Judge Deborah Saltzman approved the sales after a 2-day court hearing where creditors argued they sale price was too low and should be cancelled. Part of their reasoning was that the sale took place days after the invasion of Ukraine, which would prevent Russian oligarchs from bidding.
Saltman noted the “proposed sale doesn’t feel like a success to anyone except maybe the proposed buyer” however there was no basis to prevent the sale.
The home contains 105,000 SF of space in Bel Air and debts on the property are said to be over $250 million. The selling price of $126 million ($141 million after 12% auction fees) will lead to multiple creditors losing their entire funds lent.
The largest lender is Hankey Capital who is in first position to recover the more than $100 million lent on the project.
Potentially affecting the sale price is that the property has yet to have received its certificate of occupancy and it appears millions of dollars of additional work may be needed for its issuance. In addition the newly built property has construction defects including roof repairs.
Also the City of Los Angeles Department of Building and Safety noted the property exceeds its approved height and would have to apply for a variance.
The property was sold via Concierge Auctions with brokers Branden and Rayni Williams as well as Aaron Kirman.