Saturday, October 18, 2008

Goodwill seeks buyer, and new operational facility

Goodwill Industries of Pittsburgh is seeking a buyer for its South Side properties who also will establish a new location for its operations.

Included in the offer for sale is the nonprofit organization's seven-story, 157,000-square-foot headquarters and nearly 20 other parcels that span three blocks along East Carson Street, from 27th to 29th streets. The organization's store at 27th and Carson streets and a building used for programs on 24th Street are excluded.

"We hope to receive all proposals by Nov. 19, but probably won't make a decision until mid-January," said David Tobiczyk, Goodwill's vice president of marketing and development.


"If the proposals received do not provide us with the requirements needed, we may delay or end the search for a buyer and a new site," said Mike Smith, Goodwill president and chief operating officer.

No asking price was listed in a request for proposals recently circulated to area developers, Smith said.

For its new location, Goodwill wants a site close to public transportation because many employees and clients will need it to get there, he added.

The agency employs about 300 at the South Side location, and serves an equal number of clients on a daily basis at its facilities in the neighborhood. Services provided include assessment, job training, education and job placement.

A study by the Burt Hill architectural firm showed Goodwill would need 125,000 square feet of space for its offices and for warehousing.

Mark Popovich, a managing director of the Pittsburgh office of Holliday Fenoglio Fowler, a national commercial real estate capital intermediary, is handling the sale. A study his firm conducted earlier this year for Goodwill concluded that relocation could help the organization reduce costs and operate more efficiently, he said.

"They have large tractor-trailers coming in and out of there, and ideally, they would be better off in a one- or two-story structure" rather than a 100-year-old, seven-story building, he said. Goodwill has occupied the building for about 40 years.

The firm sent out about 25 requests for proposals to Pittsburgh area developers and a few others, such as Columbus-based Continental Real Estate Cos. and Ferchill Group of Cleveland.

The hope is that one company or team would buy and develop the Goodwill property and also provide a new location. The South Side site offers three acres for new development for hotel, retail, office or residential use, Popovich said.



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