Skye Isle Apartments Closes $103.4M Renovation Financing

Skye Isle Apartments, an 11-story, 188-unit affordable senior building at 518 3rd Avenue South in downtown St. Petersburg, is under renovation following a $103.4 million financing package that has closed. Construction is underway. The property, formerly the Viridian, was built in 1971 and serves residents 62 and older. Preservation 518, Ltd. is the developer.

Preservation 518 acquired the property for $51.1 million from Sp One Ltd. Sage Partners and affiliates had owned it since 2009, when they paid $6.8 million. The Housing Finance Authority of Pinellas County issued bonds for Preservation 518, initially up to $36.73 million, later reduced to $27 million.

All 188 units are affordable, with rents restricted to households at or below 60 percent of AMI under a 50-year land use restriction agreement. A project-based voucher contract with the St. Petersburg Housing Authority covers 133 units. Current residents average in their mid-70s, with average annual income of about $17,500.

Hennessy Construction Services is the general contractor. Renovation proceeds floor by floor with the building occupied; residents relocate temporarily within the building. Most units are expected to take 30 to 35 days once initial plumbing work is complete. Amenities include a wellness center, fitness programs, telehealth access, and a social services coordinator. Completion is expected in 2027.