The most expensive house in the USA will be sold three times cheaper due to the owner's debt

The most expensive home in America is up for sale at three times its market value due to the insolvency of its owner. The house was confiscated from him on a debt of $ 165 million, reports CNBC.

Photo: Shutterstock

According to court records, the Los Angeles mega-mansion, which was supposed to cost $ 500 million, was outsourced after the owner defaulted on more than $ 165 million in loans and debts.

The 9 square meter Bel Air estate, known as The One, has been transferred to the admissions office and is expected to be re-listed for sale at a lower price.

Transmission property rights due to debts was nightmare for The One and its flamboyant property developer Neil Niami, who has often touted the property as his "mission to life" and as "the largest and most expensive home in urban urbanism."

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The Bel Air estate has been handed over to the Los Angeles County Supreme Court and is expected to be listed for sale at a lower price in the coming months.

The $ 2017 million market launch in 500 was expected to be successful. But The One was plagued by repeated delays, funding problems and policy changes. The house is positioned as an ultra-modern palace on 3 hectares of land on top of a hill overlooking Los Angeles. It has nine bedrooms, several kitchens, a nightclub, a four-lane bowling alley, a living room, a gym, a 50-seat theater, a treadmill and an underground garage for 50 cars with two rotating car platforms. Water features include several pools, a jacuzzi and a moat that surrounds the house. The master bedroom is 370 square meters. Every door in the house is electric, as are all toilets. Niami planned to create an ice bar, but it turned out to be too expensive.

“There are a lot of people with a lot of money - they want something that no one else can have,” Niami said in 2017. - That's all".

Still, The One was one of dozens of mansions to sprout in Bel Air and Beverly Hills after 2014, when fashion mogul Bruce Makovsky sold his Beverly Hills mansion for $ 70 million and opened a new real estate site. in California. Golden fever. The building boom—an arms race of infinity pools, elaborate walls, car galleries and party rooms—has led to a glut of real estate. Many megahomes in Los Angeles, including several built by Niami, ended up selling for much less than their asking price.

Photo: Shutterstock

Even as prices fell, Niami piled up debt to complete and promote The One. Over the past four years, Niami and its associated LLC Crestlloyd have borrowed more than $ 165 million to build and sell The One, according to property records.

The largest lender is Hankey Capital, founded by Los Angeles billionaire Don Hankey, which has more than $115 million in loans. Yogi Securities Holdings, led by doctor-turned-real estate investor Joseph Englanoff, lent The One more than $36 million. Two other companies, Inferno Realty and Maybach Corporation Holdings, provided $7 million in loans each.

The One also has over $ 1 million in unpaid taxes and debts from concrete, air conditioning and tool companies.

In March, Hankey served Niami with a default notice. In July, the Los Angeles County Supreme Court ruled to hand over the property and appointed Ted Lanes of Lanes Management as the recipient. As part of the bankruptcy procedure, property that has not fulfilled its obligations is transferred to a court-appointed manager who prepares the property for sale.

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Rather than taking on ownership and liabilities, which can increase risks and delays, the recipient obtains the necessary permits, completes all necessary construction work, draws up a list of creditors and prepares the house for sale in order to pay off the creditors. The bankruptcy procedure also provides for a notice period when creditors and contractors who have not been paid can present their case.

“I would like to see the house completed, a certificate of occupancy issued, and we have an organized sale that maximizes value,” he said. “It is my hope that the proceeds from the sale will be sufficient to fund secured and unsecured creditors and to realize some capital value.”

Niami has promoted The One for many years, giving interviews and photographs in the media, and organized a special YouTube video tour in April for Michael Blakey, who touted the "$ 500 million property" as "the largest and most expensive home in the world. ". Nyami also talked about plans to turn the home into a media space and business venture, using it to host potential Netflix shows, events, and start-ups.

Last year, Niami filed for bankruptcy on his West Hollywood home and the Beverly Hills mansion he wanted to sell for $ 100 million but was sold for $ 38 million to Anglanoff, who was one of the California property's lenders.

Niami had a quotation agreement The One with Los Angeles-based brokers Aaron Kirman, Rainey and Branden Williams of the Williams & Williams Estates Group. Lanes said the plan for quotations was to sell the property for $ 288 million, but the final price has not yet been set.

It is unclear if the property will sell for a high enough price to pay off the entire debt. The most expensive home ever sold in Los Angeles was the former Warner Estate in Beverly Hills, sold to Jeff Bezos last year for $ 165 million. While the Los Angeles real estate market has recovered from the Covid, especially in the high-end segment, The One will be difficult to sell at its asking price.

“This is not an easy property to value,” Lanes said. “She is truly unique.”

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