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Richard Saghian and rapper Meek Mill attend the Fanatic Super Bowl Party last month in Culver City. Saghian’s fashion label has leveraged partnerships with prominent rap stars to achieve widespread success. (Shareif Ziyadat/FilmMagic)
Richard Saghian, owner of fast-fashion giant Fashion Nova, was the winning bidder who spent $141 million to buy “The One” mega-mansion, he confirmed to The Times.
Saghian, whose company has benefited from its association with celebrities and influencers including rapper Cardi B, model Kylie Jenner and pop superstar Lil Nas X, beat out four other bidders last Thursday for the 105,000-square-foot property. squares on a hill in Bel-Air: the largest house in Los Angeles.
“The One Bel-Air is a once-in-a-lifetime property that can never be duplicated. There is nothing like her. As a lifelong Angeleno and avid real estate collector, I recognized that this was a rare opportunity, one that also allows me to own a unique property destined to be a part of Los Angeles history,” Saghian said Sunday, in a statement. communication sent by email.
Saghian, 40, founded Fashion Nova in 2006 in the industrial suburb of Vernon and remains its CEO. His business has seen great success selling cheap fashion clothing on his website, backed by leading names in the hip hop world and a legion of Instagram influencers. The private company is wholly owned by Saghian and its annual sales exceed $1 billion, according to a source close to the company.
© (Allen J. Schaben / Los Angeles Times)
Richard Saghian made the highest bid for the Bel-Air property known as “The One.” (Allen J. Schaben/Los Angeles Times)
The executive owns two other houses in Southern California, including one on the beach in Malibu, which he bought from Netflix CEO Ted Sarandos last year for $14.7 million. He also has another in the so-called Bird Streets of the Hollywood Hills, which he bought for $17.5 million in 2018. It was on that property that armed robbers, last June, followed his Rolls Royce and demanded jewelry and other valuables from his friends. . Saghian, who had already entered the house, was not injured. All the suspects were captured and one was killed by an armed guard.
The One cost Saghian much more than his other properties, but his winning bid was less than half the property’s $295 million list price.
“It’s an amazing deal,” said Branden Williams, who was a house agent with his partner, Rayni Williams, and Compass’s Aaron Kirman. “No one understands until they get there. A house like this will never be built again. Every time it is sold again, it will be for even more.”
The Williamses, along with Stuart Vetterick of Hilton & Hyland, represented Saghian in the deal. Brokers also previously represented him in the Malibu purchase. Confidentiality agreements prevented the three from talking about the buyer and covered up others involved in the auction. In the days after the sale, various sources told The Times that the winning bidder was Saghian.
© (Jerritt Clark / Getty Images )
Cardi B at a show, in 2019, presented by Fashion Nova. (Jerritt Clark / Getty Images)
Buying The One would not only expand Saghian’s real estate portfolio, but could also make sense as a marketing tool for Fashion Nova, serving as a backdrop where influential personalities could showcase the company’s affordable and on-trend designs.
The company, which is currently announcing a new spring collection with many items under $30, has come under scrutiny from its suppliers for alleged wage theft, leading it to toughen hiring practices a few years ago. . In January, it agreed to pay $4.2 million to settle accusations by the government of blocking negative product reviews on its website, but called the accusations “inaccurate and misleading.”
The One, which has already been rented for filming, is the masterpiece of flamboyant developer Nile Niami. He initially marketed the house for $500 million several years ago but was forced into bankruptcy after Crestlloyd, the home’s limited liability company, defaulted on $106 million in construction loans to Los Angeles billionaire Don Hankey.
Though some in the Los Angeles real estate community dismiss the residence as too flashy, others consider it the ultimate trophy home, complete with a list of party-friendly amenities. There is a terrace with cabanas, several swimming pools, a private theater, a bowling alley, a billiards room, a candy room, salon and spa, as well as a nightclub. It has 21 bedrooms and 42 full bathrooms.
The ultra-modern, marble and glass home was designed by Orange County architect Paul McClean, who also designed the Saghian estate in the Hollywood Hills.
© (Allen J. Schaben / Los Angeles Times)
Inside the house, designed by Paul McClean, is a sculpture called “Unity” on a rotating pedestal. (Allen J. Schaben/Los Angeles Times)
The online auction, however, was a bust. Saghian’s winning bid was $126 million, and the total cost to the buyer increased to $141 million with the 12% auction fee. Although the price easily set a record for the most expensive house ever sold at auction, it came to less than half its original asking price of $295 million.
It also fell well short of the California record, which some speculated it might break, set by venture capitalist Marc Andreessen, who bought a Malibu property for $177 million in October.
More than three dozen prospective buyers have toured the property at 944 Airole Way in recent months, including billionaires from the Middle East, Asia and California, The One listing agents detailed.
Concierge said its auction site attracted visitors from 170 countries, including Australia, the UK, Germany, France and Italy, generating some 2,800 leads. However, after the online auction opened on Monday, only five bidders from the United States and New Zealand participated.
Noting the small number of entrants, several Los Angeles real estate watchers speculated that The One could have sold for more had the auction not occurred amid the Russian invasion of Ukraine, which creates international tension and economic uncertainty, especially for potential foreign buyers. .
The price was nowhere near the amount of claimed debt attached to the property, which entered Chapter 11 bankruptcy protection with about $180 million in secured and unsecured debt, a figure that rose to $256 million as more creditors have filed claims, according to a March 2 court filing.
© (Allen J. Schaben / Los Angeles Times)
Court-appointed trustee Ted Lanes shows off the property’s floating lounge, attached to its nightclub. (Allen J. Schaben/Los Angeles Times)
Hankey told The Times that he hopes the auction price will be enough to recoup the cash he put into the project, though his claims also include fines and fees. Many of the other creditors on the property will suffer losses.
The biggest new claim is from Niami himself, who claims he is owed $44.4 million. Court filings don’t provide many details, but a person familiar with the bankruptcy recounted that it stems from loans the developer made to the project.
US Bankruptcy Court Judge Deborah Saltzman will hold a hearing later this month to decide whether to approve the sale. In making her determination, the magistrate will consider whether she believes the winning bidder has the financial means to close the sale, its effect on creditors, and other issues.
Lawrence Perkins, the restructuring specialist in charge of Crestlloyd, raised the possibility that the winning bidder might not get the house. According to him, it is his responsibility to the bankrupt estate to continue presenting other offers.
Under the terms of the auction agreement, the buyer is legally required to close the sale by March 21.
Saghian may have some work on her hands before she can move into The One. Despite being under construction for years, it is unfinished and lacks a certificate of occupancy, as well as crucial permits for grading, electrical and other work. There are also allegations in court documents of construction defects and zoning code violations, which the local homeowners association cited in calling the house a “scandal in the making.”
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This article was first published in Los Angeles Times in Spanish.