There’s more trouble ahead for Chinese developer of Oosten condo

The board’s attorney filed liens against 43 units

New York /
Feb.February 06, 2019 11:30 AM

Oosten at 421 Kent Avenue in Brooklyn (Credit: iStock)

The Chinese developer behind Williamsburg’s Oosten condominium is on the hook for more than $250,000 in common charges, according to a new report.

That puts the board’s finances in a tough spot, the New York Post reported. The board’s attorney, Adam Leitman Bailey, filed liens against 43 of the units for unpaid charges from October 2018 through Jan. 1, totaling nearly $253,000.

The move adds to existing legal conflicts XIN Development, the U.S. arm of Xinyuan Real Estate, is facing at the project. Last year, Halstead Property Development Marketing sued the developer, alleging it was owed nearly $1.3 million after getting terminated from the project. According to the lawsuit, Halstead was hired by Xinyuan in 2013 and last year, amid a shakeup of the developer’s New York team, was terminated without cause.

In 2017, the company dismantled the team running its U.S. development arm. Following the departure of several key executives, XIN has turned over the management of three New York City projects to Kuafu Properties, a four-year-old development firm backed by Chinese private equity. Xinyuan said it would retain ownership of the projects.

The company has had rocky relationships with vendors and faced other litigation as well. In 2015, facing rumors of cost overruns, Xinyuan filed a $10 million claim against the Oosten’s designer, Wank Adams Slavin Associates. Then, in in 2017, Xinyuan was hit with a $20 million suit by a former general contractor, Wonder Works Construction, alleging it was improperly terminated. At least one dissatisfied buyer also filed a lawsuit alleging the developer didn’t deliver on its promises.

Apartments at the building have sold for prices ranging from $698,000 for a one-bedroom to $6.5 million for a six-bedroom penthouse. [NYP] — Meenal Vamburkar


Related Articles

arrow_forward_ios
The Economic Innovation Group identified 145 real estate investments in Opportunity Zones (iStock)

Real estate deals dominate Opportunity Zones. Is that bad?

Real estate deals dominate Opportunity Zones. Is that bad?
(iStock)

Mortgage requests surge ahead of Thanksgiving

Mortgage requests surge ahead of Thanksgiving
Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Photos via Foster + Partners and Getty)

Vanke seeks to remove RFR from Midtown condo project

Vanke seeks to remove RFR from Midtown condo project
Hippo founders Assaf Wand and Eyal Navon (LinkedIn)

Home insurance startup Hippo raises $350M

Home insurance startup Hippo raises $350M
Prices increased 6.6 percent year-over-year in September (iStock)

US home prices surged 6.6% in September

US home prices surged 6.6% in September
From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

These developers could benefit the most from Soho’s rezoning

These developers could benefit the most from Soho’s rezoning
176 North 6th Street and 16 South Portland Avenue in Brooklyn (StreetEasy; Google Maps)

Brooklyn luxury market surges with nearly $73M in contracts

Brooklyn luxury market surges with nearly $73M in contracts
1045 Madison Avenue and 300 Central Park West (The Benson; Wikipedia Commons)

Manhattan luxury market shows signs of progress with 25 deals

Manhattan luxury market shows signs of progress with 25 deals
arrow_forward_ios

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

Loading...