Nationally Pending Home Sales Are Up

From NAR’s Research Division this past week:

"Pending home sales have edged up, hinting at a possible pickup of sales activity in coming months, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.

Lawrence Yun, NAR chief economist, said the market is continuing to under perform. “Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” he said. “More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”

The Nashville real estate market has also seen an uptick in pending home sales, gaining 3.5 percent since January 2009. Year over year, Nashville pending home sales are down 2.1 percent. New construction sales make up a majority of the new pending home sales in the Nashville housing market while traditional resale homes are beginning to languish.

Fairly New Condos in Franklin TN

Prices for the new condos, flats, and townhomes in Franklin TN tend to be on the high side, so I removed any cap. Here are six Franklin TN condos in varying stages of development. As always, if you have questions or would like more information on any of these developments, you can contact me at 615-545-8611 or jefffulmer@comcast.net.

McKays Mill - 2 Bedrooms/2 Bathrooms – 1278 square feet - $199,900

Generals Retreat – 3 Bedroom/2 ½ Bathrooms – 1892 square feet - $299,000

Avalon – 3 Bedrooms/4 Bathrooms – 2,473 square feet - $337,900

Westhaven – 2 Bedrooms/2 ½ Bathrooms - 1,935 square feet - $339,933

11th and Main – 3 Bedrooms/2 ½ Bathrooms – 2,520 square feet - $429,900

Jamison Station – 2 Bedrooms/2 ½ Bathrooms – 1,900 square feet - $459,900

Brownstones – 3 Bedrooms/3 ½ Bathrooms – 3,974 - $1,450,000

4 New Cool Springs Condos - Under $300K

The following is a list of new Cool Springs condos. While these are in the area we know as Cool Springs, they all fall in the city of Franklin:

Gateway Village - 2 Bedrooms/2 Bathrooms – 1076 square feet - $209,000

Parkside Aspen Grove – 2 Bedrooms/2 Bathrooms – 1264 square feet - $229,922

Brentwood Pointe “The View” – 2 Bedrooms/2 ½ Bathrooms – 1584 square feet - $285,000

Ashton Park – 3 Bedrooms/2 ½ Bathrooms – 2150 square feet - $299,900

Also, I will mention one Brentwood condo development in Davidson County:

St. Martin Square – 2 Bedrooms/2 Bathrooms – 1276 square feet - $254,900

If you have further questions about any of these, feel free to contact me at jefffulmer@comcast.net or 615-545-8611. You can also learn more on the "communities page" on my web-site. Thanks!

New Cool Condos - Under $250,000

The following is a partial list of new Nashville condos that are currently on the market. These are going to be small in size, and all but one development is offering one bedroom and one bathroom units in this price range. However, they are all in great locations which is always excellent for rental and resale. So, if you are an investor or just want to be in the middle of things (or both), this list is a good starting point:

Centennial Row – One bedroom, one bath – 650 square feet - $184,900

The Encore - One bed, one bath, 722 square feet - $189,700

The Icon – One bedroom, one bath - 639 square feet - $199,700

The Glenn – One bedroom, one bath – 619 square feet $199,500

The Park at Melrose – Two bedrooms, 2 full baths – 1280 square feet - $199,900

Bristol West End – One bedroom, one bath – 553 square feet - $211,500

1101 Eighteenth/Music Row – One Bedroom, one bath – 726 square feet - $219,900

1010 On The Row – One bedroom, one bath – 812 square feet - $249,900

Because these are new developments, the association fees are relatively low. If you make less than $38,000, be sure to check on the “low income units.” And, always be sure to use a real estate agent. The developers build the commission in, so it cost the buyer nothing to get free advice and representation. If you would like information on any of these condos(or any others), feel free to contact me at 615-545-8611, or jefffulmer@comcast.net.

Waiting on Fifth and Main

The upscale condo development in East Nashville was a noble idea; however, Fifth and Main is now struggling to survive in a tough economic environment. In fact, since it is now in receivership, they are no longer even showing the units or taking offers. This may be an opportunity to take an advantage of a distressed property in the near future.

The developer, The Home Company (a subsidiary of Affordable Housing Resources), is a non-profit that specializes revitalization projects. In return for offering up a portion of their condos to lower income buyers ($38,000 and under), the organization received a $6 million in tax-increment financing from the city. Then the credit crisis hit and potential buyers suddenly had a more difficult time getting a loan. While Fifth and Main were initially able to sign up a hundred buyers, none have actually been closed.

I recently went to East Nashville to check out the six-story commercial and residential project. What I found was a modern building that cuts an impressive figure in its neighborhood just north of historic Edgefield. While I had trouble getting the elevator to work, I did find a helpful sales person who gave me a tour and informed me that the sales people were pulling out after that day. I may well have been last person to see the interior of the Nashville condos.

The first thing I noticed was how eerily empty the building was. Inside the units, I found incredible views of LP Field, the river and downtown. My vertigo actually kicked in just by walking into bedrooms with angular wall windows that hover over the busy street below. The units have many of the same upgrades of their counterpart condo developments across the river, such as stained concrete floors, stainless steel appliances and granite countertops.

