5 Condo Buildings Buyers Should Avoid

There are hundreds of residential condominium buildings in San Francisco for homebuyers to choose from. Want a small HOA? Got it. Want something state of the art? Ok. Want a view? Easy. When it comes to finding the right place, no matter the property type, location is always key. And with regard to condos in particular, the second biggest factor in weeding out the undesirables is association dues. Let’s be real: almost nobody wants to be on the hook for big monthly fees for the duration of their ownership.

While the buildings below all do have certain appeal (mostly affordable prices), their units have historically taken significantly longer and been more challenging to sell than the average condo in town, let alone other condos within a stone’s throw. And for that reason, we say: Don’t fall for the low prices at these places — there are reasons why they’re low.

601 VAN NESS AVENUE | Opera Plaza

Neighborhood: Civic Center

Listing photo above courtesy of SFAR MLS.

Not the worst location for living that cosmopolitan life. And if a “full service” building is what you seek, then you’re in luck. But you’ll be paying some of the city’s highest HOA dues and another $200+ per month for leased on-site parking. As a result, both pricing and appreciation suffer because this isn’t for everyone. Year-to-date, all 1-beds have sold for less than $650,000 and all 2-beds have sold for less than $1,000,000. Updated units with a view and priced to sell tend to find a buyer, but others can linger for a long time… well beyond the median of 48 days in this building. There’s one unit priced at $599,000 that’s been on the market for well over a year. Ouch.

1177 CALIFORNIA STREET | Gramercy Towers

Neighborhood: Nob Hill

Listing photo above courtesy of SFAR MLS.

High HOA dues. High turnover. Owners of 1-bed units can expect to pay $1,000 or more per month in association dues; and those with 2-beds are looking at $1,500 or more. Year-to-date, a full 10% of the homes in this 260-unit building have come up for sale. What the property does have going for it that makes it unique is a 24/7 doorman, on-site management, and included heat, electricity, internet and cable television. It’s location atop Nob Hill means you’re more likely to encounter tourists than junkies, but heads up: the only nearby public transit is cablecar and the steep 10-block trek downhill to Market Street means traversing the thick of the Tenderloin.

195 7TH STREET

Neighborhood: South of Market

Listing photo above courtesy of SFAR MLS.

While centrally located in SoMa and thus conveniently close enough to Market Street transit and amenities, 195 7th Street has a glaring challenge: its proximity to notoriously rough 6th Street just one block to the east. Locals know that 6th Street between Stevenson and Folsom is a hotbed of colorful characters and rife with crime; and the prevalence of city services on that stretch that attracts a transient population is unlikely to change any time soon. The three condos in this building that managed to sell in 2021 year-to-date spent a median 69 days on market. Three other units failed to sell after as much as 174 days.

250 – 260 KING STREET | The Beacon

Neighborhood: Mission Bay

Listing photo above courtesy of SFAR MLS.

Like 1177 California Street, this condo building suffers from high HOA dues and high turnover. The monthly dues associated with 1-bed units are typically in the $800 range, and in the $1,000 range for 2-bed units. On top of that, there’s a parking fee of approximately $200 per month if the home comes with a space in the garage. Already this year there have been over 60 listings in this development of 590 condominiums. A planned new development across the street at 655 4th Street will add approximately 960 units to the market, which could mean condos here at 250 – 260 King Street become harder to sell as buyers are lured to the newer and fancier building. On the plus side, it’s in an A+ location for commuters: there’s a Caltrain station around the corner, and the new Muni Central Subway will be opening with a stop at that station in 2022.

2250 24TH STREET | Potrero Court

Neighborhood: Potrero Hill

Listing photo above courtesy of SFAR MLS.

Sure, it’s technically in Potrero Hill… but in the southwestern quadrant of the neighborhood it’s closer to the projects than to the design district. It’s also right next to the highway. The reasonable HOA dues include on-site management, pool, spa and fitness center — which you ordinarily might not get with a mid-size development like Potrero Court. That said, there’s not a whole lot of amenities in the vicinity. We can’t decide which is more off-putting: the awkward location that feels equal parts isolated and semi-sketchy, or the 1980s take on Victorian architectural style.

Exclusive buyer representation and private tours of off-market homes available > 415.715.9205 / hello@vulcca.com