Super lux villas in Bel Air lacks investment demand
The bids came in slow and on the last day of the auction the highest bid was accepted.
An over-the-top modern mansion in Bel Air was listed for $87.8 million for an auction this week. But the highest bid came in just under $45.8 million, according to the home’s seller, dermatologist-turned-developer Alex Khadavi.
Khadavi — who owes tens of millions of dollars to several creditors, according to court filings — had hoped the auction would precipitate a sale price large enough to cover his debt. But the doctor told CNBC he wasn’t happy that the auction, which concluded Monday evening, coincided with large drops in both equities and crypto.
The bids came in slow and on the last day of the auction the highest bid was accepted, and it fell about $4.2 million short of the reserve. The last offer of $46.8 million before the auction closed wasn’t achieved.
Typically, a seller is not required to accept a bid below the reserve price, but the auction of Khadavi’s property, is a bit more complicated because it’s part of bankruptcy proceedings. Khadavi told CNBC that in early June the highest existing offer on the home will be considered by the court and if it’s approved the sale will move forward whether he likes it or not.