Giarratana: Expect 505 tower condo conversion decision early next year

Aug 17, 2017

Giarratana: Expect 505 tower condo conversion decision early next year

GETAHN WARD | THE TENNESSEAN
7:12 pm CDT May 19, 2017

STORY HIGHLIGHTS

  • Condo brokers say converting 505’s top 15 floors to condos would be a no-brainer.
  • By one estimate, fewer than 60 resale condo units are on the downtown market.
  • The co-developer and architect for Poston at the Park just paid $2.15 million for a penthouse at that development.
  • Half of the 72 condos at CityLights in the Rutledge Hill area are under contract.

Workers on the 45th floor of 505, which is rising at the corner of Fifth and Church.
BILL HOBBS

Whether some residential units at the  505 tower that’s rising at downtown ‘s Fifth and Church will be condos instead of apartments should become known early next year.

That’s when the developers are expected to pay off the construction loan, removing any restriction on such a conversion that’s craved by Nashville area condo brokers.

“We believe that there’s demand for condos at the top of this building, but we will only be renting apartments as construction is ongoing and the construction financing is in place,” co-developer Tony Giarratana said in promising an evaluation early next year.

Giarratana was speaking after Thursday’s “topping out” ceremony at which the highest beam was installed and the final layer of concrete poured on the building’s 45th floor. 505, downtown Nashville’s tallest residential high-rise, will include 543 residences —350 on the first 29 levels with the high-rise portion of 193 units starting on level 30.

Workers carry the beam signed by guests at the “topping out” ceremony to be installed, signaling construction of 505 reaching the highest point.
BILL HOBBS

In remarks, Nashville Mayor Megan Barry credited Giarratana with helping to fuel growth of downtown, which has 10,000 residents. “He’s made this place a vibrant neighborhood and this adds more vibrancy and more places for people to live,” she said.

For condo brokers such as Chad Wohlers of Parks in the Gulch, converting the top 15 floors of 505 to condos would be a no-brainer considering downtown’s tight supply of available units.

He counts fewer than 60 condos available for resale at six buildings — Icon in the Gulch, Terrazzo, The Viridian, Encore, The Adelicia and Rhythm At Music Row. That’s only a three-month supply, according to the Nashville Downtown Partnership, whose own tracking shows 61 available resale condos with another 22 already under contract.

Nashville Mayor Megan Barry and 505 developer Tony Giarratana shake hands during the “topping out” ceremony on May 18, 2017.
BILL HOBBS

“That’s not a lot for a market the size of Nashville,” Wohlers said, adding that he has several people interested in buying condos at the 505 skyscraper. “The condo market is stronger than the rental market and Nashville needs new high-rise condo inventory.”

At 505, the first apartments will be available in October, with all units and amenities set for completion by January. Archer Western Construction, a subsidiary of Giarratana’s equity partner in 505, Chicago-based The Walsh Group, is the general contractor.

Monthly rents for the low-rise studios, convertibles, one-bedroom, and two-bedroom apartment units at 505 range from $1,500 to $3,800. The high-rise units will rent for $2,200 to $6,700 a month.

Tony Giarratana

Tony Giarratana
SUBMITTED

Outside of downtown Nashville, 92 percent of the 121 condo units at developer Bruce McNeilage’s Solo East project in East Nashville have been sold. He’s planning to start work by the end of the summer of the 110-unit Solo Lofts condo project on Dickerson Pike and working on plans for Solo North and Solo West in North and West Nashville.

Half of units at Poston at the Park, CityLights sold or under contract

At the Poston at the Park condo project near Centennial Park off West End Avenue, just over half of the 27 residences have been sold with eight people already moved in. Those sales include one of two roughly 3,400-square-feet penthouse units, which co-developer Joe A. Owen and project architect Don Meeks bought for $2.15 million.

The remaining 13 condos are each priced between $800,000 and $2.1 million, said  LaRawn Rhea, a spokeswoman for Poston at the Park. Amenities include a saltwater pool and a rooftop terrace with views of downtown and Vanderbilt’s football stadium.

