The sale could take place before the end of this year.
New York-based developer Cheskel Brach is currently in talks to purchase Liberty Center.
The sale would mean the second historic building sold in the Golden Triangle in the past five months.
The 27-story office building in Downtown Pittsburgh holds the investment management firm Federated Hermes.
In 2016, CBRE Investment Management acquired Liberty Center for approximately $98 million. The building was listed for sale with the Jones Lang LaSalle real estate firm’s Pittsburgh office.
“While the [Downtown] rebound is still in the early stages, any sale at this point reflects positive momentum,” said Cushman and Wakefield Managing Director Sam McGill in a recent interview.
Back in March, Downtown’s One Oxford Centre was sold for well below the building’s face value. The building is also a storied tower built in the 1980s.
Downtown’s office market has been struggling to rebound since the COVID-19 pandemic.
The office vacancy rate Downtown hovers around 20%, according to Cushman and Wakefield. Before the pandemic, it was below 17% according to a study.
Liberty Center offers office space, on-site parking, a fitness center, an adjacent hotel, and food and retail options. It is approaching the sale at nearly 90% occupied.
The assessed value of Liberty Center has not changed over the past two years.
The building is likely to sell for as much as $100 per square foot, according to Rugby Realty President Aaron Stauber.
“I think it’s a huge vote of confidence,” said Stauber. He said he believes the sale price will be “one of the strongest” in the market since the pandemic.
Cheskel Brach is associated with the real estate investment firm CSB Holdings. The company partnered with another firm last week to purchase a prominent, under-leased office tower in Philadelphia.
Demand for offices with modern amenities is rising. Liberty Center was upgraded by previous owners in response to this shift.
“Stable ownership of buildings is critical, said Mr. McGill. “It ensures the ability to finance the improvements needed to bring tenants in and create workplaces where people have a positive experience.”
Local real estate sources predict an announcement of the Liberty Center sale could come as early as this fall.
