Xinyuan to make Manhattan debut with Hell’s Kitchen condo project: sources

Chinese firm in contract to buy Speedway gas station site for nearly $60M

New York /
Nov.November 04, 2015 09:00 AM

Xinyuan Real Estate is in contract to buy a Hell’s Kitchen development site for nearly $60 million, with the Chinese firm planning its first Manhattan condominium project, according to sources familiar with the transaction.

The site, located at 615 10th Avenue, is home to a Hess Express gas station. Also known as 501-505 West 44th Street, the site offers more than 100,000 buildable square feet.

Beijing-based Xinyuan, a publicly-traded development firm which operates in the U.S. through its subsidiary XIN Development, is close to signing a hard contract for the lot, according to deal insiders. Following the success of its 216-unit Williamsburg condo project known as the Oosten, the firm had been scouting for a new site.

Ohio-based gasoline chain Speedway LLC, a subsidiary of Marathon Petroleum Corporation, has owned the site for little more than a year, having paid $31.3 million to the Hess Corporation in September 2014. The deal was part of Speedway’s purchase of Hess’ 1,300 gas and convenience stores in the U.S.

Representatives for Xinyuan declined to comment.

The site is just a block away from the Gotham Organization’s 1,238-unit rental complex Gotham West, which opened in 2013. The average price for condos in Hell’s Kitchen is $1,573 per square foot, according to Miller Samuel data.

John Liang, Xinyuan Real Estate’s managing director of U.S. operations, told TRD in August that “in New York, it’s more and more challenging to buy land and it’s getting more expensive.”

“It’s a very fast-paced acquisition environment,” Liang continued. “Our project pipeline keeps changing. You spend two months negotiating on a deal. You spend a lot of money hiring lawyers to draft out the contract and before you sign the contract, someone could come in and snatch your deal, which happened to us a few times.”

Xinyuan invested $270 million in the Oosten project, which is slated for completion by mid-2016. A penthouse is under contract there for a Williamsburg record of $6.5 million.


Related Articles

arrow_forward_ios
Hudson Companies' David Kramer with 806 9th Avenue (Hudson Companies, City of New York)
Hudson’s affordable project in Hell’s Kitchen earns approval
Hudson’s affordable project in Hell’s Kitchen earns approval
Edison Properties' Jon Dario and 620 12th Avenue (Edison Properties, Google Maps)
Verizon leases 144K sf from Edison Properties in Hell’s Kitchen
Verizon leases 144K sf from Edison Properties in Hell’s Kitchen
Extell's Gary Barnett, Robert Gans and an aerial of 616 11th Avenue (Robert’s Steakhouse, Google Maps)
Investor Robert Gans files for bankruptcy to thwart Barnett, Eli Tabak
Investor Robert Gans files for bankruptcy to thwart Barnett, Eli Tabak
Extell Development's Gary Barnett. Bluestone Group's Eli Tabak and 605 West 45th Street (Google Maps. LinkedIn, Extell Development)
Gary Barnett hunts lucrative Hell’s Kitchen assemblage
Gary Barnett hunts lucrative Hell’s Kitchen assemblage
Artist Hunt Slonem in front of 595 11th Avenue (Getty Images, LoopNet, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Rare bird: Artist leases entire Hell’s Kitchen building
Rare bird: Artist leases entire Hell’s Kitchen building
Apartments in the Bronx, Washington Heights top slow week for investment sales
Apartments in the Bronx, Washington Heights top slow week for investment sales
Apartments in the Bronx, Washington Heights top slow week for investment sales
Konrad Bicher and the MiMa at 450 West 42nd Street (Google Maps)
“Wolf of Airbnb” set up in luxury tower, Related claims
“Wolf of Airbnb” set up in luxury tower, Related claims
312 West 43rd Street, National Real Estate Advisors CEO Jeffrey Kanne and Taconic Partners' Paul Pariser and Charles Bendit (Google Maps, National Real Estate Advisors, Taconic Partners)
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...