24,535 22.97172.6020 A Smallman & 23rd St Office/Warehouse $1,165,000 $3,454,164 $612,300 2225 Smallman Assoc LP Pittsburgh, Ward 2 3/202012 4/12/95 $3,414 1.289 A 6301707 William Pennsylvania Marks Drive Ave CommercialUtility $3,050,000$1,100,000 $809,800 6121707 Munhall Pennsylvania Partn Ave LLC MunhallPittsburgh, Ward 21 3/16/123/12/12 1.75 A 25Bank McMurray St Rd RestaurantInstitutional $2,930,369$1,100,000 $2,400,000 $1,754,500 ColeLight OU Life Portfolio Ministries UpperPittsburgh, St. Clair Ward Twp. 22 3/22/12 7/2/07 $9,784 2.56 A 225 E Seventh Avenue Retail Structure $1,060,000 $875,000 $410,000 Program for Offenders Inc West Homestead 6/29/12 4/11/95 $2,331 1.5496 A 11004500 ChartiersBrooktree Avenue Rd SupermarketOffice - WalkUp $1,055,000$2,815,000 $750,000$223,024 $2,000,000$503,600 HammelBottom Dollar Funding Food LLC NE McKeesPine Twp. Rocks 3+ Stories 1/23/121/11/12 12/16/048/9/00 $11,152$2,808 1.16051.304 A $487,500$375,000 10/10/024/28/00 23809395 McGinleyMcKnight Rd InstitRestaurant - Charitable Home/Hosp $10 / $1,040,000$2,808,000 $3,000,000$500,000 $2,296,600$6,803,300 NewHR Acq Private PA Rest Prop McCandlessMonroeville 3/22/12 2/26/877/2/07 $12,806$37,937 6.33709.14 A 3781 William Penn Hwy Restaurant $1,034,000 $475,000 $700,000 Glickman Real Estate Dev Monroeville 2/28/12 6/18/96 $3,903 1.86 A 1400 Market Place Blvd Restaurant $2,789,554 $410,000 $953,300 National Retail Prop Trust Moon Twp. 3/22/12 9/10/88 $5,316 1.6025 A 4530 Perry Hwy Church $2,700,000 $4,181,700 Summer Wind Mgt 66 DEVELOPINGPITTSBURGH | Fall 2012 Ross Twp. 6/1/12 10.8543 A 4121 Monroeville Blvd Discount Store $2,635,000 $1,250,000 $2,351,000 Osiris Properties Monroeville 5/3/12 4/29/10 $13,110 4.5660 A 606 Liberty Ave & Oliver Ave Office - Elevator $2,610,000 $1,000,000 $2,000,000 Tiversa Real Estate Holdings Pittsburgh, Ward 2 3+ stories 4/16/12 5/1/92 $11,152 8,420 SF Learn more about NAIOP, the Commercial Real Estate Development NAIOP in the western Association, is the leading organization for developers, Pennsylvania tri-state region owners and related professionals in office, industrial at naioppittsburgh.com and mixed-use real estate. NAIOP provides or 412-928-8303. unparalleled industry networking and education, and advocates for effective legislation on behalf of our members. NAIOP advances responsible, sustainable development that creates jobs and benefits the communities in which our members work and live.

For more information on how you can develop connections with commercial real estate through NAIOP, visit us online at www.naiop.org or call 800-456-4144. Now in Pittsburgh Local knowledge is the foundation of our professional practice. DEVELOPINGPittsburgh For more information about Avison Young and our services contact: Duke Kingsley I Principal & Managing Director 2012 Direct: 412.944.2131 [email protected] James Kelly I Senior Vice President, Principal Buyer’s Direct: 412.944.2133 [email protected] Brad Totten I Senior Vice President, Principal Guide! Direct: 412.944.2132 [email protected] LOOKING FOR AN Michael Downey I Vice President Direct: 412.944.2135 [email protected] ARCHITECT, ENGINEER, Brandon Snyder I Vice President CONTRACTOR OR Direct: 412.944.2134 [email protected] LENDER? THE 2012 NAIOP BUYER’S GUIDE LISTS DOZENS OF FIRMS FROM AROUND THE REGION 625 Liberty Avenue, Suite 3150, EQT Plaza, Pittsburgh, PA 15222 I P 412.944.2130 I www.avisonyoung.com THAT CAN FIT THE BILL.

Architect...... 69 cranberry crossroads Building Products...... 70 route 228 & I-79 Civil Engineer...... 70 cranberry township, pa 16066 Construction Consultant...... 71 • Three story, 90,000 SF, Class A • 360 Surface Spaces are available Consultant...... 71 with a ratio of 4.0/1,000 SF Office Building Contractor...... 71 • Located on Route 228 in • Highly visible signage opportunity Cranberry Township facing Rt. 228 Developer...... 72 • 30,000 SF floor plates • Conveniently located near I-79, The Economic Development...... 72 Pennsylvania Turnpike, and Rt. 19 • Delivery in 4Q of 2012 Engineer...... 72 Environmental...... 73 90,000 sF Finance...... 73 available For information, contact Geotechnical Engineer...... 73 Pat Greene 4Q2012 412.471.3017 Green Building/Energy Consultant...74 [email protected] Industry/Trade Association...... 74 Interior Designer...... 74 Land Surveyor...... 74 Landscape Architect...... 75 Liquor License/Restaurant Broker.....75 Maintenance/Service Contractor...... 75 Professional Services...... 75 Real Estate Broker...... 75 68 DEVELOPINGPITTSBURGH | Fall 2012 Architect DLA+ Architecture & Interior Design Foster Plaza 9, Suite 200 750 Holiday Drive Pittsburgh, PA 15220 HHSDR Architects / Engineers Astorino www.dlastorino.com 40 Shenango Avenue 227 Fort Pitt Boulevard Achieving a client’s unique vision takes a unique ap- Sharon, PA 16146-1502 Pieper O’Brien Herr Architects 800 Vinial Street #B314 Pittsburgh, PA 15222 proach. Thanks to our Strategic ArchitectureSM 130 7th Street, 201 Century Bldg. Pittsburgh PA 15212 T: 412-765-1700 approach – clients are finding that it can be easy to Pittsburgh, PA 15222-3413 T: 412.321.8313 www.astorino.com integrate organizational and brand strategy into the (800) 447-3799 www.poharchitects.com John D. Francona, RA, LEED AP planning and design of facilities. Find out more at our T: 724-981-8820 Loren Wright, AIA [email protected] website or call 412.921.4300. F: 724-981-4515 [email protected] At Astorino, we believe that great design meets the Frank Gargiulo deepest needs of the people who live, learn, heal, [email protected] Pieper O’Brien Herr Architects was established in 1971 work and play in the environments we create. It’s [email protected] and provides architecture, interior design, and graphic design services for both public and private sector clients that simple. For over 40 years, Astorino has been at HHSDR has been building relationships with our clients throughout the United States. The firm is headquar- the forefront of where people and design intersect. A since 1953. Specializing in the adaptive reuse of facili- tered in Atlanta with a regional office in Pittsburgh. Our full-service company, Astorino combines architectural, ties for education and training, commerce, and govern- design portfolio includes a diverse range of markets engineering, construction and interior design solu- DRS Architects, Inc. ment, we have designed for sustainability since the including office, industrial, mission critical, educational, tions with unprecedented human-centered research One Gateway Center, Seventeenth Floor 1980s. HHSDR has completed LEED-certified projects justice and retail. to provide one seamless delivery process. We leverage Pittsburgh, PA 15222 in Allegheny and Mercer counties. For several years, we our creative foundation, interdisciplinary expertise and T: 412-391-4850 have been ranked by the Pittsburgh Builders Exchange strong collaborative approach to impact the greater F: 412-391-4815 as the most active firm in the tri-state region. We’ve good...to design for the future...and to re-imagine www.drsarchitects.com earned that ranking by providing high-quality and landscapes. Kathryn Jolley responsive service to our clients. Our project portfolio [email protected] includes projects sized from a few hundred to 400,000 Designing for the future, DRS Architects continues to square feet. provide innovative and creative architectural solutions as we have for more than 50 years. We listen carefully to our clients’ needs and develop customized responses Renaissance 3 Architects, P.C. to each design challenge. We provide architecture, 48 South 14th Street interior design and master planning services through Pittsburgh, PA 15203 the varied markets of higher education, laboratories, T: 412-431-2480 health and wellness, government, hospitality, and www.r3a.com corporate offices. Our talented design teams work to Design 3 Architecture PC Deepak Wadhwani 300 Oxford Dr. Ste. 120 develop exemplary projects which enrich daily life, [email protected] Monroeville, PA 15146 improve communities, advance a sustainable future and promote design excellence. IKM Incorporated At R3A we believe that successful