This morning the Tennessean reported that the Velocity in the Gulch’s ownership has been restructured. “The new owner of the 265-unit building in the Gulch is Velocity Residential LLC, with its principal offices listed with the identical address as the project’s lender, BBVA Compass Bank.” It should be noted that BBVA Compass in not the only bank who has loaned construction funds, but BBVA Compass is the lead bank.
As one may assume, this news comes as a shock to many in the public who have not followed the progress of the Velocity. However, it may also come as a shock to learn that the Icon in the Gulch went through a similar restructuring just over a year ago. The net result of that restructuring was the acceleration of condo sales aided by the ability to adjust prices and offer more attractive incentives. Since restructuring, the Icon has systematically been able to inch prices up to levels above pre-construction pricing in 2006. There are no guarantees that this trend will continue, but this is empirical proof that restructuring is not a death sentence.
In speaking with a condo owner in the Gulch, he echoed the same sentiment: “While certainly not ideal, hopefully this is the shot in the arm Velocity needs. In the few short months I’ve lived in the Gulch, our building has raised prices a couple times due to steady sales and the same plan as the one we purchased has sold now for $40k more than we paid. There are no other communities, at least that I can think of, in this area that have a bank, multiple restaurants, a salon, a coffee shop, a few clothing stores, a free shuttle to downtown, and will soon have a grocery as well.”
The grocery the condo owner is referring to is the Nashville-owned Turnip Truck which is currently under construction at 311 12th Avenue South in the Gulch. Set to open this fall, The Turnip Truck will open a 9,200 square foot organic grocery store that features a full meat and seafood department, an indoor-outdoor cafe and a selection of fresh prepared-in-house foods.
The Velocity was built to be the most affordable condo option in the Gulch. But, the world changed during its construction. This ownership restructuring may give Velocity the ability to return to its roots. That change should attract plenty of buyers who want to enjoy affordable living in Nashville’s urban residential district.
Without question, the Gulch has experienced its fair share of growing pains resulting from the economic downtown, mortgage crisis and shrinking credit markets. However, looking at recent sales data, no one can deny that Nashvillians are invariably attracted to this area. Buyers enjoy an urban walk ability that offers convenience, upscale dining, boutique shopping and a bustling nightlife. I cannot see a path that does not lead to a considerable rebound in the Gulch over the next 24-36 months.
See all condos for sale in the Velocity in the Gulch