From the this-will-teach-me-to-read-the-
news-at-night-instead-of-the-morning-department:
Just a week after dumping Expo 62 (Seattle PI article on it for a different spin) The DJC reports that Intracorp is now trying to dump the 91 unit and ill situated Domaine. From the broker’s site:
Moran & Company is pleased to announce that it has been retained as the exclusive listing agent for the sale of Lake Union View Apartments, a 91-unit pre-sale apartment community located in Seattle’s downtown/Lake Union. This Class-A apartment community is situated on a hillside overlooking Lake Union, providing residents with unparalleled views not experienced elsewhere in Seattle. Lake Union View Apartments is one of very few new core opportunities to come onto the market in Seattle within the past years. Upon completion, the property will offer some of the highest quality interior finishes and most discriminating design in the market. Lake Union View Apartments is currently under construction and is being offered as a pre-sale on an “as is, where is” basis. Closing can occur immediately on or before issuing a temporary certificate of occupancy.
Any readers buy at Domaine?
But the big question is, who is next? With Domaine next in the deadpool I feel like most downtown projects are safe except for maybe Trio but I don’t have current sales numbers for that project. I think we’ll have to look further afield for the next victim. Will it be Hjarta? Florera?
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26 responses so far ↓
1 Mike // Jan 23, 2008 at 12:11 am
I stopped by Trio this weekend and actually took a building tour for the first time. The lobby is actually very nice, complete with pool table. It was sort of downhill from there though with the hallways reminding me of holiday inn and lack of kitchen appliances. If a Trio unit even has a range, it will be electric not gas. The alcove / open 1 bdr units feature microwave sized convection ovens though the space saved is nearly negligible. The roof at Trio was a lot better than Parc, which I looked at the same day.
I don’t think there is any chance of Trio converting to apartments at this point. They are selling aggressively and there were two contracts being written up in the hour I was there on Sunday. The elimination of Expo probably doesn’t hurt either.
2 j // Jan 23, 2008 at 7:21 am
Matt, what was that pdf report that you posted a few months back, that showed updated sales figures for current projects?
3 Chris // Jan 23, 2008 at 8:03 am
Its tough to change course once you’ve spent the money for condo finishes. Like $.85 on the dollar tough
4 Dan C. // Jan 23, 2008 at 8:18 am
I bet you that Hjarta is next. I bet Intracorp has canned whoever headed up their multi-family department. They just can’t seem to do anything right.
Domaine was f-ed from the start. Terrible location, terrible entrance/exit intersection, ugly, too-big etc. That site would have been much better served by a building of similar height, but much less bulky and intrusive.
5 bitter stinking renter // Jan 23, 2008 at 8:39 am
news like this makes me laugh at anyone who said Expo62’s death was due to ‘poor marketing’
wake up guys.
6 Peckhammer // Jan 23, 2008 at 11:08 am
“That site would have been much better served by a building of similar height, but much less bulky and intrusive.”
Yeah, something along the lines of a methadone clinic, or possibly a suicide prevention center With all those needles scattered along Aurora, and it’s proximity to the Aurora Bridge, either option would work.
7 Jamil // Jan 23, 2008 at 12:08 pm
Trio has 42 sold of 116 units total, as of 1/20/08.
8 curious george // Jan 23, 2008 at 12:37 pm
What’s going on with 1 Hotel and Residences? Is that project next to fold? That site has been very quiet for several months now, and there’s no crane onsite. It’s a great location.
Has the ubber lux hotel/condo market for Seattle been maxed out?
9 Dan C. // Jan 23, 2008 at 1:14 pm
Peckhammer,
Agreed. I can’t believe the junkies I see when I take the Dexter exit off 99 South. That area is a sh*thole.
10 Dan C. // Jan 23, 2008 at 1:19 pm
There never was a market for uber lux hotel/condos in the first place. Maybe hotel only, but just one (Four Seasons).
11 The Seattle Condo Blog » Blog Archive » The Other Shoe Drops - Domaine // Jan 23, 2008 at 1:50 pm
[…] Matt’s post and DJC […]
12 Downtown Guy // Jan 23, 2008 at 9:07 pm
Dan C.,
Can you explain why you feel there has never been a market for “uber lux hotel/condos” in Seattle (except for Four Seasons)? It seems to me that with the separation of the city suites vs. the condo homes at 1 Hotel that there really wouldn’t be an issue in this instance. Looking for clarity here. Thanks!
13 Mark W // Jan 23, 2008 at 10:48 pm
I’ve had kind of the opposite question. I don’t doubt there’s some identified demand given the construction, but I wonder *why* there is demand for hotel/condo combos. After all, most of the services that places like Olive 8 advertise as highlights of their hotel ties are readily available in most towers if there’s a concierge. Its easy to hire house-cleaners, get restaurant meals delivered, send out dry-cleaning, etc. These may not have the Hyatt, etc., brand, but I can’t say I’m impressed by brand name-dropping. Seems that the added cost would narrow the eventual resale market for those units.
Of course, I’m just as fine in a Motel 6 as I am in a Hyatt when I travel.
