Real Estate in Tampa
Craig Kincheloe
813-336-5835813-336-5835

August Digital Magazine 2020

TAMPA BAY INSIDER

FEATURES, TRENDS, AND EVENTS FROM:

Developer of Riverwalk Place, the 50-plus story mixed-used tower in downtown Tampa, unveils redesigned hotel-condo

 

The developer of one of downtown Tampa’s most anticipated towers has unveiled new plans for the project — a new vision that subtracts condominiums, adds hotel rooms and significantly reduces the tower’s height. Two Roads Development filed new plans with the city for a 37-story hotel-condo tower on the vacant site at the intersection of Ashley Drive and Brorein Street. The hotel is on floors one through 13, with ballrooms on the 12th and 13th floors. The condos begin on the 14th floor.

The tower will be home to 222 hotel rooms and 230 hotel-branded condominiums. Arquitectonica Studios, a Miami-based architecture firm with a global portfolio, is the new architect on the tower. Gensler was the architect on previous iterations of the tower.

The plans are a significant shift for Riverwalk Place, which was first introduced in 2015 as a 50-plus story, mixed-use tower with luxury condos stacked on top of office space. The original developer, Feldman Equities, brought Two Roads in as a residential developer in 2018; Feldman exited the deal in March. Two Roads is now the sole developer, and GPB Capital is an equity participant.

With a “café and open-air gourmet restaurant” on the ground floor of the project, the new plan holds true to Feldman’s initial vision of a building that interacts with and activates the Tampa Riverwalk.

Shortly after Feldman’s exit from the project, Two Roads said it was in discussions with a hotel flag for a portion of the tower and said it was returning condo deposits while it worked through a redesign of the tower. Two Roads did not identify a hotel flag in Tuesday’s updated plans but said it “looks forward to announcing the brand in the coming months.”

The introduction of hotel rooms has dramatically reduced the number of condominiums in the tower. At one point, Feldman and Two Roads scrapped office space and planned to devote the entirety of the 50-story tower to 288 condos. By Tampa standards, nearly 300 units in one project is a massive undertaking. Developers typically presale units before beginning construction, with industry standards ranging from 40 percent to 60 percent of units presold to secure construction financing.

The hospitality sector has taken a massive hit during the novel coronavirus pandemic, and some financiers say hotel construction loans will be among the hardest to secure, at least in the short term.

It is the third project in Tampa to pursue hotel-branded condominiums. The Edition is a hotel-condo under construction in Water Street Tampa, featuring 37 luxury units atop a boutique hotel. Related Group, based in Miami, has also said it intends to pursue a hotel flag — to manage its strictly residential project on Bayshore Boulevard.

Read full article by clicking here.

Craig’s Take:

