SEATTLE’S CONDO PIPELINE EXPECTED TO DRY UP

This from staff writers Jeanne Lang Jones & Kristen Grind at the PUGET SOUND BUSINESS JOURNAL: With 40 condominium projects in the pipeline for downtown Seattle one might expect a glut of new units on the market. But tight fisted lenders and hesitant buyers, both reacting to the nationwide credit crunch have severely hobbled the once high-stepping market. The pace of development has slowed so sharply that local experts predict a shortage in 2010 that could drive prices up. One consultant forecasts delivery of just 189 new units that year-down from an average of 1,100 anticipated in each of the prior three years.

…No new condo project has broken ground downtown since the last two buildings -275 unit Escala and 204 unit Equinox-got underway last summer….

Since it can take as long as two years to build a high-rise condominium tower the dearth of new construction is pushing delivery into 2011-assuming those projects, which represent more than half of the 40 in the pipeline, can find financing. Buyers too, face credit constraints but are still expected to outstrip the reduced supply. By 2010…1,000 buyers will be looking for new condos in downtown Seattle, an increase from current levels and five times the expected supply.

sparyd@johnlscott.com

Belltown Downtown Condos and Lofts Building Info

81 VINE – Western & Vine  Built 1914/2000  Stories 6  Units 24 Rain Water sculpture by Buster Simpson

1521 – 1521 2nd Ave  Built 2008  Stories 38  Units 143  Gym Yoga Studio Playroom Business Center Rooftop Terrace  Open Floor Plans Window Walls Steel & Concrete Opus Architects & Engineers

2200 WESTLAKE/ARTE/AZUR/PAN PACIFIC – Built 2007  Floors 12/15  Units 261  Gym Theater Courtyard Club Room Business Room Gas Stove -Fireplace  & Central AC (not to be used in conjunction like Nixon in the Whitehouse) Steel & Concrete

ALEXANDRA – 3028 Western  Built 1992  Stories 5  Units 79  Gym Club Room Sauna

ARBOR PLACE – 121 Vine  Built 2002  Stories 27  Units 159 -Gym Pool Sauna Hot Tub Club Room Decks Business Room Concierge Steel & Concrete

AUSTIN BELL – 2324 1st Ave  Built 1905/1985/1999  Stories 5  Units 49  Courtyard Builders Murry Franklin

AVENUE ONE – 2721 1st Ave  Built 2005  Stories 13  Units 110  Gym Club Room Business Center Builders Swinerton

BAY VISTA - 2821 2nd Ave   Built 1982  Stories 23  Units 76  Gym Hot Tub Club Room Pool Sauna

BANNER BUILDING – ?? Western Built 1994  Stories 7  Units 24  Central AC Industrial Style

BELLTOWN COURT – 2414/2415 1st Ave   Built 1994  Stories 7  Units 249  Gym Club Room Hot Tub  Deck Onsite Manager Courtyard

BELLTOWN LOFTS – 66 Bell Street  Built 1914/2000  Stories 8  Units 62  Courtyard

BAY VISTA – 2821 2nd Ave  Built 1982  Stories 24  Units 90  Outdoor Athletic Court Club Room Gym Hot Tub Sauna Pool

BELLORA – 2716 Elliott Ave  Built 2003  Stories 13  Units 93  Central AC Deck Gym Concierge

CARBON 56 – 2015 Terry  Built/Converted 2007  Stories 4  Units 56  Gym

CONTINENTAL PLACE – 2125 1st Ave  Built 1981  Stories 33  Units 128  Gym Hot Tub Cool Pool Sauna Club Room 5th Floor Park

CONCORD – 2929 1st Ave  Built 1999  Stories 13  Units 206  Central AC Gym Hot Tub Sauna Deck Club Room Concierge Guest Suite

CRISTALLA – 2033 2nd Ave  Built 2005  Stories 23  Units 197  Rooftop Deck & Dog Park Gym Yoga Room Concierge Club Room Steam Room Sauna Central AC Business Room Sky Terrace

ELLINGTON – 2801 1st Ave  Built 2000  Stories 12  Units 204  Gym Hot Tub Club Room Concierge Guest Suites Water Table Sculpture by Buster Simpson

