Delayed apartment tower in downtown St. Pete lands loan
By Henry Queen
Tampa Bay Business Journal
Published: Sep 19, 2024

REM Capital's plans for St. Petersburg have expanded to include a proposed 16-story apartment tower abutting the downtown exit of Interstate 375.

The Florida-based company purchased the property at 747 Fourth Ave. N last month for $3.49 million from Fourth North Holdings LLC. It also recently landed a $6 million loan from PSG Lending, according to a Pinellas County deed filed Sept. 4.

REM Capital announced a groundbreaking for two other downtown St. Pete multifamily projects called Ellington Place in 2023. But those developments — located at 770 Fourth Ave. N and 200 17th St. N — never began construction due to lending marketing conditions, according to REM Capital CEO Robert Ritzenthaler.

The Federal Reserve signaled a reduction in borrowing costs on Wednesday by cutting interest rates by 50 basis points.

REM Capital expects to prioritize the construction of its 16-story tower over the other two projects, which are still expected to bring 220 smaller units to the market in downtown and the Edge district.

"It's really tough to get things to pencil. ... My expectation is things are going to improve from a lending standpoint between now and the end of the year," Ritzenthaler said during an August investors' call.

When Fourth North Holdings proposed the tower, it was expected to include 135 apartments and 70 parking spaces. The development is now expected to comprise 150 rental units and cost roughly $55 million, according to the investors' call.

Ritzenthaler told the Tampa Bay Business Journal the entitlement process is ongoing. He said the groundbreaking is anticipated for mid-2025, with completion scheduled for 2027.