Mega mansion once worth $500 million defaults on $100 million in debt, forcing a sale

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in one Instagram post Last summer, the project’s developer, Neil Niamey, pitched the 105,000-square-foot home with seven pools, a 50-car garage, a 10,000-bottle wine cellar, and even his own nightclub. . Promoted as the largest and most expensive urban property in the world, “The One” was expected to hit the market for $500 million, according to a video posted by Niamey on Instagram. But it faced several delays and complications and is now facing a court-ordered sale to repay the loan.

Niamey borrowed $82.5 million from Hanky ​​Capital in 2018 to continue building the house. But in March of this year, Hankey served a notice of default to send the property toward a foreclosure sale. According to court documents, Niamey had 90 days to repay or renegotiate the debt, which had grown to more than $110 million.

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With no payments due as of July, the home was placed in court-ordered receivership, an alternative to foreclosure for complicated real estate deals. The receiver, Theodore Lane of Lens Management Services, is tasked with accounting for the debt against the asset, preparing and then selling the asset and, ideally, repaying lenders and creditors with the proceeds.

Hanky ​​Capital declined to comment about default or receivership. Neil Niamey did not respond to a request for comment.

But despite the regulator’s promises that the property is almost done — during a video tour About the home he posted in April, he said it would be “another four weeks, probably”—a complicated punch list remains and the property isn’t ready for market, according to the first report filed in Lane’s court.
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Some item lanes mentioned when building a home are fairly specific final details – for example, the gas company will not provide service until a certificate of occupancy has been issued. But others are exclusive to the property: Permission to build a commercial-grade catering kitchen was denied and the space remains vacant.

Lens said in an email to Granthshala Business that he is still learning about new issues that need to be tackled, including obtaining plans and permits and reconciling agreements with artists whose work is in-house, A furniture staging company and gardener.

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“It’s a very comprehensive list,” he said.

Other property problems: As the insurance expired in early 2021, challenges from social media users to sneak into the property have given rise to intruders, according to the report.

“Obviously anything that falls under security will take precedence,” Lance said in his email. “For other projects, all of them are being evaluated on the basis of requirements to obtain occupancy certificate. If they are mandatory for occupancy certificate, they are getting priority.”

As Lance reports, sellers have more than $2 million in unpaid taxes and invoices for concrete, air conditioning, and scaffolding in the home.

“This is a very complex asset with some open issues,” Lens wrote in its report. “Currently, the focus is on developing a timeline and budget to obtain full insurance and secure the certificate of occupancy to maximize value and make the property more marketable.”

‘One’

Nearly a decade in the making, atop a hill in Bel Air, the home sits with views of the Los Angeles Basin. The spacious house has 20 bedrooms, including eight bedrooms for staff and a three bedroom guest house, about 6 elevators, a library, cigar room and candy room. two part home visit Posted on YouTube in April.

The home is promoted as a four-lane bowling alley, 50-seat movie theater, a putting green, wellness center and gym, beauty salon, juice bar, and tennis court.

Despite repeated regulations Teasing that the house is weeks away from being on the market, he never came.

Instead, over the past year, Niami has been rolling out other properties – at discounted prices.

Earlier this year, he sold the West Hollywood mansion for $26 millionThat’s significantly less than the previously reported asking price of $35 million, according to property records reported on Realtor.com. In April, he sold the Bel Air mansion. $36 million, according to Zillow, a little more than half of its original $65 million asking price in 2018.
Other default notices also came, including one on a $10 million debt on a home in the Hollywood Hills and another on a $23.4 million debt on a house in Bel Air. Los Angeles Times.

And Niamey is being sued by other creditors to get their money. Real estate firm Compass is suing for non-payment of a $200,000 loan taken out during an attempt to sell a detached home in Bel Air, according to court documents.

It’s unclear at what price “The One” will eventually be listed, or when it will hit the market.

“I am still evaluating offers and strategies from various potential listing agents,” Lance said in an email.

Although the property had not yet hit the market earlier this year, a google forms application Available for potential buyers to fill out. Beyond contact information, it only asks one question: “Which influencer did you get to know?”
Many social media influencers have already shown this. Last April, Niami released a . Gave home visit For YouTube personality Michael Blakey. The tour offers a glimpse of the nightclub with VIP area and walk-in access to the 4,000-square-foot master suite with its own pool.

“I gave them everything here,” Niamey said in the video. “We have everything anyone could ever want in this house.”

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Credit : www.cnn.com

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