Pagliacci comes to town

Pizza parlor to open Thursday

First the news for our short-attention-span readers:  we're told there will be free pizza slices (from 11 am until 4 pm) once Pagliacci gets the doors open tomorrow at its new Madison Valley location (3015 E. Madison St.).

After over three months of construction (and eleven years of planning), Pagliacci Pizza is returning to the very site where it once operated a commissary kitchen.  But there's never been a Pagliacci restaurant in the neighborhood (the closest Pagliacci is on North Capitol Hill), so this foray into Madison Valley represents a whole new opportunity for Pagliacci to introduce its particular style of pizza and service to a area of town that already has several pizza alternatives.

We got a preview of Pagliacci's plans for the new location (the company's 24th) from co-owner Matt Galvin earlier this week.  First of all, the pizza: "It's always been about hand-tossing, baking on bricks, and using local, fresh ingredients," he told us. "That's the way it's been since the very beginning of Pagliacci and we're not going to be changing it." It's also about including some seasonal pizzas in the lineup, as the opportunity presents itself, he added. "Today it's the Mushroom Prima, featuring lobster mushrooms."  [An aside here to note that 425 Magazine's November issue reports that Pagliacci Pizza, known for its "high-end, thin-crust, artisan pizzas," has been chosen one of the best in America by Bon Appetit.]

Now about the site: The just-being-completed-today building is Pagliacci's first LEED-certified structure, "green from the ground up," according to the press release.  Says Galvin, "Our customers and employees know that we're committed to being an environmentally focused business, and our newest location will allow us to put all these practices into place under one roof."

There's a lot of wood in the building design, as well as efficient lighting and plumbing fixtures, and strong use of natural lighting.  Going further, this Pagliacci location will utilize composting and FSC-certified pizza boxes, among other green measures.

The new building has been completed almost on time (the opening has only been delayed by a day or two).  It turns out the site needed more shoring up than originally assumed. There was also a fair amount of environmental clean-up that occurred during site restoration.

Among the features of the new restaurant is a children's area (with books and a chalkboard) near the "toss-table" (so that kids can get an up-close-and-personal view of the handicraft involved in pizza tossing).  There is seating for about 30 people, and there will be one of those new Coke machines where patrons can formulate their own concoction.

Pagliacci's delivery area for this location will include, in addition to Madison Park and Madison Valley, Madrona, Leschi (to south of I-90), the Central District, and part of Capitol Hill and First Hill (south of Madison St.).

Galvin says he's excited about the new location and Pagliacci's ability to deliver great pizzas to a whole new crowd of pizza lovers.  "In a way, this grand opening actually represents a homecoming for us."

Welcome back to the 'hood.

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KIRO TV reports early morning Lake rescue

Man takes underwater drive

KIRO TV reported earlier today that an man was rescued from a submerged car in Lake Washington early this morning. According to KIRO, the car entered the water near the 2200 block of 43rd Avenue E. The story is available here, and there's a more detailed report on the SPD blog here.

A Twitter posting by the Seattle Police Department records the following incident: "DRIVING WHILE UNDER INFLUENCE (DUI) at 23XX BLOCK OF 43RD AVE E reported on 10/29/2012 5:37 AM."

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Third Quarter Real Estate Report

From “Active” to “Sold” in Three Months

It appears that Madison Park’s very low level of real estate inventory is having a collateral benefit for at least some home sellers.  Those who price their houses in line with the market can now realistically hope for multiple bids, a “sale for list” price or even higher, and a quick “turn.”  During the third quarter no fewer than six home sellers were paid their original list price or higher at sale.  The average time on market for these particular “sold” properties was just five days.  In previous quarters there were few if any homes sold at 100% of original list price, so the last few months seem to demonstrate that the local market is entering a new phase.

And there are other good reasons for potential sellers to be optimistic.  For example, the average time on market for Madison Park houses sold during the quarter was only 67 days, down dramatically from the 136-day average of the same period last year. Meanwhile, the average discount from the original list price for these properties was just 8.9%, versus 12.5% last year—certainly a trend the right direction.

