San Francisco’s 58-story Millennium Tower is slumping. The luxury residential tower has sunk 16 inches into the earth and tilted over 15 inches at its tip and 2 inches at the base, residents say. The building is unlikely to fall over, but they’re nonetheless concerned that the building’s developer Millennium Partners doesn’t have enough insurance to cover what it will cost to fix the tower’s structural problems.
“I don't foresee a scenario where anyone writes a check under any policy,” Sarah Sherman, the U.S. property practice leader at JLT Specialty USA, an insurance broker in San Francisco, told Bloomberg. “There's no way to avoid litigation at this point.”
Not all buyers have been scared away by the tower's well-publicized tilt. The penthouse apartment recently sold for $13 million to Silicon Valley executive Tom Perkins.