Philly's PMC Property Group working to expand ownership of Downtown buildings
PMC Property Group is the leading bidder to acquire the former Reed Smith Building, Downtown, in the Philadelphia-based developer's latest bid to expand its stable of buildings in Pittsburgh that include the former Verizon Building and the Regional Enterprise Tower.
The owners of the Reed Smith office building, in bankruptcy since 2011, are facing a sheriff sale on the property for nonpayment of a $2.2 million mortgage to PNC Bank.
PMC Property Group, which has turned several Downtown office buildings into residential units, has made a $5.5 million “stalking horse” bid on the nine-story building at 435 Sixth Ave.
The “stalking horse” bid is the starting amount at an auction on the building, scheduled for Sept. 11 at U.S. Bankruptcy Court in Los Angeles, said Jerry Novick, PMC executive vice president.
Any other bid must start at $5.7 million, according to court documents, and all bids must be submitted by close of business on Sept. 7.
The former Reed Smith Building, which was purchased in 2008 for $6.5 million by Mika Realty Group of Los Angeles under the name 600 William Penn Partners LLC, has been empty since 2009 when the law firm Reed Smith moved its offices to Three PNC Plaza on Fifth Avenue.
Listed in court documents as owners are Gerson Fox and Michael Kamen, who own the Union Trust Building, which also is in bankruptcy. Also known as the James H. Reed Building, it was purchased from Reed Smith LLP and 435 Sixth Avenue Associates.
The building is close to the Regional Enterprise Tower, which PMC purchased in March for $7.05 million, and included the Harvard Yale Princeton Club and an adjoining vacant building. PMC plans to convert the 31-story tower into an office and residential structure. About 241 rental units are planned in floors 14 through 31.
The court received five bids on the property, and PMC was selected as the lead bidder, according to court documents. The successful bidder for the Reed Smith building will receive it free of any liens.
PMC converted the former Verizon Building, now called 201 Stanwix Street, into a 158-unit residential building with the lower floors housing a commercial tenant.
PMC has a sales agreement to purchase the 10-story Jackman Building at 526 Penn Ave., Downtown. Merrill Stabile of Stabile & Associates, owner of the 80,000-square-foot building, said he expects PMC wants to convert the building into about 70 residential units.
Stabile said he likes PMC's work in turning older office buildings into rental apartments.
Sale of the Jackman building could be completed within 30 to 60 days, once PMC has completed inspection of the property, both Stabile and Novick said.
The Jackman Building formerly contained the Art Institute of Pittsburgh until it relocated to its current site, the former Equitable Gas Building on the Boulevard of the Allies, Downtown.
PMC also is the proposed buyer of the John Robin Civic Building at 200 Ross St., Downtown. It will be converted into apartments.
PMC owns the Penn Garrison Apartments in the 900 block of Penn Avenue, Downtown, where it increased the number of rooms from 117 to 150.
It also owns the Kenmawr Apartments in Shadyside, which has 209 apartments and 36 commercial units.
Sam Spatter is a staff writer for Trib Total Media. He can be reached at 412-320-7843 or sspatter@tribweb.com.
