2000 Park Lane Drive, a 234,859 square foot, seven-story, Class A office property in Pittsburgh, was acquired for $41.4 million, which equates to $176 per square foot, by Property Income Advisors Inc., which was advising a Gulf-based client.
The LEED Certified office property, constructed in 1993, was 91 percent leased at closing. Cigna, the global health services company, occupies 67 percent of Park Lane and Cabot Oil, a natural gas provider with significant operations in the region, occupies another 24 percent of the property.
According to Property Income Advisors, the investment will generate very strong current income and provide the opportunity for an above-average capital gain with the leasing of the existing vacancy and as the lease expirations are addressed over the holding period. The price per square foot was well-below replacement cost and this low basis should help to limit downside market risk.