Make us your home page
Instagram

Tampa Bay Times sells St. Petersburg headquarters, will remain as tenant

The 250,000-square-foot Tampa Bay Times property spans the 400 block of First Avenue S in downtown St. Petersburg.

RON BRACKETT | Times

The 250,000-square-foot Tampa Bay Times property spans the 400 block of First Avenue S in downtown St. Petersburg.

ST. PETERSBURG — Times Publishing Co., parent of the Tampa Bay Times, has sold its downtown St. Petersburg headquarters for $19 million to a joint venture of Convergent Capital Partners and Denholtz Associates, the company announced Friday.

The Times will stay under a 15-year lease as a major tenant, occupying nearly half the building, and the newspaper's name will continue to adorn its flagship location. The eight-story, 250,000-square-foot facility at 490 First Ave. S consists of three buildings, built in 1924, 1968 and 1988, which are joined together.

"With this sale, we are able to continue contributing to the vitality of downtown St. Petersburg. We are very pleased that the Times will remain a tenant and maintain its significant presence in the area," Times chief financial officer Jana Jones said in a statement.

The Times already has a tenant-landlord relationship with Denholtz, which also owns a building on Ashley Street in downtown Tampa that houses the newspaper's Tampa bureau.

"Denholtz Associates and our partner, Convergent Capital Partners, are excited to have played a part in this milestone for the Tampa Bay Times," said Steven Denholtz, CEO of the real estate development, investment and management firm. "Our relationship with the Times and with the Tampa Bay community spans two decades and is part of what made this deal possible. We look forward to the modernization of the Times headquarters building and to continuing to build a strong relationship with the entire community."

Tampa-based Convergent Capital, a real estate equity firm, has been an aggressive player in the bay area, particularly in downtown St. Petersburg. Among other properties, it bought the former downtown headquarters of Universal Health Care two years ago for $10.5 million.

"Convergent is excited to make another significant investment in downtown St. Pete. The construction and redevelopment activity is continuing to strengthen the city's position as a place to live, work and play," Convergent CEO Santosh Govindaraju said. "The Tampa Bay Times and the high-quality team at this award-winning newspaper are a very important part of our Tampa Bay community, and we look forward to being a part of their growth in the years ahead."

Like many newspapers, the Times has reduced its staff in recent years as the industry as a whole has faced financial difficulties from a challenging advertising market.

Several other Florida newspapers have also sold their headquarters buildings or put them up for sale, including the Tampa Tribune, Sarasota Herald-Tribune, Bradenton Herald and Miami Herald.

In announcing plans to put its headquarters on the market last year, Paul Tash, Times Publishing chairman and CEO, said the paper no longer needs all the space in its downtown building. He said at the time that the company plans to use money from the sale toward paying back a loan it secured years ago. As of Nov. 15, the outstanding principal on that loan was $22.5 million, court records show.

In streamlining, the Times has sold three other properties in recent months.

In October, the company closed on the sale of a portion of the property that houses its printing plant — 6 acres along 34th Street N in St. Petersburg — for $3.8 million. The area is being developed into a retail center with a tenant mix that includes an Aldi supermarket and Thorntons gas station.

In August, the Times sold the building that housed its Hernando bureau for $4.15 million. It has also sold both of its downtown St. Petersburg parking lots adjacent to its headquarters to developers planning multifamily housing projects.

Tampa Bay Times sells St. Petersburg headquarters, will remain as tenant 04/22/16 [Last modified: Friday, April 22, 2016 7:53pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. HQ2 watch: As deadline looms for Amazon headquarters pitch, one metro bows out

    Business

    If there's one national business saga to keep up on these days, it's the frenzy by metropolitan areas — including Tampa Bay — to make their best pitches to Amazon in the hope of being chosen as the new location for the giant online retailer's second massive headquarters. HQ2, as it is called, would create …

    Cities across the country are trying to land Amazon's second headquarters, known as HQ2. In Birmingham, Ala., giant Amazon boxes were constructed and placed around the city as part of its "Bring A to B" campaign. [Ali Clark/Bring A to B Campaign]
  2. Shares in Tampa's Health Insurance Innovations rebound from stronger earnings report

    Corporate

    TAMPA — After a sharp drop in its stock price in August and September, Health Insurance Innovations on Monday announced strong revenue and net income gains in preliminary numbers for its third quarter of the year. The company also announced a $50 million stock buyback over the next two years meant to bolster its …

    After losing more than half its market value between August and September, shares in Tampa's Health Insurance Innovations are rebounding."The new share repurchase program underscores our confidence in our business strategy, financial performance, and the long-term prospects of our company while also allowing us the financial flexibility to continue to invest in our business," company CEO Gavin Southwell announced Monday. [Courtesy of LinkedIn]
  3. Trigaux: Campaign aims to leverage tourism ads to recruit millennials, businesses

    Economic Development

    TAMPA — Tampa Bay's unleashing one of its best weapons — a cadre of successful entrepreneurs and young business leaders — in a marketing campaign already under way but officially …

    Erin Meagher, founder of Tampa coconut oil products company Beneficial Blends, is part of a group of business savvy millennial entrepreneurs and managers who are helping to pitch the work-live-play merits of the Tampa Bay market in a new marketing campaign called Make It Tampa Bay. The campaign is backed by Visit Tampa Bay and the Tampa Hillsborough Economic Development Corp. and aimed at recruiting more millennial talent to relocate and stay in the Tampa Bay area. [Courtesy Tampa Hillsborough EDC, Visit Tampa Bay]
  4. Florida gas prices drop 25 cents on average over past month

    Autos

    Gas prices are on a downward tear post-hurricane. Tampa Bay fell to $2.34 per gallon on Sunday, down 10 cents over the week, according to AAA, The Auto Club Group. Across the state, gas fell 7 cents over the same period to average $2.47 per gallon.

    Gas prices across the state fell 25 cents over 31 days. | [Times file photo]
  5. Entrepreneur expands interests with Twisted Crafts

    Business

    SOUTH TAMPA — Playgrounds of Tampa owner Mike Addabbo is expanding into the do-it-yourself industry with his new endeavor: Twisted Crafts.

     Jennifer and Michael Addabbo pose in their latest entrepreneurial enterprise: Twisted Crafts. Photo courtesy of Twisted Craft.