Third Lake submits bid to purchase 800 Block site

The City of St. Petersburg has received a new offer for a prime corner lot in the 800 Block. Moffitt Cancer Center and a development partner were once interested in the site. 

Tampa-based investment advisory firm Third Lake Partners submitted a non-binding letter of intent to the city in mid-April, offering $6 million to acquire a portion of the vacant parcel at 800 1st Ave. S. The site, currently used as surface parking, sits directly across UPC’s (United Property Insurance) headquarters, which Third Lake Partners recently scooped up in a $10.5 million deal. 

While Third Lake Partners’ letter of intent is dated April 17, city administration said it initially received an offer from TLP for the purchase of the site in March. 

The 800 1st Ave. S. site on the southwest corner of 9th Street South and 3rd Avenue South. Image: City of St. Petersburg documents.

Moffitt Cancer Center and its partner, Atlanta-based developer TPA Group, previously offered the city $5 million for the property where Moffitt planned to build a 75,000-square-foot cancer 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.

In April, the city’s real estate and property management ordered two new appraisals to determine the market value of the property based on the leased interest and secondly, the unencumbered value of the property as vacant. The appraisals are expected to be completed this month.

Third Lake Partners said its $6 million offer is a “starting point for property market value” and listed related investments, including the purchase of UPC’s former HQ and the intent to exit a lease with AAA Auto Club for the parking lot usage. 

Per the group’s drafted offer letter, TLP would redevelop the site within five years following the execution of a purchase agreement. TLP did not disclose details of its redevelopment plan. 

The proposed acquisition may be part of the firm’s larger strategy of claiming assets within the block. When TLP purchased UPC’s HQ and additional contiguous parcels, Ken Jones, founder and managing partner of TLP, said the properties could continue functioning as office buildings or potentially be redeveloped into multifamily and/or retail. 

TLP’s unsolicited bid has triggered an open process for others to submit proposals. The city is inviting other private developers to submit alternative proposals to lease or purchase the site.  

The proposals are due by May 31 at 10 a.m. 

The city prefers developers to send their proposals via email to real estate coordinator Dennis Webber at dennis.weber@stpete.org.