This project has many iterations dating back to the 2000’s with its first iteration a 52-story Trump banded high rise. That project ended never coming to fruition and turned out be a disaster for many who put deposits down. This most recent major redesign of this project is a massive disappointment in my book. The original plan at 50 plus stories had it set to be the tallest residential high rise building on the west coast of Florida.  That plan included 288 luxury condo residences ranging from 1,128-4,500 sq. ft. with pricing starting in the mid-700’s. The new 37 story design will no longer be the tallest residential building on the West Coast of Florida. It will barely stand taller than the 34-Story Element which is currently the tallest residential building in Tampa. Even more of a disappointment, it will not be the tallest residential building in Tampa Bay. The recently constructed One in St Petersburg stands at 41 stories. In addition to the already existing One in St Petersburg there is another project in the early stages of design called 400 Central. This building is slated for 46-stories and if constructed would be the tallest residential building on the West Coast of Florida. In my opinion it is very disappointing that downtown St. Petersburg will be home to the two tallest residential high rises in Tampa Bay. This is a reminder that residential living in downtown Tampa still lags downtown St. Pete. In my opinion the viability of Riverwalk Place project is still in serious question. I do understand the thought process of partnering with a hotel brand to offer residencies with the benefits of a hotel’s line of full-service amenities many of which luxury condo buyers desire. This could play as a smart move. It is important to note they are not the only players in town with this concept. The Edition which is in partnership with the Marriott brand. The other project recently discussed was the Related Group’s two condo towers proposed on Bayshore Boulevard south of W Bay-to-Bay Boulevard. This project is in the early stages but has gained a lot of attention because of its partnership with the Ritz-Carlton brand. The developers refunded all deposits and will have to begin the entire sales process again once floor plans and pricing have been finalized. Additional hurdles include timing. The timing when they begin to take reservations again will not be nearly as favorable as the last time. Between the pandemic, the tightening in residential and commercial financing, and significantly more competition in the luxury condo market in downtown Tampa and Bayshore Blvd all make for a difficult road ahead. The key to the Riverwalk Place succeeding will be how quickly they will be able to go through the sales process. For a condo project to obtain financing to begin construction they must have a certain percentage of contracts. Typically, that number is in the range of 50%-60% of the total units to be constructed. The way the sales process works in high-rise development is the developer begins by taking reservations. The reservation deposit secures the unit and pricing for the buyer. The reservation deposit is fully refundable. The next step in the process is to go from reservation to contract where the deposit typically increases from a reservation deposit of $10,000-$25,000 to 10% of the contract price and at this point the deposit becomes non-refundable. The next step in the process after contract is an additional deposit of 20% of the contract price which is due at groundbreaking. It is at this point the project being constructed becomes a reality. I would not be surprised if this project goes through its fourth redesign only for it not come to fruition likes its three other predecessors.

 

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Check out

MEDS (Meditation, Exercise, Diet, and Sleep)

In a time where self-care is essential, following a MEDS (Meditation, Exercise, Diet, and Sleep) plan will not only add to your life, but it could create a centering space of sanity and wellness. Check us out every Monday on the Kincheloe Group’s Facebook Page for #MindsetMonday where will be sharing our weekly MEDS for you to follow.

Check out these free apps (downloadable for iPhone or Android).

Meditation

Aura

If Simple Habit is for busy bees, Aura is for hustlers who have barely enough free time to read this blurb. Just stop reading and download this app. For anyone else who maybe needs a way to help quickly calm their nerves before a date, soothe their worries during an airline takeoff, or get jolted out of a moment’s panic, Aura may be a good choice. Its collection of three-minute sessions and 30-second anxiety busters are designed to save you from such intense situations.

Exercise

Skimble’s Workout Trainer

Skimble’s Workout Trainer app offers exercises and training routines for total newbies and gym veterans alike. A simple questionnaire measuring your physical fitness will generate recommended exercises and workout plans personalized to your fitness goals. Notifications, reminders and streak and stat tracking help keep you focused; users can even hire one-on-one trainers with different fitness specialties.

Diet

Food Intolerances

Food Intolerances is focused on aiding people with allergies and food insensitivities. It’s targeted at people with conditions such as histamine intolerance, mastocytosis, fructose malabsorption, sorbitol intolerance, gluten sensitivity, and lactose intolerance. The app contains a database of hundreds of foods, and will tell you whether a particular food is compatible with your allergies or food sensitivities.

Sleep

Noisly

This super simple app lets you choose from a bunch of different sounds (like thunder, wind, white noise, and even the buzz of a coffee shop) to create your ideal sleep soundtrack. You can create a combo of sounds you love that you can save in the app for future use. Pro tip: If you’re using it overnight, keep your phone plugged in—otherwise, you may wake up to a dead battery.

 

Tampa Foodie:

The Tampa restaurant chain SoFresh is ready

to capitalize on retail vacancies from the pandemic with

three new stores in the works

 

Fast-casual restaurant chain SoFresh is ready to capitalize on the real estate fallout from the novel coronavirus pandemic — beginning with a new location in Tampa’s Westshore business district.

SoFresh is taking over the former Fitlife Foods storefront in Town Square Center, a Regency Centers Corp. owned shopping center at the intersection of Westshore and Kennedy Boulevards. Its neighbors in the center include Starbucks and Panera as well as a soon-to-be vacant space occupied by Pier 1 Imports.

