Kevin Truong

San Francisco Chronicle owner Hearst Corp. is purchasing a downtown office tower and plans to relocate the staff of the 160-year-old newspaper to the new property.&nbsp;

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<p>San Francisco Chronicle owner Hearst Corp. is purchasing a downtown office tower and plans to relocate the staff of the 160-year-old newspaper to the new property.&nbsp;</p>

Hearst is in contract to buy 450 Sansome St. and aims to close the deal next month, according to Marty Cepkauskas, senior director of real estate for the company. He declined to disclose the sale price.

<p>Hearst is in contract to buy 450 Sansome St. and aims to close the deal next month, according to Marty Cepkauskas, senior director of real estate for the company. He declined to disclose the sale price.</p>

The temporary relocation of the Chronicle, as well as Hearst-owned SFGate, to the Financial District building near Jackson Square, is intended to accelerate a $1 billion mixed-use development known as 5M at the corner of 5th and Natoma, first pitched as a partnership between Hearst and Forest City Realty Trust.&nbsp;

<p>The temporary relocation of the Chronicle, as well as Hearst-owned SFGate, to the Financial District building near Jackson Square, is intended to accelerate a $1 billion mixed-use development known as 5M at the corner of 5th and Natoma, first pitched as a partnership between Hearst and Forest City Realty Trust.&nbsp;</p>

The building at 450 Sansome is “in a desirable neighborhood, fits our needs from an investment perspective, and provides the flexibility to jumpstart the 5M residential component,” Cepkauskas said.

<p>The building at 450 Sansome is “in a desirable neighborhood, fits our needs from an investment perspective, and provides the flexibility to jumpstart the 5M residential component,” Cepkauskas said.</p>

Hearst and Ohio-based Forest City first pitched 5M in 2008. The project was eventually inherited by Brookfield Properties, which managed the development of a 302-unit residential tower at 434 Minna and the largely vacant 25-story office tower at 415 Natoma and Mary Court Park.

<p>Hearst and Ohio-based Forest City first pitched 5M in 2008. The project was eventually inherited by Brookfield Properties, which managed the development of a 302-unit residential tower at 434 Minna and the largely vacant 25-story office tower at 415 Natoma and Mary Court Park.</p>

SF’s next real estate wave is starting to take shape

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The final component of the project, which will feature a 400-unit condo tower, is controlled by Hearst and includes the partial demolition of the Examiner building at 110 Fifth St. Plans were paused in 2023 amid a real estate slowdown, but Cepkauskas said talks resumed last year as City Hall looked to <a href="https://sfstandard.com/2024/09/15/sf-is-cutting-deals-to-unfreeze-housing-but-developers-have-to-do-their-part-too/">restart stalled projects</a>.&nbsp;

The city is cutting deals to unfreeze housing. Will developers step up?

<p>The final component of the project, which will feature a 400-unit condo tower, is controlled by Hearst and includes the partial demolition of the Examiner building at 110 Fifth St. Plans were paused in 2023 amid a real estate slowdown, but Cepkauskas said talks resumed last year as City Hall looked to <a href="https://sfstandard.com/2024/09/15/sf-is-cutting-deals-to-unfreeze-housing-but-developers-have-to-do-their-part-too/">restart stalled projects</a>.&nbsp;</p>

The Chronicle’s current complex at Fifth and Mission Streets comprises two buildings connected by a sky bridge over Minna Street. The main newsroom is at 901 Mission St. and an adjacent property at 110 Fifth St. known as the Examiner building.&nbsp;

<p>The Chronicle’s current complex at Fifth and Mission Streets comprises two buildings connected by a sky bridge over Minna Street. The main newsroom is at 901 Mission St. and an adjacent property at 110 Fifth St. known as the Examiner building.&nbsp;</p>

The Examiner building was built during a three-decade joint operating agreement between the Chronicle and the Examiner that started in the 1960s. More recently, tenants included Yahoo and BuildingConnected, but those leases ended in 2023.&nbsp;

<p>The Examiner building was built during a three-decade joint operating agreement between the Chronicle and the Examiner that started in the 1960s. More recently, tenants included Yahoo and BuildingConnected, but those leases ended in 2023.&nbsp;</p>

Because of the combined electrical and HVAC systems between the two properties, demolishing one building requires the relocation of everyone in the Chronicle complex, Cepkauskas explained.&nbsp;

<p>Because of the combined electrical and HVAC systems between the two properties, demolishing one building requires the relocation of everyone in the Chronicle complex, Cepkauskas explained.&nbsp;</p>

The Chronicle complex is 70% vacant, he added, providing an opportunity to take down the Examiner building and prepare for redevelopment, which could include teaming up with a developer partner.&nbsp;&nbsp;

<p>The Chronicle complex is 70% vacant, he added, providing an opportunity to take down the Examiner building and prepare for redevelopment, which could include teaming up with a developer partner.&nbsp;&nbsp;</p>

The 135,000-square-foot building at 450 Sansome St. was last sold in 2015 for $89 million, according to property records.&nbsp;

<p>The 135,000-square-foot building at 450 Sansome St. was last sold in 2015 for $89 million, according to property records.&nbsp;</p>

“Hearst’s history goes back to the 1850s, and we believe San Francisco remains a vital market for innovation and commerce,” said Stephen T. Hearst, vice president and general manager of the Western Properties real estate division. “This acquisition reflects our belief in the city’s long-term resilience and appeal as a destination for world-class businesses.”

