Downtown St. Pete finished up the 2010’s with incredible momentum and is starting the 2020’s off with what is expected to be another unprecedented year for new development. Between project completions, ground breakings, and new project announcements, we expect Downtown St. Pete will continue its evolution into a preeminent area to live, work, and play.

One of the most anticipated developments that will be completed in 2020 is the new St. Pete Pier. The 26-acre project is expected to cost over $92 million and will contain five eateries including Doc Ford’s, Pier Teaki, Teak, and the Driftwood Cafe. The new St. Pete Pier will also feature a hanging net sculpture by world-renowned artist Janet Echelman. 

And speaking of art, the Museum of the American Arts and Crafts Movement will open this Spring and will include a multi-story atrium, a circular staircase, 40,000 square feet of gallery space, a 9,000-square-foot destination restaurant and more.

But there’s even more planned for Downtown St. Pete in 2020, and it can be hard to keep track of what is what. Here’s a brief summary on what we expect to see across the apartment, condominium, and hotel space this year. 

Apartments

Over the past decade much of the population growth in Downtown St. Pete has been a result of the construction of new apartment units. While the construction of condominium and townhome units have also added to downtown’s housing stock, the growth has primarily occurred from new rentals and 2020 will be no exception.

In 2020, Downtown St. Pete will see one of the largest supply waves of new apartments in recent memory with over 900 new units hitting the market. This supply wave will largely center around Central Avenue & 16th Street where 1701 Central, Vantage Lofts, and Artistry Apartments are expected to add 700 new apartments to the market in the first half of 2020. 

Less than a mile away, in the Innovation District, The Exchange is also expected to come to market with 132 new units. When these new units are added to the 368 units at the recently-completed Icon Central, which is still in lease up, you get a pretty heavy increase in supply over a very short time.

To put this into perspective, over the past few years, new apartment buildings have been staggered with at least two quarters in between completions. Over the next two quarters, Downtown St. Pete will see four completions. These new units will likely test the market’s depth and will put pressure on rental rates. For the moment, demand remains high with occupancy rates in the downtown area hovering around 90%.

And as one wave enters the market, another is building. The Vibe, a 219-unit building proposed for 2nd Avenue South, is expected to break ground in the first quarter of this year at the site of the former Onyx nightclub.

And permits were just filed for Ascent St. Petersburg, a 354-unit rental project being developed by Greystar at the corner of 1st Avenue N and 2nd Street. Ascent is expected to break ground in the second quarter of this year. 

Several other apartment projects could also break ground this year including a new apartment tower near Mirror Lake and Gallery 3100 in the Grand Central District. More unannounced projects are also on the way.

All in all, 2020 is expected to be an big year for the rental market in Downtown St. Pete with nearly a thousand new rental units being added. These new units are expected to bring much needed supply to the market but will also likely keep rent growth in check, which will benefit renters. If you plan on moving, be on the look out for move-in specials such as a free month of rent or discounted application fees. 

Condominiums

The last condominium tower completed in Downtown St. Pete, ONE St. Petersburg, was seen as a resounding success. It sold out nearly six months before completion which led to units being resold at steep premiums. Kolter Group, the developer behind the project, is expected to break ground on its second Downtown St Pete project, Saltaire, toward the end of the first quarter. Saltaire will be similar in scale to ONE St. Petersburg with 35-stories and about 190 units. Like ONE St. Petersburg, pre-sales for Saltaire have also been strong.

Another highly anticipated condominium project that’s expected to break ground in 2020 is The Residences at 400 Central. Located at 400 Central Avenue, this development is expected to transform St. Pete’s skyline with a 515-foot tower containing around 300 condo units. Pre-sales for 400 Central are expected to begin in mid-2020 with a ground breaking before the end of the year.

We also expect Blue Lotus, the controversial condominium tower proposed for 4th Avenue North and 1st Street, to also break ground. Formerly known as Bezu, that project was proposed back in 2017, but was denied before City Council. Blue Lotus, a scaled down version of Bezu, was proposed for the site in late 2018 and was ultimately approved by City Council. Blue Lotus is expected to be 19-stories with 18 units and will likely break ground in the first half of 2020. 

Depending on the success of Saltaire, 400 Central, and Blue Lotus, we could potentially see more condominium buildings proposed for Downtown St. Pete. There’s a market for mid-priced condo units but land prices and construction costs can make the economics for these types of projects difficult. We’re keeping an eye on the west side of downtown, which is becoming increasingly walkable and desirable. Developments targeting mid-scale condo buyers could potentially pencil out further inland, where land prices are cheaper. 

Hotels

Is 2020 the year construction on the Galaxy Hotel finally wraps up? We don’t know but we’re  certainly hopeful. The Galaxy Hotel was first proposed in the late-2000’s and finally broke ground in 2018. At 11-stories with 92 rooms, it’s not the largest hotel under construction, but its prime location a block from Beach Drive will likely keep it full. We look forward to it opening!

In the Grand Central District, a 7-story TRU by Hilton hotel is expected to open in May. The 132-key hotel will cater to travelers seeking affordable but vibrant and energetic accommodations. The project will also have 10,000 square feet of retail space on the ground floor which will further activate Central Avenue. It’s being developed by Clearwater-based Menna Development & Management and will represent the first TRU by Hilton hotel in the region. 

As for ground breakings, many of the new hotels breaking ground in 2020 will be part of mixed-use developments. Complimenting the 400 Central condominium tower will be another 20-story tower with approximately 225 keys. While it was originally expected to be a part of Marriott’s Autograph Collection that has not been confirmed. 

Greystar’s Ascent project will also have a 172-key hotel component. While unannounced, St. Pete Rising speculated back in July that the flag would be an AC Hotel by Marriott. Greystar’s hotel is expected to front 2nd Street and will include a 1,700 square foot rooftop terrace and bar deck.

We will likely also see progress on several other hotels in the downtown area including two hotels in St. Pete’s booming EDGE District: The Balm Hotel and The EDGE Collective. The Balm Hotel, which will be located at Baum Avenue and 11th Street, is expected to close on the purchase of their land next week. Permitting on the 135-key hotel will likely begin later this year, it is expected that the hotel will be part of Marriott’s Tribute Portfolio. 

A block down the road at 1246 Central Avenue, The EDGE Collective, which will include a 161-key Marriott Moxy hotel, is also expected to move forward this year, although a groundbreaking date is not yet known.

Beyond that, we could also hear more about the hotel planned for 450 1st Avenue North and the hotel being developed as part of the UPC Insurance HQ expansion. We expect a handful of other new hotels to be announced as well. While Downtown St. Pete still lacks a true five-star hotel, many of these new properties will add much needed select-service inventory to the market.

Between completions and ground breakings, 2020 is expected to be another busy year for development in Downtown St. Pete. Keep in mind that many of the projects discussed above will also have retail components which will add to downtown’s walkability. 

At St. Pete Rising, we’re excited to watch the continued growth of Downtown St. Petersburg, FL but we also recognize there are areas in which we can improve, like making our downtown streets safer, attracting more high-paying jobs, and building more affordable housing. We look forward to making progress on these issues just as much as we do watching new buildings rise. Here’s to a great 2020!