Executives from Realogics Sotheby's International Realty (RSIR) and Vibrant Cities, the development manager of Infinity on Alki, LLC, jointly announce major price improvements at Infinity Shore Club Residences of up to 20% below current asking prices for the next six (6) homebuyers.
SEATTLE, Nov. 28, 2023 /PRNewswire-PRWeb/ -- Executives from Realogics Sotheby's International Realty (RSIR) and Vibrant Cities, the development manager of Infinity on Alki, LLC, jointly announce major price improvements at Infinity Shore Club Residences of up to 20% below current asking prices for the next six (6) homebuyers. The aggressive marketing tactic targets prospective homebuyers that have expressed sincere interest but are practicing wait-and-see; watching for a timely and simultaneous inflection point in the marketplace and local politics for the city of Seattle. The National Association of Home Builders confirmed the rate of home sales in the US has since fallen to the lowest levels in 13 years, similar to the Great Recession. Industry pundits also note that until a new condominium conforms to Fannie Mae mortgage underwriting standards, it historically proves to be the most viable opportunity for homebuyers.
"We're effectively making the first move – this is a market-maker sales event," said James Wong, Founder and CEO of Vibrant Cities. "We want to do our part to bridge the divide between supply and demand with this unprecedented value proposition. It's a sign of the times for developers right now, but we need to do what it takes to meet the market."
Wong confirms his new pricelist is offering homes well below replacement costs. He knows many capable buyers have toured, but the results of Seattle's civic elections, upcoming Fed decisions on bank rates, and a clear trajectory of housing in the region are factors all being contemplated by consumers. A sales catalyst will also help reach "warrantability" for Fannie Mae mortgage underwriting standards, which requires a majority of sales to owner-occupied residents and then opens up more attractive conforming mortgage products.
"Vibrant Cities is taking a very proactive position," said Dehlan Gwo, Vice President of New Developments for RSIR and the listing agent for Infinity Shore Club. "We've seen this strategy work successfully across the landscape at virtually all new developments in downtown Seattle. It's a matter of marking to the market so buyers confidently step forward. A year or so from now, they'll be very glad they did so."
Gwo points to clear indicators that Seattle's condominium market is rebounding. For starters, there is a supply and demand imbalance brewing because the majority of new inventory built is already sold. No new buildings will open in 2025 or beyond because groundbreakings were halted during the COVID pandemic and haven't restarted. Next, the political tide is turning after civic elections, promising a brighter future for the fastest-growing large city in America, according to recent Census data, and there's a push from employers to repopulate commercial office buildings.
Furthermore, the closely watched S&P/Case-Shiller Home Price Index and impending Fed meeting will be enlightening. Rates are destined to drop, and median home prices continue to rise, which encourages pent-up homebuyers to act after feeling sidelined over the past 18 months. It helps too that the West Seattle Bridge, HWY-99 tunnel, and new waterfront promenade in downtown Seattle are all open and make accessing West Seattle akin to the "island you can drive to", as Gwo stated. And for those who want to walk downtown, a quick stroll from Infinity Shore Club to the West Seattle Water Taxi provides daily service now from 6 a.m. to 7 p.m. on weekdays and 8:30 a.m. to 7 p.m. on weekends.
"We are experiencing once-in-a-cycle strike prices for brand new condominiums, which are easily 30 to 40% below replacement costs compared to the next development era, and that's assuming we see groundbreakings anytime soon," added Gwo. "We expect mortgage rates to fall in 2024 and 2025 post-election. Homebuyers who lock in a low purchase price today will soon enjoy a lower mortgage payment to match upon refinancing."
A 20% price improvement arrives on the heels of Black Friday and Cyber Monday, which typically has retailers of all products put their best foot forward in hopes of a holiday shopping spree. It's no different for Vibrant Cities, which includes luxury waterfront real estate for savvy consumers to earn instant equity at Infinity Shore Club. In addition to sharper prices, homebuyers will also enjoy no homeowner's association dues in 2024. To qualify, prospective buyers are required to be in contract for a principal residence or second home before December 31, 2023, and close by January 31, 2024.
