Neither Aaron Stauber, Rugby's president, nor brokers involved in the transaction would disclose the price. On condition of anonymity a local office broker tells GlobeSt.com, "I can only speculate that it went for between $75 per sf and $95 per sf," which would put the tab in the range of $20 million.
The building is fully leased to Allegheny General Hospital, and the master lease runs through June 30, 2011, according to James Geiger, senior vice president of locally based Grant Street Associates Inc., a Cushman & Wakefield affiliate. Gieger tells GlobeSt.com, "there are a handful of small sublet tenants in the building." The 10-story asset was completed in 1976.
US Realty assigned marketing of the building to Jeffrey Shell, senior director of the Cushman & Wakefield capital markets group in Grosse Pointe, MI. Shell and John Ecclestone, associate director of that office, handled the negotiations, working locally with Geiger, who also handles leasing of Rugby's growing Pittsburgh portfolio. Rugby spoke for itself in this transaction.
Stauber says this acquisition takes the company's stake in Pittsburgh "to in excess of two million sf. Our business model considers secondary markets a better value than others," he tells GlobeSt.com. "And, of the secondary markets, Pittsburgh is number one on the list today. We think it's very well positioned for growth in 2007 and beyond and represents solid value. Plus, every transaction there has been a very pleasurable experience."
Among Rugby's Downtown Pittsburgh holdings are the 38-story, 594,254-sf Gulf Tower landmark; the 445,000-sf Frick Building, and numerous historically significant assets in the Cultural District.
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