The Toll On Seattle Construction

The Seattle PI has an article today on The credit crunch takes its toll on construction:

“We are seeing some projects get delayed,” said Scott Wyatt, managing partner of Seattle architecture firm NBBJ. “There’s a strong perception that what’s happening will sort itself out — though there are many guesses as to how long that will take and what it will look like when it’s done.”

NBBJ’s view of the health of the city’s construction industry is guardedly optimistic.

“There are no signs yet of a disastrous slowdown,” Wyatt said. “We’re still seeing demand, right now, today — we’re seeing requests for new projects. Real estate is long term, and people will make long-term decisions. But we are seeing that the lack of capital will likely have a slowing effect.”

Surprisingly the article doesn’t touch on the layoffs at the city’s local architecture firms.

I also was interviewed by Josh Kerns at 710 Kiro for MYNorthwest.com on the same topic, Local construction halted by unstable economy.

A few minutes before going down to talk to him I read through some old blog posts here and pieced together this:

Gone rental: Montage, Domaine, Expo 62, Maris Shilshole, The Marlborough, Moda

On hold: Ava, Heron and Pagoda, One Hotel

Built or soon to be built but likely to have a hard time moving remaining units: Brix, Trace North, Gallery, Leona, Veer, Rollin, Equinox, Escala

Built or soon to be built and mostly sold: 1521, Enso

Layoffs: Mulvanny, Callison, Mithun, Weber Thompson

Likely to go rental: 1111 East Pike, Ruby

And September 08 condo sales were half of what they were in September 07.

Let me know what I’m missing from those listings and I’ll add them.

But it is not all doom and gloom. People are still building. From the Seattle Times Vulcan plans more apartments, renovation of historic South Lake Union laundry:

Vulcan plans a 330-unit apartment building on most of the block in South Lake Union between Harrison and Republican streets and Pontius and Yale avenues North. The century-old Supply Laundry building, also on the block, would be preserved and renovated as part of the project.

And Aubrey has wind of Liz Dunn’s next project, Pike-Pine buildings slated for renovation:

Liz Dunn of Dunn & Hobbes and Scott Shapiro of Eagle Rock Ventures announced on Monday that they had acquired the two buildings, at 1515 and 1531 Melrose Ave., and plan to renovate them once the current tenant, Metro Auto Rebuild, leaves at the end of January.

melrose2 The Toll On Seattle Construction

So, anyone here bought a condo or planning to buy a condo in the next few months?

About Matt

Matt , Urbnlivn's publisher, has a love for lofts with industrial features and new construction condos that is only eclipsed by his passion for outdoor sports and urban living. Phrases such as “polished concrete” and “exposed brick” are music to his ears. You can also find Matt on Twitter or skiing.

  • andy

    what do you guys think about trace north? i bought into the building early and i’m curious about its outlook.

  • andy

    what do you guys think about trace north? i bought into the building early and i’m curious about its outlook.

  • andy

    what do you guys think about trace north? i bought into the building early and i’m curious about its outlook.

  • Dan C

    Andy,

    What do you want to hear? I don’t have a high opinion on Ballard condos, but if you like it, who cares?

    If you bought the condo as a HOME and plan on being there for a bit and like the location…you are fine. Why are you questioning your decision?

    If you bought the place as an “investment”, you may be in trouble.

  • Dan C

    Andy,

    What do you want to hear? I don’t have a high opinion on Ballard condos, but if you like it, who cares?

    If you bought the condo as a HOME and plan on being there for a bit and like the location…you are fine. Why are you questioning your decision?

    If you bought the place as an “investment”, you may be in trouble.

  • Dan C

    Andy,

    What do you want to hear? I don’t have a high opinion on Ballard condos, but if you like it, who cares?

    If you bought the condo as a HOME and plan on being there for a bit and like the location…you are fine. Why are you questioning your decision?

    If you bought the place as an “investment”, you may be in trouble.

  • andy

    dan, i bought in trace north on capitol hill, not ballard. I was curious about the remaining unsold units going rental, like at carbon 56.

  • andy

    dan, i bought in trace north on capitol hill, not ballard. I was curious about the remaining unsold units going rental, like at carbon 56.

  • andy

    dan, i bought in trace north on capitol hill, not ballard. I was curious about the remaining unsold units going rental, like at carbon 56.

  • Dan C.

    Sorry, for some reason i thought Canal Station…my bad. I have no idea why I confused the two.

  • Dan C.

    Sorry, for some reason i thought Canal Station…my bad. I have no idea why I confused the two.

  • Dan C.

    Sorry, for some reason i thought Canal Station…my bad. I have no idea why I confused the two.

  • Ilona

    Andy – I received a mass email on Friday from EK Real Estate group noting that they are no longer the listing agent for Trace. That would meant that either Trace is switching marketing groups and will re-list, or they’re going apartment. Correct me if I’m wrong, but I think that they haven’t hit the 50% sale mark yet, which means they don’t qualify for FHA financing. FHA is crucial for new condo projects, especially where you have such a high number of 1st time buyers. I’m only speculating, but it wouldn’t surprise me if they started leasing units. That would be my guess.

