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Sam Altman thought he’d bought a $27M home with a ‘Batcave.’ Lawsuit says it’s a ‘lemon’

The image shows a large, modern house with a multi-tiered design and pool on an upper terrace. Inset is a headshot of a person with short dark hair wearing a blue jacket.
Sam Altman bought a ‘$27 million lemon’ house at 950 Lombard Street in San Francisco, a lawsuit claims. | Source: Courtesy photo

OpenAI boss Sam Altman thought he’d bought a Russian Hill mansion complete with a “Batcave.” But a lawsuit against the builder claims the billionaire was misled into buying a $27 million “lemon” rife with shoddy construction.

The property owner filed suit Friday in San Francisco Superior Court against Troon Pacific and its CEO, Greg Malin, accusing the developer of a fraud scheme to sell a home “plagued by instances of poor workmanship and defects.”

The named plaintiff is 950 Lombard LLC, which purchased the property in March 2020. Public records list Sam Altman as the current resident of 950 Lombard St. The residence is also the registered business address of Apollo Projects, an early-stage investment firm led by Altman and his brother Jack Altman.

Sam Altman's new property at 950 Lombard Street in San Francisco. | Source: Jesse Rogala/The Standard

Jennifer Serralta manages 950 Lombard LLC and also manages the Sam Altman Qualified Opportunity Fund, which the mogul used to buy a home in Hawaii. Attempts to reach Serralta and Altman for comment were unsuccessful.

The lawsuit is seeking unspecified damages, including interest and attorneys’ fees.

The San Francisco Chronicle first highlighted the lawsuit but did not name the homeowner.

An Architectural Digest tour of the property showcased some of its notable amenities, including a separate wellness cottage and a garage with a “turntable” for cars that emerges out of a “Batcave” tunnel.

The Russian Hill estate — which at one time was the most expensive home listing in San Francisco — features an interior elevator, a private garden with century-old olive trees and an infinity-edge pool with sweeping views of the bay.

But that pool would apparently become a huge money sink for Altman, due to defects in its waterproofing design and installation, which led to widespread problems, including a massive flood of the mansion last August.

Several more construction problems emerged over the past few years, including an improperly installed line dumping raw sewage on the property and an incident in which bags were jammed into a sewer line by a disgruntled, unpaid contractor, the lawsuit alleges.

Malin and his firm were aware of the design and construction flaws but misrepresented that they had been addressed in order to sell the home more quickly, the suit claims.

The lawsuit claims that repair costs to the property will exceed $4 million. A permit filed with the city in February lists a $250,000 cost for exploratory demolition work related to a leak investigation.

Troon Pacific and Malin have been the subject of several lawsuits over claims of shoddy workmanship and fraud in the home sales process. This year, the company was ordered to pay back $48.1 million to investors who helped fund the renovation and sale of four luxury properties in the city. Only two of the homes were completed, while Malin and his company earned millions in fees.

Altman’s property made headlines last year when he told Time magazine that a coyote had taken up residence in his backyard, lounging on his patio furniture.

There’s been no word on whether the critter has taken a dip in the infinity pool.