SOLTERRA CAPITAL INVESTORS TO RETAIN 45-UNIT SOLIS BUILDING AS AN APARTMENT COMMUNITY; INVESTMENT GROUP RETARGETS RISING DEMAND FOR LUXURY RENTALS IN SEATTLE
First-of-its-Kind “Passive House” Design to Establish New Market Niche for Eco-Conscious Tenants
SEATTLE, WA. (8/21/2019) – Executives of SolTerra Capital, Inc. and Realogics Sotheby’s International Realty (RSIR) confirmed the 45-unit SOLIS building, now under construction at 1300 East Pike Street on Capitol Hill in Seattle, will be retained by SolTerra’s investment group as an apartment community. Presale buyers and reservation holders have been notified of the owner’s new direction and earnest money and reservations deposits will be fully refunded. Those still interested in residing at SOLIS as a tenant will be provided a preferred opportunity to lease in the community.
“Building to both Passive House and luxury condominium standards requires higher construction costs and results in an exceptional building that will appreciate,” said Marc Coluccio, Chief Operating Officer for SolTerra. “We believe that holding the project as an apartment will offer the best long-term value for our stakeholders.”
The transformative project aims to achieve an 80% reduction in its use of energy for heating and cooling and includes premium finishes, European appliances, and panoramic windows among its many design features. Industry experts report that Seattle’s ongoing construction boom is witness to 8–10 percent hard cost increases annually, with further premiums likely given international tariffs. Coluccio acknowledged the new direction for SOLIS was influenced by numerous dynamics including market timing, lower interest rates upon refinancing, and improving rents.
SolTerra also noted robust demand for apartment housing with Seattle rents on the rise again. According to the most recent data from the US Census Bureau, the median rents were highest in Seattle amongst the 50 most populous US cities—only renters in San Jose, San Francisco, and San Diego pay more. Zillow reported Seattle’s median rental price in June 2019 was up 3.3 percent year-over-year, to $2,569. Meanwhile, the housing market data firm of RealPage notes the apartment pipeline declined 19 percent in June 2019 compared with the year earlier.
In August 2018, SOLIS was first introduced for reservations, with approximately half the units placed under contract at prices from the mid-$400,000’s to the high $900,000’s. Reservations had since been placed under Purchase and Sale Agreements, however under the terms of the contract, the developer reserves the right to cancel the presale at their discretion.
“I support the notion of providing as much notice to the buyers as possible given this pivot in our client’s investment strategy,” said Dave Janssens, a Senior Global Real Estate Advisor with RSIR and the listing broker for SOLIS. “We are working with our buyers to help them identify alternative opportunities in the marketplace.”
SOLIS is slated for occupancy by Q2-2020.
About SolTerra Development (www.SolTerra.com): Founded in 2008, SolTerra is an experienced developer of building integrated environmental technology (BIET) and believes this is one of the three core competencies that helps them develop projects that stand out from most others. With more than a dozen new developments completed or in progress in Portland, OR and Seattle, WA – SolTerra Development believes that buildings designed with a strong connection to nature and that encourage social interaction, perform better as investments and places to live, work and visit.
About Realogics Sotheby’s International Realty (www.RSIR.com) - Artfully uniting extraordinary homes with extraordinary lives, Realogics Sotheby’s International Realty is a leading global sales and marketing brokerage firm in the Pacific Northwest. The boutique real estate firm of 225+ brokers service branches in downtown Seattle, Bainbridge Island, Kirkland, Issaquah and Madison Park. RSIR is a leading project marketing specialist currently advising on or representing more than $1 billion in new condominium developments planned throughout the Puget Sound region.