Pittsburgh's URA provides 1st loan to help convert vacant Downtown office space into housing

Pittsburgh’s Urban Redevelopment Authority is awarding its first loan from a program that aims to help developers create affordable housing in vacant Downtown office space.

Last week, the URA board unanimously approved providing a $300,000, 0% interest loan to Hullett Development Triangle to help it convert unused space in the six-story Triangle Building on Liberty Avenue into 15 apartments.

The project is expected to cost nearly $13.3 million, said David DiBernardo, a lending analyst in the URA’s residential lending department.

“After years of neglect, this building has fallen into disrepair and became completely vacant,” he said. “This project will restore this historic triangle building to its former glory.”

The building was constructed in 1886 and later enlarged. It previously housed five floors of office space with retail space on the first floor.

After the renovation, the building will house 15 apartments, a ground-floor cafe and grocery store space, according to plans presented to the URA board.

Lindsay Powell, who sits on the URA board, said there’s a “massive need” for a grocery store Downtown.

Brett Walsh, the developer, said a florist called The Farmer’s Daughter has already expressed interest in using part of the commercial space. He said he’s in talks with a potential tenant who would bring a “grocery element, prepared foods, restaurant and cafe.”

Three one-bedroom apartments are proposed for affordable housing for people making no more than 50% of the area median income. There also will be five one-bedroom market-rate units, nine two-bedroom market-rate units and a four-bedroom market-rate unit.

Renovation work on the building began in September and is expected to be finished by December, DiBernardo said. Housing should be available at the site by early 2024, he said.

The URA said the the Downtown office conversion program is a way to provide much-needed housing and repurpose offices that have sat empty since much of the city’s workforce shifted to remote work during the covid-19 pandemic.

Pittsburgh dedicated $2.1 million in American Rescue Plan Act funding for the program, partnering with state and county officials in the $9 million pilot effort.

The URA in October said more than 11.3 million square feet of office space sat vacant across 150 buildings in Downtown Pittsburgh.

The program requires affordable housing to be incorporated into projects for at least 40 years.

Related:

• URA moves ahead with project to convert Downtown office space into housing

• Plan to convert unused Pittsburgh office spaces into housing gets $2.1M

• Pittsburgh streamlines process to convert unused Downtown office space into housing