Sunrise from iLike, originally uploaded by firewallender.

Back in August, CHS reported on Capitol Hill startup iLike getting gobbled up by social media giant MySpace for $13.5 million plus $6 million in 'talent retention.' We wondered at the time how long iLike would remain in their Boylston Ave office space after the deal.

The answer? Not long.

We heard that iLike was on the move and we have been asking their PR person for information but never got confirmation. No bother. We saw an iLike employee's tweet about the in-progress move Wednesday morning. The iLike folks are heading downtown to join other MySpace development teams on Western Ave.

Adios, iLike. We'll see if we can get some more info from the iLike folks about the move but given MySpace's investment in their downtown offices, probably not much Capitol Hill could have done to keep them.

"It should find the place that's for sale right here," Matt Goyer said, gesturing toward Trace Lofts as we stumbled blindly down 12th Avenue between Pike and Pine, both of us staring down at our iPhones as rush-hour traffic idled at the light. "So, it pulled out 1408 12th Avenue, number 407, so that's one of the two units for sale right now."

This was last Friday afternoon, and Goyer was giving me an on-the-spot demonstration of Redfin's iPhone app (click here to launch iTunes), along with some insights into a couple other apps that deal with real estate and neighborhoods. His day job is actually at Redfin, where he works in marketing, but in certain circles he's better known as the author of Urbnlivn, one of Seattle's best condo blogs.

Like Tim Ellis's Seattle Bubble, Urbnlivn was a product of Seattle's housing boom, but whereas most real estate and condo blogs were little more than marketing efforts by real estate agents, Goyer won his readers by offering thoughtful (and frequently critical) analysis of both...

(Photo: Matt Goyer)

With the Brix auction taking place last weekend, neighbor Bill asked us to look into another notable Capitol Hill real estate development - 25 on the Park - that is struggling with the down economy. Urbnlivn reported on some of the development's problems back in summer. We've dug in to learn a bit more about these empty homes that seem to be stuck in limbo on the edge of Cal Anderson Park.

CHS can confirm that on February 24, 2009, Everett-based City Bank foreclosed on the development and the Dwelling Company ("Jacobsen House Inc" is the holding company) no longer markets or owns it (full notice of foreclosure is attached to this post).  City Bank foreclosed on the property for the following reasons :

a. Failure to pay second half 2008 real estate taxes of $13,019.22 plus interest and penalties.

b. Failure to pay when due the following amounts which are now in arrears:

Monthly Payments:

Monthly Payments of $101,874.23 due 10/10/08, $106,582.11 due 11/10/08, $103,313.17 due 12/10/08, $106,756.94 due 01/10/09 and $106,756.92 due 02/10/09

Late Charges:

Charges for monthly payments not made within ten days of its due date $29,450.61

Default Interest Increase:

Default interest increase from 01/20/09 to 02/24/09 $145,907.30

TOTAL MONTHLY PAYMENTS, LATE CHARGES AND DEFAULT INTEREST INCREASE $700,614.28

Though the notice anticipates an auction in June 2009 and there was an auction scheduled for August 2009, no auctions have apparently taken place.  From City Bank's comments after its most recent earnings release, they may be attempting to find someone to finish the build out on the units to sell them:

"We are prudently financing the construction of homes in housing developments where sales are actively occurring,"  [CEO Conrad] Hanson said. “We are not planning on selling building lots where the appraised value is significantly below the value of the land with a completed house.” 

City Bank board member Marty Heimbigner said developing holdings is a key component of the bank’s survival strategy.

CHS contacted City Bank for an update on the status of the development and will add any new information to this post if we hear back from them.

Here are the results of the Brix Auction that happened earlier today at the Grand Hyatt.  I estimated the crowd size to be between 450 and 500 people.  Urbnlivn estimates that there were about 200 registered bidders, and the rest of the crowd were guests.  According to Zillow, the average sales price per square foot of a condo in the 98102 zipcode (where Brix is located) was $378 in July 09.  I have highlighted (in yellow) the units where the bidders were able to secure the condo for below this market valuation - click to enlarge the table.  Units (or Homes) are listed by the order they were sold at auction.

