This special event features free day passes and special discounts for The Seattle Condo Blog readers on club membership, personalized training packages, dietary supplements, exercise equipment and more. Readers of TSCB who join the club on December 17th will also receive a free gift from Epicenter Fitness’s Mati Bishop.

Already a member? Existing members of Epicenter Fitness can take advantage of special pricing as part of the club’s member appreciation day.

Epicenter Fitness features more than 25,000 square feet of dedicated fitness area with four specialized studios and 180 group exercise classes a month including heated yoga, cycling, cardio kickboxing and a variety of strength and conditioning courses. The club also features the best line-up of personal trainers in downtown Seattle who provide customized programs tailored to provide a means for their clients by focusing on their nutrition, cardio fitness, dietary supplementation and resistance training.

For more information about the open house or Epicenter Fitness, please contact Mati Bishop at 206.587.2673.

Click to download flyer:

The number of active listings dropped by 72 properties to 1,338, a 5.1% decline from October and the fewest number on the market since January. Compared to November 2007, the number of listings was down 4.2%. Condo inventory levels will likely continue to decrease contemplating seasonal factors, reuse as rentals and seller concerns about falling values in the short term.

Sales activity, on the other hand, have slowed considerably reflected by a 60% drop in the number of properties going under contract, 111 last month compared to 278 in November 2007. As a result, the inventory supply rate rose sharply into double-digit territory to 12 months, ensconcing Seattle deep in a buyer’s market.

Going forward, the continual economic meltdown, employment security concerns and general uncertainty will keep many buyers at bay, further depressing the condo market. Condo sellers will need to adjust their expectations accordingly if they hope to lure buyers.

However, we are seeing new buyers come off the fence, predominately investors but also potential homeowners, who are enticed by falling prices and better mortgage terms. Mortgage rates have been decreasing and for well-qualified buyers, at this writing, the 30-year fix rate is now in the low 5’s with expectations that it could drop into the 4’s. For those well-positioned to purchase, there are good opportunities available considering the depressed values, historically low interest rates and buyer incentives.

With the sales volume so low, there is a possibility the NWMLS median price stats may improve in December and January. There are two factors for this. First, the completion of three luxury developments - The Four Seasons, 1521 and Olive 8. With their higher sale prices, the median price is likely to inch up, particularly for downtown (MLS Area 701). Second, condo sales that would depress values, i.e. those sold at auction, won’t be included in the NWMLS stats as they’re sold outside of the multiple listing service. While the omission of the auction sales may skew the stats, historically, most new construction properties haven’t been contemplated in the NWMLS stats either.

West Seattle’s stratospheric inventory supply rate is the result of only 3 properties going under contract last month while the number of active listing increased by 49 (161 actives divided by 3 pendings).

Currently, 21 two- and one-bedroom homes are available for sale and are move-in ready.

The two-bedroom units range in size from 750 to 800 square feet and are priced between $150,000 and $170,000. The one-bedroom units are 590 square feet are priced between $125,000 to $140,000.

Home features include:

• Two color schemes - bronze or natural
• Granite tile backsplashes and countertops
• Frigidaire stainless steel appliances
• Armstrong maple cabinets in Natural and Café
• Hardwood, Frieze carpet & porcelain tile floors
• Front-loading washers and stackable dryers
• Patio or deck
• Common parking areas

27th Street Station is a gated and landscaped community that’s close to downtown Tacoma, the UW campus and I-5. The sales center (located across the street at 27th & MLK Way) is open Friday thru Tuesday from 11:00 am to 5:00 pm. A $4,000 buyer bonus is also available to those utilizing the preferred lender. For more info: www.27thStreetStation.com.

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This inviting home features large South facing windows creating a light-filled, warm interior that’s accented with exposed brick walls, timber ceiling & reclaimed Douglas Fir floors. The richly appointed modern kitchen features mahogany-stained oak cabinets & Inca Basalt tiled countertops and is equipped with GE Profile stainless steel appliances including a gas range.

