Casa Encantada, the storied Bel-Air estate, was sold at a foreclosure auction for $130 million on July 1, 2026. The buyer, described as a "blond man dressed in black" who declined to identify himself, used several cashiers' checks to cover the purchase. This auction concludes a prolonged legal dispute surrounding the property after the death of its owner, billionaire financier Gary Winnick, in November 2023.
The 8.5-acre estate, featuring a 40,000-square-foot mansion built in the 1930s, had been listed by Winnick in June 2023 for a record-setting $250 million. However, the property became embroiled in financial difficulties when a business entity of Winnick's defaulted on a $100 million loan from CIM Group, which had ballooned to over $150 million. Following Winnick's death, CIM Group ordered the auction of Casa Encantada and a Winnick family home in Malibu to recover the debt.
Gary Winnick and his wife, Karen Winnick, purchased Casa Encantada in 2000 for $94 million, which was a record price at the time. They invested tens of millions more in a two-year restoration. Prior to Winnick, the estate had notable owners including hotelier Conrad Hilton and Dole Food executive David Murdock. The $250 million listing price in 2023 was an attempt to cover the significant debts, and the property's value fluctuated significantly during the foreclosure battle, seeing price cuts from $250 million down to $170 million by February 2026.
Karen Winnick, Gary's widow, challenged the foreclosure for months, arguing she was unaware of the loan's terms and attempting to delay the sale through the courts. Her appeals successfully postponed the auction from December 2025 to July 2026, but a court ultimately ruled against her. The Malibu home, willed to the Winnicks' three sons, reverted to the lender after a $20 million credit bid during the auction.
