Renovation of a mixed-use development in Pittsburgh, Pennsylvania. Completed plans call for the renovation of a eight-story above grade, 63-unit multi-residential development; restaurant; and retail development.

https://www.post-gazette.com/business/development/2025/08/31/downtown-pittsburgh-office-housing/stories/202508290062 On the outside, the 44-story pyramid-topped Gulf Tower appears unchanged. But beyond the historic Downtown skyscraper's front door, everything inside is shifting. A plan to turn the office tower into a luxury hotel and apartments is well underway - one of several conversion projects that form the backbone of a landmark plan to revitalize the Golden Triangle for the third time in Pittsburgh's history. Across Downtown, cranes in Market Square and forklifts in the Cultural District demonstrate that significant pieces of the $600 million project, announced in October by Gov. Josh Shapiro, are moving along. But elsewhere in the corridor, key buildings slated for makeovers remain untouched. Work initially scheduled to start on the 118-year old May Building in June has yet to begin. On Wood Street, the former YWCA building remains empty and in search of a new owner. Pittsburgh Mayor Ed Gainey speaks to the audience during press conference in the city's Cultural District to announce an ambitious $600 million collaborative initiative with local leaders, nonprofits, and the business community, Friday, October 25. This effort aims to make significant investments that will transform downtown Pittsburgh into a vibrant hub for economic growth, culture, and industry. Mark Belko Downtown Pittsburgh would get $600 million under 10-year revitalization plan And months after the governor's announcement, six of the seven residential projects anchoring the plan to reshape Downtown have been delayed. Two projects are stuck in the planning stage amidst rising costs, while a federal funding pause has delayed another. The YWCA building revamp is indefinitely stalled due to legal action against the developer, and if that project falls through, the total number of units the plan hoped to create will drop from nearly 1,000 to about 600. The share of new affordable units, a major component of the Downtown revamp, will also fall to about 260 - nearly 3% of the units city officials have estimated are needed to address the city's affordable housing deficit. "There are now gaps in some of these projects that we are revisiting, especially where these developers are committing to making units affordable," said Lauren Connelly, director of economic development at Allegheny County, "We’re just trying to stay as supportive as we can." After the pandemic, residential conversions became a popular antidote for struggling downtowns nationwide as companies embraced hybrid work and emptied out old buildings to move into smaller, higher quality offices. The number of office-to-residentials conversions across the U.S. jumped over 200% in the last three years alone, a RentCafe study shows. For the first time in a century, the country’s office supply is now on track to shrink. Pittsburgh is a poster-child for the trend. Although the city ranks 28th in metro area size, it has the fifth-highest concentration of office space among all U.S. cities, Ms. Connelly said. Much of that is spread across older buildings that are rapidly losing tenants. State and local officials on Friday announced a $600 million plan to transform downtown Pittsburgh into a vibrant hub for economic growth, culture, and industry. Mark Belko and Madaleine Rubin How a $600 million plan to save Downtown came together in a distinctly Pittsburgh way Plus, with an outdoor entertainment venue under construction in the Cultural District and a revamped Market Square opening next year — both pieces of the Downtown plan — leaders are determined to bring more residents into the Golden Triangle. “Nothing activates a space like people,” Ms. Connelly said. Downtown revitalization plans are not new to Pittsburgh, where public and private officials have come together twice before to save the city center during downturns. And the stakes are high: Steep drops in the value of high-profile buildings are chipping away at Downtown’s tax base, meaning a critical revenue stream — property taxes — is drying up just as the city nears a potential budget crisis. At the same time, tariffs have driven up construction costs as the price of materials hit hardest, including steel and aluminum, rises, data from the Bureau of Labor Statistics shows. Locally, that can create “larger financing gaps” that make it difficult for projects to progress quickly, a spokesperson for the city’s Urban Redevelopment Authority said. The authority is helping to finance several of the Downtown residential projects. Building conversions often require precise interior demolition, an expensive task. In some cases, projects cost up to $100 per square foot more than building new apartments, a Morgan Stanley analysis found. That’s part of the reason why the total costs of at least three residential projects in the Downtown plan have shot up since the plan was first introduced, pushing back the start of construction. "We're