Westinghouse building part of $1.4B deal

The former Westinghouse Electric Corp. headquarters building -- known as 11 Stanwix St. -- is part of a $1.4 billion purchase by Dallas-based Behringer Harvard of a portfolio of 35 U.S. office buildings.

It is the latest among several Downtown buildings recently sold or put on the market.

Behringer Harvard said Wednesday it has entered into a definitive agreement to acquire publicly traded Toronto-based IPC US REIT's properties, which includes the 23-story 11 Stanwix St.

The closing is expected to occur in late October or early November and is contingent upon regulatory approvals and approval of the IPC US REIT unitholders, Behringer Harvard said.

"It's a bit premature to discuss future plans for the building because we must deal with a number of hurdles before acquiring the properties," said Jason Mattox, Behringer Harvard executive vice president.

Although his company is not in the Pittsburgh market, Mattox believes the acquisition of 11 Stanwix St. will bode well for his firm, based on increasing occupancy and rental rates in the Downtown office market.

"Generally speaking, Pittsburgh is a stable market with an improvement trend," he said.

No announcements have been made regarding management of the building, which has Grant Street Associates/Cushman Wakefield of Pittsburgh as its leasing agent, Mattox said. IPC US REIT handles the management.

The building is at 85 percent occupancy, said Michael Seigle, Grant Street broker and leasing manager.

IPC US REIT acquired the building on Dec. 31, 1998, for $19.05 million, according to the Allegheny County data. It has a market value of $36 million.

Built in 1970 as the corporate headquarters for Westinghouse, the building underwent major renovations in 2006.

Among its tenants are Cohen & Grigsby, Blattner Brunner, CBS Corp/Viacom, IBM and Health America.

Cohen & Grigsby is in negotiations for about 80,000 square feet on three or four floors of the 32-story Dominion Tower, said Allan TeDesco, chief operating officer of the law firm. It occupies about 58,000 square feet on three full floors. Its current lease at 11 Stanwix St. expires next year.

The 26-year-old firm has about 120 attorneys and 235 employees in its Pittsburgh office.

"We will see what happens with the new ownership, and that could have a bearing on our future (in the building)," said Michael Brunner, chief executive officer of Blattner Brunner.

He said no decision has been made on whether to remain or relocate since the lease has two more years.

Several Downtown office buildings recently have been sold or are under sales agreements.

Sovereign Group LLC, a New York firm, in July purchased Centre City Tower, 650 Smithfield St., for $16 million through Centre City Tower LP, a Pennsylvania-based limited partnership. The seller was Centre City Partners LP.

Two local investors, Joe Kallen, owner of Kallen Development Corp. in Oakmont, and Michael Bozzone, president of Bozzone & Associates Inc. in O'Hara, have obtained a sales agreement to purchase the former Chamber of Commerce Building, called 411 Seventh Avenue.

Still on the market are the Union Trust Building and the 64-story U.S. Steel Tower.