Thinking About Buying Green?

Ever wonder if buying a green home is a sound financial investment?  A recent article in the Seattle Times discusses recent statistics and the benefits of buying a green home.  It cites a study by GreenWorks Realty which reviewed the NWMLS King County condominium sales from September 2007 - May 2008 and included only new construction built in 2007 and after.  The statistics reflect that 18.7% of condominiums bought during this period were environmentally certified.  When priced per square foot, these green condominium homes were 28% more valuable than non-classified homes.  A green home may be classified by LEED, Built Green, Energy Star or another 3rd Party classification.   Check out the article regarding green homes and condominums…Buying Green.

In addition to this article, I thought I would highlight a few environmentally certified new construction projects and those under construction seeking some form of green building classification:

Trace North/Trace Lofts - Capitol Hill

Brix - Capitol Hill

Rollin Street - South Lake Union

Enso - South Lake Union

Veer Lofts - South Lake Union

Parc - Belltown

Mosler Lofts - Belltown

Cosmopolitan - Downtown Seattle

Olive 8 - Downtown Seattle

1521 - Downtown Seattle

5th & Madison - Downtown Seattle

220 West Highland - Queen Anne

Hjarta - Ballard

NoMa - Ballard

Florera - Greenlake

Bellevue Towers - Downtown Bellevue

 

More Developers On Hold…a good thing?

As discussed in many of our previous blogs, the “wait & see” approach has continued through the middle of summer.  It is amazing to watch the natural progressions of the real estate market auto correcting.  Condo Conversions have come to a screeching halt, new construction has been put on hold, and many condo projects have converted to either Apartments or Office/Retail.  Projects like Expo 62 and most recently Moda have been turned Apartments after being fully under way with their sales processes.  Moda came as a suprise - especially due to the fact that they were sold out less than a year ago.

All of this negative news is actually positive for the local Seattle & Eastside markets.  The New Construction Inventory is shrinking, which will eventually start evaporating the oversaturation of resale inventory in the city.  Just under a year ago it was nearly impossible to keep up with all of the construction.  Suprisingly, rising gas prices and worsening traffic reports will continue to play a role in ”Urban Appreciation”.

Other Projects that are on hold or moving to apartments include:  Seneca, Icon Tower, AVA, Insignia, Candella, 1 Hotel & Residences, as well as Vida & Lincoln Tower 2 in Bellevue.   

Real Estate or Stocks?

There was a great article today in the Seattle Times on wire from Renae Merle of the Washington Post.  The piece was in regards to the choice of either buying Real Estate or Stocks and how smart investors have both.  There are great contributions and examples dissecting the two.  Full story click here

What’s New In Seattle?

In reviewing the condo pipeline both in Seattle and Bellevue, it looks like inventory should start drying up as we lead into 2009 and especially 2010.  In previous years, condo buyers have had many different options in new construction - times are changing.  With gas prices nearing $5 per gallon & buses often times standing room only, the urban growth demand in Seattle has quickly begun increasing.   Also, with companies like Amazon and Microsoft taking more office space in Seattle, we can be certain that condo prices are on the rise.  It is amazing to think that just a year ago, there was a large concern about inventory over-saturation.  Keep your eyes out for a few newer projects releasing information as we enter into fall.

 

 

International Impact in Seattle Market

Peter Oh, our VP of International Marketing, was just featured in an article posted on MSNBC.  Peter was featured with Dean Jones, in an article explaining why foreign investors are flooding the US real estate markets.  As the US dollar continues to weaken, markets like Seattle and Bellevue are becoming very attractive to foreign investors/buyers from Korea, China, India, Europe, etc.   

Bellevue Growth

The Seattle PI just released an article that discusses the growth in Bellevue.  The article provides some great insight to the Bellevue Condo Market.

With 2 million square feet of offices, 403,000 square feet of retail and commercial space, and 3,300 apartments and condominiums under construction right now, Bellevue is shedding its traditional role as Seattle’s demure younger sibling.

 

Businesses are moving there to be closer to Eastside employees, and residents see it as getting the urban experience without the Seattle edginess. But some longtime residents do not like what they see the city becoming. Meanwhile, the uncertain financial climate nationally might spell trouble for some development plans.

