In a media release to the public on Wednesday, Escala announced that they have reached 65 sales.  Of those 65 sales, 38 condos have closed.  This is good news for a project that has 269 units to sell.

The success can be attributed to a major shift in their sales and marketing.  In addition, some units were reduced by up to 50%.  Good luck to the sales team on their remaining inventory.  More more information about Escala, follow the buttons below:

This is a fun post for me to write.  I have been so excited to share with you some recent updates to the blog.  As you will see in the picture below, we have added a category of links titled “UCS Exclusive Sites”.  I think this is an incredible addition to the site.

For the last 2 months, I have been working tirelessly on building individual sites for the major condominiums projects in Bellevue and Seattle.  The objective was to bring each project to you!  This hyper-local approach, delivers “building” specific information.  Each website is loaded with great info.  You can search units for sale, units that have sold and within a few weeks you’ll be able to search for rentals as well!  In addition, you will find the following:

• Neighborhood information
• Amenities
• Walkscore and much much more.

Each site is fairly interactive as well.  For example, if you want UCS to send you listings in your favorite building, just fill out the email notifications form and you will receive new listings immediately when they hit the market.  As an owner you will also be able to keep tabs on the units that are for sale in your building.  We will be adding new features to the site as time goes on. For now, my hope is that you enjoy what has been created.  Please spread the word!  I’m very excited to get your feedback.  See below for a list of all the websites offered at this time:

Here is an example of the website for the Vine!

These are where the website links are located in UrbanCondoSpaces (see the picture below):

Eastside/Bellevue Condos:

Bravern Condos
Bellevue Towers
One Lincoln Square
One Main Street Condos
Astoria Condos
Washington Square
Kirkland Central

Seattle Condos:

Trace Condos and Lofts
Brix Condos
Eastlake Condos and Lofts
Enso Condominiums
Veer Lofts
2200 Westlake
The Cosmopolitan
5th and Madison
Escala Condos
1521 Condominiums
Cristalla Condos
Bellora Condos
Concord  Condos
The Vine
The Parc
Mosler Lofts
Madison Lofts
Gallery

I spoke with Erik Mehr of Team Builder JLS yesterday regarding the progress at Escala Condominiums.  According to Mehr, they have successfully closed 6 sales since taking the project over.  They have over 40 pending sales and for those of you interested, you can follow their pending sales in the MLS.  They made a commitment to adding all their sales to the MLS last month.

In summary, Erik felt that they were making great progress.  He said that the HOA dues approach that reduced the owners monthly payments was very well received.  I inquired about what units were selling well, and as you might have expected the units priced between $450,000 and $550,000 have seen a lot of activity.  Mehr also mentioned that the “F” plans were seeing an abundance of sales as well.  They are the 3 bedroom units, generally priced over $2,000,000 dollars.  Thus far out of 20+ 3 bedroom units, Escala has sold 8 of those floorplans.

In terms of financing, MetLife, the projects preferred lender, is lending conventionally and will continue to do so.  This squashes a lot of the rumors that were suggesting that you had to purchase “all cash”.  I was also surprised to hear that the project is only a few weeks away from FHA approval as well.  This will be a monumental step for the success of the project.  I will confirm when they get their approval.

Overall, the 30-40% in reductions seem to be moving the majority of this inventory.  As the number of “new” units downtown continue to dissapate, Escala will be looked at as a good option for downtown living.

I took a series of pictures from the west facing “E” unit while at the Escala brokers open event last Thursday.  I thought I would share them with you so that you can get a glimpse of what that west facing view would look like.  Enjoy:

Amenities

Location

Floorplans

[mappress]

See More Pictures Here

For you any of you that have not seen Escala yet; do it!  I highly recommend it.  In my years of doing real estate it is one of the most interesting projects I’ve seen.  From the grand lobby, the million dollar views and the all white penthouse 30 floors above the city, Escala at a minimum offers visions of grandeur.

While at the brokers open event on Thursday, I tried to summarize my experience on Twitter.com.  ”Escala is the Upper Eastside of NY, with remarkable views, spacious layouts & luxurious amenities. It might not fit Seattle yet, but time will tell.”  That 140 character summary was the best I could do with trying to capture the essence of a project that cost over $370 million to build.  Trust me, it is not easy.

