It was over eleven years ago I first wrote of the brothers Grace (Michael and Thomas) and their plans to convert an office building to apartments. The building, built around 1930, and owned by the brothers since 2006, had served as office space from its inception, but was struggling to keep the offices filled. Residential demand was booming in downtown, particularly rental units in the aftermath of the housing crisis. Leases were first offered just over a year later, in early 2014.
Each of those articles offer a more detail regarding history of the building and the structural features. Some of those features include the uniquely arched hallways lined in Tennessee pink marble, the original walnut doors, and one of the most beautiful residential lobbies downtown. The homes themselves include granite countertops, tile flooring, and all appliances, including washers and dryers.
I spoke to Tom Grace about their plans and what is being offered. He said the building contains fifty residential units and three commercial spaces, all of which are offered for sale, with current tenants having first right of refusal. There are four currently vacant units which will be offered for sale immediately and the other units in the building will be offered for sale after a short window for the current occupants. The new owners will be allowed to use the homes as long-term rentals, but short-term rentals will be prohibited.
One unique ground unit, which at one time housed a cafe, faces Locust Street and includes over 2100 square feet, with one bedroom and one bath. The other residential units start on the second floor and continue to the top of the ten-story building. The second floor includes a hallway that connects directly to the parking garage which (in total) contains over 100 parking spots. The parking spots will be offered to each new owner as a separate purchase.
The smallest one-bedroom unit comes in at around 500 square feet, while another one-bedroom comes in at around 700 square feet. The two-bedroom, two-bathroom units range from around 800 to 950 square feet. Floors three through ten have five units, each with an identical footprint to the one above and below it. One unit on the second floor has three bedrooms and two-and-a-half baths and comes in at just under 1500 square feet.
The homes are ideal for professors at UT or young professionals who work at the law offices, City County Buildings, or the First Tennessee Building, or young professional couples. The building currently has a mix of those and graduate students. Very few undergraduates live in the building, which is both easily accessible to UT and to downtown. The upper units have spectacular views of UT, downtown, the mountains, or a combination of those, but all have good views. The Sunsphere and UT campus are visible from the second floor units as the building sits on a high point in downtown.
Each of the 125 western-facing windows in the building have been recently replaced, as they had suffered from exposure to the western sun. The entire building has been recently re-painted, and the mortar has been re-pointed. “We’ve recently replaced two passenger elevators this year . . . the freight elevator was redone in 2014, so the building has three new elevators.” People who live in downtown buildings and have had to pay to replace elevators understand that this is a huge advantage to a building given that those large expenses have already been borne.
Tom was keen to point out that the units have been carefully maintained. The unit we were in at the time, which was empty, looked the same as it did when I first toured the building ten years ago. “The building and the units have been maintained very well . . . We’ve taken pride in ownership . . . It’s never looked as good as it does right now. If we’re ever going to sell with the intention of delivering the best product possible, we feel like the time is now.”
I also contacted Melinda Grimac, listing agent with Sotheby’s International Realty, who said the new homes will start at around $340,000 and will range upward to $825,000. There will be ten homes under $400,000, which by current downtown standards is rare. The price sits comparably to other downtown homes which do not have dedicated parking. Parking spaces will be sold from $35,000 to $40,000, with some sets going for $45,000 for a pair. She also pointed out significant levels of security, with a fob required not only for entry, but also for access between floors.
She said interest from current occupants has been high, with twenty-one tenants expressing interest within the first twenty-four hours. The four vacant units will be available and open to tours within the next ten days and the others will be made available as soon as the tenants have had a chance to respond. These units include two one-bedroom and two two-bedroom homes.
After the tenants have signed contracts or agreed to vacate upon sale, the available units throughout the building will be available for tours. Tours will be by appointment only and will be offered Tuesday, Thursday, and Sunday from 10:00 am to 4:00 pm. If you are interested, contact Melinda Grimac at 865-356-4178 or melinda.grimac@sothebysrealty.com. Those expressing interest will be given access in the order requested.