Back in 2012 Nile Niami was on top of the world. Or, more literally, he was on top of Bel-Air.
In 2012, Niami, a stuntman who transformed himself into one of LA's most successful high-end mansion builders, paid $28 million for a 4-acre property at the top of a mountain in Bel-Air. Over the last decade, Niami borrowed a reported $165 million to construct a mansion he named "The One."
As of this writing, The One is around 90% complete. Unfortunately, Niami ran out of funds before he could get to 100% which would have enabled the property to receive its "certificate of occupancy" – a crucial piece of paper that allows people to actually live in the mansion.
The Features of 'The One'
Even at 90% completion, The One boasts over 100,000 square-feet of living space, with 20 bedrooms and 40 bathrooms. It features an array of lavish amenities, including:
- A nightclub
- A salon
- A gym
- A candy room
- A 50-car garage
- A 50-seat movie theater
- A four-lane bowling alley
- An Olympic-sized swimming pool
The master bedroom alone is an impressive 4,000 square feet! These extravagant features make The One not just a house, but a luxurious lifestyle.
The Ambitious Price Tag
At one point, Nile hoped to sell The One for a staggering $500 million. Unfortunately, even after reportedly showing The One to a handful of the wealthiest people in the world, no one came forward with an offer Niami thought was worthy of accepting.
Financial Troubles Arise
The mansion defaulted on its $165 million debt load for the first time in March 2021. This marked the beginning of significant financial troubles for Niami. In September 2021, the debt holders placed the home into receivership, which put the property under the control of a court-appointed "receiver."
A receiver finds the best path forward to extracting the most amount of value from an asset so the debt holders can make as much money as possible. This was a critical move in the attempt to salvage Niami's dream project.
The Auction and Future Prospects
On Friday, January 7, the home was officially re-listed for $295 million. If it does not receive any offers in the upcoming weeks, The One will head to the auction block in February. Bids will be accepted between February 7 and 10. To cover its debt load, the home needs to sell for at least $200 million.
Bidders will be required to put down a refundable $250,000 deposit to bid and show proof of funds. A broker representing the home claims there are currently two viable offers on the table, one of which is from a Saudi prince, though the exact amounts remain unclear.
The Costs of Ownership
If someone does manage to pay $295 million for The One, they will need to spend at least a few million more to complete construction to receive a certificate of occupancy. This is essential for anyone wanting to actually live in the mansion, as currently, the pools have cracks and there are reportedly mold problems.
Additionally, such a high purchase price comes with annual costs. If someone pays $295 million, they will owe the state of California $3 million per year in property taxes alone. That’s a staggering $6 million in pre-tax income set on fire every year just for owning the home!
Looking Ahead
We will absolutely be keeping a close eye on this auction when it happens next month and will post articles as results are announced. The fate of The One remains uncertain, but it highlights the challenges that come with ultra-luxury real estate.
What do you think will happen after February's auction? If you were taking an Over/Under bet, would you take over or under $295 million? Only time will tell how this saga unfolds!
