Fashion Nova CEO Richard Saghian buys ‘The One’ mega-mansion
Richard Saghian, owner of fast fashion juggernaut 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 his association with celebrities and influencers such as rapper Cardi B, model Kylie Jenner and pop superstar Lil Nas X, beat four other bidders on Thursday for the 105,000-foot home square 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 replicated. There is nothing else like it. As a lifelong Angeleno and avid real estate collector, I recognized this as a rare opportunity that also allows me to own a unique property destined to be part of Los Angeles history,” Saghian said Sunday. in an emailed statement.
Saghian, 40, founded Fashion Nova in 2006 in the industrial suburb of Vernon and continues to serve as its chief executive. His business has achieved great success selling cheap fashionable clothes on its website, backed by big name names from the hip hop world and a legion of Instagram influencers. The private company is wholly owned by Saghian and its annual sales now exceed $1 billion, according to a source close to the company.
He owns two other homes in Southern California, including a Malibu beach house he bought from Netflix CEO Ted Sarandos last year for $14.7 million. He also owns a house in the so-called Bird Streets of the Hollywood Hills which he bought for $17.5 million in 2018. It was to this property that armed robbers followed the Rolls Royce home in June of Saghian and demanded jewelry and other valuables from his friends. Saghian, who had already gone inside, was unhurt. All suspects were caught and one killed by an armed guard.
The One cost Saghian significantly more than his other homes, but his winning bid was less than half the property’s $295 million list price.
“It’s an incredible deal,” said Branden Williams, who listed the home with partner Rayni Williams and Aaron Kirman of Compass. “No one understands until they’re up there. A house like this will never be built again. Each time it sells again, it will be for even more.
The Williams, along with Hilton & Hyland’s Stuart Vetterick, represented Saghian in the deal. Brokers also represented him in the purchase of Malibu. The nondisclosure agreements prevented the three from discussing the buyer and covered others involved in the auction. In the days following the sale, multiple sources told The Times that the winning bidder was Saghian.
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 its influencers could showcase the affordable and current designs of the business.
The company, which is currently announcing a new spring collection with many items under $30, has come under scrutiny for alleged wage theft by its suppliers, prompting it a few years ago years of tightening its contractual practices. In January, it agreed to pay $4.2 million to settle government allegations that it blocked negative reviews of its products on its website, but called the claims “inaccurate and misleading”.
The One, which has already been hired for filming, is flamboyant developer Nile Niami’s magnum opus. He originally marketed the home for $500 million several years ago but was forced to file for bankruptcy after Crestlloyd, the home’s limited liability company, defaulted on $106 million in loans to building to LA billionaire Don Hankey.
Although some in the Los Angeles real estate community called the residence gaudy, others saw it as the ultimate trophy home — complete with a list of amenities meant to be partying. There is a sky deck with cabanas, several swimming pools, a private theater, bowling alley, billiard room, confectionery, salon and spa as well as a nightclub. It has 21 bedrooms and 42 full bathrooms.
The state-of-the-art marble and glass home was designed by Orange County architect Paul McClean, who also designed Saghian’s Hollywood Hills home.
The online auction, however, was a bit off. Saghian’s winning bid was $126 million, with the total cost to the buyer of $141 million including the 12% auction fee. Although the price easily set a record for the most expensive home ever sold at auction, it was less than half of its $295 million listing price.
It was also well short of the California record set by venture capitalist Marc Andreessen, who bought a Malibu estate for $177 million in October, which some thought he might break.
More than three dozen potential buyers have visited the 944 Airole Way property in the past two months, including billionaires from the Middle East, Asia and California, The One listing agents said.
Concierge said its auction site had attracted the attention of 170 countries, including Australia, the UK, Germany, France and Italy, and generated some 2,800 leads. However, after the online auction opened on Monday, only five bidders from the United States and New Zealand participated.
Noting how few attendees, several Los Angeles real estate watchers speculated that The One might have gone further if its auction hadn’t taken place amid the Russian invasion of Ukraine, creating international tensions and economic uncertainty, particularly for potential overseas buyers.
According to a March 2 court filing.
Hankey told The Times he expects the auction price to be enough to recoup the money he invested in the project, though his claims also include penalties and fees. . Many other creditors of the property will suffer losses.
The largest new claim comes from Niami himself, who says he owes him $44.4 million. Court records don’t provide many details about the claim, but a person familiar with the bankruptcy said it stemmed from loans the developer made to the project.
US Bankruptcy Court Judge Deborah Saltzman will hold a hearing later this month on whether to approve the sale. In making her decision, the judge will consider whether she believes the winning bidder has the financial wherewithal to complete the sale, its effect on creditors and other issues.
Lawrence Perkins, the turnaround specialist in charge of Crestlloyd, raised the possibility that the winning bidder might not end up with the house. Perkins said it was his responsibility to the bankrupt estate to continue to make other offers.
Under the terms of the auction agreement, Saghian is legally bound to complete the sale by March 21.
Saghian may have some work to do before he can move into The One. Although it has been under construction for years, it is not complete and lacks a certificate of occupancy as well as crucial permits for grading, electrical and other works. There are also allegations in court documents that it has construction defects and violates zoning codes, which the local homeowners association cited as calling the home a “brewing scandal.”