The Decatur: Cheaper to Own than Renting?

We’ve recently received a study claiming that it’s now more cost-effective to own at The Decatur Condominiums than it is to rent in the popular First Hill neighborhood.  This study compares one and two bedroom homes in The Decatur to comparable properties offered at nearby apartment buildings.  It considers variable market dynamics including lower selling prices, FHA financing, historically low interest rates, rising rents and tax advantages for homebuyers.  The chart they provided contains two scenarios tallied over a period of five years aggregating the total housing costs for both renting and owning, and you can tap onto it here– The_Decatur_Chart.

The study also referred to a recent Puget Sound Business Journal article headlined “Ascent of Rent” , which takes a look at rental rate increases, plus the lack of new condominium projects scheduled for development.  This article also covers the number of rental properties slated for construction–subject, as always, to funding availability.    

More than 80% sold, The Decatur has 146-units comprised of one and two bedroom homes starting from just $187,500.  Built in 1950, the concrete and steel high-rise landmark was substantially renovated in 2006 and 2007, and converted to condominiums before the market corrected.  Prices are now up to 40% below the original sales prices.  Take a look at the links we’ve provided and if you’d like more information or to schedule a private tour, just contact us at urgent@stroupe.com.

The Decatur: First Hill Finery, with a Neighborly Touch

You may find yourself torn as to what you want in a condominium home. You thrive in the high energy of a city. Then you come across a photo of a street with big, shady trees and think, “I’ll never find that here”. Surprise! The Decatur Condominiums not only offers you a neighborhood lifestyle but you’re also minutes away from a lot of Seattle living. And, at up to 35 percent off its original prices, The Decatur is a bargain to boot!

The Decatur was designed by Space Needle architect John Graham Jr. in 1950. The recent restoration and upgrading of its 13 stories by Wysong Group (who also worked on Tobira and the Press) now feature 146 one-bedroom (starting at $189,950) and two-bedroom (starting at $269,950) homes. There are four floor plans to choose from, all homes sporting Brazilian cherry wood floors, plush carpeting, granite countertops and top-of-the line stainless steel appliances.

If you’re into green living, this building is a beauty. It has a Zipcar service plus a parking area for bikes and scooters. You’ll also be living in what’s ranked as Seattle’s third most “walkable” neighborhood. Want a place with views? From the ground floor where you enter from tree-lined streets, to the rooftop terrace with wraparound city, mountain and water views, there is beauty from top to toe. Is security an issue? You have a controlled access entry with CCTV surveillance. There’s even a live-in building manager.

But what’s really nice about The Decatur is that when you come home from a busy city day, you really feel as if you’re not IN the city anymore. Its First Hill location is in one of Seattle’s most established neighborhoods, which prides itself in keeping its streets quiet and safe. Neighboring buildings and homes are beautiful and carefully kept. Actually, it’s hard to believe that all this peace and quiet is sandwiched between two of the hottest areas in Seattle. To the north is the edge of Capitol Hill’s Pike/Pine neighborhood, and to the south is Downtown. Both areas have something for everyone, with a wide range of shops, restaurants, culture and nightlife.

The Decatur is located at the foot of Capitol Hill on the corner of Boren Avenue and Spring Street. Over 65 percent sold, The Decatur is ready for immediate move-in. Take advantage of their final sales release, with FHA financing* available. There’s also 3.5% down payment options, and closing cost credits available.

Want to check it out?  Contact us at this link!

NOTE: Seller reserves the right to change the product offering without notice. *Financing assumes 3.5% down payment (FHA) on a 30 year fixed mortgage with a 2-1 buy down by seller for 2.25% interest first year, 3.25% interest second year and 4.25% thereafter. Payment includes P&I and MI. (HOA dues and taxes not included). This is not a commitment to lend – certain restrictions and qualifications required. E&OE.

“Now’s The Time” – Pryde + Johnson Announces Condo Clearance Sale in Ballard and Greenlake

We have recently been given a press release from Pryde + Johnson regarding another bulk buy sales strategy for LEED Silver (targeted) built Hjarta in Ballard and Florera in Greenlake – units will be sold at up to 35% off original pricing in an alternative to auctions.

“We’re meeting the market on price and are committed to selling through as condominiums,” said Curt Pryde, principal of Pryde + Johnson and developer of both Hjarta and Florera Condominiums. “Homebuyers will also benefit from our preferred selection, FHA financing (3.5% down payment), today’s low interest rates and other limited-time incentives such as Federal tax credits up to $8,000 (for purchases contracted before April 30, 2010).”

As we understand it, several dozen sales have been generated to date using the sales strategy at The Decatur and Eleven Eleven East Pike. Rather than slowly lowering prices over a longer period of time (which seems systemic at many projects), Realogics was able convince the developer and their lender to explore more dramatic cuts in hopes of garnering quicker sales.  The block of sales also helps shore up FHA financing and unit appraisals.  In theory, this establishes a stabilized market value for the remaining sales while resolves a common concern amongst “wait and see” buyers that prices will drop further after buying.  Hjarta and Florera will be undergoing a similar strategy and should offer some great deals for those who take advantage.

Studios (578 – 598 sq. ft.) will start from $244,950
One bedrooms (614 – 921 sq. ft.) will start from $274,950
One bedroom plus dens (792 – 923 sq. ft.) will start from $314,950
Two bedrooms (1,037 – 1,447 sq. ft.) will start from $399,950
Two bedrooms plus den penthouses (1,331 – 1,578 sq. ft.) will start from $589,950
Three bedroom plus den penthouses (1,909 sq. ft.) will start from $799,950

Pryde + Johnson appears to be motivated to sell now so buyers can take advantage of the extended homebuyer tax credit, and today’s historically low rates.  Since rates will soon begin to climb, and the homebuyer tax credit will soon expire, these are exceptional opportunities for buyers who are interested in living outside the urban core, but within one of two prime urban neighborhoods.  The official sales release will begin on March 27 but you can preview in advance – open houses will be scheduled for each weekend or by appointment.  March 27th is the same weekend as Escala reintroduces sales at price drops and 5th & Madison auctions their remaining inventory so it should be a marketplace as buyers hunt down bargains.

PRESS RELEASE

Schedule a Showing

Disclaimer:  These projects are listings of Realogics Sotheby’s International Realty’s “special projects” division, which is affiliated but independent of the “resale” division co-founded by James Stroupe and Moira Holley.

Bulk Buy Sells 20 out of 30 Units Released!

Congratulations to Realogics for making an impressive amount of sales at The Decatur and Eleven Eleven East Pike with their Bulk Buy sales program!  Neither building had previously had any sales for the year.  Since releasing 21 condos at Decatur and 9 others at Eleven Eleven, 20 buyers have snatched up the opportunity.

Based on the 20 sales to date, [Sam] Cunningham (Managing Broker and Partner of Realogics Brokerage, LLC) estimates buyers purchased at prices that were between 25 and 30 percent off previous list prices, depending on the product. The pending block of sales are also helping unit appraisers by using an inter-building value matrix instead of relying solely on surrounding market comps. Third party comps alone may temporarily suppress unit values, given the increased activity of condo auctions and short sales within the marketplace.

If you have been considering the option of taking advantage of this program, please read the full press release and contact us for more info.

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: