PRESS KIT 2020
1 PROPERTY NARRATIVE
BY INVESTING IN PITTSBURGH, WE’RE INVESTING IN THE FUTURE.
SouthSide Works is a mixed-use devel- opment located in Pittsburgh’s Southside neighborhood. Located on the site of the for- mer J&L Steel Works, the property opened in 2004 and was unlike anything the Pittsburgh market had seen. With coveted national re- tailers and restaurants as the property’s in- augural lessees and new residential oppor- tunities, the 34-acre retail and entertainment complex became a prized destination for lo- cals and visitors alike. While some key ten- ants remain and thrive, the property fell into financial distress over time, with many store- fronts remaining vacant, as the retail market shifted and competitors entered the market.
With some of the best entertainment, food & drink that Pittsburgh has to offer, as well as it’s legendary nightlife, the South Side continues to bustle and thrive. As the neighborhood and city move forward, SouthSide Works is poised for a new beginning. Pittsburgh’s tech boom, and everything that followed, never quite reached its potential across the river without the right place to land… until now.
ENTER SOMERA ROAD.
A visionary investment firm with a passion for Pittsburgh acquired the loans for SouthSide Works in October 2019 and announced official majority ownership of the property in March 2020.
2 PROPERTY NARRATIVE
Somera Road is a New York-based commercial real $1.5 billion in real estate totaling approximately 16 estate investment and development firm that invests million square feet across 49 unique markets. The in troubled, value-add properties often overlooked company’s current portfolio of work includes the by larger institutional investors. Known for their en- Nashville, Memphis, Kansas City, Minneapolis, Las trepreneurial and disciplined approaches, Somera Vegas, Pittsburgh, and Indianapolis markets, among Road engages in strategic asset repositioning and many others. The firm owns office buildings, retail redevelopment, targeted capital improvement plans, projects, multifamily rental apartments, industrial and best-in-class, and hands-on asset management. properties, and hotels. Since its inception, Somera Road has acquired over
SOMERA ROAD BRINGS THE CORE VALUES OF THEIR BUSINESS TO SOUTHSIDE WORKS IN THE FORM OF ENERGY, SKILL, VISION, AND EXPERIENCE. A strong mix-used approach is at the core of the leasing initiatives for the property with the goal to create a healthy ecosystem Somera Road is paving the path toward where all use cases are complimentary and the newest evolution of the SouthSide operate in tandem. SouthSide Works re- mains attractive to retail and office tenants, Works property, providing a truly and will be repositioned with a more expe- unique live-work-play experience that riential, amenities and entertainment-driv- en mix. Somera Road has engaged CBRE’s integrates the best of Pittsburgh with property management team and commer- new thinking and creative innovation. cial, retail, and residential leasing teams to assist with new leasing initiatives.
SouthSide Works currently houses approx- imately 280,000 square feet of retail space and approximately 180,000 square feet of office space and 83 multi-family residential units. The company is currently improving common areas and restrooms in the office space and upgrading residential units with new stainless appliances, new flooring, and an improved lobby.
New leases for community-focused and amenities-based tenants are currently being added. The new tenant mix will include offerings where the community in and around South Side Works can find daily necessities and conveniences, in addition to new food and beverage & retail options.
3 3 PROPERTY NARRATIVE
The group has also tapped Strada Design to lead the de- expand their current footprint. Tenants will enjoy imme- sign of the capital improvement plan, dedicating over $37 diate access to plentiful food & beverage, fitness, and af- million to property updates. The updates will include the ter-work entertainment options. reimagining of SouthSide Works main town square and thoroughfares, expanded greenspace options, wayfinding, With sweeping views and top-of-the line amenities, Somera adding public art and dog and children play areas, and con- Road’s vision for Box Office adds an estimated five hundred necting the complex more effectively to the riverfront and people to the daily traffic on the property, offering an added trails. The Urban Redevelopment Authority of Pittsburgh incentive for its new retail tenant mix. has also approved the assignment of development agree- ments of riverfront parcels to Somera Road, which the Somera Road is also investing in the development of Pitts- company plans to develop in various functions that include burgh’s first Container Park concept. As seen in other pro- waterfront multi-family residential and office space con- gressive markets like San Diego, CA and Nashville, TN, the cepts as well as community parks and greenspace. container park concept focuses on an indoor-outdoor ex- perience and creative use of space for social activation. The In addition to improving the current condition of the prop- Container Park at SouthSide Works will also serve as an erty, Somera Road is investing in meaningful development important vehicle to connect to the riverfront and trails to that will positively impact the immediate neighborhood and the main thoroughfares of the property. The Container Park the city. The group is converting the SouthSide Works Cin- concept transforms the development into the City’s first ema to an innovative and creative office space, aptly titled true riverfront lifestyle center by drawing river and trail Box Office. The plans convert the theater space into 77,000 users up through property with an outdoors-friendly focus square feet of class A modern steel and glass, which will of- for active lifestyle users, like cyclists, runners, and dog walk- fer prime office space geared toward forward-thinking tech ers. Additional greenspace concepts for the riverfront parks and creative tenants looking to find a home in Pittsburgh or also include a large lawn area and dog park.