Bruce McNeilage

Bruce McNeilage

A view from the top of 505 also showing the twin spires of 333 Commerce Street, which is nicknamed The Batman Building.
BILL HOBBS

Architect Meeks is among co-developers of CityLights in the Rutledge Hill area, where half of the 72 condos are under contract at prices ranging from the upper $500,000s to $2 million. The seven-story building is expected to be completed at the end of 2018.

Parks broker Wohlers sees stronger demand for high-rise condos versus those in mid-rise buildings.

Reach Getahn Ward at  gward@tennessean.com  or 615-726-5968 and on Twitter  @getahn.

505 will be downtown’s tallest residential skyscraper.
BILL HOBBS

Located at Fifth and Church, 505 will be downtown Nashville’s tallest residential high-rise tower.
BILL HOBBS

Originally Published 7:48 pm CDT May 18, 2017
Updated 7:12 pm CDT May 19, 2017

© Copyright Gannett 2017

 

By Bruce McNeilage 14 Dec, 2023
In my interview with Seana Smith & Brad Smith from Yahoo Finance today we discussed single-familiy rental rates and my thoughts on mortgage rates going into 2024.
By Bruce McNeilage 14 Dec, 2023
Owner's equivalent rental prices rose 0.5% in November , a pervasive factor in US inflation as limited housing inventory continues to squeeze homebuyers out of tightened real estate markets. Kinloch Partners CEO Bruce McNeilage joins Yahoo Finance Live to weigh in on the outlook for renters and home purchases in 2024. Home prices are "not going to go down, that's for sure. And mortgage rates might go down, but if the cost of a house goes up $10-20,000, it's a wash," McNeilage states. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. 
By Bruce McNeilage 08 Nov, 2023
Original Story can be found here: https://www.tennessean.com/story/money/real-estate/2023/11/08/renters-seek-new-options-in-nashvilles-tight-housing-market/70652968007/ Charlene and Timothy Stratton traded in their 4-acre Illinois ranch for a rental home in the Nashville suburb of Spring Hill and, so far, they love the new low-maintenance lifestyle. Like a growing contingent of Americans, they chose to rent a single-family house rather than buy a home or rent in multifamily apartment buildings. "We lived in the country all of our lives with horses and cows," said Timothy Stratton, a retired airline mechanic. "But we wanted to rent because we’re looking at our age. We did a lot of research and decided this will work out for the time being." Families like the Strattons increasingly want the mobility and limited commitment of a rental, with the privacy and space of a single-family home. Meanwhile, many families are also being pushed out of the tight housing market. Housing affordability plummeted to historic lows this year, with only 23% of U.S. listings in April considered affordable to households earning $75,000 or less, according to the National Association of Realtors. In response, real estate investors are betting heavily on new rental properties and, increasingly, on standalone units — especially in the South. More than 61,000 fully and semi-detached single-family rental units are under construction in Southern states as of September. In comparison, 28,000 units are in production in the Western U.S., the next-busiest region, according to RealPage Market Analytics. Those units include single-family homes, townhomes, rowhomes, quadruplexes and duplexes. Single-family rental communities are increasingly concentrated in subdivisions with on-site maintenance, rather than in homes nestled in for-sale housing neighborhoods. The Nashville market has the ninth-highest number of in-construction, build-to-rent homes with 2,745 units in the pipeline. Phoenix tops the list with 21,676 units underway, a RealPage analysis in August found. "Construction isn't going fast enough in Nashville. If they built four or five new build-to-rent communities, they would fill them up immediately," said Doug Ressler, the business intelligence director of Yardi Matrix, a real estate data firm. "We really expect Nashville to continue to see growth here." Rent vs. own: 'More house for your money' Charlene Stratton filled the three-bedroom house with festive seasonal crafts and artwork she creates in her home studio. Renting isn't perfect, but there are real perks — like, when the air conditioner stalled on a Saturday afternoon in the middle of summer, the landlord offered to put them in a hotel until maintenance could fix it that Monday. "When something goes wrong, we just call them," Charlene Stratton said. "It's great." The