The new SoFresh is also just a block away from Fresh Kitchen, a Tampa-based concept that is one of SoFresh’s top competitors in the healthy, build-your-own meal space.

The pandemic has wreaked havoc on restaurants and retailers, leaving retail property owners bracing for impact as experts predict a coming wave of bankruptcies and vacancies. But fast-casual restaurants like SoFresh, which already had an emphasis on takeout and delivery meals, were better prepared to weather the pandemic and state-ordered dining room closures than their counterparts in casual and fine dining.

Before the pandemic, SoFresh’s business was split about 50/50 between off-premise and in-store dining, said Clay Donato, partner and vice president of development. Now, about 90 percent of its sales are for off-premise dining, though it varies by location. Donato predicts in-store dining sales will eventually rise, but even after the pandemic, SoFresh predicts that off-premise dining could be as high as 60 percent to 70 percent of sales.

That shift has already changed SoFresh’s real estate strategy. Donato said the company’s average square footage was between 1,600 and 1,800; now, SoFresh is targeting stores between 1,100 and 1,400 square feet. Startup costs have declined as a result. While SoFresh stores previously cost between $400,000 and $500,000 to open, the projected startup costs are now between $325,000 and $400,000, Donato said.

The new Westshore location is 1,250 square feet. “We are getting a lot of calls from retailers looking to exit space, so there’s an opportunity for us to take over existing leases,” Donato told the Tampa Bay Business Journal. “I think we’re going to see more of that over the coming months. I think it’ll be a while before the bottom falls out.”

Donato said SoFresh is in active negotiations for locations in Lakeland and Carrollwood, though he declined to identify the spaces. The Lakeland location would be a takeover of an existing space in a Publix Super Markets Inc. anchored shopping center; the Carrollwood storefront is currently vacant.

SoFresh currently has locations in downtown Tampa, South Tampa, Lakewood Ranch, Westchase and near the University of South Florida as well as a growing footprint in the Pittsburgh region.

To read full story click here.

 

Winter gets a hotel:

Dolphin’s Beach Club

opens on Clearwater Beach

Clearwater Marine Aquarium and Page Development Group executives cut a ceremonial ribbon this week to celebrate the opening of eco-friendly Winter the Dolphin’s Beach Club, inspired by the famous dolphin with a prosthetic tail.

Located at 655 S. Gulfview Blvd., the 91-room beachfront hotel boasts an outdoor pool with beach cabana rentals, as well as two on-site restaurants, Cabanas Coastal Grill and Cabanas Beachside. It is managed by Tampa-based McKibbon Hospitality.

The hotel is considered eco-friendly as it eliminates the use of single-use plastics and has installed special window treatments to reduce energy as well as special lighting that won’t affect newly hatched sea turtles.

The renovation process started late last year and more than $2 million was invested into it. A portion of proceeds from each room night will go directly to CMA for research and marine mammal care. Even though the hotel is opening during a pandemic, it is expected to attract visitors to the area as the beaches have reopened. “The virus has perhaps delayed opening to where it is today,” CMA CEO Frank Dame said, regarding the impact it has had.

“When we were at the point where the beaches were shut down, we were able to get in there and work faster [construction wise],” said Page Development Group President Steve Page. “As far as timing, we’d all like to have a big grand opening, but we had to have more of a scaled back opening. I’m not too worried about occupancy as that improved significantly once they reopened the beaches.” The idea to turn an older existing Choice hotel into a Winter-themed hotel was born out of a meeting in Clearwater that took place back in January. Clearwater Marine Aquarium CMO Bill Plotts and Page Development Group started talking about working together to promote conservation, according to Dame.

Winter lost part of her tail in an accident and had it replaced with a prosthetic tail. She is the subject of the book “Dolphin Tale,” which later became a major motion picture in 2011. Winter and her story helped bring global attention to CMA.

Page Development Group was already in the early planning stages for the site prior to the discussion. “Before this opportunity, we were hoping to renovate the hotel and call it Dolphin Sands. As we started down that path with the dolphin theme due to the beachfront property, we started talking more with aquarium. We decided it was a great fit for them and for us,” said Page.

