A Los Angeles mega-mansion that was the biggest U.S. home to ever go up for auction sold for $141 million, including commissions, when bidding closed Thursday.
The 21-bedroom, 49-bath hilltop estate — dubbed “The One” — had a list price of $295 million. Developer Nile Niami said in 2015 that he would ask$500 millionfor the Bel Air property, which also has five swimming pools and a 30-car garage.
The highest offer was $126 million, according to a spokesperson for Concierge Auctions, which ran the sale. A 12% commission for the auction house boosted the total price to $141 million — more than double the previous record for a U.S. home auction, the company said in a statement.
Other auctions of luxury properties have fallen short of asking prices. TheVilla Firenzein Beverly Hills, Calif., fetched $51 million last year after Concierge Auctions conducted a sale with a$160 million asking price.
The identity of the top bidder, who was required to sign a non-disclosure agreement, wasn’t immediately available. The sale requires approval by a bankruptcy court judge, with a closing scheduled by Mar. 21, according to a court filing.
“I think the court should approve the amount,” Don Hankey, who court records show is owed $124 million for loans and advances to the project, said in an email. Hankey said he wasn’t the high bidder, but declined to say whether he entered the auction.
Niami, a former film producer, spent almost a decade developing The One before lenders moved to foreclose on the project. That led his firm, Crestlloyd LLC, to file for bankruptcy last year, setting up theauction. The project has $196.4 million in secured debt and $59.3 million in unsecured debt, according to a March 2 filing by David Golubchik, the bankruptcy attorney representing Crestlloyd.
More than 40 potential buyers toured the property, including representatives of Middle Eastern royalty, Asian high-net-worth families and U.S. tech titans.
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As a real estate enthusiast with a deep understanding of the luxury property market, I bring to you a wealth of knowledge and expertise in the realm of high-end real estate transactions. My experience extends to a comprehensive understanding of the factors that contribute to the success or challenges faced in such transactions, including legal intricacies, market dynamics, and the unique elements that make a property stand out in this exclusive sector.
Now, let's delve into the details of the article concerning the record-breaking auction sale of "The One," a mega-mansion in Los Angeles.
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Property Overview:
- The mansion, known as "The One," is a colossal estate situated in Bel Air, Los Angeles.
- Boasting 21 bedrooms, 49 bathrooms, five swimming pools, and a 30-car garage, it represents the epitome of luxury living.
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Listing and Previous Valuations:
- Initially, in 2015, developer Nile Niami had ambitious plans, stating he would ask $500 million for the property.
- The mansion was listed for auction with a more modest price of $295 million, significantly lower than the initial projection.
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Auction Details:
- The auction was facilitated by Concierge Auctions, a prominent player in the luxury real estate auction market.
- Despite the property's grandeur, the highest offer during the auction was $126 million.
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Final Sale Price and Commission:
- The final sale price, including a 12% commission for Concierge Auctions, amounted to an impressive $141 million.
- This figure marks a record for the highest amount ever paid for a U.S. home in an auction, more than doubling the previous record.
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Comparison with Other Auctions:
- The article references the sale of "The Villa Firenze" in Beverly Hills, which, despite an asking price of $160 million, sold for $51 million last year.
- This comparison highlights the variability in auction outcomes for luxury properties.
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Top Bidder and Approval Process:
- The identity of the top bidder remains undisclosed due to a non-disclosure agreement.
- The sale is subject to approval by a bankruptcy court judge, and the closing is scheduled for Mar. 21, as per court filings.
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Background and Bankruptcy:
- Developer Nile Niami, a former film producer, spent nearly a decade developing "The One" before facing foreclosure.
- Crestlloyd LLC, Niami's firm, filed for bankruptcy, leading to the auction.
- The bankruptcy filing reveals $196.4 million in secured debt and $59.3 million in unsecured debt associated with the project.
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Potential Buyers:
- Over 40 potential buyers, including representatives of Middle Eastern royalty, Asian high-net-worth families, and U.S. tech titans, toured the property.
In conclusion, the sale of "The One" not only sets a new benchmark for U.S. home auctions but also underscores the complexities and challenges that can accompany even the most extravagant real estate transactions. The diverse pool of potential buyers reflects the global allure of such luxury properties, making them a unique and captivating segment within the real estate market.