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Betting the rent on Central Plaza

Plaza Fifth Avenue apartments will go upmarket, thanks to a bullish Chicago developer.

By PAUL SWIDER
Published October 8, 2006

ST. PETERSBURG - Placing a huge bet on the revitalization of the Central Plaza area, a Chicago developer is planning to turn the Plaza Fifth Avenue apartment complex into an upscale rental community.

"We're creating a new product for this community," said Craig Knight of Providence Management Co., which paid $6.7-million in July for the 200-unit, 12-story building at 441 33rd St. N. "This is exactly what we are experts at redeveloping."

Knight said the redevelopment of the building will take two years and include adding "Class A" amenities like a fitness center and pool, as well as new fixtures, appliances and flooring in the apartments. In August the company secured nearly $23-million in financing for the effort.

"It will be a significant transformation," Knight said.

Knight said the 1962 building had been empty for more than a year when his company bought the property. He said he is working on details of design and branding with architect Tim Clemmons. The resulting complex may have fewer units as the interior is reconfigured.

Knight said the company also owns Lakeside Village Apartments on Fourth Street N, Carrollwood Cove in Tampa and a condominium complex in Fort Myers. Providence owns about 4,500 apartment units mostly in the upper Midwest and is just beginning to reach into Florida.

Central Plaza was once a thriving shopping area but fell out of favor as new malls attracted shoppers. It is undergoing revitalization as buyers rehab bungalows around the Central Avenue corridor and retailers follow. The city's planning efforts focus on Central Plaza as an ongoing center of commerce.

Knight said he identifies the apartment complex with the resurgence of the Kenwood neighborhood that is part of redevelopment's westward march.

He said the nearby bus terminal on Central Avenue, plans for bus rapid transit, and the site's positioning near downtown, Interstate 275 and the beaches will make it an attractive location for tenants. He said his company has been waiting for years for the property to come on the market.

In recent years, several apartment complexes have been sold with the buyers aiming to convert them to condos. Many conversions did occur but, as the condo market has fallen off, some have stalled. Knight said there is still a need for apartment living.

"Pinellas County has lost 11,000 apartments to condos since 2001," he said. "There is a strong demand for quality rental product."

Paul Swider can be reached at 892-2271 or pswider@sptimes.com or by participating in itsyourtimes.com.

[Last modified October 8, 2006, 07:55:14]