Two local developers are looking to combine the old and the new to create a major residential destination in the heart of the Downtown cultural district.
Trek Development Group and Q Development are teaming up on “Eighth and Penn,” a 135-unit apartment complex to be built at Penn Avenue and Eighth Street.
The $35 million project is one of two new residential developments in the works Downtown. During a city planning commission briefing Tuesday, BET Investments, a Horsham, Pa., developer, also unveiled a proposal to convert a vacant building on Third Avenue into 88 apartments.
In the cultural district, Trek and Q plan to use two vacant historic eight-story buildings they purchased last year for about $2.4 million, as well as a new 11-story addition, to house the apartments, all of which will be market rate.
Both existing buildings date to the late 19th century. The McNally Building at 711 Penn was built in 1896 and had been considered for residential use by its previous owner. The structure at 713 Penn dates to 1893 and for half a century was owned the proprietors of Mahla Office Furniture, which had a showroom on the first floor.
The addition and a smaller copper-clad building dubbed the “jewel box” will be built on lots owned by the Pittsburgh Cultural Trust that Trek and Q are in the process of acquiring.
Kevin McMahon, the trust’s president and CEO, said the organization “is very excited about the possibility” of the development and getting the corner of Penn and Eighth activated “but we have to see where it goes and how long it takes.”
The trust, he noted, had been hoping someone would step forward to redevelop the buildings that Trek and Q are converting. The trust itself has been assembling land, including the lots being acquired by Trek and Q, for decades for a major residential development.
A first attempt — the ambitious RiverParc project in 2006 — fell victim to the Great Recession, and the trust is now gearing up for a new start.
Construction of the Eighth and Penn apartments is expected to start in the first quarter of 2017 and take two years to complete. Rick Belloli, a principal with Q, said the units will be “moderately priced” market rate.
In his presentation, Kevin Wagstaff, a principal with the Perfido Weiskopf Wagstaff & Goettel architectural firm, said the developers have taken care to blend the new building, with its steel and glass facade, with the block and brick of the old.
As part of the development, Trek and Q also have hired artist Erwin Redl to create an LED light exhibit that will grace a passageway between the addition and the “jewel box” designed to connect Eighth Street and Katz Plaza on Seventh Street.
Mr. Wagstaff said an important part of the project is to draw people to Eighth, which is seen as a prime connector to the Allegheny River from the cultural district.
“One of the goals is to try to really make Eighth Street a pedestrian street again. Right now it’s kind of a no man’s land. There’s not much reason to go down there,” he said.
The development also includes plans for ground level retail, one level of underground parking and a rooftop garden terrace at the top of the “jewel box.”
“We have a unique client here who really wants to do something special. We understand the importance of this project,” Mr. Wagstaff said.
The proposed development won praise from planning commission member Paul Gitnik.
“Aesthetically and architecturally, this is one of the most interesting projects I’ve seen,” he said, noting it adds freshness while keeping part of the old.
Meanwhile, BET Investments plans to convert a vacant building at 319 Third into studio and one-bedroom apartments. While planning commission documents listed the development as student housing, Brad Brown, BET executive vice president, said the apartments would be market rate and open to anyone.
BET is in the process of acquiring the property, located behind the Wood Street Commons Building, from the E.V. Bishoff Co. The $7 million conversion is expected to start this fall, with completion slated for August 2017.
The principal in BET is Bruce E. Toll, co-founder of Toll Brothers Inc., the top builder of luxury homes in the United States. The Third Avenue project will be BET’s first in Pittsburgh.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: July 12, 2016, 7:45 p.m.