design shapes envi- T: 412-373-2220 ronments that actively engage the senses and facilitate www.d3a.com One PPG Place Pittsburgh, PA 15222 positive human interactions and behaviors, while William Snyder employing technologies that help improve the perfor- [email protected] T: 412-281-1337 F: 412-281-4639 mance of our daily lives. R3A is a 17-person firm with Design 3 Architecture has been offeringarchitecture, Front Studio Architects www.ikminc.com three principals supported by an experienced and cre- planning, and interior design services to the Pittsburgh 357 N. Craig Street Joel R. Bernard, AIA, NCARB, LEED AP ative team of architects, interior designers and project region since 1982. We view inherent project constraints Pittsburgh PA 15213 Principal managers. R3A provides a full range of architectural, as potential opportunities for innovative design solu- T: 412-682-2121 [email protected] interior design, planning services. We pride ourselves in tions. With a philosophy grounded in team collabora- www.frontstudio.com being uniquely qualified to respond to the increasingly tion, providing both personal attention and project IKM Incorporated has been providing architecture, diverse and complex facilities needs of our clients and Art Lubetz planning and interior design services to corporate and leadership, Design 3 Architecture does more than solve [email protected] their organizations. problems. We provide solutions that are unique, excit- institutional clients for 100-years. IKM’s mission is to Front Studio’s architecture is experientially powerful ing and affordable. provide innovative and informed architecture that and environmentally responsive. Our emphasis on col- positively impacts the world through leadership in laboration and experimentation defines flexible spaces understanding, exploration and decision making. IKM with the capacity to evolve and adapt. Front Studio’s is a member of the American Institute of Architects and steadfast reputation for excellence is due to an inten- the US Green Building Council. RSH Architects sive review process that includes code compliance, bud- 363 Vanadium Road #200 get control measures and sound construction practices. Pittsburgh PA 15243 Our work uses provocative yet economical materials to T: 412.429.1555 x 19 Desmone & Associates Architects produce fresh and unique solutions. One Doughboy Square F: 412.279.7285 3400 Butler Street www.rsharc.com Pittsburgh, PA 15201 Joel C. Cluskey, AIA, CCS T: 412-683-3230 Lami Grubb Architects, LP [email protected] F: 412-683-3563 100 E. Swissvale Avenue RSH Architects celebrates its fourth decade of profes- www.desmone.com Pittsburgh, PA 15218 sional practice with renewed ownership, enthusiasm, Chip Desmone, AIA, LEED AP T: 412.243.3430 and a commitment to quality architecture that endures [email protected] Gerard Associates Architects, L.L.C. F: 412.371.1586 - aesthetically, functionally and environmentally. RSH 1601 Arrott Building www.lamigrubb.com Desmone & Associates Architects is a full-service archi- Architects serves diverse clientele within a variety of 401 Wood Street Chelsea Cox tecture, planning and interior design firm located in the markets which include colleges and universities, finan- Pittsburgh, PA 15222-1838 Suzan Lami, AIA historic Lawrenceville district of Pittsburgh. Since 1958 cial institutions, housing, municipal governments, and T: 412-566-1531 [email protected] high technology manufacturing. we have serviced the industrial, commercial, private www.gerardassociatesarchitects.com and non-profit sectors with friendly and efficient -ser Placing the client at the center of every project, our Dawn M. Danyo, AIA LEED AP BD+C designs come from a thorough understanding of the vice. Design is our passion! We care deeply about each [email protected] detail of every project, and we listen intently to the client’s goals and a genuine passion needs and desires of our clients. Our unique knowledge A Woman Owned Business providing architecture, plan- for exceeding those goals. Our 38 professionals, with and skills, coupled with our strong client commitment, ning, interior and environmentally responsible design years of experience and deep creative talent, bring enables our team to transform the vision of our clients services to a full range of commercial clients since value to community, corporate, institutional, into a reality. 1959. The firm commits itself to understanding projects medical, residential, and retail/restaurant projects. completely, developing working relationships with Utilizing LEED accredited staff, we create enduring clients and delivering projects that are technically and environments that are sensible to build. aesthetically complete. Every project is given principal Lami Grubb Architects completes over 500 projects each attention. We believe this commitment to service yields year across the United States and in Canada, and is a superior design. certified woman-owned business. www.developingpittsburgh.com 69 Lampus Company Parkway Yard GAI Consultants, Inc. 385 E. Waterfront Drive RSSC Architecture 2321 Todd Road Pennoni Associates Inc. 5500 Brooktree Road, Suite 300 Homestead, PA 15120 Aliquippa, PA 15001 700 Seco Road Wexford, PA 15090 T: 412-476-2000 www.lampus.com Monroeville PA 15146 T: 724-933-9100 www.gaiconsultants.com John Bliss T: (412) 229-2778 www.rsscarch.com Patrick M. Gallagher 412-362-3800 www.pennoni.com Ralph J. Sterzinger, AIA [email protected] [email protected] John Skorupan [email protected] Transforming ideas into reality for over 50 years, Cindy Burianek [email protected] The firm of Ross Schonder Sterzinger CupcheckP.C. GAI’s teams of real estate and economic counselors, 724-375-6637 Pennoni Associates is a multi-disciplined consulting has been practicing architecture for over 45 years. urban planners, engineers, environmental specialists, engineering and design firm employing 900 profes- [email protected] The scope of our practice varies widely from public surveyors, and landscape architects provide innovative, sional, technical, and administrative personnel with facilities to private developments. RSSC Architecture’s Visit the Lampus Company brick and concrete products practical, and cost-effective solutions for all stages of 28 offices throughout the eastern United States. Pen- design philosophy is the utilization of practical and showroom at the Parkway Yard to view the latest land development. Our award-winning land develop- noni, an ESOP company, offers services in Site Design, sustainable materials, applied in a creative manner colors, shapes, sizes, and textures of multiple brick ment portfolio includes large multi-use complexes, Landscape Architecture, Environmental, Health and that recognizes the unique individuality of each client lines. Also plan to schedule product review meetings retail centers, healthcare and educational campuses, Safety, Indoor Air Quality, Surveying, Transportation, and project. RSSC Architecture’s end goal is to create a with your clients at the Parkway Yard showroom. View residential communities, urban streetscapes, parks and Land Development, Construction Inspection and Test- facility that satisfies the current and future needs of the samples to assist with the decision making process. The trails, marinas, and resorts. Distinguished in our coming, MEP, Geotechnical, Underwater Inspection, and client through the appropriate application of creative Parkway Yard also features the convenience of immedi- mitment to urban-infill, Greenfield, and brownfield Structural Engineering. Locally, Pennoni has offices design and building elements. ate inventory of concrete products for the building and development, we help clients achieve their project located in State College, Monroeville and Uniontown construction industries. Delivery services are available. goals. GAI brings projects from ideas to reality. Learn that service the developer, building owner, industrial, Contact the Parkway Yard for complete details – more at www.gaiconsultants.com. transportation, education, government, and Marcellus 724-375-6637. Shale industries in western Pennsylvania, West Virginia, and Ohio.

