As of the end of November, the Velocity in the Gulch has closed 20 condos out of a possible 265 (7.5%). Granted, the grand opening was just over a month ago, but sales have yet to set any impressive marks. Surprisingly, the average price per square foot still far exceeds $300/ft coming in at $330.58.
|6/17/2009||Nashville Urban Ventures, LLC||247||$190,400.00||543||$350.64|
|9/1/2009||J. Johnson III||428||$231,900.00||710||$326.62|
|12/2/2009||P. Bell Jr.||427||$265,000.00||840||$315.48|
|Average Price Paid||$207,805.00||628||$330.58|
What’s next for the Velocity
Sales prices are going to have to come down in the building for these condos to sell. To put this into prospective, the 22-story Icon next door has averaged just over $295/ft for their last 20 closings (includes 5 price controlled MDHA condos). If you take out the 5 MDHA condos, the last 20 sales average $315/ft. I cannot see how the Icon is going to be less valuable than the Velocity in the long term.
On the rental front, a 2/2 Flash floor plan on the first floor rented for $1,695, a 1/1 Speed floor plan on the 4th floor rented for $1,375 and a 1/1 Speed floor plan on the 3rd floor rented for $1,295. There is a 1/1 Jet floor plan that is having trouble leasing for $1,100 due to its 543 square foot size. Potential Velocity renters are just not interested in condos this small when there are other options available. The Jet floor plan condo is the only unrented condo I am aware of in the building.
While the Velocity appears to have a very low vacancy rate, there is no debating that condos rent for higher amounts in the Icon.
5:52pm Note: I have been told that I am missing 1 sale. I will verify that sale when I pull deeds again at the beginning of next month.
See all condos for sale in the Velocity in the Gulch