Arts and culture hub The Factory St. Pete has a new owner
By Breanne Williams
Tampa Bay Business Journal
Published: May 31, 2024

The Factory St. Pete in the Warehouse Arts district has sold in an off-market transaction to a local investment group following years of instability.

The creative and cultural hub at 2606 Fairfield Ave. in St. Petersburg’s Warehouse Arts district includes roughly 90,000 square feet of buildings on 6.5 acres that abut the Pinellas Trail. It is home to several cultural concepts, including The Fairgrounds, Daddy Kool Records, Florida Wildlife Corridor Foundation, Drew Marc Gallery, Heiress Gallery and the Museum of Motherhood.

Joe Esposito, managing principal of AXXOS, represented the buyers. Jon Wittner of KW Commercial represented the seller of the property.

“Given that this acquisition took well over a year to orchestrate, this is a testament to both our perseverance as well as our commitment to finding unique and valuable opportunities for our customers and clients,” Esposito said in a statement. “The Factory is a cornerstone of the Warehouse Arts district, and we saw an incredible opportunity to further enhance the property’s feasibility and thus preserve its impact.”

A foreclosure action was filed on the property in 2022. Esposito said the property has faced “significant vacancy” issues and “cash flow concerns.”

Jake Wollman of KW Commercial and Esposito secured a large tenant for the site, a deal that Esposito said will significantly improve the property’s “long-term cash flow and, ultimately, the asset’s risk profile.”

Esposito said the tenant will fill a roughly 35,000-square-foot space at the property. He declined to identify the tenant.

“The camaraderie between AXXOS and KW Commercial to bring about a suitable tenant of merit was absolutely pivotal in the construction of this opportunity,” Esposito said in a statement. “Our joint collaboration on that front and expertise in tenant placement was vital in stabilizing the asset and ensuring its long-term success.”

Esposito said the acquisition will ensure that the property remains a vital part of the Warehouse Arts district while “simultaneously providing solid returns for the investors involved.”