Feldman Equities, PMG bid for 800 Block site

Feldman Equities, one of the largest commercial real estate stakeholders in St. Petersburg, and Miami-based development firm Property Markets Group have submitted an unsolicited proposal to acquire the city-owned property at 800 1st Avenue S. for $8 million. 

The joint venture partners propose a mixed-use development with over 100 affordable housing units. The property sits directly across from UPC’s (United Property Insurance) headquarters. 

A rendering of the development as seen from the southeast. 

“We’ve been watching this for over a year now. We love the location. With the SunRunner stop, Publix, and all the activity just north on Central Avenue, we think this is the perfect proposal for this site,” Feldman Equities VP Mack Feldman told the St. Pete Catalyst

The team seeks only to acquire the parking lot at the site. Tampa-based firm Third Lake Partners recently submitted a proposal to develop a parcel to the south of the subject property. 

Moffitt Cancer Center and its partner, Atlanta-based developer TPA Group, previously offered the city $5 million for the entire property. Moffitt planned to build a 75,000-square-foot cancer center alongside a 30-story residential tower, a 14-story hotel development and a 300-space parking garage. 

However, the lack of affordable housing and the low offer to acquire the site, valued at $24 million, resulted in St. Petersburg Mayor Ken Welch rejecting the proposal.

Feldman and PGM’s proposal calls for the construction of 111 affordable apartment units in Phase 1. The apartments would be income-restricted for those earning 80% of Area Median Income (AMI) or below.

An aerial sketch of the site as seen from the northeast. 

The second phase would include 110,000 square feet of Class A office space, at minimum, which would support approximately 300 jobs. It also includes the construction of a 259-unit market-rate apartment building.

According to the proposal, 30% of the total residences would be affordable across both phases. 

A site plan for Phase 2. 

If the group’s offer is accepted, the partners would immediately begin the development process for the affordable apartments on the eastern portion of the parcel. After closing on the land for Phase 2, the team would convey the entire Phase 1 affordable housing building to the city. The project will not require capital from the city. 

“We wanted to build something that really helps tackle the affordability crisis, which is especially acute downtown where a lot of jobs happen to be. This project tackles that from both sides,” Feldman said. 

A rendering of the development as seen from the southwest.

The group didn’t disclose the cost of the overall project. Feldman shared that he wants to quickly start construction for the affordable housing project, but that understands securing the tax credits and financing may affect the timeline. 

The partners would pay for the permanent parking spaces for the affordable housing. 

The development team includes St. Petersburg-based Place Architecture, civil engineering firm George F. Young and legal counsel Hill Ward Henderson. 

DuCon Construction would serve as the general contractor for Phase 1 while Suffolk Construction would oversee Phase 2. 

The construction bid process would allow for maximum participation by minority or women-owned businesses and employment opportunities for residents of traditionally underserved neighborhoods, including South St. Petersburg. 

While there’s a large emphasis on the affordable housing component, the proposal claims this could be “St. Pete’s first major multi-tenant office [building] since 1992.” 

“We’re already having some preliminary discussions about preleasing the office space, and we feel good about getting the project leased up,” Feldman said. “We’d welcome working with our neighbors as well to make sure we’re building something that’s supported by the neighborhood.” 

The overall development would also accommodate 14,000 square feet of space for shops and restaurants. 

Feldman said the team is not proposing to close down 2nd Avenue South as it will act as the future “front door to the Historic Gas Plant development.”