The most expensive home in the nation, a Bel Air mega-mansion known as ‘The One,’ sold for only $126 million to a mystery buyer at a bankruptcy auction, less than half of its $295 million discount asking price as estate agents dubbed it a ‘white elephant’ and suggested the conflict in Ukraine deterred Russian buyers.
The Los Angeles property – which was originally for sale at $500 million and boasts five swimming pools, a 30-car garage, a bowling alley and more – set the record for costliest house sold in auction at $126 million, with an additional $15 million auction fee, on Thursday.
Concierge Auctions, which handled the sale, told the Los Angeles times that more than three dozen prospective buyers toured the home in the last couple of months, including billionaires from across the US, Middle East and Asia.
However, when the auction opened on Monday, only five bidders from the US and New Zealand made offers, with the winning buyer remaining unidentified until paperwork is submitted to a U.S. Bankruptcy Court next week.
Real estate agent Brent Change, of Compass, said the sale was cautionary tale of the mega-mansion market and said the Russian invasion of Ukraine last week might have deterred potential buyers.
‘The buyer pool for this is very small, and with everything happening in Russia, all of a sudden those Russian billionaires who may have been your best bet to buy it are pulling out,’ he told the LA Times.
The Bel Air mansion known as ‘The One’ sold for only $126 million at a bankruptcy auction on Thursday, less than half of the $295 million asking price, which was already cut down from its original price tag of $500 million
The mansion even possesses its own beauty salon, which boasts bright red walls and opaque shampoo stations
While most people would be happy with one pool, the Bel Air estate boasts five swimming pools
Other features of the home include a movie theatre, ‘philanthropy wing’ for charity galas, a nightclub, an outdoor running track, and a 4,000 square foot guest house
Nile Niami, 53, a Hollywood producer-turned-developer, started construction the home in 2013
Stephen Shapiro, founding partner of Westside Estate Agency, said the low price for the home reflected the ‘out-of-control ego’ of Nile Niami, 53, a Hollywood producer-turned-developer who started building the over-ambitious house in 2013 with the help of 600 contracted workers.
‘Most builders build a house that people can live in,’ Shapiro told the LA Times. ‘He built one thinking there was going to be demand for this outrageous over-the-top house.’
Niami hired renowned architect Paul McLean and interior designer Kathryn Rotondi to bring his vision to life on five acres in the hills overlooking Los Angeles, but cost overruns left him in massive debt to the tune of $180 million.
The sprawling complex houses 21 bedrooms, a bowling alley, private theater, a night club, multiple pools, a jacuzzi, a salon, a gym and an underground garage with two vehicle turntables.
Niami, known as ‘The King of LA mega-mansions,’ filed for Chapter 11 bankruptcy protection for his Crestlloyd company in October, after he defaulted on a $106 million debt owed to Hankey Capital.
The palatial estate was subsequently placed into receivership – a form of foreclosure – last year after being listed for $340 million in January of that year. At that point, the home was pulled from auction, after ten months on the market.
Following the foreclosure, the sale of the home was subsequently blocked until November 29. It finally made its return to the market on Friday – with its price slashed by $45 million.
Niami had been attempting to regain control of the property, making a failed bid in December to launch a cryptocurrency called ‘The One Coin’ to pay off the home’s debts.
Niami could not immediately be reached for comment. A spokesperson said he would not be commenting on the auction.
Developer Nile Niami was once known as the most successful mega-mansion developer in LA
Circular seating within a moat offers panoramic views of the mountains and forests
Estate agents suggested the conflict in Ukraine had deterred possible Russian billionaire buyers for the mega-mansion while others called it a warning of the instability of the mega-mansion market and ‘out of control ego’ of developer Nile Niami
An indoor bowling alley is yet another feature of the home, complete with digital score boards and lounge areas
The sprawling complex houses 21 bedrooms, a bowling alley, private theater, a night club, multiple pools, a jacuzzi, a salon, a gym and an underground garage with two vehicle turntables
A colorful glass sculpture stands erected outside the home, which took eight years to build
Insiders familiar with the court proceedings say it will have to sell for at least $200 million just to cover the costs
Don Hankey, owner of Hankey Capital, had accused Niami of growing too distracted to sell the home during the pandemic as the developer continued to propose new additions to the home, including scrapped plans to include a jellyfish tank.
