It is the most expensive real estate ad in the United States. Take a look inside.
A 105,000-square-foot mansion in Los Angeles will become America’s most expensive listing when it hits the market Monday with an asking price of $ 295 million.
If it sells for that amount, the hillside property, called “The One,” will be the most expensive home ever sold in the United States. “The One” has 21 bedrooms, 42 full bathrooms, several swimming pools, a nightclub with VIP area, a bowling alley, a 40-seat movie theater, a full-service hair salon and a garage of over. 30 cars, from a sprawling list of amenities.
âIt’s more than a resort, it’s your own world,â said luxury real estate agent Rayni Williams, founder of Beverly Hills Estates. “You have everything you need and you are just going to bring your friends and family.
The Williams group represents the property, with Aaron Kirman of the Aaron Kirman Group at Compass. Selling a nearly $ 300 million home might be a daunting task for most, but Williams and Kirman aren’t worried.
âIt’s obviously the 1% of the world we work with,â said Williams. “It makes the target a bit narrower, and in that sense it’s a bit easier, isn’t it?” Because there are 3,700 billionaires in the world, and we are targeting them.
Since developer Nile Niami started working on the house ten years ago, the real estate market has caught up, Williams said, noting his company negotiated the recent sale of a $ 133 million home, or a quarter the size of “The One”. ”
Indeed, LA’s luxury market has collapsed recently. Home prices in Bel-Air have increased by nearly 50% since last year, according to online real estate broker Redfin.
Luxury real estate prices faltered in the first months of the pandemic as remote working contributed to a global exodus from cities, said Redfin chief economist Daryl Fairweather. Now that Los Angeles has started to reopen, people are flocking to the city, boosting real estate values, she added.
Financing a property worth nearly $ 300 million is going to be very different from financing an average home, said LA luxury real estate agent Kofi Nartey, who is unrelated to the sale.
âThat kind of buyer, their amount of liquidity could be the same as the GDP of some small countries,â he said.
In other words, these buyers are not offering a 20% down payment and are not asking for a mortgage. Whoever purchases this compound will likely have the cash to purchase the property, Nartey said. If they need to apply for a loan, they tend to borrow against their assets or get a private line of credit from banks with which they have previous relationships, often at lower interest rates than one. traditional buyer would get a mortgage, he added.
Williams agreed, saying the purchase would likely be entirely in cash.
The mortgage payment is just the start. Whoever buys the house will easily have to pay over $ 1 million a year for maintenance and some $ 4 million in property taxes, Nartey estimated.
The house lists Monday, but Kirman said the brokerage is has committed to auction the property from February 29 to March 2, unless they receive an offer that is too good to pass. The partnership with the auction house grew out of what Williams called an “out-of-court” bankruptcy agreement between developer Niami and its lenders, after the developer defaulted on more than $ 100 million in loans. and debt in October.
Interest in “The One” has already been shown to be strong and will continue to grow at the time of the auction, Kirman added. In terms of potential buyers? âWe see the technology, the crypto, we see the foreign, we see the localized,â she said. “The reception given to the official launch was incredible.”
Nartey doesn’t think the house will sell until the auction, as buyers tend to assume they’ll get a better deal then. He’s also skeptical that the house will go for the asking price of $ 295 million.
His bet? “I’ll say $ 190 million is where it’s going.”
However, Kirman is optimistic that the house will sell “really close” to its asking price., given the keen interest so far.
âRight now, with, you know, everything from Covid to people who just want to be in their space and have their space, I think it’s a great time to put this house on the market because there is never had a house that had so much space and so many amenities, âhe said.
Write to Sabrina Escobar at [email protected]