Faros Properties has refinanced its $127.5 million debt on Nova Place, an office and datacenter complex in Pittsburgh. Wells Fargo has provided the $140 million refinance, to be split between a $71 million CMBS WFCM 2019-C51 tranche and two independent notes. The 10-year loan is interest-only and carries a 4.19% annual rate.
Faros acquired 100 South Commons, 1 & 2 Allegheny Square in 2015 for $68.4 million and proceeded to invest roughly $56.3 million to upgrade the 1.2 million-square-foot North Shore property. The renovation updated the structural and lighting needs of the 3,000-car garage, added on-site bike storage and breathed new life into the buildings’ outdoor plaza, common areas, lounges and conference rooms. A 10,000-square-foot fitness center was built alongside several restaurants and a coffee shop. As of January 2019, the complex has an appraised value of $200 million.
When the New York-based investment firm bought Nova Place, the property was 63% leased. Since then, the occupancy rate has increased to 84%, with a tenant roster that includes PNC, United Healthcare Services (UHC), Expedient and Alloy 26.
Formerly known as the Allegheny Center, Nova Place is within walking distance from Downtown Pittsburgh, located near both the Children’s Museum of Pittsburgh, the National Aviary and the city’s oldest park, Allegheny Commons. The property sits close to I-376 and I-279, roughly 18 miles south of Pittsburgh International Airport. North Shore has witnessed a comeback in the past 15 years, following the demolition of Three Rivers Stadium and the development of several important projects, including the PNC baseball park and Heinz Field football stadium, along with several entertainment and retail attractions.