Once expected to sell for roughly $500 million, a large mansion in Los Angeles will now sell for a mere fraction of that amount after defaulting on hundreds of millions of dollars in loans.
Court filings show the 105-square-foot estate in Bel Air went into receivership, forcing the property to list for sale at a lower price. CNBC reported that developer Nile Niami and his company had borrowed an estimated $165 million to construct and market the property.
Nicknamed “The One,” developer Nile Niami called the mansion his “life mission” and called it “the most expensive home in the urban world.” It boasts several kitchens, a nightclub, a bowling alley, and a gym. Nine bedrooms include a 4,000-square-foot master suite.
Underground, there’s a 50-car garage; that's enough spaces for everyone you invite to the 50-seat movie theater. A moat surrounds the compound, with more than a handful of water features, including a couple of pools.
The developer encountered multiple delays and financial funding pitfalls. First, it forced Niami to scrap plans for a “jellyfish room” and ice bar in the home. Now, it’s caused a receiver to sell at a lower price — something dozens of homes built during a luxury boom have had to do.
“There’s a lot of people out there with a lot of money. They want something no one else can have. This is it,” Niami declared in a 2017 interview with CNBC.
Additionally, the financial news outlet noted that the home has racked up more than $1 million in unpaid taxes and other debts.
The Los Angeles County Superior Court placed the property into receivership in July, turning it over to someone appointed by the court to sell the home to pay off lenders.
According to receiver Ted Lanes, the new price tag on “The One” has not been determined.
“Hopefully, there will be sufficient proceeds from the sale to fund the secured and unsecured creditors and for the equity to realize some value,” Lanes told CNBC.
Niami went bankrupt on his West Hollywood home and a development project in Beverly Hills last year. He had marketed the latter at $100 million, but it sold for just $38 million.
To date, Jeff Bezos has purchased the priciest home ever sold in Los Angeles. The historic, 9.4-acre former Jack Warner Estate in Beverly Hills sold for $165 million in February 2020.