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UPMC buys site for possible cancer center expansion
Saturday, February 17, 2007

The University of Pittsburgh Medical Center has a contract to buy an eight-acre site in Shadyside where it may build a new cancer research facility across the street from the Hillman Cancer Center.

The sloped Baum Boulevard property -- at one time slated for a $115 million office-parking-hotel development called Luna Square -- is one of several UPMC real estate plays made along Baum and Centre Avenue over the last 13 months.

Spending more than $13 million, the Oakland hospital giant has acquired:

A 450,000-square-foot building at 5101 Baum once used as an assembly plant by Ford Motor Co. UPMC paid $10 million. There was talk last year about using this building for the new cancer research center, but neighborhood groups vowed to scrutinize any changes UPMC might make to the property. No decision has been made about its ultimate use, UPMC spokeswoman Clare Collins said yesterday.

A parcel at 5200 Baum occupied by a Boston Market restaurant. UPMC paid $1.3 million. The hospital has a preliminary plan for a four-story, 280,000-square-foot medical office building on this plot.

A parcel at 5210-5216 Baum near the Boston Market. UPMC paid $485,000.

A three-story building at 5001 Centre Ave. adjacent to the old Ford assembly plant. UPMC paid $1.75 million..

As soon as UPMC signed the agreement to buy the old Luna Square site, owned by Harmar developer Kratsa Properties, the neighborhood speculation was that UPMC would use the eight-acre site for a cancer research center of 350,000 square feet -- the hospital has been hunting for the right spot over the last year or so.

But Ms. Collins, the hospital spokeswoman, was not willing to confirm that Luna Square was the chosen site. "We have not closed on the property and we have not made a commitment to begin construction," she said, adding: "It is one we are considering."

It is unknown how much UPMC might pay for the site, which sits across the street from the Hillman Cancer Center.

Kratsa could not be reached for comment.

Until recently, Luna Square was touted as a future home for offices, retail and a hotel built atop a 1,500-car parking garage. The development had zoning approvals, a $11.1 million tax-increment financing package and state assistance with water and sewer line access. Kratsa was not available to discuss why the development did not happen.

First published on February 17, 2007 at 12:00 am
Dan Fitzpatrick can be reached at dfitzpatrick@post-gazette.com or 412-263-1752.
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