Kolter closes construction loan for St. Pete condo tower
By Breanne Williams
Tampa Bay Business Journal
Published: Apr 30, 2024

Luxury condo developer Kolter Urban has closed a $182 million construction loan for Art House, a 42-story tower in downtown St. Petersburg.

Kolter Urban, based in Palm Beach, secured the loan from Bank OZK. Construction on the 244-unit tower at 235 First Ave. S has reached the halfway mark, and the project is expected to be completed in 2025.

“Art House St. Petersburg continues to set a new standard for luxurious living in the heart of St. Petersburg’s growing downtown core,” Brian Van Slyke, regional president of Kolter Urban, said in a statement. “Kolter Urban is proud to soon deliver another remarkable property which underscores the high demand for luxury residences throughout downtown St. Petersburg.”

Nine-figure loans are not common in the Tampa Bay region, particularly for standalone properties. Kolter’s Art House loan is among the largest filed in Pinellas County in the last five years. The loan comes at a time when developers across the U.S. face difficulty obtaining financing as interest rates and construction costs rise. But backing Florida construction projects, bankers say, is less risky given the state’s population growth.

“Nestled in the heart of downtown, residents will find an unparalleled contemporary lifestyle with close proximity to a dynamic fusion of arts, culture, fine dining, sporting events and outdoor leisure,” Greg Newman, senior managing director of originations at Bank OZK, said in a statement. “Kolter Urban is developing a premier condominium development in St. Petersburg, boasting a prime location, standout assets and top-tier sponsorship that aligns perfectly with our real estate lending strategy.”

The tower will feature two- to three-bedroom units, many of which will also feature a den. The units will range from 1,380 to 2,637 square feet and be priced from $1 million. There will be 12 penthouses on the top three floors of the towers. The units will feature designer finishes, open great room designs, floor-to-ceiling glass, and spacious terraces with views of Tampa Bay and downtown St. Pete.

There will also be an amenity deck with a resort-style pool, cabanas, fitness center, theater and a club room. Smith & Associates Real Estate is marketing the condos for sale. According to Kolter, the project has just surpassed $250 million in sales. The tower’s penthouse is under contract for more than $6 million.

Art House is designed by SB Architects with interiors by ID & Design International. Kolter held its groundbreaking for the tower in June 2022.

“The rapid construction progress of Art House, now averaging a floor a week, is a true testament to our commitment to quality, efficiency, and delivering a thoughtfully designed development that aims to set new standards,” Van Slyke said in a statement.

Kolter Urban is also the developer of One Tampa, Hyde Park House, One St. Petersburg, Saltaire and The Ritz-Carlton Residences, Sarasota Bay. In April, Kolter closed on a Naples development site for more than $100 million in partnership with a Miami developer.