Read the full article here.

There’s a new

Margaritaville hotel

coming to Tampa Bay

Margaritaville, a Jimmy Buffett-inspired lifestyle brand with resorts and restaurants across the globe, is opening its first Compass by Margaritaville, a new hotel concept for the brand, on Anna Maria Sound on July 15.

Developed by Floridays Development Company and managed by Hostmark Hospitality Group, the hotel is located on a 220-acre private island community. The hotel will be six stories with 123 rooms, including 10 suites.

New hotels could help Tampa Bay’s struggling tourism industry, which has taken a massive hit during the Covid-19 pandemic.

The hotel features Margaritaville’s standard amenities including bedding, oversized bathrooms with rainfall showers and smart TVs, complimentary daily breakfast, high-speed Wi-Fi, lounge where guests can find books, board games, cards and other table games and a cabana stocked with snacks.

“As a global lifestyle brand, it’s of utmost importance to our team that we’re constantly innovating to meet the ever changing needs of our guests,” shared Rick Cunningham, vice president of hotel development at Margaritaville Hospitality Group. “Compass by Margaritaville not only provides comfort and convenience in a more boutique format, but it also offers an ideal design concept for new builds, adaptive reuse and conversion projects.”

This is the second Margaritaville concept on Anna Maria Sound — the company has its One Particular Harbour residence there as well. The brand has locations across the state including in Kissimmee, Hollywood, Key West and Pensacola.

To read full article click here.

Miami’s Related Group

unveils luxury hotel flag

for its ultra-modern condos

on Bayshore

 

Related Group has struck a deal with The Ritz-Carlton for the branding and management of its ultra-luxe condo towers on Bayshore Boulevard.

Related, based in Miami, plans to replace the aging Bay Oaks apartments with The Ritz-Carlton Residences, Tampa. The Ritz-Carlton Residences will include 170 condos in two towers and 12 townhouses. The project is strictly residential; the property will be managed by the hospitality giant and bear its name. Ritz-Carlton is a name that has been conspicuously absent from Tampa Bay for years, even as resorts around Florida bear its name. The company has a hotel and branded condos in Sarasota and resort properties throughout South Florida as well as in Orlando, Naples and Amelia Island.

The Tampa Residences is Related’s first deal with Ritz-Carlton, said Mike Hammon, Related senior vice president. Related had discussed previous projects with Ritz-Carlton, both domestically and internationally, but Tampa’s is the first to come to fruition.

“It’s no surprise that Related has again committed to a flagship and unprecedented project in the Tampa market,” the mayor said in a statement. “Their partnership in the city of Tampa could not be more welcome. This Ritz-Carlton partnership is just further proof that, despite our current unforeseen struggles, we continue to be one of the most vibrant cities in real estate.”

Ritz-Carlton has always been Related’s top pick for branding the condos, Hammon said, since it began planning the redevelopment of the Bay Oaks property. Pricing will likely be north of $800 per square foot, which would put units between $1.8 million and $5 million, Hammon said. That pricing is in line with the Edition Tampa, where the condo prices begin at $1.8 million. Both projects have top-of-market pricing for Tampa.

To read full article click here.

Craig’s Take:

This project marks the third project in Tampa to combine a luxury hotel brand with private luxury residences. This is common practice in major cities like New York City, Chicago, and Miami. One of these projects is The Edition Hotel and Residences which is part of the Water Street project. That building is located directly across the street from Amalia Arena. The Edition is already under construction and is scheduled to be completed next year.

The second project, Riverwalk Place, was just announced. They have not yet announced the partnering hotel brand. Construction date has not been determined and the earliest possible completion date would be 2024. The Related project is unique in many ways. They are the first to bring the Ritz Carlton brand to Tampa. There have been many other developers who tried and failed over the past 20 years. I feel confident that if anyone can do it George Perez and The Related Group will be able to make it happen. Additionally, the project is exclusively private residences so while it has the amenities of the Ritz Carlton flagship the residences will not be sharing them with hotel guests. This is a huge distinction between the two other projects.

