The core of Station Square — the struggling restaurant, entertainment and office complex on Pittsburgh’s South Shore — is under new ownership.
Massachusetts-based WS Development announced Friday it purchased a huge chunk of the center along the Monongahela River from New York-based Brookfield Properties.
“Station Square is an iconic place with incredible history and potential, and we’re excited for the opportunity to build on its strong foundation,” Eric Smookler, vice chairman and co-chief investment officer for WS Development, said in a statement to TribLive.
The firm plans to “elevate the retail, dining and entertainment experience while creating new opportunities for office and mixed-use partners,” but it’s too early to name specific tenants, Smookler said.
WS Development declined to say what it paid for its part of Station Square, which encompasses 28 of the site’s 52 acres and 646,000 square feet of mixed-use real estate.
The Sheraton Pittsburgh Hotel at Station Square, Highmark Stadium and the Gateway Clipper each remain under separate ownership.
WS Development has more than 100 properties across the country, many along the water. Its most notable holdings include several towers in Boston’s thriving Seaport District, land next to Fenway Park, home of the Boston Red Sox baseball team, and the Royal Poinciana Plaza in Palm Beach, Fla.
Station Square, a former stop on the Pittsburgh & Lake Erie Railroad, was reborn as a shopping and dining destination in the 1970s. It was quickly hailed as one of the city’s first major redevelopment success stories amid industrial decline, bringing in locals and tourists alike.
Brookfield took over the property in 2018 as part of an $11.4 billion acquisition of Cleveland-based Forest City Realty Trust. But the complex steadily lost its luster.
These days, visitors don’t seem so enthralled, according to Station Square workers and business owners.
As a barista at Yinz Coffee’s Station Square cafe, Emily Malay serves plenty of out-of-towners fresh off a Gateway Clipper tour or trip on the Monongahela Incline. They often ask about the Freight House Shops, an on-site shopping mall that Brookfield spent $30 million converting for other us
Tom Jayson, who opened Homerun Harry’s sports bar in Station Square in 1995, said it was evident early on Brookfield wasn’t committed to the site long term. Projects started by Forest City went unfinished under Brookfield, and there were minimal marketing efforts around Station Square, according to Jayson.
Brookfield also failed to pay back a $403 million loan that helped it buy Forest City, leading its lender in December to demand $143 million in a mortgage foreclosure lawsuit. Lender Wilmington Trust ended the ligitation in June.
The suit came during a string of business closures in Station Square.
Brookfield’s $30 million makeover helped to attract fried chicken franchise Tupelo Honey and climbing gym First Ascent, but twice as many tenants flowed out on its watch.
Buca di Beppo and Joe’s Crab Shack shut down their Station Square locations last year and the Hard Rock Cafe closed in February. Just last month, fast casual restaurant Terrene shuttered after seven years of business.
City Councilwoman Theresa Kail-Smith, whose district includes Station Square, said she received “very little communication” from Brookfield, unlike previous owners.
“I think Station Square needs a boost,” she said. “I’m just hoping the new owners going forward understand the importance… to the residents and the visitors that come here.”
Brookfield did not return a request for comment.
Anthony Hamby, service manager at the Melting Pot in Station Square, wants the new owners to bring more shops and parking to the site.
His restaurant faces the overhauled mall, which is plastered with advertisements courting bakeries, ice cream shops and other prospective tenants.
“Go back in time like 15 years ago, there were twice as many restaurants,” Hamby said.
Despite these challenges, Jayson of Homerun Harry’s feels a turnaround for Station Square is near.
“It’s going to come back,” he said. “There’s no doubt in my mind.”
Posts
