The One withdrawn from Los Angeles Superior Court foreclosure sale
By Dolores Quintana
An infamous mega mansion in Bel Air continues to be at the center of a long legal battle.
As reported by the Los Angeles Times, Nile Niami Crestlloyd’s 105,000-square-foot mega-mansion in Bel Air, nicknamed The One, was pulled from the Los Angeles Superior Court foreclosure sale in Pomona just as it was due. be auctioned off to the highest bidder. Niami is a former film producer who branched out into real estate after a series of films in the 90s. The One may be the largest contemporary house in history, but it’s unfinished and doesn’t have a certificate of occupancy from Los Angeles County.
The foreclosure auction was set after Crestlloyd failed to pay $ 106 million in debt to Hankey Capital, the company of mortgage lender Don Hankey, in the spring. This is not the first time that creditors have attempted to sell the property. It was the third attempt which was delayed by one or more of the parties involved. Hankey postponed the sale that was slated for July after deciding the property should be completed and sold through a third-party escrow company. This choice was supported by Niami and the other creditors. When Hankey backed down and pushed the sale forward, one of the other creditors, Joseph Englanoff’s Yogi Securities Holdings, applied for a temporary restraining order which was not granted. Englanoff is a doctor and frequent investor in Niami transactions and believed that Hankey was attempting to appropriate the property at auction or take all the money generated from the sale. This action delayed the sale until October 27. The delay was an attempt to give the various creditors time to come to an agreement by Superior Court judge Mitchell Beckloff.
The mega-mansion, which was once estimated to be over $ 500 million, was estimated at $ 325 million by Crestlloyd in their bankruptcy documents, as well as a debt of $ 180 million, including $ 176 million of secured debt according to the Los Angeles Times. Bankruptcy Judge Deborah Saltzman will take the case and, for now, that will prevent the property from being auctioned.
The disputed property, located at 944 Airole Way in Bel Air, is more than just a home, according to the LA Times, it âhas ultra-luxurious amenities such as multiple swimming pools; a spa; a beauty salon with washing, haircut and pedicure stations; cigar and candy rooms; a four-lane bowling alley; a putting green on the roof; and a multiplex sized movie theater.
SierraConstellation Partners‘Jim Peters has been appointed director of Crestlloyd according to the Los Angeles Times and is quoted by The Times as having said, “The focus will be on completing the home, getting it to market, and ensuring that it is seen by high profile potential buyers – including whoever ultimately buys it.” . This is not just a regular house for sale, so there are some steps you need to take to be able to manage a house like this. It starts with money, and finding a deal to be able to execute it is probably the top priority right now. For now, the foreclosure sale has been postponed to November 29.
The question in this bankruptcy and control of property case is whether the house is still worth enough to pay off creditors like Hankey Capital. The LA Times quotes John Tedford, attorney at Danning Gill, “If the property is worth less than what is owed to Hankey Capital, the judge is more likely to allow Hankey to proceed with his foreclosure,” he said. “It becomes an expert battle – Crestlloyd’s appraiser versus Hankey Capital’s appraiser – the judge having to sort of decide the value of this unique property.”