 

Not secondary anymore
Bellevue Planning Director Matt Terry said Bellevue was a low-density, suburban town 29 years ago, when the city hired him to rewrite its downtown plan and zoning so that it encouraged taller, denser development. The first high-rise went up in 1983, and two or three were added in each of several development cycles since, but the new spurt is much bigger.

 

“I think Bellevue’s sort of reaching a maturation point,” Terry said.

 

Nearly all 2 million square feet of offices under construction in downtown Bellevue are preleased; current lease rates are a bit higher than downtown Seattle’s.

 

“It used to be it was always considered to be a secondary market,” said Matthew Gardner, a local land-use economist who works with developers. “That has changed dramatically.”

 

The change started in 2004, when Symetra Financial decided on downtown Bellevue for its headquarters, Gardner said. Downtown Bellevue has since gained a heavy tech presence, including Microsoft, Yahoo, Google and Expedia.

 

In addition to current construction, city officials are reviewing proposals that would add another 1.3 million square feet of offices, 648,000 square feet of retail and commercial space and 2,700 apartments and condos.

 

What’s driving the demand? Well, driving, for one thing.

 

Congestion and, to an increasing extent, the price of gas are causing people to want to work close to where they live, Gardner said. Bellevue is attractive for new hires, particularly because of its strong schools, and the Eastside’s educated, affluent populace draws employers and retailers.

 

Those same issues also are helping spur the condo demand in downtown Bellevue — think of it as employees moving closer to jobs that moved closer to employees.

 

Office construction in suburban areas around Bellevue has been strong for two decades, but nearly all of those sites are now taken, said Jim Bowles, Northwest senior managing director for CB Richard Ellis. “At the same time, people are now wanting to be in downtown Bellevue.”

 

Michael Brandt, a 24-year-old who grew up in Bellevue, works in the city’s downtown doing marketing for Eddie Bauer, runs the Web site downtownbellevue.comon the side and is scheduled to move from his townhouse outside of downtown to a Bellevue Towers condo in November.

 

“I kind of associate myself with what’s going on in this area,” he said. “It’s a lot of new, young growth.”

 

Dean Jones, president and chief executive of Realogics, a Seattle condo-marketing firm, said several massive projects now under construction “are quite literally changing the downtown Bellevue landscape overnight.”

 

The Bravern, for instance, will add 456 condos and 620,000 square feet of offices in two towers above a 240,000-square-foot commercial center anchored by luxury retailer Neiman Marcus.

 

The Braces moved to downtown Bellevue after their kids grew up and moved away. They had looked at downtown Seattle, but didn’t feel as comfortable there.

 

“There’s just too much stuff going on, too much panhandling,” George Brace said. “It’s just not, to me, a friendly, fun experience.”

 

Many others seem to share the perception that downtown Bellevue is a safer or, at least, less-edgy alternative to downtown Seattle.

 

“It’s reserved nightlife,” Brace said. “It’s not the hardcore clubs, but it’s these elegant restaurants, elegant bars and classy people.”

 

Skittishness affecting plans
Bellevue’s growth spurt has dismayed some longtime residents.

 

“It’s ruined the city for the vast majority of citizens,” David Plummer, who has lived in Bellevue since 1964, said at a May city open house about development. “There’s no human scale to it.”

 

Even supporters worry.

 

“I’m concerned most with how they’re going to handle the vehicle traffic,” Melissa Matkin — who has lived in Bellevue for 36 years, invests in real estate and plans to move into Bellevue Towers — said at the open house. “Once these things are all built out, are people going to be able to get around?”

 

While the city has plans for more road, pedestrian and bike connections, its biggest need is high-capacity transit, Terry said. “We have to have light rail service into downtown Bellevue. That’s critical to our future.”

 

But there is some question whether every proposed project will be built — and when.

 

Last month, developer GIS International Group announced it was delaying groundbreaking of its downtown Bellevue European Tower project “in anticipation of bringing the project to market in a better economic climate.”

 

GIS Chief Operating Officer Eugene Gershman said many buyers had asked to delay their closings because they worried they would not be able to sell their current homes in time, and he hoped to break ground this fall.

