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- A massive $500 million mansion in Bel Air, California has fallen into the hands of the LA courts.
- Developer Nile Niami defaulted on over $100 million in loans, landing the property in receivership.
- The mega-mansion features six elevators, a nightclub, a bowling alley, a beauty salon, and more.
- See more stories on Insider's business page.
A mega-mansion in Los Angeles known as "The One" is under court-ordered receivership after its developer defaulted on more than $100 million worth of loans, CNBC reports.
Nile Niami, the developer and visionary for the project had high hopes for the property, projecting that it would sell for a whopping $500 million.
The 105,000 square-foot mansion sits on eight acres overlooking the LA skyline with a view of the ocean. It's also packed with pretty much every luxury feature possible, including six elevators, a spa, beauty salon, gym, a nightclub, underground 50 -ar garage, a moat surrounding the entire property, a theatre that seats 50 people, multiple infinity pools, and more.
To build the massive house, Niami borrowed more than $80 million from Hankey Capital to fund the project, according to the LA Times. Hankey served Niami with a notice of default which gives Niami 90 days to pay back the loan. If Niami can't pay within 90 days, Hankey can forcibly sell the property.
According to CNBC, the Los Angeles County Superior Court placed the mansion under receivership and named Ted Lanes of Lanes Management the court-appointed receiver. As a receiver of the property, Lanes is responsible for getting the proper permits to sell the home, do any construction that needs to be done and get the house on the market to pay back the lenders.
"What I would love to see happen is that the house gets completed, the certificate of occupancy is awarded and we have an orderly sale that maximizes the value," Lanes told CNBC. "Hopefully, there will be sufficient proceeds from the sale to fund the secured and unsecured creditors and for the equity to realize some value."