A massive $ 500 million mansion in Bel Air, California has fallen into the hands of LA courts.
Developer Nile Niami has defaulted on more than $ 100 million in loans, placing the property in receivership.
The mega-mansion features six elevators, a nightclub, bowling alley, beauty salon, and more.
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A mega-mansion in Los Angeles known as “The One” is in receivership after its developer defaults on more than $ 100 million in loans, CNBC reports.
Nile Niami, the developer and visionary of the project had high hopes for the property, predicting that it would sell for $ 500 million.
The 105,000 square foot mansion sits on eight acres overlooking the LA skyline with ocean views. It is also packed with virtually every luxury feature possible, including six elevators, spa, beauty salon, gym, nightclub, 50 ar underground garage, moat surrounding the entire property, theater that can accommodate 50 people, several infinity pools, and more.
To build the massive house, Niami borrowed more than $ 80 million from Hankey Capital to fund the project, according to the LA Times. Hankey has served Niami with a notice of default which gives Niami 90 days to repay the loan. If Niami cannot pay within 90 days, Hankey can forcibly sell the property.
According to CNBC, the Los Angeles County Superior Court placed the mansion in receivership and named Ted Lanes of Lanes Management as the court-appointed receiver. As the receiver of the property, Lanes is responsible for obtaining the proper permits to sell the house, making any construction that needs to be done, and putting the house on the market to pay off the lenders.
“What I would love to see happen is for the house to be completed, for the certificate of occupancy issued, and for us to have an orderly sale that maximizes value,” Lanes told CNBC. “I hope that the proceeds from the sale will be sufficient to fund secured and unsecured creditors and for equity to realize some value.”
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