The general public could soon own equity in a $6.8 billion proposal to reimagine 95.5 acres of prime real estate around Tropicana Field in St. Petersburg.
Cathie Wood’s ARK Investment Management and Ellison Development announced the planned launch of two private real estate investment vehicles Monday. The firms called it a “landmark step toward democratizing access to wealth creation and innovation.”
Institutional and accredited investors can participate in the ARK Ellison Innovation Fund. The ARK Ellison Community Growth Fund will open to interested retail investors nationwide, regardless of accreditation status.
The announcement states that the funds will “establish a new model for investor participation in one of the nation’s most ambitious urban redevelopment efforts.” St. Petersburg-based ARK and Tampa’s Ellison Development and Horus Construction submitted an unsolicited proposal Oct. 3 to reimagine the culturally significant land, now home to the Tampa Bay Rays.
“This is more than a development – it’s a movement,” said Wood, founder and CEO of ARK Invest, in a prepared statement. “We believe this model will redefine how cities grow, how wealth is built and who gets to participate in that growth.”
Cathie Wood, founder and CEO of ARK Invest, moved her firm from New York to St. Petersburg in November 2021. Photo by Mark Parker.
ARK, a registered agent with the U.S. Securities and Exchange Commission, will manage both funds. Ellison will oversee development of the group’s Tampa Bay-focused real estate portfolio.
A $9 billion pipeline of mixed-use properties will support the Urban Innovation Fund, “structured in part” as a Qualified Opportunity Zone Fund. Projects located within designated Opportunity Zones, including the Historic Gas Plant District’s redevelopment, are eligible for inclusion.
The announcement states that the fund will have a “long-term investment horizon with periodic liquidity.” ARK is targeting a 15-20% net internal rate of return (IRR) and a 2.5 multiple on invested capital (MOIC).
The firm believes those target metrics align with “opportunistic and development-state real estate strategies.” A $9 billion project pipeline will anchor the fund with “ready-to-execute developments that provide geographic diversification and phased cash flow stability.”
Anyone inside and outside of St. Petersburg can invest in the Community Growth Fund. That will focus exclusively on the Gas Plant District’s 95.5-acre redevelopment, which includes Tropicana Field.
The $6.8 billion proposal includes an option for a new stadium, and the Tampa Bay Rays will remain at the Trop through the 2028 baseball season. Ark Ellison Horus would not demolish the ballpark until after 2033, if the team decides to leave, and has a plan if they want to stay.
ARK will launch app-based, tokenized and blockchain-enabled platforms that “provide transparency, liquidity and long-term traceability” to facilitate participation in the Community Growth Fund. The minimum investment is $500.
“For decades, access to wealth creation has been concentrated in the hands of institutions and the very wealthy,” Wood said. “ARK was founded to change that – to democratize access to what we believe are the most transformative investment opportunities in the world.
“Just as innovation in technology has reshaped industries, innovation in finance can reshape communities.”
The announcement noted that the Gas Plant’s redevelopment represents a “once-in-a-generation opportunity to transform nearly 100 acres of underutilized land” in downtown St. Petersburg. Stakeholders agree that the long-awaited project’s “scale, location and civic significance make it uniquely positioned to anchor the region’s next phase of growth.”
Many former Gas Plant residents and their descendants have clamored for the site to provide dedicated home and business ownership opportunities. The ARK Ellison Horus proposal outlines an innovation district with mixed-income housing, parks, “smart infrastructure,” advanced research facilities and a plethora of decentralized event spaces.
The latest proposal to reimagine the former Gas Plant community (left) pledges to “repair past harm and reinvest in the community that was displaced.”
Ark Ellison Horus expects the Gas Plant to create nearly 20,000 jobs and generate a $28 billion economic impact over 30 years. However, the City of St. Petersburg has yet to select the development team’s proposal for a “flagship project within a broader regional strategy for innovation-led growth.”
During a subsequent media conference call Monday, officials at ARK said the fund’s overarching goal is to provide “real hope and optimism for the community to play a role” in the historic project. They will immediately launch the platforms after receiving the city’s approval and establishing construction timelines.
ARK will “look for other ways to participate financially” in the Gas Plant’s redevelopment if the city moves in another direction, although that may not include an investment fund.
The Urban Innovation Fund will extend beyond the Gas Plant and focus on technology-infused mixed-use development throughout Tampa and St. Petersburg, one of the nation’s fastest-growing metropolitan areas. “No other U.S. city has combined large-scale real estate development, innovation-district creation and community participation in this way,” states the announcement.
“ARK and Ellison envision building the foundation for The Innovation Coast, spanning Tampa, St. Petersburg and the broader Gulf Coast, a region where opportunity, capital and creativity converge.”