Inflation puts 18-story tower project on hold

A property in downtown St. Petersburg, where an 18-story tower would rise, is now landscaped with lush palm trees. 

Texas-based Camden, the group that operates the 357-unit Camden Pier District apartments at 330 3rd St. S., acquired the adjacent 0.23-acre lot two years ago. The goal was to combine the existing apartment complex property with the new property, at 201 4th Ave. S., and build an additional 95-unit multi-family development.

However, the escalating inflation rates have ballooned the estimated project cost. 

A rendering of the southeast aerial view of the proposed apartment complex at 201 4th Ave. S. All images: Camden. 

“We saw massive increases in hard costs on that project so it’s on hold for now. We just landscaped the lot so it would be more attractive. We don’t have definitive plans for a start anytime soon,” Chad Weaver, vice president of real estate investments at Camden, said in an emailed response. 

“The last few years have seen record hard costs inflation. Things have leveled off somewhat, but we still aren’t seeing some of the decreases that we need.” 

When the project was first proposed, the estimated cost was $30 million. The cost then jumped to $50 million, according to a previous earnings and revenue report from Camden. However, the new projected cost exceeds that figure, Weaver said. 

Camden purchased the lot, formerly the site of a dental office, in a $2.1 million deal. It has been vacant for some time. 

With the expansion on hold, there isn’t a definitive timeline for the expansion. 

The property is in the downtown center zoning district, which allows for multifamily and mixed-use development. 

A rendering of the northeast view. 

Per the previously filed plans, the proposed building would match the contemporary architectural style of the existing apartments. 

The ground floor would have a lobby and residential units with private courtyards. The 18th floor would be an outdoor amenity deck. The current and future residents would share a parking garage. 

The existing Camden Pier District apartments boasts an 97% occupancy rate, reaching near capacity. The units have an average size of 989 square feet and an average rental rate of $3,465, according to Camden’s most recent quarterly earnings report. 

The Camden real estate group also owns the 368-unit Camden Central luxury apartment complex, formerly known as Icon Central, at 855 Central Ave. 

The group acquired the 15-story building for $150 million in 2021. 

Miami-based Tricera Capital, which owns the ground-floor retail space at Camden Central, recently listed the storefronts for lease.