Also known as the Union Trust Building, the 11-story, 595,000-sf historic Gothic-style structure at 501 Grant St. was designed by renowned local architect Frederick Osterling. It was completed in 1916 and fully renovated in 1987.
Mellon Financial Corp. declined to renew its 15-year master office lease in the second quarter of 2006, leaving the building vacant except for its ground-floor retail. According to published reports, following Mellon's exit, the Florida-based owner defaulted on the mortgage, leaving it in the hands of the mortgage holder, identified as Teal Rock 501 Grant Street LP, which is affiliated with Cigna Corp.
Teal Rock enlisted Ackerman and a CBRE team that also includes Cyra Contractor, to market the building for sale. "We've had interest from all over--Florida, Texas and New York," Ackerman says, adding "especially from New York, where potential buyers love the grandeur of this building and see good value and a lot of upside potential."
It occupies the full block between Grant Street, Oliver Avenue, William Penn Place and Fifth Avenue and features an ornate central rotunda and dome. Because the building is vacant, located in the heart of the CBD, and has entrances on all four sides and two separate elevators, Ackerman says, "It's an ideal candidate for conversion to a hotel, residential condos, or a mix of office and condo. It has the largest floorplates in Pittsburgh," he adds, noting that each is in excess of 50,000 sf.
The retail tenants include Larrimor's, which sells upscale apparel, and Citizens Bank. There's no set date for an end to bidding, but Ackerman expects to close bids in February.
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