Frank Guerra, Principal, Altis Cardinal

July 2026 — Invest: spoke with Frank Guerra, principal of Altis Cardinal, about the firm’s focus on middle-market multifamily development, the value of community-led planning and the long-term outlook for St. Petersburg. “We believe St. Petersburg has one of the strongest growth trajectories in Florida,” Guerra said.

What external changes in recent years have had the greatest impact on Altis Cardinal?

We are in a very dynamic moment in real estate development that is heavily influenced by movements in interest rates. In 2022 and 2023, we saw a very significant increase in rates, followed by a gradual decline from the peak. That volatility has a direct impact on the cost of borrowing and therefore on the feasibility of development projects.

Construction financing is largely tied to short-term benchmark rates such as SOFR, which lenders use as the index to price construction loans. Over the past year, that rate has dropped meaningfully, and spreads over the index have also compressed. As a result, the all-in cost of borrowing today can be more than two percentage points lower than it was at the peak of the cycle. For developers, that is a significant difference because financing costs represent a major line item in any project.

Another important factor is population migration. Since the pandemic, Florida has become one of the leading destinations for domestic relocation, alongside states such as Texas and the Carolinas. That migration has a direct effect on multifamily development because people need housing when they arrive. Whether they ultimately buy or rent, a portion of that population always enters the apartment market first, which drives demand for the type of communities we develop.

Businesses are also relocating to Florida, bringing jobs and adding another layer of demand. That combination of population growth, employment growth and improved financing conditions has created a very active environment for the multifamily sector.

What recent initiatives or developments at Altis Cardinal are most important for your growth strategy?

Our main strategic focus is the middle market. In multifamily development, different companies concentrate on different segments. Some target the highest-end luxury product, while others focus on deeply affordable housing that is heavily subsidized through government programs.

Between those two segments sits what is often referred to as the missing middle. These are working-class and middle-income households that do not qualify for subsidized housing but also cannot easily afford luxury rents. There are relatively few incentives that promote development for this group, which is why it remains underserved in many markets.

Our approach is to design projects that cater to this middle segment while still delivering high-quality amenities and retail components typically associated with more expensive developments. The goal is to provide an attractive living environment at a more attainable price point. Both our earlier Elements on Third development and our current Skyway Marina District project in St. Petersburg follow that strategy.

We see that segment as both underserved and durable. There is deep demand from residents who want quality housing in strong locations but need rents that are more attainable than what many luxury projects offer. That is where we believe we can create value while serving a real market need.

How are you approaching workforce housing and workforce development in today’s competitive environment?

Workforce housing is closely tied to the middle-market strategy. Generally, workforce housing serves residents earning between 80% and 120% of the area median income, or AMI. That figure is calculated for each county in the United States and provides a benchmark for determining affordability levels.

Projects that include workforce housing can sometimes qualify for development incentives from local governments. These may include tax considerations, density allowances or zoning adjustments that help make the project financially viable. While these incentives are not as large as the subsidies available for deeply affordable housing, they can still play an important role in making workforce developments possible.

Developing in this segment is challenging because construction costs remain the same regardless of the rent level a project can command. For example, a 20-story tower costs the same to build whether it is located in a high-rent downtown location or in a more moderate-rent neighborhood. To address that challenge, we often use alternative construction types, such as mid-rise buildings with detached parking structures, which allow us to reduce costs and ultimately offer lower rents while maintaining a viable development model.

That is really the key. It is not enough to identify demand. You have to structure the project in a way that responds to that demand without undermining the economics. That requires discipline on design, entitlement, land cost and construction execution.

What are some of the biggest challenges facing middle-market housing development today?

The core challenge is aligning construction costs, land prices and achievable rents. Building materials and labor costs do not decrease simply because a project targets moderate-income renters. That means developers must carefully manage every element of the project, from land acquisition to design and financing.

Making a middle-market development work requires the right combination of factors. The land must be acquired at the appropriate price, construction costs must be carefully controlled, and developers often need to layer in local incentives where available. When those elements align, it becomes possible to deliver housing that serves the middle market.

That is why so many people talk about the need for this type of housing, but fewer projects actually get built. The challenge is not recognizing the opportunity. The challenge is putting together a capital stack, a design approach, and an operating model that all work together at rents the market can support.

How do you approach community engagement when planning new developments?

The Skyway Marina District project is a strong example of our approach to community engagement. The area was largely developed in the 1960s and 1970s and later experienced a period of limited reinvestment. Over time, many of the office parks and retail centers became obsolete.

Before finalizing our development plans, we engaged extensively with local stakeholders. We met with the Skyway Marina District commercial association, which represents property owners in the area, as well as neighborhood associations representing nearby residential communities. Through those conversations and surveys, we gained insight into the types of amenities residents wanted to see in the neighborhood.

One of the most consistent requests was a higher-quality grocery store offering. In response, we partnered with Sprouts Farmers Market to anchor the retail component of the project. Around that grocery store, we are developing a retail environment that includes cafés, restaurants, health-focused food options, medical services and personal care businesses.

The objective is to create a town-center environment where residents can access daily necessities within their own neighborhood rather than traveling across the city. By aligning the development plan with community feedback, we were able to design a project that meets both market demand and local needs.

That process also helped guide conversations with the city during approvals. By the time we moved forward with site plan approval, we were able to present a vision that had been shaped by extensive dialogue, multiple design iterations and a clear understanding of what the neighborhood wanted to see.

Looking ahead two to three years, what are Altis Cardinal’s priorities?

Our immediate priority is completing the next phases of our Skyway Marina District master-planned community. The first multifamily phase, consisting of approximately 403 units, is currently under construction. The next phase, which will include roughly 383 units, is expected to break ground later this year.

These two phases sit on either side of the retail town center that anchors the development along 34th Street, one of the main transportation corridors in Pinellas County. When completed, the area will include nearly 800 residential units surrounding the retail hub.

In the longer term, the master plan includes six multifamily phases totaling more than 2,000 residential units. We believe St. Petersburg has one of the strongest growth trajectories in Florida. Companies as well as individuals are relocating to the region, bringing jobs and increasing demand for housing.

Another factor supporting long-term growth is the limited supply of developable land in Pinellas County. Large parcels suitable for master-planned projects are increasingly rare, which creates high barriers to entry for new developments. For that reason, maintaining a strong presence in the St. Petersburg market remains a key priority for Altis Cardinal moving forward.