Tim Schooley, Pittsburgh Business Times
Minnesota-based U.S. Bank said the $15.7 million in funding was in the form of New Market and Historic Tax Credits to assist with the building’s renovation.
The bank added the funding was partly made possible by New Markets tax credit allocations by Consortium America, a Washington, D.C.-based community development intermediary controlled by Trammell Crow Co., and Pittsburgh Urban Initiatives, a tax credit affiliate of the Urban Redevelopment Authority of Pittsburgh.
McKnight Realty Partners, which owns the Oliver building, has been working to build out a new 225-unit Embassy Suites Hotel within the historic property.
The $4 million grant from the state was awarded to a partnership of McKnight and Millcraft Investments to build the new 350 Oliver, a $60 million redevelopment plan to replace a former Saks department store with a mixed-use project that will include a 585-space garage, some of which will be for the dedicated use of the hotel.
The combined total development cost of the new 350 Oliver project and the Oliver building renovation is estimated to be more than $130 million.