4 4 PROPERTY NARRATIVE
The waterfront multi-family residential and office The group plans to add approximately 230 water- offerings at SouthSide Works are another key piece front multi-family units and approximately 200,000 of development of the riverfront parcels. In addition square feet waterfront office space. Plans to develop to maintaining and improving the current residen- this space are still in process and will be announced tial offerings at SouthSide Works, Somera Road is later this year. planning to develop a true riverfront luxury resi- dence and office space, complete with trail access, city views, and surrounding greenspace.
“Somera Road is taking every aspect of what makes the city so special and bringing it to life. By creating access, supporting innovation, and creatively activating every aspect of SouthSide Works, we’re creating the city lifestyle experience that Pittsburgh deserves.” - Ian Ross, Principal and Founder, Somera Road
5 5 INTRODUCING SOMERA ROAD
Somera Road Inc. is a New York-based Somera Road has a focus on identifying commercial real estate investment and de- basis-reset opportunities with an asymmet- velopment firm focused on value-add and ric risk profile and highly achievable val- opportunistic transactions across all as- ue add business plan. Since its inception, set classes and geographies. Somera Road Somera Road has acquired over $1.5 billion targets off-market acquisitions previously in real estate totaling approximately 16 mil- impaired by some form of distress; such lion square feet across 49 unique markets. as loan defaults, partnership disputes, and bankruptcy. These opportunities are often Somera Road was named one of Inc. overlooked by larger institutional investors. magazine’s Best Places to Work in 2019, the annual ranking in the fast-growing pri- Somera Road takes an entrepreneurial and vate company sector methodical approach in identifying off-mar- ket real estate and development opportuni- ties that generate above market returns for its investors. With a disciplined and aggres- sive approach, Somera Road drives value through strategic asset repositioning, tar- geted capital improvement plans, and best- in-class, hands-on asset management.
6 6 SOMERA ROAD
A MODERN VISION OF URBAN AMERICA
Since inception, Somera Road has acquired:
$1.5 billion across 67 6 property 49 unique of real estate transactions types markets.
Somera Road Inc. is a New York-based commercial real estate investment and development firm focused on dis- tressed and opportunistic debt and equity transactions across all asset classes and geographies. Somera Road targets off-market opportunities in secondary and tertiary markets that are overlooked by institutional investors. Somera Road invests in all capital structures, including NPL’s, B Notes, Mezzanine Debt, CMBS, Preferred Equity, and Equity. Its principals have significant experience acquiring assets in various forms of distress, such as partner- ship disputes, litigation, and bankruptcy.
Somera Road was named one of Inc. Magazine’s Best Places to Work in 2019
7 7 CBREMANAGEMENT IN A SNAPSHOT AND LEASING
ABOUT CBRE CBRE Group, Inc. (NYSE:CBRE) is the world’s largest commercial real estate services and investment firm, with #1 global market position in leasing, property sales, property management, occupier outsourcing and valuation. Additionally, our development business is the largest in the U.S. OUR RISE VALUES Respect: We act with consideration for others’ ideas and share information openly to inspire trust and encourage collaboration. OUR WORLD-CLASS Integrity: No one individual, no one deal, no one client, is ASPIRATION bigger than our commitment to our company and what we To be recognized among stand for. the world’s best Service: We approach our clients’ challenges with enthusiasm large companies. and diligence, building long-term relationships by connecting the right people, capital and opportunities. Excellence: We focus relentlessly on creating winning outcomes for our clients, employees and shareholders.
THE BUSINESS ROUNDTABLE COMMITMENT As a member of the Business Roundtable (BRT), CBRE is signatory to BRT’s commitment to key stakeholders.
Clients Employees Shareholders Business Communities Delivering value Investing in our Generating Partners Supporting the Dealing fairly and to our customers. employees. long-term value communities in ethically with our for shareholders. which we work. suppliers.
