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It has all the hallmarks of a project abandoned: insulation torn out, strewn across the floor alongside construction materials. A lone coffee cup sits atop a stack of boards, left for months.
The former YWCA of Greater Pittsburgh building on Wood Street in Downtown still bears signs for what was once the headquarters, purchased for $4 million by Michigan-based City Club Apartments in 2022 for a promised apartment renovation.
But a federally appointed receiver could seek a new buyer, with the permission of mortgage holder Union Labor Life Insurance Co. Union Labor sued City Club in February, and a judge ruled in early May that the owner owes more than $3.8 million plus interest for defaulting on the mortgage.
Now, it’s not clear what’s next for the prominent building, which city, state, and local officials touted in October as part of a $600 million Downtown revitalization. The owner promised a renovation to include nearly 300 apartment units with restaurant and retail space.
“The city is aware of the recent legal developments involving City Club Apartments and is closely monitoring the situation,” said Olga George, press secretary for Mayor Ed Gainey. “While these circumstances have understandably raised questions, it’s important to emphasize that the city remains committed to the revitalization of Downtown and continues to view the YWCA project as a vital part of that vision.”
Martin Perry, senior managing director for real estate company Newmark, was appointed as a receiver to take over the property. A court-appointed receiver is a third party tasked with managing the property.
The company declined to comment, and Perry did not respond to requests seeking comment.
City Club Apartments, headed by CEO Jonathan Holtzman, lined up millions in public funding to redevelop it into a 24-story apartment building, though none of that funding was distributed. As of Thursday, there was no phone listed for his company, and no attorney was listed in court documents.
Union Labor Life Insurance Co. and its attorney Robert Dauer of Meyer, Unkovic & Scott did not respond to requests for comment.
City Club Apartments failed to respond to the complaint, one of at least five brought against the company in cases across the country.
Leaders say they are still open to throwing public dollars behind a development for the space. It housed the Y’s headquarters for nearly 60 years. Mandarin Gourmet restaurant and Point Park University’s Center for Media Innovation were located on the first floor of the four-story building.
The Urban Redevelopment Authority of Pittsburgh authorized up to $3.5 million for the project in November but did not close on financing.
“We are still interested in supporting a residential development at that site,” said Dana Bohince, URA communications manager.
The renovation was a part of the larger $600 million Downtown revitalization that would, among other things, preserve or create 1,000 residential units. Almost a third of those would come from the YWCA renovation.
The state awarded $5.5 million in grants through the Redevelopment Assistance Capital Program under Gov. Josh Shapiro and Gov. Tom Wolf. RACP is a reimbursement-based grant program, so funding is only spent if a project begins.
“DCED is aware of the recent challenges facing the development of the City Club Apartments and we are continuing to work with our partners across all sectors to ensure the successful redevelopment of downtown Pittsburgh,” said Justin Backover, press secretary for the state Department of Community & Economic Development.
Councilmember Daniel Lavelle, who represents parts of Downtown including where the former YWCA building is located, did not respond to requests for comment.
Header image by Caleb McCartney.
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