Bellevue Towers-What’s On The Inside?

rsz img00157 20100214 1734 Bellevue Towers Whats On The Inside?

One might argue that Bellevue Towers is one of the sexiest looking buildings in the maturing Bellevue skyline.  The glass, steel and concrete look timeless and architecturally it rivals most of its neighbors.  However, if you are familiar with the project, the inside of the building is much more controversial.  As mentioned in a previous post “The Night Lights At Bellevue Towers“, I think it is incredibly fascinating when you drive by the project and see just a few lights on at night.  It just doesn’t make sense.  They need more owners to fill up their beautiful project.

I don’t mean to down play the condo debacle during our real estate recession, but something has to give.  I have made my point clear in previous posts ( Lower Prices and Bellevue Debacle).  The time is now to shift the momentum to collaboration between lenders, developers, real estate teams and buyers.  Swift action towards market rate pricing that aligns with expectations is necessary.  The last situation we need is “new construction” inventory that lasts for the next 10 years.

What do you guys think?

[mappress]

Seattle Condo Progressive Open

Progressive Open e1266096082695 Seattle Condo Progressive Open

Carrie DeBuys has organized another downtown Seattle progressive open house for tomorrow February 14th from 1-4pm.  It was a huge success a few weeks back. If you are up for touring tomorrow and would like to see some of the active downtown inventory, check out the tour list here.

A list for tomorrows event includes the following:

Continental Place $669,950

Royal Crest Condominiums $319,900

Olive 8 $395,000

Olive 8 $545,000

Olive 8 $505,000

Olive 8 $775,000

Olive 8 $1,075,000

Market Court $389,000

Market Court $459,000

One Pacific Tower $1,000,000

Newmark Tower $489,900

98 Union Tower $629,000

98 Union Tower $545,000

Colonial Grand Pacific $369,950

Watermark Tower $450,000

A few condos may be missing from the list.

[mappress]

Are You in Real Estate? Then Raise The Bar

rooftop.deck  300x204 Are You in Real Estate? Then Raise The Bar

It is time for everyone in the real estate business to raise the bar.  This includes builders, agents, appraisers, subs, inspectors, management companies and many others.  I had four experiences this last week that were embarrassing, disappointing and unacceptable.  Here is a quick synopsis:

1.  The Appraiser Without A Key:


I received a call on Friday night to schedule an appraisal.  It is typically a standard of practice that the appraiser will let themselves into the unit, do their work for 15 minutes and be on their way.  This was a different circumstance.  When I spoke to the appraiser, he asked that I meet him on site.  When I asked why, he told me that he does not currently have a MLS Key to access the property.  When I asked him why, he simply stated that he was “too lazy, to get the new key issued last year”.  The multiple listing service changed their GE key system at the end of last summer.  So instead of getting his key then, he has been inconveniencing people like me for the last 8 months due to his apathy.  Not cool.

2.  I Hit The Wrong Button

A resale certificate review is a fundamental process in the routine of buying a home.  I’m representing a condo owner who received a contract for purchase from the buyer on Saturday morning a few weeks back.  On Monday I called the Management company to prepare the resale cert so that I could deliver that package to the buyer ASAP. They took two days to call me back and then preceded to tell me that they have outsourced their paperwork preparation to an online service. Make a long story short, after I went through the application online, paid the $268 dollars for 2 day mail of the package, I still didn’t have the package 4 business days later.  When I called to inquire and complain, the supervisor told me that one of his employees must have “hit the wrong button”.  It took 3 more business days to process.  I didn’t receive it for over 9 days.  This could have cost my Sellers in the long run.  Especially if the buyer had moved on to a different unit.

3.  No Meeting Minutes?

Another management story that simply disappoints.  Condominium management firms are getting worse, not better.   They were overworked in the real estate boom and now they are understaffed or simply not in business.  In another situation of ordering a re-sale cert, when I received the package it was missing one of the most important sections; the meeting minutes.  Minutes are important because they reveal what a complex has been focused on over the last few months.  This could include, upgrades to the building, repairs or pending legal disputes.  When I called to ask why the minutes were not included, they gave me an excuse in addition to asking for more money to produce them.  When I obliged and paid, I received the minutes that were missing 2 out the required 12 months.  I don’t think the 200 plus owners that are paying management fees would be very happy with their contracted management firm.

