The Tennessean
Williamson Real Estate
Friday, July 24, 2009
Pace and place guide Annandale forward
High-end development near county line outsells others in its price range
The recession has stopped some new neighborhoods in their tracks, but Annandale, a subdivision of luxury homes in Brentwood, continues to grow.
A project of CPS Land LLC, Annandale was planned long before the recession took hold, but the subdivision off Old Smyrna Road didn’t have houses until 2006, not long before the market here began to feel the effects of a slowing national economy.
That was also the year that Annandale was the site of the annual Middle Tennessee Homebuilders’ Parade of Homes, an event that turned out to be the last truly opulent parade before the housing slump took hold.
Despite the timing of its launch so close to the start of a recession, this upscale development seems to be doing rather well.
It is one of the few new developments that has houses under construction, despite the fact that prices here start in the $900,000s and there is plenty of competition in the $1 million and up price range throughout Brentwood.
And they are selling houses here, even though sales might not be as brisk as they would be in a booming economy.
Approximately 110 homes in the neighborhood have been sold and occupied. There will be 180 houses when it is completed.
Agents last year closed on 24 sales in Annandale, with an average price of $1,216,141. They’ve sold an additional seven houses since the start of 2009 and an eighth is pending.
Nearby, at The Governor’s Club, which competes for buyers in a similar price range, agents sold 29 homes in 2008, with an average price of $956,577, according to a market analysis prepared by broker Susan Gregory of Bob Parks Realty.
She said that Annandale’s sales have outpaced sales at The Governors Club and two other competitors, Hampton Reserve and Laurelbrooke, every year since 2006.
“And we have not had to negotiate on our prices and lots like other neighborhoods have,” she said.
Location helps
According to Gregory and others associated with this project, Annandale’s location – straddling the line separating Davidson and Williamson counties about 10 minutes from Interstate 65 – has been a major plus.
“The convenience of being able to get to I-65 and downtown has been a big factor,” said Rob Pease, who is development manager for CPS Land. “We have several doctors living here who need to have that access.”
Annandale’s location has also attracted some transplants from the Green Hills area of Nashville as well as people seeking proximity to Maryland Farms and Franklin.
Some business decisions and development practices have also protected Annandale’s growth.
One of them is CPS Land’s close rein on the pace of building, which it says has helped with company avoid a glut of inventory, and a host of related problems.
Pease said CPS Land made a critical move as the economy cooled down.
“We controlled (inventory) by limiting the number of lots we would sell t oa builder who was intending to build an inventory home,” he said.
“You can kill a community right out of the gate by putting too much inventory out there,” Gregory said. “You have too many houses for sale and prices get dropped and the whole neighborhood is de-valued.”
“Instead,” she said “we kept back the supply and that created the demand.”
Affiliate broker, Lisa Culp Taylor, Gregory’s business partner, said the pace of new construction is always being evaluated.
During the week of July 14, Realtracs.com showed 13 newly constructed homes for sale in Annandale, including some that are not yet finished. An additional nine re-sales were also listed.
Developer protects integrity
The developer has sought to protect the integrity of the neighborhood’s appearance and architectural review committee that approves home designs. Other aspects of appearance aren’t left to chance either.
The Annandale review the committee includes a landscape architect who designs all of the front and side yards. Also on the team is an interior designer who serves as a streetscape specialist.
“She checks to see how each proposed new home relates to the homes around it,” Pease said. Building materials, roofs, windows and exterior paint colors are compared with the other homes nearby to “ensure that there is not a repetition of materials” and colors, he said.
“It ensures a variety of house designs, and that gives the neighborhood and the streets a real custom look,” he said.
CPS Land also installed community amenities in the first year: a neighborhood swimming pool and pool house, walking trails and a linear park on Jones Parkway.
“Historically, that has always helped neighborhoods. It gives buyers a sense of security,” Gregory said.
Buyers seek smaller homes
Annandale builders have also been evolving their products in the past year, in response to what their sales agents are hearing from buyers.
“People are moving toward less space,” said Holly Davis, an affiliate broker at Bob Parks Realty who is also part of the sales team at Annandale.
In Annandale, less space translates to between 4,300 and 5,500 square feet instead of the 8,000-10,000 square foot size range seen in the home parade.
“They (buyers) don’t want to compromise on quality and features, but they don’t want all that space,” Gregory said.
There also is a growing interest in floor plans that have a second bedroom on the first floor, she said.
This kind of buyer feedback has led Legend Homes to build a new plan that has three bedrooms on the first floor. The design features 5,066 square feet and is listed for $999,900.
In addition, Atkinson Construction has completed an Italian villa design that is mostly one-level living with four bedrooms on the first floor.
It has 5,500 square feet and is listed for $1.395 million.