Related Group Continues to Expand its Presence in Tampa's Red Hot Real Estate Market
83 Degrees, Christopher Curry | Tuesday, August 2, 2022
Miami-based development giant Related Group continues to expand its presence in Tampa's red-hot real estate market.
In July, the company purchased a prime waterfront property on the west side of the Hillsborough River for $55.5 million, with plans to develop a mixed-use project overlooking the Tampa Riverwalk. This summer, Related Group launched sales for the second tower of its The Ritz-Carlton Residences, Tampa luxury condominium project along Bayshore Boulevard. The first tower sold out shortly after the start of construction, with one penthouse going for more than $11 million.
As the master developer of the West River redevelopment, Related Group and the Tampa Housing Authority recently marked the start of construction on Canopy at West River, a mixed-income rental project that will include 196 total units of public, affordable and workforce housing spread across two towers.
Future plans in the West River redevelopment include a market-rate rental project along the river and the $500 million Rome Yard mixed-use project, a pedestrian-friendly neighborhood with multiple modes of public transportation, a workforce training center, a cultural center and an art pavilion highlighting West Tampa history.
"Tampa Bay has become Related Group's second most important market after South Florida," says Senior Vice President Michael Hammon. "I went back and calculated what we have under construction or under development in the Tampa Bay market and it's over a billion dollars. Most of that is in the city of Tampa."
The waterfront property near Kennedy Boulevard that Related closed on in July was previously planned as the site of the Lafayette Place project that never broke ground. The property is just north of Related's Manor Riverwalk luxury apartment development, which is on the site where the Tampa Tribune building once stood.
"We did the Manor Riverwalk project just south at the old Tampa Tribune site so we've been eyeing this property, being right there on Kennedy and the river, for years," says Senior Vice President for Development Arturo Peña. "When the opportunity arose to acquire it, we jumped on it."
Related's plans for the site include 32,760 square feet of retail space, 1,079 residential units, 10 boat slips and a helistop. Peña says the market rate apartments rentals will include luxury apartments, some larger than 2,000 square feet, along the waterfront and smaller, less expensive apartments away from the water. The company plans to line both sides of Parker Street with pedestrian-friendly retail shops and have a restaurant overlooking the Riverwalk.
Related is also planning $8 million worth of improvements to the Riverwalk, including a pedestrian underpass under the Kennedy Boulevard Bridge leading to Plant Park on the University of Tampa campus. Peña says they plan to start construction in approximately one year.
After the 121-unit first tower of The Ritz-Carlton Residences, Tampa sold out before vertical construction had started in earnest, Related wasted no time announcing the launch of sales for the second tower., which will have approximately 100 condominiums. Hammon says they expect completion of the first tower in the first quarter of 2024 and to begin the second tower about a year from now, with completion in about three years.
"Phase two will have similar pricing to phase one and we expect to be successful," Hammon says.
Related entered the Tampa market about a decade ago with the Pierhouse at Channelside apartments. Since then, the company's growth in the market has included Icon Harbour Island and Town Westshore, along with Manor Riverwalk, The Ritz-Carlton Residences, Tampa and West River.
Peña says Related will continue to expand its presence as businesses continue to flock to Tampa and long-established large employers such as Tampa General Hospital continue to grow.
"Related is deeply invested in the future of Tampa and committed to providing its residents with quality housing options," Related President Steve Patterson says in a statement. "As the city continues to grow and evolve, we plan to continue to add much-needed multifamily housing supply - especially in areas like the Riverwalk District - to meet demand and maximize the community's potential as a true live/work/play area."
