As Tampa Bay’s luxury condo market heats up, one developer is doubling down on St. Petersburg, with two new projects planned for downtown.
Delray Beach-based Kolter Group has identified two sites that it says are ripe for redevelopment: 235 3rd Ave N — the former home of athletic retailer Fit2Run — and 333 First St. SE — where the Hilton Bayfront St. Petersburg currently stands.
“This has been a long term plan for us,” Brian Van Slyke, the company’s regional president for Florida’s West Coast told the Tampa Bay Times. “We’ve had tremendous success with our projects in St. Pete.”
Kolter purchased the Fit2Run property in 2021 for $7.5 million. Two years later, the city approved plans for a 14-story, 192-room Hilton hotel there.
Since then, Van Slyke said the market has changed, making it more difficult to turn a profit with hotels. So the company is pivoting to condos.
Last week, a nearly 90-year-old building on the site was demolished. Kolter will submit a site plan amendment to the city sometime this week or next.
That condo will be marketed as luxury, but Van Slyke said it will be more accessible compared to some of the ultra-high end projects that have flooded the market in recent years.
Kolter closed on the Hilton Bayfront property for $96 million earlier this month.
The 1970s-era hotel will eventually be demolished and replaced with another condo.
Van Slyke said they are currently searching for a hospitality brand to partner with on the project. This building will offer top-of-the line amenities a high level of service that will rival other branded projects in the region, he said.
That project is still in the design phase Van Slyke said, but they plan to build something taller than the current 15-story hotel to make the most of the water views the property offers.
Kolter will submit a site plan to the city later this year.
Kolter has already built three other condos in St. Pete: Arthouse, Saltaire and One St. Petersburg. It is also currently working on One Tampa, which is set to become that city’s largest residential tower.
When asked if there was any risk of St. Petersburg becoming oversaturated with luxury condos, Van Slyke said there was still strong demand coming from both local buyers out of state transplants.
“St. Pete just has so many positives,” he said. “It just offers such a tremendous lifestyle.”
