A United States Bankruptcy Court has approved the sale of a mega-mansion in Bel Air, commonly known as “The One”, for $126 million to Richard Saghian, the chief executive of Fashion Nova. While the sale price is shocking at first glance, it falls far short of the $500 million price tag previously put on the property and the more recent list price of $295 million. It also falls short of the $256 million in debt that was attached to the property, making it a costly short sale for many lenders.
The home was a dream project of developer Nile Niami, who purchased the land in December of 2012. Development has stalled over the past several years, resulting in billionaire Don Hankey foreclosing on his $106 million loan in October of last year. Although Mr. Hankey has supported the sale and will recover much of his loan, which has ballooned to about $132 million, other lenders objected to the process and timing of the auction sale, arguing in part that the war in Ukraine deterred several potential buyers in a limited buyer-pool. However, Judge Deborah Saltzman, the judge overseeing the bankruptcy proceedings for the entity that owns the process, found that the sale should proceed despite the disappointing sale price.
The property contains 105,000 square feet, including 21 bedrooms and 49 bathrooms. The ultra-luxurious features of the home are too many to list – expansive views of all of Los Angeles and the ocean, a running track, unique pieces of art built into the home, a nightclub, a 50-car garage, a theatre, bowling alley, five swimming pools, six elevators, two wine cellars, and more. The first part of a two-part video tour, including an interview with developer Nile Niami, can be found here. The website for the property, which includes photos and more, can be found here.
While the sale price of the home is staggering, it is not record-setting. The record residential sale in California is held by venture capitalist Marc Andreessen, who purchased a Malibu estate for $177 million. The record sale in the United States was set when a New York City penthouse sold for $238 million. Internationally, several sales have broken the $300 million mark.
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