There’s taking a loss in the real estate market, and then there’s this — the mountaintop property once considered the most expensive in the history of L.A. just sold for 10,000% less than asking price … WTF?!
Here’s the deal … the Beverly Hills lot — fittingly dubbed The Mountain — went for a meager $100,000 at a foreclosure auction Tuesday despite once being listed at $1 BILLION, but it actually cost the buyer a lot more than that.
That’s because back in 2004, it was purchased by an investor from the estate of Mark Hughes — the late Herbalife founder — but only after he borrowed $45 million from the Hughes estate.
Long story short — the investor didn’t pay much back on the $45 million loan, so it ballooned to $200 MILLION with interest and fees. The Hughes estate foreclosed on the delinquent loan and auctioned off the property this week.
Here’s the thing … only around 20 people showed up at the auction, and no one made a serious bid. So, in the end, the estate bought it back for $100,000, which sounds crazy. But, the thing is … they also swallowed the $200,000,000 delinquent loan, which none of the other 20 people were willing to do. Still, sounds like a great deal.
The Mountain is a massive 157-acre plot of land in Beverly Hills sitting atop … well, a mountain. As you can see, the estate looks down on all of L.A. … all that’s missing is a godlike mansion.
Now that it’s back in the control of the Hughes estate, it will likely hit the market again with a ginormous asking price … but maybe not a billion bucks this time around.