Azalea Cay Starts $109.8 Million First Phase on Former Raytheon Site in St. Petersburg

Construction is underway on the first phase of Azalea Cay, a planned apartment community of about 1,000 units on a former Raytheon property in west St. Petersburg. Metro Development Group and Porter Development marked the start of a 341-unit, $109.8 million first phase at 1501 72nd Street North, according to the developers' announcement Business Wire. Florida Construction News reported that work began on September 28, 2026 Florida Construction News.

The project is one of the larger multifamily starts in Pinellas County this year, and it pairs market-rate housing with income-restricted units supported by local public money. That structure is becoming common in Tampa Bay, where land is limited and local governments are using direct funding to get mixed-income housing built.

What Happened

The first phase will deliver 341 apartments in three buildings Florida Construction News. Of those, 102 units are income-restricted and 239 are market-rate Business Wire. The developers' release splits the restricted units evenly: 51 for households at or below 80 percent of area median income and 51 for households at or below 120 percent Business Wire.

Planned amenities include a clubhouse, fitness center, yoga room, game room, swimming pool and pet spa Florida Construction News. Tampa-based ARC3 Architecture is the architect Florida Construction News.

St. Petersburg Mayor Ken Welch, Pinellas County Commissioner Brian Scott and City Councilmember Copley Gerdes attended the groundbreaking Business Wire. Welch said, "This project will directly benefit our community by bringing together affordable, workforce, and market-rate housing" Business Wire.

Who Is Building It and How It Is Funded

• Developers: Tampa-based Metro Development Group, led by principal Kartik Goyani, and St. Petersburg-based Porter Development, led by president Les Porter Business Wire. The release describes Azalea Cay as Metro Development Group's first multifamily community.
• Public funding: $11.25 million in total, made up of $6 million from the City of St. Petersburg and $5.25 million from Pinellas County through Penny for Pinellas funds Business Wire.
• Site: A 29-acre property that Porter Development acquired in 2021 for $10.5 million Florida Construction News.
• Full plan: About 1,000 apartments across three phases Florida Construction News.

The sources reviewed do not name a general contractor or a lender, and they do not give a completion date for the first phase or a start date for the later phases.

Where It Fits in the Pinellas Pipeline

Florida Construction News reported that Azalea Cay is one of 16 projects across Pinellas County expected to deliver more than 2,300 affordable and workforce housing units Florida Construction News. The city and county contributions to this phase work out to roughly $110,000 per income-restricted unit, based on the $11.25 million total and the 102 restricted apartments reported by the developers. That figure is a simple calculation from the published numbers, not a number stated by either government.

The location also matters. West St. Petersburg has far fewer large multifamily sites than downtown, and a 29-acre former industrial and office property gives the developers room to phase the work over several years while the first buildings lease up.

Implications for Owners, Developers, Contractors and Subs

• Developers: The capital stack shows how local dollars are being layered into largely market-rate projects. Setting aside about 30 percent of first phase units at 80 and 120 percent of area median income brought in public funding from two governments.
• Contractors: Three buildings plus a clubhouse and site amenities on a previously developed parcel means the early work is likely to be driven by site conditions, utilities and stormwater. With two more phases planned, the first phase team is positioned for repeat work if it performs.
• Subs and suppliers: A three-phase, 1,000-unit program in one location offers a longer and more predictable run of wood frame or concrete, MEP and finish packages than a single building would. The sources do not specify the structural system.
• Owners of older commercial sites: The former Raytheon property is another example of surplus corporate land in Pinellas County moving to residential use.

What to Watch

• The construction schedule and first move-in dates, which have not been published in the sources reviewed.
• Timing and financing for phases two and three, which make up roughly two thirds of the planned units.
• Whether the city and county commit additional funding to later phases, and on what affordability terms.
• Progress on the other Pinellas County affordable and workforce projects counted in the 16-project pipeline Florida Construction News.

Bottom Line

Azalea Cay puts a $109.8 million, 341-unit first phase into construction in west St. Petersburg, with 102 income-restricted apartments and $11.25 million in combined city and county support Business Wire. If all three phases are built, the former Raytheon site will hold about 1,000 apartments, making it one of the largest residential redevelopments in the city outside downtown Florida Construction News.

Image credit: Metro Development Group via Business Wire. Image from the source article.

Sources

• Business Wire, Metro Development Group Breaks Ground on Azalea Cay, its First Multi-Family Community: https://www.financialcontent.com/article/bizwire-2026-10-1-metro-development-group-breaks-ground-on-azalea-cay-its-first-multi-family-community
• Florida Construction News, Construction begins on $109.8M Azalea Cay apartment project in St. Petersburg: https://www.floridaconstructionnews.com/construction-begins-on-109-8m-azalea-cay-apartment-project-in-st-petersburg/