The home’s industrial loft character includes high ceilings with exposed duct work and piping. Trace Lofts is in the center of the revitalized Pike/Pine triangle and is close to everything - entertainment, nightlife, shops, cafes and bistros.

Offered at: $315,000
Unit info:  615 sq ft, includes extra storage and assigned parking
Pet friendly: Yes
MLS#: 28185785

For additional info and photos, please click here or contact us.

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Additional information and photos

This property is listed with TSCB’s Ben Kakimoto & Barb Andersen.

With the opening of the new Seattle Four Seasons Hotel and Residences in downtown, news have been plentiful.  The 21-story $150 million project includes 147 hotel rooms (levels 3-10) and 36 uber-luxurious condominium homes (levels 11-21).

Project details:

• 11 unsold condo units range from 1,300 square feet to more than 7,000 square feet. Prices range from $2 million to more than $15 million — an average of around $2,100 per square foot.
• Hotel room rates start at $365.
• Fran’s Chocolates has opened in one of the two available commercial spaces. Four Seasons veteran Kerry Sear, former chef and owner of Cascadia in Belltown, runs Art Restaurant and Lounge, the hotel restaurant.
• Hotel features include a business center, 4,900-square-foot ballroom, five meeting rooms, a fitness room, 6,000-square-foot spa, and an outdoor pool and fireplace.
• The first condominium owners moved in earlier this month.
• The new public stairway between Union Street and Western Avenue has 103 steps. 
• The ownership group’s managing principals include John Oppenheimer, CEO of Columbia Hospitality; former Seattle Mayor Paul Schell; and Tom Alberg, managing director of Madrona Venture Group. Other investors include Bruce McCaw and the Muckleshoot Indian Tribe.

Linkage:

The Four Seasons Seattle website

Four Seasons delivers a jolt of urban energy - DJC

How Four Seasons returned to Seattle - DJC

In the lap of luxury at Four Seasons - Seattle PI

Four Seasons Grand Opening Photos: Amenities - Stroupe Condo Blog

Photos from 11/14 Broker’s Event:

Model Home Unit

View of terrace from 11th floor model home:

Hotel room:

The $1 million floating stairway:

The citywide condo median price was $287,450 last month, an 8.82% drop compared to October 2007 and the lowest its been over the past 24 months.  Keep in mind, all this indicates, is that for a 31-day period in time the median price last month, based on 164 units sold, is 8.82% less than the same 31-day period last year, which was based on 324 units sold.  Median price is that point where half the units sold is above and half is below, and last year there were 51% more units sold.   In October 2006 the Seattle condo median price was $284,000 based on 272 units sold.

The number of active condo listings also declined last month to 1,410 units.  That’s 6.2% fewer compared to September and a 10.4% drop compared to October of last year.  Yet, even with fewer listings, the inventory supply rate (active listings divided by pending sales), the key figure used to measure market condition, increased to 8.9 months.  The higher the number of months, the more entrenched we are in a buyer’s market.  The supply rate was most impacted by the sharp decrease in the number of units being purchased.  The 157 pending transactions last month represented a one month drop of 30% in the properties going under contract and a 44.5% drop compared to October 2007.

The supply rate is exceptional for Seattle and we’d have go back more than a half dozen years, if not a decade, to find rates this high.  But, just to provide some perspective, the condo inventory supply rate in Miami is 80 months.  You’ll definitely get screaming deals in South Beach but probably not in Belltown.  I mention this as I’m seeing, more so now, a greater disparity between buyers (as well as sellers) perception of the market and the reality of the market.  And, I think that’s attributed to growing levels of disappointment and frustration among buyers.  There are buyers who’ve overstated the softness of the market, expecting that offers 30% below asking is fair and that sellers will jump.  While the market is heading south, it hasn’t collapsed to such a degree that a 30% loss in value will be taken seriously by sellers, who also have the opportunity to take advantage of the strong rental market.  Though, there will likely be cases in which such bargains can be had, even in the city center.

