The Encore is a 333 unit, 20 story high-rise condominium building located in a pocket of downtown Nashville called SoBro (South of Broadway). The building delivered in February of 2008 in the face of the greatest economic downturn since the Savings and Loan crisis. Many wondered if the building could survive, if the developers could trudge through without losing their shirt. Some still look towards this glass behemoth and mistakenly imagine there must be distress. The condo vultures (my term of endearment for my clients who love to buy a good condo deal) have circled and lobbed offers down to the sales team, only to have them batted back at us.
The developer is down to their last 12 condos in the building, 11 one bedroom floor plans of varying size and 1 two bedroom floor plan. I am here to tell you that their asking prices are pretty firm, but they are offering a valuable incentive package to the last 12 condo buyers.
– 1 parking space per bedroom included (value $8,000)
– 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 (value +/- $4,000)
Average Prices in the Encore Since 2008
The numbers never lie. There was a time one could “steal” a condo in the Encore with regularity and as I accurately stated in 2009, that was the year to purchase. Anyone could walk into the sales center and negotiate a very good deal. Those days are over. If you are considering a purchase in the Encore, you need an experienced negotiator who has access to not only the 12 remaining developer condos, but also to dozens of pocket listings in the building. You need the most successful outside sales condo broker in the history of Nashville…you need me.
Where are the Condo Steals Now?
There are two options at the moment. Cadence Bank has foreclosed on 16 developer owned condos in the Rhythm at Music Row. They have sold 10 of those condos, leaving 6 vulnerable to your offers. 5 remaining condos are 1 bedroom floor plans, 1 is a two bedroom. Current asking prices range from $209,000 to $269,900, but the bank is accepting offers less than the asking price. For instance, the last sale was listed for $229,000 and closed for $210,000.
Your other option is the 5th & Main development by the Titan’s Stadium in East Nashville. This 129 unit development was recently bought out of foreclosure by ACG Equities and dramatically re-priced. When I say dramatically, I mean it. The current pricing of $135-$155 per foot is even below replacement cost. I find comfort in the fact that you can buy a condo for less than what a new one could be built.