Published Thu, Mar 3 2022 11:42 PM ESTUpdated Fri, Mar 4 2022 7:07 AM EST
 The rear of the home opens to a massive lawn framed by a moat-like water feature and a 400 ft. running track just below it. Marc Angeles A 105,000-square-foot Los Angeles megamansion that was listed for $295 million sold at a bankruptcy auction for $141 million, ending a 10-year saga of soaring debt and failed dreams. The auction for the property, known as "The One," ended Thursday night with the highest bid at $126 million. Including the buyer's premium, the final sale price will be $141 million, according to Laura Brady, CEO of Concierge Auctions, which auctioned the home. The price makes it the third-most expensive home ever sold in Los Angeles, behind Marc Andreessen's $177 million purchase last year of a Malibu compound and Jeff Bezos' purchase of the former Jack Warner Estate in Beverly Hills for $165 million. The One is also the most expensive home ever sold at auction in the U.S. and the world — far surpassing the $51 million price for a home auctioned last year in Beverly Park. "It was a very competitive bidding process," Brady said. "We had a strong field of bidders, with bidders from multiple countries." Brady declined to comment on the buyer, who is expected to be revealed to the bankruptcy court in the coming days. "The One" is situated on 3.8 acres with much of the residence surrounded by a moat-like water feature. Marc Angeles The sale brings to a close, at least for now, one of the most controversial high-end real estate projects ever. It was built by Nile Niami, the charismatic and ambitious former Hollywood producer who turned to building some of the most lavish mansions in Beverly Hills and Bel Air to sell for profit. When he started The One more than a decade ago, Niami, touted the property as his "life mission" and "the biggest, most expensive home in the urban world," with an eventual asking price of $500 million. Rising like a spaceship from the manicured hills of Bel Air, The One sits on 3.8 acres and features 21 bedrooms and 42 bathrooms. It has views of the Pacific Ocean, downtown Los Angeles and the San Gabriel Mountains. It has seven water features, including a massive moat that runs around the property. It has a nightclub, a full-service beauty salon, a wellness spa, a home theater that seats 40, a bowling alley, a 10,000-bottle wine cellar, 30-car garage and a 400-foot private outdoor running track. The formal dining room includes seating for 20 and an over-sized glass wine cellar for displaying large-format bottles. Marc Angeles Yet as building costs soared during construction, so did the problems. Niami's debt grew to more than $190 million. The property was placed into receivership last year and then went into bankruptcy. As part of a bankruptcy agreement, it was listed for $295 million and, if no buyer emerged, put up for auction. The hammer price is about $60 million less than the total debt on the house, meaning several lenders may still end up losing money on the home. The biggest lender was Los Angeles subprime lending magnate Don Hankey, who loaned more than $125 million to the project. People familiar with the sale said Hankey, who could have used his loan to "credit bid," was not the final buyer. Developer Nile Niami (left) walks with CNBC's Robert Frank (right) during a 2017 interview at "The One" while the megahome was under construction. CNBC Whoever purchased The One will also have to contend with a thicket of potential improvement and legal issues. According to the receiver's report and an engineering study, the house has cracks in and around many of the pools and stonework, as well as signs of mold. It has several outstanding building and occupancy permits, and a local homeowner's association is challenging its construction. Real estate executives speculate that the buyer may be another developer who plans to improve and change the property, get the proper permits and eventually resell it. Niami couldn't immediately be reached for comment Thursday. Published Wed, Sep 1 2021 1:09 PM EDTUpdated Wed, Sep 1 2021 3:00 PM EDT
