Downtown Seattle Condos | Blog & Reviews by Wendy & Marco

2200 Westlake Condos: Humble Beginnings, Bright Future

2200 Westlake is a building that I feel might be misunderstood and I believe this is due to its market timing. Let me explain.

2200 (along with Cosmopolitan and Madison Tower) was one of the first pre-sale new construction projects to hit the scene after the Cristalla (pre-sold in 2003; completed in 2005). When Cristalla was completed it was the first new construction project to have been completed in Belltown since the Bellora in 2003 and buyers were excited to get into something new and shiny. The market was booming and everyone was trying to buy. Oh the good ole days.

When closings began in 2005 Cristalla, owners were being approached to sell their condos for much over their purchase price (I know, because it happened to me!). This created the expectation that if you purchased a new condo, you could turn around and sell it immediately for a hefty profit. Investors jumped on the chance to make a quick buck and were a large percentage of those who bought at 2200 in pre-sale. Unfortunately, by the time 2200 purchases began to close in 2006 and into 2007, the market had started to cool and buyers were wise to the ‘flipping’ that investors were doing in buildings such as Cristalla and they were not having it. So, when the investors went to sell off their units right away, there were not enough takers. As a result, many of these units then became rentals and still are rentals. Other condo owners who needed to sell walked away and foreclosed or short sold, which affected the condo values.

Veer Lofts Update

Veer Lofts is down to only 5 remaining homes and they are having their close out sale which will expire end of this month.  Looking at the numbers, the price reduction is ~5% of the previous listing price.  Can't say that I'm terribly excited about this price drop.  I was expecting more like 10-15% for a closing out sale.  For those buyers looking for lofts, this building is FHA approved. 

 

Related posts:

Bagley Lofts
Veer Lofts Update
Madison Lofts
19th Ave Lofts
Monique Lofts

-Wendy
 

The Enclave on Lake Union

Looks like this weekend is going to be a busy one for the real estate market.  The Enclave on Lake Union has just opened their sales center and will be having their open house from 12-4pm on both Saturday and Sunday.  It's not really a condo project (collection of homes) but I don't think we are going to hear of any interesting and new projects near downtown for a while so we're gonna bend the rules this time.  I have to admit, this particular project seems really interesting. 

Enso Update

I attended Enso's sneak preview event for brokers a couple days ago.  In response to the current market conditions, the developer has revised their pricing on their homes.  There was a pretty big turn out for the event.  All their 12th floor homes were opened for viewing. 

Here are a couple observations:

Rollin Update

Vulcan has announced that Rollin will be officially converted into an apartment building.  With only 25% presale, they were unable to meet Fannie Mae's new requirement of 70% pre-sale.  Matt has more here.

One thing that comes to mind is requiring the high pre-sale threshold of 70% makes a lot of sense long term (it used to be 51%).  

The question I have is: is that the right thing to implement when the market is still trying to find it's footing? I wonder if it would have been better to ratchet the more stringent requirements up over a couple of years in line with the market recovery.

Ruby Update

Fannie Mae's new guidelines requiring new construction to be at least 70% presold before they will fund loans has affected some projects in Seattle.  One such case is Rollin in South Lake Union delaying their closing.  As for Ruby in Eastlake, it looks like they have found a way to get over this hurdle.  Ruby has started partnering with a local lender (Seattle Mortgage) that has committed to close homes with no presale requirement.  The developer is also working with other regional lenders for additional commitments to close homes with no presale requirements.  The building is also FHA and VA approved which opens up more doors for them to appeal to home buyers with low down payment.  To encourage purchase, the developer is offering rate buy- down's for home buyers.  I wonder if other projects will follow suit.

Related posts:

Ruby Condos Update
Ruby Condos
Rollin Hard Hat Tour
South Lake Union Update

Marselle Condos

Marselle condominiums is the latest addition close to the South Lake Union, Downtown and Belltown neighborhood on 699 John St.  This 7-story, wood-framed building will hold 132 units with the smallest unit starting at 347 square feet to the largest ones at 1,740 square feet.

The building will offer a variety of floor plans from studio, one bedroom with den, two bedroom and a penthouse level including 10 2-level homes.  Marselle pricing is expected to average around $475/square foot.  Studios will start at under $200,000 and go up to $600,000's.

Each home will include one parking and storage unit.  Interior will feature natural walnut floors, slab granite countertops, and stainless steel appliances with many homes coming with an island kitchen.

Amenities: 3 rooftop decks, dog patch, fitness center, yoga space, and resident lounge.

The project is scheduled for completion in summer 2009 with the sales center probably opening up sometime in January/February of 2009. The developer's goal is to produce a condominium with equal or better finishes compared to other projects but at a lower price point than any other new construction in Seattle. The location was picked because of it proximity to downtown and the Seattle Center; the biggest reason was probably the price of the land. So far, 21 homes have already been sold to the developer's family and friends.

Even thought the location is close to Belltown, South Lake Union, and Downtown, the building is situated at the busy area of Aurora Ave.  This would add more traffic to the already congested Denny Way.  However, on the other hand, if home buyers can get it at a very affordable price point, this may be seen as a fair trade off.

Related Posts:

Moda: Small, smaller, smallest

Moda Update

South Lake Union Update

Wondering what's going on in South Lake Union nowadays? If you drive on Denny Way recently, you'd probably noticed that Enso and Rollin construction is well under way. A few blocks east of 2200 Westlake, Mirabella, a retirement building, is nearing completion and East of 2200 Westlake, the new Borealis Apartments are now leasing.

Despite all this action, the market has certainly slowed down in many sales centers, including the SLU experiencing lower traffic. If you are curious about South Lake Union, here is a quick update on the three projects:

Veer Lofts- 401 9th Ave N (99 units)
Over 50% sold with 5 listed on the MLS

Enso- 820 Blanchard St (135 units)
Over 50% sold with 5 listed on the MLS

Rollin- 120 Westlake Ave N- (208 units)
Over 30% sold with 9 listed on the MLS

According to the Discovery Center, Vulcan will be building 11 offices for Amazon with completion around 2010 and employees of Amazon will be moving in the offices in 2011. There will be retail spaces in these offices as well (I wonder how many Starbucks that will be...). As for the office portion of Enso, there is no news yet on which tenant will be occupying the space.

South Lake Union Park Grand Opening

South Lake Union Park phase 1 will be open to the public on April 30th, Wednesday from 11.00am-1.00pm. This 1.6 acre parcel of green space is part of a 12-acre waterfront park development plan. The Seattle Parks Foundation is completing its campaign to raise $20 million in private contributions to develop the SLU park. During the grand opening, the public can enjoy a free salmon bake, live music, boat rides, historic vessels, educational activities, demonstrations, and prizes. You will also be able to see the plans for the entire 12-acre park which will be open in 2010.

No doubt, this is an exciting development for South Lake Union. It's great to see more green space in the city especially with so many new construction projects coming up over the last few years and probably more developing moving forward. Retaining some land for green space will definitely enhance the area's appeal as it attempts to evolve from its more commerical vibe.

-Wendy

SLU Street Car

The Streetcar has been up and running since last month and I have to say it looks really nice. Residents working in downtown and living in South Lake Union can enjoy the convenience of hopping on the nice shiny new streetcar for $1.50 or use a metro transfer or pass (thanks to reader MM for pointing this out). If you are tech savvy, you can even configure your phone to get actual arrival information. The ride stretches from Westlake Ave and Olive Way to Fairview Ave N (between Ward St and Yale Ave). Anyone buying in the neighborhood may want to give some preference to buildings along that green line below.

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-Wendy