For an opinion on Sunday's auction, check out patgrimm's write-up.

Pat Grimm is Owner/Broker of Windermere Real Estate/Capitol Hill located on 19th Ave E. His office is not currently representing and does not own property in the Brix building.

Sunday, September 27th, condo developer, Schnitzer West, will be attempting to move 40 units at Brix on Capitol Hill and 43 units at Gallery in Belltown…all within a 6 hour period. The issue is that no one has ever attempted to sell…bang of the gavel…gone…80 plus condominiums in a single afternoon in the City of Seattle.  It’s a little like trying to predict the outcome of the Seahawk game this weekend, but there’s no question in my mind that the outcome will impact Seattle real estate.

Which brings up some interesting questions:  Is the market deep enough? Are there enough sideline players waiting for this kind of opportunity? How much more than the minimum bid will they go for? What percentage off the original list price will they go for? The outcome of this event could speak volumes in terms of where we really are with the Seattle real estate market … as it applies to condos.

But Schnitzer West isn’t the only one laying things on the line here.  Every condo owner in the city has something at stake here as well, especially the condo owners with their property on or soon to be on the market. It should be noted that more than half of the dwelling units in the City are now condos, townhomes or co-ops.

Hundreds of potential buyers and curiosity seekers have been through these projects over the past few weeks. It will be interesting to see how many show up on Sunday. On one hand, I’m visualizing low bidding and the outcome to be like ripping off a bandage and exposing a very ugly and painful sore with the realization that market values are significantly less than current expectations.

On the other hand, I can also see the potential for a lot of bidding and a ratification that the expectation adjustments that have already been made are true to the market.  Either way, I think we’re going to find out where the market really is, and right wrong or indifferent, it is what it is. And that is bound to create some certainty in the minds and hearts of Buyers and Sellers, which can be stabilizing. … and after the past couple of years, I welcome stability.

As for me, I’ll have to choose between the Seahawk game and the auction on Sunday afternoon. I have to admit, the auction could be way more interesting.

http://www.auctionbrix.com/index.php?keyword=brix%20condos

http://www.auctionthegallery.com/

CHS had little information last week when we first reported that the Satellite Lounge had been evicted . Turns out, who we thought was the owner, Sylvia Kane, actually owns 1110 E. Pike, not 1118 where Satellite called home -- the King County Records for the 1118 address were grouped under Kane's name. Kane had been on vacation for the last week or so, so the eviction was news to her when CHS reached her this week. Kane helped CHS contact the owner of 1118 E. Pike, Steven Holman of Holman Real Estate.

Eviction notice posted on the Satellite's front door

According to Holman, the Satellite was not paying rent, and his company had asked them to leave. The Satellite's owner, The Real Comet Inc., declared bankruptcy, Holman said, which allowed the lounge to stay in the building until the court finally had the business evicted last Monday.

Harold Burton, listed as the 'registered agent' for The Real Comet in state records, could not be reached for comment. Kane told CHS she had heard that Burton had shown interest in another area building, but hadn't spoken to him for awhile.

As for the future of the Satellite space, Holman said he hopes to find a tenant that will incorporate the unused 5,000 sqft basement in a similar food and drink establishment. While it needs a safety and code update, Holman said the basement could serve as a dance floor, small theater, or music performance space. Craig and Laura Baker of Issaquah jazz club Bake's Place have looked at the space, Holman said, but it is still on the market. With prices in the neighborhood varying from around $25/sqft for street level to $15/sqft for below-ground space, the complete Satellite package including the basement could run somewhere around $12,000/month.

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CHS wants to see one of the individual leaders of the Hill's 'transit oriented development' process buy into the very area the process will transform. Sound Transit officials, Capitol Hill Housing reps, City of Seattle planners, 110 10th Ave E waits for you.