Civil Engineer The Gateway Engineers 400 Holiday Drive, Suite 300 Pittsburgh PA 15220 VEBH Architects, P.C. T: 412-921-4030 R.A. Smith National 470 Washington Rd F: 412-9219960 300 Corbet Street, Suite 200B Pittsburgh PA 15228 www.gatewayengineers.com Tarentum, PA 15084 T: 412-561-7117 Ryan L. Hayes, Director of Business T: 724-224-2330 Dan Skrabski Michael Baker Jr., Inc. Development F: 724-224-5254 Airside Business Park [email protected] [email protected] www.rasmith.com 100 Airside Drive VEBH Architects has been serving the communities John Frydrych, M.S., P.E. The Gateway Engineers, Inc. and its predecessors have of Southwestern Pennsylvania and beyond for more Moon Township, PA 15108 played an active role in the development of the Ohio [email protected] than 65 years. We are passionate about creating T: 724-495-4135 Valley since 1882. Our incessant pursuit of project R.A. Smith National is a multi-disciplinary consulting quality environments for our clients. Our designs for www.mbakercorp.com management excellence has created strengths in engineering firm that is a leader in civil engineering workplaces enhance client identity, offer increased Steve Savich, Land Development Lead municipal engineering, consulting work, and all facets and sustainability. R.A. Smith National works with productivity, and deliver long-term value to a business, [email protected] of private development including the burgeoning clients to deliver excellence, vision and responsive as well as the customers and the community it serves. Baker’s professionals provide full service consulting on energy industries. service. Developers and governmental agencies take We are committed to creating great places that inspire, residential, commercial, retail developments, industrial/ The tradition of providing value-added engineering advantage of the diverse expertise and team col- motivate, and ultimately enrich our region and the office parks, educational/ governmental facilities and solutions carries on as the company continues to grow. utility infrastructure projects. From brownfield rede- laboration that is incorporated in every project. The communities in and around the places we call home. Gateway’s staff of registered professional engineers, velopments and greenfield sites to projects in densely firm provides comprehensive civil engineering services surveyors, construction inspectors, and landscape populated urban areas and redevelopment/expansions that include civil engineering, ecological services, land architects, along with qualified technicians, is ready to to existing sites, Baker delivers all your land develop- development engineering, site planning, surveying, provide the expertise and personalized service which ment needs. Preliminary Site Investigations & Evalu- visualization, water resource engineering and 3D every project deserves. For more information, please Building Products ations, Feasibility Studies, Site Planning & Conceptual laser scanning. Offices are located in Pittsburgh, PA; Plan Preparation, Utility Infrastructure Design visit www.gatewayengineers.com Milwaukee, WI; and Orange County, CA. Landscape Architecture, Stormwater Management, Ero- sion Control (NPDES Permitting), Federal, State, & Local Permitting, Bidding & Construction Phase Services, Site Engineering, Services for Design-Build Development. Mackin Engineering Company RIDC Park West 117 Industry Drive ARDEX Americas Pittsburgh, PA 15275 400 Ardex Park Drive T: 412-788-0472 Red Swing Group Aliquippa, PA 15001 Bowman Consulting www.mackinengineering.com 4154 Old William Penn Hwy 680 Andersen Drive T: 724.203.5066 C: 724.544.0925 Robert W. Genter, RLA, ALSA Suite 300 Foster Plaza 10, Suite 430 www.ardexamericas.com Director- Land Development Services Murrysville, PA 15668 Pittsburgh, PA 15220 [email protected] T: 724.325.1215 Danielle Hunsicker T: 412-328-2222 Serving our clients since 1960, Mackin Engineering F: 866.295.5226 [email protected] www.bowmanconsulting.com Company continues to be a leader in the civil engineer- www.RedSwingGroup.com A global leader in the development and manufactur- Michael Pointer, CLA ing field. We offer a wide range of professional consult- Matthew Smith ing of high-performance specialty building products [email protected] ing services for both public and private sector clients [email protected] including all aspects of flooring and tile & stone Bowman Consulting delivers real estate, from across the Commonwealth. Mackin places an em- installations for commercial and residential applica- Red Swing Consulting Services views its clients as energy, infrastructure and environmental phasis on our staffs’ ongoing professional development tions. ARDEX Americas has led the industry for 30+ partners focusing first and foremost on building and development solutions to public and private to best serve our clients. Our multi-disciplinary staff years in product performance and innovation. ARDEX maintaining strong relationships. Mutual trust from markets throughout the country. Bowman includes dedicated professionals in the fields of traffic, introduced self-leveling cements into the U.S. and these relationships is the foundation of solid business offers the depth of resources commonly civil, highway and structural engineering; landscape ARDEX K 15® is still the most specified self-leveling partnerships. Red Swing offers complete land develop- found at large design firms, while operating architecture; municipal planning; land surveying; and underlayment in North America. ARDEX also offers a ment consulting services to take a project from concept construction inspection/management; graphic design; comprehensive Polished Concrete System and a full- with the flexibility of a boutique firm. Our team through construction. Red Swing possesses experience line of Concrete Repair and Restoration products for of specialists provides successful strategies and IT services. in land development, infrastructure, utility, environ- exterior concrete surfaces. ARDEX prides itself on un- and full-service capabilities to exceed the mental and communication projects. Red Swing ef- matched customer service, technical support, training expectations of the client, community and fectively maximizes the return on investment through and a commitment to the profitability of its customers’ stakeholders. a collaborative design approach, utilizing a low impact businesses as the Ultimate Partner. design philosophy that reduces project capital costs and produces the competitive edge that we and our 70 DevelopingPittsburgh | Fall 2012 partners demand. Construction Consultant

KU Resources, Inc. Continental Building Systems McKamish, Inc. 22 South Linden Street 395 E. Waterfront Drive Suite 300 55th & AVRR Duquesne, PA 15110 Homestead, PA 15120 Pittsburgh PA 15201 T: 412-469-9331 T: 412-476-3006 T: 412-781-6262 F: 412-469-9336 www. continental-buildingsystems.com F: 412-781-2007 www.kuresources.com Carl L. Belli, LEED AP www.mckamish.com Mark Urbassik [email protected] Dave Casciani [email protected] [email protected] Baer & Associates, LLC Continental Building Systems (CBS) draws on a com- When it comes to specialty mechanical contracting, 700 River Avenue, Suite 543 KU Resources, Inc. provides a full range of environmen- prehensive scope of services, customized for every McKamish sets the bar. The Commercial Construction Pittsburgh, PA 15212 tal management and site development engineering client, to build solutions for their companies. We offer Group at McKamish serves customers big and small in T: 412-224-4892 services to industrial, commercial, and community- a single source with total development, design and based clients. The firm specializes in brownfield rede- virtually all market segments, meeting their Mechani- www.baer-associates.com construction services available to our clients. With a velopment, environmental site assessment, economic cal Contracting, Plumbing and HVAC needs. We excel at Josh Telenko 26-year history and an annual construction volume of revitalization assistance, regulatory permitting and Pre-Construction and Design Assist/Build services. The [email protected] over $200 million, we have a diverse base of experience compliance, remediation design and implementation, in commercial construction, including multi-story of- McKamish Service Group thrives to optimize customer Baer & Associates is a full service construction con- and environmental risk management strategies. The fice buildings and tenant improvements, retail, restau- investment in new and existing building systems. A sulting firm specializing in preconstruction services firm’s engineering and environmental consulting capa- rants, warehouses, industrial / manufacturing, medical, dedicated team of professional technicians, operating a including: Cost Estimating, Value Engineering, Cost bilities also include the areas of civil and geotechnical recreational, education, multifamily, student housing, fleet of vehicles, provide McKamish Service customers Consulting, Cost Segregation, Litigation Support, and engineering, site development engineering, water assisted living and site development. with around-the-clock support. Please visit our website Constructability Reviews. In business since 1976 and resources