Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Foreclosure near for One Chatham Center

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Foreclosure near for One Chatham Center

Article excerpt

One Chatham Center, the flagship of the Uptown "city within a city" built during Pittsburgh's first renaissance, is facing foreclosure after defaulting on a $15.2 million mortgage.

Allegheny County Common Pleas Court Judge Christine Ward issued a consent order this week clearing the way for HSBC Bank USA to foreclose on and sell the office tower. Elteq Partners I Limited Partnership, the building's owner agreed to the order.

HSBC filed a complaint in foreclosure in June, contending that Elteq hadn't made monthly mortgage payments since February. That triggered a default, which required Elteq to repay the entire balance.

The foreclosure affects only the first floor and floors three through nine of what is known as One Chatham Center. The Marriott City Center hotel occupies the rest of the 20-story building. It is separate from the office portion and is not part of the foreclosure.

However, Shaner Pittsburgh Hotel, the Marriott's owner, has been granted permission to intervene in the case. In a petition to do so, it said it had entered into various written agreements with Elteq involving maintenance, utilities and facilities related to One Chatham and wanted to protect its interests.

In the foreclosure complaint, HSBC stated that Elteq secured the mortgage, in the amount of $14.8 million, in 2006. With interest, late fees and other charges, the balance is now $15.2 million.

Judge Ward in July appointed the CBRE real estate firm the receiver for the property, responsible for operating, maintaining and managing it.

Christopher P. Schueller, attorney for HSBC, could not be reached for comment. Doug Campbell, attorney for Elteq, declined comment.

The office portion of One Chatham has been struggling in recent years. UPMC has moved about 550 employees from the building to the Heinz 57 Center, Downtown. It also transferred another 1,850 workers out of One Chatham and Two Chatham Center to the U.S. Steel Tower. It no longer has any employees in One Chatham. …

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