Price trends are most notable when viewing the figures in different areas of the city with downtown and NW Seattle fairing better.  Again, the figures below are just a snap shot of the month of October and are not necessarily indicative of the market as a whole.  Year-to-date, the Seattle condo median price is just 0.8% below the same 10-month period last year, though prices will likely continue to fall for some time.

Here’s an overview of FHA benefits and requirements. The following is only a summary about the program and should not be considered exhaustive. Although, this provides a good starting point for buyers, for more concise information regarding FHA, please consult your loan officer.

Benefits of FHA loans:

 

• A minimum investment of 3%. This can include a combination of borrower paid down payment and closing costs, or gift funds. Most conventional loans today require 5% down or greater, not including closing costs. Some costs are excluded such as discount points, prepaid items, seller paid closing costs, etc. This rate will increase to 3.5% effective January 1, 2009.
• No minimum FICO requirement, making loans available to those who don’t have high enough FICO scores for a conventional loan.
• More lenient qualifying ratios of 31% front-end (gross income / PITI) and 43% back-end (gross income / PITI + other monthly liabilities). The conventional loan qualifying ratios are 28% and 36%, respectively. FHA allows buyers to use a higher percentage of their income towards housing costs.
• People with bankruptcies may qualify. For Chapter 7, borrowers may be eligible two years from the discharge date. For Chapter 13, borrowers may be eligible while in repayment status.
• Allow for seller concessions and contributions up to 6% of the sales price. This is above and beyond the buyer’s 3.5% contribution. Examples of seller constributions include closing costs, prepaid expenses, discount points and interest rate buy-downs.
• Cash reserves are not required, except for 3 or 4-unit properties.
• Gift funds are acceptable. All funds can come through via a gift; the gifter must be someone close to the buyer such as family, significant other or friends with a justification letter.
• Loans are assumable, provided the prospective buyer qualifies.
• There is no pre-payment penalty.

Specific to FHA:

FHA loans are subject to a maximum amount depending on location. For King, Pierce and Snohomish Counties, the maximum loan amount is $567,500 through December 31, 2008 (as part of the housing stimulus bill). Thereafter, the maximum loan amount will likely be around $506,000.

FHA requires two types of mortgage insurance premiums (MIP) - up-front and annual. The up-front MIP is 1.75% of the base loan amount and can be added to the total loan amount or paid in cash at closing. The annual MIP is termed annual but paid monthly. On a 30-year fixed the premium is 0.5% of the base loan amount, which is applicable for a minimum of 5 years and cancelable when LTV reaches 78%. Two important notes regarding the annual MIP: 1) even if the LTV drops below 78% the buyer must wait 5 years before they can cancel the MIP, and 2) it cannot be canceled for condos.

One loan limitation. FHA only insure loans for principal residences, so buyers are limited to one FHA loan at a time. There are exceptions for relocation, increased family size, divorce and if the borrower is a non-occupant co-borrower.

Who is eligible for FHA?

• U.S. citizens
• Permanent resident aliens
• Non-permanent resident aliens - must have an SSN and hold a valid visa or is eligible to work in the US as evidenced by an EAD issued by the U.S. Customs and Immigration Service. Acceptable visas include H1, L-1, E-1, TN, A Series and G Series.

FHA is not available to non-citizens who do not have lawful residence in the U.S. or individuals with diplomatic immunity.

FHA Enhancements:

As a result of Congressional reform actions this year, several enhancements were made to the FHA program. The FHA appraisal requirements were relaxed, the required $150 seller fee is no longer necessary and processing and underwriting were streamlined and standardized. Other changes include the expanded qualifying ratios, the increase in borrower investment from 3% to 3.5% (delayed) and a change in the up-front MIP percentage.

