In the coming months, a new residential project from the team that brought Pittsburgh the Cork Factory will open up across the street called Lot 24. And while most look at the project as just another bourgie housing option,the project is actually much more significant in the great scope of market. Its something that if it succeeds could drastically change the landscape of Pittsburgh's housing market.
What makes Lot 24 different isn't the design (though very few have delivered mod apartments like these) or the amenities; its something much more boring but significant, the financing. Lot 24 is the first market built apartment complex of any size/scope the city of Pittsburgh has seen in decades. Some scratch their head on this. But when you look at the projects that have been delivered to date; Cork Factory, Heinz Loft, Southside Works Lofts, the new Southside High project; you realize that they all have one thing in common, soft money. In most cases its the URA working on behalf of the city to bridge the financing but others have federal monies, foundation funds and other sources. But Lot 24 is decidedly different. The team was able to go to the market and get financing purely based on the rental stream that this new building claims it can achieve.
The second reason is that this project will add to solidifying investors, bankers, and otherwise that Pittsburgh is a market that is maturing. Ten years ago, no pension fund or insurance company was looking to Pittsburgh for revenue streams. Yet at Lot 24, it seems that the deal was not only funded but was so competitively, with multiple groups vying for a piece of the pie.