Seattle has by far the most cranes found in the downtown of any city in USA with construction trying to keep up with the droves of new residents. Most of those cranes are building commercial high-rises and apartments. While most developers focus on apartments, Vancouver B.C. based developer, Burrard Group has decided to focus on home ownership and build one of the few condominiums set to open before 2020, the Nexus.
After the financial crisis of 2008, construction slowed down and it took time for home buyers and developers to regain faith in the market and the city. Since 2015 the Seattle market has been on fire and a couple new condominium projects have been completed. The new condo projects in Seattle have consisted of the Insignia in Belltown (2015/2016), Luma in Capitol Hill (2016), and Gridiron in Pioneer Square (completion in late 2017). As of now no other condo buildings are slated to be finished prior to Nexus in 2019.
ABOUT:
Consisting of roughly 382 residences, and a couple commercial spaces on the ground level, the Nexus will stand 41 stories tall and will be one of the most unique additions to the Seattle skyline. Located at the cusp of South Lake Union, Capitol Hill, and the Denny Triangle, the location is exceptional. Prices range from affordable studios in the mid-300’s to luxurious, 2 million plus, two-story penthouses. The construction is slated to officially break ground on March 14th, with completion of the building currently estimated to June 30th, 2019. Nexus will be the first “smart” high-rise with a multitude of tech features that will the first of their kind. The building will have an app that will allow residents to reserve amenity rooms, track their unit’s energy consumption, lock their front door among other things yet to be revealed. This smart high rise is certainly very appealing to the locals at nearby companies like Amazon, Google, Facebook, Fred Hutch, and Starbucks.
A BET ON THE FUTURE:
What makes Nexus particularly interesting is the sales process. It is unique when compared to the typical way new construction is sold like Luma and Insignia. Their pre-sales started just a year prior to completion, Gridiron is doing the same. Nexus on the other hand is doing pre-sales nearly a full 3 years in advance, before even construction has broken ground! This means that anyone committing to the Nexus is waiting a few years before they receive their keys. Those who are investing in the Nexus now are clearly expressing confidence in the Seattle market. Considering over 80% of the building was initially reserved back in mid-2016, I would say most believe the Seattle market will stay strong.
R & R
With early commitment comes risk and reward. As with any new construction to secure a unit, a buyer must commit 5% of the sales price. Considering the sales prices, this comes out to be, on average, between 20-45K.
The biggest risk for buyers to be aware of is that there is no financial contingency included in the contract. This means that the buyer must bring money to the table when the building is completed, either through cash or via loan. Unless you are paying cash, another risk that those involved are undertaking is the uncertainty of interest rates.
There are a lot of nuances when purchasing a new construction. I know the Nexus extremely well and have been studying the project over the last year since the reservation period in mid-2016. I personally am investing in the project as well as three of my clients.
The Reward
There is a reason over 80% of the 382 units were originally reserved. Clearly many people feel the reward out-weighs the risk, myself included as well as three of my clients! In any case, the main reason many are investing this early in this project is because the sales prices of the units are comparable to today’s fair market value and once committed, the price is locked. Therefore, if the Seattle market continues to dramatically rise like it has been over the last 3 years, everyone committing now will receive the keys on June 30th 2019 with a substantial amount of equity. For example, if a unit that you reserve today for 400K, appreciates at 7% a year until mid-2019, you would be looking at roughly 60+K in instant equity.
AMENITIES:
Nexus will feature a variety of amenities located on the 7th and 41st floors.
Floor 7 will feature:
- Yoga Studio
- Fitness Center
- Dog Run, Pet Cleaning Area, and Pet Lounge
- Media Lounge
- Deck
- Co-Working Office Spaces/Owners Lounge
Floor 41 will feature:
- Sky Lounge, Fireside Lounge, Sky Parlor
- Catering Kitchen and Exhibition Kitchen
- Garden Area
- Private Dining Room
- Conference Room
- Game Room
- BBQ Area
There are a lot of nuances when purchasing a new construction. I know the Nexus extremely well and have been studying the project over the last year since the reservation period. I personally am investing in the project as well as three of my clients. I have studied it extensively. If you have any questions about the project or want to check out the sales center together let me know! I can be contacted at 425.299.7557 or cyrusfiene@cbba.com