working to figure out how we might come into those projects to fill those gaps," said Ms. Connelly. "Construction costs are certainly a piece of that." With resources spread across over 100 municipalities, Allegheny County has not traditionally gotten involved in real estate Downtown, Ms. Connelly said. But it is now, directly committing millions of dollars to residential conversion projects and using new methods to fund construction. Last year, the county started a program that provides tax breaks for up to a decade to new commercial and residential developments that create jobs and contain a certain number of affordable units. Projects in the Downtown plan could be some of the first to participate. Projects included in the Downtown plan Here are the residential projects included in the $600 million revitalization plan, along with the public spaces that are getting makeovers. Residential conversion projects Public space renovations © OpenStreetMap contributors 500 feet Map: Madaleine Rubin/Post-Gazette (research), Ed Yozwick/Post-Gazette (graphic)Created with Datawrapper Locally, the URA has exhausted substantial funding on Downtown’s revamp. The organization has committed more than $17 million to residential projects included in the plan. Nearly 30% of that funding has already closed. Two major projects are approaching a closing and two more are farther off, a URA spokesperson said. Much of that funding stems from a loan program designed for Downtown conversions. After more projects are approved at its September meeting, the URA anticipates that the program, which began accepting applications about two years ago, will hit its funding capacity. Meanwhile, other conversions in the pipeline are still looking for money from the authority. A URA spokesperson said the organization hopes to secure more dollars by the end of the year for the program. In the interim, components of the sweeping Downtown plan are moving forward — including public space makeovers and initiatives to clean up the corridor’s streets. Public and private partners ranging from the Allegheny Conference, developers, banks and the Commonwealth are all engaged. “It’s a significant challenge,” said Ms. Connolly. “We’re just built differently than other Downtowns, so it’s going to take all of us working together.” Ten months after the governor's announcement, here’s where each of the seven office-to-residential conversion projects included in the plan stand: Gulf Tower, 707 Grant St. • Developer: Rugby Realty, owners of the Koppers and Frick Buildings, and Left Lane Development. • Cost: Estimated at $227,000,000 – the most expensive of the residential projects. • Status: Construction started in January. The process was delayed by the unexpected rupture of a water tank in the building, developers said. Once the Golden Triangle’s tallest building and the former headquarters of Gulf Oil, this 44-story skyscraper is soon to become a luxury hotel and apartment building. About 425,000 square feet of office space in the skyscraper will be transformed into 220 residential units, including 24 designated affordable, 129 hotel rooms and ground floor retail space. Developers broke ground on the tower’s fourth floor in January, constructing model units for the apartments as the remaining office tenants steadily moved out of the building and into the nearby Koppers and Frick buildings. By the first week of July, the building was empty. Now, construction is steadily progressing, set back slightly by a water tank rupture in the building last year that significantly damaged its elevator shafts. Developers still expect to finish construction in 2027. When completed, the building will be home to nearly 40% of the new units created by the Downtown plan. Developers secured $10 million in state grants for the project. Funding from a federal loan program is soon to close, but additional private dollars to cover the remaining costs have already been secured, officials said. First and Market Building, 1000 First Ave. • Developer: Beacon Communities, also behind the May Building and two other Downtown residential projects in the pipeline. • Cost: $40 million. • Status: Delayed by about two months. On First Avenue, inside an 11-story brick building, affordable senior housing is coming to Downtown. Beacon Communities is redeveloping an empty office tower into 93 one-bedroom units reserved for elderly residents. Also planned for the building is a yoga room, exercise room, laundry facility and other programs provided in partnership with UMPC, Beacon Communities Executive Vice President Michael Polite said. On-site support services, such as live-in nurses and case managers who can help residents manage their health and finances, will be available, he added. “There are some developments that serve seniors Downtown, but they tend to be worn,” said Mr. Polite. Construction is underway at First and Market, one of seven office-to-residential conversion projects included in Gov. Shapiro’s $600 million plan to revitalize Downtown. (Lucy Schaly/Post-Gazette) Aside from the Gulf Tower, First and Market is the only residential project included in the Downtown plan that is already under