A Detroit developer has taken a big step forward in its bid to build a 20-story apartment tower on top of the Downtown YWCA building on Wood Street.
City Club Apartments finalized its purchase of the property from the YWCA Greater Pittsburgh on Thursday. It paid $4 million for the 60-year-old building that has been the headquarters for the nonprofit.
Part of the sale proceeds will be used by the YWCA to lease new office space. The location has yet to be finalized, although the staff likely will move into the new space at the beginning of 2023, the YWCA stated in announcing the sale. The nonprofit will remain at the Wood Street location until at least the end of the year.
Wherever the new headquarters ends up, the space will be reflective of the YWCA’s “mission and equity priorities, including gender-neutral bathrooms and accessible facilities for those with disabilities as well as families with young children,” the organization stated.
“Our vision is that this sale will allow us to take even bolder steps toward eliminating racism and empowering women and our new physical space is part of that vision. We’re thrilled to be stepping into a new phase of growth that brings us back to our core values,” Anne Herman, YWCA Greater Pittsburgh’s board president, said in a statement accompanying the announcement.
As part of its search for a new location, the YWCA also is placing a priority on proximity to major bus lines and free parking.
“Though we are saying goodbye to a piece of our history today, we know that using our resources strategically in the service of race and gender equity is the best way to honor the women who came before us,” said Angela Reynolds, YWCA Greater Pittsburgh CEO.
For City Club Apartments, the closing provides it with the site control it needs to advance its proposal for a new Downtown apartment high-rise.
The developer is proposing to build a tower with up to 300 apartments on top of the YWCA, which was engineered to support the construction of an addition above it, according to Jonathan Holtzman, City Club founder, chairman, and CEO.
City Club won approval from the Pittsburgh Zoning Board of Adjustment last year for a dimensional variance that allowed it to build up to 300 smaller residential units at the site rather than the 141 larger ones permitted under the zoning code.
At the time, Mr. Holtzman made the case that a proposed 300-unit tower at a cost of $78.8 million was more cost effective than two alternatives — demolishing the building and erecting a new one with 141 apartments at a cost of $55.1 million or converting the existing structure at a cost of $57.6 million to hold 141 apartments.
Rather than offices or a hotel, the Jones Lang LaSalle real estate firm had determined that the best use for the property would be residential.
As part of the redevelopment, City Club also is planning a first-floor restaurant and a public health club in the building’s three below-ground floors. Part of the existing roof would be used for green space.
In addition, the roof of the new tower would feature an outdoor social space and a swimming pool.
Mr. Holtzman declined comment on the closing Thursday.
He had said previously that he wanted to begin construction by the start of 2022. He is planning to make about 20% of the units available to households at 80% of the area median income. The others would be market rate.
The YWCA put the building up for sale in 2020 a year after it downsized staff and put together a strategy to refocus its mission on initiatives to eliminate racial and gender inequities.
In its ruling, the zoning board described the building as “in disrepair and almost vacant.” The YWCA occupies part of the fourth floor and Point Park University has space on a portion of the first floor. The Mandarin Gourmet restaurant also has first floor space.
The Allegheny County real estate website listed the market value of the building at $5.8 million.
In its announcement on the sale, the YWCA stated that it is participating in “a pilot nonprofit capitalization program through a local foundation to ensure the best possible stewardship of its resources.”
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: April 7, 2022, 10:45 p.m.
Updated: April 8, 2022, 12:49 p.m.