The exterior of the Gloria Crest Estate located in Englewood Cliffs, New Jersey. LuxQue Media / Mike Aghachi A mansion once hailed as one of the most expensive homes for sale in New Jersey has seen its price drop like a ton of bricks. Back in 2013, the 28-room estate at 83 North Woodland St. in Englewood, New Jersey, known as the Gloria Crest Estate, hit the market with a $39 million price tag. The property's name harkens back to its original owners in the 1920s, but soon after it was built, the extravagant ivory-colored home was dubbed the White House of Englewood. The guilded entry way includes ornate columns, gold trim and a double staircase. LuxQue Media / Mike Aghachi In the eight years following its debut at $39 million, public records show, the almost 100-year-old mansion located in Bergen County saw its jumbo price tag chopped down to size in a series of massive price reductions. In 2014, after a year on the market, the price was reduced to $25 million. The price cuts continued over the next couple of years and by 2017 it was down to $17 million. Then in February of 2018, court records show the property was foreclosed upon when the owners defaulted on a $7.3 million mortgage by U.S. Bank. It was briefly taken off the market until June 2018, when it was put up for sale again, this time for $12 million under a new listing agent. Then from 2019 to 2021, the listing was represented by yet another broker and the price got hacked six more times, falling from $9.99 million down to $5.99 million. The owner's suite includes a spiral staircase that leads up to an office one level above. LuxQue Media / Mike Aghachi Over those same eight years, the property went through at least four listing agents. The most recent real estate broker to represent the home was Michelle Pais, CEO of Signature Realty NJ. It was Pais' listing through the last six price cuts — before she finally got it sold. "A home is worth a what a buyer is willing to pay for it," Pais told CNBC. "What a buyer wants and what an appraiser says is irrelevant, and that goes for any home." Last month a buyer, who Pais isn't at liberty to name, was willing to pay $4.6 million for the mansion and the almost 5 acres it sits on. The closing price was a whopping 88% discount from its original asking price and wasn't even enough to cover the 2018 loan default. A sitting area and stone fireplace in one of the home's 28 rooms. LuxQue Media / Mike Aghachi According to floor plans, the home has about 15,000 interior square feet across four levels, putting the mansion's price per square at about $300. That's 34% lower than the $436 average price per square foot seen in Englewood's August home sales data, according to Redfin. So why did the price of the fancy White House plummet? Pais offers her insight. While she appreciated the home's history and its architecture, which dates to 1926, some potential buyers did not. And for those who were fans of the home's Mediterranean-villa inspired exterior and the ornate details inside, there were other issues. The grand entryway includes ornate trim and double height ceilings. LuxQue Media / Mike Aghachi "A $163,000 tax bill and the place was in need of renovation," Pais said. For some potential buyers, the $13,653 a month in real estate taxes was a tough pill to swallow and the cost of renovating a home of this size didn't help. Pais pegs the budget for updating at between $3 million and $5 million. A look inside one of the home's 14 bathrooms. LuxQue Media / Mike Aghachi "We brought in athletes, CEOs from around the country," she said. Through the coronavirus pandemic, Pais said she held both in-person and virtual showings. "Ultimately, it was the renovation. For these people, it required too much updating," Pais said. And it wasn't just the money that had to be spent to fix it up. It was also the time it would take to complete. A living area with beamed ceilings and one of the home's five fireplaces LuxQue Media / Mike Aghachi There was also an ownership issue that made closing a deal more challenging. "It wasn't a traditional sale or seller. This was corporate-owned, and there were multiple decision-makers," Pais said. "In order to get it [an offer] voted through all the decision-makers needed to be on same page." She had an earlier offer that was higher than $4.6 million, but the home's owners declined it, Pais said. A recently updated kitchen includes colorful stained glass built into the ceiling. LuxQue Media / Mike Aghachi "When you first put a home on the market, it's not uncommon to try to get as close to the asking price as possible," she explained. Pais said the clients wanted to hold out and see if they could get a better deal closer to the asking price. It's a common strategy many of her clients will try, but it's risky. "Sometimes the first offer is the best offer and sometimes it isn't," she said. In this case, the earlier offer was the better offer, but that wasn't clear until months later. By then, the opportunity to sell at a higher price vanished, leaving the sellers with a $4.6 million deal. The home includes a screening room. LuxQue Media / Mike Aghachi Interestingly, after all those price adjustments the old white house closed at almost the same price it traded for 21 years ago. Public records show the estate sold in 2000 for $4.67 million. |
What ceos can afford a 40 million dollar house
Related Posts
Copyright © 2024 SignalDuo Inc.
