The Nashville Business Journal is reporting that today, multi-family developer and operator Pollack Partners from Atlanta, will buy the remaining 220 unsold condos in the Velocity in the Gulch for $24.5 million. While it has not been announced publically, Pollack Partners will be converting the condos into apartments, potentially leaving the current 43 Velocity condo owners out in the cold.
The Velocity will become the second major Nashville condo project to be converted to apartments, Rolling Mill Hill was bought and converted by Chartwell Hospitality earlier this year. The Velocity will also become the fourth major Nashville condo project to be purchased at a distressed price. In late 2010, California based Alvarez & Marsal Capital purchased the 65 unit Belle Meade Court project and just last month ACG Equities from Chicago bought the 5th & Main project, both have remained condo.
According to Pollack Partners’ website, the company has bought more than 35,000 residential units valued at more than $3.2 billion over the past three decades. What does not remain clear is how the transition from a condo project to an apartment project will be executed.
How Velocity’s Sale Will Affect the Nashville Condo Market
In its purest and simplest form, taking 220 condos out of unsold developer inventory represents a huge reduction in overall condo inventory. In fact, this reduction cuts that inventory segment in half. Between the Icon in the Gulch, Terrazzo, Rhythm at Music row and Encore there are now 226 unsold developer condos, down from of 446. Adding together current condo resales and unsold developer inventory, Nashville now has under 450 urban condos on the market for properties built after 2005 (includes 17 urban condo projects).
Again, this underscores the importance of working with a buyer’s agent who knows and understands the dynamics of downtown Nashville real estate. I am one of the very few agents who can keep you from making a very costly mistake. Call or email me to start learning more about how to make the best buying decisions: 615-945-7123 or Grant@GrantHammond.com