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

October 1, 2009 by  
Filed under Decatur, Featured, Wysong Group

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

priceWhat 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

'The Dean' 1-Bedroom/1-Bath

'The Dean' 1-Bedroom/1-Bath

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.

decatur_view

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:
price_list

King 5 Reports on Speculated Transition in Market

Based on information posted a few days ago from statistics by Dean Jones at Urban Condominiums, King 5 also reported on how the credit crunch and rising construction costs is likely to reverse the market’s current buyer’s market trend. Watch the video below:

king 5 featured video

Condo Boom Bust or Wishful Thinking? Supply vs. Demand

April 27, 2008 by  
Filed under Downtown (MLS Area 701)

Many areas of the real estate industry (sellers, Realtors® and developers) have been scratching their heads wondering where all the buyer’s went. Rates are low, Seattle job growth continues to be one of the nation’s strongest, rental vacancies have declined dramatically, and local demand isn’t those of investors (flippers). So, has the market busted, or can we expect another hot trend in Seattle real estate?

Is there really any demand? We are constantly bombarded with media telling us that market time and inventory is increasing. That pendings and solds are decreasing. So are there really a lack of those willing and able buyers or, are they renting ever-increasing high priced rentals waiting until “the market to hit bottom.” What about the population growth? It’s certain that since the announcement of Amazon and Microsoft moving to downtown, along with the Bill and Melinda Gates Foundation, the desire for condominiums in the urban core is increasing. Another recent fact to consider regarding residentail real estate is the current boom in commercial space. With 5 million new square feet of commercial space, each 1,000 creates approximately 4 jobs! The picture for ‘demand’ is clear. A LOT of jobs are coming to downtown Seattle.

Is there too much supply? Were you planning on attending the symposium today? Many of the new developments are “postponed” or will never be built. The other half of the graph above (displayed below) gives a approximate representation of how many new residential condos we can actually expect.

Here’s an excerpt from Dean Jones at Realogics, Inc.:

Meanwhile, rising construction costs and a national credit crunch will continue to compromise new construction deliveries beyond 2010. These new projects are delayed by the “new rules” of real estate lending that is requiring more presales, more equity (lower leverage), and far more conservative development proformas. This all adds up to higher costs for the developer as well as the buyer, which burdens the further introduction of new projects to the market at this time. Specifically, unless a considerable amount of this proposed inventory enters the marketplace for sale in 2008 and provided it subsequently breaks ground by 2009, the current “buyer’s market” temperament will likely transition to a “seller’s market” as demand outstrips supply by 2010 or sooner.

Downtown Seattle Condo Pipeline Map

Seattle’s subsequent market has had the benefit to learn from what we’ve seen in Miami, Pheonix and Las Vegas. Investors who bought into a building with the intent to flip created artificial demand by buying out projects within a short amount of time. This in turn fooled future developers of the market’s actual demand. This is nothing in comparison to our small time “flipper” issue we’ve seen at 2200 Westlake and The Cosmpolitan.

What’s the outlook? As we move closer to occupancy dates, we’ll see more activity with presales. By 2010, more than 1,000 new construction sales are expected (which excludes resales). The urban lifestyle has become a more popular trend, gas prices are rising with no sign of stabilizing, rental rates are apparently affordable, and we have yet to see the tidle wave downtown’s new workforce. Higher construction costs more strict requirements for developers are causing them to require more presales before financing is even approved.

new condominium construction and sales

CLICK IMAGE TO ENLARGE

What’s next? Here are some indicators to watch for when judging what direction the market will go in:

  • JOB GROWTH – Amazon, Microsoft, B & G Foundation, WAMU
  • COMMERCIAL REAL ESTATE – New Commercial Construction, Vacancy Rates, Lease Rates
  • RESIDENTIAL RENTALS – Vacancy Rates, Average Rent
  • FINANCING – Condo Developers/New Projects, Condo Buyers, Credit Crunch
  • MEDIA – Cosumer Confidence, Election (historic optimism of new President), National vs. Local Real Estate, National vs. Local Economy
  • INTANGIBLES – Gas Prices, Energy Costs, Commute Time, Environment, Lifestyle, Safety, Government/Urban Growth Management

This is a very important time for Seattle. As mentioned before, we are optimistic about where the market is today and were it will be tomorrow. Expect much more on this topic over the next couple of days.

Graphs provided by Realogics, Inc.

Big Week for Downtown Real Estate – Buyer’s Moving Off the Sideline

February 12, 2008 by  
Filed under 1521, ESCALA, Gallery

Dean Jones with Realogics (award-winning marketing catalyst for residential and mixed-use real estate) informed us of some great news regarding new construction sales. News and media headlines have sidelined buyers this season and new construction sales are generally not accounted for in Seattle’s NWMLS pending and sold statistics. So here’s the inside scoop:

  • 3 homes have already sold at 1521 for an approximate $3 $9 million.
  • There has also been a number of sales made for GALLERY.
  • Equinox chalks a sale.
  • Escala still consistent in sales.
  • Bravern in Bellevue has also made an approximate dozen sales just over the weekend and they’re booked with appointments all month.

However, Dean also informed us that credit and construction costs require new construction high-rises to be priced in the $850 to $900 per square foot to pencil. Hint: an exception may be AVA.

new construction sales chart by realogics

ESCALA Takes Home National & Regional Real Estate Awards

January 11, 2008 by  
Filed under ESCALA, LEXAS Companies

A division of the National Association of Home Builders (NAHB), awarded ESCALA a reported 22 National and Regional Real Estate awards at The Annuals held by The National Sales and Marketing Council. ESCALA is also nominated to win Gold Awards at the black-tie gala in Febuary in Orlando FL.

“Since this projects inception, every aspect of ESCALA has been designed to be the best,” says John Midby, principal of Seattle-based LEXAS Companies.

Nationals Silver Awards

  • Attached Community of the Year
  • Best Attached Home Plan
  • Best Signage
  • Best Website for a Community
  • Best Color Ad for a Single Project
  • Best Brochure for a Single Project
  • Best Graphic Continuity
  • Best Overall Ad Campaign

Regional Awards

  • Best Graphic Continuity
  • Best Brochure for a Community Priced Over $1 Million
  • Best Direct Mail
  • Best Black-and-White Advertisement
  • Best Color Advertisement
  • Best Radio Commercial
  • Best Television Commercial
  • Best Special Promotion
  • Best Signage
  • Best Interior Merchandising of a Model Priced Over $2 Million
  • Best Attached Home Plan
  • Best Overall Ad Campaign

Individual and Council Awards

  • Sales Team of the Year – Jan Cadice, Sonya Wetzstein, Marni Granston, Jennifer Virnoche and Stephen Dartnell.
  • Marketing Director of the Year – Stacy Jones (vice president of condo marketing firm Realogics Inc. and marketing director of ESCALA).

There’s still a few left for purchase. I got one. Click for Listings