<p>“Hearst’s history goes back to the 1850s, and we believe San Francisco remains a vital market for innovation and commerce,” said Stephen T. Hearst, vice president and general manager of the Western Properties real estate division. “This acquisition reflects our belief in the city’s long-term resilience and appeal as a destination for world-class businesses.”</p>

Hearst buys downtown SF tower, will relocate Chronicle newsroom

Kevin V. Nguyen

When he purchased his condo unit at The Village at Petrini Place in 2010, David Polifko was making a bet on the up-and-coming Western Addition neighborhood. The area has changed, but so have his costs.&nbsp;

<p>When he purchased his condo unit at The Village at Petrini Place in 2010, David Polifko was making a bet on the up-and-coming Western Addition neighborhood. The area has changed, but so have his costs.&nbsp;</p>

In the last 15 years, Polifko’s homeowners association dues have increased from $500 to $1,100 a month, vastly outstripping inflation. On top of that, he and his neighbors had to spend $600,000 two years ago for a major renovation triggered by a new state law requiring more scrutiny on balconies. Then, as scaffolding was erected around the 134-unit complex for the repairs, the residents’ pooled home insurance policy was abruptly canceled.

<p>In the last 15 years, Polifko’s homeowners association dues have increased from $500 to $1,100 a month, vastly outstripping inflation. On top of that, he and his neighbors had to spend $600,000 two years ago for a major renovation triggered by a new state law requiring more scrutiny on balconies. Then, as scaffolding was erected around the 134-unit complex for the repairs, the residents’ pooled home insurance policy was abruptly canceled.</p>

When the HOA found coverage through an alternative provider, the quoted premium went overnight from $98,000 to $964,000, roughly $7,194 per unit. The deductible for a disaster rose from $10,000 to nearly $100,000. “All of this just eats into what you can save,” Polifko said.&nbsp;

<p>When the HOA found coverage through an alternative provider, the quoted premium went overnight from $98,000 to $964,000, roughly $7,194 per unit. The deductible for a disaster rose from $10,000 to nearly $100,000. “All of this just eats into what you can save,” Polifko said.&nbsp;</p>

Condo owners across the city are navigating a perfect storm, as high interest rates, rising construction costs, an imploding insurance market, and a growing “blacklist” of distressed properties have conspired to diminish values and make some sales seem impossible.

<p>Condo owners across the city are navigating a perfect storm, as high interest rates, rising construction costs, an imploding insurance market, and a growing “blacklist” of distressed properties have conspired to diminish values and make some sales seem impossible.</p>

real estate, balcony, condo, HOA, tenant, renter, homeowners’ association, homeowner, repairs, housing market
An exterior image of the courtyard area at The Village at Petrini Place, a condo complex in San Francisco’s NoPa neighborhood, on Wednesday, June 4, 2025. A state law mandating the inspection of balconies quietly went into effect this year, stumping some unwitting buyers and property owners who need to undertake massive renovations.

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“More and more people are questioning if they can sell their property today,” said Polifko, who serves as the HOA board president. One resident of Petrini Place, who purchased a unit for $675,000 in 2023, discovered this year that the balcony needed to be reconstructed after dark water staining appeared in January. The HOA had to pick up the $44,000 tab using its reserves.<br><br>“The condo market was already tough, and it’s not getting any easier,” Polifko said.&nbsp;

<p>“More and more people are questioning if they can sell their property today,” said Polifko, who serves as the HOA board president. One resident of Petrini Place, who purchased a unit for $675,000 in 2023, discovered this year that the balcony needed to be reconstructed after dark water staining appeared in January. The HOA had to pick up the $44,000 tab using its reserves.<br><br>“The condo market was already tough, and it’s not getting any easier,” Polifko said.&nbsp;</p>

Throughout the 2010s, condo values climbed, even as San Francisco added thousands of units to its housing stock. Then came the pandemic, which upturned the real estate markets and <a href="https://sfstandard.com/2024/06/02/san-francisco-homebuyers-find-best-deals-downtown/">left the condo category as one of the losers</a>.&nbsp;

Brand new downtown condos are selling for deep discounts—or just sitting empty

<p>Throughout the 2010s, condo values climbed, even as San Francisco added thousands of units to its housing stock. Then came the pandemic, which upturned the real estate markets and <a href="https://sfstandard.com/2024/06/02/san-francisco-homebuyers-find-best-deals-downtown/">left the condo category as one of the losers</a>.&nbsp;</p>

According to Compass data, the median value for a condo last year was down 6% from the peak in 2019. It takes nearly twice as long to sell a condo as a single-family home, the widest gap in 20 years.&nbsp;

<p>According to Compass data, the median value for a condo last year was down 6% from the peak in 2019. It takes nearly twice as long to sell a condo as a single-family home, the widest gap in 20 years.&nbsp;</p>

Median sale price for condos in San Francisco since 1993

sf-standard/datawrapper-chart

Condos take longer than houses to sell

Condos have traditionally represented a steppingstone to homeownership because of the lower price point and ability to resell for a gain.&nbsp;

<p>Condos have traditionally represented a steppingstone to homeownership because of the lower price point and ability to resell for a gain.&nbsp;</p>

But motivated buyers and sellers looking to close deals have a new roadblock to contend with: a confidential “mortgage blacklist” of some 780 condo complexes across California.&nbsp;

<p>But motivated buyers and sellers looking to close deals have a new roadblock to contend with: a confidential “mortgage blacklist” of some 780 condo complexes across California.&nbsp;</p>

The list, maintained by government-sponsored Fannie Mae and Freddie Mac, contains properties considered to have inadequate insurance or in need of crucial repairs. Dozens of buildings have been added since February, according to Boston law firm Allcock Marcus, which has access to the list.&nbsp;

<p>The list, maintained by government-sponsored Fannie Mae and Freddie Mac, contains properties considered to have inadequate insurance or in need of crucial repairs. Dozens of buildings have been added since February, according to Boston law firm Allcock Marcus, which has access to the list.&nbsp;</p>

It’s nearly impossible to secure a conventional mortgage to buy a condo in a building that is on the blacklist. This means buyers often resort to alternative loans with higher interest rates and down payments —&nbsp;and sellers lose potential buyers who are put off by those hurdles.&nbsp;

<p>It’s nearly impossible to secure a conventional mortgage to buy a condo in a building that is on the blacklist. This means buyers often resort to alternative loans with higher interest rates and down payments —&nbsp;and sellers lose potential buyers who are put off by those hurdles.&nbsp;</p>

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Allcock Marcus’ latest tally counts 19 blacklisted properties in San Francisco, encompassing nine ZIP Codes and more than 2,550 units. The firm declined to share the addresses of the properties. Reasons for inclusion on the list include insurance issues, deferred maintenance, or litigation for safety and structural soundness.&nbsp;

<p>Allcock Marcus’ latest tally counts 19 blacklisted properties in San Francisco, encompassing nine ZIP Codes and more than 2,550 units. The firm declined to share the addresses of the properties. Reasons for inclusion on the list include insurance issues, deferred maintenance, or litigation for safety and structural soundness.&nbsp;</p>

Had Petrini Place failed to find an insurer or delayed its balcony inspections, it would have been a prime candidate for the list. But the HOA’s quick action spared it, according to brokers familiar with sales at the complex this year.&nbsp;

<p>Had Petrini Place failed to find an insurer or delayed its balcony inspections, it would have been a prime candidate for the list. But the HOA’s quick action spared it, according to brokers familiar with sales at the complex this year.&nbsp;</p>

Homeowners there are in the clear for now, but they’ve got an increasingly higher price to pay for it.&nbsp;

<p>Homeowners there are in the clear for now, but they’ve got an increasingly higher price to pay for it.&nbsp;</p>


<h2 class="wp-block-heading" id="h-taking-it-year-by-year"><strong>Taking it year by year</strong></h2>


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<h2 class="wp-block-heading" id="h-taking-it-year-by-year"><strong>Taking it year by year</strong></h2>

A 2015 balcony collapse in Berkeley, which led to the death of 13 Irish exchange students, inspired <a href="https://leginfo.legislature.ca.gov/faces/billVotesClient.xhtml?bill_id=201920200SB326">SB 326</a>, a state law mandating safety inspections.

<p>A 2015 balcony collapse in Berkeley, which led to the death of 13 Irish exchange students, inspired <a href="https://leginfo.legislature.ca.gov/faces/billVotesClient.xhtml?bill_id=201920200SB326">SB 326</a>, a state law mandating safety inspections.</p>

The 2019 legislation requires any building with three or more units that have balconies “supported substantially” by wood to be inspected for damage. If a building is not greenlit by state inspectors by the end of this year, then lenders will not legally be allowed to provide new mortgages for units in the property.&nbsp;

<p>The 2019 legislation requires any building with three or more units that have balconies “supported substantially” by wood to be inspected for damage. If a building is not greenlit by state inspectors by the end of this year, then lenders will not legally be allowed to provide new mortgages for units in the property.&nbsp;</p>

It is not clear if there is a state-run database that tracks compliance. Two balcony inspection companies told The Standard they flag life-threatening damage to public officials for immediate fixes; otherwise, they document their assessments and provide them to the HOA.

