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$700 million mega-mansion enters foreclosure

·2-min read
Aerial view of palatial mansion in LA.
(Image: Society Group PR).

A Los Angeles mega-mansion projected to sell for US$500 million (AU$688 million) is now under receivership after its developer defaulted on more than US$100 million of loans.

The Bel Air property dubbed “The One” sprawls across over eight acres of land, with the property itself occupying 105,000 square feet overlooking the LA skyline.

The unfinished complex includes a spa, beauty salon, nightclub, gym, a moat, underground garage and six elevators. That’s in addition to a theatre, multiple infinity pools, yoga platform, golf simulator and 10,000-bottle wine cellar.

However, some amenities like a frozen room and jellyfish have been abandoned.

Developer Nile Niami borrowed more than US$80 million to build the home in 2018, according to the LA Times. That debt has grown to US$110 million in the last three years with lender Hankey Capital in March demanding its money back.

“We felt the owner of ‘The One’ was distracted from the job at hand, which is to bring the biggest and best house in the United States to market for sale,” Don Hankey, chairman of Hankey Investment Co told the Los Angeles Times in March.

“We hope our actions will kick off the official listing.”

Niami was given 90 days to pay back the loan, with failure potentially resulting in a forced sale of “The One”.

Aerial view of palatial mansion in LA.
(Image: Nile Niami Instagram).

The mansion has now been placed into receivership with Lanes Management’s Ted Lanes appointed receiver.

After finalising any outstanding construction and preparing the home for sale, Lane said he would “love” to see an “orderly sale that maximises the value”.

“Hopefully, there will be sufficient proceeds from the sale to fund the secured and unsecured creditors and for the equity to realize some value,” he told CNBC.

In a video posted to Instagram in June 2020, Niami said the home was 10 weeks away from completion and that it would become the “most expensive house in the urban world”.

If it were to sell for Niami’s hoped-for price, its value would exceed the GDP of some small nations including São Tomé and Príncipe, Micronesia and Tuvalu.

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