Walnut Capital Partners may bring more than 350 more apartments to South Oakland by 2017.

Pittsburgh’s Urban Redevelopment Authority owns the property, and though Walnut Capital doesn’t yet own the title to it, they have entered into exclusive negotiations for the land, according to URA’s spokesperson Gigi Saladna. Thus far, Walnut Capital has agreed to purchase the land at the appraised price of $1.415 million. 

The plot is 4.04 acres located on Second Avenue, about two miles from the Cathedral of Learning, along the Monongahela River in South Oakland. Walnut Capital plans to construct 352 market-rate residential units on the land in two equal phases, according to the URA Director’s Report.

Although Pitt could not discuss specifics for Walnut Capital’s new building, University spokesman John Fedele said, “the addition of new, quality housing is welcome in the Oakland area.”

Walnut Capital’s proposed building, Fedele said, could offer students, faculty and staff more housing options and will be good for the neighborhood.

“More housing options places subtle pressure on [other] local landlords to continue to maintain their own properties,” Fedele said. 

Its latest property would succeed others in Shadyside, Squirrel Hill and East End, as well as two buildings — University Commons on South Bouquet Street and University Loft Apartments on Dawson Street — in Oakland, which it rents mostly to Pitt and CMU students.

The new building will be called Technology Center Living and will feature integral parking for vehicles and bicycles, an outdoor swimming pool, a sports court, sun deck, fitness center and yoga area. According to the report, the exclusive negotiation period will last for 90 days, but the Acting Executive Director of URA could extend the negotiations for another 90 days.  

The agreement between Walnut Capital and the URA came about after the URA put out a Request For Proposal asking development companies to bid on the land. Walnut Capital plans to construct an apartment building similar “in scope and quality” to their Bakery Living building on Penn Avenue, the report said. 

Despite not yet holding the title, Gregg Perelman, CEO of Walnut Capital, said the first phase of the construction is expected to begin in November of this year, and that the properties should be open for rent by June 2017. 

The first phase, he said, will include 176 apartments. This half of the project will cost about $35 million to $40 million from start to finish. The second half of the project will cost about $30 million and will begin after the first phase’s completion.

Perelman confirmed that Strada Architecture will design both phases of the building and that PJ Dick, a Pittsburgh based construction company, will handle the construction. 

The building has an ideal location because of it’s proximity to Oakland, Downtown and the South Side, Perelman said, and will be suitable for Pitt and CMU students, graduate students and young professionals in Pittsburgh.

“We want to create our own excitement, our own community,” Perelman said.