Private Market Real Estate Offering Announced For Mixed-Use Redevelopment In Downtown Pittsburgh

A new private market offering is available for a redevelopment project to reposition a centrally located downtown Pittsburgh property. 

The equity investment offering in 300 Sixth Ave. entails converting GNC Holding Inc.’s former headquarters into a mixed-use development. The 218,255-square-foot building will have 253 apartments and nearly 14,000 square feet of ground-floor retail space, according to offering sponsor GPG-Victrix.

Legendary architect Daniel Burnham designed the building, which opened as a department store in 1904. Because of its historic nature, the building will receive a projected $9.5 million in historic tax credits. Burnham also designed Chicago’s Montauk Building, considered to be the world’s first skyscraper. 

GPG-Victrix acquired the property in September 2021 for $9.85 million. With the favorable acquisition cost and tax benefits, GPG-Victrix projects a 20% discount compared to the cost of ground-up development. 

The demand for multifamily housing is expected to be strong when the development is completed. The project is in downtown Pittsburgh’s Golden Triangle neighborhood and is surrounded by more than 300 restaurants, 230 retailers and numerous employers. 

The building’s amenities will include a large fitness center, tenant lounge, leasing management office and rooftop deck. Construction is expected to be completed in October 2024. 

• Minimum investment: $35,000
• Target internal rate of return (IRR): 22.9%
• Target equity multiple: 2.94x
• Target cash yield: 7.7%
• Target investment term: seven years

GPG-Victrix is an affiliate of Gordon Property Group, a real estate investment firm with over 55 years of experience in assembling, developing and operating an expansive real estate portfolio. GPG-Victrix was created to convert underused office buildings into multifamily and mixed-use assets, maximizing potential returns. The group has extensive experience with similar projects, including redeveloping and repositioning seven comparable projects valued at $370 million. 

The 300 Sixth Ave. equity investment is being raised through the RealtyMogul platform. The investment window opening is expected to be announced in the immediate future.

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Photo: Courtesy of RealtyMogul