Element Music Row | 19 stories, 431 Units | Musica Roundabout

[nashwatcher]

Who makes that kind of money...and would also want to live there??!  I mean it's a great development for the city, don't get me wrong, but if I'm making that sort of money I'm living in a beach-side mansion in St. Tropez, not in Midtown Nashville, TN.  haha

Musician who is going to be back and forth recording in Nashville. Wanting a nice crib. Doesn't want to buy. Or corporate executive. Or sports figure.

Very small demographic...

[UTgrad09]

That's absurd. Who makes that kind of money? I wonder who they expect to sell that to. Or, I'm so poor that I can't even imagine that kind of money.

[Pyramid Scheme]

Icon, 1212, Element: it's the same building! I feel like I'm taking crazy pills!

[smeagolsfree]

Being this close to the Music Row area, I can see a couple of these going as corporate apartments for companies like Sony.

[Vrtigo]

Musician who is going to be back and forth recording in Nashville. Wanting a nice crib. Doesn't want to buy. Or corporate executive. Or sports figure.

Very small demographic...

There are 13 penthouse units, though!

[titanhog]

If they're actually able to get the rents they're asking for on those penthouse units, that'll mean Nashville is even hotter than I ever imagined.

[titanhog]

Just heard on WKRN that the lowest price will be for a studio apartment at $1800 / month.

[markhollin]

As seen from the Sigler Street Court looking north:

[claya91]

Was reading an article Channel 4's website on Midtown housing prices. At the end of the article which I will link, they mentioned that the Element's occupancy rate is an astoundingly low 24%. Surely, this has to be an isolated occurrence or misinformation. 

http://www.wsmv.com/story/33062314/new-midtown-apartments-among-most-expensive-in-nashville

[titanhog]

1 hour ago, claya91 said:

Was reading an article Channel 4's website on Midtown housing prices. At the end of the article which I will link, they mentioned that the Element's occupancy rate is an astoundingly low 24%. Surely, this has to be an isolated occurrence or misinformation. 

http://www.wsmv.com/story/33062314/new-midtown-apartments-among-most-expensive-in-nashville

Gotta believe purchase, rental and hotel prices will all come down when everything is built.  

[Neigeville2]

That is weird though, if true.  Apartment owners have a lot of flexibility in terms of offering incentives of all kinds, and while I know nothing about their business, it seems obvious that if every apartment rents on day one, you left money on the table, and conversely if you're still mostly vacant months on, it makes sense to come down a bit.  You can raise rents later, it's not like a condo where you sell it once and what you get is what you get.  If a unit sits empty six months, you would have gotten more at half the annual rent.

I notice that the Sobro is offering 1 month rent free, and that building looks to me like a totally unique product on the Nashville market.  Maybe they've tested the waters and found they can't get what they hoped for.  There's bound to be a temporary glut with the level of construction we've had, but I don't think it'll last long; I think Nashville is right on the verge (3-5 years when the current crop of proposals is completed) of a new level of urban living which will draw even more high income people to the center.  

[Hey_Hey]

I don't think the vacancy rate means much without knowing when they actually started to rent these units out. I don't even know if the building is fully complete yet.  A 26% occupancy rate on a completely finished building is one thing. A 26% vacancy rate on a building that is still finishing the top 5 floors is another thing. 

That being said, the rental prices do seem crazy.  I'm early 30s and married with 3 young kids.  Age-wise, I'm in the target demo.  However, high rise renting with three kids a and a dog means I'm not really in the market. That being said, I can easily see myself considering these apartments 4 years ago when it was just my wife and I.  I could easily afford the units based on percentage of income to rent.  However, there are lots of things I can afford that don't seem like prudent purchases, and this is one of them. If I can live in Green Hills for half the price as Demonbreun Hill and put an additional $1000 toward retirement, other investments, or debt reduction then that's what I would do personally.  I would pay a premium to live in the Gulch, but I wouldn't pay the premium that they are currently asking for.  $1300 per month for a 1BR in the Gulch or Sobro seems reasonable if they market average is $1000 for a 1BR.  However, $2000 for a 1BR in the Gulch or Sobro seems like a poor decision if the market is at $1000 for a 1BR.

[Neigeville2]

55 minutes ago, Hey_Hey said:

I don't think the vacancy rate means much without knowing when they actually started to rent these units out. I don't even know if the building is fully complete yet.  A 26% occupancy rate on a completely finished building is one thing. A 26% vacancy rate on a building that is still finishing the top 5 floors is another thing. 

...

