Let's start in Midtown. Escala (currently, Seattle's largest condominium project under construction) rolled out their launch of Club Cielo a few weeks ago. What's the big deal with Club Cielo? For one thing, the 25,000 square foot club will be managed by Columbia Hospitality, which manages Salish Lodge in Snoqualmie and will also be running the soon to be opened Four Seasons.
The Club also takes up the entire 2nd floor of the building and includes a private dinning area, spa and fitness center (exercise classes, pedicure, manicure, 2 resistant lap pools, massages, steam room), 18 seat wine cave, theater for screenings/meetings, business center, cocktail lounge, dog run, and full service outdoor terrace with menu.
This private club is only for residents and not open to the public. There is a mandatory minimum monthly spend of $250 / month (this is in addition to the homeowner dues). Exclusive services include access to private chefs for private parties, house keeping, and dog walking. Club Cielo is probably one of the most luxurious amenities that you can find in Seattle condo living but it definitely comes at a price.
So far, approximately 40% of the homes in Escala are sold. The developer is still withholding some units for later release. Construction is going on up to the 19th floor, averaging one floor every 8-10 days. Estimated completion will be around September 2009. Two restaurants will be going into the street level and will be announced March/April 2009.
During this slow market, you would think that prices in Escala will be coming down. Instead, just a few months ago, they announced a price increase (between 3 and 7%) for their unsold homes. Right now, the price per square foot is averaging around $975. No buyers' incentives are available for this project. According to the sales center, the construction of Escala is fully funded so there's no way you will see it turning into a luxury apartment.
Besides the location and sheer size of the building, the most unique selling point for this project is Club Cielo. Furthermore, every home comes with a balcony (with the smallest one around 120 square feet). The private foyer entryways give most units a more private residential feel than long hallway you see in most typical condos. Since the building is in a dense part of town, floor to ceiling windows will help bring in as much sunlight as possible. The biggest drawback for the building is the high homeowner dues (79 cents per square foot). Overall, this is a great building if you aren't budget sensitive and are looking for a condo that has larger square footage and allows you to pamper yourself with everything under the same roof without stepping out the building.
(Updated 11/13/08: The sales center has informed me that Club Cielo is partially open to the public where 100 memberships will be available to non-residents.)
1915 2nd Ave
Escala Update February 2007
Escala priority presale event
Escala: Cristalla's biggest competition?
haha. nice post. let me guess, are you the developer? or are you a sales agent? that building is in trouble and so are the developers. everyone knows it, buddy. way too expensive for a soft market. after the buyers who cant close next year and no sales untill 2010, i hope that developer enjoys trying to pay his loan with 200 units sitting empty.
The place is a dump with sub-par finishes at these prices per square foot. Also, it looks like it fell out of Vegas…. that would be “Old” Vegas. How’s that saying go again? Oh yes, “lipstick on a pig.” Or, “trying to polish a turd.” Face it, folks, price increases to try to spark interest are simply not going to work in this economy (and it won’t work for a couple more years). That’s an old-school tactic that is relatively transparent to consumers these days. If the building does get completed, then it will indeed only be occupied by about 50% at these prices. STUPID STUPID STUPID! I really do find it hilarious!
I do think their pitch is a bit odd. A lot of condo marketers pitch the downtown lifestyle, usually featuring young, skinny models shopping, dining at some hip restaurant, hitting the Pike Place Market and other assorted urban activities. All well and good, I suppose – but you have the option of making your own choices.
With Escala, you’re committed to the tune of $3000/year ($250/month) to some lifestyle that they choose. I don’t drink wine, I don’t pedicure, and I’ll take the menu at the Hurricane Cafe over those of most fancy restaurants.
Club Cielo is a unique selling point, but as someone who can afford Escala (at least on the lower floors), it’s a turn off.
I really liked your report on Escala, very accurate. I was surprised to see the comments that you received, very inaccurate. It sounds like a couple of guys have a personal beef with the developers at Escala or something; maybe they were denied financing and are unhappy about it. I will be relocating to Seattle in Spring so I have been doing my homework for some time now. There is not a lot to choose from in the high-end market that is for sure. The finishes at Escala are modern, I am tired of seeing all the downtown condos look alike with the neutral pallets. Escala stood out for a couple of reasons that you will not find anywhere else: Private & Semi-private elevators (the 1bd I am interested in is a private foyer); spacious interiors; and large private decks.
