The Seattle Condo Blog | Seattle Condos and Lofts

Pontedera Condominium – Downtown / Central

The Pontedera Condominium, situated just south of Downtown Seattle at 827 Hiawatha Place just reduced prices significantly on a number of units. The price drops range from $10,000 up to nearly $60,000 per unit! Good thing, too, since there’s only been 18 closed sales out of 102 unts, with only 2 sales in the past year, per NWMLS & county records.

It’s a shame really since Pontedera was nicely designed and accented, plus it’s conveniently located to downtown, Capitol Hill and the International District. Home prices start from $174,900 and there are several incentives and programs geared to first-time and lower income home buyers, including down payment assistance, property tax exemptions for qualified buyers and no HOA dues for a year. Its worth checking out.

View available Pontedera Condo homes for sale

1111 E Pike Street – Capitol Hill

The Tom Kundig designed 1111 E Pike Street Condominium is down to the final three homes for sale. The uniquely designed boutique condo building is located in the heart of Capitol Hill’s trendy and vibrant Pike Pine Triangle. Homes start from $314,950. Own for less than comparable Cap Hill apartments rent for!

View the last remaining 1111 E Pike condos for sale

Hjarta Condominium – Ballard

Ballard’s green constructed concrete and steel Hjarta Condominium reports they are now over 75% sold. Per NWMLS records, Hjarta closed 25 units, just over 30% of its homes in 2011.

Hjarta is located at 1530 NW Market and is one of only two new constructed condominiums in Ballard. Hjarta’s new home prices start from $264,950.

View Hjarta condos for sale

Marselle Condominium – Lower Queen Anne / South Lake Union

The Marselle Condomium report they have sold 100 homes, or 75%, since opening, with 21 home sales in 2011. Marselle features a variety of floor plans ranging from open one-bedrooms to 2-story three-bedroom penthouses with soaring ceilings.

Marselle is located at 699 John Street in the shadow of the Space Needle…a great place to call home for those who work in downtown or South Lake Union. Home prices begin from $199,990.

View Marselle condos for sale

Danielle Condominium – Ballard

Ballard’s other new construction condominium, the Danielle, is down to its final three homes for sale — 2 one-bedroom units and a two-bedroom. Located at 5803 24th Ave NW, it’s close to Ballard’s many shops, restaurants and attractions. The remaining homes range from $219,950 to $479,950.

View Danielle condos for sale

Olive 8 “Spring Event”

Olive 8, a downtown Seattle condominium, has just launched a spring sales event offering some pretty good incentives for buyers:

• No closing costs
• No HOA dues or club fees for the first year
• Interest rates from 1.5% for qualified buyers from Metlife Home Loans

One bedroom homes at Olive 8 start from $395,000 with two-bedrooms homes from $825,000. The spring sales event runs through May 31, 2011. View available Olive 8 condos listed for sale.

Trace North

Located in the Pike/Pine district of Capitol Hill, the Trace North development sold another two homes since our last update, leaving only 8 units available – a mix of open one-bedroom, one-bedroom and two-bedroom homes. View available Trace North units listed for sale.

• Open one-bedrooms start from $254,950
• One-bedrooms start from $354,950
• Two-bedrooms start from $399,950

Eleven Eleven East Pike (1111 E Pike)

A few weeks ago someone asked me if I knew of any lease-to-own programs at new construction condo buildings. Other than Enso’s program for Vulcan’s current renters I hadn’t heard of any. Well, it seems that Eleven Eleven has a lease-to-own program and they already have three homes optioned under that program.

Eleven Eleven is located in Capitol Hill’s Pike/Pine district, around the corner from Trace North, with homes starting from $229,950. View available Eleven Eleven homes listed for sale.

1521 Second

Since our last update, 1521 Second had two additional condo sales and two closings. Presently, the luxury downtown Seattle condo tower is 77% sold. The upscale building has sold more $1+ million homes than all other new construction condo building since 2007. View available 1521 Second homes listed for sale.

Decatur Condo

First Hill’s Decatur Condominium is over 85% sold with one-bedroom homes starting from $187,950 and two-bedrooms from $264,950. Buyer incentives includes no closing costs and interest rates from 3.375% through the preferred on-site lender. The building is FHA approved that offers a low 3.5% down payment option for buyers. View available Decatur units listed for sale.

