The former Playhouse Theater and Morph Nightclub properties in St. Pete’s Grand Central District could soon be demolished for a new affordable housing tower near downtown St. Pete.

Tampa-based affordable housing developer Blue Sky Communities has the 0.61-acre site at 1850 Central Avenue and 1833 1st Avenue South under contract for $6.25 million.

The deal is expected to close in March 2027.

Plans call for a 12-story, 150-unit affordable apartment tower, called JR Tower, with 3,000 square feet of commercial space.

“Getting affordable and workforce housing in downtown St. Pete is becoming increasingly difficult so this is an opportunity that doesn’t present itself often,” Blue Sky Communities Executive Vice President and CFO Scott Macdonald said in a conversation with St. Pete Rising.

“I hope it will alleviate a lot of the challenges this area is seeing for staffing businesses. Additionally, we are excited for the residents to be able to utilize the Bus Rapid Transit (BRT) as JR Tower will be a quarter of a mile from a BRT station,” Macdonald added.

Blue Sky Communities plans to utilize Chapter 17.5 of St. Pete’s municipal code, which allows affordable housing developments on certain commercially and industrially zoned properties in exchange for long-term affordability requirements.

An unsolicited proposal submitted to the City of St. Pete could bring a small cluster of permanently affordable homes to a vacant site in south St. Pete.

Bright Community Trust is requesting the donation of four city-owned parcels at 2013 18th Avenue South, where it plans to develop five cottage-style homes targeted to income-restricted buyers.

Each home would include two bedrooms, one bathroom, and roughly 900 square feet of living space.

Plans also call for a shared green space, nine parking spaces, and individual lot configurations that would allow each home to function as its own property.

The city’s willingness to consider the unsolicited proposal has triggered a formal Notice of Intent to Dispose of City-Owned Real Estate, which was published to the city’s website last week.

That notice opens the door for other developers or nonprofits to submit competing proposals for the property.

Interested parties have until Friday, May 22nd at 12 p.m. to submit an alternative proposal for the lease, purchase, or development of the site.

Construction is underway on a new boutique condo building overlooking Mirror Lake in downtown St. Pete.

St. Pete-based Backstreets Capital has officially broken ground on The Cade, a seven-story residential project planned for 749 Burlington Avenue North featuring just 15 luxury residences overlooking the historic lake.

The project has seen strong early sales demand, with 40% of residences already under contract since sales launched two months ago.

“The response to The Cade has validated what we set out to create,” said Will Conroy, President of Backstreets Capital. “With construction now underway and nearly half the residences already spoken for, it’s clear there is strong demand for a more refined, residential experience in our downtown.”

“The Cade is perfect for people who want the privacy, space, and character of a custom home, paired with an irreplaceable lakefront location,” Conroy added.