The largest new mansion in America is being sold at an auction for $141 million.

• At a bankruptcy auction, "The One," a 105,000-square-foot Los Angeles megamansion, was sold for $141 million.
• Nile Niami constructed it and marketed it as the most expensive modern home in America, with an ultimate asking price of $500 million.
• The megamansion was placed into receivership last year.
• It is speculated that the potential buyer of the property could be another developer intending to enhance and transform it, obtain the necessary permits, and eventually resell it.

The Los Angeles megamansion, which was listed for $295 million and spanned 105,000 square feet, was sold at a bankruptcy auction for $141 million, marking the end of a 10-year struggle with mounting debt and shattered aspirations.

The auction for "The One" ended Thursday night with the highest bid of $126 million. With the buyer's premium included, the final sale price will be $141 million, according to Laura Brady, CEO of Concierge Auctions.

The third-most expensive home ever sold in Los Angeles is the one that cost $150 million, surpassed only by Marc Andreessen's $177 million purchase of a Malibu compound and Jeff Bezos' purchase of the former Jack Warner Estate in Beverly Hills for $165 million.

The One, the most expensive home ever sold at auction in the U.S. and worldwide, exceeded the $51 million price of the home auctioned last year in Beverly Park.

The bidding process was highly competitive, with numerous bidders from various countries participating, according to Brady. However, he refused to disclose the identity of the winning bidder, who will be unveiled in the upcoming bankruptcy court proceedings.

The controversial high-end real estate project, built by Nile Niami, has come to an end with the sale. Niami, a former Hollywood producer, turned to building some of the most luxurious mansions in Beverly Hills and Bel Air to sell for profit. He started The One more than a decade ago, touting it as his "life mission" and "the biggest, most expensive home in the urban world," with an eventual asking price of $500 million.

The One, a magnificent property, rises majestically from the manicured hills of Bel Air. Spread across 3.8 acres, it boasts an impressive 21 bedrooms and 42 bathrooms. The property offers breathtaking views of the Pacific Ocean, downtown Los Angeles, and the San Gabriel Mountains. Seven water features, including a massive moat that encircles the property, add to its allure. The One features a nightclub, a full-service beauty salon, a wellness spa, a home theater that seats 40, a bowling alley, a 10,000-bottle wine cellar, a 30-car garage, and a 400-foot private outdoor running track.

As construction costs increased, so did the issues with Niami's debt. The property was put into receivership and eventually bankruptcy. Under the bankruptcy agreement, it was listed for $295 million and, if no buyer was found, it was put up for auction.

The total debt on the house is approximately $60 million more than the hammer price, which may result in several lenders incurring a loss on the property. The largest lender was Don Hankey, a Los Angeles subprime lending magnate who provided more than $125 million in funding for the project. Sources close to the sale revealed that Hankey, who had the option to "credit bid," was not the final buyer.

The purchase of The One comes with a host of challenges, including potential improvements and legal issues, as per the receiver's report and an engineering study. The house has numerous cracks in and around the pools and stonework, as well as evidence of mold. Additionally, there are several outstanding building and occupancy permits, and a local homeowner's association is contesting its construction.

It is speculated by real estate executives that the potential buyer could be another developer intending to enhance and transform the property, acquire the necessary permits, and eventually sell it for a profit.

Niami couldn’t immediately be reached for comment Thursday.