Nashville’s Shifting Intown Neighborhoods


Everywhere you look in Nashville’s intown neighborhoods, developers are building multi-family housing or replatting existing lots for greater density. One can see this all over Green Hills, Music Row, Hillsboro Village, West End, East Nashville, 12South, Sylvan Park, Germantown and other intown neighborhoods. The market speaks for itself. This type of urban-infill development is doing very well. For example, in Hillsboro Village, there are plans for an 18-unit residential development. 12 South Flats, a retail and apartment development by H.G. Hills Realty Co. and Southeast Venture that is currently under construction, already has85 percent of its retail space leased. The development’s marketing materials describe it as “an urban location with neighborhood charm.” With increased density, it is vital that the city, developers, and builders act carefully and thoughtfully. Increased density creates many issues that must be dealt with prudently to ensure success for all involved, including affected neighborhoods. Traffic is the […]

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Is Nashville’s Brand What We Want it to Be?


In January, the New York Times acknowledged Nashville’s spot as the newest “it” city. Billboards and commercials across America showcase the city while advertising ABC’s hit series “Nashville.” On the business front, Nashville is leading the nation in job growth. Given these trends, Nashville must be doing something right. According to the New York Times, Nashville was “once embarrassed by its Grand Ole Opry roots,” yet those roots seem to be precisely why Nashville is so popular. Nashville, it seems, is now starting to embrace its musical heritage and unique culture. Look no further than the $623 million Music City Center downtown, which will provide ample opportunity for increased visitors and visibility for the city. The Music City Center itself harkens back to Nashville’s musical roots, with its main section being shaped like a guitar. There has even been talk of a guitar-shaped office tower in recent years. The question becomes, then, “What is Nashville’s brand […]

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Tennessee Real Estate Transfer Tax and Exemptions (Tenn. Code Ann. § 67-4-409)


The Tennessee Real Estate Transfer Tax is codified at Tennessee Code Annotated § 67-4-409.  TCA 67-4-409(a) requires that “all transfers of realty, whether by deed, court deed, decree, partition deed, or other instrument evidencing transfer of any interest in real estate” are subject, upon recordation, to a tax of $0.37 per $100.00 (the “Transfer Tax”) calculated based on the greater of “the consideration for the transfer;” or “the value of the property” (“Transfer Tax Formula”).  The Transfer Tax is paid in consideration of the privilege of recordation and applies to both residential and commercial transactions. As in most states, there are several exemptions from the requirement to pay the Transfer Tax, including transfer of a leasehold estate, creation or dissolution of a tenancy by the entirety, deeds of division in kind of realty formerly held by tenants in common, release of a life estate to the beneficiaries of the remainder […]

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Tennessee Mechanics’ and Materialmen’s Lien Statute Summary


In Tennessee, like most states, there is a statutory means by which a person or company who provides labor or materials for the improvement of real estate can secure payment for the work or materials.  Tennessee’s mechanics’ or materialmen’s lien statute was overhauled in 2007 to make it easier to understand and more simple; however, the statute remains full of potential pitfalls and rife with deadlines of various types that can be costly for the unwary.  We recommend hiring a commercial real estate attorney to ensure your rights are protected. Although the statutory changes in 2007 require that the statute “be construed and applied liberally to secure the beneficial results, intents, and purposes” of the statute, “strict compliance” with the statute is still required.  Tenn. Code Ann. § 66-11-148; Sequatchie Concrete Co. v. Cutter Labs., 616 S.W.2d 162, 165 (Tenn. 1980).  To have a lien, the claimant must have improved […]

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Construction Lending–Do Lenders ever owe a Duty to Ensure Construction Funds are Used Properly?


I can count on one hand the number of times I’ve seen commercial real estate construction projects come in under budget.  It never fails that last minute changes, upgrades, or “surprises” cause costs to be higher than expected.  Most of the time, one’s construction budget has been pre-approved by the lender and all draw requests are made as one progresses from beginning to end of the project.  So what happens if the lender isn’t really paying attention, funds all draw requests, and construction funds run out while the project is only partially completed?  Whose fault is it?  A question raised by this perpetual problem is what obligation, if any, does your lender have to make sure that your project is progressing appropriately and that the money that the lender has provided for the project is being used appropriately or prudently. Recently, the Tennessee Court of Appeals decided a case involving […]

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