SF luxury Millennium Tower penthouse sells for $9M, millions less than original asking price

Yahoo

28-01-2025

The Brief
A penthouse in the Millennium Tower has sold for $9M.
The sale marked the highest resale of a downtown condo since 2018.
The condo was listed for $14M back when it initially went on the market in 2023.
SAN FRANCISCO - A lavish penthouse in the once-sinking Millennium Tower in San Francisco recently sold for $9 million, the highest resale of a downtown condo since 2018, according to the selling agent. But the sale was also significantly lower than the initial $14 million asking price when it went on the market in 2023.
What we know
The impressive 5,000-square-foot, 2-bedroom, 2.5 bathroom unit known as the "Grand Penthouse" sits on the 60th floor of the luxury high-rise located at 301 Mission Street.
"People that are in the know, know what the building is," selling agent Gregg Lynn with Sotheby's International Realty told KTVU. "It's one of the most dramatic condominiums in all of downtown San Francisco with the best views."
The backstory
The beleaguered, luxury skyscraper received a lot of publicity after major concerns arose in 2016 when engineers deemed the skyscraper was tilting and sinking.
It dropped roughly a foot-and-a-half and tilted 14 inches. At one point, the building reportedly sank one inch in one week.
Millennium Tower said that as of July 2023, the structural issues had been resolved.
A spokesperson told KTVU the voluntary seismic upgrade and foundation stabilization were found to be code-compliant and approved by the San Francisco Department of Building Inspection.
What they're saying
Speculation that the property sold for millions less than the original asking price due to its past structural problems was strongly disputed by Lynn.
"This sale at $9 million is the highest resale of a condo since 2018," he said. "How could anybody hear that and not be impressed by that?"
The realtor said the sale is actually a harbinger of good news for the area, representing a remarkable turnaround in downtown San Francisco, from a decline triggered by the COVID-19 pandemic.
"It's a reflection of the downtown revitalization actually coming to fruition," Lynn said. "It's all happening. Try and get lunch anywhere downtown right now on weekdays between 12 and 1:00. Every restaurant is packed. There's a line at every sushi store."
Dig deeper
Lynn said that the property was purchased in 2016 for $13 million.
It was listed in May 2023 and remained on the market through part of last year.
"There was a lot of interest, but no offers," Lynn said. "So it was taken off the market for a period of time before it sold privately last fall. It just closed escrow on the 15th. Multiple offers were received."
The luxury real estate expert also stressed another indicator signaling a rebound.
"As the buyers secured a $5 million loan, it marks the return of mortgages to Millennium Tower, which have not been available for many years," Lynn explained.
In recent years, the downtown area has been plagued with vacant storefronts with many businesses closing shop and leaving. Retailers have pointed to theft and other crime as a driving factor.
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Residential property values have also declined. Lynn attributed that largely to the pandemic.
"Since 2016, most condos downtown decreased in value because of Covid. That should be no surprise," he said.
What's next
Millennium noted that the tower would continue to undergo ten years of monitoring.
Findings from its ongoing surveys showed that the building's tilt has been stabilized and begun to reverse. The correction was expected to continue over the next 40 years, property officials said.
Lynn said currently there are seven publicly listed homes for sale at Millennium Tower.
The listings show they range from $650K for a 3-bedroom, 3-bath unit to about $5 million for another penthouse.
Lynn expressed excitement over a resurgence of the downtown area.
"It's extraordinary," he said. "We're coming back!"