Upscale East End complex points to housing shift in Pittsburgh

Published: Thursday, June 12, 2014, 11:03p.m.

Walnut Capital opened its first Bakery Living apartment building to tenants on June 1 with about two-thirds of the 175 units under lease, and the Shadyside developer predicts the rest will be off the market by Labor Day.

It's the fastest lease-up I've ever experienced, said Gregg M. Perelman, managing partner of Walnut Capital, which has developed more than 1,500 housing units locally.

The five-story, multi-colored Bakery Living building along Penn Avenue in the East End, part of the booming Bakery Square complex, is the first housing project that Walnut Capital is building from the ground up. The developer plans to start building another 175-unit Bakery Living apartment building in January, with an opening planned in mid-2016, Perelman said.

It ushers in a wave of similar projects planned across the city upscale, amenity-laden apartment buildings being built from scratch that cater largely to young professionals and empty nesters, with major projects planned in areas such as the South Side, Strip District and East End.

The projects are cropping up as residential demand soars. CBRE, a commercial brokerage firm, said last month that Pittsburgh's apartment rental vacancy rate ranks among the nation's lowest at 3.1 percent, below its historic average of 4.9 percent.

It's a great thing for the city when the driver for the housing market is high-end housing that is catering to young professionals. This is really a new frontier for the city, said Kevin Acklin, who is chief of staff and chief development officer for Mayor Bill Peduto.

Acklin said city officials are looking to throw gas on the fire to promote further high-end development but cautioned, We also need to provide for investment in affordable housing options to ensure we have a balanced approach.

At Bakery Living, carpet-cleaning robots roam the hallways. A dog-washing room is on the first floor, along with bicycle storage rooms and a fitness center with access to a bicycle trail under construction. Rain gardens and porous pavement will reduce stormwater runoff. Retractable walls open an indoor pool to an outdoor lounge and sun deck, and more lounges are inside hot spots for social gatherings.

Dan Siconolfi, 29, moved into the building last Friday from Baltimore. On Sunday, the doctoral student in public health got to meet other tenants at a so-called Bloody Mary Brunch and cookout, organized by Walnut Capital.

Go here to read the rest:
Upscale East End complex points to housing shift in Pittsburgh