Downtown apartment building The Pennsylvanian sold to New York firm
A historic former train station that found new life as a Downtown apartment community has been sold to a New York real estate firm, highlighting a growing number of outside investors who have been drawn to Pittsburgh.
Tenants of The Pennsylvanian were informed of the sale to 1100 Liberty Owner LLC by the previous owner, Brothers Property Corp. of Coral Gables, Fla. The limited liability corporation lists its principal offices in New York at the address of JMC Holdings, a real estate company founded in 2011 that owns a variety of multi-family and commercial properties in New York, North Carolina and Virginia.
Officials from JMC Holdings and Brothers Property did not respond to requests for comment Monday.
Terms of the sale were not disclosed. The property was assessed at $19.5 million, according to Allegheny County property records.
Built at the turn of the 20th century, the 13-story Pennsylvanian is among Pittsburgh's most iconic properties and is listed on the National Register of Historic Places. It was designed by famed architect Daniel Burnham and once served as a gateway to the city for travelers arriving on the Pennsylvania Railroad.
The building is one of Burnham's masterpieces, said Karamagi Rujumba, spokesman for Pittsburgh History & Landmarks Foundation.
“It's very grand,” Rujumba said. “It's a building that was done at a time when architecture was done to evoke incredible feelings about a place.”
The building fell into disrepair as the railroad industry declined and was largely vacant before being restored by a Philadelphia firm in 1988. Brothers has owned The Pennsylvanian since 1995, long before the Golden Triangle became a popular place to live.
The sale occurs as outside investors are drawn to the region. Out-of-town real estate companies have spent more than $1.2 billion buying up properties in the central business district since 2010, according to Newmark Grubb Knight Frank.
Firms have come from pricier cities such as New York and San Francisco, and seem to be hunting for bargains in a less expensive and stable real estate market in Pittsburgh, said Rob Geiger, principle at the Downtown real estate firm Grant Street Associates.
“Whether residential or office properties, (outside investors) are finding them to be reasonably attractive,” said Geiger, whose firm was not involved in the Pennsylvanian deal. “They're very desirable long-term investments for these buyers.”
The Pennsylvanian's location at Grant Street and Liberty Avenue makes it equally convenient to Downtown and the Strip District, Geiger said. Downtown is anchored by offices of large employers in financial services, health care and education — pillars of the regional economy. The Strip has experienced recent housing development, including the $130 million 3 Crossings mixed-use project. A Chicago developer last week outlined additional plans for the Strip's landmark Produce Terminal.
The mix of retail shops, amenities and nightlife have made Downtown increasingly attractive to young people.
Geiger said he spoke with a woman in her 20s who had been living at The Pennsylvanian since December when she relocated from California for work.
“She went on and on about how wonderful the rooms were. They weren't cookie cutter, they had a lot of character,” Geiger said. “She said she has no interest in going back to California. She has just fallen in love with the city.”
The building will be managed by Greystar, a property management firm in South Carolina. A Greystar spokeswoman declined to comment.
Chris Fleisher is a Tribune-Review staff writer. Reach him at 412-320-7854 or cfleisher@tribweb.com.
