Xin Development Group has finally let go of its struggling Hell’s Kitchen condo project.
The Chinese developer sold 51 units back to lender BH3 Management for $50 million on Oct. 15, according to public records.
The sale ends a prolonged fight between Xin — a division of China-based Xinyuan Real Estate — and its lender, BH3, over the 92-unit development at 500 West 45th Street.
BH3 initiated a foreclosure on the property, known as Bloom on 45th, in September 2023, and scheduled an auction. Xin responded two months later with a lawsuit of its own before putting the property into bankruptcy protection this January.
The property consists of five commercial units and 92 residential units, of which nearly two-thirds remained unsold at the time of bankruptcy. Xin valued the commercial units at roughly $53 million and the unsold residential units at $70 million.
Sales began at the eight-story building in 2020. Douglas Elliman’s Kirsten Jordan took over the listing from Compass in 2022.
Jordan said that she wasn’t able to move forward with any closings following the bankruptcy filing, but the listings remained live for another nine months. She said there was a brief period where sales were able to go through, which explains the nine additional units sold between the bankruptcy filing and this month’s bulk sale.
BH3 told the Commercial Observer that it’s “finalizing plans to launch a new sales and marketing campaign.”
In its bankruptcy petition, Xin blamed the slow sales on Covid, interest rates and regulatory restrictions, adding that BH3 has been “aggressive” in its foreclosure efforts.
In its last operating report filing, Xin showed that it collected almost $290,000 in rent from four commercial tenants. The building is anchored by Target, which pays roughly $221,000 in monthly rent.
Xin finished the property in 2020 and scored a $120 million refinancing, with $90 million in senior debt from Ares Capital and $30 million in mezzanine debt from a subsidiary of the Georgetown Company.
Xin and BH3 did not respond to requests for comment.
BH3 later acquired $79.7 million in senior and mezzanine debt. At the time of the sale, it still held roughly $57 million in debt.
The Bloom property is one of several in New York City developed by Xin that have been under siege from lenders. The developer’s $372 million Oosten project in Williamsburg had 21 units go to auction last summer, and Maverick Real Estate Partners filed to foreclose on a 269-unit Queens project around the same time.
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