Nile Niami: ‘The One’ mega mansion once worth $500 million defaults on $100 million in debt, forcing a sale

In an Instagram post final summer time, Nile Niami, the venture’s developer, pitched the 105,000-square-foot residence as having seven swimming pools, a 50-car storage, a ten,000-bottle wine cellar and even its personal nightclub. Promoted as being the biggest and most costly city property on the earth, “The One” was anticipated to come back to marketplace for $500 million, in keeping with the video Niami posted on Instagram. However it suffered many delays and issues and now faces a court-ordered sale to pay money owed.

Niami borrowed $82.5 million from Hankey Capital in 2018 to proceed constructing the house. However in March of this yr, Hankey served a discover of default sending the property towards a foreclosures sale. Niami had 90 days to pay or renegotiate the debt, which had grown to greater than $110 million, in keeping with courtroom paperwork.

With no fee made by July, the house was positioned in court-ordered receivership, which is a substitute for foreclosures for sophisticated actual property offers. The receiver, Theodore Lanes of Lanes Administration Providers, is tasked with accounting for money owed towards the property, readying then promoting the property and, ideally, repaying lenders and collectors with the proceeds.

Hankey Capital declined to remark concerning the default or receivership. Nile Niami didn’t reply to a request for remark.

However regardless of guarantees by Niami that the property is sort of carried out — throughout a video tour of the house posted in April he stated it will be “one other 4 weeks, in all probability” — there’s a sophisticated punch checklist left and the property isn’t prepared for market, in keeping with Lanes’ first report filed with the courtroom.

Some gadgets Lanes outlined are pretty typical closing particulars when constructing a house — the fuel firm will not present service till there’s a certificates of occupancy issued, as an illustration. However others are specific to the property: the allow to construct a commercial-grade catering kitchen was denied and that house stays empty.

Lanes stated in an e-mail to CNN Enterprise that he’s nonetheless studying about new points that must be handled, together with acquiring the plans and permits and checking out agreements with artists whose work is in the home, a furnishings staging firm and the gardener.

“It is a fairly intensive checklist,” he stated.

Different issues the property faces, in keeping with the report: the insurance coverage had lapsed in early 2021, challenges from social media customers to sneak onto the property have led to intruders.

“Clearly something that might fall below security would have precedence,” stated Lanes in his e-mail. “As for the opposite tasks, they’re all being evaluated primarily based on necessities to realize the certificates of occupancy. If they’re obligatory for certificates of occupancy, they’re getting precedence.”

The house additionally has greater than $2 million in unpaid taxes and invoices to distributors for concrete, air con and scaffolding, in keeping with Lanes’s report.

“It is a very sophisticated property with fairly a couple of open points,” Lanes wrote in his report. “At current, the main focus is to acquire full insurance coverage and develop a timeline and funds to safe the certificates of occupancy to be able to maximize worth and to make the property extra marketable.”

‘The One’

Practically a decade within the making, the house sits atop a hill in Bel Air, with views of the Los Angeles basin. The colossal residence options 20 bedrooms, together with eight bedrooms for the employees and a three-bedroom visitor home, roughly 6 elevators, a library, cigar room and sweet room, in keeping with a two-part home tour posted on YouTube in April.

The house is promoted as having a four-lane bowling alley, a 50-seat movie show, a placing inexperienced, wellness middle and fitness center, magnificence salon, juice bar and tennis courtroom.

Regardless of Niami repeatedly teasing that the house was weeks away from coming to market, it by no means arrived.

As a substitute, over the previous yr, Niami has been unloading different properties — at discounted costs.

Earlier this yr, he offered a West Hollywood mansion for $26 million, far beneath an earlier $35 million asking value, in keeping with property data reported on In April, he offered a Bel Air mansion for $36 million, just a little over half of its authentic $65 million asking value in 2018, in keeping with Zillow.
Different default notices arrived too, together with one on a debt of $10 million on a house within the Hollywood Hills and one other on a debt of $23.4 million on a house in Bel Air, in keeping with the Los Angeles Times.

And Niami is being sued by different collectors seeking to get their cash. Actual property agency Compass is suing for non fee of a $200,000 mortgage he took out whereas making an attempt to promote a unique residence in Bel Air, in keeping with courtroom paperwork.

Early construction of the mega mansion built by Nile Niami, in Bel Air, California in May 2015.

It’s not clear at what value “The One” will in the end be listed, or when it’s going to come to market.

“I’m nonetheless evaluating proposals and methods from numerous potential itemizing brokers,” Lanes stated in an e-mail.

Though the property hadn’t but come to market earlier this yr, a Google Forms application was accessible for potential consumers to fill out. Past contact info, it solely asks one query: “Which influencer did you discover out from?”
A number of social media influencers have already featured it. Final April, Niami gave a home tour to YouTube persona Michael Blakey. The tour gives a glimpse of the nightclub with VIP space and a walk-through of the 4,000-square-foot master bedroom, with its personal pool.

“I gave them every part right here,” Niami stated within the video. “We’ve got every part anybody may ever need on this home.”

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