Central Plaza plans signify transformation of district

The once-thriving Central Plaza, the first regional shopping center in the city that now boasts a barren parking lot and “for lease” signs on empty retail spaces, will serve a completely new purpose in the evolving Grand Union District. 

St. Pete developers Jon Daou, largely credited with the development of the Edge District, and Blake Whitney Thompson of Blake Investment Partners have teamed up with Washington, D.C.-based firm Kettler to breathe new life into the Central Plaza property by bringing new retail and hundreds of apartments to the site. 

The partners purchased the property at 32355 Central Ave. from Miami-based Saglo Development Corp. in a $13 million deal. 

1950s postcard image.

Central Plaza has played a key role in the development of the area for decades. Built in the early 1950s, it was the first major commercial threat to downtown St. Petersburg businesses.

Today, the plaza sits on three acres and currently houses retail businesses Hibbett Sports, Family Dollar, CitiTrends and Octapharma Plasma, a plasma donor center. 

“My overall objective when I came to the city was to deliver more local retail and create walkable areas, prioritizing the residents – that’s the key to making neighborhoods self-sustaining,” Daou said about the appeal of redeveloping the plaza, making it a catalytic piece in establishing a new identity for the district. 

“In emerging neighborhoods, when you have the ability to give businesses lower rents, they become more resilient to changing market forces and people can walk to these businesses,” he said. The property is 20 blocks from the retail-centric Edge District. 

“Adding retail to the streets and supply allows for different uses and price points. We have a real problem with the cost of living. Apartment prices and rents for retailers are increasing. On top of that, people rely on cars to commute to work and it’s an added expense. If we have jobs in the same place where people live by having smaller more affordable spaces, as a result, we will have a lower cost of living,” Daou said. 

Daou and Thompson will manage and curate the retail portion of the project. The two partners are also in the process of creating a retail development at the Jim and Heather Gills YMCA campus, at the corner of 1st Avenue South and 34th Street.

Daou said the redevelopment of the two properties is a key part of the broader mission to enhance the quality of life for residents. 

Two years ago, when Daou and Thompson connected with Kettler Chief Investment Officer Luke Davis and Senior VP Graham Tyrell, the Kettler executives knew they wanted to be stakeholders in the district’s transformation. 

“St. Pete is exploding, and Central Avenue is one of the best retail corridors in the country, and Jon just knows the ins and outs of the market, as does Blake. They are so close to the ground and understand what properties are becoming available,” Davis said. “At Kettler, we are not a cookie-cutter, rinse-and-repeat group. Those guys know the path of progress for the area and how we could get ahead of the curve.”

The team is also working with St. Petersburg-based Place Architecture.  

Davis said they are working with city planners as the city council adopted the St. Petersburg’s Union Central District Plan, which intends to improve the aesthetics, enhance the identity, encourage investment and increase opportunities for businesses within the district. 

“One of the simplest solutions for the housing crisis is to take underutilized land and create housing. What keeps a lid on housing costs is the amount of the supply. We can produce more multifamily units and make it attainable and is supplemented by retail,” Tyrell said. 

A site plan for the Central Plaza redevelopment shows a seven-story building encompassing over 300 apartments; however, the team said the plans are preliminary and the details and number of units for the project must be vetted.

The project is expected to be completed through multiple phases. 

Davis and Tyrell are also working with landowner Daryl Shaw on the 50-acre Gas Worx project in Ybor City.