Living Art - New Capitol Hill Lofts Designed by Nationally Acclaimed Architect Tom Kundig Open for Sales

Living Art - New Capitol Hill Lofts Designed by Nationally Acclaimed Architect
Tom Kundig Open for Sales
Post-Auction Market Conditions Influence Seller to Offer Units Up to 25
Percent Off List Prices Using Bulk Sales

SEATTLE, Oct. 8 /PRNewswire/ -- Executives at Realogics, Inc. announced today
their brokerage will represent the marketing and sales of Eleven Eleven East
Pike, a 27-unit condominium development located at 1111 East Pike Street on
downtown Seattle's Capitol Hill. Designed by the nationally acclaimed
architectural firm of Olson Sundberg Kundig Allen, the unique loft concept is
now complete and makes its official sales debut. Acknowledging that recent
condo auctions have put downward pressure on unit appraisals, the seller has
adopted Realogics' unique bulk sales strategy to establish market values and
spur sales at the development.

"I'm still proud that we assembled an extraordinary team and brought an
innovative new kind of urban living to Seattle; but now, as difficult as it
is, we're putting all that aside and calibrating to the prevailing market with
its current glut of discounted production units," said William Justen,
development manager with The Justen Company. "Eleven Eleven East Pike now
offers a value proposition that's as compelling as its architecture."

Justen has approved a limited release of nine homes with special incentives
for units that close before November 30, 2009:

-- Bulk pricing from 15 percent up to 25 percent off original list prices
-- Zero closing costs
-- Available interest rates below 5 percent

-- First time homebuyer tax credits up to $8,000

The bulk sales approach offers a cumulative sales volume discount depending on
the percentage of homes that are sold within the current sales release.
Prospective buyers may join in the bulk sale with a refundable deposit of $500
through October 2009. The more homes that sell, the greater the discount for
all buyers that participate. All buyers in the first bulk sales release must
close by November 30, 2009 to realize the full benefit offered in the
incentive package. Buyers may also "buy it now" at preset pricing.

"Our seller will share their marketing savings with buyers provided they make
some quick deals," said Sam Cunningham, Managing Broker for Realogics
Brokerage, LLC. "It's a creative strategy to kick-start sales in a
post-auction marketplace and it provides a win-win for the buyer and seller
alike."

Cunningham said the bulk sales approach is resonating with buyers at other
participating communities as well. Beyond price, he believes the "celebrity"
design and a preferred location of Eleven Eleven East Pike will also help
nudge homebuyers off the fence.

Designed by Tom Kundig, Eleven Eleven East Pike boasts expressive
architecture, open plan living spaces and unique features such as an
exclusive-to-project "puzzle wall" system - a full-height movable wall
partition that closes off the kitchen and bedroom from the great room for
entertaining or privacy.

"Innovation with new construction is merely a product of challenging the
status-quo," said Kundig. "As an architect, I have an opportunity to create
something that doesn't already exist, and ideally, it won't ever be duplicated
again."

Kundig's effort to differentiate Eleven Eleven East Pike from
production-oriented developments becomes evident upon a building tour and
according to Justen; it should appreciate given the "collectable" nature of
the product. On paper, however, a mortgage underwriter bases a unit's value
solely on appraisals today, which won't always recognize intangible investment
values like consumers do. Furthermore, developers and brokers may no longer
appeal to appraisers for value consideration. Rather, they must accept prices
dictated largely by the surrounding marketplace.

"It doesn't seem to matter what a buyer is willing to pay anymore - it only
matters what an appraiser thinks because that affects what a lender is willing
to lend," said Justen, "The reality is that our industry is being commoditized
by the lender community, and that means that a niche development like Eleven
Eleven East Pike, which was never designed for the masses, is nevertheless
being held back by a homogeneous appraisal market."

Test appraisals for Eleven Eleven East Pike suggest that recent auction
activity at nearby projects is suppressing unit values. To illustrate, The
Brix Condominiums recently sold three dozen homes at an average of $410 per
square foot - that's 30 percent off original asking prices. This dynamic
resets market values for consumers and appraisers alike, according to Justen -
forcing Eleven Eleven East Pike to compete until higher sales values are
established in his building or the competitive inventory burns off.

"With many developers finding the market on price, buyers are now focusing on
other considerations like preferred selection, timing low interest rates and
seizing perishable tax incentives," said Jones. "The playing field is leveling
and sales are increasing."

Jones noted that market observers predicted just this type of scenario, and
many buyers have been waiting for it to materialize. "These incentives will
evaporate as soon as the inventory does," he added.

According to Jones, Eleven Eleven East Pike was the last new condo project to
enter the Capitol Hill marketplace, and given the dearth of new construction
activity, no new inventory will likely be delivered for several years to come.

About The Justen Company
The Justen Company provides a single entity to manage and control the entire
process of real estate development--vision, feasibility, land assemblage,
entitlement, design, and construction. Based in downtown Seattle and led by
William J. Justen, the company handles multifamily and commercial projects
ranging from tenant improvements to high rise construction from the ground up
as well as historic renovations. For more information, please visit
www.justencompany.com.

About Realogics, Inc.
Realogics, Inc. is a Seattle-based real estate consultancy, managing member of
Realogics Brokerage, LLC. and the creator of Condo Bulk Buy as an accelerated
sales division. The group collectively specializes in market research, product
development, marketing and sales brokerage solutions for in-city condominiums
and mixed-use properties. For more information, please visit
www.realogics.com.

SOURCE Realogics, Inc.

Michelle Poitevin, +1-206-448-5752, for Realogics, Inc.