Kimpton to Redevelop Hotel Monaco in Pittsburgh
- Sep 12, 2013
Kimpton Hotels & Restaurants is continuing expansion of its boutique hotels throughout the U.S., announcing plans to convert a nine-story, 110-year-old Pittsburgh office building into a Hotel Monaco with joint venture partner PMC Property Group.
Funding for Kimpton’s 50 percent stake in the rehabilitation of the historic Beaux Arts property at 6th Avenue and William Penn Way is coming from its KHP Fund III. Neither the San Francisco-based hospitality company nor the Philadelphia-based developer would release the estimated cost of turning the James H. Reed Building into a 247-room boutique hotel with nearly 9,000 square feet of meeting space and a 120-seat restaurant. PMC Property Group purchased the building, the former offices of the Reed Smith law firm, for $5.5 million in a bankruptcy court auction last year. Located across from Mellon Square, the property is in the Golden Triangle area of Pittsburgh.
It will be the third Pennsylvania property for Kimpton, which also owns the Hotel Monaco Philadelphia and Hotel Palomar Philadelphia. The Pittsburgh Hotel Monaco is expected to open by late 2014.
“We’ve had great success throughout the Northeast and in Pennsylvania, and Pittsburgh is a logical choice for expansion, especially given the relative lack of boutique style properties and high demand for that area,” Mike Depatie, Kimpton CEO, said in a joint news release.
Noting that Pittsburgh is the 22nd largest city in the United States and home to many Fortune 500 companies, universities and a thriving technology sector, Depaite added that it, “deserves a great boutique hotel.”
“We think visitors and locals will appreciate the warm and playful approach to hospitality that Kimpton brings to the market,” he added.
PMC Property Group, which focuses on renovation and adaptive reuse of urban commercial buildings into apartments and commercial spaces, already has several projects in Pittsburgh. In March 2012, PMG Property Group acquired the 31-story Regional Enterprise Tower at 425 Sixth St. The company plans to renovate the upper floors for residences and use the lower floors for commercial tenants. The developer’s other Pittsburgh holdings are 201 Stanwix St., The Penn Garrison Lofts in the Golden Triangle and the Kenmawr Apartments in Shadyside. The firm’s portfolio now has more than 6,500 residential apartments; 1 million square feet of office space; 150,000 square feet of industrial space and 100,000 square feet of retail in 12 cities in seven states.