<p>It is not clear if there is a state-run database that tracks compliance. Two balcony inspection companies told The Standard they flag life-threatening damage to public officials for immediate fixes; otherwise, they document their assessments and provide them to the HOA.</p>

real estate, balcony, condo, HOA, tenant, renter, homeowners’ association, homeowner, repairs, housing market
A balcony undergoing repairs at The Village at Petrini Place, a condo complex in San Francisco’s NoPa neighborhood, on Wednesday, June 4, 2025. A state law mandating the inspection of balconies quietly went into effect this year, stumping some unwitting buyers and property owners who need to undertake massive renovations.

When buyers apply for a home loan, underwriters must confirm that lender and state requirements are met before the mortgage can be processed. A borrower might be preapproved for a loan and have an offer accepted by the seller, but a deal could be held up if the property is found to be not in compliance with SB 326.&nbsp;

<p>When buyers apply for a home loan, underwriters must confirm that lender and state requirements are met before the mortgage can be processed. A borrower might be preapproved for a loan and have an offer accepted by the seller, but a deal could be held up if the property is found to be not in compliance with SB 326.&nbsp;</p>

In the case of Petrini Place, the HOA opted to bundle the balcony inspections with other necessary capital projects —&nbsp;like repainting the 23-year-old property, waterproofing the windows, and fixing gutters and downspouts —&nbsp;since expensive scaffolding would have to be erected anyway.&nbsp;&nbsp;

<p>In the case of Petrini Place, the HOA opted to bundle the balcony inspections with other necessary capital projects —&nbsp;like repainting the 23-year-old property, waterproofing the windows, and fixing gutters and downspouts —&nbsp;since expensive scaffolding would have to be erected anyway.&nbsp;&nbsp;</p>

Of the 134 balconies inspected at Petrini, engineers opened 27 to look for rot or decay. Of those, five required total reconstruction. In 2023, the HOA was quoted $25,000 for each repair, Polifko said. Two years later, when another balcony required reconstruction, the HOA was quoted $44,000 for the job, including the cost of new scaffolding.

<p>Of the 134 balconies inspected at Petrini, engineers opened 27 to look for rot or decay. Of those, five required total reconstruction. In 2023, the HOA was quoted $25,000 for each repair, Polifko said. Two years later, when another balcony required reconstruction, the HOA was quoted $44,000 for the job, including the cost of new scaffolding.</p>

“People have definitely lost their appetite for the HOA,” Polifko said of the community’s recent spending. “Which means the onus is on the board to make sure that money is spent well.”&nbsp;

<p>“People have definitely lost their appetite for the HOA,” Polifko said of the community’s recent spending. “Which means the onus is on the board to make sure that money is spent well.”&nbsp;</p>

San Francisco condo appreciation rate by year

San Francisco's largest condo markets

Even with these costs, the condo owners at Petrini Place received what could be considered a reprieve in the current insurance market. Their insurance broker, Michael Miller, shopped the property to providers in an attempt to get a discount on the $964,000 premium quote they received from Lloyd’s of London in 2024.

<p>Even with these costs, the condo owners at Petrini Place received what could be considered a reprieve in the current insurance market. Their insurance broker, Michael Miller, shopped the property to providers in an attempt to get a discount on the $964,000 premium quote they received from Lloyd’s of London in 2024.</p>

He found a way to reduce that cost to $602,000 by utilizing the state’s FAIR plan to cover the first $20 million of the policy and piecemealing together three other providers to <a href="https://thevillageatpetriniplace.com/wp-content/uploads/2024/12/petrini-place-summary-of-insurance-24.pdf">split the remaining liability</a>, in what’s known as “wraparound” coverage.&nbsp;

<p>He found a way to reduce that cost to $602,000 by utilizing the state’s FAIR plan to cover the first $20 million of the policy and piecemealing together three other providers to <a href="https://thevillageatpetriniplace.com/wp-content/uploads/2024/12/petrini-place-summary-of-insurance-24.pdf">split the remaining liability</a>, in what’s known as “wraparound” coverage.&nbsp;</p>

The new fee represents a significant discount but is still more than six times what the property was paying just two years ago.&nbsp;

<p>The new fee represents a significant discount but is still more than six times what the property was paying just two years ago.&nbsp;</p>

“The home insurance market [in California] almost collapsed 18 months ago,” Miller said, highlighting the exodus of several large providers. “You just got to see what the market bears year to year. It takes time for carriers to develop new products to meet the demand.&nbsp;

<p>“The home insurance market [in California] almost collapsed 18 months ago,” Miller said, highlighting the exodus of several large providers. “You just got to see what the market bears year to year. It takes time for carriers to develop new products to meet the demand.&nbsp;</p>

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Insurance chief lives large on campaign cash as homes burn

“No one wanted to take on [Petrini Place’s] first tranche [of $20 million] last year,” he added.&nbsp;

