The once-grand Sea Cliff mansion, infamous for housing stolen art and owned by convicted felon Luke Brugnara, is hitting the market again, but this time at a significantly reduced price due to its troubled history. In a bankruptcy court filing, the San Francisco residence located at 224 Sea Cliff Ave. is due to sell for a discounted $7 million unless an auction this week draws higher bids, SFGATE reported.

The property, which has seen wild fluctuations in its market listing, from a lofty $19.7 million in 2016 to the current tag, is contingent upon acceptance of the pending offer and overbids at a minimum of $7 million are welcomed, Redfin listing shows. The house's recent annual dance with the real estate market reflects a controversial past that includes FBI raids and a mysterious fire in 2022 that led to a $400,000 insurance payout, particularly notable because during this incident, a firefighter heroically survived a fall down an elevator shaft.

Potential buyers face the challenge of addressing code violations tied to the houses illegally constructed staircase which zig-zags down a cliff to the ocean, this dangerous feature tied to past owner Brugnara's shenanigans, a complaint filed in US Bankruptcy Court alleges that Brugnara attempted to sabotage the home's sale by reporting safety violations to the San Francisco Department of Building Inspection, according to SFist.

Brugnara, known for his aggressive real estate investments in the '90s and whose notoriety extends well beyond real estate, as he ended up serving time for tax evasion and mail fraud involving a scheme with millions of dollars’ worth of art, "including a series of etchings by Pablo Picasso and 16 Willem de Kooning paintings," SFGate detailed, meanwhile the Sea Cliff mansion, boasting seven bedrooms, five bathrooms and over 7,000 square feet, presents an opportunity for a buyer willing to take on its legacy and potential liabilities - a cliffside staircase issue that must be resolved, and a $90,000 lien, as advertised by the Redfin listing.

The auction for the property is scheduled to occur via tele/videoconference per the listing on Redfin, with a court hearing set to take place before the Honorable Dennis Montali at the United States Bankruptcy Court in San Francisco, adding another layer of complexity and drama to the mansion's tumultuous history.