King County Weekly Condo Sales Ratios for October 28th, 2009

Condo Only, NWMLS Area 701 (Belltown & Downtown Seattle)

King County Weekly Condo Sales Ratios for October 13th, 2009

Condo Only, NWMLS Area 701 (Belltown & Downtown Seattle)

Another Unique Project Offers Bulk Buy Option for Buyers!

Eleven Eleven East Pike is also taking part in the “bulk sales” approach in efforts to sell one-third (nine) of their vintage designed homes in one of Capitol Hill’s most trendy areas.  Auctions don’t typically do as well if it’s not one of the first to take place, so the bulk buy strategy seems to be getting some momentum when it comes to reducing prices and attracting new buyers.

With the first release of homes being released at prices between $255k and $379k, price reductions are down 20 to 25 percent from their original list price.

As with the bulk buy option that was set up for Decatur, buyers can get in for a refundable deposit of only $500 until the end of the month, and they must be scheduled to close by November 30th.

Developer William Justen is also reported in a DJC article expressing some concern for needing to take this approach since the address is somewhat of a boutique project designed by an acclaimed architecture firm.

“It doesn’t seem to matter what a buyer is willing to pay anymore, it only matters what an appraiser thinks because that affects what a lender is willing to lend,” said Justen. “The reality is that our industry is being commoditized by the lender community, and that means that a niche development like Eleven Eleven East Pike, which was never designed for the masses, is nevertheless being held back by a homogeneous appraisal market”.

The project is certainly unique with its red exterior, custom-designed puzzle walls, along with Cupcake Royale occupying its retail space.  The project is located on a section of East Pike Street filled with eclectic shops like the Ferrari/Maserati/Alfa Romeo store, a couple of different record stores, tons of pubs, and just as many small diners.

Other projects designed by Olson Sundberg Kundig Allen Architects include 98 Union, Hillclimb Court, Pike and Virginia Building and the redesign of Merrill Place–all very desirable properties with unique boutique addresses.

1 Hotel & Residences Hole to be Filled

That’s right, the Puget Sound Business Journal reported that Starwood, the company which had planned to build 1 Hotel and Residences, has announced that the large hole that has been not occupying anything next to the Macy’s garage on 2nd and Pike will finally be filled.

In a press release, Starwood Capital said, “As we wait for capital markets to stabilize sufficiently enough for us to realize our vision of building a world-class hotel and residences at the gateway to Seattle’s retail district, we are working in partnership with the city to ensure the property remains clean and presentable over the short-term at this important location”.

They’re still holding strong to the idea of developing on the corner, which very likely is one of the most valuable vacant lots in downtown, if not the most valuable.

Some Areas Pull Back While Others Pull Ahead

While some areas seem to be pulling ahead in becoming more of a seller’s market, others are falling back.  Or, while some areas are falling back and becoming more of a balanced market, others are pulling ahead.  Here is a comparison chart of how the general King County area has changed from a year ago, to three months ago, and compared to today.

King County Weekly Condo Sales Ratios for October 6th, 2009

Condo Only, NWMLS Area 701 (Belltown & Downtown Seattle)

New Pricing for Gallery & Brix Maintains Buyer Momentum

We were told that Brix sold another eight units (one being a fallout/back up buyer from the auction) over the weekend after the auction. Also, of the three remaining townhouses, only one is now left and has yet to be released. We’ve yet to speak to anyone about how Gallery has done since the auction, but our web traffic shows our Gallery website received 1,355 visits compared to our Brix website which received 346. Although we built the websites and integrated tracking on the same day, we have to also consider that search engine placement for both vary. 

At any rate, those who have won a home at either location seem to feel happy with the deal they received. Schnitzer has also acted promptly and repriced their first release of homes–which are moving quickly based on what we know from the eight additional units that sold just this weekend.

Any one of these units shown below does not guarantee that it is still on the market. To take advantage of this low pricing and to get more information on what units are available, contact us.

Gallery

Brix

Unit #1206 | Open 2B/2B 1,066 sq. ft. Was $800,000 Now $499,000Unit #1204 | Open 2B/1B 880 sq. ft. Was $625,000 Now $469,000 Unit #1202 | 2B/2B + Den 1,301 sq. ft. Was $1,080,000 Now $699,000 Unit #918 | Open 1B/1B 771 sq. ft. Was $475,000 Now $335,000 Unit #915 | Open 1B/1B 596 sq. ft. Was $386,300 Now $335,000 Unit #908 | Open 1B/1B 603 sq. ft. Was $392,400 Now $295,000 Unit #802 | 2B/2B + Den 1,301 sq. ft. Was $800,000 Now $559,000 Unit #616 | Open 1B/1B 603 sq. ft. Was $368,100 Now $279,000 Unit #908 | Open 1B/1B 603 sq. ft. Was $392,400 Now $295,000 Unit #307 | 1B/1B + Den 883 sq. ft. Was $440,000 Now $275,000 Unit #302 | Open 2B/2B 961 sq. ft. Was $530,000 Now $409,000

