The Home Stretch

We are almost finished! Our general contractor is trying to wrap up the 6th floor and turn in over to our buyers and we should finish that process in the next two weeks. Can I be candid here and vent a little? The process of getting codes approvals in Nashville has become onerous. Our wonderful design team works EXTREMELY hard to design and spec a building that meets or exceeds the International Building Code...those plans are scoured over by the Codes Department before permits are issued. Inspections occur every step of the way. And then, when you request your final inspection, the Inspector of the Day decides he/she wants something added. Our GC is over a barrel, there is no choice but to comply or we don't receive the Use and Occupancy Permits. The costs of making changes like this are typically not in the budget, so the Developer/Owner has to inject more money into the project at a time when prices have already been set...there is a fairness issue here that goes unnoticed. The end effect of all this is that over time, developers will start to build in larger and larger contingency budgets and be able to deliver less and less to the end user reducing the quality of the project in anticipation of a rogue inspector. OK...I feel better now!

Back at 1101, the landscaping has been installed in the front and back and our lobby area should be getting the tile in sometime in the first two weeks of December. There will be some "nits and nats" to finish up over the next few weeks, but by and large we are done. Here's a sneak peak of the view from the 6th floor at night:

OK, I cheated a little bit - that's actually from the "party deck" in Unit 611. But folks, if you are on the north side of the building. From the third floor up, you will have unobstructed views of our ever-improving skyline. Further, M2H Group, our developer, has pledged to NOT build a tower on the neighboring land. We have heard some sad stories from buyers at nearby communities that thought they would have skyline views in perpetuity only to learn that hotel developers can pay a lot of money for land and need to max out their sites by going vertical. What once was a pristine skyline view will soon be a wall. Sad...but if you choose to live at 1101, that will not happen! Our first level of townhomes facing north will be partially obstructed by the construction of Treble Flats next door, but in exchange, a beautifully landscaped bio-retention area will be built that will give it a European courtyard feel.

Urban living is going to create conditions like this, but developers need to be responsible to their residents and do what they can to provide for long term value...but as my 9th Grade Latin teacher admonished: "caveat emptor!" This is a doctrine that should be a "no brainer" for buyers, but in the heady rush of new construction and excitement/marketing hype, some folks may have checked their judgements at the door. Not so with the good folks at 1101 where quality, value and long-term appreciation are the hallmarks of good development and construction.

Walkable

There is no small degree of consternation in the market right now concerning the health of real estate both nationally and locally. Chas Sisk's column in the Tennessean yesterday morning sparked a row of accusation and response on the site's article response page. But this shouldn't be the point of discussion or concern. The fundamentals of our economy both locally and nationally are still pretty solid, especially here in Nashville where we are experiencing solid job growth and a terrific lifestyle.

Is there some overbuilding right now? Probably so, but nothing that won't get absorbed in a few years. The capital markets have already responded by making the availability of dollars for "iffy" developments much harder to get. Similarly, the buyers have become better educated and much more sensitive to the underlying strengths or weaknesses of the development they are considering. Allelujah! Here are some simple "Do's and Dont's:"

• You should not purchase a unit in a development where you are one of hundreds of the same floor plan. Good luck re-selling against every one else!
• You should not purchase a unit because of slick marketing, great websites or good salesmanship.
• Do not purchase a unit because of sleek amenities that you will never use but will be paying through the nose for in HOA fees! Remember, a membership at the YMCA is a whole lot cheaper and the facilities are better!
• You should stick to the fundamentals:
• Is this unit priced fairly versus everything else on the market?
• Is this a location that I am going to be comfortable in over the long term?
• How is the neighborhood evolving?
• What are the barriers to entry so that my unit doesn't get overwhelmed by a dozen other projects?
• Is this a walkable neighborhood - are the amenities I seek...restaurants, services, employment nearby? The developers of 1101 Eighteenth preach the gospel that in urban living "the city is the amenity." See the picture below? That's the bridge over 21st Avenue that leads to the heart of Vanderbilt and the Medical Center...1 block away from 1101!
• Can I afford this unit without stretching myself?
• What are the HOA fees - am I trading my current rental situation for the same rent (HOA fees) AND a mortgage?

From looking at the wonderful buyers at 1101 Eighteenth, it is obvious they have taken these things to heart and chosen wisely. With only 56 units in total and Hillsboro Village nearby - Vanderbilt and Peabody practically across the street...great architecture and construction, 1101 will hold its value better than most.

There was a condominium development proposed near I-440 that was withdrawn just prior to the start of construction. They advertised themselves as being "near Hillsboro Village," but if you ever tried to hike that distance on a pleasant afternoon in late July in Nashville, you would learn that being "near" something doesn't get it! 1101 gets it and is. Take a look at this aerial photo to get your bearings! (That's Vanderbilt Medical on the left, Scaritt on the right and USN directly behind that good looking white-roofed 1101.)

The Move-ins Have Begun!

