Done Deals is a weekly column by St. Pete Rising spotlighting recent real estate market insight and significant deals happening in the Sunshine City and beyond. The following information is sourced from public records and trusted intel.

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City approves downtown property purchase to Third Lake Partners

Third Lake Partners, a Tampa-based investment advisory firm, will develop a new mixed-use project on a prime downtown property.

In a 6-2 vote with Councilmembers Richie Floyd and John Muhammad casting the opposing votes during the Thursday city council meeting, the councilmembers approved the sale of the 1.53-acre city-owned parcel on the southwest corner of 800 1st Avenue South for $10 million.

The property, currently used as a surface parking lot, is directly west of UPC Insurance’s former headquarters building, which Third Lake purchased in 2022 for $10.5 million.

As a condition of the sale, Third Lake Partners will be required to grant an easement to the city on 2nd Avenue South, preventing it from being vacated and developed. This will allow the corridor to continue to be used as a public right-of-way as it is anticipated to be a main thoroughfare into the future Historic Gas Plant District site.

The property was once part of a $200 million mixed-use proposal that would have included a 75,000-square-foot Moffitt Cancer Center, a 30-story residential tower, and a 14-story hotel.

Mayor Ken Welch ultimately rejected the deal as it did not meet an affordable housing requirement.

Councilmembers referenced the Moffitt deal during the meeting as it is currently unknown what Third Lake Partners intends to build at the property; however, the future site plan must go before the City Council for approval.

The city is not requiring Third Lake to provide any affordable housing in their new development. 

The project plans will not be subject to Community Benefits Agreement Council (CBAC) approval, which was required of the Moffitt Cancer Center plans 

The proceeds from the Third Lake Partners deal will be divided and transferred to the city's Economic Stability Fund and the Housing Capital Improvement Fund.

Sundial construction to continue

A judge has denied a request to halt construction on the renovation of the Sundial retail and dining complex.

New York-based Florida 2005 Theaters LLC, controlled by The Carlyle Group who own the neighboring AMC movie theater, filed a lawsuit in April against the owners of Sundial, St. Petersburg-based Paradise Ventures and Tampa-based Ally Capital Group.

The lawsuit claims the Sundial complex owners breached an operating and easement agreement (OEA), which prohibits Sundial from operating any restaurants on the ground floor of its plaza without the written consent of the owners of the AMC movie theater.

Sundial signed a lease to bring Forbici Modern Italian to the retail center in July 2023.

Although Paradise Ventures did give notice to Florida 2005 Theaters regarding their proposed renovation plans, they did not consent to the construction.

However, earlier this month, Judge Thomas Ramsberger issued an order denying Florida 2005 Theater's request.

"The court concludes that Florida Theaters failed to satisfy all of the required elements for preliminary injunctive relief and, therefore, it is ordered that Florida Theaters’ Motion is denied," Ramsberger wrote in an order rejecting the motion for a preliminary injunction.

Paradise Ventures purchased the plaza last year in a roughly $21 million-plus deal from local businessman Bill Edwards.

The partners plan to significantly activate the courtyard with a large outdoor bar and communal green space and bring new retail and restaurant tenants, which they have already secured leases with multiple businesses.  

Stormrunners Tavern, a new tiki bar and restaurant, replaces Caddy's in Gulfport

A new dog-friendly tiki-themed bar and restaurant will open next week in Gulfport.

Stormrunners Tavern, a new multi-bar and restaurant concept from Burton Holdings, the majority owner and group behind GenX Tavern and SoHo Sushi in Tampa, will open at 3128 Beach Boulevard South on September 25th.

The space was formerly home to the popular Caddy's restaurant, which closed last year.

Burton Holdings has partnered with Ian Taylor and Joey Frasco, the owners at The Galley and The Ship’s Hold in downtown St. Pete, and Dog Bar owner Fred Metzler.

The ground-floor bar will contain a dining area that opens to a side yard and an outdoor dog bar called "BARk."

The second floor of Stormrunners Tavern will have a rooftop bar and open-air patio dubbed The Crow's Nest offering waterfront views.

Stormrunners Tavern's menu will have a big emphasis on affordable seafood dishes, cocktails, beers, and wines.

Clearwater apartment tower to revert to affordable housing

A 208-unit apartment tower in Clearwater initially developed for low-income seniors before transitioning to market-rate units will once again serve the vulnerable community.

Palm Beach-based Sunrise Affordable Housing Group, which is under contract to purchase The Indigo Apartments property at 801 Chestnut Street, plans to convert it back to affordable housing.

It must remain affordable for at least 50 years, according to project documents filed with the city.

The units will all be reserved for seniors who earn less than 80% of the Area Median Income (AMI).

Sunrise has planned a $9.5 million capital improvement plan to renovate the units, upgrade site infrastructure and safety, and add green-energy initiatives within 12 months after acquiring the site.

The development team includes general contractor ETC Construction, Gallo Herbert Architects, SCT Consulting, and WRH Realty Services.

The City of Clearwater recently approved allocating $1 million from the city and $2 million from the Community Redevelopment Agency via a deferred 0% interest loan for the acquisition and rehab of the Indigo Apartments.  

As a result of the conversion, roughly 59 of the current residents will be considered overqualified/over-income.

Sunrise’s relocation plan includes advisory services, commitment funds by the developer to provide financial assistance to tenants who do not meet the new income requirement, and an appeal and grievance process.

Treasure Island property poised for condo development sells

A waterfront Treasure Island property approved for a six-story condo-hotel development has sold.

Treasure Palms Resort LLC sold the vacant site at 11295 Gulf Boulevard to an entity connected to Ryan Jaekel, a partner at Dunedin-based real estate firm Mission Group Enterprises, for $2.4 million.

The property was the site of the former Tarheelia Motel and Apartments, which had six existing units and a residential unit facing the water.

According to a listing, all necessary permits and engineering plans have been approved for a luxurious short-term rental property with 12 condos.

The condos, including a single penthouse unit, would have balconies with views of the Intercoastal Waterway. 

The property is zoned Resort Facilities Medium (RFM-30), which allows a transient hotel density of 30 units per acre.