Four Allegheny Center

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The REIT that owned the 231,426-square-foot office building hired Grant Street Associates to sell the property as it repositioned its real estate portfolio.  The property, located on Pittsburgh’s North Shore, was net-leased by the West Penn Allegheny Health System, the area’s largest hospital network at the time. Five years remained on their lease and the building was only 60% occupied.

APPROACH

  • Grant Street Associates joined forces with Cushman & Wakefield Capital Markets Group to market the property to a wide scope of local and North American investors.
  • The offering created good interest by both local and national investors.
  • Grant Street Associates worked extensively with West Penn Allegheny Health System to entice them to remain a tenant in the building, thus enhancing the offering package for prospective buyers.

RESULTS

  • After aggressive marketing and extensive negotiations with three interested parties, the property eventually was sold to a New York-based private investment group that already had entered the Pittsburgh market with several CBD purchases.
  • The purchaser immediately commenced lease negotiations with the existing tenant to sign a new long-term lease.

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