Nashville’s red-hot housing market soared to new mind-numbing heights after a mobile home sold for $1.5 million — for a property that fetched just over $130,000 in 2007 — ahead of software giant Oracle’s plans to open its second headquarters in Music City. build.
Located on the eastern bank of the Cumberland River, the trailer contains only 528 square feet of space, according to Zillow, but sits on a 1.23-acre lot that the buyer expects to develop into multiple units in the gentrifying neighborhood.
“With that acreage, they can build 40-50 row houses and sell them or rent them out as short-term rentals,” said real estate director Ryan Turbeville, noting that the property represents four lots.
The underdeveloped area expects huge demand for space after software giant Oracle announced a $254 million River North project along the eastern bank of the Cumberland River in July.
A mobile home in eastern Nashville and surrounding 1.23 acres of land was sold for $1.5 million to owners ‘1110 Baptist Partners’
The $1.5 million mobile home is located just over half a mile away from the River North project by the software company Oracle that is redeveloping the area
The area’s recent gentrification and high demand for real estate have led to rising house prices
The mixed-zone area offers opportunities for modern homes, offices and retail on nearly 60 acres in Nashville.
Oracle, which started in Silicon Valley, moved its headquarters to Austin, Texas last year. The tech titan plans to spend $1.2 billion for a second US headquarters in Nashville, according to the Tennessee.
Tesla also fled the tax-heavy Golden State for Austin last week.
“With River North development finally underway and Oracle announcing itself as the primary tenant, all of the surrounding neighborhoods will develop,” Turbeville told WKRN.
“How long that will take is a guess – probably 5-10 years before it spreads.”
The mobile home site’s buyers haven’t revealed their plans, but its closing price beat the real estate site’s “Zestimate” of $1,143,300 after it was picked up by 1110 Baptist Partners last month.
“I firmly believe that the Trinity Lane, Baptist World Center and Brick Church Pike areas will all benefit greatly from Oracle and River North,” Turbeville said.
‘In mixed use, there are many different ways [the new buyers] could approach the redevelopment of this property, and they may not know what that plan is yet.
“Sometimes developers buy a property to keep the existing tenant and continue to generate income for a short period of time while developing their larger plan for the property.”
Prices for the property have increased significantly over the years as the cell phone sold for $134,933 in 2007
Current residents in the area are afraid of being forced out of their homes by the rise in house prices
Caris Porter, who rents in the Cumberland Heights community across from the sold mobile home, couldn’t believe the skyrocketing sales.
“It’s absolutely insane,” she told WKRN.
However, due to the gentrification efforts, current tenants are concerned that they will be pushed off their properties if prices skyrocket.
“I don’t know where to go if they do,” Porter said. “This is all I can afford now.”
In recent years, it has become one of the most expensive American cities to live in.
The current average price for a home in Nashville is estimated to be $397,000 with an average price increase of 13.4% per year.
A major redevelopment in eastern Nashville includes a 60-acre mixed-zone project called River North, led by software company Oracle