- After years of engineering work and $100M in repairs, Millennium Tower’s sinking and tilt have reportedly been resolved as of 2023.
- Despite the fix, condos are still reselling for an average loss of around 20%, with some units selling at more than 50% below their original purchase price.
- The building’s troubled history, coupled with a soft San Francisco condo market, continues to weigh on property values.
- The HOA has hired a PR firm and launched a media campaign to reposition the building and attract buyers, lenders, and insurers.
From Luxury Icon To Infamous High-Rise
When it opened in 2009, Millennium Tower was a symbol of ultra-luxury living in downtown San Francisco. The 58-story tower quickly sold out, attracting celebrity buyers and overseas investors. But a 2016 revelation that the building had sunk more than 16 inches and was tilting sparked years of litigation, financial losses, and reputational damage, per WSJ.
The Fix Is In—But So Are The Losses
The building’s structural stabilization, completed in 2023, involved installing 18 perimeter piles drilled down to bedrock. Engineers report that the building has stopped settling and recovered about two inches of tilt. Despite this, property values have yet to recover.
In 2024, the average resale loss for units was over 20%. A penthouse that once sold for $13M resold for just $9M this year. Other units have seen even steeper declines—one fifth-floor unit sold for a 52% loss.
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A Harder Hit Market
Even as the foundation was stabilized, the surrounding market remained shaky. Remote work and downtown San Francisco’s sluggish office market have depressed condo prices citywide, especially in neighborhoods like SoMa and Mission Bay.
The median condo price in those areas fell nearly 19% from 2019 levels, compounding the building’s recovery challenges.
Changing The Narrative
Determined to reverse course, Millennium Tower’s homeowners association launched a full-scale public relations effort. They’ve produced a short film about the engineering feat, brought in high-profile residents to promote the lifestyle, and emphasized the return of mortgage lenders like Citizens Bank.
Former HOA president Howard Dickstein acknowledged the challenge: “It was a tarnished brand… but it’s happening.”
A Glimmer Of Optimism
Some buyers are taking a chance. One new resident purchased a unit for $850K—45% below its 2016 sale price—citing renewed lender confidence and the recent $9M penthouse deal as signals of a turnaround.
As financing options slowly return and the building’s image improves, owners and brokers hope that Millennium Tower might finally rise again—at least in reputation and resale value.
Why It Matters
Millennium Tower is a cautionary tale of high-end urban development gone wrong—but also a potential comeback story. The outcome could shape how future buyers, lenders, and developers assess risk and resilience in branded luxury real estate.
What’s Next
The building will continue to be monitored for settlement over the next eight years. Meanwhile, the HOA hopes improving sentiment and reduced insurance rates will help close the gap between perceived and real value.
