Mecca Goes Off the "For Sale" Market
The Mecca, our favorite porn theater turned condominium project, has officially pulled their units from the market. According to the Gintz Group, they are now actively looking for rental tenants and prices should be available later today.
If interested, contact Tessa with Suhrco at 253-426-9985 for showings by appointment only.
Things change so quickly around here …
Previously on Exit133 (search)
Filed under: Real-Estate
18 comments
T tressie August 5, 2008
will they be rented by the half hour or what?
C CA August 5, 2008
Hmm. This probably doesnt bode well for the Luzon building.
R RR Anderson August 5, 2008
how many quarters for a showing?
J Judy Leyden August 5, 2008
That is a shame. Of all the remodelled/refurbished units I’ve seen (and I think I’ve seen them all), the Mecca was my favorite. If I didn’t already have my condo I sure would havae bought one in the Mecca building. They are priced right with quality features. People have missed an opportunity here.
C crenshaw sepulveda August 5, 2008
This comes as quite a shock to me as I noticed that many of the units had signs in their windows indicating they were sold. Could it be they were salting the mine?
C crenshaw sepulveda August 5, 2008
We’ll see how rented out the Metropolitan is when it actually opens. It seems to me,given all the “sold” signs in the windows of the Mecca, one might just want to question, just a little bit, what the developers tell you.
M michael g. August 5, 2008
This doesn’t seem like too big a deal to me — whether these places are filled by renters paying relatively high rent or owners, we still end up with more people living downtown who will help make it a more safe and lively place. My understanding is that the condo market in most other cities is similarly soft right now.
E Erik B. August 5, 2008
This doesn’t seem like too big a deal to me — whether these places are filled by renters paying relatively high rent or owners, we still end up with more people living downtown who will help make it a more safe and lively place.
Yes, once Hanna Heights started renting their spaces, the place filled up.
T Thorax O'Tool August 6, 2008
I toured the Mecca myself, ans I liked them as well.
But the taking off the market is of no surprise to me.
If you ignore the portion of apartment dwellers out there who have no intent to buy a condo (like yours truly), we can break down the most typical condo dwellers.
Condos appeal typically to two types: retired folks downsizing and (mostly) young, more trendy people before they have families (aka the Yuppies).
In light of the housing fiasco and current credit crisis, banks are clamping down hard on loans. And it typically is the exact target demographic of condos who are being hit hard by the clamp down. Non-perfect credit, outstanding car loans, student loans, credit cards and typically no to low down payments are common. All that seriously impedes their ability to buy. The retirees are more likely to go for something like 505 Broadway, not so much Mecca/Hanna Hts/ Chelsea Hts.
Until the market finally heals itself from the 7 year orgy we just watched, apartments will be a damn hot commodity.
Word to the wise developer out there: Affordable housing is highly likely to be a good investment for some time to come.
As for the Luzon, I hope Gintz had enough foresight not to have the viability of the Luzon be solely dependent on sales at the Mecca. The Luzon is a classy old lady who deserves the attention.
T Tanner August 6, 2008
I think right now it is all about being FHA approved which I am pretty sure the Mecca wasn’t because they didn’t sell enough units (I think you need 70% sold to be FHA approved) . Most buyers right now need to do a FHA loan that only requires 3% down (soon to be 3.5%). No FHA means you need 20% down and most people don’t have that even most yuppies.
Congress is said to be working on the FHA issue with condos.
T Thorax O'Tool August 6, 2008
Congress is said to be working
That joke made my day!
I’d love to see the FHA continue to reach out. But with the current market and the trouble with Fannie and Freddie, I fear for the FHA.
D drizell August 6, 2008
I think condo sales will continue to struggle in Tacoma, regardless of what’s going on with the housing and finance markets, until it actually becomes less expensive to own a condo than a house. Up in Seattle, they have no trouble selling condos, even in today’s market.
The reason for this is that in Seattle, you expect to pay a minimum of about $500,000 for a house in most neighborhoods. Condominiums, by comparison, are much less expensive. People are willing to sacifice space because there are enough things going on up there that you don’t have to spend all your time at home.
Tacoma still has a long way to go before it provides the type of atmosphere in which people will be more likely to embrace small living spaces in more densely populated neighborhoods. If you were a first time buyer, and you could choose between an 1800 square foot house in Hilltop for $125,000 or a $400,000, 700 square foot condo at the Roberson, which would you pick?
It’s a no brainer.
T Thorax O'Tool August 6, 2008
It’s a no brainer.
No kidding!
R rick August 6, 2008
@13
Clearly, there’s a market for $570/sq ft condos in Tacoma. The question is how BIG is that market. My guess is that it’s not big enough…
D Derek staff August 6, 2008
@13 Everything we’re hearing isn’t about a lack of interest. The problem is what Tanner (@11) points out. FINANCING. FHA requirements that 50% be sold before a project qualifies for FHA money. We’re hearing about a lot of projects getting contracts signed … and having the financing fall through. There’s a big difference between 3.5% down and 20% down.
M Marguerite August 6, 2008
If you were a first time buyer, and you could choose between an 1800 square foot house in Hilltop for $125,000 or a $400,000, 700 square foot condo at the Roberson, which would you pick?
Everybody likes different types of homes. I see what you’re trying to say Drizell, but I also know lots of people who would not want a big old fixer in Hilltop. And you’re right, while they might not pay 400k for 700 sq ft at The Roberson, they might pay $239k for 2 bedrooms and 800+ sq ft at the Elmwood in Stadium, or a similar price over at 440 St Helens.
E Erik S August 6, 2008
Thorax and Drizell are right on the money.
Financing issues certainly matter, but think about it: if no even the “yuppies” can afford 10% or 20% down, then the asking prices (recently market clearing, but no longer) are seriously out of line with incomes. This isn’t a problem specific to the Mecca, to condos in Tacoma, or to Tacoma overall. It’s a widespread phenomenon, though perhaps less nowadays in the midwest. It really amazes me that American consumers decided that dirt (or airspace) was going to be worth 25%, 50%, 75% more than it had been a few years ago, and that they would devote 40%, 50%, or even more of their incomes to shelter/speculation. It couldn’t last, and now it hasn’t.
And, as Drizell says, it’s natural that the properties that suffered first and will likely suffer most are those sold on the promise of future developments in the area. Buy a condo now – soon the downtown will be teeming with activity! You’ll really wish you had. We really, really mean it! See, there’s this Tollefson Square project that’s really going ignite downtown….
C chad August 9, 2008
I feel that it is a shame that the Mecca is turning into rentals. After all the bad lending practices and stories in the media, the people that are hurt the most is the home buyer. I feel that condominiums are great for the young and old alike. If you want to buy a place that is ready to move into without a whole bunch of work it will cost about 400,000 or more. Where a nice condo 200,000. I feel that Tacoma should expand their down payment assistance to full lending.