Shifting gears on North Shore
Continental sells SAP-anchored office building, ready to focus on new residential project
Two years after its completion, Continental Real Estate Companies has sold the seven-story North Shore building anchored by German software firm SAP.
The buyer is a group led by Lionstone Investments, a Houstonbased real estate firm.
In a statement, Barry Ford, Continental’s president of development in Pittsburgh, said the sale would allow the company to concentrate on its latest North Shore venture — a proposed 110-unit residential and retail project.
“With the success of the SAP Building and in an effort to focus on the next phase of the North Shore, we have transferred our interests in the building to a group led by Lionstone Investments,” he said. “Lionstone is a well-established and successful real estate firm that has made several key investments in our City.”
Mr. Ford said current tenants SAP and Cadence would remain in the building, adding “we are confident the property will be maintained long into the future as a prominent landmark between the stadiums.”
“With this transfer, we will put our energy and resources into bringing the much anticipated Pirates Plaza and residential component of the project to the corner of North Shore Drive and Mazeroski Way, located just across from the home plate entrance to PNC Park,” he said.
“We look forward to working with our friends at the Pirates and Steelers on what will be another great North Shore project.”
While no sales price was listed for the property, a declaration of acquisition for $25.6 million was filed, according to Allegheny County real estate records.
Columbus-based Continental, hired by the teams to develop the land between PNC Park and Heinz Field, is pitching a plan for a new six-story residential building at the corner of North Shore Drive and Mazeroski Way that will feature first floor retail and five floors of apartments.
The building is part of a broader development bordering North Shore Drive, Mazeroski Way and West General Robinson Street that includes a 440-space parking garage and a public plaza being designed in conjunction with the Pirates.
One idea under consideration for the plaza is some type of tribute to the nine Pirates players who have had their jerseys retired and to Jackie Robinson, the first African American athlete to play Major League Baseball. His number has been retired by all major league teams.
Lionstone is no stranger to Pittsburgh. It is a financial development partner of Shadyside-based Walnut Capital in the Bakery Square complex in the East End.
It also partnered with Walnut Capital in the acquisition of the Pittsburgh Athletic Association
clubhouse in Oakland, which has been converted into office space as part of a $25 million rehab.
Lionstone is a wholly owned subsidiary of Columbia Management Investment Advisers, whose parent is Ameriprise Financial.
Since getting its start on the North Shore nearly two decades ago, Continental has sold other buildings that it constructed. They include the Peoples Center, or the former Del Monte building. It is now owned by the Buccini/ Pollin Group, which is redeveloping the former Civic Arena site in conjunction with the Pittsburgh Penguins.
The Equitable Building also was sold and is now owned by IRA Capital.
Developments on the North Shore have included four office buildings, Stage AE, the Hyatt Place hotel, and bars and restaurants.