Sechelt Development - The Watermark at Sechelt

[Skook]

It’s time for a Watermark update. There are some new sales to report both developer and owner flips, so let’s begin with former.

Developer sales:
Unit 210 - 5665 Teredo (Phase 1) sold Nov 1/13 for list: S339,900
Unit 304 - 5725 Teredo (Phase 2) sold Oct 31/13 for list: $464,900
Unit 500 - 5725 Teredo (Phase 2) sold Dec 27/13 for list: $949,900
Unit 307 - 5725 Teredo (Phase 2) sold Jan 21/14 for list: $459,900

Owner flips:
Unit 308 - 5665 Teredo: Purchased June, 2011 $375,155; Listed Oct 11, 2013 $429,900 (↑14.6%); Sold Oct 23 for asking.
Unit 601 - 5665 Teredo: Purchased Sept, 2012 $1,099,000; Listed Oct, 2013 $1,575,000 (↑43.3%); Sold Dec, 2013 $1,460,000 (↑32.8%).

Would it be a surprise to learn the 601 sale has everyone tied to Watermark salivating? Bet not.

Let’s take a closer look at these two flips. Unit 308 is a corner unit (Teredo St back end) on the inner courtyard side of 5665 with no ocean view unless you stand at the balcony door. It is 1009sf + 141sf (balcony). At purchase, the owner paid $371/sf and the new buyer paid $426/sf - an increase of +14.8%.

Unit 601 along with its mirror image unit (600) is the largest unit you can buy in Watermark at 1977sf + 471sf (balcony). It faces the sunny south and, of course, has a front row seat to that oh so precious ocean view. The Watermark floorplate for level 6 indicates Units 600 & 601 are 3 bedroom + office/den; however, the listing for 601 indicated only two master bedrooms:

Quote:Oceanfront Penthouse Phase 1 at the Watermark. 1977 sq ft open plan living plus 471 sq ft private waterfront patio. Full concrete construction with floor to ceiling windows. 2 master bedrooms plus large flex room for den/ office. The largest floorplan in the Watermark is now available for immediate occupancy.

So, unless there was a typo then some customization to the layout has occurred. The listing also indicated taxes of $7,560 with a maintenance fee of $316/mth. The seller paid $556/sf back in 2011 and December’s sale ballooned this to $738/sf - an increase of +32.7%. So what would justify such an increase? In addition to customizing the layout, did the original owner make substantial and expensive upgrades to the cabinetry and appliances? Was it sold fully furnished?

Or, has the Watermark, in particular, and Sechelt, in general, become so desirable that the buyer just had to have that unit. Watermark developer Pacific Spirit Properties must think so because yesterday it began to up the prices on listed units.

At 5665 Teredo:
Unit 307: $439,900 to $449,900
Unit 309: $399,900 to $409,900
Unit 505: $539,900 to $549,900
Unit 605: $684,900 to $689,900

At 5725 Teredo:
Unit 302: $409,900 to $429,900

It appears the flip at Unit 308 has resulted in the developer rethinking the pricing of the units nearby; as for the others, I’m not sure the reasoning. There were no further price increases today, but more may follow.

While Pacific Spirit has upped some prices by $5,000 to $20,000, current Phase 1 owners trying to unload their waterfront facing units on level 4 have truly been inspired by the sale of Unit 601. Unit 400 was listed in August for $839,900 and on Tuesday raised the asking price by $40,000 to $879,900. Unit 401 owner who paid $740,905 back in 2011 put it on the market in August at $839,900 (↑13.4%) and on Tuesday tacked on another $60,000 taking it to $899,900 (now ↑21.5% over purchase); and, so he should since it is a larger unit then 400 and those additional 82sf are worth every penny of the extra $20,000 and besides only one level separates it from Unit 601 and that has to add value. Well, all this observer can say is “Why not. You're absolutely justified. You go for it and I'll be rooting 100% for you." "Shoot for the moon," is what I say.

On Tuesday, there was also a new flip listed. This is Unit 606 - 5665 Teredo which is the smallest unit available at Watermark at 645sf + 97sf (balcony). These Plan A units (212, 312, 410, 606) are those wee middle ones facing Teredo St that become more expensive the further up from street level you go. This particular unit was purchased in 2011 for $284,905 and is now listed at $319,000 an increase of only $34,000 (↑12%). I say only because when you factor in the taxes, lawyer’s fees etc., etc. paid when the unit was bought how much ROI has the owner made for parking his/her money for the last two and a half years at Watermark. If the unit sells, there will be a commission to pay (unless it’s a real estate agent flip) so what’s the profit here - $10,000? Owner would have done better investing it in the stock market.

Here’s the listing description for this unit - spelling and grammar mistakes included:

Quote:Penthouse customized 1 bedroom unit. Nice built ins [sic], upgraded light fixutures [sic] & 3 way fireplace. The Watermark in Sechelt is walk on watefront [sic], a carefree lifestyle in Downtown Sechelt within easy & level walking distance of all amenities & nearby hospital. Mere steps from the seawall & Pebble Beach. The terraced architecture & concrete construction of Watermark at Sechelt is designed to take full advantage of the beautiful views. This top floor one bedroom suite includes 5 appliances, walk in shower with mountain view balcony. Great Sunshine Coast get away [sic] at a nice price.

Penthouse, eh? I guess that makes all units on level 5 “sub-penthouse” - Watermark should jump on this and rewrite listing descriptions.

What is really interesting about this particular unit is its customized layout. In the image below, are the listing pictures; as well, I have added Watermark’s Plan A layout (bottom left) and shown how I think the layout was customized based on the listing pics (bottom right).

Now, let’s contrast Unit 606 with Unit 410 below which was listed for rent with Holywell Property Management back in August. Unit 401 was fitted out using Watermark’s Plan A layout. In 606, the kitchen width is smaller and the stove and microwave have been moved against the wall. By moving the bedroom, restructuring the dividing wall, and putting in the 3-way fireplace, there is now a whole open living area with lots of natural light which benefits the kitchen area. The 606 bedroom is smaller but you don’t live in the bedroom and there may not be a closet but an armoire would solve that problem. The large window between the bedroom and living room is a smart touch.

Personally, I think the customized layout changes to 606 are brilliant and utilize this small space far more effectively then what Watermark offers in its original plan. I wonder if Watermark offered this customization or the owner came up with it? If it was the owner, then Watermark should have adopted it for all Plan A units. Given what the owner paid for the unit back in 2011, there was a cost to the changes, but it was worth it. Unit 606 actually looks like a home and not like two white shoeboxes stuck together.

Now, if I were the current owner, I would approach Holywell and buy a set of those Unit 410 pics. Then I would up the asking price of this unit to $329,900 and when anyone comes to view the unit whip out the 410 pics and 606 will practically sell itself. Besides, it’s a penthouse and its neighbour just a few feet away at $738/sf is Unit 601. I’m sure some of its magic will work its way down the hall.