Even though a June auction failed to produce a buyer, a New York private equity real estate fund hasn’t given up its quest to sell the former Lawyers Building, Downtown.
Martin Perry, senior managing director of the Newmark Knight Frank real estate firm, said the 25-story structure, now known as the Pittsburgher, is “still technically available for sale” and that King Penguin Opportunity Fund is entertaining offers for it.
King Penguin paid $4.25 million to acquire the building at the corner of Forbes Avenue and Cherry Way near the old Kaufmann’s/Macy’s department store in 2015.
It then spent more than $9 million to make improvements, including facade and roof restorations, signage, new air conditioning, new elevators, new conference and fitness centers, an upgraded lobby and renovations to common areas and restrooms.
In addition, it changed the name back to the Pittsburgher, as the building was called when it opened as a 400-room hotel in 1928. The structure continued to serve as a hotel for the next 37 years, hosting the likes of Franklin Delano Roosevelt, boxer Jack Dempsey, golfer Arnold Palmer, TV show host Ed Sullivan and actor Lon Chaney.
Despite making improvements, King Penguin did not get the bid it wanted for the property during an online auction conducted by the Ten-X Commercial website in June. It had decided to do an auction because of the COVID-19 pandemic and the restrictions surrounding it.
King Penguin is still hoping to sell the property, which has an occupancy rate of about 60%, by the end of the year, Mr. Perry said in a recent interview. “But we’re running out of time. It might trickle into next year,” he added.
Mr. Perry said the pandemic is continuing to create uncertainty in the real estate market. Although there appears to be a lot of interest on the part of potential buyers, that uncertainty is delaying decision-making, he said.
The Pittsburgher is one of three buildings that King Penguin bought Downtown in recent years. Another, the 26-story Centre City Tower on Smithfield Street, has been for sale for more than a year.
King Penguin has sold the Allegheny Building, which is located at 429 Forbes across the street from the Pittsburgher, to Philadelphia-based PMC Property Group for $10.1 million. PMC plans to convert the office building into as many as 180 apartments. King Penguin paid $7 million for the property five years ago.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: October 6, 2020, 10:00 a.m.
Updated: October 6, 2020, 12:00 p.m.