The knock on Club Cielo is ridiculous…if you are going to live in a condo you are going to pay HOA’s…you might as well get something for it. The best part is the club is private so jokers like “criminalpolice” and “The MD” won’t be walking around pissing and moaning, ruining my ambiance!! And before they run off at the mouth they should look at the HOA budgets for condo’s downtown; Club Cielo will probably be the only one that will not have an increase in coming years…I have made that mistake before.
And what was the comment about price increase?? I have been tracking condos for almost 24 months and I have been working with a salesperson for each building I am looking at. Escala has had only 2 pricing changes since they broke ground…that is the norm for new construction. They are not planning any price changes till the market starts to pick up; cannot fault them there. The 1bd I am looking at is at $594/sqft…seriously, in Downtown Seattle?!? Cannot find close to that in SD.
Keep writing, I like your blog
SanDiegoBreeze, GET REAL. You’re such a Seattle realtor. VERY TRANSPARENT and quite an elementary attempt to convince Seattle buyers the Escrapa is a decent condominium. Your name wouldn’t be Sam, would it?
Anyway, I know SD as I go there about once every two weeks. Downtown SD is a GHOST TOWN and at $594 / square foot, I can find any kind of junk condo to my heart’s delight in that Southern California hell hole. That place is a dump in general anyway.
SanDiegoCheese, either you’re connected somehow to the developer/broker, or you have VERY POOR TASTE. C’mon, you CAN’T seriously think this sh*thole looks like a good place to call home, can you? IT’S FRIGGIN UGLY! I SWEAR IT FELL OUT OF LAS VEGAS and DONALD TRUMP’S BACK SHELF OF SH*TTY CONDOS! The place is in very poor taste… PERIOD! I don’t even know the developer.
I really don’t understand why you have resorted to name calling. I personallly don’t like the Escala building and when I have more time I will elaborate on my reasons for this. However, to call someone names and call them out as a gasp! REALTOR! is ridiculous. Keep it factual on this site.
The MD – Internet Tough Guy
SanDiegoBreeze writes: “The knock on Club Cielo is ridiculous…if you are going to live in a condo you are going to pay HOA’s…you might as well get something for it.”
Since I was the only one to comment on it, I assume this was directed at me. Saying that the amenities of Club Cielo aren’t to my taste isn’t a knock on the club, only noting that some features can both draw and limit interest from potential buyers. I like swimming pools, but I wouldn’t buy a house with one – that’s certainly not a knock against swimming pools.
But your references to the HOA dues is off. Escala has high HOA dues of .79/sqft, which indeed should cover a fair amount of amenities. But they don’t cover Club Cielo – that’s an additional $250/month.
I’d just rather use that extra $3000/year for another vacation somewhere rather than to subsidize someone else’s pedicure.
I rent a 1044 sqft apartment downtown – Escala is part of my view, in fact. $2095/month. Two balconies, good concierge service, excellent fitness center with pool et al. My unit at Escala would require $1075/month between HOA dues and Club Cielo fees.
As a seasoned condo “Flipper,” I have decided to purchase in the Escala. The days of making quick large sums of cash are gone for now. I have lived in many high-end buildings in the downtown Seattle area and I feel that the Escala will be a great long-term investment and a wonderful place to call home. My main reasons are the quality of construction, space usage, private foyer, finishes and upgrades, the Club Cielo, and the location.
The dues are higher than most buildings but you get what you pay for. This will be a pampering environment that will be well run by a professional staff. Since I have lived in other buildings the shock has been how unprofessional it can become once the building is turned over to the HOA, so for me, I am willing to pay extra for that extra-staffing environment.
The monthly minimum $250 spending at the Club Cielo had to be thought through for me. I realized I will want eat at the restaurant or take dinner back to my condo, and I will most likely treat myself to a monthly massage at the Day Spa. The $250 can cover many types of things.
I know the Escala is not for everyone, but as someone that has made monies from buying and selling condos. I now ready to grow roots here at the Escala.
