America’s largest modern house could be auctioned off in January for $ 250 million, its owner told a U.S. bankruptcy court official on Tuesday.
Developer Nile Niami’s Crestlloyd LLC plans to hire two luxury home sellers to list the Bel-Air mega-mansion known as The One for that price and help find bidders for the auction, a reversal that could end a saga that pitted a glitzy developer against a group of lenders.
“We’re still doing strategic round trips, but we expect the listing price to be around $ 250 million,” Crestlloyd manager Lawrence Perkins told the court. âOur goal is to conduct a thoughtful selling process to maximize the value of the small group of people around the world who can buy a property like this. “
The new plan represents a departure from Perkins, who initially said the focus would be on completing the home before selling it when it was placed under Chapter 11 protection in October.
The One had been faced with the sale of a trustee by the biggest creditor after going into receivership in July when Crestlloyd defaulted on more than $ 100 million owed to Hankey Capital, the Los billionaire’s home loan arm. Angeles Don Hankey.
The receiver said it would take maybe $ 10 million and up to 12 months to repair and finish the 105,000 square foot home, which has been under construction for years.
However, Perkins, a turnaround specialist at SierraConstellation Partners, told bankruptcy court that Crestlloyd had no plans to employ anyone, indicating that he would be sold as is.
Outside of court, Perkins said the plan change came after consulting real estate experts said any buyer would want to personalize the property – and therefore it made little sense to spend millions to complete it.
âThe juice isn’t worth rushing to finish it, because someone’s going to have to do a lot of work again anyway,â he told The Times.
Last month, in its first bankruptcy papers, the developer’s limited liability company valued the house at $ 325 million. It had already been marketed at $ 500 million. Perkins told the court he hoped it would sell for at least $ 250 million and possibly a lot more, with all of the prequalified bidders.
He said a sale of $ 200 million would satisfy all debts on the property, which Crestlloyd totaled at $ 180 million in bankruptcy court records.
Crestlloyd is working with Aaron Kirman of Compass, a luxury real estate agent, and William & Williams Estates Group, a luxury brokerage firm, to market and list the home, he told the court, although the contracts didn’t have not yet been approved.
Kirman stars on the CNBC reality show “Listing Impossible” which focuses on selling multi-million dollar luxury homes that have been hard to sell.
Perkins said the plan was to turn the sale over to Concierge Auctions. He said the New York-based house has sold luxury properties around the world to the same type of buyers who would be interested in The One.
Perkins told The Times that if listing agents were to find a buyer willing to pay a super premium price for the property, the auction would be called off – a result, he said, would be a “happy surprise.”
The goal, he said, was to list the house and schedule an auction to keep buyer after buyer from freaking out.
âWhat we don’t want him to do is go on forever,â Perkins said.
The 944 Airole Way mansion has ultra-luxurious amenities such as multiple swimming pools, spa, beauty salon, cigar and candy rooms, four-lane bowling, rooftop putting green and gym. multiplex cinema.
The fate of the mansion with its hilltop view of the Los Angeles Basin and the Pacific Ocean has been uncertain since Crestlloyd of Niami last year defaulted on $ 106 million owed to Hankey, a mortgage lender. hard money and real estate developer who made his fortune on subprime auto loans.
Niami, the self-styled LA mega-mansion king, sought in the spring to halt all sales and instead offered to live in The One and turn it into an event space featuring entertainment such as boxing matches. and concerts. Hankey was not interested and filed for foreclosure in June.
This filing sparked legal turmoil in Superior Court, with another lender taking legal action against Hankey Capital after the billionaire decided to proceed with a trust sale and not to proceed with a plan to list the house. through two other luxury brokers for $ 225 million.
Hankey was accused of attempting to corner the proceeds from a low-cost auction which would then enable him to appropriate and then resell the property for a higher price. The sale of the trustee and the litigation before the Superior Court were suspended due to the bankruptcy filing.