First phase opened of hotel-turned-workforce housing in Pinellas County
By Breanne Williams
Tampa Bay Business Journal
Published: Jul 28, 2022

An investor transforming two hotels into a workforce and affordable housing complex in Pinellas County is opening its doors to the first residents.

Miami-based Eagle Property Capital, in a joint venture partnership with Mexico City-based private firm Promecap, purchased the 95-room TownePlace Suites by Marriott St. Petersburg Clearwater and the 88-room Residence Inn by Marriott St. Petersburg Clearwater in April and is transforming them into Pelican Lake Apartments.

Converting a hotel to multifamily is an untraditional concept, but Humberto Cubillos, senior vice president of asset management at Eagle Property Capital, told the Tampa Bay Business Journal strategically a conversion of this type “makes a lot of sense” in the current market. The certainty in costs, execution methods and quick turnaround to provide much-needed housing are ideal, and he said they will continue to look for more opportunities like this going forward.

“Right now, to do ground-up developments is very challenging,” Cubillos said. “Not only because of what has traditionally happened with the process of entitlements and zoning, but now the construction costs and shortage of supplies and supply chain issues.”

The new apartment complex will feature 183 units, eight of which will be set aside for affordable housing while the other 175 are for workforce housing. The complex will open in phases; the first phase with 95 units is complete.

There are studios, one-bedroom and two-bedroom units on the site. Changes include flooring, from carpet to plank flooring, upgraded light fixtures, bathrooms and kitchens.

“One project was built in 1986, the other in 1999,” Cubillos said. “We’re bringing them to today’s standards in terms of finishes and looks. It’s really beautiful to see the before and after photos of the units we’ve been able to upgrade at this point.”

They have also offered some units fully furnished. Cubillos said of the units they’ve rented, approximately half of the families have requested a furnished apartment. He said it’s a unique niche in the market and speaks to a need often overlooked for families that need furnished units.

They are also considering environmental, social and governance metrics as they renovate. They are installing appliances that conserve water, upgraded electrical systems for energy conservation and a trash compactor to be more efficient with waste management.

An average of six to seven units are being rented per week, Cubillos said, which speaks to the depth of the housing crisis in Tampa Bay. He said there is an influx of people migrating from expensive cities to Florida, and in 2022 Tampa Bay has seen “more of a shortage than ever before.”

“It proves obviously there’s a need for housing in this particular gateway in Pinellas Park,” Cubillos said. “We’re coming up with a strategy that is working with what the city would like to do with the gateway, which is to build communities where people can live, work and play. We’ve set aside a retail area to rent to a grocery store and have a small grocery store for residents, and we’re building additional amenities.”

Renovations to the hotel and the new amenities will be a $3.5 million investment, according to Cubillos.

The complex, located at 13200 49th St. N, has an open house event from 1:30 p.m. to 4:30 p.m. on July 29. Pinellas Park Mayor Sandra Bradbury is scheduled to speak at the event.