When CHS covers the 'transit oriented development' process related to Sound Transit's construction of the Capitol Hill light rail station, we're generally pretty positive. There is a huge opportunity to build something great. And there are plenty of signs that a community-driven process really will continue to emerge and define what gets built in the heart of Broadway and, to increase the import even further, the heart of Capitol Hill. That's what transit oriented development should be about -- TOD should be public transit focused, community minded and shaped by the people who live, work and ride in the area of development.

But there is another side to all of this. TOD is a euphemism for market driven development -- except, in this case, the developer happens to be a gigantic public agency. Already the framework is in place for requiring any of the TOD to achieve 'fair market value' -- you'd have to build condo towers to the moon to counterbalance the community and arts facilities some of the pinko commies (like me!) would rather see in the space.

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All of this leads to a very real opportunity to put money where mouths are. On 10th Ave E, across the street from the expanse of blacktop currently capping the light rail station construction zone, one residential property has recently sold, one is sold but pending and another is for sale. To buy a home on 10th Ave E right now is to have deep faith in the TOD process. It is truly putting skin in the game.

110 !0th Ave E is a 3,000 sqft, 5-bedroom home built in 1908. It last sold in November 2002 for $410,000 -- that would be a 50% appreciation if you offer full price. The gain would be about in line with other similar homes in the area for the period. It currently has a Walkscore of 97 -- imagine what kind of score it will have once the trains start running and if TOD produces a great space.

The home directly to the south at 106 10th on the corner with Denny has an offer and is currently pending sale.

The house last sold in December 2006 for $500,000. Other homes in the 98102 ZIP code have fallen more than 10% in this period. This buyer is buying into TOD.

Meanwhile, this 10th Ave E condo sold back in January for less than it was paid for in September 2006.

For a transit official or community group leader with deeper pockets, there's also this larger development project to consider -- though the neighbors don't seem very welcoming.

So there's the opportunity. The lucky stakeholder who moves into the neighborhood has to put up with eight years of construction. When that works is complete, they'll either live across the street from a development that is public transit focused, community minded and vibrant or they'll be staring at a massive wall of expensive condos and a mall. And, yeah, they'll probably actually look out on something in between. But knowing that one person has skin in the game and is truly part of the community directly affected by TOD would give us a whole new appreciation for the process.

In a move that could shake up prices in the Capitol Hill condominium market, the developer behind Broadway's Brix condos is taking the building's remaining 40 unsold units to auction. 101 units have been purchased since developer Schnitzer West began marketing the new building at the beginning of 2009. The Stranger documented the developer's recent woes in this article in April: Schnitzer Hits the Fan.

Capitol Hill resident and real estate expert Matt Goyer who wrote about the Brix auction on his Urbnlivn blog, tells CHS the Brix auction is good news for anybody in the market for a Hill condo but could be bad news for those who have already bought. "If you're looking to buy a condo on Capitol Hill, this is great news," Goyer told us via e-mail. "You'll be able to buy a place at half at what it was listed at previously. However, if you own a condo on Capitol Hill this is going to bring down the average sales dollars per square foot for our neighborhood affecting your ability to resell and your ability to refinance....

There are two pieces of news today that should be positive developments for Capitol Hill populations facing housing challenges. Both will result in renovations of old buildings including one project in the heart of Pike/Pine.

• Capitol Hill's Reunion House senior apartments will be part of $1.7 million in federal stimulus money spent on renovating senior housing in the city. Seattle PI has some more information on the federal package and money from Seattle's own housing levy that is being put to use elsewhere in the city. Reunion House is managed by the Seattle Housing Authority and is located on 10th Ave between Mercer and Republican.


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• The Daily Journal of Commerce has the scoop on a cool sounding development for the wonderful old brick building at the corner of 11th Ave and Pine that will include space for work/live space for artists. Here's Josh Mahar's analysis of the plan for CHS.
  

A buyer has stepped forward for a Capitol Hill home designated a 'historical site' by the Department of Neighborhoods and priced at more than $3.1 million. The Megrath Mansion was listed for sale about two weeks ago. The sale is still pending so no final sales price is yet available. The seller is biotech executive Leonard Blum. According to City of Seattle records, the home was built for building contractor John Megrath in 1904.