FHA and Condos:

For condominium purchases the condominium development must be approved by HUD in order to be eligible for FHA loans. To view a list of approved condos, click here. In Seattle, there are currently 325 condominiums that are HUD approved, though the list may not be up-to-date. However, FHA spot approvals for condos are becoming increasingly utilized, primarily for resales. Lenders can receive a case-by-case spot approval provided the condo meet certain qualifications, which does limit the number of condos that are available under the program. For spot approvals, generally the development must be at least 51% owner occupied, 90% of the units have sold, the HOA has existed for at least 1 year, must have been converted for at least 12 months (if a conversion), plus a number of other requirements. While there are some hurdles, it is an often overlooked mortgage option and worth looking into.

Fortunately, developers are paying heed. New developments like Thornton Place applied for HUD approval and expects to receive acceptance shortly, if not already. Developers of a number of conversions have also applied for HUD approval as many now meet the guidelines.

Given the ever constricting conventional mortgage loan availability, FHA is becoming an appealing option for many buyers, particularly here in the Northwest. For more information or questions about FHA, we recommend buyers speak to a mortgage loan officer who has experience with FHA loans.

Here’s a few recent FHA resources from the ‘net:
- Let FHA Loans Help You, the official HUD/FHA website
- A Solution for FHA Buyers Searching for a Down Payment, The Mortgage Porter
- FHA is waiting to give you a loan, The Seattle PI
- FHA financing SHOULD be KING - If agents are ready, The Seattle Specialist

The number of active listings reversed its recent declines, increasing by 12 properties, or 0.08%, over August. Though, for the first time in years the number of active listings fell below the prior year’s figure. There were 1,503 actives in September ‘08 compared to 1,531 in September ‘07, a year-over-year decrease of 1.83%. Now, that’s just 28 properties, but it’s significant when you consider that in January there were 512 more active listings compared to the prior year. Given current market trends, though, it’s not unexpected. For many sellers, it makes more sense to ride out the downturn by taking advantage of the stronger rental market.

The number of pending transactions (under contract in escrow) showed improvement last month, reflected by a 14.3% increase over August. The year-over-year result improved as well. In August ‘08, the number of properties going under contract was just 55% of those that were under contract in August ‘07. In September, the number of pending transactions improved to 85.5% of the previous year’s level.

The improved pendings rate and falling inventory helped to reduce the inventory supply rate (absorption rate) to 6.7 months. It’s still a buyers market, but we’re seeing a little more parity in areas - Capitol Hill, Queen Anne and Downtown. Downtown’s supply rate actually dropped last month (compared to September ‘07) but that can be attributed to pendings at Gallery, particularly previously unrecorded pre-sales that just popped-up as pendings last month. To Gallery’s credit they are recording pendings and solds, something many developments haven’t done (more on this later).

September will likely go down as an anomaly. It had begun to show signs of improvement, which may have been the result of the Fannie Mae / Freddie Mac takeover. That news helped to spur just a little more confidence and briefly lowered mortgage interest rates. Going forward, the recent economic crisis, both nationally and locally, will wipe out the gains made last month. In all likelihood, we’ll see a downward movement in the number of active listings, median price and pending transactions through the remainder of the year.

With Veer, Vulcan seeks to emulate a trendy industrial loft feel with open spaces accented with heavy timber beams, concrete and metal. The six-story building contains 99 homes with three distinct home plans - flats, lofts with a flexible space and two-level full lofts.

Prior to the TCO, our only glimpse of Veer was through the rather limited kitchen vignette at the SLU Discovery Center. And, honestly that single vignette provided an underwhelming impression of Veer, especially when compared to Vulcan’s other under-construction projects - Enso & Rollin Street.

