Permits were signed off and ready, but he never picked them up.

The Great Recession intervened.

"Here we are on the other side of what happened and the rough times always seem shorter than when you are in the middle of it,” Smith said. "We are thankfully now in a better position.”

Now, with market dynamics favorable in terms of rental rates and absorption, Varela has broken ground. Raleigh N.C.-based Northwood Ravin bought the note on the property held by BB&T in 2011 as part of a portfolio sale, Smith said.

SunTrust was the lender on a $30 million note that closed last month.

Smith is now Northwood Ravin's equity and development partner. Construction costs are $45 million, and the first phase is due to be finished by Q2 of 2014, with the project slated to be finished in 2015.

The plan has changed since 2006. It calls for 350 rental units and no retail. Most units are smaller than originally planned - 865 square feet down from 975 square-feet. Amenities have tripled with a planned 20,000-square-foot clubhouse.

That space will include a wine room, a golf simulator, hot and cold plunge pools, a resistance pool, an acoustic sound room, billiards, tanning beds, dog walks and a demonstration kitchen, Smith said.

"This is not in the market right now.” Ceiling heights in the apartments went from 9 to 10 feet.

"I think generally people are much more mobile with jobs than ever so they really need and want flexibility and want to make shorter term housing commitments,” Smith said.

People are renting longer but still want amenities like large gathering spaces and high-end finishes common in houses.

"Putting people on the sidewalk is part of making Westshore not just a business district, but a neighborhood,” Smith said.

Rent growth between now and 2017 is projected to be stable at 3 percent, Smith said.

The project is part of a wider expansion of residential projects in Westshore, the largest office market in Florida. In January, we reported that roughly 1,700 apartment units in five developments are under construction or expected to break ground before the end of the year, nearly a 50 percent increase over the existing 3,489 units.

Smith is also a partner in Intown/Framework Group LLC, which, along with Moss & Associates and the Beck Group, comprises the development team that is working to develop a 350-unit residential complex in the heart of downtown Tampa's burgeoning arts district.

Alexis Muellner is Editor of the Tampa Bay Business Journal.