Here’s a quick overview of what happened in Madison Park (Washington Park and Broadmoor included) during the past quarter:

Houses

Sales:  16
Median Sale Price:  $1,086,000
Average Sq. Ft.:  3,495
Average Price per Sq. Ft.:  $387
Average Days on Market:  67
Average Discount from Initial List Price:  8.9%

Condos

Sales:  9
Median Sale Price:  $272,000
Average Sq. Ft.:  922
Average Price per Sq. Ft.:  $360
Average Days on Market:  93
Average Discount from Initial List Price: 7.3%

The total of 25 sales is not spectacular, given that there were 34 sales in the third quarter last year, but that number is robust when compared to the situation just two years ago when only 14 houses changed hands in the same period.  At that down point for the market there were 77 houses for sale, whereas today the number of house listings stands at only 38.

On a macro level there is much to be enthusiastic about, and all of it impacts our hyper-local market here in Madison Park.  First of all, rates remain stunningly low. Bankrate.com reports that 30-year fixed-rate mortgages are now averaging 3.5% nationally, with 15-year rates at the 2.88% level.  Assuming one can qualify, financing is super-affordable.  Closer to home, the UW’s Runstad Center for Real Estate Studies reports that in the second quarter (the most recent for which statistics are available) resales in Washington were up 10.4%, permits were up 22.9% and median resale prices were up 4% year-over-year for the state.

The Case-Schiller home-price index for Seattle, meanwhile, shows a one-year 3.1% uptick in Seattle home values, the Northwest Multiple Listing Service (MLS) reports sales up 14.6% in Western Washington for the first nine months of the year, and pending sales of homes in the Puget Sound region are up over the previous year. According to Tim Ellis of SeattleBubble.com, approximately two thirds of homes in the Seattle market are attracting multiple offers.  Finally (and most importantly), Seattle has experienced a 3% increase in its labor force during the twelve months ending August 2012, according to Washington State Employment Security—and continued rising employment in the area is expected to keep the real estate market on a positive trajectory.

615 36th Avenue E. - Sold for $2.850,000 in September

Here’s how this all played out in Madison Park during the third quarter.  Of the 25 home sales, ten were for $1 million or more, the most expensive house (a 4,300 sq. ft. Washington Park mansion located at 602 36th Avenue E.) having sold for $3,200,000. The least expensive home was a 1,300 sq. ft. spec house completed in early 2011 and originally listed at $750,000, which ultimately sold for $543,000.  We previously profiled this house and its companion house, which were both built on what had once been a single lot on 42nd Avenue E., north of Madison.  The first of the two spec houses sold quickly, but the second one languished on the market, off and on, until this August.

That house received the biggest discount at sale from its original list price (28%), with the second-place honor for the quarter going to a 5,260 sq. ft. home initially listed for $2,495,000 but sold for $1,850,000, a 26% discount.

There were five houses and nine condos that sold for under $1 million during the quarter.  The condos ranged in value from $210,000 to $785,000.  One of these sold for 100% of its list price after a full 412 days on the market.  Sometimes it pays to stick to your price, apparently.

This cottage at 1865 41st Avenue E. is listed at $710,000

As usual there is a significant disconnect between the Madison Park homes that are being sold and those that are listed for sale at any given point.

Here’s a snapshot of the market as it stands at the end of October:

Houses

Listings:  38
Median List Price:  $1,695,000
Median Sq. Ft.:  4,010
Median Price per Sq. Ft.:  $423
Average Days on Market:  148
Percentage with Price Reductions:  37%
New Listings:  5
Pending Sales:  10

Condos

Listings:  13
Median List Price:  $465,000
Median Sq. Ft.:  1,106
Median Price per Sq. Ft.:  $420
Average Days on Market:  176
Percentage with Price Reductions:  71%
New Listings:  0
Pending Sales:  5

The houses currently for sale, in particular, are much larger and more expensive than those that were sold last quarter.  The median sale price of $1,086,000 is 36% less than the $1,695,000 median list price for houses in the neighborhood.  And this is after 37% of those listed houses have already suffered a price reduction.  This does not mean, however, that the for-sale houses are out of line with current market conditions.  It’s partially the effect of having a lot of expensive houses available and the likelihood that the less-expensive listings will move to sale more quickly.  Only six of 38 houses listed for sale are priced at under $1 million (16%), while six of 16 houses sold last quarter (38%) were sold at that level.  Just to further belabor the point, the six under-$1 million houses currently available have been on the market an average of 74 days, while the 32 over-$1 million houses average 149 days.