4.  Keys……Please!?!

My final gripe and maybe the most disappointing was a key exchange that turned into a complete debacle yesterday.  I represented the buyers in a purchase near Gas Works Park.  Since the start of the negotiations, the listing agent showed signs of insecurity and a lack of collaboration.  I always find it so disappointing when a agent doesn’t do a good job relaying their clients wishes or collaborating towards a common objective with the other party.  Unfortunately, this was a perfect storm.  In addition, I had scheduled a 5pm key exchange with my clients that drove all the way from Yakima to get their new keys and to celebrate the first night in their new condo.  When I went to pick up the keys from the listing agent, she hadn’t left them at her office as previously discussed.  Instead she had spent the day in Tacoma running personal errands.  By the time I finally received the keys, I was over an hour late to meet my clients and they were both disappointed and frustrated.  This then became a direct reflection on me and put a damper on a lot of hard work and focus I had put into my clients experience.

I know this might have read like me complaining and pointing the finger at others, but the reality is, I’m trying to set a call for action.  As stewards in this very important business everyone needs to pick up their game.  It is bad for the industry to have such pathetic performance.  I hope the real estate professionals of the world get better; not worse.  We all deserve better!

Can I Buy A Condo in Litigation?

condo.litigation 300x225 Can I Buy A Condo in Litigation?

Condo litigation can be devastating for both buyers and sellers.  I have touched on this topic in the last 3-4 months, but felt that you might benefit from understanding how a lender looks at litigation.  Steve Tedrow was kind enough to put together this piece for your review.  I hope it brings some perspective on the difficulties of lending in these problematic situations:

One of the most common reasons that a lender may refuse to grant financing in a condominium complex arises when there is any type of litigation.  This applies to both FHA and conventional financing.  The only exception to the rule is if the HOA is named as a plaintiff in a foreclosure action or action for past due HOA dues.  There are certainly many instances where the litigation appears harmless or insignificant, but there is still uncertainty in the lenders eyes.  They have no idea of the outcome or the magnitude of potential legal fees which could be involved.

In the past, lenders were sometimes able to make exceptions.  Then, if the investor decided not to purchase the loan, the lender would just place the loan in their portfolio.  In the current mortgage environment, most lenders will only make mortgage loans if they are saleable.  There are a few portfolio lenders who may make exceptions, but only in very unique situations.  One of the questions on the resale cert addresses Pending Litigation.  If you see this section marked yes, find out the details and consult the potential lender immediately.

Financing a property in litigation is obviously a difficult task.  In lieu of trying to buy a condo in this situation, I would focus on how to avoid them.  The best defense in avoiding condo litigation has everything to do with your due diligence.  Here is a short list of how you can avoid this major mistake:

  1. Do your research (Your reading a condo blog.  Thats a good start!)
  2. Hire a professional (A good real estate agent or a qualified attorney)
  3. Read your resale certificate thoroughly
  4. Think about the future (any upcoming assessments, budget shortfalls etc…)

As always, feel free to call me with any questions at info@urbanimg.com

Vancouver BC Condos

Vancouver.Yale .Town  300x190 Vancouver BC Condos

With the recent buzz over the Winter Olympic events in Vancouver BC, I thought it might be interesting for you to get a glimpse of Vancouver’s diverse condo market.  I’m privileged to understand the market through the eyes of a very good family friend.  He and his family are dual citizens and experienced condo investors placing the majority of their attention on the area referred to as Yale Town.

Yale Town could represent a near perfect example of urban living.   It is known for its restaurants, night life, proximity to local attractions and its condo centric way of life.  I asked him to highlight 5-6 of the buildings they have invested in or feel passionate about.  See Here

The amenities added to these amazing condominium towers are endless.  The developers have included 24 hour concierge, gyms, yoga studios, movie theaters, rooftop decks, view terraces,  indoor pools, hot-tubs, squash courts, key-less entries, town-car service and more.  Many of these projects are also built with “green” consideration and architecturally designed to maintain view corridors.  I’ve attached the link below so that you may peruse the work that my friend has put into his Google map.  I hope you enjoy!

Marinasiderz Vancouver BC CondosVancouver.yale .town3  Vancouver BC CondosVancouver.yale .town2  300x225 Vancouver BC Condos
View Vancouver Condos in a larger map

Escala Condos; Moving Forward

rsz escala1 Escala Condos; Moving Forward

As reported yesterday by Stroupe, the on-going changes at Escala now include a very different strategy for Club Cielo.  In general, everyone seems to be pretty anxious to see what will occur with their pricing strategy.  I believe that if they do it correctly as Enso has done, that they may revive the project and can expect to see a uptick in demand.

