The Encore Condos in Downtown Nashville Sold Out

Encore Condos Retail Space

Encore condos in Nashville
Less than 2 months after the trendy Music Row Rhythm condos sold out, the Encore becomes the latest high-rise condo development to join the growing list of sold out developments. The 333 unit development, built in partnership between the Novare Group of Atlanta and Tony Giarratana of Nashville, broke ground in mid 2006 and was completed in the second quarter of 2008. In that first year of operation, 214 condos closed (64.26%) at an average price of $301.55 per square foot. As the economy grew weaker, so did the sales volume and pricing in the Encore reaching an all time low of 26 condos sold in 2010 (22 developer owned, 4 private resales). In 2011, the Encore turned the volume corner, but the developer allowed prices to slip to their lowest point by selling 36 condos (26 developer owned and 10 private resales) at an average price of $252.72 per square foot. Contributing to the 2011 price weakness is the fact that half of the resales were distressed sales.

Finite Supply Will Lead to Higher Condo Prices

Now that the developers have zero condos left to sell, true market forces will return to the Encore. Currently, there are 15 resale opportunities listed on the MLS which represents only 4.5% of the entire building. Of those 15 condos, 4 are MDHA income restricted condos leaving 11 market value resales. Of those 11 resales, 3 are currently under contract with another 2 working offers. Moreover, with an average asking price of $293.06, prices have already begun to increase rather significantly. Granted, the final sales price will not be as high as the average listing price, but it is clear that a finite supply of condos in the Encore will result in prices that will soon approach and surpass 2008 highs.

Encore Condos for Sale

Encore Gains Multiple Retail Tenants

It has been several months since celebrated chef Deb Paquette announced her latest venture called Echo (now named Etch) in the Encore, but there are also two more restaurant/coffee tenants readying to make similar announcements. While I am not at liberty to name these tenants directly I can describe one as a high end sushi restaurant that features a rather large and trendy bar. This restaurant will be located next to Etch and be similar in size. The other tenant can be described as a successful local coffee and deli provider who is opening another location. There is no doubt that the impending completion of the billion dollar convention center and hotel complex will contribute to increased retail space leasing activity which in turn leads to an enhanced living experience in the Encore.

Advice and Recommendations

As a condo owner in the Encore and a broker who has represented more than 40 clients in the building, I am in the unique position of being the all time leading outside sales leader as well as an Encore insider. I have crunched the numbers and can steadfastly predict an increase in Encore condo prices over the next 2 years. Buyers who have been on the fence about a purchase in the Encore should have a sense of urgency. Sellers who are considering selling their condo, especially those on higher floors, need to understand the defined finite supply of condos and consider raising their asking prices to match the market. There are no new condo buildings under construction in Nashville and only the Laurel in the Gulch is planned to break ground at some point later this year.

Should you or someone you know be considering making a purchase or selling their condo in the Encore, please contact me. Having sold over 250 condos since 2006, I am the most successful condo broker in Nashville. Put my 10 years of experience to work for you and let me guide you to the most successful and profitable transaction possible.

Grant Hammond, Broker, ABR, SFR, ePRO
Call or Text: 615-945-7123
Encore@GrantHammond.com
View Available Condos

encore condo building nashville

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The Echo Restaurant Era Begins in Encore Condos

Echo Restaurant NashvilleToday, March 7th, construction has begun in the street-level retail space of Encore condominiums in preparation for the restaurant, Echo. Echo is renowned restaurateur and chef Deb Paquette’s latest submission to the Nashville restaurant scene. Slated to open in the fall of 2012, the 4,000 square foot space will seat 150 patrons and offer a private dining room, full bar, outdoor patio and an open kitchen with bar seating, allowing guest to interact with the much celebrated chef.

Paquette, a graduate of the Culinary Institute of America, has been featured in Bon Appetit, Southern Living and on the Discovery Channel’s Best Chefs of the South. Gourmet Magazine named Zola, Paquette’s last venture, one of the 60 best restaurants in the United States. Furthermore, Paquette has been named “Best Chef” in Nashville a record 16 times by the Nashville Scene readers poll. As an Encore condo owner, I feel very lucky to have such a notable Chef coming to my building and am very proud to see Nashville back on the culinary map.

Will Echo Affect Encore Condo Pricing?

You better believe it.

The Encore features 333 condos with a little more than 20,000 square feet of street-level retail space. Up until now, that retail space has remained 100% unoccupied. It is a proven fact that condo sales are amplified by attractive, well liked and utilized retail space. This fact has been proven out by other developers who have “seeded” their retail space with upscale dinning and shopping establishments. For example, when the Icon condos seeded their retail space with Casablanca Coffee, Cantina Laredo, Urban Flats and Cashmere Salonspa, sales experienced a significant jolt. When sales began to lag in the Gulch, master developer MarketStreet attracted urban grocer Turnip Truck and the rest is condo price increase history.

