Xin Development Faces Third Foreclosure in New York
Xin Development Group International is facing foreclosure in Manhattan, which has become an increasingly common issue for the Chinese developer.
The firm, which is the United States development arm under Xinyuan Real Estate, is in danger of losing its eight-story, 92-unit luxury condo at 500 West 45th Street, Bisnow reported. Mezzanine lenders filed to foreclose on Bloom on Forty Fifth, scheduling an auction for Oct. 11.
The Hell’s Kitchen property was built in 2020 and refinanced a year later with $90 million in senior debt from Ares Capital and $30 million in mezzanine debt from a subsidiary of The Georgetown Company. The latter sold the mezzanine loan, which ended up in the hands of shell company specialists obscured by limited liability companies.
Meanwhile, leasing and sales began in 2020. After a slow start, Douglas Elliman replaced Compass as the sales team for the building, but it’s unclear what the progress is for sales today. StreetEasy lists 75 previous sales for the building, but the Corcoran Group listing data has a significantly lower number: 27 sales and one contract pending.
The winning bidder of the auction will acquire the holding company that owns the building and the senior loan, as well as any outstanding payments. The property is anchored by Target.
This is the third strike for Xin in The Big Apple. The Chinese developer defaulted on a loan at the $372 million Oosten condo project in Williamsburg, leading to an auction of the 21 unsold units at the beleaguered property. That auction was set to take place in July, though its outcome remains unclear.
Around the same time, Maverick Real Estate Partners filed to foreclose on a Northern Boulevard property in Flushing owned by Xin. The former site of the historic RKO Keith’s Theater, Xin was planning a 17-story mixed-use complex with 269 condo units.
Xin built a reputation as a company that could provide a blueprint for how Chinese developers could operate in the city.
— Holden Walter-Warner
