Happy Birthday to Us! Reflections on Year One

February 23^rd marked the first anniversary of the Stroupe Group’s partnership with Realogics Sotheby’s International Realty, and we’re very happy with how things are going!

Since opening for business, Realogics has doubled its roster of brokers, earned several high-profile project accounts and recently opened a second office on Bainbridge Island.  Its brokerage participated in approximately $120 million in real estate transactions during the past year, representing all price points including record sales in both condominium and single-family categories in Seattle. While very engaged with the local real estate community, its global reach provides visibility to Seattle-area properties worldwide. 

As for the Stroupe Group… well, we have great news, too.  We enjoyed our best year ever in real estate.  We have also been able to bring a broad international exposure to our team.  The best example of this was our recent 10-unit buy for a foreign investor in Olive 8!  We are very proud and honored for the accomplishments we’ve enjoyed over the past year. 

We gained market share in 2010 by focusing on distinctive properties across all price segments.  It’s a new economy to be sure, but success has been built upon Sotheby’s 266-year heritage, and exercising the Brand gives our office unparalleled consumer awareness and reach.  Inventories range from affordable in-city resale condominiums to a new waterfront estate with an asking price of $28.8 million. Trendgraphix confirms our success, as you can see by the following charts.

As these graphs show for 2010, we were the leading brokerage for property listings in downtown Seattle and among the most accomplished sellers of new construction.  We should note that while Teambuilder Jls handles sales for the Escala property, Realogics manages sales for Four Seasons Private Residences, Fifteen Twenty One Second Avenue, and Olive 8.  We believe that the housing market began to stabilize in 2010 and will continue through 2011, helped in part by a noted rise in relocating buyers from out-of-state or internationally. 

Our collective presents a vertically integrated real estate solution comprised of market research, product development, full-service marketing and sales.  We are very proud of our one-year mark in the Seattle real estate arena.  We invite you to learn more about Stroupe Group and what we can do for YOU by contacting us at urgent@stroupe.com

New Venture with Realogics Sotheby’s International Realty

First off, we want to thank not only Windermere for the years of service and support, but would also like to thank our many peers who have expressed their congratulations towards our new and exciting merger with Realogics and Sotheby’s International Realty:

Thank you Jeff!
Windermere Yarrow Bay
UrbanCondoSpaces.com

Thank you Matt!
Redfin
Urbnlivn.com

Thank you Ashley!
NW Property Group LLC
UrbanAshley.com

Thank you Ben!
John L. Scott
SeattleCondosAndLofts.com

We’ve been working hard towards this new venture for approximately a year now.  It was a carefully thought decision for both James Stroupe and Moira Holley to leave Windermere and become Founding Directors, but the opportunity to work alongside Dean Jones with Realogics and recently appointed designated broker Sam Cunningham (previously with Windermere On-Site) under the Sotheby’s International Realty Brand was too hard to resist.

Our interest in teaming up with Dean Jones & Sam Cunningham at Realogics goes back before the collective choice to affiliate ourselves with Sotheby’s International Realty.  Our brokerage will now be able to offer clients international exposure on Sotheby’s International Realty global website with many other marketing platforms at our disposal.  However, we of course are not limiting ourselves to just luxury properties.

“As the new construction pipeline closes out we’ll see a sustained surge in resale activity,” said Sam Cunningham. “We monitor supply and demand closely and we’ll apply these insights for buyers and sellers at all price points and product types.”

Over the next few days, we will be making our final transition and adding all of our current sellers to our new international marketing programs laid out by Sotheby’s International Realty.  We are excited by this next chapter and we look forward to working closely with all our friends at Windermere (thank you Dave Hale and Claudia Case), plus the other firms in this wonderful industry.

Additional Press:
Puget Sound Business Journal
MSN Money
RIS Media

http://www.realogicssothebysrealty.com/

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.

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.

The Parc in Belltown Sells Out!

Realogics announced the final sale of the last remaining unit at The Parc (with the exception of those being resold/flipped).  The press release stated that this will be the first time that a condo project has sold out since 2007!

“The sellout of any tower is always a milestone but it’s far more significant today because it means that we’re finally digesting the standing inventory,” says Sam Cunningham, Managing Broker for Realogics Brokerage, LLC. who is the listing broker at The Parc. “We’re especially proud to have sold out using traditional sales and marketing efforts – it’s a win-win for buyer and seller in what has been a challenging marketplace for many, but not all projects downtown.”

This is certainly big news since the there’s still left over inventory from other new construction projects.  The release points out that the last place to sell out was 2200 Westlake–also marketed by Realogics.

New Lake Union Condos at Wards Cove: The Enclave

While developers are stalling on new projects, Trinity Real Estate, Inc released plans for a new 21-unit lakeside community today at Wards Cove–Lake Union.

