Bel Air mansion ‘The One’ is on the verge of foreclosure
A Bel Air mega-mansion billed as America’s most expensive home worth $ 500 million may soon be foreclosed as the investors who funded it demand real estate developer Nile Niami to pay them back within three months or give them the house.
Niami bought the land for The One in 2012, razed it, and spent the past nine years promising to build the most spectacular house Los Angeles has ever seen.
Construction has been delayed by a series of financing and construction issues, including abandoned plans for a jellyfish tank.
In 2018, he borrowed $ 82.5 million from Hankey Investment Co. in 2018 to fund the extravagant project and the repayment deadline was October 2020.
The house was not completed until January and it remains unsold. There is no official registration price for this. While Niami said it was a $ 500 million mansion, other industry experts put it at $ 350 million. He also set up a public Google Forms app where anyone can bid.
It has 20 rooms, spans 100.00 square feet, and sits on a Bel Air strip of land on top of a hill considered to be the best in town.
But two months after it was finally unveiled, it still hasn’t been sold and investors have grown so impatient that they have served Niami with a formal notice. The project was originally slated for completion in 2017, but a series of mishaps delayed it.
Now he has 90 days to pay off the $ 110 million or the property will be returned to them for a quick sale.
Nile Niami borrowed $ 82.5 million from Hankey Investment Co. to finance the extravagant project in 2018. Marketed as “The One,” the gargantuan property spans over 100,000 square feet, has 20 rooms, a cinema, a discotheque, a spa and a champagne cellar.
Nile Niami (left) has 90 days to repay the $ 110 million or the property will be turned over to them for a quick sale. Don Hankey, chairman of Hankey Investment Co., said he had become “distracted”
In the notice obtained by the Los Angeles Times this week, Hankey chairman Don Hankey said he had become “distracted.”
“We felt the owner of The One was distracted from the job at hand of bringing the biggest and best house in America to market.
“We hope that our actions will launch the official list,” he wrote.
In a subsequent interview with Bloomberg, he said there are other investors in the project who are eager to see a return soon.
“Not only myself, but other people he owes money to are trying to force him to list the property,” he said.
Hankey did not immediately respond to inquiries about the project or other investors who may be involved Thursday morning and Niami made no comment on the impending lockdown.
Between April and August, the real estate developer was cited five times by the city of Los Angeles for hosting illegal COVID-19 parties at various homes.
Complaints accounted for a third of all complaints in the city during this period.
Neighbors told DailyMail.com it was like living “in a nightclub” and unmasked “punks” were transported to homes on buses.
Niami, at the time, denied hosting the parties and said he was cooperating with the city.
The One is marketed by Niami as the most expensive in America. Among its extravagant features is a bowling alley
Photos show the property in stages of development last year. It is now complete and was featured in Architectural Digest but has not been sold
The house was originally to include a room with jellyfish in glass tanks on the walls
Niami promotes most of its properties on Instagram. Above he is pictured on the balcony of another house
He also spent much of the pandemic moving to Miami and Tulum, according to his Instagram.
Niami, shown on a private jet, has yet to comment on the impending lockdown
He owns several properties in Los Angeles and this is the third notice of default he has received this year after receiving more for 1369 Londonderry Place in the Hollywood Hills, and one for a debt of 23.4 million dollars on a mansion at 10701 Bellagio Road.
He is currently trying to sell the latter for just under $ 60 million.
In an Instagram video promoting The One, he said: “Seven years ago I had the idea to create the biggest and most expensive house in the urban world.
‘And I did.’
Niami is well known in Los Angeles as a bombastic developer and party animal. He is considered the King of the Mega Mansion, but has had issues with The One.
He offered $ 1 million to the social media influencer who can sell the property for him.
In an interview with the Wall Street Journal in July 2020, he said: “There have been many times in this process where I had to stop because I never had any funding,” adding: ” I didn’t think it was going to be $ 1 million to buy jellyfish.
According to this report, Niami was in financial difficulty, with five unsold mega-mansions in its wallet.