Quick condo sales update for the 5th & Main condo project in Nashville.
As of September 4th, 2009 there have still only been 7 total sales in the building despite all of the hoopla. 5 of those condo buyers closed prior to the project slipping into receivership in February of 2009. The last 2 buyers, all cash buyers by the way, closed on August 6th and 12th.
The Tennessee Disability Coalition was the first buyer who paid $285,000 for a 1,429 square foot 2 bedroom condo on the 6th floor (though I am not sure the non-profits who donate to this organization would approve of this particular use of funds). The second buyer was B. Teveit who paid $206,000 for a 1,144 square foot 1 bedroom condo on the 6th floor.
An August 7th Tennessean article quoted the seller’s real estate agent Mark Deutschmann from Village Real Estate as saying that “five sales are pending for buyers paying with cash”, but clearly only 2 have closed as of September 4th. Is it possible that the remaining 3 buyers got cold feet? with the impending FHA changes, I hope so for their sake.
I am sure some of you will take the above information with a grain of salt, but in checking with the Davidson County Register of Deeds, there are also several pending mechanics liens against the property totaling over three quarter of a million dollars. In addition, a source very close to the project told me that “the developers still owe vendors millions”. Now that will wake you up in the morning!
Official recommendation: Wait and see what happens by the end of the year prior to buying at the 5th & Main in Nashville, TN.
Why: Wachovia can and might foreclose on the entire 3 phrase development if a cash buyer waltzes by with $18-20 million. If that happens, deals and steals shall ensue.