TAMPA, FL—In partnership with AIG Global Real Estate, Allen Morris Company just broke ground on a $70 million multifamily project called Hermitage Apartment Homes. Hermitage is a luxury project in Saint Petersburg, FL, which is part of the Greater Tampa Bay area.
Hermitage is going up at 750 First Avenue South in the heart of Downtown Saint Petersburg. The eight-story multifamily project will offer 349 units and span a full city block. TD Bank provided the financing with support from BB&T.
“There is a strong demand for multifamily residences in the downtown area of Saint Petersburg,” says W. Allen Morris, chairman and CEO Allen Morris. “This new development will be a centerpiece in a city that continues to grow as a hub for urban dwellers, from Millennials to empty nesters alike, all seeking a lifestyle where they can live, work, and thrive in a vibrant community.”
Morris isn't just offering developer hype. Hermitage's architecture draws from the city's heritage, including a focus on lighthouses that tower from the multifamily project's four corners. Hermitage is just minutes from the Saint Pete's medical and university campuses, retail shops, art galleries and museums.
“We are extremely bullish on Florida as a whole,” says Morris. “We are proud to be in Saint Petersburg and look forward to announcing additional residential development projects throughout the State in the near future.”
Hermitage is set to come online in 2016 and promises resort-like amenities including a rooftop pool and spa, fitness center, outdoor grilling area, private dining and meeting areas with expansive bay views, and contemporary art displayed in the lobby and throughout the multifamily property. Given it's location near the Pinellas County bike-jog trail, Hermitage will offer a bicycle-oriented storage and service center.
But if Allen Morris builds it, will they come. The Tampa-Saint Petersburg area has an unemployment rate of about 5.5%, according to the Bureau of Labor Statistics. That's on par with national numbers. Those numbers bode well for Hermitage's chances, given the assessment of industry watchers.
“One key factor most economists will all agree is employment,” Michael Anderson, chairman and RealSource told the over 250 RealShare Apartments East attendees. “You can have population growth. You can have a high degree of birth rate and household formations but if they are not employed they are not renting from you. Employment is becoming a very important factor.”
What's more, Tampa's multifamily market is attracting big investors. RADCO Companies and Cortland Partners are making big bets there while Altman Companies is benefitting from dispositions. Camden Bayside Apartments recently traded for $85.125 million. Cortland acquired the 832-unit luxury waterfront community.
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