New name, timetable for $ 63M Downtown store rehab

For more than two years, the proposed redevelopment of the former Frank & Seder department store on Smithfield Street in Downtown has languished in the shadows with no signs of life.

Now Stark Enterprises, the Cleveland developer behind the $ 63 million rehab that had been called the “Icon on Smithfield,” says it has a new name for the project and a new timetable for beginning the work.

The start of construction probably can’t come soon enough for Downtown visitors and workers who have had to contend with the desolate block, one that has been further sullied by the drawn- out redevelopment of the old Kaufmann’s/ Macy’s department store across the street.

Stark is changing the name of the office, residential and retail development to “Smith & Fifth,” according to Stacie Schmidt, the company’s vice president of marketing and communications.

It plans to begin construction at the site within the next six months, she said.

The new timetable is being advanced even as there were indications in the real estate community that Stark might have been having second thoughts about the property — or at least entertaining the idea of selling it. At least one developer apparently was approached recently about buying it.

Stark bought the seven- story building at 441 Smithfield from Oxford Development Co. in

January 2017 for $ 10.4 million.

Nine months ago, it received approval from the Pittsburgh Planning Commission on a proposal to transform the property into three floors of offices; two floors of apartments, about 40 in all; and 25,000 square feet of retail.

But since then, there has been no apparent activity at the location, which sits at a strategic spot between Forbes and Fifth avenues in the heart of Downtown.

Stark has applied for various building permits with the city, including ones relating to interior and exterior demolition, a commercial HVAC equipment, and sprinkler and fire alarm systems.

It got tentative approval for some last month, said Tim McNulty, spokesman for Mayor Bill Peduto.

“There’s a little bit more paperwork to do, then they’ll be approved for the rehab work,” he said.

Asked why it has taken so long to get the project started, Ms. Schmidt replied, “We are doing our due diligence to make sure the property is a great addition to the future of Pittsburgh.”

One who will be glad to see activity at the site is John Valentine, executive director of the Pittsburgh Downtown Community Development Corp.

“It’s been too long and I’m happy to hear they’re planning [ a new timetable]. But I would like to see it start. It’s an eyesore and it’s right in the heart of Downtown,” he said.

“He claims he has leases filled or signed. I don’t know what the holdup is. I’m happy to see it start.”

Stark has landed Davio’s, a Boston- based northern Italian steakhouse, to anchor Smith & Fifth. Davio’s is expected to take 9,730 square feet on the Fifth Avenue side.

Last October, after briefing the planning commission on Stark’s plans, Steve Coven, the company’s vice president of development, said he had commitments in place for all 25,000 square feet of retail.

At the time, a revised floor plan obtained by the Pittsburgh Post- Gazette showed that two Cleveland restaurants, one specializing in tacos and the other in Lebanese food, and an Asian- Fusion restaurant from a Toledo, Ohio, group were taking space in the development.

It is not known whether they are still part of the developer’s plans.

After the planning commission presentation, Mr. Coven said Stark planned to build the three floors of offices on a speculative basis, meaning without a signed tenant. The apartments would be located on the top floors.

As part of the project, Stark also is eyeing underground parking and new sidewalks, and awnings to enliven the space outside the vacant building, which most recently had housed some Allegheny County offices.

Meanwhile, across the street, Kaufmann’s Grand, the redevelopment of the former Kaufmann’s/ Macy’s department store, has dragged on for four years.

It has been bedeviled by delays, including an electrical vault fire, mechanic’s liens, and a lawsuit filed by the developer behind an 160room Even Hotel. The developer was upset because it hasn’t been able to open in part of the old building.

In addition to the hotel, the development is to feature 311 luxury apartments and 130,000 square feet of retail space. There have been signs of progress lately. Some residents have started moving in and the hotel now hopes to open around Labor Day.

Waffles, INCaffeinated is the only restaurant that has opened so far.