A joint venture of M & J Wilkow, Ltd. and CarVal Investors, LLC acquired the 717 Grant Street office building in Pittsburgh, Pennsylvania on August 1, 2013. The Federal Reserve Bank has been the building's sole occupant since the first phase was completed in 1938 and has maintained it to a high, institutional quality level. The Pittsburgh area is included as part of the Federal Reserve Bank of Cleveland, which decided to consolidate operations into other markets and to sell the building. The building is a ten-story, 135,000 sf, Class B office building, situated in an "A" location in the section of Pittsburgh's CBD, commonly referred to as the "Golden Triangle." The property has a historic feel with well maintained modern systems that you would expect from a Federal Reserve Building. The project provides a great opportunity to acquire a single tenant building at an opportunistic basis, convert it into a high quality multi-tenant office building, and reposition it as a new product offering in an attractive leasing market.
Pittsburgh has established itself as a diverse and balanced economy anchored by excellent universities, a world renowned healthcare industry, a resurgent energy center and strong political and community leadership. It is one of the tightest office markets in the U.S. - The Class A CBD office market has less than a 5% vacancy rate. Large blocks of available office space and available building development sites are relatively scarce. The redevelopment of 717 Grant, renamed SevenOneSeven, offers the opportunity to provide upgraded, high quality, Class A-/B+ office space (with parking and building signage) in a Landlord-favorable CBD office market.
The joint venture is currently completing physical improvements and adding amenities to SevenOneSeven in order to position it for new tenants. Amenity upgrades include a roof top deck, new fitness center, and upgraded common areas. The project is being leased locally by Jason Stewart (412-208-1400) of JLL in Pittsburgh.