Historic St. Petersburg Property Converted Into Multifamily Housing

A historic block in St. Petersburg that once served as a corporate headquarters is now being repositioned as multifamily housing, reflecting the continued evolution of underutilized commercial properties throughout the Tampa Bay region.

Azzam Properties Corp. purchased the block at 4355 Central Avenue for $1.86 million in 2021 and has now secured a $5 million bridge loan to refinance a portion of its original all cash investment. The financing supports the conversion of the former church property into a multifamily residential community while allowing the ownership group to redeploy capital into additional development opportunities as leasing activity continues.

The 1.45 acre site encompasses approximately 21,000 square feet and spans an entire city block. The property includes a former sanctuary, school facilities, parking areas, and a single family residence that is listed on the St. Petersburg register of historic places.

Prior to the redevelopment, the property served as the headquarters for Squaremouth, a travel insurance technology company. The company had planned to transform the space into a Silicon Valley inspired workplace environment with unique features such as climbing walls, fire poles, and treehouses. However, Squaremouth ultimately sold the property in 2021 as its operations transitioned to a fully remote workforce model.

Avatar Financial Group, a national bridge lending firm, provided the $5 million loan that enabled Azzam Properties to refinance the asset while continuing to stabilize the property.

According to T. R. Hazelrigg IV, president and co founder of Avatar Financial Group, the financing reflects the sponsor’s successful execution of the redevelopment strategy. With entitlement, construction, and conversion risks largely addressed through the initial cash investment, the bridge loan allows ownership to recover a portion of its capital while the asset progresses toward stabilized occupancy.

This project highlights a broader trend across the multifamily sector as developers and investors look for opportunities to reposition existing properties to meet growing housing demand in markets like St. Petersburg and the greater Tampa Bay area.

Azzam Properties has also been active elsewhere in the region, including the acquisition of Duke Energy’s former Clearwater office after the company shifted to a hybrid work model in 2023.