The $ 500 million Bel-Air house, which has defaulted on its massive debts, will go on the auction block in February

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In 2012, Nile Niami was at the top of the world. Or, more literally, he was up on Bel-Air.

In 2012, Niami, a stunt man who turned himself into one of Los Angeles’ most successful high-end home builders, paid $ 28 million for a 4-acre lot on top of a mountain in Bel-Air.

Over the past decade, Niami has reportedly borrowed $ 165 million to build a mansion he called “The One”.

At this point in time, The One is about 90% complete. Unfortunately, Niami ran out of funds before it could hit 100%, which would have allowed the property to get their “Occupancy Certificate” – a crucial piece of paper that enables people to actually live in the mansion.

Even with 90% completion, The One has 100,000 square feet of living space with 20 bedrooms and 40 bathrooms. It has a night club, salon, gym, candy room, garage for 50 cars, cinema with 50 seats, bowling alley with four lanes and an Olympic swimming pool. The master bedroom alone is 4,000 square meters.

Here is a nice two minute drone video tour of this monster:

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And here’s a 35-minute detailed tour Nile gave to luxury YouTuber Michael Blakey:

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At some point, Nile hoped to find The One for …

$ 500 million

Unfortunately, even after allegedly showing The One to a handful of the richest people in the world, no one has made an offer Niami deemed worthy of acceptance.

The One first defaulted on its $ 165 million debt load in March 2021.

In September 2021, the debtors filed for bankruptcy. A receivership puts the house under the control of a “recipient” appointed by the court. A bankruptcy trustee then finds the best way to get the most value out of an asset so that debtors can make as much money as possible.

And next month we may finally see The One graduation … which is still not 100% done!

The One will go on the auction block in February. Bids will be accepted between February 7th and 10th. Creditors are hoping someone will pay at least $ 295 million for the property. And remember, if someone spends $ 295 million on The One, they’ll have to spend at least a few million more to complete construction in order to get an occupancy certificate so they can actually stay there.

I’m still not sure The One is worth $ 295 million. That’s just so much money. If someone pays $ 295 million, they owe the State of California alone $ 300,000 a year in property taxes. That’s $ 600,000 in pre-tax income set on fire on a house each year.

We’ll make sure to keep an eye on this auction when it happens next month and will post items as soon as the results are announced.

What do you think will happen after the auction in February? If you were to place an over / under bet, would you take $ 295 million or less?

This post first appeared on celebritynetworth.com

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