Here is background on the property from the mansion's 'historical site' entry:

Significance
In the opinion of the survey, this property appears to meet the criteria of the National Register of Historic Places.
In the opinion of the survey, this property appears to meet the criteria of the Seattle Landmarks Preservation Ordinance.
In the opinion of the survey, this property is located in a potential historic district (National and/or local).
This house was noted in the city's 1979 historic resources survey, and in the Guide to Architecture in Washington State. It was built in 1904 for...

Typically, we try not to bring you more questions than answers here at CHS. But in the case of what's coming next for the former home of Horizon Books on 15th Ave E, we'll only add to the mystery.

A few weeks back, a cyclone fence and this FOR SALE sign showed in front of the old house-turned retail shop at 425 15th Ave. After 30 years of business, Horizon shut down on 15th Ave back in March. We've talked a bit on this site about what we'd like to see in the space.

I gave the phone number a try to see what I could learn.

You don't see this kind of sign on prime Seattle retail space very often. This is the kind of thing you see on old trucks or maybe cabins. So I wasn't extremely surprised to find the resulting conversation to be a little unusual, also.

Here is what I, um, learned:

• The phone number is for a man named Arno. I believe his last name is Pinz -- though, after seven or eight attempts at spelling it out and neither one of us being entirely satisfied that the other one understood what we were saying, we gave up. We'll call the man Arno Pinz. You should, too. UPDATE: In comments, linder digs up the goods -- his name is Arno Prinz!
• Arno said he is not a real estate agent but he is a shareholder in the Washington State corporation that owns the property, He called it Capitola, Inc.
• There is a Capitola, Inc. listed in the state's corporations roster but it is 'inactive.'
• Arno lives in Beverly Hills.
• Arno says his corporation owns other properties but didn't want to get into it.
• Arno says he and his company love Capitol Hill and visit often. Victrola is his favorite coffee shop. The cobbler around the corner knows more about Capitol Hill than anybody.
• Arno said the property is for sale. "We hope the property is utilized for the best purpose," he said.
• Arno told me he respects the Capitol Hill Times. They are a great paper. He doesn't go online and doesn't have e-mail.
• The property is for sale for $1.25 million.
• "That's expensive," I said. "It's not expensive," Arno said. "The lots behind it sold for almost $1 million. There has been good interest in the property. People are looking for loans and they are not easy to get."
• King County last assessed the land at $527,000.
• Arno said though I'd been a very efficient reporter, he needed to go.
• "Thanks," I said.

The blue CHASE logo replaced the old WaMu signage a while back on Broadway as what was once the largest U.S. savings and loan operation fades into history. The Puget Sound Business Journal says another sign of the old WaMu has faded as the bank's former president has finally been able to unload his multimillion dollar Capitol Hill mansion. The sale price? $4.7 million. About 24% under the asking price when the property was first listed back in October.

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With Siam on Broadway closing shop after more then 20 years in business, the row of Broadway storefronts between Poppy and The Brix is all but abandoned. Harem, retailer of 'alluring accents', now stands alone.

What comes next for the strip is not yet clear -- it's too early in the business process for the developers who own the various parcels to show their hands. CHS talked to Allan Jones this afternoon, owner of the building that Siam called home. He would not comment on his plans for the building. "I'm not at liberty to discuss details on the property at this time," Jones said. A call to the property management company for Fortuna Sequitir, the group listed in tax records as owning the parcels to the north and to the south of Jones', was not returned.

UPDATE: After this posted, I talked to Craig Swanson who manages the Jade Pagoda property and other buildings in the area including the recently rehabbed Lewis Building across the street. He said there are plans afoot to put the property to better use but details...

I ran into Rancho Bravo's owner Freddy Rivas (yes, 2009 is the year of the Freddies) while grabbing lunch today and could not resist asking him a question that has been burning in my brain and belly since the first time I enjoyed one of RB's muy autentico tacos -- how long can this wonderful thing last?

Surely there must be a catch. The lease must be short-term. Demolition must be imminent. Quick, eat tacos while it lasts!