They started leasing December 2015, building was completed this last March, first leases began April (they wouldn't let anyone move in until the building was complete).  According to http://elementmusicrow.com/ they are currently offering lower (though still outrageous) rents and two months free.  Not a good sign given the thousands of apartments coming on line in the near future, but again, these markets go up and down.  At the rate the city's growing, I'm not worried.

[Hey_Hey]

16 hours ago, Neigeville2 said:

They started leasing December 2015, building was completed this last March, first leases began April

Wow, that isn't good.....

I hadn't seen seen much resident activity this summer and I just assumed that they hadn't finished yet.  The actual reason for the lack of resident activities was.........no residents.

[bmkTN]

19 hours ago, Neigeville2 said:

There's bound to be a temporary glut with the level of construction we've had, but I don't think it'll last long; I think Nashville is right on the verge (3-5 years when the current crop of proposals is completed) of a new level of urban living which will draw even more high income people to the center.  

Yeah,  I think this pretty much nails it.  Obviously they'd love to pack it out now, but their eye is prob more on that 3-5 year horizon.  Get things built while things are still relatively cheap and let it fill in as the city continues to grow.

[bigeasy]

I love how they have a price filter on the website for $1000-1999, and the lowest rent in that range is $1910. (and just a 564 sq ft studio)  This probably sounds bad but I am kinda glad to see this struggle. Maybe this will push the prices into a more reasonable range. I don't know how anyone can say $3100 for a 2 bedroom apartment, (in Nashville) is reasonable. If someone has that much money to waste a month, why not buy a home?

[RonCamp]

On 9/9/2016 at 10:11 PM, claya91 said:

Was reading an article Channel 4's website on Midtown housing prices. At the end of the article which I will link, they mentioned that the Element's occupancy rate is an astoundingly low 24%. Surely, this has to be an isolated occurrence or misinformation. 

http://www.wsmv.com/story/33062314/new-midtown-apartments-among-most-expensive-in-nashville

The number as of about 6 weeks ago was 18% occupancy.  So this seems correct.

[ZestyEd]

So increasing from 18% to 24% in 6 weeks is roughly renting 4 units a week.  If they maintain this pace it will be fully rented out in about 1 year and a half from now. 

[smeagolsfree]

That is not too bead considering the prices. When I spoke to the people inside, they said that the entity out of Charlotte that built these are in for the long haul. The do not sell their buildings and do not convert to condos.

[Guest]

I love how they have a price filter on the website for $1000-1999, and the lowest rent in that range is $1910. (and just a 564 sq ft studio)  This probably sounds bad but I am kinda glad to see this struggle. Maybe this will push the prices into a more reasonable range. I don't know how anyone can say $3100 for a 2 bedroom apartment, (in Nashville) is reasonable. If someone has that much money to waste a month, why not buy a home?

There is a direct correlation between rental rates and project budgets. If you are a fan of quality big buildings with cool architecture you want the stuff at the top of the market to be successful.

What should happen is that the new product should always push the price boundary up and the older stuff should have to lower their rates (or at least not raise them) to remain competitive. This is how the market should work if we want a variety of housing price points in the urban core.

[markhollin]

Looking NW from Music Circle East near intersection with Division Street:

[markhollin]

Looking east along Division St. from Music Square West (17th Ave. South):

 

[markhollin]

Looking NE from parking garage at corner of 18th Ave. South and South St:

[markhollin]

Thai Esane restaurant moving into one of the vacant first floor slots at The Element.  The restaurant has been located at 907 12th AVe. South for the past 5 years.  That .5 acre site will now be redeveloped. 

https://www.nashvillescene.com/food-drink/bites/article/21018590/thai-esane-moving-to-demonbreun-this-spring

https://www.nashvillepost.com/business/food-business/article/21019742/thai-esane-eyes-music-row-roundabout-tower

[Mr_Bond]

1 hour ago, markhollin said:

Thai Esane restaurant moving into one of the vacant first floor slots at The Element.  The restaurant has been located at 907 12th AVe. South for the past 5 years.  That .5 acre site will now be redeveloped. 

https://www.nashvillescene.com/food-drink/bites/article/21018590/thai-esane-moving-to-demonbreun-this-spring

https://www.nashvillepost.com/business/food-business/article/21019742/thai-esane-eyes-music-row-roundabout-tower

Thai Esane has done quite well in that boring little building in Edgehill.  I've had good food there many times.  Thai food will be a great addition to the Demonbreun Hill / Music Row area, especially with the Virgin Hotel opening on the other side of the naked people statues.