 

Although Gershman said construction financing was not a problem for his project, the U.S. housing slowdown has caused skittishness among banks and investors who finance developments. Thanks to the financing situation and continued cost of construction, just one condo project has much of a chance of breaking ground in downtown Bellevue this year, Jones said. But, he said, developers had not proposed more projects than downtown Bellevue’s market could accommodate.

 

Terry acknowledged the current uncertainty, particularly for residential projects, at a Realtor symposium on the city’s growth last month.

 

“Obviously the national economic environment concerns us,” he said. “We’re very attentive to the things we can do to help these projects be successful.”

 

DOWNTOWN BELLEVUE, BY THE NUMBERS

·  Housing: 3,750 units now; 11,100 forecast for 2020

·  Population: 5,000 estimated now; 14,000 in 2020

·  Offices: 8 million square feet now; 13.1 million in 2020

·  Retail: 3.9 million square feet now; 5.2 million in 2020

·  Jobs: 38,100 estimated now; 63,000 in 2020

 

Source: City of Bellevue
——————————————————————————–

P-I reporter Aubrey Cohen can be reached at 206-448-8362 or aubreycohen@seattlepi.com. Read his Real Estate News blog at blog.seattlepi.com/realestatenews.

© 1998-2008 Seattle Post-Intelligencer

Click Here to review the article directly on the Seattle PI website

Bravern - Bellevue

Tremendous response to the The Bravern’s two office towers and retail space has ignited much interest in the residential side of the endeavor. Occupying a super-block (2 city blocks x 2 c.b.’s) with Meydenbauer Convention Center, the gigantic project has garnered media attention from big-time players such as The New York Times.  Microsoft plans to lease space in parts of each tower for 4,000 workers. Neiman Marcus‘ flagship northwest venture will occupy 125,000 sq ft of retail space over 3 floors.

The condominium portion will be known as The Bravern Signature Residences. In the two 29-story towers, nearly 500 residences will sit atop 300,000 sq ft of retail space. Homeowners have the luxury of their phase being completed last. They’ll be able to exit from their tower the day they move-in and enter directly into the fully-operational restaurants and high-end shops.

Homes at The Bravern Signature Residences are divided into three categories: The City Homes, The Condominium Estates and The Penthouses. City Homes range from 625 sq ft to more than 1,200. Prices begin in the $400,000-range and run to nearly $2 million. Estates are spacious 1-3 bedroom condos, from 1,000-2,100 sq ft. Priced from $900,000 to over $4 million, one would expect many Eastside couples interested in downsizing to purchase. Finally, The Penthouses offer 1- or 2-story options in roomy opulence of 3000-5000 sq ft (or more). Prices have yet to be released, but sources estimate certain residences in The Penthouses will find themselves in excess of $10 million.

The pace of reservations has been brisk. Priority registrants ($10,000 refundable deposit req’d) have secured their names to as many as 350 homes. Residences won’t specifically be available for sale until winter. Check back for more details…

• Location: NE 8th St, Bellevue, WA
• Pricing: $400,000 and up
• Units: nearly 500
• more

 

Vida - Bellevue

The 12-story, 240-unit complex will be built by Tonsing Properties out of Denver, Colorado. Originally the developer planned to erect a 6-story low-rise building, but the strength of Bellevue’s condo market made for a more ambitious endeavor. The smashing success of MODA , Tonsing Properties’ Belltown venture, also lends credibility to the developer’s vision of European-style living spaces. MODA sold out in one week, with buyers ecstatic over the prospect of $150,000 Belltown condos. Some of its sub-300 sq ft units seemed to challenge even the most compact urbanite, but Seattle showed it is ready for European living efficiency.

VIDA won’t ask its potential owners to dip below 400 sq ft, but the sheer number of compact units is setting a new Bellevue standard. A typical VIDA condo will average 650 sq ft. The smallest studios will be 400 sq ft. The largest (non-penthouse?) two-bedroom units will be roughly 900 sq ft and will list at $650,000. The most common VIDA units will be priced in the $350,000-$450,000 range. <Penthouse price N/A>

Each unit’s layout can conform to match the owner’s stylistic choices. Instead of fixed walls, interiors will feature flexible interior panels. The owner will be able to create larger great rooms or more stylized spaces, depending on his/her lifestyle. In-line kitchens and wall-storage mounts will also serve to maximize functionality.

