Casa Encantada, a historic 8.5-acre estate in Bel Air, Los Angeles, was sold for $130 million at a foreclosure auction to CIM Group, the very lender involved in the dispute. This sale concludes a long-standing legal battle between Karen Winnick, the widow of late billionaire Gary Winnick, and CIM Group. The mansion was initially purchased by Gary Winnick in 2000 for $94 million.
The dispute stemmed from a $100 million loan taken out in 2020 by an entity tied to Gary and Karen Winnick. After Gary Winnick's death in 2023, repayments on the loan allegedly ceased, leading CIM Group to initiate foreclosure proceedings to recover the debt, which had reportedly ballooned to over $150 million. Karen Winnick subsequently filed a legal complaint against CIM Group, alleging financial elder abuse, concealment of information, and transfer of property without spousal consent, claiming she was unaware of the loan's terms.
The property had been previously listed for sale at various prices, including $250 million in 2023 and later $170 million in April of the current year, following a temporary stay of the foreclosure auction in December 2025. Despite Winnick's efforts to find a buyer for $130 million to pay off a substantial part of the debt, CIM Group argued that their valuation of the property was higher. The auction, which saw CIM Group acquire the property, marks the resolution of a highly publicized legal and financial entanglement surrounding one of America's most expensive homes.
