Most expensive home in US could go up for auction in January for $250M
America’s most expensive home – 105,000sq-ft Bel Air estate dubbed ‘The One’ – could go up for auction in January for $250M – HALF of what it originally asked – after it was placed in bankruptcy protection
- Developer Nile Niami said he plans on hiring two luxury home sellers to list the 105,000-square-foot Bel Air mega mansion dubbed ‘The One’ for $250 million
- The Bel Air home was poised to be the most expensive home sold in US – with a price tag of $500M – before Niami filed for bankruptcy and stopped the sale due to a dispute between him and lender Hankey Capital
- It was placed in bankruptcy amid spat between ‘King of LA mega-mansion developer – Niami’s Crestlloyd – and billionaire lender Don Hankey, of Hankey Capital
- Niami bought The One in 2012 and has spent the last nine years promising to build the grandest home in the country and flip it for a profit, but he could not finish the construction or find a buyer since it went on sale
- The home was placed in receivership in July as investors attempted to recoup costs after Niami defaulted on his over $100 million debt
- Lawrence Perkins, a turnaround specialist at SierraConstellation Partners, told the bankruptcy court that the home’s developer Crestlloyd had no plans to employ anyone, so it would most likely be sold as is
- Perkins told the court that Crestlloyd is working with real estate agent Aaron Kirman of Compass and brokerage Williams & Williams Estates Group to market and list the home
America’s most expensive home could go up for auction in January for $250 million, half of what was asked for when it was placed in bankruptcy protection.
Developers say they plan on hiring two luxury home sellers to list the 105,000 square-feet Bel Air mega mansion dubbed ‘The One’ for $250 million, the Los Angeles Times reported.
‘We’re still going back and forth, strategically speaking, but we anticipate that the listing price will be approximately $250 million,’ Crestlloyd manager Lawrence Perkins told the court. ‘Our goal is to run a thoughtful sale process to maximize the value from the small group of people in the world that can buy a property like this.’
The Bel Air mega-mansion was poised to be the most expensive home sold in America – with a cool $500 million price tag – before developer Nile Niami filed for bankruptcy and stopped the sale in October due to a dispute between him and lender Hankey Capital, which belongs to billionaire Don Hankey.
Niami, who is known as ‘The King of LA mega-mansions,’ filed for Chapter 11 bankruptcy protection for his Crestlloyd company after he defaulted on a $106 million debt owed to Hankey Capital.
‘The One’ mansion in Bel Air, California, would have been the most expensive mansion sold in America at an estimated $500 million. The home’s developer, Crestlloyd, filed for bankruptcy
Developer Nile Niami said he plans on hiring two luxury home sellers to list the 105,000 square-feet Bel Air mega mansion dubbed ‘The One’ for $250 million
The floating lounge next to the private nightclub at ‘The One’ Bel Air mega mansion, set to go up for auction in January
A view of the dining room with 10,000 bottle wine cellar at ‘The One’- a 105,000 square-foot mega mansion in Bel Air
Niami bought ‘The One’ in 2012 and has spent the last nine years promising to build the grandest home in the U.S. and flip it for a profit, but he could not finish the construction nor find a buyer since it went on sale in January.
The project for the nine-bedroom estate was originally slated to be finished in 2017, but the construction has been set back by a series of financing and building problems, including scrapped plans to include a jellyfish tank.
The estate includes a bowling alley, private theater, a night club, multiple pools, a jacuzzi, a salon, a gym and an underground garage with two auto turntables.
The mansion was planned to have at least 20 bedrooms.
Nile Niami, right, defaulted on a $106 million debt owned to billionaire Don Hankey, of Hankey Capital. Hankey has pushed for the home to be sold on a LA County auction
An exterior view of The One Bel Air, a 105,000-square-foot mansion with a sky deck and putting green, night club, several swimming pools, a 50-seat theater, a four-lane bowling alley and more
An aerial view of the guest house and space for a tennis court at the 105,000 square-feet Bel Air mega mansion ‘The One’
The family living room inside the nine-bedroom Bel-Air estate that was originally slated to be finished in 2017, but the construction has been set back by a series of financing and building problems
An exterior view of a sculpture by Simone Cenedese at ‘The One’- the Bel Air mansion that was poised to be the most expensive home sold in America
The home was placed in receivership in September as investors attempted to recoup costs after Niami defaulted on his over $100 million debt.
The Los Angeles County Superior Court named Ted Lanes, of Lanes Management, as the receiver to prepare the 8-acre property for sale once all the permits were granted.
According to the Los Angeles Times, Lanes said it may cost $10 million and up to a year to repair and finish the uncompleted home.
But Perkins, a turnaround specialist at SierraConstellation Partners, told the Bankruptcy Court that Crestlloyd had no plans to employ anyone, so the home would most likely be sold in it’s current condition.
Perkins told the Times that the change of plans came after consulting with real estate experts who said it would make no sense to spend money to complete the home when a buyer would most likely personalize it anyway.
‘The juice isn’t worth the squeeze to finish it, because someone’s just going to have to redo a lot of the work anyway,’ he told The Times.
Perkins told the court that Crestlloyd is working with real estate agent Aaron Kirman of Compass and brokerage Williams & Williams Estates Group to market and list the home, the Times reported.
Perkins said if a buyer was willing to pay a ‘super-premium’ price for the property and the auction would be forced to be called off that would be a ‘happy surprise.’
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
Developer Nile Niami (pictured) was once known as the most successful mega-mansion developer in LA
A view of the womens walk-in closet in the 4,000-square master bedroom with private pool at ‘The One’
A view of a 50-seat theater at ‘The One’ Bel Air mansion that is set to go up for auction after it was placed in bankruptcy protection
A view of the library with balcony at ‘The One’ purchased by Niami in 2012 who has spent the last nine years promising to build the grandest home in the U.S. and flip it for a profit
An interior view of guest house at The One Bel Air, which is set to go up for auction in January for $250 million
Perkins told the Times that his goal is to list the home and schedule an auction to prevent multipole buyers from turning down the home.
‘What we don’t want it to do is drag on and on,’ he said.
Hankey has claimed Niami had grown too distracted to sell the home during the pandemic.
Between April and August of last year, 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 and said he was cooperating with the city.
This spring, after Niami defaulted on his debt to Hankey, he proposed living in The One and turning it into an entertainment venue for concerts and boxing matches.
The home was expected to sale for $164 million at a LA County Superior Court auction
The unfinished mansion has its own bowling alley
Niami had plans to rent the some spaces of the home off as an entertainment venue
Niami even had plans to turn the home into a film studio and commercial venue, using it to host new Netflix shows and start-up companies.
Hankey turned down the plan.
Hankey and several other lenders, who are owed tens of millions of dollars, went on to court claiming they weren’t being paid what they were owed, and the home was eventually placed in a receivership in September to sell the it and recoup the lenders’ losses.
However, Niami and Crestlloyd complained that the receiver, Ted Lanes, was undervaluing the home, which was expected to be sold for only $164 million in an October 17 auction, Bloomberg reported.
Crestlloyd ‘believes that the receiver has hampered efforts to complete the property, as well as to market, show, and sell the property in its current state,’ the company said in its bankruptcy filing.
Although a sale for the home was approved with two brokers at $225 million, Hankey decided to push for the auction sale instead, prompting fellow lender Joseph Englanoff to seek a temporary restraining order to block the auction.
Englanoff, whose Yogi Securities Holdings lent Crestlloyd $30.2 million in 2018, accused Hankey of trying to take ownership of the mansion through the auction or of possibly trying to take all the proceeds for himself if it was sold.
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