Try Street Terminal – Art Institute of Pittsburgh, Shannon Hall
Project: The Art Institute of Pittsburgh – Shannon Hall
SF: 221,000 SF
Tenant: Education Management Corporation
Financing: Conventional + HTC
HTC Buyer: Bank of America
Development Budget: $27,000,000
Services Provided: Development, HTC Expertise & Construction
Massaro Properties (MP) LLC along with two development partners approached the Art Institute of Pittsburgh (“AI”), which is owned by publicly traded Education Management Corporation about developing student housing for their students. AI is located in the heart of downtown Pittsburgh an urban setting. Therefore any students who wanted to live on “campus” had to walk a long way to housing, which wasn’t in a very safe neighbor and was a concern for AI. MP and its partners brought an abandoned warehouse to AI’s attention. The warehouse sat about 500 feet from AI’s main building providing a convenient location for student housing. The issue became how to turn this old warehouse in student housing. Through the expertise and creativity of the development team, we converted the warehouse into 140 apartment units containing 650 student beds for AI.
Based upon the historic nature and location of the building, the development team was able to sell HTC for the project to Bank of America, which brought significant equity in the project.