Signature Tower

[Nashville_maestro]

Forgive me if this has already been discussed here but by cutting rates and printing more paper money, wouldn't that just devalue the dollar even more and thus, push the cost of this building up? The cost increase would have to be reflected in the price for one of these condos right? If so then what relief is there to do for this building because the rate cut sure doesn't sound like one.

[Plasticman]

Forgive me if this has already been discussed here but by cutting rates and printing more paper money, wouldn't that just devalue the dollar even more and thus, push the cost of this building up? The cost increase would have to be reflected in the price for one of these condos right? If so then what relief is there to do for this building because the rate cut sure doesn't sound like one.

Well from other posts above I kind of agree that the $400,000 range units will sell slowly (for now) due to those buyers likely having less income and not being sure of the markets. The interest rate cuts might spark a few sales on those but we have to wait and see.

What I believe needs to happen is a sales strategy aimed at the upper tier buyers who don't really worry about money other than what kind of shelters to sock theirs into. This will have to occur on a nationwide scale and, again, not be limited to gimmicky marketing which IMO doesn't impress successful businessmen. TG could even market the lower level units as second homes for the affluent. The trick is simply attracting enough affluent buyers to get the dirt moving and then sales will go up on their own.

[Shuzilla]

Forgive me if this has already been discussed here but by cutting rates and printing more paper money, wouldn't that just devalue the dollar even more and thus, push the cost of this building up? The cost increase would have to be reflected in the price for one of these condos right? If so then what relief is there to do for this building because the rate cut sure doesn't sound like one.

Devaluation affects international commodities like fuel and aluminum, but not domestic stuff like concrete, timber and drywall. Labor in general may go up with inflation, but construction labor wages will be depressed by the housing and soon-to-be commercial construction slowdown.

National trends aside, if an ST and a CC and some other large projects are underway simultaneously, cost will stay high due to the localized strain on labor and material. Getting parts precast and prefabricated in slower areas would reduce material and ultimately erection costs.

[Nashville_maestro]

Well I stated in my post above (before the majority of it got deleted) that I think the vast majority of the population -rich and just well off- will be really reluctant to invest in a condo until they see how all of this plays out. I suppose that there are a few people out there with so much money that they slip homeless people $1,000 bills that might want to actually want to buy the condo just because they like visiting Nashville and want a 2nd or 3rd home here. The question is: would it be worth it spending time, effort, and money trying to seek these people out that might or might not exist. I think expanding the hotel was a great idea. I really think consolidating and converting the remaining space into apartments would be a good idea if possible. My field is music composition, not real estate so I still have a lot to learn about this stuff.

[monsoon]

Devaluation affects international commodities like fuel and aluminum, but not domestic stuff like concrete, timber and drywall.....

Actually the costs of all these materials go up, especially concrete, steel, timber and drywall because domestic producers will gladly sell their wares to a global market if they can get a better deal on it. The fall of the dollar has made them more competitive but these commodities more expensive to buyers within the USA. Every transit project in the country is being greatly affected by the rise in these materials and so are proposals for skyscrapers. If a deal doesn't get off the ground in a year or so, it's going to have to be repriced which is one of the issues this builder apparently is facing with the loss of his engineering firm and the fact that he has to find another to get it re-estimated. This was also discussed earlier.

[Shuzilla]

Actually the costs of all these materials go up, especially concrete, steel, timber and drywall because domestic producers will gladly sell their wares to a global market if they can get a better deal on it. The fall of the dollar has made them more competitive but these commodities more expensive to buyers within the USA.

I have to disagree. I read about a builder talking about how his cost of home construction is less than in 2005, yet he couldn't build cheap enough to sell. Dimensional lumber is down from its peak, as is drywall. The overall impact on material from the housing bubble may well be regional, but what region has not been impacted?

Concrete and iron ore are dirt. They exist in many places. Your statement that finished product will go from this country to other countries discounts the cost of moving it there and the cost of labor to process it here vs elsewhere. I'm sure it happens, but when it does it's not cheap and not the international builder's first choice.

Steel and other metals have gone up mainly because China's rapid growth helped exhaust the world's scrap supply, making us rely more on costly fresh steel from here and abroad. And of course, the fear of a shortage caused frenzied buying which pushed metal prices even further. Some of that overpriced steel is still making its way through the system. China, who has added so much capacity lately, now has the ability to export steel themselves. And they need markets from which to recoup investments, so the steel market could glut with significant western slowdown in demand... if China's growth doesn't outpace her energy demand.

I'd like to think our own steel industry can benefit from exchange rates, but I fear China will meat and beat any dollar-initiated advantage.

[nashvylle]

shuzilla, hah i think it's funny if the CC hotel and ST teamed up to make a 1200 foot tower. Nashville would go from a 619ft to one twice it's size. I honestly just hope the 1030 Siganture Tower gets built at 5th and Church and a 750-800 ft. CC hotel gets built behind the CMHOF. That would be an impressive skyline. Again, I'd rather have a combination than nothin at all LOL.

[highriser]

He should just buy the church immediately south of the site to build a seperate hotel tower and shrink Signature back down to 700 feet to be honest, at least it'd be more density.