I had the opportunity to tour Veer this week and I must say that it exceeded my expectations; partly because the finish materials are higher quality than originally sampled. And, also because the interior layouts exhibit an efficient use of space. Though, there were a couple of odd quirks. The in-unit exposed sprinkler pipes were not symmetrically installed. There may be a building code reason for this, but visually it was distracting. And, in the common stairwells, the sprinkler pipes hang below the ceiling decreasing overhead clearance, which is only an issue if you’re hauling large items up and down the stairs. At least in two flexi-lofts units I toured, the access point to the loft area was hindered by the ceiling beams that effectively decreased the height of the opening. I’d be hard press to visualize the flexi-loft space as anything other than storage. But, that’s fine. There’s more than ample living space on the main level.

Inside, the light colored concrete floors on the main level and over-sized windows provided more than ample ambient light. In the flats, a 3/4 height kitchen wall allows light to pass through to the sleeping alcove. The top-level full-loft homes are impressive with its soaring 16′ ceiling height, multiple decks and territorial city views. Curiously though, to access the private outdoor space (top-floor units) you’ll need to step out through a window opening, which is smaller than shown in renderings.

Veer Lofts has a number of units available offering an excellent array of home options, primarily flexi and full-lofts. There is only one flat still available, unit #207 that’s being offered at $404,950. This is a 751 square foot unit with windows on three sides offering views of downtown and Lake Union.

The flexi-lofts, located on the 4th and 5th floors, range in size from approximately 600 to 740 square feet and are being offered between the upper-$300,000s and upper-$400,000s. One note about the flexi’s, the stated square footage does not include the loft space, which would add an additional 250 to 350 square feet. The full-lofts, located on the 1st and 6th (top) floor, range in size from approximately 807 to 1,073 square feet. The 1st floor homes start from the upper-$400,000s while the top floor homes begin in the mid-$500,000s.

An on-site sales office and staged model homes will open to the public beginning Thursday, October 9th. The sales office hours are 11:00 AM to 6:00 PM.

Veer Lofts Versus …

Three other recently completed new construction developments provide homes with similar layouts to Veer. These include Madison Lofts, Gallery and Mosler Lofts. Here’s my impression on how they compare to Veer.

Madison Lofts
Madison Lofts is a much smaller building with only 20 loft homes compared to the much larger 99-unit Veer. All of Madison Lofts’ homes are multi-level full-lofts with 16′ ceiling height, on-par with Veer’s full-lofts. Homes at Madison Lofts essentially start from the upper-$400,000s, though two larger units with expansive outdoor space begin at just under $1 million.

With a few exceptions, the interior layout and square footage between the two projects are quite similar. But, Madison Lofts scores more points for better construction (concrete/steel vs. wood frame), a more polished interior with better quality finishes and more usable, larger exterior spaces. Veer gains points for its central location, in the middle of the yet to be fully realized SLU district and close to downtown. Madison Lofts, on the other hand, is tucked way next to the arboretum, a good 15-20 minutes from downtown.

Gallery Townhomes
The Gallery condominium in Belltown is in the final stages of completion with residents already moving-in. At one point Gallery offered “SkyLofts”, two-level loft units on the upper floors, but eventually replaced those with single-level flats. Fortunately, for those interested in loft living, Gallery did retain its ground floor loft-styled townhomes. Though, these are aimed towards a different demographic and are larger, ranging in size from 1,000 to 1,195 square feet. They’re also priced quite a bit higher, between $622,000 and $740,300.

Gallery is a concrete and steel building located within the established Belltown neighborhood, so it has an edge over Veer in that respect. With its refined interiors, it lacks the urban industrial character of Veer and Mosler. Gallery offers a greater variety of home options which will appeal to a more diverse homeowner base as well.

Mosler Lofts Townhomes
The concrete and steel constructed Mosler Lofts, also located in Belltown, offers similar ground floor loft-style townhome units. Mosler has a more industrial aesthetic compared to Veer, with exposed concrete walls and ceilings and exposed HVAC ducts, but does have higher quality finishes and more common amenities.

Presently, only one of the five loft-townhomes is available. It’s a 962 square foot home offered at $579,000, which competes directly with Veer’s top-floor lofts. Although, Mosler has a superior build quality, more amenities and located in an established area, on price, a top-level Veer unit is a compelling option. Veer’s top-floor lofts offer city or lake views, private decks and a greater sense of security.

