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Class A Pittsburgh Office Building for Sale

Thursday, December 01, 2016

Equitable Resources Building for sale in PittsburghHolliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing the Equitable Resources Building for sale. Located at 225 North Shore Drive in Pittsburgh, this core offering comprises a six-story, Class A office building containing 178,049 rentable square feet. Equitable Resources Building represents an excellent opportunity to acquire a best-in-class building that is currently 100 percent leased with a weighted average lease term of 9.1 years in one of the nation’s top office markets. Investors will benefit from the near-term cash yields and long-term capital appreciation provided by this premier investment opportunity.

The commercial property for sale was built in 2005 and has been maintained since then to institutional trophy quality. EQT Corporation (Moody’s: Baa3, S&P: BBB), a leader in the oil and natural gas industry, guarantees its lease, which constitutes 88 percent of the rentable area. Hyde Park Steak House and McFadden’s Restaurant occupy the first floor retail space.

Equitable Resources Building is located in the area known locally as the North Shore, which is bound on its northern and eastern sides by Interstate 279, the Allegheny River on its southern side and Interstate 579 to the west. The North Shore is directly across the Allegheny River from downtown Pittsburgh and is situated between Heinz Field and PNC Park. The immediate area benefits the property and its tenants, as the office building for sale is immediately accessible from more than seven major routes, providing access to all neighborhoods and suburbs of Pittsburgh. Downtown is just a short walk across the bridge and can also be accessed via the Pittsburgh Light Rail. In comparison with downtown, parking is considerably cheaper and more abundant on the North Shore. There are many up-and-coming restaurants located within a few blocks of the property, and there is an abundance of development projects in the greater downtown area, which add to the vibrancy and activity in the immediate area.

The Pittsburgh region, especially the greater downtown area, have high barriers to entry for commercial real estate development. These barriers result from the density of existing development as well as challenging topography and limited development sites. As a result, new competing supply is likely to be severely constrained in the long term.

Office Building for Sale Investment Highlights

  • Equitable Resource BuildingLong-Term Lease with High-Quality Credit Tenant:  EQT Corporation remains responsible for its lease for 157,387 square feet of the property through December 2025. EQT is a petroleum and natural gas exploration and pipeline company headquartered in Pittsburgh with credit ratings of Baa3 and BBB from Moody’s and Standard & Poor’s, respectively. Both of these are high-quality, investment-grade credit ratings. This long-term lease ensures strong long-term rental income from a very high-quality tenant.
  • Institutional-Quality Asset with Market-Leading Amenities:  Equitable Resources Building was constructed in 2005, when EQT Corporation (then Equitable Resources, Inc.) took initial occupancy as its headquarters. Because it was built for a corporate user rather than speculative users, the property was constructed to the highest standards of quality. Since then, it has been maintained to institutional trophy quality. Furthermore, the property features various amenities, including a security desk, extensive fitness center, 81-space underground parking garage, tenant kitchen and break room on each floor, coveted riverfront and downtown views and access to the riverfront’s walking and biking trails.
  • Top-Performing Office Market:  The Pittsburgh CBD and Greater Downtown submarkets have been consistently strong submarkets for Class A office space. The Greater Downtown Class A submarket was 94.6 percent occupied with an average gross rental rate of $24.35 at the end of 2Q 2016. Additionally, the Class A office buildings with which the property directly competes are primarily in the Pittsburgh CBD, which is consistently one of the tightest office markets in the country.
  • Unencumbered Offering:  The Pittsburgh property will be sold free and clear of debt, providing investors the opportunity to take advantage of historically low interest rates and a wide range of financing options to best serve their individual needs.

Office Building for sale in PittsburghEquitable Resources Building is a Pittsburgh office building for sale that is an institutional quality asset with market-leading amenities and a long-term lease to a high-quality credit tenant in a top-performing office market in a premiere North Shore location with high barriers to entry. For more information on this commercial property for sale or others in the Pittsburgh area, please contact HFF Managing Director Claudia Steeb or Executive Managing Director Gerard Sansosti in HFF’s Pittsburgh office. The call for offers date is December 12, 2016.





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