January 1, Owner Furious After $87.8M Mansion Flops at Auction

A man listed his Bel Air mansion for $87.8 million for an auction this week, but he was furious after the highest bid came in at about $45.8 million.

“Horrible, Horrible, Horrible!” Alex Khadavi told CNBC when asked to characterize the auction.

The mansion boasts such features as a hidden DJ booth that rises out of the living room floor, a black marble car gallery, and a glass and marble bridge above the foyer. The fancy abode failed to garner a $50 million bid, the lowest amount that Khadavi would consider.

“Nobody told me this thing’s going to go below, below this level,” he said.

Khadavi, who is tens of millions of dollars in debt, claims that his deal with the auctioneer, Concierge Auctions, precluded them from starting the bidding below the reserve price of $50 million. The five-day auction opened with a starting bid of $40 million.

Concierge Auctions had no comment on Khadavi’s confusion over the starting bid, but the company did provide an emailed statement to CNBC.

“After a spirited auction, the bidding is closed and the high bid is in the hands of the Trustee. With over 80 qualified showings in the last 60 days, we are confident market value was delivered,” Concierge Auctions president Chad Roffers wrote.

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This flashy Bel Air mansion that was listed at $87.8 million flopped at auction — and now the seller is furious