Friday, December 01, 2006

CONSOL Energy Enters $50 Million Build-to-Suit for New HQ Near Pittsburgh

Pittsburgh Business Times - November 27, 2006

CONSOL Energy Inc. has sold its future headquarters property at Southpointe II to Horizon Properties LLC and will lease back the space in the building. Rod Piatt, principal with Cecil-based Horizon, said on Wednesday that his company had reached an agreement with Upper St. Clair-based CONSOL (NYSE:CNX) to purchase and develop CONSOL's 384,000 square foot corporate campus at Southpointe II. Piatt said CONSOL had signed a 20-year lease for the building.

In the summer of 2008, CONSOL is expected to move its Upper St. Clair corporate campus to the Southpointe II building, which has been under construction for about three months. The roughly 35 acre property, sits on Southpointe Boulevard, just south of the Southpointe I development in Cecil Township.

CONSOL spokesman Tom Hoffman said the decision to sell the property and lease it back was consistent with the company's past practices. "We don't need to own buildings." Piatt said that while the total cost of the project, which will have one 310,000 square foot headquarters building and a 100,000 square foot subsidiary building, has not been disclosed, "it is going to be north of $50 million." Sphere: Related Content

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