Downtown St. Pete market ripe for 41-story condo tower project
City Center Orlando loader
09 / 18 / 14
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A South Florida developer's plans for a new luxury tower in downtown St. Petersburg are ambitious and market data suggests the time is ripe for such a project.

A South Florida developer's plans for a new luxury tower in downtown St. Petersburg are ambitious and market data suggests the time is ripe for such a project.

The Kolter Group, based in West Palm Beach, is planning a 41-story tower that would include 253 condominium units and a 13-story hotel with 173 rooms on Second Street North, across the street from Jannus Landing, said Brian Van Slyke, an executive with Kolter who's overseeing the project.

Kolter acquired the property in July for more than $17 million. The Edwards Group, who had purchased it in April and flipped it for a seven-figure profit, was the seller.

The construction costs are pegged at $120 million. Van Slyke said Kolter, which filed its initial site plan with the city this week, hasn't yet released condo prices. Condominium buildings typically break ground after about half of the units are presold, and Van Slyke said Kolter would open a sales office in early 2015, once the city signs off on its plans.

“There's not a firm percentage that's been established, but we do want to get a certain level of pre-sale reservations before we go vertical,” Van Slyke said.

Data from the Multiple Listing Service shows that prices of luxury condos has risen over the past two years. For units priced between $750,000 and $1 million, the average price per square foot in August was $546, up from $406 per square foot in August 2013 and $325 per square foot in August 2012.

Three condos in that price point were sold in August, and 15 were on the market, meaning there's less than a six month supply of inventory. Months' supply of inventory is a real estate metric that measures how long it would take for the number of units on the market to sell at the current sales rate. Less than a four-to-six-month supply is considered a seller's market.

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