A $103.4 million financing package will fund renovations at Skye Isle, a 188-unit affordable senior housing complex at 518 Third Avenue S. in downtown St. Petersburg. The work is intended to preserve the building as affordable housing while replacing aging systems and upgrading apartments and common areas. Residents have an average age in the mid-70s and an average annual income of about $17,500; many rely primarily on Social Security.
The acquisition and financing have closed, Kathryn Driver, executive director of the Housing Finance Authority of Pinellas County, confirmed. St Pete Catalyst reported the $103.4 million total. Earlier coverage by Florida YIMBY put the project at $73.2 million and called it a “facelift”; the two figures have not been reconciled.
Construction is underway, with completion expected in 2027, about a year from the start of work, Catalyst reported. Renovations are proceeding floor by floor while the building remains occupied. Residents are being temporarily moved to vacant apartments in the building or to a nearby hotel, and work in an individual apartment is expected to take 30 to 35 days.
New Plumbing, Kitchens and Storm-Ready Windows
The scope of work is extensive for a building that first opened decades ago. Crews will install new plumbing, cooling systems, windows, kitchens and bathrooms throughout the complex, including pipes underneath the property that connect to the city's water system. Rooftop cooling equipment and apartment mechanical systems will also be replaced.
Inside the units, residents will get new kitchen cabinets, granite countertops, energy-efficient appliances and slip-resistant flooring. Bathrooms will be expanded and fitted with accessible showers and grab bars, and the building's original windows will be swapped for energy-efficient, impact-resistant glass. Residents were briefed about temporary water shutoffs and other disruptions expected during construction, and Debra Koehler, who is affiliated with Sage Partners, said the renovation will involve inconveniences.
A Wellness Push for an Aging, Fixed-Income Community
Beyond the physical upgrades, the project is adding services aimed squarely at an older population with limited income. Plans include a wellness center, telehealth access and space where medical professionals can see residents on site, along with fitness programs, balance exercises and fall prevention. A dedicated social services coordinator will help residents navigate paperwork and other needs.
The project also carries a long-term affordability commitment: restrictions on the property have been extended for another 50 years. Residents will not face rent increases because of the improvements, Catalyst reported. Debra Koehler, who is affiliated with Sage Partners, said the work is intended to improve the building for its current senior residents.
Funding Mix Includes County Bonds, Tax Credits
The financing combines $27 million in bonds issued through the Housing Finance Authority of Pinellas County with federal housing tax-credit equity, private lending, and city and state assistance. The bonds do not create a financial obligation for the county, and county commissioners approved the bond authorization in May. The property's recorded acquisition consideration was approximately $51.1 million.
Getting the deal done wasn't simple. The financing effort was complicated by rising interest rates, construction costs and labor shortages, pressures that have slowed similar affordable-housing deals across the region. The report also noted that financing available for improvements to the property had been limited going back to the Great Recession.
From the Knights of Columbus to Skye Isle
The property was originally developed by the Knights of Columbus before later becoming known as the Viridian; it has now been renamed Skye Isle. Sage Partners acquired the property through an affiliate in 2009, and affiliates of the firm have been involved with it ever since. The Catalyst's report describes the building as constructed in 1971, while Florida YIMBY's earlier coverage put the construction date at 1977 and described it as an 11-story, 188-unit building — a discrepancy that remains unresolved between the two accounts.
Hennessy Construction Services is handling the renovation work. When finished, the building will sport a white exterior, dark-framed windows, large Skye Isle signage and a mural by a local artist, along with a coffee bar, cybercafe and renovated common areas for residents.
Skye Isle's overhaul arrives amid a broader push to shore up affordable senior housing in the St. Petersburg area, with multiple similar projects advancing locally. One comparable effort, Flats on 4th, is an 80-unit, four-story affordable senior housing development in St. Petersburg expected to cost $37.5 million to complete, according to Florida YIMBY's reporting.
Another recent senior-housing development
Skye Isle is part of a local landscape that includes other affordable housing for older residents. The City of St. Petersburg reported that Bear Creek Commons, a separate 85-unit development at 635 64th Street South, held its ribbon cutting in December 2024.
