Harvest Time in Seattle: Commercial Real Estate

We are currently experiencing a bumper crop of new and existing property changes in Seattle, and receiving national notice as well.  Let’s go through the latest on the commercial side:

7^th & Madison:  Nine stories, 204,000 square feet, zero tenants! But that may be changing. Rumors are that HAL Real Estate and Urban Renaissance Group have purchased the property and The Polyclinic may become the primary tenant.  

818 Stewart St:  DCI Engineers took advantage of their expiring lease in Bellevue’s Skyline Tower to move, occupying 16,000 square feet on 818 Stewarts’s tenth floor by the end of November.  A caveat is that DCI was the structural engineer of this building and will now be able to show their work, onsite, to potential clients.  Although 55 employees will be relocating to work in Seattle, DCI will still maintain a presence in Bellevue and is looking for other space.  818 Stewart has 14 stories, 238,000 square feet, and is 86 percent leased.

1301 Second Ave: Tacoma’s largest private employer, Russell Investments, bought the former 42-story WaMu Center on Second Avenue in 2009 and moved in 900 employees this fall.  What’s next for the company?  An outdoor sign!  In the works is an amendment to the City’s Land Use Code (Title 23) “to allow placement of wall identification signs in certain downtown zones on buildings at heights above sixty-five feet when tenants have a lease in effect for a minimum of 200,000 square feet of floor area in a single building.”  The City would still retain sign design approval.

1321 Seneca St:  Owned at the time by the now-defunct Barclays North of Lake Stevens, plans had been to turn this quarter-block of property into a 24-story tower.  Now a parking lot, its bank group recently put it up for sale.  Happily, representatives are now fielding queries from interested buyers at better than anticipated prices.  A sale is expected by year-end or by early 2011.

1501 E Madison St:  The former home of CC Attle’s bar is undergoing a bit of transformation. The Bullitt Foundation is going to turn the space into a six-floor, 52,000 square foot building called the Cascadia Center for Sustainable Design and Construction. Its goal is to be a “living building”, designed to satisfy all its energy, waste and water needs onsite.  It will headquarter Bullitt, plus provide office and commercial space for companies involved in the green building industry.  It also plans to position itself as a focal point for education and sustainable development awareness. Construction begins this winter, scheduled to be completed in early 2012.

224 Westlake Ave N:  The former Athletic Supply building was recently sold to Northwest Retail Partners.  Built in 1926, plans are underway to remodel the entire 32,000 square foot building, plus add a fifth floor penthouse. The penthouse will house Northwest Retail’s offices, and NRP plans to lease out the rest of the building.  

On the national front, the Urban Land Institute, in conjunction with PricewaterhouseCoopers, performs surveys and interviews with over 875 real estate investors on the country’s top 50 markets, then releases annual rankings and forecasts. For 2011, they ranked the Seattle Metropolitan area at No. 6 for commercial and multifamily investments.  When you take into context that Seattle was ranked No. 1 in 2009 and dropped to No. 8 in 2010, the climb back up is great news!  There’s more to come, and we’ll keep in touch.

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.

McGraw Square Renovation Underway

The McGraw Square renovations officially began on September 24. One of the smallest parks in Seattle, it is located near the Westin Hotel at the intersection of Fifth Avenue, Stewart Street and Westlake Avenue. This project permanently closes Westlake Ave between Olive Way and Stewart St to create a transit, bicycle, and pedestrian-friendly plaza at the current terminus of the Seattle Streetcar South Lake Union line.

The goals of the new, centrally-located plaza are to make walking and biking through north downtown safer and more comfortable, while improving the transfer abilities of the Seattle Streetcar, Monorail, light rail tunnel, and major bus routes. The project also seeks to better connect the South Lake Union and Denny Triangle neighborhoods to the existing retail core, offering a “sense of place” to help orient new housing and promote economic development.

