Inventory increased as expected, up 8.7% over January and 1.9% above last February. However, the inventory supply rate dipped to 6.2 months of supply. When factoring in the phantom inventory of unlisted new construction condos, the rate rises to 8.8 months of supply citywide. Though, in the Belltown/Downtown area, the rate shoots up from 7.8 to a 21-month supply.

The number of pending transactions rose 51.1% over last February and 11.7% above January, fueled by the robust sales of affordable condos and the tax credit incentive. Closed sales also increased 18.4% compared to last February, but down slightly from January.

In respects to the chart below, the two principal condo marketing firms have misclassified buildings on Capitol Hill (1111 E. Pike) and lower Queen Anne (Marselle) in downtown/Belltown, skewing the Area 701 figures. Adjusting for the misclassification, Area 701’s median price was $400,000 last month instead of $360,000. Therefore, year-over-year median price change should be -3.6% rather than -13.3%.

Source: NWMLS. Though some figures were compiled independently and were not published by the NWMLS.

The developer of the Hjarta Condominium in Ballard and Florera at Green Lake, Pryde + Johnson, will reintroduce condo sales within two partially leased buildings by offering current tenants and new buyers discounts up to 35% off original list prices. Inventory will be officially released for sale on March 27, 2010 as part of a bulk sales approach where the seller offers a volume sales discount in exchange for quick closings.

“We’re meeting the market on price and are committed to selling through as condominiums,” said Curt Pryde, principal of Pryde + Johnson and developer of both Hjarta and Florera Condominiums. “Homebuyers will also benefit from our preferred selection, FHA financing (3.5% down payment), today’s low interest rates and other limited-time incentives such as Federal tax credits up to $8,000 (for purchases contracted before April 30, 2010).”

Anticipating the market correction, Pryde restructured debt to lease unsold homes upon delivery in 2009 – many with an option to purchase. All leases expire in 2010 and will not be extended, he said. “We’re offering unparalleled product at a tremendous value,” said Pryde. “This is reflected in attractive monthly payments and provides for capital appreciation – the law of supply and demand will put upward pressure on values over time.”

As a first phase release, 12 homes will be available for sale at Florera along with 18 homes at Hjarta (30 homes total). Additional homes will be offered for sale as they become available and after current residents consider their purchase option.

• Studios (578 – 598 sq. ft.) will start from $244,950;
• One bedrooms (614 – 921 sq. ft.) will start from $274,950,
• One bedroom plus dens (792 – 923 sq. ft.) will start from $314,950;
• Two bedrooms (1,037 – 1,447 sq. ft.) will start from $399,950
• Two bedrooms plus den penthouses (1,331 – 1,578 sq. ft.) will start from $589,950

Realogics Sotheby’s International Realty will represent Pryde + Johnson in their bulk sales program. The local brokerage firm drove dozens of sales at Eleven Eleven East Pike on Capitol Hill and The Decatur on First Hill using a similar volume sales approach instead of an auction.

“We help sellers find the market and offer buyers auction-like prices without the gavel,” said Sam Cunningham, broker and partner in Realogics Sotheby’s International Realty. He points to numerous auctions in the Seattle area, which advertise minimum bid prices up to 60% off but after minimum reserve prices and prevailing market demand, result in sales discounts 20 – 35% off previous list prices. “Recently announced condo auctions and price drops in downtown Seattle will help draw buyers off the fence and into the greater marketplace,” he added. “Considering this highly competitive sales environment and perishable tax credits – it’s a great time to be a buyer.”

More than a year after the $120 million Four Seasons Hotel and Private Residences opened to considerable fanfare, a dozen firms that designed and built the ultraluxury project say they haven’t been paid in full.

They have recorded claims totaling more than $34 million against the downtown Seattle building. The largest lien, for $23.7 million, was filed in August by Lease Crutcher Lewis, the project’s general contractor.

Two Four Seasons subcontractors and lien claimants — Redmond millwork installer Surgent and Silverdale mechanical contractor Stirrett Johnsen — filed separate suits in King County Superior Court last month.

The lawsuits name Lease Crutcher Lewis, SHG, each owner of the building’s posh condos and a host of other defendants, and seek judgments totaling more than $1.8 million against Lewis and two other contractors.

Classically beautiful, this elegant French Provencial inspired Fleur De Lis beckons you home. The large one-bedroom corner home exudes its vintage 1927 character with original hardwood floors, leaded glass windows, coved ceilings, archways & rich period details.

This home features a spacious living room, a large bedroom, gorgeous built-ins with window seats, abundant closets and a charming kitchen with its original cabinetry, accents and ice box.

Natural gas heated central boiler provides radiant heat for those cool winter nights while large windows let in a pleasant breeze on warm summer evenings. Fleur De Lis is a small community of 16 homes and 8 garage spaces, with parking available by wait list at just $75 per month. Other amenities include gardens and an on-site laundry room.

