by Matt Baggett

Today’s blog is regarding this article in the Nashville Business Journal.

If you do own a high end condo and have it rented, you might want to contemplate your position. Ray Hensler, who developed the Adelicia in Mid-Town on the old site of the Thursday night music event called Uptown Mix, is about to break ground on an apartment development that will take lots of steam out of high-end condo rentals.

If you are leaving the Gulch towards Demonbreun–this development will be on the corner of 12th and Laurel. Right now it is marked off with construction fencing.

The so far un-named project will raise the bar for luxury apartments in Nashville and we will finally have a development that will put us on par with other second tier markets like Austin and Charlotte. It will be 312 units, with many, many two bedroom units in the mix–which differentiates this project from other apartment and condo projects done previously in the city.

These larger units will rent anywhere from $1400 to $3500 a month (all of this info is included in the Nashville Business Journal’s article linked above).

Yes, you may be saying–but what does this have to do with me? If you own a larger, higher end condo that you are currently renting–this new development will compete in a big way with you. Renting in a condominium building is always a “little bit” of a hassle, right? Making sure that the HOA won’t be mad at you for messing up the rental ratios, wondering if your tenant is playing nice with neighbors that actually own in the building, if you put your place on the market…..the tenant may not be amenable to allow showings. Not only are these issues tough on an owner–they translate to a hassle for the renter too.

Additionally, I’m sure the casual observer may wonder what all of the new construction popping up all over town is and the answer is NEW HIGH END APARTMENTS! Developers must be looking at the same financial analysis’, data, and demographic info–but my count shows nearly 2000 new units either in the works or newly finished in the last year or two.

Hensler’s new development will add a lot of competition for the high end and it will have none of the hassles for a tenant that living in a building that is meant for ownership does. If you are holding onto a high end condo with a plan to sell in the future, now might not be a bad time to market and sell it. It could save you renting it out in a tighter market AND the market has been better lately for high end condo sales than it has been for years.

If you own a condo in Nashville and think this could affect you–call me today to discuss solutions for your specific situation.