SEATTLE, WA. (June 24, 2009) – Officials at Trinity Real Estate, Inc. today released plans for their newest project “The Enclave”, a 21-unit lakeside community nestled within the 5-acre redevelopment known as “Wards Cove” on Lake Union. The coveted site is considered by many the last of its kind on what is now a largely built-out waterfront in King County. Its developers say that the project is designed like a horizontal high-rise from a quality standpoint but unlike a high-rise, The Enclave can be developed in distinct phases to help with construction financing. The announcement arrives at a time when few, if any, new developments have commenced since the onset of the commercial credit crunch in the summer of 2007, two years ago.

“It’s one of those rare never before, never again opportunities that developers cherish,” says Michael Yukevich, Investment Manager and partner in Trinity Real Estate, Inc. “It’s an irreplaceable location and an unparalleled opportunity for our homebuyers to own the quintessential Seattle lifestyle.”

Amazingly, construction will start this year, and occupancy is planned for 2010!  The new lakeside community will consist of three-level, two bedroom plus den homes ranging from 2,500 to more than 3,000 square feet.  Homes will come with private garages and options include private elevators.  Additional amenities include access to the Wards cove Marina Club which includes a fitness center, conference facility, guest suite, and full-service moorage.

“The Enclave provides a compelling alternative to high-rise condo living by putting the penthouse right on the lakefront,” says Nick Glant, the listing agent with Northwest Group Real Estate. “For those that desire the sea, city and sky – we’ve got your address.”

Introductory pricing will start just over $1 million and Dean Jones (president of Realogics, and who will be marketing the boutique address) feels that the announcment and decision to move forward is a “savvy development practice right now.”  In the press release, Jones points out that today, new homes need to offer more unique attributes to make a difference.  For Seattle boaters, this may be a perfect chance to get an in-city home that has yet to come to our market–and never expected to come available again.

Realogics Acquires OnSite Assets

President and CEO of Realogics, Dean Jones, is announcing their recent acquisition of Windermere “OnSite” brokerage assets, which has been responsible for over 1,000 presales during the condo boom in downtown Seattle and Bellevue.

“An independent brokerage provides us flexibility to explore all opportunities while ensuring both continuity and the highest level of professionalism for our developer clients, the real estate community and the homebuyers for which we serve,” said Dean Jones, President and CEO of Realogics, Inc.  “Realogics will now expand its offering beyond new construction to provide a broader spectrum of marketing and real estate services under one roof.”

Jones also announced that Sam Cunningham, prior Vice President of Windermere Builder Services, will be appointed as Designated Broker.

“We recognize the approaching dearth of new construction projects in the supply pipeline – so this acquisition is well timed for us”, said Pat Grimm, a co-owner of Windermere OnSite and the designated broker (and sole owner) of Windermere Real Estate / Capitol Hill, Inc. “Realogics is an exceptional marketing and sales enterprise and they are well positioned to manage their brokerage operations moving forward.”

Through personal experience with our clients, Jones and Cunningham have done a superior job in handling our clients’ needs throughout the transaction process, and we are excited to see a company like Realogics joining the team of boutique brokers in Downtown Seattle.  In the meantime, OnSite will retain their builder-oriented franchise agreement with Windermere Real Estate. Realogics has listed both Fifteen Twenty-One Second and The Parc, and helped Windermere Onsite assign agents to seller’s in-house sales teams at Escala, Gallery, Equinox and Bravern Signature Residences.  Realogics will also continue its relationship as a marketing partner with both Escala and The Bravern. The firm also launched an updated website.

New Research Spells Out Downtown Condo Market

Data compiled from the Northwest Multiple Listing Service by Seattle based real estate group Urban Condominiums, LLC. is showing that local in-city condos are doing fairly well compared to regional and national housing trends.  The report credits a lot of Seattle’s above average condition to low inventory of new construction.  Sales Director for Urban Condominiums, LLC, Marco Kronen, also points out that not only has there not been much built, but no new construction development has broken ground since the rise of the commercial credit crunch during summer 2007. With no plans for further downtown development until 2010/2011, the market could very easily make a fast change in favor for sellers.  New listing activity year-over-year was also reported as steadily decreasing since May of 2008.

Here is a few more of their findings:

• Fewer active listings remained on the NWMLS at year-end 2008 versus 2007 (14% less inventory active today)
• Pending sale activity slowed by 29% in 2008 with fewer presales of new construction as buyers “wait-and-see”
• Overall inventory absorption in 2008 retreated only 13% versus 2007 (partially due to presales from prior years)
• While median condo prices below $600,000 decreased by 5%, median prices above $600,000 increased by 32%
• Median prices year-end in aggregate (all price points) dropped by 2.35% – less than a quarter of regional decline
• Factoring all new construction not listed on NWMLS, median prices are actually much higher in 2008

Another blurb in the report suggests that agents who specialize downtown and developers of new construction have noticed more buyer activity since the election.  We can even vouch for that ourselves.  However, some of their survey data shows that some buyers are attempting to time the market bottom.

“Finding the absolute bottom of any market is only ever known in hindsight,” says Kronen. “While price is always a factor downtown, I think preferred selection and securing favorable interest rates will become a larger issue in 2009.”