Two towers on the horizon in downtown St. Pete could contribute to a housing surge, potentially exceeding 500 units

Preliminary approval has been granted by St. Petersburg officials for two residential towers set to introduce over 500 units to the urban core.

During a meeting of the St. Petersburg City Council, acting as the Community Redevelopment Agency, unanimous support was extended to two projects on Thursday. These developments encompass residential units, commercial space, and parking garages. Notably, Councilmembers Gina Driscoll, Richie Floyd, and Copley Gerdes were not in attendance.

It is worth noting that both projects also await approval from the city’s Development Review Committee.

The initial tower, located at 332, 340, and 344 Fourth St. S., is set to stand at 25 stories with a total of 152 units. Developed by Valor Capital, the project carries a budget of $55 million and will occupy an approximately half-acre site near the Innovation District.

Comprising 4,893 square feet of commercial space and a 130-space parking garage, the tower will replace the existing structures on the site—two apartment buildings and a condominium building. Valor Capital plans to demolish these buildings to make way for the new development.

City documents reveal that the project will adopt a hybrid model, combining features of a residential condominium and a hotel. This model provides unit owners with flexibility, allowing them to either offer their units for short-term rental or choose to reside permanently. The development will maintain 24-7 onsite staff, and owners can opt in or out of the rental program.

Positioned on the northern side of the property, the tower will create a substantial open space along Fourth Avenue South. The 25th floor is designated for a sky bar amenity area, and the units will encompass a range of studio to three-bedroom floor plans.

In a commitment to community support, Valor Capital is proposing a contribution of $550,000 to the Housing and Capital Improvement Trust Fund, specifically designated for workforce housing.

The second tower, known as Collective Central, is designed to enhance pedestrian-level activation while maintaining a respectful integration with the existing neighborhood. Don Mastry, a partner with Trenam Law representing the development team, emphasized that the project intends to serve as a link between Central Avenue and the Historic Gas Plant District. The city is currently in negotiations with Hines and the Tampa Bay Rays for the redevelopment of the 86-acre property in the Historic Gas Plant District.

Pernicious, LLC, affiliated with PTM Partners, is spearheading the development of this project.

“This is being developed by the same people that developed the west half [of the site] with the Moxy Hotel that’s about to open and so forth,” Mastry said. “So, it’s going to end up with a cohesive, unified master plan for the whole block, which is presently fragmented, underutilized and not in good shape.”

According to Mastry, the project enjoys the “total support” of the Edge District Business Association, especially anticipating the positive impact of the development’s parking component. The development team’s strategy involves constructing more parking spaces than mandated by code, with the excess made accessible for public use, effectively addressing a significant need in the Edge District.

This proposal aims to consolidate the development of the 1100 block, preserving the hotel and three structures with office and commercial spaces while demolishing two buildings. In their place, the developer intends to construct a single 20-story tower on the lot.

The estimated cost for the entire project is $98.5 million.