A developer’s record-setting acquisition is expected to revitalize a downtown Tampa, Florida, property, bringing new condos in place of a century-old, Class B office building.
In July, Naples, Florida-based Stock Development paid TLR Group $40 million for the 1-acre site at 601 N. Ashley Drive. The deal established a new price-per-acre high for Tampa/St. Petersburg, according to industry experts.
Stock plans to tear down the 12-story, century-old office building at the site and replace it with condos, though the company hasn’t determined the residential structure's height or number of units, said Keith Gelder, vice president of land development, in a text message to CoStar News.
The deal earned a CoStar Impact Award as judged by professionals in the market.
TLR acquired the property in 2021 for just over half of what Stock paid, public records show.
One of the judges, Quinn Eddins, a managing director at Greystar Real Estate Partners, noted that the transaction brings a major new residential player to Tampa's urban core and included the necessary approvals, "sparing everyone the usual entitlement-induced eye twitch."
"More than a sale, it was a vote of confidence in Tampa’s next chapter; it shows that finding the highest and best use sometimes requires believing the city can grow up a little taller without losing its balance," Eddins wrote.
About the project: Bank OZK provided a $20 million loan to Stock for the acquisition and redevelopment. In a market where progress requires patience, the deal came together relatively quickly, overcoming capital market challenges and redevelopment risks, according to Eddins.
What the judges said: "Projects like the one Stock is planning for this site will beautify the Tampa skyline and elevate downtown Tampa's residential market," wrote Matt Mitchell, senior managing director at Berkadia Real Estate Advisors.
"It takes down an old office building that wasn't part of downtown's future and replaces it with a modern, residential tower," wrote Caleb Lewis, executive managing director at JLL.
They made it happen: Three brokers from JLL represented both the seller and the buyer. They are Frank Carriera, senior managing director; Zach Nolan, managing director; and Joseph Thavis, senior director. From Stock Development, CEO Brian Stock and Keith Gelder, vice president of land development, led the effort.