Search
 

Dominion Tower Turnaround Assignment Goes to CBRE

PITTSBURGH, PA-Blackstone Group selects CB Richard Ellis brokers to lease up Dominion Tower, the 32-story, 623,000-sf class A office tower here that it acquired 40% vacant at a sheriff's sale in January for $45.2 million, less than 60% of what the previous owner paid for the asset.

By Brian K. Miller | Updated on April 03, 2005

PITTSBURGH, PA-The Blackstone Group has tapped CB Richard Ellis to lease up Dominion Tower, the 32-story, 623,000-sf class A office tower here that it acquired 40% vacant at a sheriff’s sale in January for $45.2 million. In support of the releasing effort, Blackstone is renovating the lobby and other common areas, enhancing security capabilities and expanding and upgrading the building’s on-site health club. Completed in 1987, the property is located at 625 Liberty Ave. in the city’s central business district. Most of the vacancy was created by Rockwell International, which vacated 94,000 sf in 2002, and Richmond, VA-based Dominion Resources, which acquired the primary tenant, Consolidated Natural Gas Co., in early 2000 and has since reduced its space in the building from 234,000 sf to 180,000 sf. According to published reports, an inability to release those spaces caused then-owner YCP Pittsburgh LP to default on its $50-million mortgage, which was held by Connecticut General Life Insurance Co. YCP bought Dominion Tower for $80 million in 2000. The building was 90% leased at the time of sale.Looking forward, Blackstone’s $72.55-per-sf purchase price should allow it to compete well for tenants. Current market rates range from the low-to mid $20s per sf per year for the lower floors of high-rise class A buildings and from the mid-$20s to the low $30s for the higher floors. Current class A vacancy in the CBD is between 18% and 20%.”We’re certainly being aggressive with good credit tenants seeking longer terms,” CBRE broker Patrick Gruden tells GlobeSt.com. “The building should be at market occupancy or better.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.