A long-delayed Station Square apartment project finally may be stirring to life.
Dallas-based developer Trammell Crow Co. hopes to start construction of the 316-unit apartment complex at the South Side entertainment and office complex next summer after securing $3 million in state funding.
“I’m eagerly awaiting this development. We’re excited about this for Station Square to finally have some residential buildings become part of our community there,” said Jim LaRue, director of asset management for Forest City Realty Trust, the Station Square owner.
Trammell Crow has been awarded a $1 million state redevelopment assistance capital grant, $4 million less than it had requested, to help with the project. It also has received a $2 million state multi-modal transportation grant.
James Murray-Coleman, Trammell Crow senior vice president, said the money would be enough to get the project moving. The funds will be used for roads, a bike lane, a riverfront trail and other infrastructure-related improvements, he said.
At one time, Trammell Crow, under its subsidiary High Street Residential, had hoped to have the first apartment units finished by the summer of 2017. But the work was delayed, in part, as the developer waited to see if it would be awarded state funding it deemed critical to the project. It is now working to secure the various city approvals it needs.
“I can’t tell you how excited we are. It’s been a long time. We’ve been working on it for two years,” Mr. Murray-Coleman said.
The complex would be built on the east side of Station Square on land now used mainly for parking. The first apartments would be built next to the Smithfield Street Bridge and would include a mix of one- and two-bedroom units. The average size would be 850 square feet.
In addition to the apartments, the development would include a 320-space parking garage and 5,000 square feet of retail space.
The project is ramping up as some developers are shying away from building apartments in or near Downtown because of fears that the market is becoming oversaturated.
According to the Pittsburgh Downtown Partnership, there are currently 4,339 apartment units located in or near the Golden Triangle and another 3,630 in the pipeline, including the Station Square project.
Despite such numbers, Mr. Murray-Coleman is bullish on the development. He sees the location and the fact that the apartments will be new, built from the ground up, as a selling point. Many Downtown apartments are being retrofitted into old office buildings or stores.
Likewise, Dan Adamski, managing director of the Jones Lang LaSalle real estate firm, believes the project has promise, in part because of the location.
“I think it will succeed because it’s unique and doesn’t have a lot of competition in that neighborhood,” he said. “And the views of the city are going to be one of a kind.”
Trammell Crow also has the option of doing more apartments in future phases. However, Mr. Murray-Coleman said the company may look at offices or a hotel in the second and third phases. The total project budget for all phases is more than $200 million.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
Updated on Oct. 27, 2016: This story has been updated to reflect a change in the size of apartments to be built.
First Published: October 27, 2016, 4:00 a.m.
Updated: October 27, 2016, 4:31 a.m.
