Downtown Tampa trophy property has new owner, plans include $8M in upgrades

Rivergate Tower, the cylindrical, limestone skyscraper known colloquially as downtown Tampa’s "beer can building," has a new owner. 

On Monday, Ally Capital Group announced it has partnered with fellow Florida real estate investor Banyan Street to recapitalize Rivergate Tower, the iconic 31-story office tower at 400 N. Ashley Drive that looms over the Hillsborough River in downtown Tampa. 

Built in 1988 and standing 454-feet tall, the Rivergate Tower is one of the tallest limestone structures in the world, a release says. 

Terms of the transaction were not disclosed and county property appraiser records had not yet been updated to reflect the sale. 

This is the first joint venture between Ally Capital Group and Banyan Street Capital — two of Tampa’s most prolific private investment groups. Tampa-based Ally Capital Group is led by Franklin Street founder Andrew Wright, while Banyan Street Capital is based in Miami. Banyan, which also owns Tampa City Center and the Bank of America Plaza in downtown Tampa, has owned Rivergate Tower since 2015, according to county property appraiser records. 

“Our affinity for investing in Tampa is no secret,” Zac Gruber, president of Banyan Street Capital’s office division, says in the release. “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.”

The acquisition highlights the partners’ investment strategy, which focuses on institutional-quality real estate in dynamic markets such as Tampa. The group plans to hold the building long-term, the release says, and invest about $8 million in improvements. 

Planned investments include improving Rivergate Tower’s connectivity to Tampa’s Riverwalk and Kiley Gardens, as well as investing in move-in ready office suites, completing corridor and restroom upgrades and making additional improvements to the parking garage. 

“Rivergate Tower is the kind of asset that truly reflects our investment philosophy,” says Devin Tiffany, Asset Manager at Ally Capital Group, in the release. “Its architectural significance, strong tenancy and irreplaceable location make it a rare opportunity. 

Founded in 2012, Banyan Street owns, develops and operates a portfolio of roughly 11.5 million square feet of office space and 5,500 apartment units.