The new owner of four buildings in the Hill District that have historically housed medical clinics, day care, education resources and other services said he’s committed to “honoring that legacy” as he renovates the structures and seeks new tenants.
Emeka Onwugbenu, principal of E Properties and Development, on Thursday previewed his plans for four properties formerly owned by the nonprofit Hill House Association during a community meeting at the Jeron X. Grayson Community Center in the Hill District.
Lawrenceville-based E Properties is the majority owner in a partnership that acquired the properties, including Hill House’s main headquarters on Centre Avenue, from the cash-strapped Hill House in July.
The minority partner, the Hill Community Development Corp., holds a 19.5% stake.
Hill House a year ago disclosed that it was saddled with debt from real estate developments and needed to sell some assets to stay afloat.
Since then, the nonprofit has put its other holdings on the market and announced it is in the process of dissolving.
E Properties and the Hill CDC paid about $5 million for four buildings: Hill House’s main headquarters site; One Hope Square, an office-retail center, and a building leased by Family Dollar, both on Centre Avenue; and the Blakey Program Center on Wylie Avenue.
Before the transaction closed in July, Allegheny County Common Pleas Judge Michael McCarthy ordered Hill House to use the proceeds to pay down debt.
Mr. Onwugbenu’s development firm was founded in 2009 and owns and manages 100-plus rental units in the city.
While preparing to bid on the Hill House buildings, Mr. Onwugbenu said he read Hill House’s 50-year history and determined, “This transaction does not make sense if there is no community involvement.”
That’s when he approached the nonprofit Hill CDC to become a partner.
It’s critical to the partnership to have a day care center, counseling services, housing assistance and other social services as tenants in the properties, said Marimba Milliones, president and chief executive of the Hill CDC, “because we are not a community that is void of social ills.”
The acquisition from Hill House specifies that the nonprofit can remain for two years in its main building, rent-free, said Mr. Onwugbenu.
Plans for that property include renovating the exterior to become a more open, welcoming space that features lighting and seating on the Centre Avenue plaza.
All four of the structures need roof repairs and updated utilities, Mr. Onwugbenu said.
Hill House’s main building lost five tenants, including a day care center, after a pipe burst in January and forced the closure of the property for five months.
Mr. Onwugbenu said he has already recruited a new day care provider, Learning Loft, which is scheduled to open in January, and Family Resources, a nonprofit that provides counseling and intervention for child abuse.
He also plans a community meeting room and conference hall in that building.
Both he and Ms. Milliones said they hope to engage the community in coming up with a new name for the main Hill House building.
“But I know people in the Hill will always call that building Hill House,” said Ms. Milliones.
During the meeting attended by about 70, audience members questioned how Hill House used $500,000 it received earlier this year from the Greater Hill District Development Growth Fund.
Emma Lucas Darby, Hill House’s board chair, said the money was a grant from the fund to be used for operations and services and that if the sale price for its buildings had exceeded $5 million, the money would be paid back.
Many audience members, including the Rev. Glenn Grayson of Wesley Center AME Zion Church, who serves on the fund’s board, said they believed the money was loaned to Hill House.
Scott Lammie, vice chair of Hill House’s board, said an audit is being prepared that will clarify the issue.
Ms. Lucas Darby said Hill House is negotiating to sell the Kaufmann Center on Centre Avenue and a senior services center on Bedford Avenue.
Hill House developed and owned the Centre Heldman Plaza, where a Shop ’n Save and a Crazy Mocha coffeehouse both closed earlier this year. That property is currently in receivership by Dollar Bank.
Joyce Gannon: jgannon@post-gazette.com or 412-263-1580.
First Published: September 6, 2019, 2:27 a.m.