Real Estate
Wine Country Dreams
For urban dwellers purchasing vacation and retirement property, eastern Washington is an attractive choice. With the weather predictable and the populations manageable, it seems a prime choice to get away to—bunking up next to a vineyard just comes with the territory

What It Costs to Buy in Wine Country
Depending on the size of the property and the region in which the land is located, costs vary.

$225,000 to more than $500,000: Average cost of premium home site in the Walla Walla area

$25,000–$35,000: Premium vineyard property per acre

$14,000–$20,000: Hard construction costs per acre of land under vine

$3,000–$10,000: Monthly cost of a contracted working crew for a vineyard
Own a Movie Set
Film fanatics take note: the Lake Union houseboat used in the movie Sleepless in Seattle is for sale. Listing agent Rick Miner of Coldwell Banker Bain—originally from Hollywood with film industry connections—first suggested this floating home with big city views as a set for the 1993-released movie. At 2,720 square feet, the float for the two-story house is one of the largest on the lake. It has panoramic views of the boating action from every window, wide-open living and dining areas and library and media spaces. Inside are four bedrooms, 1.75 baths, a newly remodeled kitchen, a main-floor master suite and three upstairs bedrooms. Outside, the deck has enough space to entertain a crowd. Without Tom Hanks, it goes for $2.5 million. For more info, visit duckin.com.  —Eric Livingston
Properties in Progress
Tom Kundig, the award-winning and internationally known architect and principal at Olson Sundberg Kundig Allen Architects, and developer Ann Michelson, a 30-year resident of Capitol Hill, have teamed up to create Kundig’s first multi-family project. The 27-unit Eleven Eleven East Pike building will reflect the hill’s eclectic qualities and will have Kundig’s signature features, such as nine-foot-high ceilings, movable walls and floor-to-ceiling windows and doors. The Built Green three-star-certified building is targeted for completion in fall 2008 and…. Skyline at First Hill, located at Eighth and Columbia, will be a 26-floor upscale independent retirement community. Amenities include a fitness center, pool, library, lounge areas, an auditorium and parking garage, plus assisted living, skilled nursing and a memory center. Skyline will have 199 apartments and penthouses, 178 of which are currently reserved. Anticipated completion is spring 2009. —Eric Livingston
Three Things You Should Know About 360 Modern

As the founder of 360 Modern, Richard Corff saw the potential for creating a real estate company that specializes in modern residential real estate. “At 360 Modern, our passion is for midcentury-modern homes (most built between the 1940s and 1970s) and the contemporary modern homes being built today,” Corff says. “There are lots of folks who share our passion; our business has remained strong while most sectors of real estate have slowed significantly.” Here are three things he thinks you should know:

1. “The current real estate market is indeed a buyers’ market, and we see people taking their time to be more thoughtful about their purchases. I use a term borrowed from the financial industry: ‘flight to quality,’ meaning when things get scary, people look for more solid investments. Buyers become particular and gravitate toward great architecture. Great architecture is timeless. As cultural trends have shifted to a stronger design aesthetic, modern architecture has become more attractive. Combine this with location, as many modern homes are near metropolitan areas, and we can see why the modern residential market in our region remains strong in spite of the national trend and the slowdown in other market segments locally.”

2. “To help our clients find their ideal modern home, we have built and maintained an award-winning Web site for buyers, sellers and interested parties with a worldwide reach. Within 360modern.com, we have also developed a proprietary database of modern homes throughout the region and have information on other real estate professionals around the United States and beyond who specialize in modern homes. While we understand the value of technology, we also understand its limitations, and we know that ultimately real estate is about the client. Over time we have developed a reputation for objectivity, and this is of great benefit to our clients.”

3.“Ultimately, 360 Modern is a network of authorized agents from top-tier brokerages who have excellent professional skills, who understand and embrace the 360 Modern aesthetic, and who are based throughout the region, because real estate is still about location, location, location. Our authorized agents are not only experienced, they also live in modern homes, belong to modernist preservation groups, work with modernist developers and mingle with others interested in modernism.” —As told to Michelle Feder

Jayne Cain will soon be living the wine-country dream. In 2007 she and her husband, John, bought retirement property near Benton City, about five miles west of the prestigious Red Mountain American Viticultural Region known for producing powerful red wines. Everett residents, they love the relaxed pace of life they find in the Yakima Valley when they visit on weekends and holidays.

