The Seattle Condo Blog

The Parc condominium in Belltown is currently offering a pretty good rate buy-down promotion on their remaining homes. Based on the rate info they provided, the 2/1 buy-down can lower the rate down to 2.875% for the first year, then 3.875% the second year, finally locking in at 4.875% for the remaining loan term (30 year fixed).

The promotion runs for a limited time but is available to any of the remaining 20 homes that’s under contract by February 28, 2009. The buy-down rate, which is subject to change, is based on a 30 year fix loan with 10% down payment through their preferred lender, Countrywide. It does not apply to re-sale properties.

As an example, the Parc currently has a 1,237 square foot 2-bedroom unit available for $429,000. With the rate buy-down the first year’s payment would be around $1,600, excluding PMI and taxes.

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.

Just a couple of weeks ago we reported that Intracorp was seeking approval to revise its 1915 Second project, increasing its height from 240 ft to 400 ft. Now, Intracorp has put the property up for sale per this listing on the Moran and Co. website.

In reading the listing description one passage is revealing, notably, the part where the 1915 parcel could be combined with the 1931 Second Ave lot. According to the Daily Journal of Commerce, who first reported this story, it was news to the people behind the 1931 project (Columbia West and The Justen Company):

“That’s unbelievable,” [Justen's Marty] Goodman said of the listing. “We’ve had discussions with them (Intracorp). We haven’t had discussions with them about listing our property as a potential assemblage.”

Update: Interesting…the Intracorp’s interactive Domain Condo website has been replaced with a “priority registration” page. Intracorp previously listed this property for sale as apartments on the Moran and Co. website.

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).

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).