‘A UNIQUE OPPORTUNITY’
Pitt trustees approve acquisition of Pittsburgh Athletic Association building
Seven years after seeing the property slip through its fingers, the University of Pittsburgh has finally gotten its hands on the historic Pittsburgh Athletic Association clubhouse in Oakland.
Pitt’s board of trustees approved the acquisition of the property, located on Fifth Avenue across from the Cathedral of Learning, from developer Walnut Capital Thursday for $34 million.
The sale, contingent on satisfactory completion of any due diligence, was one of two major real estate moves made by the board during its meeting.
Trustees also authorized $75 million in spending to build out space in its new building at Fifth Avenue and Halket Street, which will become the headquarters for its School of Health and Rehabilitation Sciences.
The Pittsburgh Post-Gazette reported in February that Pitt was interested in buying the PAA property. It has had its eye on the clubhouse since 2017. That year, the university lost out to Walnut Capital in the bidding for the building during the bankruptcy reorganization of the PAA, a longtime private social and athletic club.
Shadyside-based Walnut Capital secured the property for $12.6 million and then spent another $25 million to rehab the inside and outside of the Oakland landmark.
In 2019, Pitt reached a deal with the developer to take 30,199 square feet in the building under a 15-year lease to house the Learning Research and Development Center. But after the pandemic erupted, the university ended up not taking the space.
In recommending the purchase Thursday, Peter Varischetti, chair of the properties and facilities committee, said the move “presents a unique opportunity for the university to own this key historic site at the core of the Oakland campus.”
The purchase not only includes
One of our trustees referred to it as beachfront property. And another one in another conversation called it Main and Main. It’s true. Right? It’s a beautiful building, and it is right at the center of everything.” Joan Gabel Pitt chancellor
the 130,000-square-foot building but also the ground lease at 5126-5130 Bigelow Boulevard that is the site of the Oaklander Hotel.
In a statement following the board of trustees vote, Dave DeJong, Pitt senior vice chancellor for business and operations, said the PAA building would “support future programming needs,” but did not elaborate.
In an interview after the meeting, Pitt Chancellor Joan Gabel said she was “just delighted” with the pending acquisition.
“One of our trustees referred to it as beachfront property. And another one in another conversation called it Main and Main. It’s true. Right? It’s a beautiful building, and it is right at the center of everything,” she said.
But Ms. Gabel stressed that Pitt would take its time in determining the structure’s reuse, saying it will go through a process that will include faculty, staff, students, “and some patience.”
“There are a lot of things we could do with it, but it’s a very precious location. And so I want to make sure we utilize it wisely. But without question, it will be highly desired — a lot of people are going to want to be in that building,” she said.
For the past four years, Walnut Capital has struggled to attract a tenant to lease space in the building in a pandemic-battered office market plagued by high vacancies and soft demand.
It appeared at one point to be close to landing Apple before the iPhone maker moved its Pittsburgh office to the Assembly, a converted eight-story building in Bloomfield.
Last year, the developer had considered converting the building to condominiums and restaurants but ultimately decided against it.
Walnut Capital president Todd Reidbord said Thursday that it was with a “little bit of sadness” that the company is parting with the property. The rehab it did included a restoration of the building’s facade. The property is listed on the National Register of Historic Places.
“We’re very pleased that [the trustees] approved it. We think it’s a great use for the building,” Mr. Reidbord said. “We’re excited about the new future for the PAA.”
The move of the School of Health and Rehabilitation Sciences to the new Fifth and Halket property will allow Pitt to consolidate most of the school’s 30-plus programs now located in three buildings on Forbes Avenue under one roof.
“This is a watershed moment for SHRS,” Dean Anthony Delitto said in a statement. “This is the school’s first building that will be specifically and strategically designed to meet SHRS’ immediate and future needs with modernized teaching facilities, especially for those programs currently occupying Forbes Tower and McKee Place.”
The school has the fourth-largest enrollment on the Pitt campus, with more than 1,800 students.
“Uniting nine of our 13 health care disciplines in one location will foster greater collaboration, strengthen the SHRS community and provide more opportunities for interprofessional experiences for our students, improving their readiness for the realities of health and rehabilitative care,” Mr. Delitto said.
Pitt hopes to have the nine-story building completed by December 2025. The School of Health and Rehabilitation Sciences will be located on six floors. Besides academic programs, the school’s dean’s offices will be placed there as well.
The university also purchased the Fifth and Halket site from Walnut Capital, paying $19.5 million for it in 2021. The price included land acquisition; site improvements; demolition; permits; traffic, architectural, and engineering plans and studies; excavation; shoring; caissons; and structural steel.
Walnut Capital at one time planned to build what it dubbed as an Innovation Research Tower at the site.
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This is a watershed moment for SHRS. This is the school’s first building that will be specifically and strategically designed to meet SHRS’ immediate and future needs with modernized teaching facilities.” Anthony Delitto dean, School of Health and Rehabilitation Sciences