1350 Alki

This boutique waterfront building along Alki, sold another in the past two weeks and is down to its final unit for sale, a three-bedroom home presently offered at $559,950. View unit for sale.

Disclaimer: With exception of 1350 Alki, condos mentioned were advertisers at time of publication.

For this week’s condo digest I’m doing something a little different – highlighting the Facebook pages of current condo developments that are for sale. All of these pages were created and are maintained by the marketing/sales teams so they can get out of date when a development changes marketing firms. Though, for the most part they’re up to date with project and pricing updates, photos and neighborhood happenings.

In my opinion, the best are (1) the Verdeaux page with its great resident interaction, (2) the homeowner testimonials on Marselle page and (3) Trace Lofts/North’s fantastic Capitol Hill community updates.

1111 E Pike (withering away) – Condos on Capitol Hill.

7800 Plaza (current) – Condos on Mercer Island, now 50% sold.

Bellevue Towers (current) – Condos in downtown Bellevue.

Celine Place (current) – Townhomes in North Seattle.

Danielle (current) – Condos in Ballard.

Decatur (never got going) – Condos on First Hill.

Harvard & Highland (starting to fade) – Condos on Capitol Hill.

Marselle (current) – Condos near the Seattle Center.

Olive 8 (withering away) – Condos in downton Seattle. However, Hyatt at Olive 8 page is going strong.

One Main Street (current) – Condos in downtown Bellevue.

Point Edwards (current) – Condos in Edmonds.

Pontedera (current) – Condos in Seattle.

Sylvan Ridge (current) – Townhomes in West Seattle.

Trace Lofts & Trace North (current) – Condos and lofts on Capitol Hill.

Verdeaux (current) – Condos in Bothell.

And, you can find The Seattle Condo Blog on Facebook, too!   By the way, I tend to post more on our Facebook page than I do on the blog, so consider “liking” us to get more condo updates, news articles and community information.

This week’s condo wire digest – Gallery buyer promotion, 1521′s milestone, Escala’s up to 50 closings, Eleven Eleven looks to close out, Hjarta and Decatur keep on going.

Gallery Condominium

The Gallery Condominium in Belltown (2911 2nd Ave) has reintroduced a 3% buyer bonus, up to $10,000 maximum, for homes purchased by October 31, 2010 and closed by November 30, 2010. Additionally, open one-bedroom home buyers may select either a slider or a closet combo build out.

Gallery is now 75% sold with prices starting from $239,000. The development is FHA and VA approved. www.liveatgallery.com

1521 2nd

Downtown’s luxurious Fifteen Twenty-One Second Condominium (1521 2nd Ave) reached a milestone with its 100th closing; the building is 70% sold.

1521′s large upscale homes, which overlook the Pike Place Market and Elliott Bay, are available starting from $1 million. www.1521second.com

Escala Condominium

The Escala Condominium reported they’ve just closed on their 50th home with 80 sales total (30 units in escrow). So, they’ve sold 30% of the building and are 19% closed. No bad considering the competition from Olive 8 and Enso. Escala is FHA approved. www.somethingischangingatescalaseattle.com

Eleven Eleven East Pike

Eleven Eleven (1111 E. Pike St) is making a push to close out the development with its final 10 homes. Prices now start from $239,950. The 27-unit Tom Kundig designed condo building fits snuggly in Capitol Hill’s effervescent Pike/Pine Triangle neighborhood. www.1111eastpike.com

Hjarta Condominium

The LEED Silver certified green constructed Hjarta in Ballard (1530 NW Market St) is now 50% sold. Unlike other recent Ballard condo developments, Hjarta is green constructed with a mind towards energy and water efficiency as well as indoor air quality. Further, Hjarta is a concrete and steel building, not wood frame like most of the other newer Ballard condos. I know a number of people have commented about the higher prices at Hjarta compared to other developments, but it has a superior construction quality, which may save $$ over time. The development is FHA approved. www.hjartaballard.com

The Decatur Condominium

Slowly but surely First Hill’s Decatur Condominium (1105 Spring St) keeps on closing with 3 sales in the past week. The building is now 70% sold with homes starting from just $189,950. The Decatur is part of the New Home Council’s Fresh Ideas Tour. www.ownthedecatur.com

The Enclave :: Eastlake / Lake Union

The Enclave is hosting an open house this weekend to coincide with Opening Day of boating season on May 1st. The Enclave is part of the Wards Cove master plan community that’s comprised of townhome-styled condos starting from $1.3 million with occupancy expected in 2011.

