Downtown Clearwater apartment tower to become affordable housing
By Henry Queen
Tampa Bay Business Journal
Published: Sep 6, 2024

An apartment tower in downtown Clearwater is on the brink of a $47.7 million transformation into affordable housing.

Pinellas County Board of County Commissioners on Thursday approved the allocation of $7 million in sales tax funds for land acquisition and renovation construction costs of the 17-story Indigo Apartments, pending the city's approval of its own $3 million contribution.

Palm Beach-based Sunrise Affordable Housing Group plans to use the public money to help purchase the property at 801 Chestnut Street and convert the 208-unit tower into an entirely affordable complex.

It also plans to spend $9.5 million renovating all apartment units and upgrading the building's mechanical system and elevators. The property will be put into a land trust for a 99-year term.

The Indigo was built in 1971 as a senior housing development serving individuals aged 55 years or older. Chestnut Street Partners, affiliated with Nashville-based Covenant Capital Group, purchased the 138,000-square-foot building in 2020 for $16 million, according to property records. It then terminated the age and income restrictions that had been in place.

Under Sunrise Affordable Housing Group's ownership, the complex will have 50 units set aside for those earning 30% or below of the area's median income. Another 82 units will be set at 60% AMI, and 75 units will be at 80% AMI. The Clearwater Housing Authority will provide 50 project-based vouchers that will allow households to pay only 30% of their income on rent.

Sunrise Affordable Housing Group, founded in 2020, has just over $1 million in cash flow set aside for its purchase and renovation of the property. Over $32 million is expected to be sourced from tax credit equity. The company didn't immediately respond to a request for comment.

With Thursday's vote, commissioners have allocated $43 million of the current version of the Penny for Pinellas tax to affordable housing, according to an agenda. The total budget from 2020-2030 is $98 million.