Van Gogh Studio Lofts

Much has changed since we presented our proposal for artist live/work spaces at the Rainier Beach light rail station. One significant change is that construction costs are coming in anywhere from 15-30% higher than estimates at the beginning of the summer. That big an increase has a huge impact on a small project's bottom line.

Since we are looking at market rate apartment rentals, it was important to show investors a more profitable bottom line. So we have taken a step back, and re-visited our original designs for Van Gogh Studio Lofts, despite approval from the City of Seattle to move the project forward to Design Review and Master Use Permit.

I am still quite passionate about spaces for artists and other creative entrepreneurs, so we are keeping that vision intact as we move forward. But I have been talking with micro-housing developers about the options for this project, and they do look quite promising.

Rather than building over-sized live/work rental units that averaged almost 800sf/unit, we could consider creating smaller residential units of 429sf or less. This allows us to pack more units into a smaller space. We would then develop only the southern half of the 10,600sf parcel as Phase One, reducing our costs of construction and mitigating risk. We should be able to build approximately 25 units of this size on-site.

The northern half of the lot could be sold to generate liquidity for the project, or developed later as Phase Two.

The ground floor of the Van Gogh Studio Lofts project would include almost 2000sf for commercial activity, with 13' ceilings and great street front visibility. The commercial activity on the ground floor may include galleries, artist studios, community meeting room, an/or maker spaces that would be additional amenities to residents in the building.

I am meeting with different investors, developers, builders and architects now to gauge interest in this new direction. The proforma numbers certainly look more promising and attractive to investors.

Stay tuned for more updates as we move forward on this project. For more information, please message me privately at wendy@vangoghdev.com.

Happy Investing!

Transit Oriented Development

I closed on our land purchase in the name of Van Gogh Studio Lofts, LLC on Monday, and toured the Rainier Beach community on a "Find It, Fix It" walk with the City of Seattle last night that circled the block around our property. I have included some photos of that event here...

...along with photos from the inside of the house that is currently located on that property.

The City is putting a lot of money and energy into improving the Rainier Beach community, and our commercial mixed-use project should benefit from all the attention.

We are scheduled to break ground in early 2015 and be ready for occupancy in early 2016. By that time, light rail will extend to the University of Washington, with a new stop in Capitol Hill. We will be the first transit-oriented development in Rainier Beach.

Happy Investing!

The Truth About Rainier Beach

Did you know?
• Rainier Beach is safer than 16.9% of the neighborhoods in Seattle.
• The crime rate in Rainier Beach, Seattle is less than 6% of the cities in Washington.
• The estimated chance of being a victim of a crime in Rainier Beach is 1 in 18.
• The estimated chance of being a victim of a violent crime in Rainier Beach is 1 in 167.
• The estimated chance of being a victim of a property crime in Rainier Beach is 1 in 20.

• The estimated Rainier Beach crime index is 1% higher than the Seattle average and and the Seattle crime index is 45% higher than the Washington average.
• The estimated Rainier Beach violent crime rate is 1% higher than the Seattle average and and the Seattle violent crime rate is 100% higher than the Washington average.
• The estimated Rainier Beach property crime rate is 1% higher than the Seattle average and and the Seattle property crime rate is 40% higher than the Washington average.

"Rainier Beach’s tough reputation used to be valid — no longer. Massive renovations had led to a thousand working-class residents having homes in the area , deteriorated properties began to go for affordable rates and businesses began to populate vacant properties, attracted by low rates. Rainier Beach has access to a few parks and, as the name might imply, a shoreline against Lake Washington. The parks are very inviting, especially when the weather is nice and bikers have their pick of trails that run all along the main roads. At the Hutchinson Park, you’ll find the right type of court for most popular sports, and with a Japanese-style garden with streams, ponds, and walkways called the Kubota Gardens. Lakeridge Park is slightly more on the wilderness side than other parks in the area, offering a forested trail that runs a mile around a so-called canyon. At Beer Sheva Park, there are tennis courts and an area to launch your boat into the lake, but also a children’s big toy and area to picnic in. A testament to the area’s affluence, the Rainier Yacht Club offers very pleasant facilities suitable for parties and receptions, and comes complete with a waterfront view into Lake Washington." –Luke Phillips, posted on Street Advisor

"There is a time for everything. Rainier’s Beach time is here. The area is still known for its crummy past but with such a long stretch of shoreline that helps to increase the value of waterfront property.

"The area has one of the new light rail stations which connect the area to downtown so the neighborhood is booming for those commuters who don’t want to take an hour or more to get home at night. But the real draw of the area is the Kubota Gardens. Walking into this stunning public garden is like walking into another world and you forget that the area is still sadly known for past violence. The gardens take up about 20 acres and the landscaped grounds host waterfalls, a great planet variety, streams and ponds. The gardens are the best part of the area and are a must visit destination when in the area."
--LucysPal3, posted on StreetAdvisor.com

Van Gogh Development Corporation is developing an artist live/work community at the Rainier Beach light rail station on South Henderson Street. Van Gogh Studio Lofts are scheduled to open for residency in early 2016. We believe that the future for Rainier Beach is bright!

To find out more about Van Gogh Studio Lofts, please contact Wendy Ceccherelli at wendy@vangoghdev.com or call 425-270-7292.

Happy Investing!