Ruby Condominium :: Eastlake

Ruby is down to its final three units that are priced between $284,500 and $304,500. Compared to many other newer projects, sales at Ruby have done well in this down market.

Decatur :: First Hill

Decatur Condo, on the other hand, has had a bit of a struggle since coming on the market over 3 years ago. However, the project is now more than 2/3rds sold and occupied. This FHA approved building is part of Condo Bulk Buy’s inventory with units available up to 35% off original pricing — starting from $184,950.

1111 E. Pike :: Capitol Hill

The Tom Kundig designed 1111 E. Pike development reports they’re 70% sold with only 10 homes remaining for sale. Located in the heart of the Pike/Pine Triangle, prices at 1111 E. Pike start at $244,950.

The Danielle :: Ballard

Ballard’s newest condominium development, The Danielle, is nearing completion and reports they’ve already sold 4 homes. The Danielle is located kitty corner from the new QFC on 24th Ave and the Ballard Commons Park.

Hjarta :: Ballard

Hjarta is reporting that they’re now 51% sold and is FHA approved. As part of Condo Bulk Buy, Hjarta’s pricing is up to 35% below their original level.

Florera :: Greenlake

Like its sister project, Hjarta, Florera was off the market for a while before becoming part of Condo Bulk Buy. Sales have been slower with only 30% of the building sold, but it is FHA approved with prices starting from $244,950. Florera is located just 1.5 blocks from Green Lake Park.

1521 Second :: Downtown

Now 70% sold, 1521 Second, received 4 additional sales in April. Homes at these premium residences start from $1.1 million.

5th & Madison :: Downtown

It appears that 2 of the units that went under the gavel at the 5th & Madison auction are back on they market again by Kennedy Wilson:

• Unit #1102, the last unit auctioned, had a winning bid price of $350,000. It’s now available at $365,000.
• Unit #1805, a fully furnished unit, had a winning bid price of $331,000. It’s now for sale at $370,000.

Additionally, the penthouse, which had been withdrawn from the auction is on the market at $1,595,000. It was previously offered at $1,995,000.

If you have questions about any of these condo projects, please drop us a line.

Condo Bulk Buy Press Release:

Realogics Brokerage, LLC. announced their bulk sales program has already generated 20 home sales out of a 30-unit release at two participating developments: The Decatur on First Hill; and Eleven Eleven East Pike on Capitol Hill. Sales volumes exceed $5 million. The two projects previously had no sales in 2009.

The firm announced their bulk sales strategy on September 10 as an alternative to condo auctions, which are becoming increasingly common in the marketplace. Their first project, The Decatur was introduced on September 28 with 21 units released and their second project, Eleven Eleven East Pike was introduced on October 11 with 9 units released. The two properties promoted bulk sale pricing that was (up to) 35 percent and 25 percent off previously listed prices, respectively. Realogics sought to accelerate sales in order to meet the November 30 deadline for first time homebuyer tax credits.

“We’re pleased to have helped our clients find their market value while assisting homebuyers purchase in a quick timeframe,” said Sam Cunningham, Managing Broker and Partner of Realogics Brokerage, LLC, who is handling both bulk sales programs. “Our unique approach has resolved a stalemate between buyers and sellers over price – there wasn’t any dialogue (offers) taking place so there weren’t any sales,” he added. “Our success is a win-win for all parties.”

The bulk sales program first offers homes for reservation so buyers can secure an opportunity to purchase – just as soon as the developer authorizes the sales price. As the buyers were aggregated, a volume sales discount was being negotiated with the developer based on the block of sales to be consummated. The price was set and reservation holders were converted to Purchase and Sale Agreements, either for block closings or individually as required.

