We’re thrilled to begin restoring the Allegheny Building to its rightful position as one of the premier office locations in Pittsburgh. We believe in the strength of the Pittsburgh market, and we plan to continue investing in our existing local properties as we seek additional opportunities here.
PITTSBURGH (PRWEB) August 23, 2018
New York-based King Penguin Opportunity Fund III (KPOF) announced today a new, $19 million loan from Post Road Group that will be used to continue to grow the company’s presence in Pittsburgh. The funding provides capital for numerous improvements to the Allegheny Building at 429 Forbes Avenue, as well as improvements and refinancing for The Pittsburgher at 428 Forbes Avenue in downtown Pittsburgh.
King Penguin will focus much of its efforts on the Allegheny Building, and plans to install a new HVAC system, upgrade power, renovate the lobby, and reconstruct the building’s entrance, which was constructed in 1905 as an annex to the neighboring Frick Building. Stantec Architects’ Pittsburgh office has been tapped for the design projects.
“We’re thrilled to begin restoring the Allegheny Building to its rightful position as one of the premier office locations in Pittsburgh. We believe in the strength of the Pittsburgh market, and we plan to continue investing in our existing local properties as we seek additional opportunities here,” said Edward Rivadeneira and Michael Mikelic, managing principals, King Penguin Opportunity Fund III.
“We are excited about providing King Penguin capital to refinance and improve these two great assets. Both properties offer significant value-add opportunities. They are in prime locations in the heart of Pittsburgh, a market we believe continues to have significant growth potential,” said Jason Carney, Managing Director, Post Road Group.
With approximately $60 million in assets, KPOF currently owns three local properties and is actively looking for more opportunities in the Pittsburgh market. In addition to purchasing the Allegheny Building in 2015, and The Pittsburgher at 428 Forbes Avenue, purchased in 2015, KPOF also purchased Centre City Tower at 650 Smithfield Street in 2016.
KPOF has made dramatic improvements to the Pittsburgher, investing $10 million in improvements and renaming the building to reflect its original use as a prestigious hotel in Pittsburgh in the early part of the 20th century. Upgrades at the Pittsburgher have included building-top signage that replicates the original hotel sign, a new air conditioning system, new elevators, new lobby and a new entrance.
Rivadeneira and Mikelic noted that KPOF plans to make further investments in the Pittsburgher, in addition to its recently added fitness center and free coffee station with Monday bagels for tenants.
“We plan on adding more amenities because we recognize that today's tenants are seeking more benefits to the spaces where they work. For the Pittsburgher, we’re exploring additional upgrades, including hosting events and potentially adding a meditation and yoga room near our fitness center. We are also considering a rooftop deck for tenants to enjoy a break and get fresh air,” said Rivadeneira.
The Pittsburgh office of CBRE Group, Inc. the world’s largest commercial real estate services and investment firm, is leasing agent for The Allegheny Building, The Pittsburgher and Centre City Tower.
About King Penguin Opportunity Fund
Based in New York City with offices in Pittsburgh, Pennsylvania, King Penguin Opportunity Fund was formed to engage in the acquisition and management of multifamily and commercial properties. The company’s vision is to offer an alternative investment option, focused on the multifamily and commercial office sector, which provides income and an element of capital preservation.
About Post Road Group
Post Road Group is a privately held investment firm based in Stamford, CT. Post Road invests equity and debt across various industries, with a focus on real estate, telecommunications, media, technology (TMT), and healthcare services. Post Road’s Real Estate Finance platform provides flexible bridge, mezzanine and preferred equity financing solutions to real estate owners throughout the United States, with a focus on the Northeast, Mid-Atlantic and Southeast regions.