The view from the spec house at 344 McGilvra Blvd. E., listed at $5,995,000

In a future report we will take a look at how the price per square foot of Madison Park dwellings has moved with fluctuations in the market.  For now we will end by simply stating that things have certainly been worse.

[Thanks to Laura Halliday of Windermere Real Estate for her help in compiling the sales data.  Listing data courtesy of Redfin, using information from the Northwest Multiple Listing Service. All photos courtesy of the listing agents, via Redfin, except for upper photo, showing 1878 McGilvra Blvd. E., listed at $739,500.]

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Will it never end?

Stormwater project takes on a life of its own

The Madison Valley Stormwater Project was supposed to have been completed in the autumn of 2011. Yet to the consternation of both Madison Valley merchants and drivers inconvenienced by delays along Madison Street, it's obvious that as autumn 2012 begins to wind down, the Stormwater Project has yet to make it over the finish line. What's the story?

According to Grace Manzano, the Seattle Public Utilities project manager, the City's failure to meet the original timetable is the result of unanticipated conditions, bad luck, and at least one mis-step that occurred during construction. It's true that the principal objectives of the project (the building of an underground stormwater pipeline to connect with a newly constructed storage tank in Washington Park) were accomplished last November.  Additionally, a project to improve surface-water drainage along E. Madison Street through Madison Valley was also completed on time.

But what didn't happen on schedule was the landscaping of the stormwater tank area in Washington Park.  Because of inclement weather at the end of last year and a desire by the City not to negatively impact the parking situation in Madison Valley during the holiday shopping season, says Manzano, completion of the landscaping was delayed until the anticipated "better weather" of spring 2012.  Work on the project was re-initiated in May.

Landscaping around the cistern is more than slightly behind schedule

However, several problems immediately impeded construction, according to Manzano. First of all, a 100-year-old water main which passes through the Park coincidentally failed and had to be repaired. There was also the problem of weather during the spring which, as some may recall, was extremely wet. The biggest source of project delay, however, was the realization that the original landscaping plan made assumptions about soil conditions in the Park that were not true. "Slope stabilization" immediately became a problem once work began, says Manzano, because the "specifications were not consistent with actual site conditions."  In other words, the existing soil was insufficient to hold in place the slope which connects E. Madison St. to the lower area surrounding the storage tank.

As a result of this discovery, it became necessary for the CIty to remove and replace the existing soil and rebuild the slope. The landscaping design was also significantly revised, Manzano reports, so that there was a significant increase in the number of trees planted to further stabilize the slope. What was originally a 130-tree plan became a 200-tree plan.

Parking continues to be impacted along E. Madison Street

Each of these factors led to both the project delay and to the higher-than-anticipated level of construction disruption along E. Madison Street during the summer and early fall. Additionally, 28th Avenue E. at the intersection with Madison was closed to traffic for the first two weeks of this month because of an earlier construction error.  Manzano reports that when the area was dug up to remove boulders encountered during the underground boring operation, the area was not properly resealed. As a result, stormwater entered at least two buildings (including the one housing restaurant Luc). This problem had to be corrected by installation of some new drainage infrastructure in the area, a job that was completed last week.

So are we done yet?  Manzano says the City hopes to complete the project in the month and a half.  We shall see.

The Washington Park playfield is also being resurfaced

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What next for the Tully’s space?

