A smoky fire took over the gutting of a Strip District warehouse in Pittsburgh, PA that a developer had begun emptying to create condominium lofts.

A demolition crew clearing out a former Otto Milk Co. building apparently set off a four-alarm fire when a cutting torch ignited the foam insulated walls in a fourth-floor refrigeration unit, construction manager Mark DePante said.

After responding to the fire at 25th and Smallman streets about 10:30 a.m., crews were monitoring the building and allowing it to burn into the evening, city fire Chief Daryl Jones said.

The chief ordered all firefighters out of the building about 1 p.m. when crews encountered difficulties in extinguishing the cork and foam insulation, which poses an increased hazard because it burns quickly.

"Historically, fires like this have been fatal to firefighters," Jones said. "We're not going to let that happen."

Investigators have not determined the cause. Jones said the refrigeration area contained highly flammable petroleum-based insulating foam that was difficult to put out.

Foam used to fight the fire may have flowed into the water system serving the Strip District and Downtown, prompting the Allegheny County Health Department and Pittsburgh Water and Sewer Authority to warn businesses and residents of those neighborhoods not to use tap water until further notice.

Some Strip District and Downtown bars and restaurants decided to close early because of the warning.

The Health Department said it will not be safe to drink the water or use it for cooking, bathing or washing dishes until sampling and testing assures that the water is safe.

Jones said "for all intents and purposes," the building is vacant.

But real estate developer Jack Benoff doesn't expect it to be vacant much longer.

Benoff wants to turn the milk company building into trendy loft condominiums and attract buyers as he has for a condominium project at 941 Penn Ave.
Contractors told Benoff that the fire damage shouldn't hold back the $10 million to $12 million development. The concrete floors of the building are up to three feet thick, Benoff said.

The foam, cork and even the glass-block windows firefighters busted through to attack the flames were not expected to be used in the renovated building and workers were going to remove it all, Benoff said.

"I don't think we'll have an issue," Benoff said.

He had not visited the building since the fire started, but expected to assess the damage later. The real estate project is scheduled to begin selling in May, Benoff said, with prices of up to $1.2 million.

Benoff bought the complex last year with plans to convert it into 60 condominiums. Through his suburban Philadelphia-based Solara Ventures Inc., he has been an active developer of condominiums in Pittsburgh.

When Benoff bought it, the former Otto Milk site included seven buildings, two of which were to be razed for on-site parking.

One firefighter hurt an arm, Jones said, and debris lodged in another firefighter's eye. Two construction workers were on the fourth floor when the fire started, but neither was injured, DePante said.