CBRE AT A GLANCE $21.3B 90,000+ 100+ 480+ 2018 Revenue Employees Countries Offices 113 Years #146 90+ #1 Continuous 2019 Fortune 500 of the Fortune 100 Fortune Most Admired Operations in the U.S. Ranking are Clients Real Estate Company
OUR BUSINESS SEGMENTS
GLOBAL WORKPLACE REAL ESTATE ADVISORY SERVICES SOLUTIONS INVESTMENTS • Advisory & Transaction Services • Advisory & Transaction Services • Investment Management • Capital Markets (dedicated GWS accounts) (Global Investors) • Local Project Management • Facilities Management • Development Services • Property Management • Management Consulting (Trammell Crow Company) • Valuations • Project Management • Flexible Space Solutions (Hana) (dedicated GWS accounts) 2018 2018 2018 Revenue $8,440M Revenue $12,365M Revenue $535M Adjusted EBITDA $1,303M Adjusted EBITDA $346M Adjusted EBITDA $256M
8 MANAGEMENT AND LEASING
2018 BUSINESS STATISTICS TOTAL TRANSACTION VALUE
SALES LEASING 22,300 $229.6B 65,450 $151.4B $381B Transactions Value Transactions Value
MANAGEMENT PORTFOLIO PROPERTY FACILITIES MANAGEMENT MANAGEMENT 2.7B 3.4B 6.1B SF Square Feet Square Feet
Valuation & Project Investment Loan Loan Development Advisory Management Assets Under Originations Servicing in Process Assignments Contract Value Management $53.4B $201.2B 513,800 $92.3B $106.7B* $10.6B*
* as of June 30, 2019
SUSTAINABILITY • Named to the Dow Jones Sustainability World Index • Named to the Dow Jones Sustainability North America Index (six years in a row) • Listed at #15 in Corporate Responsibility Magazine’s 2019 100 Best Corporate Citizens • Named to Barron’s 100 Most Sustainable Companies • 2019 Energy Star Sustained Excellence Award; “Partner of the Year” for 12 consecutive years 2018 Corporate Responsibility Report
CORPORATE RESPONSIBILITY Governance Communities and Giving Highest ISS Governance Quality Score Named to the Companies that Care Honor Roll for 12 straight years Environmental Sustainability On pace to exceed ten-year greenhouse gas Workplace Safety & Well-Being reduction pledges made in 2016 and 2017 Cut Total Recordable Incident Rate by 24% from 2017 to 2018 People and Culture Named to the 2018 and 2019 America’s Ethics and Compliance Best Employers for Diversity list by Forbes One of the World’s Most Ethical Companies by Ethisphere Institute for six Procurement consecutive years CBRE mySUPPLIER won the distinguished 2018 CIPS Supply Management Award for Most Innovative Use of Technology 9 9 INTRODUCING THE NEW SOUTHSIDE WORKS
LIVE. WORK. PLAY RE-IMAGINED
An urban oasis in Pittsburgh’s bustling South Side neighborhood housing the best in fashion, fitness, food & drink, and the companies shaping our tomorrow. A place where you can get the works or go to work, hit the trail, and hang in the ultimate gathering place for Pittsburghers.
10 10 POSITIONING
DOWNTOWN PITTSBURGH PITTSBURGH AIRPORT
19 minutes (3.4 mi) 2 Hours 26 minutes (23.9 mi) via Great Allegheny Passage via Montour Trail - Airport Connector
15 minutes (2.7 mi) 30 minutes (20.2 mi) via Fifth Ave. via I-376 W
53 minutes (2.6 mi) via E. Carson St.
NORTH SHORE OAKLAND SHADYSIDE
26 minutes (4.9 mi) 7 minutes (0.7 mi) 24 minutes (3.9 mi) via Three Rivers Heritage Trail via Great Allegheny Passage via Ellsworth Ave.
16 minutes (5.8 mi) 5 minutes (0.7 mi) 18 minutes (3.2 mi) via I-376 W via Hot Metal Bridge via Ellsworth Ave.
1 hour 12 minutes (3.5 mi) 15 minutes (0.7 mi) 1 hour 7 minutes (3.1 mi) via E. Carson St. via Great Allegheny Passage via Ellsworth Ave.
LAWRENCEVILLE EAST LIBERTY
31 minutes (4.9 mi) 31 minutes (5 mi) via Boundary St. via Ellsworth Ave.
17 minutes (4.2 mi) 22 minutes (5 mi) via Herron Ave. via Centre Ave. and Baum Blvd.