As a realist and with some past experience in development I also realize that with a building that cost $370 million to build that we are not going to see 30% to 40% reductions across the board as some have noted.  It just does not pencil out.  I believe that they will focus on lowering prices for the large one-bedrooms and the least popular floor plans first.  That will obviously allow a lower barrier of entry, but it doesn’t disguise the fact that the project to a certain degree has been “over built”.  Rennie Marketing will have the ultimate task of keeping everyone happy.  For Lexus Companies, one can only assume that this has been nothing short of a very bad dream.  I know of at least 10 owners, and rumored as high as 17 that have filed a lawsuit against the project.  The group of homeowners are working with a very well-know Seattle attorney.  We know how tough it is to lend on a project in litigation.  So were does the project go from here?

If I were in Bob Rennie shoes, this is what I would do:

  • Focus on your current customers and make them HAPPY.  Nothing is more important at this point.
  • Go to the six owners that paid cash and pay for 2 years of their homeowners dues.  Happy homeowners are vital.  Especially when they took the risk in closing on a building that was 98% un-sold.
  • Remove the excessive “luxury” label that the building has.  Promote the quality but remove the stuffy Upper East Manhattan feel.
  • Lower prices and explain the significance.  No one really cares that it was lowered.  What they care about is; what its worth in todays market/dollar (for example…..”this unit costs $xxx,xxx dollars to build; we are willing to sell it at $725,000)
  • Befriend the brokerage community.  SHOW OFF THE PROJECT.  It has been tougher to see than White House over the last few months.  Agents will sell the project if they are treated fairly and if they are give the opportunity to understand the vision, brand, quality etc…
  • Start a public friendly media campaign.  This will help with the perception of the project and what is being offered
  • Do it soon!  Right now you are currently losing good buyers to Enso and Olive 8

Escala has been getting a lot of coverage.  Enjoy some of the other posts produced over the last week:

Matt at Urbnlivn.com

Tim at Seattle Bubble.com

PSBJ

UrbanCondoSpaces.com

As always, feel free to e-mail info@urbanimg.com with any questions!

[mappress]

Capitol Hill Condo Project in BIG Trouble

Capitol.Hill .Broadway 300x219 Capitol Hill Condo Project in BIG Trouble

This post today has me in a bit of a pickle.  There is a condo building on Capitol Hill that is teetering on the edge of disaster.  I’m acutely aware of the situation, but hesitant to throw the project under the bus.  What I do know, is that my client and I decided that it would be best for her to walk away from the purchase due to potential financial short-fall from a major upcoming expense.  An expense that could cost her and the other home owners thousands of dollars in a special assessment. When we reviewed the re-sale certificate last week  it became evident that the project was in trouble. As we reviewed the meeting minutes, we stumbled upon the issue and it became quite clear that the unit was too high risk to purchase.

The project has less reserves than it should, the building needs a new roof, it needs to fix problems with the windows, could have water damage and it may need to file a lawsuit with a developer that is no longer doing business.  This is what most would consider a recipe for disaster.  Situations like these are a constant reminder of how important it is that you review your re-sale certificate.  As I mentioned before, I have made this mistake myself when purchasing my own unit back in 2007.  Read Here

Bottom line is that you MUST do your homework before you purchase.  The last thing anyone needs is assessment of $5,000-$15,000 dollars or more after moving in.  In addition, any project currently in litigation becomes almost impossible to finance.

[mappress]

Pending Home Sales-What a Difference A Year Makes

Circle Small Pending Home Sales What a Difference A Year Makes

It would seem obvious to suggest that 2010 numbers would be better than 2009, but with that being said, the pending home sales number jumped significantly.  This kind of activity is a good thing for King County and it also shows that we are continuing the long process of stabilizing.  As I mentioned (tweet) on Friday, some local economists are expecting moderate appreciation in 2010.

As seen at DJC.com

Pending home sales up 47% in January

KIRKLAND — Pending home and condo sales in King County shot up 47 percent in January compared to a year ago, while the median price of closed sales dropped nearly 4 percent to $350,000.

The Northwest Multiple Listing Service’s latest report, issued Thursday, shows a similar trend throughout the metro area. Pending sales in Snohomish County were up 42 percent; the median price dropped 9 percent to just under $268,000. Pierce County logged a 13-percent price drop to $205,000, and registered a 15.6-percent hike in pending sales.

Pending Home Sales Definition:  A real estate transaction for which a contract has been signed but that has not closed.

