Niami borrowed $ 82.5 million from Hankey Capital in 2018 to continue building the house. But in March of this year, Hankey served a notice of default sending the property to a foreclosure sale. Niami had 90 days to pay or renegotiate the debt, which stood at more than $ 110 million, according to court documents.
With no payment made in July, the house was placed in receivership, which is an alternative to foreclosure for complex real estate transactions. The receiver, Theodore Lanes of Lanes Management Services, is responsible for accounting for debts on the property, preparing and then selling the property and, ideally, repaying lenders and creditors with the proceeds.
Hankey Capital declined to comment on the default or the receivership. Nile Niami did not respond to a request for comment.
Some elements The routes described are quite typical final details when building a house – the gas company will not provide service until a certificate of occupancy has been issued, for example. But others are peculiar to the property: permission to build a commercial-grade catering kitchen has been refused and this space remains empty.
Lanes said in an email to CNN Business that he is always learning new issues to tackle, including getting plans and permits and making deals with artists whose work is in the house, a company staging furniture and the gardener.
“It’s a pretty long list,” he said.
Other issues facing the property, according to the report: Insurance lapsed in early 2021, challenges for social media users to sneak into property led to intruders.
“It is clear that anything under security would be given priority,” Lanes said in his email. “As for the other projects, they are all evaluated according to the requirements to obtain the certificate of occupancy. If they are compulsory for the occupancy certificate, they have priority.
The house also has more than $ 2 million in unpaid taxes and bills to sellers for concrete, air conditioning and scaffolding, according to Lanes’ report.
“It’s a very complicated property with quite a few open issues,” Lanes wrote in her report. “Right now, the goal is to get full insurance and develop a timeline and budget for obtaining the certificate of occupancy to maximize value and make the property more marketable.
The house is advertised as having a four-lane bowling alley, a 50-seat cinema room, a putting green, a wellness center and gym, a beauty salon, a juice bar and a tennis court. .
Despite Niami on several occasions teasing that the house was weeks away from arriving on the market, she never arrived.
Instead, over the past year, Niami has offloaded other properties – at reduced prices.
And Niami is being sued by other creditors looking to get their money back. Real estate company Compass is suing for non-payment of a $ 200,000 loan it took out while trying to sell another house in Bel Air, according to court documents.
It is not known at what price “The One” will ultimately be listed, or when it will hit the market.
“I am always evaluating the proposals and strategies of various potential listing agents,” Lanes said in an email.
“I gave them everything here,” Niami said in the video. “We have everything everyone could want in this house.”