French American School of Puget Sound

FRENCH AMERICAN SCHOOL OF PUGET SOUND

REAL ESTATE BROKERAGE PROPOSAL Presented by Lori Holden Scott

QUALIFICATIONS I am delighted to share a bit about my background and our proposed brokerage team for the disposition of the French American School property on Mercer Island.

My name is Lori Holden Scott, and I’ve had the pleasure of growing up on the island and calling Mercer Island home. My journey in real estate began in 1989 when I joined John L. Scott Real Estate, and since then, I’ve been fully dedicated to serving the community that I love.

My career began by working closely with builders and participating in land and new construction home sales, primarily in the then, mostly undeveloped neighborhoods of the East Lake Sammamish Plateau and South Bellevue Lakemont/Montreux neighborhoods. Collaborating with prominent builders like The Murray Franklin Company, John Day Homes, Bill and John Buchan, Chaffey Development and others, provided me with invaluable experience in navigating the intricacies of property development and new construction sales.

In 1991, I made the transition to the Mercer Island office, where I’ve been focused on serving the real estate needs of this community ever since. Over the years, I’ve had the privilege of partnering with RKK Construction, a trusted builder with over four decades of experience.

Our collaboration has lasted over 25 years and has been incredibly rewarding, with a shared commitment to crafting custom, high-quality properties that truly reflect the essence of Mercer Island living.

My expertise extends across a wide spectrum of projects on the Island, from individual home builds to multi-lot plats. I take pride in my ability to identify prime properties, whether they’re individual lots, tear-down properties, or multi-lot plats, and to guide my clients through every step of the process with care and precision.

With me at the helm, and supported by a dedicated brokerage team, I’m confident that we have the knowledge, experience, and strategic approach needed to ensure a successful sale of the French American School property. Our deep understanding of the local market dynamics, coupled with our proactive negotiation tactics and targeted marketing strategies, positions us perfectly to achieve the best possible outcome for all parties involved.

I’m genuinely excited about the opportunity to collaborate on this project and to leverage our collective expertise to deliver exceptional results. and work together to make this venture a resounding success.

LOCAL MARKET EXPERTISE Over the course of my career, I’ve had the privilege of gaining in-depth knowledge and experience within both the greater regional market and the unique characteristics of Mercer Island’s sub-market. From working with first-time homebuyers to handling multimillion-dollar waterfront estates, my journey has been rich with diverse transactions that span the spectrum of real estate.

My expertise extends across various facets of the industry, including land sales, new construction projects, condominiums, short sales, and navigating complex legal processes such as bankruptcy court and foreclosure sales. While Mercer Island holds is where I consider myself a specialist, I’ve also cultivated a broad understanding of markets extending from Bellingham in the north to Tacoma in the south.

One area where I’ve particularly excelled is in securing new construction teardown opportunities and vacant land acquisitions, especially on Mercer Island. This niche has allowed me to contribute significantly to the development and transformation of properties on the island.

Throughout my career, I’ve consistently ranked among the top performers within my brokerage, consistently placing in the top 10% for nearly two decades. During the last 8 years, I’m proud to say that I’ve achieved the distinction of being in the top 1% of brokers in my company, a testament to my dedication, expertise, and unwavering commitment to delivering exceptional results for my clients.

My deep-rooted knowledge of both the local Mercer Island market and the broader regional landscape, combined with my track record of success, positions me as a trusted advisor and ally for anyone looking to navigate the complexities of real estate transactions in this dynamic and ever-changing environment.

MERCER ISLAND EXPERTISE My perspective on the Mercer Island real estate market is deeply influenced by current market conditions and its strategic location.

Since 2019, we’ve seen an unusually limited inventory on Mercer Island, with fewer properties available for sale compared to previous years.

Historically, the average inventory would hover around 100 singlefamily homes, but 2020-2023 we were less than half of that number and January 2024 to date, we haven’t seen more than 20 homes on the market at any one time.

This scarcity of available properties has significant implications for our disposition strategy. Mercer Island’s central location in Lake Washington, which provides an easy commute to both Seattle and Bellevue, coupled with Amazon’s ongoing expansion in Bellevue, has heightened the appeal of the island. The lure of being strategically located between these major cities, combined with limited inventory and almost no new construction on the horizon, creates a unique market condition.

STRATEGY To maximize the value of the disposition of the French American School property on Mercer Island, I recommend a strategic approach tailored to market dynamics and local builder preferences. Here’s a detailed strategy in bullet points: •

Subdivide the Property: Utilize the current configuration of tax parcels to create multiple lots and listings, rather than just one large parcel. This division can target a diverse range of small to medium-sized builders, making the property accessible and attractive for development projects that typically cater to the local market’s preference for smaller, high-quality builds.

