CMBS Loan Backed by Pittsburgh’s Gateway Center Liquidates at $65M Loss
The $94 million loan had been sent to special servicing in September 2024
By Brian Pascus August 3, 2026 12:15 pm
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An iconic office complex in the City of Bridges has hit a dead end.
The $92 million commercial mortgage-backed securities (CMBS) loan secured by Gateway Center, an iconic office complex in Downtown Pittsburgh, has liquidated via a note sale, resulting in a $64.8 million loss to the CMBS trust, according to an alert from Morningstar Credit.
CO previously reported that the $94 million loan — which makes up 64 percent of the JPMCC 2013-C10 conduit deal — entered special servicing in September 2024 after it was expected to default ahead of its January 2025 maturity. Gateway Center’s four office buildings reported occupancy as low as 55 percent in March 2024.
Morningstar Credit reported the gross proceeds were a mere $37.4 million, well below the previously appraised value of $69.5 million. Within the trust, two tranches were written off completely, while the Class E junior tranche lost half its value, per Morningstar.
The office complex was purchased by Hertz Investment Group in 2004 for $55 million.
A product of the postwar era boom of Brutalist architecture, Gateway Center has formed an indelible piece of the Pittsburgh skyline since the early 1950s, when construction of the buildings was complete.
Spanning 1.5 million square feet of office space across One Gateway Center, Two Gateway Center, Three Gateway Center and Four Gateway Center, the stainless steel and glass development opened in stages between 1952 and 1960.
The development was part of the “Pittsburgh Renaissance” that occurred between 1946 and 1974. At the time, the 23-acre Gateway Center commercial district was known as “the nation’s first comprehensive downtown redevelopment accomplished without federal aid,” according to the Pittsburgh History & Landmarks Foundation.
When the National Park Service designated the Downtown Pittsburgh neighborhood near the Allegheny River waterfront as “the “Pittsburgh Renaissance Historic District” in 2013, the four Gateway Center buildings were named as “major contributing properties” to the distinction.
Hertz Investment Group did not respond to requests for comment.
Brian Pascus can be reached at bpascus@commercialoberver.com.
