Decisiveness

Knowledge Plus Alacrity Equals Enormous Success

The managing members of 601w jumped at the opportunity to purchase this trophy asset in a distress sale. Within hours of learning about the opportunity, the managing members of 601w were at the property, and the next day came to terms with the seller. Several days thereafter, a contract to purchase was executed and a non-refundable deposit of $20 million was advanced to the seller.

601w was able to move quickly and decisively to acquire a trophy property, in an exciting and dynamic city, with long- term leases from quality, credit-rated tenants. Financed with a 10-year, fixed rate-loan of 5.61%, the property has been generating a double digit levered return since the inception of 601w’s ownership.

Case Study

US Steel Tower, Pittsburgh

Decisive action leads to a spectacular price.

The 601w Companies Decisiveness Case Study: The U.S. Steel Tower

The U.S. Steel Tower is the tallest skyscraper in Pittsburgh and the fourth highest building in Pennsylvania. Completed in 1970, the Tower has 64 floors and rises to a height of 841 ft. This trophy asset serves as the corporate headquarters of the University of Pittsburgh Medical Center (UPMC), which occupies 800,000 s/f through 2030. UPMC is the largest private employer in the state, with more than 40,000 employees, and annual revenues that exceed $8 billion. The Tower is also anchored by US Steel (430,000 s/f) and PNC Bank (200,000 s/f). These tenants have been in occupancy for 12 and 40 years respectively.

The three anchor tenants lease close to 75% of the property. UPMC and PNC, both with an A+ S&P credit rating, occupy over 50% of the Tower. At present, the property is at 96% occupancy. The property’s 40,000 sq. ft. floor plates are well-suited for both multi & single tenant use and feature an incredibly efficient & unique column-free, open & flexible office area. At the building’s entrance is a large, magnificent plaza that provides a beautiful and serene setting within the heart of Pittsburgh’s urban center. The building features an impressive glass lobby with a 50-foot ceiling situated above terrazzo floors and walls.