<p>“No one wanted to take on [Petrini Place’s] first tranche [of $20 million] last year,” he added.&nbsp;</p>

This year, the FAIR plan covers the complex only for fire, while the other insurers handle water damage and other liabilities.&nbsp;

<p>This year, the FAIR plan covers the complex only for fire, while the other insurers handle water damage and other liabilities.&nbsp;</p>

Don’t expect home insurance prices to fall back to pre-pandemic levels anytime soon. Miller said any future insurance quote will be at least two to three times higher than those of 2019, since materials and labor are more expensive and consecutive natural disasters have wiped out major insurers’ reserves.&nbsp;

<p>Don’t expect home insurance prices to fall back to pre-pandemic levels anytime soon. Miller said any future insurance quote will be at least two to three times higher than those of 2019, since materials and labor are more expensive and consecutive natural disasters have wiped out major insurers’ reserves.&nbsp;</p>

Despite these headwinds, Polifko views his home at Petrini Place as a good long-term investment. While fed up with the insurance industry and weary of paying more fees, the residents are largely happy with the results of the major projects that have been completed.&nbsp;

<p>Despite these headwinds, Polifko views his home at Petrini Place as a good long-term investment. While fed up with the insurance industry and weary of paying more fees, the residents are largely happy with the results of the major projects that have been completed.&nbsp;</p>

“There’s no sense in trying to time the market,” he said. “The only ideal time to buy is when you can afford it. At the end of the day, it’s yours.”

<p>“There’s no sense in trying to time the market,” he said. “The only ideal time to buy is when you can afford it. At the end of the day, it’s yours.”</p>

Condos used to be ideal starter homes. Now, they’re harder than ever to own

Morgan Ellis

On paper, the condos at the Serif and OneEleven SF buildings in Mid-Market check off a lot of boxes for a first-time home buyer in San Francisco.

<p>On paper, the condos at the Serif and OneEleven SF buildings in Mid-Market check off a lot of boxes for a first-time home buyer in San Francisco.</p>

They’re newly constructed, have great views and are stuffed with luxe amenities. In a city known for its <a href="https://sfstandard.com/2024/04/27/why-owning-a-home-in-san-francisco-has-never-cost-more/">exorbitant housing costs</a> and <a href="https://sfstandard.com/2024/04/08/san-francisco-new-housing-permits-pace/">dismal record on housing production</a>, these are the kind of move-in ready listings that would normally be grabbed quickly, particularly with the discount that comes from buying directly from the builder.&nbsp;

Why owning a home in San Francisco has never cost more

San Francisco approved just 7 new homes in 2 months. Why?

<p>They’re newly constructed, have great views and are stuffed with luxe amenities. In a city known for its <a href="https://sfstandard.com/2024/04/27/why-owning-a-home-in-san-francisco-has-never-cost-more/">exorbitant housing costs</a> and <a href="https://sfstandard.com/2024/04/08/san-francisco-new-housing-permits-pace/">dismal record on housing production</a>, these are the kind of move-in ready listings that would normally be grabbed quickly, particularly with the discount that comes from buying directly from the builder.&nbsp;</p>

But these are not normal times. In downtown, a combination of a <a href="https://sfstandard.com/2024/04/24/how-much-big-tech-pulled-back-in-san-francisco/">mass office exodus</a> and interest rate spike has eliminated a large swath of would-be buyers from the market, resulting in condo prices falling across the board.

Corporate retreat: Big Tech has slashed its office presence in San Francisco by half

<p>But these are not normal times. In downtown, a combination of a <a href="https://sfstandard.com/2024/04/24/how-much-big-tech-pulled-back-in-san-francisco/">mass office exodus</a> and interest rate spike has eliminated a large swath of would-be buyers from the market, resulting in condo prices falling across the board.</p>

A quick scan on Zillow highlights a handful of similar properties—mainly centered in SoMa— with the following qualities: Newly built, never occupied, and experiencing major price cuts.&nbsp;

<p>A quick scan on Zillow highlights a handful of similar properties—mainly centered in SoMa— with the following qualities: Newly built, never occupied, and experiencing major price cuts.&nbsp;</p>

Granted, these apartment-sized dwellings might not fit the stereotypical image of the American Dream, but they are still property one can own and trade (or rent out) down the line.&nbsp;

<p>Granted, these apartment-sized dwellings might not fit the stereotypical image of the American Dream, but they are still property one can own and trade (or rent out) down the line.&nbsp;</p>

People disembark a MUNI bus on in front of Serif SF at 960 Market Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined01_20240531-newemptycondos.jpg?w=1668" alt="A busy urban street scene with people walking, a modern multi-story building, trees, a city bus labeled &quot;Clean Air Vehicle,&quot; and scattered orange traffic cones." class="wp-image-280044"/><figcaption class="wp-element-caption">The Serif SF at 960 Market Street opened in 2022 during the latest residential market contraction, fueled by an exodus of office workers and high interest rates.</figcaption></figure>


A sliding glass door opens to a solarium to the rooftop at Serif SF at 960 Market Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.