VIDA is set for completion in 2010.

 

• Location: 111 Ave NE & NE 8th St
• Pricing: N/A
• Units:  240

Buyer Representation

Do I need a buyers agent?

Urbancondospaces.com

Buying Real Estate in the Seattle market can be challenging and overwhelming.  Urbancondospaces.com was created to assist Seattle Condo buyers in this difficult decision.  Urbancondospaces.com not only provides the most current information, but believes in good buying representation.

Buyers agents help you with the following: 

1.  No Cost Representation
One of the biggest myths’ associated with buyers agents are that the buyer could get a better price without an agent.   This is rarely ever the case.  The price you pay for a unit at the sales center will be the same if you are buying the unit with or without representation.   Most sellers/developers need and encourage the work of a buyers agents to drive traffic through the site and to eliminate the liability of representing both parties during the transaction.     

2.  Understanding
Buying in this market requires an extensive knowledge of the market conditions, locations, and site specific information. Using a buyers agent will help you to analyze and research the important facts before making a purchase.   Buying will require an understanding of the cost per square foot, the current comparables in the marketplace, the best floor plan that suits your needs, the developer and their track record, and the quality of the finish work.  Bottom line, having someone in your corner to help educate you throughout this process will help to give you confidence in your decision. 

3.  Support
The sales staff at each project has a vested interest in selling as many units as possible for their developers.   Most “site agents” have an extensive knowledge of their project, but will not provide an objective view on other projects and what may be in your best interest as a buyer.  A buyers agent on the other hand, will be paid once you find the unit that is right for you, regardless of where it is located.  Use a buyers agent to your advantage!  It will allow you to view many different projects, which will build your confidence in making the right decision.  They can handle the pressure from each sales agent and that will allow you to have think clearly throughout the whole process.

4.  Details
A buyers agent will prove to be a jack of all trades.  Throughout the process, you will need help with many details–picking your upgrades, choosing the right storage unit, parking stall, negotiating un-advertised incentives and managing the important timelines in the closing process.   In addition, not all experiences in buying a condo are perfect.  Many times with new construction, delays can occur.  If you are delayed and have to sign an extension, you can lose your rate lock, and the sales staff that continue to represent the developer, will not always look out for your best interest.   Its important to have someone to give you support.  Be attentive, engaged and invested in your purchase, but lean on the expert to handle what they do best–making sure that you get to the closing table with all the details handled effectively and with ease.     
 
If you have any questions, and or concerns, feel free to contact us.  We will be happy to go over our process of representation or answer any questions that may come up as you search for your new home. 

Vida - Bellevue

The 12-story, 240-unit complex will be built by Tonsing Properties out of Denver, Colorado. Originally the developer planned to erect a 6-story low-rise building, but the strength of Bellevue’s condo market made for a more ambitious endeavor. The smashing success of MODA , Tonsing Properties’ Belltown venture, also lends credibility to the developer’s vision of European-style living spaces. MODA sold out in one week, with buyers ecstatic over the prospect of $150,000 Belltown condos. Some of its sub-300 sq ft units seemed to challenge even the most compact urbanite, but Seattle showed it is ready for European living efficiency.

VIDA won’t ask its potential owners to dip below 400 sq ft, but the sheer number of compact units is setting a new Bellevue standard. A typical VIDA condo will average 650 sq ft. The smallest studios will be 400 sq ft. The largest (non-penthouse?) two-bedroom units will be roughly 900 sq ft and will list at $650,000. The most common VIDA units will be priced in the $350,000-$450,000 range. <Penthouse price N/A>

Each unit’s layout can conform to match the owner’s stylistic choices. Instead of fixed walls, interiors will feature flexible interior panels. The owner will be able to create larger great rooms or more stylized spaces, depending on his/her lifestyle. In-line kitchens and wall-storage mounts will also serve to maximize functionality.

VIDA is set for completion in 2010.

 

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