A famous doctor with Botox threw his budget in a Megamansion of Los Angeles. Now, he is facing bankruptcy.

It is a story of falling from grace with all the elements of a Hollywood blockbuster, with tens of millions of dollars, glamorous real estate and broken dreams. Its protagonist: a cosmetic dermatologist in the stars, known for Botox surgeries and buttock augmentation, who tried his luck as a megamansion programmer.

The resulting Bel-Air mansion, with a DJ booth, a champagne tasting room and an NFT art gallery, is now set to hit the auction block after developer Alex Khadavi filed for bankruptcy, according to court records. At a bankruptcy hearing in Los Angeles on March 30, Judge Sheri Bluebond said he could soon sign the sale of the property, Dr.’s largest asset. Khadavi, by auction with a reserve price of $ 50 million. A reserve price is the minimum amount that the auctioneer will accept as a winning bid.

The 21,000-square-foot mansion is the brainchild of 49-year-old Dr. Khadavi, with smooth black hair and high cheekbones, whose obsession with perfectionism led him to spend about $ 30 million building the house, not including the cost of the land. . That was about three times his original budget, he said.

Born in London and raised in Iran for a few years, Dr. Khadavi bought the site, located on Tony Sarbonne Road with a 360-degree view of the San Gabriel Mountains and the Channel Islands, for $ 16 million in 2013. he said. Like several LA developers who stacked in the luxury housing market In recent years, Dr. Khadavi had little experience in the field, which he acknowledged. He said that although he had bought and renovated a number of homes in the area, it was mainly in the price range of less than $ 1 million. He also said that he had no relations with the types of contractors who can undertake a project of this scale.

It did not save any cost, spraying the most expensive materials, such as high quality kalakata marble, extremely gold and painting the wooden floors with 24 carat gold dust.

“The marble budget was $ 10 [per square foot]Said Dr. Khadavi. “I was clearly wrong because we bought $ 150 [per square foot] calacatta extra gold. “It’s like going to buy a Prius and they show you a Ferrari.”

The modern seven-bedroom house is a product of Dr. Khadavi’s wild imagination and reflects his passion for digital art, music and design, he said. It sits behind large steel gates with a mirror and features unusual amenities, such as a secret DJ platform emerging from the floor into a hydraulic lift and a NFT art gallery with pieces by artists such as Bighead, a record producer and DJ who worked on the production of the 2017 hit “Gucci Gang” by hip-hop artist Lil Pump. There is also a formal dining room, a cinema, a car museum, a massage parlor, a tequila bar and a champagne tasting room.

Dr. Khadavi installed a series of jets in the outdoor pool designed to spend time with music and designed a digital laser show modeled on Disneyland’s elaborate World of Color attraction. The edition of Dr. Khadavi includes a rotating 3-D laser projector on the roof that sheds diamond-shaped light over the pool. Dr. Khadavi said much of the design of the house was inspired by the “golden section” and mathematical sequence of Italian mathematician Leonardo Fibonacci, which some consider the key to the human perception of beauty.

About halfway through the project, which Dr. Khadavi said was originally intended for his personal use, he realized that his ambitions for the property had exceeded what he really could afford to maintain. He had to sell the property. “I was dreaming big,” he said.

Costs were exacerbated by the Covid-19 pandemic, which interrupted the construction schedule, he said. Crews were often out because they said one member had been infected with the virus. “People are not proud of what they do. “No one wants to work these days,” said Dr. Khadavi.

Within the first year, he had broken up with the architect and his main contractor, he said, and later had problems with the work done by his contractors. A beam they had installed blocked the view from the master bedroom and had to be removed, he said. The contractors also failed to adequately seal the hostel. “I had to tear a million dollars worth of marble,” he said.