LOL! I wouldn’t call the Escala is a good investment with the high dues and obligatory Club Cielo fees, which are the equivalent of a rent and a portion of which could be invested somewhere else. But if you have cash to burn the lifestyle can be nice.
I’ll buy a unit if I can get it for $400/ft. Any takers?
John Midby, the Developer, is going to have to swallow his pride and arrogance and face the facts. There are too many facts to mention but the one that he will have to face NOW and not later is that in order to save the current buyers he has, he will have to go to all of them and lower the prices on their homes to match today’s economic (long standing), price reductions in Seattle.
Why lower the prices of the current buyers you ask? Because, he has to show them that he understands the market and the need to keep them happy and committed. There is nothing like bad press and word of mouth. He has an opportunity to make things right with them first. He must bring back that fuzzy, warm feeling and show everyone that it’s more than just making a buck (millions that is), and that he builds for “People and not spreadsheets”!
NO ONE is buying his dream at his over the top prices and disillusioned belief of what buyer’s are willing to pay for. Regardless how red in the face he gets at all of his events it’s not going to make anyone believe in him, his project and Club Cielo. Value is King and Escala right now is far, far from being a value.
He needs to listen to what his Sales Team is telling him (DRASTICALLY LOWER PRICES; GET RID OF THE FEE ON CLUB CIELO).
The fact that I’m a buyer and realtor doesn’t change this message. If only one, just one developer listened to the majority (that being current failing projects), they could become the biggest hero with the buyer and make a name for themselves to continue building successfully in Seattle.
I agree the mandatory Club Cielo fee is a bit much. I still find this project to be the most interesting Condo in downtown though. But tend to agree the pricing seems a bit out of step with the current market conditions.
Re “Value is King and Escala right now is far, far from being a value.”
I didn’t think that Escala was ever positioned for the “Value is King” buyer, especially with its private elevator vestibules, larger than typical floorplans, high HOA dues and mandatory Club Cielo spends. Given how far along construction is already, and they may already be beyond the point of no return for repositioning Escala for the value buyer.
That said, I’m curious how deep their pockets are, given that the economy has gone from boom to bust, credit has tightened, and lending requirements are now much more restrictive than they were for the early buyer/prequalifiers.
All in all, though, I’ve always thought that even in the good times all the developers targeting the high end of the Seattle market (Escala, Olive 8, Ava, et al.) seemed to misjudge not only the size of the top end market, but how many in the top end even wanted a downtown condo. I just figured that there must be a segment of the population that I never seem to cross paths with.
Midby closed the $175m final financing for Escala in Oct 2006, so I doubt the current crunch will have en undue impact. Of course, if it remains largely unsold in 2010, that’s a different story.
Wendy,
I have bought in the Escala and I see the prices of other (already built and some new) condos lowering prices. When would it be advisable to buy another high-end condo in another development? If I do not go through with my purchase I lose my 5% 🙁
When I think about this, it seems better to just stay at the Escala so I do not lose my 5%, but some other condos are looking very appealing due to price lowering.
I just hate to lose my 5%!
If the value of your Escala unit is < 95% of the price you agreed to pay, then you effectively lose the 5% on paper by closing at Escala. If you're renting and buying somewhere else now gets you into a home sooner, then whatever you're no longer throwing away on rent (less HOA dues) is savings against your 5% loss. If you find a comparable unit for more than 5% less that what you're committed to at Escala, you could still come out ahead even when you give up the 5%. If your new choice has lower HOA dues and nothing comparable to Club Cielo expenses, it could take a while but you'd make up the $5000 through those long-term savings. Does the new unit have lower property taxes than your Escala unit? That's another potential savings. Losing 5% sucks, but when you compare what you're committed to to what your other options are - and it's not just price - it's possible that changing your plans may put you ahead by more than that 5%. But you would also be giving up location, features and intangibles that made Escala appeal to you in the first place. What are those worth to you? The housing market will eventually recover. How long are you likely to live wherever you buy, and how long do you think it will be before the housing market recovers? Are the others you're considering sufficiently bought up so they're not likely to go rental on you? Have tightening credit restrictions impacted your ability to borrow what you need to complete your Escala purchase (some folks have reported this in various blogs; if you no longer qualify, you might have to give up your 5% and buy elsewhere)? Does walking away impact one's credit history or credit score? Are there other potential adverse consequences from walking away from the 5%, besides the ones to your wallet? Lots of things to think about.
