ACRES Capital Originates $33M Loan to Construct, Stabilize Mixed-Use Pittsburgh ProjectOCTOBER 08, 2020
PITTSBURGH, Pa. – (October 8, 2020) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated an approximately $33 million loan to fund the construction and stabilization of 5803 Centre Avenue (the “Property”), a 161-unit multifamily property, which includes 6,000 square feet of ground-floor retail in the Shadyside submarket of Pittsburgh, PA. The loan is provided to borrower Charles Street Investment Partners (“Charles Street”), an experienced real estate investment and development firm that previously partnered with ACRES on its 1118 Sycamore project in Cincinnati, OH, and has completed more than 15 residential projects in the last eight years.
“The Property’s location at the center of Pittsburgh’s recent tech and medical expansions makes it an ideal option for a wide range of residents,” said ACRES Chief Executive Officer and President Mark Fogel. We’re excited to partner once again with Charles Street, a firm that exemplifies high-quality sponsorship, which is especially important given today’s challenging market environment brought on by the global pandemic.”
The Property is located within walking distance of two hospitals—the University of Pittsburgh Medical Center (UPMC) Shadyside Hospital and UPMC Children’s Hospital — with a combined 1,700 physician positions. Additionally, a 500-employee Google corporate office is within walking distance, allowing 5803 Centre Avenue to cater to tech professionals in addition to those in the medical community. Also in proximity is Carnegie Mellon, the University of Pittsburgh, Uber and the National Robotics Engineering Center, as well as numerous shopping, dining and entertainment options including Whole Foods, Trader Joe’s, Target and Apple Store locations.
Jason Pollack of Charles Street stated, “The ACRES team once again delivered on their promises to provide a creative and flexible financing solution that will allow us to fully realize our vision for this property. As Pittsburgh and the rest of the nation look toward their recoveries from the pandemic, we anticipate that 5803 Centre Avenue will be a highly attractive and convenient option for residents in the Shadyside submarket once it comes online.”
Pittsburgh has historically weathered recessions better than other major American cities, adding jobs during the Great Financial Crisis in the late 2000s as others were losing them. Eight Fortune 500 companies and six of the top 300 U.S. law firms are headquartered in the area, and the regional presence of prestigious companies such as RAND Corporation, BNY Mellon, Nova, FedEx and Bayer have helped make Pittsburgh the sixth-best city in the country for job growth.
Shadyside, which is a part of the larger Greater Downtown submarket, has seen a significant rebirth due to the development of its adjoining neighborhoods to the southwest. Residents can drive to the Pittsburgh Central Business District in about 15 minutes, and Pittsburgh International Airport in approximately 30 minutes.
ACRES is a balance sheet lender and SEC-registered investment adviser that provides debt capital solutions for the commercial real estate industry on a nationwide platform. ACRES seeks opportunities in the $10 million to $75 million range on stabilized and transitional properties including multifamily, retail, office, hospitality, and industrial. As of September 30, 2020, ACRES has closed over $1.6 billion of transactions.