Nile Niami has placed a West Hollywood spec mansion into bankruptcy, eight months after a creditor filed a notice of default on the property.
The bankruptcy filing, submitted by an entity Niami controls, values the property at $30 million and its liabilities around $59 million, according to the Wall Street Journal.
The property hit the market in early 2019 for $55 million then cut to $40 million. It’s not currently listed publicly.
A spokesperson for the embattled luxury developer said a creditor “misrepresented facts, and that put Nile in an untenable situation trying to force a foreclosure sale.”
The representative continued, “Nile is seeking all legal remedies to rectify the situation and protect his asset,” the Journal reported.
Canadian investor Lucien Remillard filed a notice of default on the property in April.
Joseph Englanoff is also a lender on the property. Englanoff took control of one of Niami’s unsold spec homes in February — a 20,000-square-foot Beverly Hills mansion — and recently sold it for an undisclosed sum.
The West Hollywood home spans 14,000 square feet with six bed rooms and 10 bathrooms.
Niami is currently facing a lawsuit from Compass Concierge for allegedly failing to repay a $200,000 loan on a Bel Air spec home. Compass Concierge fronts money to homeowners who list their properties with the brokerage.
Meanwhile, work is nearly done on Niami’s 100,000-square-foot mansion in Bel Air, dubbed, “The One.” He claimed as recently as 2018 that the home could sell for half a billion dollars.
[WSJ] — Dennis Lynch