Another of Mohamed Hadid's Failed Mansion Projects Heads to Auction Block—a Year After Developer Filed for Bankruptcy

Yahoo

10 hours ago

The developer father of supermodels Gigi and Bella Hadid will see another of his beleaguered mansion projects put up for auction later this year—just weeks after it was announced that his so-called 'Starship Enterprise' property in Bel-Air was set to go under the hammer.
, 76, has long been known for building some of Los Angeles' and Beverly Hills' most opulent properties; however, his yearslong run as a leader in the industry has hit a hefty hurdle in recent years amid stalled construction, ongoing legal woes and bankruptcy filings.
Now, one of his unfinished projects in Beverly Hills will be sold off to the highest bidder, just over one year after the limited liability company through which Hadid financed the construction filed for Chapter 11, claiming that it had been the victim of 'predatory lending.'
The stalled project, which is situated in Beverly Hills' exclusive Bella Vista Estates, along with 'recently reconsidered' architectural plans for its development, will hit the auction block on Sept. 23, with a sealed bid deadline of Sept. 16.
In a press release shared with Realtor.com®, Keen-Summit Capital Partners real estate brokerage revealed that the new plans for the 3.2-acre lot envision a 25,000-square-foot abode that includes a theater, gym with a spa, an 11-car garage, staff suites, and a wraparound pool.
'Grading and foundation work are already underway, making this a rare, shovel-ready opportunity in one of L.A.'s most coveted enclaves,' the press release added.
The auction comes, the statement noted, after the current owner, Hadid's company Tree Lane LLC, filed for bankruptcy protection in April 2024, news that was first reported by the New York Post.
'The guarded community of Bella Vista Estates is truly one of the most private, secure and prestigious enclaves in Los Angeles,' Keen-Summit Capital Partners' principal and co-president Harold Bordwin said in a statement.
'Overlooking Beverly Hills, this is a once in a lifetime opportunity to build a stunning estate, starting with an architectural design recently reconsidered by the AD 100 architects at Woods + Dangaran. With gorgeous architectural plans, grading underway, and panoramic views, this site is ready for a visionary buyer to bring a luxury estate to life quickly.'
News of the auction comes just over a year after Hadid insisted that he had been the victim of 'predatory lending' at the hands of fellow developer Zach Vella, whose company, Skylark Capital, provided his LLC with a $31 million loan to finance the development of the Bella Vista dwelling.
'I believe I was a victim and now I have to fight my fight,' Hadid told the New York Post. 'They gave us enough money to hang ourselves and then they stopped funding.'
His claims came two years after Vella's company sued Hadid's LLC over the Bella Vista property, which had, at the time, been undeveloped for four years—with Skylark Capital accusing Hadid of 'outright theft' and 'fraud,' the Post reported.
However, this isn't the first time one of Hadid's failed abodes has hit the auction block. Just weeks ago, it was revealed that his planned $50 million Los Angeles mansion was going on auction with an opening bid of $7.9 million—after he was forced to demolish the structure because it violated building regulations.
That 1.2-acre site is being sold off by Paul Ventura's Sahara Construction in a sealed auction that will end July 15, according to its listing, which is held by Compass's Tracy Tutor and Premiere Estates Auction Company's Todd Wohl.
But while the first few listing photos reveal renderings of a stunning hillside home, all that remains of Hadid's former mansion is a foundation and a few slabs of concrete—along with planning approval to build an opulent dwelling that spans up to 15,000 square feet.
The listing, which was first reported by The Real Deal, also notes that, while bids are set to start at $7.9 million, there is no reserve on the property, which means that it will sell to the highest bidder, regardless of whether that opening bid price is reached.
Despite the torrid history of the home that once sat on the land, the listing describes the property as a 'rare and exceptional development opportunity' to hold space in one of 'Los Angeles' most prestigious and desirable neighborhoods.'
The vacant lot is situated at the end of a cul-de-sac and offers residents complete privacy, sweeping canyon views, and a 'foundation to build a world-class custom estate,' according to the listing.
Hadid began construction on his own property on the plot back in 2012, laying the groundwork for a home that would ultimately span 30,000 square feet—double the size that planning permits allowed for on the plot.
The initial work on the dwelling revealed the floor plan to be so vast that the home was nicknamed the 'Starship Enterprise' by horrified neighbors, who quickly voiced upset over the dwelling's expansive size.
By 2015, the size of the home became the focal point of a furious legal dispute, when the City of Los Angeles prosecuted Hadid for refusing to adhere to the halt work orders that had been issued on the property.
Three years later, Hadid had yet to downsize the property, prompting his neighbors to file a civil lawsuit against him, raising fears that the mansion could slide down from hits perch on the hillside and cause major damage to the entire community.
The lawsuit claimed that the home had been illegally built, was not up to code, and that it was unstable, with a structural engineer testifying in court that the home's support piles had only been driven 20 feet into the ground, instead of the 30 feet that is required by building regulations.
In 2019, a judge ordered Hadid to tear down the property, stating that the dwelling posed 'a clear and present' threat to his neighbors.
'If this house came down the hill it would take a portion of the neighborhood with it,' Judge Craig Karlan said of his ruling, according to the New York Post.
Hadid made multiple attempts to appeal the ruling—and in 2019, he even filed for bankruptcy on behalf of the LLC through which he purchased the plot, claiming that his company was facing between $10 and $50 million in debt because of the construction costs involved in the failed project.
In 2021, he opted to sell the property to Sahara Construction for $8.5 million, rather than pay the $5 million required to safely demolish the home—a cost that the buyer agreed to cover.
The construction firm then took out an $8 million loan from Northern Bank & Trust Company in 2023 and completed the requirements to stabilize the slope.
Things went from bad to worse for Hadid when he was ordered to pay a lump sum of $2.6 million toward his neighbors' legal costs in 2023.
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