Work on proposed luxury apartment skyscraper SoBro continues to move forward as Chicago-based builder McHugh Construction is looking for office space near the site on which the tower will rise.
Multiple sources say McHugh, which has a long history of serving as general contractor on projects with SoBro co-developer Magellan Development Group, wants to find space in an existing building and from which it can interview subcontractors and manage contruction. Magellan, which is also based in Chicago, is partnering with Nashville-based Giarratana Development to develop the 33-story tower.
McHugh has served as the GC for various high-rise residential towers, most of them located in Chicago. (Read more here.)
SoBro would include 342 luxury rental apartment units, 378 parking spaces and more than 18,000 square feet of Class A, ground-level retail space. The tower is planned to rise adjacent to both the Encore condominium tower to the west and The Pinnacle at Symphony Place office skyscraper to the north. The building would be bordered by Demonbreun Street on the north, Second Avenue on the east and Third Avenue on the west.
The development team has enlisted Chicago-based Loewenberg Architects to handle design work.
Relatedly, a Giarratana Development official was seen today on the SoBro site with multiple Nashville Electric Service employees.
A number of real estate research firms have forecast in recent months that Nashville homeowners will see their home values rise very little in 2014 after a couple of very profitable years. But January's numbers don't show those predictions coming true just yet: CoreLogic says area home prices were up 11.1 percent year over year in January — up from 7.9 percent in December — even when distressed properties were included. Take out those homes and the price gains ticked up to 11.3 percent.
SEE ALSO: CoreLogic's national data
Negative equity in Nashville fell in the fourth quarter to 15.2 percent from 16.7 percent at the end of September, according to research firm Zillow. That's pretty good on a number of levels: It puts the city's MSA more than four points ahead of the U.S. average and it's more than a point below where Zillow's researchers thought we'd be by this fall. (The company now sees the negative equity rate falling to 14.4 percent by the end of 2014.)
Those headline numbers look good, but many homeowners in our 10-county area are still dealing with some real pain. Of those still underwater, almost 29 percent owe at least 40 percent more than their homes are worth.
Childress Klein Properties is targeting a late-March groundbreaking for its 18-story mixed-use building to front the Music Row Roundabout. The development company, which is co-based in Atlanta and Charlotte, recently paid $6.25 million for the 1.56-acre site, which is bordered by Demonbreun and Division streets.
The building, for which a name has not been announced, will include 431 apartment units that are expected to be ready for residents starting in early 2016. The building also will offer about 8,000 square feet of street-level retail space for two businesses, according to Kelly Dunbar, a partner in Childress Klein’s 2011-founded multifamily division.
Dunbar said the company wants a restaurant for the retail space that fronts the roundabout.
“We are gauging the demand for a restaurant and it should be very strong,” Dunbar said, adding Childress Klein has not begun the process of having formal talks with restaurants owners/operators.
As to the other retail space, Dunbar said the company envisions a coffee shop or a lunch spot.
“We would like something compatible with [the large restaurant] and an amenity for the residents,” said Dunbar, who co-manages the Childress Klein multifamily division with Fred Klein III.
The project will have a local flavor, as Childress Klein has enlisted Nashville-based Littlejohn Engineering Associates and J.E. Dunn Construction of Brentwood. The former is handling engineering efforts, while the latter will serve as general contractor. Relatedly, J.E. Dunn is the GC for the Childress Klein-developed 22-story Element Uptown in Charlotte. That building was topped in January, with residents slated to move in by summer.
Atlanta-based architect Rule Joy Trammell + Rubio, which designed Element Uptown, has designed the roundabout tower.
Dunbar declined to discuss the financing structure for the roundabout project.
The 90-day delinquency rate among Nashville-area homeowners finished 2013 at 3.59 percent versus 4.54 percent in 2012 and 5.59 percent at the end of 2011, says research firm CoreLogic. The 2013 decline for Middle Tennessee was steeper than that of Tennessee as a whole but slower than the country's improvement — although the U.S. rate ended the year just above 5 percent.
The region's foreclosure rate also dropped further last year, though more slowly than in 2012. It ended 2013 at 0.77 percent versus 1.14 percent and 1.76 percent at the end of 2012 and 2011, respectively.
Lastly, here's CoreLogic's latest map depicting the health of the region's ZIP codes.