Sam Altman bought a $40.5 million mansion for $27 million. He soon discovered that the reason for the discount was shoddy construction.
Altman is suing the builders for damages and fraud in selling the property.
OpenAI CEO Sam Altman bought what was once the most expensive mansion in San Francisco for $27 million, according to The San Francisco Curbed. Altman thought he had made the purchase of a lifetime, getting a significant discount on his stunning luxury home in one of San Francisco’s most exclusive neighborhoods. But the entrepreneur and investor soon discovered the house wasn’t as idyllic as he thought. Now, Altman is suing the sellers for fraud.
Altman bought the most expensive house in San Francisco. Altman’s mansion is so spectacular that it was the subject of a video on the YouTube real estate channel Architectural Digest in 2020, which has over 6.7 million followers. In the video, the host claims the home is worth $40.5 million. However, the OpenAI CEO negotiated the price, getting it for about $27 million. Over time, he understood the reason they agreed to give him such a big discount.
A dream mansion… Located near one of San Francisco’s most famous streets, in the exclusive neighborhood of Russian Hill, the property occupies 14,520 square feet on an entire block at 950 Lombard Street, which occupies six buildable lots.
The 9,500-square-foot mansion features five bedrooms, seven bathrooms, and a full spa with a sauna, hammam, and massage area. In addition, surrounding the house is a spectacular garden with century-old olive trees, gathering areas, and 270 degree views of the San Francisco Bay. There’s also a garage and a stunning four-sided infinity-edge pool that, let’s say, gives Altman a lot of headaches.
… which turned out to be a nightmare. The San Francisco Standard was the first to spot that Altman and his brother Jack Altman (the plaintiff 950 Lombard LLC) had filed a lawsuit in the San Francisco Superior Court against real estate company Troon Pacific and its CEO, Greg Malin, for fraud in the sale of a home “plagued by instances of shoddy workmanship and defects.”
Among the damages cited in the lawsuit are serious leaks from the pool into the garage due to defects in design, installation, and waterproofing. The pool leaks even caused severe flooding inside the mansion last summer.
The contractor’s revenge. One of the mansion’s most serious problems was a sewer line leaking waste water into one side of the garden.
Forbes noted that an extensive $250,000 investigation found that Troon Pacific had failed to pay the contractors. So, they retaliated against the property by filling the sewer pipes with bags and debris from the construction, preventing the sewage that found an outlet in the garden from draining.
The seller is a repeat offender. Altman’s attorneys seek $4 million in damages and fees. According to The San Francisco Chronicle, the OpenAI CEO has the recidivist history of the developer who sold him the property in his favor. Troon Pacific had already been sued by the owners and investors of several properties and ordered to repay them $48.1 million for construction defects.
This article was written by Rubén Andrés and originally published in Spanish on Xataka.
Image | Wikimedia Commons (Village Global)
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