Just received confirmation from one of the principals behind the Moda Condominium project in Belltown. The project, which will be completed in just a few months, will in fact be converted to apartments.
Moda received quite a bit of attention when it first came on the market as most of the units sold out during the first weekend of pre-sales. Though, recently, a number of those early adopter opted out as the finished product was smaller than they anticipated and those homes were small to begin with. (Update: according to a comment from buyer, the letter that Moda sent out indicated that many people had backed out.)
Terrible news for those who wanted an affordable option for downtown homeownership. Fortunately, this could be a boon for Marselle (near the Seattle Center) which anticipates price points to begin at a lower price-per-square foot than Moda.
Update 8/13: Seattle PI got around to it…interesting comment here:
“The market and the financing conditions for condominiums have really taken a drastic turn,” said developer G. David Hoy, head of HMI Real Estate Inc. “The vast majority of (Moda’s) buyers decided not to proceed with the purchase of their unit.”
Some buyers found they could no longer get a loan, particularly for second homes or investment units, while others just got cold feet, Hoy said. “Because the vast majority have bailed out on us, we have no choice now but to turn it into a rental.”
Update 9/8:
Moda units have hit the Seattlerentals.com website, and they’re incredibly pricey.
- Studios: 251 to 474 sf, $1,225 to $1,695
- 1-bedrooms: 467 to 546 sf, $1,250 to $1,825
- 2-bedrooms: 530 to 631 sf, $1,925 to $2,175
If you’re looking to experience Belltown living, there are better rental deals with rental condo units.
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August 9th, 2008 at 10:57 pm
This is going on a lot with Boston apartments. There was a condominum project called Harborview in the Charlestown navyyard in Boston that went apartment — as well as another called the Avenir, which Archstone properties took over. I guess its a good idea, make some money and then wait to sell at the right time.
August 11th, 2008 at 3:19 pm
I thought this project was supposed to be sold out?
August 11th, 2008 at 8:41 pm
i wondering if anyone else is upset as i was when i found out they rescind the offer to convert as i was ready to move in. I’ve already purchased some new furniture and got rid of my older and larger furniture in preparation for hte move. not very happy here,considering litigating. Please contact me at montchou@hotmail.com if interested
August 12th, 2008 at 7:39 am
Monte,
You’re probably better off considering they are converting the units to apartments. This tells me they either overspent during the construction to the point where it became almost a loss in the building (therefore, creating a builder that doesn’t have deep pockets to fix things down the road) or they were lying about how many units they sold (which you don’t want to move into a vacant building). Financing is extremely tough, and even though they said they didn’t want investors, my guess is that a few more people than they realized were investors as well.
Either way, you are better off just forgetting Moda ever exsisted and find a condo in another building downtown… helping soak up some excess inventory, and creating a stronger market as a whole.
Buildings to think about, depending on your budget: Belltown Court, Royal Crest, Alexandria, Veer Lofts (South Lake Union), and Carrara (Lower Queen Anne).
Jon
August 12th, 2008 at 9:16 am
Monte,
Check your Purchase Sale Agreement closely. They almost always give the developer an out if enough units are not sold. Jon is right, you are better off not being in a mostly empty building. This project looks like it was really mis-managed. How do you miss so badly on sq ft? Based on units sold, it looks like Rollins Flats may be next to convert.
August 12th, 2008 at 3:48 pm
Hi, I am a condo owner, but I am now actually looking for an apartment to rent. Does anyone have any information on pricing/availability of Moda or any similar condo to apartment conversions?
Thx!
August 13th, 2008 at 1:56 pm
Grace - per info from a DJC article today, Moda has not yet set rental prices. The only other condo-to-apartment that is currently leasing is Axis (formerly Expo62). You can view pricing here.
The next condo-to-apartments to be completed will be Landes on First Hill, which will be leasing by the end of the year.
August 13th, 2008 at 2:54 pm
Monte, Jon, Kent -
I don’t know if you guys are aware, but the housing market is really slow. It isn’t about the developer making mistakes, or not having deep enough pockets; it is about buyers who can no longer qualify for loans, banks that can’t afford to support housing loans, current owners who no longer have the equity in their 1st homes to act as collateral for the 2nds, and the new homeowner who is afraid of market downturns.
This is the downside of the pre-sale; any buyer who wasn’t 100% ready (as you, Monte clearly were), will take the slightest reason to back out of the sale.
If the developer didn’t have deep enough pockets, they wouldn’t be able to hold the property as apartments - they would have to have a fire sale for the property itself.
August 13th, 2008 at 3:50 pm
Good points Jen. And I realize the market is slow, but it still seems like the developer caused some of his own undoing. When a complex sells out in a weekend as was reported, you can’t do better than that. Then to provide a beautiful escape clause to buyers by not getting the square footage right is something I have not seen before. And waiting until the closing process starts without disclosing these discrepancies is inexcusable. Seem like they were hoping no one would notice. Backing out of a sale and getting deposits back was made way too easy by the developer. While I think you are right about some buyers not qualifying for loans, it seemed like there were many others ready to close.
August 14th, 2008 at 9:26 am
All good points, however I also think something fishy is up..this was all to easy.. sell out 3 days, loop hole with sqrft..40 units on market at last min.. then they were not available for sale the next week, told they sold out again…I’m wondering if this was an opportunity for asmart investor to use others time and money for 2 years to complete project, then bait and switch at the end for investiment group. to get easy financing, and get around the city growth planning codes…
August 19th, 2008 at 10:15 pm
Thank you, Ben! Very Helpful.
August 31st, 2008 at 3:09 am
Does anyone know when they will set the prices for Moda Apartments?
September 9th, 2008 at 2:45 pm
Updated the post with Moda rental prices. Ouch.
Thanks Ashley.
September 13th, 2008 at 12:12 am
thats’ crazy!