A decade in the making, mega-mansion developer Nile Niami’s dream of constructing “the One,” a 105,000-square-foot spec mansion on a five-acre parcel in Bel-Air, has been buried under $165 million in defaulted loans and debts, and will be sold to the highest bidder for what will likely be considerably less than Niami’s 2017 fantasy ask of $500 million.
As CNBC reports, the Paul McClean-designed behemoth (featuring 42 bathrooms, 21 bedrooms, a 5,500-square-foot master suite, a 30-car garage with two car-display turntables, a moat, a 400-foot jogging track, 360-degree views of L.A., and much more), has been put into receivership by Los Angeles County Superior Court and will hit the market at a deep discount as soon as its court-appointed receiver, Ted Lanes of Lanes Management, completes some final touches on the quarter-mile-long Stradella Road affair.
Chief among lenders who want their money back no matter how grand Niami’s personal Xanadu might have been is L.A. billionaire Don Hankey of Hankey Capital, which loaned Niami over $115 million and served him with a default notice in March. Other unhappy contributors to the One are Yogi Securities Holdings, which is in for over $36 million, along with Inferno Realty and Maybach Corporation Holdings, which forked over $7 million each. According to CNBC, the project is also about $1 million in debt to air conditioning, concrete, and tool companies.
Lanes will not take ownership of the property—which, for the record, is only the third biggest home in the U.S., sandwiched between Oheka Castle in New York (109,000 square feet) and Winterthur in Delaware (96,000 square feet)—and he certainly isn’t taking on that crippling debt. Instead, Lanes must now get the necessary permits to complete construction and secure a certificate of occupancy, after which he’ll unload the place to pay off the creditors and contractors.
Although Lanes has yet to determine the asking price or the timing of the sale, he says he hopes it will at least make the lenders and other unpaid parties whole.
“What I would love to see happen is that the house gets completed, the certificate of occupancy is awarded and we have an orderly sale that maximizes the value,” he tells CNBC. “Hopefully, there will be sufficient proceeds from the sale to fund the secured and unsecured creditors and for the equity to realize some value.”
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