A Columbus, Ohio, developer is re-evaluating plans for a $65 million apartment complex on the North Shore, in part because of concerns about the dramatic increase in the number of units that have been built in or near Downtown over much of the past decade.
Continental Real Estate Companies is considering “all options” for the parcel adjacent to the Hyatt Place Hotel and PNC Park, said Barry Ford, president of development in Pittsburgh.
While Continental is not ruling out housing, other options it will explore include offices, a hotel, entertainment, and restaurants.
“We’re back to looking at everything for that lot, trying to figure out what works best,” Mr. Ford said.
With construction of a seven-story office building on the Allegheny riverfront set to start in August, Continental now has more time to ponder other uses for the apartment parcel less than a block away.
Under an extension granted by the Pittsburgh Stadium Authority in November, Continental, which was hired by the Steelers and the Pirates in 2002 to develop the land between Heinz Field and PNC Park, has until May 31, 2018, to buy that tract, known as lot 4.
Mr. Ford said the surge in apartment building in recent years is “one of 10 reasons” Continental is re-evaluating its plans for the site, where it planned to build 250 residential units.
“The market has changed the last couple of years. We’re evaluating the right use, the right mix,” he said.
In its 2017 State of Downtown Pittsburgh report issued last week, the Pittsburgh Downtown Partnership noted that nearly 2,000 apartment units have been added to the Golden Triangle, the North and South shores, the Strip District, the lower Hill District, and the Bluff/Uptown since 2010, with another 4,222 in the pipeline.
There are signs that all that building might be having a detrimental effect. In its report, the partnership found that apartment occupancy in and near Downtown dropped to 90.3 percent in the fourth quarter last year after staying at a flat 92 percent through the first three quarters.
And after peaking at $1.86 in 2015, the rental rate per square foot fell to $1.83 last year.
Continental hopes to submit a revised plan for lot 4, where the apartments were to be built, to the stadium authority this fall, Mr. Ford said.
Mary Conturo, the authority’s executive director, could not be reached for comment.
“We’re taking our time. With [the office building] in process, it’s given us time to re-evaluate lot 4 and, based on current market conditions, come up with the right plan for the lot,” he said.
“We’re looking at multiple options that will have a long-term positive impact that will play off of PNC Park.”
The developer has until Sept. 1 to take title to the land for the office building, which will be the headquarters for SAP, a German software firm. It hopes to start construction of that building in mid to late August, with completion set for late 2018 or early 2019.
Once the office building is finished, lot 4 will be the last major parcel on the North Shore Continental will be responsible for developing.
In the past 15 years, the firm has produced three office complexes, including one housing the Post-Gazette, a concert venue, and a variety of restaurants and nightspots between the ballpark and the stadium.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: May 3, 2017, 4:00 a.m.