14 Dan C. // Jan 24, 2008 at 7:57 am
As I said, I think that there is a market for one uber-luxury hotel in Seattle,Four Seasons. It has already broken ground, has a recognizable brand name, decent pre-construction sales and in a great location/view (albeit the streetscape leaves a little to be desired).
Problems with Hotel One (and condotels in general)
-Prices are ranging from the low $600k up to $10M. (ridiculous, this is a one bedroom condo)
-Competition with other “innkeepers” in your building for rental income. People are able to undercut others pricing
-VERY illiquid resale market, especially in down-times.
-HIGH fees for manager (Starwood) to manage your condo
-”Investors” are encouraged to participate
-If you choose to actually live in your condotel, you are subject to all the other hotel guests on a continuing basis, whose activities will not be regulated or monitored, because they are “guests”.
Downtown Guy, I agree that seperation of the “city-suites” and traditional condos may provide a buffer, but I believe you still share the same lobby/elevator. In reality, the “city-suites” are just condos for rent, no other differences.
These are my personal opinions.
15 Ballard Guy // Jan 24, 2008 at 4:14 pm
I went by Hjarta recently. I don’t think Hjarta is going to be sold. They have just finished the building, and are beginning to close on units.
16 tomasyalba // Jan 24, 2008 at 9:31 pm
Funny about Intracorp, poor dears.
Hotel 1 is pretty odd right now; their line in late October was, “we’ll hold off on pouring foundation due to holiday concrete moratorium downtown.” Then around December they announced they were refiling plans with the City to remix with fewer condos and more condotel rooms.
Believe I read some national reports last year that hotel/condo projects were being scratched/repurposed left and right; perhaps we’re just late to the party as usual.
17 Condos go apartment. » Smarter Neighbors // Jan 24, 2008 at 10:50 pm
[…] hear about everyday in Seattle, but the planned Domaine condos on West Lake Union are being shopped around to investors as […]
18 nitsuj // Jan 24, 2008 at 11:19 pm
“Believe I read some national reports last year that hotel/condo projects were being scratched/repurposed left and right”
WAIT!! You mean my unit at the W in Las Vegas isn’t going to be built???
19 Jon // Jan 25, 2008 at 4:04 pm
For those who purchased at Domaine and would like something comparable… you might want to view http://www.veerlofts.com or http://www.rollinstreet.com.
Both are located in the South Lake Union of Seattle… surrounded by Whole Foods and Lake Union. The Discovery Center is open daily from 11-6, and is located on the corner of Denny and Westlake.
Stop by and take a look!
20 J-Ro // Feb 13, 2008 at 4:54 pm
I would have to disagree. Veer Lofts and Rollins Street are not comparables. Domaine was doomed from the start, Intracorp though they could get away with cheap cheap cheap. I would have to say that Veer & Rollins are a much better product than Domaine.
21 sevrin // Feb 20, 2008 at 3:11 pm
So, I bought a unit at Domaine on the east side with a water and mountain view and a bunch of upgrades. Is this development pretty much scrapped? If so, what sort of position does that put me in? I bought the november before last, and trying to get any answers has been impossible.
Put my faith in Mithün and their reputation, looks like im a sucker.
22 Jro // Feb 20, 2008 at 6:21 pm
Mithun is not to blame. They are very good architects. Intracorp is to blame - the location sucks no matter how you look at it, no parking and on 99. It is also a wood frame construction with a 99 next to it so it will be very noisy. What was your projected closing date suppose to be? If they extend it outside of what you are in contract for you can get out of the deal. Did you pay for your upgrades upfront? If so you will most likely not get that money back w/o putting up a pretty big fight. THe reason you are not getting answers is because they are trying to figure out whether to convert it to apartments, that would be my guess.
23 sevrin // Feb 20, 2008 at 8:51 pm
yeah, the location is not the best, but in my mind, the view made up for it, my unit is not on the 99 side, it was on the front in the townhome section. the original closing date was mid april last year, and the last date I got from them was end of February.
If they do convert, where does that leave the buyers that have already paid deposits? is there an automatic refund or does the sale go through and I am an owner of an apartment? Sure would be nice to heqr from them so I can figure out my plan of action.
And yeah, I paid for upgrades up front.
24 jo // Feb 20, 2008 at 8:55 pm
you’ll get all your money back - upgrades, down payment
you won’t have to put up a fight
25 Jon // Feb 20, 2008 at 9:01 pm
That may not be necessarily true, Jo. It would all depend on the contract and the fine print… I know that there are some contracts that would, in case of BKO, make it so that recovering earnest money be difficult. I doubt that would be the case here…
To answer your question about owning an apartment… I doubt that would happen. When they figure out what is really going on… whether to sell to a apartment company or to sell to another developer who is comfortable with a lower return ratio… or if they decide to keep it (if they get a few low ball offers throughout, they may want to keep the project as they can do more).
Nothing is guaranteed… but I would relook at your contract to see what happens if something goes wrong with the project.
26 sevrin // Feb 21, 2008 at 9:19 am
hmm, well I will continue to poke and prod them to figure out what I can. Still trying to get in touch with my agent and get him on task as well. I will come back here and keep anyone interested posted on the progress and revelations.
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