A former Oakland hotel will become a hub for nonstudent housing and a possible site for a long-desired grocery store under a redevelopment plan being pitched by the University of Pittsburgh.
Pitt announced plans Monday to convert the Quality Inn and Suites, which closed last year during the pandemic, into housing specifically geared for nonstudents.
In addition, the university, which owns the property at 3401 Boulevard of the Allies, pledged to work to bring to the site a grocery store, an amenity that has long been at the top of the list of priorities for residents.
At the same time, Oakland Planning and Development Corporation announced that it had sold its property at 233-237 Atwood Street to the university as part of a deal that “memorializes Pitt’s intention to develop a grocery store and non-student, owner-occupied housing” at the former Quality Inn site.
OPDC declined to disclose the price, and the Allegheny County real estate website had not been updated to reflect the sale. A Pitt spokesman did not know the price.
Pitt is collaborating with Shadyside developer Walnut Capital in the conversion of the hotel site into apartments.
The university stressed in its announcement that the new residential units will be for nonstudents in a neighborhood awash with housing for those attending classes on campus or at other nearby universities.
Instead, Pitt sees “new walk-to-work options” for its faculty and staff or others who work in Oakland.
“The goal of the new housing at the Quality Inn site is to provide additional opportunities for those who would like to live in Oakland and have the opportunity to walk to work. It will be open to all, and we believe it will be particularly appealing to Pitt employees,” spokesman David Seldin said.
“In nearly every conversation the University of Pittsburgh has had with Oakland residents about Pitt’s presence in the neighborhood, the same two items — a grocery store and more resident housing — came up as priorities,” added Lina Dostilio, Pitt’s associate vice chancellor for community engagement.
“It was obvious there was a need, and we are excited to partner with our community to help realize these long-desired amenities.”
Pitt stated that Walnut Capital, which recently reached deals to sell two properties to the university, was selected through a competitive search process.
Walnut Capital sees the potential for a development similar to those that have taken place elsewhere — one housing a first-floor grocery and apartments above, president Todd Reidbord said.
“There are a lot of great examples throughout the country. We just have to find out what will work best on this site,” he said.
The developer also hopes to incorporate the Panera Bread now located at the site into the new development, Mr. Reidbord noted. He believes the type of units planned at the site are badly needed in Oakland.
“If there’s anything missing in Oakland now, it’s housing geared for people who work in Oakland or who want to work in Oakland,” he said.
No timetable has been established for starting the work. Pitt and Walnut Capital plan to go through a community process before submitting a final design. Once that has been approved, a timetable will be established.
“We’d like to get this thing going. The opportunity is available now. The building is empty. We think there’s an opportunity to make an immediate impact,” Mr. Reidbord said.
In a statement included in the announcement, Mayor Bill Peduto described the proposal as a “win for the entire Oakland community.”
“I appreciate the University's partnership in bringing a needed grocery store back to the community and making an investment in workforce housing,” he said.
Meanwhile, the sale of the Atwood property to Pitt by OPDC came as part of an agreement in which the university committed to several initiatives beyond the Quality Inn conversion.
It also agreed to transfer a university-owned house at 334 Coltart Ave. to OPDC for inclusion in the Oakland Community Land Trust, which means the property will remain owner-occupied for good.
In addition, Pitt will dedicate a meeting space within one of its central Oakland properties that community groups can use for free and will provide retail space in Sennott Square to OPDC rent-free for 10 years. According to OPDC, the space is slated for use by a local entrepreneur.
Until June, the Atwood Street property was OPDC’s main office. With the deal, the nonprofit will consolidate its operations at 294 Semple St.
Two other nonprofits that had space at the Atwood address — Oakland Transportation Management Association and Oakland Business Improvement District — have relocated to 218 Oakland Ave.
One commercial tenant, Puccini Hair Salon, is planning to move to Sennott Square, according to an OPDC representative. She did not know the plans of the other, Sorrento’s Pizza. Neither has vacated the property as of yet.
OPDC plans to use the sale proceeds to establish an endowed fund to support resident needs and community development priorities as identified by its board of directors. They include “providing affordable, equitable, inclusive homeownership opportunities and strengthening local community organizing capacity,” according to the OPDC announcement.
“Pitt’s commitment to building the grocery store and supporting homeownership will help to stabilize the neighborhood, and the new endowment ensures OPDC will serve the neighborhood for decades to come,” OPDC board president Jake Oresick said in a statement.
Pitt last year purchased a property at 229 Atwood for $2.1 million. It also has had an interest in the former Decade club at 223 Atwood, although a spokesman said it has no intention of purchasing it “at this time.” It has no specific plans for the 233-237 Atwood property right now, Mr. Seldin said.
The university is spending $19.5 million to acquire the Innovation Research Tower site on Fifth Avenue from Walnut Capital with plans to erect a "suitable building" in the future.
It also will pay Walnut Capital $5.6 million and $399,125 in reimbursable expenses to acquire property on Bates Street and Coltart Avenue once the developer demolishes the dilapidated rowhouses that sit there now.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: July 26, 2021, 5:06 p.m.
