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Pittsburgh region a hub of Main Street retail trend
Friday, June 22, 2007

Developers working on Pittsburgh-area projects worth tens of millions of dollars are going to town -- from suburban projects trying to re-create town centers to urban projects trying to revamp what's already there.

From the 800,000-square-foot Southpointe Town Center in Washington County meant to capture the ambiance of Main Street, with stores, offices and residential spaces to the development of the seven-story Armstrong Cork factory in the Strip District as a place to live, the trend is toward more distinctive architecture and layering shopping with workplaces and homes.

"Pittsburgh is looking for a unique product. Cookie cutter isn't working," said Katie Pliscott, who is working to lease retail space at a garage built to serve the Strip District project.

The theme carried through a number of the developments discussed yesterday at the annual retail real estate industry gathering sponsored by the International Council of Shopping Centers. This year's event drew more than 400 people to the Westin Convention Center hotel, Downtown.

The trend is evident in Faison Enterprises' 600,000-square-foot Settlers Ridge project in Robinson as well as Millcraft Industries' plans for the former Lazarus and G.C. Murphy stores Downtown.

Lucas Piatt, vice president of real estate for Millcraft, noted with some bemusement that 10 years ago his company was working hard to convince people to come to the suburbs. Before Millcraft decided to tackle Downtown, its signature project was the sprawling Southpointe office and residential development near Canonsburg.

It will be a challenge to bring new life to the Fifth and Forbes avenue area Downtown, he told the audience assembled to hear the views of a group of nine developers on their projects and the region's prospects.

Millcraft expects a new Capital Grille restaurant to be open in the former Lazarus building later this summer as work continues on a $65 million project to turn the former department store into retail, office and residential space. The former G.C. Murphy project, priced at $32 million, recently won an agreement to turn part of the space into a new YMCA.

As early as 2009, Mr. Piatt said the company would like to get to work on the third piece of its Downtown plan with a residential property at the corner of Forbes and Wood to be called The Gardens. He said the project could costs upwards of $90 million.

"We like the urban projects because we really look at it as fixing what's broken," he said, adding that retailers looking for a special place to serve the entire market really ought to look to Downtown as the region's hub.

Ms. Pliscott, also seeking a few visionary retailers or restaurateurs, offered proof of the growing appeal of urban living by noting 55 percent of the Armstrong Cork's almost 300 luxury apartments have been leased since March. Work on a new marina has begun.

Talk at the real estate gathering wasn't all about development projects. As usual, a number of retailers turned up to alert property owners and real estate brokers that they are on the hunt for locations.

Tijuana Flats Burrito Co., a restaurant chain based in Orlando, Fla., plans to open its first area location at Brentwood Towne Square in August but the franchise operator has the right to put several more sites in Allegheny and Butler counties.

Hair salon chain Great Clips, out of Minneapolis, has sites in the market already and plans to add several more in the next two years, said Dan McCall, real estate manager.

Proof that his pitch was targeted to landlords, Mr. McCall promised decisions on new locations can be made quickly, adding, "We pay our rent on time." He also said sites in more affluent areas tend to see customers getting their hair done much more frequently.

Other tenants looking for sites included office services chain FedEx Kinko's, Ace Hardware, grocery chain Aldi and First Watch, a restaurant company that opened its first area site in Cranberry this spring.

First published on June 21, 2007 at 7:58 pm
Teresa F. Lindeman can be reached at tlindeman@post-gazette.com or at 412-263-2018.
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