The largest modern home auction in the US could start at $250 million in January, its owner told a US Bankruptcy Court official on Tuesday.
Developer Nile Niamey’s Krestloyd plans to hire two luxury home sellers to list the Bel-Air mega-mansion known as “The One” for that price and put up bidders for the auction. , a reversal that could end a saga. A brilliant developer against a cadre of lenders.
“We are still going back and forth, strategically speaking, but we estimate the listing price to be around $250 million,” Krestloid manager Lawrence Perkins told the court. “Our goal is to drive a thoughtful selling process to maximize value from the small group of people in the world who can purchase a property like this.”
The new plan represents a departure by Perkins, who initially said it would focus on completing the home before selling it when it was placed under Chapter 11 bankruptcy protection in October.
The One was facing the sale of a trustee by its largest creditor after being placed in receivership in July, when Krestloid sold $100 million to Hankey Capital, the real estate lending arm of Los Angeles billionaire Don Hankey. had paid more.
The receiver has said it could take between $10 million and 12 months to repair and finish the 105,000-square-foot home, which has been under construction for years.
However, Perkins, a turnaround expert SierraNakshatra Partners, told the Bankruptcy Court that Crestloid had no plans to employ anyone, indicating that it would be sold as such.
Out of court, Perkins said the change in plans came after consultations with real estate experts, who said any buyer would want to personalize the property – and so it doesn’t make sense to spend millions to get it done.
“The juice isn’t worth the squeeze to finish it, because one has to redo a lot of work anyway,” he told The Times.
Last month, in its initial bankruptcy letters, the developer’s limited liability company valued the home at $325 million. It was once sold for $500 million. Perkins told the court it was expected to sell for at least $250 million and possibly much more, with all bidders pre-qualified.
He said the $200 million sale would satisfy all debts on the property, which Crestloid said in bankruptcy court filings totaled $180 million.
Crestloid is working with luxury real estate agents Aaron Kirman of Compass and luxury brokerage Williams & Williams Estates Group To market and list the house, Perkins told the court, although the contracts have yet to be approved.
Kirman Stars in CNBC Reality Showlisting impossible”, which focuses on selling multi-million dollar luxury homes that have become difficult to sell.
Perkins said the plan is concierge auction Conduct sales. He said the New York-based home has sold luxury properties around the world to the same number of buyers who are interested in one.
Perkins told The Times that if listing agents turn in a buyer willing to pay a super-premium price for the property, the auction will be closed—an outcome he said will be a “happy surprise.”
The goal, he said, was to list the house and also schedule an auction to prevent the buyer from getting cold feet.
“What we don’t want to do is pull back and forth,” Perkins said.
The mansion at 944 Airole Way boasts ultra-luxury amenities such as a multi-pool, a spa, a beauty salon, cigar and candy rooms, a four-lane bowling alley, green roofs and a multiplex-sized movie theater.
The mansion’s fate, with its mountaintop view of the Los Angeles Basin and Pacific Ocean, has been up in the air since last year Niamey’s Krestloid owed $106 million to Hankey, a hard-working moneylender and real estate developer who made his fortune. subprime auto lending
Niamey, the so-called king of the LA mega-mansion, sought to halt any sales in the spring and instead proposed living in one and turning it into an event space Featuring entertainment such as boxing matches and concerts. Hankey did not take an interest and filed for foreclosure in June.
That filing set off a legal flurry in LA County Superior Court, after the billionaire decided to hold the sale of the trustee after another lender filed suit against Hanky Capital and for $225 million through two other luxury brokers. Didn’t go ahead with the plan to list the house.
Hankey was accused of trying to haggle the proceeds of a lowball auction, which would then put him in a position to take ownership and resell the property at a higher price. Hanky Capital said it was abiding by the law, and the billionaire said he only wanted to recover his capital. The trustee’s sale and Superior Court litigation have been put on hold because of the bankruptcy filing.