Millennium Tower in San Francisco is a $750M

sellout

Millennium Tower condominium sales generated a 25 percent return on cost for the development

Fiveyearsand$750millionlater,theWestCoastsmostluxuriouscondoprojectissoldout.
MillenniumTower,aglassyslateblue60storyhighriseat301MissionSt.,closedthelastofits419
units,thecompanysaid.DespitesellingthroughtheworsteconomiccollapsesincetheGreat
Depression,thetowergenerated$750millioninsales,a25percentreturnoncostforthe$600million
development.Theunitsaveraged$1.8million,withpenthousessellingforasmuchas$9.8million,or
$1,970asquarefootfora5,000squarefootpad.
ThecondotowerwasthetallestandmostexpensiveresidentialhighriseconstructedontheWestCoast.
FamousresidentsincludeTomPerkinsofKleinerPerkinsCaufield&Byers,footballexecutiveCarmen
PolicyandHallofFamefootballiconJoeMontana.
Thereweresomeprettydifficult,unsettlingtimesin2009,butwestayedthecourse,saidRichard
Baumert,apartnerwithdeveloperMillenniumPartners.Wesawitthroughandintheendourplanand
visionfortheprojectwerevalidated.

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SanFranciscoscondomarketwasstillinoverdrivein2008whenMillenniumPartnersopeneditssales
officeandbeganpresellingunits.ByApril23of2009,whenthebuildingopeneditsdoorsandthefirst
salesclosed,theeconomywasintatters.Whileotherdevelopersracedtocutpricesandunload
inventory,Millenniumimplementedaonetime15percentreductionthatwasretroactivetobuyers
alreadyincontract.Thedevelopermadethedecisiontokeepthepricecuts,evenasthemarket
bouncedbackin2012and2013.
Towardtheendtheysoldoutataveryfastpace,saidGreggLynn,aluxurybrokeratSothebys
InternationalRealty.Theycouldhaveraisedpricesandeasilysoldthoseunits,buttheystucktothe
originalpricing.

DesignedbyarchitectGlennRescalvoofHandelArchitects,MillenniumTowerwasthesecondluxury
developmentthatMillenniumPartnersbuiltinSanFrancisco.In2001,MillenniumPartnersopenedthe
FourSeasonsHotelandResidences,the100,000squarefootSportsClub/LA,andretailspacethatfronts
bothMarketStreetandYerbaBuenaLane.OtherMillenniumPartnersdevelopmentsinSanFrancisco
includetheentertainmentcenterMetreon(inwhichMillenniumlatersolditsinterest)andtheretail
alongYerbaBuenaLane.Thedeveloperiscurrentlywrappingupentitlementsforanewtowerand
MexicanMuseumat706MissionSt.
Lynn,whohasrepresentedaboutadozenMillenniumbuyers,saidMillenniumPartnersexecutedan
incrediblemarketingandsalesprocessthatresultedinthemsellingthroughverydifferentmarkets.
Currently,justthreeMillenniumunitsareontheresalemarketonefor$4.5million,onefor$5
million,andonefor$6.2million.Allthreerepresentasignificantpremiumoverwhatthesellerpaidfor
thecondos,thoughtheyalsoinvestedmoneyoninteriordecoration.
Thesituationwearefacingisthateverybodywantstobuyintothatbuildingandtheyarekicking
themselvesthattheydidntwhentheyhadthechance,hesaid.Ivebeencontactedbydozensof
buyersandagentstryingtogettheirclientsintothebuildingatthe$2millionor$3millionrangeand
thereisnothing.Thereisnoinventorybelow$4million.

LynnsaidtheMillenniumTowerisourbuildingofthemoment.WhileMillenniumPartnerswillbuild
anothertowerat706MissionSt.andTishmanSpeyerisconstructingthenextphaseoftheInfinity
towersat201FolsomSt.,neitherwillbedeliveredforafewyears.Ithinkitsgoingtolastalotlonger
thanthemomentbecausetherearenoplanstobuildanotherbuildinglikeitformanyyears,hesaid.
Itsgoingtocontinuetosetawholeneweconomicstandardforluxuryunitsdowntown.

A3,300squarefootunitoriginallypurchasedfor$5million,soldrecentlyfor$7.8millionafteran
extensiverenovation.Peoplewhosellnowareexpectingtocashoutwithmajorprofits,hesaid.
BaumertsaidtheMillenniumTowerconceptisnotasmuchaboutthephysicalstructureasthe
residentialexperience.MillenniumTowerimplementedLaVie,amonthlyeventsprogramrangingfrom
filmscreeningsintheClubLevelsprivatetheatertofiresidechatswithnotablessuchasresidents
MontanaandPerkinsaswellascelebritychefMichaelMinaandformerMayorWillieBrown.Resident
servicesincludeaprivateconciergeandexclusiveaccesstothe20,000squarefootClubLevel,featuring
aprivatediningroom(servicedbyMichaelMinasRN74),a5,500squarefootfitnesscenteroperatedby
SportsClubLA,anda75foot,indoor,competitionlengthlappoolsetbeneathasoaringskylight.
AlanMarkoftheMarkCo.saidtheMillenniumTowersamenitiesandreputationdrewpeopletothe
Transbaydistrictwhootherwisewouldnothaveconsideredbuyingthere.Hehasfriendswhosold
homesonBuenaVistaPark,RussianHillandPacificHeightstorelocatetowhatwasonceagrittycorner
nexttoahulkingbusstation.

Itbroughtalotofdeeppocketed,olderpeopletoawholenewpartofSoMapeoplewhofiveyears
agomightnothavethoughtoflivinginthatpartofSouthofMarket,saidMark.Overthattime,
MillenniumTowercameintoitsown.Peoplerecognizedit.Everyoneknewpeoplewhohadmovedinto
thebuilding.Andfinallyintheendtherewasnoinventoryofthatqualityavailable.
WhiletheMillenniumTowerwasconsideredapioneerwhenbuilt,todayitissmackinthemiddleofa
districtthatisseeing2.7millionsquarefeetofnewofficedevelopmentaswellasanew$4billiontransit
terminal.

Wealwaystalkedaboutthiswhattheneighborhoodwouldlooklikeandfeellike,saidBaumert.
Nowyoucanseeit.Nowitsareality.YoustandonthecornerofMissionandFremontandlooktoyour
leftandseetheTransbayTerminal.TheTransbayTowerisweeksawayfrombreakingground.Across
thestreetat350MissionistheSalesforcebuilding.Ithasreallyvalidatedourplantobuild.