Unit #607 | Open 1B/1B 724 sq. ft. Was $395,000 Now $309,000Unit #505 | Open 1B/1B 674 sq. ft. Was $369,000 Now $279,000 Unit #314 | Open 1B/1B 547 sq. ft. Was $309,000 Now $255,000 Unit #311 | 1B/1B 671 sq. ft. Was $399,990 Now $295,000 Unit #307 | Open 1B/1B + Den 789 sq. ft. Was $420,000 Now $329,000 Unit #136 | TH 2B/2.5B + Den 1,418 sq. ft. Was $622,000 Now $489,000 Unit #134 | TH 2B/2.5B + Den 1,172 sq. ft. Was $520,000 Now $439,000 Unit #113 | Loft TH 1B/1.5B 747 sq. ft. Was $449,990 Now $309,000 Unit #126 | Loft TH 1B/1.5B 814 sq. ft. Was $459,990 Now $319,000 Unit #112 | Loft TH 1B/1.5B 938 sq. ft. Was $549,990 Now $339,000

Arrange a Showing to Take Advantage of New Pricing! Last Chance to Take Advantage of $8,000 Tax Credit!

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Exclusive Peek at Price List for Decatur & Bulk-Buy Details!

What is bulk-buy? How do you explain it?

In a bulk-buy, homes are generally released in phases at a perceived lower listing price to determine how quickly they sell. The number of units selling within each phase determines how much buyers will pay range from a set high and low price point. The price per square foot and its range will justifiably go up from Phase 1 if a large number of buyers seek to take advantage of the initial price reduction. Generally, developers won’t discount on an individual unit sale basis, and while block unit purchases from sophisticated investor groups are becoming more common, most sellers and lenders want to limit rentals to preserve home values and maintain control over resale inventory.

Overhead costs and days on the market require a higher return from sales, therefore the faster they move, the more savings can be made to the developer and the buyers. It’s a win-win. The most attractive aspect of this program, from our perspective, is that rather than slowly reducing prices over the course of the next several months, they were simply reduced to below perceived market value. Today, a buyer for Decatur can purchase a 2-bedroom condo in a downtown-urban neighborhood, with updated interiors and views, from a renowned architect, for under $300,000! We challenge anybody to find a better deal. Expectations are that the first phase will sell well, and the increased price point and amount of available homes during the second phase will still be low. No reason to play games with negotiations, sales pitches, or bidding.  Decatur is looking to give the best possible deal to those who recognize the deal for what it is–an incentive that really can’t be beat.

Contact us here for showing opportunities

What kind of commitment does a buyer have to make to take advantage of these prices?

Initially, none!

In fact, reserving a specific unit at a defined price range to see how the bulk-buying concept will interpret into lower prices is very easy. All a buyer needs to do is to sign a reservation and deliver a fully refundable deposit of $500. When the results of the bulk sale is known, the buyer will have the option to accept the price, or reject it and have the deposit refunded. Try that with an auction.

There is also talk that Colbalt Mortgage (preferred lender) is working out a limited amount of 0% down financing options for select units. We do not have the details yet, but please email us for updates on progress of financing.

Ok, so the situation and need to sell units has been established, and the pricing/financing sounds good. What about the building? After all, it’s over 50 years old!

The building was indeed built in the 1950’s, but the architect was not one of mediocrity. John Graham Jr. won international acclaim for his design of the Space Needle, and his firm has also been noted for their work on Seattle’s Westin and Sheraton Hotels. The Wysong Group has also worked on the restoration and conversion of the property to include granite countertops, stainless steel appliances, wood flooring, and other additional features. The structure itself contains new windows. The primary electrical distribution has been redone, and the plumbing was converted to copper.  All and all, this is another sales strategy The Stroupe Group would like to chalk up as another “good deal”, and an excellent opportunity for those patient first-time buyers.

One thing to note before it comes as a surprise later… of what we are currently familiar with (63 homes), only 23 parking spaces are being offered to 2-bedroom and “premium” 1-bedroom buyers for $20,000 to 25,000. Time is limited to take full advantage of not only a rare financing opportunity in a desired location with a charming address, but also a low price point and an $8,000 tax credit.

Contact us here for showing opportunities

As of today, Decatur already has nine reservations (with backup offers), and marketing attempts have only been made by sending press releases to us local bloggers.

Additional information about the special offer is still being released, and we’ll post floorplans as we get them. In the meantime, here’s that price list: