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.
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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