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Apartment Homes for Rent Ended Up Getting Sold for Less

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By : John Cutts    99 or more times read
Several apartment homes for rent that are under foreclosure in Tennessee have been sold for prices that are below what the sellers and original owners paid for them. However, real estate market analysts have dispelled fears that the apartment market is getting worse. According to them, this only showed that the sellers have overpaid and have likely taken huge debts, hence the low-priced sales.

Local market analysts have also added that it just seems that foreclosure numbers within the apartment market have surged, but that is not exactly the case. They asserted that the market for apartments has actually gotten better and the sales were just due to lenders deciding to call in the loans.

Some of the sales that happened in the past few weeks involve the Rolling Hills Apartment near Charlotte Drive and Bent Tree Apartments in Antioch. Rolling Hills was purchased by Premier Real Property Holdings for four-and-a-half million dollars, with its original owners paying over $15 million to acquire the property in 2004.

Meanwhile, the Bent Tree apartment homes for rent were sold for more than $7 million to 149 Hickory Hollow Trace. The property was originally purchased for more than $10 million in 1999. The current purchase price means that each unit of the apartment was purchased for over $26,000.

Another notable sale was Turtle Creek Apartments in Nolensville. It was sold for $7 million in May to PAL MF Nashville LLC. Based on the current purchase price, each unit of the apartment is worth almost $22,000. The building was built during the 1970s and its previous owners acquired a loan worth more than $10 million to buy the property.

Real estate analysts reveal that most of these properties were considered premium structures and were acquired by their original owners for higher prices. Lenders provided loans to most of the previous owners despite them not having any background in apartment ownership. When the recession hits and fewer tenants were occupying the buildings, these previous owners ended up failing to pay their loans.

The latest sale of several apartment homes for rent in Tennessee does not signify a weakening market, according to analysts. They added that, on the contrary, the apartment sector is starting to recover and the low-priced sales only meant that previous owners have overpaid when they purchased these properties years ago.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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