•

Target Local Builders: In addition to making the larger production builders in the area aware of the property, I would suggest splitting the property into the several tax parcels that are already in place. By doing so, a greater number of builders would potentially purchase, and I would predict a quicker marketing and closing time. On Mercer Island, we cater to local builders who traditionally build less than 5 homes per year. This approach encourages competitive bidding among builders who are well-suited to handle smaller, boutique projects that are highly sought after on the island.

•

Leverage Low Inventory: I would need to tour the 2 homes that are currently rented and located on 40th for livability and potential purchase price, but if they are viable as a home that is saleable, take advantage of the scarcity of available homes on Mercer Island and garner a higher value for those properties than would be possible in a vacant lot offering. With fewer than 20 homes on the market and only three priced under $2 million dollars, there’s a heightened potential for premium pricing on these “starter” homes, making these parcels especially attractive.

•

Engage with City Planners: Given some newer zoning challenges on the island and the specific requirements for setbacks, street width, and emergency vehicle access, I feel 9-10 lots on this property may be an ambitious amount. The “math” works but in my past experience, the city will have requirements that extend beyond dividing the total square footage by the zoning there.

•

Adjust Lot Sizes: Where feasible, propose adjustments to lot sizes to meet the ‘magic mix’ of home features that are most in demand—homes that offer 3500-3800 square feet of space on lots exceeding 10,000 square feet. This adjustment not only meets market demand but also aligns with the premium lifestyle that Mercer Island is known for.

•

Strategic Marketing: Position each parcel not just on the merits of location and potential development, but also on the unique opportunity they represent in a market constrained by low supply. This would involve tailored marketing strategies that speak directly to the needs and aspirations of potential buyers and builders familiar with the Mercer Island community.

MARKETING OVERVIEW I’m excited to discuss our creative approach to marketing the sale of your property. Here’s how I plan to utilize a range of tools and resources to ensure maximum exposure and engagement: 1. Traditional Real Estate Methods: We’ll leverage tried-and-true methods such as pointer signs, property signage, and listings in the Multiple Listing Service (MLS) to reach local buyers and brokers. Additionally, hosting open houses and broker opens

will provide opportunities for in-person engagement and networking within the local real estate community. In the past, we’ve orchestrated memorable events to launch new builds or properties, featuring attractions like food trucks, latte carts, pizza ovens, and live entertainment. These events, open to both the brokerage community and the public, not only generated excitement but also fostered connections and engagement, creating an exciting atmosphere and opportunity to showcase the property.

2. Digital Marketing Strategies: Drawing on my background in advertising and our commitment to creativity, we’ll employ targeted social media ad placements to reach potential buyers beyond traditional channels. Custom websites dedicated to showcasing the property’s features and value proposition will provide a visually compelling and informative online experience. We’ll also utilize video tours, drone footage, and Matterport walkthrough tours to immerse prospective buyers in the property’s potential, even if they can’t visit in person. In addition, we will have the opportunity to highlight the lifestyle and benefits of living on Mercer Island, from its beautiful natural surroundings and vibrant community to its convenient access to both the city of Seattle and Bellevue as well as our top-rated schools (FAS included!) informing prospective buyers of all the benefits that come with living on Mercer Island.

3. Comprehensive Approach: Using a “fishing” analogy, we believe in “putting many poles in the water” to maximize our chances of success. We are never sure which pole will catch that elusive fish but by combining traditional and digital marketing methods, we cast a wide net to capture the attention of diverse audiences. This approach allows us to adapt to the evolving preferences and behaviors of today’s buyers, ensuring that we reach them wherever they are in their property search journey.

4. Analytics and Optimization: To measure the effectiveness of our marketing efforts and optimize our strategy over time, we’ll leverage analytics tools to track key metrics such as website traffic, social media engagement, and lead generation. By analyzing this data, we can identify which marketing channels and tactics are driving the most meaningful results and allocate our resources accordingly. In essence, our approach to marketing your property combines creativity, innovation, and a commitment to utilizing a diverse array of tools and resources.

By embracing both traditional and digital methods, we’re able to maximize exposure while also providing an immersive and engaging experience for prospective buyers.

•

Consider commissioning an entry monument into the neighborhood to create a memorable first impression and enhance curb appeal.

2. Visual Marketing Materials: •

Initiate the marketing process with high-quality pictures and video footage to showcase the property’s beauty and potential.

•

Install signage and pointer signs on-site to attract attention and provide directional guidance to interested parties.

3. Printed Marketing Collateral: •

Develop printed marketing materials, including informational flyers on the property site and a detailed booklet that can be mailed to prospective buyers.

•

Ensure that the printed materials highlight key selling points, amenities, and lifestyle offerings of Mercer Island.

PROCESS AND TIMELINE To better ensure a successful process within our anticipated timeline, I would suggest the property be surveyed and staked prior to listing.