Everything aspect of the project was designed during some of the most successful years of our local real estate economy.  That reveals itself as you experience the luxurious and excessive aspects of the 31 story project.  You have thousand dollar furniture in the lobby a grand marble staircase, a magical chandelier and a second floor full of amenities that look like they could belong in some of the best resorts around the country.  Amenities come at a cost.  Since converting the amenity and club space to a “pay per play” system, they were able to reduce homeowners dues to $.53 per foot (originally $.80).

The next stages of our tour (on Thursday) was a guided walk-through of the modeled units as we headed up higher and higher and experienced the incredible views.  Each condo was modeled differently and I often looked right past it as I was trying to get a feel for the units “finish level” and view corridor.  If you have been reading this blog or any other condo blog in town you  would have see a barrage of posts that had scolded the Escala for their asinine pricing strategy.  I felt that since they have publicly announced the price reductions that I should look at the units with care and consideration.  With that being said, let it be known that I was really impressed.  I constantly challenge my assessments of each unit so that I could report back un-baisley.

I will leave you with four considerations:

1.  Take a look at the Escala Home pricing below
2.  Enjoy the pictures that I took while touring the project (see here)
3.  Give me a few days and I will have all the video I shot at Escala uploaded to my Youtube.com channel.
4.  Take a look for yourself this weekend.  If you like real estate in general is a fascinating experience.

–

Escala Home Pricing:

A Plan, 1 bed/1.5 bath
Total Living SF 1,054
Floors 3-19 with North or South Views
Priced at $384,000-$554,000

B Plan, 1 bed/1.5 bath
Total Living SF 1,110
Floors 3-19 with East or West Views
Priced at $384,000-$554,000

C Plan, 2 bed/2 bath
Total Living SF 1,780
Floors 3-24 with NE, NW, SE, & SW views
Priced at $699,000-$1,124,000

D Plan, 2 bed + den/2 bath
Total Living SF 2,182
Floors 20-24 with North or South Views
Priced at $1,250,000-$1,450,000

E Plan, 2 bed + den/2 bath
Total Living SF 2,226
Floors 20-29 with West of East Views
Priced at $1,090,000-$1,625,000

F Plan, 3 bed/2.5 bath
Total Living SF 3,073
Floors 25-29 with NE, NW, SE & SW views
Priced from $1,600,000-$2,250,000

In a continued effort to re-brand and re-engergize Escala Condominiums, Rennie Marketing is reaching out the brokerage community.  I will attending an event tomorrow that includes a tour of the building and a briefing of new pricing and HOA strategy.  If any of you have any specific questions prior to the event let me know and I would be happy to ask for you.  I’m treating this event as a clean slate to get re-introduced to the project and to get a better understand of their goals and expectations regarding the future of Escala.  I will report back.

Hot off the wire, please read below for a notice from the Escala Sales team.   As expected they are starting a pro-active vs re-active approach. Expect more details, but as you can see prices will start at $384,000.  How do you think the market will re-act?  I’m anxious to get your opinion!

YOU NEED TO CHANGE MORE THAN JUST PRICE IN TODAY’S NEW ECONOMY

Dear Jeff,

As a valued registrant, we would like to share with you details of the important changes happening at Escala Seattle. First and foremost, our pricing has been dramatically reduced. Below is a list of starting prices for our One, Two and Three Bedroom Homes.

1 BEDROOM, 1.5 BATH, 952sf Homes starting at:  $384,000
2 BEDROOM, 2 BATH, 1607sf Homes starting at: $699,000
3 BEDROOM, 2.5 BATH, 2442sf Homes staring at:  $1,574,000

In addition, we have taken a sustainable business approach to homeowner fees and services. The concept of Club Cielo, a five-star, 30,000sf club facility with outside membership, will now be available to Escala residents only. This decision has greatly reduced homeowner fees. All the while maintaining an unbelievable level of service and a greater level of security.

What does this mean to you? In place of a fully-staffed Bar, Restaurant and Spa we are moving to a User-Pay system. Whether you’re planning a private party for your 40+ guests, want to schedule a fitness trainer or masseuse on Thursday or simply want to book the screening room – all can be arranged through the concierge and Columbia Hospitality. Where costs are involved, those fees will bill directly to you instead of burdening the entire Home Owners Association. The fitness facility, resistance pools and changing rooms are always available.

There are many things that have not changed at Escala. These include access to an extensive amenity package, spacious homes with the largest decks of any downtown development and classic Seattle views. Combine all of that with Absolute-Value pricing and there is no other building like Escala in downtown Seattle.