Our little community is starting to take shape as real people close on their new homes and move in. The first three floors are complete except for some minor cosmetic work. The landscaping will be installed in the front and back within the next couple of weeks. Solomon Builders has told us that they expect to be completed by Thanksgiving. Take a look at what some creative interior design can do...these are from our model unit on the second floor:

I am particularly excited about the large number of windows that flood light into these units. Our architect, Gilbert McLaughlin, has done a superlative job of creating outdoor spaces for our residents to give a wonderful open feel that is uncommon for an urban setting.
The feedback we have been receiving from our brokers at Latitude Realty is that buyers are very impressed with the quality of the construction and the thoughtfulness of the floor plans. One of the things we have always prided ourselves on is that our floor plans make sense! Floor plan design drives the design of our buildings not the other way around. The end result is a highly efficient and functional unit. Come on down and check it out!

Just about ready...

We have crossed the first major threshold and have our temporary use and occupancy permit! Last week our architect and brokerage team along with the builder walked all the townhome units on the first two floors to "punch" them and make sure they were ready to be introduced to their buyers. The developer will walk them today to make sure nothing is overlooked. We should be able to allow move-ins by next week!
The third floor (flats) will be walked next week by the inspection team to prepare them for closing in two weeks. The fourth floor will follow shortly after that and then the fifth. Construction is planning on being completed with the site by the second week of November. There will be some lingering issues that have to be dealt with as our neighbor, Treble Flats, gets built.
Treble Flats, the sixteen unit development will be built on the lot that is between 1101 and Scaritt Center. It is anticipated that it will break ground in late October and be finished no later than twelve months from that date. "T Flats" has agreed to expand and better landscape the bio-swale that runs between the two properties. However, that landscape installation may not occur before next spring. The balance of 1101's landscaping will be installed when the weather stays cool for a little bit! The Urban Forester has asked us not to install until that time for fear everything would just die.
There has been a lot of turmoil in the financial markets of late...check out the developer's perspective in this post. The bottom line is that real estate that is reasonably sized and in an excellent location will do just fine.
As we approach the finish line, we need to thank all the hard working individuals at Solomon Builders and all their sub-contractors. They have worked very hard under difficult circumstances to deliver a high-quality product.

Getting there from here...

If you have driven by 1101 Eighteenth anytime during the last eight weeks, you would have seen the non-stop buzz of activity. Our general contractor, Solomon Builders, is doing everything they can to complete this project on time. This, despite the slow downs caused by some codes issues that had to be resolved before we could proceed. Kudos to those guys sweating through this heat wave to deliver what will obviously be a gorgeous building!


Within the next week, our development team will walk what we are calling the "model unit," to ensure that the interior quality is up to snuff. Once our contractor has that approved, that standard will be applied throughout the building. The next milestone for us will be receiving a temporary use and occupancy (U & O) permit on floors 2&3 (the town home units). In order to get that, we have to pass ALL the life and safety inspections for the whole building. We are hoping to achieve that goal by mid-August. If that occurs, we hope to be able to start closing on those units by the first week of September.

The plan then is to get the 4th floor's U & O about the same time as we start closing on the first two floors. That would mean that 4th floor will be ready to move in around mid-September. The fifth floor would follow at the end of September with the sixth floor coming in mid to late October. The bad news in all of this is that we are closing the first units later than originally anticipated, the good news is that the contractor will be out of the building sooner.

Once residents have begun moving in, the back elevator will be only used for construction. We will also use the lower level of the parking garage for construction for a little bit.

Some of you have asked about the adjoining property, 1033 Eighteenth avenue. We are in full design for that property now and it will consist of sixteen flats. Here's a preliminary elevation so you know what we are looking at:


We are working hard to ensure that the views from 1101 are not obstructed...financially, it would have been nice to develop the site more intensely, but it would not have been right to block those incredible views from 1101!

The development is being called "Treble Flats," and we plan to start construction before the end of the year. As it is a much smaller project, we are planning on being done before the end of next year. This is also a little different than 1101 or 807 Eighteenth, in that there will be no pre-sales with "developer discounts" and the like. We are confident enough in the neighborhood that this deal will succeed without having to cater to investors.

We continue to believe that Midtown is the true "neighborhood" option for urban living and are thrilled that so many of you have elected to live at 1101!

Cute!

I guess I am in to one line headlines today - just got this from our marketing folks and I love it:

Striking!

Watching a beautiful building emerge is like watching a butterfly morph. I rode my bicycle around Midtown over the weekend and stopped at the corner of Edgehill and 18th to look back this lovely structure. There was a couple walking their dog coming towards me and as they neared they turned to see what I was staring at. "Striking!" the woman said. I couldn't agree more.

Solomon Builders is working hard to get our first floor of units ready by late July. Unfortunately that may slip a week or two. As so often happens in this business, the field inspectors of a municipality don't agree with the plans approvers. This is exactly what just happened with some of our townhome designs and we had to go through an appeals process to get relief. The issue is the type of construction used on the stairs internal to the units. The inspectors felt a steel system was necessary (our exit stairs are steel) but codes had already approved a wood structure with proper sprinkling. On appeal, the wood system we had designed and built was approved as more than surpassing code safety requirements. But, we had to hold up dry walling for a few days while the decision was rendered. As the picture becomes clearer, we promise to keep you informed!