Between April and August of 2020, Niami was cited five times by the City of Los Angeles for having illegal COVID parties at various houses. The complaints accounted for a third of all of the complaints in the city over that period.
Neighbors told DailyMail.com it was like living ‘in a nightclub’ and that maskless ‘punks’ were ferried to the homes on buses. Niami had denied holding the parties .
He had also proposed living in ‘The One’ and turning it into an entertainment venue for concerts and boxing matches. He had plans to turn the home into a film studio and commercial venue, using it to host new Netflix shows and start-up companies.
The sale set the record for costliest house sold in auction at $126 million, with an additional $15 million auction fee
A 105,000-square-foot mega-mansion is still not finished and needs to be granted permits by the city
The home was built by Hollywood producer-turned-developer Nile Niami, 53 in 2013 with the help of 600 contracted workers
Working from home won’t be a problem at The One, where office space is plentiful
The ex-Hollywood exec reportedly was convinced he could secure an asking price of $500 million for the impressive estate
Hankey, a billionaire who serves as the CEO of the Hankey Group, said he wanted to recoup the millions he invested in Niami’s The One mansion development
Hankey rejected Niami’s ideas and said the sale of the home should allow him to recover the cash he put into the project, adding that he was ultimately surprised at how low the final price was.
‘The guy who bought it just got a great deal,’ Hankey told the LA Times. ‘He’s got people willing to pay $50,000 a day just to do commercials and films.’
According to court documents, the home is not complete and lacks a certificate of occupancy and sign-off from city inspectors on permits for grading, electrical and other work. The LA Times also reported that the mega-mansion could have construction defects and zoning code violations.
Under the terms of the auction, the winning bidder will close the sale by the end of March or lose a $250,000 deposit. A bankruptcy charge will finalize the sale.
NILE NIAMI, THE FORMER KING OF THE LA MEGA-MANSIONS WHO SOLD HOMES TO P. DIDDY, THE WINKLEVOSS TWINS AND FLOYD MAYWEATHER
Nile Niami, 53, whose net worth is estimated at $6 billion, made name for himself producing more than a dozen B-movies before moving into the home development game.
He bought the property for ‘The One’ in Bel Air in 2012, along with three other mansions, two of which were in Holmby Hills.
His first sale came that year when he sold the mansion on Sunset Boulevard for $18 million to the Winklevoss twins, known for their battle against Mark Zuckerberg for ownership of Facebook.
Niami then successfully built and sold both Holmby Hills homes in 2014.
One of the homes, which he purchased for nearly $14 million, was sold to rapper P. Diddy, Sean Combs, for $39 million.
The other was sold to a Saudi buyer for $44 million. The home is currently owned by Jordan billionaire Hassan Ismaik and valued at nearly $65 million.
Nile Niami made a name for himself as ‘The King of LA mega-mansion’ as he sold homes to P. Diddy, the Winklevoss twins and Floyd Mayweather.
By 2016, he went on to sell a Beverly Hills mansion for $38.27 million to billion Brian Sheth, co-founder of Vista Equity Partners.
Then in 2017, he sold a renovated Beverly Hills mansion to boxer Floyd Mayweather for $26 million.
The sales had dubbed him ‘The King of LA mega-mansions.’
Despite the impressive record on paper, Niami was still working on ‘The One,’ which he said would be his magnum opus.
Lenders to the project, however, were getting impatient with the length of the project as Niami continued to make additions to the already sprawling project.
He had hired renowned architect Paul McLean and interior designer Kathryn Rotondi to bring his vision to life on five acres in the hills overlooking Los Angeles, but cost overruns left him in massive debt to the tune of $180 million.
In 2020, principal lender Don Hankey, billionaire owner of Hankey Capital, pushed Niami to sell the home, but the developer refused multiple offers, including a $50 million bid by Chinese mobile gaming billionaire William Ding.
He then accused Niami of growing too distracted to sell the home during the pandemic while Niami was offering to live in the home and rent out parts of it for event and filming.
Between April and August of 2020, Niami was cited five times by the City of Los Angeles for having illegal COVID parties at various houses.
The complaints accounted for a third of all of the complaints in the city over that period.
Niami then filed Chapter 11 bankruptcy protection for his Crestlloyd company in October, after he defaulted on a $106 million debt owed to Hankey Capital.
A spokesperson for Niami said he would not comment on the sale of ‘The One’ in the bankruptcy auction.
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Read more at DailyMail.co.uk