The high-profile real estate dealings within the foggy city's borders continue to capture attention, now with a legal twist involving one of the tech world's moguls. OpenAI CEO Sam Altman, currently residing at the expansive 950 Lombard St. property, finds himself entangled in a lawsuit centering on a myriad of alleged construction defects. According to a report by the SF Standard, 950 Lombard LLC, with Altman as the notable resident, has filed suit against the developer Troon Pacific and CEO Gregory Malin, asserting that the property was misrepresented as being free of significant flaws, only to be reportedly plagued with construction defects.
In an escalating convergence of legal troubles for Troon Pacific, the firm has also been mandated by arbitration to compensate investors to the tune of $48.1 million, following accusations of "fraudulent self-dealing" and "wanton dereliction of responsibilities," as detailed in a San Francisco Chronicle article. The litigation exposes a plethora of issues, including, an "unconnected bathroom sewer line that dumped raw sewage on the ground" and "numerous leaking irrigation lines that were incorrectly installed on the rooftop garden," among other serious allegations.
The mansion, originally drawing potential buyers with the lure of unique features like an interior elevator and an infinity-edge pool with stunning views, had a sale history marked by significant price reduction during the pandemic, leading to its eventual $27 million price tag in December 2020. This figure stands in stark contrast to the $45 million for which it was once listed, a pricetag that would have made it, at the time, the most expensive sale in SF's history, as reported by SFGate in 2018.
That number has since been obliterated, as recently as this month, when Laurene Powell Jobs' recent acquisition of a mansion on Billionaire's Row for a record-setting $70 million dwarfed the numbers tied to Altman’s embattled abode, as noted here on Hoodline San Francisco. These transactions serve as reminders of the exceptionalism that defines the city's high-end property scene, albeit currently overshadowed by the unsavory revelations in Altman's lawsuit.
