KNOWLEDGE PLUS
ALACRITY EQUALS
ENORMOUS SUCCESS
The principals of 601W seized the opportunity to purchase this trophy asset in a distressed sale. Within hours of learning about the opportunity, the principals of 601W were at the Property and came to terms with the seller the following day. Within several days, a contract to purchase was executed and a non-refundable deposit of $20 million was advanced to the seller. 601W moved quickly and decisively to acquire this exceptional Property in an exciting and dynamic city, with long-term leases from quality, credit-rated tenants. Financed with a 10-year fixed-rate loan, this trophy property has been generating a significant return since the inception of 601W’s ownership.
SUCCESS STORY
TROPHY ASSET AT $107
PER SQUARE FOOT
600 GRANT ST. PITTSBURGH, PA
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SQUARE FOOTAGE
2.3M
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PURCHASE PRICE
$250M
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EQUITY INVESTED
$85M
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DEBT
$220M
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OCCUPANCY
95%
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NOI
$23M
The U.S. Steel Tower is the largest skyscraper in Pittsburgh and the fourth tallest building in Pennsylvania. Completed in 1970, the Tower has 64 floors and rises to a height of 841 feet. This trophy asset serves as the corporate headquarters of the University of Pittsburgh Medical Center (UPMC), which occupies 1 million square feet through 2030. UPMC is the largest private employer in the state, with more than 60,000 employees, and annual revenues that exceed $15 billion. The Tower is also anchored by U.S. Steel (200,000 square feet) and PNC Bank (120,000 square feet). These two tenants have been in occupancy for 45 and 15 years, respectively. These three anchor tenants lease 60% of the property collectively. Since 601W’s acquisition, the Property’s lobby and elevators have been completely renovated and modernized. The Property has steadily maintained an occupancy in excess of 90%. The 40,000-square-feet floor plates are well-suited for both multiple and single tenant use and feature an incredibly efficient, unique, column-free, open and 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.
601W’s decisiveness and tenacity resulted in its acquisition of this trophy Property at an exceptional price of $107 per square foot. The average price for a class A office building in Pittsburgh over the past five years had been $175 per square foot!