1 hour 27 minutes (4.2 mi) 1 hour 26 minutes (4 mi) via Bates St. via Ellsworth Ave.
11 11 CURRENT TENANTS
PENN CENTER REALTY
12 12 THE UPDATES WHAT’S IN THE WORKS
Somera Road is announcing over ten new leases will be signed in the coming months, covering over 30,000 FT with 58,000 SQ FT of tenant renewals.
Two new 10 YEAR leases have been signed. Somera Road is proud to welcome TMS International and the Alzheimer’s Association.
LEASING
34,000 SQ FT of office space and 105,000 SQ FT of retail space are waiting to be filled by the next generation of tastemakers and innovators.
Despite the challenges and some vacant storefronts, the tenant mix at SouthSide Works remained DIVERSE and EXCITING- from office TENANTS like Amazon, General
Dynamics, and American Eagle to a mix of local Current property apartments remain and national retail tenants like Shop 412, The 94% LEASED because the Cheesecake Factory, and REI. South Side- and SouthSide Works- is a great place to live.
13 THE UPDATES THE PROPERTY PITTSBURGH DESERVES
Somera Road has currently dedicated $37 MILLION to property updates and enhancements on all fronts.
PROPERTY FOR THE RESIDENTS Somera Road is IMPROVING and UPDATING current residential units, bringing in sophisticated and user- friendly management team with partners from CBRE.
FOR THE COMMUNITY The town square will transform as the ultimate place to gather and GREENSPACES are being developed to house PUBLIC ART and new ways to ENJOY the city and the neighborhood- from the city’s first Container Park to a dog park and playground.
14 THE PLAN
INDUSTRY & INNOVATION CROSS THE MONONGAHELA RIVER
PROPERTY UPDATES & CAPITAL IMPROVEMENTS
TOWN SQUARE UPDATES BY STRADA DESIGN
15 15 THE PLAN
INDUSTRY & INNOVATION CROSS THE MONONGAHELA RIVER
DEVELOPMENT
BOX OFFICE
Innovative Office Space
OPTION 1A THE CANOPY CONTAINER PARK
Engaging Entertainment
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SOUTHSIDE WORKS CONTAINER PARK | FEBRUARY 28, 2020 | 13 THE PLAN
INDUSTRY & INNOVATION CROSS THE MONONGAHELA RIVER
WATERFRONT RESIDENTIAL & OFFICE PROJECT
Live and Work
PARKS AND GREENSPACE
Get Outside
17 THE PLAN
INDUSTRY & INNOVATION CROSS THE MONONGAHELA RIVER
ACTIVATION
POP-UP SHOPS & EXPERIENCES
SPECIAL EVENTS & PARTNERSHIPS
PUBLIC ART
18 THE PROJECTS
BOX OFFICE FLIP THE SCRIPT
Because innovative work requires innovative space. Somera Road is converting the SouthSide Works Cinema into an innovative office space, aptly named BOX OFFICE.
77,000 sq ft
of office space
meeting, event and common space leasing
for spring 2021
19 THE PROJECTS
BOX OFFICE
FLIP THE SCRIPT
The plans convert the theater space to 77,000 square feet of class A steel and glass and will offer prime office space geared toward tech and cre- atives looking to find a home in Pittsburgh or expand their current footprint.
Somera Road’s vision for the development adds an estimat- ed five-hundred people to the daily traffic on the property, offering an added incentive for its new retail tenant mix.
20 THE PROJECTS
CONTAINER PARK JOIN THE PARTY
21 THE PROJECTS
CONTAINER PARK JOIN THE PARTY
Pittsburgh’s South Side has legendary nightlife and a diverse mix of food & beverage options up and down Carson Street and throughout the neighborhood. Somera Road is joining the party with a park-based concept for food, beverage, and entertainment that draws the outside in, for a REAL. GOOD. TIME.
22 THE PROJECTS
WATERFRONT RESIDENTIAL & OFFICE PROJECT NEXT LEVEL CITY LIVING
230 waterfront
multi-family units
200,000 square feet Pittsburgh’s three rivers and picturesque riverfronts are coming into focus, with unique plans for utilizing and enjoying the city’s waterfront office waterways underway in nearly every riverfront neighborhood. space Somera Road is planning to develop a multi-family riverfront residential and office project that not only opens up the Monongahela Riverfront to future property residents and professionals, but to the community at large. By focusing on greenspace and opening up a beautiful downriver city view, Somera Road takes city living to the next level.