The creative sales approach was derived to overcome several challenges that are present in the condo marketplace:

• While demand is present, buyers aren’t buying and sellers aren’t selling where there’s a lack of initiative
• Projects require a minimum number of sales before FHA and Fannie Mae mortgage products are available
• Smaller projects require a vehicle to gain attention with small budgets – collaborative marketing is a solution
• A lack of project sales results in lower unit appraisals, which can face more downward pressure from auctions
• Buyers may be concerned to “buy first” in a building that hasn’t (yet) demonstrated market success

“The irony is that homebuyers remain very interested in these projects so it was never a demand issue,” said Cunningham. “They (buyers) just needed an opportunity to start the negotiation process and had to agree on a fair price. And for their part, our sellers needed to mark to market – but were only willing to do so if it resulted in expedited sales.”

Based on the 20 sales to date, Cunningham estimates buyers purchased at prices that were between 25 and 30 percent off previous list prices, depending on the product. The pending block of sales are also helping unit appraisers by using an inter-building value matrix instead of relying solely on surrounding market comps. Third party comps alone may temporarily suppress unit values given the increased activity of condo auctions and short sales within the marketplace.

“Lenders appreciate real-time demonstrations of market demand for their mortgage asset,” said Jeff Bell, a Mortgage Banker and Partner in Cobalt Mortgage, the preferred lender for The Decatur. “Realogics has illustrated that condo auctions aren’t the only way to spur sales: especially for sensitive communities that are partially occupied.”

Cunningham says both The Decatur and Eleven Eleven East Pike now offer an additional block of 30 units for sale as an encore sales release. And while the recent deadline for homebuyer tax credits was deferred (June 30, 2010 instead of November 30, 2009), sellers remain highly motivated to move unsold product today.

“We’re thrilled with the bulk sales results to date and we look forward to more success ahead,” said Joel Ospovat, the Declarant representative for The Decatur Condominiums. “We’re sitting on standing inventory so to maintain our sales momentum we’re happy to offer the best high-rise condo value in the marketplace.”

Development consultant William Justen of The Justen Company said that he watched condo auctions impact market values just as he completed the Eleven Eleven East Pike condominiums last month. His decision to join in a bulk sales release was to shore up his appraisal values while also seeking to comply with mortgage financing guidelines, he said.

“Unit appraisals and mortgage financing can become a major challenge for projects that are just beginning their sales process these days,” said Justen. “The bulk sales approach helped us calibrate our product for the market so we’re now successfully selling.”

Website: www.CondoBulkBuy.com

Disclaimer: This article is a verbatim reprint of a press release.

It was a busy day for condo related news:

2201 Westlake (office building / Enso Condominium) receives LEED Gold Certification

Adapted from press release.

Characterized by its innovative environmental and sustainable features, the 2201 Westlake development in South Lake Union now represents Seattle’s first mixed-use and high-rise residential project to earn prestigious LEED (Leadership in Energy and Environmental Design) Gold certification from the U.S. Green Building Council.

Developed by Vulcan Real Estate, 2201 Westlake was designed and constructed from the ground up using sustainable development practices. As a LEED Gold-certified project, 2201 Westlake exemplifies sustainable innovations that promote energy and water efficiency, indoor environmental quality, eco-friendly materials selection and alternative transit options as part of a healthier workplace and living environment.

The project’s sustainable features include proximity to public transit, bicycle storage, underfloor heating and cooling systems, use of recycled and rapidly renewable materials, low VOC paint and carpeting, drought tolerant landscaping, the recycling and salvaging of construction waste, plumbing systems that reduce portable water by 35% and an exterior glass curtain wall with low solar heat gain properties.

The Great Hole of Seattle (1 Hotel & Residences) to be filled

Full article from the Seattle Times: Starwood luxury hotel site becomes a parking lot

The pit, on Second Avenue between Pine and Stewart streets, was excavated in mid-2007 for the 1 Hotel & Residences, a proposed 23-story luxury tower. But work on the $200-million hotel and condo project stopped that fall, and the developer later acknowledged it couldn’t get construction financing.

A spokesman for the site’s owner, Connecticut-based Starwood Capital Group, said Monday that the hole should take eight to 10 weeks to fill. A Starwood affiliate applied last week for a city permit to develop a temporary parking lot on the property.

