Major Multifamily Projects in Pittsburgh Receive $90M Financing through Huntington Bank
- Aug 27, 2014
As part of a public-private neighborhood revitalization effort, two major mixed-use apartment developments in Pittsburgh have received a total of $90 million in loans through Huntington Bank’s commercial real estate division.
Slated to rise in the city’s East End and Southside, the new projects by Oxford Development Company and The Mosites Company will bring a combined 477 multifamily housing units.
The Mosites Company has received $70 million for Eastside III, the final phase of a 16-acre master-planned project that will connect the Shadyside and East Liberty neighborhoods.
Developed in a joint venture with Morgan Management, Eastside III will be built across six acres of land at Highland and Penn avenues. Plans call for three buildings totaling 360 apartments, 554 parking spaces and 43,000 square feet of retail.
The project is also benefiting from new market tax credits, public-private financial support through the city’s Urban Redevelopment Authority and the Port Authority of Allegheny County, and additional funding through the first-ever use of the Commonwealth’s Transit Revitalization Investment District program.
“Our goal is to create a convenient place to live,” developer Steve Mosites said of the 24-hour neighborhood that will sit atop the Pittsburgh Busway and integrate with a new $52 million multi-modal East Liberty Transit Center. “Huntington understands our vision for building community in the larger sense. Their support continues to be a vital part of our success.”
Meanwhile, Oxford Development Company has received a $20 million construction loan for Hot Metal Flats in Pittsburgh’s South Side Works. The 117-unit, five-story apartment building will feature an integrated 96-stall parking garage and will include studio, one-bedroom and two-bedroom rentals with views of the city, river and/or south-side slopes.
“We continue to see a tremendous amount of multifamily construction in Pittsburgh and in markets across our footprint as the economy improves and with increased desire by young professionals and empty-nesters to live, work and play in urban settings,” said Huntington Senior Vice President and Commercial Real Estate Regional Manager Dave Tetrick. “New developments and office-to-apartment conversions typically funded by multiple public and private sources are proving to be real wins for many cities.”
The residential occupancy rates across the downtown Pittsburgh region are currently above 95 percent. According to the Pittsburgh Downtown Partnership, nearly 2 million square feet of office space in this part of the city were converted to mostly apartments or hotels, since 2011. Residential growth in the downtown area was of 40.9 percent between 2000 and 2010, and of 10.5 percent between 2010 and 2013.
Photo credits: Oxford Development Company