1) The litigation.
As long as the litigation has no impact on the safety, structural soundness, habitability, or functional use of the project it should not be an issue.
2) The less than 600sq/ft GLA
Since San Francisco is considered a "resort area' it may be difficult to find financing for this. You will have to show that the condo is suitable for year round use and not being managed or operated like a hotel, motel, resort, inn, or lodge.
Contact me if you like and I can give you a definitive answer as to what can be accomplished.
Try First Republic Bank. They do finance condo purchases and refinancing in litigation buildings. However, they will ask for 30% down payment and the borrower needs to bank with First Republic and have a balance of at least $ 2500-3500/ month.
Alina Aeby-Broker Associate
Pacific Union International