A highly anticipated redevelopment project in downtown Pittsburgh is quickly closing in on the completion of its funding round, with just 25% of shares remaining. The project, located at 300 Sixth Ave., aims to transform a property that was formerly the headquarters of GNC Holding Inc. into a mixed-use development that includes 253 apartment units and retail businesses.
The building, spanning 218,225 square feet, will undergo a complete overhaul to accommodate the new vision. The ground floor will offer 14,000 square feet of space available for lease, providing an excellent opportunity for retail businesses to establish their presence in the heart of the city.
The property was acquired by the offering sponsor, GPG-Victrix, for $9.85 million in September 2021. Investors are expected to benefit from favorable conditions due to the relatively low acquisition cost and built-in tax advantages. Notably, the building was granted a historic tax credit amounting to $9.5 million, thanks to its original construction in 1904 by renowned architect Daniel Burnham.
One of the project’s significant advantages lies in its redevelopment approach, which offers a cost savings of approximately 20% compared to constructing a new building from scratch. Furthermore, the final product will present a competitive edge in the market with its impressive range of amenities, including a spacious fitness center, tenant lounge, leasing management office, and even a rooftop deck.
Construction is slated to conclude in October 2024, setting the stage for a strong demand for modern yet historic multifamily housing. Situated in downtown Pittsburgh’s bustling Golden Triangle neighborhood, the project benefits from its proximity to over 300 restaurants, 230 retailers, and countless employers. This strategic location is expected to ensure consistently high occupancy rates throughout the estimated seven-year holding period.
Frequently Asked Questions (FAQ)
1. What is the minimum investment required for this project?
The minimum investment for the downtown Pittsburgh redevelopment project is $35,000.
2. What is the target internal rate of return (IRR) for investors?
The target internal rate of return (IRR) for investors is 22.9%.
3. What is the target equity multiple for investors?
The target equity multiple for investors is 2.94x.
4. What is the target cash yield for investors?
The target cash yield for investors is 7.7%.
5. What is the expected investment term for this project?
The expected investment term for the downtown Pittsburgh redevelopment project is seven years.