SF tower settlement 25

[epoxybot]

Tentative $500Million settlement in the Millennium Tower Debacle.
Sf Chronicle Link
NBC Bay Area Link

 

[epoxybot]

According to the Permit Tracking system accessed via the SF Assessor's Property Map, the San Francisco Dept of Building Inspection (SFDBI) has approved the 3 permits for the Millennium Tower Foundation ~Upgrade~.

SFDBI approved the plans on Dec. 17, 2019, followed by the SF Dept. of Public Works, who control the sidewalk & street.

Unknown is whether the SF Board of Supervisors must approve a resolution allowing the Millennium Tower permanent use of the land 10 feet below the sidewalk, running the length of the tower on Fremont & Mission streets. .

 

[epoxybot]

There was a lot of excitement expressed by the media about the $500 million tentative settlement for the tilting & sinking of tower at 301 Mission but like most class action lawsuits, nowhere near that much will make it into the hands of the victims. The $500 million is, it seems a high estimate, with $100 million being the starting point for the current repair scheme. As far as compensation to the condo owners, that figure is a more diminutive Settlement Fund of $29,844,000. The estimated Net Settlement Amount to be distributed to Class Members is approximately $26,200,000. The difference being legal fees, expenses and $7,500 dollar awards to the 3 Class representatives.

Condo owners who purchased units after May 10, 2016 and are eligible, will each receive a flat $10,000 from the settlement. The remaining funds will be distributed to the remaining majority of owners, proportionate to the price they paid for their condo.

Looking back, there were condo owners in 2012, listing their units for as high as 20% over what they had paid for their condo. Once news was out that the Millennium Tower had settlement issues, banks stopped lending on mortgages for 301 Mission, until Simpson, Gumpertz & Heger issued their Seismic Safety Report. Obviously, those units listed back in 2012 had, had some upgrades done but since 2016, it can be fairly said that the condos at Millennium Tower have sat on the sidelines, while the rest of residential property owners in the Bay Area, San Francisco & neighboring high-rise condominiums have enjoyed considerable appreciation in their property's value.

There are units that have sold for less than what they were originally purchased. Currently, a lower floor 1 bedroom, one bath, 789SF unit sells for about $900K. It would have originally sold for about $765K. No matter how one slices the $26,200,000 in settlement funds, it will never make up for the lost appreciation in property value. Add to this the prospect of at least 2 years of major construction, in addition to the many years of construction that took place with the Transbay Terminal, the Transbay Tower and across Mission Street at 350 Mission. How can the condo owners be satisfied?

The Settlement

 

[EZBuilding]

Dont worry epoxybot, at least someone came out ahead.

The Settlement Fund will also pay all attorneys’ fees and expenses of $3,625,000 ($3 million attorneys’ fee and $625,000 expenses), awarded to Class Counsel (which includes all Class Action Settlement Administrator’s fees and expenses, which will not exceed $95,000)

 

[epoxybot]

Dont worry epoxybot, at least someone came out ahead.

The Class attorney's fees seem reasonable when you find out that the TJPA has spent $18 million defending itself.

 

[Tomfh]

Currently, a lower floor 1 bedroom, one bath, 789SF unit sells for about $900K. It would have originally sold for about $765K.

That's amazing they're holding their value so well.

 

[1503-44]

I so, so, so much want to buy a 1 bdrm apt for a $million bucks. Not! LOL!

They are only "holding their value" if there has been a recent sale at that price, which I kind of doubt, or are rich people really that stupid. Let me think about that... OK, maybe like they were bought with black play money by smugglers foreign investors that need to hold on to it just long enough to clean it up, and dump it at a 50% discount tax loss later. Geez, where could I have gotten an idea like that?

“What I told you was true ... from a certain point of view.” - Obi-Wan Kenobi, "Return of the Jedi"

 

[RVAmeche]

I mean, it's still San Francisco. It's not like you're going to get any apartment for cheap in that city, and even if the building is leaning the building was supposed to be high dollar.

 

[epoxybot]

even if the building is leaning the building was supposed to be high dollar

Aah! But the bitterness goes on..., HOA fees are over $1500/mo and the SF Real Estate Market has overheated. Appreciation has dropped to 2% now.

 

[zeusfaber]

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