Downtown Attracts More Condominium Developers

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Downtown Attracts More Condominium Developers

By ELLEN GEDALIUS and SHANNON BEHNKEN
The Tampa Tribune

TAMPA - An Atlanta developer plans to build a massive condo tower in the heart of Tampa's downtown, as well as a smaller condominium near the University of Tampa.

Wood Partners plans to turn the Maas Bros. block downtown on Franklin Street into a 450-unit condominium with 12,000 square feet of retail space on the ground floor. The building would be 33 stories.

On Kennedy Boulevard, the developer plans 346 condominium units and 5,000 square feet of retail space.

City officials have been trying to pump life into Tampa's downtown and, to do that, have focused on revitalizing Franklin Street, a once important commercial corridor. As Mayor Pam Iorio strives to turn downtown into a bustling neighborhood, more condos mean more people.

But some question whether the downtown area - where about two dozen condominium projects are proposed - can sustain two more.

"There's some pent-up demand for" downtown condos, said Tony Polito, local director for the housing research firm Metrostudy. "The ones that get out of the ground fastest will make it."

If approved, the Maas Bros. condo project would break ground this year.

"In terms of redevelopment, that is a very critical block for our downtown," Iorio said, noting its proximity to cultural attractions, government offices and proposed park space along Ashley Drive.

The Maas Bros. Department Store, which stood at Franklin and Zack streets, closed in 1991. The building has deteriorated and will be demolished.

The project is the latest planned for the Franklin Street area. The Arlington Hotel, on Franklin between Fortune and Royal streets, is being transformed into condos and offices. The Residences of Franklin Street is another condo project blocks from the new SkyPoint condominiums.

An entrepreneur plans a restaurant on Franklin next month. A developer plans three condo towers for the Kress and Grant blocks, and the Floridan Hotel is getting a facelift.

"Franklin has been developing as a hot spot," said Christine Burdick, president of Tampa Downtown Partnership. "Franklin Street has been the little engine that can."

But not without drawbacks.

At least four businesses - Mr. Empanada, Manhattan Bagel, Wrap It and Franklin Street Newsstand - will be forced to close to make way for the condo project. Mr. Empanada opened on Franklin in February.

Ellen Brown, owner of Old Tampa Book Company on nearby Tampa Street, said the city should offer small businesses incentives so they can remain downtown. "It shouldn't be we're sweeping you out, nice knowing you," Brown said.

The city council is expected to review the proposal in March. At least one council member is likely to endorse it.

"That's where something that big, and something that tall, is appropriate," Councilwoman Linda Saul-Sena said. "There seems to be a strong market for residential, and the location is superb."

Pradip Patel, Henry Suarez and Gregory Hughes own the block through their company, 610 Franklin LLC. Patel said he plans to sell to the developer.

Dave Thompson, development associate for Wood Properties, said the company chose the locations because it wants to be part of the redevelopment of downtown's core.

The company has five condo projects in the Atlanta area. It built an apartment complex in Tampa and has another under construction in Largo.

The Maas Bros. property must be rezoned, but the Kennedy Boulevard site is already zoned for mixed-use development. The Maas Bros. buildings are expected to be demolished this month, Thompson said. Construction on the Kennedy Boulevard complex should start this summer and the Franklin Street complex later this year.

As interest rates and construction costs rise, some wonder whether all the projects can succeed.

Polito, of Metrostudy, said the Franklin Street area is a good location to attract those wanting to be near the cultural arts district and Ybor City.

Because so many of the projects under way are near the Channel District, he said, the Franklin tower has a chance to set itself apart.

In order for the downtown projects to make it, he said, developers need a mix of price points and buyers.

Wood Partners has not set prices for either condo development, but Thompson said the goal is to attract young professionals squeezed out of the pricey towers planned downtown. Few of the condos proposed have prices near $200,000; many units cost more than $1 million, and Trump Tower Tampa has some condos that cost more than $6 million.

The average unit size for both developments is 1,000 square feet, he said, and should keep prices down.