But Rivas says no worries, take your time. Rancho Bravo should be at its new location on Capitol Hill at 10th and Pine for several years. When he first looked into a lease for the location, Rivas said he was disappointed to find the property included a 2-year demolition clause that could have booted his operation out. When the property's owner changed the clause to a longer period, Rivas said a flood of parties joined him in his interest in the property including a few national chains. Rivas pulled the trigger first. The result is a bustling taco shop in the midst of Pike/Pine that meets...

There is a lot about to happen on 12th Ave. As much as Pike/Pine is the Hill's flashpoint for preservation, and Broadway's light rail transition represents infrastructure and redevelopment, 12th Ave is emerging as the Hill's next bounds of change. The initiative to create a housing, retail and community development in the space now filled by the East Precinct's parking lots, the possibility of the streetcar route including 12th, the continued growth of Seattle University -- all of these forces are pushing the area forward. A group of people doing a lot of this pushing will be assembled for Capitol Hill Housing's Annual Forum - The Future of 12th Ave, Wednesday, Aprill 22nd at Northwest Film Forum.

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Here is the panel:
Michael Killoren, Director; Seattle Office of Arts and Cultural Affairs
Liz Dunn, Pike/Pine Property Owner and Developer, Director; The National Trust for Historic Preservation Green Lab
Elizabeth Linke, Property Owner; Northwest Film Forum and 1621 12th Ave. Buildings
Kate Stineback, Housing & Community Developer; 12th Avenue Initiative, Capitol Hill Housing
Michael Kerns, Associate Vice President for Facilities; Seattle University
Tenaya Wright, President; Squire Park Community Council

We tell you about the forum now so you have time to RSVP if you are interested in attending. We'll also be there to cover the night's discussion and ask a few questions about the future. Something you'd like us to ask? Leave a comment.

Capitol Hill Housing Annual Meeting
Wednesday April 22, 2009
5pm Reception
6pm Annual Meeting and Panel Discussion

Northwest Film Forum
1515 12th Ave
Seattle,
Space is limited. Please RSVP to: rsvp@chhip.org
Or call 206-329-7303 x112

Notice that stressed tone in my typing? I'm on the way to the airport headed back to my NorCal homeland for a few days in Baghdad by the Bay. I'll be three-dotting it around the city -- and trying to run a neighborhood blog remotely. Wish me luck. Don't tag my fence or smash my car window to steal my scratched up CDs.

• Reportedly, you can see Rainier from Cal Anderson park on these cool, crisp February days. Or, at least, Yancy can.
• Anybody a Broadstripe internet access customer? They went bankrupt, turns out. Still operating. We only had about 200 visits from Broadstripe customers in January. About 0.625% of our userbase.
• We got Slogged. Voting got all wacky in the Who should be on the Capitol Hil $1? vote but can't complain that many are celebrating Boe Oddisey. The whole thing is, um, advisory so hopefully the council will consider some fo the, um, feedback if the project goes forward. Probably not going to do a runoff (unless I need an easy item. Item, item, who's got an item?)
• We'd be happy for this...

1. Was this the coolest thing ever in 1977?
2. Where on earth did they take the circular mattress that didn't need the box spring?
3. Does the circular bed add or detract from the value of the house?

Artists and hippies rejoice. The capitalist pigs are repelled. Capitol Hill's recent and future condo buyers are going through some interesting times.

• Seattlest has word that the company behind the "Live Historic" projects is struggling financially and could be facing bankruptcy. Pioneer Property owns the De Lorges project at 325 Harvard E. and First Hill's Marlborough (which Pioneer had recently decided to convert *back* to apartments). In e-mail, urbnlivn's Matt Goyer wrote that the impact of financial struggles at Pioneer depends on how many units they've sold in the De Lorges project. "If they hadn't really sold anything it won't matter much except when the properties go to auction and drag down prices. Crazy times!"
  
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• The whole Press condo auction appears to have been more about marketing in the new lean era than anything specific to Capitol Hill but it seems to be a sign of things to come here and everywhere.
• It's enough to make condo types turn to drink. Matt recently posted that the team...