I wouldn't mind seeing three towers around 450-500. These days, height doesn't really matter, it's been done every where. Style is what really matters. China is building a tower that is only around 500 ft tall, but it is amazing in stature. I mean, look at batman tower, a few more towers in our skyline with great style would look great.

[nashvylle]

i do not think that is Giarratana's vision though. Let's get this 1000ft, and more variety will come IMHO.

[smeagolsfree]

Another discouraging sign that this project along with many others that have been delayed are going to have a hard time starting.

Prices of concrete, steel, and petroleum based products going up not down.

From the Tennessean:

http://www.tennessean.com/apps/pbcs.dll/ar...ESS02/802050327

[Rural King]

That is definitely a bad sign and hinderance for a near term turn-around of the residential and commercial construction markets, but that's market forces at work. Projects will move on though if the market demand is there, whether it be now or later.

[Plasticman]

Does anyone have any information on how many contracts Mr. Giarratana has on Signature so far? It would be nice to know if he's making even slow progress on securing units.

[Hankster]

Here's an interesting post I found on another website concerning marketing of Signature Tower at a Predators game. My thanks to jlh630 for posting these pics.

[ATLBrain]

Who says First Tennessee needs more space?

[samsonh]

I think he is talking about the fact that they apparently want to consolidate all their Middle TN operations somewhere downtown. If anything the bank may need less space soon, their business is struggling mightily lately.

[nashvillebillionare]

yea that Sig tower ad has been up all season at the Sommet Center. I even have a Sig Tower PREDS tshirt they gave out one night.

[Flowers]

practically speaking, this tower would not accomodate class a office tenants, particularly if combined with one or two other uses like condos and a hotel. floor plates, column spacing and elevators would all want to look very different, much more like the version he had with the chicago architect 3-4 years ago.

among the challenges is the fact that he's said to now have over $10 million into the sig construction drawings plus marketing costs. scapping those would smart but there is also an ever more crowded field of established class a office developers with what appear to be much more advanced plans for new class a projects. starting over would seem like jumping from the frying pan to the fire.

[Groovejet]

practically speaking, this tower would not accomodate class a office tenants, particularly if combined with one or two other uses like condos and a hotel. floor plates, column spacing and elevators would all want to look very different, much more like the version he had with the chicago architect 3-4 years ago.

among the challenges is the fact that he's said to now have over $10 million into the sig construction drawings plus marketing costs. scapping those would smart but there is also an ever more crowded field of established class a office developers with what appear to be much more advanced plans for new class a projects. starting over would seem like jumping from the frying pan to the fire.

This may be an elementary question as I'm not an expert in this, but are there other projects in the works for downtown Nashville? I'm just curious because I want to see downtown Nashville really build up. Any info you have would be much appreciated.

[smeagolsfree]

The only things that are on the horizon at this point in time is Griffin Plaza in the Gulch @ 10 stories, A new CC hotel, @ 30 to 40 stories, Eakin office tower on Demonbreun @ 20 stories, Laurel condos on Demonbreun @ around 20 stories, The Lionstone group office building @ 14 stories, and of course WES if it ever starts to rise. These are about the only HR and MR properties that are under construction or proposed at this moment for DT. The Siggy IMO, is now a huge ????.

[smeagolsfree]

From all indications Tony is still optimistic about the Signature. Channel 2 interviewed him yesterday about the new May Town Center and in the interview they asked about the Sig.

Here is the a snippet of the article.

"When asked about the building's future, Giarratana said,

[timmay143]

^I hate these teases. It will be amazing if he can break ground in the spring.

[atlrvr]

The FAA can only recommend against a project, they can't actually prevent it, I think. If I remember correctly, sole discretion is given to cities, and I believe Siggy is already approved on that end, correct?

Anyway, for a sound bite, its sounds MUCH better to blame the hold up on the FAA because its such a tall tower, than blame it on the lack of people interested in living in such a tall tower.

[smeagolsfree]

The FAA can only recommend against a project, they can't actually prevent it, I think. If I remember correctly, sole discretion is given to cities, and I believe Siggy is already approved on that end, correct?

Anyway, for a sound bite, its sounds MUCH better to blame the hold up on the FAA because its such a tall tower, than blame it on the lack of people interested in living in such a tall tower.

I think you hit the nail on the head. I think it was also discussed that it would make the building harder to insure.

Not to mention that an F4 tornado just missed the DT area. Went right over as a matter of fact. That would discourage me from buying in any highrise.

[bwithers1]

I think you hit the nail on the head. I think it was also discussed that it would make the building harder to insure.

Not to mention that an F4 tornado just missed the DT area. Went right over as a matter of fact. That would discourage me from buying in any highrise.

I agree that this tactic seems like a bit of smoke and mirrors in terms of blame game.

As for living in highrises during tornados, look at all of the houses that were destroyed in the most recent tornado extravaganza. None of them were 70 stories tall. The people affected are equally dead, injured, or lucky to be neither. I don't think that tornados will deter highrise dwellers here any more than hurricanes will for folks living in the highrises along the coast.

[Onyte9]

A concrete and steel highrise would be much stronger than anything woodframed.