Madison Park Blogger descends into rumormongering

Someone started the rumor last week that the now-vacant Tully’s space is soon to be taken over by a bank—specifically, US Bank, the Madison Park Blogger’s former employer.  This perverse idea began making the rounds within a day or two of the announcement that Tully’s was abandoning its Madison Park location.  As the week progressed, it became clear that many people had heard the story, including the managers of some of the neighborhood’s bank branches. So we, of course, had to investigate.  Unfortunately, in doing so, we ended up asking a lot of people about the possibility of another bank invading the ‘hood, thereby further spreading a story that may have no basis in fact.  How irresponsible of us.

Just to be clear, there is no evidence that US Bank—or any other of the few remaining major banks not already represented in Madison Park—is planning to open a branch in the hallowed space that had for almost two decades served as the neighborhood’s anti-Starbucks.  At the time the shocking bank rumor got started, the “we regret we’re closing” notices had just been posted on the building’s entry doors and the brown-paper coverings had just been applied to the windows. Lack of information breeds speculation, and given the outsized reaction of some Madison Parkers to the introduction of Key Bank into the neighborhood (and the more recent dust up about the Wells Fargo signage), what more provocative rumor could be invented than the introduction of a fifth bank branch into Madison Park?

The wood-frame building at 4026 E. Madison St. that for almost two decades had housed Tully’s was originally built in 1900 and has had many incarnations, including, apparently, hosting a mini-mart.  The property covers 4000 sq. ft., of which the one-story building comprises just over half the total space, 2,080 sq. ft.  It could therefore easily accommodate two shops or one larger tenant, such as a bank.  Interesting enough, the tax-assessed value of this prime commercial property in the heart of Madison Park is only $401,000 and has been held by the assessor at this level, with virtually no variation, since 2001.

King County records list Wallace Properties of Bellevue as the property’s “taxpayer.” Tully’s founder Tom O’Keefe, in a recent email exchange we were copied on, stated his belief that the building is actually owned by a family trust.  And indeed, when we called Wallace regarding the current disposition of the lease, we were told that the company only serves as the leasing agent for the property.  Although we left a message with the listing agent at Wallace, we did not receive a return phone call following up on our request for comment. 

So we decided to go directly to US Bank to see if the bank is indeed in the hunt for space in our neighborhood.   We were aware that in past years the bank had been interested in the potential of Madison Park, so the idea did not seem farfetched.  Unfortunately, US Bank was only slightly more forthcoming than Wallace Properties in providing an answer.  At least we did get a call back, though all Chris Heman, the bank’s regional Retail Banking manager, was willing to give us was an official “no comment.”  Now you might think that if the story were absolutely untrue the bank would be willing to deny it.  But that’s not how things work in the corporate world, so we probably should not make any assumptions. 

Except perhaps one.  Late last week Wallace Properties slapped some “For Lease” signs in the windows of the building. So, whatever the status of any behind-the-scenes negotiations for tenant space, at this point we may assume there’s no done deal.  And with regard to the idea of another bank coming into Madison Park, is that concept really crazy?  This is, after all, where the money is.  And, as one of the neighborhood’s bank managers pointed out to us last week, the Magnolia neighborhood already hosts five or six bank branches.  So why not Madison Park?

Indeed.

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This and that

Trick or treat at Madison Park merchants Wednesday, October 31:  For those who may have missed the flyers in the windows of many neighborhood shops this week, we note that the annual business district tricking and treating event will occur on Halloween this year, from 3 until 6 pm at participating businesses. As usual, there will be a photo booth set up at McNae Park (aka "Triangle Park") in front of Bing's so that those so inclined can memorialize the occasion.

McGilvra Fifth Graders' Holiday Fundraiser:  It's the time of year again to start thinking about "holiday" trees, wreaths, and poinsettias--and perhaps even to consider ordering them for later delivery. If you are of a mind to do so, McGilvra Elementary School's fifth grade class will meet that need. Its annual sale to support the class's graduation and camp is underway, with orders for Noble firs, Douglas firs, red and white poinsettias, and fir-branch wreaths with cones being due by October 31. Click on the graphic at right to get a copy of the order sheet. You may drop your order off (with a check or cash) at the McGilvra’s school office through the end of the month. Or you can mail the order form (with a check or cash) to McGilvra Elementary School, 1617 – 38th Avenue East, Seattle WA 98112, Attention: McGilvra PTA.  Pickup will be on December 1 (though for a small $10 fee holiday trees will be delivered to any address within two miles of McGilvra).

