LUKEN HOLDINGS ADDS RESIDENTIAL REAL ESTATE TO ITS IMPRESSIVE COMMERCIAL ACHIEVEMENTS IN THE MARKETPLACE.

Moving in a New Direction

Babb received her affiliate broker real estate license in 2005 and her broker’s license in 2009. This November Babb will receive the Graduate Realtor Institute certification, which entails 90 hours of additional study. She will be the only residential real estate agent at the bustling firm on Market Street.

Tammy Babb’s bright blue eyes shine with excitement as she tells about her new career prospect. She came to work for Luken Holdings from the Corker Group in 2001 when Luken purchased its assets.

Luken Holdings is the city’s largest property management real estate company in Chattanooga. It is known for its sales, leasing and management of commercial properties, especially historic commercial buildings in and around the Chattanooga metropolitan area, many on the National Register of Historic Places. Luken Holdings recently purchased the historic Tivoli Center on Broad Street. The Chattanooga Symphony & Opera Association is expected to move into the facility by the end of this year, as is Yacoubian Tailors.

Over the summer, Luken Holdings sold the 12-story Maclellan Building, also on Broad Street to Performance Hospitality Group as a possible site for Hotel Indigo, a boutique hotel franchise. With properties in excess of 2.5 million square feet, the company's focus has been primarily in the commercial arena, although management is excited about the addition of residential real estate to the mix.

"Mr. Luken felt that with over 5,000 homes available in our area, we should be involved in moving those properties," says Babb. "The National Association of Realtors (NAR) is pushing to identify more qualified homebuyers and for us to be educating those homebuyers as well."

The veteran commercial agent is licensed in both Tennessee and Georgia for residential real estate. She has begun advertising Luken's residential capacity, and using online promotions. Babb plans to start a blog this fall. "Tammy's got a lot of energy," says Luken CFO Lynda Childress. "She doesn't let things lie around undone, she's a go-getter."

"We are known for commercial, and obviously we can find a building for your company, but we can also find a house or list your house, too," Babb adds. Pending home sales have actually increased for the second consecutive month, according to the NAR. The Pending Home Sales Index in the South increased 6.7 percent to a respectable index of 90.8, but sales are still below August 2009. Babb likes to repeat a quote she heard recently: In difficult times the ambitious find ways to survive. She thinks it's an appropriate mantra for Luken associates.

Luken Holdings' 21 employees perform brokerage services, and provide leasing management and maintenance for its properties. While the residential component is still in the planning phase, Babb expects it to be a bit different. "Leasing space or selling a commercial building is important, but now we're talking about a residence—where somebody lives. I plan to be 100-percent ready."

Babb says Luken Holdings stresses good business development and preparation on the part of retail and office tenants. The company helps its tenants with sound planning and that attitude seems to pay off. "Our current tenants are expanding and often relocating to more appropriate buildings. They stay with us — we spoil them," she says.

She has been working with a successful mentor in listing the homes, knowing "if an agent can stay strong through the down times—those are the good ones." The next PHSI will be released on November 5th from NAR's 2010 Conference & Expo in New Orleans. The conference will also cover the 2011 housing and economic forecast.

Lawrence Yun, NAR chief economist, expects a gradual improvement in home sales in upcoming months. "Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market," he says. "However, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence." Babb says she is ready for an increase in buyers—100 percent ready.