Signature Tower Prices Too High

[barakat]

The signature condos do look marvelous, but those prices are too high for Nashville. I am afraid that nashville is going too much too fast with the condo additions in general. Why would you buy a one bdr one bath in signature for 351,000 when you can buy a nice 1500 sq ft home in one of the suburbs(franklin,hendersonville,mt. juliet, murfreesboro,etc.)? I am afraid speculators are going to get their butts handed to them bc the growth and fundamentals are not there to support this rush of condo units. No way for those prices. And by the way, all the businesses are in brentwood and franklin, not in downtown nashville.

I'm not sure where you're coming from. Have you seen what McMansions sell for these days? While the wealthy seem to be removed and concentrated in the suburbs of Belle Meade and Green Hills and maybe Brentwood, I don't see why that should mean there is no desire for urban living in that sector in central Nashville. There hasn't been product available that specifically catered to that demographic until now, save for the upper-floor Viridian units and some of the authentic loft penthouses [Exchange, Kress, Ambrose Lofts, etc. which by the way are so much more attractive than a McMansion IMO.]

Your generalization of "all the businesses are in brentwood and franklin" is hilarious. I don't know if you are referring to retail or office, but I live and work in downtown Nashville, and I never drive to those places to shop; almost everything I need is nearby. Obviously, downtown is full of robust employment options. At this point in my life, the last thing I want is a "nice 1500 sqft home in the suburbs." To me, that means days of yard work and having to drive everywhere and ultimately, wasted time. I can appreciate some suburbs for what they do offer -- lower crime rate, better schools for the kids, etc. But believe me, whenever I go home to Murfreesboro and witness the insane, poorly regulated growth there, it makes me appreciate what we have in Nashville's urban core. I'm not saying we have everything we want downtown, because we don't. I'm really hoping a wave of new-to-Nashville retail hits downtown sooner than later. We need good schools and eventually local mass-transit. Still, convenience is largely what has appealled to me for the three years I've lived downtown and based on the high demand and sales of downtown homes, it's appeal to others is growing at a rapid pace. I'll concur; speculators will contribute to these condo sales, but one shouldn't forget other realities such as gas prices, increasing commute time, and desire for nearby cultural ammenities which will surely influence the decisions of people choosing to ditch the suburbs for downtown life. And I can attest -- it IS convenient.

I can't imagine not being able to walk to work [or a concert, sports event, etc.], get fresh produce and meals across the street, or hop on the ever-expanding greenway for a run or bike. And I'm certainly not a speculator, although based on recent nearby home sales, I'm undoubtedly going to make a killing when/if I do sell or rent out my place. The market is fickle and can change at any time, but these days, downtown Nashville is a great place to buy a home.

[tnwalker]

I don't think you people understand how much supply there is going to be in 2009. And when the economy turns and interest rates are going higher, nashville is not immune to that effect. My point is that there is too much supply of condos overall in nashville. I think they are trying to grow too much, too fast in downtown and it will be a nightmare for everyone. If you want me to say that the ST units are not overpriced is ridiculous bc you are paying 400K for 800 sq ft of space. However, is there demand for these units? I don't think there is REAL demand bc of these prices. Living on the 50th floor would be nice, but I don't think its worth it. I am a young single and I don't make enough money to live there. I don't know anyone that could pay a mortgage payment of that amount at such a young age. You have to remember who will be living downtown. Young Singles. Can young single group be able to pay for one of those? I dont think so. If you say that is not the market here, then WHO IS?

My overall point is that there is too many condo units coming up in nashville and someone will get bit eventually. Maybe not ST, maybe not Viridian, but what about Adelicia, SoBro area, the Sounds new ones? There is not enough demand for the amount of supply coming. Granted, I am in urban planet so I don't expect anyone to take my side on this. Urban life is the only life according to you people like Lexy.

How do you know what the demand is for condos? Are you a real estate analyst? It seems to me that if the demand wasn't there these projects wouldn't even be announced. No one is going to build a multi million dollar high rise in Nashville based on speculation. You also have to remember that downtown Nashville is so underdeveloped residential wise that there are probably people that have wanted to live downtown for years but really haven't had an opportunity to do it. I really don't think people are going to plunk down what is more than likely a considerable amount of money to reserve a unit if they don't plan on living there or make a profit on it in some way.

[tistic]

The signature condos do look marvelous, but those prices are too high for Nashville. (...) I am afraid speculators are going to get their butts handed to them bc the growth and fundamentals are not there to support this rush of condo units. No way for those prices. And by the way, all the businesses are in brentwood and franklin, not in downtown nashville.

A bit of trivia about money and Nashville:

If you break down the 1995-96 nationwide political fund raising cycle by how much money was raised in each ZIP code for the GOP Primary for President of the United States, 5 of the top 10 were in the Nashville area.

That was a pretty huge statement about the strength of Nashville's economy at the time. And while it can't be but one interesting indicator of the strength of our economy when you analize things over the long term (I don't know how we compare in the `99-`00 and the `03-`04 cycles) I'd bet that 90% of those same "wealthy" people probably still live here.

More important than that is what Greenspan said this week about the housing boom being over (as in soft-landing-good, not burst-bubble-bad) and I'd say our economy here is plenty strong to support a luxury high-rise.

A 25% commitment in seven days is an even better indicator...

But take all that with a grain of salt. I'm just a guy wearing a balaclava.

[Onyte9]

I look at things in life from a much more simple point of view. If you think they are too expensive, then dont purchase one. Its as easy as that. Trust me if you opt no to buy a unit there are 10 more people already thinking about buying the unit you decided not to purchase. And obviously they dont think the price is too high or they wouldnt be buying it.

On another note. Have any of you guys ever looked into buying an upscale condo in a big city? The Signature is very affordable compared to most.

Right now I would have a hard time just purchasing a parking lot in the Signautre. But do I think the upscale units are over priced compared to other cities? Definitely not.

[LA_TN]

- There is more office space in DT than CS. a) New Suntrust is around 350,000 sq ft while the many CS 'spec' bldgs are about 160,000 sq ft each b) DT has bldgs over 6 stories (some are even 20-30 stories!!!!)

- There are multiple subdivisions in Brentwood that start at 2 mil and there's concern Sig T can't sell 100-200 units at 1.5 mil?????

- Best Value is on Antioch Pike - using logic in some posts here; one should be able to build a 10,000 sq ft home for $5,218.00