Martha E. Harris Flowers & Gifts begins a new chapter:  The question of what will happen to the neighborhood's iconic flower shop, given Martha Harris's untimely passing earlier this month, was publicly answered late last week on the business's Facebook page, with this announcement:

Dear Friends and Patrons,
We are all feeling the loss from Martha’s passing. Her talent, her courage, her sense of community, her charity, her spirit, her laugh, and her fierce passion for life are qualities that we all cherished. With her passing, there have been many questions about the future of her life work and true passion, her store. I want to formally announce that Martha has passed her business, Martha E. Harris Flowers and Gifts, to me. I look forward to continuing her legacy by honoring her creativity, quality, and commitment to her community. Thank you very much for all of your support and well wishes during this incredibly difficult time.

We are all better having known her.

Sincerely,
Bruce A. Chester

In honor of Martha Harris, Cactus! will be running a Martharita in Martha’s Memory on the restaurant's feature menu for the next month or so and donating a dollar to her memorial at Swedish hospital for each order. Owner Bret Chatalis tells us that Cactus! is hoping to raise between $500 and  $1000 for the Martha Memorial Fund. The Martharita:  "Blanco tequila, lime, agave and Alize Passion Fruit Liqueur—served up with Martha style."

Remember, 520 is closed again this weekend: Yes, it's the usual drill, with a bit of a reprieve in recognition of Seattle Sounders game traffic on Sunday. At 11 pm on Friday night  the floating bridge will close, but Sr 520 will reopen earlier than usual, at noon on Sunday.  During the closure, crews will be setting 34 massive concrete girders over the highway for the 84th Avenue NE overpass, shift eastbound lanes near Evergreen Point Road to the north, and "complete other time-sensitive work."

[Graphic above by Pedro Ferreira on Flickr.com]

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The deli to get a makeover

Madison Kitchen will arrive near yearend

Because our readers like to be in the know, we barged our way into what had been Park Place Deli today to demand an interview with the new tenant, Jim Goodall, who we discovered on site and working with a restaurant designer on a new concept for the space. Happily for us, Goodall was gracious enough to divulge a bit about himself and to give us a sneak preview of his plans, though he declined to be ambush-photographed while in a not-photo-ready condition. We satisfied ourselves with taking a picture of the disrupted space instead. As you can see, there's a lot of work to do---especially if the space is going to be significantly transformed, as Goodall reports it will be.

For those who like short posts and want us to get quickly to the bottom line:  Goodall says that his new eatery, Madison Kitchen, will be a deli and more.  It will be open longer hours (perhaps 8 am until 6 pm); will be comfortable, bright and inviting; and will offer high-quality coffee (Illy Espresso) and well-prepared, quality-ingredient food: soup, salads, and sandwiches primarily, as well as "a light, limited" breakfast. There will also be a solid number of take-out items in the deli case that "busy moms can appease their picky kids with," among other likely patrons.

Now, a bit about Goodall (as self described): He was once a Vermont farm boy, but he has lived much of his life on the West Coast (Monterey, Santa Monica and--off and on--Seattle). He is a resident of Madison Valley. His most recent stint was as the GM (that's general manager) for Vios Cafe at Third Place Books (Ravenna).  He went to culinary school right out of high school, has worked in various restaurants, and for many years he operated a successful boutique catering business. Although he has a masters degree in Social Work and is a licensed clinical psychologist, he says he loves the food business. And he really likes to bake. Although he says he definitely will not be trying to compete with the Madison Park Bakery, there will definitely be baked goods on the menu at Madison Kitchen (scones included).

Need to know more?  Well "a lot is still up in the air," Goodall tells us. Just think "wholesome and healthy--I am conscientious about my ingredients."  But don't expect this to be a quick transformation from the old to the new.  Goodall (who promises to keep us in the loop) is expecting the opening to be at the end of this year at the earliest.

Stay tuned.

[Madison Kitchen will be located at 4122 E. Madison St.]

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