The Seattle Condo Blog | Seattle Condos and Lofts

It had been rumored for the past few months that Expo62, a new condominium project under construction in Lower Queen Anne, was going to be converted to apartments. Now, it seems to have come true. According to fellow Realtor, James Stroupe, who reserved a unit in Expo62, the building was sold to an out-of-state buyer. Thanks to Staci for the info.

While this is not great news for those who reserved units at Expo62 or the overall health of Seattle’s condo market, it does have a silver lining. It’ll result in an inventory reduction of over 100 units, thereby helping to normalize the market.

Related:
Seattle PI: Seattle Center condo project to be apartments

The Seattle Times reported today that Smith Tower’s owner, Walton Street Capital, has amended plans to convert the venerable landmark. The new proposal calls for converting the top 12 floors to condominiums with one unit per floor, roughly about 2,000 square feet each.

Read the full article at the SeattleTimes.com:
Smith Tower condos: Only the top 12 floors

As mentioned previously, the city had been considering an ordinance to ensure conversion developers notify lower-income tenants about displacement assistance or they would be fined. Last week the council unanimously passed the ordinance. Developers or landlords who fail to provide notice will be fined $100-a-day for every day they violate the ordinance. It’s a start.

On the heels of the Max conversion casualty, The Daily Journal of Commerce reported today that conversions are slowing down.

…fewer apartments are being bought for conversions in the region.

Dupre + Scott Apartment Advisors forecasts about half as many units will be purchased this year as last. The credit crunch and ensuing slowdown in home buying nationally is making lenders “less anxious” to lend to converters, said Mike Scott, a principal with the firm.

Additionally, it’s becoming more cost prohibitive due to the rising prices of apartment buildings, turning away potential developers from getting in on the conversion phenomena.

[A developer] is backing off now on buying apartment complexes here because prices “are in the stratosphere,…

Dupre + Scott’s research shows regionally the average price of units appropriate for conversion has jumped from $99,928 in 2000 to $145,591.

This has some positives. For tenants, fewer buildings will be purchased for conversion which will provide some comfort from having to deal with displacement. For the condo market, it’ll help to constrict excess inventory. On the other hand, it may provide fewer opportunities for first-time condo buyers as many of the new developments are focusing on the high-end market, at least in the city core.

A reader brought this to my attention. At first I was a little skeptical but have since confirmed that the Max Condo in Greenwood has pulled the plug and is reverting back to apartments.

It seems sales during the first three weeks did not meet expectations. Which is a bit surprising as Greenwood area condos sell very well. The new construction Sapphire Condo sold quickly and re-sale units from numerous Greenwood/Phinney condo projects rarely sit on the market long. I’m speculating prices may have been on the high end for Greenwood and constricting mortgage programs may have hit first-time buyers a bit harder than anticipated.

On the other hand, given Seattle’s low vacancy rates, the developer felt providing rental homes is the more sound option with the current marketplace.

The Marc Anna (website) will be hosting its grand opening this weekend, September 29th & 30th at 102 Galer Street on the top of Queen Anne.

Originally constructed in 1927, the Marc Anna features just 6 one-bedroom and one-bedroom + den condominium homes starting from the high $300,000s.

While the State seems unable to agree on a conversion bill, the Seattle City Council is taking baby steps to assist low-income tenants. Earlier this week, the council’s Housing, Human Services and Health Committee moved forward Bill 116022 that would fine developers $100 per unit per day if they fail to provide notice to low-income tenants that they are entitled to a $500 relocation assistance payment.

Seattle has seen a proliferation of condo conversions the past few years. Since 2004, approximately 3% of the city’s apartment inventory has been converted.

Stadium Lofts (website) is gearing up for its upcoming home sales this Fall. The Stadium Lofts project, located at 589 Occidental Ave South (map), will feature 85 single and multiple level loft homes within the historic 1905 building and its new addition.

Type of homes available

• Live/Work Lofts – 3 two-level live/work lofts with private entries, 16’10″ ceiling heights ranging from 1,050 to 1,400 square feet. Prices are expected to range from the $600,000s to $800,000s.
• Single Level Lofts – 15 units on the 4th floor with 10′ ceilings ranging from 500 to 1,000 square feet. A number of units will have private terraces. Prices range from $300,000s to $500,000s.
• Two-Level Lofts – 62 units ranging from 750 to 1,000 square feet. Homes on the 3rd floor features 16’10″ ceilings and original exposed brick. Prices range from $400,000s to $700,000s.
• Apex Homes – 5 units located at the apex of the flat-iron building. These homes, ranging in size from 1,000 to 1,500 square feet, feature large private terraces and most offer two master suites. Prices TBD.

Pre-Sale Information (Updated November 2007)

The Stadium Lofts team is still working on finalizing finishes and has elected to begin pre-sales in early 2008. They plan to host a preview event and provide more finite pricing information at that time. The reservations will be converted to a Purchase and Sale contract once a firm construction & completion schedule has been determined, during the 1st quarter of 2008.

Upon notification, buyers will have 5 days to convert the reservation to a Purchase and Sale and the earnest money deposit will increase to 5% of the purchase price. The earnest money deposit will be non-refundable.

The Stadium Lofts building is located at the apex of Occidental Ave S and Railroad Way S, just off 1st Avenue S. In the above photo, Qwest Field is seen in the background and the 1st Ave on-ramp to the viaduct is in the foreground. While the area may not seem hospitable to residential homes, the popular Florentine Condominiums is just a few doors away. In the longer-term, the stadium’s north parking lot will be redeveloped with offices, retail, apartments and condos.

Related Articles:

SCL’s Stadium Lofts
SeattlePI North Lot deal moves ahead
King County north lot news release

The 939 Oaktree condominium (939 N. 101st Street) is a recent conversion in the North Greenwood area by the Northlake Group who also completed a number of conversion properties in the Ballard area. Of 939 Oaktree’s 15 units, only four remain – 1 two-bedroom and 3 one-bedrooms.

The two-bedroom is 946 sq ft and available at $284,950. The one-bedrooms range in size from 677 to 764 sq ft and are priced from $239,950 to $284,950. The homes were nicely remodeled and much better than I had anticipated at this price level.

Home features include cherry cabinets, granite tile countertops, stainless appliances, washer/dryer, parking and balconies or private patio spaces. The building is quiet and solid, though homes on the East side may be susceptible to traffic noise from nearby Aurora Ave. Incentives include a $2,500 buyer bonus and paid dues through the end of the year.

The Novell Condominium (website) will be holding its grand opening this weekend at 901 NE 43rd St. from noon to 5 pm. The building is located in a residential area just off Roosevelt.

Novell features 36 studio and one-bedroom condominium homes that range in size from 332 square feet for studios to 670 square feet for the one-bedrooms. Prices are affordable ranging from $179,950 to $259,950.

The homes feature original hardwood flooring & molding, granite countertops, subway tile backsplash, shaker style cabinets, stainless steel appliances, on-site laundry, a Flex-car and leashed parking options and more.

And, rather uncommon for conversions, former tenants have purchased a number of the available units, which speaks well for the building and developer.

The building was originally constructed in 1926 as the Eloraine and was most recently known as the Carter Hall Apartments.

The proposal to convert Seattle’s venerable Smith Tower to condominiums is one step closer. The Seattle PI is reporting that the Pioneer Square Preservation Board has unanimously voted to approve the condo conversion proposal. However, it will still need approval from the city’s Landmark Preservation Board.

Read the full Seattle PI article.