The Real Deal New York

SCG America buys out Kuafu’s MiMA stake

Developer taps Corcoran Sunshine to re-launch sales at 147-unit condo
By E.B. Solomont | October 18, 2018 07:00AM

From left: 460 West 42nd Street and Corcoran’s Tricia Cole and Kelly Mack (Credit: Elegran and Corcoran)

SCG America — the U.S. arm of Shanghai Construction Group — has bought out Kuafu Properties’ stake at Manhattan View at MiMA, a 147-unit condominium conversion in Manhattan West.

SCG and Kuafu partnered up in 2015 to buy the top floors of the building from Related Companies and TIAA for $260 million. SCG said it bought out Kuafu’s 30 percent stake in June — a move that gives the Chinese construction firm more decision-making power.

To that end, SCG has tapped Corcoran Sunshine Marketing Group to re-launch sales of the condos, which span the top 13 floors of the 63-story building, where Related still manages rental apartments on the lower floors. Before being removed from the market over the summer, the condos were being marketed by Silk Realty, Kuafu’s in-house sales team.

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“If you have a partners, [you] need balance between the companies,” said Lisa Sun, head of marketing and sales at SCG America. “Now it’s on our shoulders, so we can realize and convey our management way to the market and customers.”

Kuafu and SCG purchased the top floors of the 63-story building, located at 460 West 42nd Street, from Related and TIAA-CREF for $260.8 million in 2015.
They moved quickly to convert the rental units into 147 condos.

The developers initially launched sales in May 2016, with prices ranging from $1.46 million to $4.86 million.

But only 42 units have sold, according to Tricia Cole, an executive managing director at Corcoran Sunshine, who said there will be some price adjustments. “We are taking a very serious look at what has been sold, what remains to be sold and taking in buyer feedback,” she said.

As part of the re-launch, Cole stressed the evolution of the neighborhood into a “prime, in-high-demand residential location” over the past five years. “Today, Hudson Yards, Riverside Boulevard and Waterline Square are booming — and we are right here.”

SCG, a $5 billion company, was a co-developer of Shanghai Tower. The company’s American arm is co-developing 2 Fulton Square Plaza in Flushing and a 450-unit condo and retail complex in Los Angeles.

After moving from obscurity to the big leagues of New York City development seemingly overnight, Kuafu has had a few notable snags in the last two years. In 2016, company principal Zengliang “Denis” Shan announced he was leaving to start his own venture. In February 2017, head of development Jeff Dvorett jumped ship to Midwood. Kuafu, led by Shang Dai, is building a 61-unit project with Ceruzzi Properties on the Upper East Side, and recently took over at the Oosten condo in Williamsburg after fellow Chinese developer Xinyuan dismantled its local team.