The Schuster Group, which built the gorgeous, environmentally innovative Mosler Lofts, is trying to sell its two-story headquarters in lower Queen Anne for $4 million. The building has housed Schuster’s staff of about 15 people—some whom were recently laid off—for over two years.
“The building is actually owned by one of our investment groups and part of our responsibly is to return money to our investors,” says Scott Bevan, senior development manager of Schuster. “In order to return in that investment, we have got to sell the property.”
The natural conclusion would be that the company invested in projects—such as Normandy Park Towne Center, a new shopping plaza—that have failed to produce the returns necessary to keep square with its financiers. (A contractor sued Schuster and Mosler Lofts last summer, claiming Schuster owed a $6.7 million unpaid bill.) But Bevan insists that’s not the case. The company routinely buys and sells properties, he says, and has upgraded the environmental rating of the headquarters building to make it more marketable. “We are not having to sell it; we just think it is a good time to,” he says. But the “time” to sell it seems terrible—real-estate values are at their lowest point in years.
“It is obviously a very difficult real estate market right now,” says Bevan. “We are experiencing the same trouble that other people in town are.”
Bevan says the company has laid off some members of its staff; however, he would not disclose how many. “[The Schuster office building] is more space than we need,” says Bevan. The company, which has been in business for 20 years, will move its remaining into rental offices, he says.
Sadly, it seems the developers hit hardest by the recession are those producing some of the most interesting buildings. Design and development firm Pb Elemental, known for beautiful, boxy homes, laid off staff in October and announced plans to sell its headquarters in February. Triad Development, which is planning the new tower and plaza across form city hall, laid off over 20 percent of its staff last December.
Hmmm. Extol the virtues of “green capitalism” then complain when the “capitalism” part bites you in the ass. Typical free market liberalism.
Interesting just doesn’t cut it.
“Sadly, it seems the developers hit hardest by the recession are those producing some of the most interesting buildings.”
That’s kind of an odd statement, isn’t it? Aside from the fact that “most interesting buildings” is such a subjective classification, do you have the numbers to back that claim up?
Hernandez @3) I wrote “it seems,” meaning that it’s my subjective opinion, which, in all cases, is legally binding.
@ 1: uh, last time I checked, the construction, commercial development and real estate markets aren’t exactly solvent right now. Perhaps that might be the reason for the problems these design and development firms are having. As someone who cares deeply about sustainable urban design, this is frustrating news.
Oh, and if we *truly* had a free market system in this country, the feds wouldn’t be bailing out our banks and auto companies (which in a roundabout way is presumably keeping your ass employed, right?).
@4 I am curious, though. Are the truly talented and forward-thinking developers and designers suffering disproportionately to the boring and repetetive developers and designers in this town? It seems (also legally binding) to me that the shit-sandwich-eating is taking place pretty evenly across the board.
@6: no, they’re not suffering disproportionately.
every housing developer is on life support and every project is at a standstill. i know some who’ve cut staff by 67%. and that’s the last time i checked in with them.
same for design firms.
no one is doing anything but entitlements.
If you look at a chart over the past 30 years of housing prices and commercial properties, you’ll see this is just a dib that we’ve been through.
And similar stories about the death of all such jobs happened back during all the previous dips too.
The end of the world is not nigh.