Frick Bldg. reportedly on block
Pittsburgh Business Times - by Suzanne Elliott
DOWNTOWN -- One of Downtown's landmark office towers, the Frick Building, is reportedly on the block again, real estate sources have told the Business Times.
The apparent decision to put the 21-story, 341,421-square-foot office property in play comes just one year after locally based Madison Realty Group Inc. bought the site for $27 million. The previous owner was Cornerstone Properties Inc., a New York real estate investment trust.
Officials of Madison Realty, which also owns the former Westinghouse Building, did not return several telephone calls.
One real estate professional suggested Madison, which once managed a number of properties owned by Long Island investor Richard Penzer, may be trying to free up capital for its pending purchase of CNG Tower.
Madison is in the process of acquiring the 32-floor, 622,838-square-foot office building. CNG Tower sold in 1995 for $82 million to the Yarmouth Group Inc., a New York pension advisory firm.
The tower's current owner is a partnership called YCP Pittsburgh LP II.
That deal had been expected to close this month but has been delayed. Exactly why that deal is stalled is not clear, but the building's largest tenant, Consolidated Natural Gas Co., is in the process of being purchased by Dominion Resources Inc., a Reston, Va.-based electric utility. CNG occupies 13 of the building's 32 floors, said Chet Wade, a CNG spokesman.
Real estate professionals said they are not surprised that the Frick Building may be back on the block, given the recent strength of the Downtown office market.
Recent deals include the $293 million sale last year of USX Tower, Downtown's largest office building. Also, The Hillman Co. said in April it was going to buy the PPG Place office complex.
"That, plus the interest by institutional investors in Pittsburgh buildings," said Jeremy Kronman, a broker with Oxford Realty Services, a Downtown commercial real estate company.
Office space in the Frick Building rents for $20.50 a square foot. The 97-year-old building is at more than 92 percent capacity, according to the Pittsburgh Business Times' spring Commercial Real Estate Leasing Guide. Tenants include law firms Meyer Darragh Buckler Bebenek & Eck, and Sable, Pusateri, Rosen, Gordon and Adams.
Jim Dawson, a partner with Grant Street Associates Inc., a Downtown commercial real estate brokerage, said he also was not surprised by the building's apparent availability.
"It has the Grant Street address, is across from the T and the courthouses," said Mr. Dawson. "The building has an excellent reputation."
Jon Harrigan, chairman of Pennsylvania Commercial Real Estate Inc., a Downtown real estate firm, agreed.
"It's a wonderful, old vintage building," Mr. Harrigan said. "And being on Grant Street is a tremendous help."
Madison's president and CEO, Dan Summers, is part of a group of potential investors put together by retired Penguins hockey star Mario Lemieux in his effort to purchase the bankrupt hockey franchise.
MS. ELLIOTT may be contacted at selliott@amcity.com.
Latest News |
Most Viewed Stories |
Most Emailed Stories |
