Penn Center Blvd, Pittsburgh, PA 15235

Stabilized Cash Flow with Potential Upside

Penn Center East is a 601,117 SF, mixed-use office & retail campus that is currently 66.8% occupied with an in-place rental rate of $18.69/SF and remaining weighted average lease term of 4.0 years. With 199,834 SF available and priced well-below replacement cost, the Property provides investors with an exceptional opportunity to deploy capital with a strong risk-adjusted return through the acquisition and lease-up of this Class A campus. Penn Center East offers a wide range of competitive market rate suites, including move-in ready & customizable suites, that can accommodate small tenants to big block space for large corporate users.

Diverse Office & Retail Tenancy

Out of the total 601,117 SF, 553,849 SF (92.1% of Total GLA) of the Property is office space and there is 47,268 SF (7.9% of Total GLA) of retail space. Currently, there are 71 different office and retail tenants, with 67 office tenants making up 80.6% of Year 1 NOI and 4 retail tenants making up 19.4% of Year 1 NOI. With no single tenant making up more than 7.3% of the Total GLA, this diverse tenancy ultimately provides downside protection against the in-place cash flow and limits overall rent roll risk.

$12 Million of Capital Expenditure Since 2016

Current Ownership has kept the Property professionally maintained at a high standard since 2016 and has invested approximately $12 million of capital expenditures into the Property including Rec333 (Building 8) & other common areas, painting, roof repairs & replacements, site paving, parking lot repairs & replacements, lobby renovations, HVAC systems, mechanical systems, elevators and more.

Premier Visibility & Accessibility

Penn Center East is located directly along William Penn Highway (Route 22) with approximately 1,300 feet of frontage and multiple points of ingress/egress, we well as a signalized traffic light at the intersection of William Penn Highway and Penn Center Boulevard. The Property provides direct access to Interstate 376 (1.5 Miles) and Interstate 76 (3.5 Miles), which are the main east-west thoroughfares in Pittsburgh. These interstates provide access throughout the entire region including Downtown Pittsburgh, Pittsburgh International Airport, University of Pittsburgh, Carnegie Mellon University, and surrounding dense suburban communities & residential rooftops.

Highly Amenitized Campus

Penn Center East offers an unmatched amenity package in the Parkway East with exclusive amenities to tenants including a state-of-the-art fitness center, high-tech conference rooms, tenant lounge with high-end finishes, a bar lounge, and more. On-site retailers, restaurants, and other service-oriented shops that are available within immediate walking and driving distance create opportunistic synergies for tenants and their employees.

Dense Retail Corridor with Low Vacancy

The main Monroeville Retail Corridor spans across approximately 3.5 miles on William Penn Highway (Route 22) and consists of 3.19 Million SF of retail space, with only 4.5% of vacant retail space. The strength of this market, coupled with its limited supply, is further highlighted by Walmart’s recent acquisition of the entire Monroeville Mall. This purchase was made in response to the exceptionally tight market and high barrier to entry for new development in the Monroeville area due to its challenging topography. Walmart plans to fully demolish the Monroeville Mall and replace it with a multi-use development featuring a mix of retail, entertainment, and dining options.