Redevelopment site in downtown Sarasota sells for $32 million
By Breanne Williams
Tampa Bay Business Journal
Published: Jun 1, 2023

A Virginia-based real estate investment firm has purchased more than 3 acres in downtown Sarasota for $32 million.

An entity linked to SteeleHarbour Capital Partners purchased seven parcels near the intersection of Orange Avenue and Ringling Boulevard, according to Sarasota County property records. The deal closed on May 24. The sellers were Capstone Group Holdings LLC and Ringling and Orange 3 LLC.

The sellers were represented by Steven Horn and Jag Grewal of Ian Black Real Estate. The buyer has not yet announced its redevelopment plans, according to the brokers.

The seven properties are at 1520 Cross St., 1530 Cross St., 1544 Cross St., 301 S Pineapple Ave., 200 S Orange Ave., 300 S Orange Ave. and 1520 Ringling Blvd.

“The property allows for condos, apartments, hotel, retail,” Horn said in a statement. “This and the $24 million deal we negotiated for the sale of the Zenith building downtown earlier this year are probably the most significant — apart from The Quay — to occur in downtown Sarasota in a long time.”

Grewal and Horn worked on this deal for 10 months without bringing the property to the open market. Grewal said they were looking for the “right buyer who would have both the financial wherewithal and experience to redevelop the property.” He said SteeleHarbour Capital Group is a “great fit.”

“This has a lot of potential to play a major role in downtown Sarasota’s continued transformation, and to expand commercial activity across Ringling Boulevard in the downtown core,” Grewal said in a statement. “We are excited about the opportunity to contribute to the development and growth of downtown Sarasota, and we anticipate that our efforts will have a substantial positive effect on the city as a whole.”

The property is two blocks from Main Street and less than a quarter mile from Bayfront Park. The property is zoned for the downtown core and can be developed up to 10 stories and 50 residential units per acre by right. If affordable housing is included, that unit count could go higher.

SteeleHarbour targets middle-market investment opportunities with a “total deal size of $25 million to $200+ million,” according to its website. Since its founding in 2018, the firm has invested approximately $1 billion in real estate as a team with experience in “ground-up development, renovation, repositioning, lease-up and stabilization and fully stabilized ownership.”