Shorenstein Properties to acquire first asset in Pittsburgh

Shorenstein Properties is buying its first assets in Pittsburgh, Pennsylvania.

The investment manager will pay approximately $150m (€138m) for the One Oxford Center office building, its first investment in the market.

The manager is buying the property for its the Shorenstein Realty Investors Eleven fund, which invests in existing value-add assets and developments.

Shorenstein declined to comment on the deal, expected to close this month.

The company, a value-add office buyer, will reposition and renovate the 1m sqft property, investing additional capital for deferred maintenance.

The building, built in 1983, is 81% leased.

Pittsburgh, considered a secondary office market, has received little interest from institutional investors to date, although some believe the market is changing, with technology companies, including Uber, expanding.

Shorenstein has typically invested in the San Francisco Bay Area, Boston, New York City, Chicago and Los Angeles.

It recently closed two $200m deals in Atlanta’s Bank of America Plaza and Philadelphia’s 1700 Market Street, both also for the same fund.

The manager completed a $1.2bn equity raise for the fund in 2014, co-investing $75m.