July 12, 2016

Condominium Sales Strong in Suburbs, East Memphis

By Deborah M. Clubb
– The Commercial Appeal –

With the first 88 units of The Oaks at Schilling Farms under contract, Kemmons Wilson Companies has presold 10 units of 100 to be built as The Oaks at Appling.

“We’re off to a great start,” said Ron Hickman, senior vice president in Wilson’s real estate ventures.

Wilson’s suburban condo sales have been so strong, “we’re scouting for more than just the third one,” Hickman said, “We would love to have other sites and are looking actively for additional sites.”

While Wilson is largely alone in the Collierville area, a location factor that has surely boosted their sales, the Memphis condominium market has been good and needs more new construction brokers said.

“Our market is sort of quietly surging,” said Sheldon Rosengarten, a broker with Marx & Bendsorf.

“Memphis has been primarily a single family market and there is now becoming a demand from people who want to live more of a carefree, turnkey lifestyle.”

Metro area condo sales tracked by the Memphis Association of Realtors surged nearly 24 percent in July and August compared with the same two months last year: 73 units this year vs. 59 in 2002. September figures aren’t available.

That jump followed a 5 percent decline the April through June quarter when 89 units sold compared with 94 last year.

Longtime East Memphis properties – Audubon Square, Yates Village, Fountain Square and others – have been steady for years, Rosengarten said.

“Moderate condominiums are at a premium,” he added. “Moderate is anything from just under $100,000 to $150,000.

Two new projects – towers at Briarcrest and Quail Hollow and units proposed at The Racquet Club – will bring needed inventory online in the East Memphis market sector, Rosengarten said.

Jeanene Lawhead of Crye-Leike Inc. said condo sales are up, with particular demand in East Memphis and Germantown.

“It’s a location thing,” Collins said. “I don’t know of any other condos around here, especially new.”

The $16.5 million Appling project is on 18 acres just north of Dexter and south of Interstate 40.

Base pricing is in the high $130,000s to the high $160,000s Hickman said.

The last building in the $14.5 million Schilling Farms project should be completed by the end of November.