The bankruptcy auction for one of the largest mansions in the United States has been pushed back three weeks to allow more time to attract potential buyers to the home, which has an asking price of $295million.
U.S. bankruptcy judge Deborah J. Saltzman granted a bid extension for the Los Angeles home known as ‘The One’ last week after a number of potential buyers needed more time to view the property, according to court documents filed Friday and attorney David Golubchik of Levene, Neale, Bender, Yoo & Golubchik, who represents the property developer.
The online Georgia bankruptcy laws auction is now scheduled for February 28 to March 3, and the closing of the transaction, which is subject to court approval, is set for March 21.
The unreserved auction of “The One” was originally scheduled to take place the second week of February with a final closing date of February 28. Creditors Yogi Securities Holdings and Inferno Investment Inc. filed objections to the plans this month.
Yogi, which is led by Los Angeles physician and investor Joseph Englanoff, said the initial lead time was too short to attract buyer interest and secure the top price. Inferno, run by Julien Remillard, made similar complaints and noted that a projected 12% service fee charged by the auctioneer could “chill the auction”.
Concierge Auctions is leading the process and the property is also being marketed globally with an asking price of $295 million. The global marketing blitz includes bringing the property online in the United States and China. A broker is traveling to Hong Kong and London looking for buyers, according to court documents.
The property, built by Nile Niami through his development company Crestlloyd, filed for Chapter 11 bankruptcy in October to avoid foreclosure. Niami tried to stop the auction last month and offered to create a cryptocurrency, The One Coin, leaning against the house. Niami’s attorney did not immediately respond to a request for comment on the crypto plans.
Although the mansion’s $295 million asking price would set national records if achieved, the developer was aiming higher. In a court filing, Crestlloyd pegged the market value of “The One” at $325 million, and the property was once listed at up to $500 million.
The 105,000-square-foot, 20-bedroom home is equipped with numerous amenities, including a 30-car garage, a nightclub, two restaurant-quality kitchens, four swimming pools, and a two-story waterfall. The four-acre property is also surrounded by a moat to give the illusion that it is floating on water.