The back of the house opens onto a massive lawn surrounded by a moat-like body of water and a 400-foot treadmill just below it.
Mark Angelis
A mega estate in Los Angeles with an area of 105,000 square meters, which was declared for 295 million dollars, sold at an auction for bankruptcy for 141 million dollars, ending the 10-year saga of growing debts and failed dreams.
The auction for the property, known as “The One”, ended Thursday night with the highest bid of $ 126 million. Including the buyer’s premium, the final sale price will be $ 141 million, according to Laura Brady, chief executive of Concierge Auctions, which sold the home at auction.
The price makes it the third most expensive home ever sold in Los Angeles, after Mark Andreessen bought the Malibu complex for $ 177 million last year and Jeff Bezos bought the former Jack Warner property in Beverly Hills for $ 165 million.
The One is also the most expensive home ever auctioned in the United States and the world, far exceeding the $ 51 million price of a home auctioned last year in Beverly Park.
“It was a very competitive bidding process,” Brady said. “We had a strong field of candidates, with bidders from many countries.” Brady declined to comment on the buyer, which is expected to be revealed in the bankruptcy court in the coming days.
The One is set on 3.8 acres, with much of the residence surrounded by a moat-like body of water.
Mark Angelis
The sale completes, at least for now, one of the most controversial high-end real estate projects to date. It was built by Neil Niami, the charismatic and ambitious former Hollywood producer who turned to building some of the most luxurious mansions in Beverly Hills and Bel Air to sell them for a profit. When The One launched more than a decade ago, Neil Niami touted the property as his “life mission” and “the largest, most expensive home in the urban world,” with a possible asking price of $ 500 million.
Rising like a spaceship from the maintained hills of Bel Air, The One sits on 3.8 acres and has 21 bedrooms and 42 bathrooms. It has views of the Pacific Ocean, downtown Los Angeles and the San Gabriel Mountains. There are seven water facilities, including a massive moat that runs around the property. It features a nightclub, a full-service beauty salon, a 40-seat wellness spa, a 40-seat home cinema, a bowling alley, a 10,000-bottle wine cellar, a 30-car garage and a 400-meter private outdoor running track.
The formal dining room includes 20 seats and a large glass wine cellar to display large format bottles.
Mark Angelis
But as construction costs rose during construction, so did the problems. Niami’s debt rose to more than $ 190 million. Last year, the property was put under management and then went bankrupt. As part of a bankruptcy deal, it was announced for $ 295 million and put up for auction if no buyer appeared.
The cost of the hammer is about $ 60 million less than the total debt of the house, which means that several creditors may still lose money on the home. The biggest lender was Los Angeles-based mortgage mogul Don Hankey, who borrowed more than $ 125 million for the project. Those familiar with the sale said Hanki, who was able to use his loan to “lend”, was not the final buyer.
Developer Neil Niami (left) walks with Robert Frank of CNBC (right) during a 2017 interview with The One as the megadome is being built.
CNBC
Whoever buys The One will also have to contend with a thicket of potential improvements and legal issues. According to the receiver’s report and engineering study, the house has cracks in and around many of the pools and stonework, as well as traces of mold. There are several unfulfilled building and settlement permits, and a local landowners’ association is challenging its construction.
Real estate managers speculate that the buyer may be another developer who plans to improve and change the property, obtain the necessary permits and eventually resell it.
Niami could not be found immediately for comment on Thursday.