Developers across the nation are having a hard time right now getting the financial backing for their building projects; however, in our beautiful Pittsburgh real estate market, a new boost is coming!

The Pittsburgh Downtown Partnership has the remedy for some of the local developers: a $3.5 million revolving loan program launched Wednesday designed to assist property owners and developers looking to convert vacant or underused upper floors of Pittsburgh Downtown buildings into beautiful Pittsburgh Apartments or luxury Pittsburgh condominiums.

"These projects are hard to finance in the conventional sense. This is that extra help, the extra support, that will help to get the projects done," said Patty Burk, vice-president of housing and economic development for the Pittsburgh Downtown Partnership.

The loans are available for projects in buildings up to eight stories high and if they fit the guidelines, developers or building owners could be eligible for:

    loans that cover up to half of the total project cost
    $500,000
    $75,000 per residential unity

The loan money can be used for sprinklers, elevators, stairs, roofs and for other residential-related purposes to refurbish the empty spaces into moderately priced, yet luxurious units in the downton Pittsburgh real estate area.

Patty Burk said, based on partnership surveys, more than 95% of rental units Downtown are occupied and Millcraft Industries has a list of 300 people interested in renting the 46 apartments to be available this summer at Market Square Place.

Pittsburgh Downtown Condo Real Estate is also growing in high demand, and most of the developer projects in planing stages have been priced from $300,000 to more than $1 million, making them perfect candidates for the new Pittsburgh Downtown Partnership loans.

The Pittsburgh Downtown Partnership is hoping the loan program will provide some incentive for building owners to develop more moderately priced units and they hope to close on loans for four projects by the end of the year.

What does that mean for all the rest of us? If the developers are able to turn vacant spaces into moderately priced, fashionable downtown Pittsburgh real estate, and the demand for Pittsburgh downtown real estate stays as high as it is right now, we may see the real estate and construction businesses start to bounce back in our area. All we can do is wait and see, and hope for the best from the new Pittsburgh Downtown Partnership loan incentives.

In the meantime, let me know if you would like more information on these new Downtown Pittsburgh Condos, and if downtown living isn’t your thing, take a look around the warm community of Peters Township and contact me for all your Peters Township real estate questions and answers.

Until next time,
Jim