Anyone living in an area that’s seen a lot of population growth lately knows that house prices are surging, sometimes to unbelievable heights.
While that’s great news for homeowners looking to sell at a profit and go live somewhere less expensive, it’s worrisome for many who are slowly being pushed out.
The structure at 1111 Spurgeon Avenue is not much to look at from the outside. In total, the living area is 528 sq ft, and in 2007, it sold for $135,000.
According to Zillow, it sold in July of this year for a cool $1.1 million, and then in September, it went for $1.5 million.
The price has many bewildered, including Caris Porter, a local who rents in the Cumberland Heights Community across from the surprisingly pricey mobile home.
“That’s absolutely insane,” she said, according to WKRN-TV.
There is a reason for the exorbitant jump, though, that some have sussed out: Apparently, the original listing of the understated home described it as sitting on just shy of a quarter acre, but it’s actually one of four parcels that total around 1.5 acres.
Recently, a group known as 1110 Baptist Partners bought about 1.23 acres of the overall property, and that’s what the staggering price tag actually seems to have covered. That makes more sense, as Ryan Turbeville of the Ashton Real Estate Group pointed out, since it could be developed.
“Odds are that the listing, or whatever web service pulled that data, only looked at that one parcel but gave the total price,” Turbeville said. “With that amount of acreage, they could build 40-50 townhomes and either sell them or rent them out as short-term rentals.
“With mixed-use zoning, there are many different ways they could approach redeveloping this property, and it’s possible they don’t know what that plan is yet. Sometimes developers will buy a property, keep the existing tenant and keep generating revenue for a short period of time while they develop their larger plan for the property.”
“With the River North development finally starting up and Oracle announcing itself as the major anchor tenant, all the neighborhoods surrounding that are going to develop. How long that takes is anyone’s guess — probably five to 10 years before it spreads out.
Of course, if they go the development route, Porter is worried she’ll have to make some changes, too.
“I don’t know where I’m going to go after, if they — if they do that,” she said. “This is all I can afford right now.”