The Seattle Condo Blog

Press release.

At a time when many regional projects are at a standstill and unable to secure financing, this loan renewal helps Olive 8 earn its distinction as an urban and sustainable condominium project that has been able to move forward as planned while continuing to be a desirable option for buyers.

Olive 8 is Seattle’s first Leadership in Energy and Environmental Design (LEED) Certified (Silver) hotel/condominium building. Hyatt at Olive 8 occupies the first 17 floors with another 22 floors of luxury condominiums above. Of the 229 condominium homes, 51 have closed. A wealth of new research indicates green building is forward-thinking, offers many long-term financial benefits and is an investment that pays off in terms of lower energy and water bills, as well as healthier indoor air.

R.C. Hedreen President David Thyer says, “As the developer, it’s not unexpected for us to think Olive 8 is unique and will hold its value in the long-term. But the extension of this loan syndication led by our long-time partner, U.S. Bank, reinforces our belief that this hotel/condominium combination in the heart of Seattle is a project with a strong future. We see it as a very positive sign in what has been a slow and challenging market.” Olive 8 was designed by the internationally acclaimed New York City firm Gluckman Mayner Architects in partnership with local architect, MulvannyG2.

Minneapolis-based U.S. Bank’s history of doing business with R.C. Hedreen dates back 15 years, with a variety of projects being financed over the years.

“We are proud to be involved with the construction of Olive 8, which shares our commitment to quality and environmentally-sound business practices that help sustain our resources and the environment,” says John Swanson, senior vice president in commercial real estate at U.S. Bank. “Also, this a shining example of the fact that U.S. Bank is a strong leader within the banking industry, and that we continue to make loans and provide financing to projects like Olive 8, even in this difficult economy.”

Due to its sustainable design and construction, which includes one of the largest green roofs in Seattle, Olive 8 is expected to use 23-percent less energy and 36-percent less water than a comparable non-green building. It is the first building in Seattle to participate in King County’s Transfer of Development Rights program; in exchange for higher building rights, R.C. Hedreen paid nearly one million dollars toward the preservation of 284 acres on Sugarloaf Mountain in rural King County, as well as vital salmon habitat. The carbon footprint of the Olive 8 building will soon be reduced by 21-percent when Seattle Steam Company, which provides heating for the hotel, will begin using mostly biomass as fuel instead of natural gas. Olive 8 also features preferred parking spaces for highly fuel-efficient vehicles and outlets for electric cars in the underground parking lot.

The following is a news release from Olive 8.

SEATTLE—(September 10, 2009)—The stunning Olive 8 building (condo website), a 39-story hotel/ condominium building located in downtown Seattle, has officially received LEED® Silver by the U.S. Green Building Council (USGBC), a first for hotel/condominium buildings in the Seattle area. As the first mixed-use hotel and residential project to be LEED certified in Seattle, Olive 8 has been recognized as a high-performance building that is a responsible, efficient and healthy place to live, vacation and work. The cornerstone Hyatt at Olive 8 hotel located within the Olive 8 building is now also one of only 20 hotels in the US to be officially designated “green” by the LEED (Leadership in Energy and Environmental Design) Green Building Rating System™.

Olive 8 was planned and developed by R.C. Hedreen Company. Realizing the value of green building early on, R.C. Hedreen did a significant redesign of the original building plans to ensure Olive 8 would meet the exacting LEED certification standards.

“A few years ago, it became obvious to us that green, sustainable and environmentally-friendly design and construction is the future,” explains David Thyer, R.C. Hedreen Company CEO. “All the research since then demonstrates that a green building is better for our bottom line, while also better for hotel guests and condo owners – both in terms of offering a healthier indoor environment and in terms of long-term investment value. Olive 8 is proof that a building can be both green and sophisticated.”

Featuring a sleek 100-percent glass exterior, stunning blue glass architectural elements and one of Seattle’s largest living rooftops, the building’s green design will make a lasting positive impact on the local environment. In addition to an expected energy savings of 23 percent more than a conventional building of similar size and occupancy, Olive 8 is expected to have water savings of about 36 percent, or approximately 2.4 million gallons each year. Key design elements that contribute to the energy-saving and eco-friendly nature of the building include:

• Low-flow plumbing fixtures, which use one gallon per minute less than traditional showerheads
• Dual-flush toilets that use 29 percent less water per flush
• A low-chemical mechanical water system that uses less potable water
• Landscaping maintenance that uses minimal city water, thanks to the use of native plant species and super-efficient irrigation systems. This system results in a 99% savings from typical irrigation programs – an approximate savings of 24,000 gallons of water per year (in addition to the 2.4 million gallons saved in the building).
• In total, more than 95 percent of construction debris was diverted from landfill disposal by redirecting materials to be reused and recycled.

