Just one home remains available at NEXUS priced below $1 million, and a representative says a flurry of recent sales has demonstrated the rising demand for new condominiums in downtown Seattle.
SEATTLE — Since its presales debut in March, 312 of the 378 condominium homes at NEXUS have been sold in what brokers claim is the fastest new-development absorption rate in Seattle’s history.
According to its representatives, just one home remains available at NEXUS priced below $1 million, while a flurry of recent sales has demonstrated the rising demand for new condominiums in downtown Seattle.
Local and international media outlets have taken notice of the unique design and sales velocity at NEXUS, as it has been the centerpiece of dozens of high-profile news stories and earned its first award for design excellence at the Pacific Northwest Builder’s Conference earlier this summer, and received a Merit Award for “Best on the Boards for a Multi-Family Project” at the 2017 Golden Nugget Awards.
“A residential tower being recognized for its bold and innovative design this early in the process says something, as NEXUS is still two years away from completion,” says Blaine Weber, principal of Weber Thompson, who led the design process. “Transformative projects like NEXUS don’t happen without a visionary developer like Burrard Group, and we won’t be surprised if this is only the first of many acknowledgements to come.”
A series of stacked cubes offset by 8 degrees of separation creates the perception that the dynamic and tall building “rotates” — a question Weber says is often asked at the building’s sales center. Its front and center location crowns downtown Seattle’s cityscape while offering its own expansive views.
Burrard Group, the developer, sought to challenge the status quo in high-rise design by introducing efficient floor plans with in-line kitchens, convertible rooms to expand living spaces, and high-tech features with an array of services and forward-thinking conveniences that allow residents to control their home, community and lifestyle.
“Our vision for NEXUS is design-forward and hospitality-oriented,” says Christian Chan, executive vice president of Burrard. “Our residents will live in a vertical village activated by events and the XEN app to foster a thriving, virtual ecosystem.”
NEXUS, so named because of its location at the corner of Minor Avenue and Howell Street, also befits its pivotal place in the housing cycle, as condominiums make a comeback and consumers respond to its innovation. The first high-rise condominium to offer presales in recent years, NEXUS is the last opportunity to own such a property before 2020.
“Ninety-four percent of what’s to be delivered in downtown Seattle for the current decade is built for rent — condominium development continues to be undersupplied,” says Brian O’Connor, economist and appraiser with O’Connor Consulting Group. “Developers believe new residents will rent for a few years before settling down, and their investors want to retain these trophy assets within the fastest-growing large city in the U.S.”
Some pundits foresee a shortage of condos in the near future. Dean Jones, president and CEO of RSIR, says he believes people are eyeing condos for tax benefits and equity gains, as many plan ahead with NEXUS presale purchases.
“What’s going to happen when 10 or 20 percent of these new residents decide to buy?” Jones asks. “They’ll surface in a year or two and discover that downtown Seattle is effectively sold out with anemic resale selection and competitive bidding.”
With no new condominium deliveries in 2018 and NEXUS as the sole delivery in 2019, Jones predicts median home prices will continue to climb. Though several new high-rise projects are on the drawing board, their product and locations will vary greatly and will have to combat the escalating cost of construction. As Terry Bendrick, vice president of development for Burrard, points out, hard costs are climbing “a minimum of 6 to 8 percent annually.”