An urban, light-distribution industrial property in North Pittsburgh sold for $3.55 million, or $110.94 per square foot, setting a new pricing benchmark and signaling strength in the market.
For its milestone pricing and contribution to the growth and diversification of the Pittsburgh market, the deal was given a 2024 CoStar Impact Award for sale/acquisition of the year by a panel of judges who are experts in the market.
According to a nomination: "The ripple effect of this sale is expected to influence future pricing strategies and reshape the dynamics of the industrial real estate sector in the region.
"The sale of 1301 Beaver Avenue was not only notable for its financial aspects but also for the innovative measures adopted throughout the entire process. From groundbreaking marketing strategies and virtual property tours to streamlined bid collection, and advanced due diligence elements, the transaction set a precedent for leveraging technology and modern methodologies in the real estate sector. This emphasis on innovation not only showcased the adaptability of the parties involved but also demonstrated a forward-thinking approach to deal-making in the dynamic industrial real estate landscape."
The property is located on a 2.7-acre lot and features a 32,000-square-foot building dating to 1952, which at the time of the sale was fully leased. Tenants include the Allegheny Library Association, Cully Glass Corp., A&R Health Services, Lingo Staffing Inc. and Pittsburgh Transportation Co.
The buyer, Regency Transportation Group, "was drawn to the property for its large parking lot for their transportation business with rental income coming from the building," according to the CoStar sales record. Regency is a chauffeured transportation company.
About the Deal: Newmark brokered the sale of an urban, light-distribution industrial property at 1301 Beaver Ave. in Pittsburgh for $3.55 million, or $110.94 per square foot, to Regency Transportation Group. The 32,000-square-foot building was 100% leased at the time of the sale.
What the Judges Said: "There were very few similar sales in our market and this helped to keep values at a fair level, " said Patrick Sentner, executive vice president, Colliers. Mike Heinricher, director of asset management for RIDC of Southwestern PA, said the sale retained businesses, jobs and tax base within the city limits.
They Made it Happen: Howard West, director, Newmark; Kevin Spence, managing director, Newmark.