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Dr. Khadavi marketed the property for $ 87.777 million in May 2021, listing it with senior agents Aaron Kirman of Compass and Mauricio Umansky of The Agency. The 7s in the price was a reference to his favorite number. (He and his family moved to the United States from Iran when he was 7 years old in the midst of the revolution.) Dr. Khadavi said he operates dermatology clinics in the Encino and Thousand Oaks areas of Los Angeles. He first started buying and renovating homes about 12 years ago.

A few weeks after the release of the property on the market, he applied for protection of Chapter 11 against bankruptcy, the records show. His biggest creditors include Axos Bank, a subsidiary of Axos Financial Inc., which lent about $ 27 million to build the home, according to records. A Axos Bank spokesman declined to comment.

Jon Maddux, CEO of FundLoans, a San Diego-based lender, said it is rare to see banks like Axos go bankrupt, as they usually issue low-value-to-value loans, which means that the underlying value of the asset far exceeds the value of the loan. In that case, he said, it is likely that any sale of the property would be enough to meet the debt regardless of the circumstances, although he could not explain how Dr. Khadavi had taken out so many loans with no development experience in the first place.

Dr. Khadavi said he believes the house is worth much more than the $ 50 million reserve value placed on it. “The view itself is honestly worth about $ 100 million,” he said.

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The dermatologist said he had offers for the home, but the deals collapsed after the Covid-19 crisis made it difficult for international buyers to travel. In court documents, he said he made a deal to sell the property in September 2021 to Green Coin. The company is affiliated with Poe Qui Ying Wangsuo, a Chinese billionaire known as Mr. Pink for the eponymous ginseng drink produced by his company, the records show. However, this agreement collapsed. A lawyer for the buyer in question did not respond to a request for comment. The agents of the agreement were Mr. Kirman, who declined to comment on the transaction, and Mr. Umansky, who was not available for comment.

Dr. Khadavi pointed to recent major deals in Los Angeles, such as the sale of a Bel-Air property to Coinbase CEO Brian Armstrong for $ 133 million in December. Dr. Khadavi noted that the figure was a much higher price per square foot than he asked for his house.

Dr. Khadavi is one of a small group of Los Angeles-based cosmetic professionals – dermatologists and plastic surgeons – who have entered the luxury housing market in recent years, some with little experience in the field. Some have had trouble unloading their properties even with intense marketing efforts and the properties remain on websites for years, despite the relatively healthy purchase of luxury homes in the area. For example, Dr. Raj Kanodia, a leading rhinoplasty specialist, has a specification house he built on the market for $ 99 million, under $ 180 million asked when it first hit the market in the summer of 2018. Dr. Canada did not respond to a request for comment. Dr. Kanodia has previously stated that it priced the specification house so high because the adjoining house was in the market for an equally ambitious amount.

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The Khadavi House will also be the latest in a series of large residences to hit the auction block in recent months. In September 2021, Berggruen Holdings, chaired by billionaire investor Nicolas Berggruen, closed at the Hearst estate in Beverly Hills with a lucrative bid of $ 63.1 million, well below the once-asking price of $ 195 million. Similarly, The One, the Bel-Air megamansion built by a developer Niall Niamey and once scheduled to be listed for $ 500 million, was recently sold at auction for a winning bid just $ 126 million NEXT bankruptcy proceedings. Mr Niami did not respond to a request for comment.

Stephens Shapiro of the Westside Estate Agency, a luxury auctioneer, said these auctions tend to be the “last resort”. It is often the result of a developer putting a completely unrealistic price on a property early on, and then having to reduce it repeatedly.

“It’s not like an art auction where prices go up,” he said of the auctions. “These are just offers. “These are sales of despair.”

There are also those who do not have a job to play in the home specification area and have probably been seduced by market power, Mr Shapiro said. Dr Khadavi said he originally built the house for his personal use. He said he does not believe auctions are the last resort, but rather provide an opportunity to cast a wide net on buyers quickly.

He said he was confident his property would be sold above the reserve price. “I have a nice buffer here. “I’m not as negative as the people in The One,” he said. “Everyone will be paid.”

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