At least three contractors filed mechanics lien claims in excess of $300,000 on the property known as “The One,” a 100,000 square-foot mega-mansion in Bel-Air built by former Hollywood producer Nile Niami.
According to a Bloomberg report from January of 2020, producer-turned-developer Nile Niami built the mansion located at 944 Airole Way in Los Angeles, Calif. The property is owned by Crestlloyd, LLC. Prior to the pandemic, the home was expected to list for a $500M asking price. To date, the largest residential real estate deal was a $238M penthouse in New York City that sold in January 2019.
The Bel-Air mansion currently has at least three active mechanics liens against it totaling just over $325K. A mechanics lien is a legal claim that clouds the property’s real estate title until it has been removed, making it difficult for homeowners or property owners to refinance or sell the property while active.
Contractors File Liens Against Bel-Air Mansion
Three contractors with active liens are allegedly owed a total of $325,610.66 for constructing the Bel-Air mansion, which has been dubbed “The One” for the high-dollar asking price and its massive size.
These are not the first payment disputes on the project. A previous lien, filed by Residential Elevators, LLC for $16K in September 2019, was released in February.
The largest known active lien filed to date is valued at $214,147.50 from J&E Texture, Inc., which filed the claim against Crestlloyd, LLC on June 30, 2020.
American Rentals, Inc. filed the second-largest lien against the mansion, totaling $97,050.34. On June 29, 2020, American Rentals placed their unpaid work claim against Skyline Development, Inc. According to the lien affidavit, American Rentals’ lien carries an interest rate of 18% as of June 1, 2019, the date the balance became due to the subcontractor.
On August 24, 2020, a scaffolding rental company from Ventura, CA filed a lien worth $14,412.84 against Crestlloyd, LLC.
According to documents filed with the Los Angeles County clerk’s office, Skyline Development has also signed off on several deeds of trusts with contractors with construction loans attached to them. Back in November of 2018, Skyline Development processed its deed of trust with Hankey Capital, LLC, which included an $82,500,000 construction loan. In September of 2019, Skyline Development also agreed to a construction loan with Yogi Securities Holdings worth $30,188,235.
100,000 Square-Foot Mansion Expected to List for $500M
The Bel-Air mansion, located just under 20 miles from downtown Los Angeles, includes an abundance of amenities that resulted in its $500M price tag, including an on-site nightclub, four swimming pools, and a private bowling alley.
Beyond nonpayment to contractors, Bloomberg’s report has found that the project has undergone permitting issues, construction delays, and financing problems.
“When you have something that’s as rare as the Mona Lisa, you can command whatever you want for it,” developer Nile Niami told Bloomberg in January of 2020. “When the house was started, I had no basis to ask $500 million—now there are so many triple-digit sales in L.A. and the world that the asking price is not unreasonable anymore.”