In a recent report by the San Francisco Standard, OpenAI’s CEO, Sam Altman, made headlines by purchasing a lavish home in Russian Hill for an impressive $27 million. Despite its luxury features, including a “Batcave” garage, the property is now being classified as a “lemon” due to severe structural issues. Consequently, Altman has initiated a lawsuit against the builder.
The lawsuit, filed by 950 Lombard LLC, asserts that the plaintiffs were deceived into acquiring this property, which they claim is riddled with critical flaws. The alleged problems span across various components, including the interior walls, ceilings, flooring, roof, foundation, plumbing, sewer systems, and septic tank. The owners estimate that rectifying these issues could cost around $4 million.
The complaint specifically targets Gregory Malin, CEO of Troon Pacific, accusing him of being fully aware of the extensive installation defects and unfinished work within the home. Instead of revealing these problems, he reportedly misrepresented that all issues had been resolved to expedite the sale.
This luxury residence was once considered one of the priciest in San Francisco, featuring amenities such as an elevator, century-old olive trees, and an infinity pool offering breathtaking views of the bay.
Public records indicate that 950 Lombard LLC acquired the property in March 2020, with Altman listed as the owner. The property also serves as the registered address for Apollo Projects, an investment firm co-owned by Altman and his brother, Jack Altman.
Interestingly, Jennifer Serralta manages both 950 Lombard LLC and the Sam Altman Qualified Opportunity Fund, under which Altman’s home in Hawaii is registered.
It’s important to note that Troon Pacific and Malin have faced numerous lawsuits in the past concerning subpar construction quality and allegations of fraud. Just six weeks before Altman’s lawsuit, Troon Pacific was ordered by the San Francisco Superior Court to refund $48.1 million to investors linked to four other luxury properties, only two of which were completed, despite charging investors $14 million without delivering any financial returns.
Originally listed for $45 million back in 2018, Altman’s residence at 950 Lombard saw its price drop significantly due to the COVID-19 pandemic, ultimately being purchased by 950 Lombard LLC for $27 million in 2020.
