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Rare Pittsburgh Multifamily Comes to Market

PITTSBURGH-When this sale closes, the property will be joining the 19 or so major multifamily trades in this submarket that have closed in the last 14 years.

By Erika Morphy | Updated on March 27, 2008

PITTSBURGH-The Club, an apartment building in the affluent suburb of North Hills, has come onto the market in the last week–a rare event in this city that has seen about 20 major multifamily trades close over the last 14 years. The property, listed by Holliday Fenoglio Fowler LP, is owned by a JV between Capreit and Principal Life Insurance Co., according to HFF principal Nicholas Matt, who is overseeing the sale.

The 370-unit luxury apartment building is unpriced but based on the market’s fundamentals, the scarcity of new product coming online and the complex itself, Matt estimates it will trade at around $30 million. “There is virtually nothing new coming to market,” he tells GlobeSt.com. “Construction costs and market rents don’t justify new building.” Citing the expected $30-million sale price, he notes that a developer couldn’t build the Club at $80,000-$81,000 per unit. “In short you can acquire a good property for a significant discount on the replacement cost.”

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