Sunrise Affordable Housing Group has acquired the Indigo, a Clearwater apartment complex, for $25.5 million. Under the new ownership, it will return to affordable housing.
Once known as Prospect Towers, the circa 1971 complex at 801 Chestnut Street offered affordable housing for senior citizens for half a century.
Sunrise Affordable, which has offices in Palm Beach, Florida and Toronto, Canada, received approvals for the $51 million project by the City of Clearwater in September 2024.
The 17-story complex was purchased in 2020 by Covenant Capital Group of Nashville, Tennessee, which decided to rename the complex and bring a majority of its 208 units to market rate. Additionally, the age minimum was removed.
This forced many of its elderly residents to have to leave due to the increased monthly rent.
Sunrise plans to make all of the complex’s units into affordable housing. Individuals and families who earn between 30% to 80% of the area median income will be eligible to rent at the apartments.
“We were excited to partner with the City and County in what I would call a beautiful public private partnership to turn it back into affordable housing,” Sunrise Partner Sam Caspert told the Catalyst.
This partnership gave Sunrise $7 million in sales tax funds for acquisition and renovation costs. Additionally, the Pinellas County Housing Finance Authority issued the organization $23 million in tax-exempt bonds. The City of Clearwater provided $3 million to back the sale as well.
One of the key benefits of the project is that a new building does not have to be constructed. The Sunrise team is instead planning on extensively updating the complex.
“We have put in place a $10 million capital improvement plan to preserve and extend the useful life of the property, we’re going to address any deficiencies in the property as well as make certain property improvements,” Caspert explained.
This will include elevator modernization, hurricane impact windows, a new roof and updated mechanical, electrical and plumbing systems. Certain unit renovations are also planned.
“This is a smart, timely solution that puts people into homes they can afford – without the delays and costs of building from scratch,” said Clearwater City Manager Jennifer Poirrier in a prepared statement.
“By reusing this tower, we’re improving lives and preserving part of our city’s housing history.”
The complex will remain open during the renovations.
“Over the next 12 months as we implement our capital improvement plan on the rehab side, we’re also going to be implementing our plan for the affordable housing conversion. The property’s never going to be shutting down,” Caspert explained. “Gradually that conversion is going to be happening from market rate housing into affordable housing.”
Sunrise plans to keep the Indigo name as well.
Through a partnership with Pinellas County, Sunrise has ensured that the Indigo’s units remain affordable for the long-term future. The property will be in the Pinellas County Land Trust for nearly a century.
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