Just in!  Olive 8 has sold 15 condos since the begining of the year (over $10M in sales), 10 of which were sold as a bulk-sale to a foreign investor…see below for more details or click here.

“Reset” Pricing, Improved Consumer Confidence and Foreign Buyers Spur Sales
Olive 8 Closes Fifteen New Condo Sales Grossing $10 Million Since Market Reintroduction on 1.1.11

SEATTLE, WA. (February 17, 2011) – Executives at RC Hedreen Company, the developer of Olive 8, recorded fifteen new condominium sales grossing approximately $10 million in revenue since “resetting” prices on January 1, 2011. The reintroduction was comprised of reduced asking prices averaging 15-25% below previous list prices (up to 40%
below original presale values), the restructuring of construction debt with US Bank and a model home showcase of the premier “Sky Collection” residences above the 27th floor, which offer greater natural light and views over adjacent buildings.

“We’re certainly encouraged by this exciting start to the New Year,” says David Thyer, President of RC Hedreen Company. “We’re continuing to listen to buyers, establish our value and sell into an improving marketplace.” Beyond attractive prices, Thyer says homebuyers today want confidence in both the product offering and the developer’s business plan.

“(These) new closings will satisfy a third of our remaining construction debt,” said Thyer. “We consider Olive 8 to be
stable, with a minimal debt/unsold home value ratio. And we feel the homes are well positioned in the
marketplace.”

RC Hedreen Company is planning on transitioning control of the Home Owner’s Association to the residents this
Spring. “Our community belongs to the homeowners and not to a bank,” added Thyer. “This is a pivotal milestone
for Olive 8 and it demonstrates our commitment to delivering certainty, stability and enduring value within the
building.”

That confidence helped spur a bulk sale of ten units to a foreign investor, represented by Julie Roh and James
Stroupe (The Stroupe Group) of Realogics Sotheby’s International Realty. “Improving market conditions, favorable
exchange rates and the investment value at Olive 8 was compelling” said Roh, the buyer’s agent who is leveraging
her affiliation with the Sotheby’s International Realty® Brand. “We helped our client make an informed decision
using our experience and research tools found at www.stroupe.com. Our buyer could have selected any metro area
in the US but preferred our economic outlook and the fundamentals of supply and demand for in-city condominiums.
It’s a reminder that Seattle is on the radar of many interstate and international buyers; whether it’s for lifestyle or
investment purposes. In this instance, Olive 8 provides for both.”

Stroupe points to a convergence of sharper pricing, low interest rates, the prospect of job growth downtown, rising
rents and the fact that no new condominiums are planned for the future. “The (new construction) supply pipeline is
shut down,” he said. “Based on trends, I believe the resale market is going to shore up property values in the near
future.”

The “reset” of remaining homes at Olive 8 followed a high-profile condo auction held during September 2010. In a
strategic effort, the closing of 32 units below the 27th floor was accelerated in order to restructure the remaining
construction financing with US Bank while simultaneously satisfying Fannie Mae requirements that now enables
greater mortgage product options to new homebuyers. A video documentary by Tom Kelly, a nationally syndicated
real estate columnist, covered the story as posted at www.Olive8Reset.com. A follow up interview with David Thyer
will be hosted on Kelly’s Real Estate Today radio talk show at KIRO 97.3FM this Sunday on February 20th at 9am.
Guests are welcomed to call into the program with their questions at 1.888.973.5476.

Huffington Post: The Four Seasons swimming pool was reviewed as one of the best in the world! Click here for more details!

As of this weekend!!

OLIVE 8 CONDOS REINTRODUCED TO MARKET WITH ASKING PRICES REDUCED AN AVERAGE OF 18%
Developer “Reset” Approach Implemented to Help Spur Sales in a Dynamic Market

(SEATTLE, WA.) January 7, 2011 – Executives of Realogics Sotheby’s International Realty today released a sample price list for remaining inventory above the 27th floor at Olive 8 – a 229-unit condominium and hotel development in downtown Seattle. The new pricing strategy includes reductions across the board that vary from about 15% to more than 25% on some homes, according to Julie McAvoy, the Community Sales Director for Olive 8.

“Effectively, the price reductions is our seller making the first offer to homebuyers in this dynamic marketplace,” said McAvoy. “Selling today requires a conversation and we’re listening.”

The new price list comes out about a year after prior reductions that ranged from 10-15% and last fall an auction helped sellout targeted inventory below the 27th floor, according to McAvoy and NWMLS history. She estimates the total reductions in aggregate now range from 30-40% below presale pricing in 2007. “It a compelling opportunity for savvy homebuyers,” said McAvoy. “With prices correcting, timing the market may now have more to do with securing preferred selection and historically low interest rates versus anticipating further price cuts. I think we’re at a pivotal time in the center-city (Seattle) housing market and each community has a unique relationship within it.”

A preliminary look at median home prices (year-over-year) for all condominiums (new and resale) in downtown Seattle suggest a 13% correction from a peak in 2007 compared with 2010, according to NWMLS records. Meanwhile inventory appears to be shrinking, most notably due to a lack of new construction since the credit crunch stopped additional development in 2007. Pundits agree no new condo towers are expected to arrive to market for at least several years.

David Thyer, President of RC Hedreen Company and developer of Olive 8 says he monitors market values but
acknowledges the only price that matters is the one that a buyer wants to pay. “We’re not inclined to further
discount given recent sales comps in the building,” he said. “We know Olive 8 provides a great value today and we’re working our way up the building. Our three year construction loan extension provides us the time to sell into an improving marketplace over the next two years or so. Fortunately, we’ve saved our best inventory.”

McAvoy reports 10 new sales have been accepted so far in 2011 and active negotiations are taking place on several other homes. “I think buyers and sellers are finding better balance in supply and demand at Olive 8 and elsewhere,” she said. “It’s a signal that the market is stabilizing and an increase in sales means buyers are becoming more confident in home values.”

I toured the building yesterday with some clients and was amazed to hear that they are looking at 40+ closings this month! From the sound of things, the reduced pricing has attracted a lot of buyers…even several who are willing to pay all cash.

Securing financing has been a major issue in the past but now the new preferred lender, Met Life, is set to close on 5+ units in the next week and the building will be FHA approved in approximately three weeks.

We looked at 1 bedrooms (SW & NW “A” floorplan and E & W “B” floorplan) yesterday priced under $550k.  The units that they have on the 14th floor seem to be the best value at around $499-$513k with views of the Space Needle, Lake Union, Sound and City.  Out of all the floorplans, I am most partial to #1406…I think the 4th Ave corridor view is gorgeous (and is considered “protected” as the building to the south is secured on a 100 year lease).  Click here to visit the Escala website to view floorplans.

Something else I learned- they are not officially selling additional parking spots…although the developer may reconsider this as the commercial spaces lease.

If you are interested in purchasing, don’t wait!  Get down to the building and check it out…if you are planning on visiting during the week, don’t forget to make an appointment, otherwise, Saturday and Sunday are open for walk-ins.

Only 17 homes loft- three floorplans starting at $285, 500!  Click here for more info

Finally…and patience is truly a virtue.  The tremors started back in October (when we were hoping to close the first week of January) and I have to say now, my clients have been through it all! 

The dust has settled and it seems the larger majority of the kinks have been worked out…just looking forward to a successful close and the epic outcome of all the hype the new pricing has created.  More details to follow!

Just an FYI- the individual wine cellars in the wine cave will be managed and leased by the HOA.  Cellar capacity ranges from 18-30 bottles and will lease anywhere from $225 to $300 per year- renewed annually.