Drama at 777 Sarbonne as court considers OK of sale

Trustees want spec developer Khadavi barred from spec megamansion he lost through BK

Alex Khadavi with 777 Sarbonne (Alex Khadavi Medical Office, Loopnet)
Alex Khadavi with 777 Sarbonne (Alex Khadavi Medical Office, Loopnet)

The fate of the megamansion at 777 Sarbonne in Bel Air is due to be considered by a bankruptcy court on May 25, as Judge Sheri Bluebond considers a motion to approve a $45.7 million deal for the more than one-acre estate with extravagant amenities that range from a Feng Shui koi pond to a gallery for NFTs.

But first, some last-minute drama.

The debtor––celebrity dermatologist and developer Alex Khadavi––recently took to the CNBC news outlet to complain that the topping bid in the May 9 bankruptcy auction for 777 Sarbonne was not only below the $50 million reserve price but nowhere near the original asking price of $87 million.

“Horrible, horrible, horrible,” Khadavi said of the auction results.

He also criticized Concierge Auctions, the group that produced the online auction for the megamansion, for starting bidding under the reserve price.

Chad Roffers, president of Concierge Auction, stood by his work.

“With over 80 qualified showings in the last 60 days, we are confident market value was delivered,” Roffers said in a prepared statement delivered shortly after the gavel came down on the auction.

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Michael Jay Berger, a lawyer for Khadavi, did not return requests for comment.

Lawyers for Greenberg Glusker, the firm that represents the chapter 11 bankruptcy trustee, filed a motion to approve the sale of the megamansion because marketing and sales efforts have exhausted every possibility of finding a higher asking price.

The trustee’s lawyers also had complaints about Khadavi, and have asked that he be barred from the property in any case.

The sales motion requested the court prohibit Khadavi, who has listed a primary residence at West Hollywood condominium, from entering and staying at the megamansion. On April 22, the trustee sent a letter to Khadavi asking him not to sleep over at the mansion or produce events there. The request was apparently ignored, based on observations by the listing brokers and auctioneer, according to filings with the court. Filings also claimed that gatherings involving the use of drugs had continued at the property, and art works owned by a staging company had been defaced.

Parties were recently thrown at the estate for cryptocurrency company Green Coin, ostensibly to promote the sale of the home, lawyers allege. Last year, the court had allowed the cryptocurrency group to make an offer on the house, but the deal didn’t lead to a sale.

On May 2, police were called to stop a party at the house where a street artist allegedly attempted to enter the house ostensibly to make some art, according to court filings.

After the May 9 auction, Concierge paid for 24-hour security guards to prohibit guests and overnight stays. However, Khadavi has been allowed limited access to the megamansion.

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