<figure class="wp-block-image size-large"><img height="1742" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined02_20240531-newemptycondos.jpg?w=2500" alt="A modern room with large windows, couches, a person standing, bookshelves, a table with chairs, and some greenery inside and outside. The room has an outdoor view." class="wp-image-280045"/><figcaption class="wp-element-caption">A sliding glass door opens to a solarium to the rooftop at Serif SF at 960 Market St. The building is stuffed with other luxury amenities including a pet spa and sharable ZipCars.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined02_20240531-newemptycondos.jpg?w=2500" alt="A modern room with large windows, couches, a person standing, bookshelves, a table with chairs, and some greenery inside and outside. The room has an outdoor view." class="wp-image-280045"/><figcaption class="wp-element-caption">A sliding glass door opens to a solarium to the rooftop at Serif SF at 960 Market St. The building is stuffed with other luxury amenities including a pet spa and sharable ZipCars.</figcaption></figure>

Historically, condos have served as a sort of stepping stone for younger buyers in between renting and owning a single-family home, said Robyn Kaufman, a longtime real estate agent who specializes in downtown high-rises. “The past two years have thrown a wrench in many of those plans,” she said.&nbsp;

<p>Historically, condos have served as a sort of stepping stone for younger buyers in between renting and owning a single-family home, said Robyn Kaufman, a longtime real estate agent who specializes in downtown high-rises. “The past two years have thrown a wrench in many of those plans,” she said.&nbsp;</p>

Since mortgages are still prohibitively expensive for many because of high interest rates, motivated sellers are beginning to acknowledge it’s time to meet buyers where they are. That means price cuts of more than 25% off the top of the market.&nbsp;&nbsp;

<p>Since mortgages are still prohibitively expensive for many because of high interest rates, motivated sellers are beginning to acknowledge it’s time to meet buyers where they are. That means price cuts of more than 25% off the top of the market.&nbsp;&nbsp;</p>

Builders of these new properties are also driven to get properties off their hands. “[Individual] sellers might not have the room or motivation to budge on their price,” Kaufman said. “But a developer does. They want the building to sell out as quickly as possible so they can get out.”&nbsp;

<p>Builders of these new properties are also driven to get properties off their hands. “[Individual] sellers might not have the room or motivation to budge on their price,” Kaufman said. “But a developer does. They want the building to sell out as quickly as possible so they can get out.”&nbsp;</p>

The Mid-Market faithful: Life inside San Francisco’s office dead zone

Is this ceiling-mounted bed in a tiny, $600,000+ studio the future of SF living?

San Francisco hopes college students can save downtown. This university is already trying

In real estate, timing is everything. Consider the Serif, for example, which contains 242 units. The luxury complex, with views of Market Street on one side and Turk Street on the other, opened in 2022 in the midst of a residential market contraction. Today, it is still less than half occupied. As a result, studios originally priced at around $500,000 are now being listed for about $350,000.&nbsp;

<p>In real estate, timing is everything. Consider the Serif, for example, which contains 242 units. The luxury complex, with views of Market Street on one side and Turk Street on the other, opened in 2022 in the midst of a residential market contraction. Today, it is still less than half occupied. As a result, studios originally priced at around $500,000 are now being listed for about $350,000.&nbsp;</p>

Local developer Group I conceived of the project back when an influx of new housing was built to meet the demand of tech companies flocking to Mid-Market. The Serif includes a fitness center, a pet spa, a rooftop lounge, and even ZipCars for residents to share. The white modernist flatiron-style building is also connected to the newly opened 236-room Line Hotel and a branch of LA cult-favorite café Alfred Coffee on the ground floor.&nbsp;

<p>Local developer Group I conceived of the project back when an influx of new housing was built to meet the demand of tech companies flocking to Mid-Market. The Serif includes a fitness center, a pet spa, a rooftop lounge, and even ZipCars for residents to share. The white modernist flatiron-style building is also connected to the newly opened 236-room Line Hotel and a branch of LA cult-favorite café Alfred Coffee on the ground floor.&nbsp;</p>

A Market Street-facing condo on the market at Serif SF at 960 Market Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.


<figure class="wp-block-image size-large is-resized"><img height="1668" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined06_20240531-newemptycondos.jpg?w=2500" alt="A modern living room with wooden chairs around a black table, a large window, a plant, a white cabinet, and a vibrant painting on a white wall." class="wp-image-280049" style="width:670px;height:auto"/><figcaption class="wp-element-caption">At least half of the 242 units at the Serif SF are still on the market. </figcaption></figure>


<figure class="wp-block-image size-large is-resized"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined06_20240531-newemptycondos.jpg?w=2500" alt="A modern living room with wooden chairs around a black table, a large window, a plant, a white cabinet, and a vibrant painting on a white wall." class="wp-image-280049" style="width:670px;height:auto"/><figcaption class="wp-element-caption">At least half of the 242 units at the Serif SF are still on the market. </figcaption></figure>

The Lumina towers seen from a soon to be on the market unit at The Metropolitan at 333 1st Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.


