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Seminar on June 28th: “Finding a Way with Your IRA”

June 27, 2011 by  
Filed under Uncategorized


Planning retirement in the next five years?  Looking to eventually downsize to a condo in the city?

If you answered “yes” to either of the above questions then you shouldn’t miss this free informative event on leveraging your IRA (Individual Retirement Account) by investing in today’s opportunistic real estate market, while also securing your future.

Did You Know?

  • Your self-directed IRA can buy income property with before-tax dollars – rent it out and move into it when you retire
  • Demand for rental housing in the city is skyrocketing – experts expect 25-30% increases in rent over the next five years
  • The condo supply pipeline has been pinched, resulting in a dearth of new inventory until at least 2015 – the best selection and values are available now
  • You can obtain financing on your IRA purchase securing today’s unprecedented low rates for the future while building positive cash flow in the interim

Presented by Realogics Sotheby’s International Realty, a panel of experts has been assembled to explore myths and facts with using IRA’s for income property, to discuss available financing options, and the review the overall housing marketing in downtown Seattle.

Here’s the details:

Finding a Way with Your IRA” – Investing in Today’s Condo Market for Tomorrow’s Retirement

Tuesday, June 28th, 2011 from 6:00pm – 8:30pm

The Hyatt at Olive 8 – 1635 8th Avenue – Downtown Seattle

Keynote Speaker – Tom Kelly, Syndicated Real Estate Columnist & Author

Self Directed IRA’s – David Nilssen, Guidant Financial

IRA Financing – Larry Enselman, Pacific Crest Savings Bank

Market Watch – Dean Jones, Realogics Sotheby’s International Realty

Admission is free

“We recognize there’s a growing opportunity for pre‐retirees to take advantage of today’s real estate opportunities by purchasing condominiums, renting them out with positive cash flow and then either holding them as an income property in their IRA or redeeming that asset as either a principal residence or second home in the future,” said Dean Jones, Principal of Realogics Sotheby’s International Realty. “The stars may be aligned downtown. We’re bringing in leading opinions to explore this investment strategy and welcome interested consumers and real estate brokers to view the interactive presentation and join the panel discussion.”

RSVP to 206.448.5752 or send an email to

See you there!

Residential RE: Is Business Really Booming?

December 30, 2010 by  
Filed under Uncategorized


There’s been much news lately that residential construction is roaring back!  But is there too much going on too quickly—and will all these projects really materialize?  And what is this telling us about the condominium market?  Here are some of the latest projects in the pipeline:

311 Cedar St:  The former Musician’s Building is now gone, with work underway on The Alto, a 17-story, 184-unit high-rise with 2,700 sq ft of retail space.  The project is scheduled for completion in early 2012.

504 Terry Ave & 1106 East Jefferson St:  The once-proposed Harbor Vista project from now-bankrupt Mastro Properties just got a new owner– an LLC out of San Francisco.  Rumors are that the property will be developed into a residential/retail complex.

888 Western Ave:  Goodman Real Estate’s original plans for an office building have changed to a 16-story residential building with 208 units with 9,907 sq ft of retail, plus 8,300 sq ft of recreation/public plaza space. 

1430 Second Ave (Second & Pike):   Urban Visions’ hotel and condominium plan have changed to a 440 foot, 35-story LEED-certified building of 290 apartments and 14,850 sq ft of retail and restaurant space, which includes a “Sky Bar” and restaurant overlooking Pike Place Market.  

1623 Bellevue Ave:  Proposed is a six-story building with 23 residential units and 1,000 sq ft of retail. 


2116 Fourth Ave – located next to the Cinerama, the proposed tower will have 357 units, 2,700 sq ft of ground-level retail. 

2625 Third Ave – The current site of the American Lung Association is slated to make way for a 19-story building with 204 units above 4,000 sq ft of retail space.

Second and Bell  – Bell 206, a 122-unit apartment complex,  is expected to break ground in January.

Eighth and Seneca  –  A recent financial deal has been reached to hang onto this site, where a twin tower project containing 280 units is in development.


Market Street and 14th Ave (Ballard):  Replacing Sunset Bowl will be Avalon Ballard, a 271-unit apartment complex. Construction scheduled to begin in Summer 2011.

Market Street Landing (15th Ave NW and NW Market, Ballard):  Equity Residential, an S&P 500 company specializing in apartments, condominiums and corporate housing, purchased the 1.4 acre site in October 2010. 

5711 24th Ave NW, Ballard:  Replacing the old Ballard Library will be Ballard West.  Currently scheduled to start construction in the summer, it’s planned to have 107 apartments, three live-work units and 6,500 sq ft of retail.

200 – 106th Ave NE (Bellevue):  Soma Towers is a proposed two-tower project —  Tower One at 23 stories high with 142 units, and Tower Two at 17 stories high with 124 units.   

With few construction events over the past several years, current vacancies are lower and rents are higher, making residential construction promising again.  Recently reported was Dupre + Scott Apartment Advisors’ latest forecast that 2,500 units will open in the tri-county area in 2011, with an additional 14,600 units possibly opening between 2012 and 2015. This concurs with opinions recently reported from Apartment Insights.  They predict a tight market from mid-2011 into 2012, bringing on significant rent increases.  

However, just because start or completion dates are announced doesn’t mean they’ll actually happen.  One of the items on our residential list first hit the presses in 2007. After inactivity since 2008, another project is now up and running, but still needs to apply for building permits.  We listed a property which sources tell us is a go, but is currently stalled and looking shaky for a start anytime soon.

The glitch?  Money.  Lending institutions now require a project’s net operating income to be profitable based on current, not projected, rents.  Plus, developers have to put up more of their own money.  Before the recession, developers only needed to contribute 15 percent equity.  Debt coverage ratios (net operating income divided by debt services) of 1.25 or better are now required. This pushes equity contributions to rates between 25 to 35, even up to 40 percent.  A number of developers now need to seek equity partners – if they can find them.  Equity partners were recession victims, too.

The Outlook for Condominium Development?

With current debt coverage ratios applying here as well, there’s nothing in the pipeline regarding new construction.  But as apartment development explodes, we predict that if the condo market picks up as well, they’ll look at apartment buildings to fill demand.  We’ve seen this pattern in the Seattle housing market before.  Both Belltown Court and