Located just off Capitol Hill’s vibrant Pike/Pine district, you’re close to restaurants, cafes, shops, pubs, art galleries, theatre venues, grocery & transportation. There’s easy access to downtown and to I-5 and I-90.

Click on thumbnails to view full-size images:

…95 percent of construction and demolition waste was recycled. It also has energy efficiencies such as double-pane low-E glass windows and high-efficiency lighting in common areas; and water efficiencies such as dual-flush toilets, low-flow showerheads and limited landscaping that requires little irrigation.

To celebrate, OPUS Northwest, is giving away a Smart fortwo car with purchases that close by May 31, 2010.

The certification is well deserved and the homes are beautiful, but I just don’t think buyers will really care about smart cars cluttering up the garage. On the other hand, for many owners, 1521 is a second residence so it might be nice to have some wheels to scoot about town in.

www.1521second.com

The folks at Escala and TeamBuilder have been busy redefining the Escala experience during the past few weeks. Now, the $370 million condominium development is set to officially reopen its sales center on March 27th, though it sounds like they’ll soft open on March 15th according to rep with TeamBuilder.

Out of the 80 or so pre-sale buyers, 6 have closed and about 35 are expected to continue with their purchase at this writing…that’s around 15% of the units sold.

The most significant change to the project is pricing with homes now starting as low at $384,000 for a 952 square foot one-bedroom (B layout), $699,000 for a 2-bed + 2-bath home (C layout) and from $1,574,000 for a 3-bedroom 2,442 square foot home. I spoke with a pre-sale buyer who’s unit was reduced 28%, which is approximately the figure that’s been floating around from other buyers. However, I’m told the percentage will vary by layout/location.

In looking at Escala’s first release pricing sheet dated 7/2006, the “B” layout plan units ranged from about $500,000 to $800,000 (before they starting raising prices) and now they’re between $384,000 to $550,000. The “C” plan homes now range from $699,000 up to $999,000 for a 20th floor unit. Back in 8/2006 those homes were priced from $800,000 to $1,600,000. The prices today are well below those during the market’s peak in 2006/2007.

Pricing has dropped low enough that the project has applied for FHA approval. This is striking considering how the property was originally marketed – very upscale, a private social club with hugely expensive memberships, homes with private elevators and vestibules – to potentially being FHA eligible.

The other significant change to the project is Club Cielo, which will remain but in a far more limited form. Rather than a fully staffed and managed social club and restaurant with outside membership, the facilities remain (bar, kitchen, dining room, wine grotto and dining space, terrace, theatre and spa/fitness area) but only for use of residents on a pay-per-use system. Residents may schedule fitness trainers and masseuses or cater their own parties in the club’s dining room and bar. As a result, homeowner dues have been reduced from $.85 to $.58 per square foot.

There are eight levels of underground parking. All homes come with parking and there will be extra spaces available for purchase as well. The wine grotto has 271 storage lockers available with each locker holding two cases. I’ve heard conflicting info, but most likely they will be available to residents on a first-come, first-served basis.

The spa and fitness areas are spacious with professional quality equipment, two resistance lap pools, hot tub, 4 or 5 massage rooms and a yoga studio.

The building and homes are gorgeous. The amenities impeccable. The pricing, fairly attractive comparatively. Considering new construction condos offering homes at the similar price points – Enso, Olive 8, Volta – it’s hard to beat Escala for its overall quality, finishes, uniqueness, views and level of amenities.

Condominium websites:
Escala
Enso
Olive 8
Volta

When I last spoke to developer Gerry LaCaille in 2007, the original Alex concept reflected the booming condo market – upscale, customized and highly personalized catering to various buyer profiles. Today, it’s another story. The downtown condo market has struggled with the proliferation of high-end condo buildings creating a tough environment in which to bring a new development to market. Fortunately, like Enso and Escala, Volta has repositioned itself to appeal to a larger segment of buyers. Volta will still offer an array of layout and size options appealing to a wide range of buyers but with more standardized finishes allowing it to enter the market at reasonable price points.

Why the name Volta, you ask? Two reasons. First, to provide a fresh start with a new marketing & sales team. Second, it’s a marketing play on the name. The building has been renamed in honor of Italian physicist Alessandro Volta, known for inventing the electric battery. Alessandro pays homage to the project’s original name, Alex. The building is situated just two blocks from the Battery Street tunnel and the center of Volta’s medallion logo bares a likeness of the top of a modern battery.

Volta Condominium features 34 home homes with 20 different floor plans within its compact 8-level design. The ground floor will contain a commercial space and a live/work loft with one-bedroom, one-bedroom + den and two-bedroom homes above ranging in size from 626 to 1,095 square feet. There are two penthouses that will offer soaring 15′ ceiling heights, skylights, spectacular views and large private roof top decks.

The one-bedrooms on the west side and the two-bedroom north facing homes appear to have the most appeal, offering good living space and views. The 4th floor north facing units also have private decks.

