Homes above hotel appeal to wide range of buyers

SEATTLE -- Robust sales since the start of the year have resulted in 32 new sales (closed and pending) and more than $26 million in new transactions at Olive 8, a top-selling condominium high-rise downtown. The luxury hotel and condominium tower has averaged more than one new sale each week and is now more than 80 percent sold. Its representatives say the sales momentum heading into the summer shows no signs of slowing down.

"There's little doubt that the bottom of this cycle has passed and wait-and-see buyers are making a move after carefully monitoring the market for the past several years," says Julie McAvoy, a community sales director with Realogics Sotheby's International Realty.
"And there's more demand than what's being heralded in the news or shown on the Northwest Multiple Listing Service. Our team is working with dozens of prospective homebuyers that are in different stages of the decision process. Our traffic is up and more sales will follow."

McAvoy says all kinds of people are buying at Olive 8. Renters are avoiding rent spikes and choosing to build equity instead of paying a landlord. Move-up buyers are quickly selling their condos and upsizing. Move-down buyers are selling family residences and relocating to the city. Parents are buying homes for their college-age children to use while in school, with an eye toward their own move there for retirement. Homeowners who have a primary residence outside the city or state are buying second homes. Even investors are back in the market, betting on Olive 8's future value because of its amenities, McAvoy says.

Downtown Seattle condominiums made front-page headlines recently, with stories featuring Olive 8 as a shining example of what's happening in the downtown marketplace. The consistent theme was that luxury condominiums are selling. Demand is rising much faster than supply, especially for offerings such as Olive 8.

"It's a flight to quality as buyers are selecting from a finite and drastically reduced number of homes that remain available," says David Thyer, president of RC Hedreen Company and developer of Olive 8. "If you're looking for a high-quality, centrally located condominium with unparalleled hotel amenities at confident market values and an established homeowners' association, there's just one place to find it. We've got your address at Olive 8."

A recent article points to the next development cycle taking shape in Seattle, noting that one major new condominium is scheduled to break ground in the Denny Triangle this month.

While this new development will introduce hundreds of new condominiums to the inventory, the project will have little effect on Olive 8 or the current marketplace because it won't deliver homes until late 2014 at the earliest.

"A new condo project is a massive demonstration of confidence in our market fundamentals, but not entirely surprising," says Thyer. "The smart money is betting on significant price appreciation between now and then, given that current values don't yet support new construction. Historically, it's a good time to buy at the beginning of a cycle, which bodes well for our remaining homes."

While the trends speak to the market in general, not all condominiums are created equal. Only Olive 8 offers new condominium homes located above a full-service Hyatt hotel.
Residents are an elevator ride away from the hotel's second-floor fitness center, a yoga studio and Pilates room, a 65-foot saline lap pool with whirlpool, his-and-her saunas and steam rooms, and the Elaia day spa.

Only residents have access to the 18th-floor owners' retreat. The facility includes a catering kitchen, billiards room, media center, indoor and outdoor lounge, barbecue area and dog run.

The Hyatt at Olive 8 offers homeowners preferred rates for hotel rooms, valet parking, restaurant and in-room dining, housekeeping, laundry and dry cleaning, and other concierge services of a first-class hotel.

Olive 8 is Seattle's tallest residential high-rise community, with floor-to-ceiling glass and 10-foot ceilings. Homes include Italian-made Pedini cabinets, European appliances and contemporary Northwest-inspired finishes throughout.

Each home has hardwood flooring, a balcony and energy-saving fireplace.

Bathroooms include Kohler faucets, designer above-mount sinks, deep soaking tubs and stone floor, shower and tub surrounds.

Olive 8 is sold out below the 30th floor, so remaining homes begin at what would be the penthouse level of most other buildings on the market.

"We've sold out of several floor plans and others are down to just a few options in many cases," says McAvoy. "We have just 40 homes remaining, and at our current pace of sales, most of those will be purchased this year."

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