Almost 100 new residents move to Nashville each day, and where there’s rapid population growth, housing demand follows. So far, much of the Tennessee capital’s development has centered around newly constructed apartment rentals, while that of for-sale condos has stalled, even though the housing type is highly desired by local residents.
That’s where Nashville-based CA South Development founder Meg Epstein has found her niche. The company currently has over $200 million in condo projects funded and under development, with more in the pipeline. The 32-year-old developer is targeting millennial and young professional buyers who want to be in the center of the action.
A millennial herself, Epstein has garnered attention for her unique position in the marketplace.
“When people think of a land developer constructing $200 million worth of condo homes, they probably don’t think of a 32-year-old woman,” she says. “My passion has always been centered around the construction of condominiums for people to improve their quality of life by actually living in the heart of a city.”
Here, Epstein, dubbed Nashville’s ‘Condo Queen,’ spoke with MFE about her plan to ramp up development and increase the condo supply in Nashville.
Why is Nashville seeing such a population boom? Why do so many people want to move there?
Twenty-nine percent of Nashville’s population is ages 20 to 39, and 36% of millennials are recent home buyers. That demonstrates the rise in urban interest seen from young people. The 8th Avenue South and SoBro [south of Broadway] areas offer a combination of new restaurants and bars, music, culture, the arts, affordable housing, and accessibility to rural areas outside of the Nashville metro area, which makes it an attractive option for millennials [coming to] a new city.
What are the factors that caused Nashville’s slowdown in condo development, and what are some of the challenges of building this product type?
Nashville’s disproportionate emphasis on building apartment homes has created a supply imbalance, causing an extremely low supply of condo units, with escalating prices for buyers. Condos are difficult to finance because banks tend to favor apartment projects, since they like the idea of recouping their investments over a period of years, but it’s detrimental to a family looking to move into an urban area like downtown Nashville. Even though the development of apartments has increased, trends show that condos will be a better long-term investment and banks must realize these trends to correct the imbalance within the city.
Why are condos so in demand in this market? How will condos serve residents’ needs?
More people are moving to Nashville from big cities who are used to condos and want to be downtown. Though people relocating here may initially lease an apartment while they get acclimated to the city, most will eventually seek a place of their own. There were never any condos built before, because nobody wanted to live downtown. But people now do. The rise of millennials moving to Nashville plays a huge factor, resulting from their interest in urban development and city life. Urbanization is also causing demand for condos to be built in the city, as moving into downtown is being viewed as the hotbed of culture.
Tell us about River Tower and your other upcoming local developments.
Our 35-unit River Tower development is our method of re-creating the forgotten waterfronts of Brooklyn, Boston, and Tampa. With balconies overhanging the Cumberland River and proximity to Germantown, young professionals can get the full range of the urban experience on their morning commute or at home. Some of the other projects I’m working on include a mixed-use, retail, and 312-unit condo development in the Downtown Core; a 140-unit condo tower in Chestnut Hill; and two mid-rise condo buildings just south of the Gulch and near 8th Avenue South. These projects have a high ceiling for development, as site plans, architectural renderings, and development teams are bringing these projects and [the] city to life, and we’re excited to build a part of the future for homeowners in the Nashville metro area.
What’s your vision for Nashville and its condo market going forward?
My vision for Nashville is that it becomes one of the largest inhabited urban centers in the United States, rivaling New York, Chicago, and San Francisco. Based on trends for condo homes, you’ll see $10 million invested in condos in Nashville over the next 10 years, so I predict a larger boom than we’re seeing now, which is a good sign for potential home buyers. Plus, my ambition and drive and the impact of my projects within the Nashville area will, hopefully, pave the way for other millennial women to get actively involved in a male-dominated real estate industry.
