Nashville saw a flood of new downtown condos built in the mid- to late-2000s, only to have many of them remain vacant when construction was completed.
Many of the projects came on line just as the economy was headed down in 2008. As a result, many people who had put down a deposit on a unit walked away. Some condo developers merely took the deposits as damages, while others took legal action against those who signed purchase contracts.
As of early March 2009, for example, the Icon condos in the Gulch area had closed 30 percent of its 417 units, according to figures compiled by the Nashville Business Journal. The project opened in the spring of 2008. The Fifth and Main condos in East Nashville had closed 5.5 percent if its 119 units, a Nashville Business Journal survey said.
One sign of the weakness in the condo market was the decision by the Terrazzo condos in the Gulch to hold an auction of units in November 2009 at minimum prices 40 to 50 percent below list.Auction prices ended up averaging about a third below list price and not all units there were offered were sold.
Below are some examples of units that were listed and more pre-auction information:
|Unit||Bed / Bath||Sq. Ft.||Last Asking Price||Minimum Bid Price||Min. $/SF||Slash in Price|
|1408||1 Br / 1 Ba||891||$332,700||$159,000||$178||-52%|
|1002||1Br + Den / 1 Ba||885||$346,000||$170,000||$192||-51%|
|1512||2 Br / 2 Ba||1,320||$534,900||$250,000||$189||-53%|
|1411||3 Br / 3 Ba||2,090||$721,900||$399,000||$191||-45%|