Strattons live at DerryBerry Estates, one of the first of its kind, built in 2019 by Kinloch Parners. The 34-home community sits on former pastures with views of Spring Hill's rolling green landscape and rose bushes in the front yard. Local development companies like Kinloch Partners of Nashville and Franklin-based Chartwell Residential and Barlow Builders have made stakes in the industry. "In 2008, I had no competition. Now there are six or seven players in the market," said Kinloch Partners Co-founder Bruce McNeilage, who sold much of his inventory to American Homes 4 Rent and expanded to South Carolina. "We're 99% leased out." McNeilage said he prioritizes creating a calm, supportive community with competitive prices. Rents at DerryBerry Estates ranged from $2,300 to $2,600 for homes with three to five bedrooms in September. "People are starting families later in life and COVID-19 has allowed people to work out of their houses so people are moving farther out," McNeilage added. "Housing prices are going up and interest prices just doubled. You can get more house for your money if you get farther out." Housing in Nashville area: 'Can't build them fast enough' Chartwell Residential, a local real estate firm specializing in multifamily apartments, is now building out its first single-family rental home community. https://www.tennessean.com/story/money/real-estate/2023/11/08/renters-seek-new-options-in-nashvilles-tight-housing-market/70652968007/ https://www.tennessean.com/story/money/real-estate/2023/11/08/renters-seek-new-options-in-nashvilles-tight-housing-market/70652968007/ https://www.tennessean.com/story/money/real-estate/2023/11/08/renters-seek-new-options-in-nashvilles-tight-housing-market/70652968007/ https://www.tennessean.com/story/money/real-estate/2023/11/08/renters-seek-new-options-in-nashvilles-tight-housing-market/70652968007/ https://www.tennessean.com/story/money/real-estate/2023/11/08/renters-seek-new-options-in-nashvilles-tight-housing-market/70652968007/ https://www.tennessean.com/story/money/real-estate/2023/11/08/renters-seek-new-options-in-nashvilles-tight-housing-market/70652968007/
By Bruce McNeilage 15 Jul, 2023
NASHVILLE, Tenn. (WKRN) — High prices and high-interest rates have kept many from buying a single-family home in a quiet suburban neighborhood. But what if you could rent one? Developers say they are seeing a big demand for build-to-rent communities. Upon first glance at the DerryBerry Estates subdivision, you might assume the single-family homes are for sale, but they are not—each one is a rental. “People are very happy with what we are providing,” said Bruce McNeilage, CEO/co-founder, Kinloch Partners. Bruce McNeilage built DerryBerry Estates in Spring Hill a few years ago. He saw some families struggling to afford a single-family home in the suburbs, but still craving that lifestyle. “Their kids are getting older, they want to be in good schools, you want to ride a bike around, and you just can’t do that in an apartment complex.” No sharing walls at DerryBerry Estates, or Fairview Station, the other rental home community Kinloch Partners built in western Williamson County. DerryBerry Estates subdivision has 41 single-family homes with 3 and 4 bedrooms and rents in the $2,300 to $2,500 range; and all the trappings of the suburban lifestyle. “They have front porches, they have covered back porches, two-car garage. They have all the amenities and appointments on the interior that one would want in a house for sale, but these are available for rent.” Who would be interested in an all-rental community? McNeilage said his tenants are often folks new to town testing out the neighborhood, young families who can’t afford just yet to buy, those looking for a low-maintenance lifestyle, and senior citizens, which make up 10% of his tenants. “They don’t want to live in an apartment and share walls with someone. They want to live in a single-family home in the suburbs to probably be real close to their grandchildren.” McNeilage has a couple of rental communities in Middle Tennessee, as well as out of state. And with housing prices staying high, he sees the popularity of rental communities sticking around “I could build 100 houses. I could build another 100 houses. I really have a demand that I can’t keep up with.” McNeilage said that his tenant turnover is lower than an apartment complex. People will stay in his homes 3-4 years on average, but for apartment complexes, it’s 1.5 years. 
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