The Fight Over Los Angeles’s Giga-Mansions

Transcript for The Fight Over Los Angeles’s Giga-Mansions

We’re about to take you inside 80 gigantic mansions that come with gigantic price tags along with an unexpected dose of drama. There is 13 bedrooms. There is about 20 bathrooms in total. Wow. Reporter: Real estate developer Mohammad Habib has made a career building luxury hotels and homes for the Uber rich. Hello! Reporter: Such as this one showcased on bravo’s reality show “Real housewives of Beverly hills” featuring his ex-wife Yolanda foster and Gigi hadid. We brought these from northern California. Reporter: These days hadid is not making many friends in Beverly hills or more exclusive Bel Air. This is actually one of the medium-sized ones. This is about I would say 30,000 square feet. Reporter: From high-end developers seem to be done with mega mansions, tearing them down for the new giga mansions. And nearby relevance dents like Jennifer aniston, whose house is 8,500 square feet, are fighting back. Voicing outrage to city officials. The very idea that a building of 90,000 square feet can be called a home seems at the least a significant distortion of building codes.” This 50,000 square foot mansion built and lived in by hadid has a 300-seat ballroom, Turkish bath, large infinity pool, and 5,000 square foot guest suite. Why build homes this big? There’s a need for it. You have customers asking for it. Reporter: The ultra-rich living richer. He says a new generation of global billionaires is driving this construction boom. This is not your typical in-home theater. Reporter: They want it all. They expect to have a theater in these mansions. From 20 seats up to 50 or 70 seats. What is the number one amenity buyers are looking for when they are purchasing a house of this magnitude? Entertainment area. They want to have the splash to have a full 300 people at the party. You need to have bar areas, outdoor area. Something specific about a house that is different than anybody else. Reporter: That includes outdoor landscaping that feels hike a resort. A swimming pool that stands out. Maybe two or three. And the best location. Luxury mansions soaring beyond 20,000 square feet are popping up on street after street. Some 40,000 square feet. And some reaching a staggering 90,000 square feet. Bigger than the white house and taj Mahal combined. This boasts a 3,000 square foot master suite, three living rooms, salt water pool. It could be yours for $65 million. For some this giga construction seems more like giga invasion. This is the backyard. The wonderful part about this house. Reporter: Just yards from entertainment attorney Joe horocek’s front door, this 30,000 square foot hall of glass and cement is being built by hadid. Do you feel he’s invading your privacy? Privacy is completely gone. Reporter: For 15 years he’s lived a quiet life tucked away in the hills until hadid bought the house behind him and excavated thousands of cubic yards of soil from the hillside. I see the star ship “Enterprise.” And I get very angry also. What’s your biggest concern? Biggest concern is a combination of the total invasion of privacy, the total disregard which I believe Mohammad hadid has for the building code and for the safety of living beneath it. You think the house could end up in your property? I think there’s clearly that chance. Reporter: The city of los Angeles is not happy either. They’ve issued a stop work order. You had your permits revoked and a stop order on construction? Correct. Why was that? Well, the neighbor has complained to the city. And they decided that they want to look into it. We got our permits correctly. You can see the ocean from here. You can see it’s — the place is a modern home. Reporter: Hadid showed us the property from his perfespective where you can see horacek’s house directly below. Whoever’s going to live here is not going to stand here, hook down. He can put shrubs, other things. Reporter: Once finished this giga mansion will have two wine cellars, a moving bar that swivels, a wrap-around infinity pool. You have the people with the yacht, the plane, the houses. They’re buying in L.A. Reporter: Real estate expert David Kramer said it started with the sale of Aaron spelling’s 56,000 square foot home. People saw the reality of, we have buyers here. Reporter: He sold the spelling manor for $85 million. And says it opened the flood Gates for larger, luxurious homes. Who can afford these homes? Everyone thinks it’s foreign buyers? It’s everybody. Local, entertainment, hedge fund, banking, computer, definitely technology people, then a lot of foreign buyers. 30% to 40% are foreign buyers. Reporter: All this development comes at a price. Some irate neighbors pointing to the death of two LAPD officers killed by construction vehicles. Police officer Nicholas lee was killed last March when a dump truck returning from a construction site, then two months later an out of control cement truck overturned on the same road. There’s another truck. There’s another truck. Reporter: As a result, Fred Rosen, former CEO of ticketmaster, who recently founded a neighborhood alliance, cringes at every large truck in his neighborhood. Is this a regular occurrence on your street? Yeah. People at home who are going to watch and say, this is a fight of millionaires against approximately fair billionaires. I know, there’s always somebody with more, so that’s not the issue. We want to be safe. The one straight ahead — Reporter: Maureen Levin soon, Bel Air mother of two, is a member of the neighborhood alliance. She became sort of a modern-day vigilante over a massive 90,000 square foot property up the road. Are you with the construction site up here? There’s wildlife here. And that’s the way Bel Air used to be. Very peaceful and quiet. Now you have a truck — Oh, yeah. Three trucks going through. Reporter: Levinson’s neighbors, 8,000 and 10,000 square foot homes, are some of the homes considered to be tear-downs. That’s a million-dollar view. That’s a $10 million view. Reporter: But this — neighbors are viewing with so many giga mansions going up. They would come in convoys like freight trains. Reporter: Now some are waiting for this ultra-rich real estate bubble to burst. Do you think you’ll ever have quiet again? Not for many, many, many years. Reporter: Until then, if you can afford a house of this magnitude and want to throw a party for friends, Mohammad hadid has a few ideas. This is a wine cellar. How many bottles of wine? This is a 5,000 bottle of wine wine cellar. I haven’t counted. Reporter: For “Nightline” I’m Brandi Hitt in Los Angeles.

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David Kramer