Dynasty CEO shares big vision for downtown tower, next steps • St Pete Catalyst
St. Petersburg-based wealth management firm Dynasty will develop a Class A office tower in the city center that will include residential units and be used to recruit fintech companies in the city.
Dynasty was one of seven development teams vying to purchase the land at 910 2nd Ave. South, used as a parking lot for the Tampa Bay Rays, to turn it into an actual works development. Last week, in an exclusive interview, St. Petersburg Mayor Rick Kriseman announced the selection of Dynasty’s proposal.
According to Dynasty’s plans, the new Class A offices would house Dynasty’s new headquarters and potentially the new headquarters of Cathie Wood’s ARK Invest company. It would also provide residential units with housing for the workforce and a hub for innovation and recruitment, among other components. Ken Jones of Third Lake Partners and Steve Case of Revolution would be the main contributors to the project’s innovation hub.
Penney said Dynasty, located in 200 Central Tower where ARK Invest is also located, is looking for a larger space as it prepares for other acquisitions and will need a site to consolidate them. He said Wood also needed a bigger footprint for ARK Invest.
The entire 2-acre site project could cost between $ 140 million and $ 160 million.
Penney spoke more about the big vision and the long-term process:
What was your reaction when you learned that the mayor had selected your proposal? In my experience with Kriseman, he always does what he thinks is best for the city. We felt that we had built a strong proposition in terms of economic development and a mix of building plans. There must be financial strength in any new project – capital is important and expertise is economic development. We trusted the mayor and the city for their decision. When we were selected I called each of the partners from Steve to Cathie, Kim and Marc [Iron Chef and Michelin star holder Marc Forgione]. We all hope this will evolve quickly and we are delighted to partner with the mayor-elect and gain new perspectives.
On the business side, this seems to add more desktop options for businesses beyond those listed in the proposal.
We really like the building we’re in now and we liked Third Lake Partners so much that we wanted to partner with them for the new building. When you are building a project like this, you want a substantial amount of real estate deals from an investor’s perspective. It’s hard to rely on specs because the longer it stays, the money you lose. We know that more than half of the space will be occupied by internal demand with the offices of Dynasty and ARK Invest. I can imagine that a company that wants to do business with us or that currently decides to settle in the same building. I don’t think we’ll have any problems filling the space.
Why did you decide to integrate the commercial and the residential in a single building? The plans for the residential units have yet to be finalized. We submitted the plan to have a building that would integrate commercial spaces, restaurants and mixed-use spaces for tenants. The residential units would be built above the offices. We looked at renderings of what it would look like to separate commercial from residential. The best way to maximize space on the site would be to combine everything.
What are the next steps? We are finalizing the purchase and working with the city team and ours to prepare the plans [Dynasty has offered the city $6.25 million to purchase the site]. There will be a whole host of licensing requirements for us, but we’re ready to go.
Will there be any incentives associated with the site that you could pursue? The site is in an opportunity zone. As a large wealth management company, we frequently inform our clients that the areas of opportunity are excellent in terms of potential developments on necessary investments. In terms of tax benefits, they only work if you can generate income. He still has to stand up on his own merit. There is a potential advantage for us, but that was not the main reason for the team. I hope that this building which will be at the edge of the Tropicana Field site will initiate the redevelopment of the Trop.