Echo is simply the beginning for the Encore. I have it on good authority that a local coffee house is considering opening a satellite location in the northeast corner of the building, adjacent to the Pinnacle building. With the impending completion of the Music City Center and Omni Hotel in 2013, I suspect more than 80% of the Encore retail space will be leased within the next twelve months.

Encore Condo Prices Will Increase

The developer only has 6 condos left to sell. Yes, those are listed at a lower price than condo owners would like, but once those condos are sold it will be up to owners to determine the new pricing. Typically, once a high-rise condo project is sold out, there is a natural 4-8% bump in price that occurs immediately as a result of no longer competing with the developer. Moreover, there is NO new condo supply coming to the market in the foreseeable future. The fact that the condo supply will remain static coupled by the fact that demand has not slowed will ultimately lead to a significant price increase in the Encore. Pressed to make a prediction, I would say that Encore pricing may appreciate as much as 18% by the end of 2013.

If you are considering a purchase in the Encore, there may not be a more opportune time to make your purchase a reality. The sales volume and velocity of downtown Nashville condos has been increasing for the past 7 months straight. Inevitably, price will begin to increase very soon as it has in buildings like the Icon and Adelicia.

Grant Hammond, Broker, ABR, SFR, ePRO
Call or Text: 615-945-7123
Encore@GrantHammond.com
View Available Condos

encore condo building nashville

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Rhythm at Music Row Condos Sold Out

With the last Cadence Bank owned condo placed under contract moved to pending earlier this week, the 105 unit Rhythm at Music Row condos have sold out. As you may recall, in a structured foreclosure on September 6th, Cadence Bank and Pinnacle Bank took possession of the 47 unsold condos in the development. Each bank listed their individual condos with local real estate brokers instead of selling them in bulk. Pinnacle bank listed their condos with Village Real Estate and Cadence Bank listed with Grant Hammond.

(final 7 condos under contract in the MLS)

Rhythm at Music Row Condos Sold

You may also recall that I postulated that if these Rhythm condos were priced correctly, the 47 would sell out in less than 9 months. I took a lot of heat for that prediction as being aggressive and unrealistic. The fact is that we collectively sold Rhythm out in only 5 months providing further proof that the Nashville condo market has bottomed out and is recovering.

Future High-Rise Condo Prices in Nashville

The Nashville condo supply has been shrinking for 3 consecutive years with no new construction in sight. We are quickly reaching a point when demand will outpace supply leading to an inevitable spike in pricing. Buildings like the Rhythm, Terrazzo and Encore which have recently sold out of developer or bank owned inventory will experience a steady price recovery over the next 12 months that will accelerate in 2013-2015.

The 5th & Main condos in East Nashville have now contracted 85 of their 129, all within the past 6 months, leading to the conclusion that this project will be substantially sold out by the summer. Once 5th & Main is sold out, there are no additional distressed condo projects. Let me repeat that: once 5th and Main sells out, there are NO more deals priced below the market. If you are a condo buyer who has been holding out for the bottom of the market, we are past that point, but there are still a few good deals remaining. Jump in soon or expect to pay a premium to live in downtown Nashville in the very near future.

♥ Grant Hammond has sold over 250 condos in Nashville since 2005. More impressively, he has never worked for a developer, all 250 sales were independent sales, making Grant the most active condo broker in Nashville. Put his unparalleled market knowledge, research and expertise to work for you.

Grant Hammond, Broker, ABR, SFR
Call or Text: 615-945-7123
Condos@GrantHammond.com

Rhythm at Music Row Condos

The Braxton in Ashland City Foreclosed, For Sale

Braxton Condos Ashland CityAfter many years of waiting, Bank of America has finally foreclosed upon the failed Braxton condo project in Ashland City. The Braxton is a 2 tower, 136 unit luxury waterfront development located next to the Harpeth Shoals Marina on the Cumberland River. Original pricing ranged from $450,000 to over $1.2 million for penthouse units.

The Braxton condos were originally developed as a luxury second residence for boaters, hence the construction of the 143 slip Harpeth Shoals Marina. The lure of the project was centered around the premise that one could take their boat to Ashland City for the weekend and have a place to stop, relax and congregate prior to returning to Old Hickory Lake a few days later. All throughout the sales period in 2007- 2008, PSLs for boat slips were included in the sale. In 2009, the sales team began advertising actual boats to be included with the purchase of a condo.

Challenges for the Braxton

Aside from the obvious challenges, the ground floor of the Braxton development was completely flooded in May 2010 during the great flood. Reportedly, there was as much as 4 feet of water in the shared lobby between the two condo towers. Additionally, the Tennessee port authority terminated its lease with the marina due to several violations that were reported by the Army Corps of Engineers. Other challenges include larger than average floor plans, the utter lack of comparables within a 15 mile radius, and an inadequate pool on the parking lot side of the building.

