Category: default || By jt3y

I was remiss in not noting several days ago that The People's Building has indeed changed hands, as scheduled ... but not at a sheriff's sale. It was pulled in advance at the request of the people holding the mortgage.

Pat Cloonan reports in The Daily News (no link available) that the idea continues to be converting the historic old office building into loft apartments, and that the state housing finance agency is involved.

The last time the building was sold, the transaction caused red flags to pop up all over the Almanac's radar screen. This deal appears to be a little bit better for the city, and the building. Cloonan reports that the deal was handled by Pacific Coast Investment Company of Seattle, Wash.

Among other things, Pacific Coast held some of the paper on the Phoenix Coyotes' arena in Arizona, and a check of some newspaper databases reveals that they also handled the sale of the Stambaugh Building in Youngstown and loaned money to Aliquippa Community Hospital, so it appears as if they're familiar with real estate in depressed communities. They've also helped develop some shopping centers.

As best as I can tell, Pacific Coast specializes in risky real-estate developments --- and the People's Building would qualify as one of those at this point. They offer loans --- often at higher than normal interest rates --- and then sell shares of the mortgage to investors.

On the one hand, they've got a track record. But on the other, they've had their hands slapped a few times by regulators --- once for allegedly selling insurance without the proper licenses, another time for failing to deposit investors' funds in a timely manner and for not disbursing them on schedule.

According to the Seattle office of the Better Business Bureau, Pacific Coast paid a $100,000 fine, plus costs, under the terms of a consent order with Washington regulators. The state noted that the company "self-reported" its problems and "changed its procedures" to prevent any further violations.

A major business database lists Pacific Coast's credit rating as "very good" as of October 2005 and "good" as of December 2005.

I'm still wary, but a little bit more hopeful, that the People's Building is going to have a useful life again. I sure hope someone justifies that faith ... soon.

. . .

To Do This Weekend: McKeesport Little Theater, Coursin Street at Bailie Avenue, presents Schmidt and Jones' musical "110 in The Shade," 8 p.m. Friday and Saturday and 2 p.m. on Sunday. Call (412) 673-1100. ... McKeesport Symphony Orchestra presents "Visions of Spring," 7:30 p.m. Saturday in the auditorium of McKeesport Area High School, 1960 Eden Park Blvd. Call (412) 664-2854 ... Pittsburgh Area Jitterbug Club hosts dancing at the Palisades, Fifth Avenue at Water Street, at 8 p.m. Saturday. Call (412) 366-2138.