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Signature Tower


NewTowner

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....I have confidence that Nashville will find a way to make it happen.
Not trying to beat up on you, but this isn't a civic project nor one based on wide community involvement. It is the proposal of a developer looking to make a bigger name and some money for himself and his investors by selling condos that the vast majority of the population can't afford and those that could may not consider it good value for the money. The failure of this project isn't in any way a reflection of Nashville as a city but rather that of the developer who did not come up with a realistic project if it indeed doesn't get built.
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I wouldn't be surprised if tony splits the un-sold units into separate one-bedroom lofts and sells them for slightly more than half price for each loft. There are way more people willing to pay $200K for a 1-bedroom loft han $400K for a two-bedroom condo. Mainly, the monthly payments on the loft would be more affordable to a wider variety of people...the only problem is parking, but he could make parking an extra perk that has to be purchased...that should solve that...I'm sure some people would be enamored with the idea of selling their car and living an urban lifestyle and not purchasing a parking lot.

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Another option would be consolidating the remaining unsold space and turning it into apartments. It was stated in a tennessean article that Tony G's next few projects will definately be apartment based. I dont see why he wouldn't jump the gun a bit and put them in signature tower. Granted, this would take away some of the "presteige" from the tower but I think he is just about willing to do anything by this point. This project is a big stepping stone for his career.

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^I think there's a law stipulating that all new residential construction downtown must include a certain number of parking spaces per resident. Can't remember the exact ratio. Anyone with more energy or more concern for this project's viability might check on the veracity of that statement.

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^I think there's a law stipulating that all new residential construction downtown must include a certain number of parking spaces per resident. Can't remember the exact ratio. Anyone with more energy or more concern for this project's viability might check on the veracity of that statement.

I think you are right about that. I think the Signature was going to have around a 1000 spaces if memory serves correct. That may still be enough to serve the above mentioned change.

340 condos x 1.5 cars per unit = 510

250 rooms 250

200 employees 200 (employees of the hotel do not have to park at this building and many may take mass transit.)

So that is 960 spaces worst case if Tony increase the number of hotel rooms and decreases the number of condos

Lets say he takes 50 of the units and splits them to one room flats, that would only add 50 spaces at one car per. I am no expert and dont claim to be, but a 1000 spaces may still be enough.

This is all speculation on my part.

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I know monsoon said no economy talk; however, I think that the fed rate cut today may add some kindling to the fire Tony is trying to ignite.
It's OK to discuss it in terms of how it effects the construction of this building. The posts that I deleted had already wandered off to blame the bad economy on the "liberal media" and so forth.

On this particular item, take note the Fed cut short term rates in hopes of shoring up stock prices. Unfortunately this also has the effect of devaluing the $ more which will make it more expensive to build the building since the materials he needs are traded on a global basis. No doubt the rate on a construction loan will be less, but I can't help to imagine that it won't do much to bring more buyers out of the woodwork which is what is really needed, and is apparently missing, before this tower can be built.

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It's OK to discuss it in terms of how it effects the construction of this building. The posts that I deleted had already wandered off to blame the bad economy on the "liberal media" and so forth.

On this particular item, take note the Fed cut short term rates in hopes of shoring up stock prices. Unfortunately this also has the effect of devaluing the $ more which will make it more expensive to build the building since the materials he needs are traded on a global basis. No doubt the rate on a construction loan will be less, but I can't help to imagine that it won't do much to bring more buyers out of the woodwork which is what is really needed, and is apparently missing, before this tower can be built.

If someone were going to purchase a condo in Siggy, would that rate cut lower their mortgage rate? I talked with a banker yesterday that told me I could get a 5.5% today, and may be able to get as low as 5 1/8% within weeks.

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I wonder if Tony could develop the Westin on his site instead of Lower Broadway? He would have a hotel tenant that was already firm on locating here, and the Westin would not have to face height restrictions they would have in Sobro.

In the same vein, could he then build his high-end condos in conjunction with the new convention center hotel developer, occupying the top floors, effectively moving ST over to the CC?

That way you get ST and Tall Westin and the new CC all at the same time. Man, if we were developers...

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smealgolsfree-

Tony had planned for a 900 parking spaces. I remember reading that a few different times; although, he very well might have changed that since he has added more hotel rooms and such.

Glad you can remember, I have too many worthless facts in my head that clouds the good stuff from making it out. I was thinking it was close to a 1000 so I didnt miss the mark by much.

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nah, i'd rather have ST and a separate, tall CC hotel. However, If it's between ST in conjunction with the CC hotel or nothing, then yes I'd rather do that. The only problem would be the relocation of the site.

If he sells the ST site to Westin developers, he's got capital. If he goes in with the CC hotel developer, all he need to do is pay his percentage of the construction of his condo units atop the hotel, and maybe the architecturals for the whole tower to retain creative control and sweeten the deal.

Done this way, ST would be made rediculously, yet magnificiently, tall, having several hundred condos atop a 1000 room hotel. Though the CC site is 50 to 80 feet lower, but that would be made up easily in added height.

I think it would be great to have a 1200+ foot tower in conjunction with the new CC, set apart from the other downtown towers. Again, better than nothing?

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It's OK to discuss it in terms of how it effects the construction of this building. The posts that I deleted had already wandered off to blame the bad economy on the "liberal media" and so forth.

