The Seattle Condo Blog

According to the Daily Journal or Commerce, the Domaine Condominium development on Aurora Avenue is being offered for auction (Trustee’s Sale) on February 6, 2009 to the highest and best bidder. Intracorp, apparently, was unable to unload the project as apartments as it did with Expo62.

The article states a limited liability company affiliated with Intracorp is in default on a $22.51 million construction loan with KeyBank. They are also behind on a $11.6 million mezzanine loan through Residential Funding Company (RFC), plus interest and other fees. RFC is foreclosing on all its collateral for the loan.

Intracorp has been hit hard this year with dismal results of its downtown condominium strategy (Expo62, the Parc, Domaine and 1915 2nd Avenue) and, reportedly, reduced its staff.

The auction will take place at 9:30 AM at the King County Administration Building on February 6th, 2009.

According to the Daily Journal of Commerce, Intracorp has offered Domaine up for sale as apartments. The project is listed for sale on the Moran & Co. website, view listing here.

In response to questions about the listing, Intracorp said, “Domaine has not been sold and we are currently selling condos and townhomes” in the development. “However, Intracorp is evaluating market conditions and working hard to provide housing solutions in response to the demand.” It offered no other comment.

Also, Matt’s post and DJC article.

Not surprised as there’s been speculation on both Expo 62 and Domaine for several months now. While it does speak volumes about the current market, the sale of both of these projects as apartments actually helps the condo market in the long run. If Domaine does sell, that’s another 91 units off the market in addition to the 114 at Expo 62.

These events will also impact the other proposed projects that’ll ultimately strengthen the marketplace. Vulcan has shelved The Martin project at 5th & Lenora until the market improves and Murray Franklyn confirms that it’s 7th & Westlake project will not proceed as planned.

Update 8/13: I’ve been trying to obtain confirmation on the status of Domaine to no avail…seems Intracorp is keeping mum. I wouldn’t be surprised if Domaine joins Expo62 (Axis) and Moda given they’ve closed their sales office, removed signage, dummy downed the website and are media shy (not me…the DJC and PI).

Apparently it must be true when the DJC runs a feature article about developers dealing with the negative perception of being on Aurora. Here’s an excerpt related to the Domaine project.

Intracorp is using noise mitigation tactics for its 92-unit Domaine condo project now under construction just south of Canlis Restaurant. Like the Kauri project, it will have a single-loaded corridor on the Aurora-facing side to create a double wall between the units and Aurora.

Jay Janette, principal with Mithun, the project’s architect, landscape architect and interior designer, said there’s a “negative perception” of Aurora because of the traffic noise and emissions from idling cars. To mitigate the negatives, developers can construct with high performance but inoperable windows and high quality walls, he said, or use a single-loaded corridor, as Intracorp is doing. Once there is a “critical mass” of development that successfully mitigates the negatives, people will begin to appreciate the area’s positives, he said.