engineering, mining and quarry services, – www.mckamish.com – to learn more about us! with a combined staff experience of over 100 years in water quality monitoring, and air quality compliance the construction industry, we have tailored our services and permitting. We also provide forensic engineering to provide independent estimates and reports to reflect and litigation support services. the current bidding climate and market conditions with unprecedented accuracy and integrity. We strive to provide real-world costs regardless of project size Contractor Restoring the Past Building the Future and/or phase of design to guide owners and designers Jendoco Construction Corporation to a common intended budget to eliminate bid-day 2000 Lincoln Road PJ Dick Inc. uncertainties. Pittsburgh PA 15235 225 North Shore Drive T: 412-361-4500 Pittsburgh PA 15212 F: 412-361-4790 T: 412-807-2000 A. Martini & Company www.jendoco.com www.pjdick.com 320 Grant Street Domenic Dozzi Bernard J. Kobosky Verona PA 15137 [email protected] [email protected] T: 412-828-5500 www.amartinigc.com Located in Pittsburgh for over 50 years, Jendoco has PJ Dick – Trumbull – Lindy Paving is a Pittsburgh, PA Campayno Consulting Services, Emily Landerman built a reputation for being a premier quality general based contracting entity providing building construc- LLC [email protected] contractor and construction manager with expertise tion, highway, site, and civil construction and asphalt in many facets of building construction. From renova- paving services. Since 1979, the companies have served P.O. Box 554 Established in 1951, A. Martini & Co. is not just a tions, to restorations, to new construction, our team a number of different owner groups including com- Oakmont, PA 15139 general contracting and construction management of seasoned professionals has the experience and mercial, institutional, government and private equity T: (412) 794-8129 firm – it is a family business that embodies the dedica- commitment to meet the challenges of your projects. developers. Consistently ranked among the nation’s F: (412) 794-8130 tion, work ethic and talent of three generations of We have experience with new construction, renova- top firms, the family owned group of companies is www.campaynoconsulting.com the Martini family. A. Martini & Co.’s size, history and tion, historical restoration and preservation, research widely considered the region’s largest construction firm Jesse C. Campayno work philosophy are specifically geared to offering facilities, hospitals and medical facilities, schools and offering a variety of delivery systems utilizing superior T: 412-302-0035 experience, commitment and a partnering approach. A. Martini & Co. provides construction management universities, religious facilities, water treatment facili- expertise, equipment and innovation. [email protected] ties, multi-tenant residential, commercial, industrial, Campayno Consulting provides construction consult- and general construction services for multimillion dollar and smaller projects for industry, retail, medical, institutional, retail and sustainable construction. ing services for owners and developers who need entertainment, corporate, residential, education and assistance managing the complex contractual relation- non-profit clients. ships between their contractor and architect. Jesse Campayno has more than 37 years of experience in Rycon Construction Inc. field and executive positions, giving him insight into 2525 Liberty Avenue the best practices of project management. Campayno Pittsburgh PA 15222 focuses on five core services: Owner representation and LANDAU BUILDING COMPANY T: 412-392-2525 construction management; estimating and conceptual 9855 Rinaman Road F: 412-392-2526 budgeting; project executive services; dispute resolu- Wexford, Pennsylvania 15090 www.ryconinc.com tion and business consulting. Our clients rely on our T: 724-935-8800 Todd Dominick Burchick Construction Company Inc. www.landau-bldg.com expertise to add value to their projects by providing [email protected] 500 Lowries Run Road Thomas Landau clear direction, maintaining open lines of communica- Pittsburgh PA 15237 [email protected] Rycon Construction, Inc. is a premier preconstruction, tion and placing the project owner’s goals as the top T: 412-369-9700 general contracting and construction management Since our inception nearly 120 years ago, Landau Build- priority. www.burchick.com firm with expertise in new construction, renovations ing Company has evolved into a premier commercial Joseph E. Burchick and design-build projects for owners of commercial, construction firm. For over five generations we have -in [email protected] industrial, institutional and governmental buildings. sisted on exceeding our clients’ expectations for quality Rycon’s stellar reputation for quality service is built on Burchick Construction is a full-service general contrac- and service – and that insistence built the reputation a solid history of successful projects completed on time tor founded on the commitment to excellence that Joe we reinforce every day. Focusing on client satisfaction and on budget and an unwavering business philosophy Consultant Burchick brings to each project the company under- is our philosophy and our business strategy. Demon- that puts customer satisfaction first. The results are takes. Burchick’s management approach is designed strating our integrity, value, and quality on every proj- return customers and impressive company growth. to ensure optimum results for our clients, setting the ect is our plan to ensure continued success. Our clients Rycon has executed more than $1.5 billion of work and performance standard for construction services. Our know that Landau will represent their best interests currently averages in excess of $100 million annually. executives and managers have broad-based experience and deliver the best product money can buy. delivering construction to the highest standards, regardless of the client’s preference for delivery method. Burchick’s project team and professional engineers on staff are equally comfortable with a completed design or with providing pre-construction assistance at the earliest stages of design. Burchick has managed commercial, industrial and institutional projects from $100,000 to $73 million with equal attention. Burchick www.developingpittsburgh.com 71 Construction, setting the performance standard. Developer Economic Development

TEDCO Construction Corp. Washington County Chamber of TEDCO Place Commerce Carnegie, PA 15106 Oxford Development Company 20 East Beau Street T: 412·276·8080 Washington, PA 15301 One Oxford Centre www.tedco.com Ambridge Regional T: 724-225-3010 Pittsburgh PA 15219 Bryan H. Clark 2301 Duss Avenue Suite 1 F: 724-228-7337 T: 412-261-1500 [email protected] Ambridge PA 15003 Mary Stollar www.oxforddevelopment.com TEDCO Construction brings over three decades of T: 724-266-4661 Director of Business Investment Shawn Fox collective construction experience to our clients. We www.ambridgeregional.com www.WashingtonCountyWorks.com [email protected] continue to grow by successfully delivering a balance Gene Pash, President The Washington County Chamber of Commerce is the A partner in real estate development and service.Ox- of new and renovation work in commercial, education, [email protected] largest business organization in Washington County ford Development is a premiere full-service commercial healthcare and industrial facilities. Team building, Value Ambridge Properties at the Ambridge Regional and the second largest chamber of commerce in South- real estate firm. Building upon the solid foundation management services and project control is the foun- Distribution & Manufacturing Center is located in western Pennsylvania. The Chamber focuses on eco- of a 50-year history, Oxford is the largest, privately- dation of our outstanding list of clients. Beaver County and is convenient to all major local nomic and business development initiatives to expand owned real estate development and services firm in roadways, and only 11 miles from the proposed ethane the economy of Washington County and was one of the Pennsylvania. The company’s owned and managed cracker plant. Entirely zoned for industry, its 85 acres first organizations to publically support the economic portfolio consists of retail, office, institutional, health- house 22 buildings that contain over one million benefits and job creation potential of the natural gas care, residential, industrial and sports and entertain- square feet of leasable business, warehouse, office, wet industry. Learn more at www.washcochamber.com. ment assets throughout the United States and includes lab, distribution, and manufacturing space. Its tenants some of the country’s signature real estate properties. also enjoy direct access to Norfolk Southern Rail Co. Oxford has been involved in over 4.5 million square feet service as well as on-site maintenance and logistics of LEED® certified projects. Above all, Oxford’s greatest services. For more information, call 724-266-4661, or asset is its team of accredited professionals. visit www.ambridgeregional.com. Engineer T Construction & Consulting Services 2593 Wexford-Bayne Road, Suite 207 Sewickley, PA 