The Rhythm Sues Cash Strapped Buyers

The Rhythm at Music Row has become the latest new Middle Tennessee condo development to sue buyers who try to back out of their purchases.

Rhythm Partners LLC, the Brentwood-based developer of the 14-story, 105-unit condo building that came online this spring, filed suit Friday against four buyers who would not or could not close on their units…read the entire Rhythm sues condo buyers story

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The Rhythm Sues Cash Strapped Buyers

This article entitled “Rhythm developer latest to sue would-be buyers” appeared in the Nashville Business Journal on June 30th, 2009. The writer is Turner Hutchens:

The Rhythm at Music Row has become the latest new Middle Tennessee condo development to sue buyers who try to back out of their purchases.

Rhythm Partners LLC, the Brentwood-based developer of the 14-story, 105-unit condo building that came online this spring, filed suit Friday against four buyers who would not or could not close on their units.

The suits, filed in Davidson County Chancery Court, accuse the buyers of violating the terms of their contracts and ask for the developer to be awarded the full purchase price of the units, plus legal costs. The units range in price from $317,000 to $539,000.

The sour economy, tight lending conditions for buyers and a glut of new condos coming onto the market in the past year have combined to slow sales and create financial headaches for condo developers.

There are legal conflicts with reluctant buyers at several Nashville-area high-rise residential developments.

Bristol Development has filed suit against buyers who pulled out of purchasing units at the Bristol West End in Midtown Nashville. Jamison Station in Franklin has successfully forced buyers to the closing table with suits against them.

Icon in the Gulch, a joint venture of Bristol Development and Marketstreet Enterprises, is also the defendant in several suits by buyers who signed contracts on units there, but claim the developers were deceptive in their promises and their dealings regarding the development.

Terrazzo in the Gulchhas also been sued by buyers claiming they were misled and that information was not disclosed properly. Terrazzo’s developer is Crosland Tennessee.

Several local condo developments have been put into receivership by lenders. They include the Braxton in Ashland City, 5th & Main in East Nashville and Rolling Mill Hill in downtown Nashville.”

I have not had an opportunity to wrap my mind around this news, but it should be noted that I represent 2 of the 4 buyers being sued in the Rhythm and that I am also a contracted purchaser of a $500,000 condo in the building.

Pictures of Velocity in the Gulch in Nashville

the velocity in the gulch

The entrance to the Velocity is located on the Pine Street side of the building. This side of the building is currently 95 percent complete and looks quite modern….see dozens more Velocity condo pictures

Pictures of Velocity in the Gulch in Nashville

the velocity in the gulch

The entrance to the Velocity condos is located on the Pine Street side of the building. This side of the building is currently 95 percent complete and looks quite modern.
  
The main lobby in the Velocity is not the largest lobby in downtown, but it might be the most interesting. There are a variety of materials used as well as patterns and colors. You can see the computer screen in the middle of the room, this is Velocity’s online concierge that is available when the onsite concierge is not. There will only be a live onsite concierge on duty during normal business hours.

The hallways of Velocity feature many modern works of art and other architecturally interesting items to jazz things up a little. The building is certainly not a plain apartment-like structure.

This is the elevator lobby on the 5th floor on the back side of the building. Directly behind me is the entrance to the sky lounge that features panoramic views of the Nashville skyline.
 
The gym at the Velocity is the only gym in a downtown condo building that really feels like a high end fitness center. The space is cavernous and is filled with nice equipment. This picture only shows about half of the gum’s equipment.
 
This is the downtown Nashville view from the sky lounge on the 5th floor at the . The Cummings Station building is the red brick building in the foreground.

The sky lounge on the roof at Velocity. There is a good amount of seating available as well as a very cool outdoor fireplace. The space could be a little larger for the building’s size, but it’s a nice touch since there is not a pool.
 
Here is a western view of the interior courtyard in Velocity. I was really happy to see that the developers spent a little extra scratch to plant more mature trees.
 
This is an exterior view of the Velocity on the Pine Street side of the building. This paver roundabout is the resident drop-off driveway. I have not seen it at night, but I suspect that the lighting out here is very interesting.
 
This is another view of the interior courtyard in the Velocity. The fountain is actually quite large and is lit in several places creating very cool effects. There are a few different seating areas available as well as resident only entrances to 3 different retail spaces. No word yet on who the retail tenants are going to be, but rumors speculate on a trendy clothing store, a grocery store (Trader Joe’s and Whole Foods) and a deli.

Fixed Rate Mortgages Settle After Sharp Gains

Coming down from a seven-month high of 5.59 percent a week ago, rates on 30-year fixed home loans lowered to 5.38 percent last week. Freddie Mac reports that interest on 15-year fixed mortgages was lower as well, slipping to 4.89 percent from 5.06 percent over the same period…read the entire Nashville mortgage rates article

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Fixed Rate Mortgages Settle After Sharp Gains

Coming down from a seven-month high of 5.59 percent a week ago, rates on 30-year fixed home loans lowered to 5.38 percent last week. Freddie Mac reports that interest on 15-year fixed mortgages was lower as well, slipping to 4.89 percent from 5.06 percent over the same period. An upward trend in borrowing costs over the past three weeks was linked to rising yields on long-term government debt, sparked by investor concerns over inflation. According to Freddie Mac, however, new data suggest that inflation might be under control.

The financial markets seem to be moving very sideways at the moment, making it very hard to accurately predict where Nashville mortgage rates are heading over the next few weeks. My gut is telling me not to expect any wild swings either way. That being said, rates are still very attractive and lenders are becoming more flexible on primary residence purchases. It could be a good time to look at some excellent foreclosure opportunities in the Nashville area.

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