Eleven Eleven East Pike bulk sales

Full article from the Daily Journal of Commerce (subscription required): Kundig-designed lofts: Justen tries bulk sales

The Justen Co. is trying the bulk sales strategy to sell a third of the units at a new condominium project on Capitol Hill, Eleven Eleven East Pike. The project has 27 lofts designed by Seattle-based architect Tom Kundig of Olson Sundberg Kundig Allen Architects, ranging in size from 600 to 1,150 square feet.

Nine units are in the first release. They are between 612 and 793 square feet and are priced between $255,000 and $379,000 in the bulk program. That’s 20 to 25 percent lower than the initial list pricing, according to Dean Jones, president and CEO of Realogics, which is marketing the project.

Under the bulk sales approach, buyers get a volume discount depending on the percentage of homes that are sold within each release. Buyers can join the bulk sale with a refundable deposit of $500 through the end of the month. Units must close by Nov. 30.

Related:
Enso Condo website
Eleven Eleven Condo website

DISCLAIMER: This information is presented to provide an overview of Fannie Mae’s condo guideline changes. For specific information and questions, please consult with your mortgage loan officer.

Recently, TSCB noted two new mortgage fees implemented by Fannie Mae affecting condo buyers — a .75% condo add on fee and a 1.75% additional fee for investors — both applicable to loans with a loan-to-value rate greater than 75%.

Well, there’s more. Effective March 1, 2009, Fannie Mae is implementing condo guideline changes “in light of the current condo market and the need to mitigate risk on condo loans”. Some of these changes may affect a buyer’s ability to obtain conventional condo loans for new and established condos.

A condo project is “established” if 90% of the units have been sold, is complete and the HOA has been turned over to the owners. A condo project is “new” if less than 90% have been sold, is not completed, is subject to phasing or if the HOA has not been turned over to unit owners.

Overview of Fannie Mae condo guideline changes:

• For new construction and newly converted condo developments, 70% of the units must be pre-sold (closed or under contract). This is being increased from 51%.
• No more than 15% of a condo project units can be more than 30 days delinquent on HOA dues. This is an existing guideline that is now being applied to new condo projects. The calculation was also changed from being 15% of HOA fee payments to 15% of total units.
• Fidelity insurance will be required for condos with 20 or more units, ensuring that homeowner association funds are protected. Presently, this requirement applies to new projects and is now being extended to include established condos.
• A requirement that borrowers must now obtain a condo-owners insurance policy unless the master policy provides interior unit coverage; coverage may not be less than 20% of the assessed value. A condo-owners policy, known as an HO-6 policy, covers personal property, personal liability, and the physical unit from the studs and in. Many policies also include special assessment coverage or the option to include a special assessment coverage rider.
• No more than 10% of a project can be owned by a single entity.
• No more than 20% of a project can consist of non-residential space.
• The homeowners association must have at least 10% of its budgeted income designated for replacement reserves and adequate funds budgeted for the insurance deductible.

According to a Fannie Mae, the guidelines can be modified for condo projects on a case-by-case basis. Therefore, these guidelines may not apply to all condo projects.

What effect will the changes have?

The revised guidelines may affect a buyer’s ability to obtain a conventional loan for either a new or established condo if the project does not conform. Most notably, it’ll affect new developments and it’s already having an impact on at least two new projects. Vulcan recently sent a letter to buyers at its Rollin Street Flats project in South Lake Union notifying buyers of the new 70% pre-sold guideline and extending closing until April 15th at the earliest.

As it stands, Vulcan may be unable to close any of the units at Rollin Street unless (1) they continue to extend closing until 70% of the units are under contract, (2) seek modification under a Fannie Mae expedited review process, (3) find a lender willing to hold the loans in their portfolio, or (4) convert the use of the building.

Ruby Condominiums in Eastlake is holding off closings until there are enough sales to qualify under the guidelines…that could be awhile. Ruby is FHA approved so that offers qualified buyers an alternative, though Ruby must have 25 sales under contract before it can begin closing FHA buyers. Its developer, Barrientos, is a major apartment developer as well, so reuse may be an option. In both cases, buyers are left in limbo.

