by With only five of the 124 condominiums at Town Square sold to date, more than five months after the grand opening of this complex in June, prospective buyers and those anticipating future downtown development in Burien wonder if condo prices might be lowered.
This question has been raised in the weeks since Chicago-based Corus Bank – the construction lender for Urban Partners, the private developer of the condo/retail complex in Town Square – was seized by the Federal Deposit Insurance Corporation (FDIC) on Sept. 11.
Corus Bank’s deposits were sold, then the FDIC conducted a private auction for the remaining assets. Now Starwood Capital Group, TPG Capital, Perry Capital and WLR LaFrak have acquired an equity interest in a limited liability corporation that will hold the construction loans and real estate-owned assets of Corus.
“The $4.5 billion portfolio consists of more than 100 loan and (real estate-owned) assets linked to high-quality condominiums, multi-family housing, office properties, and land representing nearly 23 million square feet,” according to a recent news release from this investment consortium.
Urban Partners, however, has yet to comment publicly on whether it might reduce the prices of its Town Square condos – phase one of the planned Town Square project. A primary reason for this is that it’s not a simple matter of lowering those prices, despite the fact that the investment consortium purchased the construction loans of Urban Partners and others well below their original value.
Two or three or even more banks usually are involved in large construction and real estate loans, notes Burien Economic Development Manager Dick Loman. This, in turn, creates a slow and involved process for a developer to obtain permission from lenders before it can make a corresponding reduction in its housing prices.
In the meantime, Loman says, Urban Partners is “hanging in there. They’re not leaving town. They’re trying to do the right thing. I know that Urban Partners wants to meet the market, but they can’t act until they receive a green light for moving forward. This means that (Town Square condo) prices aren’t going to go down without permission from the bank.”
Burien City Manager Mike Martin emphasizes that “no public money is involved” in the Town Square condo-retail complex. “There is no financial to the taxpayers” because the Urban Partners’ development is privately financed.
But, he adds, “We do want to see them fill up sooner than later.”
by Borrowing a phrase from Mark Twain, reports of the demise of Burien’s Town Square condominiums, which opened for occupancy in June, are vastly exaggerated.
So declares Dan Rosenfeld, principal of Urban Partners, developer of the privately owned condo and retail complex in Town Square at the corner of SW 152nd Street and Sixth Ave SW.
“We are holding on,” Rosenfeld said this week, responding to a rumor that Urban Partners is barely hanging on. “We are very proud of the quality of our project and the effect that it’s having on the revitalization of downtown Burien.”
Together with the public part of the Town Square project, he added, which includes the new King County Library/City Hall building and a downtown park.
“We couldn’t have built a better project,” Rosenfeld continued. “We did this in a very challenging market. We are working buyer by buyer on closing sales. We are making progress. In the long run, I think we will be very successful.”
Un-leased retail spaces sit empty at Town Square.
The Town Square complex includes a mix of one- and two-bedroom condos, two-story Homes on the Park, and live/work lofts. There is 20,000 square feet of ground-level retail space in addition to 122 condos.
None of the retail space has been leased to date. And, said Burien economic development manager Dick Loman, five of the condos have been sold and closed to date, according to the most recent number provided him.
“They’re selling slow for reasons we all understand,” Loman said. “No development company is making money today but they have the resources to hang on.”
Rosenfeld underscored Loman’s assessment, stating that Urban Partners plans “to stay the course … literally 20 potential buyers are having trouble selling their (existing) homes. Everything’s difficult. That is not a reflection on what we have (at Town Square). Quite the contrary. We’ve received many compliments on the project.”
Underwriting standards have been tightened as lending markets adjust to new criteria, he noted. Urban Partners is “fine tuning our lending program and our marketing activities in response to changing circumstances in the capital markets. We are constantly trying to find ways to do it better.”
Burien City Councilman Gordon Shaw quashed another rumor, which suggested Urban Partners was considering renting some of the condos as apartments. The developer is prevented from doing that in their agreement with the city, which states they must be “for sale” units, he said.
With only five condos sold, and all retails spaces still "for lease," it's no surprise that rumors have started.
But, Shaw said, “It’s concerning to me that more of the residences have not been sold and closed. I’m also distressed about no retail leases … I just don’t know how (Urban Partners) can weather this storm.”
As a councilman, he continued, “I’m just sitting here holding my breath. Urban Partners is telling us nothing about their financial condition.”
