Richard Saghian’s deal for The One megansion in Bel Air got a green light today as a bankruptcy judge ruled in favor of the fashion mogul’s topping $126 million bid at a recent auction.
U.S. Bankruptcy Judge Deborah Saltzman on Monday noted that nearly everyone involved in the sale had to make concessions to complete the deal.
“It doesn’t feel like a good result, but it feels like a justified result under case law,” Saltzman told attorneys after hearing arguments from representatives of developer Nile Niami and several creditors during the hearing, held on zoom.
Saghian’s $126 million bid for the 3.8 acre estate paled against a 2019 appraisal that pegged the value of the estate to be $350 million. The auction earlier this month had a goal of $239 million.
Rayni and Branden Williams, the brokers representing the seller and the buyer, told the court that after around six weeks of marketing the property to billionaires they managed to get the best deal possible.
The judge agreed and ruled that the brokers could be paid commissions on both sides of the deal, taking a cut of about $2.5 million altogether.
“After working on this property for over three years, also finding the buyer was the perfect way to close this chapter for us,” Rayni Williams said.
The court did not rule when other parties could be paid on claims such as those holding mechanic’s liens, leaving that for a future hearing.
Saltzman said Saghian observed applicable laws and ruled in submitting his bid and the auction was a fair market. Attorneys for the developer Nile Niami and others opposing the sale alleged that the auctioneer, Concierge Auctions, didn’t drum up enough interest and contended that more time was needed, perhaps four-to-six weeks, to develop the best market.