The Challenge

Piatt Place, owned by Millcraft Industries, is a mixed-use redevelopment project and a majestic redesign of the former Lazarus department store in Pittsburgh's Golden Triangle. Piatt Place is a shining example of urban improvement and is at the heart of the 5th and Forbes revitalization project in Pittsburgh’s CBD.  This project has been a model for public-private partnership utilizing both public and private monies and resources.

Millcraft Industries was committed to making Piatt Place’s 180,000 SF of Class A office space the ideal home for a major tenant. Millcraft Industries was also committed to making The Shoppes at Piatt Place a premier retail street-front which now includes The Capital Grille, TD Ameritrade and McCormick & Schmick’s.

The Solution

Millcraft Industries retained CB Richard Ellis (CBRE) as their exclusive leasing representative for Piatt Place. CBRE’s leasing team launched an earnest effort during 2008 identifying and pursuing a number of prospective major tenants for Piatt Place. As the search continued, time became of the essence due to lender constraints which demanded tenant occupancy not later than 4th quarter of 2009.

After working extensively with the agent who represented the Commonwealth of Pennsylvania, CBRE put together an ambitious proposal for a landlord-sponsored turnkey project. In addition, the steadfast commitment to meet and exceed requests for participation by MBE/WBE, Small Disadvantaged Businesses, and LEED Certification that gave the Commonwealth of Pennsylvania further reason to relocate their offices to Piatt Place.   

The retail leasing focused on attracting the nation’s preeminent restaurants and service tenants, which would serve as an amenity and anchor to the other mixed-use components.  The Capital Grille, TD Ameritrade and McCormick & Schmick’s all have anchored the project and set the tone for the entire development.

The Results
The successful closing of the transaction at the beginning of the 2nd Qtr of 2009 required negotiations with and approvals from numerous government agencies, including the governor of Pennsylvania. The final result was that the landlord secured a high-credit tenant who will lease 180,000 square fee for a 20-year term. This will produce another strategic partnership that will be a beacon for the economic development initiatives that the leadership of the Commonwealth of Pennsylvania has undertaken; and the continued the success of Pittsburgh’s 5th and Forbes revitalization project, a 15-year mission that has spanned three (3) generations of Pittsburgh Mayors.

The retail portion has been the catalyst for the entire retail re-development of downtown Pittsburgh.  Given the success of The Capital Grille, McCormick & Schmick’s and TD Ameritrade, other retailers and restaurateurs have signed leases and opened in the shadow of Piatt Place, thus solidifying its place in the heart of this monumental urban redevelopment.