Why Third Lake Partners is buying UPC’s sites

As redevelopment projects pop out of the ground in St. Petersburg and business activity ramps up, development group Third Lake Partners is taking advantage of available real estate. 

Third Lake Partners, which has a strong footprint in the city, has acquired United Property and Casualty insurance (UPC)’s St. Petersburg headquarters at 800 2nd Av. S., office and additional properties this month. 

When Third Lake purchased the HQ for $10.5 million, Ken Jones, founder and managing partner of Third Lake Partners, said the group has been interested in the site for several years as it’s in an ideal location, and the site is flexible; it could continue to house the office building or potentially be redeveloped into multifamily and/or retail. 

“Much like the original HQ purchase, we believe these contiguous pieces of land as strategic opportunities that have functionality,” Jones said. 

The new $6.5 million purchase includes the four parcels at 724 2nd Ave. S. and 3rd Avenue, near UPC’s former HQ. 

The purchase of the properties comes after UPC’s parent company Demotech’s financial stability rating was withdrawn due to seeing a downgrade, and its personal lines subsidiary UPC carrier announced it was pulling out from its operations and going into an orderly run-off. 

UPC is currently solvent as it is canceling policies in Florida and was recently placed on administrative supervision by the state. 

Third Lake Partners said it is evaluating options for all of the acquired sites.  

“We are encouraged by the broad economic development activity in Tampa Bay and feel St. Pete is a good, growing market,” Jones said. 

Third Lake Partners is the owner of the 200 Central office building in downtown St. Petersburg and also co-developed the 15-story Waterview Echelon City Center apartment tower.