San Francisco to Sue Developer of Sinking Condo Tower – NMP Skip to main content

San Francisco to Sue Developer of Sinking Condo Tower

Nov 04, 2016
Everyone has heard of Italy’s Leaning Tower of Pisa—and it seems that San Francisco has its own version with the Millennium Tower

Everyone has heard of Italy’s Leaning Tower of Pisa—and it seems that San Francisco has its own version with the Millennium Tower, a 58-story luxury condo that has sunk 16 inches and has tilted by two inches. However, the city does not see this as a new tourist attraction—instead, it is filing a lawsuit against the property’s developer.

The New York Times is reporting that San Francisco city attorney Dennis Herrera is preparing legal action against Mission Street Development, charging the company with failing to inform the condo’s buyers that the building was sinking “much faster than expected.” The Millennium Tower was completed in 2008, and units have sold for seven-digit figures.

“They went ahead and sold condominiums for a handsome profit without telling the buyers about the situation,” Herrera said. “This is every homeowner’s worst nightmare.”

P.J. Johnston, a spokesman for Mission Street Development, said the threat of a lawsuit had “no merit” and insisted that the build sank within “predicted, safe ranges” during the entire sales process. Instead, Johnston said the city’s construction of a neighboring railway station removed water from the ground, thus causing the Millennium Tower to “settle beyond the 12 inches it was predicted to settle.”

“The city attorney’s action today has nothing to do with protecting public safety, the building, or its residents,” Johnston said. “Instead, it’s an effort by the City of San Francisco to duck its responsibilities and avoid paying for the harm caused by [the station’s construction].” 

About the author
Published
Nov 04, 2016
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026