I suspect this may be only a temporary setback. It sounds like there is an issue with a state law limiting the scope of the potential district. Hopefully this will be ironed out and allowed to move ahead as intended. Having a district to maintain the downtown will be a very positive benefit for everyone.
A good indication of the appeal of Chattanooga that a group out of California bought the Nautilus Building:
- Listed Sale Price: $2,699,000 ($157.99psf)
- Sale Price: $2,550,000
- PSF: $149.27
- Total Building Size: 17,083sf
- 4 Retail spaces totalling 6,000sf
- 8 Apartments
A marque property and a great comp for future sales in the North Shore.
Congratulations to downtown for clearing the first hurdle to creating an improvement district. In my experience these entities are invaluable for shepherding growth and assisting with all the fun management things that need to happen to create a successful downtown. Think parking and trees and flowers, etc.
Interesting to see the legacy complexes continuing to sell. We are a popular market. Details I have been able to glean:
- Address: 700 Mansion Cir, Chattanooga, TN 37405
- Sale price: $31,000,000
- Price per unit: $115,241.66
- Total built square footage: 283,881
- Sale price per square foot: $109
- Total lot size: 12ac / 522,720sf
- Sale price per square foot dirt: $59.30
- Year of construction: 1972
- Units: 269 – all 2 & 3 br
- Average unit size: ~1,000sf
- GVA Property Management: https://www.gvamgt.com/
An interesting market record was included in the article as an aside and I have copied it below. These details could warrant further analysis by those considering development or purchase in our market. I may do a complete data analysis and trending of these sales in the coming week and will update this post when completed :
Since the start of 2016, investor groups have paid more than $300 million to buy apartment complexes in Hamilton County. The biggest purchases include:
1. Legends at White Oak in Collegedale sold for $41.8 million
2. Village at Apison sold for $31.9 million
3. Elements of Chattanooga on Standifer Gap Road sold for $31 million
3. Riverview Grande in North Chattanooga sold for $31 million
5. Bridgeway at Chattanooga on McCutcheon Road sold for $29.5 million
6. The District at Hamilton Place on Gunbarrel Road sold for $28 million
7. Arbor Creek Apartments on Standifer Gap Road sold for $26.6 million
8. Standifer Place Apartments Homes on Jenkins Road sold for $25.5 million
9. Ridgemont Apartments in Red Bank sold for $21 million
10. Mountain Brook Apartments on Mountain Creek Road sold for $20 million
This is an enormous project and a great investment and addition to downtown. Adding to the recently reopened Read House, The Moxy and the New Edwin Hotel this hotel will help raise bar for quality accommodations in downtown. It will also help drive demand for experience based retail in downtown, something that is sorely missing in large parts. While not a silver bullet it is another solid step in the right direction.
Jimmy White and his partners recently put up eight buildings with over 360,000sf of office onto the market in the Midtown Office Park at the 24/75 interchange. At first glance it looks reasonably priced and leased up but whenever I see this kind of activity it raises eyebrows. I can imagine Jimmy will be funneling his equity into the Alston project for the next couple years. Check in with Andrew Holt at Healy and Company for all the details.
Another Patel Hotel added to the mix:
Much like the Alston site redevelopment this long term project is going to add some very valuable houses to the mix. Hopefully they will make good on the idea of making it walkable with retail and services integrated.
This is an excellent way to take a closer look at all the residential options in downtown:
This has the potential to be a fairly transformative project for the St Elmo area. With all the residential changes in the area this will be a welcome addition and support the appeal for this area. The addition of the ne Publix on Broad just North will also add to the appeal of this entire area. I would expect other South Broad redevelopment to follow and I will be surprised if the Food City heads for the exit soon: