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PITTSBURGH-PNC Financial Services Group Inc. has selected Toronto-based Fairmont Hotels & Resorts to operate the hotel and residential condo component of Three PNC Plaza. The 23-story, 780,000-sf complex at Fifth Avenue and Market Street includes 326,000 sf of office space, which is fully preleased, approximately half each to PNC and the locally based Reed Smith law firm.
The hotel encompasses 185 guest rooms and approximately 28 for-sale residential condos on floors 14 through 23, plus a 6,000-sf ballroom, 8,000-sf spa and fitness center, lobby lounge, bar and restaurant on the lower-floor entrance. Cliff Schultz in the local office of Howard Hanna Real Estate is heading the condo marketing team. At GlobeSt.com press time he was about to attend a meeting at which details, including sizes and pricing for what will now be called the Residences at the Fairmont, will be finalized.
Some of the smaller, 1,200-sf, one-bedroom condos may end up being combined, Schultz says. Initial plans call for three units each on floors 14 through 21 and two each on the top two floors. Separate elevators will serve the hotel and residential components.
Oxford Development Co., also based here, is the developer, and the building is being constructed to achieve LEED's green building certification. "This will be Fairmont's first ground-up green building," a PNC spokeswoman tells GlobeSt.com, "Although it has a green building retrofit program under way, which makes it very complementary to our plans."
PNC's commitment to building green "complements our own philosophy of operational sustainability and responsible tourism within the hotel industry," says William Fatt, Fairmont's CEO, in a statement. He describes the existing Fairmont Green Partnership Program as "a comprehensive approach to reducing our hotels' impact on the environment."
Construction cost of the complex is $178 million, as GlobeSt.com previously reported. This is approximately $8 million more than the original estimate, and the increase is attributed to an increase in the number of hotel guest rooms from 158 to 185 along with upgrades to the residential component. The state, city, school district and county provided a $30-million incentive package for the project, and PNC is picking up the rest of the tab. The complex is on land owned by PNC, and it will continue to own the complex. Completion is scheduled for summer 2009.
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