{"id":244574,"date":"2024-07-17T17:39:15","date_gmt":"2024-07-17T17:39:15","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/07\/17\/sam-altmans-27-million-mansion-flooded-now-hes-suing-for-being-sold-a-property-lemon\/"},"modified":"2025-06-25T17:14:32","modified_gmt":"2025-06-25T17:14:32","slug":"sam-altmans-27-million-mansion-flooded-now-hes-suing-for-being-sold-a-property-lemon","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/07\/17\/sam-altmans-27-million-mansion-flooded-now-hes-suing-for-being-sold-a-property-lemon\/","title":{"rendered":"Sam Altman\u2019s $27 million mansion flooded\u2014now he&#8217;s suing for being sold a property &#8216;lemon&#8217;"},"content":{"rendered":"<p> [ad_1]<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/07\/GettyImages-1786606834-e1721215125804.jpg?w=2048\" \/><\/p>\n<p>OpenAI CEO <a href=\"https:\/\/fortune.com\/2024\/07\/15\/donald-trump-assassination-attempt-openai-sam-altman\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/07\/15\/donald-trump-assassination-attempt-openai-sam-altman\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">Sam Altman<\/a> has joined the list of billionaires with <a href=\"https:\/\/fortune.com\/2024\/07\/13\/laurene-powell-jobs-buys-mansion-san-francisco-billionaires-row-70-million-record-high\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/07\/13\/laurene-powell-jobs-buys-mansion-san-francisco-billionaires-row-70-million-record-high\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">expensive property<\/a> headaches, after the infinity pool of his San Francisco home flooded the lower levels of the property. <\/p>\n<div>\n<p>In a lawsuit filed to the Superior Court of <a href=\"https:\/\/fortune.com\/2024\/06\/29\/return-to-office-san-francisco-doom-loop-fed-president-mary-daly\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/06\/29\/return-to-office-san-francisco-doom-loop-fed-president-mary-daly\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">San Francisco<\/a>, lawyers allege 950 Lombard Street has \u201cbeen plagued by shoddy construction, corner cutting, and development efforts to save money, all which lead to pervasive defects in the building.\u201d<\/p>\n<p>Issues have reportedly included raw sewage pouring into hard-to-access areas of the property, with materials bags shoved into pipes \u201capparently by a disgruntled, unpaid subcontractor.\u201d<\/p>\n<p>Elsewhere, water has been pouring into the property via skylights which were not correctly installed, and leaking pumps throughout the garden\u2019s irrigation system and fountain.<\/p>\n<p>While these issues \u201cfrustrated\u201d the owner, the affair came to a head when chlorinated water \u201cfilled the entire subfloor of the lower level [of the home]\u201d and then poured down through the roof of the at-home gym, according to the complaint.<\/p>\n<p>Investigations following the flood concluded the water had seeped out of the home\u2019s 40-foot infinity pool, which overlooks the San Francisco Bay and city skyline. <\/p>\n<p>The lawsuit, filed by Dillon Jackson and Brian Schnarr of Hanson Bridgett on behalf of the property owner, 950 Lombard LLC, notes that \u201cestimates to remediate the hazardous condition, replace the pool, and repair the damage in the lower level exceed $4 million.\u201d<\/p>\n<p>The owner of the property has already spent hundreds of thousands of dollars to remediate the issues thus far, the case\u2014which has been viewed by <em>Fortune<\/em>\u2014continues. <\/p>\n<p>Public records detail Altman\u2019s connection to 950 Lombard Street\u2014a six-bed, eight-bathroom mansion with <a href=\"https:\/\/www.thealtmanbrothers.com\/listing\/950-lombard-st-san-francisco-ca-94133\/\" target=\"_blank\" aria-label=\"Go to https:\/\/www.thealtmanbrothers.com\/listing\/950-lombard-st-san-francisco-ca-94133\/\" rel=\"noopener\" class=\"sc-82aca549-0 klXAci\">\u201cresort-like\u201d amenities<\/a> that can accommodate more than 300 guests\u2014after the tech mogul updated the principal address of a business interest in August 2020 from the mansion to a corporation address in Glendale, Calif.<\/p>\n<p>Data from <a href=\"https:\/\/www.zillow.com\/homedetails\/950-Lombard-St-San-Francisco-CA-94133\/303807055_zpid\/\" target=\"_blank\" aria-label=\"Go to https:\/\/www.zillow.com\/homedetails\/950-Lombard-St-San-Francisco-CA-94133\/303807055_zpid\/\" rel=\"noopener\" class=\"sc-82aca549-0 klXAci\">Zillow<\/a> shows the property has not been sold again since.<\/p>\n<p>Representatives for Altman did not reply to <em>Fortune<\/em>\u2018s request for comment.<\/p>\n<h2 class=\"wp-block-heading\">A $27 million \u2018lemon\u2019 <\/h2>\n<p>Details about the property\u2014originally listed for $40.5 million\u2014are not hard to come by. In fact, <a href=\"https:\/\/fortune.com\/2024\/06\/22\/san-francisco-home-value-housing-market-tenant-rights-2053-zillow\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/06\/22\/san-francisco-home-value-housing-market-tenant-rights-2053-zillow\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">the property \u201cmasterpiece\u201d was heavily advertised ahead of its sale. <\/a><\/p>\n<p>When <em>Architectural Digest<\/em> visited the mansion four years ago, Gregory Malin, the CEO of developer Troon Pacific, which sold the property, proudly proclaimed the home was \u201cextraordinarily unique\u201d with \u201cworld class amenities.