November 13, 1997

Developers trying to bring city life back to Seattle

BY JERRY CRAIG
Journal city editor

Could Seattle become another Vancouver, B.C. with its distinctive in-city lifestyle?

Trevor Jones, who has developed housing in both cities, and his son Dean seem to think so.

The Jones' company, T. Jones Inc., has plans to build hundreds of condominium units close to downtown -- housing that is affordable to a wide range of income levels.

Their first big residential project here is a rehab of the 16-story, 200-unit Elektra, a 1950s-era apartment building of sturdy concrete construction located just east of the State Convention Center at 1400 Hubbell Place.

Several new-construction projects will follow, including The Concord on First Avenue between Eagle and Broad streets in the Denny Regrade neighborhood. Construction is set to start sometime next year on this 220-unit luxury condominium complex.

The Elektra: a 50's-era apartment building converted to condominiums.

A 24-story condominium tower is proposed just east of The Elektra which, according to the younger Jones, "will provide affordable housing in a concrete highrise."

And property is being assembled at Third and Virginia at the north edge of downtown for another possible 24-story residential tower development.

A development-management will soon be formed to handle all this development.

The Elektra, originally called the Town House apartments when built in two phases in the 1950s, was once considered an upscale address, says Trevor Jones. But the building had fallen into disrepair when the Jones and another investor bought it several years ago.

The original plan was to rehabilitate The Elektra for rental housing but, as Dean Jones explains it, "We detected a shift in the market and decided on a condo conversion instead."

The nearly $8 million upgrade includes new electrical and plumbing, double pane windows and new appliances. Original wood detailing and flooring was retained as were the thick concrete walls which provide good sound insulation.

Says Dean Jones, "The look of the building, even its name -- has an art deco, 50s feel."

More significantly, many of the units are affordable to a wide range of incomes with prices ranging from as low as $65,000 to $300,000. Several Seattle SuperSonics basketball players have lived in the penthouses on the top floors.

A total of 92 units have been sold in the initial six-week marketing campaign. The remainder of the units will be offered for sale in January.

"We didn't want to flood the market with 200 condos all at once," says Trevor Jones.

At first The Elektra was marketed to first-time buyers because of its affordability and the lure of a downtown lifestyle, says Jones. Emphasis was placed on rapidly rising rents in the area and how much sense it makes to invest in housing and stabilize living expenses in the years ahead.

Sales information so far show that the largest percentage of buyers tend to be young, single males who characterize themselves as "professionals" earning between $40,000 and $60,000. Another significant category are married couples needing a second home in the city.

Trevor Jones, right, and son Dean are betting on a continuing boom in downtown living.

Forty-one percent of residents report that they work less than one mile from The Elektra.

"People," says Dean Jones, 'are tired of the responsibilities of home ownership and long commutes into the city." He compares Seattle to Vancouver, B.C. ten years ago and points to a number of similarities such as expanding economies, growing traffic congestion and more attractions downtown such as retail and entertainment centers, restaurants and cultural activities.

Trevor Jones established a reputation for building luxury single-family homes on Vancouver's West Side. He also has developed a large number of multi-family projects in the western Canadian city, both new construction and renovations.

Although he has also been active in Seattle real estate for the past 20 years, most of the projects here have been low-key, typically involving the renovation of older apartment buildings in areas such as Capitol Hill. He credits son Dean with providing much of the enthusiasm for expanding investment in the Seattle housing market.

"What they're trying to do here is unusual," says Seattle land-use consultant Rachel Ben-Shmuel, "especially with regard to affordable housing."

She points out that the Jones are going beyond the city's affordable housing requirements for the proposed Terry Avenue highrise. By the city's definition, affordable housing is housing affordable to those earning 100 to 150 percent of the region's median income which is $38,550 for a single person and $44,100 for a couple. But the Jones' are targeting their affordable housing allotment to those earning as low as 80 percent of median income -- or roughly $30,000 for a single person.

"This is what the neighboring First Hill community says they want to see," says Ben-Shmuel -- "housing priced between low-income and market-rate."

While condominium projects -- and a few high-end rentals such as Harbor Steps -- have sprouted in and around downtown in recent years, there are those who doubt Seattle will resemble Vancouver B.C. anytime soon with its dense, in-city residential neighborhoods.

"Vancouver is more cosmopolitan with its influx of wealthy Asian and European immigrants," says condominium marketing specialist Leslie Williams.

Williams also notes that young Vancouverites are told to invest in housing as soon as possible "while here "young people think it ties them down."

The Jones' hope to change that kind of thinking and are offering The Elektra as a prime example.