Walnut Capital has completed a $25 million project to convert the venerable Pittsburgh Athletic Association clubhouse into office space. Now, it lacks just one thing: a tenant.
The Shadyside-based developer has finished the core and shell space in the six-story building on Fifth Avenue in Oakland across from the University of Pittsburgh Cathedral of Learning.
In all, about 130,000 square feet of office space is available in the refurbished clubhouse, which Walnut Capital purchased for $12.6 million in 2018 as part of the PAA’s bankruptcy reorganization.
While Walnut Capital has yet to secure a tenant, it is believed to be in talks with a big one: Apple, the iPhone maker whose Pittsburgh headquarters is now located in the Strip District.
The Post-Gazette reported in December 2019 that Apple was in discussions with Walnut Capital about taking up to 90,000 square feet in the building.
To date, no deal has been reached, and Todd Reidbord, Walnut Capital president, had no comment Monday when asked about the speculation involving Apple.
“We’re still working with a few key tenants, but we don’t have anything to announce yet,” he said.
Apple could not be reached for comment.
Walnut Capital picked up an additional 20,000 square feet in the 110-year-old clubhouse when the PAA itself decided against taking that space for its use.
As part of the deal to sell the building, the PAA was to keep about 20,000 square feet for a clubhouse, a new fitness center, two squash courts and possibly a lap pool.
But rather than doing so, it is now considering a merger with another organization, possibly the Pittsburgh Golf Club.
In an interview in January, Jim Sheehan, PAA president, said the association just didn’t have a high enough membership to stay financially viable at the clubhouse.
The last thing the group wanted to do was to end up in bankruptcy again, he said at the time.
Mr. Sheehan could not be reached for comment Monday.
In addition to converting the clubhouse to office space, Walnut Capital restored the historical finishes and lobby and added an outdoor dining terrace along Bigelow Boulevard.
The PAA isn’t the only building to which Apple has been linked.
There’s also speculation it’s interested in Liberty East, the $50 million mixed-use development in East Liberty that replaced the former Penn Plaza apartment complex, touching off a controversy when more than 200 residents were displaced.
The new building, with 252,000 square feet of office space, is expected to be ready in the first quarter of next year. Anchoring the retail end will be a 50,000-square-foot Whole Foods Market.
Lawrence Gumberg, president of LG Realty Advisors, the Liberty East developer, declined comment when asked about Apple.
“We are not commenting on any office tenant prospects at this time,” he said.
Another rumored spot for Apple is a six-story office building being proposed by Highwoods Properties, owner of the PPG Place complex, Downtown on Penn Avenue across from the Target store, also in East Liberty.
Andy Wisniewski, Highwoods vice president in Pittsburgh, could not be reached for comment.
In addition to rehabbing and repurposing the PAA clubhouse, Walnut Capital is building the Innovation Research Tower on Fifth Avenue in Oakland.
The 280,000-square-foot building will include extensive laboratory and research space, as well as 6,200 square feet of retail, a public square and parking. Walnut Capital is hoping to finish that work in June 2022.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: April 27, 2021, 9:05 a.m.