Remember the Malibu beach house Ye once owned? Well that whole situation is a hot mess. What was supposed to be a multimillion-dollar sale between two developers has unraveled, with both sides now pointing fingers over why the deal fell apart.
Let’s be clear, Ye is not caught up in this situation. But it was his crib so we’re talking about it.
In case you missed it, back in March, Steven “Bo” Belmont, CEO of Belwood Investments, announced that he was relisting the Tadao Ando–designed home after purchasing it from Ye for $21 million. Belmont set a $39 million asking price but soon after revealed that Montana-based developer Andrew Mazzella had agreed to purchase the property for between $30 million and $34 million. Both parties told The Wall Street Journal that the sale was expected to close by early May.
But the deal never crossed the finish line. Weeks passed with the listing marked “pending” before the property returned to the market earlier this month at a reduced $34.9 million, as first reported by Realtor.com.
Belmont now claims that Mazzella was “massively underqualified” for a real estate transaction of this scale, alleging that the buyer failed to secure financing. “He was a Montana cowboy just trying to do something in Malibu,” Belmont said, explaining that he had no choice but to cancel the agreement when Mazzella couldn’t come up with the money. Belmont added that Mazzella later offered just $19.5 million, far below their original deal. “I was born at night, but not last night,” Belmont scoffed, admitting he should have vetted Mazzella more thoroughly. “Shame on me for not doing due diligence.”
Mazzella tells a different story. He says he offered Belmont $27.5 million in cash, but the seller turned it down. According to Mazzella, he was never fully informed about how much work was needed to make the stripped-down property livable again. He claims he thought Belmont would continue restoration efforts while the sale was pending, only to learn work had stopped in April.
The Montana developer argues that he was misled by a “slow trickle of information” about the home’s condition, which revealed hidden costs that could run into the millions. He also claims that Belmont’s company failed to disclose details about the roughly 500 investors originally tied to the house, which made lenders hesitant to fund the purchase.
Despite the fallout, Mazzella insists he still wants the deal to happen. “I’m actively working to close the deal,” he said, adding that his goal is to find a resolution that works for both sides. Meanwhile, Belmont has put the property back on the open market, reigniting speculation about who—if anyone—will take on Ye’s gutted Malibu mansion.