One Oxford Centre, one of Downtown’s most prominent and distinctive skyscrapers, could be changing hands.
Oxford Development Co., the developer that erected the 45-story skyscraper at 301 Grant St. in the early 1980s during the city’s Second Renaissance, is considering a possible sale of the iconic property.
It has hired Pittsburgh-based HFF Inc., which has offices in One Oxford Centre, to explore a sale or a possible refinancing.
In a statement, Oxford, which is headquartered in the building, tied the decision to the strength of the Pittsburgh Class A office market, saying that demand for the acquisition of Downtown real estate is at an all-time high.
“National institutional buyers continue to be drawn to Pittsburgh’s [Central Business District] and its proven growth potential,” said Steve Guy, Oxford’s CEO and president. “The current strength of the CBD Class A office market and increased interest of institutional investors have led us to explore a sale of this extraordinary building.”
The aluminum and glass octagonal towers that make up One Oxford Centre opened in April 1983 during the height of the Second Renaissance. One Oxford was among several new office towers built during that time, among them the six-building PPG Place complex near Market Square and One Mellon Center, now known as BNY Mellon Center, on Grant Street.
Oxford purchased the two acres of land needed for the complex in 1978 from Allegheny County. The One Oxford Centre development was a joint venture between Oxford and the Edward J. DeBartolo Corp.
One Oxford Centre, designed by the HOK architectural firm, features about 900,000 square feet of Class A office space, 60,000 square feet of retail space, a five-level atrium that includes a food court, and the 73,000-square-foot Rivers Club. There is also an 860-space parking garage.
The building’s office space is about 80 percent occupied, according to the Newmark Grubb Knight Frank real estate firm. At one time, the complex was one of the prime upscale shopping destinations in Downtown, but now much of the building’s retail space is vacant.
“I think they’re looking at their options,” said Gerard McLaughlin, Newmark Grubb executive managing director. “One of the options is to refinance. The other is to sell. I imagine whatever gives them the greatest return on their investment, they’ll do.”
Although the vacancies could affect the value for the property, Mr. McLaughlin said it was “prudent” for Oxford to consider a possible sale, given the current real estate market.
Oxford is exploring a sale of One Oxford at the same time it is trying to find an anchor tenant for a $200 million, 29-story skyscraper it wants to build on Smithfield Street in Downtown.
The developer also has been expanding its reach in the city, with its 3 Crossings office and residential complex under construction in the Strip District and a new apartment building at SouthSide Works.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: August 18, 2015, 8:00 p.m.
Updated: August 19, 2015, 12:54 a.m.