The owner of Downtown’s Gulf Tower has found a partner in its bid to convert the iconic skyscraper into apartments and a hotel. But don’t look to make any reservations just yet.
Work on the possible conversion probably won’t begin for at least another 18 months while owner Rugby Realty installs a permanent electrical system to power the 44-story landmark at 707 Grant St.
New Jersey-based Rugby put in a temporary system in the aftermath of a fire in May 2021 that shut down the skyscraper for nearly six months.
That system allowed the building to get up and running again while a more permanent solution was designed and engineered, said Larry Walsh, Rugby’s chief operating officer in Pittsburgh.
The longer-lasting replacement could take 18 months to two years to complete, impacting the timetable for when the proposed conversion, first floated in July, could start.
But that apparently hasn’t affected interest in such a project.
Rugby, Mr. Walsh said, has reached an agreement in principle with a residential developer to partner with in the undertaking. He declined to name the company.
“They’re very familiar with Pittsburgh, and I would say they have international ties as well,” he said. “It’s a very large company.”
Final terms of the deal are still being negotiated. But Mr. Walsh said the firm is willing to wait for the electrical work to be finished before getting started on the conversion.
“When that is completed in a year and a half or two years we will know what we have in terms of infrastructure and we will move forward with the repositioning then,” he said.
Rugby is considering a plan to turn the first 12 to 13 floors of Gulf Tower into a luxury hotel, with 190 to 215 residential units to be built on the floors above that.
While the building has 44 floors, only 38 are currently used for offices. The rest house mechanical, air handling, and other equipment needed to run the complex.
For the 150- to 170-room hotel, Rugby is focused on attracting a high-end operator like Ritz Carlton, Four Seasons, or St. Regis.
“We’re very excited about it. The building lays out perfectly for it. It’s going to be a signature destination Downtown,” Mr. Walsh said of the proposed residential-hotel redevelopment.
Rugby also is considering converting one of two basement floors now used for storage into parking.
The owner has yet to decide whether to offer apartments or condos on the residential side.
Another possibility would be to do condo hotels — an arrangement in which a condo owner offers the space to the hotel when he or she isn’t there.
As Rugby awaits the completion of the permanent electrical system, it will continue to operate the building as an office tower. The occupancy currently is about 65% and Rugby is still interested in doing short-term office leases for companies looking for space.
At its opening in 1932, Gulf Tower was the city’s tallest building, a distinction it held until the 64-story U.S. Steel building across the street opened in the early 1970s.
Once the headquarters of Gulf Oil, the building is perhaps best known for the weather beacon at its top that shows temperature, precipitation, humidity, and wind speed in an array of colors.
Gulf Tower is not the only big Downtown office building being eyed for a residential conversion. Hertz Investment Group also is exploring a plan to turn the 25-story Three Gateway Center into more than 300 apartments.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: December 26, 2022, 11:00 a.m.
Updated: December 26, 2022, 12:08 p.m.