1212

What a difference a boom makes. In 2008, when the Icon condos in the Gulch were beginning to close, the developer was under scrutiny. Some doubted the veracity of his reported sales figures.

One group even went as far as to photograph the tower under the cover of darkness in order to prove no one lived there. If the lights are out, they argued, units had not been sold.

Now with the original Icon investors boasting returns as high as 60 percent, the development known as 1212 is now open in The Gulch.

With prices well in excess of $500 per square foot, developer Ray Hensler has redefined how Nashvillians approach real estate purchases. For years, price per square foot was the absolute number that buyers used as a means of determining price. Quote those figures nevermore.

Hensler was the developer of the Adelicia, where he enjoyed a startling success given the recessionary times and his buyers have fared well in resales.

Given the appreciation of the Adelicia and the large numbers of newly constructed apartments, it was surprising to many that Hensler had decided to build a 300-unit, high-rise apartment building at 1212 Laurel Street.

Demand became apparent once his plans were announced, showing a number of upper-end penthouse units.

Sydney McCann, a Realtor who had assisted Hensler in the sale of the Adelicia condos, says her cell phone was on fire with buyers clamoring for the units only to learn they were not for sale.

Zach Goodyear, the principal broker for Parks in the Gulch, along with his sidekick Brian Stoltzfus, approached Hensler and suggested he convert 1212 to condos.

After some due diligence, Hensler decided to cash out. He then placed the sales of the units in the able hands of Parks in The Gulch, which promptly began to presale units that did not yet exist.

With the Adelicia on Hensler’s resume, and with upgrades to amenities, sales began to mount. After all, what dog owner could resist an indoor dog-walking area complete with a bathing station?

The complex also has the largest exercise facility in town, and guest suites available for the home owners.

Michelle Maldonado, another Adelicia veteran, has often lamented that she lacked $1 million penthouse condo inventory and felt she could sell as many as could be built. Some questioned her assessment of the market.

With that in mind, Chandler Reports shows 76 properties located in The Gulch closed in January for a total of $49,047,595, with 68 of those being 1212 condos totaling $44.45 million.

In addition, 21 of the top 40 real estate transactions for Davidson County in January were 1212 properties.

Here are a few of the sales reported by Hunter Moore, 1212’s administrator:

Unit 2301 – $2,744,735.01

Unit 2306 – $1,622,385.45

Unit 2392 – $1,616,825.00

Unit 2304 – $1,594,102.77

Unit 2305 – $1,519,797.63

Unit 2302 – $1,487,715.00

Unit 2307 – $1,349,130.00

Unit 2201 – $1,074,531.00

Unit 2101 – $1,044,164.00

Unit 2001 – $1,042,550.00

Who are these buyers?

They “range from empty-nesters from local communities such as LaurelBrooke (Franklin) to music executives from New York City to young doctors and lawyers in Florida and California,” says Angie Lawless, a principal of Wagon Wheel Title, the company closing all of the 1212 sales.

“We are also seeing a fair number of young, local professionals and buyers who are moving from Adelicia, Icon and Terrazzo,” she adds, referring to other high-end downtown condos that blazed the trail for 1212.

So what does this mean for Davidson County property tax coffers?

Hensler says the property was appraised at $3.7 million prior to development. Once completed, he adds, the project will be worth $150 million, 40 times its previous value.

With residential properties taxed at a lower tax rate than commercial, and with the 1212 including a commercial component, it is difficult to determine the exact number. But property that generated $70,000 in Metro property taxes prior to development might generate as much as $1,750,000 annually.

Some of the features incorporated into the development are covered parking spaces at no additional charge, although storage bins begin at $6,250. As for the $500-plus per square foot, Goodyear says these homes have the fitness facility, so there is no need to waste 125 square feet in a room used for an hour or two each day at best.

And with parking, no need for a garage.

With guest accommodations on site, the guest bedrooms incorporated in most homes is now unnecessary. There is a swimming pool, tons of outdoor space and entertaining rooms to accommodate more partiers than a McMansion.

No need to don the spywear and sneak into The Gulch for edge-of-darkness photos. And those 37 acres will have a billion dollar impact on the economy over the next few years.

Richard Courtney is a real estate broker affiliated with Christianson, Patterson, Courtney, and Associates and can be reached at [email protected]