Pricing homes above their market value, a strategy known as “aspirational pricing,” is a way for a developer to get attention for ultra-luxury listings. A sale at the half-billion-dollar asking price would be more than double the biggest residential real estate deal in the U.S. to date -- a $238 million penthouse purchased by Citadel founder Ken Griffin in Manhattan. Niami points out that Griffin’s place is an apartment, with no land, while The One sits on 3 acres.
“The Billionaire,” another Bel-Air spec house that briefly was the most-expensive home for sale in America, was originally listed by developer Bruce Makowsky for $250 million. The 38,000-square-foot mansion, with wine cellars, pools, a bowling alley, helipad and “candy room,” sold for $94 million in October, a 62% price cut.
A Los Angeles native raised by a single mother who was a special education teacher, Niami started out as a makeup artist in the movie industry. He eventually became a producer and his credits include “The Patriot,” starring Steven Seagal, and “Point Blank,” with Mickey Rourke. His turn to real estate came when he began remodeling condos.
Niami has two additional multimillion-dollar projects in Bel-Air. On a neighboring hillside, another of his properties, 10701 Bellagio Road, took three price cuts after being listed in 2018 for $65 million. A notice of intent to revoke permits on that property, and on another $65 million Niami-owned mansion directly behind it, were issued by the Los Angeles Department of Building and Safety.
Without those permits, the properties can’t be legally occupied. After several meetings, the issues are close to being resolved, according to a spokesman for the Los Angeles Department of Building and Safety. Still, the properties have been taken off the market, he said.
That leaves The One. Niami took out a two-year $82.5 million loan from Hankey Capital, which specializes in high-interest bridge financing, to help finish the construction. He's current on the debt payments and faces an October deadline to repay the money, according to Hankey. Niami declined to comment on the rate of his loan.
While very few super-luxury homes sell each year, there was an uptick in 2019. Last year, 23 homes went for $50 million or more in the U.S., the most since 2014, according to Miller. Six of those sold for at least $100 million.
“The One is absolutely no issue,” Niami said. “The value is definitely there.”
This article was provided by Bloomberg News.