Last month, we told you about The One, which is the largest and most expensive residence in not just Los Angeles, but in the entire world. The 105,000-square foot-luxury property is the latest spec mansion from movie producer turned real estate developer Nile Niami. The home sits on five acres and is surrounded on three sides by a moat. The One gives the appearance of floating above the city. The property took eight years and 600 people to build. In 2018, it was reported that The One, which was still under construction, would hit the market for $500 million.
The LA Times is now reporting that the $82.5 million loan for the construction of the massive estate is in default. As a result, the debt tied to the property has reportedly risen to $110 million with accrued, unpaid interest. Los Angeles financier Don Hankey advanced the money to Niami. Hankey is best known for offering subprime auto loans.
Construction on the mammoth home began in 2013 during a trend of developers building wildly expensive spec mansions with $100 million-plus price tags. The One has 21 bedrooms and 42 bathrooms. It is made up of four separate structures. The main house is 74,000 square feet. The master suite is 5,500 square feet and reportedly has several bathrooms, two walk-in closets, and its own infinity pool. The garage can house 30 cars. 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. There's also a 10,000-square-foot sky deck and five swimming pools. The interior space is designed to look like a high-end luxury hotel. The home also boasts an impressive art collection and bespoke furniture from byShowroom.
As mentioned, Niami was formerly a special effects guy for low-budget horror movies who transformed himself into a real estate developer. He started in real estate by flipping inexpensive homes in the suburbs of L.A. His first big deal was in 2012 when he flipped a home to the Winklevoss twins for $18 million. In 2014, he sold a custom-built mansion in Holmby Hills to P. Diddy for $39 million. In 2016, he sold a Beverly Hills mansion for $38.3 million. In 2017, he sold a $26 million home to Floyd Mayweather. That same year, he completed work on the $100 million Opus home in Beverly Hills. In 2019, Niami sold Opus for $52 million. The 20,000-square-foot, seven-bedroom, 11 bathroom mansion was originally listed for $100 million.
Niami, as you might imagine of someone who would build something like The One on spec, is quite a character. In 2018, he attended a fasting retreat favored by celebrities to drop a few pounds for his trip to Burning Man. His home is a 10,000-square-foot mansion that contains his collection of vintage "Playboy" magazine colors. Reportedly, he once wanted to pitch a reality show about his life called "The Mansion Maker."
Earlier this year, it appeared that Niami was going to put The One on the market for $340 million. So far he's failed to do so. Hankey believes that the developer is waiting for the market to improve, but, that really doesn't make sense. Despite the pandemic and economic downturn, sales of luxury homes in Los Angeles have been booming. Hankey claims he is not the only one Niami owes money to and all his creditors are trying to force him to put the home on the market. In a worst-case scenario for Niami, Hankey and other investors could foreclose on the home and repossess it.
