Developer plans apartments, townhouses at UPMC South Side hospital site

A developer is planning to replace a former hospital on Pittsburgh’s South Side with apartments and townhouses.

Walnut Capital has acquired the 5.5-acre former UPMC South Side hospital complex on Mary, Jane and Josephine streets in the South Side Flats for $9.3 million. The deal was inked in November through an affiliate of Walnut, Collective South Side Agent LLC, according to property records.

UPMC bought the hospital, which was established in 1889, in 1996. The facility lost its hospital designation in 2009 when it closed its emergency room, transferring services across the river to UPMC Mercy in Uptown. It ultimately ceased outpatient services in 2018.

Todd Reidbord, Walnut Capital’s president, said the goal is to create “high-quality residential units” on the site.

“It’s a tough environment to get projects off of the ground right now, but we’re moving ahead with site preparation and employing union labor during all phases of the redevelopment,” Reidbord said.

Walnut Capital will begin demolishing the hospital property next year.

Walnut Capital is known for its work in the East End, where it transformed the former Nabisco factory into Bakery Square. That development is now home to apartments, restaurants, retailers and tech companies like Google and Sheetz’s tech and innovation departments.

North Shore-based PJ Dick, Inc. has been selected as the general union contractor for the South Side project, with Downtown-based Strada as the architect.

“We’re super excited about Walnut Capital’s investment in the South Side,” said Don Berman, executive director of neighborhood organization South Side Community Action Network. “It’s yet another example of the positive assets marking the growth of South Side Pittsburgh’s residential and commerce center.”

The deal will put the property, which had been non-taxable, back onto the city’s tax rolls, noted City Councilperson-elect Bob Charland.

“I live a few blocks away from the site and am excited to show new neighbors what’s so great about this neighborhood,” said Charland. “The South Side is home to a thriving neighborhood business district that, not unlike other city neighborhoods, is remaking itself post-pandemic.”