15143 Armstrong County Industrial T: 412.238.1500 Horizon Properties Group, Inc. Development Council www.tccserv.com 375 Southpointe Blvd. 124 Armsdale Road, Suite 205 Traci Yates Suite 410 Kittanning, PA 16201 [email protected] Canonsburg, PA 15317 T: 724-548-1500 T Construction & Consulting Services was established T: 724-743-7722 ext 2502 F: 724-545-6055 Atlantic Engineering Services www.armstrongidc.org in 2011 by Traci Yates to provide construction and Michael Swisher 650 Smithfield Street, Suite 1200 Michael P. Coonley, AICP, consulting services. With over 25 years of experience [email protected] Pittsburgh, PA 15222 Executive Director in the construction industry, we are dedicated to our Horizon Properties Group, Inc. is a full service real T: 412-338-0051 [email protected] clients providing Total Project Solutions for projects in estate development company with extensive experi- www.aespj.com the commercial industrial, municipal, higher educa- ence in the development of new communities, office The Armstrong County Industrial Development Council John Schneider, P.E. tion, healthcare, housing, entertainment, government buildings, corporate headquarters facilities, retail, (ACIDC), established in 1968 is a private 501(c) 3 indus- [email protected] and retail markets. We are a 100% woman owned and trial development corporation. Identified as the lead hospitality and residential projects. The company is Atlantic Engineering Services provides structural operated company with Woman Business Enterprise economic development group within the County, the headed by Rod L. Piatt and Michael Swisher who were engineering services. Our clients benefit from proactive (WBE) certifications. Construction project delivery ACIDC, along with its sister organization the Armstrong the key individuals responsible for the successful devel- engineers searching out optimal solutions. The interac- methods include Construction Management at Risk, County Industrial Development Authority, provides opment of Southpointe including the master planning. tion of these engineers with other disciplines, along Construction Management as Advisor, Design-Build single-point-of-contact service for emerging or ex- Horizon Properties Group is comprised of an in-house with regional expertise, provides enhanced design or General Contractor. Consulting services include panding business and industry. Owners and operators staff of architects, planners, engineers, landscape ar- economies. Our practice areas include new construc- Cost Estimating, Owner’s Representative and Project of four industrial parks, single use and multi-tenant chitects, interior designers and financial professionals tion, renovation, historic structures, seismic retrofit, Management. facilities, the ACIDC works closely with existing or pro- that enable Horizon to excel in all facets of real estate concrete restoration and expert witness services for spective businesses to identify the right location. They development. all types of building owners including commercial, also provide financing assistance to companies through residential, institutional, K-12, university and higher government loan/grant programs and private sector education. financial institutions. Trammell Crow Company 600 Grant Street Volpatt Construction Suite 4800 100 Castleview Road Pittsburgh, PA 15219 Pittsburgh PA 15234 T: 412-471-2296 Regional Industrial Development T: 412-942-0200 www.trammellcrow.com Corporation of Southwestern Civil & Environmental F: 412-942-0280 James F. Murray-Coleman Pennsylvania [email protected] Consultants, Inc. www.volpatt.com 210 Sixth Avenue Suite 3620 333 Baldwin Road Ray Volpatt Jr. As one of the nation’s leading real estate development Pittsburgh, PA 15222 and investment firms with locations in 16 major cities, Pittsburgh, PA 15216 [email protected] T: 412-315-6447 T: 800-365-2324 Trammell Crow Company has operated for 60+ years as www.ridc.org Volpatt Construction, a General Contractor/Construc- master developer, partner and consultant dedicated to www.cecinc.com tion Manager who specializes in new construction, Tim White Gregory P. Quatchak, P.E. the fundamental principle of building value for our cli- [email protected] renovation, and restoration has successfully positioned ents. TCC executes development and acquisition strate- [email protected] itself as one of the most respected building contractors RIDC is recognized as one of Pennsylvania’s largest and Civil & Environmental Consultants, Inc. (CEC) is a com- gies tailored to meet the needs of its owner/occupant most successful private, not-for-profit economic de- in the Western Pennsylvania Tri-State area. From one clients. For investors, we offer strategic joint ventures, pany of professionals who provide integrated design small laboratory renovation at the University of Pitts- velopment corporations. Established in 1955, the RIDC and consulting services at all points in a property’s life opportunity funds and other targeted investment was formed to foster new employment opportunities burgh to more than 500 commercial, institutional and opportunities. By applying our “RISE” values: Respect, cycle. CEC’s industry experts offer a full complement industrial projects, Volpatt Construction has developed and to diversify the regional economy of Southwestern of evaluation, technical and regulatory insight. Our Integrity, Service and Excellence, we strive to provide Pennsylvania. Through a wide range of real estate a focus on high quality, hands-on service, competitive users and investors in, office, industrial, healthcare value lies in the practical knowledge senior leaders pricing, and timely project completion which has development activities, RIDC provides development, contribute along with our broad skill-sets and desire to and multi-family properties with world-class service finance, and lease of new and redeveloped buildings helped them build a long list of repeat clients. For and advice. advance our clients’ strategic objectives. We’re build- more information please contact Ray Volpatt, Jr. We and stands ready to assist the growth of businesses ing trust and our reputation on a local level through are Building. throughout the Pittsburgh region. Today, RIDC owns personal business relationships while continually as- over 2,800 acres of land in various suburban and urban sessing our environmental and economic sustainability industrial parks and manages over 60 buildings. in the communities where we practice.

72 DevelopingPittsburgh | Fall 2012 Environmental Dollar Bank Three Gateway Center PNC Real Estate 401 Liberty Avenue Firsching, Marstiller, Rusbarsky 249 Fifth Avenue Pittsburgh PA 15222 Pittsburgh PA 15222 & Wolf Engineering, Inc. Bowman Consulting T: 412-261-7515 www.pnc.com/realestate 1500 Ardmore Boulevard, Suite 200 680 Andersen Drive www.dollarbank.com Andy Blair, VP Pittsburgh, PA 15221 Foster Plaza 10, Suite 430 David Weber T: 412-768-3638 T: 412-271-5090 Pittsburgh, PA 15220 [email protected] [email protected] F: 412-271-5193 T: 412-328-2222 As your business changes, you’ll need the flexibility to Joseph Pascarella, AVP www.bowmanconsulting.com www.fmrwengineering.com respond to market opportunities by purchasing equip- T: 412-762-2672 Michael Pointer, CLA Joseph Loizzo, P.E. ment, expanding your facilities or increasing working [email protected] [email protected] [email protected] capital. Your credit needs will change as your business PNC Real Estate is a leading provider of banking, Bowman Consulting delivers real estate, grows, so your overall credit plan should address Firsching, Marstiller, Rusbarsky & Wolf Engineering, financing and servicing solutions for commercial real energy, infrastructure and environmental short-term demands as well as long-term growth. Inc. provides Mechanical, Electrical, Plumbing and estate clients. Our capabilities include acquisition, con- development solutions to public and private Dollar Bank’s Business Banking Experts will work to Fire Protection consulting engineering services for struction and permanent financing for developers and markets throughout the country. Bowman understand your business and assist you in achieving commercial buildings. We design M.E.P. systems for investors; agency financing for multifamily properties; offers the depth of resources commonly your goals with the right financing for your needs. For hospitals, surgery centers, office buildings, universities, and debt and equity capital for the affordable housing found at large design firms, while operating more information, contact David Weber, Vice President laboratories, churches, theaters, and airports. We also with the flexibility of a boutique firm. Our team industry. And, through Midland Loan Services, we Business Lending. perform engineering studies and site evaluations for of specialists provides successful strategies provide third-party loan servicing, asset management existing buildings. We work with building owners for and full-service capabilities to exceed the and technology solutions. evaluating and designing equipment replacement expectations of the client, community and projects such as water heaters, boilers, air handling stakeholders. units, chillers, generators, and electrical service up- grades. We use both