  • Ilona

    Andy – I received a mass email on Friday from EK Real Estate group noting that they are no longer the listing agent for Trace. That would meant that either Trace is switching marketing groups and will re-list, or they’re going apartment. Correct me if I’m wrong, but I think that they haven’t hit the 50% sale mark yet, which means they don’t qualify for FHA financing. FHA is crucial for new condo projects, especially where you have such a high number of 1st time buyers. I’m only speculating, but it wouldn’t surprise me if they started leasing units. That would be my guess.

  • http://twitter.com/mattgoyer mattgoyer

    Trace has transitioned from ek to MCM for sales support.

    They’re also taking FHA buyers but they don’t close until they hit 50%…

  • http://twitter.com/mattgoyer mattgoyer

    Trace has transitioned from ek to MCM for sales support.

    They’re also taking FHA buyers but they don’t close until they hit 50%…

  • http://blog.mattgoyer.com Matt

    Trace has transitioned from ek to MCM for sales support.

    They’re also taking FHA buyers but they don’t close until they hit 50%…

  • http://Equinoxcondos.com REGUY

    I have heard Equinox sales is at about 61 sold out of 204. Any news of these things converting to apartments, because that would be a great place to rent. Is it true they have to hit 50% sales before they can close a unit?

  • http://Equinoxcondos.com REGUY

    I have heard Equinox sales is at about 61 sold out of 204. Any news of these things converting to apartments, because that would be a great place to rent. Is it true they have to hit 50% sales before they can close a unit?

  • Matthew

    Anyone considering buying right now when faced with:

    Massive global deleveraging
    RE price declines in the Seattle area for years to come
    deflation
    Most likely the longest, deepest recession in the last 80 years

    Needs to have their freaking head examined. Stay on the sidelines, keep saving cash for a down payment, the deals are going to get better and better.

  • Matthew

    Anyone considering buying right now when faced with:

    Massive global deleveraging
    RE price declines in the Seattle area for years to come
    deflation
    Most likely the longest, deepest recession in the last 80 years

    Needs to have their freaking head examined. Stay on the sidelines, keep saving cash for a down payment, the deals are going to get better and better.

  • Matthew

    Anyone considering buying right now when faced with:

    Massive global deleveraging
    RE price declines in the Seattle area for years to come
    deflation
    Most likely the longest, deepest recession in the last 80 years

    Needs to have their freaking head examined. Stay on the sidelines, keep saving cash for a down payment, the deals are going to get better and better.

  • http://Equinoxcondos.com REGUY

    llona…

    Correction…Equinox is 3/10 sold. What a cool project, though. I think its overpriced, but maybe it will go to apartments? Anyone heard of anything? I think an agent said the closing date its March 15th, so its coming up, but I have heard they wont hit that date. Same story as Brix. Brix was late, and my guess is that Equinox will be too.

  • http://Equinoxcondos.com REGUY

    llona…

    Correction…Equinox is 3/10 sold. What a cool project, though. I think its overpriced, but maybe it will go to apartments? Anyone heard of anything? I think an agent said the closing date its March 15th, so its coming up, but I have heard they wont hit that date. Same story as Brix. Brix was late, and my guess is that Equinox will be too.

  • http://Equinoxcondos.com REGUY

    llona…

    Correction…Equinox is 3/10 sold. What a cool project, though. I think its overpriced, but maybe it will go to apartments? Anyone heard of anything? I think an agent said the closing date its March 15th, so its coming up, but I have heard they wont hit that date. Same story as Brix. Brix was late, and my guess is that Equinox will be too.

  • http://Equinoxcondos.com REGUY

    I agree, Matthew. Well said. People need to keep their money on the sidelines and not pay these insane prices when the product isnt worth it! Prices are far from the bottom…

  • http://Equinoxcondos.com REGUY

    I agree, Matthew. Well said. People need to keep their money on the sidelines and not pay these insane prices when the product isnt worth it! Prices are far from the bottom…

  • http://Equinoxcondos.com REGUY

    I agree, Matthew. Well said. People need to keep their money on the sidelines and not pay these insane prices when the product isnt worth it! Prices are far from the bottom…

  • comalley

    Rumor on the street is that Callison, through continued terminations/layoffs will be at 400 (down 50%) by spring. The private equity firm that bought into the company is controlling the strings I'm told. Callison that has a long standing reputation for standing by it's people has caved to the desires of their new owners. It's panic in the streets folks.

  • comalley

    Rumor on the street is that Callison, through continued terminations/layoffs will be at 400 (down 50%) by spring. The private equity firm that bought into the company is controlling the strings I'm told. Callison that has a long standing reputation for standing by it's people has caved to the desires of their new owners. It's panic in the streets folks.