America's most expensive home, which was expected to be listed for $500 million after the owner defaulted on more than $165 million in loans and debts, according to court filings.
The Los Angeles Superior Court issued the receivership order for the iconic Bel Air hill home known as “The One,” which sits on 105,000 square feet and is expected to be re-listed at a lower price in the coming months, according to people familiar with the property.
The receivership represents a shocking development for the home that took four years to build, fulfilling the vision of founder Neil Niami, who described the property as his “life's mission” and “the largest and most expensive home in the urban world.”
In 2017, Niami valued the property at $500 million, whose construction was delayed by issues with financing and changing strategies.
The home stretches like a modernist mansion on eight acres on a hilltop overlooking Los Angeles.
Niami's house has been the centerpiece of the Los Angeles skyline for over a decade.
It also has 7 swimming pools and Jacuzzis, as well as a moat-like pool that surrounds the house. The master bedroom suite is 4,000 square feet. Every door in the house is electric, along with all the toilets.
Even as prices fell, Niami was saddled with debt. Over the past four years, Niami and his limited liability company Crestlloyd borrowed more than $165 million to build and sell “The One,” according to property documents.<The largest lender was Hankey Capital, founded by Los Angeles billionaire Don Hankey, which has more than $115 million in loans on the property.
The One also carries more than $1 million in unpaid taxes and debts from concrete, air conditioning and tool companies.
Under the receivership, the defaulted property is turned over to a court-appointed receiver, who prepares the property for sale.
