The Nolde Bakery, located at 306 N 26th Street is an interesting case study in the real estate recovery.
Developed by Buddy Gaddams of Marathon Development in the Tidewater area (Norfolk, I think) beginning in 2005, the condominium project represented the leading edge of warehouse conversions in the Richmond market. The Nolde Bakery is a turn of the century warehouse that (as the name would suggest) was a bakery for much of its original and adult life.
After opening to some decent success (they were able to secure numerous contracts prior to completion), there were delays in delivery and the competitive advantage of being first to the market disappeared, as did the momentum. In 2008, the developer pulled the plug on sales after selling about 20% of the available 70+ units in the project. The unfortunate owners of individual units were unable to sell while the developer leased the remainder of the units (see this article for the reason why) and consequently, there were numerous foreclosures and contentious relations amongst all involved.
In 2013, as the market had recovered, the Nolde development began the process of re-establishing themselves as a FOR SALE property and ended active leasing operations. With a sweeping price reduction and commitment to selling the remaining units, Nolde is experiencing some successes.
We wrote an article a while back which labelled Nolde as ‘Avoid at All Costs‘ project. This is no longer the case provided the project can regain status amongst lenders.
For properties available at Nolde and other places on Church Hill, click here…
Things to keep in mind when buying at Nolde:
- Make sure you understand the extent of the builder warranty
- Ask many questions about sales levels and lending
- The project has some nice amenities for a project of its size
- Market values for units on the Broad Street side tend to be bit higher than on the Marshall Street side
