Information for Creditors of Crestlloyd, LLC (“The One” Mansion)
Case Number 21-18205 in the United States Bankruptcy Court for the Central District of California
THE DEBTOR OWNS “THE ONE”
The Debtor in this bankruptcy case, Crestlloyd, LLC, is a holding company controlled by SierraConstellation Partners, LLC. Ex-movie producer turned mega mansion developer, Nile Niami, is a beneficial owner in the Debtor. He established Crestlloyd, LLC to own real property located at 944 Airole Way, Los Angeles, California 90077 (the “Property”), in the Bel Air neighborhood.
At the Property, Niami is building a 105,000 square foot mega mansion that he simply calls “The One.” When it is complete, The One is set to be America’s largest and most expensive private residence. Despite this designation, the Property will be much more than a house. The One features a movie theater, salon, spa, gym, two restaurant-quality kitchens, and even an indoor/outdoor night club with its own VIP room. The property boasts a 30-car garage, 4 swimming pools, a two-story waterfall, and even a moat.
When it filed for bankruptcy, the Debtor indicated that it believes the home is near completion. Apparently, the home requires approximately $5 million more in work before it will be complete. The Debtor is selling the home in “as is” condition.
DEBTORS WERE FORCED TO DRASTIC ACTION
The Debtor was forced to file bankruptcy on shortened notice because the mega mansion was set to be sold at a foreclosure sale on October 27, 2021. The bankruptcy filing, by operation of bankruptcy law, prevented that foreclosure sale from occurring. The Debtor believes that it can get better value for The One through a bankruptcy process than would have been achieved at the foreclosure sale.
The bankruptcy sale process has now concluded with fast-fashion company Fashion Nova’s CEO, Richard Saghian, emerging as the highest bidder at the auction. Saghian’s winning bid is $141 million. It is now pending approval of the bankruptcy court. Several objections to the sale have been filed by various creditors.
This sale was necessitated because the Property had been troubled for some time. After suffering construction delays, the primary secured lender on the home, Hankey Capital, LLC, as well as some junior secured lenders and mechanics’ lien claimants, filed several lawsuits against the Debtor, which was not paying its bills on time. Hankey Capital was able to obtain the appointment of a receiver for the property and had scheduled the foreclosure sale for October 27th.
THE ONE HAS BEEN SOLD FOR $141 MILLION
Crestlloyd has reported that it owes approximately $180 million on the property, $176 million of which are allegedly secured against the property and $4 million of which are unsecured. The Debtor has valued The One at $325 million, even in its present incomplete state. However, the bankruptcy auction belied the Debtor’s claims, and The One sold for only $141 million, despite that there were competing bidders driving up the price.
The most expensive home sale in the Los Angeles area was reportedly to venture capitalist Marc Andreessen, who bought a home in Malibu for $177 million in October 2021. Prior to that, Amazon.com CEO Jeff Bezos bought a Beverly Hills mansion for $165 million in 2020. The most expensive home sale in America occurred in 2019, when hedge fund manager Ken Griffin bought a New York City penthouse for just under $240 million. A Bel Air mansion known as The Chartwell Estate was listed for $350 million in 2017, but only sold for $150 million two years later. The One mansion has followed a similar path, being valued at $325 million and selling for only $141 million.
If you want to discuss this mega-mansion bankruptcy, please reach out to PRLT.
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