The artfully designed property is home to the 346-room Hyatt at Olive 8 – located on the first 17 floors of the Olive 8 building – and 229 urban condominium homes situated on the upper 22 floors. As the first LEED hotel for Hyatt Hotels Corporation, Hyatt at Olive 8 pairs world-class service with environmentally sound practices. To conserve energy, rooms are equipped with Watt Stopper® technology that only allows lights to be on while guests are in the room, dual flush Toto toilets and Bricor® water-reducing showerheads. The hotel strives to meet stringent eco-friendly standards through all of its guest services, including environmentally-friendly cleaning practices, an all “green” meetings and events offering, in-room recycling and more. The hotel is also home to Urbane – a locally-sourced restaurant featuring a rotating Pacific Northwest menu – and Elaia, an eco-friendly spa incorporating local ingredients into its treatments. Both support the hotel and building’s message of sustainable luxury.

“Hyatt at Olive 8 is a model of sustainability,” says Mark Stiebeling, general manager of Hyatt at Olive 8. “We’re proud of achieving LEED Silver and we hope to continue to contribute toward a greener, more eco-friendly future for the hospitality industry.”

Olive 8 is a stand-out building in other ways as well. It is the first building in Seattle to participate in King County’s Transfer of Development Rights program; in exchange for higher building rights, R.C. Hedreen paid nearly one million dollars toward the preservation of 284 acres on Sugarloaf Mountain in rural King County, as well as vital salmon habitat. This fall, the carbon footprint for Olive 8 will be reduced by 50 percent when Seattle Steam Company, which provides heating for the building, will begin using mostly biomass as fuel instead of natural gas. Olive 8 also features preferred parking spaces for highly fuel-efficient vehicles and outlets for electric cars in the underground parking lot.

The LEED Green Building Rating System was implemented to encourage the design, construction and operation of more sustainable buildings. LEED verifies environmental performance, occupant health and financial return, and was established for market leaders to design and construct buildings that protect and save precious resources while also making good economic sense. The achievement of silver LEED Silver certification demonstrates the building’s environmental leadership in the industry, both locally and nationally.

The condo marketers version of musical chairs continues to go around as Williams Marketing takes over sales of Enso, and as of today, Veer Lofts.   It had been rumored that Vulcan was considering handling sales in-house after the contract with John L. Scott expires this month.   The Williams Marketing website also indicates they’ve taken over sales at The Pittsburgh.

Williams Marketing recently relinquished marketing and sales operations at Brix, Olive 8 and The Danielle.

Andy left a comment on the Olive 8 posting this weekend about his likely decision to walk away from his $23,750 deposit along with a link to his blog where he shares his thought process and background into buying pre-sale. It’s an excellent blog post which has generated thoughtful discussion.

I think this is a great read so I’m reposting the link to his posting: My $23,750 Mistake at Olive 8

But the real-estate bubble, of course, has burst. And some of those once-eager buyers from 2006 and 2007 are backing out, often at considerable expense to themselves and, perhaps, the projects’ developers

But the real-estate bubble, of course, has burst. And some of those once-eager buyers from 2006 and 2007 are backing out, often at considerable expense to themselves and, perhaps, the projects’ developers.

At Fifteen Twenty-one, developer Opus Northwest says more than one-quarter of the original buyers have walked away, some forfeiting deposits of $100,000 or more.

At Olive 8, at least 10 percent of the project’s buyers, who either can’t or don’t want to close, have retained lawyers in hopes of getting their earnest money back.

Article: At pricey high-rise Seattle condos, some buyers back out
Olive 8 blog: olive8.blogspot.com

Olive 8 held a hard hat tour event at the construction site today to show off the building’s progress (I had a prior commitment and was unable to attend). Fortunately, Megan Hilfer of Parsons PR, was kind enough to share a few photos from the event which I’ve posted below.

When completed, Olive 8 will be the tallest residential tower in Seattle and the first condo/hotel development in Seattle to achieve LEED certification. The Hyatt hotel is expected to open at the end of the year while the first occupancy of the condominium is anticipated for early 2009.

View photos (click image below):

The Olive 8 condominium (website) and Hyatt hotel project is progressing full steam ahead with construction now exceeding 22 floors. The project is 80% sold with occupancy of lower level homes slated for January 2009 while the Hyatt at Olive 8 is expected to open this coming December. A model home within the building will be available some time this fall.

With that said, however, recent events and the state of the condo market are on the minds of developers. R.C. Hedreen, Olive 8’s developer, is ensuring that buyers in Seattle’s tallest residential tower receive the lowest price possible as the market continues to fluctuate by offering a price guarantee to new buyers. Should the same floor-plan within Olive 8‘s remaining inventory sells for less than the current price prior to closing, the buyers who contracted for a higher price home will benefit at closing with the equivalent discount to their price.

Acccording to David Thyer, president of R.C. Hedreen, the Olive 8 homes are attracting a great deal of attention and interest, but “We recognize the housing market hesitancy and feel that this guarantee will help shore the confidence of those who are on-the-fence. Buying now offers the best selection and the assurance that they are getting a great value.”