Developer resuscitates stalled St. Pete affordable housing project

An affordable housing-focused developer is breathing new life into a long-dormant, $67.2 million project in west St. Petersburg after several years of uncertainty.

Washington D.C.-based Gravel Road Partners is now building Sixty90, a 204-unit apartment community with ground-level retail space. Pinellas County commissioners unanimously approved $6.71 million in funding for the new iteration, which will dedicate 60% of its units to households earning up to 80% of the area median income.

Local real estate investment firms DDA Development and Backstreets Capital first proposed Sixty90 in December 2020. Tyler Herbert, founding partner of Gravel Road Partners, said keeping most of the original design should allow his company to break ground at 6090 Central Ave. this summer.

“I think one of the big things that differentiated the project, both from the county and city’s perspective, is the level of affordability,” Herbert told the St. Pete Catalyst. “Also, everybody’s really excited to see this project come out of the ground. The site’s been cleared for years.”

Sixty90’s previous developers initially planned to reserve 90% of its units for households earning up to 120% of the area median income, which is now $100,150 for two people. The remaining 10% would have featured market-rate rents.

However, post-pandemic construction costs soared. By April 2022, the percentage of workforce housing units plummeted from 90% to 20%, and the number of market-rate apartments increased to 21.

DDA and Backstreet later returned $3.5 million in Penny for Pinellas funding as the project stalled. The development group, which spent $350,000 on site and design work, listed the fully entitled, 3-acre property for sale in early 2023.

“Everybody was very optimistic that something would be built there,” Herbert said. “So, to kind of revitalize this and actually get it out of the ground — everybody has been very supportive of that.”

Herbert said his firm knows and respects the previous development team. The two groups began ironing out a deal last summer.

DDA “did a great job” of designing Sixty90, Herbert said. “But it just wasn’t economically viable for a full market-rate project.”

Gravel Road is also requesting $6.71 million from the city. Herbert reiterated that local housing officials are “extremely supportive.”

He noted that developers can essentially charge market rates — or higher — for workforce housing (120% of the area median income). City Council member Richie Floyd recently said those monthly rents can now reach $2,800.

“At Gravel Road, we really don’t view that as addressing the problem or doing anything to provide additional affordable housing,” Herbert said. “There’s a better way to go about this. … We’re workforce developers, but our North Star really is going to be 80% units.”

Gravel Road will reserve 122 of Sixty90’s units for households earning up to 80% of the area median income – $66,800 for two people. Two teachers would not qualify, and Herbert said keeping the remaining 82 apartments at market rate would accommodate those people and create a mixed-income community.

“We think that showing economic mobility across different unit types and income levels is actually healthier, from a community-building perspective.”

Herbert said the initial developers “originally designed this project as high-end, Class A luxury.” Gravel Road is working to maintain previously planned amenities, despite lower income thresholds.

The four-story complex will feature 5,000 square feet of retail space fronting Central Avenue, a clubhouse, a pool with lounge areas, a fitness center, a pet run and coworking space. One of two courtyards will likely offer a playground or children’s activities.

Herbert said he and co-founder Thomas Toepke also want to partner with a child care provider. The two have long strived to provide that “huge asset” for families, particularly single parents, in their communities.

“There’s some complexity to that, but we’re pretty passionate about solving it,” Herbert added. “We’ve already started talking with the team at the city, who has done some early work on day care facilities in different multifamily communities.”

A wrapped parking garage will offer 271 vehicle and 218 bicycle parking spaces. Apartments average 1,022 square feet, and all will feature vinyl plank flooring, private balconies or patios, energy-efficient appliances and in-unit washers and dryers.

“You can come in and build an affordable project and really save the dollars on the amenities,” Herbert explained. “And in some cases, that is the difference between the project coming to life or not. So, I don’t fault any developer who isn’t able to offer an amenity set.”

However, he said strong support from the county and city should allow Gravel Road to continue offering “market-rate level amenity packages” in affordable housing developments. “Everything is about trust.”

GRP completed the Bayou Court Apartments in southern St. Petersburg under budget and on schedule, despite a devastating 2024 hurricane season. The affordable development prioritizes local public school and government employees.

“If those folks can’t afford to live in the communities they serve, then it’s not just a housing issue anymore,” Herbert said. “That’s an economic crisis.”

In December, Herbert and Toepke returned over $24,000 in public funding to both the county and city, likely the first such repayment in local history. The two hope their efforts can inspire other developers.

“People need to stop looking at it as a subsidy and really more as an investment into essential infrastructure,” Herbert said of housing funding. “If these cities and counties are investing in us, then we’re going to treat them like any of our other investors, where, if we do better than we thought, that money goes back.”

This content provided in partnership with stpetecatalyst.com.