This step is crucial for accurately delineating property boundaries and providing potential buyers with a clear understanding of the land they’re considering. Additionally, I would greatly appreciate access to all records pertaining to the parcels, including topography reports, geotechnical reports, architectural studies, and any other relevant documentation. Having access to this information will enable me to present the property in the best possible light and address any inquiries from interested parties promptly and thoroughly.

Here’s an overview of my anticipated process for generating interest and subsequent offers for the property, along with some brainstormed ideas for naming the new neighborhood: 1. Neighborhood Naming and Branding: •

Brainstorm names that capture the essence of the community and its unique attributes, fostering a sense of identity and belonging.

4. Property Website Development: •

Create a dedicated property website with comprehensive information about the individual lots and the lifestyle on Mercer Island.

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Incorporate visually appealing design elements, interactive features, and virtual tours to engage visitors and encourage exploration.

5. Outreach to Builders: •

Reach out to a curated list of builders through the Master Builders Association, targeting both large-scale developers and those with a history of building on Mercer Island.

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Invite builders to exclusive events tailored to their interests and needs, such as property tours and informational sessions.

6. Brokerage and Community Events: •

•

Host an event for the brokerage community to introduce them to the property and provide insights into its potential value.

Organize another event specifically for builders to tour the property, network with fellow industry professionals, and discuss potential development opportunities.

7. Local Advertising: •

Advertise in the local paper, the Mercer Island Reporter, to inform the community about the upcoming new neighborhood and generate local interest.

By implementing these strategies in a coordinated and strategic manner, we can effectively generate interest and attract qualified buyers to the property.

PROPOSED FEE AND COMMISSION STRUCTURE For the proposed listing broker’s fee structure, I suggest a fee of 2% for both individual parcel transactions and single property disposition.

For the buying broker’s fee structure, I recommend a fee of 2.5% for individual parcel transactions and 2% for a single property disposition.

In the event of a sale to either FASPS, SJCC, American Classic Homes, or any other excluded party, we can negotiate a fair and equitable compensation package that reflects the time and effort invested.

At this stage I don’t have a sense of what you would require from me as far as time and effort so unfortunately I can’t offer compensation suggestion.

Proposed Marketing Budget Breakdown: 1. Photography and Videography: •

High-quality photography and videography are essential for creating visually compelling marketing collateral.

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Budget allocation: $5,000

2. Graphic Design and Marketing Collateral: •

Designing custom brochures, flyers, digital ads, and other promotional materials to showcase the property’s unique features.

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Budget allocation: $3,000

3. Digital Marketing Campaign: •

Targeted social media advertising, search engine optimization, and online listings to maximize exposure and reach prospective buyers.

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Budget allocation: $3,000

4. Event Planning and Execution: •

Organizing showcase events, open houses, and broker opens to engage with potential buyers and facilitate networking opportunities.

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Budget allocation: $4,000

Total Proposed Marketing Budget: $15,000

APPENDIX AND SAMPLE MATERIALS

A MESSAGE FROM LORI To learn more about Lori’s extensive market knowledge and experience, please visit the team site here.

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LUXURY HOUSING UPDATE Resale Only - MAY 2024 (APRIL RECAP)

MERCER ISLAND MARKET HIGHLIGHTS On Mercer Island, there is a severe shortage of luxury inventory as we enter May. The Mercer Island market remains extremely competitive as 80% of new listings sold in the first 30 days.

New Listings

Pending Listings

Active Listings Remaining

Months Supply

32

28

15

0.5

Price Range

April New Resale Listing

April Resale Pending

May 1st Active Resale Listing

Months Supply (Pending)

Months Resale Supply

(March List) % Pending 1st 30 Days

March Sales Activity Intensity™

0 - 1M

2

3

2

0.7

Severe Shortage

50.0%

Very Strong

1M - 1.5M

2

0

2

0.0

Severe Shortage

100.0%

Extreme Frenzy

1.5M - 2M

8

7

1

0.1

Severe Shortage

100.0%

Extreme Frenzy

2M - 3M

15

15

5

0.3

Severe Shortage

75.0%

Extreme Frenzy

3M - 5M

1

1

0

0.0

Severe Shortage

100.0%

Extreme Frenzy

5M +

4

2

5

2.5

Low

50.0%

Very Strong

Total Activity

32

28

15

0.5

Severe Shortage

80.0%

Extreme Frenzy

PERCENT OF NEW LISTINGS (PENDING) IN THE FIRST 30 DAYS

Below 25%

25%

35%

45%

55%

65%

75% +

SELECTIVE

HEALTHY

STRONG

VERY STRONG

SURGE

FRENZY

EXTREME FRENZY

INVENTORY

SEVERE SHORTAGE

SHORTAGE

LOW

HEALTHY

AVAILABILITY

SELECTION

MONTHS

0 - 1 Months

1 - 2 Months

2 - 3 Months

3 - 4 Months

4 - 5 Months

5+ Months

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