R. Kelly’s Infamous Scandal-Linked ‘Chocolate Factory’ Mansion Sells For Just $1.6M

R. Kelly’s infamous Chocolate Factory mansion just closed for $1.6 million — a steep drop from its $3.5 million asking price and a number that barely clears what the foreclosed property sold for back in 2013.

Sold!

The 21,000-square-foot estate in the Chicago suburb of Olympia Fields was where the Grammy-winning artist once recorded hits before the suburban Chicago property became entangled in disturbing allegations.

According to Celebrity Net Worth, Kelly purchased the four-acre property in April 1997 for $1.5 million, then spent years customizing it into an extravagant palace featuring seven bedrooms, 16 bathrooms, and an indoor pool so elaborate it included a grotto, two-story treehouse, waterfall, and hot tub. The estate also boasted a basketball court, billiards room, gym, library, and a basement kitchen styled after a 1950s diner.

But maintaining the mansion proved impossible once Kelly’s financial troubles accelerated.

After reportedly missing payments for about a year on his nearly $3 million JPMorgan Chase mortgage, the bank began proceedings in 2011. The mansion went to auction in March 2013, with JPMorgan bidding $950,000.

Eight months later, the bank sold the foreclosed property for just $587,500 to fellow R&B legend Rudolph Isley of the Isley Brothers and his wife, Elaine. The couple invested the next decade restoring the damaged structure, which had suffered flooding, mold, and rot, transforming it into The Isley estate complete with upgraded amenities and a Chicago Bulls-themed bedroom.

Following Rudolph’s passing in October 2023, Elaine listed the property at $3.49 million, according to the New York Post.

Yet even after extensive renovations, the home struggled to attract buyers.

Alex Wolking of Keller Williams ONEChicago, who represented the listing, pointed to property taxes as the primary obstacle. The original tax bill exceeded $250,000 annually based on an assessed value approaching $4.7 million. Although an appeal reduced the assessment to $2.6 million, annual taxes remained in six figures.

Surprisingly, Wolking found that notoriety helped rather than hindered the sale. The combination of Kelly’s infamy and the Isley Brothers’ connection generated substantial marketing attention for a property type rarely seen in the Midwest.

The Olympia Fields mansion wasn’t Kelly’s only problematic real estate.

According to ABC 7, the Chicago warehouse he used as a recording studio accumulated 66 building code violations after officials discovered unauthorized residential conversions including bedrooms, bathrooms, a kitchen, sauna, and bar constructed without permits. Potential daily fines ranged from $500 to $1,000 per violation.

Additionally, an Atlanta mansion Kelly rented out changed hands in June 2021 for $1,785,000, cutting off his access to that property entirely. This particular property could not make money for the disgraced Grammy winner because it was considered one of his “sex dens.” The home gained notoriety after being referenced in the “Surviving R. Kelly” docu-series as a place where he kept his victims.

Beyond real estate losses, Kelly faces crushing financial obligations. WTTW.com reports, a New York judge recently ordered Universal Music Group to surrender over $500,000 from Kelly’s music royalties to cover victim restitution.

The singer, now 56 and incarcerated at the Federal Correctional Complex in Butner, North Carolina, once earned $150,000 per concert. Entertainment attorney James L. Walker previously estimated Kelly’s publishing catalog alone should have been worth over $100 million. Instead, his current net worth sits at approximately negative $2 million, pulled underwater by legal expenses, settlements, and roughly $8 million in tax liens filed between 2009 and 2012, plus an additional $20 million reportedly owed to the IRS.

The Chocolate Factory’s discounted sale perfectly captures how completely Kelly’s empire has collapsed — from platinum records and multi-million-dollar properties to debt, disgrace, and a mansion that couldn’t fetch half its asking price.