Vacant since 2008, the Service Building Project was transformed into 151 market-rate apartments. While maintaining the historic features of the building, the renovation provided energy efficient, cutting-edge design features including 60 micro-units to the existing Heinz housing complex.
The market for micro-units has developed in many cities across the country in order to fill a new demand created by a younger generation of the workforce. As such, there is a higher demand for relatively smaller apartments (approximately 400-500 square feet) for people in their 20’s and 30’s.
Due to the new concept of “home” identified by this younger generation, the conventional “home” is no longer defined by four walls. Rather, “home” has become their apartment as well as the building in which they reside. The building is the central component of the community where they spend their free time.
With that concept in mind, the property offers the most desirable, trendy, interior amenities including multiple community gathering spaces, an on-site bike repair shop, and fitness centers including virtual fitness.
The outdoor space brightens up the surrounding streets with LED lighting and landscaping, as well as an outdoor courtyard with multiple gathering spaces and a fire pit. Located on the North Side of the Alleghany River, directly across from the Strip district, the Service Building is adjacent to the riverfront bike path and less than one mile from the central business district of Pittsburgh.
The building was restored in accordance with the Secretary of the Interior Standards for Rehabilitation making it eligible to receive Federal Historic Tax Credits. The $36 million project generated approximately $7.9 million in Federal Historic Tax Credit equity.
The project received $1.5 million in RCAP grant funding through the State of Pennsylvania. The project created 400 construction jobs, and 15 new permanent jobs. The property, that was not previously on the property tax role, has generated approximately $350,000 in new property taxes annually.
Role: Owner / Developer / Owner’s Representative
Total Project Cost: $37,657,000
Project Schedule: 16-month Construction Schedule