Cosmopolitan Condos-Still In Chaos or Sexy Once Again?

rsz cosmo1 Cosmopolitan Condos Still In Chaos or Sexy Once Again?

For anyone considering the Cosmopolitan in Seattle, they must re-visit its past.  As most of you know the Cosmo had an epic rise and fall all within 2 years. Read the italiasized text from a previous post of mine as a reminder and then follow along below to participate in a discussion about where the Cosmopolitan Condos stand today:                                  View Pictures Here

Everything about the Cosmopolitan would seem to fit Seattle perfectly.  However, the construction of a commercial project just west of the building has put a damper on the once perfect luxurious tower.  A very controversial topic for well over a year amongst owners, the city planning office and the private sector led to a period of silence as Schnitzer Northwest proceeded with their development of a 36 story commercial tower (1918 eighth).  Not only did it disrupt remarkable west facing views for the highly sought after wing of the building, but it has cast a pricing spell on the rest of the units for sale.  Many owners trying to sell their units at the Cosmo, dealt withan incredible amount of uncertainty in pricing and had to fight the aftermath of their project sticking out like a sore thumb.

If any of you were to consider the Cosmopolitan as your next home, it would be foolish not to consider the damage that has been done. However, it has much to offer when considering the location, amenity package and the allure of high rise luxury living.  Without much construction over the next few years, I anticipate that demand will increase once again for this special building.

Obviously the project has had its fair share of bad press. It also has experienced quickly declining values and a social stigma amongst Seattle buyers; but how do we all feel about the project now?  The Cosmo could benefit from little to no new Seattle activity.  It shouldn’t surprise anyone if we don’t see a new project completed in the next 3 years. Does that actually benefit a buyer at the Cosmo?  Does a seller now in the “04″ stack (NE facing) have a new appreciation for the future of their unit?  Once Enso and Olive 8 sell out, the Cosmo will remain a 34 story luxury tower within close proximity of a growing South Lake Union neighborhood.  It begs the question:

Would you purchase now at the Cosmo?  If so, why?  If not; is it a matter of time or do you feel that the project is forever plagued due to its new 36 story neighbor?   I’m anxious to hear your thoughts!

rsz cosmo2 Cosmopolitan Condos Still In Chaos or Sexy Once Again?rsz cosmo3 Cosmopolitan Condos Still In Chaos or Sexy Once Again?rsz cosmo41 300x143 Cosmopolitan Condos Still In Chaos or Sexy Once Again?

View More Photos Here

[mappress]

A Morning Discussion With Mr. Bruce Nordstrom

Nordstrom 252x300 A Morning Discussion With Mr. Bruce Nordstrom

I experienced something this morning that was unforgettable.  A few days back a client of mine and I were having a beer in Downtown Seattle. He mentioned that he was having a guest speaker for his 35 employee consulting firm.  Little did I know that it would be Mr. Bruce Nordstrom. When I asked if I could be a guest at his all staff event, my friend quickly realized how intrigued I was by the thought of listening to a local business legend speak in such an intimate setting.  Much like Microsoft, Boeing, Starbucks or AmazonNordstrom has being a staple in Seattle. In fact they have been in Seattle since 1901.  Thus making it an honor to learn from such an experienced business man associated with a very sucessful company.

It took close to an hour to get their offices and when I finally arrived I enjoyed hearing all the inter-office discussion prior to Mr. Nordstroms arrival.  I settled in inconspiciously and patiently waited for the talk to begin.  As he entered the room everyone quickly quieted down to listen to the introduction.  He made his way to the front of the room, and as one might expect, he was dressed to impress.  I was taken back at how good of a speaker he was.  To be honest, he was just a great story teller.  We learned about his family lineage, how the store began and all the facinating stories that come from building a 9 billion dollar business.

The purpose of his visit was to speak to the “Nordstrom Way” of customer service.  The result was a life changing experience.  It was an honor to have heard the 76 year old retired chairmen speak.

The Night Lights At Bellevue Towers

BellevueTowers big 300x225 The Night Lights At Bellevue Towers

My wife and I grabbed dinner a few weeks back at Barrio in Bellevue.  It sits at the base of Bellevue Towers next to Purple restaurant and bar.  Dinner was great and it was a reminder of how much Bellevue has matured over the last 5-10 years.  It has grown into a very sexy destination for entertainment, restaurants and overall urban living.  To that end, what surprised me the most that evening was our drive home and seeing the few scattered lights on in the two monstrous condo towers.  It brings up a very serious issue that many local developers are facing; no one wants to move into a empty building.