The biggest difference is that Fifth and Main was offering their units at about a $100 less per square foot than the new midtown and downtown luxury condos. For example, a 750-square-foot unit sells for $149,900 (*affordable housing units), and larger units are priced at $191 a square foot to $265 a square foot. With the recent setbacks, I was encouraged to write offers at an additional 15% to 20% discount. Association fees also have been held to 20 cents to 22 cents a square foot compared to 30 cents or so per square foot that their competition demands. By comparison, Fifth and Main does not have a fitness center and a swimming pool which the most of the more expensive condos do offer.

I have signed up to receive updates on Fifth and Main when Wachovia decides what they are going to do with this development they now own. Long term, this Nashville condominium and retail complex will be an anchor for an entire neighborhood. Proximity to downtown and the over-all quality construction should ensure that this will be an attractive place to live. At the right price, this could also be an excellent investment. Stay tuned for more information or contact me at 615-545-8611 or at jefffulmer@comcast.net

The Adelicia Sells out

The Adelicia has announced that it will close on the last four of its 166 units this month. According to the Nashville Business Journal, the developer (Corner Realty Partners) cut its prices 17% to 20% to sell 18 units in the first quarter of 2009. Never-the-less, this marks an impressive achievement in a difficult economy and a competitive condo marketplace.

The stylish 18 story midtown high rise began selling a couple of years ago, getting a jump on some of the other newer developments. Price points started around the three hundred thousand dollar range and quickly went up, topping out at 1.7 million. The 670 to 2000 square feet units offer standard upgrades and great views of the city.

Situated between Music Row and Vanderbilt, the Adelicia enjoys a central location in the hub of nightlife activity. It also went the extra mile with an array of amenities, such as an Olympic size rooftop pool, fitness center with personal trainer, residence lounge to meet and mingle, and 24 hour security and concierge.

In 2008, the Adelicia accounted for about half the luxury downtown condo sales. With the Adelicia officially “sold out,” it may bode well for competitors around the city. Rest assured, there are plenty of rivals ready to pick up where the Adelicia left off.

Getting Into The Gulch

In an ongoing series, I want to take a closer look at the new condo projects springing up in Nashville. Touting three big developments, The Gulch seems like a good place to start.

Something of an industrial blight, the only reason I ever ventured into this area was to catch a show at 12th and Porter. That perception is changing before our eyes and it is now easy to envision an exciting urban hotspot. If you weren’t paying attention, it may seem the area just west of the downtown business district emerged overnight. In reality, it has been a slow and steady fifteen year plan that is now coming to fruition.

The Turner Family (of Dollar General Stores and Market Street Developers) owns and manages much of the thirty five plus acres. The Turners have mandated that retail space will occupy the street level of all buildings, ensuring a steady stream of shoppers and a vibrant nightlife. While the trendy Radius10 restaurant had to shut its doors recently, Sambuca, Watermark, Urban Flatts, Ru San all appear to be doing well. Yazoo Brewing Company is supposed to be moving to the area. Just last week, Urban Outfitters had their grand opening where the City Hall music venue was formally housed.

The Icon, a mixed-use, twenty-two story centerpiece, has been open for a couple of years and has already sold most of its units. I recently visited two of the newcomers to the Gulch that stand on either side of the Icon.

Velocity

Still in the construction phase, Velocity is a new midrise (6 stories). Ranging in prices from the low $200,000s to the mid $300,000s, Velocity is the least expensive of the three big developments. Velocity offers a variety of one and two bedroom units in 16 different floor plans. While a little on the small size, they do have a “lofty” hip modern feel.

Catering primarily to a younger market, Velocity offers a sky lounge with an outdoor cabana, a fitness room, a courtyard, and even a guest suite you can reserve for out of town guests. With 70% of their units already under contract, you will need to move fast to catch Velocity.

Terrazzo

On the high end of the Gulch is the glass plated Terrazzo, standing a sleek fourteen stories. Prices begin in the low $300,000s and go all the way up to the penthouse price of $1.6 million. 109 units run from one to three bedrooms, ranging in size from 950 to 3200 square feet. The spacious units have high-end touches throughout like bamboo flooring, Italian kitchen cabinets, gleaming appliances, and open, flowing floor plans. The result is an impressive living and entertaining space.

“Terrazzo” means “terrace” in Italian, and true to its name, each unit has at least one large terrace. Floor-to-soaring-ceilings (11 foot, 4 inch) windows bring the outside in. Amenities include a sixth floor pool terrace with a large lap pool, fitness center, 24 hour concierge, and “room-service” from in-house and neighborhood restaurants. Nashville’s first pre-certified green building, Terrazzo has gone the extra mile in providing environmental quality which will lower your utility costs while helping the planet.


Both Velocity and Terrazzo provide at least one parking space per bedroom and have controlled access garages. With easy access to downtown, Vanderbilt, Music Row and the Interstate, the Gulch is centrally located. However, as businesses fill in around 12th Street, you may not need to drive anywhere. Before you know it, The Gulch will be the place to be in Nashville.

For more information on the Nashville condominium market, contact Jeff Fulmer at 615-545-8611