Published November 2004

Real Estate Briefs

Everett considers easing
height restrictions on Rucker
The Everett Planning Commission is studying whether to allow developers to add a few tiers to downtown Everett’s “wedding cake” as several business owners have asked the city to allow 150-foot high-rise buildings on Rucker Avenue, nearly doubling the current 80-foot limit.

The city’s “wedding-cake effect” has meant that downtown Everett’s tallest buildings go at the city’s highest points, with shorter buildings down the hill, city Planning Director Allan Giffen said. Changing the zoning to allow higher buildings could increase property values, but could also affect the view for some who live downtown.

During a meeting in October, Giffen presented two plans. One would increase the building height on both sides of Rucker between Everett and Pacific avenues. The other would increase available building heights only on the east side of Rucker.

Skotdal Real Estate is planning two tall buildings on the east side of Rucker, one at the site of the Everett Elks Club and the other at a Hertz car rental lot, said Craig Skotdal, president of the company.

He said the company wants to create new apartments and condos for young professionals, empty nesters and active seniors.

The city plans to notify residents and business owners in the area in question as well as hold a workshop and a public hearing sometime in the near future.

New program puts
Energy Star label on homes
The Northwest Energy Efficiency Alliance has joined forces with the federal Energy Star program to launch an initiative aimed at creating energy-efficient homes throughout the region.

The program, Energy Star Homes Northwest, works with home builders to increase the energy efficiency of new home construction by incorporating advanced duct-sealing techniques, improved insulation, high-efficiency heating and cooling systems, and Energy Star-qualified windows, lighting and appliances into their building practices.

According to the nonprofit alliance, homes built through the program are at least 15 percent more efficient than homes built to Washington state energy codes.

Before homes can earn the Energy Star label, they are performance-tested by a certified technician to confirm that efficient equipment is installed correctly for peak performance. A final endorsement before move-in takes place when the Washington State University Extension Energy Program certifies that all requirements are met.

To learn more about Energy Star Homes Northwest, call 888-373-2283 or go online to www.NorthwestEnergyStar.com.

Shopping center proposed
for Lake Stevens
Mastro Properties of Seattle is proposing a 115,000-square-foot retail complex on more than 20 acres east of the intersection of 26th Street NE and Grade Road, just north of downtown Lake Stevens.

Mike Mastro Jr. wouldn’t say whether the complex, which would include parking for about 700 vehicles, would host several retailers or if it’s planned for one large retail store, and the initial plans submitted to the city are unclear as to who might occupy the facility.

The square footage of the proposed building is larger than most supermarkets, but it’s a standard size for a number of big-box retailers such as Home Depot or Costco. It’s smaller than most of the stores Wal-Mart is building these days, however.

In addition to proposing the retail building, Mastro is asking to extend 26th Street NE across to Old Hartford Road and 26th Place NE.

South Everett apartment complex
sells for $22.7 million
A Chicago-based real estate investment firm has purchased a 311-unit apartment complex in south Everett for nearly $23 million.

Waterton Associates LLC bought the Crystal Cove Apartments at 12102 Fourth Ave. W. from Legacy Partners of Mercer Island. The $22.7 million sales price translates to just more than $73,000 per unit.

The new owners plan to make minor upgrades to the property, said Dave Schumacher of Bellevue-based Columbia Partners LLC, which represented both the buyer and the seller.

Schumacher said Waterton, like other apartment owners, hopes to take advantage of the slow recovery that has started in the rental market.

Waterton already owns the Turnberry Apartments on E. Gibson Road in Everett, which has 221 units, along with a complex in Kent. Richard Wise, Waterton’s director of acquisitions, said the firm is actively looking for other investment properties in the Puget Sound area.

County’s industrial vacancy rate
continues to fall
Nearly one-fifth of Snohomish County’s office and industrial space remains empty, but commercial property brokers are optimistic after completing a number of leases and sales during recent months.

Colliers International said the office vacancy rate stood at about 17 percent at the end of September, while CB Richard Ellis reported the rate at about 23 percent. The third-quarter vacancy rate for industrial space fell to between 19 percent and 21 percent, the property firms reported.

While that is still high, last quarter was the sixth in a row to see a decrease in the industrial vacancy rate across Snohomish County, Colliers said.

For comparison, about 13 percent to 16 percent of office space across the Puget Sound region was empty during the third quarter, as was 7 percent to 9 percent of industrial space.

The third-quarter vacancy rate for the county also doesn’t count several large leases and building sales completed during the quarter. That’s because the space usually isn’t considered occupied until the tenant actually moves in.

For example, even though two huge office buildings at Lynnwood’s Quadrant I-5 Center have been purchased during the past six months, they are still figured into the vacancy rate. The same goes for Zumiez Inc.’s recent lease of an 87,000-square-foot building in the Seaway Center business park.

Once those and other recent deals are officially counted in the next two quarters, the vacancy rate will decline significantly.

Home prices, pending sales
remain high
Closed sales were down, but prices and pending sales were up as Snohomish County finished its summer home-sales run in September, according to a report from the Northwest Multiple Listing Service.

For the month, there were 1,378 closed sales, down 4.64 percent from September 2003, when 1,445 sales were finalized, the NMLS reported. But pending sales were up 8.16 percent from the year before, from 1,360 to 1,471, auguring a strong October.

Of those single-family homes and condos sold, the median price — meaning half sold for more and half sold for less — was $248,000, up 10.25 percent from the September 2003 median price of $224,950, the NMLS reported. The median price of homes alone was $262,500, up 13.14 percent from a year ago; for condos, it was $175,000, up 8.22 percent from September 2003.

The average number of days spent on the market for homes and condos was 52, five fewer days than a year ago, the NMLS reported.

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