The group originally had planned to build a $75-million, 16-story senior housing facility at that intersection on Seattle's first Hill. But the Missionary Sisters have scrapped that project due to a lack of interest from would be residents. Their deposits would have helped finance the venture, along with the Missionary Sisters and a private investment bank.
Potential residents were expected to pay a 10 percent deposit on the 128 apartment homes ranging from $250,000 to $650,000. The remainder would be paid once they took up residence. The marketing process for the project started about a year and half ago.
"The timing of our project couldn't have been worse," says Lisa Keller, executive director of The Perry. "The economic downturn was certainly a factor. Some of the seniors who we were marketing to were in areas where their housing values went down. My guess is they decided to stick it out to see if the value would go back up before they actually sold."
Residents would not have actually owned the apartments at The Perry. Any time a resident decided to move elsewhere, 90 percent of the cost of the apartment would be returned. Alternatively, following a resident's death, the money could be refunded to relatives or the resident's estate.
This type of entrance fee financing is not unusual in senior housing, but Missionary Sisters have said it was the first project of its kind in the Seattle area.
The Missionary Sisters have owned the property, the former Perry Hotel, since 1909. The board now is contemplating whether to sell the property or plan another project.
"The location is prime," Keller says. "We're looking at all the options available to us and what will be the highest and best use of the land."
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