At one time, it was the epicenter of Downtown retail, the province of department stores, banks and restaurants. But now Smithfield Street between Fifth and Forbes avenues could be the bleakest block in the Golden Triangle.
Macy’s has gone dark, its windows lifeless. Across the street, the 441 Smithfield St. office building and its street-level retail are empty. A few steps away, the former Saks Fifth Avenue department store, vacant as well, awaits demolition. All while the holidays — which typically bring crowds Downtown — loom.
Although all the empty buildings hold the promise of redevelopment, it might take at least a year to realize the first fruits of that effort. Adding to the misery is a major street reconstruction project starting in the same block of Smithfield.
Until the new investment kicks in, it’s “going to be a painful time,” acknowledged Jeremy Waldrup, president and CEO of the Pittsburgh Downtown Partnership.
“I think it’s one of those times where we have to deal with the infrastructure enhancements and construction as best we can and know it’s all moving forward in the best direction,” he said.
With Light Up Night coming Nov. 20, the partnership and others are trying to make the best of a bad situation. The annual event draws some of the biggest crowds of the year Downtown, with many gathering outside Macy’s for the unveiling of the holiday windows.
The store was closed last month by the department store chain, but Mr. Waldrup said the partnership is teaming with Core Realty — the Philadelphia developer converting the 13-story building into apartments, a hotel and retail — and others to bring back the window displays.
Macy’s, he said, has agreed to provide items from some of the old displays. Organizers hope to mix in some new items as well.
“They will be spectacular,” Mr. Waldrup said. “There will be some things folks have seen before, but we’re also looking to provide some new experiences in those windows.”
Beyond that, there’s not much that can be done to provide short-term relief, he conceded. With Macy’s and its drawing power gone, it’s an anxious time for some merchants in the corridor.
“We’ve talked to all of them,” Mr. Waldrup said. “I think everybody’s concerned about the impact, but they also know there’s a ton of investment going on Downtown. We’re trying to find ways to work with them to promote their businesses.”
One who is seizing the opportunity presented by the Macy’s closing is S.W. Randall Toyes and Giftes on Smithfield.
For the first time, owner Jack Cohen plans to incorporate weekend visits by Santa Claus into the toy store’s holiday routine, starting with Light Up Night. For decades, visits with Santa were a tradition at Macy’s and before that at Kaufmann’s.
“We can’t go wrong. It doesn’t cost the customers anything and they want that,” Mr. Cohen said. “Now that [Macy’s is] gone, it’s just a natural for us.”
Although he is pleased that the Downtown Partnership will continue the Macy’s window displays, Mr. Cohen is not that concerned about the impact of the department store’s closing.
“To tell you the truth, I don’t think we competed on anything. We have our own customer base,” he said.
David Glickman, director of retail services for Newmark Grubb Knight Frank, said most of his retail clients still view the corridor favorably because of the anticipated redevelopment, which could top $325 million. Mr. Glickman is marketing three buildings for sale on Smithfield.
“Tenants tend to focus on what’s happening, not necessarily on how exactly things are at any given point of time,” he said.
Mr. Glickman said the Macy’s closing could open the door for even better and more destination-type retail at the location. Most people, he noted, have a Macy’s in or near their neighborhood.
“If you get a mix of stores, restaurants and entertainment, all of that combined will be a reason to come Downtown. Macy’s was not a reason to come Downtown,” he said.
Core took possession of the Macy’s building Oct. 1 and plans to spend $90 million to convert it into 311 apartments, a 155-room hotel and about 130,000 square feet of retail. Randy Mineo, Core executive vice president, said the first retail could be ready in a year.
Millcraft Investments and McKnight Realty Partners are constructing a 580-space parking garage and 30,000 square feet of retail at the former Saks site in a $35.7 million first phase, with apartments to follow. The first retail could be ready in 16 months.
At 441 Smithfield, Oxford Development Co. is proposing to build a $200 million, 29-story glass skyscraper when it secures an anchor tenant. The current building would be razed.
Given all that, Mr. Glickman sees the emptiness at Smithfield and Fifth as a sign of progress, not decay.
“Sometimes to make an exponential leap in progress, there is oftentimes a year or two of temporary — how should I say — less-than-ideal conditions,” he said.
Mark Belko: mbelko@post-gazette.com.
First Published: October 9, 2015, 4:00 a.m.