\u201d<\/p>\n<p>Malin highlighted the Russian Hill\u2019s home\u2019s \u201cBatcave\u201d entrance, art gallery, one-bed \u201cwellness cottage\u201d complete with spa and sauna, and glass elevator.<\/p>\n<p>The four-sided infinity pool, Malin added, is one of his \u201cfavorite features\u201d courtesy of it being suspended from the side of the property above lower levels.<\/p>\n<p>The structure also came equipped with underwater speakers, meaning if visitors wanted to listen to classical music in the sprawling gardens, a swimmer could be blasting Taylor Swift beneath the surface and \u201cno one would know,\u201d Malin grins.<\/p>\n<p>The developer also boasted, \u201ca lot of what we do in terms of development, you can\u2019t see.\u201d<\/p>\n<p>Here it seems Altman\u2019s legal team would agree, saying the owner purchased what they \u201cbelieved to be a beautiful, luxury home\u201d when in fact they were <a href=\"https:\/\/fortune.com\/2024\/04\/10\/san-francisco-selling-at-a-loss-housing-market\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/04\/10\/san-francisco-selling-at-a-loss-housing-market\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">sold a \u201c$27 million lemon.\u201d<\/a><\/p>\n<p>Malin and Troon Pacific\u2014and alleged alter egos\u2014are being sued for unspecified damages. Neither entity responded to <em>Fortune\u2019s<\/em> request for comment. <\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<p><iframe title=\"Inside a $40.5M Estate With a &quot;Batcave&quot; Garage | On The Market | Architectural Digest\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/hGkVxIyKnEA?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<\/figure>\n<h2 class=\"wp-block-heading\">Further problems<\/h2>\n<p>Unfortunately for Altman it seems the alleged issues with the property\u2014which spans an entire block\u2014may be far from over. <\/p>\n<p>A deck that wraps around the pool\u2014offering views from <a href=\"https:\/\/fortune.com\/2024\/01\/13\/jamie-dimon-says-san-francisco-in-far-worse-shape-than-new-york-city\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/01\/13\/jamie-dimon-says-san-francisco-in-far-worse-shape-than-new-york-city\/?utm_source=search&amp;utm_medium=advanced_search&amp;utm_campaign=search_link_clicks\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">downtown San Francisco<\/a> to Alcatraz\u2014is unintentionally buoyant.<\/p>\n<p>The suit alleges that upon investigation of the pool\u2019s defects, clogged drains were found in the adjacent decking. These drains were stuffed with sand, dirt and soil that had washed out of nearby planters and were \u201cnot able to be unclogged by commercially reasonable means.\u201d<\/p>\n<p>Ironically, the drainage and water flow system of the property was one of its crowning glories, according to Malin. This is because the home\u2019s \u201cdrought resistant plants\u201d and \u201cancient\u201d 100-year-old olive trees were watered via a 12,500-gallon recycling cistern, making the garden \u201ccompletely sustainable.\u201d<\/p>\n<p>Given the blockages in this state-of-the-art system, \u201cinches of standing water\u201d were found beneath the home\u2019s deck, the complaint alleges.<\/p>\n<p>Discoveries such as this, the file continues, means the owner \u201canticipates there are additional still undiscovered defects that plague the property and for which owner will seek damages after conducting discovery in this action.\u201d<\/p>\n<\/div>\n<div data-cy=\"subscriptionPlea\"><strong>Recommended Newsletter:<\/strong> CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. <a href=\"https:\/\/www.fortune.com\/newsletters\/ceo-daily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=ceo_daily&amp;itm_content=commentary_companies_conferences\" target=\"_self\" aria-label=\"Go to https:\/\/www.fortune.com\/newsletters\/ceo-daily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=ceo_daily&amp;itm_content=commentary_companies_conferences\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">Subscribe Now<\/a>.<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/07\/17\/sam-altman-infinity-pool-mansion-flooding-lawsuit\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] OpenAI CEO Sam Altman has joined the list of billionaires with expensive property headaches, after the infinity pool of his San Francisco home flooded<\/p>\n","protected":false},"author":1,"featured_media":244575,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/244574"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=244574"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/244574\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/244575"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=244574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=244574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=244574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}