Chinese developer defaults on $175M loan for languishing Manhattan supertall site

DW Partners demanding $165M from Oceanwide Holdings

New York /
Jan.January 13, 2022 04:00 PM

Renderings of 80 South Street (Oceanwide Holdings, iStock)

One of China’s largest companies has taken another hit on its pricey development site in Manhattan’s South Street Seaport.

Oceanwide Holdings defaulted on its $175 million loan against 80 South Street, where a planned skyscraper has been stalled for years, Bisnow reported. The loan was taken out against the property in 2019, while Oceanwide was trying to sell it.

The loan — believed to be the only debt against the property — was set to mature in May 2021, before DW Partners granted Oceanwide a six-month extension. When November rolled around, the debt matured. Bisnow reported Oceanwide missed a $1.3 million payment earlier this month, and DW Partners is demanding an immediate payment of the outstanding $165 million loan.

The company’s efforts to sell the site have been unsuccessful. As of October, Oceanwide was looking to get about $200 million for the site, sources told The Real Deal. That’s only slightly more than half of the $390 million Oceanwide paid for the site in 2016.

Since purchasing the site, Oceanwide has struggled with its debt after making billions of dollars in investments stateside.

The company had aspirations of building the tallest tower in Lower Manhattan by roof height, to top out at about 1,500 feet. Renderings seen in 2019 showed a glass-heavy tower taking shape in the downtown skyline.

But the plans never fully materialized and Oceanwide quietly began marketing the property in 2019 with Cushman & Wakefield, seeking $300 million. A Colliers International team led by Peter Nicoletti is currently in charge of marketing the property.

Oceanwide has been struggling with about $3.5 billion of investments, including a San Francisco site that was expected to become the city’s second-largest tower. Debtholders in October seized Oceanwide Center, which struggled with failed sales, $1.6 billion in costs and more than $40 million of mechanic’s liens.

The company previously crossed all of the “three red lines” the Chinese government created to get developers to deuce debts.

[Bisnow] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Alan Feldman, chief executive officer, president & chairman of the board, Resource REIT; Stephen Schwarzman, chairman, ceo & co-founder, Blackstone (Resource REIT, Getty Images, 1000 Spalding Apartment Homes)
    Blackstone to pay $3.7B for REIT in latest rental push
    Blackstone to pay $3.7B for REIT in latest rental push
    From left: Don Mullen, chief executive officer, Pretium Partners; Kelli Lawrence, chief executive officer, Onyx+East (Pretium Partners, Onyx+East, iStock)
    Pretium to launch $600M JV for build-to-rent development
    Pretium to launch $600M JV for build-to-rent development
    Sergey Ryback, founder, principal, Ryback Development (Google Maps, Ryback Development)
    Bad vibes threaten Rybak’s Upper East Side project
    Bad vibes threaten Rybak’s Upper East Side project
    360 Kingsland Avenue in Greenpoint, Brooklyn (Google)
    Sitex Group pays $30M for Greenpoint industrial property
    Sitex Group pays $30M for Greenpoint industrial property
    (Getty)
    Intel investment in new Ohio chip plant could reach $100B
    Intel investment in new Ohio chip plant could reach $100B
    In the days after Hong Kong circulated its latest virus measures this month, several shops, bars and eateries said they would close (Geology.com, iStock)
    Hong Kong businesses struggle with fallout of city’s zero-Covid policy, supply chain woes
    Hong Kong businesses struggle with fallout of city’s zero-Covid policy, supply chain woes
    No Joke: Pete Davidson (left) and Colin Jost just purchased a Staten Island Ferry boat. (Getty)
    Floating real estate: Colin Jost, Pete Davidson buy Staten Island Ferry boat
    Floating real estate: Colin Jost, Pete Davidson buy Staten Island Ferry boat
    arrow_forward_ios

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

    Loading...