Highwoods Properties Acquires PPG Place

PPG Place in Pittsburgh, a six-building Class A office complex, has a new owner this week as Highwoods Properties acquired the property from Mark Associates LP, an affiliate of The Hillman Company, for $214.1 million according to a CoStar Group report. Highwoods will open an office in PPG Place and handle all onsite management functions and CB Richard Ellis will run point on leasing.

"We are thrilled to enter the dynamic Pittsburgh market through the acquisition of the iconic PPG Place office complex," said Ed Fritsch, President and CEO Highwoods Properties. "Pittsburgh has an enviable economy, and is home to eight Fortune 500 companies, two of which are headquartered in PPG Place. Unemployment is equal to that of Washington, well below the national average, and the city boasts a highly skilled, highly dedicated work force."

PPG Place takes up approximately 1.54 million square feet in the heart of downtown Pittsburgh and includes six towers on a three-block site. The buildings were 81% leased at the time of sale with major tenants including PPG Industries, H.J. Heinz, Deloitte & Touche, Morgan Stanley Smith Barney, and Ernst & Young.

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PNC Building New $400M Headquarters

The PNC Financial Services Group, Inc. announced this week that it would be constructing a new skyscraper in Pittsburgh, dubbed the Tower at PNC Plaza, that will serve as the company's new headquarters when complete in 2015. Located at the southeast corner of Fifth Avenue and Wood street, the approximately 40 story, 800,000 square foot building will be "the world's most environmentally friendly skyscraper" according to PNC.

"When the Tower is complete, we will have invested more than $700 million in green buildings at the heart of the city," said James E. Rohr, chairman and chief executive officer of PNC. The Tower will feature a double glass facade, state-of-the-art, high efficiency heating and cooling systems and will be oriented to take advantage of sunlight in workspaces, reducing the need for artificial light during the day. The designers in the Pittsburgh office of Gensler are also currently exploring fuel cells, solar panels, geothermal systems and other alternative power generation sources that will significantly reduce carbon emissions. The Tower will also feature green rooftops to collect rainwater and channel it for use in other parts of the structure.

"A headquarters facility is the cornerstone building of any company's portfolio, embodying company values and business ethics. PNC is making a strong statement by building their forthcoming headquarters to Leadership in Energy and Environmental Design standards," said S. Richard Fedrizzi, president, chief executive officer and founding chairman of the United States Green Building Council.

For more news and information visit Blumberg Capital Partners.