A buyer has acquired a substantial underwater lot in one of America's most expensive cities for just $250, though the property comes with a significant drawback: it lies entirely submerged. Hopeful investors in San Francisco, where housing costs rank among the highest in the nation, purchased multiple submerged parcels at a Tuesday auction, each selling for under $1,000, as reported by ABC7.
The Unusual Purchase
One investor secured a 5,000-square-foot lot for only $250 near Candlestick Point, a striking anomaly in a city market dominated by multimillion-dollar homes. The property, listed on Zillow as 0 Bancroft Avenue, Lot 17, consists of little more than nearly a quarter-acre of seabed. These unusual investments have sparked confusion, with some labeling the purchases impractical and others considering them a worthwhile gamble.
Historical Context and Expert Opinions
Historian Chris Carlsson, author of Hidden San Francisco, a book on the city's history, suggested the purchase could pay off in the long run but warned of extensive bureaucratic obstacles. He explained to ABC7 that parts of San Francisco were once underwater and later filled in, but noted that the process would be far more challenging today due to legal and environmental barriers. 'It's just not going to happen. I mean really everybody gave up on that a long time ago and really for good reason. We now today enjoy the shoreline. We never could stand here decades past,' Carlsson stated.
San Francisco remains one of America's most expensive cities for property purchases. The recent auction of lots for as little as $250 has caused a stir. The lots were marketed as an 'intriguing speculative investment,' with potential for waterfront development, boat docking, environmental applications, or even floating homes. Marie Bradley, an executive administrator of Vantage Auctions, which sold the lots, told SFGate that there were even more options for use, including 'oil drilling.'
Mixed Reactions
Sam Mitchell, a former San Francisco resident, called the idea 'really stupid,' according to ABC7. 'Sea levels are rising so I don't know why you'd buy land underwater, but you never know. Someone will figure it out,' he said. However, Dr Koen Olthuis, CEO of Waterstudio, an architectural firm specializing in floating homes, added that as long as the lot is not in open sea, it is 'absolutely possible' to build a neighborhood on the water. He explained that solid ground is not necessarily required if the water is calm and protected, such as in bays, rivers, canals, lakes, or flood-prone zones. These areas offer the potential for engineers to install floating foundations that can support structures built atop them. Olthuis said floating homes could present an innovative housing alternative, though he warned that regulatory and permitting barriers would likely stand in the way.
Gambling on Future Value
Don Cruz Datanagan, managing director for Serhant’s Northern California office, agreed that snatching up such a lot is part of the gamble. 'Some buyers may view parcels like this as inexpensive long-term bets on future San Francisco waterfront value,' he told SFGate. However, he cautioned: 'Ownership alone would not automatically create meaningful development rights or usable waterfront access.' With the average home in San Francisco selling for a whopping $1,369,171 according to Zillow, buyers could see a huge return in the future if they ever manage to build on the sites.