23 THE PROJECTS
WATERFRONT RESIDENTIAL & OFFICE PROJECT
NEXT LEVEL CITY LIVING
2BR 2BR
1BR 1BR
AMENITY TERRACE 1BR 1BR 1BR 1BR 1BR 1BR BELOW
1BR 1BR 1BR 1BR 1BR 2BR 1BR 1BR 1+D 1+D 1BR 2BR 1+D 1+D 1BR
TRASH
1+D 1BR 1BR SS S 1+D 1+D 1BR S S S 1+D 1+D 1BR 1BR 1BR 2BR 2BR 2BR
SOMERA ROAD - SOUTH SIDE WORKS 0' 4'2' 8' TYPICAL LEVEL 01/10/2020 A5
24 THE PROJECTS
PARKS & GREENSPACE
PRECEDENT BENCHMARKING GET OUTSIDE THE PLAYGROUND: RIVER, FOREST, AND MOUNTAIN PRECEDENT BENCHMARKING WESTMORELAND PARK - PORTLAND, OR MAGGIE DALEY PARK - CHICAGO, IL THE DOG MAGGIE PARK DALEY PARK - CHICAGO, IL SOUTHSIDE WORKS FETCH PARK - ATLANTA, GA BAR K - KANSAS CITY, MO MUTTS CANINE CANTINA - DALLAS, TX ZONING DIAGRAM Westmoreland Park - Portland, OR Fetch Park - Atlanta, GA
R I V THE E R PLAYGROUND NEWTOWN DREAM DOG PARK - JOHNS CREEK, MA YARD BAR - AUSTIN, TX F MAGGIE DALEY PARK - CHICAGO, IL PULSAKI PARK - NORTHAMPTON, MA ASHBURNHAM RCOMMUNITY SCHOOL - LONDON, UK O N T
THE DOG PARK TOWN SOUTHSIDE WORKS TUNNEL PARK | FEBRUARY 24, 2020 | 17 SQUARE
SOUTHSIDE WORKS TUNNEL PARK | FEBRUARY 24, 2020 | 10 THE LAWN THE CONTAINER PRECEDENT BENCHMARKING PARK CONTAINERS AS IDENTITY SPARK:YORK - YORK, UK GOVERNORS ISLAND - MANHATTAN, NYC THE INNOVATION AND DESIGN BUILDING - BOSTON, MA
Spark York - York, UK SOUTHSIDE WORKS TUNNEL PARK | FEBRUARY 24, 2020 | 2
Somera Road’s plans include parks and
greenspace for tenants and the public to enjoy. SLOW FOOD NATION '08 - SAN FRANCISCO, CA QUARTYARD III - SAN DIAGO, CA SIMON'S MARKETPLACE - HARTFORD, CT We encourage you to get outside to take advantage of unique user-friendly outdoor experiences that can only be found at SouthSide Works.
SOUTHSIDE WORKS TUNNEL PARK | FEBRUARY 24, 2020 | 18
25 THE ACTIVATION EXPERIENCE THE WORKS
POP-UPS SHOPS & EXPERIENCES
- Showcases for local retail and experiences in food & beverage - Showcase for national retail and experiences in food & beverage - Showcases for local artists and innovators - Education and resource-based programs - Holiday activations
SPECIAL EVENTS & PARTNERSHIPS
- Property-produced events, markets, programs, and festivals - Trail and river activations/ fitness activations - Venue host to community-based organizations and nonprofits - Venue host to special local and national concepts - Holiday activations
Somera Road knows that
PUBLIC ART the heart of the SouthSide Works is the community it - Exterior murals serves. We don’t just build it - Art as wayfinding and improve it- we - Park activations carefully design and curate - Interactive installations creative ways to interact - Holiday activations with it.
26 CONTACT
SOMERA ROAD
JONATHON REESER Vice President- Acquisitions, Somera Road, Inc. p: Pittsburgh - 412-223-5796 New York - 646-859-2978 e: [email protected]
PRESS CONTACTS
EILEEN FRENCH JORDAN JACK BELLAS Partner, Revive Marketing Group Partner, Revive Marketing Group p: 412-874-0272 p: 412-720-4205 e: [email protected] e: [email protected]
CBRE
JEFFREY ACKERMAN CBRE, Managing Director Pittsburgh Market Leader 600 Grant Street, Suite 4800 | Pittsburgh, PA 15219 p: 412-394-9800 e: [email protected]
27 SOUTHSIDEWORKS.COM
@SOUTHSIDEWORKS
/SOUTHSIDEWORKS
@SOUTHSIDEWORKS
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