PITTSBURGH-Market Associates LP, an affiliate of The Hillman Co.is selling PPG Place, the CBD trophy here, to Highwoods Propertiesfor $214.1 million. The sale includes a $25.2-million commitment ofbuilding improvements and tenant upgrades, as well as theassumption of a $124.9-million secured loan. The loan matures in2017.

The six class A offices are 76% occupied with tenants such asPPG Industries, H.J. Heinz, Deloitte & Touche, Morgan StanleySmith Barney, Ernst & Young and Allegheny Technonlogies, amongothers. The property consists of a 40-story tower that reaches635-feet, as well as a 14-story building and four six-storyproperties. Designed by Philip Johnson, the property has areflective surface and architecture commensurate with a castlebuild. It sits on three city blocks here and is considered acenterpiece of Pittsburgh.

Constructed in 1981, it has 1.5 million square feet of officeand 70,000 square feet of rentable retail. The buyer wasrepresented by CB Richard Ellis and will help lease the rest of theproperty for the Raleigh, NC-based REIT.