I’m not suggesting that this is just a Bellevue Towers problem.  There are 4-5 other buildings between Bellevue and Seattle that are in this same predicament.  Buyers have to stomach the idea of moving into a tower with less than 90% occupancy or in some cases even more.  I spoke with a buyer the other day about how that problem leads to other questions that just don’t have a simple answer.  For instance:

  • Will the price of my unit go down after I move in?
  • What happens to the amenities in the building?  Are they maintained?
  • If the project is exploring others options (leases, assisted living, foreclosure) how can this affect my purchase?
  • When does the builder turn the project over to the association?
  • When does the developer stop paying the HOA dues?

The questions this particular buyer was asking were very familiar to me.  Many of you have those same questions and are not getting the answers.  I mentioned it to 3 or 4 of the local site agents and thought it might behoove them to understand what the public is worried about.  With the news about Escala and other local projects considering huge price reductions or internal changes to their sales teams I would expect that we will see much more transparency moving forward.  As I suggested in my post last week, now is the time for local developers to face the music and make a change.  Until then, we will all wonder what it feels like to be one of those 12-15 lights on at 9pm at night.

Seattle Condo Sells In One Day

IMG00124 20100131 1448 300x225 Seattle Condo Sells In One Day

A quick update on the open house this weekend at Seattle Heights.  As mentioned before, I had 10-12 people through.  I thought it might be interesting for you to know what their profiles were.  Here is my best effort based on my memory and the notes taken during the 3 hours while I was there:

  • Neighbor
  • Couple getting out of there lease in 60 days or less (Belltown Court)
  • A buyer who is currently under contract at Escala (Exploring new options)
  • Two investors looking to purchase and flip
  • 2-3 agents
  • A baby boomer couple looking to move after 25 years in their home in Federal Way (exploring the condo market for the first time)

The condo I was holding open (Seattle Heights #1403) came on the market Saturday night.  I thought it might be worth noting that the unit had an offer just 4 hours after the open house and 24 hours later the unit went pending (under contract).  Goes to show that if Sellers get realistic and often “aggressive” with their price, it usually meets the expectations of the buying pool.  Everyone wins.

IMG00125 20100131 1448 300x225 Seattle Condo Sells In One Day

Concord Condos

rsz concord Concord Condos

Concord Condos is a timeless two tower 13 story building located on the north edge of Belltown. Built in 2000, Concord  features a sleek exterior of concrete glass and steel.  Designed by Driscoll Architects, and constructed by PCL Construction, Concord has met the expectations of many buyers since the year it was built in 2000.

With a dynamic water feature at the entrance of the building and a grand entry into the chic lobby, Concord still leaves prospective owners in awe as they enter the building.  Offering a business center, cable TV, disabled access, elevator, exercise room, high speed Internet access, hot tub and sauna, the Concord is still competitive with other new construction projects.  Concord has a versatile selection of floor plans ranging from studios, one bedroom, one bedroom plus den, two bedroom and 7 penthouse suites. All units have access to decks or balconies with penthouse units having their own private roof deck.

Units feature high end finishes including  granite slab countertops, glass breakfast bars with halogen accent lighting, pro-series stainless appliances, gas stoves, high speed internet, multi-room sound and spacious bathrooms . Overall, Concord is a high-end condo that continues to turn heads in the Belltown condo scene.

exterior 150x150 Concord Condos exterior3 150x150 Concord Condos interior 150x150 Concord Condos interior2 150x150 Concord Condos interior3 150x150 Concord Condos workfacility 150x150 Concord Condos

Jeff Active Listings Concord Condos Jeff Sold Listings Concord Condos Schedule a Tour Concord Condos

MORE PHOTOS

UCS EXCLUSIVE WEBSITE
______________________________________________________________
www.condosatconcord.com

UCS PROJECT GRADE
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Address: 2929 1st Ave, Seattle 98121
Year Built: 2000
Bedrooms: Studio, 1, 1.5, 2 and penthouse
Bathrooms: 1–2
Total Units: 206
Amenities: Business center, fitness studio, concierge, terrace, Elevator, Lobby entrance, hot tub, sauna and high speed internet
My Grade:
Location: B+
Amenities: A
Price: B-
Luxury: B
Walk-ability: A  Google Walkscore
Unit Decor: B+

WALKSCORE

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Windermere Real Estate/East, Inc.
3933 Lake Washington Blvd NE #100 Kirkland Wa 98033
www.UrbanCondoSpaces.com
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