Tennessee National community (Knoxville, Loudon: sales, real estate, houses)

[lgavrich]

Does anyone know of any issues regarding Tennessee National, the Greg Norman project in Loudon? I have heard they have stopped adding promised amenities as sales have slowed, and that some management changes on site may not be working out well. Any insights from those "on the ground" in the Knoxville area would be appreciated. Many thanks.

Larry

[oldmanbob]

Some of what you have heard is probably rumors, but some maybe not. Promises were made to build a marina, golf pro shop, and club, and nothing yet,and many lots are not selling. They have made several changes in the in-house way of selling, and currently, put all there sells with a local real estate firm, and still everything is moving slow. I know several builders there, and homes are very slow in moving.

[Exrvi]

I live in a similar community near Tennessee National, and things have slowed down here as well. The demand is there, but people can't sell their homes in Ohio, Michigan, Florida, etc. It's going to be a tough couple of years for the developers. I hope they (particularly ours, who has many projects under way) survive.

One problem Tennessee national has is that builders were obligated to buy multiple lots and build spec houses. Neither the houses or lots have sold and since most are small builders, they are facing a real cash crunch. I look for there to be some who just walk away, and there will be a bunch of lots (and spec houses as well) going into forclosure.

Jeff

[TheShadow]

That's one reason that we are pretty much sold on Tellico Village, if you want a golf/lake community. We know that these sort of things happen with planned developments when the economy changes. At TV, all the amenities are in place and the development and it's association are mature and operating in the black for years. They continue to upgrade and expand facilities as the community grows, so it doesn't look old or raggedy. And I think you get more for your money when you buy a resale home. You don't get to custome design it, but I can live with that.

[Servpro Will]

Tennessee National...hmmm, where to even begin? Too large, too extravagant, overshot their budget on infrastructure up front costs, now they don't have money to build their 'promised' ammenities because the lots aren't moving and they don't have capital. Aesthetically, it can be and is a gorgeous development, though the problem is scarcity in homes. They have an over abundance of empty lots, so the homes that are built look out of place. The investors that bought up front expected it to boom, and now are selling their lots for too much, and they in turn continue to keep the development from lowering their prices. The golf membership is priced in the upper thousands, while they still charge a cart fee and monthly fee. Hopefully, when the market turns for the better, lots will begin to move, which will in turn allow them to deliver on their promises. But its beginning to be a situation to where many people do not want to purchase there until they deliver. Tough scenario. Unfortunately we have property in there, so we know all too well the pro's and con's, and lately the con's have outweighed. My two cents, sorry to be negative. But I love TV!

[Servpro Will]

Another update, we called our agent friends who are doing most of the in-house sales, and they are actually starting to cut the road down to the boat dock and marina. No actual ECD on the marina, and there are is construction equipment there yet for it, but at least there is the start of a road to it. So some semblance of work going on, but not the major work yet that has been promised, looks like just the filler for the time being.