The Tennessean today reported that an area of The Gulch that was previously bought by a developer in 2006 and 2008 for $3.45M sold for about half the original sales price for $1.75M
The original developer bought the 1.23 acre property on the east side of 12th Avenue South between Pine and Laurel streets as part of the property boom in 2006 when the potential for building and selling condos was in full swing. Now that there has been a downturn in the real estate market in general, the price developers are willing to pay has seen a significant reduction.
The good news is that this purchase shows another sign of the recovery of the real estate market in Nashville. Investors who are willing to speculate on buying property that would still require substantial investment represents the entrepreneurial insight that is responsible for the growth of the American economy as a whole.
Having the ability to sense a good deal is fundamental to the savvy real estate investors and the fact that an established and successful local investment group has decided to snap up a bargain in the Gulch shows that potential is still there for a profitable development.
The development group who bought the site is known as the Corner Partnership and they have been involved with other successful Nashville investments primarily in the hotel field, notably the Hilton Downtown and the Union Station hotels, but they were also involved with Adelicia condo development. This adds to the speculation that the site will become used to develop a hotel on the site with retail on the first floor.
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