Revit and AutoCAD to develop our construction documents. Geotechnical Engineer Grandbridge Real Estate Capital LLC 3000 U.S. Steel Tower 600 Grant Street Pittsburgh, PA 15219 ACA Engineering, Inc. Pennoni Associates Inc. T: 412-391-3366 40 Western Avenue Herbert, Rowland & Grubic, Inc. 700 Seco Road www.gbrecap.com Pittsburgh, PA 15202 Monroeville PA 15146 200 West Kensinger Drive, Suite 400 Daniel P. Puntil T: 412-761-1990 T: 412-229-2778 Cranberry Township, PA 16066 [email protected] www.acaengineering.com www.pennoni.com T: 724-779-4777 Grandbridge, a subsidiary of BB&T, arranges perma- Thomas R. Beatty John Skorupan www.hrg-inc.com nent commercial and multifamily real estate loans, ser- [email protected] [email protected] James A. Feath, R.L.A. vices loan portfolios, and provides asset and portfolio ACA Engineering, Inc. is an independently owned Pennoni Associates is a multi-disciplined consulting en- management and real estate brokerage services. With and operated geotechnical and environmental engi- [email protected] gineering and design firm employing 900 professional, a current servicing portfolio of more than $26 billion, neering, materials testing and inspection firm with We are a full-service consulting engineering firm technical, and administrative personnel with 28 offices Grandbridge represents approximately 100 capital celebrating 50 years of service. Our company is a throughout the eastern United States. Pennoni, an ESOP offices in Pittsburgh, Mechanicsburg, and Laporte nationally ranked Top 500 engineering design firm in company, offers services in Site Design, Landscape Ar- providers that include insurance companies, CMBS PA, and Youngstown, OH. Our engineers, geologist, the United States by Engineering News-Record (ENR) chitecture, Environmental, Health and Safety, Indoor Air investors, pension fund advisors, commercial banks draftspersons, inspectors, and technicians provide magazine. HRG has seven office locations throughout Quality, Surveying, Transportation, Land Development, and capital markets investors, as well as its proprietary quality designs, engineering studies, surveys, and Pennsylvania and West Virginia and has a staff of 250 Construction Inspection and Testing, MEP, Geotechnical, lending platform, BB&T Real Estate Funding. The project management. Our senior staff has a combined professional engineers, geologists, environmental Underwater Inspection, and Structural Engineering. company is a Fannie Mae DUS® lender, a Freddie Mac experience of over 100 years in engineering, construc- scientists, surveyors, landscape architects, and related Locally, Pennoni has offices located in State College, Program Plus® Seller/Servicer, and an approved FHA tion inspection, and laboratory testing. ACA maintains support personnel that provides a full-service approach Monroeville and Uniontown that service the developer, MAP and LEAN lender. an in-house laboratory that has been inspected and to every project. Our accomplished team provides building owner, industrial, transportation, education, accredited by AASHTO Materials Reference Laboratory, services related to land development, water resources, government, and Marcellus Shale industries in western Cement and Concrete Reference Laboratory, and the water/wastewater & energy, transportation, survey, Pennsylvania, West Virginia, and Ohio. U.S. Corps of Engineers. GIS, environmental, mechanical/electrical/plumbing, and financial consulting. Finance

Integra Realty Resources - Pittsburgh Garvin Boward Beitko KU Resources, Inc. T: 724-742-3324 Multi-Family Lender F: 724-742-3390 Engineering, Inc. 22 South Linden Street www.irr.com/pittsburgh 180 Bilmar Drive Duquesne, PA 15110 Bellwether Enterprise Paul D. Griffith, MAI, CRE, FRICS Suite IV T: 412-469-9331 K&L Gates Center Managing Director Pittsburgh, PA 15205 F: 412-469-9336 210 Sixth Avenue, Suite 840 [email protected] T: 412-922-4440 www.kuresources.com Pittsburgh, PA 15222 Joseph F. Boward, P.E., F.NSPE Mark Urbassik T: 412-566-1313 Over 135 years of experience providing [email protected] [email protected] www.bellwetherenterprise.com commercial real estate appraisals, market www.garvinbowardeng.com KU Resources, Inc. provides a full range of environmen- Barbara M. Sullivan, S.V.P. and feasibility studies, impact studies, litigation support and consulting throughout A firm built on reputation, Garvin Boward Beitko tal management and site development engineering [email protected] Engineering, Inc., provides geotechnical, forensic, ma- services to industrial, commercial, and community- Christopher Talerico, A.V.P Western Pennsylvania and West Virginia. In addition, with 65 offices across the United terials science, construction-phase evaluations/testing, based clients. The firm specializes in brownfield rede- [email protected] natural resource and environmental services to a wide velopment, environmental site assessment, economic Bellwether Enterprise has brought together our local States, we provide a national platform to solve your valuation challenges. range of clients. We perform subsurface investigations revitalization assistance, regulatory permitting and market expertise, national lending relationships and (including test borings and/or test pits), retaining compliance, remediation design and implementation, financing structure experience to offer our clients the structure designs, as well as a wide range of geotechni- most extensive multifamily, commercial real estate and environmental risk management strategies. The cal engineering studies and evaluations to meet clients’ solutions. With a portfolio of over $5 billion, we provide firm’s engineering and environmental consulting capa- needs. From foundations, retaining walls and earth- a variety of loan products for investment real estate bilities also include the areas of civil and geotechnical work to wetland delineations, habitat assessments engineering, site development engineering, water placed through a range of institutional investors including life insurance companies, pension funds, commercial and wildlife hazard assessments, our staff will provide resources engineering, mining and quarry services, expert recommendations to meet project demands. water quality monitoring, and air quality compliance banks, CMBS lenders and government agencies such as FHA, Fannie Mae, Freddie Mac. Call when you need an and permitting. We also provide forensic engineering www.developingpittsburgh.com 73 and litigation support services. expert in multifamily and commercial financing. Green Building/ Interior Designer Land Surveyor Energy Consultant

Bowman Consulting Green Building Alliance 680 Andersen Drive CLA S S-G. ORG 333 East Carson Street, Suite 331 Foster Plaza 10, Suite 430 Pittsburgh, PA 15219 Pittsburgh, PA 15220 CLASS-G T: 412-773-6004 Design 3 Architecture PC T: 412-328-2222 www.bowmanconsulting.com Foster Plaza 9 www.go-gba.org 300 Oxford Dr. Ste. 120 Michael Pointer, CLA 750 Holiday Drive [email protected] Monroeville, PA 15146 [email protected] Pittsburgh, PA 15220 Green Building Alliance (GBA) is a community benefits T: 412-373-2220 T: 412-922-1800 organization that inspires the creation of healthy, high www.d3a.com Bowman Consulting delivers real estate, www.class-g.org performing places for everyone by providing leadership William Snyder energy, infrastructure and environmental [email protected] Mike Embrescia that connects knowledge, transformative ideas, and development solutions to public and private [email protected] collaborative action. A chapter of the U.S. Green Build- Design 3 Architecture has been offeringarchitecture, markets throughout the country. Bowman Measure and communicate your sustainable manage- ing Council, GBA has served as a regional catalyst for planning, and interior design services to the Pittsburgh offers the depth of resources commonly ment practices for one location or thousands quickly nearly two decades. We offer over 125 different educa- region since 1982. We view inherent project constraints found at large design firms, while operating and inexpensively. Your staff measures the locations’ tion, training, and networking events annually, and as potential opportunities for innovative design solu- with the flexibility of a boutique firm. Our team operations against 100 easy-to-understand best prac- have created initiatives to track building performance, tions. With a philosophy grounded in team collabora- of specialists provides successful strategies tices and can do so in as little as one hour. The result is lower carbon emissions, and promote green schools. tion, providing both personal attention and project and full-service capabilities to exceed the a sustainability rating. Use Class-G as a comprehensive Visit www.go-gba.org to learn more about our exciting leadership, Design 3 Architecture does more than solve expectations of the client, community and planning tool for continuous improvement, measuring programs or to become a member! problems. We provide solutions that are unique, excit- stakeholders. one location against all your others, or to provide leading and affordable. ership by transparency to all your stakeholders through our unique communications tools. Class-G costs just $700 per location, and less for 10 or more.

GAI Consultants, Inc. m/design 385 E. Waterfront Drive Pittsburgh PA Homestead, PA 15120 IRONWORKER EMPLOYERS T: 412-922-7219 T: 412-476-2000 T Trane ASSOCIATION www.mdesignpgh.com www.gaiconsultants.com 400 Business Center Drive Of Western Pennsylvania Mary Ann Mozelewski, ASID, LEED AP Patrick M. Gallagher Pittsburgh, PA 15205 Foster Plaza 9 [email protected] [email protected] T: 412-747-3000 750 Holiday Drive, Suite 615 Providing Interior Design, Space Planning, Project www.Trane.com Transforming ideas into reality for over 50 years, Pittsburgh, PA 15220 Management and CAD Drafting and Detailing Services. GAI’s teams of real estate and economic counselors, Tim White, Sales Manager Complex Solutions T: 412-922-6855 These services are completed in a cost effective manner [email protected] urban planners, engineers, environmental specialists, www.iwea.org using award winning design solutions, technical exper- surveyors, and landscape architects provide innovative, Trane, a wholly owned subsidiary of Ingersoll Rand William C. Ligetti, Jr. tise and utilizing numerous years of industry experi- practical, and cost-effective solutions for all stages of (NYSE: IR), is a world leader in creating and sustaining [email protected] ence. m/design specializes in Commercial Interiors and land development. Our award-winning land develop- safe, comfortable and efficient environments in com- The IWEA is a Trade Association of Union Contractors has recently completed the Interiors for Master Builders’ ment portfolio includes large multi-use complexes, mercial, residential and industrial markets. Trane offers who work in all aspects of the Ironworking Trade within Association’s Headquarters, The Western Pennsylvania retail centers, healthcare and educational campuses, a broad range of energy-efficient heating, ventilation the Construction Industry. We are a resource for all Carpenter’s Training Center and the executive offices for residential communities, urban streetscapes, parks and air conditioning solutions services, systems and owners, developers and contractors who are looking SAE International. solutions, including aftermarket service and parts; and trails, marinas, and resorts. Distinguished in our for a qualified contractor with a well-trained work- commitment to urban-infill, Greenfield, and brownfield advanced building controls; and building solutions that force. Visit our website or call our office for additional allow energy-efficient systems to pay for themselves development, we help clients achieve their project information. through energy savings. Over nearly 100 years, Trane’s goals. GAI brings projects from ideas to reality. Learn built their reputation for reliability, high quality, prod- more at www.gaiconsultants.com. uct innovation, and a powerful distribution network. Visit www.trane.com.

Master Builders’ Association of Industry/Trade Association Western Pennsylvania, Inc. 631 Iron City Drive Pieper O’Brien Herr Architects Pittsburgh PA 15205 800 Vinial Street #B314 T: 412-922-3912 Pennoni Associates Inc. Pittsburgh PA 15212 www.mbawpa.org 700 Seco Road T: 412.321.8313 Jon O’Brien Monroeville PA 15146 www.poharchitects.com [email protected] T: (412) 229-2778 The Master Builders’ Association is a trade associa- Loren Wright, AIA www.pennoni.com tion whose membership includes over 150 of the top [email protected] John Skorupan general contractors, construction managers, specialty Pieper O’Brien Herr Architects was established in 1971 [email protected] contractors, and service and supplier companies sup- and provides architecture, interior design, and graphic Pennoni Associates is a multi-disciplined consulting Builders Guild of Western PA, Inc. porting our region’s commercial construction industry. design services for both public and private sector clients engineering and design firm employing 900 profes- 650 Ridge Road, Suite 301 Collectively, the membership accounts for over 80 throughout the United States. The firm is headquar- sional, technical, and administrative personnel with Pittsburgh, PA, 15205 percent of the commercial construction in Western PA. tered in Atlanta with a regional office in Pittsburgh. Our 28 offices throughout the eastern United States. Pen- T: 412-921-9000 The MBA brings a strong, influential and single voice to design portfolio includes a diverse range of markets noni, an ESOP company, offers services in Site Design, www.buildersguild.org the industry, which is our greatest source of pride and including office, industrial, mission critical, educational, Landscape Architecture, Environmental, Health and justice and retail. Building trade unions and contractors working to- legacy since 1886. We are one of 96 chapters affiliated Safety, Indoor Air Quality, Surveying, Transportation, gether to provide the best value in construction. Our with AGC of America representing over 32,000 mem- Land Development, Construction Inspection and Test- 40,000 member workforce is professionally trained in bers nationwide. ing, MEP, Geotechnical, Underwater Inspection, and the finest apprenticeship centers in the country. We Structural Engineering. Locally, Pennoni has offices understand the demands of the industry, are commit- located in State College, Monroeville and Uniontown ted to customer satisfaction and are drug free. Today’s that service the developer, building owner, industrial, building trade unions are setting a new standard of transportation, education, government, and Marcellus excellence. Get to know us. Shale industries in western Pennsylvania, West Virginia, and Ohio. 74 DevelopingPittsburgh | Fall 2012 Professional Services R.A. Smith National 300 Corbet Street, Suite 200B Tarentum, PA 15084 Grant Street Associates, Inc. The Grant Building T: 724-224-2330 310 Grant Street F: 724-224-5254 Pennoni Associates Inc. Suite 1550 www.rasmith.com 700 Seco Road Pittsburgh, PA 15219 John Frydrych, M.S., P.E. Monroeville PA 15146 Schneider Downs T: 412-391-2600 [email protected] T: (412) 229-2778 1133 Penn Avenue Pittsburgh, PA 15222 www.gsa-cw.com R.A. Smith National is a multi-disciplinary consulting www.pennoni.com John Skorupan T: 412-261-3644 At Grant Street Associates, Inc., we aim to be your com- engineering firm that is a leader in civil engineering www.schneiderdowns.com and sustainability. R.A. Smith National works with [email protected] mercial real estate provider of choice - the standard Gennaro DiBello for industry knowledge, service and execution in the clients to deliver excellence, vision and responsive Pennoni Associates is a multi-disciplined consulting en- [email protected] Pittsburgh region. As a full-service commercial real service. Developers and governmental agencies take gineering and design firm employing 900 professional, estate firm and member of the Cushman & Wakefield advantage of the diverse expertise and team col- technical, and administrative personnel with 28 offices Since 1956, Schneider Downs has provided an array laboration that is incorporated in every project. The throughout the eastern United States. Pennoni, an ESOP of financial and consulting services to the real estate Alliance, Grant Street Associates has been providing firm provides comprehensive civil engineering services company, offers services in Site Design, Landscape Ar- industry, including accounting, tax, business advisory, unsurpassed client-oriented tenant, landlord, buyer that include civil engineering, ecological services, land chitecture, Environmental, Health and Safety, Indoor Air wealth management, corporate finance and technol- and seller representation services since 1993. We development engineering, site planning, surveying, Quality, Surveying, Transportation, Land Development, ogy consulting services. We have a team of profes- have built one of the most dedicated, recognized and visualization, water resource engineering and 3D Construction Inspection and Testing, MEP, Geotechnical, sionals dedicated to serving our real estate clients, respected commercial real estate firms in the Greater laser scanning. Offices are located in Pittsburgh, PA; Underwater Inspection, and Structural Engineering. providing strategic services to meet the specific needs Pittsburgh region. Milwaukee, WI; and Orange County, CA. Locally, Pennoni has offices located in State College, of this unique industry. By integrating our years of Monroeville and Uniontown that service the developer, experience serving real estate clients, our professionals building owner, industrial, transportation, education, help our clients improve cash flows, save on taxes and government, and Marcellus Shale industries in western increase profitability. Landscape Architect Pennsylvania, West Virginia, and Ohio. Newmark Grubb Knight Frank Six PPG Place, Suite 600 Real Estate Broker Pittsburgh, PA 15222 Liquor License/ T: 412-281-0100 www.newmarkkf.com Gerard McLaughlin Restaurant Broker [email protected] Louis Oliva GAI Consultants, Inc. [email protected] A part of BGC Partners, Inc. (NASDAQ:BGCP), Newmark 385 E. Waterfront Drive Specialty Group CBRE Homestead, PA 15120 U. S. Steel Tower, Suite 4800 Grubb Knight Frank is one of the largest commercial 3205 McKnight East Drive real estate service firms in the U.S. It brings together T: 412-476-2000 Pittsburgh, PA 15237 600 Grant Street www.gaiconsultants.com Pittsburgh, PA 15219 the strategic consultative approach to creating value T: 412-369-1555 for clients and leading position in the New York market Patrick M. Gallagher www.specialtygroup.com T: 412-471-9500 [email protected] www.cbre.com/pittsburgh that are hallmarks of Newmark Knight Frank; the Terri Sokoloff complementary strengths of Grubb & Ellis in leasing Transforming ideas into reality for over 50 years, Jack Norris [email protected] and management, investment sales, valuation and GAI’s teams of real estate and economic counselors, [email protected] Since 1986 Specialty Group has been Pennsylvania’s capital markets services; and BGC’s financial strength, urban planners, engineers, environmental specialists, The Pittsburgh, Erie and State College Officesof CBRE is one-stop source for all bar, restaurant and liquor proprietary technology, expertise in global capital surveyors, and landscape architects provide innovative, the local leader in providing comprehensive commercial license related business services. Having processed markets and deep relationships with many of the practical, and cost-effective solutions for all stages of real estate services to property owners, investors and thousands of transfers statewide, Specialty Group has world’s leading financial institutions. Newmark Grubb land development. Our award-winning land develop- tenants. Recognized as the largest commercial real es- become known as the largest liquor license broker in Knight Frank, together with its affiliates and London- ment portfolio includes large multi-use complexes, tate service provider in the western, Northwestern and Western Pennsylvania, providing licenses for restau- based partner Knight Frank employ more than 11,000 retail centers, healthcare and educational campuses, Central Pennsylvania areas, CBRE Pittsburgh has set the rants, beer distributors and six-pack shops to individual professionals, operating from more than 300 offices residential communities, urban streetscapes, parks and standard for excellence in the marketplace for over 50 operators, brokers, developers etc. Specialty Group is a in established and emerging property markets on five trails, marinas, and resorts. Distinguished in our com- years. We offer extensive corporate real estate solutions, boutique, full-service company which also consists of continents. This major force in real estate is meeting mitment to urban-infill, Greenfield, and brownfield knowledge and experience in Asset Services, Brokerage a lending department as well as a bar and restaurant the local and global needs of tenants, owners, investors development, we help clients achieve their project Services, Corporate Services Investment Sales, Facilities brokerage division. Call us today to schedule your and developers worldwide. goals. GAI brings projects from ideas to reality. Learn confidential, no cost consultation! Management, Management Services and Retail Ser- more at www.gaiconsultants.com. vices. The CBRE Pittsburgh, Erie and State College offices are committed to providing clients with quality support Maintenance/ services and market intelligence that encompass accounting, research, marketing and administration, as Service Contractor well as access to cutting-edge technology.

