Pollack Shores Real Estate Group has landed a permit to demolish The Gossett Building in the North Gulch, one of the first steps toward the Atlanta-based developer’s starting construction on a large-scale mixed-use building.
The Gossett Building (see here courtesy of Google Maps) is best known for most recently housing costume and makeup business Performance Studios.
Nashville-based Demo Plus will handle the job, according to a Metro Codes Department document. The permit is valued at $300,000.
The 3.44-acre site is bounded by Church Street on the north, 12th Avenue on the east, Grundy Street on the south and Davis Boulevard on the west.
Read more about the Pollack Shores project here and see the proposed building here.
About 4.2 percent of Nashville-area homeowners owe more on their mortgages than their houses are worth, according to real estate research firm CoreLogic. That March 31 number amounts to almost 14,900 homes but is down significantly from the 20,787 homes — or 5.9 percent of the total — that were in negative equity a year earlier. Another 1.5 percent of all homes are considered to be "near negative equity," down from 2.9 percent in early 2014.
Nationally, CoreLogic says 10.2 percent of homeowners with mortgages were underwater at the end of the first quarter. That was down from 12.9 percent the year before.
Of the more than 50 million residential properties with a mortgage, approximately 9.7 million, or 19.4 percent, have less than 20 percent equity (referred to as "under-equitied"), and 1.3 million, or 2.7 percent, have less than 5 percent equity (referred to as near-negative equity). Borrowers who are "under-equitied" may have a more difficult time refinancing their existing homes or obtaining new financing to sell and buy another home due to underwriting constraints. Borrowers with near-negative equity are considered at risk of moving into negative equity if home prices fall.
The financial state of Nashville's homeowners continues to improve ever so steadily, according to the researchers at CoreLogic. (See the chart on the right.) At the end of March, barely 2.5 percent of all mortgages in Middle Tennessee were delinquent 90 days or more. That's down 70 basis points from a year earlier and a full point below the number of early 2014.
Improvement on the foreclosure side of the housing market have been a little harder to come by of late. But the 0.47 percent rate is close to a post-crash low and bode well both for continued housing price gains and for the profitabilty of banks and other home loan lenders.
The graphic below shows a slightly bigger picture in the Freddie Mac Multi-Indicator Market Index, which includes some payment data of the kind tracked by CoreLogic but also throws in information on a city's incomes, mortgage applications and overall job growth. Improvements in the last two of that trio have pushed Nashville's score to its highest point since before the Great Recession.
Nashville's MiMi gain in March was the fourth-best among the country's 100 largest cities. For more national perspective, click here.
By most accounts, the Middle Tennessee housing market is cooking. But the aftershocks of the financial crisis have resulted in an underwriting conservatism that has shut out some potential homebuyers. Nonprofit Affordable Housing Resources is looking to step in with a loan program that helps bridge the gap for house hunters with higher debt ratio and lower credit scores.
To become eligible, borrowers must show a two-year work history and take an eight-hour education class. They also must contribute a down payment of at least 1 percent.
“The pendulum has now swung so far in that direction that it is preventing responsible people from getting a 30-year, fixed-rate mortgage,” said Eddie Latimer, AHR's CEO. “They are being kept from buying their first home, an important rung in the economic ladder.”
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