Rivergate Tower, downtown Tampa’s iconic cylindrical limestone tower, has a new owner.
Ally Capital Group, led by Franklin Street founder Andrew Wright, has partnered with Miami-based Banyan Street Capital to recapitalize Rivergate Tower. Banyan, which also owns Tampa City Center and Bank of America Plaza in downtown Tampa, has owned Rivergate Tower since 2015. A recapitalization restructures a commercial property’s ownership structure and financing.
Terms of the deal were not disclosed, and a deed for the transaction has not yet been filed in Hillsborough County property records. Christian Lee of CBRE Group Inc. represented Banyan Street Capital in the transaction. The deal is the first joint venture partnership between Banyan Street Capital and Ally Capital Group.
The partnership is planning to invest $8 million in upgrades to the tower, including “improving interaction with the Riverwalk, Kiley Gardens and the emerging walkable vibrancy of downtown Tampa.”
Other renovation plans include building move-in-ready suites on a speculative basis, completing the remaining corridor and restroom upgrades and improving the parking garage.
“This milestone investment underscores Ally Capital Group’s continued commitment to high-quality assets and strategic collaborations that deliver long-term value for its investors,” Grant Werbeck, chief operating officer of Ally Capital Group, said in a statement.
The 31-story Rivergate Tower was colloquially known as the Beer Can building for decades after its construction. It cost roughly $150 million to build in the late 1980s.
“Our affinity for investing in Tampa is no secret,” Zac Gruber, president of Banyan Street Capital’s office division, said in a statement. “Rivergate Tower represents not only a best-in-class asset, but also a meaningful opportunity to continue our investment in the growth and vibrancy of downtown Tampa. We are thrilled to continue our business plan with this exciting new partnership to bring new vibrancy to the asset and downtown Tampa.”