It is rumored that the 5th and Main condos in Nashville have endured receivership and will be placed back on the market any day. From what I understand, Wachovia Bank continues to be involved in the project as the primary construction lender and has actually already resumed construction in phase II (someone send me a pic). I also learned that the bank has cleared all liens and that all contractors have been paid an agreed upon sum in order to resume work. No word if that sum is less than the amounts originally filed in the mechanics liens.
It also appears that that Ghertner is no longer managing the building. Freeman and Webb, one of Nashville’s most diverse property management companies, has stepped in to not only manage the property, but also to handle all of the retail space and residential condo leasing. This of course means that Village Property Management is out. There is not all bad news for Village as they will continue to market the individual residential condos for sale.
It is also rumored that the more than 100 outstanding pre-construction condo contracts will be brought back to the table. No word on what concessions may be offered, but I would expect to see a minimum of 3 percent in closings costs, all appliances thrown in and perhaps some amount of HOA forgiveness. For those who do not wish to close, it appears that you may be able to get some of your deposit back, maybe 50 percent or so, but don’t expect the bank or Village to refund your entire deposit.
My advice for pre-construction contract holders: negotiate, negotiate, and negotiate some more. This is a trendy project with floor to ceiling glass all over the place and has great rentability. I wouldn’t be completely against owning a condo in this building. Nothing really looks like it in Nashville and it will be a solid investment in the long run. No room to flip and make a profit in this economy, so it truly is a 3 or 4 year investment.
Update 7/31/09: I went down to the Davidson County Registrar’s office and learned that not all of the liens have been cleared from the 5th & Main project. In fact, there appears to be more than $535,000 of unpaid mechanics liens. I have also learned that 5th & Main lost FHA approval more than 45 days ago making it very difficult to finance. I am no longer sure that this Nashville condo project can survive.