Just follow the numbers. The McGraw Square Transit Mall renovations include:

1. A second streetcar platform to improve rider access to/from the new plaza

2. Integrated transit shelter/covered bicycle parking for up to 10 bikes

3. Landscaped rain garden to infiltrate majority of stormwater and reduce runoff entering the sewer system

4. Illuminated seat walls with signage, to act as gateway for Westlake Hub

5. ADA access, lighting, and seating improvements near the historic McGraw statue

6. Inlaid, energy efficient (LED) light tiles as part of a comprehensive dynamic, colored lighting scheme

7. Salvaged granite pavers for detailing, taken from overstock of original Westlake Park installation

8. New street trees to replace (two-for-one) those being removed near McGraw statue; new large specimen trees to anchor Westlake Ave terminus

9. Oversized curb ramp, utility connections to facilitate mobile food vending and plaza programming

SDOT is also considering converting 6th Ave between Virginia St and Westlake Ave to a two-way operation (and to relocate the charter bus zone), with the Westlake Ave to Stewart St approach reduced to a single southbound lane. The Seattle Streetcar and buses running along 5th Ave remain in full service during construction.

McGraw Square is named after John Harte McGraw. This grocer from Maine was a Seattle police chief, harbor master, fire warden, King County sheriff, and Washington State governor from 1893-97. The designer of McGraw Square and its completion date are unknown, but it was influenced by the famous park plan that John Charles Olmsted of the Olmsted Brothers firm in Brookline, Massachusetts drew up for Seattle in 1903. Their vision of the Seattle park system was to celebrate, showcase and protect Pacific Northwest landscapes while providing residents and tourists with park access and recreation.  

The McGraw project is also part of the City’s larger Center City Strategy to make Westlake one of three transportation “hubs” serving downtown (with King Street Station and Colman Dock). Construction of the plaza project is expected to be completed by Thanksgiving 2010.

Olive 8: Auction Results and Stats

Success!  Over 200 bidders filled a room at the Hyatt at Olive 8 on September 19 to try and snag a deal on 32 units from Floors 18 – 26 that were on the block. By day’s end, very happy new owners walked away with homes averaging 30% off the original price. Here’s a list of the sale action, sorted by square footage.

Sales are subject to seller acceptance and escrow closing.

We are fairly certain this information is accurate… if it changes, we will repost.  We continue to pride ourselves on accurate information.  During the auction, six units were removed from the auction (four 1-bedroom units, two 2-bedroom units).  As the auction progressed, the four 1-bedroom units returned for bidding. By the end of Sunday, all but four units had acceptable bids and the celebration began for those lucky buyers.  The remaining four units were short of the reserve bid.  The seller has a few days to decide what to do with those units.

Although it took an auction to do a significant move of inventory for Olive 8 management, the number of bidders that registered and appeared may be a sign that the Seattle real estate market is entering a more positive phase. In addition, over 1,500 potential buyers viewed the properties prior to auction, which could serve as a great base for future Olive 8 sales down the road.

The number of participating bidders also says something else about Olive 8. They confirm that Olive 8 is a special property, with a wonderful downtown location and a dizzying list of amenities including services through its downstairs neighbor, the Hyatt at Olive 8.  A little over 100 units remain for sale. Check out our website, olive8seattle.com for more details, then fill out our Contact link.

Belltown Art Walk on September 16th

The next Belltown Art Walk & More begins at 6:00 p.m. on Thursday, September 16^th.  Make sure you pick up a flyer as you stroll about. It will contain coupons good for discounts and 2-for-1 offers at Belltown’s most popular restaurants and bars.  We’ve grouped these by avenue for your convenience.  For a map and current event information, check out this link.