On this particular item, take note the Fed cut short term rates in hopes of shoring up stock prices. Unfortunately this also has the effect of devaluing the $ more which will make it more expensive to build the building since the materials he needs are traded on a global basis. No doubt the rate on a construction loan will be less, but I can't help to imagine that it won't do much to bring more buyers out of the woodwork which is what is really needed, and is apparently missing, before this tower can be built.

Fair enough. I did get off on a tangent.

But I do believe the public may be holding off on purchasing such as the units in Signature Tower based on market perceptions and those perceptions are controled at least to some degree by the media. I can agree with your assertion that rate cuts won't sway rich buyers. They'll either like it or not, jump on board or not. But the majority of the units in the tower are not aimed at super wealthy people. Most are in the 400,000 - 750,000 range (still more than I could ever buy). I don't believe this holds true for the top floor units in the 1,000,000-5,000,000 range because most of those people are likely immune to most of the economic trends. It may be a wait and see game for all those contemplating buying the 400,000-750,000 units. If the fed continues to cut the rates, I would bet the sales on the lower priced units will see some activity.

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Well whatever happens, TG is most definately going to have to work smarter, not harder is he wants this thing built. Using bruit force to try and get more sales just isn't going to cut it. -deleted by moderator-.

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Mod Note: The Admin already told us we had to keep talk the media pushing the national view on the economy out of this thread. Talk of the economy in relation to this project is fine, but no more "media reports doom gloom.....thus A or B won't happen.....thus its the media's fault....etc".

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If the fed continues to cut the rates, I would bet the sales on the lower priced units will see some activity.
The way the fed accomplishes rate cuts is to print more paper money. It doesn't help anything at this point because that practice makes things more expensive. Aside from that, these luxury towers a very difficult time selling in an economy that is perceived to be in bad shape, where people are worrying about their jobs and cost of living, and where there is a general lost confidence in government. This cuts right into the income levels where the majority of these units are aimed.
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The way the fed accomplishes rate cuts is to print more paper money. It doesn't help anything at this point because that practice makes things more expensive. Aside from that, these luxury towers a very difficult time selling in an economy that is perceived to be in bad shape, where people are worrying about their jobs and cost of living, and where there is a general lost confidence in government. This cuts right into the income levels where the majority of these units are aimed.

Maybe but what level income are you referring to? It has to be substantial to warrant an upper floor million plus dollar unit, especially if it is a second home.

Really though it doesn't take a rich person to afford a $400,000 condo unit. It takes a person who is comfortably well off but not rich. FYI - the average selling price for a new home in Oconee County, Georgia where I live is over $300,000 and it is mainly doctors, lawyers, and business owners who are buying them who commute to Atlanta to work. LOL - our home is the 150,000 kind but they're not building those here anymore because the land is so expensive.

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Well whatever happens, TG is most definately going to have to work smarter, not harder is he wants this thing built. Using bruit force to try and get more sales just isn't going to cut it. -deleted by moderator-.

----------------------

Mod Note: The Admin already told us we had to keep talk the media pushing the national view on the economy out of this thread. Talk of the economy in relation to this project is fine, but no more "media reports doom gloom.....thus A or B won't happen.....thus its the media's fault....etc".

Sorry. Monsoon pretty much just summed up what the rest of my post was trying to say in his post above.

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Maybe but what level income are you referring to? It has to be substantial to warrant an upper floor million plus dollar unit, especially if it is a second home.
I am referring to the bread and butter portion of condos in this building, the $400K-$700K portion of the building. This is the segment of the real estate market that has dried up, seemingly, overnight. Changes in the interest rate isn't really going to shake loose many people who are willing to sign up for such a commitment that may lose value in the next 5 years.
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I think monsoon is a little touchy on issues like the liberal media and the agenda they are pushing. Theyve been calling for a recession for a few years and if history is a good indicator then eventually they will probably be right, the economy has always had its down turns. I dont understand why you dont let people post that stuff but people can post other things pushing a different agenda. The media pushing for a recession has everything to do with the economy wich has a lot to do with Signature Tower.

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I am referring to the bread and butter portion of condos in this building, the $400K-$700K portion of the building. This is the segment of the real estate market that has dried up, seemingly, overnight. Changes in the interest rate isn't really going to shake loose many people who are willing to sign up for such a commitment that may lose value in the next 5 years.

On that I would agree. Those are the people who interest rates still affect and who are still trying to move upward in their jobs and in their lifestyles. Those who buy the upper level million plus floors are usually financially well off and who do watch the markets but who aren't concerned with the interest rate cuts other than said effect on the markets.

I wonder what the dollar value of the million plus units are? My real question is if he sold the equivelent 50% dollar value worth of condos as opposed to 50% of the number of condos would that be enough to get started? This is still assuming the high end units sell first.

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.....

I wonder what the dollar value of the million plus units are? My real question is if he sold the equivelent 50% dollar value worth of condos as opposed to 50% of the number of condos would that be enough to get started? This is still assuming the high end units sell first.

We have pretty much established that it would be at least 65% of the value of the building in sales. Read back through this topic for the rationale behind that. The original ticket for this building was stated to be $300M. I would say that if the same design specs are kept, that figure is probably pushing $350-$400M now based on the rise of building materials in the two years since this project was announced.
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