The building and home interior features include:

• Two color and finish schemes – Cognac (light) and Slate (dark)
• Quadruple glazed four layer windows for noise reduction
• Vast floor-to-ceiling windows providing ample light and views, in most units
• High ceiling heights, up to 15′ in the penthouses
• Oversized stained wood doors to individual units
• Hardwoods in the entry, hallways and kitchen; carpet in living and bedrooms
• Whirlpool Gold stainless appliances with Bosch and Viking upgrade options
• Custom Euro Concept kitchen cabinetry
• Slab silestone counters with under mount sinks

It’s unfortunate that the living area will be carpeted particularly when many of the homes have an open kitchen / living design. Having hardwoods throughout would provide a more seamless finish. Perhaps that will change as the floors are laid. In order to keep prices down several items are not included with purchase, namely washer and dryers and parking. Aside from the penthouses, which comes with two parking spaces each, parking is available on a first-come, first-served basis for $25,000. At this writing, storage is still being worked out. It may be included with every home or offered as an option.

Prices start from $299,950 for a one-bedroom and range up to $1,095,950 for a large west-facing penthouse shell. The project has applied for FHA approval as 28 of the homes are within FHA’s loan limit. More pricing info to come shortly.

Amenities are limited to the main lobby and a roof top deck, though that helps to keep HOA dues down which is expected to be around $.44 per square foot. The roof deck, located on the east side of the building will include a dog run area and green space.

The sales center is slated to open at the end of April / early May with first occupancy expected in July. Though only a handful of units are presently listed in the MLS, all homes are available for pre-sale purchase.

Website: www.VoltaOnBell.com

The minimum bid starts at $195,000 for 808 sq ft one-bedroom units on the 17th & 18th floors. Those were previously priced between $399,000 and $415,000. The highest starting bid is $995,000 for a 1,957 sq ft penthouse that was previously listed at $1,995,000.

The auction will be held on March 28, 2010 at the Grand Hyatt Seattle (721 Pine Street) starting at 1:00 PM. Homes can be viewed at 5th & Madison daily from 10:00 AM to 5:00 PM.

As with previous auctions, Kennedy Wilson will be hosting a “How to buy at auction” seminar the week prior on Sunday, March 21st. This is a great way to learn about the auction process and participate in a mock auction. I’ve been to a few of these and they’re sort of fun.

For more information, including units available, floor plans and auction documents, please visit: www.5thandMadisonAuction.com

If you need guidance through the auction process, we’re here to help.

Sotheby’s International Realty Affiliates LLC today announced that Realogics Brokerage, LLC, in Seattle is the newest member of its luxury real estate network.

The firm, owned by Dean and Stacy Jones of Realogics, Inc., now will do business as Realogics Sotheby’s International Realty. Sam Cunningham will serve as the designated broker and co-owner. The firm will service the Greater Seattle area in western Washington.

“The executive team behind Realogics Brokerage has built a strong foundation in Seattle based on core market knowledge, marketing excellence and unparalleled client service over the past decade,” said Michael R. Good, president and chief executive officer, Sotheby’s International Realty Affiliates LLC. “Their success is derived from the exceptional properties they represent and the quality of their agents and staff.”

Currently located at 217 Pine Street, Suite 700, in Seattle, the brokerage will relocate to a new retail storefront it owns at 2715 First Avenue in downtown Seattle’s popular Belltown neighborhood. The firm has 17 licensed sales associates, which include top-producing agent teams managed by Moira E. Holley and James H. Stroupe, as co-founders of the company’s new Resale division. Resale services will be offered to buyers and sellers of condominiums, town homes and single-family residences throughout the region.

“Realogics Sotheby’s International Realty draws upon market research and consumer trends to accurately position its properties. By understanding our clients’ goals and carefully analyzing the fundamentals, our agents are experts at realizing their objectives with proven results in all market conditions,” said Dean Jones, “Our team has been recognized with more than 125 regional and national awards for sales and marketing excellence. Having affiliated with the Sotheby’s International Realty brand, we now have access to a global marketplace, providing our agents and our clients with every possible advantage available in the industry.”

Realogics, through a separate operating company, offers specialization in new construction project marketing for condominiums and town homes, condo conversions and strategic repositioning services for bank-owned real estate including bulk sales and foreclosure reintroduction in outlying areas. Adding a Resale division and gaining a world-wide marketing platform is timely, according to Sam Cunningham.

“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.”

While Jones cites a significant increase in demand for in-city residences from interstate and international buyers over recent years, he’s diversifying. “It’s a key buyer pool but it’s not the only one we’re focused on,” he said. “Like many peers in our industry, we’re evolving to meet the demands of a dynamic marketplace.”

In order to sell the remaining units, we have decided to retain the services of Kennedy Wilson, Inc. and utilize their dynamic auction marketing process. On Sunday, March 28, 2010, 18 units of the remaining inventory will be offered for sale. The company will begin marketing the units the weekend of February 27th.