Bidding to Begin on the Most Expensive House for Sale in the U.S.
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Bidding to Begin on the Most Expensive House for Sale in the U.S.

Marking the start of a four-day affair that will see an ultra-exclusive audience bid for the home.

By Liz Lucking
Wed, Mar 2, 2022 12:17pmGrey Clock 2 min

The multimillion-dollar Los Angeles megamansion known as The One, is live at auction at 7 p.m. Eastern time on Monday, marking the start of a four-day affair that will see an ultra-exclusive audience bidding for the $405 million goliath with no reserve.

The hammer will drop on the Bel Air hilltop estate just weeks after it officially hit the market in mid-January with that nine-figure price tag, though the developer of the 9755-sqm spread has previously estimated the value to be as high as $688 million.

The online auction, which runs through Thursday, is being handled by Concierge Auctions, in collaboration with real estate agents Aaron Kirman of Compass and Branden and Rayni Williams of The Beverly Hills Estates.

“The time has come for this legendary property, The One, to sell and make history,” Ms. Williams said in a statement. “And may the best bidder win.”

Developed by film producer-turned-developer Nile Niami nearly 10 years ago, The One sits on close to 4 acres surrounded by a moat on three sides and with panoramic views of the Pacific Ocean, downtown Los Angeles and the San Gabriel Mountains.

Festooned with high-end features, the 21-bedroom palace boasts five pools, a massive nightclub, a full-service beauty salon, a 10,000-square-foot sky deck, a home theatre seating more than 40 people and a 400-foot private outdoor running track with a glass-walled view of the city.

There’s also a cigar lounge, a four-lane bowling alley, putting green, a juice bar, a philanthropy pavilion, a tennis court, a 10,000-bottle wine cellar and a 30-plus car garage with two car display turntables.

In fact, its lengthy list of amenities may only be surpassed by the column inches that have been dedicated to the embattled home.

The home was engulfed in a legal battle between the lenders, including Hankey Capital and Lanes Management, and Niami-related limited liability company, Crestlloyd.

Crestlloyd LLC, which lenders accused of defaulting on loans, filed for bankruptcy in October to keep the property from foreclosing. And a Los Angeles court appointed Ted Lanes of Lanes Management as receiver, who is authorised to prepare the property for the sale, Mansion Global previously reported.

“The One is created for today’s billionaire seeking a truly unrepeatable asset, and when it sells, it will be the most significant purchase in the world,” Mr. Kirman said in a statement. “While in 2021, digital properties like NFTs grabbed headlines for monumental one-of-kind-sales, 2022 brings us back to the physical world with The One—a real estate property unmatched in size, scale, safety and triumphant design.”

If it sells for close to its listing price, it would set a record, not only for Los Angeles but for the U.S., surpassing the approx. $327 million billionaire hedge fund manager Ken Griffin paid for a New York City condo in early 2019.

Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: March 1, 2022.



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Stronger demand in some areas is pushing unit rents up faster than houses

By Bronwyn Allen
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Renters are returning to the apartment market, leading to higher growth in weekly rents for units than houses over the past year, according to REA data. As workers return to their corporate offices, tenants are coming back to the inner city and choosing apartment living for its affordability.

This is a reversal of the pandemic trend which saw many renters leave their inner city units to rent affordable houses on the outskirts. Working from home meant they did not have to commute to the CBD, so they moved into large houses in outer areas where they could enjoy more space and privacy.

REA Group economic analyst Megan Lieu said the return to apartment living among tenants began in late 2021, when most lockdown restrictions were lifted, and accelerated in 2022 after Australia’s international border reopened.

Following the reopening of offices and in-person work, living within close proximity to CBDs has regained importance,” Ms Lieu said.Units not only tend to be located closer to public transport and in inner city areas, but are also cheaper to rent compared to houses in similar areas. For these reasons, it is unsurprising that units, particularly those in inner city areas, are growing in popularity among renters.

But the return to work in the CBD is not the only factor driving demand for apartment rentals. Rapidly rising weekly rents for all types of property, coupled with a cost-of-living crisis created by high inflation, has forced tenants to look for cheaper accommodation. This typically means compromising on space, with many families embracing apartment living again. At the same time, a huge wave of migration led by international students has turbocharged demand for unit rentals in inner city areas, in particular, because this is where many universities are located.

But it’s not simply a demand-side equation. Lockdowns put a pause on building activity, which reduced the supply of new rental homes to the market. People had to wait longer for their new houses to be built, which meant many of them were forced to remain in rental homes longer than expected. On top of that, a chronic shortage of social housing continued to push more people into the private rental market. After the world reopened, disrupted supply chains meant the cost of building increased, the supply of materials was strained, and a shortage of labour delayed projects.

All of this has driven up rents for all types of property, and the strength of demand has allowed landlords to raise rents more than usual to help them recover the increased costs of servicing their mortgages following 13 interest rate rises since May 2022. Many applicants for rentals are also offering more rent than advertised just to secure a home, which is pushing rental values even higher.

Tenants’ reversion to preferring apartments over houses is a nationwide trend that has led to stronger rental growth for units than houses, especially in the capital cities, says Ms Lieu. “Year-on-year, national weekly house rents have increased by 10.5 percent, an increase of $55 per week,” she said.However, unit rents have increased by 17 percent, which equates to an $80 weekly increase.

The variance is greatest in the capital cities where unit rents have risen twice as fast as house rents. Sydney is the most expensive city to rent in today, according to REA data. The house rent median is $720 per week, up 10.8 percent over the past year. The apartment rental median is $650 per week, up 18.2 percent. In Brisbane, the median house rent is $600 per week, up 9.1 percent over the past year, while the median rent for units is $535 per week, up 18.9 percent. In Melbourne, the median house rent is $540 per week, up 13.7 percent, while the apartment median is $500 per week, up 16.3 percent.

In regional markets, Queensland is the most expensive place to rent either a house or an apartment. The house median rent in regional Queensland is $600 per week, up 9.1 percent year-onyear, while the apartment median rent is $525, up 16.7 percent.

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