By example, a three-bedroom, 2.5-bathroom penthouse that was originally priced at $4,399,950 is now priced at $3,599,950, an 18% price improvement equal to a discount of $800,000. At the entry level, a one-bedroom plus den, 2.5-bathroom, two-level, 1,471-square-foot townhome with direct beachfront access was previously listed for $1,599,950 on NWMLS and is now offered at $1,285,000 or just $874 per square foot, a 20% price improvement. In some cases, original presale prices to current prices are more than 25% reduced.
The developer is quick to point out that Infinity Shore Club is not a commodity product, like other towers that have hundreds of units to sell and within the same price points.
"The reality is we have 17 home plans within just 37 residences in total – that's very different than a high-rise that may have scores of the same floor plan and take longer to absorb," concluded Wong. "In our situation, when we sell one, we may have only one or two remaining in a product type or price point. Supply and demand will quickly find balance and we'll firm up pricing with fewer incentives."
To be sure, Infinity Shore Club is unique. It's been dubbed a "horizontal high-rise" because of its concrete-and-steel construction like its peers in downtown Seattle, but also because it's broad and covers five waterfront lots on Alki Beach. The one-bedroom plus den, two-bedroom, and three-bedroom plus den floor plans range in size from 1,156 square feet to 2,469 square feet and include large terraces and rooftop decks that scale up to 1,076 square feet in private exterior space. Not to mention, residents have access to more than 14,000 square feet of resort-caliber amenities shared among only 37 homes, including an infinity edge pool overlooking the Puget Sound and the Olympic Mountain Range.
"It's ironic that this building is called Infinity because our offering is so inherently finite and rare," said Gwo. "It took Vibrant Cities and the previous landowner more than two decades to assemble the land and build this extraordinary community. We may never see this combination of product, price, and promotion all at one time again. Perhaps its greatest attribute will prove to be its availability for those who act soon."
According to RSIR research, the most recent development boom in downtown Seattle observed four new high-rise condominium towers built between 2019 and 2022, comprising 1,194 new units added, of which 930 have sold, representing 78% absorption. Infinity Shore Club delivered in December 2022 and remains the only new concrete-and-steel product in the city of Seattle that is not sited in downtown Seattle. It's also the only waterfront project. Currently, there are only two new condominium towers being delivered in 2023 and 2024, comprising 730 additional units, of which 346 have been presold for 47% absorption. In total, fewer than 640 unsold new construction condominium units remain available in a city center of more than 100,000 residents. Just 26 new condominium estates remain across the bay at Infinity Shore Club on Alki Beach.
For more information, visit http://www.InfinityShoreClub.com.
About Realogics Sotheby's International Realty (RSIR) (https://www.rsir.com)
A leading global sales and marketing brokerage firm in the Pacific Northwest, RSIR is a boutique real estate firm of 300+ brokers, with service branches in downtown Seattle, Bainbridge Island, Bellevue, Kirkland, Mercer Island, and Madison Park. RSIR is a leading project marketing specialist throughout the Puget Sound region. The firm was recognized again in 2022 by The Puget Sound Business Journal among the region's "Top 100 Largest Private Companies"; "Fastest-Growing Private Companies"; "Largest Family-Owned Companies"; "Middle Market Fast 50"; and "Largest Residential Real Estate Brands". RSIR is a one of the top 20 largest affiliates within the United States for the Sotheby's International Real Estate network according to Real Trends survey in 2022.
About Vibrant Cities (https://www.vibrantcities.com)
Passionate, driven and innovative–Vibrant Cities is a multifamily real estate development firm creating some of the most community-minded, livable and leading-edge buildings in Seattle and Portland. Their buildings are strategically positioned in sought-after neighborhoods and are purposefully designed with building community in mind. Vibrant Cities' mission is to not only create high-quality and affordable buildings but to construct beautiful spaces their residents feel proud to call home.
Editor's Note: Project photos and principal headshots available upon request.
SOURCE Realogics Sotheby's International Realty