Chicago developer buys part of old Sears site from University Mall owner, plans $60 million student housing project
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Dec 9, 2020

The ownership of University Mall has sold a portion of Sears' former acreage to a student housing developer who's planning a $60 million project there.

Chicago-based Core Spaces bought 4.5 acres on the eastern side of the mall from owner RD Management for $6.17 million in early November, according to Hillsborough County property records.

Core Spaces is planning a parking deck and 373-unit, 887-bed student housing development on the property called Hub Tampa, said Mark Goehausen, senior development manager. The developer closed a $56 million construction loan from Synovus Bank on Dec. 4, according to property records.

Core Spaces' deal is the first time another developer has acquired a portion of the project from RD, which purchased University Mall — an archetypal dying enclosed mall — in 2014. RD has been working on a master plan for the 96 acres since it closed on the mall. Over the years, RD has added to its assemblage with the Dillard's and Sears boxes and has also released several conceptual plans for the property.

In July, RD announced that its development would be called RITHM, an acronym for Research, Innovation, Technology, Humanity and Medicine. Construction is underway to convert the mall's former JCPenney to office space.

"We're excited to be the first domino to fall in what I think is one of the more important developments in Tampa," Goehausen said. "It’s not just a mall; it’s going to create a new neighborhood, a new submarket, and given its proximity to the university and other things, I think it’s going to be a game-changer for Tampa."

Core Spaces is a national developer; in Florida, it owns student housing in Gainesville and Orlando. The University of South Florida has been on its radar for some time, Goehausen said, and the firm expects the student population living around campus to rebound by the time the project opens in 2022. (In the wake of the novel coronavirus pandemic, more students are living farther from campus and taking remote courses.)

"This market and all Florida markets are high on our priority list," Goehausen said. "The buildings in Gainesville and Orlando are doing great, and we're confident that this one will follow suit."