What Will Happen with the Braxton

Bank of America has engaged the Atlanta office of Jones Lang LaSalle to market the property for sale. That effort will begin shortly and it is expected that JLL will call for final bids as early as the end of March/beginning of April. Potential buyers will be analyzing the project from a condo, multi-family, hotel and possibly, timeshare prospective to determine the highest and best use.

As a broker who has evaluated this project for several years, I am open to working with potential bidders to aid in determining the true value of this asset. Tap into the research my partner and I have already performed and enhance your immediate understanding of the Braxton. Learn more about Ashland City, its proximity issues and who your true target market demographic is for this project.

Grant Hammond, Broker, ABR, SFR
Call or Text: 615-945-7123
Braxton@GrantHammond.com

Sales Update for the 5th & Main Condos Nashville

Outside View of Fifth & MainIt’s official, the 5th & Main condos are over the hump. If you had any reservations about this project not selling well or falling into distress again, fear not. In fact, the only fear you should have is missing out on the best condo deals in Nashville. The Marketing Directors have sold 88 of 129 condos, have 1 pending leaving only 40 available. Of the 40 available, only 3 two bedroom floor plans remain. If it’s the panoramic view of downtown you desire, only 3 one bedroom condos remain ranging in price from $142,900 to $223,900.

Having regained FHA project approval on January 19th, 2012, condo owners are well positioned to earn a handsome return on their investment. Once ACG Equities sells their last unit, meaningful appreciation should begin in earnest and peak in 4-6 years.

Price Increases in 5th & Main

The Marketing Directors have been strategically raising prices ever since the auction last Fall. Recently, the 2 bedroom condos received a $5,000 across the board increase and the 1 bedrooms were assigned a $3,000 increase. This is not the first increase, nor will it be the last. Heading into the hottest time of year for sales, I fully expect price increases to become more frequent and aggressive.

MDHA Affordable Condos in 5th & Main

5th & Main does have 17 condos that participate in the MDHA affordable condo program. If you are single and earn less than $37,000 annually, you may qualify to purchase a condo priced between $115,900 and $122,900. Unlike many other developments in Nashville, many of the affordable program condos have the best views in the building. As you would guess, the best views are limited so I would make my reservation quickly.

HOA Fees and Commercial Space

The 5th & Main condos have a $0.27 per foot monthly HOA fee, the second lowest in Nashville (The Rhythm has a $0.25/ft fee). To keep this in perspective, the Icon and Terrazzo have a $0.35 fee, the Encore has a $0.38 fee and the Adelicia is over $0.40 per foot. As you know, the Germantown Café East has been open for years (previously named Allium) in the building and a second restaurant called Myridia will open next month. Myridia is a Asian fusion lounge style restaurant.

I have assisted nearly a dozen clients locate and negotiate the best deals in this project. Put my unmatched research and expertise to work for you!

Grant Hammond, Broker, ABR, SFR
5andM@granthammond.com
Call or text: 615-945-7123

See all condos listed for sale in 5th and Main

5th and Main Condos Nashville

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Terrazzo Condos in Nashville 2011 Sales Review

Terrazzo Condos PoolIt has been just over 3 years since the Terrazzo first opened its doors and with the conclusion of 2011, the project is virtually sold out. All that remains are 3 penthouses priced between $950,000 and $1.1 million and 1 two bedroom flat priced at $535,000. More good news is that the average sales price per foot posted a significant 7.76% increase in price jumping from $238.72 in 2010 to $257.25 in 2011. Yet another positive sign for the building is that 3 condo sales in 2011 were resales compared with just 1 resale in all previous years. There are currently 4 resale condos on the market, with one presently under contract for significantly more than what the original resale buyer paid. You heard that correctly, #1207 will be on its third owner in as many years with each successive purchaser paying more than the last.

Looking to the future, I believe 2012 will bring continued price gains in the Terrazzo. I am conservatively predicting a 4.75% increase, but I believe that with sustained economic recovery and a lack of luxury high-rise inventory in Nashville, that price increase may be closer to 10%. I have been involved in dozens of sales in the Terrazzo and look forward to another great year in 2012.

As Nashville’s most successful condo broker, having been involved with more than 250 sales while never representing a developer, let me put my unmatched resources to work for you. As your representative, I know how to uniquely present your home to the market, maximizing exposure, sculpting the message and avoiding the pitfalls that besiege lesser qualified agents. Should you or someone you know be in the market for a purchase, allow me to share all of the inside minutiae associated with each high-rise so you can make the most informed decision. As a personal owner of multiple condos in multiple buildings, I have a keen perspective that uniquely qualifies me to represent your best interests.

Direct Line: 615-945-7123
Email: Terrazzo@GrantHammond.com

View current inventory listed in the Terrazzo Condos

Terrazzo Condos Sold in 2011

Terrazzo Condo Sales for 2011

(note: the blue highlighted transactions are resales)

Navigate back to my Nashville real estate home page to see additional research I have posted this year.

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