Fire department says the cause of Wednesday night's fire at Republican and Belmont appears to be candles that squatters were burning in the vacant structure.  There were no injuries and the flames did about $100k in damage to the old house that was for sale and ready to be torn down. SFD says the investigation is closed.

• Capitol Hill renter gets caught in bureaucratic mess, lives in apartment without electricity for months.
• The Bam Bam Bandit was hanging 'round Capitol Hill.
• How light rail impacts bus service. CDN looks at changes coming to bus service in the Central District.
• Where to score soap made by a third-generation soapmaker on Capitol Hill.
• I am a first-generation neighborhood blogger.
• If you've missed it, WaMu ex-prez's Capitol Hill house is for sale. Things I've learned from the ongoing coverage:
  o House is located at 1642 Federal Ave. E. and abuts the cemetery which is spooky if you've seen Poltergeist
  o If you somebody notable at all, don't allow gargantuan portrait to be visible in real estate listing
  o Everybody loves hydrangeas
  o Jean Enersen used to live there

Slog has the sad tale of layoffs at PB Elemental, the design firm and developer responsible for some of the more "fashion forward" development happening on Capitol Hill and across the city. We wrote about their 12th Ave project you've likely driven/rode/jogged/walked by. Slog says no word yet on which PBE projects will face the chopping block but you'd have to expect several of the efforts still in the permitting or design phases could face changes, delays or cancellations.

Here are some of the Capitol Hill-area PB Elemental projects still in early phases:

East Madison Live/Work

24th Ave Homes

16th Ave Homes

Seattle Times' list of city sundials highlights a cool old Capitol Hill structure -- the Sam Hill Mansion:

... a bronze vertical dial easily visible from street on the side of private home. Built in 1909, it is the oldest existing dial in Seattle. Motto: "I mark no hours not bright/Stedfast thru gloom I stand/Waiting till God command/To shine on me his light."

Here is a picture from Wikipedia of the 1910 concrete-poured palace -- unfortunately, you can't see the the sundial in this image.

Even though he built his own stonehenge and the Peace Arch in Blaine, Sam Hill -- and his mansion -- were new to me. You can read all about the turn-of-the-century entrepreneur and philanthropist in this HistorLink essay. Hill is not, however, new to the Harvard & Highland "luxury" condo project. They've included Hill's bunker-style mansion in their flashy marketing materials. No mention of the sundial, however. Opens Spring 2009.

If there's one thing this world is lacking, it's good neighborhood infographics. Redfin's new neighborhood real estate data page for Capitol Hill has some useful visualizations of the local market. If you're considering making a move, the charts provide an overview of what is happening out there -- kind of like those partly cloudy weather graphics on TV.

This inventory chart is pretty simple -- shows two fever lines tracking the number of houses and condos on the market. What do you know! There's a dramatic uptick in condos available in the area.

These next two are interesting gauges of price conditions in the area. The red one is for houses, the second blue one shows condos. Both track a comparison of the average list price vs. the average sold price in $/square feet over time. Basically, the graphs show two indicators of price -- what people have been paying recently and what they're going to be asked to pay going forward. In the red home chart, you can see that the list line has crossed the sold line earlier...

Maybe praise from Seattle Bubble is getting to me. Tend to not believe it when anybody says things are worse than ever. And definitely don't believe in rapid, dramatic endings. Etc. But have seen a few things around this part of Capitol Hill that might, indeed, indicate that there's some screwy stuff going on in the real estate biz. Here are a few:

• A $million+ house on the market for several months pitifully moving sale sign from its side street to around the corner on a major artery.
• Two houses directly across from each other now entering their 6th month of being listed and both sporting reduced prices.
• Sordid tales of sketchy contingent offers being used to (temporarily) clear inventory. In one, agents in same office represented buyer and seller. Buyer was contingent on selling condo. Condo never listed. Deal fell through after 45 days off market. Buyer pops up in subsequent Seattle Times article as John Q. Public type bemoaning difficulty of buying in apparently 'still hot' Seattle market.

Those are my anecdotes....