construction. Developers broke ground just 10 days after closing on financing for the project at the start of 2025. The $40 million conversion is funded by Pittsburgh’s Housing Authority, more than $4 million in loans from the URA, low-income housing tax credits and other project partners. Beacon Communities has also applied for the county’s Downtown LERTA program. Mr. Polite expected to wrap up construction in June 2026. But as work progresses, that date has been pushed back about two months. “We ran into a few standard issues,” said Mr. Polite. “It’s nothing beyond the budgeted contingency.” The May Building, 111 Fifth Ave. • Developer: Beacon Communities • Cost: $39.2 million, after costs increased. • Status: Delayed due to a federal funding pause. More than a century old, the May Building underwent a major transformation in the 1970s, from an office tower into one of Downtown’s earliest affordable residential high-rises. But the 12-story building has not seen major renovations since, and its infrastructure is in serious need of repair, Mr. Polite said. That’s why the Pittsburgh-based developer stepped in last year to upgrade the building’s roofing, elevators and other needs, modify apartments to meet accessibility standards and increase the number of affordable units. Mr. Polite and his team hoped to break ground in June. But that was before the project spent months stuck in limbo after the future of a federal grant program was thrown into question, part of a massive funding pause by the Trump administration. Beacon Communities in 2023 received a $5.1 million grant from a Department of Housing and Urban Development program that funds upgrades to affordable housing. Mr. Polite planned to use the money to address a leaking HVAC system and other aging infrastructure in the building. But in March, the Trump administration halted the program. Scrambling to save the project, Mr. Polite began working with state and local partners to recoup lost funds. Two months later, the developer received word that the grant was back on, following a court order requiring the government to release the money in a lawsuit against the funding pause. Mr. Polite said the project will soon close on financing, with a $3 million funding commitment from the URA, a $1 million grant from Allegheny County, federal and state tax credits and additional loans. Still, the price tag on the overhaul increased from June to August, and the back-and-forth on federal funding pushed back a groundbreaking, Mr. Polite said. Beacon Communities now hopes to get started in October and wrap up construction in the summer of 2027 - about a year later than they originally planned. The Porter, 601 Grant St. Developer: Oxford Development Company and RDC Design-Build Inc. Cost: More than $42 million. Status: Still in the planning stage while developers line up financing. When the Federal Home Loan Bank announced plans to leave this longstanding office tower on Grant Street in 2023, the building's fate hung in the balance - one of several landmark buildings Downtown caught in the fray after companies downsized following the pandemic. Now the building is getting a second life. Developers plan to convert the entire space into a 165-unit building with 32 apartments designated affordable and ground-floor commercial space. The project was first expected to cost around $42 million, but that number now is up in the air, and developers have not yet closed on financing, an Oxford Development spokesperson said. The URA is expected to contribute about $1 million to the project. The project has already received $3 million in state grants, but is "hanging in the planning phase," the Oxford spokesperson said. 933 Penn Ave. Developer: iPenn Ventures, a group closely affiliated with Rugby Realty, the developers behind the Gulf Tower. Cost: $37.2 million - an increase of at least 7% since 2024. Status: Still in the planning stage while developers line up financing. On Penn Avenue, a fire that tore through a building once home to a wholesale warehouse years ago left the structure permanently damaged. Now, developers are stepping in to repair and transform the space. Brett Walsh, principal of Hulett Properties - which is behind other developments Downtown and in the Strip - is leading plans to turn 933 Penn Ave. into a nine-story, 70-unit apartment building with ground-floor retail space. An amenity floor with a kitchen, theater and music rooms, fitness center, coworking space and outdoor deck are also in the works, along with a dog-washing station. Seven units will be made affordable for residents earning 50% of the area’s median income. The project has received grants from the state and Pittsburgh Downtown Partnership, as well as loans and tax credits. The URA has also committed about $1.6 million to the conversion, though the authority said the source of those funds had not been decided. The total cost of rehabbing the building has increased by more than 7% since plans were introduced, according to URA agenda materials. Rugby Realty chief operating office Larry Walsh, working with iPenn Ventures on the project, said recent construction estimates came in 15% to 20% higher than developers