Comments on: Lipman Group to Auction Off 30 Terrazzo Condos in Nashville

By: Grant Hammond

Grant Hammond — Thu, 30 Dec 2010 15:16:00 +0000

Clubhes – If the seller’s intention was to simply move inventory at below market prices, they succeeded wildly. If the seller’s intention was to spark interest that would lead to more and more sales at higher and higher prices, the auction method failed on the price front in this situation. As I do not know to which end the seller endeavored, I am left wondering what the motivation was for the condo sales.

In 2009, Terrazzo sold 40 condos, in 2010, that total will most likely be 45 condos. This would leave 32 condos left to sell in 2011, a load that seems manageable. But, looking at prices, 2009 saw an average price of $278.99/ft and my price analysis shows that 2010 will be closer to $237.11/ft. My sense is that Terrazzo is tethered to the prices achieved at auction and will not be able to raise prices in 2011 as a result. (Here are those auction results: http://www.granthammond.com/2009/condos/terrazzo-auction-results/)

All in all, I do regret predicting that Lipman could cause the failure of downtown living as Lipman had nothing to do with retaining or even recommending Accelerated Marketing Partners. The sales team at Terrazzo has done a good job with creating a sales experience that matches the quality of the building.

By: Clubhes

Clubhes — Wed, 29 Dec 2010 18:09:00 +0000

Now that a year has past, since this auction, I would like to hear your opinions on this move.

By: TommyAnderson

TommyAnderson — Wed, 18 Nov 2009 01:15:54 +0000

I am Tommy Anderson,3rd Generation Broker/Realtor,& Auctioneer. My father is Tennessee Licensed Auctioneer #1 , Clive Anderson.We are the only firm to successfully market and sell at Absolute Auction the Park Circle Condominiums in 1994 for BancBoston.Our method of gaining the credibility from the buying public in the open competitive atmosphere the Absolute Auction gives is the only real way to have a successful real estate auction. Think about it. If you, prospective buyer, go out on a given Saturday, don't you want to know you are going to be able to buy something. Not going, going, HOLD. I wish these Condo Auctioneers the best. It hurts my industry when NO SALE occurs. And also…If you are a licensed auctioneer in the state of Tennessee, join and attend your Tennessee Auctioneers Association.

By: Anonymous

Anonymous — Tue, 17 Nov 2009 20:12:00 +0000

I am Tommy Anderson,3rd Generation Broker/Realtor,& Auctioneer. My father is Tennessee Licensed Auctioneer #1 , Clive Anderson.We are the only firm to successfully market and sell at Absolute Auction the Park Circle Condominiums in 1994 for BancBoston.Our method of gaining the credibility from the buying public in the open competitive atmosphere the Absolute Auction gives is the only real way to have a successful real estate auction. Think about it. If you, prospective buyer, go out on a given Saturday, don’t you want to know you are going to be able to buy something. Not going, going, HOLD. I wish these Condo Auctioneers the best. It hurts my industry when NO SALE occurs. And also…If you are a licensed auctioneer in the state of Tennessee, join and attend your Tennessee Auctioneers Association.

By: TommyAnderson

TommyAnderson — Tue, 17 Nov 2009 19:15:54 +0000

By: Falcon2

Falcon2 — Fri, 30 Oct 2009 19:14:35 +0000

I agree with most of your comments. If history is any guide, Accelerated Marketing will be pulling all the levers leading up to this auction anyway. Lipman will simply be the local shop and help execute the plan and conduct the tours. And I wouldn't get hung up on the auctioneers website. They too are just playing a small role. They'll simpy be conducting the actual auction at the hotel. If Accelerated does a good job setting the reserves and they whip up enough of a frenzy prior to the auction, they may just get buyers to overpay as they have on other projects. Or, as with a few of the Atlanta auctions, there just wasn't enough buzz or excitement to sell the entire offering or lift the prices much higher than the reserves. In any case, I think this event is exactly what we need in Nashville to break the logjam and get buyers buying again.

By: aynrand2009

aynrand2009 — Fri, 30 Oct 2009 16:42:40 +0000

I think you're a bit over the top when you state, “Now, I have come to fully realize the implications of this move and just how horrible it might be for Nashville as a whole” and “Larry Lipman’s company could be in danger of becoming the company known as 'the real estate company that killed downtown Nashville living' if their risky scheme backfires.” These units are being offered for sale at present market values. For the people who bought units at Terrazzo, Icon, and Velocity at the top of the market, it's undoubtedly a bitter pill to swallow. The reason these and other units are not and have not been moving is simple: they are mispriced in today's market. The auction is simply to determine the market price NOW, not when these projects were on the drawing board. Would you rather live in a largely unoccupied building, or have neighbors with whom to share common expenses? For those who bought early, you made a decision that turned out poorly-don't feel bad, we all make poor decisions, especially in hindsight. I, too, bought some property at the top of the market (a Center Hill lot). It was, I thought, a good decision at the time, but turned out not to be so. Suck it up, learn from your experience, and move on. But don't blame anyone else for trying to sell its product at the prevailing market price.

By: Mark E. Storolis

Mark E. Storolis — Thu, 29 Oct 2009 20:45:05 +0000

The X05 floorplans will prove to be the most desirable. (And I saw the guy from Carnival Kia, “don't you leave 'til you see me!” shopping around for one.)

By: GrantHammond

GrantHammond — Thu, 29 Oct 2009 17:56:19 +0000

I think we can all agree that Nashville is not Atlanta and does not have near the unsold inventory as they do. Aqua in Atlanta was also not the first nor the last multi-unit condo auction in Atlanta. If we are to compare apples to apples, we need to find the results of the very first condo building auction in the midtown area of Atlanta.

Nashville also have better market fundamentals than does the ATL: http://www.granthammond.com/2009/market-news/na...

But, you are correct on one account, the rest of the buildings will be forced into a reprice no matter what the results are.

By: John_23

John_23 — Thu, 29 Oct 2009 17:55:37 +0000

I agree on your comments about noise and exhaust. I recently toured this building. It is almost ON the highway! Had looked at Adelicia earlier. That area is great. I think the gulch will grow into its own at some point, but how many people want luxury units on side of highway??