For his part, Rosenfeld says they still hope to build the other two condo/retail complexes long-planned for Town Square, “but we have to sell the first phase first. The mortgage markets are challenging, the appraisal markets are challenging. The good news is, there are real signs that a turnaround in housing markets is beginning to appear. Things are edging upwards.”
So…what do YOU think will happen to Burien’s shiny new Town Square? Please take our poll, or leave a Comment below…
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We’d like to open our doors and offer a big “welcome back” to BTB Advertiser Burien Town Square, where model homes are open daily for touring at the only new condominium development of its kind in South King County.
The developer has reduced prices on select homes, with new studio condominiums now starting from just $199,950 one-bedroom+den condos now start at $299,950 and two-bedroom homes now starting at $399,950. Also available are two-bedroom+den condos and Homes on the Park (with two levels of living); and for homeowners who prefer to work from home, Burien Town Square’s live/work lofts feature ground floor retail opening to 6th Avenue for a street-front presence.
Building amenities include a formal lobby entrance, private gated garage parking, a central courtyard garden, fire pit patio, p-patch, and an owner’s lounge that features kitchen, fireplace, patio and outdoor grill area is ideal for entertaining. Plus the library, city park, transit center and local retailers are right outside the front door.
With a view of Mt. Rainier from many homes, Burien Town Square showcases open floor plans, oversized windows and three distinct designer color palettes. Gourmet kitchens feature granite countertops and backsplash, stainless steel GE appliances, and solid wood cabinetry. Each residence includes a GE Spacemaker washer and dryer, and many homes feature walk-in closets and a deck or balcony. Many top floor homes also feature soaring vaulted ceilings. Burien Town Square also utilizes energy- and water-efficient features, which allow residents to save money while also helping the environment.
Burien Town Square is unique in its ability to offer a property tax abatement to homeowners, which equals hundreds of dollars saved every month. Coupled with the $8,000 federal tax credit for first-time homeowners, these programs amount to significant savings for Burien Town Square homebuyers.
If you haven’t toured Burien Town Square yet, it’s a great time to come see their furnished models and learn more about their new pricing or tax incentives, amenities and views.
Stop by today – model home tours start at the presentation center, located at 455 SW 152nd Street in Burien and open daily from 12-6 p.m.
For more information about Burien Town Square, please call (206) 901-0000 or visit www.burientownsquare.com.
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by Since discussions began in October of 2003 to build an urban community center, devoid of the need to drive to find world class cuisine, shopping and entertainment, the city of Burien and its residents and residents-to-be have been eagerly awaiting the grand opening of the new much hyped mini metropolis known at the Town Square.
On June 13th, a very successful grand opening of a new city hall and library allowed people to experience firsthand the fruits of Burien’s growth and economic development. Many notable names spoke and praised the city for all it has achieved. New condos stand just to the west of the city hall building, towering with possibilities for those who can reach into their pockets and afford a lifestyle that promises to offer comfort, convenience and a sort of laid back luxury for its owners. With about one third sold as of June 2009, the condos, once only viewable via one floor plan in a model version are now open to be explored.
But what about the “mixed use neighborhood” feeling that is being promised? The stores that will offer residents the chance to leave their car at home (or in the garage in this case) and leisurely stroll along the city streets with virtually everything they will need within a comfortable walking radius?
Don’t get me wrong – I, as a resident of Burien (not of the new town square) already enjoy our local restaurants, stores and services, but there has long been an expectation and promise of more to come for not just the town square residents, but the rest of us as well. This is where the new leasing agency Leibsohn & Company stepped in after a recent switch in representation of the retail spaces available in the new town square. With spaces available from 1, 128 up to 7,315 square feet, there is really an unlimited amount of opportunities for any potential retailer from the smallest boutique to chain restaurant.
According to Ron Waldbaum, the current listed prices are shown at $28-$32 per square foot, however; “We are ready to talk and make deals.”
Mr. Waldbaum has a personal connection to the city of Burien and is very enthusiastic to see it succeed. When asked what types of business he would like to ideally see move into the vacant spaces he said: ones that would be of benefit to the residents making it nearly unnecessary for them to have to do more than walk down the street for all of the things they might need. Coffee shops, paper products, salons and spas and a variety of culinary options would be the ideal candidates.
“For interested retailers being the first to lease a space would be of great benefit. We are willing to customize the space as needed for their business,” said Waldbaum. “We can break up the larger spaces or design something that works to fill them, whatever the client may need.”
