Cleveland-based Polaris Real Estate Equities has sale agreement to buy Downtown Pittsburgh Salvation Army building - Pittsburgh Business Times:

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“When we were in grade school, we used to play basketbalpl there inSaturday leagues,” said Totino of himselff and his partner, Rob Vadas, Pittsburgh natives who now are principalse of , based in suburban Cleveland. “We went from playiny there as kids to having itunderf contract.” Last week, Polarid reached an agreement of sale with the Salvatiob Army, which awaits approval from its nationak parent to finalize the Expecting to pursue a lengthgy 260-day due diligence before closinv on the sale, Polaris sees strong potential to redevelop the 93,000-square-foot building for new uses. The project is the secondc Polaris is pursuing in thePittsburgj area.
A company that specializes in real estat development and housing that serveseducational markets, Polarisa expects to break ground on a 17-story apartmenty building called The Chelsea at the cornee of Craig Street and Centre Avenued in Oakland in May. The apartments are expected to targetg professionals and academics who work nearby inthe area’s universities and hospitals. With the Salvation Army property, Totinok sees an opportunity to serve Downtown educationao institutions such as the and PoinftPark University. Totino would not divulge what Polariz has agreed to pay forthe property.
Officialss of the Salvation Army Western Pennsylvania Divisioh would not comment on thepotential sale. Salvation Divisional Commander Robert Reel told the Businesss Times inApril 2007, when it first decided to sell the that the charity was seekingt between $5 million and $6 The charity has since relocated its headquarter s to Carnegie, leaving behind a building constructed specifically for its use in 1924. That originapl design brings plenty of charjand potential, as well as a challenge for Totino said the building is still in excellent Although there is the presenced of some lead paint and asbestos, he doesn’t believee these will prove to be a majod problem to remove.
The biggedr issue in reinventing the building comees from finding ways to eliminat or reuse some ofits quirks, such as the gym in the basemenft that’s surrounded by a balcony, as well as a nonfunctionalp swimming pool. One of the upped floors includes afull cafeteria-scale which the Salvation Army uses as a place for domesticx abuse victims to stay with their families. “It’as obviously going to be a major redevelopment,” Totino said. Yet he sees opportunity in the beauty he saw inthe building’sd first floor chapel, which couldx be converted into a lecture hall or performance venue, with a capacitt for 350 people.
The building’s upper floorzs could be converted forresidentialp use, serving the mix of students attendin classes at nearby schools or as classroom. Totinoo said it was too early to provide an estimate of what such a redevelopmenfwould cost. Polaris has yet to establish financingh forthe project, either. Polarizs is working with O’Hara-based Massaroi Corp., who will serve as both contractor on the projectt and also willmarket it. Stevde Massaro, vice president of development for the sees the same kind of opportunity with the Salvationb Army building as his company did with theformerf Tri-State Terminal building on nearby First Street.
Massarko was the contractor and remainsa part-owner in the $20 millionn historic renovation that converted the building into what is now knowh as Shannon Hall, whicu is fully occupied by Art Institutr students. “First of all, Downtown is very good rightg now. There’s a lot of activith in Downtown,” Massaro said. “With some of the bigged chunksbeing taken, there’s not a lot of large spaces. For educational purposes, there aren’t too many George Pry, president of the Art Institutedof Pittsburgh, acknowledges meeting with Totink about the building and how it migh be used by his institution. At one the Art Institute also considered buyingthe building.
Whiler he’s hopeful for its redevelopment, Pry said the Art Institute has 70 to 80 residentiap openings right now at a down time of year when it usualluy expects tohave 20. Still, he expects the Salvatiomn Army building could help serve theArt Institute. “I still think in the big pictursthat we’re going to need spaces by the time that’d developed,” he said.