Veer Lofts is located in Seattle’s most aggressive urban renewal and reinvention projects, South Lake Union. Led by Paul Allen’s vision, SLU is actually an amalgamation of numerous entities that represent diverse interests - educational and research institutions, market-rate and low-income residential development as well as commercial/office developments. Local companies setting-up shop in SLU include Group Health, UW Medicine, Rosetta, Tommy Bahama, Amazon, Microsoft, Weber Thompson and NBBJ. Additionally, Microsoft is expected to be the principal tenant of the 2201 Westlake office building (Enso).

Back then, there were contentious debates among local residents, conservationists and mall owners about developing the south lot and Thornton Creek which ran beneath it. In 2002 the Appeals Court overturned a lower court decision and ruled that the water running below the lot was not Thornton Creek, thus opening the door for development. But, more debate and lawsuits followed. It wasn’t until 2004 when numerous stakeholders reached an agreement that plans for development moved ahead.

Fast forward.
Today, Thornton Place, is rising like the phoenix out of the south lot asphalt ashes. When fully completed by the end of Summer 2009, Thornton Place will feature a 14 screen & IMAX theater, retail and restaurants, 266 apartments, 121 condos including 12 live/work lofts, a 143-unit senior living development by ERA Living and an uncovered Thornton Creek channel.

The Thornton Place urban village is one of only five projects in the state participating in the LEED ND (neighborhood development) pilot program which strives to create a compact, walkable and vibrant mixed-used neighborhood. Additionally, the developer, Lorig Associates, is expecting to achieve a LEED Silver certification for green building practices.

Key dates ahead:
   Apartment rentals begin - April 2009
   Cinema and retail open - May 2009
   ERA Living’s Aljoya opens - Summer 2009

Condo sales begin.
The first structures to finish will be the condos, which began sales this past weekend. Thornton Place offers a variety of floor plans to fit most everyone’s needs, including studios, one- and two-bedroom flats, two-bedroom townhomes and live/work lofts.

One thing that struck me as I toured the units was the sheer size of the homes compared to their downtown counterparts. Even the smallest homes are huge. The studios start from 600 square feet, some with 9′ 10″ ceiling heights, and include a large sleeping alcove, walk-in closets and a defined dining area. The other floor plans range up to 1,364 square feet in size.

Home features and amenities include:

• Two color palettes to choose from
• Various ceiling heights, up to 14′ in select top floor units
• Natural Maple or Kempas microstrip hardwood floors in living area, plus porcelain tiled flooring in kitchen and bath
• Striking polished slab granite countertops in kitchen and bath, with porcelain tiled surround
• Wenge or cherry veneer cabinets
• GE appliances including stacked washer and dryer
• Large, oversized windows
• Patio or deck space for most homes
• Heat and glo gas fireplace in most homes
• Gated entry after hours, plus parking and extra storage
• Community room and lounge area, 24-hour accessed fitness facility and a business/conference center, shared with the apartments

Currently, 62 condo units are available for purchase ranging from $299,000 to $589,000. On a per square foot value, the condos are among the priciest in North Seattle. So, what’s the benefit of spending a more for a piece of Thornton Place - location. An urban village in its own right, Thornton Place is part of the larger Northgate urban village that includes various transportation options including two park-and-rides, ample retail, restaurant & entertainment choices, and numerous business and community services. Plus, Thornton Place will be home to a diverse 600 residents.

While the condos are market rate, the apartments will include both market rate and workforce housing units. The workforce housing units will be available to residents earning 80% of King County’s median income.

The condo sales center is open daily from 11 am to 6 pm, enter parking garage from NE 100th Street. For more information about Thornton Place, visit:
- Thornton Place
- Thornton Place Apartments
- Aljoya (ERA Living)

images courtesy of Lorig / Thornton Place