Source: Concierge Auctions

The One: Luxurious Bel Air Mega-Mansion Sells For Around A$193m

The most expensive property in the U.S. has just sold for the ‘bargain’ price of US$141 million (approximately A$193m), having previously been valued at around US$500 million.

“The One” mega-mansion is spread across almost 10,000 square meters and is designed with 21 bedrooms, 49 bathrooms and is situated in the hills of Los Angeles designed by Irish architect Paul McClean.

It was purchased by online clothes retailer Fashion Nova founder, Richard Saghian.

Featuring 360 degree views of the Pacific Ocean downtown L.A., and the San Gabriel Mountains, five massive swimming pools, an enormous nightclub, full-service salon and spa, putting green, 10,000-square-foot sky deck, 400-foot private outdoor running track with a glass-walled view of the city, a bowling alley and a private Dolby Digital theatre seating over 40 are just some of the amazing features this estate has on offer.

Whomever ends up actually living at The One will find themselves rubbing shoulders with the rich and famous as some residents and ex-residents of Bel-Air include the likes of Nicholas Cage, Rod Stewart, Kim Kardashian and Phil Collins.

Rodeo Drive, UCLA, downtown Los Angeles, and LAX are all easily accessible from the premier hill-top location of the house, just 25 minutes from Santa Monica Pier.

The eye-watering price tag for this truly over-the-top piece of architecture was US$295m, but the hammer fell at just US$141m last week.

So why was this architectural marvel sold for so much less than the asking price?

The answer, like so many failed property developments, lies with unassailable debt and cost-cutting in construction.

The owner and developer of The One is a well-known personality on the Los Angeles Real Estate scene and ex B-movie film producer, who has experienced a string of setbacks whilst trying to construct and flip the grandiose house.

Nile Niami’s limited liability company Crestlloyd defaulted on US$165 million in debt related to the property, causing it to enter receivership and shortly after, declare chapter 11 bankruptcy.

The house itself had many issues relating to cost-cutting while construction was being finished, the property itself was in breach of several health and safety violations.

The filtration systems for the multiple pools were found to be faulty resulting in algae, there was a build-up of bio-organic material (mould) in one section of the house and there were cracks in large portions of the white marble used in construction because of under-treatment.

Despite these issues, the auction of the ostentatious estate attracted five local bidders with the winning bid having no intention of actually residing in one of Los Angeles’ most exclusive abodes, purchasing it as an investment property.

The property presented a unique opportunity to gain access to one of the most exclusive and expensive neighbourhoods in the world and its sale for far less than the initial asking price reflects a problem-plagued development and cooling international property market.

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