For Immediate Release - April 20, 2009
Contact: Hollie Geitner
(412) 325-0153
(412) 780-6709 – cell
hgeitner@downtownpittsburgh.com
PITTSBURGH, PA — The Pittsburgh Downtown Partnership (PDP) announces its plans to lend money to building owners and developers in the Golden Triangle who want to convert un-used and/or underutilized upstairs space into residential use. Through its Vacant Upper Floors Loan Fund Program, the PDP will provide gap financing to owners of buildings with up to eight floors of potential residential development.
“It’s a challenging time for owners and developers to take on real estate projects right now,” said Richard Beynon, President, Beynon and Company, Inc. and PDP Board Vice-Chair. “The Vacant Upper Floors Loan Fund is geared towards helping building owners maximize their building’s value in downtown Pittsburgh with residential units, which under normal financing conditions, would be too costly for them to do.”
The $3.5 million program is funded through investments by public and private investors, including the Heinz Endowments and the City of Pittsburgh’s Urban Redevelopment Authority and is administered by the PDP. Those interested can apply for loans up to 50 percent of the total project cost, $500,000 or $75,000 per residential unit, whichever is less. The PDP plans to close on four projects by year’s end.
“An assessment in 2005 discovered there are at least 135 prime candidates for the program in the Golden Triangle,” said Beynon. “We hope anyone who has vacant upper floors will consider this as an option to revitalize un-used space and ultimately to create more housing Downtown.”
Dollar Bank is the servicing contractor for the Vacant Upper Floors Loan Fund. Considered a revolving loan fund, special emphasis will be given to projects that can return the funds quickly. Once an application has been submitted, members of the loan review committee (representing local banks and real estate-related organizations) will review and evaluate each one according to the following criteria:
1. Owner/Developer (financial condition/status, review of project team, management ability, etc.)
2. Project Evaluation (projected income and expenses, value of assets and collateral, marketing plan, etc.)
3. Community Benefit (participation in green building program, compliance with historic restoration standards, impact on neighborhood quality of life, support and participation by minority- and woman-owned business enterprises, etc.)
The Vacant Upper Floors Loan Fund is the third and final phase of a multi-year PDP Housing program that was created to help building owners understand the profit potential in their vacant upper floors. It began in 2004 with the release of, “The Vacant Upper Floors Project: A pre-development guide for the residential adaptive use of Downtown buildings.” In 2006, the PDP launched its architectural consulting program which provided free pre-development consultation and schematic drawings for building owners considering renovation of their vacant upper floors. Now, the Loan Fund completes the circle by assisting with the financing of the projects.
“While we announced the Loan Fund in 2008, this third phase has taken longer than anticipated to implement because we’ve been working out the terms with project investors, however all of the papers have been signed and we’re actively seeking applications,” said Patty Burk, PDP Vice President of Housing and Economic Development. “Consumer demand is high for Downtown living, and with other development projects underway in the Golden Triangle, this is a great time to get started on a residential project.”
More information about the Vacant Upper Floors program and Loan Fund is available on the website, www.DowntownPittsburgh.com.
About the Pittsburgh Downtown Partnership
The Pittsburgh Downtown Partnership (PDP), celebrating its 15th year, is a dynamic, nonprofit organization comprised of business and community leaders, property owners, civic organizations, foundations and residents who provide energy, vision and advocacy for Downtown Pittsburgh. Working collaboratively with its partners, the PDP strives to create a positive Downtown experience for residents, workers and visitors alike. The PDP’s strategic initiatives include clean and safe services, transportation, housing and economic development and advocacy. For more information, visit www.DowntownPittsburgh.com.
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