Exciting Progress: Greystar Development’s Bold Transformation Plans. Update: 11/8/2023
Are you ready for a big update on a promising real estate development project in St. Petersburg, Florida? The Greystar Development real estate group is making waves as they transform a massive 93-acre Gateway property into a sprawling industrial park and residential community. However, they recently faced a significant roadblock that has slowed down their timeline.
During an October 19th St. Petersburg City Council meeting, representatives from Greystar, a subsidiary of South Carolina-based Greystar Real Estate Partners, revealed a surprising challenge. They discovered adverse subsurface soil conditions at the development site, situated on the northwest corner of Gandy Boulevard and the Interstate 275 interchange.
“This is certainly not something we wanted or anticipated,” expressed Don Mastry, a land use attorney from Trenam Law representing Greystar.
These unforeseen soil conditions have caused delays in the construction of two out of the three industrial buildings. The initial space in the first phase, including the multifamily component, was originally expected to be available earlier this year.
A little background: St. Petersburg-based tech giant Jabil Inc. had previously considered this site for a potential headquarters but eventually chose a different location. Greystar Development swooped in and acquired the Gateway property in a significant deal worth approximately $32 million.
Initially, Greystar’s plans included constructing 200,000 square feet of industrial warehouse space in the first phase, covering a 60-acre portion of the property. The group has the potential to expand this to 500,000 to 600,000 square feet of industrial space at full buildout.
This project is poised to become one of the largest industrial developments in Pinellas County, with Greystar estimating that it will create at least 3,300 jobs, according to city documents.
Per the initial agreement, the industrial park must be built before or concurrently with a mixed-income multifamily housing complex on the adjacent 18 acres. The latest plans indicate that the residential project will include 412 units, with 83 of them dedicated to workforce housing. Don Mastry noted, “The city is going to end up getting an additional 90,000 square feet of industrial space.”
Greystar anticipates leasing nearly 150,000 square feet of industrial space in the near future. To facilitate this, they are collaborating with the commercial brokerage firm JLL to market and oversee the leasing of the industrial center.
The team is determined to complete the foundation for the additional industrial component by the end of the year, coinciding with Greystar’s expectations to receive the certificate of occupancy for the multifamily buildings.
In a unanimous decision, the City Council moved forward with the amended development agreement. City staff praised Greystar’s “good faith effort” to complete the project and emphasized the importance of obtaining approval to prevent the multifamily portion from sitting empty for a year.
While unexpected challenges have emerged, Greystar Development remains committed to turning this ambitious vision into reality. Stay tuned for more updates on this exciting transformation in St. Petersburg!
Julia Silva Industrial Real Estate Tampa Logistics, SIOR
We are pouring panels at Gateway Logistics Center in the heart of Pinellas County’s hot industrial market. Three rear-load buildings totaling 280,000 sf. – bldg G – 65,408sf – bldg H – 146,539sf & A – 78,520sf respectively are underway. This is the best location in this sub-market with delivery Q3 2023. Call me or one of our partners on this project for leasing information John Dunphy Scott AltieriStephanie Meros Felicia Saunders Olivia Brock thank you to Greystar for partnering with JLL @JLLTAMPA as your leasing partners Joseph Bryan David King Lewis Stoneburner, Jr. Drew Tappan ! #thankyou #logistics#industrialspaceleasing #industrialspacepinellas #industrialbuildings#industrialrealestate #industrialproperty #industrialspacestpete
Jabil sells 93-acre Gateway property for a combined $32M
March 16, 2022
St. Petersburg manufacturing giant Jabil Inc. has closed on its sale of the Gateway property that will be redeveloped into a housing community and industrial park.
Jabil (NYSE: JBL) sold its 93-acre property to two different LLCs in separate transactions. It sold one part to Gateway Jabil Property Owners LLC in an $18 million deal, and another to GEP XI Gandy LLC in a $14 million deal. The LLCs are linked to Greystar Development.
Jabil previously eyed the site for a potential HQ, but it pursued a different site instead and went under contract for several months to sell the massive property to Greystar Development, a subsidiary of South Carolina-based Greystar Real Estate Partners, which is one of the largest multi-family developers.
Greystar plans to develop roughly 61 acres at the site for industrial uses, and nearly 18 acres would be used for multifamily units at the southern end of the property.
The residential component entails building a total of nine buildings. Each building would range from 24 to 36 and 64 units each, which breaks down to roughly 23 units per acre. The entrance to the site would be off 28th Street.
The amenities would include a clubhouse, two pavilions, two pools and four single-story multi-bay garages.
However, under the agreement, Greystar first must build at least 200,000 square feet of industrial before initiating the multifamily development. Greystar would be able to build 500,000 to 600,000 square feet of industrial space at full buildout.
The proposed industrial project will be the largest industrial development Pinellas County has seen in some time. The developer estimates that the industrial project will result in at least 3,300 jobs, according to city documents.
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