One of the largest new residential developments in St. Petersburg is officially underway.

Construction has begun on Azalea Cay, a planned approximately 1,000-unit apartment community at 1501 72nd Street North in west St. Petersburg. The 29-acre development is rising on the former Raytheon property near Tyrone Square Mall and Azalea Park. St Pete Rising

Tampa-based Metro Development Group and St. Petersburg-based Porter Development recently broke ground on the first phase, beginning the transformation of a property that has been targeted for redevelopment for several years.

First Phase Will Deliver 341 Apartments

The first phase represents an estimated $109.8 million investment and will include 341 apartments spread across three buildings. Units will range from one to three bedrooms. St Pete Rising

Of those apartments, 102 will be designated as income-restricted affordable or workforce housing. Fifty-one will serve households earning up to 80% of the area median income, while another 51 will serve households earning up to 120% of AMI. Those units are required to remain income-restricted for at least 50 years. The remaining 239 apartments will be market rate. St Pete Rising

Amenities planned for the first phase include a clubhouse, leasing office, fitness center, yoga room, game room, swimming pool and pet spa. St Pete Rising

Nearly 1,000 Homes Planned Across 29 Acres

Azalea Cay is expected to be constructed in three phases and ultimately bring roughly 1,000 new apartments to the 29-acre site. Approximately 300 units across the completed community are expected to qualify as affordable or workforce housing. St Pete Rising

The scale of the development is particularly notable in Pinellas County, where large parcels suitable for ground-up residential construction have become increasingly difficult to assemble.

The first phase is expected to take approximately 24 months to complete. St Pete Catalyst

Public and Private Investment Behind the Project

The development is supported by $11.25 million in public funding, including $6 million from the City of St. Petersburg and $5.25 million from Pinellas County through Penny for Pinellas funds. The developers also secured $75 million in construction financing from Valley Bank for the first phase. St Pete Rising

The project represents a new direction for Metro Development Group. The Tampa-based developer is known primarily for master-planned communities, particularly in Pasco County, and Azalea Cay is its first multifamily community. St Pete Rising

Former Raytheon Property Gets New Life

The property has a long industrial history. It was used for communications hardware and defense-electronics manufacturing from 1958 through 2008 by E-Systems and later Raytheon. Environmental remediation has taken place at the property, and the Florida Department of Environmental Protection has approved redevelopment subject to ongoing restrictions. St Pete Rising

Porter Development acquired the site for $10.5 million in 2021. Earlier plans envisioned apartments alongside a sports complex and recreational lagoon, but those plans were eventually replaced by the current mixed-income residential development. St Pete Rising

Major Growth for West St. Petersburg

For commercial real estate, Azalea Cay represents more than another apartment development.

Adding approximately 1,000 households to the Tyrone area could increase the residential density supporting nearby retailers, restaurants, medical providers and service businesses. Its location near Tyrone Square Mall and other established commercial corridors also places future residents within an already significant retail district.

The redevelopment demonstrates the continued pressure to reposition large underutilized properties throughout Pinellas County as available land becomes increasingly scarce.

With construction now underway, Azalea Cay is set to transform a former industrial property into one of west St. Petersburg’s largest new residential communities.