Western & Bell:  Mars Hill Church, 2333 Western Ave

1^st & Blanchard: Vain, 2018 1^st Ave

1^st & Blanchard: Gary Manuel Salon, 2127 1^st Ave

1^st & Battery:  Form/Space Atelier, 2407 1^st Ave

1^st & Broad: Allure Salon, 2915 1^st Ave

2^nd & Virginia:  Whisky Bar, 2000 2^nd Ave

2^nd & Blanchard: See Sound Lounge, 115 Blanchard St

2^nd & Blanchard:  Belltown Barber, 2219 2^nd Ave #A

2^nd & Bell:  Bedlam Coffee, 2231 2^nd Ave

2^nd & Bell: Roq La Rue, 2312 2^nd Ave

2^nd & Bell:  Damaged Goods, 2316 2^nd Ave

2^nd & Bell:  Stylus, 2321 2^nd Ave

2^nd & Battery:  City Hostel Seattle, 2327 2^nd Ave

3^rd & Wall: Belltown Video, 2500 3^rd Ave

3^rd & Cedar:  Street Bean, 2702 3^rd Ave

4^th & Bell:  Belltown Pull-Apart, 2308 4^th Ave

4^th & Bell:  Gilt Edge Society, 2312 4^th Ave

4^th & Blanchard:  Yellow Leaf Cupcakes, 2313 4^th Ave

5^th & Cedar:  Musadesign, 2617 5^th Ave

Denny & Taylor:  In.Fringe, 100 Taylor Ave N #A2

9^th & Westlake:  Art Not Terminal, 2045 Westlake Ave

9^th & Blanchard:  Eleveight Salon, 2130 Westlake Ave

9^th & Westlake:  Design Theory, 2132 Westlake Ave

Olive 8: Anatomy of an Auction

We’ve been telling you in previous posts how special the upcoming Olive 8 auction will be. Located in the heart of downtown Seattle, Olive 8 has amazing views and numerous amenities, all at once-in-a-lifetime prices. However, the clock is ticking… the auction is on Sunday, September 19^th, at 1:00 p.m. sharp but more importantly, you must be pre-registered by Thursday, September 16^th at 6:00 p.m. If you still have questions or even qualms about the auction process, so maybe our handy-dandy guide below will help:

Review the Properties – Check out our link at olive8seattle.com, where you’ll find details of the 34 homes from Floors 18 through 26 that are on the block. Under “The Auction”, there’s a .pdf with unit floorplans. Then, hit our big green contact button and tell us which ones you’d like to see. When we meet, we’ll first discuss what you’re looking for in a home, then physically tour the properties to see which best fit your lifestyle needs and financial means.

Financing – You must be pre-approved through one of two lenders, Bank of America Home Loans or Wells Fargo Home Mortgage. Even if you’re a cash buyer, assets must be verified through either of these two lenders. By doing this, you will know that everyone at the auction will have the ability to bid.  Have a pre-approved credit line ready and bring the letter with you.  If you choose to use either one of the lenders, then the seller is offering a $5,000 credit towards non-recurring closing costs (subject to lender guidelines, please check for details). Don’t forget that financing is subject to credit approval, loan document completion and property appraisal. Finally, you will need to bring a cashier’s check for $5,000 plus a personal check for the remaining balance of your earnest money.

Pre-Register – All buyers must be registered in order to attend and bid. The form is simple, and on our website under “The Auction” tab. On auction day, check in for your bidder package. The doors open around 11:00 a.m., but you should arrive no later than 12 noon. Your window to register is a now a short one…  forms must be submitted to the Auction Office prior to 6:00 pm on Thursday, September 16th.  You will not be allowed to register at the door.

The Auction Team – The auction will be conducted by Kennedy Wilson, an international real estate investment and services company based in Beverly Hills, CA. Assisting the auctioneer will be professional floormen to make sure that all bidders are recognized and all bids are reported. Floormen can also answer questions before and during the auction, including asking the auctioneer to pause if needed.  

Before Bidding Begins – The auction will start promptly at 1:00 p.m. with opening remarks summarizing terms of sale, bidding method, and any last-minute changes or disclosures. This only takes a few minutes, ending with the auctioneer conducting a practice auction session.

Be Ready To Bid – You wouldn’t think auctioning 34 homes would go by quickly, but it’s estimated that the entire event should only run an hour. Our meetings with you will also include your bidding strategy, and we’ll be at your side when your condo number is called.

Start the Bidding – Get ready to chime in with your price! If you make a mistake, just correct it with either the floorman or the auctioneer. The auctioneer will say “sold” or “high bidder” as soon as it’s determined the final bid has been made.  When you hear, “Going once, going twice…third and final call”, that’s the cue the auctioneer is prepared to announce a winner. He’ll most likely say something to the effect of, “Sold subject to seller acceptance”.  At that time the buyer will go to another room and sign a contract based on the winning price. Within the next few days, the buyer will know whether or not they’ve made the reserve price.  Seller has the option to counteroffer to meet its minimum reserve if needed. If this does occur, buyer does not have to accept the counteroffer.

The auction will take place at the Hyatt at Olive 8, 1635 8^th Avenue in downtown Seattle. Coincidentally, this is the base of the Olive 8 building and part of its great amenities package. Give our website a spin and call us right away!