Just in! The first MLS marketed condo at Nexus (1200 Howell) has hit the market!
Unit #912 is a 644sf 1 bedroom with .75 bath – we pulled the marketing language directly from the MLS:
NEXUS–City Life. Evolved. Own downtown Seattle’s next generation high-tech, high-rise at the heart of a burgeoning, multi-billion-dollar vertical village. Contemporary & dynamic studios, 1, 2 & 3 bedroom flats and sky lofts from below $500,000 to more than $3 million. Uncommon common areas include concierge, co-working, fitness center, dog run/lounge, great rooms, exhibition kitchen, sky bar, roof terrace, Sky Club and more. Presales at Sales Center begin March 18th with occupancy mid-2019.
Nexus is a pre-sale condo project developed by The Burrard Group, of Vancouver B.C. The 41 story, 382 unit building will open its sales center on March 18th. We will be attending the groundbreaking at 10am and the VIP event tomorrow night and will report back with pictures and more information!
As you guys know, we have followed inventory closely and have been reporting on the recent rise in the median sales price for Downtown condominiums. If you didn’t see our interview with Komo 4 news last week, we had the opportunity to speak to the impact of the housing shortage and where we go from here.
The timing for Nexus really couldn’t be any better. Take a look at the New Construction Condominium Delivery and Sales Data From Dean Jones at Realogics Sotheby’s:
With the grand opening of the highly anticipated project, we called Dean tonight for comment:
The graphic above outlines the downtown Seattle delivery of new condominiums in their year of substantial completion as well as current status, trending on median home prices and total annual absorption. As you can see, we’ve already sold out of all the most recent deliveries and between NEXUS and Gridiron, you’re looking at the total supply that’s likely before the next decade. There’s not much relief in resales either as fewer than 50 homes have averaged on the market and of course, these don’t have the new designs, amenities or high-tech features of our next generation product at NEXUS.
All projects, both for rent and for sale, are struggling with rising construction costs. So while rents and median home prices are also rising, the substantial majority of the developers are planning longer term exit strategies for their trophy assets as high rents and low cap rates make the business of apartment building a compelling win over condos with the prospect of preselling years before delivery and of course, the responsibility of lingering construction defect liability. That coupled with the WA State Condominium Act allowing only 5-percent earnest money as liquidated damages presents condo developers with much more at risk than buyers. The irony is this consumer protection act is partially responsible for overcorrecting the condo market so now we have little inventory and expanding demand.
Certainly Burrard Group sees the opportunity to deliver condominiums as a contrarian approach but they are also factoring rising values over the coming years, which will help hold presales in place. This presents the proposition that presale buyers are likely to explore as we release homes on March 18th during the Public Sales Debut. We do expect a robust turnout. Doors open at 11am.
Thanks to RSIR for sharing their data and commenting on market conditions and their upcoming events!