Thanks for the your opinion and help. I know the things I like about the Escala will be difficult to duplicate in another building. I think it would be best for me to just go through with the process including the inspection, and see how the market is in 9 months when the Escala is scheduled to open.
If my purchase price is “insanely” high compared to the current housing market at that time, then I might not go through with it? If it is okay, I will stay with it. I do plan to live there at least 10 years.
I just monitor the downtown condo market and I have noticed many condos’ prices dropping in buildings that I like. They lack things that I like about the Escala but are very nice.
Hopefully, 2009 will helpbe when the market recovers.
(Recently posted on a different blog about Escala and the market in general; I think this blogger may be right)
You sound like Matthew Gardner 3 years. 1. Positive about the Seattle market and being insulated from the national market because of us not over building, 2.There being a demand for uber expensive luxury high rises in a city that has never had them before. 3.”Signs” of a sustainable market even in rough times.
Well, have you seen what he has said lately. The economic professional who forecasted a bright future. Everyone wants to pitch a positive spin somewhere to give hope of a recovery. I agree, that recovery will happen eventually. However, there are no signs of it happening this year at all whatsoever! Don’t call me ignorant to that fact because I’m reading the same articles you are. 4 Seasons, Olive 8, 1521, Escala, Washington Square, Bellevue Towers and Bravern are all in trouble. They have way to much inventory to sell in a depressed market that will take them years to sell. Don’t tell me that they envisioned sitting on finished product for 3 to 4 years after completion. The banks want their money tomorrow not in 36 to 48 months. These developers pockets are not deep enough to pay close to a million dollars each month if not more to cover their out of pocket carrying cost.
Then there is the problem with close to 30% fallout if not higher on the homes that have sold at these towers that will not close. Those buyers can’t sell their million dollar homes to close on the one that they purchased at one of the expensive towers.
I bet you that 1521 will loose 40 to 50 current buyers before it’s all said and done. Then what?!
You’re vested in Escala, you’re the Real Estate agent, this is how you make your living. But I am the voice of the public who thinks like me and is sitting on the fence and waiting for the sky to start falling. It actually already has, but I think that it’s just starting for these luxury towers. I think by 2010 these developers will finally see that all the articles they write, all the pictures they take, all the wine and cheese events they have are not going to convince buyers to commit.
I’m sorry you feel you need to bash this building and those purchasing its condos simply because you don’t have the means to afford its extravagance. I personally am ecstatic to move in to the condo that I will in fact be closing on later this fall. Those who have worked hard enough to earn this building deserve to enjoy it.
I luckily pulled out of the Escala.
I can afford it, but the problem is that if I bought in this building I am buying a condo that is not at market value. The prices of other condos in other high-end buildings have been slowly lowering over the past six months. If you buy in the Escala you are buying a condo that you could NEVER sell for the price you are buying it for. I will be surprised if banks will even finance a homeowner to buy it.
Will the Escala lower prices to reflect the change in the current market? If not, it will be a tough sell, not to mention the $250 minimum mandatory club fee.
So Blake, if you plan to stay there for 10+ years you might just be able to get out of it without losing any money.
I really hope it does well because we all live here in Seattle and it can affect us all in some way. The building does look nice and I do have a sense of regret for not buying there, but when I do the math and look at comparable high-end buildings, the Escala is not a good financial investment 🙁
Hello Wendy,
With some other buildings changing from sale to rental (example: Rollins Street Lofts), have you heard any rumors YET about the Escala changing to rentals? I believe it is still only 30% sold. Probably not a good investment for a homebuyer, given pricing and lack of sales?
What are your thoughts?
Life doesn’t get much better.
The Escala team sent out paperwork with changes to the POS. Luckily, those in contact with attorneys were able to rescind their offers within seven days. I bet most buyers pulled out of that “Sinking ship.”
The developer Midby is always stating how he knows of no one that wants to get out of the Escala. Well, lets see how Midby weasels his way out of this type of publicity!
I am waiting for my 5% earnest money, interest, and upgrade money!
If he refuses to pay us, we will all go to court (He will lose since state and federal law allows buyers to rescind when any language changes, but it must be rescinded within seven days).