<figure class="wp-block-image size-large"><img height="1668" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined05_20240531-newemptycondos.jpg?w=2500" alt="The image shows several tall glass skyscrapers closely packed together, reflecting the sky and neighboring buildings. The buildings have a modern, sleek design." class="wp-image-280048"/><figcaption class="wp-element-caption">The Lumina towers seen from a soon to be on the market unit at The Metropolitan at 333 1st Street. San Francisco&#8217;s eastern waterfront transformed in the last 20 years from an industrial center.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined05_20240531-newemptycondos.jpg?w=2500" alt="The image shows several tall glass skyscrapers closely packed together, reflecting the sky and neighboring buildings. The buildings have a modern, sleek design." class="wp-image-280048"/><figcaption class="wp-element-caption">The Lumina towers seen from a soon to be on the market unit at The Metropolitan at 333 1st Street. San Francisco's eastern waterfront transformed in the last 20 years from an industrial center.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined05_20240531-newemptycondos.jpg?w=2500" alt="The image shows several tall glass skyscrapers closely packed together, reflecting the sky and neighboring buildings. The buildings have a modern, sleek design." class="wp-image-280048"/><figcaption class="wp-element-caption">The Lumina towers seen from a soon to be on the market unit at The Metropolitan at 333 1st Street. San Francisco&#8217;s eastern waterfront transformed in the last 20 years from an industrial center.</figcaption></figure>

“You’re only going to get those sorts of amenities in downtown,” said realtor Nick Spangler, who showed The Standard another brand new condo down the street at 588 Minna St.&nbsp;

<p>“You’re only going to get those sorts of amenities in downtown,” said realtor Nick Spangler, who showed The Standard another brand new condo down the street at 588 Minna St.&nbsp;</p>

The seller purchased the unit last year for $475,000 in anticipation of moving to San Francisco, but has now listed it for sale at the same price after those plans fell apart.&nbsp;

<p>The seller purchased the unit last year for $475,000 in anticipation of moving to San Francisco, but has now listed it for sale at the same price after those plans fell apart.&nbsp;</p>

The building, known as OneEleven, is a collection of 39 units, and is also only about half full. When it first opened in 2021, online reviews skewered the property for its proximity to the corner of 7th and Market Street, which has <a href="https://sfstandard.com/2023/10/27/san-francisco-drug-crisis-worst-corner-un-plaza-sfpd-enforcement/">struggled with issues around drug dealing and crime</a>.&nbsp;

24 hours at SF&#8217;s worst drug corner: The city&#8217;s struggle to control Seventh and Market

<p>The building, known as OneEleven, is a collection of 39 units, and is also only about half full. When it first opened in 2021, online reviews skewered the property for its proximity to the corner of 7th and Market Street, which has <a href="https://sfstandard.com/2023/10/27/san-francisco-drug-crisis-worst-corner-un-plaza-sfpd-enforcement/">struggled with issues around drug dealing and crime</a>.&nbsp;</p>

But the <a href="https://www.sfchronicle.com/sf/article/s-f-new-hotels-troubled-street-18465754.php">recent reopenings of three hotels</a> across the street from OneEleven late last year have improved street conditions drastically, according to Spangler. During a recent visit last week, the entrance and alleyway flanking the property were clean and clear.&nbsp;

<p>But the <a href="https://www.sfchronicle.com/sf/article/s-f-new-hotels-troubled-street-18465754.php">recent reopenings of three hotels</a> across the street from OneEleven late last year have improved street conditions drastically, according to Spangler. During a recent visit last week, the entrance and alleyway flanking the property were clean and clear.&nbsp;</p>

Looking down at Market Street from the rooftop at Serif SF located at 960 Market Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.


<figure class="wp-block-image size-large"><img height="1668" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined04_20240531-newemptycondos.jpg?w=2500" alt="This image shows a busy urban street lined with buildings, trees, and red bus lanes, with skyscrapers in the background under a clear blue sky." class="wp-image-280047"/><figcaption class="wp-element-caption">The luxury complex Serif which has spectacular views of downtown, is still less than half occupied and the studios originally priced at roughly $500,000 are now being listed near $350,000.&nbsp;</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined04_20240531-newemptycondos.jpg?w=2500" alt="This image shows a busy urban street lined with buildings, trees, and red bus lanes, with skyscrapers in the background under a clear blue sky." class="wp-image-280047"/><figcaption class="wp-element-caption">The luxury complex Serif which has spectacular views of downtown, is still less than half occupied and the studios originally priced at roughly $500,000 are now being listed near $350,000.&nbsp;</figcaption></figure>

“Everyone who’s toured recently has been pleasantly surprised,” Spangler said.

