Just in! Olive 8 has sold 15 condos since the begining of the year (over $10M in sales), 10 of which were sold as a bulk-sale to a foreign investor…see below for more details or click here.
Reset Pricing, Improved Consumer Confidence and Foreign Buyers Spur Sales
Olive 8 Closes Fifteen New Condo Sales Grossing $10 Million Since Market Reintroduction on 1.1.11
SEATTLE, WA. (February 17, 2011) Executives at RC Hedreen Company, the developer of Olive 8, recorded fifteen new condominium sales grossing approximately $10 million in revenue since resetting prices on January 1, 2011. The reintroduction was comprised of reduced asking prices averaging 15-25% below previous list prices (up to 40%
below original presale values), the restructuring of construction debt with US Bank and a model home showcase of the premier Sky Collection residences above the 27th floor, which offer greater natural light and views over adjacent buildings.
Were certainly encouraged by this exciting start to the New Year, says David Thyer, President of RC Hedreen Company. Were continuing to listen to buyers, establish our value and sell into an improving marketplace. Beyond attractive prices, Thyer says homebuyers today want confidence in both the product offering and the developers business plan.
(These) new closings will satisfy a third of our remaining construction debt, said Thyer. We consider Olive 8 to be
stable, with a minimal debt/unsold home value ratio. And we feel the homes are well positioned in the
marketplace.
RC Hedreen Company is planning on transitioning control of the Home Owners Association to the residents this
Spring. Our community belongs to the homeowners and not to a bank, added Thyer. This is a pivotal milestone
for Olive 8 and it demonstrates our commitment to delivering certainty, stability and enduring value within the
building.
That confidence helped spur a bulk sale of ten units to a foreign investor, represented by Julie Roh and James
Stroupe (The Stroupe Group) of Realogics Sothebys International Realty. Improving market conditions, favorable
exchange rates and the investment value at Olive 8 was compelling said Roh, the buyers agent who is leveraging
her affiliation with the Sothebys International Realty Brand. We helped our client make an informed decision
using our experience and research tools found at www.stroupe.com. Our buyer could have selected any metro area
in the US but preferred our economic outlook and the fundamentals of supply and demand for in-city condominiums.
Its a reminder that Seattle is on the radar of many interstate and international buyers; whether its for lifestyle or
investment purposes. In this instance, Olive 8 provides for both.
Stroupe points to a convergence of sharper pricing, low interest rates, the prospect of job growth downtown, rising
rents and the fact that no new condominiums are planned for the future. The (new construction) supply pipeline is
shut down, he said. Based on trends, I believe the resale market is going to shore up property values in the near
future.
The reset of remaining homes at Olive 8 followed a high-profile condo auction held during September 2010. In a
strategic effort, the closing of 32 units below the 27th floor was accelerated in order to restructure the remaining
construction financing with US Bank while simultaneously satisfying Fannie Mae requirements that now enables
greater mortgage product options to new homebuyers. A video documentary by Tom Kelly, a nationally syndicated
real estate columnist, covered the story as posted at www.Olive8Reset.com. A follow up interview with David Thyer
will be hosted on Kellys Real Estate Today radio talk show at KIRO 97.3FM this Sunday on February 20th at 9am.
Guests are welcomed to call into the program with their questions at 1.888.973.5476.