Chinese developer puts Hell’s Kitchen condo in bankruptcy protection
Lender trying to foreclose on 92-unit luxury building
As Xin Development Group tries to avoid foreclosure on its Hell’s Kitchen luxury condo project, the Chinese developer placed the property into bankruptcy protection.
Xin, a division of China-based Xinyuan Real Estate, placed Bloom on 45th at 500 West 45th Street into bankruptcy protection on Jan. 7, PincusCo reported. The developer claimed the 92-unit luxury project is worth $123 million.
Xinyuan’s grip on Bloom on 45th has been tenuous at best in recent months. In the fall, mezzanine lenders filed to foreclose on the property, even going so far as to schedule an auction. The state court judge issued a temporary halt on any sale; a hearing on the matter is called for Monday.
Xinyuan struck back in November, suing debt holder BH3 Management, and now the two sides are battling over a forbearance agreement. Xinyuan claims it had to file for bankruptcy protection because BH3 was being “aggressive” in efforts to foreclose on the property. According to the petition, the lender had alleged that the property was in default, and was looking to initiate a UCC sale based on this.
Xinyuan completed the project in 2020, but has been unable to sell most of the units. Only 32 of them are sold, according to the bankruptcy petition, leaving a valued $70 million worth of real estate unsold. The commercial condo units, however, are largely leased, anchored by Target.
BH3 owns $79.7 million in senior and mezzanine debt. Xinyuan claims it is making good faith efforts to resolve the dispute between the two sides, alleging BH3 is failing to do the same.
The Real Deal could not immediately reach Xinyuan for comment. BH3 did not immediately respond to a request for comment.
Xin’s issues in the Big Apple keep popping up. The developer defaulted on a loan at the $372 million Oosten condo project in Williamsburg, which prompted an auction for the 21 unsold units at the property.
Maverick Real Estate Partners also filed to foreclose on a Xin property on Northern Boulevard in Flushing, Queens, where the developer was planning a 17-story mixed-use complex with 269 condo units on the former site of the famed RKO Keith’s Theater.
— Holden Walter-Warner