The Dragon Tower Ruin
The Dragon Tower was so-named because the top of the tower was shaped to resemble a rampant dragon, complete with smoke coming out of its nostrils and mouth from the chimneys within.
The tower was built and once owned by the wizard Lhoril. There, she taught several apprentices until one turned on her and summoned a demon to murder her in an alley. It passed hands and eventually came to be owned by Maaril, the Dragon Mage, who was known to known to ride a dragon out of the tower's mouth.
The magic in the tower practically detonated in the late 14th century, sending the the top of the building hurtling into the air above Waterdeep then raining down in a thousand pieces. To this day, the grounds are still magically tumultuous, with a Watch warning posted with a command to keep out. Only rough wooden boarding is used to cover over gaping portions of the old wall, though, and those with a mind to enter it can do so easily.
Rumors say that the tower still contains enchanted guardians trapped by Maaril. The lower levels are also said to contain magical pools that could confer magical powers or dissolve flesh and bone instantly. It was also rumored that some of Maaril's apprentices had been drained of life by magic in the explosion and turned into wraiths to roam the tower's interior.