A Tampa-based developer is moving forward with plans to build an affordable housing tower on the site of St. Petersburg’s former Playhouse Theatre in the Grand Central District.
Blue Sky Communities plans to construct the 12-story JR Tower at 1850 Central Ave. and 1833 First Ave. S., featuring 150 residential units and approximately 3,000 square feet of retail space. Units would be reserved for residents earning 80% or less of the area median income, with 23 units set aside specifically for youth aging out of foster care.
The site is currently under contract, with closing expected in early 2027. Construction is anticipated to begin that same year and take roughly two years to complete.
Blue Sky executive vice president Scott Macdonald cited St. Petersburg’s geography and population growth as key drivers of the city’s housing crunch. “We got water on three sides of us,” he said. “So, we’re one of the densest cities in the state.”
The project carries an estimated price tag of $68 million, with funding expected through the federal tax credit equity program, a private bank loan, the Florida Housing Finance Corp., and the city’s Community Development Block Grant Disaster Recovery program.
Planned amenities include a fitness center, club room, library, computer lab, and a rooftop terrace. Blue Sky is also partnering with local nonprofit Ready for Life to provide supportive services to young adults transitioning out of foster care who will live in the building.
The Playhouse Theatre dates to 1925 and served the community in various forms over the decades — as a movie house, a dinner theater, and briefly as a nightclub — before falling vacant. The property was most recently purchased in 2021 for over $2 million.
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