Tampa's iconic Rivergate Tower is slated to receive an $8 million renovation following an ownership shakeup that added a local private equity investment firm to the team.
Banyan Street Capital recapitalized the 31-story tower in a joint venture by bringing on Ally Capital Group as a partner for an undisclosed sum. The partners said they plan to launch a renovation of what locals affectionately call the "Beer Can Building" that will include upgrades to the city’s Riverwalk, the Kiley Gardens that surround the building and the creation of move-in-ready speculative suites.
The project also will complete hallway and restroom upgrades and parking garage work already underway.
"This milestone investment underscores Ally Capital Group's continued commitment to high‑quality assets and strategic collaborations that deliver long‑term value for its investors," Chief Operating Officer Grant Werbeck said in a statement.
Standing 454 feet high, Rivergate Tower is one of the tallest limestone buildings in the world, the partners said. Built in 1988, Los Angeles-based PCCP and Banyan Street Capital acquired the building in 2015 for $70 million, CoStar records show.
"Our affinity for investing in Tampa is no secret," said Zac Gruber, office division president at Banyan Street, in a statement. The tower "represents not only a best‑in‑class asset, but also a meaningful opportunity to continue our investment in the growth and vibrancy of downtown Tampa," he added.
Sales for office properties across downtown Tampa has been sporadic over the past five years, according to a CoStar report. Demand for space at high-end towers similar to Rivergate are some of the highest in the region, with downtown rents averaging $40 per square foot compared with $32 per square foot across the greater Tampa area, the report states.
Headquartered in Tampa, Ally Capital Group is a real estate-focused private equity group founded in 2009. The group is led by Andrew Wright, who also serves as the CEO and chairman of commercial real estate services firm Franklin Street.