Owner: Fifth and Main auction a "downer"

THIS ARTICLE BY NEVIN BATIWALLA, IS A REPOST FROM THE NASHVILLE BUSINESS JOURNAL

Twenty-three units inside the Fifth and Main condominium were sold at steep discounts Saturday at auction.

Units at the beleaguered East Nashville mid-rise sold on average for about 43 percent less than original asking prices.

Buyers at the Sheraton Hotel in downtown Nashville paid an average of $135 per square foot — well below the $160 per foot mark that owner ACG Equities Inc. was hoping for.

"We thought we would get much higher prices than what we got," said David Lang, a principal with ACG Equities "… We are in it to make a profit, so I want to make as much money (as possible) — that was the downer here. The silver linings are two things: The market knows we are ready to sell. The other success is that the property now has got new owners and the community is building. The good news is we had over 600 people come through the building in six weeks."

Sales continued following the auction for the remaining 92 units.

"We are going to go ahead and take these auction prices and maintain them for the remainder of the year," Lang said.

ACG Equities Inc., based in Rosemont, Ill., purchased the 129-unit development at auction in February for $11.2 million. Before Saturday's auction, 15 units had sold or were under contract.

The auction helped the development get closer to clearing a major hurdle— obtaining certification from the Federal Housing Administration. Potential buyers currently can’t get Fannie or Freddie financing for units in the building. To be eligible for government-backed loans, at least 30 percent of a development's units must be sold or under contract.

Grant Hammond, a real estate broker who specializes in urban Nashville condos, called the auction a success.

"The general consensus in Nashville is that it's a pretty good building in a bad location," Hammond said. "The fact they’ve actually sold nearly 25 units today is a great success. It proves it's a lot more viable than a lot of us thought."

Buyers looking to flip units will likely have to wait until the building sells out before seeing a sizable profit margin, Hammond said.

Williamson County TN Home Sales at 2011 Half

The real estate market in Williamson County continues to deliver solid numbers, with Franklin and Brentwood home sales leading the way. According to the Williamson Country Association of Realtors, residential closings in June were down 3.6% compared to May and down 7% compared to June 2010. Of course, last year the tax incentives were still in effect, so the market is learning to stand on its own two legs right now.

In June 2011, the median sales price for a home in Williamson County was $360,000, down slightly from June 2010 when it was $375,000. Since the beginning of 2011, the median price of a home has recovered 31%. The number of condo sales has dropped slightly from a year ago; however, the average Williamson County condo sales prices have held steady at $195,500.

As we continue to weather the choppy real estate market, the future looks hopeful. Forbes recently named Nashville as the number three boom town in the country. A primarily beneficiary of Nashville is Williamson County, which is the fastest growing county in the state and rated the 68th fastest growing county in the US.

Williamson County can attract its own share of business, with recent additions such as Nissan, Liberty National Life Insurance, and Verizon. Despite all the commercial growth, Franklin was still named one America’s most beautiful towns in a recent Rand McNally/USA Today Poll. With good looks, a low tax rate, great schools, and a diverse core of housing, Williamson County is poised to grow.

There are a lot of great opportunities in the real estate right now. If you have any questions regarding homes in Franklin or Brentwood or in the surrounding area, feel free to contact me through my web-site, at jefffulmer@comcast.net, or 615-545-86111. If you are just starting the search for a condo, I have two videos which give quick overviews of Franklin TN condos and Brentwood TN condos.

2011: Off to a Good Start

Despite inclement weather and no incentive tax credits, the Greater Nashville area saw a 6.6 percent increase in homes sold in January 2011 compared with January 2010. Last month, 1,101 homes were sold; January 2010 saw 1,033 closings. The numbers represent a good start to the year and spark some much needed optimism in the local real estate market.

According to the Greater Nashville Association of Realtors (GNAR), median prices for single-family homes also showed an increase compared to January 2010. The median price of a single-family residence was $165,500 in January 2011 compared to $159,000 last January. Condominiums in Nashville saw a decrease in median price for January 2011 at $131,500. By comparison, the median price for a Nashville condo was $154,550 in January 2010.

To read the entire press release, click here. If you would like more information on opportunities in the Nashville real estate market, feel free to contact local Realtor, Jeff Fulmer at 615-545-8611 or jeff@jefffulmer.com