The Cains exemplify a growing trend. An increasing number of Seattle-area residents are buying property east of the Cascades for retirement, vacations or weekend escapes and to enjoy the beauty of surrounding vineyards. Few places are better than Washington state to take advantage of the benefits of living in wine country.

“We traveled to Napa and Sonoma and liked it there, but we knew it was out of our price range,” Jayne says. “The next best thing, and closer to our friends and family—and certainly more affordable, is eastern Washington.” Their 9.6-acre property includes a small house, but they plan to raze it and build their dream home, big enough for family and friends to visit, by 2010. This year they will build a barn structure to hold recently purchased farming equipment and a large apartment for them to live in during the house’s construction. Preliminary plans for the dream home include a farmhouse-style exterior, two porches, a large outdoor cooking area and, of course, a wine cellar. Several of the couple’s friends and co-workers, some of them Boeing employees, are also buying land in wine country in anticipation of retirement.

Not only do the Cains have enough land to build the house they always wanted, they also have room to plant vines and grow wine grapes in the future. Jayne works for the Washington Wine Commission, and both she and John are longtime wine enthusiasts. With their knowledge of the industry, the Cains wisely decided to settle into the property before making major agricultural decisions and to ask for professional input before planting a vineyard. A lucky phone call brought Jayne in contact with Christophe Hedges.

“I believe premium wine ground has experienced one of the highest appreciation rates for any of our real estate segments over the last five years.” —Doug Simcock

Aside from his day job as part owner of Hedges Family Estate—one of the oldest and most prestigious wineries in Washington—Hedges runs Magdalena Vineyard, LLC, providing expert consultation to potential vineyard owners like the Cains. Hedges is currently working on several projects, one for a Kirkland couple who bought five acres on Red Mountain, another for a Seattle couple who are planning a move to wine country in the near future, and a third with friends who live in Wallingford but have just finished their first planting on property they own in eastern Washington. Hedges consults with property owners like these to choose acreage and help them decide which varietals to plant based on soil and climate conditions.

“People see the land and the lifestyle over here and say, ‘This is paradise—why can’t I have that?’ ” he says, about the growing trend of urban western Washington residents moving to wine country. “Baby boomers are aging and want to put their money into something—a little vineyard is perfect.” If the land is arable, planting vines is an ideal way to raise property value, as vines add an element of attractiveness to the property as well as the potential for added income once they come into production.

Although living in wine country is undoubtedly idyllic, growing grapes can be expensive. Vineyard property can cost $14,000–$20,000 per acre in hard construction costs, and a contracted working crew (for planting, trimming vines, general maintenance, etc.)—necessary for the first year—may run $3,000–$10,000 per month, depending on the size of the property and the density of planting. While Hedges suggests his clients buy their own farming equipment, a compact tractor alone costs more than $10,000. These costs are essential to consider before buying any size property with an aim to grow wine grapes. “It’s beneficial to do a professional job right at the beginning,” Hedges notes, thereby saving a lot of time and expense in the future.

When shopping for property, look for acreage with a solid structure and a well. A water supply already established on the property can save the owner more than $70,000 when starting a vineyard, and a preexisting structure will help keep start-up costs down. “Remember that the folks selling this land bought it dirt cheap,” Hedges notes, “and now they’re selling it with a high markup. Just the same, Seattle residents are thrilled with the prices. Everyone is happy.”

With the growing popularity and prestige of Washington wines come increasing property values in wine country—proving the land to be a good investment. In the fourth quarter of 2007, median property values in King County were down by 0.2 percent. Values in Benton County, however, which includes many Yakima Valley wineries, increased by 14 percent and those in Walla Walla County, another center of wine production, were up by 15.2 percent, according to the Washington State University Center for Real Estate Research.

Doug Simcock, owner of Windermere Real Estate in Walla Walla, agrees that property values are going up as Washington gains a reputation for producing exceptional wine. “I believe premium wine ground has experienced one of the highest appreciation rates for any of our real estate segments over the last five years,” Simcock says. A few years ago, premium vineyard land cost about $15,000 per acre; it currently falls in the range of $25,000–$35,000 per acre. “As Walla Walla’s reputation for fine wine grows, I expect this to continue,” Simcock adds.