Houston-based architectural designer Meeks + Partners is planning to build a luxurious 220-unit apartment community across Nashville Farmer’s Market on 2.5 acres of land it currently has under contract. Donald Meeks, an architect for the company, is aiming to complete the deal by April, and commence construction by the summer.
The upcoming development includes a pair of buildings, which have remained unoccupied since the May 2010 flood. While the group is looking to finish the entire property within a year and a half after construction begins, Meeks says that certain approvals need to be satisfied prior to closing the deal.
“Nashville is hot right now,” said Meeks, whose firm has developed multifamily projects across the nation and in various countries around the world. “Land prices — everything’s going up through the roof.”
Nashville real estate brokers say the proposed development is amongst the many apartment projects planned or underway within Nashville. According to industry data, there are approximately 4,600 units announced and under construction; while an additional 4,500 units are unannounced but also under construction.
The increased activity level is a clear indicator of a healthy local market with an economy recovering faster than other parts of the country, says Steve Massey, a multifamily property broker at CBRE.
“People are moving here for jobs and they’ve got to rent apartments to live here,” added Massey. “The outlook looks good. The ones in the pipeline right now should do very well.”
Local observers and experts believe that the increased interest in the apartment sector is fueled by various factors, amongst the most significant ones include improved availability of financing, low vacancy rates, rising rental fees, and an increasing number of renters.
While the notable spike in construction has prompted some to state that overbuilding may become an issue sometime soon, the majority of observers believe that the trend hasn’t gone overboard just quite yet.
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