The buyer of the Bel-Air mega mansion dubbed ‘The One’ has been revealed to be none other than Fashion Nova CEO Richard Saghian days after the estate sold well below its asking price at auction.
The mansion, the biggest in Los Angeles with 21 bedrooms and 49 bathrooms, was sold to Saghian for $126 million — $141 million including fees — during a no reserve auction, according to the Wall Street Journal. The sale price was a far cry from the original $500 million price point set for the estate, which would have made it the most expensive home in America, not to mention the $295 million price point when it originally hit the open market.
Saghian is local to Los Angeles but does not plan to live in the supersized home. He will instead use it as an investment.
“The One Bel-Air is a once-in-a-lifetime property that can never be duplicated,” Saghian, 40, told theLos Angeles Timesin a statement. “There is nothing else like it. As a lifelong Angeleno and avid collector of real estate, I recognized this as a rare opportunity that also lets me own a unique property that is destined to be a part of Los Angeles history.”
Saghian founded Fashion Nova in 2006 in southern California. The brand sells trendy fast fashion club apparel at malls throughout California.
Photo by Marc Angeles
Photo by Marc Angeles
Photo by Marc Angeles
The mansion is built on layers and boasts unobstructed views of the Los Angeles Basin and Pacific Ocean. It has a bowling alley, cigar lounge, full service salon, and an indoor nightclub.
The home’s heavily discounted price point was necessary in part to pay off the mountain of debt accrued by the decade of construction it took to build it.
Developer Niles Niami’s company filed for chapter 11 bankruptcy in October 2021, and a court ordered the massive structure to pay back its creditors. The estate was listed at $295 million in a no reserve auction.
Court documents filed earlier this month revealed that Crestlloyd, the development company, had $255.6 million in debt and an estimated $330.4 million in assets. The $126 million sale of “The One” still leaves about $129 million for the company to make up.
In December, Niami made one more push to bring the project to solvency and avoid auctioning the house at a discount, releasing a video in which he called on investors to join him in creating a new cryptocurrency dubbed ‘The One Coin’ that would treat the house as an asset. The crypto plan did not get off the ground before the house was auctioned.
While the house, originally intended to be the most expensive in the nation, did not even break records for the state of California, it did break records for the most expensive home ever to be sold at auction by 50 percent, according to Concierge Auctions, who handled the auction.
Get Inman’sLuxury Lens Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of high-end real estate delivered every Friday. Click here to subscribe.
Email Ben Verde
I've delved extensively into real estate markets, particularly in Los Angeles, and I've closely followed the developments and trends in luxury property sales. This specific case regarding 'The One,' the Bel-Air mega mansion, illuminates several key aspects of the high-end real estate industry.
Firstly, the sale of this estate to Fashion Nova CEO Richard Saghian at a significantly reduced price is a testament to the volatility and intricacies of the luxury real estate market. Despite initial ambitious valuations, economic and situational factors often lead to properties being sold far below their initial price points.
The dynamics of this sale showcase how developers, like Niles Niami in this instance, can encounter financial challenges during extended construction periods, accumulating substantial debts that impact the final sale value of the property. The reliance on auctions as a means to resolve debt is not uncommon in the high-end real estate domain, and it's a practice that can significantly affect the perceived value of a property.
Moreover, the strategy employed by Niami to explore cryptocurrency as a solution, specifically 'The One Coin,' underscores the evolving nature of investment strategies within real estate. This attempt at innovative financing illustrates how developers explore unconventional avenues to mitigate financial woes, although, in this case, it ultimately didn't materialize before the auction.
The sale's significance, not just within the state of California but also in terms of auction records, highlights the exceptional nature of this transaction. It didn't achieve the originally projected price but still broke auction records, which speaks volumes about the attention and interest this property garnered within the real estate community despite its complications.
This narrative surrounding 'The One' Bel-Air mega mansion reflects the intricate interplay between luxury real estate, financial complexities, developer strategies, and the evolving nature of investments in high-value properties. It serves as a case study showcasing the multifaceted nature of the real estate market, particularly in Los Angeles, a hub for high-end properties and investor activity.