The new guidelines may also apply to other recently completed and/or soon to be completed projects including Enso, Veer Lofts, Equinox, Alex, Duncan Place, Leona, Lakeview Residences, Brix, Eleven Eleven, The Danielle, The Dakota and Marselle — that is unless they’ve been approved for a lower rate under a case-by-case expedited review process. Quite frankly, though, I expect a few of these won’t end up as condos.

If there is a silver lining, it’s for sellers at established condo developments who’ll have reduced competition from new construction developments.

Statement from Vulcan:
Vulcan has informed our buyers of the new Fannie Mae and Freddie Mac regulations because Rollin Street is at a level of pre-sales that is under what is mandated by the new guidelines. As these guidelines affect the ability of our buyers to obtain financing and close on their purchases, we felt it was important to communicate these challenges as soon as possible. We are working to understand the new guidelines and how they will ultimately affect the property and our buyers. We will be communicating what we know about these changes and their impact in the next 2 to 3 weeks.

Veer and Enso are at a higher level of sales and pre-sales respectively and our goal is to continue to close units in those buildings as buyers come to the closing table.

Response from Williams Marketing (per comment below)
As of today [2/20/09], Ruby has partnered with a local lender (Seattle Mortgage) looking to actually lend money! They have committed to close homes now, ie, we are move-in ready with no pre-sale requirement. We are also working with other regional lenders for additional commitments to close homes with no presale requirements. Ruby on Eastlake is both FHA and VA approved, so buyers can take advantage of every financial opportunity to get into new home ownership.

Posting has been revised.

Eleven Eleven East Pike (website) is the first condominium project designed by Tom Kundig, an AIA award winning principle with Seattle-based Olson Sundberg Kundig Allen Architects.

Eleven Eleven East Pike blends modern, even playful elements, with Capitol Hill’s rustic character within the Pike/Pine corridor. Situated half way between Trace Lofts and Monique Lofts, the six-level project will feature just 27 urban condominium homes (14 open one-bedrooms, 12 one-bedrooms and a two-bedroom penthouse).

The homes range in size from 600 to 1,125 square feet, the average being around 700 square feet. Unlike other Kundig designed homes, Eleven Eleven is being offered at a moderate price point, ranging from the mid-$200,000s to the low $500,000s with most between $350,000 and $450,000. The penthouse is being offered in the mid-$800,000s.

Design elements include:

• 9′ ceilings with floor-to-ceiling windows and doors
• Randomly placed peepholes
• In-unit moveable hanging “puzzle” walls
• Custom-built “urban RVs” (moveable multi-purpose storage units) designed by Kundig
• Built Green 3-Star certified
• Roof top terrace

Most units will have unobstructed views, however, the 2nd floor south-end units back to a building approximately 10′ feet away. These particular homes are priced in the $200,000′s and do not have a parking space.

The project is currently under construction with occupancy slated for Fall 2008. Reservations are currently being accepted (bonus: the project is FHA approved). Eleven Eleven is being developed by Anne Michelson, a long-time Capitol Hill business and building owner. Michelson has been an outspoken advocate for preserving the Hill’s cultural and architectural character.

View 1111 E Pike condos for sale.

Trace Lofts (website) report they are down to their final 5 units. Four of the units are on the 4th level with the remaining unit on the 5th level. Prices range from $485,000 for a 703 sq ft loft to $850,000 for a 1,154 sq ft loft.

Next door at Trace North, construction is expected to be completed by June. About 30 of the 100 units have sold and the developer just released another 20 units. Current prices at Trace North range from $230,000 for a 474 sq ft studio to $525,000 for a 952 sq ft two-bedroom home.

Trace’s New Neighbors

1210 11th Avenue
Union & Madison LLC has proposed a 5-story 91-unit complex on the triangular block SW of Trace Lofts. The building is designed by Runberg Architecture Group whose other projects include The Crawford on Capitol Hill and the Selano in Lower Queen Anne.

1111 East Pike
Designed by Tom Kundig of Olson Sundberg Kundig Allen Architects, 1111 East Pike is just west of Trace North on E. Pike Street. The proposed 6-story project will feature 27 condominium homes. See also.