JLL marketing for sale non-performing loan secured by trophy office tower in Pittsburgh

PITTSBURGH, Nov. 21, 2024 - JLL Capital Markets announced today that it is marketing the sale of the non-performing loan secured by One Oxford Centre, a trophy, mixed-use asset totalling more than one million square feet in Pittsburgh, Pennsylvania, led by JLL Executive Managing Director John Pelusi and Senior Managing Director and head of JLL's Pittsburgh Capital Markets team Mark Popovich.

"The sale of the loan will create an attractive reset investment basis relative to other competitive Class A trophy office buildings, including but not limited to PPG Place, Fifth Avenue Place, 625 Liberty Avenue and Liberty Center (a/k/a Federated Hermes), as well as the next tier of CBD office buildings," Pelusi said. "Combined with its iconic skyline panoramic views, efficient floor plates, the Rivers Club, which is Pittsburgh's premier athletic and dining club, the highest ratio of covered attached parking spaces of any trophy Class A building and the best ingress and egress in and out of the CBD, the sale will create an opportunity for One Oxford Centre to offer the most competitive rental rates in the market, and will become the first choice for any office tenant looking for premier Class A office space."

One Oxford Centre, positioned in Pittsburgh's Central Business District, consists of approximately 911,000 square feet of office space, 38,000 square feet of retail space, 72,000 square feet of athletic/dining space, as well as an attached eight-level, 840-space parking garage.

"We're excited to represent the lenders in the sale of this loan as this will be a generational opportunity to reinvent a trophy Class A office building at a significant discount to replacement cost," Popovich added. "Despite some challenging headwinds in the Pittsburgh CBD office market, more broadly we are starting to hit an inflection point in office, with occupancy levels and leasing increasing in many urban markets throughout the country."

According to JLL's Q3 U.S. Office Market Dynamics report, the office availability rate declined for the first time in five years and leasing activity continues to grow after hitting a post-pandemic high in second quarter 2024. Downsizing activity is steadily normalizing, and a record volume of inventory is being removed for conversion and redevelopment. All of this is leading to a tightening office market nationally for the first time since 2019.

JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients - whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The group has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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