Call it Riviera on the Mon.
Burns & Scalo Equities has reached a deal with the Pittsburgh Urban Redevelopment Authority to build a six-story, 155,932-square-foot office building at the Pittsburgh Technology Center in Oakland.
The developer intends to acquire the Monongahela riverfront parcel totaling nearly two acres from the URA for $539,055, the appraised value.
URA board members are set to vote Thursday on whether to authorize the sale of the parcel.
Burns & Scalo Equities plans to erect the office building, dubbed the Riviera, without having a signed tenant. The parcel on which the building is planned is only one of a few left at the 48-acre former industrial site, which has become one of the region’s research and development hubs.
The development will be the first in Oakland for Burns & Scalo, one of the region’s top real estate firms with most of its holdings concentrated in the suburbs.
James Scalo, president and CEO, joked that going into Oakland “is like going into another state.” In reality, the Green Tree firm sees the neighborhood as one of the primary growth centers in the region, particularly given the proximity of the major universities.
“We feel this is where you’re going to see rapid growth. The market is telling us to come here. The reason is the corporations want to be closer to the universities. There’s a talent war going on,” he said.
The building will be loaded with amenities, including a fitness center and cafe in the lobby. There also will be an outdoor plaza with grills, fire pits, and seating. The site will overlook the marina at SouthSide Works on the opposite side of the river.
More and more, employers are using office buildings as tools to attract and retain workers, Mr. Scalo said. The Riviera is being designed with that purpose in mind, he noted.
The developer also is planning a “solar tree,” with solar panels serving as leaves, to help supply electricity to the building.
“We think it’s the next great thing for us. We’re excited about it,” Mr. Scalo said of the project.
Under the agreement with the URA, Burns & Scalo must close on the purchase of the property within six months. The company also plans to buy up to 200 monthly parking passes for tenants and visitors to the new building.
With approval by the URA, Mr. Scalo hopes to get started on the project in April and have it completed by summer 2019. While his firm is undertaking the project without a tenant, he doesn’t anticipate having trouble finding one.
Even without any real marketing, there has been early interest, he said.
“We believe this is where you’re going to see continued growth in the region, not only in general office but in education and medical,” he added.
Also Thursday, the URA board will vote on whether to buy the vacant Homewood Coliseum from Antar Corp. for $410,000. The URA also would pay $5,000 to Antar for a 12-month option period to determine whether the acquisition makes sense.
If the URA decides to go ahead with the purchase, much of the $410,000 would go into an escrow account to pay to repair and stabilize the roof. Any money left over would go to Antar.
URA board chairman Kevin Acklin, Mayor Bill Peduto’s chief of staff, said the goal is to “preserve a key development opportunity in the middle of Homewood and invest in the building, which presently serves as a community asset and meeting space.”
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: December 14, 2017, 11:30 a.m.
Updated: December 14, 2017, 12:08 p.m.