Nov. 4--A new group is close to completing a deal to buy the financially troubled Hilton Pittsburgh Downtown with plans to finish a hotel expansion stalled for months because of unpaid debts.

The partnership seeking to finalize the purchase of the Hilton, Pittsburgh's largest hotel, is led by Jorge M. Perez, founder and chief executive officer of The Related Group, a Miami-based real estate developer and builder.

Also involved is Stephen M. Ross, founder and chief executive officer of Related Companies of New York City and majority owner of the Miami Dolphins football team. Mr. Perez is a vice chairman with the Dolphins.

While the two Related firms are not affiliated, Mr. Perez and Mr. Ross are longtime friends and business partners. At least one other investor is expected to be part of the new ownership team.

The new owners would take over the Hilton from Shubh Hotels LLC, which bought the hotel for $28 million in 2006 and launched a $25 million project to renovate rooms and build an exterior addition that was to have included a swimming pool, a health club and expanded banquet facilities.

But work on the addition stopped in May, when contractor P.J. Dick walked off the job, claiming it was owed $317,273 related to the construction. Dozens of others, including the project architect and unions, have filed liens or lawsuits seeking payment from Shubh for Hilton work or for missed pension and health benefits contributions required under labor agreements.

The work stoppage left an unsightly steel frame in its wake, one that was covered by a gigantic banner for the G-20 economic summit in September.

Members of the new ownership group have been at the Hilton this week, talking to employees and union representatives, as well as to officials with many of the companies owed money.

"It looks like they're close to closing their deal. We've been waiting for that to happen. Once that does happen, it looks like we'll be able to get started again working over there," said Stephen Berry, the architect on the expansion project.

Mr. Berry, who is owed about $340,000 by Shubh, including interest and legal fees, said he has ironed out a "settlement agreement" with the new owners and plans to continue working on the addition once the sale is finalized.

He said he has been told the new group plans to close on the sale in 10 days to two weeks.

"I think it's a matter of all the attorneys getting the t's crossed and the i's dotted," he said. "When I speak to them, they say it's close."

Mr. Berry said the new group plans to complete the expansion and hopes to use the same contractors that have been involved in the work.

"They seem to be very strong," he said of the new owners. "Hopefully, it's going to be a totally different situation."

Greg Denton, a senior vice president with The Related Group, said, "We're still finalizing the deal and we'll have an announcement as soon as we're comfortable."

He declined further comment.

Shubh, after owning the hotel for more than three years, no longer will be involved once the deal is finalized. However, the new owners intend to honor all existing labor agreements.

"Unite Here Local 57 has proudly represented workers at the Hilton for over 50 years, and we look forward to continuing that tradition with the new ownership group," said Jennifer Blatz, a spokeswoman for the union, which represents about 200 Hilton workers.

The Related Group itself will not be part of the ownership team but will oversee the management of the property and the completion of the expansion. A new management company is expected to be brought in to run the Hilton.

Established in 1979, The Related Group has built and managed more than 55,000 condominium and apartment residences in major markets in Florida. Among its projects is a 633-unit luxury condominium tower in Downtown Miami, a 67-unit luxury development in South Beach, and a 42-story high-end condominium building in Fort Lauderdale. The Related Group also has worked with business and real estate magnate Donald Trump on a handful of projects.

Based in New York City, Related Companies has offices and major developments in Boston, Chicago, Los Angeles, Las Vegas, San Francisco and South Florida. Its real estate assets currently are valued at more than $15 billion.

Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.

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