For the time being however, no official leases have been signed, but serious interested parties have been in contact with the Leibsohn & Company agents. We as residents will have to keep our fingers crossed that our beautiful new town square does not become reminiscent of a ghost town.
Normandy Park resident Helga Herrera reads the notice taped to the front window of Cafe Mia, explaining its sudden closure.
Photos and Story by Scott Schaefer
Cafe Mia, located in the Normandy Park Towne Center on First Avenue South, closed suddenly last Thursday (4/21) with no warning.
Saturday afternoon (4/25) the doors were locked, paper covered all windows, no employees were present, and the only information available was a letter taped to a window near the front door, which read:
April 24, 2009
Dear Loyal Cafe Mia Customers,
We opened as a Cafe and unfortunately realized that this is not what the residents of the City of Normandy park need and want. In an effort to respond better to these needs we are closing effective immediately and are working to rebrand our concept. We apologize for the inconvenience and hope that you will soon see that our new, more comfortable, family friendly concept will be even better. We will continue to provide great food an hope to add a bar into the new concept.
As residents of this community, our community is very important to us. We are excited to be part of it look forward to bringing you the restaurant that Normandy Park residents need and want. If you have any questions please email us at cafemianp@yahoo.com.
Thanks for your continued support and patience. Please check back for updates.
The Owners of Cafe Mia
We sent an email to the address listed in the notice, but as of 3pm Saturday had not yet heard back; the Cafe Mia website doesn’t mention the closing. We also called the restaurant’s phone number, but after about a dozen rings it went to voicemail.
“I was a regular customer,” said Helga Herrera, a Normandy Park resident and owner of Normandy Nutrition who we found reading the explanatory letter (see photo above). “I loved coming here because they were open late and I could eat here after I closed my store. Plus, they had great coffee.”
While it was opened, Cafe Mia offered fresh baked breads, pizzas, pasta, pastries, paninis and sandwiches, gelato, salads, and even beer and wine.
The recently-opened Normandy Park Towne Center appears to have many empty storefronts and condos, and there were plenty of empty parking spots and little foot traffic when we dropped in on Saturday. The development, which opened in December, is managed by the McKittrick Real Estate Group.
According to the Towne Center website:
“This 3.58 acre mixed use project consisting of retail, office and residential components on 1st Avenue in Normandy Park promises to be a welcome addition to the neighborhood!
With Emerald City Smoothie, Café Mia, Herfy’s and Tight Cuts as our first tenants, we are also proud to offer 26 luxury townhomes for sale and 18 condo flats for rent.”
We’ll keep you updated as soon as we learn what the future holds for this business.
Snapped today by Sales & Promotion Diva Janet Grella – the roof's on the new Burien Town Square! (a BTB Advertiser)
The B-Town Blog is proud to welcome its latest Advertiser – Burien Town Square!
Burien Town Square is that major new development in the heart of downtown Burien that’s changing the shape of the entire area.
You’ve probably seen the crane, driven past the workers and watched the amazingly quick progress of the growth – but have you really explored what’s going to be there?
At completion, Burien Town Square will have as much as 70,000 square feet of retail at the base of over 400 condominium units. The Square is situated on approximately 10 acres and includes a one-acre park, a brand new King County Library and the future Burien City Hall.
The centerpiece of the downtown B-Town revitalization, Burien Town Square will serve as a centerpiece destination for an untapped trade area of over 50,000 employees and nearly 100,000 residents with average household incomes of just under $80,000. When complete, the project will feature ample surface and garage retail parking throughout, making it easy to dine, shop and spend quality time.
We’ve personally toured the demo unit, and can say from experience that the residences at Burien Town Square are very nicely designed. 
There’s a mix of one and two-bedroom condominiums (some with dens), townhomes, and live/work lofts. And with open floor plans and plenty of light, views (look, there’s Mt. Rainier!) and a resurgent walkable neighborhood, this will be a wonderful place to call home.
All homes feature high-quality designs and finishes, with many upgrade options available. You’ll be proud to entertain here, and happy to spend time at home.
If that’s not enough for you, how about this: homes at Burien Town Square qualify for a 10-year tax abatement under the City of Burien’s tax exemption program. That means 10 full years of property tax savings to homeowners!
So click on their Ad in the lower right sidebar, check out their fun and highly-interactive website, and/or drop into their Presentation Center, which is open daily from 12 Noon to 6pm and located at 455 SW 152nd Street in downtown Burien (map below).
Or for more information, call (206) 901-0000 or complete their residential inquiry form.