expected, and they are now working to close a widening funding gap. That’s left the project stuck in the planning stage. Plus, during the approval process, the city sent developers back to the drawing board to pay more homage to the building’s industrial past in design plans. That added about four months to the project, Mr. Walsh said. Now, with final plans approved, developers hope to break ground at the end of 2025. City Club Apartments, 305 Wood St. Developer: Undetermined. Cost: Undetermined, but originally set at nearly $118 million. Status: Indefinitely stalled. One of the most ambitious of the residential projects, this renovation of the former YWCA headquarters called for ground-level restaurant space and 294 upper-floor apartments. That’s about a third of the total number of units the Downtown plan was originally projected to add in the corridor. But nine months after the project’s announcement, the building on Wood Street is vacant and its developer has jumped ship. The YWCA on Wood Street, one of seven office-to-residential conversion projects included in Gov. Shapiro’s $600 million plan to revitalize Downtown (Lucy Schaly/Post-Gazette) In February, Union Labor Life Insurance, a lender on the building, filed a foreclosure action against an affiliate of City Club Apartments. The Detroit-based developer owns the property and was set to redevelop it. The insurance company claimed a default on a mortgage for the Downtown building and sought more than $4 million. In May, the court ruled in its favor. But the decision did not call for a property transfer — the City Club Apartments affiliate still legally owns the building. City Club Apartments could not be reached for comment. The company has faced lawsuits in several states concerning hundreds of millions of dollars owed on late payments and loans, Crain’s Detroit Business has reported. Several buildings it owns have fallen into receivership, and phone numbers for its offices in Detroit and Chicago have been disconnected. The stalled development — the second most expensive of the residential projects in the Downtown plan — was awarded nearly $6 million in state grants and the URA planned to contribute another $3.5 million. The authority has had no contact with City Club Apartments, Union Labor Life Insurance or potential new developers since the foreclosure action was filed, a spokesperson said. “We have no knowledge of future plans at the site,” the spokesperson added. “We remain interested in supporting a residential conversion there, including if there were to be a new developer in the future.” Local real estate sources say other developers have expressed interest in the project, while the Allegheny Conference — a key player in the Downtown revitalization plan — said “no formal decision” regarding the property’s future had been shared with it. Smithfield Lofts, 4 Smithfield St. • Developer: Woda Cooper Companies • Cost: $26 million. • Status: On time. Over a century old and almost empty, this 12-story building will get a new life after Ohio-based Woda Cooper Companies completes its first project in the Pittsburgh area. On floors four through 12, the building, dubbed Smithfield Lofts, is getting 46 apartments, with the majority designated affordable. Amenities including a bike storage room, and a community room will anchor the ground floor, while a fitness center is planned for the top floor. The closure of a daycare this past spring left the building’s second floor empty. Developers are now renovating the space, along with existing empty offices on the third floor, for future office tenants. Woda Cooper Companies expects to close on the building’s financing this fall and break ground immediately afterward. The project is set to receive state tax credits and more than $3 million from the URA, including a Downtown conversion program loan and other funding. If all goes as planned, it should open at the end of next year, said Jared Miller, vice president of development at Woda Cooper. Meanwhile, projects to improve public spaces continue to advance and are all on budget and on schedule, local officials said. On the banks of the Allegheny River, the old Goodyear Auto Service store in the Cultural District is gone and construction crews have overtaken a block of Eighth Street to build ArtsLanding, a riverfront venue with a bandshell for concerts, a 1-acre “great lawn,” Downtown’s first playground, and pickleball courts. The Pittsburgh Cultural Trust broke ground on Arts Landing in April and is on track to hold a soft opening ahead of the NFL Draft in the spring. In Market Square, the Pittsburgh Downtown Partnership started an overhaul in April that will limit traffic and increase outdoor dining space. And Point State Park is getting a refresh that includes new paving, upgraded lighting and more recreational activities. The state’s department of conservation and natural resources is leading the effort, and projects on the walkways and fountain are also set to wrap up ahead of the draft. ---------------------------------------------------------------------- P.J. Dick is soliciting bids for the renovation of 933 Penn Avenue located in Pittsburgh, Pennsylvania