Faros Properties Acquires Controlling Interest in Pittsburgh’s Allegheny Center Office Complex

The 1.2-million-square-foot office and parking complex at Allegheny Center on the city’s North Side has a new owner.

The 1.2-million-square-foot office and parking complex at Allegheny Center on the city’s North Side has a new owner.

According to the Pittsburgh Post-Gazette, New York City-based Faros Properties has recently acquired a controlling interest over the three-building complex and 2,700-space parking garage. Terms of the deal were not disclosed.

Within the next few weeks, the company will explore its options to identify the best possible use for the property, which it plans to improve.

Previously owned by California-based Allegheny Center Associates, the office complex is currently about 70 percent leased. Tenants include PNC Financial Services Group, which occupies more than 400,000 square feet, local tech firm Expedient and Bank of America, among others. The property dates back to 1965, when it opened as an enclosed mall, with retailers such as Woolworth, Sears and Zayres. By the mid-1990s, most of its stores had left, so it was then converted into office space.

The acquisition marks the first purchase of an office property for Faros in Pittsburgh. The company entered the city’s residential real estate market in November 2012, when it bought the 388-unit I.M. Pei-designed Washington Plaza apartment complex at 1420 Centre Avenue for about $48 million. Later, Faros paid nearly $45 million to acquire the approximately 800-unit Allegheny Center Apartments, perhaps Pittsburgh’s largest multifamily complex, which it renamed Park View. Also last November, the company purchased the 270-unit Carson Street Commons on the South Side. Overall, Faros’ investment in the acquisition and renovation of the three residential properties amounts to more than $175 million.

“We’re very fond of the Pittsburgh market. We like to invest in markets with a high concentration of intellectual capital, smart people and driven people,” Jeremy Leventhal, Faros’ managing partner, told the newspaper.

Photo credits: www.alleghenycenter.com