The discount on this mansion could buy whole neighborhoods.
A roughly 105,000-square-foot Los Angeles property, named “the One,” is billed in its marketing materials as “a masterpiece of an estate that truly redefines luxury” — with “every imaginable amenity” and a piece of real estate that’s the “first and last of its kind.”
But this Bel-Air behemoth, which once aimed to hit the market for a record $500 million, sold at a no-reserve auction Thursday for $126 million — or about $141 million when including the premium — according to a release from Concierge Auctions, which handled the sale.
“In only 55 days, we secured a strong field of global interest from America to Europe, Asia, and The Middle East, doing exactly what we do best — finding the most affluent buyers from every pocket of the world,” said Chad Roffers, Concierge Auctions’ president, in the release.
The buyers, who ultimately received a staggering 112% fall-from-grace discount for the much-hyped mansion, are actually local Angelenos who won’t live there, but will use the spread as an investment property, according to the Wall Street Journal, which broke news of the sale.
The One saw some 40 showings and a total of five bidders who took part in the auction.
Developed by Nile Niami, who didn’t respond to The Post’s request for comment on the deal, the One has no fewer than 21 bedrooms, 42 full bathrooms, seven powder rooms — and stands on roughly 4 acres of land with 360-degree views of the Pacific Ocean, downtown LA and the San Gabriel Mountains. Other amenities include a 30-car garage, five swimming pools, a beauty salon and a 400-foot private running track.
Originally, it was set to list in 2017 for that mighty $500 million asking price — with other amenities to include a since-scrapped jellyfish aquarium — but issues ultimately mounted. The Journal notes Niami ran afoul of lenders, and one prompted to file a foreclosure auction on the One last June. Last October, Niami put the mansion into Chapter 11 bankruptcy, which paused the foreclosure sale and gave him the chance to secure his own buyer. (A bankruptcy court judge is slated to review the sale sometime next week to choose whether it should be approved.)
Its outstanding debts reached some $190 million, according to Lawrence Perkins, who manages Crestlloyd, LLC, which is the company through which Niami and his ex-wife, Yvonne, had owned the home. Perkins told the Journal he hoped the final sale figure would surpass the value of the outstanding loans, saying “you never really know until you know.”
The One listed most recently for sale asking $295 million, represented by Rayni and Branden Williams, of The Beverly Hills Estates — and Aaron Kirman, of Compass. The brokers aimed to nab north of $200 million. Finding a buyer was difficult, reportedly due in part to alleged construction defects, according to court records cited by the Journal — such as cracks and staining along the lion’s share of some 30,000 square feet of white marble flooring. Moreover, the One doesn’t yet have a certificate of occupancy, which means the new owners still can’t live there, or have any tenants reside there.
Construction has lasted for about 10 years, and while some issues have been resolved, new ownership will need to handle the rest. Perkins told the Journal that, as it stands, the One looks as good as it can.
But despite the current repairs and the fact the home has finally sold, the One had long been a nightmare for neighbors, to the degree that they changed the local building code.
“It’s one of the ugliest homes I’ve ever seen,” a broker who toured the One previously told The Post. “Only someone with terrible taste who wants to scream to the world that they’re rich [would buy it], and even then, I’m not so sure.”
As a real estate expert with a deep understanding of the luxury property market, I can shed light on the intricacies of the mansion known as "the One" in Los Angeles. The details surrounding the sale of this colossal property reveal a fascinating story of grandeur, financial challenges, and architectural controversies.
The mansion, spanning approximately 105,000 square feet, was initially marketed as a groundbreaking estate redefining luxury. Developed by Nile Niami, it boasts an impressive 21 bedrooms, 42 full bathrooms, seven powder rooms, and sits on about 4 acres of land, offering panoramic views of the Pacific Ocean, downtown LA, and the San Gabriel Mountains. The extensive list of amenities includes a 30-car garage, five swimming pools, a beauty salon, and a 400-foot private running track.
Despite its ambitious features, the property faced numerous setbacks, leading to a significant discount from its original asking price of $500 million. The recent no-reserve auction managed by Concierge Auctions resulted in a sale price of $126 million, or approximately $141 million when factoring in the premium. This equates to a staggering 112% fall-from-grace discount for the mansion.
The buyers, interestingly, are local Angelenos who reportedly plan to use the property as an investment rather than a residence. The auction attracted a global audience, with interest from America, Europe, Asia, and the Middle East.
The challenges faced by the One include financial troubles for Nile Niami, who ran afoul of lenders and faced foreclosure. The property was put into Chapter 11 bankruptcy in October, allowing Niami to seek his own buyer and potentially surpass the outstanding debts, which had reached around $190 million. A bankruptcy court judge is set to review the sale to determine its approval.
The property's recent listing price was $295 million, but the final sale figure fell significantly short of this amount. Brokers representing the property had difficulties finding a buyer, attributed in part to alleged construction defects, including cracks and staining on the extensive marble flooring. Additionally, the lack of a certificate of occupancy means that the new owners cannot yet live in or rent out the mansion.
The One's construction, spanning about a decade, has been a source of contention among neighbors, leading to changes in the local building code. The property's aesthetics have been criticized, with one broker describing it as "one of the ugliest homes" and suggesting that only someone with "terrible taste" would buy it.
In conclusion, the sale of "the One" reflects a captivating saga of opulence, financial struggles, and architectural challenges, offering a glimpse into the complexities of the high-end real estate market in Los Angeles.
