Stephanie Crawford

You may have heard folks saying that developers have over-saturated the condo market downtown. It's a pretty common opinion and something people ask me about all the time. The hard data though, shows exactly the opposite. Each year the Nashville Downtown Partnership publishes a report on the status of our urban core residential revitalization and the statistics are downright fascinating. What most people don't realize is how far behind we are on the bell curve as compared to other cities our size. In 2001 downtown had 1,380 residential units. That number will almost triple by the end of 2010 with an expected total of 3,787. But are you aware that Indianapolis, a city the boasts a few more people than Nashville, but much less acreage, already has 12,255 urban residents?
The outlook for downtown residential ownership is still quite strong and economic experts expect the trend towards downtown hubs to continue. Contributing factors include the continual escalation of gas and fossil fuels, a conscious effort to reduce carbon footprints, a widening number of empty nest baby-boomers looking to downsize or invest in second homes, and an expanding number of young, upwardly mobile singles delaying marriage and children.

I encourage you to download the full 18 page report here.

Here are two exciting bits of news for those thinking of purchasing a new home.

FHA has raised their loan limitations in most areas of Middle Tennessee. Buyers can now finance loan amounts up to $432,500 and take advantage of the low 3% down-payment requirement on most FHA loans! FHA offers several different loan programs that all have competitive interest rates. Let me know if you are interested in pre-quailifying today!

MDHA has also raised income limitations for their Affordability Units around town. Buyers who earn less that $35,400 per year can now quality to purchase these small studios and flats - most range in size from 450 to 650 sq.ft . Resale limitations still apply and guidelines can vary from development to development. MDHA units may be available from the mid-100s in the following developments (call for opportunities):

Rolling Mill Hill

ICON in the Gulch

Velocity in the Gulch

Ambrose Lofts

Encore Tower

Werthan Mills

5th & Main

Other developments such as the Exchange, Kress, 37206 and West Eastland also once offered MDHA units, but are now sold-out. MDHA requires purchasers to meet strict guidelines. Please let me know if you are interested in pursuing pre-qualification.

I wanted to pass along a few of my favorite things in Nashville to do, see, shop, and eat.

Today I tackle "To Do":

Trivia Time!This game, hosted by area bars, is a hoot! A fairly serious competition has formed between rivial teams who compete for the area pennant. My favorite spots include The Corner Baron Elliston (Torre, the bartender, is the best), Wilhagansoff Murfreesboro Rd is the ultimate dive bar with billiards, pool, and volleyball, 3 Crow Bar in Five Points offers a packed game, so does Sam's in the Village. We are excited by the new game downtown at McFaddens - it's non-smoking!

The Nashville Zoo is always affordable great family fun and my #1 destination when baby-sitting! They will be hosting Nashville's largest Easter Egg hunt on March 22nd.

8th Ave. corridor antiques shopping! There is certainly an array to choose from! I recommend starting down around Cannery Row and working your way towards Douglas Corner. If you've still got energy after that try the Gas Lamp consignment mall in the 100 Oaks area.

Speaking of 100 Oaks, the mall itself may be a bit of a let down, but the Berry Hill area across the street offers some of the best and most quaint shopping in town. View their merchants here- it's a great feeling buying from and supporting local businesses. Berry Hill offers all sorts or personal service business options from retail, to home design, child care, dentists, hair salons, recording studios, and even dining options. If you haven't toured the area in a while, I recommend taking a ride through.

"Is the Nashville downtown condo market - like the proverbial glass - half-empty or half-full? As they say, it's all about perspective. And the same facts can be used to illustrate two very different points of view.

I was reminded of this after reading The Tennessean's Jan. 20 article on the supposed cooling of condo sales. The Tennessean used current data to paint a picture of a half-empty, anxiety-ridden market.

Yet anyone who has closely followed the emergence of urban living in Nashville's Central Business District, especially over the past three years, realizes that the facts tell a much different story.

Before 2004, there were only 10 condo units in the Central Business District. For a metropolitan area with a population of more than 1 million, our city was far behind the rest of the nation in providing urban living. Demand was not the culprit; residential development was prohibited in the central core 1963-93. But then-Mayor Phil Bredesen, with the support of then-Metro Development and Housing Agency Director Gerald Nicely, changed zoning laws in 1993 to permit residential. Bredesen's successor, Mayor Bill Purcell, and current MDHA chief Phil Ryan then dared to envision downtown as a vibrant urban neighborhood, improving infrastructure and providing incentives to make that vision a reality.

Pent-up demand

Fast forward to today. The Tennessean chooses to see 300 urban units still unsold of the 1,000 new condos scattered among six new developments throughout downtown. We see that 70 percent of those same 1,000 units opening this year have been pre-sold. We also see that the high-rise Viridian is an overwhelming success. In fact, the 49 Viridian buyers who have elected to resell their units pocketed more than $2.8 million in gains.

We see a downtown neighborhood with plenty of room to expand even with 1,000 units entering the market. Consider that Memphis has more than 10,000 condo units downtown, Charlotte more than 7,000, and Indianapolis more than 15,000.

The initial "condo frenzy" The Tennessean referred to was far from a "grand experiment" - it was a thoughtful response to a superb vision and long-pent-up demand. The Tennessean declares the frenzy has cooled, but downtown developers understand that the market is still in its infancy and will have growing pains. The demand for urban living remains strong, our supply is still far behind the rest of the country, and the more deliberate sales pace we see now - even in an economic downturn - is a natural process of the market absorbing the new product.

Developers also know that more urban condos are surely coming. Demographers project Middle Tennessee's population will reach 2 million by 2020, and many new residents will be moving from areas where urban living is the standard. From our perspective, these facts ensure that we are nowhere near the end of an urban living journey that began only a few years ago.

Indeed, the Nashville condo market is more than half-full. The cranes you see operating all over downtown Nashville signal a revitalization led by urban residential development and followed by the glorious new Schermerhorn Symphony Center and two new class A office buildings. Plans are now on the drawing board for a nearly $1 billion new hotel and convention center with crucial support from new Mayor Karl Dean.

No matter your perspective, this is all great news for the continued economic vitality of downtown Nashville. As new businesses and new residents continue to relocate to our thriving, growing city, the glass that is urban living will not only continue to fill, but grow larger."