BayWalk on the Brink

The overhead fans throughout St. Petersburg's BayWalk retail/entertainment complex are about the only things turning lately. Where crowds once gathered, measuring more than 3.5 million annually, only one or two people at a time may pass through now.

What was termed the city's crown jewel upon opening in November 2000 has become a rather conspicuous hole in an otherwise vibrant downtown. Shoppers or diners who used to inhabit BayWalk can now be found along Beach Drive or Central Avenue on any given day, and closer to Tropicana Field during baseball season.

With the opening of the new Salvador Dali Museum on Jan. 11 on the city's waterfront, BayWalk appears to be all but ignored. Only six tenants remain at the 152,500-square-foot complex, and plenty of parking is available either in its garage or at two-hour spaces along surrounding streets.

Sources say quite a few prospects are looking to take up vacancy, but it will take many of them to have any meaningful impact. Leases would need to benefit both tenant and landlord, especially when the current owner is putting a few more million into improving the property's overall condition on top of its original $42-million cost, plus $20 million in taxpayer dollars over the last 10 years.

Blame is plentiful as to why BayWalk, a huge success early on, is now approaching shambles. A recession that stunted retail sales and expansion is a big part of that, but so were anti-war protesters and suspected youth gang members that drove away prospective customers, especially on weekends.

One by one, popular tenants such as Ann Taylor, Johnny Rockets, Sunglass Hut and Ben & Jerry's disappeared in recent years, with hermanHome being the latest to exit around Christmas. Muvico, which runs a 20-screen cinema at BayWalk, appeared to be on its way out before recommitting to the complex last spring.

Remaining retail tenants include Chico's, White House/Black Market, Happy Feet Plus and GameStop. Its only restaurant is Tokyo Sushi Cafe.

Also gone is BayWalk's original developer. St. Petersburg-based Sembler turned the property over to Fred Bullard, another experienced local developer who thought he could revive the complex starting in August 2008. Bullard only got as far as February 2009 before handing it over to Wells Fargo, unable to keep up the $14.5-million mortgage.

Where BayWalk will go from here is difficult to say, at least by those currently involved with the complex. Ciminelli Real Estate Services is the property manager and Rorebeck Marini Equity Retail Group handles leasing, but both Tampa-based firms are not allowed to comment on BayWalk's current condition.

CW Capital, which oversees ownership of BayWalk for a private trust, would need a group of suitable investors to make viable bids in order to meet its own fiduciary responsibilities, say sources familiar with the property. But plenty of investors are scouting distressed assets lately, they add.

So far, only one prospect has made his intentions known about buying BayWalk. Joel Cantor, developer of the nearby Signature Place residential condominium tower, says he believes he can rebrand and revive BayWalk, making it an event destination and possibly drawing tenants from other beleaguered retail locales (The Pier, for instance).

Incidentally, BayWalk has a 10 p.m. curfew in which anyone under 21 must be accompanied by an older adult. The question is whether enough people are there that time of night for such a curfew to matter.