Mackin Engineering Company RIDC Park West 117 Industry Drive Pittsburgh, PA 15275 T: 412-788-0472 Trane www.mackinengineering.com 400 Business Center Drive Colliers International | Pittsburgh Robert W. Genter, RLA, ALSA Pittsburgh, PA 15205 Two Gateway Center Director- Land Development Services T: 412-747-3000 603 Stanwix Street, Suite 125 [email protected] www.Trane.com Pittsburgh, PA 15222 | United States T: 412-321-4200 Serving our clients since 1960, Mackin Engineering Tim White, Sales Manager Complex Solutions [email protected] F: 412-321-4400 Company continues to be a leader in the civil engineer- www.colliers.com/markets/pittsburgh ing field. We offer a wide range of professional consult- Trane, a wholly owned subsidiary of Ingersoll Rand ing services for both public and private sector clients (NYSE: IR), is a world leader in creating and sustaining Colliers International | Pittsburgh offers flexible, from across the Commonwealth. Mackin places an em- safe, comfortable and efficient environments in com- customized commercial real estate solutions to meet phasis on our staffs’ ongoing professional development mercial, residential and industrial markets. Trane offers and exceed client goals, including brokerage, consult- to best serve our clients. Our multi-disciplinary staff a broad range of energy-efficient heating, ventilation ing, corporate and investment services, facility and includes dedicated professionals in the fields of traffic, and air conditioning solutions services, systems and asset management, valuation services, marketing and civil, highway and structural engineering; landscape solutions, including aftermarket service and parts; market research to individuals, businesses, investors, architecture; municipal planning; land surveying; and advanced building controls; and building solutions that property owners, tenants and developers. Our expert construction inspection/management; graphic design; allow energy-efficient systems to pay for themselves professionals are dedicated to the highest level of and IT services. through energy savings. Over nearly 100 years, Trane’s client service, professionalism and integrity. Colliers built their reputation for reliability, high quality, prod- International is the third-largest commercial real uct innovation, and a powerful distribution network. estate services company in the world, with over 12,300 Visit www.trane.com. professionals operating out of more than 520 offices www.developingpittsburgh.com 75 in 62 countries. At the Closing

By Lynn DeLorenzo few years. The Pittsburgh of today provide momentum and drive the is now a vibrant downtown under- economy: Advanced manufactur- he past few going yet another transformation. ing; financial & business services; years have PNC has begun construction on healthcare & life sciences and in- been an excit- a new $400 million headquarters formation & communications tech- ing and re- building to be comprised of 33 sto- nology. Last, energy is at the fore- warding time ries and 800,000 square feet. The front with natural gas abundant in for the mem- Tower at PNC Plaza will become the region and surrounding market bers of NAIOP Pittsburgh. Many the world’s most environmentally areas. The Marcellus Shale is the T friendly sky rise. And a couple of largest unconventional natural gas of our members have contributed much effort that resulted in the renew multitenant buildings are in reserve in the world and Pittsburgh surgence of the regional real estate the discussions stages. is the largest major metro atop this market. To celebrate those efforts vast reserve. and provide a regular voice for Many people are also not aware our industry, NAIOP has launched of the number of Fortune 500 This year, Site Selection magazine a magazine that we think will set companies that are located in the ranked Pittsburgh as the No. 1 a standard for information in the greater Pittsburgh market or of the Metro Area in the Northeast US; commercial real estate business. many global, regional headquarters London-based Economist Intel- and operation centers also based ligence Unit listed Pittsburgh as DEVELOPINGPittsburgh is not so here. In the last five years, Ameri- the “most livable city” in the US; much about the past, the steel can Eagle, Dick’s Sporting Goods and National Geographic Traveler industry and other hard times this and Consol Energy have built new named Pittsburgh among the 20 region has been subjected to but headquarters employing thousands “Best of the World” places to visit more about how the past reflects of people and helping to retain our in 2012. For these reasons and and influences our future. Al- younger talent. all of the above, we thought it though a cliché, it is truly hard important to tell you the story of to build for the future without an Older buildings have been retrofit- Pittsburgh today in our first NAIOP understanding of the past. At a ted into hundreds of new apart- Pittsburgh publication – DEVEL- time when many publications are ments and condos to meet the de- OPINGPittsburgh. We think you’ll going digital, we thought it impor- mands of a growing population and enjoy it and hope you will find it tant to produce a hard copy format resurgence of urban living. And useful to your business. of DEVELOPINGPittsburgh. To keep interfacing the offices and apart- current with the digital age, we are ments are universities and students Lynn DeLorenzo is the NAIOP Pitts- also planning to publish the maga- further enhancing the downtown burgh Chapter 2012 president. She zine on-line and are providing central business district. is also Senior Vice President/Devel- an electronic newsletter update opment for PWC Property Solutions quarterly in order to be politically It is hard to talk about Pittsburgh LLC. correct! without talking about its sports teams. Through the hard work While the last few years have and dedication of many corporate presented great challenges to the and civic leaders, PNC Park, Heinz commercial real estate industry, Field and the Consol Energy hockey Pittsburgh has fared better than arena have all been woven into the many other areas of the country. fabric of the city making all fa- It may come as a surprise to many cilities accessible to the workforce that Pittsburgh was never “over- and transit options. built”. We all know that commercial real estate is cyclical, and that Several key factors have lead to the we tend to overbuild from cycle region’s positive transition. First, to cycle, but this was not the case population growth and the ability here. The city itself is comprised of to retain young talent have fueled many older architectural structures company expansions. Second is that have endured through the economic diversity. Over the past decades with an occasional new couple of decades, business lead- building added to the skyline every ers focused on several key industry sectors that have continued to

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