5 big deals for downtown St. Pete in 2015
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Dec 29, 2015

The vibrancy of downtown St. Petersburg continues to draw investors and developers to the city's urban waterfront.

The last year saw several luxury condominium developments break ground and more interest in downtown office space. Hofbräuhaus has transformed the former Tampa Bay Times cafeteria into a destination that regularly attracts crowds beyond capacity.

Here's a look back at some of the biggest deals in downtown St. Pete in 2015:

Million-dollar condos: The city's luxury condo market is even hotter than some developers anticipated. Kolter Group is about three months ahead of schedule on ONE St. Petersburg, a 41-story, 253-unit tower on Second Street North. The average price of units in ONE and in Bliss - an 18-story tower already under construction at 176 Fourth Ave. Northeast - is $1 million.

The luxury condo units, developers say, are drawing locals who are downsizing as well as some from out of town, purchasing a weekend getaway or seasonal residence. Finally, a future for the pier: The embattled St. Petersburg Pier has a solid future ahead of it. City council in May selected Pier Park as the design for the new pier, and demolition began in August. Once complete, the new pier will create another destination and gathering spot for the city - which is already a thriving tourist destination.

The office market: Downtown St. Pete has traditionally been an arts-and-entertainment destination, anchored in recent years by more people moving to the urban core. But in the last year, the city's downtown office market has strengthened, as more companies want to locate in a live-work-play environment to attract young, educated talent.

In April, Twinlab Consolidation Corp. (OTC: TLCC) signed a deal to relocate its headquarters from New York to St. Pete's First Central Tower. That was one of several big deals First Central would win in 2015. Morgan Stanley Tower and City Center both reached 100 percent occupancy this year.

Kucera Properties sold the naming rights to the tower at 200 Central Ave. to tech start-up Priatek, renaming it Priatek Plaza. The group also started marketing the surface parking lot adjacent to Priatek Plaza as a build-to-suit office opportunity.

Grand Bohemian hotel site: The prime vacant site in the very heart of downtown St. Pete sold for $8.75 million in late September. The Connecticut developers who bought the site have grand plans: A 35-story apartment tower with 306 residential units, 8,834 square feet of commercial space and 505 parking spaces.

At 35 stories, the tower will have " amazing" views, said David Mack, the developer who's planning to break ground on the project by the end of 2016.

Hofbräuhaus: One of the year's most anticipated restaurants opened in downtown St. Pete in September - Hofbräuhaus, the German restaurant and beer garden. The ownership of Hofbräuhaus spent millions renovating the former Tampa Bay Times cafeteria into the beer hall.

The 750-seat restaurant has been immensely popular, causing three-hour wait times and lines before noon on weekends. That kind of destination restaurant can have a ripple effect on the rest of the city. If someone goes downtown for Hofbräuhaus but can't get in, they're likely to visit another restaurant.

Ashley Gurbal Kritzer is a reporter for the Tampa Bay Business Journal.