It’s a veritable Ground Zero that’s sending shockwaves throughout the SouthEast and Beyond.
When the economy went funky @ 7-8 years ago, Residential construction in the Downtown Nashville core came to a screeching HALT and many developers went belly-up.
Many projects never made it out of the ground creating vast un-built pieces of land and even a famous “in-town lake” affectionately known as “Lake Palmer.”
Today, it seems the flood gates have opened in a LARGE way.
Downtown Nashville has become a veritable “Crane Farm” with more cranes popping up daily.
Apartments, Condos, and Class A Office space are all coming out of the ground with a quickness that defies gravity.
It also seems that PRICES are defying gravity.
Being the Real Estate Strategist I am, I thought I’d fiddle with some statistics and share them here.
The newest condo building is The ever-so-beautiful Twelve Twelve which we Nashvillians have watched SPRING out of the ground in all of its glory.
I decided to make that building my “Ground Zero” in this cursory study of our Nuclearly explosive development.
So . . . I put a 1 mile radius around Twelve Twelve and took a look at the Condominium sales.
We’ll keep the analysis simple and only compare # of units sold, Average Prices, and Average Price/SF in 6 month increments for the past few years.
This is RAW DATA! I didn’t scrub it, tweak it, or otherwise compromise it.
I also think it speaks for itself, but I’ll write a wee bit of commentary on the other side of this Spreadsheet
|Units||Sq Ft AVG||LP/SF AVG||SP/SF AVG||L Price AVG||S Price AVG|
The Encore looks like a BARGAIN with it’s slim $366/SF figure, eh?
Yep . . . The FLOOR in this downtown market is just shy of $400 per Square Foot with some units fetching upwards of $700/SF
Check out the upward trend from January of 2012 til present with virtually ZERO new construction during that period . . . and as the new construction comes on-line, we’re hearing people talking about “New York City Pricing.”
Following are a few recent articles that’re worth a read.
We Nashvillians are WOWED by all of this activity and pricing appreciation. Every day, another milestone passes as Apartment complexes are selling at record prices per unit and office buildings are capturing premium rents.
The BIG question:
Will it last, or are we setting ourselves up for another fall?
I lean towards the optimistic side . . . Enjoy the ride!
“That makes Twelve Twelve the first condos to hit the market here since the recession killed demand five years ago. For that matter, Twelve Twelve appears to be a forerunner for much of the Southeast ( see our exclusive slideshow of Twelve Twelve here).
In an interview Tuesday, Hensler told me 65 of the tower’s 286 condos have gone under binding contract. That represents $49 million worth of condos, which is above and beyond the $35 million his lenders required him to obtain. Last week, Hensler signed revised loan documents that officially permit the switch from apartments to condos.
“Candidly, I feel we are underpriced now, but we will stay that way until the loan is paid off,” Hensler continued. “Once we are debt-free, we can decide how much to adjust pricing.”
“The shift to residential makes sense if you consider that Nashville’s job growth remains among the strongest in the nation. The metro area is projected to intake 1 million new residents over the next two decades, at an average clip of 50,000 people a year. Downtown living is increasingly popular, particularly among the millennial generation.”
“The Gulch building, at 1201 Demonbreun St., will include 275,000 square feet of Class A office space, the highest-rated office space there is. The building will cozy up to the Twelve Twelve condo high-rise being built by developer Ray Hensler.
Eakin’s building continues the latest chapter in the maturation of the Gulch, which 15 years ago was a dilapidated rail yard. It’s now dominated by high-end apartments and condos, along with upscale restaurants and trendy retailers.
The next stage is Class A office space
The Eakin building will be the second office building to open, next to the one now under construction for MarketStreet Enterprises — the original driving force of the Gulch’s rebirth.”
I’d be remiss if I didn’t offer a “Shameless Plug” for Pareto Realty . . .
What keeps us up at night is our self-imposed obsession with studying our LOCAL market so we can advise and negotiate effectively for our clients – Home Buyers and Sellers throughout Nashville and Middle Tennessee.
When you’re ready for a move, connect with us – Your “Hometown Nashville Real Estate Professionals.
OBTW – We are also THE SOLE Real Estate Firm Sponsor for this year’s Live on the Green Music Festival – Join us there in August!