The first buyers at Fulton Residences, the 210-unit condo building finishing at 1231 Second Ave. N., face a question that has little to do with finishes or views. Under Fannie Mae's rules, conventional loans in a new or newly converted condo project generally depend on at least half the units being sold first. In Fannie Mae's Selling Guide, a Full Review of these projects requires that at least 50% of the total units, or of the relevant legal phase, have been conveyed or be under contract to buyers who will live there or use it as a second home. The same guide generally requires the project to be substantially complete. So in a 210-unit building, an early buyer's loan options depend partly on how quickly about 105 units close or go under contract.
That detail matters more this fall because of where Fulton's demand has to come from. This year two Germantown developers changed course in opposite directions. Read side by side, their decisions show the neighborhood's for-sale condo market being priced against local rents.
Two Projects, Opposite Turns
The first project was Aster, at 1414 Third Ave. N. FrontFour Nashville, a joint venture of Cottingham Capital Partners and FrontFour Capital, had planned it with 85 for-sale residences as part of a project priced at more than $50 million. The Nashville Post reported that Charleston-based The Beach Co. now proposes a six-story building on the site with 100 apartments and ground-floor retail. Beach Co. planned to acquire the land by year-end and begin construction in 2027. In June 2026, the Nashville Business Journal described the apartment plan as more feasible in a difficult development environment.
The second building moved toward ownership. The project at 1231 Second Ave. N. began four years ago under Philadelphia-based Greenpointe Construction as Artists Lofts. Construction stalled in 2024. The Nashville Business Journal reported in July that the project had faced dozens of liens and multiple lawsuits, that its former manager had been removed, and that New York-based Alcova Capital was taking control. The Tennessean described the renamed Fulton Residences as a project that had languished amid construction delays and legal battles and was now pivoting to for-sale condos.
| Aster site, 1414 Third Ave. N. | Fulton Residences, 1231 Second Ave. N. | |
|---|---|---|
| Earlier plan | 85 for-sale residences | Artists Lofts, begun under Greenpointe Construction |
| Current plan | About 100 apartments with retail, The Beach Co. | 210 for-sale condos, Alcova Capital |
| Pricing signal | More than $50 million project | Starting at $270,000 |
| Timing | Construction targeted for 2027 | First deliveries expected late fall 2026 |
The Price Point That Made Fulton Work
According to the Nashville Post, Fulton will offer studios, one-bedrooms, one-bedroom-plus-flex units and two-bedrooms from 562 to 1,414 square feet, starting at $270,000. The Post's own research ranked that among the lowest starting figures for new condos in high-profile Nashville neighborhoods. Local firm Certified Construction Services is finishing the build, Matt Laitinen of Place Development is serving as owner's representative, and Redeavor's Nashville office is handling sales. Planned amenities include a coffee bar, a heated pool and sundeck, a fitness studio, a billiards lounge, co-working space and a media room.
The rent data shows why that entry price matters. Apartment List's September 2026 neighborhood report put Germantown's median one-bedroom rent at $2,029 a month and its two-bedroom at $2,913 as of August 2026. Rents were down 2.6% year over year, vacancy was 8.0%, and 36% of communities were offering concessions. The same report cites Census data showing that 75% of Germantown households rent. Fulton's buyers will mostly come from that renter pool. At $270,000 at the low end, Fulton is pitching ownership to people already paying about $2,000 a month to live in the same neighborhood.
Germantown landlords are also discounting less than landlords a few blocks south. In the same August 2026 data, Downtown Nashville had 10.7% vacancy and concessions at 64% of communities. Citywide, 49% of Nashville apartments advertised one or more free months. The Nashville Business Journal reported that Proffitt Dixon Partners' Chamberlain House, a 345-unit rental community, was 60% leased a few months after opening. Steady rental demand is what makes an apartment plan feasible at the Aster site. It is also why an entry-level condo has a ready pool of buyers.
Why Downtown's Condo Glut Shapes Germantown's Pricing
The resale side shows why a premium condo plan is harder to justify right now. Greater Nashville Realtors' August 2026 release included this from GNR President Jack Gaughan:
"Downtown Nashville's condo market tells a different story, with closings down 38% in August and 9% year to date. With inventory reaching 22 months, buyers have considerable leverage."
Across Davidson County, GNR's quarterly data shows 616 condo closings at a $340,000 price in Q3 2026, down from 669 closings at $350,000 in Q2 2026. Those are countywide figures. Germantown has no separate condo series in GNR's reports. Still, a new $270,000 unit enters a county where the typical condo sold for $340,000 last quarter, and a few minutes away, downtown towers have close to two years of supply. A buyer weighing Fulton is comparing it with discounted resale units nearby as well as with rent.
What Fulton's Early Buyers Are Actually Depending On
That brings the question back to financing. With Fannie Mae's Full Review requirements in mind, a buyer looking at Fulton is relying on several things outside their own file:
- Sales pace. The 50% threshold applies to the whole project or legal phase. The pace depends on how many of the other 210 units sell to owner-occupants or second-home buyers.
- Construction completion. Fulton's first residences are expected to deliver in late fall 2026, according to City Now Next. Fannie's guide generally ties project eligibility to substantial completion.
- The building's legal history. Fannie's guide lists certain pending litigation among the factors that can make a project ineligible, with an exception for minor litigation. Since the lawsuits were reported in July, buyers can ask Redeavor's sales team where those cases stand now.
- The details still to come. As of an October 7 site update, Fulton's website was inviting buyers to join an interest list for priority access. It did not show prices by unit type, live inventory or HOA dues.
For an early buyer, the timing of a closing depends partly on other buyers, which is unusual for someone used to buying a resale condo in an established building. This is general information, not legal or financial advice. A lender and an attorney can tell you how these rules apply to a specific purchase.
The Next Test Comes November 12
Germantown's pipeline goes before the Metro Planning Commission on Nov. 12, 2026, three weeks after this post goes live. City Now Next reported that MXB Partners is seeking a rezoning for 75 condos and 10,000 square feet of retail at 1216–1220 Third Ave. N., and the request is scheduled for that meeting. The same agenda includes a height request from Proffitt Dixon for Ferra at 1000 Second Ave. N. Connect CRE reported that Ferra is planned as 325 apartments with ground-floor retail and restaurant space, with a 2027 groundbreaking and 2028 delivery.
MXB's proposal is still early. A rezoning request is not an approved building, and 75 proposed units are not 75 listings. Its price points will show whether it follows Aster's premium approach or Fulton's renter-conversion approach. Fulton's sales over the next few months will show developers which approach works.
FAQ
Is Fulton Residences selling units now? As of the October 7 update to its website, Fulton was collecting names on an interest list for priority access to details, events and first opportunities to buy.
What happened to the Aster condo plan? The Beach Co. now proposes a six-story building with 100 apartments and ground-floor retail at 1414 Third Ave. N., with construction planned for 2027.
Are the Davidson County condo figures specific to Germantown? No. GNR's Q3 2026 numbers of 616 closings at $340,000 cover all of Davidson County.
If you're weighing a new Germantown condo against a resale unit or another year of renting, Gaston Group can walk you through the questions to ask about any building you're considering, from its sales pace to its legal history, before you sign a contract.
