One of the critiques of all of the housing developments being constructed in Downtown St. Pete is that much of it isn’t affordable for households making the area median income, which in St. Pete equates to about $58,000. With a few exceptions, most of the new residential units being built downtown are priced over $500,000, a figure that’s simply not attainable for many families.

The reason cheaper units aren’t being built isn’t because there’s not a market for them. There are a number of variables that go into pricing new residential units. Prices are largely a product of construction costs and land prices, among other factors. Since construction costs have increased nationally, as have land prices in Downtown St. Pete, this has led to increasing costs to build residential units in the downtown area.

One developer is hoping to reduce the cost of developing new housing units by looking to the neighborhood corridors surrounding downtown. Frederic Samson at Namaste Homes is proposing a townhome development just south of Downtown St. Pete with prices that are attainable for families making near the area median income.

Located just over a mile from Central Avenue, Sixteenth Square is planned for Dr. MLK Jr. Street and 16th Avenue South and will feature eleven two-story units. Each home will have be 1,276 square feet with three bedrooms and two and a half bathrooms with prices ranging from $235,000 to $250,000, well below the pricing for new units in Downtown St. Pete.

“We are planning to keep the pricing within the 80-120% of median income which will make it reachable for the workforce,” says Samson, “We are estimating breaking ground late spring and hope to deliver the first units late fall 2020.”

Finishes will include energy efficient appliances and low maintenance steel roofs. The exteriors will be modern with large windows to allow a lot of natural light. Community landscaping will be taken care of by an HOA. Parking will be available in a 14-space community parking lot that will be located behind the buildings. Street parking will also be available.  

Sixteenth Square will consist of three buildings, two with four units and one with three units, and will be built on a lot that’s just over 0.4 acres. This equates to a unit density of about 25 units per acre, which important because it allows the land cost to be divided between more homes. This reduces the overall land cost per unit, thus allowing the developer to offer a cheaper price to the consumer.

If Sixteenth Square is successful it could potentially have a ripple effect with similar projects being proposed for other corridors near Downtown St. Pete, such as MLK Jr. Street and 16th Avenue. Many of these secondary corridors already have commercial zoning that allows the development of multifamily units including townhomes and mixed-use projects.

Namaste Realty will be marketing the units in-house and are currently in the pre-sale process. Namaste will be working with Neighborhood Home Solutions to help qualified buyers get down payment and closing cost assistance. For more information on the units at Sixteenth Square, visit their website or call 727-547-3610.