Headline grabbing ‘The One,’ once planned to be listed at $500 million by developer Nile Niami, has officially sold at auction for $141 million.
The One sold for $141 million at auction.
It was recently revealed the buyer is fast fashion brand Fashion Nova CEO Richard Saghian, who paid $126 million for the property plus an auction premium of $15 million. As the highest bidder, he got quite the deal, considering the home was listed at auction for $295 million, though without reserve.
Co-listing agent Aaron Kirman of Aaron Kirman Group at Compass tells Forbes that they showed the home to over 40 billionaires from around the world, however when it came time to enter the auction, just five bidders participated.
Richard Saghian, CEO of fast fashion brand Fashion Nova, was revealed as the buyer of ‘The One.’
“Our goal was to secure over $200 million,” Kirman says. “The marketing campaign we did was tremendous and felt around the world from Africa to Oceania and beyond. The main challenge was the lack of certificate of occupancy. Most wealthy people at this level, all they want to bring is their toothbrush. Usually they even buy these homes with art, furniture and cars. Everyone loved the idea and opportunity of the house, but I think the majority of people didn’t want to go through the process of getting the certificate of occupancy.”
It’s the largest home in Los Angeles at 105,000 square feet.
Developed by Nile Niami, the massive residence was once valued at $500 million. The estate took more than 10 years to build and created massive debt for Niami, who experienced cost overruns and many delays. His development company, Crestlloyd, which owns the property, put the property into bankruptcy last year. Delays, foreclosure proceedings and the lack of certificate of occupancy made it increasingly difficult to find a buyer. Even today, the home has nearly a year’s worth of work, or more, before it’s officially completed.
If it did sell for auction at the price of $295 million, it would have been the most expensive home to have ever sold in the U.S. Still, billionaire and hedge fund tycoon Ken Griffin’s $238 million New York penthouse still holds the record. However, at 105,000 square feet, the home is the largest in Los Angeles, and the fourth largest sale in California’s history.