Tampa’s attempt to sell its downtown police headquarters ended without a single offer.
The City of Tampa issued a request for proposals in December seeking a minimum bid of $36 million for the property at 411 N. Franklin St.
The site includes the 10-story headquarters and an adjacent garage, which together occupy an entire city block in the central business district.
The RFP required the buyer to lease the building back to the city for $1 per year while the Police Department relocates. The bid window closed Feb. 6. No proposals were submitted.
A developer’s perspective
Joshua Pardue, managing partner of JPRE Development LLC, said the numbers likely drove the outcome.
“Without reading the RFP, it’s probably a purchase price issue,” Pardue said.
He said redevelopment sites must clear strict return thresholds before investors and lenders commit capital.
Developers calculate what a finished project could be worth, then subtract land cost, demolition, construction, parking, design fees, financing costs and required profit.
Pardue said that is the core challenge with the city’s ask: redevelopment sites trade on “residual land economics,” meaning the land price must reflect what a finished project can realistically support after costs and required returns.
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“When you factor in demo, vertical construction, structured parking, soft costs and timing risk, margins compress quickly,” Pardue said.
He said developers must also price in risk.
“A developer should make 20% markup or profit,” he said. “That wasn’t left in the deal.”
Hillsborough County property records show roughly 281,000 square feet between the building and garage. Pardue estimated that about 160,000 square feet could be rented out, depending on future use.
That estimate reflects gross income assumptions and does not include redevelopment costs.
“The future value based on income at a cap rate is less than the cost of it, plus the minimum bid the city would accept,” he said.
What could work on the site
Pardue described the block as one of the most visible and strategic sites in downtown Tampa. The property sits near City Hall, Lykes Gaslight Park and major office towers along Franklin Street.
He said the block is still a tier below sites with direct park and waterfront views along North Ashley Drive, which can command a higher land premium.
He said a residential or hotel-led mixed-use project with ground-floor retail could fit the corridor as private investment continues along Franklin Street.
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Pardue said that kind of project could be “transformative” for downtown, but only if the deal structure clears today’s financing environment.
“The opportunity is significant,” Pardue said. “It just needs to be structured in a way that clears today’s development math.”
He also said the current building configuration could affect reuse options. Large floor plates can limit residential or hotel layouts because interior rooms may sit far from windows.
Pardue pointed to the Aloft Hotel downtown as an example of a building with depth that supported a successful conversion.
What we don’t know
The city has not announced whether it will reissue the RFP, adjust the minimum bid or pursue a different approach to relocating the Police Department.
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