Treasure Island condos secure $29 million construction loan
By Breanne Williams
Tampa Bay Business Journal
Published: Oct 21, 2021

A boutique condominium development on Treasure Island has secured a $29.2 million construction loan from Trez Capital, a private real estate lender.

The Treasure Island Ocean Club at 11500 Gulf Blvd. will be redeveloped into a six-story boutique condominium called Ocean Club. The 22,328-square-foot hotel, Treasure Island Ocean Club, was purchased for $12 million by Treasure Island Investment Holdings LP, a corporate entity linked to Clearwater-based Lumar Holdings.

Ocean Club will feature 63 units with prices ranging from approximately $700,000 to $900,000. According to Trez Capital, the boutique condominium is nearly 50% sold. Construction is currently underway on the 1.26-acre development.

Lumar is also behind Azure and Avalon Beach Club in Clearwater Beach.

Pinellas County has in many ways become a focus for Trez Capital, and in the past year alone, the group has deployed approximately $83 million in construction financing in the county. This is the third condominium construction loan Trez Capital has made to this developer over the past two years for waterfront condos in Pinellas.

“We are really bullish in all of Florida,” Brett Forman, Trez Capital executive managing director, Eastern U.S., told the Business Journal. “I’ve lived in Florida since 2004, and I’ve watched Florida from even before that. Everyone knows Florida has always been a growth engine for the United States. It just grows, though sometimes it has its bust cycles.

“But I think what we are seeing now — and it’s only been accelerated by the pandemic — is growth in real employment, real jobs, higher-paying jobs. It used to be where you go to retire or vacation, so the job market though it expanded, wasn’t as much of an intellectual workforce or a higher paying workforce, and now we are seeing Tampa, Pinellas County, Miami-Dade through Palm Beach, Orlando are all just on fire.”

That consistent growth has led to Trez Capital seeing a rise in demand for residential opportunities across the state. In September, Trez funded a $21.5 million loan for Azure, and in September 2019, Trez Capital closed on a $16 million loan for Avalon Beach Club in Clearwater.

In January, the company provided $15.61 million in construction financing for a new development called The Harbor at Town Center, constructed by a different developer in Madeira Beach. Forman added that Trez Capital “puts our money where our mouth is” and greatly values repeat relationships.

The building will have two-bed, two-bath units that are approximately 1,000 square feet. They will “come with high-end finishes” and balconies that offer views of the beach and the Gulf of Mexico. Ocean Club is expected to be completed in the fourth quarter of 2022.

The development will also have a variety of amenities, including a pool, spa, fitness center, lounge, rooftop terrace and beach access.