Our sales office opens to the public on March 27^th, 2010. As an early registrant, we’d like to get you in prior to the March 27^th date. Call 206.816.6300 to schedule an appointment with one of our new sales professionals.

See you soon!

The Escala Seattle Team
1920 Fourth Avenue
Seattle WA  98101
t. 206.816.6300
e. info@somethingischangingatescalaseattle.com
w. somethingischangingatescalaseattle.com

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]

Escala is once again the talk of the town.  Jim Stroupe broke a story this week that has been developing for quite some time.  I commend he and his team for getting the details out in the public.  In fact, earlier this week, behind closed doors the details of the change were still “off” the record. Regardless of when the change was announced,  I think it is fair to say that everyone was expecting news like this.  It shouldn’t have been a surprise.

A few years ago, I was working in Belltown and was surrounded by the Seattle condo buzz.  I must say that I was caught up in the grandiose plan and much anticipated pre-sale process of Escala.  Many of our partners and colleagues were in large part a contributor to the project.  They added their time and opinions towards pricing, marketing, staffing and selling.  There was a vision that was easy to believe in.  Escala was meant to be bigger than life.  In my opinion the Architects Paul Thoryk, MulvannyG2, and the developer John Midby of Lexus Companies were creating something that had never been done before. There was truth to that, but now it seems dead wrong.  In fact, from the beginning, although the developer didn’t notice it,  many of Seattle’s condo buyers were scratching their heads.

Dating back to the grand opening of the design center, there were questions about the design and how it would fit in the traditional Seattle market.   There has always been enthusiasm for the project, but over time Escala seemed like a big onion, with layers unfolding and adding to the uncertainty, lack of transparency and un-acceptable communication.  No one will forget the infamous price increases and multiple attempts to “set the direction” of project artificially.

To sum it all up, the reason the model is broken is because of the price, communication, commitment to the current buyers and a lack of transparency to the buying community.  Unfortunately,  the original vision of the project was created at a very different time then when it was delivered today.  With that, comes strict lending guidelines and a counter culture to excessive spending on real estate.  So, the change in project is from “Lender” pressure.  The lending institution that is funding its lack of success must force the change that the project needs.  No one will really know how well this will be received.  My hope is that they will find a way to keep Club Cielo and lower prices and hoa dues by 30%.

One final point I need to make is that I commend Escala on their efforts.  I don’t agree with the way they have handled the process but  I can’t fault someone for taking a chance to build something great.  I firmly believe that without risk, one can’t find reward.  Let’s be honest, if a project fails it gives us something to talk about, but it doesn’t do us any good as participants and owners in our great city.

Feel free to share feedback at info@urbanimg.com

[mappress]

Escala was just featured in the Seattle Times – Downtown Living Section

Escala, a condominium tower now under construction in the heart of Midtown, recently reached a milestone as more than 50 percent of its Premier Sales Release has been sold. More than $6 million in sales were recorded in the last month alone, resulting in an Encore Sales Release happening now.

Escala developer John Midby of LEXAS Companies says the new inventory actually represents the last near-term opportunity for new condominiums in downtown Seattle, given the reported 95 percent drop in new construction deliveries anticipated by 2010.

Seattle continues to demonstrate the most enviable real estate fundamentals in the U.S., but the condo pipeline has become severely constrained, says Midby. Were very fortunate to be moving ahead when so many other developments are delayed behind the credit crunch. Our proposition is simple we offer a finite number of preferred homes in the most confident market in the nation.

By late 2009, the 30-story tower will be comprised of 270 condominiums averaging more than $1 million. Savvy homebuyers recognize that Escala has differentiated design, unparalleled amenities and ideal timing, says Chris Stiebler, community sales manager for Windermere OnSite.

Escala was recently recognized by the National Association of Home Builders as having the best floor plan in the nation and was just recognized as a finalist by the Pacific Coast Builders Conference for Best Specialty Project for Club Cielo, Seattles first private social club in more than 20 years.

Escala is far more than a luxury high-rise condominium its becoming downtown Seattles finest lifestyle establishment, says Midby.

Midby has partnered with PONCHO and Masins Fine Furniture for art and furnishings at Escala and has reached out to Columbia Hospitality to run the new social club. The hospitality company recently appointed Ken and Cathi Hatch as founding cochairs of the advisory committee for Club Cielo. For more information on the clubs development, visit www.clubcielo.com.

Escala is one of the most unique buildings to arrive in Seattle with fantastic amenities.