Six offers came in on the property following its late November listing, and the two-story house in the gated Summit community was in escrow in 10 days, closing after the first of the year.
The transaction may finally end the saga of what has been a beleaguered property history.
The more than 7,000-square-foot house was purchased by McMahon in 1990 for $2.6 million, according to Times archives.
In 2006 he listed the contemporary Mediterranean at $7.699 million, the Multiple Listing Service shows. It was on and off the market at a variety of lesser prices for the next several years.
Then in 2008 an ailing McMahon defaulted on $4.8 million in mortgages with Countrywide Financial. Donald Trump announced his intention to buy the first mortgage, but it eventually sold to another investor who rented the house back to McMahon. The comedian, game show host and talk show sidekick died in 2009 at 86.
The property sold at foreclosure to a group of investors in October 2010 for $3.951 million. After an extensive makeover, repairs and staging, the house was listed in November at $3.475 million.
The home, built in 1989, has six bedrooms and 51/2 bathrooms. It sits on a third of an acre with a swimming pool and dining pavilion.
Ernie Carswell and Christopher Pickett at Teles Properties were the listing agents, according to the MLS. Leah Lail of Coldwell Banker's Beverly Hills South office and Steve Frankel of the Beverly Hills North office represented the buyer.