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Los Angeles Mansion – The One – Formerly Priced At $500 Million, Is $100 Million+ In Default On Its Loans

The $82.5 million loan for the huge mansion known as The One’s development is in default. The property’s debt has increased to $110 million as a result, including accrued but unpaid interest. Before it ever goes on the market, the house can be repossessed and put up for foreclosure.

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The One, the largest and most costly mansion not just in Los Angeles but in the entire world, was the subject of our last article. The most recent speculative home from movie producer and real estate developer Nile Niami is 105,000 square feet of luxury. The house is situated on five acres and has a moat on three of its sides. The One appears to be hovering over the metropolis. It took 600 employees eight years to construct the building. The One, which was still being built, was said to be going on sale for $500 million in 2018.

According to the LA Times, the $82.5 million loan used to build the expansive estate is currently in default. The property-related debt as a result has reportedly increased to $110 million including accrued, unpaid interest. Los Angeles financier Don Hankey advanced the money to Niami. The primary product that Hankey offers is subprime vehicle loans.

The enormous house’s construction started in 2013 at a time when developers were erecting extravagant spec mansions with price tags of $100 million or more. There are 42 bathrooms and 21 bedrooms in The One. It consists of four distinct structures. The main residence has a square footage of 74,000. The 5,500 square foot master bedroom is said to have multiple bathrooms, two walk-in closets, and its own infinity pool. 30 automobiles can fit in the garage. The home also has a four-lane bowling alley, a movie theatre that seats 30, a private nightclub, and a philanthropy wing designed to host charity galas for up to 200 people. Five swimming pools and a 10,000 square foot sky deck are also there. The decor has been styled to resemble a top-notch luxury hotel. The house also has a substantial collection of fine art and custom furniture made by Showroom.

Niami appeared to be planning to list The One for $340 million earlier this year. He has so far been unable to do this. Hankey thinks the developer is holding off until the market turns around, but that is illogical. Sales of luxury properties in Los Angeles have been rising despite the epidemic and economic slowdown. Hankey asserts that he is not the only creditor Niami owes money to and that all of them are attempting to compel Niami to list the house for sale. Hankey and other investors may foreclose on the house and seize it in the worst-case situation for Niami.