Owning a home on Seattle’s First Hill has always been a convenient luxury. Now it’s becoming even more elusive.
With more than 1,2000 apartment units under construction on First Hill, only Graystone Condominium offers new high-rise home ownership in this historic Seattle neighborhood.
This rare opportunity is coupled with a pipeline shortage of new condominiums due to rising construction costs and tighter construction financing. All new downtown condominium towers in the current development cycle have already opened, and no new residential towers will be opening until 2023.
For those who have wanted to move downtown but couldn’t afford it, the pandemic offered a brief buyer’s market with a price correction. However, with new inventory in relatively short supply, prices are expected to increase, and the selection of new condominium residences is going to become more limited.
Already, 60% of Graystone’s first release of 70 homes have been reserved, including all the studio residences.
With that information in hand, Daniels Real Estate and Realogics Sotheby’s International Realty (RSIR) plans to release the homes at Graystone in four equal cohorts of 70 homes. That includes the current release, winter 2022, spring 2023 and a final sellout in 2024.
“With more than 60% of the introductory homes reserved before opening the preservation gallery, we know that there is demand for the Graystone lifestyle,” says Luis Borrero, senior project manager for Daniels Real Estate.
“A phased release rewards early buyers with preconstruction prices, while over the next two years we capture higher prices in a rising market,” he says. “Daniels Real Estate has over 40 years of rebooting Seattle’s real estate cycles, so we know there is no rush.”
NWMLS data shows that pending condominium resales have increased 47.6% in downtown Seattle (NWMLS #701) so far in 2021. The new construction inventory witnessed an even greater resurgence of demand; pending sales in 2021 are 78.5% over the same period in 2020.
According to RSIR, 60% of the 2,128 units of new condominium homes have already been sold, and no new condominium towers are opening until Graystone in 2023. And with high construction costs, developers are holding back more than usual on starting new projects.
“I think we’re heading into another year of ascension where there’s only going to be more people coming to the downtown core,” says Dean Jones, CEO of RSIR. “For example, apartment absorption numbers are over pre-pandemic levels, commanding higher lease prices as we move into 2022.”
Jones says two recently completed condominium developments, in South Lake Union and Columbia City, reverted to an apartment use to take advantage of the escalating rents in the region, which only further reduces the condominium housing supply in Seattle.
“If only 5% of the new luxury renters in downtown apartments decided to purchase a condominium home in the next few years, the Seattle condominium market would be sold out by Graystone’s 2023,” Borrero says.
Graystone will be the only new construction condominium to open on First Hill in seven years. The one-of-a-kind residential tower will offer views of Elliott Bay, the Olympic Mountains, Lake Union and Mount Rainier.
Graystone is designed to recapture Seattle’s refined and relaxed style with a concierge lifestyle and over 20,000 square feet of in-demand amenities managed by Columbia Hospitality, the largest luxury boutique hospitality management firm in the Pacific Northwest.
Imagine being greeted by an attentive concierge who knows your preferences and anticipates your needs. Enjoy recommendations and reservations for restaurants and cultural experiences, coordination with preferred vendors for home and pet care, and other convenience requests.
Graystone Condominium: Presentation gallery open by appointment. Information at 206-717-5000 or thegraystone.com.