Remaining Slabs of Mohamed Hadid's Demolished $50 Million Mansion Hit the Auction Block After Years of Legal Drama

Yahoo

22-05-2025

The demolished remains of developer Mohamed Hadid's failed $50 million Los Angeles mansion have hit the auction block with an opening bid of $7.9 million—years after the father of supermodels Gigi and Bella Hadid became embroiled in a string of legal woes over the property.
The 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 built 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.
At the time, Joe Horacek, 81, who was one of the neighbors who led the suit, told the Daily Mail of the ruling: 'I feel vindicated. Now I just want Hadid to pay up and go away.'
Meanwhile, Hadid lamented, 'This is a joke—it's crazy.'
He then revealed he had plans to countersue for 'two or three hundred million dollars.'
Although the property was initially listed for $18 million in October 2023, it was then swiftly removed from the market.
According to The Real Deal, Sahara received a default notice on the loan that it took out on the property last month and is now delinquent on $9.4 million of debt.
Fed Warns Interest Rates Could Remain Higher for Longer
2 Southern States Lead the U.S. With the Highest Number of Foreclosures
Mortgage Interest Rates Today: Mortgage Rates Edge Up After Trump's Tariff Deals