M & J Wilkow Completes Third Acquistion in Pittsburgh
Earlier this year, an affiliate of M & J Wilkow acquired the 420 Boulevard of the Allies Building, which is a fully renovated, 1920's era, 177,501 sq. ft. loft office building, located in the heart of Pittsburgh's central business district called the Golden Triangle. The Property was sold by, and leased back to, the Art Institute of Pittsburgh, LLC, which was founded in 1921 and, as of 1968, has been a wholly-owned affiliate of the Education Management Corporation, a publically traded for-profit education company.
The tenant's obligations under the lease were guaranteed
by the parent company. The acquisition of the 420 Building presented M & J Wilkow and its co-investors with an opportunity to acquire a vintage, well maintained asset in Pittsburgh's vibrant CBD office space market, at an attractive acquisition cost basis of $56/sf.
In light of the quality of the asset, as well as its location and building systems, M & J Wilkow believes that after the lease with the Art Institute expires in three years, it will be feasible to convert the Property from a single tenant loft office building to a hotel, an apartment building or a multi-tenant office building on a cost-effective basis. Accordingly, if the lease with the Art Institute is not extended on satisfactory terms, M & J Wilkow's strategic plan for the asset contemplates two possible re-positioning scenarios - namely, a sale of the asset to a strategic buyer/developer or the conversion of the building by M & J Wilkow to a multi-tenant office building.
With its diverse and balanced economy, anchored by excellent universities, a world renowned healthcare industry, a resurgent energy center and strong political and community leadership - Pittsburgh represents a solid, growth market that will continue to be mined by M & J Wilkow for potentially attractive real estate investment opportunities.