UPMC buys SouthSide Works building for $25 million
UPMC purchased a four-story office building in SouthSide Works for $25 million, the health system said on Thursday.
UPMC leased the Quantum I building for the past 10 years for billing, scheduling and other administrative offices.
The purchase from South Side-based developer Soffer Organization closed Wednesday, UPMC spokeswoman Susan Manko said.
Soffer wanted to unload Quantum I as it deals with a $49.6 million loan default on the building and two others in SouthSide Works.
Soffer officials could not be reached for comment.
UPMC does not plan to request a property tax exemption for the building, in which about 900 UPMC employees work, Manko said. Western Pennsylvania's dominant health system is the only tenant.
UPMC is the largest private landowner in Allegheny County.
Soffer teamed with Pittsburgh's Urban Redevelopment Authority to develop the 34-acre, $300 million SouthSide Works, with offices, retailers and residences on the site of a former LTV Steel site.
The office occupany rate at the development, which includes the corporate headquarters for clothier American Eagle Outfitters, was about 95 percent on June 30.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or firstname.lastname@example.org.