According to Eric Mehr of Escala’s sales team, Escala was FHA approved on May 24th. However they still need about 15 to 20 more sales to
start closing FHA loans. Also according to Mehr, Escala has closed 27 conventional and cash deals thus far.
Escala-FHA Approved
June 7, 2010 By 1 Comment
Escala Sales Picking Up Steam-FHA Approval Just Weeks Away
April 27, 2010 By Leave a Comment
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.
A View From Escala
April 1, 2010 By Leave a Comment
My Latest Experience at Escala Condominiums
March 27, 2010 By Leave a Comment
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
Escala Sales Office Opens To The Public-March 27th
February 26, 2010 By Leave a Comment
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 27th, 2010. As an early registrant, we’d like to get you in prior to the March 27th 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
Escala Condos; Moving Forward
February 9, 2010 By 1 Comment
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:
As always, feel free to e-mail info@urbanimg.com with any questions!
[mappress]
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