ENSO – 820 Blanchard  Built 2009  Stories 19  Units 135  Vulcan

ESCALA – 1918 4th Ave  Built 2008  Stories 28  Units 280  Courtyard Wine Cave Theater Club Room Gym Steam Room Sauna Catering Kitchen & Bar Business Room Unit Terraces & Gas Stoves Guest Suite Concierge Architect Paul Thoryk Concrete Glass & Steel 1st Level Retail Shops

FOUR SEASONS – 99 Union  Built 2008  Stories 21  Units 36 

GALLERY – 2911 2nd Ave  Built 2008  Stories 15  Units  Gym Business Center Rooftop Terrace & Dog Park Concierge Supper Club Sky Lounge Guest Suite

HARBOUR HEIGHTS - 2621 2nd Ave  Built 1980  Stories 18  Units 93  Gym Outdoor Pool Sauna Hot Tub Club Room

THE KLEE - 2717 Western Ave  Built 2001 Stories 6/11  Units 152  Gym Club Room Business Center Concierge Window Walls Guest Suite

MATEA – 159 Denny Way  Built 2006  Stories 6  Units 78  Gym Club Room Rooftop Deck

MOSLER LOFTS - 2523 3rd Ave   Buit 2008   Built Green

ONE PACIFIC TOWER – 2000 1st Ave  Built 1995  Stories 27  Units 80  Gym Pool Hot Tub Deck Concierge

POMEROY – 2319 1ST Ave  Built 2000  Stories 8  Units 54

SEATTLE HEIGHTS – 2600 2nd Ave  Built 1993  Stories 25  Units 239  Gym Pool Hot Tub Club Room Deck Concierge Central AC

SITE 17 – 2440 Western Ave  Built 1998  Stories 8  Gym Club Room Deck

TRIO - 3104 Western Ave   Built 2008  

THE VINE – 2607 Western  Built 2002  Stories 6/12  Units 123  Gym Club Room Deck Concierge

WATERFRONT LANDINGS - 1900/2000 Alaskan Way  Built 1997  Stories 5  Units 234  Gym Club Room Hot Tub Courtyard Deck Concierge

sparyd@johnlscott.com

Seattle’s Urban Growth – Vision 2040

Between 2006 and 2022 Seattle is expected to accommodate 92,000 or 34% of the county’s total 267,000 new jobs. The city’s strategy for accommodating growth is to direct most of it to locations designated as urban centers and urban villages. Urban centers are part of the countywide and regional strategy embodied in the Country Wide Planning Policies which contain descriptions and minimum density standards for these intended high-density mixed use areas. Four of the 6 Urban Centers in Seattle are contiguous to one another and together they represent significant proportions of Seattle’s current jobs, households and growth potential. These four centers – Downtown, First Hill/Capitol Hill, Uptown and South Lake Union – constitute the area known as Center City. The four urban centers in Center City encompass approximately 3,500 acres or less than 5% of the city’s total land area yet they are home to about 17% of the city’s households and nearly 50% or the city’s jobs. The city’s 20 year growth targets would locate about 50% of future households and 60% of future jobs n Center City.

This article was excerpted from Seattle.gov. For the complete article and information on Seattle’s Urban Mobility Plan go to http://www.seattle.gov/transportation/docs/ump/04%20SEATTLE%20What%20do%20we%20know%20about%20the%20future.pdf

sparyd@johnlscott.com

Rental Caps and What They Mean to You

There are a couple of reasons condos have rental caps.

One is that some homeowners feel that if the rental to owner occupied ratio gets too high the value of the building is diminished and therefore the value of the homeowner’s individual unit is diminished as well.

Also, and possibly more important to homeowner’s and buyers bottom line is that lenders look at the rental to owner occupied ratio and can make decisions about lending based on that since their choice to lend is based on the property as well as the borrower.

The appropriate ratio for the lender to lend based on the rental to homeowner occupied percentage is determined by several factors including age of building and the buyers ability to buy.  Of course if most lenders won’t lend on a building the ability for the homeowner to sell and the buyer’s ability to buy becomes problematic.

sparyd@johnlscott.com