Maverick Blocked From Auctioning Former Flushing Theater

Once again, Maverick Real Estate Partners’ attempt to auction the site of the former KRO Keith’s Theater in Queens has been squashed.

The co-founder of Xin Development’s parent company, which owns the site at 135-35 Northern Boulevard in Flushing, put the development site into Chapter 11 bankruptcy protection, PincusCo reported. The bankruptcy move came one day ahead of a foreclosure auction for the site.

The judgment lien against Xin was put at $41.2 million. The bankruptcy filing, meanwhile, puts the value of the real estate at $90.6 million.

Xin could not be reached for comment by The Real Deal. Maverick did not immediately return a request for comment.

This is not the first go-around for the two sides.

Xin paid Jerry Karlik’s JK Equities $66 million in 2016 for the land, where it planned a 17-story mixed-use complex that would include 269 condominium units.

In 2019, Madison Realty Capital provided Xin with a $30 million pre-development loan. The loan was acquired by Maverick, which later upped the loan to $34 million, according to property records.

Maverick alleged Xin initially went into default in January 2023 when it failed to pay its real estate taxes. It then missed payments on its debt service beginning in May of that year, according to a lawsuit filed in New York state court. Maverick initiated foreclosure in July 2023.

But an August 2025 auction date for the site was canceled mere months after a group of creditors filed an involuntary bankruptcy against parent company Xinyuan Real Estate. It’s unclear why the auction was canceled that time.

The Flushing property consists of 81,000 square feet of built space and 20,000 square feet of additional air rights, according to PincusCo. The lot is irregular and the zoning allows for up to 2.43 times floor area ratio for residential development.

Xin dealt with a rash of foreclosure filings in recent years. In October 2024, the Chinese developer sold 51 units at a Hell’s Kitchen project back to lender BH3 Management for $50 million, ending a prolonged fight over the 92-unit development at 500 West 45th Street.

— Holden Walter-Warner