Nashville’s Encore Condos Expand Closeout Pricing

encore condo building nashville

encore condo building nashvilleWith only 27 developer owned condos remaining in the 332 unit Encore development, pricing and incentives are being offered to sell the building out by mid-year.

The only high-rise condo project in SoBro (south of Broadway district), the Encore is now almost 92% sold out with a few choice one and two bedroom condos remaining. Strategically, the developers did themselves a great service by leaving several condos available on higher floors that feature excellent views of Titans Stadium, the Cumberland River and the downtown skyline. With FHA condo financing available to buyers, prices near their lowest levels since opening in 2008 and quite a few incentives available, I suspect the Encore will sellout by the end of summer 2011.

Encore Condo Sellout Incentives

1 parking space per bedroom
Hardwoods added to the hallway and living rooms to match kitchen hardwoods
All appliances including the refrigerator, washer and dryer (value $2,700)
$2,000 California closets credit
$4,000 seller paid closing costs
6 months of seller paid HOA dues

Ask Grant Hammond how the Encore stacks up to the other condo developments in Nashville!

Condos for Sale in the Nashville Encore

Viridian Condos Finally Gain FHA Approval

viridian roof top pool

viridian roof top poolThe Viridian has taken a critical step towards reestablishing itself as a premier condo development in Nashville, it has gained FHA approval from HUD. While FHA loan approval may not sound like it is that big of a deal, it is. It is a huge deal. In fact, it is the single most important factor in any condo building’s modern day success.

Since the collapse of conventional lending in the condominium sector 3 years ago more than 80% of all new purchase loans for downtown Nashville condos have been underwritten by FHA. Additionally, FHA loans only require a 3.5% downpayment giving more young professionals an opportunity to purchase a condo in our vibrant downtown district. Finally, virtually all banks and lending institutions utilize FHA backed loans, giving condo buyers the ability to stay with their preferred lending source.

As a result of the Viridian gaining FHA approval, I have upgraded this building to a moderate buy rating. One must still use care when choosing a condo within this building, but it is now a viable option.

FHA Approval for the Viridian in Nashville

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viridian condos fha loan approval

Condos for Sale in the Viridian

A Lesson in How Money is Created

money to burn

money to burnRecently Heath Albritton with F & M Bank and I were having a spirited conversation about the money supply, as a result, he forwarded me this interesting and straight forward narrative. It’s a little off my normal real estate topics, but I thought I would share.

Money is an important factor in our lives, yet its origins remain a mystery to many people. Centuries ago, money arose as gold (hence the gold standard), whose owners would store their supply with a goldsmith. The goldsmith, in turn, would issue receipts for the stored gold. Because the receipts were easier to exchange than the physical gold, the receipts became the medium of exchange.

Today, these receipts are no longer tethered to gold. In fact, our currency is tethered to nothing. The money we have today is known as fiat money, in that it has no intrinsic value and realizes its money status by government decree.

When most people think of money, they think of the physical currency in circulation – the paper and coins manufactured at a mint. But physical currency is only a small percentage of the money in circulation. Most money is held in digital form, in checking and savings accounts and time deposits.

A fiat money supply is predicated on debt issuance. The Federal Reserve purchases assets, namely government bonds, on the open market from financial institutions. It then pays for these purchases by creating money ex nihilo (“out of nothing”) and depositing it with these institutions. In turn, the financial institutions create even more money by lending the money created by the Federal Reserve through fractional reserve banking. For example, if a bank has $1,000 on deposit and the Federal Reserve mandates a 10 percent reserve requirement, the bank is able to create an additional $9,000 in loans, which is essentially new money created from the $1,000 on deposit.

When the overall economy contracts, the overall money supply tends to contract as well, because people are less apt to borrow. To counteract the decrease in money supply – which can be substantial – the Federal Reserve will inject more money into the banking system through open-market operations, also known as “quantitative easing.” In short, as loan demand goes so goes the nation’s money supply.

Of course, if you have money, fiat or otherwise, let’s chat about acquiring real estate in Nashville. You’ll be glad that you did.

Rhythm at Music Row 2010 Condo Sales Recap

rhythm condo sales 2010

rhythm nashville condosWhile it may seem that the Rhythm at Music Row flies under the proverbial radar, the developer has quietly sold 55% of the project’s 105 residential condos. Feeding off the popularity of the Gulch, the Rhythm sold 26 developer owned condos in 2010 compared with 32 in 2009. This leaves the project with 47 units left to sell, a manageable number that will most likely fully absorb over the next 24 months. It also seems likely that preferred condo financing may become available for this project in 2011.

Year Over Year Condo Prices Fall in Rhythm

The average price of the Rhythm condos fell to $272.00/ft in 2010, down from $365.17 in 2009. On the surface, this is a 24.5% drop in price, but consider that nearly all of the penthouse sales occurred in 2009 with an average price per foot that exceeds $500/ft. I suspect that 2011 and 2012 should bring prices very similar to those posted in 2010.

2010 Rhythm Nashville Condo Sales

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rhythm condo sales 2010

View all condos for sale in the Rhythm at Music Row

Terrazzo Nashville 2010 Condo Sales Recap

terrazzo nashville condo sales 2010

terrazzo condos in nashvilleRiding the post condo auction wave, 2010 was a banner year for the Terrazzo in Nashville’s Gulch. Bolstered by lingering closings from November’s auction, the Terrazzo closed 45 condos in 2010 compared to 40 in 2009. With only 117 total residential condos in the development, the Terrazzo now has 32 left to close before 100% sellout. As a majority of the remaining inventory appears to be the larger, more expensive units, I suspect it may take more than a year before the Terrazzo is completely owner occupied.

Year Over Year Condo Prices Slide in Terrazzo

The average price of the Terrazzo condos slide back to earth in 2010, down to $238.52/ft from a high of $278.99/ft in 2009. This represents a 16.8% decline in year over year condo prices. However, since the developer sponsored condo auction in November 2009, the Terrazzo prices have held rock steady. The auction achieved an average sales price of $233.01/ft for the 25 condos sold that day. I feel very comfortable in predicting that the sales price will continue a very slow, yet measured climb in 2011.

2010 Terrazzo Condo Sales

 terrazzo nashville condo sales 2010

View all condos currently for sale in the Terrazzo Nashville

Icon in the Gulch 2010 Condo Sales Recap

icon in the gluch 2010 condo closings

icon in the gulch nashvilleDespite a sluggish national real estate economy, the Icon in the Gulch continued to outpace all other condo developments in Nashville by closing 75 condos during 2010. Selling 1.44 condos a week may not sound impressive, but trust me, it’s a little like Vince Young throwing for 350 yards against the Patriots in December. The Icon still has more than 130 developer owned condos remaining in inventory representing 2 years of remaining product, but considering the building contains 419 total condos, the light is clearly visible at the end of the tunnel.

Average Condo Price Climbing at the Icon

Many did not believe me earlier in the year when I spoke of rising prices in downtown condo developments, but now the end of year proves my calculations. In 2010, the Icon achieved an average price per foot of $307.18 compared to $296.13 in 2009, a 3.6% increase. This year also saw two of the highest price per foot transactions in the building’s history: condo #2101 sold on July 6 for $479.62/ft and condo #2111 sold on August 30 for $433.76/ft. Neither of these transactions occurred on the penthouse floor, but both condos were on the downtown side of the Icon’s tower.

2010 Icon in the Gulch Sales

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icon in the gluch 2010 condo closings

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