 

Housing Report:

Tampa’s Housing Market Health

 

 

Tampa Bay Featured
Luxury Listing

This month we are featuring the home from Tim Burton’s 1990 movie, Edward Scissorhands, which is on the market for $224,000. While this isn’t a “Luxury Listing” it definitely is one of Tampa Bay’s most unique circumstantial homes.

Located at 1774 Tinsmith Circle, the house was the filming site for the family home in Burton’s movie 30 years ago. During that time, the homes in Carpenters Run subdivision of Pasco County were painted bright pastel colors.

In the movie, Edward Scissorhands (played by Johnny Depp) was created by an inventor who died before being able to replace his scissor hands with real hands. Taken in by a suburban mom, Scissorhands falls in love with her daughter, Kim Boggs (played by Winona Ryder).

The 1,432-square-foot home was built in 1989 and features three bedrooms and two bathrooms. According to the listing, the home’s master bathroom has been completely remodeled and all three bedrooms have updated flooring. Its kitchen countertops and cabinets are original to the home, which has had two owners total.

The listing agent, Stacie Savoy, said her favorite parts of the home include its master bathroom, with a large, stand-up shower and the backyard, where the barbecue scene in Edward Scissorhands was filmed.

Craig’s Take:

 

The originally creation of Edward Scissorshands was set in suburban Burbank, California. Lutz was the perfect 1990’s suburban backdrop. Although I am not so sure they would choose it today as the area has dramatically changed with new development all around. The home has some wood siding which is commonly found in California where most of the homes are built from wood completely. There is nothing fancy about this home, but the history is second to none. Having sold a home in this neighborhood a few years ago, many of the neighbors are aware and proud of the history of this home. The home went under contract in less than 10 days. This is not due to the history of the home, but rather the lack of supply and strong demand in this price range.

 

 

 

Tampa Bay Featured

JUST SOLD
Luxury Listing

It’s been a summer of eye-popping sales in Tampa Bay’s luxury residential real estate — and the deals include the purchase of a penthouse in downtown St. Petersburg for a record-setting $1,300 per square foot. The condominium, on the 41st floor of ONE St. Petersburg, sold for $5.1 million to a Pennsylvania buyer on June 12, according to Pinellas County property records.

That breaks down to $1,304 a square foot — a record-setting price per square foot for a condominium in Hillsborough and Pinellas counties. It is rare in the Tampa Bay region for residential properties to breach the $1,000 per square foot threshold. That price point is much more common in Miami, though Sarasota real estate has that benchmark more often in recent years.

The deal comes in the wake of several multimillion-dollar residential real estate transactions — and luxury agents say there is more to come as buyers look to leave the densely populated Northeast in the wake of the novel coronavirus pandemic. Many of the homes currently in play are off-market, meaning they aren’t officially posted for sale in the Multiple Listing Service but their owners have told real estate agents that they’re willing to sell for the right price. Like many of the region’s top-tier residential properties, the condo was never on the market.

 

Craig’s Take:

The bigger story than this sale is that there have been five condo sales above $1,000 per sq. ft. in the past year. This sale was not an isolated sale. More impressive is the fact four out of the five sales closed during the pandemic. The data supports the luxury condo market is stronger than it ever has been in amidst of the worst pandemic our country has been in the past 100 years. You may be thinking to yourself “what is the cause of this”. Is it because of historic low interest rates? The answer is no. All five sales were cash sales. If it is not that, than what is it. Well, there are many reasons. I will go into just a few. The first is Americans are spending more time in their homes than in recent decades. This has caused many people including the wealthy to reassess their home needs and in doing so have realized spending more to obtain peace of mind and happiness is a small price to pay when so much of their time is spent there. The other reason is lack of inventory. The third is the awareness of the ability for many American’s to work remotely not just through the pandemic but beyond. This has allowed American’s to make decisions on where they want to live based on desirability and not proximity to work. This has created more people moving to Florida because of the quality of life, weather, no state income tax, lower population density, and affordability. I expect this trend to continue beyond the pandemic and I expect the wealthy to continue to flee large cities with high state income tax for places like Tampa Bay.

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