<p>“Everyone who’s toured recently has been pleasantly surprised,” Spangler said.</p>

According to Compass data, the median price for a downtown San Francisco condo right now is just shy of $1 million. In areas close to Van Ness and Civic Center, that number drops as low as $590,000. In contrast, the median price for a single-family home, depending on the neighborhood, ranges between $1 million to $6.7 million.&nbsp;

<p>According to Compass data, the median price for a downtown San Francisco condo right now is just shy of $1 million. In areas close to Van Ness and Civic Center, that number drops as low as $590,000. In contrast, the median price for a single-family home, depending on the neighborhood, ranges between $1 million to $6.7 million.&nbsp;</p>

Spangler and Kaufman are practicing what they preach to prospective buyers in choosing downtown over other neighborhoods. Spangler himself lives at One Rincon Hill and Kaufman at The Metropolitan—both skyscrapers erected in the 2000s as San Francisco’s eastern waterfront started its transformation from an industrial center.

<p>Spangler and Kaufman are practicing what they preach to prospective buyers in choosing downtown over other neighborhoods. Spangler himself lives at One Rincon Hill and Kaufman at The Metropolitan—both skyscrapers erected in the 2000s as San Francisco’s eastern waterfront started its transformation from an industrial center.</p>

Before then, the city’s condo stock was concentrated on the north side of the city, where the best views of the bay were. However, restrictive height and density limits meant new developments were scarce, thus driving sale prices and maintenance costs up as those buildings aged.&nbsp;

<p>Before then, the city’s condo stock was concentrated on the north side of the city, where the best views of the bay were. However, restrictive height and density limits meant new developments were scarce, thus driving sale prices and maintenance costs up as those buildings aged.&nbsp;</p>

Real estate agent Nicholas Spangler inside unit #705 at OneEleven at 588 Minna Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.


<figure class="wp-block-image size-large"><img height="1668" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined03_20240531-newemptycondos.jpg?w=2500" alt="A tidy and brightly lit room with modern furniture features a man standing near a window. The room includes a sofa, round coffee table, large paintings, and houseplants." class="wp-image-280046"/><figcaption class="wp-element-caption">Real estate agent Nicholas Spangler inside a new condo for sale at OneEleven at 588 Minna Street. The seller is listing the home for the same price they paid for it last year. </figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined03_20240531-newemptycondos.jpg?w=2500" alt="A tidy and brightly lit room with modern furniture features a man standing near a window. The room includes a sofa, round coffee table, large paintings, and houseplants." class="wp-image-280046"/><figcaption class="wp-element-caption">Real estate agent Nicholas Spangler inside a new condo for sale at OneEleven at 588 Minna Street. The seller is listing the home for the same price they paid for it last year. </figcaption></figure>

Real estate agent Robyn Kaufman in a soon to be on the market unit at The Metropolitan at 333 1st Street on Thursday, May 30, 2024. For San Francisco homebuyers, downtown condos are typically the best deals in town but available condominiums (condos) seem to have cooled and real estate agents are now stuck with empty units for extended periods of time.


<figure class="wp-block-image size-large"><img height="1668" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined08_20240531-newemptycondos.jpg?w=2500" alt="A woman stands in an empty, sunlit room with large floor-to-ceiling windows showcasing a cityscape of tall buildings, and she points towards the outside view." class="wp-image-280051"/><figcaption class="wp-element-caption">Real estate agent Robyn Kaufman in a soon to be on the market condo at The Metropolitan. In today&#8217;s market, she thinks the 1,200 square feet unit can fetch around $1.5 million. </figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined08_20240531-newemptycondos.jpg?w=2500" alt="A woman stands in an empty, sunlit room with large floor-to-ceiling windows showcasing a cityscape of tall buildings, and she points towards the outside view." class="wp-image-280051"/><figcaption class="wp-element-caption">Real estate agent Robyn Kaufman in a soon to be on the market condo at The Metropolitan. In today's market, she thinks the 1,200 square feet unit can fetch around $1.5 million. </figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/05/inlined08_20240531-newemptycondos.jpg?w=2500" alt="A woman stands in an empty, sunlit room with large floor-to-ceiling windows showcasing a cityscape of tall buildings, and she points towards the outside view." class="wp-image-280051"/><figcaption class="wp-element-caption">Real estate agent Robyn Kaufman in a soon to be on the market condo at The Metropolitan. In today&#8217;s market, she thinks the 1,200 square feet unit can fetch around $1.5 million. </figcaption></figure>

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Search Results for: condo

Hearst buys downtown SF tower, will relocate Chronicle newsroom

Condos used to be ideal starter homes. Now, they’re harder than ever to own

Brand new downtown condos are selling for deep discounts—or just sitting empty

A single-family home, a view worth a fortune, and a price that seems low for the neighborhood

The app that’s saving homeowners thousands in property tax