Tampa Bay Report: Plenty of Action Downtown

Tampa's Channelside District is center of current downtown development

By Scott Judy

Contractors are hustling and bustling in downtown Tampa, mostly on emerging condominium developments, as the city's core business district continues on its path to revitalization.

Channelside, a district near the Port of Tampa, between Tampa's downtown and Ybor City, is the epicenter for the current revival, with a flock of tower cranes marking the area, which is definitely hot - at least for now.

There's the biggest and most prominent of the current slate of condos, the $85 million Towers at Channelside that Batson-Cook Co. of Tampa is rapidly erecting. The twin 29-story condos are being developed by Key Developers Group of Tampa and will face directly across the street from the existing Shops at Channelside, Florida Aquarium and a cruise terminal.

Down the street, Bovis Lend Lease of Tampa is leading the construction of the $70 million Place at Channelside, an eight-story, 808,832-sq.-ft. condo development. A planned second phase of the Place at Channelside is reported as 34-stories tall, and has been approved by the city for construction.

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A block further, Hardin Construction Co.'s Tampa office is busy on two adjacent projects. The biggest, the Grand Central at Kennedy, measures 1.3 million sq. ft. and includes 12- and 14-story buildings, with a total of 392 residential units and 1,342 parking spaces. The project also includes 55,000 sq. ft. of office space, 125,000 sq. ft. for restaurants, retail and other businesses, plus a 2,000-sq.-ft. art gallery and a 4,500-sq.-ft. community theater.

Completion of Grand Central at Kennedy is slated for fall 2007. Mercury Advisors of Tampa is the owner/developer.

Next to that, Hardin is building Ventana, a 17-story, 96-unit condominium being developed by Ware Realty Financial Services of Tampa. The 320,770-sq.-ft., twin-tower project is headed for a spring completion.

Additionally, on nearby Harbour Island, Hardin is in the early stages of its 21-story, 142-unit Plaza at Harbour Island condominium project for Patrinely Group of Houston.

There are plenty of other condo and mixed-use projects in the planning stages for Channelside and nearby areas: the 17-story One Bayshore; the eight-story Slade at Channelside; Downtown Channelside, with twin 30-story towers; the 32-story Skypoint; the 30-story Plaza at Channelside; and the 40-story twin towers of Pinnacle Place.

Then there's the Trump project.

The reportedly $260 million project remains in limbo, due mostly to budget issues. Both Bovis Lend Lease and, most recently, Turner Construction Co. were previously associated with the 52-story project, which had first been announced in January 2005 by Donald J. Trump of New York and SimDag-RoBEL of Tampa.

Units had been reported as ranging from $700,000 to more than $6 million at that time. David Hooks with the developer reported that the project was planning to name the new contractor in late July or early August.

Continued Momentum?

The question is, with a lull in multifamily starts, is the current activity in Channelside a one-time burst of activity or the true start of continuing momentum for downtown development?

According to information on the Tampa Downtown Partnership's Web site - supplied by CB Richard Ellis, the City of Tampa, Hillsborough County and other groups - there are currently roughly 600 residents living in downtown Tampa. Approximately 460 units will be added in 2006, bringing the number of residents to about 1,200 by 2007.

Currently, the report added, there are about 2,282 residential units under construction downtown, with another 3,336 units proposed.

In all, the total amount of residential development for Downtown Tampa - including completed, under construction and proposed - is about $1.7 billion.

The same report compared the current activity to the recent past. From 2000-2005, the TDP report said, there was about $613 million of development within Tampa's downtown area. At the time of the report, there was $812 million of development under construction, and another $2.2 billion proposed.

"I don't see a drop in activity," said Christine Burdick, president of the Tampa Downtown Partnership, an organization that promotes development in the city's core business district. "I'm not sure that every one of those 27 (announced) projects will be built, but I'm confident we will continue to have a good, strong market. If half of what's been talked about is built, Tampa will be changed forever."

Dave Marshall with Batson-Cook Co. in Tampa said the Channelside market was "sorting itself out" right now, with a possible pause as the private sector plans its next developments there.

"That's an exciting place to be," Marshall said. "The developers and architects have done a great job of making it very attractive."

Kevin Bowen, senior vice president with Bovis Lend Lease, added that he anticipates "a few more enhancements" to the Channelside area. "There are going to be some additional things happening down there," he said.

Page McKee, senior vice president with one of the busiest contractors in Channelside, Hardin Construction, added that Channelside's growth has been surprising. "With the addition of both high-rise condos and various loft developments nearby, and its closeness to Harbour Island, I think it will continue to grow and prosper," he said.

Batson-Cook's Marshall was hopeful that the current round of development will lead to some other types of projects.

"Hopefully it won't all be condominiums," he said. "They're nice for the skyline, but I think they're going to spin off some retail development and other opportunities."

John LaRocca, a principal with Murphy LaRocca Consulting Group and a former chairman of the Tampa Downtown Partnership, sees the development in the Channelside district - and the rest of the central business district - as part of a long-term trend and not some short-term fancy.

"There continues to be optimism that there is opportunity out there," he said. "Now, what are the realities of ultimately financing the deal, finding a buyer and ultimately constructing the project based on interest rates, economics, price, value, cost of construction and the reality of the cost in the marketplace? That's a whole other issue."

For the core business district as a whole - including Downtown, Channelside, Ybor City, Harbour Island and immediately surrounding areas - LaRocca said, "I think it has crossed the threshold and has begun redefining itself as a mixed-use city center with true, in-town, connected neighborhoods. (But) it's not finished by any stretch of the imagination."

USEFUL SOURCES:

Tampa Downtown Partnership
http://www.tampasdowntown.com/default.aspx

The Place at Channelside
http://www.theplacecondos.com/thePlaceFlash.html

Trump Tower Tampa
http://www.trumptowertampa.com/