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In 2024, mortgage foreclosure proceedings began for Gateway Center, the 1.5 million-square-foot office complex in downtown Pittsburgh.
Wells Fargo Bank said in court documents that Hertz Gateway Center LP had neglected its duty to keep the property in "good and safe condition and repair." The company also hadn't paid the bills necessary to keep things running, with about 35 creditors on a list of shutoff notices.
The high-profile property needed a white knight. On Tuesday, property manager CBRE confirmed someone had stepped
in, purchasing the note for the $84 million mortgage.
But is Namdar Realty Group a protector or a predator?
The fear for some in this situation might be the property could be looted or broken up like a stolen car in a chop shop. That's
not necessarily what Namdar's history suggests.
Instead, it is more frying pan and fire. The Wells Fargo documents were written about Hertz, but the language sounds familiar. It echoes many of the complaints leveled against Namdar.
Namdar has a track record of snapping up once-lucrative commercial real estate and holding on for the ride as it goes downhill.
The Galleria at Pittsburgh Mills in Frazer has racked up millions of dollars in fines and hundreds of code violations while in Namdar's possession. The parking lot is legendary for its cavernous potholes.
There have been lawsuits. Things have even turned criminal, with the Allegheny County District Attorney's Office charging
the company with creating a public nuisance. That trial is scheduled for July 27.
The Mills isn't a one-off. It's a pattern that can be seen across Namdar properties in multiple states. In Pennsylvania alone, once-thriving shopping centers like Logan Valley Mall in Altoona and Nittany Mall in State College are slowly dying under the same ownership model.
That's not what Gateway Center -- or downtown Pittsburgh -- needs.
Gateway Center sits adjacent to the city's most iconic real estate: Point State Park. With its high-flowing fountain and scenic stroll along the confluence where the Allegheny and Monongahela give birth to
the Ohio River, the park welcomes more than 1.5 million visitors annually. And that's just the ones who show up in person.
This is the view that is shown on "Monday Night Football" or other prime-time promos. While Gateway Center might not be a name well known outside the Steel City, it is the background of the postcard picture. It cannot be allowed to slowly rot in plain sight like so many players on the Namdar roster.
However, there is a difference between owning a mortgage and owning a property.
It's a matter of involvement and responsibility. The bank that owns your mortgage isn't responsible for mowing the lawn or paying the electric bill. You are. That could make the difference here. Let's hope so. Pittsburgh doesn't need another Pittsburgh Mills. One is more than enough.
-- Pittsburgh Tribune-Review