Posted by: The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

25 responses to “Top Floor Unit at 1521 Sells for 2725 Off 2009 Price”

  1. toad37

    Wow, that is insane.

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  2. Feedback

    That’s a lot of money to lose, Tim! I hope you land on your own two feet.

    Rate this comment: Thumb up 0

  3. ;

    the bulls tell me 2009 was the absolute bottom.

    i must then surmise these losses are made-up, tom foolery perpetrated by the bears.

    Rate this comment: Thumb up 0

  4. Macro Investor

    Over $5000 per month just for the taxes and HOA. This may be even more nuts than Mike D, the guy who’s way too proud of the bathroom fixtures in his remodel.

    Rate this comment: Thumb up 0

  5. WannaBuy2012

    I suddenly feel better about paying $5,300 for those new granite counter tops in 2010. Thanks.

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  6. Ray pepper

    But as millionaire Mike would say…. It doesn’t matter I’m not going to sell.

    Millionaire Mike is far worse off because he had to do all the organizational labor and countless hours of diligent documentation only to be upside down easily more then 1 mill.

    Btw…. Wonder if his condo ever sold? Let me guess….NOT

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  7. Scotsman

    Well, you know what they say about guys who buy $5M condos and drive fancy cars, etc- they do it because they can. We can’t. While we ooh and aah this buyer has probably already forgotten about it and is on to the next adventure. At least he got out while he could.

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  8. David Losh

    This sale happened at a time when more inventory of new condos were coming on the market.

    The owner could have held out, but was bleeding $40K per month, judging by this sale. There are other places to live for that kind of money, maybe nicer.

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  9. Eastsider

    RE: Macro Investor @ 4

    The interest alone is a whopping $12k a month ($3.6m@4%). If you include insurance and other maintenance costs, the monthly cost for the new owner is about $20k. There is still room for the price to drop!

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  10. David Losh

    RE: Ray pepper @ 6

    You’re right, Mr. Big Spender, let’s insult everybody, just couldn’t let that prime piece of property go for a few thousand less than he paid for it.

    What a maroon.

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  11. Kary L. Krismer

    RE: Eastsider @ 9 – I don’t know yet what the buyer financed, but it’s unlikely they financed anywhere near that amount.

    I’ll also note this sale wasn’t a short sale, so the seller didn’t either.

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  12. wreckingbull

    Did anyone look at the testimonials page?

    http://1521second.com/testimonials.php

    If Almost Live were still on the air today, they would have some rich material there.

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  13. Kary L. Krismer

    RE: wreckingbull @ 12 – That’s sort of creepy.

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  14. Eastsider

    RE: Kary L. Krismer @ 11 – It does not matter if the buyer gets financing. The cost of money is there in every case.

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  15. Kary L. Krismer

    RE: Eastsider @ 14 – Usually there’s the rental value of the property which counters the lost investment income. I’m not really familiar with the rental value of $3M+ condos, but I sort of doubt that rental value is that great. So in this instance, you’re probably right!

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  16. Blurtman

    What, no principal reduction? Someone contact Rob McKenna; I hear the sham Wall Street fraud mortgage settlement will be his flagship achievement, or perhaps, his Waterloo.

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  17. Dave0

    RE: ; @ 3 – 2009 was the bottom in stock market prices, which is highly based on investor’s outlook on the future. Thus, it is fair to conclude that 2009 was the peak of the “world is coming to an end” mentality that happens during recessions. People have generally become more optimistic about the economy since then. I don’t think anybody has tried to argue that 2009 was the bottom of the real estate market. That is a totally different metric.

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  18. Dave0

    RE: Kary L. Krismer @ 15 – The income potential of a condo like this in my opinion would be short-term lodging for corporate executives in town for a few months or less. Something more private than a hotel…

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  19. Kary L. Krismer

    RE: Dave0 @ 19 – Possibly (probably) not allowed by the condo declaration.

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  20. hoary

    A quick records search shows the seller is the COO of the 2nd largest money-manager in the state. Yep, he’s taking a bath, but I imagine filet mignon will still be on the menu most nights…

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  21. Eastsider

    RE: Kary L. Krismer @ 15 – This condo can never make sense for a rental investment. In any case, 4% is a conservative number. I don’t think any bank will lend that amount of money with that kind of risk at 4% interest rate. If I were the bank, I would demand 50% LTV and an interest rate of 7%.

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  22. Kary L. Krismer

    By Eastsider @ 22:

    RE: Kary L. Krismer @ 15 – This condo can never make sense for a rental investment. .

    That’s what I tried to say in post 15.

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  23. $1.4m Loss on 1521 Resale

    [...] Seattle Bubble’s eagle eyes spotted this monster loss on a re-sale at 1521, Top Floor Unit at 1521 Sells for 27% Off 2009 Price. [...]

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  24. WestSideBilly

    http://www.redfin.com/WA/Seattle/1521-2nd-Ave-98101/unit-3701/home/39611415

    37th floor, $2.75M ($850k below 2009 closing)

    http://www.redfin.com/WA/Seattle/1521-2nd-Ave-98101/unit-3501/home/21616626

    35th floor, $2.2M

    http://www.redfin.com/WA/Seattle/1521-2nd-Ave-98101/unit-3503/home/21883690

    35th floor, $3.68M, paid $3.4M in 2009 (your “neighbor” is comping your unit at about 1.5M overpriced)

    http://www.redfin.com/WA/Seattle/1521-2nd-Ave-98101/unit-2904/home/21617046

    29th floor, $1.8M

    http://www.redfin.com/WA/Seattle/1521-2nd-Ave-98101/unit-2504/home/21616633

    25th floor, $1.7M

    http://www.redfin.com/WA/Seattle/1521-2nd-Ave-98101/unit-1500/home/21617066

    15th floor, $1,68M, paid $1.47M in 2009.

    http://www.redfin.com/WA/Seattle/1521-2nd-Ave-98101/unit-1002/home/21617069

    10th floor, $925K (almost certainly was over $1M in 2009).

    Lots of haircuts…

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